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	Saved 2026-08-04 12:09 1mo ago Published 2026-08-04 06:00 1mo ago	Leidos zvýšil tržby a zvýšil celoroční výhled Leidos ve 2. čtvrtletí zvýšil tržby o 7 % na 4,56 miliardy USD a zvýšil celoroční výhled tržeb, EPS i provozního cash flow. Získal také zakázky za 4,9 miliardy USD. LDOS Leidos Holdings	FMP Stock News	92
Original source text Revenues of $4.6 billion, up 7% year-over-year Net income of $356 million or $2.81 per diluted share Adjusted EBITDA (non-GAAP) of $631 million and Adjusted EBITDA margin (non-GAAP) of 13.8% Non-GAAP Diluted Earnings per Share of $3.26, up 2% year-over-year Cash Flows from Operations of $793 million; Non-GAAP Free Cash Flow of $761 million , /PRNewswire/ -- Leidos Holdings, Inc. (NYSE: LDOS) today reported financial results for the second quarter of fiscal year 2026, highlighted by robust revenue growth and free cash flow generation. "I'm pleased to report another strong quarter for Leidos," said Chief Executive Officer Tom Bell. "In addition to achieving milestones for revenue and cash, we booked $5 billion of contract awards. We're seeing meaningful growth emerge across our Defense Tech, Energy Infrastructure, and Cyber growth pillars. And we have greater visibility into the long-term role of our Managed Healthcare pillar. The strength of our balanced portfolio allows us to enhance our 2026 guidance for revenues, earnings, and cash." SUMMARY OPERATING RESULTS Three Months Ended (in millions, except margin and per share data) July 3, 2026 July 4, 2025 Revenues $ 4,558 $ 4,253 Net income $ 356 $ 393 Net income margin 7.8 % 9.2 % Diluted earnings per share (EPS) $ 2.81 $ 3.01 Non-GAAP Measures: Adjusted EBITDA $ 631 $ 647 Adjusted EBITDA margin 13.8 % 15.2 % Non-GAAP diluted EPS $ 3.26 $ 3.21 Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Management believes that these non-GAAP measures provide another representation of Leidos' results of operations and financial condition, including its ability to comply with financial covenants. See Non-GAAP Financial Measures at the end of this press release for more information and a reconciliation of our selected reported results to these non-GAAP measures. Revenues for the quarter were $4.56 billion, up 7% compared to the second quarter of 2025, including 4% organically. Revenues grew year-over-year due to increased customer demand for defense tech products, energy and air traffic management solutions, and intelligence mission support. For the second quarter, net income was $356 million, or $2.81 per diluted share. Net income and diluted EPS were both down 9% and 7%, respectively, year-over-year; net income margin was 7.8% compared to 9.2% in the second quarter of 2025. Net income and diluted EPS for the quarter reflect $29 million in costs associated with the acquisition of ENTRUST Solutions Group ("Entrust") and the pending joint venture with Analogic Corporation, as well as restructuring costs associated with the NorthStar 2030 re-alignment. Adjusting for these and certain other items, non-GAAP net income decreased 1% year-over-year, to $413 million for the second quarter, and non-GAAP diluted EPS increased 2% to $3.26. In addition, adjusted EBITDA was $631 million for the second quarter, down 2% year-over-year. Adjusted EBITDA margin of 13.8% decreased from 15.2% in the second quarter of 2025. Profitability in the current quarter reflected excellent program execution and disciplined cost management across the portfolio; profitability in the year-ago quarter benefited from several one-time, non-operational gains, including a $25 million insurance reimbursement for legal costs. CASH FLOW SUMMARY Net cash provided by operating activities for the quarter was $793 million for an operating cash flow conversion ratio of 224%. After adjusting for property, equipment, and software payments, quarterly free cash was $761 million for a free cash flow conversion ratio of 185%. For the quarter, Leidos used $38 million in investing activities, including $32 million in property, equipment and software payments. Leidos used $423 million in financing activities, consisting primarily of $300 million in debt paydown and $127 million returned to shareholders, including $72 million in share repurchases and $55 million as part of a regular quarterly cash dividend program. As of July 3, 2026, Leidos had $748 million in cash and cash equivalents and $6.0 billion of debt. NEW BUSINESS AWARDS Net bookings totaled $4.9 billion in the quarter, representing a book-to-bill ratio of 1.1. As a result, backlog at the end of the quarter was $48.7 billion, of which $10.2 billion was funded. Trailing-twelve-month book-to-bill of 1.1 resulted in year-over-year growth in total and funded backlog of 5% and 44%, respectively. Quarterly bookings included several key awards: Avionics Intermediate Shop (AIS) Production Support Integration (PIS). The U.S. Air Force Sustainment Center awarded Leidos a $475 million follow-on AIS PIS contract to manage the computerized diagnostic system that fixes the F-16 fighter jets. The company will deliver independent systems engineering, resolve complex component shortages, and manage original equipment manufacturer subcontracts. This work ensures sustained mission readiness of F-16 fleets for the U.S. Air Force, European, and foreign partners. General Services Administration (GSA) Military OneSource. Leidos secured a $456 million contract from the GSA to manage the Military OneSource program over the next four years. Under this agreement, Leidos will deliver comprehensive 24/7 well-being services, including confidential counseling, tax support, and relocation tools to more than 4.7 million service members and their families worldwide. This strategic win further cements Leidos as a leading provider of global military health and managed health services. U.S. Air Force Electronic Warfare Mission Support. Leidos received a $350 million contract modification to provide additional high-end technical support for the U.S. Air Force Material Command. The company will supply additional units of its advanced low-band surveillance radar infrastructure alongside specialized signal-processing software. These mission-critical capabilities are engineered to defeat adversary low-observable assets and mitigate heavy electronic countermeasures, providing defense networks with the definitive, high-fidelity threat intelligence required for modern multi-domain operations. Defense Health Agency (DHA) Reserve Health Readiness Program (RHRP) 3.1. Leidos will maintain uninterrupted medical and dental exams for U.S. military reservists under a potential 30-month, $325 million contract modification while the DHA finalizes its long-term transition strategy for RHRP. Customs Border Patrol (CBP) Medium Energy Mobile (MEM) Systems. Leidos secured a five-year, $270 million single-award indefinite delivery, indefinite quantity (IDIQ) contract from CBP to deliver up to 100 MEM Systems. These flexible, non-intrusive inspection units scan vehicles and cargo for contraband, drugs, and weapons and will be deployed at various points of entry across the U.S. This award will align to the Leidos Security Enterprise Solutions and Analogic Corporation joint venture upon its formation. Naval Surface Warfare Center (NSWC) Multi-Service Advanced Capability Hypersonics Test Bed (MACH-TB) 2.0. The NSWC awarded Leidos an $88 million other transaction authority (OTA) contract to develop experimental hypersonic glide vehicles to serve as real-world testbeds for advancing high-speed flight technologies. FORWARD GUIDANCE Leidos is raising its fiscal year 2026 guidance as follows: FY26 Guidance Measure Current Prior Revenues (B) $18.20 - $18.40 $18.00 - $18.40 Adjusted EBITDA Margin Mid 13% Mid 13% Non-GAAP Diluted EPS $12.20 - $12.50 $12.10 - $12.50 Cash Flows Provided by Operating Activities (B) Approximately $1.85 Approximately $1.80 For information regarding adjusted EBITDA margin and non-GAAP diluted EPS, see the related explanations and reconciliations to GAAP measures included elsewhere in this release. Leidos does not provide a reconciliation of forward-looking adjusted EBITDA margins or non-GAAP diluted EPS to net income margin or diluted EPS due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected net income margin or diluted EPS may vary significantly based on actual events, Leidos is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected net income margin and diluted EPS being materially less than what may be implied by projected adjusted EBITDA margins and non-GAAP diluted EPS. CONFERENCE CALL INFORMATION Leidos management will discuss operations and financial results in an earnings conference call beginning at 8 A.M. eastern time on August 4, 2026. A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leidos Investor Relations website (http://ir.leidos.com). An archived version of the webcast will be available on the Leidos Investor Relations website until August 4, 2027. ABOUT LEIDOS Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com. FORWARD-LOOKING STATEMENTS Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimates of our future growth, strategy and financial and operating performance, including future revenues, adjusted EBITDA margins, diluted EPS (including on a non-GAAP basis) and cash flows provided by operating activities, as well as statements about our business contingency plans, government budgets and spending, uncertainties in tax due to new tax legislation or other regulatory developments, strategy, planned investments including the pending joint venture, sustainability goals and our future dividends, share repurchases, capital expenditures, debt repayments, acquisitions, dispositions and cash flow conversion. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Actual performance and results may differ materially from those results anticipated by our guidance and other forward-looking statements made in this release depending on a variety of factors, including, but not limited to: developments in the U.S. government defense and non-defense budgets, including budget reductions, sequestration, implementation of spending limits or changes in budgetary priorities, potential future U.S. government shutdown and other or future delays in the U.S. government budget process, or the U.S. government's failure to raise the debt ceiling, which increases the possibility of a default by the U.S. government on its debt obligations, related credit-rating downgrades, or an economic recession; uncertainties in tax due to new tax legislation or other regulatory developments; deterioration of economic conditions or weakening in credit or capital markets; uncertainty in the consequences of current and future geopolitical events; inflationary pressures and fluctuations in interest rates; delays in the U.S. government contract procurement process or the award of contracts and delays or loss of contracts as a result of competitor protests; changes in U.S. government procurement rules, regulations and practices; our compliance with various U.S. government and other government procurement rules and regulations; governmental reviews, audits and investigations of our company; our ability to effectively compete and win contracts with the U.S. government and other customers; our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence; our reliance on information technology spending by hospitals/healthcare organizations; our reliance on infrastructure investments by industrial and natural resources organizations; energy efficiency and alternative energy sourcing investments; investments by U.S. government and commercial organizations in environmental impact and remediation projects; the effects of an epidemic, pandemic or similar outbreak may have on our business, financial position, results of operations and/or cash flows; our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our employees; our ability to accurately estimate costs, including cost increases due to inflation, associated with our firm-fixed-price contracts and other contracts; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues; cybersecurity, data security or other security threats, system failures or other disruptions of our business; our compliance with international, federal, state and local laws and regulations regarding privacy, data security, protection, storage, retention, transfer, disposal and other processing, technology protection and personal information; the damage and disruption to our business resulting from natural disasters and the effects of climate change; our ability to effectively acquire businesses and make investments; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to manage performance and other risks related to customer contracts; the failure of our inspection or detection systems to detect threats; the adequacy of our insurance programs, customer indemnifications or other liability protections designed to protect us from significant product or other liability claims, including cybersecurity attacks; our ability to manage risks associated with our international business; our ability to comply with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and similar worldwide anti-corruption and anti-bribery laws and regulations; our ability to protect our intellectual property and other proprietary rights by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to prevail in litigation brought by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to declare or increase future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and our agreements; our ability to grow our commercial health and infrastructure businesses, which could be negatively affected by budgetary constraints faced by hospitals and by developers of energy and infrastructure projects; our ability to successfully integrate acquired businesses; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks that we face. These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the U.S. Securities and Exchange Commission (SEC), including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the Investor Relations section of our website at www.leidos.com. All information in this release is as of August 4, 2026. Leidos expressly disclaims any duty to update the guidance or any other forward-looking statement provided in this release to reflect subsequent events, actual results or changes in Leidos' expectations. Leidos also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others. CONTACTS: Investor Relations: Media Relations: Stuart Davis Brandon Ver Velde 571.526.6124 571.526.6257 [email protected] [email protected] LEIDOS HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended (in millions, except per share data) July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Revenues $ 4,558 $ 4,253 $ 8,958 $ 8,498 Cost of revenues 3,741 3,471 7,380 6,959 Selling, general and administrative expenses 283 217 506 447 Acquisition, integration and restructuring costs 27 2 62 6 Equity earnings of non-consolidated subsidiaries (7) (8) (12) (15) Operating income 514 571 1,022 1,101 Non-operating expense: Interest expense, net (69) (55) (124) (104) Other income (expense), net 6 2 (18) (1) Income before income taxes 451 518 880 996 Income tax expense (95) (125) (189) (238) Net income 356 393 691 758 Less: net income attributable to non-controlling interest 2 2 9 4 Net income attributable to Leidos common stockholders $ 354 $ 391 $ 682 $ 754 Earnings per share: Basic $ 2.81 $ 3.03 $ 5.41 $ 5.84 Diluted 2.81 3.01 5.37 5.80 Weighted average number of common shares outstanding: Basic 126 129 126 129 Diluted 126 130 127 130 Cash dividends declared per share $ 0.43 $ 0.40 $ 0.86 $ 0.80 LEIDOS HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data) July 3, 2026 January 2, 2026 Assets: Cash and cash equivalents $ 748 $ 1,108 Receivables, net 2,968 2,708 Inventory, net 94 342 Other current assets 493 656 Assets held for sale 943 — Total current assets 5,246 4,814 Property, plant and equipment, net 900 961 Intangible assets, net 943 458 Goodwill 7,663 6,342 Operating lease right-of-use assets, net 491 526 Other long-term assets 389 392 Total assets $ 15,632 $ 13,493 Liabilities: Accounts payable and accrued liabilities $ 2,180 $ 1,988 Accrued payroll and employee benefits 855 819 Current portion of long-term debt 22 20 Liabilities held for sale 163 — Total current liabilities 3,220 2,827 Long-term debt, net of current portion 6,009 4,628 Operating lease liabilities 547 587 Other long-term liabilities 520 489 Total liabilities 10,296 8,531 Stockholders' equity: Common stock, $0.0001 par value, 500,000,000 shares authorized, 125,492,013 and 126,380,657 shares issued and outstanding at July 3, 2026, and January 2, 2026, respectively — — Additional paid-in capital 88 319 Retained earnings 5,219 4,647 Accumulated other comprehensive loss (23) (50) Total Leidos stockholders' equity 5,284 4,916 Non-controlling interest 52 46 Total stockholders' equity 5,336 4,962 Total liabilities and stockholders' equity $ 15,632 $ 13,493 LEIDOS HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended Six Months Ended (in millions) July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Cash flows from operations: Net income $ 356 $ 393 $ 691 $ 758 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 81 72 153 141 Stock-based compensation 26 25 51 46 Deferred income taxes 6 224 (2) 200 Net (gain) loss on pension plan settlement (3) — 20 — Other 4 1 14 — Change in assets and liabilities, net of effects of acquisitions and dispositions: Receivables (33) 10 (193) (236) Other current assets and other long-term assets 35 (7) 38 (34) Accounts payable and accrued liabilities and other long-term liabilities 43 (188) 97 (260) Accrued payroll and employee benefits 188 155 34 7 Income taxes receivable/payable 90 (199) 191 (78) Net cash provided by operating activities 793 486 1,094 544 Cash flows from investing activities: Acquisition of a business, net of cash acquired — (285) (2,338) (285) Payments for property, equipment and software (32) (29) (63) (51) Divestiture of a business — — 4 — Net proceeds from sale of assets 4 — 4 — Other (10) — (4) — Net cash used in investing activities (38) (314) (2,397) (336) Cash flows from financing activities: Proceeds from debt issuance — — 1,397 997 Repayments from commercial paper (300) — — — Repayments of borrowings (5) (30) (10) (559) Payments for debt issuance costs — — (15) (7) Dividend payments (55) (52) (110) (105) Repurchases of stock and other (72) (9) (315) (537) Proceeds from issuances of stock 17 16 33 31 Net capital distributions to non-controlling interests (1) (2) (3) (7) Other (7) (6) (7) (6) Net cash (used in) provided by financing activities (423) (83) 970 (193) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 1 7 — 14 Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified in current assets held for sale 333 96 (333) 29 Less: change in cash balances classified as assets held for sale 41 — 41 — Net increase (decrease) in cash, cash equivalents and restricted cash 292 96 (374) 29 Cash, cash equivalents and restricted cash at beginning of period 538 924 1,204 991 Cash, cash equivalents and restricted cash at end of period 830 1,020 830 1,020 Less: restricted cash at end of period 82 90 82 90 Cash and cash equivalents at end of period $ 748 $ 930 $ 748 $ 930 LEIDOS HOLDINGS, INC. UNAUDITED SEGMENT OPERATING RESULTS Three Months Ended Six Months Ended (in millions) July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Revenues: Intelligence & Digital $ 1,499 $ 1,408 $ 3,012 $ 2,816 Health 1,086 1,175 2,274 2,363 Homeland 1,018 771 1,834 1,541 Defense 955 899 1,838 1,778 Total $ 4,558 $ 4,253 $ 8,958 $ 8,498 Operating income (loss): Intelligence & Digital $ 142 $ 135 $ 288 $ 267 Health 254 303 538 591 Homeland 92 64 125 125 Defense 84 78 146 152 Corporate (58) (9) (75) (34) Total $ 514 $ 571 $ 1,022 $ 1,101 Operating income margin: Intelligence & Digital 9.5 % 9.6 % 9.6 % 9.5 % Health 23.4 % 25.8 % 23.7 % 25.0 % Homeland 9.0 % 8.3 % 6.8 % 8.1 % Defense 8.8 % 8.7 % 7.9 % 8.5 % Total 11.3 % 13.4 % 11.4 % 13.0 % Beginning fiscal 2026, we completed a realignment of our reporting structure, which resulted in the identification of four reportable segments: Intelligence & Digital, Health, Homeland and Defense. Additionally, we separately present the unallocable costs associated with corporate functions as Corporate. We commenced operating and reporting under the new organizational structure effective the first day of fiscal 2026. As a result of this change, prior year segment results have been recast to reflect the current reportable segment structure. Intelligence & Digital Intelligence & Digital revenues grew 6% year-over-year to $1.50 billion driven by recent contract awards and increased volumes for Intelligence Community mission support, as well as $9 million from Kudu Dynamics through May 23, 2026 (12 months from the close of the acquisition). Operating income margin was 9.5% compared to 9.6% in the prior year quarter, and non-GAAP operating income margin was 10.1%, unchanged from the prior year quarter. Health Health revenues of $1.09 billion decreased by 8% compared to the prior year quarter. Health operating income margin for the quarter was 23.4%, compared to 25.8% in the prior year quarter, and non-GAAP operating income margin was 23.8%, compared to 26.3% in the prior year quarter. The declines in revenues and margins were primarily driven by lower medical disability exam volumes. Homeland Homeland revenues of $1.02 billion increased by 32% compared to the prior year quarter. Revenue growth was driven by continued strong demand in the Air Traffic and Energy businesses, and included $141 million from the acquisition of ENTRUST Solutions. Operating income margin for the quarter was 9.0%, compared to 8.3% in the prior year quarter, and non-GAAP operating margin increased to 12.1% from 9.3% in the prior year quarter. Profitability enhancements were driven by a better mix of security products, as well as improved program performance and lower indirect expenses across the portfolio. Defense Defense revenues of $955 million were up 6% compared to the prior year quarter led by increased demand for several defense tech product lines. Defense operating income margin for the quarter was 8.8%, compared to 8.7% in the prior year quarter, and non-GAAP operating margin was 9.9%, compared to 10.0% in the prior year quarter. LEIDOS HOLDINGS, INC. UNAUDITED BACKLOG BY REPORTABLE SEGMENT Backlog represents the revenues we expect to recognize under negotiated contracts and unissued task orders on sole source IDIQ contracts, to the extent we believe their execution and funding to be probable. Backlog does not include potential task orders expected to be awarded under multiple award IDIQ contracts. Backlog value is based on management's estimates about volume of services, availability of customer funding and other factors, and excludes contracts that are under protest. Estimated backlog comprises both funded and negotiated unfunded backlog. Backlog estimates are subject to change and may be affected by several factors, including modifications of contracts, non-exercise of options and foreign currency movements. Funded backlog for contracts with the U.S. government represents the value on contracts for which funding is appropriated less revenues previously recognized on these contracts. Funded backlog for contracts with non-U.S. government entities and commercial customers represents the estimated value on contracts, which may cover multiple future years, under which Leidos is obligated to perform, less revenue previously recognized on the contracts. Unfunded backlog represents all remaining value on task orders that is not funded, including options, that we expect to recognize as well as expected future task orders under sole source IDIQ contracts. The estimated value of backlog as of the dates presented was as follows: July 3, 2026 July 4, 2025 (in millions) Funded Unfunded Total Funded Unfunded Total Intelligence & Digital $ 1,922 $ 16,492 $ 18,414 $ 1,667 $ 16,081 $ 17,748 Health 1,242 5,369 6,611 504 7,522 8,026 Homeland 3,669 6,261 9,930 2,918 6,920 9,838 Defense 3,390 10,366 13,756 2,033 8,565 10,598 Total $ 10,223 $ 38,488 $ 48,711 $ 7,122 $ 39,088 $ 46,210 Backlog at July 3, 2026, includes amounts acquired as part of the Entrust transaction. As of March 27, 2026, the acquisition date, Entrust had $371 million of backlog that was included within the Homeland reportable segment. LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES Leidos uses and refers to non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP diluted EPS, non-GAAP free cash flow and non-GAAP free cash flow conversion, which are not measures of financial performance under generally accepted accounting principles in the U.S. and, accordingly, these measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with Leidos's consolidated financial statements prepared in accordance with GAAP. Management believes that these non-GAAP measures provide another representation of the results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability. Organic revenues capture the revenue that is inherent in the underlying business excluding the impact of acquisitions and divestitures made within the prior year; it is computed as current revenues excluding revenues from acquisitions within the last 12 months and divestitures within the current and year-ago periods. Non-GAAP operating income is computed by excluding the following discrete items from operating income: Acquisition, integration and restructuring costs – Represents acquisition, integration, lease termination, severance and retention costs and asset markdowns related to acquisitions and restructuring activities. Amortization of acquired intangible assets – Represents the amortization of the fair value of the acquired intangible assets. We do not exclude the revenue associated with these acquired intangible assets from non-GAAP operating income. Asset impairment charges – Represents impairments of long-lived intangible assets and other assets. Non-GAAP non operating income is computed by excluding the discrete items from operating income and the following discrete items from non operating income. Settlement loss on pension plan buy-out – Represents the settlement loss in connection with the buy-out of our UK defined benefit pension plan. Acquisition related financing costs – Represents the cost associated with the termination of the bridge loan facility in connection with the acquisition of Entrust. Non-GAAP operating margin is computed by dividing non-GAAP operating income by revenues. Adjusted EBITDA is computed by excluding the following items from income before income taxes: (i) discrete items as identified above; (ii) interest expense; (iii) interest income; (iv) depreciation expense; and (v) amortization of internally developed intangible assets. Adjusted EBITDA margin is computed by dividing adjusted EBITDA by revenues. Non-GAAP net income is computed by excluding the discrete items listed under non-GAAP operating income and non-GAAP non operating income and their related tax impacts. Non-GAAP diluted EPS is computed by dividing net income attributable to Leidos common stockholders, adjusted for the discrete items as identified above and the related tax impacts, by the diluted weighted average number of common shares outstanding. Non-GAAP free cash flow is computed by deducting expenditures for property, equipment and software from net cash provided by (used in) operating activities. Non-GAAP free cash flow conversion is computed by dividing non-GAAP free cash flow by non-GAAP net income attributable to Leidos common stockholders; operating cash flow conversion is computed by dividing net cash provided by operating activities by net income attributable to Leidos common stockholders. LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except growth percentages) The following table presents the reconciliation of revenues to organic revenues by reportable segment and total operations: Three Months Ended July 3, 2026 July 4, 2025 Percent Change Intelligence & Digital Revenues, as reported $ 1,499 $ 1,408 6.5 % Acquisition revenues(1) 9 — Organic revenues 1,490 1,408 5.8 % Health Revenues, as reported 1,086 1,175 (7.6) % Homeland Revenues, as reported 1,018 771 32.0 % Acquisition and divestiture revenues(1)(2) 141 9 Organic revenues 877 762 15.1 % Defense Revenues, as reported 955 899 6.2 % Total Operations Revenues, as reported 4,558 4,253 7.2 % Acquisition and divestiture revenues(1)(2) 150 9 Organic revenues $ 4,408 $ 4,244 3.9 % (1) Current period acquisition revenues reflects revenues in the current as reported figures for 12 months from closing of each acquisition. Acquisition revenues for the three months ended July 3, 2026, for the Intelligence & Digital and Homeland segments includes Kudu Dynamics (acquired May 23, 2025) and Entrust (acquired March 27, 2026). (2) Prior period divestiture revenues reflect revenues from assets subsequently divested. Divestiture revenues for the three months ended July 4, 2025, for the Homeland segment include an immaterial business not aligned to the Company's long term strategy (divested October 31, 2025). LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except per share data and margin percentages) The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended July 3, 2026: Three Months Ended July 3, 2026 As reported Acquisition, integration and restructuring costs (1) Amortization of acquired intangibles Asset impairment charges Non-GAAP results Operating income $ 514 $ 29 $ 40 $ 1 $ 584 Non-operating expense, net (63) — — — (63) Income before income taxes 451 29 40 1 521 Income tax expense(2) (95) (3) (10) — (108) Net income 356 26 30 1 413 Less: net income attributable to non-controlling interest 2 — — — 2 Net income attributable to Leidos common stockholders $ 354 $ 26 $ 30 $ 1 $ 411 Diluted EPS attributable to Leidos common stockholders(3) $ 2.81 $ 0.21 $ 0.24 $ 0.01 $ 3.26 Diluted shares 126 126 126 126 126 Three Months Ended July 3, 2026 As reported Acquisition, integration and restructuring costs (1) Amortization of acquired intangibles Asset impairment charges Non-GAAP results Net income $ 356 $ 26 $ 30 $ 1 $ 413 Income tax expense(2) 95 3 10 — 108 Income before income taxes 451 29 40 1 521 Depreciation expense 41 — — — 41 Amortization of intangibles 40 — (40) — — Interest expense, net 69 — — — 69 Adjusted EBITDA $ 601 $ 29 $ — $ 1 $ 631 Adjusted EBITDA margin 13.2 % 13.8 % (1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations. (2) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. (3) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding. LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except per share data and margin percentages) The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended July 4, 2025: Three Months Ended July 4, 2025 As reported Acquisition, integration and restructuring costs Amortization of acquired intangibles Non-GAAP results Operating income $ 571 $ 2 $ 32 $ 605 Non-operating expense, net (53) — — (53) Income before income taxes 518 2 32 552 Income tax expense(1) (125) (1) (7) (133) Net income 393 1 25 419 Less: net income attributable to non-controlling interest 2 — — 2 Net income attributable to Leidos common stockholders $ 391 $ 1 $ 25 $ 417 Diluted EPS attributable to Leidos common stockholders(2) $ 3.01 $ 0.01 $ 0.19 $ 3.21 Diluted shares 130 130 130 130 Three Months Ended July 4, 2025 As reported Acquisition, integration and restructuring costs Amortization of acquired intangibles Non-GAAP results Net income $ 393 $ 1 $ 25 $ 419 Income tax expense(1) 125 1 7 133 Income before income taxes 518 2 32 552 Depreciation expense 40 — — 40 Amortization of intangibles 32 — (32) — Interest expense, net 55 — — 55 Adjusted EBITDA $ 645 $ 2 $ — $ 647 Adjusted EBITDA margin 15.2 % 15.2 % (1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. (2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding. LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except per share data and margin percentages) The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the six months ended July 3, 2026: Six Months Ended July 3, 2026 As reported Acquisition, integration and restructuring costs(1) Amortization of acquired intangibles Asset impairment charges Settlement loss on pension plan buy-out Acquisition related financing costs Non-GAAP results Operating income $ 1,022 $ 64 $ 70 $ 1 $ — $ — $ 1,157 Non-operating expense, net (142) — — — 23 5 (114) Income before income taxes 880 64 70 1 23 5 1,043 Income tax expense(2) (189) (9) (17) — (6) (1) (222) Net income 691 55 53 $ 1 $ 17 $ 4 821 Less: net income attributable to non-controlling interest 9 — — — — — 9 Net income attributable to Leidos common stockholders $ 682 $ 55 $ 53 $ 1 $ 17 $ 4 $ 812 Diluted EPS attributable to Leidos common stockholders(3) $ 5.37 $ 0.43 $ 0.42 $ 0.01 $ 0.13 $ 0.03 $ 6.39 Diluted shares 127 127 127 127 127 127 127 Six Months Ended July 3, 2026 As reported Acquisition, integration and restructuring costs(1) Amortization of acquired intangibles Asset impairment charges Settlement loss on pension plan buy-out Acquisition related financing costs Non-GAAP results Net income $ 691 $ 55 $ 53 $ 1 $ 17 $ 4 $ 821 Income tax expense(2) 189 9 17 — 6 1 222 Income before income taxes 880 64 70 1 23 5 1,043 Depreciation expense 83 — — — — — 83 Amortization of intangibles 70 — (70) — — — — Interest expense, net 124 — — — — (5) 119 Adjusted EBITDA $ 1,157 $ 64 $ — $ 1 $ 23 $ — $ 1,245 Adjusted EBITDA margin 12.9 % 13.9 % (1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations. (2) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. (3) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except per share data and margin percentages) The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the six months ended July 4, 2025: Six Months Ended July 4, 2025 As reported Acquisition, integration and restructuring costs(1) Amortization of acquired intangibles Non-GAAP results Operating income $ 1,101 $ 7 $ 62 $ 1,170 Non-operating expense, net (105) — — (105) Income before income taxes 996 7 62 1,065 Income tax expense(2) (238) (2) (15) (255) Net income 758 5 47 810 Less: net loss attributable to non-controlling interest 4 — — 4 Net income attributable to Leidos common stockholders $ 754 $ 5 $ 47 $ 806 Diluted EPS attributable to Leidos common stockholders(3) $ 5.80 $ 0.04 $ 0.36 $ 6.20 Diluted shares 130 130 130 130 Six Months Ended July 4, 2025 As reported Acquisition, integration and restructuring costs(1) Amortization of acquired intangibles Non-GAAP results Net income $ 758 $ 5 $ 47 $ 810 Income tax expense(2) 238 2 15 255 Income before income taxes 996 7 62 1,065 Depreciation expense 79 — — 79 Amortization of intangibles 62 — (62) — Interest expense, net 104 — — 104 Adjusted EBITDA $ 1,241 $ 7 $ — $ 1,248 Adjusted EBITDA margin 14.6 % 14.7 % (1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations. (2) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. (3) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding. LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except margin percentages) The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income: Three Months Ended July 3, 2026 Operating income (loss) Acquisition, integration and restructuring costs(1) Amortization of acquired intangibles Asset impairment charges Non-GAAP operating income (loss) Non-GAAP operating margin Intelligence & Digital $ 142 $ 1 $ 7 $ 1 $ 151 10.1 % Health 254 2 3 — 259 23.8 % Homeland 92 12 19 — 123 12.1 % Defense 84 — 11 — 95 9.9 % Corporate (58) 14 — — (44) NM Total $ 514 $ 29 $ 40 $ 1 $ 584 12.8 % NM - Not Meaningful (1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations Three Months Ended July 4, 2025 Operating income (loss) Acquisition, integration and restructuring costs Amortization of acquired intangibles Non-GAAP operating income (loss) Non-GAAP operating margin Intelligence & Digital $ 135 $ — $ 7 $ 142 10.1 % Health 303 — 6 309 26.3 % Homeland 64 1 7 72 9.3 % Defense 78 — 12 90 10.0 % Corporate (9) 1 — (8) NM Total $ 571 $ 2 $ 32 $ 605 14.2 % Six Months Ended July 3, 2026 Operating income (loss) Acquisition, integration and restructuring costs(1) Amortization of acquired intangibles Asset impairment charges Non-GAAP operating income (loss) Non-GAAP operating margin Intelligence & Digital $ 288 $ 2 $ 15 $ 1 $ 306 10.2 % Health 538 2 7 — 547 24.1 % Homeland 125 41 26 — 192 10.5 % Defense 146 — 22 — 168 9.1 % Corporate (75) 19 — — (56) NM Total $ 1,022 $ 64 $ 70 $ 1 $ 1,157 12.9 % NM - Not Meaningful (1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations. LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except margin percentages) The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income: Six Months Ended July 4, 2025 Operating income (loss) Acquisition, integration and restructuring costs(1) Amortization of acquired intangibles Non-GAAP operating income (loss) Non-GAAP operating margin Intelligence & Digital $ 267 $ — $ 12 $ 279 9.9 % Health 591 — 12 603 25.5 % Homeland 125 5 14 144 9.3 % Defense 152 — 24 176 9.9 % Corporate (34) 2 — (32) NM Total $ 1,101 $ 7 $ 62 $ 1,170 13.8 % NM - Not Meaningful (1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations. LEIDOS HOLDINGS, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED] (in millions, except percentages) The following table presents the reconciliation of free cash flow to net cash provided by operating activities as well as the calculation of operating cash flow and free cash flow conversion ratios: Three Months Ended July 3, 2026 July 4, 2025 Net cash provided by operating activities $ 793 $ 486 Payments for property, equipment and software (32) (29) Non-GAAP free cash flow $ 761 $ 457 Net income attributable to Leidos common stockholders $ 354 $ 391 Acquisition, integration and restructuring costs(1)(2) 26 1 Amortization of acquired intangibles(1) 30 25 Asset impairment charges(1) 1 — Non-GAAP net income attributable to Leidos common stockholders $ 411 $ 417 Operating cash flow conversion ratio 224 % 124 % Non-GAAP free cash flow conversion ratio 185 % 110 % (1) After-tax expenses excluded from non-GAAP net income. (2) Asset markdowns associated with restructuring activities for the three months ended July 3, 2026, were recorded to "Cost of revenues" in the condensed consolidated statements of operations. SOURCE Leidos Holdings, Inc.
	Saved 2026-08-04 12:07 1mo ago Published 2026-08-04 06:30 1mo ago	IDEXX zvýšila výnosy i upravené EPS a zvedla výhled IDEXX Laboratories ve 2. čtvrtletí zvýšila výnosy o 10 % na 1,217 miliardy USD a upravené EPS o 18 % na 4,27 USD. Zároveň zvedla celoroční výhled výnosů i EPS. IDXX IDEXX Laboratories	FMP Stock News	92
Original source text WESTBROOK, Maine--(BUSINESS WIRE)--IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced second quarter results. Second Quarter Results The Company reports revenues of $1,217 million for the second quarter of 2026, an increase of 10% as reported and 9% organic, driven by Companion Animal Group ("CAG") growth of 9% as reported and organic, Water revenue growth of 15% as reported and 13% organic, and LPD revenue growth of 11% as reported and 9% organic. Second quarter earnings per diluted share (“EPS”) were $4.27, an increase of 18% as reported and 15% on a comparable basis. Second quarter EPS included $0.14 per share in tax benefits from share-based compensation and $0.06 per share benefit from year-over-year currency changes. “Our second quarter results reflect the strength of our Technology for Life strategy, with continued innovation across our Catalyst, Fecal Dx, and IDEXX inVue Dx platforms supporting deeper customer adoption and higher diagnostic utilization,” said Mike Erickson, President and Chief Executive Officer. “This is the kind of durable, compounding growth we're building for the long term, helping veterinarians see more and do more for their patients while creating lasting value for our shareholders.” Second Quarter Performance Highlights Companion Animal Group (“CAG”) CAG revenue growth was led by CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic, including 14% reported and 12% organic gains in International regions, and 10% reported and organic growth in the U.S., outpacing sector growth levels. Additional U.S. companion animal practice key metrics are available in the Q2 2026 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors. Exceptional commercial execution - including strong volume gains, net customer expansion, benefits from IDEXX innovation, and growth of the premium instrument installed base - drove double-digit CAG Diagnostics recurring revenue growth. IDEXX VetLab™ consumables generated 15% reported and 14% organic revenue growth, supported by testing utilization gains, including benefits from recent product launches and net new customer growth with 11% expansion of the IDEXX global premium instrument installed base and net price gains. Reference laboratory diagnostic and consulting services generated 11% reported and 10% organic revenue growth, driven by higher testing volumes and net new customer gains. Rapid assay products revenues increased 1% as reported and on an organic basis, driven by net price benefits and an easing of the volume impacts from adoption of the Catalyst™ Pancreatic Lipase Test, which has shifted some testing across modalities. CAG Diagnostics capital instrument revenues decreased 19% as reported and 20% on an organic basis, lapping the Q2 2025 broad availability of IDEXX inVue Dx, with current-year period revenue benefiting from over 1,600 IDEXX inVue Dx placements. Veterinary software, services and diagnostic imaging systems revenues grew 12% on a reported and organic basis for the quarter, with benefits from cloud-native software growth and installed base expansion. Diagnostic imaging systems delivered another record quarter of installations, led by ImageVue™ DR50 Plus. Water Water revenues grew 15% as reported and 13% organic for the quarter, reflecting solid organic growth in the U.S. and Europe. Livestock, Poultry and Dairy (“LPD”) LPD revenues increased 11% as reported and 9% organic for the quarter, led by strong growth in the Americas. Gross Profit and Operating Profit Gross profit increased 12% as reported and 11% on a comparable basis. Gross margin of 64.0% increased 140 basis points as reported and 120 basis points on a comparable basis, supported by strong recurring revenue volume gains, operational productivity initiatives, and net price realization. Operating margin was 35.0% for the quarter, higher than the prior year period by 140 basis points as reported and by 110 basis points on a comparable basis. Operating margin results reflect a 10% operating expense increase as reported and 9% growth on a comparable basis. Operating expense growth supported expansion of commercial capabilities, advancement of the Company's innovation agenda, and enabling information technology investments. 2026 Growth and Financial Performance Outlook The Company is updating its full year revenue growth guidance range to $4,700 million - $4,745 million, or reported growth of 9.1% - 10.3%, an increase of $5 million at midpoint, net of a $15 million reduction to projected revenues from a stronger U.S. dollar. The Company is increasing its outlook for organic revenue growth to 8.5% - 9.7%, an increase of 0.4% at midpoint, reflecting operational performance. The Company increased its full year reported operating margin outlook to 32.3% - 32.5%, bringing the projected full year operating profit margin expansion to 70 - 90 basis points as reported and on a comparable basis. This outlook benefits from strong second quarter operating performance, while advancing strategic investment priorities. The Company updated its EPS outlook range to $14.69 - $14.94, reflecting increased reported growth of 12% - 14% and 13% - 15% comparable growth. At midpoint this reflects benefits of $0.14 per share from operational performance; $0.05 from higher share-based compensation benefits and a $0.05 headwind from updated estimates for foreign exchange impacts. The following table provides the Company's updated outlook for annual key financial metrics in 2026 with a comparison to the prior outlook: Amounts in millions except per share data and percentages 2026 Growth and Financial Performance Outlook Updated Prior Revenue $4,700 - $4,745 $4,675 - $4,760 Reported growth 9.1% - 10.3% 8.6% - 10.6% Organic growth 8.5% - 9.7% 7.7% - 9.7% CAG Diagnostics Recurring Revenue Growth Reported growth 10.1% - 11.3% 9.6% - 11.6% Organic growth 9.5% - 10.7% 8.7% - 10.7% Operating Margin 32.3% - 32.5% 32.1% - 32.5% Operating margin expansion 70 bps - 90 bps 50 bps - 90 bps Comparable margin expansion 70 bps - 90 bps 50 bps - 90 bps EPS $14.69 - $14.94 $14.45 - $14.90 Reported growth 12% - 14% 11% - 14% Comparable growth 13% - 15% 11% - 15% Other Key Metrics Net interest expense ~ $35 ~ $34 Share-based compensation tax benefit ~ $19 ~ $15 Share-based compensation tax rate benefit ~ 1.3% ~ 1.0% Effective tax rate ~ 21.1% ~ 21.4% Share-based compensation EPS impact ~ $0.24 ~ $0.19 Reduction in average shares outstanding 1.5% - 2% 1% - 2% Operating Cash Flow (% of Net Income) 110% - 120% 105% - 115% Free Cash Flow (% of Net Income) 90% - 100% 85% - 95% Capital Expenditures ~ $180 ~ $180 The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2026. Estimated Foreign Currency Exchange Rate Impacts 2026 Revenue growth rate impact ~0.6% CAG Diagnostics recurring revenue growth rate impact ~0.6% Operating margin growth impact ~ 30 bps EPS impact ~ $0.22 EPS growth impact ~ 2% Go-Forward Foreign Currency Exchange Rate Assumptions 2026 In U.S. dollars euro $1.14 British pound $1.32 Canadian dollar $0.70 Australian dollar $0.69 Relative to the U.S. dollar Japanese yen ¥162 Chinese renminbi ¥6.80 Brazilian real R$5.20 Conference Call and Webcast Information IDEXX Laboratories, Inc. will host a conference call today at 8:30 a.m. (ET) to discuss its second quarter 2026 results and management’s outlook. Individuals can access a live webcast of the conference call through a link on the IDEXX website, www.idexx.com/investors. An archived edition of the webcast will be available after 1:00 p.m. (ET) via the same link and will remain available for one year. The live call also will be accessible by telephone. To listen to the live conference call, please dial 1-800-330-6730 or 1-213-279-1575 and reference passcode 922025. 2026 Investor Day IDEXX Laboratories, Inc. will host its 2026 Investor Day on Thursday, August 13, 2026 from 8:00 am to approximately 12:00 pm (ET). A live webcast and accompanying slide presentations will be available at www.idexx.com/investors. An archived webcast replay of the event will be available approximately one hour following the event at www.idexx.com/investors. For additional information, contact [email protected]. About IDEXX Laboratories, Inc. IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help measure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500™ Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com. Note Regarding Forward-Looking Statements This earnings release and the statements to be made in the accompanying earnings conference call contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the Company’s business prospects and estimates of the Company’s financial results for future periods. Forward-looking statements are included above under "2026 Growth and Financial Performance Outlook" and elsewhere and can be identified by the use of words such as "expects", "may", "anticipates", "intends", "would", "will", "plans", "believes", "estimates", "projected", "should", and similar words and expressions. Our forward-looking statements include statements relating to our expectations regarding financial performance; revenue growth and EPS outlooks; operating and free cash flow forecast; projected impact of foreign currency exchange rates and interest rates; projected operating margins and expenses and capital expenditures, including anticipated investments in global commercial capabilities and innovation; projected tax, tax rate and EPS benefits from share-based compensation arrangements; projected effective tax rates, reduction of average shares outstanding and net interest expense; trends and other factors impacting the pet healthcare industry, including pet population demographics and U.S. clinical visits, and their anticipated effects on the Company; IDEXX inVue Dx analyzer placements; IDEXX Cancer Dx testing panel expansion; rollout of Fine Needle Aspiration to the IDEXX inVue Dx analyzer; and future commercial expansions. These statements are intended to provide management's expectations or forecasts of future events as of the date of this earnings release; are based on management's estimates, projections, beliefs, and assumptions as of the date of this earnings release; and are not guarantees of future performance. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among other things, the adverse impact, and the duration, of macroeconomic events, conditions, and uncertainties, such as geopolitical instability (including wars, terrorist attacks, and armed conflicts), general economic uncertainty, changes in U.S. and other countries’ tariff and trade policies, severe weather and other natural conditions, and supply chain challenges on our business, results of operations, liquidity, financial condition, and stock price, as well as the matters described under the headings "Business," "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in the corresponding sections of the Company's Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, as well as those described from time to time in the Company’s other filings with the U.S. Securities and Exchange Commission available at www.sec.gov. The Company specifically disclaims any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Statement Regarding Non-GAAP Financial Measures The following defines terms and conventions and provides reconciliations regarding certain measures used in this earnings release and/or the accompanying earnings conference call that are not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"), otherwise referred to as non-GAAP financial measures. To supplement the Company’s consolidated results presented in accordance with GAAP, the Company has disclosed non-GAAP financial measures that exclude or adjust certain items. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors’ evaluation of the Company’s business performance and liquidity and are useful for period-over-period comparisons of the performance of the Company’s business and its liquidity and to the performance and liquidity of our peers. While management believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. Constant currency - Constant currency references are non-GAAP financial measures which exclude the impact of changes in foreign currency exchange rates and are consistent with how management evaluates our performance and comparisons with prior and future periods. We estimate the net impacts of currency on our revenue, gross profit, operating profit, and EPS results by restating results to the average exchange rates or exchange rate assumptions for the comparative period, which includes adjusting for the estimated impacts of foreign currency hedging transactions and certain impacts on our effective tax rates. These estimated currency changes impacted second quarter 2026 results as follows: increased gross profit growth by 1.1%, increased gross margin expansion 20 basis points, increased operating expense growth by 0.5%, increased operating profit growth by 1.6%, increased operating profit margin growth by 30 basis points, and increased EPS growth by 1.7%. Constant currency revenue growth represents the percentage change in revenue during the applicable period, as compared to the prior year period, excluding the impact of changes in foreign currency exchange rates. See the supplementary analysis of results below for revenue percentage change from currency for the three and six months ended June 30, 2026 and refer to the 2026 Growth and Financial Performance Outlook section of this earnings release for estimated foreign currency exchange rate impacts on 2026 projections and estimates. Growth and organic revenue growth - All references to growth and organic growth refer to growth compared to the equivalent prior year period unless specifically noted. Organic revenue growth is a non-GAAP financial measure that represents the percentage change in revenue, as compared to the same period for the prior year, net of the effect of changes in foreign currency exchange rates, certain business acquisitions, and divestitures. Management believes that reporting organic revenue growth provides useful information to investors by facilitating easier comparisons of our revenue performance with prior and future periods and to the performance of our peers. Organic revenue growth should be considered in addition to, and not as a replacement of or a superior measure to, revenue growth reported in accordance with GAAP. See the supplementary analysis of results below for a reconciliation of reported revenue growth to organic revenue growth for the three and six months ended June 30, 2026. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Please refer to the 2026 Growth and Financial Performance Outlook section of this earnings release for estimated full year 2026 organic revenue growth for the Company and CAG Diagnostics recurring revenue growth. The percentage change in revenue resulting from acquisitions represents revenues during the current year period, limited to the initial 12 months from the date of the acquisition, that are directly attributable to business acquisitions. Revenue from acquisitions is expected to have an immaterial impact on projected full year 2026 revenue growth and no impact on CAG Diagnostics recurring revenue growth. We exclude from organic revenue growth the effect of changes in foreign currency exchange rates because changes in foreign currency exchange rates are not under management’s control, are subject to volatility, and can obscure underlying business trends. We calculate the impact on revenue resulting from changes in foreign currency exchange rates by applying the difference between the weighted average exchange rates during the current year period and the comparable prior year period to foreign currency denominated revenues for the prior year period. We also exclude from organic revenue growth the effect of certain business acquisitions and divestitures because the nature, size, and number of these transactions can vary dramatically from period to period, and because they either require or generate cash as an inherent consequence of the transaction, and therefore can also obscure underlying business and operating trends. We consider acquisitions to be a business when all three elements of inputs, processes, and outputs are present, consistent with ASU 2017-01, “Business Combinations: (Topic 805) Clarifying the Definition of a Business.” We do not consider acquired assets to be a business if substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. A typical acquisition that we do not consider a business is a customer relationship asset acquisition, which does not have all elements necessary to operate a business, such as employees or infrastructure. Revenue from these customers acquired is included in organic revenue growth because we believe the efforts required to convert and retain these acquired customers are similar in nature to our efforts to obtain and retain our existing customer base. Comparable growth metrics - Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) are non-GAAP financial measures and exclude the impact of changes in foreign currency exchange rates and non-recurring or unusual items (if any). Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Management believes that reporting comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) provides useful information to investors because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding key metrics used by management. Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) should be considered in addition to, and not as replacements of or superior measures to, gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain reported in accordance with GAAP. The reconciliation of these non-GAAP financial measures is as follows: Three Months Ended Year-over-Year Six Months Ended Year-over-Year June 30, June 30, Change June 30, June 30, Change Dollar amounts in thousands 2026 2025 2026 2025 Gross profit and growth (as reported) $ 779,087 $ 694,732 12 % $ 1,501,826 $ 1,318,111 14 % Gross margin and margin gain 64.0 % 62.6 % 140 bps 63.7 % 62.5 % 120 bps Less: comparability adjustments Change from currency 7,511 — 27,982 — Comparable gross profit and growth $ 771,576 $ 694,732 11 % $ 1,473,844 $ 1,318,111 12 % Comparable gross margin and margin gain 63.9 % 62.6 % 120 bps 63.6 % 62.5 % 110 bps Operating expenses and growth (as reported) $ 353,521 $ 321,686 10 % $ 713,674 $ 628,531 14 % Less: comparability adjustments Change from currency 1,458 — 7,728 — Loss on equity investment — — 5,000 — Now-concluded litigation matter — — — (8,600) Comparable operating expense and growth $ 352,063 $ 321,686 9 % $ 700,946 $ 637,131 10 % Operating profit and growth (as reported) $ 425,566 $ 373,046 14 % $ 788,152 $ 689,580 14 % Operating margin and margin gain 35.0 % 33.6 % 140 bps 33.4 % 32.7 % 70 bps Less: comparability adjustments Change from currency 6,053 — 20,254 — Loss on equity investment — — (5,000 ) — Now-concluded litigation matter — — — 8,600 Comparable operating profit and growth $ 419,513 $ 373,046 12 % $ 772,898 $ 680,980 13 % Comparable operating margin and margin gain 34.7 % 33.6 % 110 bps 33.3 % 32.3 % 100 bps Amounts presented may not recalculate due to rounding. Projected 2026 comparable operating margin expansion outlined in the 2026 Growth and Financial Performance Outlook section of this earnings release reflects the following adjustments: (i) full year 2026 reported operating margin adjusted for a $5 million unfavorable impact of loss on an equity investment; (ii) adjustment to projected 2026 operating margin for a positive impact from year-over-year foreign currency exchange rate changes at noted exchange rates; and (iii) adjustment to 2025 operating margin for the positive impact of the approximately $9 million discrete litigation expense accrual adjustment in the second quarter of 2025. These impacts described above reconcile reported gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain (including projected 2026) to comparable gross profit growth, comparable gross margin gain, comparable operating expense growth, comparable operating profit growth and comparable operating margin gain for the Company. Comparable EPS growth - Comparable EPS growth is a non-GAAP financial measure that represents the percentage change in earnings per share (diluted) ("EPS") for a measurement period, as compared to the prior base period, net of the impact of changes in foreign currency exchange rates from the prior base period and excluding the tax benefits of share-based compensation activity under ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," and non-recurring or unusual items (if any). Management believes comparable EPS growth is a more useful way to measure the Company’s business performance than EPS growth because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding a key metric used by management. Comparable EPS growth should be considered in addition to, and not as a replacement of or a superior measure to, EPS growth reported in accordance with GAAP. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. The reconciliation of this non-GAAP financial measure is as follows: Three Months Ended Year-over-Year Six Months Ended Year-over-Year June 30, June 30, Growth June 30, June 30, Growth 2026 2025 2026 2025 Earnings per share (diluted) and growth $ 4.27 $ 3.63 18 % $ 7.74 $ 6.59 17 % Less: comparability adjustments Share-based compensation activity 0.14 0.10 0.23 0.11 Loss on equity investment — — (0.05 ) — Now-concluded litigation matter — — — 0.08 Change from currency 0.06 — 0.20 — Comparable EPS and growth $ 4.07 $ 3.53 15 % $ 7.36 $ 6.40 15 % Amounts presented may not recalculate due to rounding. Projected 2026 comparable EPS growth outlined in the 2026 Growth and Financial Performance Outlook section of this earnings release reflects the following adjustments: (i) adjustment to projected full year 2026 reported EPS for estimated positive year-over-year foreign currency exchange rate change impact of $0.22 at noted exchange rates; (ii) adjustment to projected full year 2026 reported EPS for estimated positive impact of share-based compensation activity of $0.24; (iii) adjustment to projected full year 2026 EPS of $0.05 for unfavorable impact of a loss on an equity investment; (iv) adjustment to full year 2025 reported EPS for a positive $0.08 impact from the discrete litigation expense accrual adjustment in the second quarter of 2025; and (v) adjustment to full year 2025 reported EPS for positive impact of share-based compensation activity of $0.35. These impacts and those described in the constant currency note above reconcile reported EPS growth (including projected 2026 reported EPS growth) to comparable EPS growth for the Company. Segment and Other Income from Operations - We report segment income from operations in our Segment Information table below. Segment income from operations is a non-GAAP financial measure that adjusts for the impact of foreign currency transaction gains and losses and should be considered in addition to, and not as a replacement for, or superior measure to, income from operations. We exclude foreign currency transaction gains and losses for each reportable segment (CAG, Water, and LPD) from segment income from operations and report the full amount of foreign currency transaction gains and losses in Other. We believe that reporting segment income from operations provides supplemental analysis to help investors further evaluate each reportable segment’s business performance by excluding foreign currency transaction gains and losses, which are centrally managed by our corporate treasury function and which we do not consider relevant for assessing the results of each reportable segment’s operations. In addition, we believe that reporting segment income from operations provides information to investors regarding key metrics that are used by management, including our chief operating decision-maker, in evaluating the performance of each reportable segment. The reconciliation of this non-GAAP financial measure is as follows for the three and six months ended June 30, 2026 and 2025: Amounts in thousands Three Months Ended June 30, 2026 2025 Income from Operations Impact from Foreign Currency Segment and Other Income from Operations Income from Operations Impact from Foreign Currency Segment and Other Income from Operations CAG $ 393,069 $ 214 $ 393,283 $ 347,983 $ 494 $ 348,477 Water 30,258 16 30,274 24,606 36 24,642 LPD 2,395 16 2,411 (543 ) 38 (505 ) Other (156 ) (246 ) (402 ) 1,000 (568 ) 432 Total $ 425,566 $ — $ 425,566 $ 373,046 $ — $ 373,046 Amounts in thousands Six Months Ended June 30, 2026 2025 Income from Operations Impact from Foreign Currency Segment and Other Income from Operations Income from Operations Impact from Foreign Currency Segment and Other Income from Operations CAG $ 730,234 $ 604 $ 730,838 $ 642,554 $ 1,078 $ 643,632 Water 53,901 42 53,943 45,380 79 45,459 LPD 3,657 44 3,701 (462 ) 82 (380 ) Other 360 (690 ) (330 ) 2,108 (1,239 ) 869 Total $ 788,152 $ — $ 788,152 $ 689,580 $ — $ 689,580 Free cash flow - Free cash flow is a non-GAAP financial measure and means, with respect to a measurement period, the cash generated from operations during that period, reduced by the Company’s investments in property and equipment. Management believes free cash flow is a useful measure because it indicates the cash the operations of the business are generating after appropriate reinvestment for recurring investments in property and equipment that are required to operate the business. Free cash flow should be considered in addition to, and not as a replacement of or a superior measure to, net cash provided by operating activities. See the supplementary analysis of results below for our calculation of free cash flow for the three and six months ended June 30, 2026 and 2025. To estimate projected 2026 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of approximately $180 million. Free cash flow conversion, or the net income to free cash flow ratio, is a non-GAAP financial measure that is defined as free cash flow, with respect to a measurement period, divided by net income for the same period. To calculate trailing twelve-month net income to free cash flow ratio for the twelve months ended June 30, 2026, we have deducted purchases of property and equipment of approximately $117 million from net cash provided from operating activities of approximately $1,372 million, divided by net income of approximately $1,140 million. Debt to Adjusted EBITDA (Leverage Ratios) - Adjusted EBITDA, gross debt, and net debt are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure of earnings before interest, taxes, depreciation, amortization, non-recurring transaction expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges. Management believes that reporting Adjusted EBITDA, gross debt, and net debt in the Debt to Adjusted EBITDA ratios provides supplemental analysis to help investors further evaluate the Company's business performance and available borrowing capacity under the Company's credit facility. Adjusted EBITDA, gross debt, and net debt should be considered in addition to, and not as replacements of or superior measures to, net income or total debt reported in accordance with GAAP. For further information on how Adjusted EBITDA and the Debt to Adjusted EBITDA Ratios are calculated, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Notes and Definitions Discrete litigation expense accrual - During the first quarter of 2025, the Company reduced its previously established $89.0 million accrual related to a concluded litigation matter by approximately $9 million, which represented our best estimate at that time of the amount of the loss. Concluded litigation matter - The Company was a defendant in a litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under an expired patent license agreement, and the trial court ruled in favor of the plaintiff in 2020. Following appeals and in light of the appellate court's April 3, 2025 decision, on April 17, 2025, the Company paid the judgment of approximately $80 million, and the plaintiff executed a satisfaction and release of judgment, which was filed with the trial court on the same date, concluding this matter. For further information, see the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. IDEXX Laboratories, Inc. and Subsidiaries Condensed Consolidated Statement of Operations Amounts in thousands except per share data (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2026 2025 2026 2025 Revenue: Revenue $ 1,216,585 $ 1,109,457 $ 2,357,405 $ 2,107,884 Expenses and Income: Cost of revenue 437,498 414,725 855,579 789,773 Gross profit 779,087 694,732 1,501,826 1,318,111 Sales and marketing 171,277 161,107 346,527 317,330 General and administrative 116,815 98,681 235,930 190,242 Research and development 65,429 61,898 131,217 120,959 Total operating expense 353,521 321,686 713,674 628,531 Income from operations 425,566 373,046 788,152 689,580 Non-operating income (expense), net (8,342 ) (10,694 ) (15,486 ) (17,144 ) Income before provision for income taxes 417,224 362,352 772,666 672,436 Provision for income taxes 78,812 68,363 155,808 135,770 Net Income: Net income attributable to stockholders $ 338,412 $ 293,989 $ 616,858 $ 536,666 Earnings per share: Basic $ 4.29 $ 3.66 $ 7.78 $ 6.64 Earnings per share: Diluted $ 4.27 $ 3.63 $ 7.74 $ 6.59 Shares outstanding: Basic 78,954 80,413 79,299 80,864 Shares outstanding: Diluted 79,312 80,994 79,742 81,465 IDEXX Laboratories, Inc. and Subsidiaries Selected Operating Information (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2026 2025 2026 2025 Operating Ratios Gross profit 64.0 % 62.6 % 63.7 % 62.5 % (as a percentage of revenue): Sales, marketing, general and administrative expense 23.7 % 23.4 % 24.7 % 24.1 % Research and development expense 5.4 % 5.6 % 5.6 % 5.7 % Income from operations1 35.0 % 33.6 % 33.4 % 32.7 % 1Amounts presented may not recalculate due to rounding. IDEXX Laboratories, Inc. and Subsidiaries Segment and Other Information Amounts in thousands (Unaudited) Three Months Ended June 30, 2026 Percent of Revenue June 30, 2025 Percent of Revenue Revenue: CAG $ 1,118,236 $ 1,022,443 Water 58,564 51,001 LPD 35,181 31,762 Other 4,604 4,251 Total $ 1,216,585 $ 1,109,457 Gross Profit: CAG $ 715,787 64.0 % $ 642,102 62.8 % Water 43,598 74.4 % 35,511 69.6 % LPD 18,651 53.0 % 14,929 47.0 % Other 1,051 22.8 % 2,190 51.5 % Total $ 779,087 64.0 % $ 694,732 62.6 % Income from Operations: CAG $ 393,283 35.2 % $ 348,477 34.1 % Water 30,274 51.7 % 24,642 48.3 % LPD 2,411 6.9 % (505 ) (1.6 %) Other (402 ) (8.7 %) 432 10.2 % Total $ 425,566 35.0 % $ 373,046 33.6 % Six Months Ended June 30, 2026 Percent of Revenue June 30, 2025 Percent of Revenue Revenue: CAG $ 2,172,288 $ 1,942,279 Water 108,829 96,322 LPD 67,664 60,358 Other 8,624 8,925 Total $ 2,357,405 $ 2,107,884 Gross Profit: CAG $ 1,383,296 63.7 % $ 1,216,925 62.7 % Water 80,135 73.6 % 67,584 70.2 % LPD 35,561 52.6 % 29,294 48.5 % Other 2,834 32.9 % 4,308 48.3 % Total $ 1,501,826 63.7 % $ 1,318,111 62.5 % Income from Operations: CAG $ 730,838 33.6 % $ 643,632 33.1 % Water 53,943 49.6 % 45,459 47.2 % LPD 3,701 5.5 % (380 ) (0.6 %) Other (330 ) (3.8 %) 869 9.7 % Total $ 788,152 33.4 % $ 689,580 32.7 % IDEXX Laboratories, Inc. and Subsidiaries Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets Amounts in thousands (Unaudited) Three Months Ended June 30, 2026 June 30, 2025 Dollar Change Reported Revenue Growth1 Percentage Change from Currency Percentage Change from Acquisitions Organic Revenue Growth1 Net Revenue CAG $ 1,118,236 $ 1,022,443 $ 95,793 9.4 % 0.6 % — 8.7 % United States 734,892 684,497 50,395 7.4 % — — 7.4 % International 383,344 337,946 45,398 13.4 % 1.9 % — 11.5 % Water $ 58,564 $ 51,001 $ 7,563 14.8 % 1.9 % — 13.0 % United States 29,621 26,090 3,531 13.5 % — — 13.5 % International 28,943 24,911 4,032 16.2 % 3.8 % — 12.4 % LPD $ 35,181 $ 31,762 $ 3,419 10.8 % 1.8 % — 9.0 % United States 6,608 5,767 841 14.6 % — — 14.6 % International 28,573 25,995 2,578 9.9 % 2.1 % — 7.8 % Other $ 4,604 $ 4,251 $ 353 8.3 % — — 8.3 % Total Company $ 1,216,585 $ 1,109,457 $ 107,128 9.7 % 0.7 % — 9.0 % United States 772,968 717,869 55,099 7.7 % — — 7.7 % International 443,617 391,588 52,029 13.3 % 2.0 % — 11.2 % Three Months Ended June 30, 2026 June 30, 2025 Dollar Change Reported Revenue Growth1 Percentage Change from Currency Percentage Change from Acquisitions Organic Revenue Growth1 Net CAG Revenue CAG Diagnostics recurring revenue: $ 974,713 $ 877,995 $ 96,718 11.0 % 0.7 % — 10.3 % IDEXX VetLab consumables 430,337 375,112 55,225 14.7 % 1.1 % — 13.6 % Rapid assay products 101,575 100,240 1,335 1.3 % 0.3 % — 1.1 % Reference laboratory diagnostic and consulting services 406,729 367,694 39,035 10.6 % 0.3 % — 10.3 % CAG Diagnostics services and accessories 36,072 34,949 1,123 3.2 % 1.1 % — 2.1 % CAG Diagnostics capital – instruments $ 47,174 $ 58,600 ($ 11,426 ) (19.5 %) 0.1 % — (19.6 %) Veterinary software, services and diagnostic imaging systems: $ 96,349 $ 85,848 $ 10,501 12.2 % 0.4 % — 11.8 % Recurring revenue 76,343 68,954 7,389 10.7 % 0.5 % — 10.2 % Systems and hardware 20,006 16,894 3,112 18.4 % 0.2 % — 18.2 % Net CAG revenue $ 1,118,236 $ 1,022,443 $ 95,793 9.4 % 0.6 % — 8.7 % Three Months Ended June 30, 2026 June 30, 2025 Dollar Change Reported Revenue Growth1 Percentage Change from Currency Percentage Change from Acquisitions Organic Revenue Growth1 CAG Diagnostics recurring revenue: $ 974,713 $ 877,995 $ 96,718 11.0 % 0.7 % — 10.3 % United States 630,504 575,009 55,495 9.7 % — — 9.7 % International 344,209 302,986 41,223 13.6 % 2.0 % — 11.6 % 1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. IDEXX Laboratories, Inc. and Subsidiaries Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets Amounts in thousands (Unaudited) Six Months Ended June 30, 2026 June 30, 2025 Dollar Change Reported Revenue Growth1 Percentage Change from Currency Percentage Change from Acquisitions Organic Revenue Growth1 Net Revenue CAG $ 2,172,288 $ 1,942,279 $ 230,009 11.8 % 1.7 % — 10.1 % United States 1,425,792 1,308,386 117,406 9.0 % — — 9.0 % International 746,496 633,893 112,603 17.8 % 5.4 % — 12.4 % Water $ 108,829 $ 96,322 $ 12,507 13.0 % 2.8 % — 10.2 % United States 56,014 49,593 6,421 12.9 % — — 12.9 % International 52,815 46,729 6,086 13.0 % 5.6 % — 7.4 % LPD $ 67,664 $ 60,358 $ 7,306 12.1 % 4.0 % — 8.2 % United States 12,992 11,555 1,437 12.4 % — — 12.4 % International 54,672 48,803 5,869 12.0 % 4.8 % — 7.2 % Other $ 8,624 $ 8,925 ($ 301 ) (3.4 %) — — (3.4 %) Total Company $ 2,357,405 $ 2,107,884 $ 249,521 11.8 % 1.8 % — 10.0 % United States 1,498,200 1,372,730 125,470 9.1 % — — 9.1 % International 859,205 735,154 124,051 16.9 % 5.3 % — 11.6 % Six Months Ended June 30, 2026 June 30, 2025 Dollar Change Reported Revenue Growth1 Percentage Change from Currency Percentage Change from Acquisitions Organic Revenue Growth1 Net CAG Revenue CAG Diagnostics recurring revenue: $ 1,895,026 $ 1,684,262 $ 210,764 12.5 % 1.8 % — 10.7 % IDEXX VetLab consumables 842,919 719,891 123,028 17.1 % 2.6 % — 14.5 % Rapid assay products 186,513 184,274 2,239 1.2 % 0.7 % — 0.5 % Reference laboratory diagnostic and consulting services 792,908 712,100 80,808 11.3 % 1.4 % — 10.0 % CAG Diagnostics services and accessories 72,686 67,997 4,689 6.9 % 2.3 % — 4.6 % CAG Diagnostics capital – instruments $ 89,623 $ 90,594 ($ 971 ) (1.1 %) 1.4 % — (2.5 %) Veterinary software, services and diagnostic imaging systems: $ 187,639 $ 167,423 $ 20,216 12.1 % 0.7 % — 11.4 % Recurring revenue 149,879 134,747 15,132 11.2 % 0.8 % — 10.5 % Systems and hardware 37,760 32,676 5,084 15.6 % 0.3 % — 15.2 % Net CAG revenue $ 2,172,288 $ 1,942,279 $ 230,009 11.8 % 1.7 % — 10.1 % Six Months Ended June 30, 2026 June 30, 2025 Dollar Change Reported Revenue Growth1 Percentage Change from Currency Percentage Change from Acquisitions Organic Revenue Growth1 CAG Diagnostics recurring revenue: $ 1,895,026 $ 1,684,262 $ 210,764 12.5 % 1.8 % — 10.7 % United States 1,224,987 1,111,986 113,002 10.2 % — — 10.2 % International 670,039 572,276 97,762 17.1 % 5.4 % — 11.6 % 1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding. IDEXX Laboratories, Inc. and Subsidiaries Condensed Consolidated Balance Sheet Amounts in thousands (Unaudited) June 30, 2026 December 31, 2025 Assets: Current Assets: Cash and cash equivalents $ 196,933 $ 180,070 Accounts receivable, net 627,083 552,378 Inventories 391,579 377,756 Other current assets 293,894 303,623 Total current assets 1,509,489 1,413,827 Property and equipment, net 733,238 747,380 Other long-term assets, net 1,199,608 1,189,552 Total assets $ 3,442,335 $ 3,350,759 Liabilities and Stockholders' Equity: Current Liabilities: Accounts payable $ 129,097 $ 110,408 Accrued liabilities 453,169 530,147 Line of credit 519,000 398,000 Current portion of long-term debt 149,999 74,995 Deferred revenue 36,400 35,264 Total current liabilities 1,287,665 1,148,814 Long-term debt, net of current portion 299,865 374,842 Other long-term liabilities, net 242,230 221,720 Total long-term liabilities 542,095 596,562 Total stockholders' equity 1,612,575 1,605,383 Total liabilities and stockholders' equity $ 3,442,335 $ 3,350,759 IDEXX Laboratories, Inc. and Subsidiaries Selected Balance Sheet Information (Unaudited) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Selected Balance Sheet Information: Days sales outstanding1 46.2 46.2 46.8 46.5 44.7 Inventory turns2 1.4 1.4 1.6 1.5 1.5 1Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days. 2Inventory turns are calculated as the ratio of our inventory-related cost of revenue for the quarter multiplied by four, divided by the average inventory balances at the beginning and end of each quarter. IDEXX Laboratories, Inc. and Subsidiaries Condensed Consolidated Statement of Cash Flows Amounts in thousands (Unaudited) Six Months Ended June 30, 2026 June 30, 2025 Operating: Cash Flows from Operating Activities: Net income $ 616,858 $ 536,666 Non-cash adjustments to net income 143,240 111,582 Changes in assets and liabilities (146,688 ) (224,543 ) Net cash provided by operating activities 613,410 423,705 Investing: Cash Flows from Investing Activities: Purchases of property and equipment (56,630 ) (64,128 ) Acquisitions (4,491 ) — Proceeds from net investment hedges 2,081 890 Net cash used by investing activities (59,040 ) (63,238 ) Financing: Cash Flows from Financing Activities: Borrowings under credit facility, net 121,000 329,000 Payments of senior notes — (103,386 ) Repurchases of common stock (697,840 ) (738,995 ) Proceeds from exercises of stock options and employee stock purchase plans 51,074 24,523 Shares withheld for statutory tax withholding payments on restricted stock (10,853 ) (7,094 ) Net cash used by financing activities (536,619 ) (495,952 ) Net effect of changes in exchange rates on cash (888 ) 11,813 Net increase (decrease) in cash and cash equivalents 16,863 (123,672 ) Cash and cash equivalents, beginning of period 180,070 288,266 Cash and cash equivalents, end of period $ 196,933 $ 164,594 IDEXX Laboratories, Inc. and Subsidiaries Free Cash Flow Amounts in thousands (Unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Free Cash Flow: Net cash provided by operating activities $ 347,162 $ 185,743 $ 613,410 $ 423,705 Investing cash flows attributable to purchases of property and equipment (24,646 ) (34,102 ) (56,630 ) (64,128 ) Free cash flow1 $ 322,516 $ 151,641 $ 556,780 $ 359,577 1See Statement Regarding Non-GAAP Financial Measures, above. IDEXX Laboratories, Inc. and Subsidiaries Common Stock Repurchases Amounts in thousands except per share data (Unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Shares repurchased in the open market 582 713 1,170 1,644 Shares acquired through employee surrender for statutory tax withholding — 2 17 16 Total shares repurchased 582 715 1,187 1,660 Cost of shares repurchased in the open market $ 332,046 $ 327,530 $ 692,879 $ 736,745 Cost of shares for employee surrenders 298 970 10,853 7,094 Total cost of shares $ 332,344 $ 328,500 $ 703,732 $ 743,839 Average cost per share – open market repurchases $ 570.72 $ 458.96 $ 592.41 $ 448.02 Average cost per share – employee surrenders $ 563.62 $ 513.46 $ 627.34 $ 452.84 Average cost per share – total $ 570.71 $ 459.10 $ 592.92 $ 448.07 More News From IDEXX Laboratories, Inc.
	Saved 2026-08-04 12:06 1mo ago Published 2026-08-04 06:00 1mo ago	Gartner zvýšil upravený EPS, tržby klesly Gartner ve 2. čtvrtletí zvýšil upravený EPS na 4,37 USD a čistý zisk na 275 mil. USD, zatímco tržby klesly na 1,676 mld. USD. IT Gartner	FMP Stock News	92
Original source text Diluted EPS: $4.14, +33.1%; Adjusted EPS: $4.37, +23.8% Contract Value, FX Neutral: $5.3 billion, +0.3% Sequentially, +1.7% YoY SECOND QUARTER 2026 HIGHLIGHTS Revenues: $1.7 billion, -0.6% as reported; -1.6% FX neutral. Adjusted Revenues: $1.7 billion, +2.8% as reported; +1.8% FX neutral. Net income: $275 million, +14.4% as reported; Adjusted EBITDA excluding divested operation: $466 million, +6.4% as reported, +4.4% FX neutral. Operating cash flow: $398 million, +3.8%; free cash flow: $378 million, +8.9%. Repurchased 3.6 million common shares for $547 million. Board of Directors increased the share repurchase authorization by $500 million in July 2026. STAMFORD, Conn.--(BUSINESS WIRE)--Gartner, Inc. (NYSE: IT) today reported results for the second quarter of 2026 and updated its financial outlook for the full year 2026. Additional information regarding the Company’s results as well as the updated 2026 financial outlook is provided in an earnings supplement available on the Company’s Investor Relations website at https://investor.gartner.com. Gene Hall, Gartner’s Chairman and Chief Executive Officer, commented, "Contract Value growth accelerated again. Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow were ahead of expectations. We repurchased $547 million of stock in the quarter, as our capital allocation continues to create value for our shareholders. In addition, we increased our full year Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow guidance even with the stronger dollar." CONFERENCE CALL INFORMATION The Company will host a webcast call at 8:00 a.m. Eastern time on Tuesday, August 4, 2026 to discuss the Company’s financial results. Listeners can access the webcast live at https://edge.media-server.com/mmc/p/siaqzruh. To participate actively in the live call via dial-in, please register at https://register-conf.media-server.com/register/BI60b3b327155d48c99835471ca69f3102. Once registered, participants will receive a dial-in number and a unique PIN to access the call. A replay of the webcast will be available on the Company’s website for approximately 30 days following the call. CONSOLIDATED RESULTS HIGHLIGHTS (Unaudited; $ in millions, except per share amounts) Three Months Ended June 30, Inc/(Dec) 2026 2025 Inc/(Dec) FX Neutral GAAP Metrics: Revenues $ 1,676 $ 1,686 (0.6 )% (1.6 )% Net income 275 241 14.4 % na Diluted EPS 4.14 3.11 33.1 % na Operating cash flow 398 384 3.8 % na Non-GAAP Metrics: Adjusted revenues $ 1,676 $ 1,631 2.8 % 1.8 % Adjusted EBITDA excluding divested operation 466 438 6.4 % 4.4 % Adjusted EPS 4.37 3.53 23.8 % na Free cash flow 378 347 8.9 % na na=not available. CONTRACT VALUE HIGHLIGHTS Global Technology Sales Contract Value FX Neutral (GTS CV): $4.0 billion, ~flat Sequentially, +1.1% YoY Global Business Sales Contract Value FX Neutral (GBS CV): $1.3 billion, +1.2% Sequentially, +3.3% YoY SEGMENT RESULTS HIGHLIGHTS Our segment results for the three months ended June 30, 2026 were as follows: (Unaudited; $ in millions) Insights Conferences Consulting Revenues $ 1,290 $ 244 $ 142 Inc/(Dec) 2.1 % 15.5 % (8.8 )% Inc/(Dec) - FX neutral 1.0 % 14.2 % (8.8 )% Gross contribution $ 999 $ 145 $ 54 Inc/(Dec) 4.0 % 19.6 % (12.6 )% Contribution margin 77.5 % 59.5 % 37.9 % Additional details regarding our segment results can be obtained from the earnings supplement, our quarterly report on Form 10–Q filed with the SEC on August 4, 2026 and our webcast. Certain financial metrics contained in this Press Release are considered non-GAAP financial measures. Definitions of these non-GAAP financial measures are included in this Press Release under “Non-GAAP Financial Measures” and the related reconciliations are under “Supplemental Information — Non-GAAP Reconciliations.” In this Press Release, some totals may not add due to rounding. The percentage changes are based on the unrounded whole number and recalculation based on millions may yield a different result. ABOUT GARTNER Gartner, Inc. (NYSE: IT) delivers actionable, objective business and technology insights that drive smarter decisions and stronger performance on an organization’s mission-critical priorities. FORWARD-LOOKING STATEMENTS Statements contained in this press release regarding the Company’s growth and prospects, projected financial results, long-term objectives, and all other statements in this release other than recitation of historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, estimates, uncertainties and other factors that may cause actual results to be materially different. Such factors include, but are not limited to, the following: our ability to maintain and expand our products and services; our ability to keep pace with technological and industry developments in artificial intelligence (“AI”) and comply with evolving AI regulations; our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures; our ability to grow or sustain revenue from individual customers; our ability to expand or retain our customer base; our ability to carry out our strategic initiatives and manage associated costs; the timing of conferences and meetings, in particular our Gartner Symposium/Xpo series; our ability to achieve and effectively manage growth, including our ability to integrate our acquisitions and consummate and integrate future acquisitions; our ability to attract and retain a professional staff of analysts and consultants as well as experienced sales personnel upon whom we are dependent, especially in light of labor competition; our ability to successfully compete with existing competitors and potential new competitors; our ability to enforce and protect our intellectual property rights; the impact of cybersecurity incidents or other disruptions to our information systems; our ability to pay our debt obligations; the impact of global economic and geopolitical conditions, including inflation (and related monetary policy by governments in response to inflation) and recession; uncertain effects, both direct and indirect, of changes and volatility in tariffs and trade policies; risks associated with the creditworthiness, budget cuts, priorities and shutdown of governments and agencies; additional risks associated with international operations, including foreign currency fluctuations; the impact on our business resulting from changes in international conditions, including those resulting from tensions in the Middle East, the war in Ukraine and current and future sanctions imposed by governments or other authorities; the impact of restructuring and other charges on our businesses and operations; our ability to meet sustainability commitments and comply with applicable regulatory requirements, as well as potential reactions by customers to these commitments; the impact of changes in tax policy (including global minimum tax legislation) and heightened scrutiny from various taxing authorities globally; changes to laws and regulations; and other risks and uncertainties described under “Risk Factors” in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which can be found on Gartner’s website at https://investor.gartner.com and the SEC’s website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and Gartner disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. NON-GAAP FINANCIAL MEASURES Certain financial measures used in this Press Release are not defined by U.S. generally accepted accounting principles (“GAAP”) and as such are considered non-GAAP financial measures. We provide these measures to enhance the user’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future. Investors are cautioned that these non-GAAP financial measures may not be defined in the same manner by other companies and, as a result, may not be comparable to other similarly titled measures used by other companies. Also, these non-GAAP financial measures should not be construed as alternatives, or superior, to other measures determined in accordance with GAAP. The non-GAAP financial measures used in this Press Release are defined below. Adjusted Revenues: Represents GAAP revenues less revenues from our Digital Markets divested operation. We believe Adjusted Revenues is an important measure of our recurring operations as it provides a more accurate period-over period comparison of trends in revenues. Adjusted EBITDA and Adjusted EBITDA Margin: Represents GAAP net income (loss) adjusted for: (i) interest expense, net; (ii) tax provision (benefit); (iii) gain on event cancellation insurance claims, as applicable; (iv) other (income) expense, net; (v) stock-based compensation expense; (vi) depreciation, amortization, and accretion; (vii) goodwill impairment and other asset impairments, as applicable, (viii) workforce reduction expenses and certain other non-recurring items and (ix) gain/loss on divestitures, as applicable. Adjusted EBITDA Margin represents Adjusted EBITDA divided by GAAP Revenue. We believe Adjusted EBITDA and Adjusted EBITDA Margin are important measures of our recurring operations as they exclude items not representative of our core operating results. Adjusted EBITDA Excluding Divested Operation and Adjusted EBITDA Margin Excluding Divested Operation: Represents Adjusted EBITDA as defined above less EBITDA from our Digital Markets divested operation. Adjusted EBITDA Margin Excluding Divested Operation represents Adjusted EBITDA Excluding Divested Operation divided by Adjusted Revenue. We believe Adjusted EBITDA Excluding Divested Operation and Adjusted EBITDA Margin Excluding Divested Operation are important measures of our recurring operations as it provides a more accurate and consistent period-over period comparison of our results. Adjusted Net Income and Adjusted EPS: Represents GAAP net income (loss) and diluted net income (loss) per share adjusted for the impact of certain items directly related to acquisitions and other non-recurring items. These adjustments include (on a per share basis, in the case of Adjusted EPS): (i) the amortization of acquired intangibles; (ii) workforce reduction expenses and other non-recurring items; (iii) gain on event cancellation insurance claims, as applicable; (iv) the non-cash (gain) loss on de-designated interest rate swaps, as applicable; (v) goodwill impairment and other asset impairments, as applicable, (vi) gain/loss on divestitures, as applicable. and (vii) the related tax impact. We believe Adjusted Net Income and Adjusted EPS are important measures of our recurring operations as they exclude items that may not be indicative of our core operating results. The Company excludes amortization of acquired intangibles because it is generally a fixed non-cash expense that can be significantly impacted by the timing and/or size of acquisitions and management does not use it to evaluate core operating results. Although the Company excludes the amortization of acquired intangibles from Adjusted Net Income and Adjusted EPS, management believes that it is important for investors to understand that such intangible assets were recorded as part of acquisition accounting and contribute to revenue generation. Free Cash Flow: Represents cash provided by operating activities determined in accordance with GAAP less payments for capital expenditures. We believe Free Cash Flow is an important measure of the recurring cash generated by the Company’s core operations that may be available to be used to repay debt obligations, repurchase our stock, invest in future growth through new business development activities, or make acquisitions. Foreign Currency Neutral (FX Neutral): We provide foreign currency neutral dollar amounts and percentages for our contract values, revenues, certain expenses, and other metrics. These foreign currency neutral dollar amounts and percentages eliminate the effects of exchange rate fluctuations and thus provide a more accurate and meaningful trend in the underlying data being measured. We calculate foreign currency neutral dollar amounts by converting the underlying amounts in local currency for different periods into U.S. dollars by applying the same foreign exchange rates to all periods presented. SUPPLEMENTAL INFORMATION - NON-GAAP RECONCILIATIONS The tables below provide reconciliations of certain Non-GAAP financial measures used in this Press Release with the most directly comparable GAAP measure. See “Non-GAAP Financial Measures” above for definitions of these measures. Reconciliation - GAAP Revenues to Adjusted Revenues (Unaudited; $ in millions) Three Months Ended June 30, 2026 2025 Total revenues $ 1,676 $ 1,686 Less: Divested operation revenues — (56 ) Adjusted revenues $ 1,676 $ 1,631 Reconciliation - GAAP Net Income to Adjusted EBITDA Excluding Divested Operation (Unaudited; $ in millions) Three Months Ended June 30, 2026 2025 GAAP net income $ 275 $ 241 Interest expense, net 22 12 Other expense (income), net 2 (2 ) Tax provision 79 77 Operating income 379 327 Adjustments: Stock-based compensation expense (a) 41 43 Depreciation, amortization and accretion (b) 45 51 Loss on impairment of lease related assets (c) — 1 Workforce reduction expenses and other non-recurring items (d) — 22 Gain from sale of divested operation (e) 1 — Adjusted EBITDA $ 466 $ 443 Less: Divested operation adjusted EBITDA (f) — (6 ) Adjusted EBITDA excluding divested operation $ 466 $ 438 (a) Consists of costs for stock-based compensation awards. (b) Includes depreciation expense, amortization of intangibles and accretion on asset retirement obligations. (c) Includes impairment loss for lease related assets. (d) Consists of workforce reduction expenses, direct and incremental expenses related to acquisitions and divestitures, facility-related exit costs and other non-recurring items, if applicable. (e) Consists of an adjustment to the gain from the February 2026 sale of our divested operation. (f) Divested operation adjusted EBITDA is calculated as divested operation contribution minus certain direct Selling, General, and Administrative expenses. It excludes allocations for corporate support services and other indirect costs that benefited the business. Reconciliation - GAAP Net Income and GAAP Net Income per Diluted Share to Adjusted Net Income and Adjusted EPS (Unaudited; $ in millions, except per share amounts) Three Months Ended June 30, 2026 2025 Amount Per Share Amount Per Share GAAP net income and GAAP net income per diluted share $ 275 $ 4.14 $ 241 $ 3.11 Acquisition and other adjustments: Amortization of acquired intangibles (a) 20 0.30 20 0.26 Workforce reduction expenses and other non-recurring items (b), (c) 1 0.02 23 0.29 Gain from sale of divested operation (d) 1 0.01 — — Loss on impairment of lease related assets (e) — — 1 0.01 Tax impact of adjustments (f) (6 ) (0.10 ) (11 ) (0.14 ) Adjusted net income and Adjusted EPS (g) $ 291 $ 4.37 $ 273 $ 3.53 (a) Consists of non-cash amortization from acquired intangibles. (b) Consists of workforce reduction expenses, direct and incremental expenses related to acquisitions and divestitures, facility-related exit costs and other non-recurring items, if applicable. (c) Includes the amortization of deferred financing fees, which are recorded in Interest expense, net in the Company’s accompanying Condensed Consolidated Statements of Operations. (d) Consists of an adjustment to the gain from the February 2026 sale of our divested operation. (e) Includes impairment loss for lease related assets. (f) The blended effective tax rates on the adjustments were approximately 29.1% and 25.5% for the three months ended June 30, 2026 and 2025, respectively. (g) Adjusted EPS was calculated based on 66.6 million and 77.4 million diluted shares for the three months ended June 30, 2026 and 2025, respectively. Reconciliation - GAAP Cash Provided by Operating Activities to Free Cash Flow (Unaudited; $ in millions) Three Months Ended June 30, 2026 2025 GAAP cash provided by operating activities $ 398 $ 384 Cash paid for capital expenditures (20 ) (36 ) Free Cash Flow $ 378 $ 347 GARTNER, INC. Condensed Consolidated Statements of Operations (Unaudited; in millions, except per share data) Three Months Ended June 30, 2026 2025 Revenues: Insights $ 1,289.8 $ 1,263.6 Conferences 244.2 211.4 Consulting 141.9 155.6 Other — 55.9 Total revenues 1,675.9 1,686.5 Costs and expenses: Cost of services and product development 487.0 531.7 Selling, general and administrative 764.6 777.0 Depreciation 25.1 30.5 Amortization of intangibles 20.0 20.2 Gain from sale of divested operation 0.7 — Total costs and expenses 1,297.4 1,359.4 Operating income 378.5 327.1 Interest expense, net (22.3 ) (11.8 ) Other (expense) income, net (1.6 ) 2.5 Income before income taxes 354.6 317.8 Provision for income taxes 79.1 77.0 Net income $ 275.5 $ 240.8 Net income per share: Basic $ 4.14 $ 3.12 Diluted $ 4.14 $ 3.11 Weighted average shares outstanding: Basic 66.5 77.2 Diluted 66.6 77.4 Source: Gartner, Inc. Gartner-IR More News From Gartner, Inc.
	Saved 2026-08-04 12:05 1mo ago Published 2026-08-04 07:00 1mo ago	Knife River zvýšila tržby, čistý zisk klesl Knife River ve 2. čtvrtletí zvýšila tržby o 13 % na 938,6 mil. USD, ale čistý zisk klesl o 13 % na 43,9 mil. USD. Firma potvrdila celoroční výhled tržeb 3,4 až 3,6 mld. USD. KNF Knife River Corporation	FMP Stock News	92
Original source text BISMARCK, N.D.--(BUSINESS WIRE)--Knife River Corporation (NYSE: KNF), an aggregates-based, vertically integrated construction materials and contracting services company, today announced financial results for the second quarter ended June 30, 2026. PERFORMANCE SUMMARY Three Months Ended June 30, (In millions, except per share) 2026 2025 % Change Revenue $ 938.6 $ 833.8 13 % Net income $ 43.9 $ 50.6 (13 )% Net income margin 4.7 % 6.1 % Adjusted EBITDA $ 139.7 $ 140.8 (1 )% Adjusted EBITDA margin 14.9 % 16.9 % Net income per share $ 0.77 $ 0.89 (13 )% Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures." "During the quarter, we delivered 13% year-over-year revenue growth, including 20% revenue growth in contracting services," said Knife River President and CEO Brian Gray. "That pull-through demand, combined with contributions from acquisitions, helped us generate double-digit volume and gross profit growth across our material product lines. Aggregate pricing also improved by 8% on a product mix-adjusted basis. The fundamentals of our business are strong. During the quarter, headwinds related to energy costs, delayed impact projects, and the type and timing of contracting services impacted Adjusted EBITDA and margins. Last year, we also benefited in the second quarter from $10.3 million in gains on asset sales, compared to just $650,000 this quarter. Despite these factors, we delivered strong operational results year-over-year. "With the majority of the construction season still ahead of us, we have opportunities to execute on our $1.2 billion contracting services backlog, driving volume and gross profit improvement in all of our product lines," Gray said. "Additionally, we continue to implement our self-help initiatives to improve margins — including price optimization and operational efficiencies. "The acquisitions we have completed over the last two years also continue to perform as expected, and we have several targets in our pipeline that align with our growth strategy," Gray said. "In addition, we have multiple organic growth projects underway across our footprint, including aggregates reserve expansions designed to strengthen our position, support future earnings growth and create long-term shareholder value." Knife River expects its full-year 2026 financial results to be in the ranges noted in the following table. 2026 Financial Guidance Low High (In millions) Revenue $ 3,400.0 $ 3,600.0 Adjusted EBITDA $ 520.0 $ 560.0 The company further expects: Aggregates volumes to increase high-single digits and pricing to increase mid-single digits. Ready-mix volumes to increase mid-teens. Asphalt volumes to increase high-single digits. Depreciation, depletion and amortization to increase mid-teens. The guidance ranges are based on normal weather, economic and operating conditions, and do not include the expected impact of future acquisitions. REPORTING SEGMENT PERFORMANCE West Alaska, California, Hawaii, Oregon, Washington Three Months Ended Six Months Ended June 30, June 30, 2026 2025 % Change 2026 2025 % Change (In millions) Revenue $ 290.4 $ 317.4 (9 )% $ 502.2 $ 525.7 (4 )% EBITDA $ 49.2 $ 60.7 (19 )% $ 71.4 $ 85.7 (17 )% EBITDA margin 17.0 % 19.1 % 14.2 % 16.3 % Second quarter revenue decreased 9% year-over-year, primarily due to less available public-agency work in Oregon, as well as delays in Hawaii and Alaska related to project phasing and weather. EBITDA decreased 19% compared to the prior year, reflecting decreased activity and lower-margin contracting services work, partially offset by higher aggregate and ready-mix pricing across the region. Mountain Idaho, Montana, Utah, Wyoming Three Months Ended Six Months Ended June 30, June 30, 2026 2025 % Change 2026 2025 % Change (In millions) Revenue $ 236.5 $ 176.1 34 % $ 317.7 $ 242.1 31 % EBITDA $ 31.0 $ 30.9 — % $ 22.8 $ 14.6 56 % EBITDA margin 13.1 % 17.6 % 7.2 % 6.0 % Second quarter revenue increased 34% from the prior year, largely driven by an increase in contracting services as well as acquisitions completed in the first quarter. EBITDA was flat, as the revenue growth was primarily offset by the timing of project performance gains and lower-margin contracting services work. Central Iowa, Minnesota, North Dakota, South Dakota, Texas Three Months Ended Six Months Ended June 30, June 30, 2026 2025 % Change 2026 2025 % Change (In millions) Revenue $ 325.6 $ 255.2 28 % $ 426.8 $ 323.1 32 % EBITDA $ 53.6 $ 44.4 21 % $ 26.8 $ 20.1 33 % EBITDA margin 16.5 % 17.4 % 6.3 % 6.2 % Second quarter revenue increased 28% from the prior year, primarily driven by increased volumes across all product lines as well as contributions from the Texcrete acquisition. EBITDA improved 21%, with a majority of the increase being attributed to aggregate sales, as well as higher margins on contracting services work. However, EBITDA margin declined as the prior-year period benefited from $7.9 million of gains on asset sales that did not recur this quarter. Energy Services California, Iowa, Nebraska, Oregon, South Dakota, Texas, Washington, Wyoming Three Months Ended Six Months Ended June 30, June 30, 2026 2025 % Change 2026 2025 % Change (In millions) Revenue $ 103.0 $ 97.4 6 % $ 123.5 $ 111.3 11 % EBITDA $ 19.8 $ 17.1 16 % $ 15.2 $ 9.3 64 % EBITDA margin 19.2 % 17.5 % 12.3 % 8.3 % Second quarter revenue increased 6% from the prior year, driven by increased volumes due to improved market opportunities in California. EBITDA improved 16%, largely because of the increased sales volumes in California, as well as lower railcar maintenance expenses compared to prior year. The company is committed to disciplined capital allocation, including reinvesting to maintain fixed assets, strengthening operations and growing the business. The company currently estimates total 2026 capital expenditures for maintenance and improvement to be between 5% and 7% of revenue. For the six months ending June 30, 2026, the company spent $90.1 million, largely on the replacement of construction equipment and plant improvements. Additionally, for the six months ended June 30, 2026, the company spent $244.5 million on growth initiatives, which was comprised of $184.4 million on acquisitions and $60.1 million on aggregate expansions and greenfield projects. For the remainder of 2026, the company expects to spend $76.4 million on organic growth projects. Capital expenditures for future acquisitions and new growth opportunities would be incremental to the outlined capital program. It is anticipated that capital expenditures for the remainder of 2026 will be funded by various sources, including cash from operations and debt. On May 15, 2026, the company issued an incremental $400 million Term Loan B facility which was used to finance recent acquisitions and growth initiatives previously discussed, repay borrowings under the Revolving Credit Facility, and for working capital and general corporate purposes. As of June 30, 2026, Knife River had $40.7 million of unrestricted cash and cash equivalents, $1.6 billion of gross debt and $387.2 million of available capacity under its revolving credit facility, net of outstanding letters of credit. Net leverage, defined as the ratio of net debt to trailing-twelve-month Adjusted EBITDA, was 3.2x at June 30, 2026. Knife River will host a conference call at 11 a.m. EDT today to discuss second quarter results and conduct a question-and-answer session. The event will be webcast at investors.kniferiver.com. To participate in the live call: Domestic: 1-585-542-9983 International: 1-833-461-5787 Conference ID: 137711168 After the conclusion of the call, an on-demand replay of the webcast will be made available. Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit www.kniferiver.com. Knife River Corporation Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (In millions, except per share amounts) Revenue: Construction materials $ 532.1 $ 493.6 $ 794.4 $ 707.0 Contracting services 406.5 340.2 554.3 480.2 Total revenue 938.6 833.8 1,348.7 1,187.2 Cost of revenue: Construction materials 400.2 377.1 673.2 610.9 Contracting services 375.6 299.4 515.5 428.7 Total cost of revenue 775.8 676.5 1,188.7 1,039.6 Gross profit 162.8 157.3 160.0 147.6 Selling, general and administrative expenses 81.7 69.2 165.1 142.2 Operating income (loss) 81.1 88.1 (5.1 ) 5.4 Interest expense 24.5 22.3 45.3 37.6 Other income 3.3 2.2 2.6 6.8 Income (loss) before income taxes 59.9 68.0 (47.8 ) (25.4 ) Income tax expense (benefit) 16.0 17.4 (12.5 ) (7.3 ) Net income (loss) $ 43.9 $ 50.6 $ (35.3 ) $ (18.1 ) Net income (loss) per share: Basic $ 0.77 $ 0.89 $ (0.62 ) $ (0.32 ) Diluted $ 0.77 $ 0.89 $ (0.62 ) $ (0.32 ) Weighted average common shares outstanding: Basic 56.8 56.7 56.7 56.6 Diluted 56.9 56.9 56.7 56.6 Knife River Corporation Consolidated Balance Sheets (Unaudited) June 30, 2026 June 30, 2025 December 31, 2025 (In millions, except shares and per share amounts) Assets Current assets: Cash, cash equivalents and restricted cash $ 102.0 $ 77.7 $ 123.4 Receivables, net 468.4 428.1 278.1 Contract assets 121.9 64.0 77.5 Inventories 507.3 479.5 435.7 Prepayments and other current assets 72.0 54.0 46.2 Total current assets 1,271.6 1,103.3 960.9 Noncurrent assets: Net property, plant and equipment 2,176.7 1,924.3 2,028.9 Goodwill 584.0 464.1 519.7 Other intangible assets, net 33.7 38.1 32.7 Operating lease right-of-use assets 51.4 49.1 52.6 Investments and other 60.4 52.6 55.3 Total noncurrent assets 2,906.2 2,528.2 2,689.2 Total assets $ 4,177.8 $ 3,631.5 $ 3,650.1 Liabilities and Stockholders' Equity Current liabilities: Long-term debt - current portion $ 17.2 $ 11.8 $ 11.7 Accounts payable 228.0 172.1 145.6 Contract liabilities 26.6 36.3 33.8 Accrued compensation 38.4 31.4 44.3 Current operating lease liabilities 16.5 14.3 15.9 Other taxes payable 18.8 18.0 11.3 Accrued interest 11.8 7.7 7.3 Other accrued liabilities 119.9 105.6 108.1 Total current liabilities 477.2 397.2 378.0 Noncurrent liabilities: Long-term debt 1,600.1 1,341.2 1,153.8 Deferred income taxes 296.5 257.5 287.9 Noncurrent operating lease liabilities 34.8 34.8 36.7 Other 163.3 139.7 152.8 Total liabilities 2,571.9 2,170.4 2,009.2 Commitments and contingencies Stockholders' equity: Common stock, 300,000,000 shares authorized, $0.01 par value, 57,194,556 shares issued and 56,763,420 shares outstanding at June 30, 2026; 57,095,301 shares issued and 56,664,165 shares outstanding at June 30, 2025; 57,095,301 shares issued and 56,664,165 shares outstanding at December 31, 2025 0.6 0.6 0.6 Other paid-in capital 629.6 623.9 629.6 Retained earnings 989.3 849.4 1,024.6 Treasury stock held at cost - 431,136 shares (3.6 ) (3.6 ) (3.6 ) Accumulated other comprehensive loss (10.0 ) (9.2 ) (10.3 ) Total stockholders' equity 1,605.9 1,461.1 1,640.9 Total liabilities and stockholders' equity $ 4,177.8 $ 3,631.5 $ 3,650.1 Knife River Corporation Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2026 2025 (In millions) Operating activities: Net loss $ (35.3 ) $ (18.1 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation, depletion and amortization 108.5 89.0 Deferred income taxes 0.3 (0.1 ) Provision for credit losses 0.7 0.4 Amortization of debt issuance costs 2.0 1.8 Employee stock-based compensation costs 5.4 5.7 Pension and postretirement benefit plan net periodic benefit cost 0.9 0.7 Unrealized gains on investments (2.3 ) (1.1 ) Gains on sales of assets (2.6 ) (12.7 ) Gains on bargain purchases (0.2 ) (3.6 ) Equity in earnings of unconsolidated affiliates (0.7 ) (0.2 ) Changes in current assets and liabilities, net of acquisitions: Receivables (233.2 ) (177.4 ) Inventories (66.2 ) (59.9 ) Other current assets (22.5 ) (18.1 ) Accounts payable 87.6 36.2 Other current liabilities 16.7 (15.6 ) Pension and postretirement benefit plan contributions (0.3 ) (0.3 ) Other noncurrent changes 7.6 5.5 Net cash used in operating activities (133.6 ) (167.8 ) Investing activities: Capital expenditures (150.2 ) (228.6 ) Acquisitions, net of cash acquired (184.4 ) (501.9 ) Net proceeds from sale or disposition of property and other 4.8 31.4 Investments (2.8 ) (2.8 ) Net cash used in investing activities (332.6 ) (701.9 ) Financing activities: Issuance of long-term debt 461.0 683.0 Repayment of long-term debt (6.9 ) (3.0 ) Debt issuance costs (3.9 ) (11.1 ) Tax withholding on stock-based compensation (5.4 ) (2.6 ) Net cash provided by financing activities 444.8 666.3 Decrease in cash, cash equivalents and restricted cash (21.4 ) (203.4 ) Cash, cash equivalents and restricted cash -- beginning of year 123.4 281.1 Cash, cash equivalents and restricted cash -- end of period $ 102.0 $ 77.7 Segment Financial Data and Highlights (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Dollars Margin Dollars Margin Dollars Margin Dollars Margin (Dollars in millions) Revenues by segment: West $ 290.4 $ 317.4 $ 502.2 $ 525.7 Mountain 236.5 176.1 317.7 242.1 Central 325.6 255.2 426.8 323.1 Energy Services 103.0 97.4 123.5 111.3 Total segment revenues 955.5 846.1 1,370.2 1,202.2 Corporate Services and Eliminations (16.9 ) (12.3 ) (21.5 ) (15.0 ) Consolidated revenues $ 938.6 $ 833.8 $ 1,348.7 $ 1,187.2 EBITDA by segment: West $ 49.2 17.0 % $ 60.7 19.1 % $ 71.4 14.2 % $ 85.7 16.3 % Mountain 31.0 13.1 % 30.9 17.6 % 22.8 7.2 % 14.6 6.0 % Central 53.6 16.5 % 44.4 17.4 % 26.8 6.3 % 20.1 6.2 % Energy Services 19.8 19.2 % 17.1 17.5 % 15.2 12.3 % 9.3 8.3 % Total segment EBITDA (a) 153.6 16.1 % 153.1 18.1 % 136.2 9.9 % 129.7 10.8 % Corporate Services and Eliminations (b) (13.4 ) N.M. (13.4 ) N.M. (31.4 ) N.M. (31.5 ) N.M. Consolidated EBITDA (a) $ 140.2 14.9 % $ 139.7 16.8 % $ 104.8 7.8 % $ 98.2 8.3 % The following table summarizes backlog for the company. June 30, 2026 June 30, 2025 (In millions) West $ 235.7 $ 282.4 Mountain 449.3 483.4 Central 531.0 487.6 $ 1,216.0 $ 1,253.4 Margins on backlog at June 30, 2026, are expected to be slightly lower than the margins on backlog at June 30, 2025. Approximately 85% of the company's contracting services backlog relates to publicly funded projects, including street and highway construction projects. Period over period increases or decreases should not be used as an indicator of future revenues or earnings. Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Sales (thousands): Aggregates (tons) 10,031 8,826 14,909 12,693 Ready-mix concrete (cubic yards) 1,193 1,041 1,917 1,585 Asphalt (tons) 2,030 1,643 2,313 1,842 Average selling price:* Aggregates (per ton) $ 19.41 $ 18.80 $ 20.00 $ 19.49 Ready-mix concrete (per cubic yard) $ 198.45 $ 197.91 $ 198.95 $ 198.37 Asphalt (per ton) $ 65.77 $ 67.45 $ 66.79 $ 68.92 Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Dollars Margin Dollars Margin Dollars Margin Dollars Margin (Dollars in millions) Revenues by product line: Aggregates $ 194.7 $ 165.9 $ 298.2 $ 247.4 Ready-mix concrete 236.7 206.0 381.3 314.4 Asphalt 133.5 110.8 154.5 127.0 Liquid asphalt 91.4 85.9 109.5 98.1 Other* 83.7 79.6 130.3 123.0 Contracting services 406.5 340.2 554.3 480.2 Internal sales (207.9 ) (154.6 ) (279.4 ) (202.9 ) Total revenues $ 938.6 $ 833.8 $ 1,348.7 $ 1,187.2 Gross profit by product line: Aggregates $ 38.8 19.9 % $ 34.6 20.8 % $ 35.1 11.8 % $ 28.6 11.6 % Ready-mix concrete 39.1 16.5 % 32.4 15.7 % 54.6 14.3 % 41.1 13.1 % Asphalt 20.9 15.7 % 16.8 15.2 % 16.0 10.3 % 11.2 8.8 % Liquid asphalt 16.5 18.1 % 14.9 17.4 % 13.7 12.6 % 10.7 10.9 % Other* 16.6 19.8 % 17.8 22.3 % 1.8 1.4 % 4.5 3.7 % Contracting services 30.9 7.6 % 40.8 12.0 % 38.8 7.0 % 51.5 10.7 % Total gross profit $ 162.8 17.3 % $ 157.3 18.9 % $ 160.0 11.9 % $ 147.6 12.4 % NON-GAAP FINANCIAL MEASURES EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, as well as total segment measures, as applicable, net debt and net leverage are considered non-GAAP measures of financial performance. These non-GAAP financial measures are not measures of financial performance under GAAP. The items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. Therefore, these non-GAAP financial measures should not be considered substitutes for the applicable GAAP metric. EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are most directly comparable to the corresponding GAAP measures of net income and net income margin. Net debt and net leverage are most directly comparable to the corresponding GAAP measures of total debt. We believe these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to our peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance by excluding unrealized gains and losses on benefit plan investments, stock-based compensation, and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting, as they are considered non-cash and not part of our core operations. We believe EBITDA and Adjusted EBITDA assist rating agencies and investors in comparing operating performance across operating periods on a consistent basis by excluding items management does not believe are indicative of the company's operating performance, including using EBITDA and Adjusted EBITDA to calculate Knife River’s leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important financial metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. We believe EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin, including those measures by segment, are useful performance measures because they provide clarity as to the operational results of the company. Management believes net debt and net leverage are useful performance measures because they provide a measure of how long it would take the company to pay back its debt if net debt and Adjusted EBITDA were constant. Net leverage also allows management to assess our borrowing capacity and optimal leverage ratio. Our management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating our operating results internally and calculating employee incentive compensation, and leverage as a multiple of Adjusted EBITDA to determine the appropriate method of funding our operations. EBITDA is calculated by adding back income taxes, interest expense (net of interest income) and depreciation, depletion and amortization expense to net income. EBITDA margin is calculated by dividing EBITDA by revenues. Adjusted EBITDA is calculated by adding back unrealized gains and losses on benefit plan investments, stock-based compensation and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting to EBITDA. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing-twelve-month Adjusted EBITDA. These non-GAAP financial measures are calculated the same for both the segment and consolidated metrics and should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income, net income margin and total debt and are intended to be helpful supplemental financial measures for investors’ understanding of our operating performance. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, net debt and net leverage measures having the same or similar names. The following information reconciles segment and consolidated net income (loss) to EBITDA and Adjusted EBITDA and provides the calculation of EBITDA margin, Adjusted EBITDA margin, net debt and net leverage. Interest expense, net, is net of interest income that is included in other income (expense) on the Consolidated Statements of Operations. The following table provides the reconciliation of net income (loss) to EBITDA and Adjusted EBITDA. Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (In millions) Net income (loss) $ 43.9 $ 50.6 $ (35.3 ) $ (18.1 ) Depreciation, depletion and amortization 56.4 50.2 108.5 88.9 Interest expense, net 23.9 21.5 44.1 34.7 Income taxes 16.0 17.4 (12.5 ) (7.3 ) EBITDA $ 140.2 $ 139.7 $ 104.8 $ 98.2 Unrealized (gains) losses on benefit plan investments (3.2 ) (1.8 ) (2.4 ) (1.1 ) Stock-based compensation expense 2.6 2.9 5.4 5.7 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 0.1 — 0.1 — Adjusted EBITDA $ 139.7 $ 140.8 $ 107.9 $ 102.8 Revenue $ 938.6 $ 833.8 $ 1,348.7 $ 1,187.2 Net income (loss) margin 4.7 % 6.1 % (2.6 )% (1.5 )% EBITDA margin 14.9 % 16.8 % 7.8 % 8.3 % Adjusted EBITDA margin 14.9 % 16.9 % 8.0 % 8.7 % The following table provides the reconciliation of consolidated net income (loss) to total segment EBITDA. Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (In millions) Net income (loss) $ 43.9 $ 50.6 $ (35.3 ) $ (18.1 ) Depreciation, depletion and amortization 56.4 50.2 108.5 88.9 Interest expense, net 23.9 21.5 44.1 34.7 Income taxes 16.0 17.4 (12.5 ) (7.3 ) EBITDA $ 140.2 $ 139.7 $ 104.8 $ 98.2 Less corporate services EBITDA (13.4 ) (13.4 ) (31.4 ) (31.5 ) Total segment EBITDA $ 153.6 $ 153.1 $ 136.2 $ 129.7 The following tables provide the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA. Twelve Months Ended June 30, 2026 Six Months Ended June 30, 2026 Twelve Months Ended December 31, 2025 Six Months Ended June 30, 2025 (In millions) Net income (loss) $ 139.9 $ (35.3 ) $ 157.1 $ (18.1 ) Depreciation, depletion and amortization 213.3 108.5 193.7 88.9 Interest expense, net 86.8 44.1 77.4 34.7 Income taxes 50.9 (12.5 ) 56.1 (7.3 ) EBITDA $ 490.9 $ 104.8 $ 484.3 $ 98.2 Unrealized (gains) losses on benefit plan investments (4.2 ) (2.4 ) (2.9 ) (1.1 ) Stock-based compensation expense 11.1 5.4 11.4 5.7 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 3.8 .1 3.7 — Adjusted EBITDA $ 501.6 $ 107.9 $ 496.5 $ 102.8 The following table provides the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA. Twelve Months Ended June 30, 2026 (In millions) Long-term debt $ 1,600.1 Long-term debt - current portion 17.2 Total debt 1,617.3 Add: Unamortized debt issuance costs 17.9 Total debt, gross 1,635.2 Less: Cash and cash equivalents, excluding restricted cash 40.7 Total debt, net $ 1,594.5 Trailing-twelve-months ended June 30, 2026, Adjusted EBITDA $ 501.6 Net leverage 3.2 x Knife River’s projections for 2026 Adjusted EBITDA is a non-GAAP financial measure that excludes or otherwise has been adjusted for non-GAAP adjustment items from Knife River’s financial statements. When the company provides its forward-looking 2026 Adjusted EBITDA, it does not provide a reconciliation of these non-GAAP financial measures as Knife River is unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results, including, but not limited to, the potentially high variability, complexity and low visibility with respect to the items that would be excluded from the applicable GAAP measure in the relevant future period, such as unusual gains and losses, the impact and timing of potential acquisitions and divestitures, certain financing costs and other structural changes or their probable significance. Therefore, Knife River is unable to provide a reconciliation of these measures without unreasonable efforts. FORWARD-LOOKING STATEMENTS The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that its expectations are expressed in good faith and based on reasonable assumptions, there is no assurance the company’s statements with respect to its EDGE strategy, shareholder value creation, financial guidance, expected long-term goals, expected backlog margin, or other proposed strategies will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. Changes in such assumptions and factors could cause actual future results to differ materially from those expressed in the forward-looking statements. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
	Saved 2026-08-04 12:04 1mo ago Published 2026-08-04 06:00 1mo ago	Bitzero spolupracuje s Vertiv na datových centrech Bitzero oznámila spolupráci s Vertiv, která má posílit její technické, inženýrské a dodavatelské kapacity pro AI, HPC a hyperscale datová centra. Vertiv přidá odborné znalosti v oblasti napájení, chlazení a nasazení infrastruktury. VRT Vertiv Holdings	FMP Stock News	78
Original source text Vancouver, British Columbia--(Newsfile Corp. - August 4, 2026) - Bitzero Holdings Inc. (Nasdaq: AIBZ) (CSE: AIBZ.U) (FSE: 000) ("Bitzero" or the "Company"), a provider of sustainable high-performance compute ("HPC") and AI data center infrastructure, today announced a collaboration with Vertiv, a global leader in critical digital infrastructure, further strengthening Bitzero's growing ecosystem of technical, engineering, and supply chain providers supporting the delivery of next-generation data center infrastructure. Further to Bitzero's previously announced partnerships, Vertiv adds deep expertise in critical power, thermal management, and infrastructure deployment to support the design and delivery of AI, HPC, and hyperscale data centers. The relationship expands Bitzero's access to proven technologies and engineering capabilities that can help accelerate project execution while supporting performance, efficiency, and scalability requirements. Vertiv technologies and expertise are expected to serve as a key pillar within Bitzero's broader execution platform, bringing global expertise in critical power and cooling systems, including advanced liquid cooling design and engineering capabilities required for modern AI and HPC environments. As compute density increases and customer requirements evolve, integrated end-to-end infrastructure systems and modular solutions are becoming increasingly central to the successful deployment of resilient, scalable, and efficient digital infrastructure, helping customers accelerate deployment and reduce time to token. The collaboration reflects Bitzero's continued focus on building an integrated network of industry-leading providers across technical design, project execution, and supply chain coordination. By deepening its relationships with specialized infrastructure leaders, the Company is positioning itself to deliver high-performance compute environments that meet the demands of hyperscale, AI, and other advanced workloads. "Bitzero is intentionally building an ecosystem of leading providers across every critical layer of data center delivery," said Bitzero Founder & CEO, Mohammed Bakhashwain. "Following our previously announced relationships, Vertiv further enhances our technical depth across critical power, thermal management, and infrastructure solutions, while strengthening our supply chain capabilities as we continue advancing our platform for hyperscale, AI, and HPC applications." "Successfully scaling AI requires more than advanced compute, it requires end-to-end infrastructure capable of supporting increasingly demanding power and thermal profiles," said Paul Ryan, president for Europe, Middle East and Africa (EMEA) at Vertiv. "Vertiv draws on decades of experience in critical digital infrastructure to help organizations deploy and operate the power and cooling systems that underpin AI and HPC environments, helping accelerate AI readiness and support faster time-to-token outcomes. We are pleased to support Mohammed and the Bitzero team as it expands its capabilities to meet growing customer demand." As Bitzero continues to advance its development strategy, the Company remains focused on bringing together the expertise, infrastructure providers, and delivery capabilities necessary to support long-term growth across its portfolio of sites. About Bitzero Holdings Inc. Bitzero Holdings Inc. is a provider of IT energy infrastructure and high-efficiency power for data centers. The Company focuses on data center development, high-performance compute (HPC), and strategic data center hosting partnerships. Bitzero Holdings Inc. owns four data center locations in the North American and Nordic regions, with its Nordic assets powered by clean, low-carbon energy sources. Visit www.bitzero.com for more information. About Vertiv Vertiv brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com. Vertiv Media Contact Susanna Collins [email protected] Forward-looking statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act, and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements are often, but not always, identified by words such as "anticipate", "plan", "expect", "intend", "may", "will", "would", "could", "should", "believe", "estimate", "project", "potential", "target" or similar expressions suggesting future outcomes or events. Forward-looking statements in this release include, but are not limited to, statements regarding the anticipated benefits of the collaboration with Vertiv; the expected role of Vertiv's technologies and expertise within Bitzero's execution platform; and Bitzero's ability to design, deliver and scale AI, HPC and hyperscale data center infrastructure, accelerate project execution and reduce time to token. These statements are only a prediction and are based on assumptions including that the collaboration will proceed and deliver benefits as expected; that Vertiv will provide the anticipated technologies, expertise and support on commercially reasonable terms and on a timely basis; that Bitzero will have access to the capital, power, sites and personnel required to advance its development strategy; that Bitzero will secure customer demand for AI and HPC capacity at its sites; that Bitzero will complete site development in accordance with its expected timelines; that no unforeseen technological, competitive or regulatory developments will materially impair the anticipated benefits of the collaboration; and that there will be no material change in economic, market, supply chain or regulatory conditions. Bitzero believes that the assumptions on which its forward-looking statements are based were reasonable when made, but cautions readers that these assumptions may prove to be incorrect. Actual events or results may differ materially from those in the forward-looking statements set forth herein as a result of a number of factors, including: risks relating to the execution of Bitzero's development strategy; the availability, cost and timing of financing, critical power, cooling and other data center infrastructure; supply chain and counterparty performance; risks that the Vertiv collaboration does not deliver the anticipated benefits, is terminated or modified, or does not proceed on the timelines or terms currently contemplated; risks associated with the evolution of AI and HPC customer requirements and compute density; competitive risks in the AI/HPC and data center infrastructure market; technology obsolescence risk; and general economic and market conditions. Readers are referred to Vertiv's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and to Bitzero's continuous disclosure record, including its most recent Annual Information Form, Management's Discussion and Analysis, its CSE listing statement and its registration statement/annual report on Form 40-F, in each case available on SEDAR+ at www.sedarplus.ca or on EDGAR at www.sec.gov, for a discussion of the risk factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this release. The forward-looking statements in this release are made as of the date hereof, and neither Vertiv nor Bitzero undertakes any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307656 Source: Bitzero Holdings Inc. Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs. Contact Us
	Saved 2026-08-04 12:03 1mo ago Published 2026-08-04 06:51 1mo ago	Timken ve 2. čtvrtletí zvýšil tržby, ale čistý zisk klesl Timken ve 2. čtvrtletí zvýšil tržby o 7,5 % na 1,26 mld. USD, ale čistý zisk klesl na 28,9 mil. USD. Firma zároveň zvedla celoroční výhled EPS na 3,75–4,05 USD a upravený EPS na 6,05–6,35 USD. TKR Timken	FMP Stock News	92
Original source text Sales of $1.26 billion, up 7.5 percent from last year Second-quarter diluted EPS of $0.41; adjusted EPS of $1.83 Net income margin of 2.3 percent; adjusted EBITDA margin of 19.6 percent Updates 2026 EPS outlook; now expects 2026 EPS of $3.75-$4.05, raising adjusted EPS outlook to $6.05-$6.35 , /PRNewswire/ -- The Timken Company (NYSE: TKR) (www.timken.com), a leader in advanced motion technology, today reported second-quarter 2026 results. 2Q-26 2Q-25 % Change Net Sales (mils.) $1,260.9 $1,173.4 7.5 % Net Income Margin 2.3 % 6.7 % (440 bps) Adjusted EBITDA Margin 19.6 % 17.7 % 190 bps Diluted EPS $0.41 $1.12 (63.4) % Adjusted EPS $1.83 $1.42 28.9 % Net Cash from Operations (mils.) $107.1 $111.3 (3.8) % Free Cash Flow $80.5 $78.2 2.9 % "The Timken team is successfully advancing our Elevate to Outperform strategy to accelerate profitable growth, structurally increase margins and create long-term shareholder value," said Lucian Boldea, president and chief executive officer. "Second quarter results demonstrate our team's strong execution and continued progress against these objectives combined with our ability to capitalize on improving customer demand. Our performance during the first half of the year, continued momentum, and disciplined execution framework gives us the confidence to raise our 2026 outlook." Second-Quarter 2026 Highlights Timken delivered sales in the second quarter of $1.26 billion, up 7.5 percent from the same period a year ago. The increase was driven by higher volumes across both segments, higher pricing, revenue from the Bijur Delimon acquisition and favorable foreign currency translation. Organically, sales were up 4.4 percent as compared to the second quarter of 2025. The company posted net income in the second quarter of $28.9 million or $0.41 per diluted share. This compares to net income of $78.5 million or $1.12 per diluted share for the same period a year ago. The company's net income margin in the quarter was 2.3 percent, compared to 6.7 percent in the second quarter of last year. Net income in the current period includes an impairment charge related to the anticipated divestiture of the company's belts business. Excluding special items (detailed in the attached tables), adjusted net income in the second quarter was $128.4 million or $1.83 per diluted share. This compares to adjusted net income of $99.3 million or $1.42 per diluted share for the same period in 2025. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $247.2 million or 19.6 percent of sales, compared with $208.2 million or 17.7 percent of sales in the second quarter of last year. Adjusted EBITDA in the current period includes a net benefit of $8.0 million for IEEPA tariff refunds. Net cash provided by operations in the quarter was $107.1 million, and free cash flow was $80.5 million. During the quarter, Timken increased its quarterly dividend by 3 percent and repurchased approximately 155 thousand shares of company stock. In total, the company returned $45.0 million of cash to shareholders through dividends and share repurchases during the quarter. The company ended the quarter with a strong balance sheet; net debt to adjusted EBITDA was 2.0 times as of June 30, 2026. Second-Quarter 2026 Segment Results Engineered Bearings sales of $807.0 million increased 3.8 percent from the same period a year ago driven primarily by higher volumes, the impact of higher pricing and favorable foreign currency translation. Adjusted EBITDA in the quarter was $161.3 million or 20.0 percent of sales, compared with $153.4 million or 19.7 percent of sales in the second quarter of last year. The increase in adjusted EBITDA was driven primarily by positive price/mix, the impact of higher volume, a net benefit for tariff refunds and favorable foreign currency, partially offset by higher operating costs. Industrial Motion sales of $453.9 million increased 14.6 percent compared with the same period a year ago driven primarily by higher demand across most platforms and end-market sectors, revenue from the Bijur Delimon acquisition, higher pricing and favorable foreign currency translation. Adjusted EBITDA in the quarter was $105.6 million or 23.3 percent of sales, compared with $72.6 million or 18.3 percent of sales in the second quarter of last year. The increase in adjusted EBITDA was driven primarily by the impact of higher volume, positive price/mix, a net benefit for tariff refunds and contribution from the Bijur Delimon acquisition, partially offset by higher operating costs. 2026 Outlook Timken is updating its 2026 outlook, with full-year earnings per diluted share now forecasted to be in the range of $3.75 to $4.05 and is raising its adjusted earnings per diluted share to the range of $6.05 to $6.35. The company is planning for 2026 revenue to be up approximately 5.5 percent in total at the midpoint from 2025, a slight increase from its prior outlook of 5 percent growth at the midpoint. Conference Call Information Timken will host a conference call today at 11 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts. Conference Call: Tuesday, August 4, 2026 11:00 a.m. Eastern Time Live Dial-In: 888-880-3330 Conference ID: 2764753 Live Webcast: http://investors.timken.com Replay: https://tmkn.biz/4b21FiY About The Timken Company The Timken Company (NYSE: TKR; www.timken.com), a leader in advanced motion technology, designs and manufacturers highly engineered systems and components for customers in strategic end markets, including aerospace and defense, power and electrification, and automation and industrial solutions. With more than 125 years of specialized expertise and a multinational presence, Timken is a trusted partner worldwide, innovating and powering performance across the application lifecycle. The company posted $4.6 billion in sales in 2025 and employs approximately 19,000 people, operating from 45 countries. Learn more at www.timken.com or @TheTimkenCompany. Certain statements in this release (including statements regarding the company's forecasts, beliefs, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance, including information under the heading "2026 Outlook," are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the finalization of the company's financial statements for the second quarter of 2026; fluctuations in customer demand for the company's products or services; changes in customer preferences due to emergent technologies, evolving regulatory landscapes or other factors; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; logistical issues associated with port closures, delays or increased costs; costs associated with inclement weather events; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); changes in wages, shipping costs, raw material costs, energy and fuel prices, and other production costs; new technology, including artificial intelligence, that may impact the way the Company's products are produced, sold or distributed; changes in customer demand or tariff rates and other costs associated with tariffs; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations or interest rates; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; the company's ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies, such as artificial intelligence; unplanned plant shutdowns; the effects of government-imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations remediation, or assessments; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances or polytetrafluoroethylene; the company's ability to maintain positive relations with unions and works councils; the company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel; negative impacts to the company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions, capital investments, and cost reduction actions. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2025, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, 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. Media Relations: Sarah Factor 234.262.4878 [email protected] Investor Relations: Neil Frohnapple 234.262.2310 [email protected] The Timken Company CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in millions, except share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 1,260.9 $ 1,173.4 $ 2,492.2 $ 2,313.7 Cost of products sold 861.6 813.1 1,698.9 1,594.7 Selling, general & administrative expenses 205.9 189.7 407.1 374.5 Amortization of intangible assets 20.7 19.9 41.3 38.9 Impairment and restructuring charges 87.9 2.9 91.5 13.8 Operating Income 84.8 147.8 253.4 291.8 Non-service pension and other postretirement expense (0.7) (1.2) (1.4) (2.4) Other expense, net (2.5) (3.4) (4.9) (3.7) Interest expense, net (23.7) (26.8) (46.3) (51.0) Income Before Income Taxes 57.9 116.4 200.8 234.7 Provision for income taxes 20.7 30.7 57.7 57.6 Net Income 37.2 85.7 143.1 177.1 Less: Net income attributable to noncontrolling interest 8.3 7.2 16.0 20.3 Net Income Attributable to The Timken Company $ 28.9 $ 78.5 $ 127.1 $ 156.8 Net Income per Common Share Attributable to The Timken Company Common Shareholders Basic Earnings per share $ 0.42 $ 1.13 $ 1.83 $ 2.24 Diluted Earnings per share $ 0.41 $ 1.12 $ 1.81 $ 2.23 Average Shares Outstanding 69,468,880 69,751,965 69,531,059 69,877,737 Average Shares Outstanding - assuming dilution 70,090,431 70,075,084 70,152,767 70,283,847 BUSINESS SEGMENTS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2026 2025 2026 2025 Engineered Bearings Net sales $ 807.0 $ 777.4 $ 1,613.2 $ 1,538.1 Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1) $ 161.3 $ 153.4 $ 320.3 $ 312.6 Adjusted EBITDA Margin (1) 20.0 % 19.7 % 19.9 % 20.3 % Industrial Motion Net sales $ 453.9 $ 396.0 $ 879.0 $ 775.6 Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1) $ 105.6 $ 72.6 $ 196.9 $ 139.7 Adjusted EBITDA Margin (1) 23.3 % 18.3 % 22.4 % 18.0 % Unallocated corporate expense (1) $ (19.7) $ (17.8) $ (39.0) $ (36.0) Consolidated Net sales $ 1,260.9 $ 1,173.4 $ 2,492.2 $ 2,313.7 Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1) $ 247.2 $ 208.2 $ 478.2 $ 416.3 Adjusted EBITDA Margin (1) 19.6 % 17.7 % 19.2 % 18.0 % EBITDA is a non-GAAP measure defined as operating income plus other income (expense) and excluding depreciation and amortization. EBITDA Margin is a non-GAAP measure defined as EBITDA as a percentage of net sales. EBITDA and EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting EBITDA and EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See the subsequent pages for the reconciliations of Consolidated EBITDA and Consolidated EBITDA Margin. (1) Consolidated adjusted EBITDA is a non-GAAP measure defined as EBITDA less impairment, restructuring and reorganization charges, acquisition costs, including transaction costs and the amortization of the inventory step-up, actuarial gains and losses associated with the remeasurement of the Company's defined benefit pension and other postretirement benefit plans, property losses and recoveries, gains and losses on the sale of real estate and divestitures, and other items from time to time that are not part of the Company's core operations. Consolidated adjusted EBITDA Margin is a non-GAAP measure defined as Consolidated adjusted EBITDA as a percentage of net sales. Management believes Consolidated adjusted EBITDA and Consolidated adjusted EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted EBITDA and adjusted EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See subsequent pages for the reconciliations of Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin. Segment Adjusted EBITDA is the measurement of segment profit and loss. The Company's Chief Operating Decision Maker ("CODM") utilizes Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin to evaluate segment performance and allocates resources. See the Company's quarterly report on Form 10-Q for a reconciliation of Segment Adjusted EBITDA to income before income taxes. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) (Unaudited) June 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 399.1 $ 364.4 Restricted cash 1.4 1.0 Accounts receivable, net 822.9 689.4 Unbilled receivables 174.0 137.6 Inventories, net 1,249.1 1,243.3 Other current assets 196.0 165.1 Total Current Assets 2,842.5 2,600.8 Property, plant and equipment, net 1,289.9 1,357.6 Operating lease assets 152.4 152.9 Goodwill and other intangible assets 2,473.0 2,488.7 Other assets 67.8 76.8 Total Assets $ 6,825.6 $ 6,676.8 LIABILITIES Accounts payable $ 371.1 $ 353.2 Short-term debt, including current portion of long-term debt 40.2 38.9 Income taxes 17.3 31.4 Accrued expenses 489.7 498.6 Total Current Liabilities 918.3 922.1 Long-term debt 2,036.0 1,883.1 Accrued pension benefits 136.6 148.9 Accrued postretirement benefits 29.2 29.3 Long-term operating lease liabilities 94.3 100.8 Other non-current liabilities 248.1 246.9 Total Liabilities 3,462.5 3,331.1 EQUITY The Timken Company shareholders' equity 3,194.5 3,184.6 Noncontrolling interest 168.6 161.1 Total Equity 3,363.1 3,345.7 Total Liabilities and Equity $ 6,825.6 $ 6,676.8 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2026 2025 2026 2025 Cash Provided by (Used in) OPERATING ACTIVITIES Net Income $ 37.2 $ 85.7 $ 143.1 $ 177.1 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 59.7 57.2 118.6 112.3 Impairment charges 79.0 — 79.0 — Stock-based compensation expense 6.9 6.9 14.5 14.4 Pension and other postretirement expense 1.3 1.9 2.6 3.7 Pension and other postretirement benefit contributions and payments (7.3) (4.6) (18.1) (28.4) Changes in operating assets and liabilities: Accounts receivable (11.8) (21.0) (124.6) (91.8) Unbilled receivables (18.4) 5.9 (36.6) (12.3) Inventories (5.4) 5.2 (17.9) 20.5 Accounts payable (8.0) 2.8 23.1 23.0 Accrued expenses (5.6) (11.4) (24.1) (27.4) Income taxes (25.0) (25.5) (9.0) (22.0) Other, net 4.5 8.2 (4.2) 0.8 Net Cash Provided by Operating Activities $ 107.1 $ 111.3 $ 146.4 $ 169.9 INVESTING ACTIVITIES Capital expenditures $ (26.6) $ (33.1) $ (65.4) $ (68.3) Acquisitions, net of cash received (0.1) — (124.4) — Investments in short-term marketable securities, net 2.9 3.9 9.0 4.7 Other, net 0.3 0.1 0.3 2.0 Net Cash Used in Investing Activities $ (23.5) $ (29.1) $ (180.5) $ (61.6) FINANCING ACTIVITIES Cash dividends paid to shareholders $ (25.0) $ (24.4) $ (50.3) $ (49.5) Purchase of treasury shares (20.0) (22.6) (48.0) (45.7) Proceeds from exercise of stock options 2.4 0.2 5.3 0.5 Payments related to tax withholding for stock-based compensation (1.2) (0.3) (10.4) (9.8) Net proceeds (payments) from credit facilities 17.5 (1.1) 180.3 26.9 Net payments on long-term debt (1.1) (6.1) (2.2) (7.3) Net Cash Provided by (Used in) Financing Activities $ (27.4) $ (54.3) $ 74.7 $ (84.9) Effect of exchange rate changes on cash (1.2) 16.4 (5.5) 23.8 Increase in Cash, Cash Equivalents and Restricted Cash $ 55.0 $ 44.3 $ 35.1 $ 47.2 Cash, Cash Equivalents and Restricted Cash at Beginning of Period 345.5 376.5 365.4 373.6 Cash, Cash Equivalents and Restricted Cash at End of Period $ 400.5 $ 420.8 $ 400.5 $ 420.8 Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earnings Per Share to GAAP Earnings Per Share: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that the non-GAAP measures of adjusted net income and adjusted diluted earnings per share are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted net income and adjusted diluted earnings per share is useful to investors as these measures are representative of the Company's core operations. (Dollars in millions, except share data) Three Months Ended June 30, Six Months Ended June 30, 2026 EPS 2025 EPS 2026 EPS 2025 EPS Net Income Attributable to The Timken Company $ 28.9 $ 0.41 $ 78.5 $ 1.12 $ 127.1 $ 1.81 $ 156.8 $ 2.23 Adjustments: (1) Acquisition intangible amortization $ 20.7 $ 19.9 $ 41.3 $ 38.9 Impairment, restructuring and reorganization charges (2) 9.0 5.0 13.9 8.2 Acquisition-related charges (3) 3.4 — 5.2 — Belts impairment, restructuring and reorganization charges (4) 94.4 — 94.4 — Gain on sale of certain assets (5) — (0.1) — (1.3) CEO transition expenses (6) — 3.2 — 11.8 Noncontrolling interest of above adjustments (7) 0.4 1.0 0.3 4.8 Provision for income taxes (8) (28.4) (8.2) (36.5) (21.3) Total Adjustments: 99.5 1.42 20.8 0.30 118.6 1.69 41.1 0.59 Adjusted Net Income Attributable to The Timken Company $ 128.4 $ 1.83 $ 99.3 $ 1.42 $ 245.7 $ 3.50 $ 197.9 $ 2.82 (1) Adjustments are pre-tax, with the net tax provision listed separately. (2) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; (iv) impairment of assets; and (v) related depreciation and amortization. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations. (3) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. (4) On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates Industrial Corporation plc. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2026. In addition, the Company announced the closure of its belts manufacturing facility in Springfield, Missouri. As a result, the Company recorded impairment, restructuring and reorganization charges of $94.4 million during the second quarter of 2026. (5) Represents the net gain resulting from the sale of certain assets. (6) On March 31, 2025, the Company announced that Tarak B. Mehta, President and Chief Executive Officer ("CEO") of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, and incremental stock compensation expense related to a deferred share award issued to Mr. Kyle. (7) Represents the noncontrolling interest impact of the adjustments listed above, as well as the reversal of uncertain tax positions related to Timken India Limited. (8) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. Reconciliation of EBITDA to GAAP Net Income, EBITDA Margin to Net Income as a Percentage of Sales, and EBITDA Margin, After Adjustments, to Net Income as a Percentage of Sales, and EBITDA, After Adjustments, to Net Income: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that adjusted EBITDA, adjusted EBITDA margin and EBITDA margin are useful to investors as they are representative of the Company's core operations and are used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. (Dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 Percentage to Net Sales 2025 Percentage to Net Sales 2026 Percentage to Net Sales 2025 Percentage to Net Sales Net Income $ 37.2 3.0 % $ 85.7 7.3 % $ 143.1 5.7 % $ 177.1 7.7 % Provision for income taxes 20.7 30.7 57.7 57.6 Interest expense 26.2 29.8 50.5 56.3 Interest income (2.5) (3.0) (4.2) (5.3) Depreciation and amortization 59.7 57.2 118.6 112.3 Consolidated EBITDA $ 141.3 11.2 % $ 200.4 17.1 % $ 365.7 14.7 % $ 398.0 17.2 % Adjustments: Impairment, restructuring and reorganization charges (1) $ 8.1 $ 4.7 $ 12.9 $ 7.8 Acquisition-related charges (2) 3.4 — 5.2 — Belts impairment, restructuring and reorganization charges (3) 94.4 — 94.4 — Gain on sale of certain assets (4) — (0.1) — (1.3) CEO transition expenses (5) — 3.2 — 11.8 Total Adjustments 105.9 8.4 % 7.8 0.6 % 112.5 4.5 % 18.3 0.8 % Adjusted EBITDA $ 247.2 19.6 % $ 208.2 17.7 % $ 478.2 19.2 % $ 416.3 18.0 % (1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations. (2) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. (3) On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates Industrial Corporation plc. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2026. In addition, the Company announced the closure of its belts manufacturing facility in Springfield, Missouri. As a result, the Company recorded impairment, restructuring and reorganization charges of $94.4 million during the second quarter of 2026. (4) Represents the net gain resulting from the sale of certain assets. (5) On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, and incremental stock compensation expense related to a deferred share award issued to Mr. Kyle. Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to Capital, and the Ratio of Net Debt to Adjusted EBITDA: (Unaudited) These reconciliations are provided as additional relevant information about the Company's financial position deemed useful to investors. Capital, used for the ratio of net debt to capital, is a non-GAAP measure defined as total debt less cash and cash equivalents plus total shareholders' equity. Management believes Net Debt, the Ratio of Net Debt to Capital, Adjusted EBITDA (see next page), and the Ratio of Net Debt to Adjusted EBITDA are important measures of the Company's financial position, due to the amount of cash and cash equivalents on hand. The Company presents net debt to adjusted EBITDA because it believes it is more representative of the Company's financial position as it is reflective of the ability to cover its net debt obligations with results from its core operations. (Dollars in millions) June 30, 2026 December 31, 2025 Short-term debt, including current portion of long-term debt $ 40.2 $ 38.9 Long-term debt 2,036.0 1,883.1 Total Debt $ 2,076.2 $ 1,922.0 Less: Cash and cash equivalents (399.1) (364.4) Net Debt $ 1,677.1 $ 1,557.6 Total Equity $ 3,363.1 $ 3,345.7 Ratio of Net Debt to Capital 33.3 % 31.8 % Adjusted EBITDA for the Twelve Months Ended $ 857.7 $ 795.8 Ratio of Net Debt to Adjusted EBITDA 2.0 2.0 Reconciliation of Free Cash Flow to GAAP Net Cash Provided by Operating Activities: (Unaudited) Management believes that free cash flow is a non-GAAP measure that is useful to investors because it is a meaningful indicator of cash generated from operating activities available for the execution of its business strategy. (Dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net cash provided by operating activities $ 107.1 $ 111.3 $ 146.4 $ 169.9 Less: capital expenditures (26.6) (33.1) (65.4) (68.3) Free cash flow $ 80.5 $ 78.2 $ 81.0 $ 101.6 Reconciliation of EBITDA, After Adjustments, to GAAP Net Income: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that the non-GAAP measure of adjusted EBITDA is useful to investors as it is representative of the Company's core operations and is used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. (Dollars in millions) Twelve Months Ended June 30, 2026 Twelve Months Ended December 31, 2025 Net Income $ 283.3 $ 317.3 Provision for income taxes 98.8 98.7 Interest expense 104.5 110.3 Interest income (9.2) (10.3) Depreciation and amortization 236.4 230.1 Consolidated EBITDA $ 713.8 $ 746.1 Adjustments: Impairment, restructuring and reorganization charges (1) $ 25.8 $ 20.7 Corporate pension and other postretirement benefit related expense (2) 10.8 10.8 Acquisition-related charges (3) 5.2 — Belts impairment, restructuring and reorganization charges (4) 94.4 — Gain on sale of certain assets (5) (1.3) (2.6) CEO transition expenses (6) 9.0 20.8 Total Adjustments 143.9 49.7 Adjusted EBITDA $ 857.7 $ 795.8 (1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations. (2) Corporate pension and other postretirement benefit related expense represents actuarial losses that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial losses and gains in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement. (3) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. (4) On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates Industrial Corporation plc. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2026. In addition, the Company announced the closure of its belts manufacturing facility in Springfield, Missouri. As a result, the Company recorded impairment and restructuring charges of $94.4 million during the second quarter of 2026. (5) Represents the net gain resulting from the sale of certain assets. (6) On August 22, 2025, the Company announced the appointment of Lucian Boldea as President and CEO, effective September 1, 2025, and that Richard G. Kyle would retire from the role of interim President and CEO. On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Mr. Kyle would be serving as interim President and CEO. CEO transition expenses for the twelve months ended December 31, 2025, primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, the acceleration of certain stock compensation awards issued to Mr. Kyle, and other one-time costs associated with the transition in 2025. Reconciliation of Net Sales to Organic Sales (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that net sales, excluding the impact of acquisitions, divestitures and foreign currency exchange rate changes, allow investors and the Company to meaningfully evaluate the percentage change in net sales on a comparable basis from period to period. Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 $ Change % Change Net sales $ 1,260.9 $ 1,173.4 $ 87.5 7.5 % Less: Acquisitions 20.6 — 20.6 NM Currency 15.1 — 15.1 NM Net sales, excluding the impact of acquisitions and currency $ 1,225.2 $ 1,173.4 $ 51.8 4.4 % Reconciliation of Adjusted Earnings per Share to GAAP Earnings per Share for Full Year 2026 Outlook: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's outlook deemed useful to investors. Forecasted full year adjusted diluted earnings per share is an important financial measure that management believes is useful to investors as it is representative of the Company's expectation for the performance of its core business operations. Low End Earnings Per Share High End Earnings Per Share Forecasted full year GAAP diluted earnings per share $ 3.75 $ 4.05 Forecasted Adjustments: Impairment, restructuring and other special items, net (1) 1.45 1.45 Acquisition-related intangible amortization expense, net 0.85 0.85 Forecasted full year adjusted diluted earnings per share $ 6.05 $ 6.35 (1) Impairment, restructuring and other special items, net do not include the impact of any potential future mark-to-market pension and other postretirement remeasurement adjustments, because the amounts will not be known until incurred. SOURCE The Timken Company
	Saved 2026-08-04 12:03 1mo ago Published 2026-08-04 07:00 1mo ago	Bruker zvýšil výnosy, snížil výhled FY26 Bruker ve 2. čtvrtletí zvýšil výnosy na 838,5 mil. USD a non-GAAP EPS na 0,49 USD. Firma zároveň snížila výhled tržeb pro FY26 na 3,54 až 3,57 mld. USD. BRKR Bruker Corporation	FMP Stock News	92
Original source text BILLERICA, Mass.--(BUSINESS WIRE)--Bruker Corporation (Nasdaq: BRKR) today announced financial results for the three and six months ended June 30, 2026. Frank H. Laukien, Bruker’s President and CEO, commented: “We returned to organic revenue growth in the second quarter and our Scientific Instruments segment achieved 10% organic bookings growth year-over-year. Our focus on cost and profitability resulted in solid margin expansion and non-GAAP EPS growth in the quarter. In particular, we achieved strong order bookings growth for our differentiated products and solutions in the semiconductor tools, energy research and biopharma markets. In our academic and medical research business, US academic demand remained soft in Q2, while aca/gov bookings in Europe and China were up strongly. We are gaining confidence in a gradual market recovery, and we anticipate significant organic margin expansion and non-GAAP EPS growth not only this year, but in 2027 as well.” Second Quarter 2026 (Q2-26) Financial Results Bruker’s revenues for the second quarter of 2026 were $838.5 million, an increase of 5.2% compared to $797.4 million in the second quarter of 2025. In Q2-26, revenues increased organically yoy by 2.8%, or 3.4% excluding tariff refunds. Growth from acquisitions was 1.5%, with constant-exchange rate (CER) growth of 4.3%, while foreign currency translation had a favorable impact of 0.9% yoy. Q2-26 Bruker Scientific Instruments (BSI) revenues of $767.3 million increased 4.7% yoy, with organic revenue increasing by 2.3%. Q2-26 Bruker Energy & Supercon Technologies (BEST) revenues of $74.2 million increased 11.9% yoy, with an organic revenue increase of 8.9%, net of intercompany eliminations. Q2-26 GAAP operating loss was $(65.3) million, compared to GAAP operating income of $11.9 million in the second quarter of 2025. Second quarter 2026 GAAP financial results include non-cash goodwill impairment charges of $134.9 million. Bruker’s Q2-26 non-GAAP operating income was $118.5 million, compared to $72.0 million in the second quarter of 2025, and Q2-26 non-GAAP operating margin was 14.1%, compared to 9.0% in the second quarter of 2025. Q2-26 GAAP diluted loss per share was $(0.41), compared to diluted earnings per share of $0.05 in the second quarter of 2025. Q2-26 non-GAAP diluted EPS was $0.49, compared to $0.32 in the second quarter of 2025. First Half 2026 Financial Results For the first half of 2026, Bruker’s revenues were $1.7 billion, an increase of 3.9% compared to $1.6 billion in the first half of 2025. In the first half of 2026, revenues decreased organically by 0.8% yoy, while growth from acquisitions was 2.0%, CER growth was 1.2%, and foreign currency translation had a favorable impact of 2.7%. In the first half of 2026, BSI revenues of $1.5 billion increased 3.3% yoy, with revenue decreasing by 1.4% organically. First half 2026 BEST revenues of $141.0 million increased 12.3% yoy, with organic growth of 6.1%, net of intercompany eliminations. In the first half of 2026, GAAP operating loss was $(55.1) million, which includes the impact of impairment charges noted above, compared to GAAP operating income of $43.7 million in the first half of 2025. Bruker's non-GAAP operating income in the first half of 2026 was $202.7 million, compared to $173.7 million in the first half of 2025. Bruker’s non-GAAP operating margin in the first half of 2026 improved to 12.2%, compared to 10.9% in the first half of 2025. First half 2026 GAAP diluted loss per share was $(0.39), compared to diluted earnings per share of $0.16 in the first half of 2025. First half 2026 non-GAAP diluted EPS was $0.80, compared to $0.78 in the first half of 2025, including a currency headwind of 5 cents. Updating Fiscal Year 2026 (FY26) Financial Outlook for Currency and Tax Only Bruker now expects FY26 revenues of $3.54 to $3.57 billion, compared to FY25 revenues of $3.44 billion, with 3% to 4% year-over-year reported revenue growth, including: Organic revenue growth of 1% to 2%, M&A revenue growth of approximately 1.5%, CER revenue growth of 2.5% to 3.5%, and Foreign currency translation revenue tailwind of approximately 0.5% (previously 1.5%). Bruker continues to expect FY26 non-GAAP EPS of $2.10 to $2.15 compared to $1.83 in FY25, an increase of 15% to 17% year-over-year, now at an effective non-GAAP tax rate of 27.5%. This includes a currency headwind of approximately $0.10, or 5%. Our FY26 revenue and non-GAAP EPS guidance is based on foreign currency exchange rates as of June 30, 2026. For the Company’s outlook for 2026 organic revenue growth, M&A revenue growth, constant exchange rate revenue growth, and constant exchange rate non-GAAP EPS growth, and non-GAAP EPS, each of which are forward-looking non-GAAP measures, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a description of items excluded from our expected non-GAAP EPS. Quarterly Earnings Call Bruker will host a conference call and webcast to discuss its financial results, business outlook, and related corporate and financial matters today, August 4, 2026, at 9:00 am Eastern Daylight Time. To listen to the webcast, investors can go to https://ir.bruker.com and click on the “Q2 2026 Earnings Webcast” hyperlink. A slide presentation will be referenced during the webcast and will be posted to our Investor Relations website shortly before the webcast begins. Investors can also listen to the earnings webcast via telephone by dialing 1-888-437-2685 (U.S. toll free) or +1-412-317-6702 (international) and referencing “Bruker’s Second Quarter 2026 Earnings Conference Call.” Bruker is enabling investors to pre-register for the earnings conference call so that they can expedite their entry into the call and avoid the need to wait for a live operator. In order to pre-register for the call, investors can visit https://dpregister.com/sreg/10210859/10488dbff5c and enter their contact information. Investors will then be issued a personalized phone number and PIN to dial into the live conference call. Individuals can pre-register any time prior to the start of the conference call. A telephone replay of the conference call will be available by dialing 1-855-669-9658 (U.S. toll free) or +1-412-317-0088 (international) and entering replay access code: 2701950. The replay will be available beginning one hour after the end of the conference call through September 4, 2026. About Bruker Corporation – Leader of the Post-Genomic Era (Nasdaq: BRKR) Bruker is enabling scientists and engineers to make breakthrough post-genomic discoveries and develop new applications that improve the quality of human life. Bruker’s high-performance scientific instruments and high value analytical and diagnostic solutions enable scientists to explore life and materials at molecular, cellular, and microscopic levels. In close cooperation with our customers, Bruker is enabling innovation, improved productivity, and customer success in post-genomic life science molecular and cell biology research, in specialty diagnostics, in applied and biopharma applications, in microscopy and nanoanalysis, as well as in industrial and cleantech research, and next-gen semiconductor metrology in support of AI. Bruker offers differentiated, high-value life science and diagnostics systems and solutions in preclinical imaging, clinical phenomics research, proteomics and multiomics, spatial and single-cell biology, functional structural and condensate biology, clinical microbiology and molecular diagnostics, as well as in the semiconductor industry. For more information, please visit www.bruker.com. Use of Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP), we use the following non-GAAP financial measures: non-GAAP gross profit; non-GAAP gross profit margin; non-GAAP operating income; non-GAAP operating income margin; non-GAAP SG&A expense; non-GAAP interest and other income (expense), net; non-GAAP profit before income taxes; non-GAAP income tax rate; non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP measures exclude costs related to restructuring actions, impairments, acquisition and related integration expenses, amortization of acquired intangible assets, and other non-operational costs. We also may refer to CER currency revenue growth, CER non-GAAP EPS growth, and free cash flow which are also non-GAAP financial measures. We define the term CER currency revenue as GAAP revenue excluding the effect of changes in foreign currency translation rates. We define the term CER EPS as non-GAAP EPS excluding the effect of changes in foreign currency translation rates. We define free cash flow as net cash provided by operating activities, less additions to property, plant, and equipment. We believe free cash flow is a useful measure to evaluate our business because it indicates the amount of cash generated after additions to property, plant, and equipment that is available for, among other things, acquisitions, investments in our business, repayment of debt and return of capital to shareholders. The presentation of these non-GAAP financial measures is not intended to be a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP and may be different from non-GAAP financial measures used by other companies, and therefore, may not be comparable among companies. We believe these non-GAAP financial measures provide meaningful supplemental information regarding our performance. However, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included in the accompanying tables, and not to rely on any single financial measure to evaluate our business. Specifically, management believes that the non-GAAP measures mentioned above provide relevant and useful information which is widely used by analysts, investors and competitors in our industry, as well as by our management, in assessing both consolidated and business unit performance. We use these non-GAAP financial measures to evaluate our period-over-period operating performance because our management believes this provides a more comparable measure of our continuing business by adjusting for certain items that are not reflective of the underlying performance of our business. These measures may also be useful to investors in evaluating the underlying operating performance of our business and forecasting future results. We regularly use these non-GAAP financial measures internally to understand, manage, and evaluate our business results and make operating decisions. We also measure our employees and compensate them, in part, based on certain non-GAAP measures and use this information for our planning and forecasting activities. Additional information relating to the non-GAAP financial measures used in this press release and reconciliations to the most directly comparable GAAP financial measures are provided in the tables accompanying this press release following our GAAP financial statements. With respect to our outlook for 2026 non-GAAP organic revenue, non-GAAP M&A revenue, and non-GAAP EPS, we are not providing the most directly comparable GAAP financial measures or corresponding reconciliations to such GAAP financial measures on a forward-looking basis, because we are unable to predict with reasonable certainty certain items that may affect such measures calculated and presented in accordance with GAAP without unreasonable effort. Our expected non-GAAP organic revenue and EPS ranges exclude primarily the future impact of restructuring actions, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments. These reconciling items are uncertain, depend on various factors outside our management’s control and could significantly impact, either individually or in the aggregate, our future revenues and EPS presented in accordance with GAAP. Forward-Looking Statements Any statements contained in this press release which do not describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our fiscal year 2026 and beyond financial outlook, our outlook for reported revenue growth, organic revenue growth, M&A revenue growth contributions, CER currency revenue growth, margin improvements, foreign currency translation revenue impact, EPS, non-GAAP EPS, and CER Non-GAAP EPS growth; effects of academic market and tariff dynamics on our future financial results and our ability to mitigate such effects in the future; management’s expectations for the impact of foreign currency and acquisitions; the effects of our expanded cost savings initiatives; and for future financial and operational performance and business outlook; future economic conditions; and statements found under the “Use of Non-GAAP Financial Measures” section of this release. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, including, but not limited to, (1) the length and severity of any recession and the impact on global economic conditions, (2) the impact of supply chain challenges, including inflationary pressures, (3) the impact of geopolitical instability and tensions and any sanctions, including any reduction in natural gas exports from Russia resulting from the ongoing conflict with Ukraine and resulting market disruptions, such as higher prices for and reduced availability of key metals used in our products, (4) the conflict in Israel, Palestine and surrounding areas and hostilities in the Middle East, including heightened tensions in Iran, and the possible expansion of such conflicts and potential geopolitical consequences and global instability, (5) the ongoing tensions between the United States and China, tariff increases or uncertainties and trade policy changes and restrictions, and the increasing potential of conflict involving countries in Asia that are critical to our supply chain operations, such as Taiwan and China, (6) continued volatility in the capital markets, (7) the impact of increased interest rates, (8) the integration and assumption of liabilities of businesses we have acquired or may acquire in the future, (9) our restructuring and cost-control initiatives, changing technologies, product development and market acceptance of our products, (10) the cost and pricing of our products, manufacturing and outsourcing, competition, dependence on collaborative partners, key suppliers and third party distributors, capital spending and government funding policies, (11) changes in governmental regulations, intellectual property rights, and litigation, (12) exposure to foreign currency fluctuations, (13) the impact of foreign currency exchange rates, (14) our ability to service our debt obligations and fund our anticipated cash needs, (15) the effect of a concentrated ownership of our common stock, (16) the loss of key personnel, (17) payment of future dividends, (18) the impact (if any) of macroeconomic issues, including uncertainties related to trade policies or tariff regulations, and (19) other risk factors discussed from time to time in our filings with the Securities and Exchange Commission, or SEC. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2025, as may be updated by our quarterly reports on Form 10-Q. We expressly disclaim any intent or obligation to update these forward-looking statements other than as required by applicable law. Bruker Corporation PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 838.5 $ 797.4 $ 1,661.9 $ 1,598.8 Cost of revenue 422.5 439.5 866.1 849.7 Gross profit 416.0 357.9 795.8 749.1 Operating expenses: Selling, general and administrative 238.9 231.4 481.0 456.8 Research and development 94.3 100.2 195.6 197.3 Goodwill impairment charge 134.9 — 134.9 — Other charges, net 13.2 14.4 39.4 51.3 Total operating expenses 481.3 346.0 850.9 705.4 Operating (loss) income (65.3 ) 11.9 (55.1 ) 43.7 Interest and other income (expense), net 24.6 (11.4 ) 36.3 (18.1 ) (Loss) income before income taxes, equity in income of unconsolidated investees, net of tax, and noncontrolling interests in consolidated subsidiaries (a) (40.7 ) 0.5 (18.8 ) 25.6 Income tax provision (benefit) 14.2 (3.1 ) 16.7 5.6 Equity in income of unconsolidated investees, net of tax 4.0 0.6 0.3 1.0 Consolidated net (loss) income (50.9 ) 4.2 (35.2 ) 21.0 Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries 1.1 (3.4 ) 2.4 (4.0 ) Net (loss) income attributable to Bruker Corporation $ (52.0 ) $ 7.6 $ (37.6 ) $ 25.0 Dividends on Series A Mandatory Convertible Preferred Stock 10.9 — 21.8 — Net (loss) income attributable to Bruker Corporation common shareholders $ (62.9 ) $ 7.6 $ (59.4 ) $ 25.0 Net (loss) income per common share attributable to Bruker Corporation shareholders: Basic $ (0.41 ) $ 0.05 $ (0.39 ) $ 0.16 Diluted $ (0.41 ) $ 0.05 $ (0.39 ) $ 0.16 Weighted average common shares outstanding: Basic 152.3 151.6 152.2 151.6 Diluted 152.3 151.7 152.2 151.8 Bruker Corporation REVENUE (unaudited and in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue by Segment: Bruker BioSpin $ 195.7 $ 195.3 $ 393.2 $ 403.1 Bruker CALID 310.3 285.8 626.6 565.9 Bruker Nano 261.3 252.1 507.3 508.7 BSI Revenue Total 767.3 733.2 1,527.1 1,477.7 BEST 74.2 66.3 141.0 125.6 Eliminations (3.0 ) (2.1 ) (6.2 ) (4.5 ) Total revenue $ 838.5 $ 797.4 $ 1,661.9 $ 1,598.8 Revenue by End Customer Geography: United States $ 248.2 $ 222.9 $ 470.1 $ 440.3 Europe 308.7 272.5 630.3 557.7 Asia Pacific 217.3 242.1 426.0 474.7 Other 64.3 59.9 135.5 126.1 Total revenue $ 838.5 $ 797.4 $ 1,661.9 $ 1,598.8 Bruker Corporation RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited and in millions, except per share data) The tables below present the GAAP to Non-GAAP reconciliation for the three and six months ended June 30, 2026, and June 30, 2025, respectively, for the following measures: Gross Profit and Gross Profit Margin; Selling, General and Administrative (“SG&A”) Expenses; Operating (loss) income and Operating (loss) income margin; Interest and Other Income (Expense), net; Profit (loss) before Income Taxes; Net Income (loss) Attributable to Bruker Corporation Common Shareholders; Diluted net income (loss) per common share; and Income Tax rate. Gross Profit Gross Profit Margin SG&A Expenses Operating (Loss) income Operating (Loss) income Margin Interest and other income (expense), net (Loss) profit before income tax (a) Net (loss) income attributable to Bruker Corporation Common Shareholders Diluted net (loss) income per common share attributable to Bruker Corporation Common Shareholders (b) Income Tax Rate Three Months Ended June 30, 2026: GAAP $416.0 49.6% $238.9 $(65.3) (7.8)% $24.6 $(40.7) $(62.9) $(0.41) (34.9)% Non-GAAP adjustments: Restructuring costs 0.3 — — 4.2 0.5% — 4.2 4.2 0.03 — Acquisition-related costs 0.8 0.1% — 4.4 0.5% — 4.4 4.4 0.03 — Purchased intangibles amortization 18.3 2.2% (15.0) 33.3 4.0% — 33.3 33.3 0.22 — Goodwill and Intangible assets impairment charges — — — 134.9 16.1% — 134.9 134.9 0.88 — Lease and fixed asset impairment charges 0.3 — — 2.9 0.3% — 2.9 2.9 0.02 — Unrealized gain on equity interest investment — — — — — (27.6) (27.6) (27.6) (0.18) — Other costs 0.9 0.2% — 4.1 0.5% 1.5 5.6 1.4 — — Tax effect of above Non-GAAP adjustments — — — — — — — (15.0) (0.10) 56.0% Other Discrete Items — — — — — — — — — 3.9% Total Non-GAAP adjustments 20.6 2.5% (15.0) 183.8 21.9% (26.1) 157.7 138.5 0.90 59.9% Non-GAAP $436.6 52.1% $223.9 $118.5 14.1% $(1.5) $117.0 $75.6 $0.49 25.0% Three Months Ended June 30, 2025: GAAP $357.9 44.9% $231.4 $11.9 1.5% $(11.4) $0.5 $7.6 $0.05 (620.0)% Non-GAAP adjustments: Restructuring costs 4.4 0.6% — 7.3 0.9% — 7.3 7.3 0.05 — Acquisition-related costs 2.8 0.4% — 5.5 0.7% — 5.5 5.5 0.04 — Purchased intangibles amortization 15.0 1.9% (16.5) 31.5 4.0% — 31.5 31.5 0.21 — Acquisition-related litigation charges — — — 4.0 0.5% — 4.0 4.0 0.03 — Other costs 7.1 0.8% — 11.8 1.4% 0.4 12.2 9.9 0.07 — Tax effect of above Non-GAAP adjustments — — — — — — — (17.5) (0.13) 643.6% Other Discrete Items — — — — — — — — — — Total Non-GAAP adjustments 29.3 3.7% (16.5) 60.1 7.5% 0.4 60.5 40.7 0.27 643.6% Non-GAAP $387.2 48.6% $214.9 $72.0 9.0% $(11.0) $61.0 $48.3 $0.32 23.6% Bruker Corporation RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued (unaudited and in millions, except per share data) Gross Profit Gross Profit Margin SG&A Expenses Operating (Loss) Income Operating (Loss) income Margin Interest and other income (expense), net (Loss) Profit before income tax (a) Net (loss) income attributable to Bruker Corporation Common Shareholders Diluted net (loss) income per common share attributable to Bruker Corporation Common Shareholders (b) Income Tax Rate Six Months Ended June 30, 2026 GAAP $795.8 47.9% $481.0 $(55.1) (3.3)% $36.3 $(18.8) $(59.4) $(0.39) (88.8)% Non-GAAP adjustments: Restructuring costs 9.8 0.6% — 22.0 1.3% — 22.0 22.0 0.14 — Acquisition-related costs 4.2 0.3% — 11.9 0.7% — 11.9 11.9 0.08 — Purchased intangibles amortization 35.0 2.1% (30.7) 65.8 4.0% — 65.8 65.8 0.43 — Gain on remeasurement of previously held equity interest — — — — — (12.2) (12.2) (12.2) (0.08) — Goodwill and Intangible assets impairment charges 0.7 — — 137.6 8.3% — 137.6 137.6 0.90 — Lease and fixed asset impairment charges 2.1 0.1% — 15.6 0.9% — 15.6 15.6 0.10 — Unrealized gain on equity interest investment — — — — — (27.6) (27.6) (27.6) (0.18) — Other costs 0.8 0.1% — 4.9 0.3% 0.3 5.2 4.2 0.03 — Tax effect of above Non-GAAP adjustments — — — — — — — (35.3) (0.23) 112.3% Other Discrete Items — — — — — — — — — 2.6% Total Non-GAAP adjustments 52.6 3.2% (30.7) 257.8 15.5% (39.5) 218.3 182.0 1.19 114.9% Non-GAAP $848.4 51.1% $450.3 $202.7 12.2% $(3.2) $199.5 $122.6 $0.80 26.1% Six Months Ended June 30, 2025: GAAP $749.1 46.9% $456.8 $43.7 2.7% $(18.1) $25.6 $25.0 $0.16 21.9% Non-GAAP adjustments: Restructuring costs 7.0 0.4% — 17.5 1.1% — 17.5 17.5 0.12 — Acquisition-related costs 5.1 0.3% — 14.1 0.9% — 14.1 14.1 0.09 — Purchased intangibles amortization 29.0 1.8% (29.6) 58.8 3.7% — 58.8 58.8 0.39 — Acquisition-related litigation charges — — — 22.6 1.4% — 22.6 22.6 0.15 — Other costs 7.9 0.5% — 17.0 1.1% 2.4 19.4 16.7 0.11 — Tax effect of above Non-GAAP adjustments — — — — — — — (35.7) (0.24) 4.2% Other Discrete Items — — — — — — — — — — Total Non-GAAP adjustments 49.0 3.0% (29.6) 130.0 8.2% 2.4 132.4 94.0 0.62 4.2% Non-GAAP $798.1 49.9% $427.2 $173.7 10.9% $(15.7) $158.0 $119.0 $0.78 26.1% Bruker Corporation RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued (unaudited and in millions, except per share data) The tables below present the GAAP to Non-GAAP reconciliation for CER currency revenue, organic revenue, free cash flow, and weighted average common shares outstanding (Diluted): Total Bruker Bruker Scientific Instruments (a) BEST Three Months Ended June 30, 2026 yoy growth (c) 2025 2026 yoy growth (c) 2025 2026 yoy growth (c) 2025 GAAP revenue $ 838.5 5.2% $ 797.4 $ 767.3 4.7% $ 733.2 $ 71.2 10.9% $ 64.2 Effect of changes in foreign currency translation rates 7.0 23.4 5.7 21.2 1.3 2.2 Non-GAAP CER currency revenue 831.5 4.3% 774.0 761.6 3.9% 712.0 69.9 8.9% 62.0 Acquisitions (b) 11.4 29.6 11.4 29.6 — — Non-GAAP Organic revenue $ 820.1 2.8% $ 744.4 $ 750.2 2.3% $ 682.4 $ 69.9 8.9% $ 62.0 Total Bruker Bruker Scientific Instruments (a) BEST Six Months Ended June 30, 2026 yoy growth (c) 2025 2026 yoy growth (c) 2025 2026 yoy growth (c) 2025 GAAP revenue $ 1,661.9 3.9% $ 1,598.8 $ 1,527.1 3.3% $ 1,477.7 $ 134.8 11.3% $ 121.1 Effect of changes in foreign currency translation rates 43.6 13.0 37.3 12.0 6.3 1.0 Non-GAAP CER currency revenue 1,618.3 1.2% 1,585.8 1,489.8 0.8% 1,465.7 128.5 6.1% 120.1 Acquisitions (b) 32.2 98.8 32.2 98.8 — — Non-GAAP Organic revenue $ 1,586.1 (0.8)% $ 1,487.0 $ 1,457.6 (1.4)% $ 1,366.9 $ 128.5 6.1% $ 120.1 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net cash used in operating activities $ (77.4 ) $ (127.5 ) $ (6.2 ) $ (62.5 ) Non-GAAP adjustments: Purchases of property, plant and equipment and intangible assets (28.8 ) (21.3 ) (53.0 ) (47.3 ) Non-GAAP free cash flow $ (106.2 ) $ (148.8 ) $ (59.2 ) $ (109.8 ) Bruker Corporation RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued (unaudited and in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 GAAP Weighted Average Common Shares Outstanding (Diluted) 152.3 151.7 152.2 151.8 Stock options, restricted stock units, and employee stock purchase plan (a) 0.5 — 0.5 — Series A Mandatory Convertible Preferred Stock (b) — — — — Non-GAAP Weighted Average Common Shares Outstanding (Diluted) 152.8 151.7 152.7 151.8 Bruker Corporation PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 184.9 $ 298.8 Accounts receivable, net 545.9 544.9 Inventories 1,120.1 1,094.6 Other current assets 374.1 274.2 Total current assets 2,225.0 2,212.5 Property, plant and equipment, net 714.1 744.8 Goodwill, intangibles, net and other long-term assets 3,113.8 3,284.1 Total assets $ 6,052.9 $ 6,241.4 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt and finance lease obligations $ 10.1 $ 16.6 Accounts payable 200.2 215.9 Current portion of deferred revenue and customer advances 444.6 441.3 Other current liabilities 549.8 605.4 Total current liabilities 1,204.7 1,279.2 Long-term debt 1,814.7 1,852.5 Other long-term liabilities 597.7 599.4 Redeemable noncontrolling interests 35.6 36.8 Total shareholders' equity 2,400.2 2,473.5 Total liabilities, redeemable noncontrolling interests and shareholders' equity $ 6,052.9 $ 6,241.4 Bruker Corporation PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash flows from operating activities: Consolidated net (loss) income $ (50.9 ) $ 4.2 $ (35.2 ) $ 21.0 Adjustments to reconcile net (loss) income to cash flows from operating activities: Depreciation and amortization 58.0 56.1 116.3 106.5 Asset impairments 141.8 7.5 157.7 10.3 Other non-cash expenses (income), net (29.4 ) (35.0 ) (23.9 ) (49.3 ) Changes in operating assets and liabilities, net of acquisitions and divestitures (196.9 ) (160.3 ) (221.1 ) (151.0 ) Net cash used in operating activities (77.4 ) (127.5 ) (6.2 ) (62.5 ) Cash flows from investing activities: Purchases of property, plant and equipment and intangible assets (28.8 ) (21.3 ) (53.0 ) (47.3 ) Cash paid for acquisitions, net of cash acquired — (68.4 ) (16.0 ) (69.5 ) Other investing activities, net 3.5 (1.4 ) 4.0 (0.4 ) Net cash used in investing activities (25.3 ) (91.1 ) (65.0 ) (117.2 ) Cash flows from financing activities: Repayments of revolving lines of credit (25.0 ) (51.2 ) (25.0 ) (219.1 ) Proceeds from revolving lines of credit 195.0 168.3 195.0 308.2 Repayment of long-term debt (2.3 ) (14.6 ) (183.6 ) (22.3 ) Proceeds from long-term debt — — — 2.9 Payment of dividends to shareholders (18.5 ) (7.6 ) (37.1 ) (15.3 ) Other financing activities, net — 0.6 (5.0 ) (10.1 ) Net cash provided by (used in) financing activities 149.2 95.5 (55.7 ) 44.3 Effect of exchange rate changes on cash, cash equivalents and restricted cash 5.0 31.6 12.9 44.9 Net decrease in cash, cash equivalents and restricted cash 51.5 (91.5 ) (114.0 ) (90.5 ) Cash, cash equivalents and restricted cash at beginning of period 137.6 187.7 303.1 186.7 Cash, cash equivalents and restricted cash at end of period $ 189.1 $ 96.2 $ 189.1 $ 96.2
	Saved 2026-08-04 12:00 1mo ago Published 2026-08-04 07:45 1mo ago	American Express GBT zvýšila tržby a schválila převzetí Long Lake Management American Express Global Business Travel ve 2. čtvrtletí zvýšila tržby o 38 % na 870 milionů USD a upravený zisk před úroky, daněmi, odpisy a amortizací (EBITDA) vzrostl na 178 milionů USD. Akcionáři zároveň 3. srpna 2026 schválili plánované převzetí Long Lake Management. GBTG Global Business Travel Group	FMP Stock News	88
Original source text NEW YORK--(BUSINESS WIRE)--American Express Global Business Travel, which is operated by Global Business Travel Group, Inc. (NYSE: GBTG) ("Amex GBT" or the "Company"), a leading software and services company for travel, expense and meetings & events, today reported second quarter 2026 financial results. (in millions, except percentages; unaudited) Three Months Ended YOY Inc / (Dec) June 30, 2026 2025 Revenue $ 870 $ 631 38 % Total operating expenses $ 846 $ 597 42 % Gross Profit $ 494 $ 371 33 % Gross Profit Margin 57 % 59 % (200)bps Net income $ 17 $ 15 14 % Net income margin 2 % 2 % (40)bps Adjusted Gross Profit $ 514 $ 389 32 % Adjusted Gross Profit Margin 59 % 62 % (250)bps Adjusted Operating Expenses $ 696 $ 500 39 % Adjusted EBITDA $ 178 $ 133 34 % Adjusted EBITDA Margin 21 % 21 % (60)bps Net cash from operating activities $ 142 $ 57 153 % Free Cash Flow $ 103 $ 27 281 % Net Debt / LTM Adjusted EBITDA 1.7x 1.6x A reconciliation of non-GAAP financial measures to the most comparable GAAP measure is provided at the end of this release. Results include the impact of acquisitions for Q2 2026 only. Paul Abbott, Chief Executive Officer: "We delivered strong growth and commercial and product success. Total New Wins Value accelerated to $3.5 billion, with double-digit SME growth and major wins with Google, Koch and Pfizer, while maintaining an impressive 95% customer retention rate. Our new product innovations are clearly resonating with customers, including our proprietary agent-to-agent architecture, our Egencia AI connector in Claude and enhancements for Complete by SAP Concur and Amex GBT." Business Highlights Strong growth and financial performance. Delivered revenue growth of 38% with Adjusted Gross Profit Margin of 59% and Adjusted EBITDA of $178 million. Continued commercial progress. LTM Total New Wins Value accelerated to $3.5 billion, including major new wins with Google, Koch and Pfizer. Maintained strong customer retention rate of 95%, including CWT. Strong momentum in SME, with LTM SME New Wins Value of $2.3 billion, up 11% year-over-year. Product innovation. Launched Egencia AI connector in Claude, one of the business travel industry's first agentic integrations enabling both travelers and enterprise AI agents to book and manage policy-compliant air and hotel transactions without leaving the tools they already work in. Also expanded Egencia's conversational AI into Google Chat and a conversational AI pilot in Microsoft Teams for Neo customers. Egencia integration with Concur Expense is now live for all customers. SAP Strategic Alliance. 83% of eligible joint customers are now using Complete by SAP Concur and Amex GBT, the new, AI-powered flagship solution for travel and expense. A new set of innovations for Complete have been launched that help travelers navigate disruptions more easily, give travel managers greater visibility into program performance and make it easier for organizations to capture more value from their travel investments. Second Quarter 2026 Operational & Financial Highlights (Changes compared to prior year period unless otherwise noted) TTV growth of 57% and Transaction Growth of 45%. Revenue of $870 million increased 38%. Within this, Travel Revenue increased 38% due to acquisition impacts, growth in business travel demand and share gains. Product and Professional Services Revenue increased 38%. Excluding the impact of acquisitions, revenue growth was 10%. Total operating expenses of $846 million increased 42%, primarily due to the impact of acquisitions, increased cost of revenue to drive growth and increased investments in technology, content, sales and marketing, partially offset by $18 million of cost transformation benefits and $14 million of CWT net synergies, which was in line with expectations. Additionally, there were restructuring costs related to achievement of CWT synergies and broader cost transformation and higher depreciation and amortization. Net income of $17 million increased 14%. Revenue growth and higher benefit from income taxes were offset by higher operating expenses, including restructuring costs related to achieving CWT synergies and broader cost transformation initiatives, and unfavorable movement on earnout derivative liabilities. Net cash from operating activities of $142 million increased 153% primarily due to favorable working capital timing and lower cash taxes. Free Cash Flow of $103 million increased 281%, due to higher net cash from operating activities, partially offset by increased investments in purchase of property and equipment. Shareholder approval for the proposed acquisition of the Company by Long Lake Management (the "Merger") was obtained on August 3, 2026. The Merger is expected to close in the second half of 2026, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals. Glossary of Terms See the "Glossary of Terms" for the definitions of certain terms used within this press release. About American Express Global Business Travel American Express Global Business Travel (Amex GBT) is a leading software and services company for travel, expense, and meetings & events. We have built the most valuable marketplace in travel with the most comprehensive and competitive content. A choice of solutions brought to you through a strong combination of technology and people, delivering the best experiences. With travel professionals and business partners in more than 140 countries, our solutions deliver savings, flexibility, and service from a brand you can trust – Amex GBT. Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on LinkedIn and Instagram. GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended June 30, (in $ millions, except share and per share data) 2026 2025 Revenue $ 870 $ 631 Costs and expenses: Cost of revenue (excluding depreciation and amortization shown separately below) 356 242 Sales and marketing 123 111 Technology and content 160 120 General and administrative 110 69 Restructuring and other exit charges 41 12 Depreciation and amortization 56 43 Total operating expenses 846 597 Operating income 24 34 Interest income 1 2 Interest expense (25 ) (23 ) Fair value movement on earnout derivative liabilities 6 32 Other income (loss), net 9 (11 ) Income before income taxes 15 34 Provision for income taxes (2 ) (21 ) Share of income from equity method investments 4 2 Net income 17 15 Less: net income attributable to non-controlling interests in subsidiaries 2 2 Net income attributable to the Company’s Class A common stockholders $ 15 $ 13 Basic income per share attributable to the Company’s Class A common stockholders $ 0.03 $ 0.03 Weighted average number of shares outstanding - Basic 513,798,712 470,877,173 Diluted income per share attributable to the Company’s Class A common stockholders $ 0.03 $ 0.03 Weighted average number of shares outstanding - Diluted 520,372,250 474,839,915 GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED BALANCE SHEETS (in $ millions, except share and per share data) June 30, 2026 December 31, 2025 (Unaudited) Assets Current assets: Cash and cash equivalents $ 518 $ 434 Accounts receivable (net of allowance for credit losses of $11 and $9 as of June 30, 2026 and December 31, 2025, respectively) 968 869 Due from affiliates 66 51 Prepaid expenses and other current assets 237 215 Total current assets 1,789 1,569 Property and equipment, net 308 308 Equity method investments 48 43 Goodwill 1,663 1,671 Other intangible assets, net 800 851 Operating lease right-of-use assets 60 66 Deferred tax assets 318 298 Other non-current assets 91 110 Total assets $ 5,077 $ 4,916 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 619 $ 515 Due to affiliates 36 25 Accrued expenses and other current liabilities 758 757 Current portion of operating lease liabilities 23 26 Current portion of long-term debt 61 58 Total current liabilities 1,497 1,381 Long-term debt, net of unamortized debt discount and debt issuance costs 1,451 1,360 Deferred tax liabilities 98 99 Pension liabilities 148 163 Long-term operating lease liabilities 64 62 Earnout derivative liabilities — 37 Other non-current liabilities 128 153 Total liabilities 3,386 3,255 Commitments and Contingencies Redeemable non-controlling interest 46 49 Shareholders’ equity: Class A common stock (par value $0.0001; 3,000,000,000 shares authorized; 547,016,649 and 538,342,297 shares issued, 522,285,480 and 521,088,517 shares outstanding as of June 30, 2026 and December 31, 2025, respectively) — — Additional paid-in capital 3,293 3,277 Accumulated deficit (1,399 ) (1,466 ) Accumulated other comprehensive loss (80 ) (75 ) Treasury shares, at cost (24,731,169 and 17,253,780 shares as of June 30, 2026 and December 31, 2025, respectively) (175 ) (128 ) Total equity of the Company’s shareholders 1,639 1,608 Equity attributable to non-controlling interest in subsidiaries 6 4 Total shareholders’ equity 1,645 1,612 Total liabilities, redeemable non-controlling interest and shareholders’ equity $ 5,077 $ 4,916 GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, (in $ millions) 2026 2025 Operating activities: Net income $ 71 $ 90 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 116 83 Deferred tax (benefit) charge (26 ) 10 Equity-based compensation 36 39 Allowance for credit losses 6 3 Loss on early extinguishment of debt — 2 Fair value movement on earnout derivative liabilities (37 ) (106 ) Other, net (6 ) 18 Changes in working capital: Accounts receivable (115 ) (123 ) Prepaid expenses and other current assets (28 ) (3 ) Due from affiliates (15 ) (13 ) Due to affiliates 11 (6 ) Accounts payable, accrued expenses and other current liabilities 129 98 Defined benefit pension funding (15 ) (13 ) Proceeds from termination of interest rate swap contracts — 31 Net cash from operating activities 127 110 Investing activities: Business acquisition, net of cash and restricted cash acquired 10 — Purchase of property and equipment (76 ) (57 ) Proceeds from foreign exchange forward contracts — 27 Net cash used in investing activities (66 ) (30 ) Financing activities: Proceeds from senior secured term loans 132 99 Repayment of senior secured term loans (40 ) (106 ) Repurchase of common shares (47 ) (1 ) Contributions from ESPP 4 4 Payment of taxes withheld on vesting of equity awards (28 ) (41 ) Other (1 ) (3 ) Net cash from (used in) financing activities 20 (48 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (8 ) 25 Net increase in cash, cash equivalents and restricted cash 73 57 Cash, cash equivalents and restricted cash, beginning of period 479 561 Cash, cash equivalents and restricted cash, end of period $ 552 $ 618 Supplemental cash flow information: Cash paid for income taxes (net of refunds) $ — $ 29 Cash paid for interest (net of interest received) $ 48 $ 50 Issuance of shares to settle contingent consideration $ 4 $ — Non-cash additions for operating lease right-of-use assets $ 10 $ 2 Non-cash additions for finance lease $ — $ 1 Additional Information and Disclosures Glossary of Terms AI refers to Artificial Intelligence. CWT refers to CWT Holdings, LLC. Customer retention rate is calculated based on traded Total Transaction Value in the quarter versus the same period in the prior year. LTM refers to the last twelve months ended June 30, 2026. GMN refers to Global & Multinational Enterprises and SME refers to Small and Medium-sized Enterprises. For organizational management purposes, Amex GBT divides the customer base into these two general categories, generally on the basis of annual TTV, although this measure can vary by country and by customer preference. Amex GBT offers all products and services to all sizes of customer, as customers of all sizes may prefer different solutions. SME New Wins Value is calculated using expected annual Total Transaction Value (TTV) over the contract term from all SME new client wins over the last twelve months. Total New Wins Value is calculated using expected annual Total Transaction Value (TTV) over the contract term from all new client wins over the last twelve months. Total Transaction Value or TTV refers to the sum of the total price paid by travelers for air, hotel, rail, car rental and cruise bookings, including taxes and other charges applied by suppliers at point of sale, less cancellations and refunds. Transaction Growth represents year-over-year increase or decrease as a percentage of the total transactions, including air, hotel, car rental, rail or other travel-related transactions, recorded at the time of booking, and is calculated on a net basis to exclude cancellations, refunds and exchanges. To calculate year-over-year growth or decline, we compare the total number of net transactions in the comparative previous period/ year to the total number of net transactions in the current period/year in percentage terms. We have presented Transaction Growth on a net basis to exclude cancellations, refunds and exchanges as management believes this better aligns Transaction Growth with the way we measure TTV and earn revenue. Prior period Transaction Growth percentages have been recalculated and represented to conform to current period presentation. Non-GAAP Financial Measures We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition, and should not be considered as an alternative, to other performance or liquidity measures derived in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and you should not consider them either in isolation or as a substitute for analyzing our results as reported under GAAP. In addition, because not all companies use identical calculations, the presentations of our non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Management believes that these non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance or liquidity across periods. In addition, we use certain of these non-GAAP financial measures as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital investment allocations. We also use certain of our non-GAAP financial measures as indicators of our ability to generate cash to meet our liquidity needs and to assist our management in evaluating our financial flexibility, capital structure and leverage. These non-GAAP financial measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and/or to compare our performance and liquidity against that of other peer companies using similar measures. We define Adjusted Gross Profit as revenue less cost of revenue (excluding depreciation and amortization). We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by revenue. We define EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization. We define Adjusted EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization and as further adjusted to exclude costs that management believes are non-core to the underlying business of the Company, consisting of restructuring, exit and related charges, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation and related employer taxes, long-term incentive plan costs, certain corporate costs, fair value movements on earnout derivative liabilities, foreign currency gains (losses) and non-service components of net periodic pension benefit (costs). We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We define Adjusted Operating Expenses as total operating expenses excluding depreciation and amortization and costs that management believes are non-core to the underlying business of the Company, consisting of restructuring, exit and related charges, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation and related employer taxes, long-term incentive plan costs and certain corporate costs. Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are supplemental non-GAAP financial measures of operating performance that do not represent and should not be considered as alternatives to gross profit, net income (loss) or total operating expenses, as determined under GAAP. In addition, these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the Company’s results or expenses as reported under GAAP. Some of these limitations are that these measures do not reflect: changes in, or cash requirements for, our working capital needs or contractual commitments; our interest expense, or the cash requirements to service interest or principal payments on our indebtedness; our tax expense, or the cash requirements to pay our taxes; recurring, non-cash expenses of depreciation and amortization of property and equipment and definite-lived intangible assets and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future; the non-cash expense of stock-based compensation, which has been, and will continue to be for the foreseeable future, an important part of how we attract and retain our employees and a significant recurring expense in our business; restructuring, mergers and acquisition and integration costs, all of which are intrinsic to our acquisitive business model; and impact on earnings or changes resulting from matters that are non-core to our underlying business, as we believe they are not indicative of our underlying operations. Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses should not be considered as a measure of liquidity or as a measure determining discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We believe that the adjustments applied in presenting Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are appropriate to provide additional information to investors about certain material non-cash and other items that management believes are non-core to our underlying business. We use these measures as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital investment allocations. These non-GAAP measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. We also believe that Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are helpful supplemental measures to assist potential investors and analysts in evaluating our operating results across reporting periods on a consistent basis. We define Free Cash Flow as net cash from (used in) operating activities, less cash used for additions to property and equipment. We believe Free Cash Flow is an important measure of our liquidity. This measure is a useful indicator of our ability to generate cash to meet our liquidity demands. We use this measure to conduct and evaluate our operating liquidity. We believe it typically presents an alternate measure of cash flow since purchases of property and equipment are a necessary component of our ongoing operations and it provides useful information regarding how cash provided by operating activities compares to the property and equipment investments required to maintain and grow our platform. We believe Free Cash Flow provides investors with an understanding of how assets are performing and measures management’s effectiveness in managing cash. Free Cash Flow is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure has limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent cash flow for discretionary expenditures. This measure should not be considered as a measure of liquidity or cash flow from operations as determined under GAAP. This measure is not a measurement of our financial performance under GAAP and should not be considered in isolation or as an alternative to net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of liquidity. We define Net Debt as total debt outstanding consisting of the current and non-current portion of long-term debt, net of unamortized debt discount and unamortized debt issuance costs, minus cash and cash equivalents. Net Debt is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure is not a measurement of our indebtedness as determined under GAAP and should not be considered in isolation or as an alternative to assess our total debt or any other measures derived in accordance with GAAP or as an alternative to total debt. Management uses Net Debt to review our overall liquidity, financial flexibility, capital structure and leverage. Further, we believe that certain debt rating agencies, creditors and credit analysts monitor our Net Debt as part of their assessment of our business. Reconciliation of Adjusted Gross Profit to Gross Profit: Three months ended June 30, (in $ millions) 2026 2025 Revenue $ 870 $ 631 Cost of revenue (excluding depreciation and amortization) 356 242 Adjusted Gross Profit 514 389 Depreciation and amortization related to cost of revenue 20 18 Gross Profit 494 371 Gross Profit Margin 57 % 59 % Adjusted Gross Profit Margin 59 % 62 % Reconciliation of net income to EBITDA and Adjusted EBITDA: Three months ended June 30, (in $ millions) 2026 2025 Net income $ 17 $ 15 Interest income (1 ) (2 ) Interest expense 25 23 Provision for income taxes 2 21 Depreciation and amortization 56 43 EBITDA 99 100 Restructuring, exit and related charges (a) 45 13 Integration costs (b) 17 3 Mergers and acquisitions costs (c) 12 18 Equity-based compensation and related employer taxes (d) 20 20 Fair value movement on earnout derivative liabilities (e) (6 ) (32 ) Other adjustments, net (f) (9 ) 11 Adjusted EBITDA $ 178 $ 133 Net income Margin 2 % 2 % Adjusted EBITDA Margin 21 % 21 % Reconciliation of total operating expenses to Adjusted Operating Expenses: Three months ended June 30, (in $ millions) 2026 2025 Total operating expenses $ 846 $ 597 Adjustments: Depreciation and amortization (56 ) (43 ) Restructuring, exit and related charges (a) (45 ) (13 ) Integration costs (b) (17 ) (3 ) Mergers and acquisitions costs (c) (12 ) (18 ) Equity-based compensation and related employer taxes (d) (20 ) (20 ) Adjusted Operating Expenses $ 696 $ 500 a) Includes (i) employee severance costs of $38 million and $11 million for the three months ended June 30, 2026 and 2025, respectively, (ii) accelerated amortization of operating lease ROU assets of $4 million and $1 million for the three months ended June 30, 2026 and 2025, respectively, and (iii) contract costs related to facility abandonment of $3 million and $1 million for the three months ended June 30, 2026 and 2025, respectively. b) Represents expenses related to the integration of business acquisitions. c) Represents expenses related to business acquisitions, including potential business acquisitions, and includes pre-acquisition due diligence and related activities costs. d) Represents non-cash equity-based compensation expense and employer taxes paid related to equity incentive awards to certain employees. e) Represents fair value movements on earnout derivative liabilities during the periods. f) Adjusted EBITDA excludes (i) unrealized foreign exchange gain (loss) of $9 million and $(10) million for the three months ended June 30, 2026 and 2025, respectively, and (ii) non-service component of our net periodic pension cost related to our defined benefit pension plans of $0 and $1 million for the three months ended June 30, 2026 and 2025, respectively. Reconciliation of LTM Adjusted EBITDA: Three months ended Last twelve months ended (in $ millions) September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 June 30, 2026 Net (loss) income $ (62 ) $ 83 $ 54 $ 17 $ 92 Interest income (2 ) (2 ) (1 ) (1 ) (6 ) Interest expense 24 24 27 25 100 Provision for (benefit from) income taxes 24 (26 ) (42 ) 2 (42 ) Depreciation and amortization 49 60 60 56 225 EBITDA 33 139 98 99 369 Restructuring, exit and related charges 31 10 49 45 135 Integration costs 4 8 9 17 38 Mergers and acquisitions 10 1 3 12 26 Equity-based compensation and related employer taxes 19 20 25 20 84 Fair value movement on earnout derivative liabilities 26 (16 ) (31 ) (6 ) (27 ) Gain on remeasurement of equity method investment at fair value — (39 ) — — (39 ) Other adjustments, net 5 7 (3 ) (9 ) — Adjusted EBITDA $ 128 $ 130 $ 150 $ 178 $ 586 Reconciliation of net cash from operating activities to Free Cash Flow: Three months ended June 30, (in $ millions) 2026 2025 Net cash from operating activities $ 142 $ 57 Less: Purchase of property and equipment (39 ) (30 ) Free Cash Flow $ 103 $ 27 Reconciliation of Net Debt: As of (in $ millions) June 30, 2026 December 31, 2025 June 30, 2025 Current portion of long-term debt $ 61 $ 58 $ 19 Long-term debt, net of unamortized debt discount and debt issuance costs 1,451 1,360 1,362 Total debt, net of unamortized debt discount and debt issuance costs 1,512 1,418 1,381 Less: Cash and cash equivalents (518 ) (434 ) (601 ) Net Debt $ 994 $ 984 $ 780 LTM Adjusted EBITDA $ 586 $ 532 $ 502 Net Debt / LTM Adjusted EBITDA 1.7x 1.9x 1.6x Forward-Looking Statements Certain statements made in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this release are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks, uncertainties and other factors: (1) changes to projected financial information or our ability to achieve our anticipated growth rate and execute on industry opportunities; (2) our ability to maintain our existing relationships with clients and suppliers and to compete with existing and new competitors; (3) various conflicts of interest that could arise among us, affiliates and investors; (4) our success in retaining or recruiting, or changes required in, our officers, key employees or directors; (5) factors relating to our business, operations and financial performance, including market conditions and global and economic factors beyond our control; (6) the impact of geopolitical conflicts, including the war in Ukraine, the conflicts in the Middle East, tensions between China and Taiwan and military operations in Venezuela, as well as related changes in base interest rates, inflation and significant market volatility on our business, the travel industry, travel trends and the global economy generally; (7) the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; (8) the effect of a prolonged or substantial decrease in global travel on the global travel industry; (9) political, social and macroeconomic conditions (including the widespread adoption of teleconference and virtual meeting technologies which could reduce the number of in-person business meetings and demand for travel and our services); (10) the effect of legal, tax and regulatory changes; (11) the impact of any future acquisitions including the integration of any acquisition; (12) costs related to, or the inability to recognize the anticipated benefits of our merger with CWT; (13) risks related to the business of CWT or unexpected liabilities that may arise in connection with the integration of CWT into our business; (14) the outcome of any legal proceedings that may be instituted against the Company in connection with the merger with CWT or the proposed Merger; (15) the ability to complete the proposed Merger on the anticipated terms and timing, or at all, including obtaining required regulatory approvals and the satisfaction of other conditions to the completion of the proposed Merger; (16) the ability to achieve the cost reductions contemplated by our business strategy after the completion of the Merger; (17) the risk that disruptions from the proposed Merger (such as the ability of certain customers of the Company to terminate or amend contracts upon a change of control, or to withhold consent to such change of control) will harm the Company’s business, including current plans and operations, during the pendency, and following the completion of, the proposed Merger; (18) the diversion of management’s time and attention from ordinary course business operations to completion of the proposed Merger; (19) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed Merger; (20) contractual provisions that may impact the Company’s ability to pursue certain business opportunities or strategic transactions during the pendency, and/or following the completion of, the proposed Merger; (21) the occurrence of any event, change, or other circumstance that could give rise to the termination of the proposed Merger; (22) those risks and uncertainties found in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the risk factors discussed in the Company’s most recent Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and future filings with the SEC from time to time, which are available via the SEC’s website at www.sec.gov; and (23) those risks and uncertainties that are described in the definitive proxy statement that was filed with the SEC on July 6, 2026 in connection with the Merger. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. These factors should not be construed as exhaustive and should be read in conjunction with the other forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Disclaimer An investment in Global Business Travel Group, Inc. is not an investment in American Express. American Express shall not be responsible in any manner whatsoever for, and in respect of, the statements herein, all of which are made solely by Global Business Travel Group, Inc. 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	Saved 2026-08-04 12:00 1mo ago Published 2026-08-04 06:30 1mo ago	NOG oznámila čtvrtletní dividendu 0,45 USD na akcii NOG oznámila čtvrtletní hotovostní dividendu 0,45 USD na akcii, stejně jako v předchozím čtvrtletí. Splatná je 30. října 2026 akcionářům k 29. září 2026. NOG Northern Oil & Gas	FMP Stock News	92
Original source text Aug 4, 2026 6:30 AM Eastern Daylight Time MINNEAPOLIS--(BUSINESS WIRE)--Northern Oil and Gas, Inc. (NYSE: NOG) (“NOG” or the “Company”) today announced that its Board of Directors has declared a cash dividend on the Company’s common stock. DIVIDEND DECLARATION NOG’s Board of Directors has declared a cash dividend in the amount of $0.45 per share, representing an equal amount to the prior quarterly dividend. The dividend is payable on October 30, 2026, to stockholders of record as of the close of business on September 29, 2026. ABOUT NOG Northern Oil and Gas (NOG) is the largest publicly traded dedicated non-operator in the United States, built on a differentiated strategy of acquiring non-operated minority working interests and mineral rights across the premier basins of North America. By combining deep industry relationships with disciplined capital allocation, NOG has built a scaled, diversified portfolio that generates durable production and strong cash flow for its shareholders. More information about NOG can be found at www.noginc.com. More News From Northern Oil and Gas, Inc. Back to Newsroom
	Saved 2026-08-04 12:00 1mo ago Published 2026-08-04 07:00 1mo ago	Labcorp spustila test PTEN pro rakovinu prostaty Labcorp spustila celostátní dostupnost FDA schváleného testu VENTANA PTEN (SP218) RxDx pro rakovinu prostaty. Test pomáhá určit pacienty, kteří mohou být vhodní pro léčbu TRUQAP v kombinaci s abirateronem a prednisonem. LH Laboratory Corporation of America Holdings	FMP Stock News	78
Original source text First FDA-approved IHC assay identifies patients who may be eligible for combination treatment with TRUQAP® (capivasertib) , /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced the nationwide availability of Roche's VENTANA® PTEN (SP218) RxDx Assay, the first immunohistochemistry (IHC) companion diagnostic test approved by the U.S. Food and Drug Administration (FDA) to determine PTEN protein loss, also known as PTEN deficiency, in tumors of patients with prostate adenocarcinoma. The assay helps identify patients who may be eligible for treatment with AstraZeneca's TRUQAP® (capivasertib) in combination with abiraterone acetate and prednisone. Addressing an Unmet Need in Prostate Cancer Care Excluding skin cancer, prostate cancer is the most common cancer among men in the United States, with more than 330,000 new cases expected each year. PTEN is a tumor suppressor protein that plays a critical role in regulating cell growth. Loss of PTEN protein expression has been associated with more aggressive disease progression and reduced benefit from current standard-of-care therapies in prostate cancer. Until recently, there were no approved treatment options specifically targeting this biology. The VENTANA PTEN (SP218) RxDx Assay is a companion diagnostic designed to detect PTEN protein loss in prostate cancer tissue specimens, providing clinicians with important biomarker information to help guide treatment decisions and support personalized patient care. "Biomarker testing is essential to advancing precision oncology and helping connect patients with the therapies most appropriate for their disease," said Shakti Ramkissoon, M.D., Ph.D., vice president, medical lead for oncology at Labcorp. "The launch of the VENTANA PTEN (SP218) RxDx Assay underscores how Labcorp is expanding access to innovative companion diagnostics and delivering the timely insights physicians need to make personalized treatment decisions." Advancing Access to FDA-Approved Companion Diagnostics Labcorp participated in Roche's early access program to support Day 1 laboratory readiness for the assay, reinforcing the company's commitment to helping patients gain timely access to newly approved targeted therapies and the companion diagnostics needed to identify eligible patients. The VENTANA PTEN (SP218) RxDx Assay is now available through Labcorp's national network of laboratories and complements the company's comprehensive portfolio of genomic, molecular and companion diagnostic testing services that support precision oncology care. As one of the nation's largest providers of oncology testing services, Labcorp enables physicians across community and academic settings to access FDA-approved companion diagnostics at scale, helping bring precision medicine to more patients regardless of where they receive care. The assay can also be ordered alongside Labcorp's broader portfolio of oncology testing services, providing clinicians with comprehensive biomarker insights from a single laboratory partner. To learn more about the assay, visit https://oncology.labcorp.com/tests/484680/PTEN-IHC-with-interpretation-for-prostate-adenocarcinoma About Labcorp Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025 and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com. SOURCE Labcorp
	Saved 2026-08-04 11:57 1mo ago Published 2026-08-04 06:00 1mo ago	Resideo dokončila odštěpení ADI a splatila dluh Resideo dokončila odštěpení ADI Global Distribution a stává se čistě stavebně-technologickou firmou. V souvislosti s transakcí splatila dluh ve výši 900 milionů USD. REZI Resideo Technologies	FMP Stock News	78
Original source text Positioned To Accelerate Profitable Growth and Innovation as a Pure-Play Building Technologies Company Repaid $900 Million of Indebtedness and Preferred Stock Reduced to 350,000 Shares Outstanding ADI Begins Trading Today on the New York Stock Exchange Under Ticker "ADIG" , /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI) ("Resideo"), a leading global developer and manufacturer of critical control and sensing solutions for residential end markets, today announced the completion of its spin-off of ADI Global Distribution Inc. ("ADI"), establishing Resideo as a pure-play building technologies company. Resideo will continue to trade on the New York Stock Exchange under the ticker symbol "REZI" and ADI's common stock will begin "regular-way" trading today on the New York Stock Exchange under the ticker symbol "ADIG". "With trusted and iconic brands, deep relationships with pros and a 140-year heritage of innovation, Resideo is poised to start this next chapter as a pure-play building technologies company," said Tom Surran, President and Chief Executive Officer of Resideo. "With dedicated strategic, operational and financial focus, we are ready to capture the profitable growth opportunities ahead and drive above market growth and sustained margin expansion." The spin-off was completed through the distribution of all of the issued and outstanding shares of ADI common stock to Resideo common shareholders on the basis of one share of ADI common stock for every two shares of Resideo common stock held of record as of the close of business on July 20, 2026. Resideo shareholders of record will also receive cash in lieu of any fractional shares to which they would otherwise be entitled. In connection with the spin-off, Resideo repaid $900 million of outstanding principal under its Term Loan B credit facility. Resideo expects to make a further repayment of approximately $200 million under its Term Loan B credit facility following the completion of the post-closing cash adjustment under the separation agreement with ADI. Resideo expects to make this repayment by the end of the third fiscal quarter. Additionally, the outstanding Resideo Series A Cumulative Convertible Participating Preferred Stock was reduced by 150,000 shares in connection with the completion of the spin-off, leaving 350,000 shares outstanding, with a proportional adjustment to the conversion price thereof. About Resideo Resideo is a global building technologies company that is a leading developer and manufacturer of critical control and sensing solutions for residential markets. The company serves professional installers and integrators across diverse product segments, such as heating, ventilation, and air conditioning controls, combustion, life safety, security, and water. Its comfort and protection solutions can be found in more than 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. More information about Resideo and its trusted brands, including BRK, First Alert, and Honeywell Home, is available at www.resideo.com. Forward-Looking Statements This press release contains forward-looking statements, including, but not limited to, those regarding our anticipated market positioning and financial and operational performance following the separation of our ADI Global Distribution business from Resideo Technologies, Inc. and other future events or developments. Forward-looking statements are typically identified by such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," and similar expressions, although not all forward-looking statements contain these words. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Among the factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements are the possibility that the separation may not achieve the intended strategic, operational, or financial benefits for Resideo, its businesses, or its shareholders; that Resideo may experience operational or other disruptions as a result of the separation, including those relating to information technology systems, business processes, internal controls, customer and vendor relationships, and workforce alignment. Resideo's ability to succeed as an independent enterprise without ADI will depend on numerous factors, including the execution of its strategies and plans, access to capital markets, the competitive landscape, and general business and economic conditions. Other risks and uncertainties include, but are not limited to, our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, risks and uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, and the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic reports. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of Resideo to differ materially from such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward-looking statements. Contacts: Investors: Christopher T. Lee Global Head of Strategic Finance [email protected] Media: Kevin Hunt Communications Director [email protected] Or Dan Moore, Tali Epstein Collected Strategies [email protected] SOURCE Resideo Technologies, Inc.
	Saved 2026-08-04 11:55 1mo ago Published 2026-08-04 06:55 1mo ago	AMETEK vykazuje rekordní tržby a zvyšuje výhled upraveného EPS AMETEK oznámil rekordní tržby za 2. čtvrtletí ve výši 2,04 mld. USD a zvýšil celoroční výhled upraveného EPS na 8,20 až 8,30 USD. AME Ametek	FMP Stock News	96
Original source text , /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the second quarter ended June 30, 2026. AMETEK's second quarter 2026 sales were a record $2.04 billion, a 15% increase over the second quarter of 2025. On a GAAP basis, second quarter earnings were a record $1.77 per diluted share. Adjusted earnings in the quarter were a record $2.09 per diluted share, up 17% from the second quarter of 2025. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization, financing fees and integration costs of $0.32 per diluted share. GAAP operating income was a record $528.2 million. Adjusted operating income increased 18% to a record $544.4 million and operating margins were 26.6% in the quarter, up 60 basis points from the prior year. Operating cash flow in the quarter was up 35% to $483.7 million and free cash flow to net income conversion was 111%. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website. "AMETEK delivered superb results in the second quarter. Strong organic sales growth, contributions from recent acquisitions, and outstanding operating performance led to high-teens earnings growth, excellent 110 basis points of core margin expansion and record operating performance," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Notably, for the second quarter in a row, orders were exceptional, growing 28% in the quarter." Electronic Instruments Group (EIG) EIG sales in the second quarter were $1.32 billion, an increase of 14% over the same period in 2025. On a GAAP basis, EIG's second quarter operating income was $369.8 million. On an adjusted basis, EIG's operating income was up 12% to $384.7 million. "EIG generated outstanding results in the second quarter with mid-teens sales growth, sizeable orders growth and excellent operating performance," commented Mr. Zapico. "Sales growth in the quarter was balanced between organic growth and contributions from recent acquisitions, with excellent orders growth highlighted by our semiconductor and commercial aerospace markets. Further, EIG's strong operating performance drove core margins up 40 basis points to 30.1%." Electromechanical Group (EMG) EMG sales in the second quarter were a record $723.2 million, up 17% from the second quarter of 2025. In the quarter, EMG's GAAP operating income was $189.3 million. On an adjusted basis, EMG's operating income increased 32% to a record $190.5 million and operating income margins were 26.3%. "EMG delivered exceptional results in the second quarter. Strong organic sales growth resulted in sizeable profit growth and 290 basis points of core margin expansion," noted Mr. Zapico. "Orders growth was also outstanding and broad-based in the quarter with notable strength in medtech, defense and automation markets." Third Quarter and Full Year 2026 Outlook "Our businesses performed exceptionally well in the second quarter highlighting the strength of the AMETEK Growth Model, the quality of our business and the attractiveness of our markets. Our broad-based sales and orders growth reflects our unique position as a mission critical provider of highly differentiated solutions supporting strong secular growth markets including the global infrastructure build-out," added Mr. Zapico. "For 2026, we now expect overall sales to be up approximately 10% versus 2025. Adjusted earnings per diluted share are now expected to be in the range of $8.20 to $8.30, up 10% to 12% over the comparable basis for 2025. This is an increase from our prior guidance range of $7.94 to $8.14 per diluted share reflecting our strong underlying performance and outlook for the balance of the year," he added. "For the third quarter of 2026, overall sales are expected to be up high single digits on a percentage basis compared to the third quarter of 2025. Adjusted earnings in the quarter are anticipated to be in the range of $2.08 to $2.10 per share, up 10% to 11% compared to the third quarter of 2025," concluded Mr. Zapico. Conference Call AMETEK will webcast its second quarter 2026 investor conference call on Tuesday, August 4, 2026, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com. Corporate Profile AMETEK (NYSE: AME) is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales of approximately $8.0 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. Founded in 1930, AMETEK has been listed on the NYSE for over 95 years and is a component of the S&P 500. For more information, visit www.ametek.com. Forward-looking Information Statements in this news release relating to future events, such as AMETEK's expected business and financial performance, are "forward-looking statements." Forward-looking statements are subject to various factors and uncertainties that may cause actual results to differ materially from expectations. These factors and uncertainties include risks related to AMETEK's ability to consummate and successfully integrate future acquisitions; risks with international sales and operations, including supply chain disruptions, tariffs, trade disputes and currency conditions; AMETEK's ability to successfully develop new products, open new facilities or transfer product lines; the price and availability of raw materials; compliance with government regulations, including environmental regulations; changes in the competitive environment or the effects of competition in our markets; the ability to maintain adequate liquidity and financing sources; and general economic conditions affecting the industries we serve. A detailed discussion of these and other factors that may affect our future results is contained in AMETEK's filings with the U.S. Securities and Exchange Commission, including its most recent reports on Forms 10-K, 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements. Contact: Kevin Coleman Vice President, Investor Relations and Treasurer [email protected] Phone: 610.889.5247 AMETEK, Inc. Consolidated Statement of Income (In thousands, except per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 2,044,397 $ 1,778,056 $ 3,972,834 $ 3,510,027 Cost of sales 1,309,356 1,142,167 2,520,234 2,249,138 Selling, general and administrative 206,848 174,263 409,471 344,434 Total operating expenses 1,516,204 1,316,430 2,929,705 2,593,572 Operating income 528,193 461,626 1,043,129 916,455 Interest expense (30,101) (16,857) (51,010) (35,850) Other (expense) income, net (5,720) (2,600) (6,767) (4,214) Income before income taxes 492,372 442,169 985,352 876,391 Provision for income taxes 85,476 83,802 179,099 166,266 Net income $ 406,896 $ 358,367 $ 806,253 $ 710,125 Diluted earnings per share $ 1.77 $ 1.55 $ 3.51 $ 3.07 Basic earnings per share $ 1.78 $ 1.55 $ 3.52 $ 3.08 Weighted average common shares outstanding: Diluted shares 229,855 231,472 229,845 231,507 Basic shares 229,086 230,818 228,994 230,743 Dividends per share $ 0.34 $ 0.31 $ 0.68 $ 0.62 AMETEK, Inc. Information by Business Segment (In thousands) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales: Electronic Instruments $ 1,321,153 $ 1,159,571 $ 2,585,689 $ 2,303,244 Electromechanical 723,244 618,485 1,387,145 1,206,783 Consolidated net sales $ 2,044,397 $ 1,778,056 $ 3,972,834 $ 3,510,027 Operating income: Segment operating income: Electronic Instruments $ 369,722 $ 344,428 $ 743,660 $ 698,478 Electromechanical 189,317 143,888 360,083 272,606 Total segment operating income 559,039 488,316 1,103,743 971,084 Corporate administrative expenses (30,846) (26,690) (60,614) (54,629) Consolidated operating income $ 528,193 $ 461,626 $ 1,043,129 $ 916,455 AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands) June 30, December 31, 2026 2025 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 495,446 $ 457,951 Receivables, net 1,170,497 1,119,257 Inventories, net 1,195,383 1,106,405 Other current assets 365,475 336,229 Total current assets 3,226,801 3,019,842 Property, plant and equipment, net 850,173 855,215 Right of use assets, net 259,308 273,142 Goodwill 7,418,304 7,170,770 Other intangibles, investments and other assets 4,840,127 4,748,574 Total assets $ 16,594,713 $ 16,067,543 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt, net $ 980,633 $ 1,208,975 Accounts payable and accruals 1,677,965 1,633,777 Total current liabilities 2,658,598 2,842,752 Long-term debt, net 1,055,541 1,074,334 Deferred income taxes and other long-term liabilities 1,619,811 1,521,671 Stockholders' equity 11,260,763 10,628,786 Total liabilities and stockholders' equity $ 16,594,713 $ 16,067,543 AMETEK, Inc. Reconciliations of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) Three Months Ended June 30, 2026 2025 EIG Segment operating income (GAAP) $ 369,722 $ 344,428 Acquisition-related costs(1) 14,996 — Adjusted EIG Segment operating income (Non-GAAP) $ 384,718 $ 344,428 EMG Segment operating income (GAAP) $ 189,317 $ 143,888 Acquisition-related costs(1) 1,208 — Adjusted EMG Segment operating income (Non-GAAP) $ 190,525 $ 143,888 Operating income (GAAP) $ 528,193 $ 461,626 Acquisition-related costs(1) 16,204 — Adjusted Operating income (Non-GAAP) $ 544,397 $ 461,626 Interest expense (GAAP) $ 30,101 $ 16,857 Acquisition-related costs(1) (10,006) — Adjusted interest expense (non-GAAP) $ 20,095 $ 16,857 Diluted earnings per share (GAAP) $ 1.77 $ 1.55 Acquisition-related costs(1) 0.11 — Income tax benefit on acquisition-related costs(1) (0.02) — Pretax amortization of acquisition-related intangible assets 0.30 0.31 Income tax benefit on amortization of acquisition-related intangible assets (0.07) (0.08) Rounding — — Adjusted Diluted earnings per share (Non-GAAP) $ 2.09 $ 1.78 Cash provided by operating activities (GAAP) $ 483,693 $ 359,089 Deduct: Capital expenditures (32,012) (29,269) Free cash flow (Non-GAAP) $ 451,681 $ 329,820 Free cash flow conversion (Non-GAAP) 111 % 92 % (1) - Acquisition-related costs comprise integration costs in Cost of Sales and one-time Indicor bridge financing fees in interest expense. AMETEK, Inc. Reconciliations of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) Three Months Ended June 30, 2026 2025 Change EIG Segment operating margin (GAAP) 28.0 % 29.7 % Acquisition-related costs(1) 1.1 % — % Adjusted EIG Segment operating margin (Non-GAAP) 29.1 % 29.7 % Dilutive impact of acquisitions and foreign exchange(2) 1.0 % — % Adjusted EIG Segment core operating margin (Non-GAAP) 30.1 % 29.7 % 0.4 % EMG Segment operating margin (GAAP) 26.2 % 23.3 % Acquisition-related costs(1) 0.1 % — % Adjusted EMG Segment operating margin (Non-GAAP) 26.3 % 23.3 % Dilutive impact of acquisitions and foreign exchange(2) (0.1) % — % Adjusted EMG Segment core operating margin (Non-GAAP) 26.2 % 23.3 % 2.9 % Operating income margin (GAAP) 25.8 % 26.0 % Acquisition-related costs(1) 0.8 % — % Adjusted operating income margin (Non-GAAP) 26.6 % 26.0 % 0.6 % Dilutive impact of acquisitions and foreign exchange(2) 0.5 % — % Adjusted core operating income margin (Non-GAAP) 27.1 % 26.0 % 1.1 % (1) - Acquisition-related costs comprise integration costs in Cost of Sales and one-time Indicor bridge financing fees in interest expense. (2) - Operating income margins adjusted for dilutive impact from acquisitions completed in the last twelve months and the foreign exchange gain or loss. AMETEK, Inc. Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) Forecasted Diluted Earnings Per Share Three Months Ended Year Ended September 30, 2026 December 31,2026 Low High Low High Diluted earnings per share (GAAP) $ 1.85 $ 1.87 $ 7.19 $ 7.29 Pretax amortization of acquisition-related intangible assets 0.31 0.31 1.21 1.21 Income tax benefit on amortization of acquisition-related intangible assets (0.08) (0.08) (0.30) (0.30) Acquisition-related costs(3) — — 0.12 0.12 Income tax benefit on acquisition-related costs(3) — — (0.02) (0.02) Adjusted Diluted earnings per share (Non-GAAP) $ 2.08 $ 2.10 $ 8.20 $ 8.30 (3) - In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events. Acquisition-related costs reflected in the table above are actual June 30, 2026 year-to-date adjustments. Use of Non-GAAP Financial Information The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles ("GAAP") basis with certain non-GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non-GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. The non-GAAP financial measures referenced in this press release include adjusted operating income, adjusted operating margin, and adjusted earnings per share. These measures are adjusted to exclude items that management does not consider indicative of AMETEK's ongoing operational performance, such as after-tax acquisition-related intangible amortization, one-time acquisition-related costs (including transaction related costs, purchase accounting adjustments, and integration related costs). In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events. The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK's operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers. SOURCE AMETEK, Inc.
	Saved 2026-08-04 11:54 1mo ago Published 2026-08-04 06:30 1mo ago	Graphic Packaging snížila výhled zisku na akcii kvůli inflaci Graphic Packaging ve 2. čtvrtletí vykázala tržby 2,188 miliardy USD a čistý zisk 24 milionů USD, ale kvůli vyšší inflaci snížila výhled Adjusted EPS a očekává Adjusted EBITDA 247 milionů USD na spodní hraně cíle. GPK Graphic Packaging Holding Company	FMP Stock News	92
Original source text Net Sales were $2,188 million; Innovation Sales Growth added $40 million. Net Income of $24 million; Adjusted EBITDA of $247 million, strong execution despite elevated inflation. Structural cost actions expected to generate approximately $85 million of in-year savings, partially offsetting full-year 2026 expected inflation of $150 million. On track to achieve full-year 2026 Net Sales at the high end of guidance range, while Adjusted EBITDA is expected at the low end of guidance range due to the heightened inflationary environment; Adjusted EPS range lowered to reflect higher interest expense and Adjusted Cash Flow guidance updated to $600 million to $700 million. , /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today reported second quarter 2026 results. Net Sales in second quarter 2026 were $2,188 million, versus $2,204 million in second quarter 2025. Net Income in second quarter 2026 was $24 million, or $0.08 per diluted share, versus Net Income of $104 million, or $0.34 per diluted share in second quarter 2025. Second quarter 2026 and 2025 Net Income were impacted by a net charge from non-recurring and special items and amortization of purchased intangibles of $17 million and $24 million, respectively. Excluding non-recurring and special items and amortization of purchased intangibles, Adjusted Net Income for the second quarter of 2026 was $41 million, or $0.14 per diluted share, and $128 million, or $0.42 per diluted share in second quarter 2025. "We continued to execute against our near-term strategic priorities and delivered solid second quarter performance, with Adjusted EBITDA at the top of our guidance range despite greater than anticipated inflation," said Robbert Rietbroek, President and Chief Executive Officer. "Our business demonstrated resilience, with both sales and volumes increasing in the first half of 2026 compared with the same period in 2025. We are beginning to realize the benefits of our productivity initiatives, disciplined cost management, and improving operational efficiencies, which helped mitigate higher than expected inflationary pressures in the quarter. As a result, we achieved 50 basis points of sequential Adjusted EBITDA margin expansion in the second quarter relative to the first quarter." "In response to incremental inflation, we implemented additional productivity, cost reduction, and pricing initiatives. The combination of these recent actions and our disciplined execution against strategic priorities positions us to drive continued sequential profitability and margin improvement in the second half of 2026 and provides positive momentum into next year." Financial and Operating Results Net Sales Second quarter 2026 Net Sales decreased 1% to $2,188 million, versus $2,204 million in the same quarter last year. The $16 million decline was driven by a 1% decrease, or $27 million, in price, flat, or $2 million decrease, in volume/mix, partially offset by a $13 million favorable foreign exchange/other impact. Innovation Sales Growth in the second quarter was $40 million. EBITDA Second quarter 2026 EBITDA decreased 26% to $240 million from $323 million in the same quarter last year. Excluding the impact of business combinations and other non-recurring and special items, Adjusted EBITDA was $247 million versus $336 million in the same quarter last year. The $89 million decline in Adjusted EBITDA was driven by the impact of commodity input and operating cost inflation of $60 million, lower price of $27 million, lower volume/mix of $8 million, as well as an unfavorable foreign exchange impact of $3 million, partially offset by positive Net Performance of $9 million. Second quarter Adjusted EBITDA Margin was 11.3% in 2026, and 15.3% in 2025. Other Results Total Debt (Long-Term, Short-Term and Current Portion) was $5,688 million in second quarter 2026 compared to $5,592 million in fourth quarter 2025 and $5,772 million in the first quarter 2026. Net Debt (Total Debt less Cash and Cash Equivalents) was $5,483 million in second quarter 2026 compared to $5,331 million in fourth quarter 2025 and $5,583 million in the first quarter 2026. The Company's second quarter 2026 Net Leverage Ratio was 4.7x compared to 3.8x in fourth quarter 2025. Capital expenditures in second quarter 2026 were $83 million, versus $228 million in the same quarter last year. The Company returned approximately $65 million to stockholders during the first six months of 2026 through regular dividends. 2026 Annual Guidance The Company now expects 2026 Net Sales at the high-end of the range of $8.4 billion to $8.6 billion, Adjusted EBITDA at the low-end of the range of $1.05 billion to $1.25 billion, and Adjusted EPS in the range of $0.65 to $0.90. The Company now expects 2026 Adjusted Cash Flow in the range of $600 million to $700 million, and 2026 capital spending below $450 million. Optimizing Operations Furthering our footprint optimization initiative, we completed the divestiture of our Croatia facility and announced plans to close our facility in Lebanon, Tennessee, to consolidate volumes across fewer facilities. Additionally, we notified employees of our intention to evaluate the potential closure of our site in Winsford, UK. Innovation Sales Growth, Net Performance, and Non-GAAP Reconciliations We define Innovation Sales Growth as incremental sales of a product that delivers a significant change in materials used, package functionality or design to a new or existing customer. We define Net Performance as the impact of cost and productivity initiatives, production efficiencies and/or disruptions and other operating impacts. A tabular reconciliation of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted EPS, Adjusted Net Cash Used in Operating Activities, Adjusted Cash Flow, Net Debt and Net Leverage is attached to this release. Earnings Call The Company will host a conference call at 10:00 a.m. ET today (August 4, 2026) to discuss the results of second quarter 2026. The conference call will be webcast and can be accessed from the Investors website at https://investors.graphicpkg.com. Participants may also listen via telephone by using the following dial-in numbers: Toll-Free: 888-506-0062 International: 973-528-0011 Participant Access Code: 266400 Investors: [email protected] Media: [email protected] Forward Looking Statements Any statements of the Company's expectations in this press release, including but not limited to savings resulting from structural cost actions in 2026, 2026 Net Sales, Adjusted EBITDA and Adjusted Earnings per Diluted Share, Adjusted Cash Flow guidance, and profitability and margin improvement in the second half of 2026 constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, inflation of and volatility in raw material and energy costs, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives, cost reduction plans, as well as the Company's debt level, currency movements and other risks of conducting business internationally, the impact of regulatory and litigation matters, including the continued availability of the Company's U.S. federal income tax attributes to offset U.S. federal income taxes and the timing related to the Company's future U.S. federal income tax payments. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements, except as may be required by law. Additional information regarding these and other risks is contained in the Company's periodic filings with the Securities and Exchange Commission. About Graphic Packaging Holding Company Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials. An industry leader in innovation, the Company is committed to reducing the environmental footprint of consumer packaging. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products. Learn more at www.graphicpkg.com. Graphic Packaging Holding Company Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, In millions, except per share amounts 2026 2025 2026 2025 Net Sales $ 2,188 $ 2,204 $ 4,344 $ 4,324 Cost of Sales 1,896 1,784 3,746 3,459 Selling, General and Administrative 180 204 382 400 Other Expense, Net 11 10 25 26 Business Combinations, Exit Activities and Other Special Items, Net 6 13 77 25 Income from Operations 95 193 114 414 Nonoperating Pension and Postretirement Benefit Expense (1) (1) (1) (1) Interest Expense, Net (68) (53) (132) (104) Income (Loss) before Income Taxes 26 139 (19) 309 Income Tax Expense (2) (35) — (78) Net Income (Loss) $ 24 $ 104 $ (19) $ 231 Net Income (Loss) Per Share - Basic $ 0.08 $ 0.35 $ (0.06) $ 0.77 Net Income (Loss) Per Share - Diluted $ 0.08 $ 0.34 $ (0.06) $ 0.76 Weighted Average Number of Shares Outstanding - Basic 296.6 301.2 296.6 301.7 Weighted Average Number of Shares Outstanding - Diluted 296.7 301.6 296.6 302.4 Graphic Packaging Holding Company Condensed Consolidated Balance Sheets (Unaudited) In millions, except share and per share amounts June 30, 2026 December 31, 2025 Assets Current Assets: Cash and Cash Equivalents $ 205 $ 261 Receivables, Net 888 760 Inventories, Net 1,691 1,766 Assets Held for Sale 8 10 Other Current Assets 220 126 Total Current Assets 3,012 2,923 Property, Plant and Equipment, Net 5,532 5,669 Goodwill 2,048 2,065 Intangible Assets, Net 626 670 Other Assets 442 448 Total Assets $ 11,660 $ 11,775 Liabilities Current Liabilities: Short-Term Debt and Current Portion of Long-Term Debt $ 552 $ 549 Accounts Payable 955 1,027 Liabilities Held for Sale 2 — Other Accrued Liabilities 675 668 Total Current Liabilities 2,184 2,244 Long-Term Debt 5,115 5,022 Deferred Income Tax Liabilities 681 688 Other Noncurrent Liabilities 443 484 Shareholders' Equity Preferred Stock, par value $0.01 per share; 100,000,000 shares authorized; no shares issued or outstanding — — Common Stock, par value $0.01 per share; 1,000,000,000 shares authorized; 296,054,676 and 295,128,049 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively 3 3 Capital in Excess of Par Value 1,994 1,981 Retained Earnings 1,530 1,614 Accumulated Other Comprehensive Loss (291) (262) Total Graphic Packaging Holding Company Shareholders' Equity 3,236 3,336 Noncontrolling Interest 1 1 Total Equity 3,237 3,337 Total Liabilities and Shareholders' Equity $ 11,660 $ 11,775 Graphic Packaging Holding Company Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, In millions 2026 2025 Cash Flows from Operating Activities: Net (Loss) Income $ (19) $ 231 Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 284 261 Amortization of Deferred Debt Issuance Costs 3 3 Deferred Income Taxes (7) 16 Amount of Postretirement Expense Less Than Funding (1) — Share-Based Compensation Expense, Net 18 (1) Asset Impairment Charges 53 — Other, Net (2) (13) Changes in Operating Assets and Liabilities (284) (404) Net Cash Provided by Operating Activities 45 93 Cash Flows from Investing Activities: Capital Spending (223) (541) Acquisition of Businesses — (29) Proceeds from the Sale of Business and Properties, Net of Cash and Cash Equivalents Sold 8 12 Beneficial Interest on Sold Receivables 240 110 Beneficial Interest Obtained in Exchange for Proceeds (164) (54) Other, Net 6 (3) Net Cash Used in Investing Activities (133) (505) Cash Flows from Financing Activities: Repurchase of Common Stock — (110) Retirement of Long-Term Debt (400) — Payments on Debt (9) (6) Proceeds from Issuance of Debt 544 99 Borrowings under Revolving Credit Facilities 1,829 2,077 Payments on Revolving Credit Facilities (1,847) (1,599) Repurchase of Common Stock related to Share-Based Payments (4) (32) Debt Issuance Costs (4) (1) Dividends Paid (65) (63) Other, Net (12) (3) Net Cash Provided by Financing Activities 32 362 Decrease in Cash and Cash Equivalents (56) (50) Effect of Exchange Rate Changes on Cash — 13 Net Decrease in Cash and Cash Equivalents (56) (37) Cash and Cash Equivalents at Beginning of Period 261 157 Cash and Cash Equivalents at End of Period $ 205 $ 120 Graphic Packaging Holding Company Reconciliation of Non-GAAP Financial Measures The tables below set forth the calculation of the Company's earnings before interest expense, income tax expense, depreciation and amortization, including pension amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, Net Leverage Ratio, and Total Net Debt. Adjusted EBITDA and Adjusted Net Income exclude charges associated with: the Company's business combinations, facility shutdowns, certain extended mill outages, sales of assets, non-recurring and other special items. The Company's management believes that the presentation of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio provides useful information to investors because these measures are regularly used by management in assessing the Company's performance. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio are financial measures not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), and are not measures of net income, operating income, operating performance, liquidity or net sales presented in accordance with GAAP. The Company's guidance for 2026 Adjusted EBITDA, Adjusted Earnings per Share, and Adjusted Cash Flow are non-GAAP financial measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures (Net Income, Net Income per Share, and Net Cash Provided by Operating Activities, respectively) because the information necessary to prepare such a reconciliation is not available without unreasonable efforts. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as we do. Three Months Ended June 30, Six Months Ended June 30, In millions, except per share amounts 2026 2025 2026 2025 Net Income (Loss) $ 24 $ 104 $ (19) $ 231 Add (Subtract): Income Tax Expense 2 35 — 78 Interest Expense, Net 68 53 132 104 Depreciation and Amortization 146 131 286 263 EBITDA 240 323 399 676 Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a) 6 13 77 25 Other Non-Recurring Items(a) 1 — 3 — Adjusted EBITDA $ 247 $ 336 $ 479 $ 701 Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales) 11.3 % 15.3 % 11.0 % 16.2 % Net Income (Loss) $ 24 $ 104 $ (19) $ 231 Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a) 6 13 77 25 Other Non-Recurring Items(a) 1 — 3 — Accelerated Depreciation Related to Exit Activities — 4 — 8 Amortization Related to Purchased Intangible Assets 15 15 31 34 Tax Impact of Adjustments (5) (8) (23) (16) Adjusted Net Income $ 41 $ 128 $ 69 $ 282 Adjusted Earnings Per Share - Basic $ 0.14 $ 0.42 $ 0.23 $ 0.93 Adjusted Earnings Per Share - Diluted $ 0.14 $ 0.42 $ 0.23 $ 0.93 (a) Represents items management believes are not indicative of ongoing operating performance. Graphic Packaging Holding Company Reconciliation of Non-GAAP Financial Measures (Continued) Twelve Months Ended In millions June 30, 2026 June 30, 2025 December 31, 2025 Net Income $ 194 $ 534 $ 444 Add (Subtract): Income Tax Expense 61 180 139 Equity Income of Unconsolidated Entity (1) (1) (1) Interest Expense, Net 248 215 220 Depreciation and Amortization 563 541 540 EBITDA $ 1,065 $ 1,469 $ 1,342 Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a) 93 69 41 Other Non-Recurring Items(a) 15 — 12 Adjusted EBITDA $ 1,173 $ 1,538 $ 1,395 Calculation of Net Debt: June 30, 2026 June 30, 2025 December 31, 2025 Short-Term Debt and Current Portion of Long-Term Debt $ 552 $ 443 $ 549 Long-Term Debt (b) 5,136 5,416 5,043 Less: Cash and Cash Equivalents (205) (120) (261) Net Debt $ 5,483 $ 5,739 $ 5,331 Net Leverage Ratio (Net Debt/Adjusted EBITDA) 4.7 3.7 3.8 (a) Represents items management believes are not indicative of ongoing operating performance. (b) Excludes unamortized deferred debt issue costs. Six Months Ended June 30, In millions 2026 2025 Net Cash Provided by Operating Activities $ 45 $ 93 Net Cash Receipts from Receivables Sold included in Investing Activities 76 56 Cash Payments Associated with Business Combinations, Exit Activities and Other Special Items, Net and Other Non-Recurring Items 57 33 Adjusted Net Cash Provided by Operating Activities $ 178 $ 182 Capital Spending (223) (541) Adjusted Cash Flow $ (45) $ (359) SOURCE Graphic Packaging Holding Company
	Saved 2026-08-04 11:51 1mo ago Published 2026-08-04 07:00 1mo ago	Beam Therapeutics podala první dávku v BEAM-302 Beam Therapeutics oznámila podání první dávky pacientovi v globální pivotní kohortě probíhající studie BEAM-302 pro AATD. Firma zároveň uvedla, že má 1,2 miliardy USD v hotovosti a cenných papírech. BEAM Beam Therapeutics	FMP Stock News	92
Original source text August 04, 2026 07:00 ET \| Source: Beam Therapeutics Updated BEAM-302 Phase 1/2 Clinical Data Selected for Late-Breaking Oral Presentation at the European Respiratory Society (ERS) Congress 2026 Dosing Complete for All Adult and Adolescent Patients in Phase 1/2 BEACON Trial of Risto-cel in Sickle Cell Disease; U.S. Biologics License Application (BLA) Submission Expected as Early as Year-End 2026 Clinical Trial Start-up Activities Underway Following U.S. FDA Clearance of Investigational New Drug (IND) Application for BEAM-304 in Phenylketonuria (PKU) Ended Second Quarter 2026 with $1.2 Billion in Cash, Cash Equivalents and Marketable Securities; Cash Runway Expected to Support Operating Plans into mid-2029 CAMBRIDGE, Mass., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Beam Therapeutics Inc. (Nasdaq: BEAM), a biotechnology company developing precision genetic medicines through base editing, today reported second quarter 2026 financial results and provided updates across the company’s hematology and genetic disease franchises. “The second quarter marked another period of rapid progress and disciplined execution on the clinical, regulatory and operational milestones we set for Beam,” said John Evans, chief executive officer of Beam Therapeutics. “Importantly, this progress enabled dosing of the first patient in the global pivotal cohort evaluating BEAM-302, the most advanced genetic medicine in development for AATD, which has the potential to fundamentally change the treatment paradigm for patients. In addition, we completed dosing for all adult and adolescent SCD patients in the BEACON trial of risto-cel and received FDA clearance of the IND for BEAM-304 in PKU, paving the way to the clinic for this next potentially high-value franchise. Looking ahead, we believe Beam is positioned to achieve several important milestones, including updated clinical data for BEAM-302 at the ERS Congress, rapid enrollment in the BEAM-302 pivotal cohort, first-in-human data for BEAM-301 in GSDIa, and the expected BLA submission for risto-cel. With the continued expansion and advancement of our base editing pipeline, we have the potential to deliver transformative therapies for many patients with serious genetic diseases.” Second Quarter 2026 and Recent Progress and Anticipated Milestones Liver-targeted Genetic Disease Franchise BEAM-302: Beam’s lead genetic disease program is designed to be a best-in-class and first-in-class liver-targeting therapy for alpha-1 antitrypsin deficiency (AATD) that directly corrects the root cause of the disease and therefore has the potential to address both liver and lung manifestations of AATD. In July, Beam dosed the first patient in the global pivotal cohort of the ongoing Phase 1/2 trial evaluating BEAM-302 in patients with AATD-associated lung disease, with or without liver disease. The cohort is designed to support a potential accelerated approval path in the United States.Detailed and updated clinical data for BEAM-302 were selected for a late-breaking oral presentation at the European Respiratory Society (ERS) Congress, taking place September 5-9, 2026, in Barcelona, Spain. BEAM-304: BEAM-304 is designed to leverage Beam’s proprietary and clinically validated base editing technology and lipid nanoparticle (LNP) delivery capabilities to directly and durably correct mutations in the phenylalanine hydroxylase (PAH) gene that cause phenylketonuria (PKU). Beam aims to advance BEAM-304 using an innovative platform approach with the goal of creating mutation-specific base editors for the majority of patients with PKU. In June, Beam announced that the U.S. Food and Drug Administration (FDA) cleared the investigational new drug (IND) application for BEAM-304.Beam has initiated clinical start-up activities for the planned Phase 1/2 trial for BEAM-304. The trial will initially evaluate safety, tolerability, and reduction of blood Phe levels in PKU patients with the R408W mutation, one of the most prevalent disease-causing mutations among patients with PKU in the U.S., with a goal of establishing clinical proof of concept for base editing in PKU. The trial will subsequently evaluate base editors for additional mutations within a single clinical program.In July, updated preclinical data for BEAM-304 were presented at the Federation of American Societies for Experimental Biology (FASEB) Genome Engineering: Research and Applications Conference. The presentation is available on the Presentation and Publications page of Beam’s website beamtx.com. BEAM-301: BEAM-301 aims to correct one of the most common disease-causing mutations, R83C, in patients with glycogen storage disease type Ia (GSDIa). BEAM-301 is currently being evaluated in an open-label Phase 1/2 dose-exploration trial in patients with GSDIa.Beam expects to report initial clinical data in 2026. Hematology Franchise Risto-cel: Ristoglogene autogetemcel (risto-cel, formerly known as BEAM-101) is an investigational autologous cell therapy with a potential best-in-class profile for the treatment of sickle cell disease (SCD). Dosing is complete in all adult and adolescent patients enrolled in the Phase 1/2 BEACON trial.Beam expects to report updated data for the BEACON trial by year-end 2026 and submit a biologics license application (BLA) for risto-cel as early as year-end 2026. Next-generation Programs in Sickle Cell Disease and Hematology: Beam completed enrollment and dosing in the Phase 1 healthy volunteer clinical trial of BEAM-103, an anti-CD117 monoclonal antibody with the potential to enable non-genotoxic ex vivo and in vivo therapies for SCD. Treatment with BEAM-103 was well tolerated across all doses tested.Beam continues to make significant investments in developing targeted LNPs to deliver gene editing to hematopoietic stem cells (HSCs). Targeted LNPs for HSC delivery have been identified and are in lead optimization. Second Quarter 2026 Financial Results Cash Position: Cash, cash equivalents and marketable securities were $1.2 billion as of June 30, 2026, compared to $1.2 billion as of December 31, 2025.Research & Development (R&D) Expenses: R&D expenses were $95.1 million for the second quarter of 2026, compared to $101.8 million for the second quarter of 2025.General & Administrative (G&A) Expenses: G&A expenses were $31.9 million for the second quarter of 2026, compared to $26.9 million for the second quarter of 2025.Net Income (Loss): Net loss was $122.7 million, or $1.18 per share, for the second quarter of 2026, compared to net loss of $102.1 million, or $1.00 per share, for the second quarter of 2025. Cash Runway Beam expects that its cash, cash equivalents and marketable securities as of June 30, 2026, together with an additional $200 million expected to be drawn from the company’s facility with Sixth Street, will fund anticipated operating expenses and capital expenditure requirements into mid-2029, funding the company through the anticipated launch of risto-cel in SCD, execution of the BEAM-302 pivotal development plan in AATD, and clinical proof of concept for BEAM-304 in PKU. About Beam Therapeutics Beam Therapeutics (Nasdaq: BEAM) is a biotechnology company committed to establishing the leading, fully integrated platform for precision genetic medicines. To achieve this vision, Beam has assembled a platform with integrated gene editing, delivery and internal manufacturing capabilities. Beam’s suite of gene editing technologies is anchored by base editing, a proprietary technology that is designed to enable precise, predictable and efficient single base changes, at targeted genomic sequences, without making double-stranded breaks in the DNA. This has the potential to enable a wide range of therapeutic editing strategies that Beam is using to advance a diversified portfolio of base editing programs. Beam is a values-driven organization committed to its people, cutting-edge science, and a vision of providing lifelong cures to patients suffering from serious diseases. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned not to place undue reliance on these forward-looking statements, including, but not limited to, statements related to: the therapeutic applications and potential of our technology, including with respect to SCD, AATD, PKU and GSDIa; our plans, and anticipated timing, to advance our programs and present data from ongoing clinical trials; the clinical trial designs and expectations for risto-cel, BEAM-103, BEAM-301, BEAM-302 and BEAM-304; our planned submission of a BLA for risto-cel; our expectations regarding the anticipated launch of risto-cel; the potential for an accelerated approval path for BEAM-302; our expected presentations at upcoming medical conferences, including at the ERS Congress; our anticipated regulatory interactions and filings; our expectations regarding the funds that will be available to draw under our credit facility; the sufficiency of our capital resources to fund operating expenses and capital expenditure requirements and the period in which such resources are expected to be available; and our ability to develop lifelong, curative, precision genetic medicines for patients through base editing. Each forward-looking statement is subject to important risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement, including, without limitation, risks and uncertainties related to: our ability to develop, obtain regulatory approval for, and commercialize our product candidates, which may take longer or cost more than planned; our ability to raise additional funding, which may not be available; our ability to obtain, maintain and enforce patent and other intellectual property protection for our product candidates; the uncertainty that our product candidates will receive regulatory approval necessary to initiate or continue human clinical trials; that preclinical testing of our product candidates and preliminary or interim data from preclinical studies and clinical trials may not be predictive of the results or success of ongoing or later clinical trials; that initiation and enrollment of, and anticipated timing to advance, our clinical trials may take longer than expected; that our product candidates, including the delivery modalities we rely on to administer them, may cause serious adverse events; that we may not achieve the funding milestones under our credit facility; that our product candidates may experience manufacturing or supply interruptions or failures; risks related to competitive products; and the other risks and uncertainties identified under the headings “Risk Factors Summary” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. Contacts: Investors: Holly Manning Beam Therapeutics [email protected] Media: Josie Butler 1AB [email protected] Condensed Consolidated Balance Sheet Data (unaudited)(in thousands) June 30, 2026 December 31, 2025Cash, cash equivalents, and marketable securities$1,152,927 $1,245,210 Total assets 1,386,355 1,481,177 Total liabilities 318,913 242,819 Total stockholders’ equity 1,067,442 1,238,358 Condensed Consolidated Statement of Operations (unaudited)(in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025License and collaboration revenue$490 $8,466 $32,228 $15,936 Operating expenses: Research and development 95,096 101,758 199,620 200,574 General and administrative 31,947 26,859 66,376 54,799 Total operating expenses 127,043 128,617 265,996 255,373 Loss from operations (126,553) (120,151) (233,768) (239,437)Other income (expense): Change in fair value of derivative liabilities (4,200) 1,300 (1,700) 4,500 Change in fair value of non-controlling equity investments 338 4,415 354 2,334 Change in fair value of contingent consideration liabilities (205) (28) 309 (55)Gain on sale of equity method investment 455 — 455 — Interest and other income (expense), net 7,487 12,326 17,354 22,190 Total other income (expense) 3,875 18,013 16,772 28,969 Net loss$(122,678) $(102,138) $(216,996) $(210,468)Unrealized gain (loss) on marketable securities (1,119) (150) (3,300) (669)Comprehensive loss$(123,797) $(102,288) $(220,296) $(211,137)Net loss per common share, basic and diluted$(1.18) $(1.00) $(2.09) $(2.21)Weighted-average common shares outstanding, basic and diluted 104,325,436 101,995,184 103,797,276 95,023,977
	Saved 2026-08-04 11:50 1mo ago Published 2026-08-04 07:15 1mo ago	Equinix po výsledcích zůstává býčím příběhem Equinix po výsledcích za 2. čtvrtletí zůstává podle článku býčím příběhem. Pomáhá mu růst tržeb a FFO, silné krytí dividendy a rating investičního stupně od Fitch. EQIX Equinix	FMP Stock News	72
Original source text HomeDividends AnalysisREITs AnalysisReal Estate Analysis SummaryData center REIT Equinix gets prior buy rating reaffirmed after Q2 results in late July.Positives include an investment-grade rating from Fitch, strong dividend coverage, revenue and FFO growth, and global scale with few real competitors.Some downside is seen from a market pullback in EQIX stock and a low upside forecast in the near term, along with a rich valuation.This niche is dependent on high power and cooling needs, putting into question the durability of grids globally. Getty Images A Prominent Data Center REIT Who Beat Q2 Earnings Estimates Recently Ahhh... the perfect combination of two sectors I've followed for many years, tech and real estate, and what better example of this than a mega data center REIT like 1.91K Followers Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Author does not hold any long positions in the Equinix stock directly, but does hold shares in REIT mutual funds who invest in a diversified portfolio that may include data center REITS, along with others. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
	Saved 2026-08-04 11:49 1mo ago Published 2026-08-04 07:00 1mo ago	Certara zvýšila tržby a potvrdila celoroční výhled Certara ve 2. čtvrtletí zvýšila tržby na 93,3 milionu USD a potvrdila celoroční výhled růstu tržeb o 0 % až 4 %. Společnost také dokončila zpětný odkup akcií za 100 milionů USD a schválila dalších 50 milionů USD. CERT Certara	FMP Stock News	92
Original source text Appoints Julien Perrier Chief Commercial Officer Completes previously authorized $100 million share repurchase program; Board authorizes additional $50 million under repurchase program Reaffirms 2026 revenue guidance RADNOR, Pa., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its second quarter 2026 financial results. Second Quarter Highlights from Continuing Operations: Financial results of the Regulatory and Medical Writing business are reported as discontinued operations. The discussion in this earnings release presents the results of continuing operations and excludes amounts related to discontinued operations for all periods presented, unless otherwise noted. Revenue was $93.3 million, compared to $92.4 million in the second quarter of 2025, representing growth of 1%. Software revenue was $48.8 million, compared to $46.7 million in the second quarter of 2025, representing growth of 4%.Services revenue was $44.5 million, compared to $45.7 million in the second quarter of 2025, representing a decrease of 3%. Net loss was $6.1 million, compared to a net income of $1.5 million in the second quarter of 2025. The change primarily reflects the absence of a $5.7 million favorable contingent consideration adjustment recorded in the prior-year period, a $2.9 million unfavorable swing in currency expense, and a $2.2 million increase in reorganization costs, partially offset by lower income tax expense. Adjusted EBITDA was $26.2 million, compared to $27.0 million in the second quarter of 2025, representing a decrease of 3%. “This second quarter was about continuing to execute on our commitments. Overall, we are pleased with our ongoing progress transforming Certara into a company we believe can deliver sustainable double-digit growth,” said Jon Resnick, Chief Executive Officer. “We completed the divestiture of our Regulatory and Medical Writing business, implemented our two new business units, and taken necessary actions to strengthen our leadership team and our commercial model. Our focus in the second half of the year is customer impact and speed of execution.” “Our second quarter results were in line with our expectations, and we remain focused on executing against our full-year plan,” said Faiz Mohammed, Interim Chief Financial Officer. “We continue to expect full-year revenue growth of 0% to 4% on a comparable continuing operations basis, supported by continued strength in software and improving services performance as we move through the second half of the year.” Second Quarter 2026 and Recent Corporate Updates In May, Certara closed the divestiture of its global medical writing and related regulatory services business (“the Regulatory and Medical Writing business”) and announced the reorganization of its company around two business units, Model Informed Discovery and Drug Development (MID3) and Accelerated Clinical Evidence (ACE).In parallel with the reorganization, during the second quarter, Certara executed a reduction in force, focusing predominantly on overhead, impacting approximately 5% of its global employee base. This action, combined with other steps towards operational excellence, is expected to result in a run-rate savings of approximately $13 million. These reductions allow the Company to accelerate innovation and growth and streamline the Company’s cost base, including stranded costs from the divestiture. Certara has appointed Julien Perrier Chief Commercial Officer, effective August 1, 2026. Mr. Perrier brings nearly two decades of international commercial leadership in the life sciences. Most recently, he served as Chief Executive Officer of Ziwig, where he led the commercial development of the AI-powered diagnostic EndoTest. Prior to Ziwig, Mr. Perrier served as a Vice President at IQVIA, Head of the Immunology division, France at AbbVie, and Head of Office Specialty Care Division at Sanofi. As part of Certara’s move to align sales and marketing under a unified commercial leadership model in support of the business units, Mr. Perrier will focus on deepening customer engagement, sharpening go-to-market execution, and ensuring Certara’s products and services deliver clear, demonstrable value to customers worldwide.Certara has appointed Eric Jahn as Chief Information Officer. Mr. Jahn previously served as Senior Vice President, IT. He joined Certara in 2022 and has helped scale the business globally by partnering with all functions as a strategic business partner. Prior to Certara, Mr. Jahn served as Vice President, IT Infrastructure at TIBCO Software and spent seven years at Rocket Software in various IT leadership roles. Second Quarter 2026 Results from Continuing Operations Financial results of the Regulatory and Medical Writing business are reported as discontinued operations. The discussion in this earnings release presents the results of continuing operations and excludes amounts related to discontinued operations for all periods presented, unless otherwise noted. Refer to Note 4 "Divestiture and Discontinued Operation" in our Form 10-Q for the quarter ended June 30, 2026 for further details. Total revenue for the second quarter of 2026 was $93.3 million, representing year-over-year growth of 1% on a reported basis. Software revenue for the second quarter of 2026 was $48.8 million, representing year-over-year growth of 4% on a reported basis. Services revenue for the second quarter of 2026 was $44.5 million, representing a year-over-year decrease of 3% on a reported basis. Total Bookings for the second quarter of 2026 were $98.3 million, representing a year-over-year increase of 1%. Software Bookings for the second quarter of 2026 were $50.7 million, representing a year-over-year increase of 9%. Services Bookings for the second quarter of 2026 were $47.6 million, representing a year-over-year decrease of 6%. Total cost of revenues for the second quarter of 2026 was $35.1 million, an increase of $0.8 million from $34.3 million in the second quarter of 2025. The increase in cost of revenues was primarily due to a $1.0 million increase in employee-related costs and a $0.9 million increase in professional and consulting expenses, partially offset by a decrease in equity-based compensation expense and other miscellaneous expenses. Total operating expenses for the second quarter of 2026 were $58.3 million, which increased by $7.9 million from $50.4 million in the second quarter of 2025. Higher operating expenses were primarily attributable to a $5.7 million increase related to the remeasurement of the fair value of business acquisition contingent consideration, primarily due to the absence of a non-recurring favorable change recognized in the prior year that reduced expenses in that period, a $1.1 million increase in professional and consulting expenses, a $1.0 million increase in employee-related costs, a $0.8 million increase in depreciation expense, and a $0.6 million increase in executive recruiting expenses, partially offset by a decrease in equity-based compensation expense. Net loss for the second quarter of 2026 was $6.1 million, compared to net income of $1.5 million in the second quarter of 2025. The $7.6 million increase in loss was primarily driven by higher operating expenses, including a $5.7 million increase related to the remeasurement of the fair value of acquisition-related contingent consideration, $1.1 million aggregate increase in executive recruiting and lease abandonment charges, increased total other expenses, and a higher cost of revenue, partially offset by lower tax expense and higher revenue. Diluted loss per share for the second quarter of 2026 was $(0.04), as compared to diluted earnings per share of $0.01 for the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 was $26.2 million compared to $27.0 million for the second quarter of 2025, a decrease of $0.8 million. See note (1) in the section titled “A Note on Non-GAAP Financial Measures” below for more information on adjusted EBITDA. Adjusted net income for the second quarter of 2026 was $12.5 million compared to $12.7 million for the second quarter of 2025, a decrease of $0.2 million. Adjusted diluted earnings per share for the second quarter of 2026 was $0.08, compared to $0.08 for the second quarter of 2025. See note (2) in the section titled “A Note on Non-GAAP Financial Measures” below for more information on adjusted net income and adjusted diluted earnings per share. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2026 2025 2026 2025 Key Financials(in millions, except per share data) Revenue$93.3 $92.4 $187.4 $184.5 Software revenue$48.8 $46.7 $98.5 $93.1 Service revenue$44.5 $45.7 $88.8 $91.4 Total bookings$98.3 $97.4 $195.5 $195.7 Software bookings$50.7 $46.6 $99.4 $87.3 Services bookings$47.6 $50.8 $96.1 $108.4 Net income (loss)$(6.1) $1.5 $(17.9) $3.0 Diluted earnings (loss) per share$(0.04) $0.01 $(0.11) $0.02 Adjusted EBITDA$26.2 $27.0 $52.9 $55.4 Adjusted net income$12.5 $12.7 $21.6 $29.5 Adjusted diluted earnings per share$0.08 $0.08 $0.14 $0.18 Cash and cash equivalents $184.1 $162.3 2026 Financial Outlook Certara is reaffirming its revenue growth and updating its adjusted EBITDA margin, adjusted diluted earnings per share, and fully diluted share guidance for the full year 2026, to reflect the divestiture of the Regulatory and Medical Writing business and Continuing Operations reporting: Revenue growth for Continuing Operations, excluding the Regulatory and Medical Writing business, is expected to be 0% to 4%, or revenue of $367 million to $382 million. Full year 2026 adjusted EBITDA margin for Continuing Operations, excluding the Regulatory and Medical writing business, is expected to be approximately 29% to 31%. Full year adjusted diluted earnings per share for Continuing Operations, excluding the Regulatory and Medical Writing business is expected to be in the range of $0.31 to $0.36. Fully diluted shares are expected to be in the range of 155 million to 157 million. Financial results of the Regulatory and Medical Writing business will be reported as discontinued operations for 2026. Through the transaction closing on May 8, 2026, the year-to-date discontinued operations Revenue was $19.2 million. In the second quarter, the Company repurchased $17.4 million in shares, which completed a $100 million share repurchase program under terms previously authorized by the Board. In the third quarter, the Board approved an additional $50 million under the share repurchase program, reflecting the Company’s continued confidence in the business and its disciplined approach to capital allocation. The program does not have an express expiration date, and all repurchase plans must be brought in advance to the Board. Please note that the Company has not reconciled adjusted EBITDA, adjusted EBITDA margin or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. The Company expects the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. Webcast and Conference Call Details Certara will host a conference call today, August 4, 2026, at 8:30 a.m. ET to discuss its second quarter 2026 financial results. Investors interested in listening to the conference call are required to register online in advance of the call. A live and archived webcast of the event will be available on the “Investors” section of the Certara website at https://ir.certara.com. About Certara Certara accelerates medicines using biosimulation software, technology and services to transform traditional drug discovery and development. Its clients include more than 2,600 biopharmaceutical companies, academic institutions, and regulatory agencies across 70 countries. Please visit our website at www.certara.com. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.certara.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts. Forward-Looking Statements This press release contains certain statements that constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, with respect to the Company’s full-year guidance. These statements typically contain words such as “believe,” “may,” “potential,” “will,” “plan,” “could,” “estimate,” “expects” and “anticipates” or the negative of these words or other similar terms or expressions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement and involves significant risks and uncertainties. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot provide any assurance that these expectations will prove to be correct. You should not rely upon forward-looking statements as predictions of future events and actual results, events, or circumstances. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including our ability to realize the expected benefits of the divestiture of our regulatory and medical writing business; any deceleration in, or resistance to, the acceptance of model-informed biopharmaceutical discovery and development; our ability to compete within our market; changes or delays in government regulation relating to the biopharmaceutical industry; trends in research and development spending; operational disruptions, funding constraints and policy changes at the Food and Drug Administration and other government agencies; consolidation within the biopharmaceutical industry; our ability to increase successfully our customer base, expand relationships and the products and services we provide and enter new markets; our ability to retain key personnel or recruit additional qualified personnel; risks related to the mischaracterization of our independent contractors; any delays or defects in our release of new or enhanced software or other biosimulation tools; issues relating to implementation, use and development of artificial intelligence and machine learning in our products and services; failure of our existing customers to renew their software licenses or any delays or terminations of contracts or reductions in scope of work by our existing customers; risks related to our contracts with government customers and receipt of government grants; risks related to any future acquisitions and other strategic transactions; the accuracy of our addressable market estimates; our ability to operate successfully a global business and adverse global economic conditions; our ability to comply with applicable trade compliance and economic sanctions laws and regulations; the impact of litigation; the sufficiency of our insurance coverage; our ability to perform our services in accordance with contractual requirements, regulatory standards and ethical considerations; the loss of more than one of our major customers; our ability to raise capital or generate sufficient cash flows; the ability or inability of our bookings to accurately predict our future revenue and our ability to realize the anticipated revenue reflected in our bookings; our ability to comply with anti-corruption laws; risks related to catastrophic events; the application of evolving corporate governance and public disclosure requirements; disruptions in the operations of the third-party providers who host our software solutions or any limitations on their capacity or interference with our use; any unauthorized access to or use of customer or other proprietary or confidential data or other breach of our cybersecurity measures, compliance with privacy and cybersecurity laws and related contractual requirements; our ability to reliably meet our data storage and management requirements, or the experience of any failures or interruptions in the delivery of our services over the internet; our ability to comply with the terms of any licenses governing our use of third-party open source software; our ability to adequately enforce or defend our ownership and use of our intellectual property and other proprietary rights; any allegations that we are infringing, misappropriating or otherwise violating a third party’s intellectual property rights; our ability to comply with healthcare laws; risks related to our indebtedness; any additional impairment of goodwill or other intangible assets; our ability to use net operating losses; the volatility of the market price of our common stock; future sales of our common stock by existing stockholders; the substantial holdings of our largest stockholder; and the other factors detailed under the captions “Risk Factors” and “Special Note Regarding Forward-Looking Statements” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, and reports, including the Form 10-K filed by the Company with the Securities and Exchange Commission on February 26, 2026, and subsequent reports filed with the SEC. Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, we expressly disclaim any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. A Note on Non-GAAP Financial Measures This press release contains “non-GAAP measures” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Specifically, the Company makes use of the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share which are not recognized terms under GAAP. These measures should not be considered as alternatives to net income (loss), net income (loss) margin, or GAAP diluted earnings per share or revenue as measures of financial performance or any other performance measure derived in accordance with GAAP and should not be considered a measure of discretionary cash available to the Company to invest in the growth of its business. The presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the Company’s results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. You should refer to the footnotes below as well as the “Reconciliation of Non-GAAP Financial Measures” section in this press release below for a further explanation of these measures and reconciliations of these non-GAAP measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods. Management uses various financial metrics, including total revenues, income (loss) from operations, net income (loss), and certain non-GAAP measures, such as adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share, to make budgeting decisions, to make certain compensation decisions, and to compare the Company’s performance against that of other peer companies using similar measures. In addition, management believes these metrics provide useful measures for period-to-period comparisons of the Company’s business, as they remove the effect of certain non-cash expenses and other items not indicative of its ongoing operating performance. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical periods. In addition, these non-GAAP measures are frequently used by analysts, investors, and other interested parties to evaluate and assess performance. (1) Adjusted EBITDA represents net income (loss) excluding interest expense, provision for (benefit from) for income taxes, depreciation and amortization expense, intangible asset amortization, equity-based compensation expense, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense and other items not indicative of our ongoing operating performance. Adjusted EBITDA margin represents adjusted EBITDA divided by revenue. (2) Adjusted net income and adjusted diluted earnings per share exclude the effect of equity-based compensation expense, amortization of acquisition-related intangible assets, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as income tax provision adjustment for such charges. In evaluating adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted diluted earnings per share, you should be aware that in the future the Company may incur expenses similar to those eliminated in this presentation and this presentation should not be construed as an inference that future results will be unaffected by unusual items. Investor Relations and Media Contact: Jeff Warren and Jay Liu [email protected] CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,(IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) 2026 2025 2026 2025 Total revenue$93,271 $92,356 $187,363 $184,455 Cost of revenues 35,122 34,285 69,794 69,005 Operating expenses: Sales and marketing 14,978 13,658 27,928 26,044 Research and development 9,705 8,972 21,991 19,494 General and administrative 21,933 16,700 50,875 35,985 Depreciation and amortization 11,729 11,070 23,235 21,961 Total operating expenses 58,345 50,400 124,029 103,484 Income (loss) from operations (196) 7,671 (6,460) 11,966 Other income (expenses): Interest expense (4,987) (4,802) (9,928) (9,608)Net other income (expenses) (1,205) 1,501 96 3,226 Total other expenses (6,192) (3,301) (9,832) (6,382)Income (loss) before income taxes (6,388) 4,370 (16,292) 5,584 Provision (benefits) for income taxes on continuing operations (307) 2,874 1,614 2,583 income (loss) from continuing operations, net of tax (6,081) 1,496 (17,906) 3,001 Loss from discontinued operations, net of tax (49,189) (3,464) (46,127) (226)Net income (loss) attributable to common stockholders$(55,270) $(1,968) $(64,033) $2,775 Net income (loss) per share attributable to common stockholders: Basic - Earnings (loss) per common share from continuing operations$(0.04) $0.01 $(0.11) $0.02 Basic - Earnings (loss) per common share from discontinued operations$(0.32) $(0.02) $(0.30) $— Basic - Earnings (loss) per common share$(0.36) $(0.01) $(0.41) $0.02 Diluted - Earnings (loss) per common share from continuing operations$(0.04) $0.01 $(0.11) $0.02 Diluted - Earnings (loss) per common share from discontinued operations$(0.32) $(0.02) $(0.30) $— Diluted - Earnings (loss) per common share$(0.36) $(0.01) $(0.41) $0.02 Weighted average common shares outstanding: Basic 154,356,779 160,916,057 156,046,326 160,955,936 Diluted 154,356,779 161,849,002 156,046,326 161,601,024 CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) JUNE 30, 2026 DECEMBER 31, 2025Assets Current assets: Cash and cash equivalents $184,138 $189,392 Accounts receivable, net of allowances for credit losses of $1,940 and $2,235 100,759 101,574 Prepaid expenses and other current assets 27,289 21,887 Current assets of discontinued operations — 2,266 Total current assets 312,186 315,119 Other assets: Property and equipment, net 1,673 1,805 Operating lease right-of-use assets 8,952 11,840 Goodwill 718,125 745,056 Intangible assets, net of accumulated amortization of $345,829 and $415,804 345,207 361,835 Deferred income taxes 11,115 3,856 Other long-term assets 2,540 1,509 Other assets of discontinued operations — 115,562 Total assets $1,399,798 $1,556,582 Liabilities and stockholders' equity Current liabilities: Accounts payable $2,723 $3,040 Accrued expenses 36,211 59,658 Current portion of deferred revenue 77,341 75,398 Current portion of long-term debt 2,963 2,963 Other current liabilities 3,161 4,365 Current liabilities of discontinued operations — 7,961 Total current liabilities 122,399 153,385 Long-term liabilities: Deferred revenue, net of current portion 2,704 2,350 Deferred income taxes 8,947 34,366 Operating lease liabilities, net of current portion 6,945 8,438 Long-term debt, net of current portion and debt discount 288,876 290,131 Other long-term liabilities 3,412 5,117 Total liabilities 433,283 493,787 Commitments and contingencies Stockholders' equity Preferred shares, $0.01 par value, 50,000,000 shares authorized; no shares issued, and outstanding as of June 30, 2026 and December 31, 2025, respectively — — Common shares, $0.01 par value, 600,000,000 shares authorized, 166,959,761 and 164,005,450 shares issued as of June 30, 2026 and December 31, 2025; 152,499,023 and 159,139,562 shares outstanding as of June 30,2026 and December 31, 2025, respectively 1,671 1,641 Additional paid-in capital 1,277,660 1,255,653 Accumulated deficit (193,909) (129,876)Accumulated other comprehensive income 9,057 2,040 Treasury stock at cost, 14,460,738 and 4,865,888 shares at June 30, 2026 and December 31, 2025, respectively (127,964) (66,663)Total stockholders' equity 966,515 1,062,795 Total liabilities and stockholders' equity $1,399,798 $1,556,582 CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED JUNE 30,(IN THOUSANDS) 2026 2025 Cash flows from operating activities: Net income (loss) from continuing operations $(17,906) $3,001 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 32,342 31,271 Amortization of debt issuance costs 270 289 Provision for credit losses (22) 401 Equity-based compensation expense 13,414 15,315 Change in fair value of contingent considerations 7,230 (5,901)Deferred income taxes (8,698) (1,969)Changes in assets and liabilities: Accounts receivable 8,231 5,575 Prepaid expenses and other assets (5,622) 5,873 Accounts payable, accrued expenses, and other liabilities (15,682) (19,487)Deferred revenues 2,041 (9,863)Other operating activities, net (14) (1,176)Cash provided by operating activities - continuing operations 15,584 23,329 Cash provided by operating activities - discontinued operations 6,148 11,865 Net cash provided by operating activities 21,732 35,194 Cash flows from investing activities: Capital expenditures (1,252) (536)Capitalized software development costs (13,223) (12,199)Cash used in investing activities - continuing operations (14,475) (12,735)Cash provided by investing activities - discontinued operations 69,435 — Net cash provided (used) in investing activities 54,960 (12,735)Cash flows from financing activities: Payments on long-term debt (1,481) (1,500)Common stock repurchase program (57,389) (25,000)Payments for business acquisition related contingent consideration (20,121) (13,230)Payment of taxes on shares withheld for employee taxes (3,339) (4,960)Net cash used in financing activities (82,330) (44,690)Effect of foreign exchange rate on cash and cash equivalents 384 5,314 Net decrease in cash and cash equivalents (5,254) (16,917)Cash and cash equivalents at beginning of period 189,392 179,183 Cash and cash equivalents at end of period $184,138 $162,266 NON-GAAP FINANCIAL MEASURES The following table reconciles net income (loss) from continuing operations to Adjusted EBITDA: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2026 2025 2026 2025 (in thousands)Net income (loss) from continuing operations(a)$(6,081) $1,496 $(17,906) $3,001 Interest expense(a) 4,987 4,802 9,928 9,608 Interest income(a) (943) (1,243) (2,069) (2,885)(Benefit from) Provision for income taxes(a) (307) 2,874 1,614 2,583 Intangible asset amortization and fixed assets depreciation(a) 16,329 15,733 32,342 31,271 Currency (gain) loss(a) 2,358 (577) 2,418 (639)Equity-based compensation expense(b) 6,094 8,245 13,414 15,315 Change in fair value of contingent consideration(d) — (5,722) 7,230 (5,901)Acquisition-related (income) expenses(e) (132) 428 (114) 1,304 Reorganization expense(f) 3,182 934 4,187 1,085 Loss (gain) on disposal of fixed assets(g) (24) (1) (14) 5 Executive recruiting expense(h) 735 — 1,851 661 Adjusted EBITDA$26,198 $26,969 $52,881 $55,408 The following table reconciles net income (loss) from continuing operations to adjusted net income: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2026 2025 2026 2025 ( in thousands)Net income (loss) from continuing operations(a)$(6,081) $1,496 $(17,906) $3,001 Currency (gain) loss(a) 2,358 (577) 2,418 (639)Equity-based compensation expense(b) 6,094 8,245 13,414 15,315 Amortization of acquisition-related intangible assets(c) 10,849 10,947 21,640 21,938 Change in fair value of contingent consideration(d) — (5,722) 7,230 (5,901)Acquisition-related (income) expenses(e) (132) 428 (114) 1,304 Reorganization expense(f) 3,182 934 4,187 1,085 Loss (gain) on disposal of fixed assets(g) (24) (1) (14) 5 Executive recruiting expense(h) 735 — 1,851 661 Income tax expense impact of adjustments(i) (4,441) (3,023) (11,132) (7,319) Adjusted net income$12,540 $12,727 $21,574 $29,450 The following tables reconciles diluted earnings per share from continuing operations to adjusted diluted earnings per share: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2026 2025 2026 2025 Diluted earnings per share from continuing operations (a)$(0.04) $0.01 $(0.11) $0.02 Currency (gain) loss(a) 0.02 - 0.02 - Equity-based compensation expense(b) 0.04 0.05 0.08 0.09 Amortization of acquisition-related intangible assets(c) 0.07 0.07 0.13 0.14 Change in fair value of contingent consideration(d) - (0.04) 0.05 (0.04)Acquisition-related expenses(e) - - - 0.01 Reorganization expense(f) 0.02 0.01 0.03 0.01 Loss (gain) on disposal of fixed assets(g) - - - - Executive recruiting expense(h) - - 0.01 - Income tax expense impact of adjustments(i) (0.03) (0.02) (0.07) (0.05) Adjusted diluted earnings per share$0.08 $0.08 $0.14 $0.18 Basic weighted average common shares outstanding 154,356,779 160,916,057 156,046,326 160,955,936 Effect of potentially dilutive shares outstanding (j) 595,507 932,945 433,412 645,088 Adjusted diluted weighted average common shares outstanding 154,952,286 161,849,002 156,479,738 161,601,024 (a) Represents a measure determined under GAAP. (b) Represents expense related to equity-based compensation. Equity-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy. (c) Represents amortization costs associated with acquired intangible assets in connection with business acquisitions. (d) Represents expense associated with fair value adjustment or adjustment of contingent consideration of business acquisition. (e) Represents costs associated with mergers and acquisitions and any retention bonuses pursuant to the acquisitions. (f) Represents expenses related to reorganization, including legal entity reorganization and lease abandonment costs associated with the evaluation of our office space footprint. (g) Represents the gain/loss related to disposal of fixed assets. (h) Represents recruiting, relocation expenses, and retention costs related to senior executives. (i) Represents the income tax effect of the non-GAAP adjustments calculated using the applicable statutory rate by jurisdiction. (j) Represents potentially dilutive shares that were included from our GAAP diluted weighted average common shares outstanding.
	Saved 2026-08-04 11:46 1mo ago Published 2026-08-04 06:00 1mo ago	Revvity zvýšila tržby a prodává čínskou divizi Immunodiagnostics Revvity ve 2. čtvrtletí zvýšila tržby na 730 milionů USD a upravený zisk na akcii na 1,41 USD. Firma zároveň uzavřela dohodu o prodeji čínské divize Immunodiagnostics. RVTY Revvity	FMP Stock News	92
Original source text WALTHAM, Mass.--(BUSINESS WIRE)--Revvity, Inc. (NYSE: RVTY), today reported financial results for the second quarter ended July 5, 2026. The Company reported GAAP earnings per share from continuing operations of $0.48, as compared to $0.47 in the same period a year ago. Revenue for the quarter was $730 million, as compared to $720 million in the same period a year ago. GAAP operating income from continuing operations for the quarter was $89 million (which includes $16 million of tariff related refunds), as compared to $91 million for the same period a year ago. GAAP operating profit margin from continuing operations was 12.2% as a percentage of revenue, as compared to 12.6% in the same period a year ago. Adjusted earnings per share from continuing operations for the quarter was $1.41, as compared to $1.18 in the same period a year ago. Adjusted operating income was $211 million, as compared to $192 million for the same period a year ago. Adjusted operating profit margin was 28.9% as a percentage of revenue, as compared to 26.6% in the same period a year ago. Enters into Definitive Agreement to Divest China Immunodiagnostics Business The Company recently entered into a definitive agreement to divest its Immunodiagnostics business in China (“China IDX”), which represented approximately 6% of the Company’s total revenue in fiscal year 2025. The transaction is expected to close by the end of 2027, subject to customary closing conditions and regulatory approvals. The Company is providing second quarter 2026 financial results on a reported and pro forma basis; forward-looking guidance is provided on a pro forma basis only and excludes China IDX. Pro forma earnings per share from continuing operations for the quarter was $0.52, as compared to $0.48 in the same period a year ago. Pro forma revenue for the quarter was $711 million, as compared to $681 million in the same period a year ago. Pro forma operating income was $94 million, as compared to $85 million in the same period a year ago. Pro forma operating profit margin was 13.2% as a percentage of pro forma revenue, as compared to 12.4% in the same period a year ago. On a pro forma adjusted basis, earnings per share for the quarter was $1.41 (which includes approximately $0.11 from tariff related refunds), as compared to $1.15 in the same period a year ago. Pro forma adjusted operating income was $209 million (which includes $16 million of tariff related refunds), as compared to $180 million for the same period a year ago. Pro forma adjusted operating profit margin was 29.3% as a percentage of pro forma revenue, as compared to 26.5% in the same period a year ago. Adjustments for the Company’s non-GAAP financial measures have been noted in the attached reconciliations. “Revvity delivered a strong second quarter, with results above our expectations and encouraging signs of increased demand across our customer base,” said Prahlad Singh, president and chief executive officer of Revvity. “As we enter the second half of the year, given the clear momentum in our end markets, we are utilizing a portion of recently received tariff refunds to increase investments across the business, capitalize on emerging opportunities, and support future growth.” Financial Overview by Reporting Segment Life Sciences Second quarter 2026 revenue was $359 million, as compared to $366 million in the same period a year ago. Pro forma revenue decreased 2% and pro forma organic revenue decreased 3% as compared to the same period a year ago. Second quarter 2026 adjusted operating income was $112 million, as compared to $115 million in the same period a year ago. Adjusted operating profit margin was 31.1% as a percentage of revenue, as compared to 31.6% in the same period a year ago. Diagnostics Second quarter 2026 revenue was $371 million, as compared to $354 million in the same period a year ago. Pro forma revenue increased 12% and pro forma organic revenue increased 11% as compared to the same period a year ago. Second quarter 2026 adjusted operating income was $113 million, as compared to $89 million in the same period a year ago. Adjusted operating profit margin was 30.4% as a percentage of revenue, as compared to 25.2% in the same period a year ago. Full Year 2026 Guidance For the full year 2026, on a pro forma basis, the Company forecasts total revenue of $2.83-$2.86 billion, pro forma organic revenue growth of 4-5%, and pro forma adjusted earnings per share of $5.30-$5.40. Guidance for the full year 2026 for pro forma organic revenue growth and pro forma adjusted EPS is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company’s results prepared in accordance with GAAP. Webcast Information The Company will discuss its second quarter 2026 results and its outlook for business trends during a webcast on August 4, 2026, at 7:30 a.m. Eastern Time. A live audio webcast and presentation will be available on the Investors section of the Company’s website, ir.revvity.com. Use of Non-GAAP Financial Measures In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements. Factors Affecting Future Performance This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as “believes”, “intends”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “will” and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) fluctuations in the global economic and political environments, including as the result of recently implemented and recently threatened tariff increases; (3) our failure to introduce new products in a timely manner; (4) our ability to execute acquisitions and divestitures, license technologies, or to successfully integrate acquired businesses or licensed technologies into our existing businesses or to make them profitable; (5) our ability to compete effectively; (6) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (7) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (8) disruptions in the supply of raw materials and supplies; (9) our ability to retain key personnel; (10) significant disruption in our information technology systems, or cybercrime; (11) uncertainties related to the development and use of AI in our product offerings and internal operations; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) our failure to comply with data privacy and information security laws and regulations; (18) regulatory changes; (19) our failure to comply with healthcare industry regulations; (20) economic, political and other risks associated with foreign operations; (21) our ability to obtain future financing; (22) restrictions in our credit agreements; (23) significant fluctuations in our stock price; (24) reduction or elimination of dividends on our common stock; and (25) other factors which we describe under the caption “Risk Factors” in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. About Revvity At Revvity, “impossible” is inspiration, and “can’t be done” is a call to action. Revvity provides health science solutions, technologies, expertise and services that deliver complete workflows from discovery to development, and diagnosis to cure. Revvity is revolutionizing what’s possible in healthcare, with specialized focus areas in translational multi-omics technologies, biomarker identification, imaging, prediction, screening, detection and diagnosis, informatics and more. With 2025 revenue of $2.9 billion and approximately 11,000 employees, Revvity serves customers across pharmaceutical and biotech, diagnostic labs, academia and governments. It is part of the S&P 500 index and has customers in more than 160 countries. Stay updated by following our Newsroom, LinkedIn, X, YouTube, Facebook and Instagram. Revvity, Inc. and Subsidiaries CONDENSED CONSOLIDATED INCOME STATEMENTS Three Months Ended July 5, 2026 Three Months Ended June 29, 2025 (In thousands, except per share data) As Reported Pro Forma As Reported Pro Forma Revenue $ 729,688 $ 711,109 $ 720,284 $ 680,547 Cost of revenue 312,822 302,876 327,728 306,814 Selling, general and administrative expenses 278,576 265,739 248,526 235,812 Research and development expenses 48,974 48,798 53,270 53,270 Operating income from continuing operations 89,316 93,696 90,760 84,651 Interest income (5,259 ) (5,242 ) (8,345 ) (8,327 ) Interest expense 22,990 22,990 22,937 22,937 Change in fair value of investments 5,251 5,251 1,955 1,955 Other expense, net 2,803 4,003 5,563 4,868 Income from continuing operations, before income taxes 63,531 66,694 68,650 63,218 Provision for income taxes 10,050 8,214 13,428 6,754 Income from continuing operations 53,481 58,480 55,222 56,464 Loss from discontinued operations (1,661 ) (1,661 ) (1,274 ) (1,274 ) Net income $ 51,820 $ 56,819 $ 53,948 $ 55,190 Diluted earnings per share: Income from continuing operations $ 0.48 $ 0.52 $ 0.47 $ 0.48 Loss from discontinued operations (0.01 ) (0.01 ) (0.01 ) (0.01 ) Net income $ 0.47 $ 0.51 $ 0.46 $ 0.47 Weighted average diluted shares of common stock outstanding 111,629 111,629 117,538 117,538 ABOVE PREPARED IN ACCORDANCE WITH GAAP Additional supplemental information(1): (per share, continuing operations) Three Months Ended July 5, 2026 Three Months Ended June 29, 2025 As Reported Pro Forma As Reported Pro Forma GAAP EPS from continuing operations $ 0.48 $ 0.52 $ 0.47 $ 0.48 Amortization of intangible assets 0.76 0.70 0.73 0.68 Purchase accounting adjustments 0.02 0.02 0.02 0.02 Acquisition and divestiture-related costs — — 0.01 0.01 Transformation costs (0.01 ) (0.01 ) — — Change in fair value of investments 0.05 0.05 0.02 0.02 Significant litigation matters and settlements — — 0.01 0.01 Restructuring and other 0.32 0.32 0.10 0.10 Tax on above items (0.21 ) (0.19 ) (0.16 ) (0.16 ) Adjusted EPS from continuing operations $ 1.41 $ 1.41 $ 1.18 $ 1.15 (1) amounts may not sum due to rounding Revvity, Inc. and Subsidiaries CONDENSED CONSOLIDATED INCOME STATEMENTS Six Months Ended July 5, 2026 Six Months Ended June 29, 2025 (In thousands, except per share data) As Reported Pro Forma As Reported Pro Forma Revenue $ 1,440,806 $ 1,398,021 $ 1,385,046 $ 1,309,245 Cost of revenue 636,285 612,042 616,944 578,190 Selling, general and administrative expenses 532,458 505,515 498,245 507,149 Research and development expenses 106,861 106,684 106,867 106,867 Operating income from continuing operations 165,202 173,780 162,990 117,039 Interest income (11,563 ) (11,535 ) (18,426 ) (18,395 ) Interest expense 47,708 47,708 45,901 45,901 Change in fair value of investments 9,455 9,455 (1,118 ) (1,118 ) Other expense, net 6,079 6,567 15,601 14,296 Income from continuing operations, before income taxes 113,523 121,585 121,032 76,355 Provision for income taxes 19,149 17,814 24,141 23,664 Income from continuing operations 94,374 103,771 96,891 52,691 Loss from discontinued operations (1,836 ) (1,836 ) (706 ) (706 ) Net income $ 92,538 $ 101,935 $ 96,185 $ 51,985 Diluted earnings per share: Income from continuing operations $ 0.84 $ 0.93 $ 0.82 $ 0.44 Loss from discontinued operations (0.02 ) (0.02 ) (0.01 ) (0.01 ) Net income $ 0.82 $ 0.91 $ 0.81 $ 0.43 Weighted average diluted shares of common stock outstanding 111,746 111,746 118,882 118,882 ABOVE PREPARED IN ACCORDANCE WITH GAAP Additional supplemental information(1): (per share, continuing operations) Six Months Ended July 5, 2026 Six Months Ended June 29, 2025 As Reported Pro Forma As Reported Pro Forma GAAP EPS from continuing operations $ 0.84 $ 0.93 $ 0.82 $ 0.44 Amortization of intangible assets 1.52 1.41 1.41 1.32 Purchase accounting adjustments 0.02 0.02 0.02 0.02 Acquisition and divestiture-related costs 0.01 0.01 0.03 0.03 Change in fair value of investments 0.08 0.08 (0.01 ) (0.01 ) Loss from probable dispositions — — — 0.29 Significant litigation matters and settlements — — 0.10 0.10 Significant environmental matters — — (0.01 ) (0.01 ) Disposition of businesses and assets, net (0.05 ) (0.05 ) — — Mark to market on postretirement benefits (0.02 ) (0.02 ) 0.04 0.04 Restructuring and other 0.41 0.40 0.12 0.12 Tax on above items (0.36 ) (0.34 ) (0.32 ) (0.23 ) Adjusted EPS from continuing operations $ 2.47 $ 2.45 $ 2.19 $ 2.11 (1) amounts may not sum due to rounding Revvity, Inc. and Subsidiaries REVENUE AND OPERATING INCOME (LOSS) Three Months Ended July 5, 2026 Three Months Ended June 29, 2025 (In thousands, except percentages) As Reported Pro Forma As Reported Pro Forma Revenue and adjusted operating income Revenue $ 729,688 $ 711,109 $ 720,284 $ 680,547 Operating income from continuing operations $ 89,316 $ 93,696 $ 90,760 $ 84,651 OP% 12.2 % 13.2 % 12.6 % 12.4 % Amortization of intangible assets 84,871 78,383 85,289 79,903 Purchase accounting adjustments 1,866 1,866 2,178 2,178 Acquisition and divestiture-related costs 105 39 1,248 1,248 Transformation costs (736 ) (736 ) — — Significant litigation matters and settlements 79 79 1,124 1,124 Restructuring and other 35,508 35,199 11,203 11,203 Adjusted operating income $ 211,009 $ 208,526 $ 191,802 $ 180,307 OP% 28.9 % 29.3 % 26.6 % 26.5 % Three Months Ended July 5, 2026 June 29, 2025 (In thousands, except percentages) Segment revenue: Life Sciences $ 358,699 $ 365,898 Diagnostics 370,989 354,386 Segment revenue 729,688 720,284 Segment operating income: Life Sciences $ 111,534 $ 115,469 31.1 % 31.6 % Diagnostics 112,866 89,422 30.4 % 25.2 % Segment operating income 224,400 204,891 Corporate (13,391 ) (13,089 ) Adjusted operating income 211,009 191,802 Amortization of intangible assets (84,871 ) (85,289 ) Purchase accounting adjustments (1,866 ) (2,178 ) Acquisition and divestiture-related costs (105 ) (1,248 ) Transformation costs 736 — Significant litigation matters and settlements (79 ) (1,124 ) Restructuring and other (35,508 ) (11,203 ) Reported operating income from continuing operations $ 89,316 $ 90,760 REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP Revvity, Inc. and Subsidiaries REVENUE AND OPERATING INCOME (LOSS) Six Months Ended July 5, 2026 Six Months Ended June 29, 2025 (In thousands, except percentages) As Reported Pro Forma As Reported Pro Forma Revenue and adjusted operating income Revenue $ 1,440,806 $ 1,398,021 $ 1,385,046 $ 1,309,245 Operating income from continuing operations 165,202 173,780 162,990 117,039 OP% 11.5 % 12.4 % 11.8 % 8.9 % Amortization of intangible assets 169,952 157,092 167,989 157,246 Purchase accounting adjustments 2,007 2,007 2,001 2,001 Acquisition and divestiture-related costs 387 324 3,789 3,789 Disposition of businesses and assets, net (5,074 ) (5,074 ) — — Transformation costs 58 58 — — Loss from probable dispositions — — — 34,243 Significant litigation matters and settlements 148 148 11,710 11,710 Significant environmental matters — — (1,208 ) (1,208 ) Restructuring and other 46,183 45,197 14,442 14,442 Adjusted operating income $ 378,863 $ 373,532 $ 361,713 $ 339,262 OP% 26.3 % 26.7 % 26.1 % 25.9 % Six Months Ended July 5, 2026 June 29, 2025 (In thousands, except percentages) Segment revenue: Life Sciences $ 720,544 $ 706,293 Diagnostics 720,262 678,753 Segment revenue 1,440,806 1,385,046 Segment operating income: Life Sciences $ 215,513 $ 221,180 29.9 % 31.3 % Diagnostics 188,988 163,437 26.2 % 24.1 % Segment operating income 404,501 384,617 Corporate (25,638 ) (22,904 ) Adjusted operating income 378,863 361,713 Amortization of intangible assets (169,952 ) (167,989 ) Purchase accounting adjustments (2,007 ) (2,001 ) Acquisition and divestiture-related costs (387 ) (3,789 ) Disposition of businesses and assets, net 5,074 — Transformation costs (58 ) — Significant litigation matters and settlements (148 ) (11,710 ) Significant environmental matters — 1,208 Restructuring and other (46,183 ) (14,442 ) Reported operating income from continuing operations $ 165,202 $ 162,990 REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP Revvity, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 5, 2026 December 28, 2025 Current assets: Cash and cash equivalents $ 1,022,943 $ 919,860 Accounts receivable, net 709,175 744,671 Inventories, net 378,502 379,497 Other current assets 187,101 195,719 Total current assets 2,297,721 2,239,747 Property, plant and equipment, net 456,251 479,249 Operating lease right-of-use assets, net 150,945 165,439 Intangible assets, net 2,224,001 2,347,003 Goodwill 6,607,802 6,613,493 Other assets, net 309,114 323,480 Total assets $ 12,045,834 $ 12,168,411 Current liabilities: Current portion of long-term debt $ 572,156 $ 588,828 Accounts payable 165,740 185,464 Accrued expenses and other current liabilities 538,461 556,954 Total current liabilities 1,276,357 1,331,246 Long-term debt 2,633,094 2,631,236 Long-term liabilities 771,359 807,461 Operating lease liabilities 136,266 148,108 Total liabilities 4,817,076 4,918,051 Total stockholders' equity 7,228,758 7,250,360 Total liabilities and stockholders' equity $ 12,045,834 $ 12,168,411 PREPARED IN ACCORDANCE WITH GAAP Revvity, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended Six Months Ended (In thousands) July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025 Operating activities: Net income $ 51,820 $ 53,948 $ 92,538 $ 96,185 Loss from discontinued operations, net of income taxes 1,661 1,274 1,836 706 Income from continuing operations 53,481 55,222 94,374 96,891 Adjustments to reconcile income from continuing operations to net cash provided by continuing operations: Stock-based compensation 10,731 10,133 19,446 17,864 Restructuring and other 35,508 11,203 46,183 14,442 Depreciation and amortization 102,039 102,778 207,095 200,200 Change in fair value of contingent consideration 1,626 459 1,527 (166 ) Amortization of deferred debt financing costs and accretion of discounts 1,301 1,218 2,440 2,320 Change in fair value of investments 5,251 1,955 9,455 (1,118 ) Unrealized foreign exchange loss 86 206 186 140 Gains on disposition of businesses and assets, net — — (5,074 ) — Changes in assets and liabilities which (used) provided cash: Accounts receivable, net (17,631 ) (40,041 ) 43,916 (21,901 ) Inventories, net 8,060 11,128 (4,778 ) 5,642 Accounts payable (4,320 ) (5,576 ) (18,064 ) 3,278 Accrued expenses and other (4,189 ) (14,367 ) (78,876 ) (49,177 ) Net cash provided by operating activities of continuing operations 191,943 134,318 317,830 268,415 Net cash used in operating activities of discontinued operations — — (10,657 ) (5,942 ) Net cash provided by operating activities 191,943 134,318 307,173 262,473 Investing activities: Capital expenditures (11,073 ) (18,868 ) (30,848 ) (34,850 ) Purchases of investments and notes receivables (2,506 ) — (3,561 ) — Proceeds from investments and notes receivables 6,819 — 7,496 — Proceeds from dispositions of property, plant and equipment 3,036 — 12,039 — Proceeds from disposition of businesses and assets — — 158 229 Cash paid for acquisitions, net of cash acquired 219 — (67,061 ) — Net cash used in investing activities of continuing operations (3,505 ) (18,868 ) (81,777 ) (34,621 ) Net cash provided by investing activities of discontinued operations — 9,375 — 18,750 Net cash used in investing activities (3,505 ) (9,493 ) (81,777 ) (15,871 ) Financing Activities: Payments of debt financing costs — (72 ) — (2,474 ) Payments on other credit facilities — (53 ) — (103 ) Payments for acquisition-related contingent consideration (350 ) (161 ) (350 ) (1,978 ) Proceeds from issuance of common stock under stock plans 996 — 6,437 2,632 Purchases of common stock (15,992 ) (293,907 ) (102,488 ) (447,501 ) Dividends paid (7,814 ) (8,282 ) (15,654 ) (16,715 ) Net cash used in financing activities (23,160 ) (302,475 ) (112,055 ) (466,139 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (2,563 ) 31,953 (10,190 ) 48,075 Net increase (decrease) in cash, cash equivalents, and restricted cash 162,715 (145,697 ) 103,151 (171,462 ) Cash, cash equivalents, and restricted cash at beginning of period 861,466 1,138,687 921,030 1,164,452 Cash, cash equivalents, and restricted cash at end of period $ 1,024,181 $ 992,990 $ 1,024,181 $ 992,990 Supplemental disclosure of cash flow information: Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: Cash and cash equivalents $ 1,022,943 $ 991,849 $ 1,022,943 $ 991,849 Restricted cash included in other current assets 713 1,141 713 1,141 Restricted cash included in other assets 525 — 525 — Total cash, cash equivalents and restricted cash $ 1,024,181 $ 992,990 $ 1,024,181 $ 992,990 PREPARED IN ACCORDANCE WITH GAAP Revvity, Inc. and Subsidiaries RECONCILIATION OF FINANCIAL METRICS (1) Continuing Operations Three Months Ended July 5, 2026 Pro forma organic revenue growth: Pro forma revenue growth from continuing operations 4% Less: effect of foreign exchange rates 0% Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 1% Pro forma organic revenue growth from continuing operations 3% Life Sciences Three Months Ended July 5, 2026 Pro forma organic revenue growth: Pro forma revenue growth from continuing operations -2% Less: effect of foreign exchange rates 0% Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 1% Pro forma organic revenue growth from continuing operations -3% Diagnostics Three Months Ended July 5, 2026 Pro forma organic revenue growth: Pro forma revenue growth from continuing operations 12% Less: effect of foreign exchange rates 1% Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 0% Pro forma organic revenue growth from continuing operations 11% (1) amounts may not sum due to rounding Revvity, Inc. and Subsidiaries RECONCILIATION OF FINANCIAL METRICS (1) Continuing Operations Six Months Ended July 5, 2026 Pro forma organic revenue growth: Pro forma revenue growth from continuing operations 7% Less: effect of foreign exchange rates 2% Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 1% Pro forma organic revenue growth from continuing operations 4% Life Sciences Six Months Ended July 5, 2026 Pro forma organic revenue growth: Pro forma revenue growth from continuing operations 2% Less: effect of foreign exchange rates 1% Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 1% Pro forma organic revenue growth from continuing operations 0% Diagnostics Six Months Ended July 5, 2026 Pro forma organic revenue growth: Pro forma revenue growth from continuing operations 12% Less: effect of foreign exchange rates 2% Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 0% Pro forma organic revenue growth from continuing operations 10% (1) amounts may not sum due to rounding Explanation of Non-GAAP Financial Measures We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. We use the term “organic revenue” to refer to GAAP revenue, excluding the effect of foreign currency changes and revenue from recent acquisitions, divestitures and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term “organic revenue growth” or “organic growth” to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year. We use the term “adjusted gross margin” to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions and asset impairments. We use the related term “adjusted gross margin percentage” to refer to adjusted gross margin as a percentage of revenue. We use the term “adjusted SG&A expense” to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, asset impairments, significant environmental charges, and restructuring and other charges. We use the related term “adjusted SG&A percentage” to refer to adjusted SG&A expense as a percentage of revenue. We use the term “adjusted R&D expense” to refer to GAAP R&D expense, excluding amortization of intangible assets and purchase accounting adjustments. We use the related term “adjusted R&D percentage” to refer to adjusted R&D expense as a percentage of revenue. We use the term “adjusted net interest and other expense” to refer to GAAP net interest and other expense, excluding adjustments for mark-to-market accounting on post-retirement benefits, changes in foreign exchange and interest associated with acquisitions and divestitures, changes in the value of investments and debt extinguishment costs. We use the term “adjusted operating income” to refer to GAAP operating income, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, asset impairments, and restructuring and other charges. We use the related terms “adjusted operating profit percentage,” “adjusted operating profit margin,” and “adjusted operating margin” to refer to adjusted operating income as a percentage of revenue. We use the term “free cash flow” to refer to net cash provided by (used in) operating activities of continuing operations, less payments for additions to property, plant and equipment from continuing operations (“capital expenditures”) plus the proceeds from sales of plant, property and equipment from continuing operations (“capital disposals”). We use the term “adjusted net income” to refer to GAAP income from continuing operations, excluding amortization of intangible assets, debt extinguishment costs, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, changes in the value of investments, disposition of businesses and assets, net, changes in foreign exchange and interest associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events. We use the term “adjusted earnings per share from continuing operations,” “adjusted earnings per share,” “adjusted EPS,” or “adjusted EPS from continuing operations” to refer to GAAP earnings per share from continuing operations, excluding amortization of intangible assets, debt extinguishment costs, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, changes in the value of investments, disposition of businesses and assets, net, changes in foreign exchange and interest associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events. We use the term “pro forma organic revenue” to refer to organic revenue excluding revenue from probable dispositions. We use the related term “pro forma organic revenue growth”, “pro forma organic revenue growth from continuing operations” or “pro forma organic growth” to refer to the measure of comparing current period pro forma organic revenue with the corresponding period of the prior year. We use the term “pro forma adjusted gross margin” to refer to adjusted gross margin, excluding gross margin from probable dispositions. We use the related term “pro forma adjusted gross margin percentage” to refer to pro forma adjusted gross margin as a percentage of pro forma revenue. We use the term “pro forma adjusted SG&A expense” to refer to adjusted SG&A expense, excluding SG&A expense from probable dispositions and gains(losses) on sale of probable dispositions. We use the related term “pro forma adjusted SG&A percentage” to refer to pro forma adjusted SG&A expense as a percentage of pro forma revenue. We use the term “pro forma adjusted R&D expense” to refer to adjusted R&D expense, excluding R&D expense from probable dispositions. We use the related term “pro forma adjusted R&D percentage” to refer to pro forma adjusted R&D expense as a percentage of pro forma revenue. We use the term “pro forma adjusted net interest and other expense” to refer to adjusted net interest and other expense, excluding net interest and expense from probable dispositions. We use the term “pro forma adjusted operating income” to refer to adjusted operating income, excluding operating income from probable dispositions. We use the related terms “pro forma adjusted operating profit percentage,” “pro forma adjusted operating profit margin,” and “pro forma adjusted operating margin” to refer to pro forma adjusted operating income as a percentage of pro forma revenue. We use the term “pro forma adjusted earnings per share from continuing operations,” “pro forma adjusted earnings per share,” “pro forma adjusted EPS,” or “pro forma adjusted EPS from continuing operations” to refer to adjusted earnings per share from continuing operations, excluding net income from probable dispositions and gains (losses) on sale of probable dispositions. Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item: Amortization of intangible assets—purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Debt extinguishment costs—we incur costs and income related to the extinguishment of debt, including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and expense or income from hedges to lock in make-whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. Purchase accounting adjustments—accounting rules require us to adjust various balance sheet accounts, including inventory, fixed assets, deferred revenue and deferred rent balances to fair value at the time of the acquisition. As a result, the expenses for these items in our GAAP results are not the same as what would have been recorded by the acquired entity. Accounting rules also require us to estimate the fair value of contingent consideration at the time of the acquisition, and any subsequent changes to the estimate or payment of the contingent consideration and purchase accounting adjustments are charged to expense or income. We exclude the impact of any changes to contingent consideration from our non-GAAP measures because we believe these expenses or benefits do not accurately reflect the performance of our ongoing operations for the period in which such expenses or benefits are recorded. Acquisition and divestiture-related expenses—we incur legal, due diligence, stay bonuses, incentive awards, stock-based compensation, interest, foreign exchange gains and losses, integration expenses, rebranding expenses, and other costs related to acquisitions and divestitures. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. Transformation costs—transformation costs consist of external professional service costs related to transformation initiatives focused on business processes modernization, automation, and implementation of global systems to support the new Revvity Business Model. These costs are determined to be noncapitalizable in accordance with accounting standards. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported. Asset impairments—we incur expenses related to asset impairments. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Restructuring and other charges—restructuring and other charges consist of employee severance, other exit costs, abandonments or associated asset write-downs, cost of terminating certain lease agreements or contracts as well as costs associated with relocating facilities. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported. Adjustments for mark-to-market accounting on post-retirement benefits—we exclude adjustments for mark-to-market accounting on post-retirement benefits, and therefore only our projected costs are used to calculate our non-GAAP measures. We exclude these adjustments because they do not represent what we believe our investors consider to be costs of producing our products, investments in technology and production, and costs to support our internal operating structure. Significant litigation matters and settlements—we incur expenses related to significant litigation matters, including the costs to settle or resolve various claims and legal proceedings. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Significant environmental charges—we incur expenses related to significant environmental charges. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Disposition of businesses and assets, net—we exclude the impact of gains or losses from the disposition of businesses and assets from our adjusted earnings per share. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported. Impact of foreign currency changes on the current period—we exclude the impact of foreign currency associated with acquisitions and divestitures from these measures by using the prior period’s foreign currency exchange rates for the current period because foreign currency exchange rates are subject to volatility and can obscure underlying trends. Impact of significant tax events—we exclude the impact of significant tax events. Management does not believe the impact of significant tax events accurately reflects the performance of our ongoing operations for the periods in which the impact of such events was recorded. Change in fair value of investments—we exclude the impact of changes in the value of investments. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported. The tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board’s Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, debt extinguishment costs, other costs related to business acquisitions and divestitures, transformation costs, loss from probable dispositions, significant litigation matters and settlements, significant environmental charges, changes in the fair value of investments, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, and restructuring and other charges is calculated based on operational results and a blended jurisdictional tax rate, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on a blended jurisdictional tax rate currently in effect to determine our tax provision. The non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies. Each of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees.
	Saved 2026-08-04 11:45 1mo ago Published 2026-08-04 06:00 1mo ago	Ares Commercial Real Estate oznamuje zisk a dividendu Ares Commercial Real Estate vykázala za 2. čtvrtletí čistý zisk podle GAAP 4,4 mil. USD, tedy 0,08 USD na akcii, a distribuovatelný zisk 6,9 mil. USD, tedy 0,12 USD na akcii. Zároveň schválila dividendu 0,15 USD na akcii za 3. čtvrtletí 2026. ARES Ares Management	FMP Stock News	92
Original source text Second quarter GAAP net income of $4.4 million or $0.08 per diluted common share and Distributable Earnings1 of $6.9 million or $0.12 per diluted common share - Subsequent to the three months ended June 30, 2026 - Declared third quarter 2026 dividend of $0.15 per common share , /PRNewswire/ -- Ares Commercial Real Estate Corporation (the "Company") (NYSE: ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments, reported generally accepted accounting principles ("GAAP") net income of $4.4 million or $0.08 per diluted common share and Distributable Earnings1 of $6.9 million or $0.12 per diluted common share for the second quarter of 2026. "We continue to make advancements in repositioning our portfolio, addressing risk rated 4 and 5 loans, and reducing office loans and REO properties, while investing in new loans," said Bryan Donohoe, Chief Executive Officer of Ares Commercial Real Estate Corporation. "Supported by the Ares platform, in the second quarter, we closed $130 million of new loan commitments, bringing the total new loan commitments to over $900 million in the last twelve months." "During the second quarter, we maintained our balance sheet flexibility with moderate leverage and available capital of over $100 million to support our business priorities," said Jeff Gonzales, Chief Financial Officer of Ares Commercial Real Estate Corporation. "We continue to execute the goals we have outlined, which we believe will allow us to rebuild earnings to levels that are expected to meet or exceed the current dividend level." ________________________________________ (1) Distributable Earnings (Loss) is a non-GAAP financial measure. Refer to Schedule I for the definition and reconciliation of Distributable Earnings (Loss). COMMON STOCK DIVIDEND On May 7, 2026, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the second quarter of 2026. The second quarter 2026 dividend was paid on July 15, 2026 to common stockholders of record as of June 30, 2026. On August 4, 2026, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the third quarter of 2026. The third quarter 2026 dividend will be payable on October 15, 2026 to common stockholders of record as of September 30, 2026. ADDITIONAL INFORMATION The Company issued a presentation of its second quarter 2026 results, which can be viewed at www.arescre.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled "Second Quarter 2026 Earnings Presentation." The Company also filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 with the U.S. Securities and Exchange Commission on August 4, 2026. CONFERENCE CALL AND WEBCAST INFORMATION On Tuesday, August 4, 2026, the Company invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) to discuss its second quarter 2026 financial results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of the Company's website at www.arescre.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 343-5172. International callers can access the conference call by dialing +1 (203) 518-9856. Please provide passcode ACREQ226. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through September 4, 2026 at 5:00 p.m. (Eastern Time) to domestic callers by dialing +1 (800) 723-0532 and to international callers by dialing +1 (402) 220-2655. An archived replay will also be available through September 4, 2026 on a webcast link located on the Home page of the Investor Resources section of the Company's website. ABOUT ARES COMMERCIAL REAL ESTATE CORPORATION Ares Commercial Real Estate Corporation (the "Company") is a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company invests in whole and co-invested senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein. FORWARD-LOOKING STATEMENTS Statements included herein or on the webcast / conference call may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements relate to future events or the Company's future performance or financial condition and include, but are not limited to, statements about potential earnings, the resolution of underperforming loans, increased investment activity, liquidity management, reduction or increase of CECL reserve, reduction or increase of available borrowings, the industry and the loan market. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including global economic trends and economic conditions, including slower growth, changes to fiscal and monetary policy, inflation, labor shortages, changing interest rates, foreign currency exchange volatility and uncertainties caused by tariffs and trade disputes, as well as geopolitical instability, changes in interest rates and credit spreads, management's estimate of current expected credit losses and current expected credit loss reserve, the amount of commercial mortgage loans requiring refinancing, the demand for commercial real estate loans, the Company's expected investment capacity and available capital, rates of default or decreased recovery rates on the Company's target investments, the Company's business and investment strategy, the Company's projected operating results, the ability of Ares Commercial Real Estate Management LLC ("ACREM" or the Company's "Manager") to locate suitable investments for the Company, monitor, service and administer the Company's investments and execute its investment strategy, and the risks described from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risk factors described in Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K, filed with the SEC on February 10, 2026. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Projections and forward-looking statements are based on management's good faith and reasonable assumptions, including the assumptions described herein. INVESTOR RELATIONS CONTACTS Ares Commercial Real Estate Corporation Carl Drake or John Stilmar (888) 818-5298 [email protected] ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of June 30, 2026 December 31, 2025 (unaudited) ASSETS Cash and cash equivalents $ 17,558 $ 29,289 Restricted cash ($1,108 related to consolidated VIEs as of December 31, 2025) 41,017 37,868 Loans held for investment ($138,950 related to consolidated VIEs as of December 31, 2025) 1,748,835 1,528,806 Current expected credit loss reserve (137,810) (125,756) Loans held for investment, net of current expected credit loss reserve 1,611,025 1,403,050 Real estate owned held for investment, net ($52,634 related to consolidated VIEs as of December 31, 2025) 76,238 130,165 Real estate owned held for sale 53,934 — Other assets ($76 of interest receivable related to consolidated VIEs as of December 31, 2025) 17,503 17,770 Total assets $ 1,817,275 $ 1,618,142 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Secured funding agreements $ 1,173,027 $ 858,176 Secured term loan 89,722 89,360 Collateralized loan obligation securitization debt (consolidated VIEs) — 99,921 Due to affiliate 4,199 4,061 Dividends payable 8,458 8,442 Other liabilities ($257 of interest payable related to consolidated VIEs as of December 31, 2025) 52,644 48,614 Total liabilities 1,328,050 1,108,574 Commitments and contingencies STOCKHOLDERS' EQUITY Common stock, par value $0.01 per share, 450,000,000 shares authorized at June 30, 2026 and December 31, 2025 and 55,481,113 and 55,026,453 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively 532 532 Additional paid-in capital 822,606 820,827 Accumulated earnings (deficit) (333,913) (311,791) Total stockholders' equity 489,225 509,568 Total liabilities and stockholders' equity $ 1,817,275 $ 1,618,142 ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Revenue: Interest income $ 27,754 $ 23,117 $ 52,660 $ 50,597 Interest expense (19,182) (16,101) (36,543) (34,290) Net interest margin 8,572 7,016 16,117 16,307 Revenue from real estate owned 5,784 5,549 11,699 11,206 Total revenue 14,356 12,565 27,816 27,513 Expenses: Management and incentive fees to affiliate 2,394 2,430 4,794 4,997 Professional fees 699 673 1,519 1,550 General and administrative expenses 1,723 1,995 3,140 3,715 General and administrative expenses reimbursed to affiliate 853 1,024 1,639 2,027 Expenses from real estate owned 3,301 4,628 6,435 9,123 Total expenses 8,970 10,750 17,527 21,412 (Provision for) reversal of current expected credit losses, net (865) 20,150 (12,003) 25,490 Realized losses on loans — (33,000) (3,340) (33,000) Income (loss) before income taxes 4,521 (11,035) (5,054) (1,409) Income tax expense (benefit), including excise tax 138 — 169 281 Net income (loss) attributable to common stockholders $ 4,383 $ (11,035) $ (5,223) $ (1,690) Earnings (loss) per common share: Basic earnings (loss) per common share $ 0.08 $ (0.20) $ (0.09) $ (0.03) Diluted earnings (loss) per common share $ 0.08 $ (0.20) $ (0.09) $ (0.03) Weighted average number of common shares outstanding: Basic weighted average shares of common stock outstanding 55,367,375 54,856,949 55,344,923 54,842,959 Diluted weighted average shares of common stock outstanding 56,354,988 54,856,949 55,344,923 54,842,959 Dividends declared per share of common stock1 $ 0.15 $ 0.15 $ 0.30 $ 0.30 ____________________________ (1) There is no assurance dividends will continue at these levels or at all. SCHEDULE I Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) Distributable Earnings (Loss) is a non-GAAP financial measure that helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company's REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings (Loss) provides useful information to investors regarding the Company's ability to pay dividends, which is one of the principal reasons the Company believes investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings (Loss) is defined as net income (loss) attributable to common stockholders computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company's target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company's Manager and the Company's independent directors and after approval by a majority of the Company's independent directors. Loan balances that are deemed to be uncollectible are written-off as a realized loss and are included in Distributable Earnings (Loss). Distributable Earnings (Loss) is aligned with the calculation of "Core Earnings," which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager. Reconciliation of net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure, to Distributable Earnings (Loss) is set forth in the table below for the three and twelve months ended June 30, 2026 ($ in thousands): For the Three Months Ended June 30, 2026 For the Twelve Months Ended June 30, 2026 Net income (loss) attributable to common stockholders $ 4,383 $ (4,434) Stock-based compensation 882 3,696 Incentive fees to affiliate — — Depreciation and amortization of real estate owned 749 5,104 Provision for (reversal of) current expected credit losses, net 865 19,648 Distributable Earnings (Loss) $ 6,879 $ 24,014 Net income (loss) attributable to common stockholders $ 0.08 $ (0.08) Stock-based compensation 0.02 0.07 Incentive fees to affiliate — — Depreciation and amortization of real estate owned 0.01 0.09 Provision for (reversal of) current expected credit losses, net 0.02 0.36 Basic Distributable Earnings (Loss) per common share $ 0.12 $ 0.44 Net income (loss) attributable to common stockholders $ 0.08 $ (0.08) Stock-based compensation 0.02 0.07 Incentive fees to affiliate — — Depreciation and amortization of real estate owned 0.01 0.09 Provision for (reversal of) current expected credit losses, net 0.02 0.35 Diluted Distributable Earnings (Loss) per common share $ 0.12 $ 0.43 ____________________________ Numbers presented may not foot due to rounding. SOURCE Ares Commercial Real Estate Corporation
	Saved 2026-08-04 11:45 1mo ago Published 2026-08-04 07:01 1mo ago	Everspin a MaxLinear testují MRAM pro AI servery Everspin Technologies a MaxLinear podepsaly memorandum o porozumění na vyhodnocení paměťových architektur pro AI servery. Cílem je zlepšit efektivitu, výkon a trvanlivost dat pomocí MRAM. MXL MaxLinear	FMP Stock News	72
Original source text - Work will focus on persistent MRAM for metadata management, log data, write buffering and cache functions CHANDLER, Ariz. & CARLSBAD, Calif.--(BUSINESS WIRE)--Everspin Technologies, Inc. (NASDAQ: MRAM), the world's leading developer and manufacturer of MRAM solutions, and MaxLinear, Inc., a leading provider of high-performance connectivity and storage acceleration solutions, today announced the signing of a memorandum of understanding (MOU) to evaluate next-generation memory architectures designed to improve efficiency and performance in AI servers. AI models and inference workloads continue to grow while server architectures are under pressure to support larger data sets, expanding key-value (KV) caches and increased data movement across systems. These demands are driving interest in new approaches that combine persistent memory, acceleration and compression to improve performance, power efficiency and infrastructure utilization. The MOU establishes a framework for the companies to evaluate the use of Everspin's persistent, low-latency MRAM technology with MaxLinear's storage compression, encryption and hardware acceleration platform. The work will focus on metadata management, log data, write buffering and cache functions, as well as other data-intensive workloads, with the goal of improving responsiveness, reliability and data persistence in next-generation server architectures. "AI is forcing system architects to rethink where persistent memory fits in the server memory hierarchy," said Sanjeev Aggarwal, president and CEO of Everspin Technologies. "At Everspin, we continue to advance MRAM for applications where speed, persistence and endurance need to work together. We look forward to collaborating with MaxLinear to bring that innovation into AI server architectures that need persistent memory closer to critical data, creating a path for next-generation MRAM-based solutions.” "The rapid growth of AI is driving the need for smarter ways to manage, move and access data across servers," said Vikas Choudhary, senior vice president, connectivity and storage at MaxLinear. "Combining acceleration, compression, and persistent memory creates an opportunity to improve resource utilization, reduce data movement and deliver more predictable performance for demanding AI workloads. Our collaboration with Everspin is focused on evaluating innovative architectures that can help customers scale efficiently as AI deployments continue to expand." MOU Terms Under the terms of the MOU, the companies will evaluate: Technical validation of Everspin MRAM with MaxLinear’s acceleration, compression and encryption platform for AI and data-intensive server workloadsMarket development initiatives targeting hyperscale cloud, AI infrastructure and enterprise server customersLong-term manufacturing, supply and commercialization opportunitiesFor more information on Everspin Technologies, visit https://www.everspin.com About Everspin Technologies Everspin Technologies, Inc. (NASDAQ: MRAM) is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest-performance non-volatile memory for industrial, data center, automotive, aerospace and other mission-critical applications where data persistence is essential. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. About MaxLinear, Inc. MaxLinear, Inc. (Nasdaq: MXL) is a leading provider of radio frequency (RF), analog, digital, and mixed-signal integrated circuits for access and connectivity, wired and wireless infrastructure, and industrial and multimarket applications. MaxLinear is headquartered in Carlsbad, California. For more information, please visit https://www.maxlinear.com/. MaxLinear, the MaxLinear logo, any other MaxLinear trademarks are all property of MaxLinear, Inc. or one of MaxLinear's subsidiaries in the U.S.A. and other countries. All rights reserved. All third-party marks and logos are trademarks or registered trademarks of their respective holders/owners. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements regarding future events or results. Forward-looking statements are identified by words such as “will,” “expects” or similar expressions and include, but are not limited to, statements regarding Everspin’s anticipated business plans and business strategy. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 5, 2026, as well as in Everspin’s subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made, and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law. More News From Everspin Technologies, Inc. Back to Newsroom
	Saved 2026-08-04 11:44 1mo ago Published 2026-08-04 07:00 1mo ago	DigitalOcean zvýšil tržby o 29 % a výhled tržeb na rok 2026 DigitalOcean ve 2. čtvrtletí zvýšil tržby o 29 % na 281 milionů USD a zvedl výhled tržeb za celý rok 2026 na 30 % až 31 %. DOCN DigitalOcean Holdings	FMP Stock News	92
Original source text Raising 2026 revenue outlook RPO increased to $894 million, up 12x from a year ago Q2 2026 Revenue of $281 million grew 29% year-over-year Million+ Dollar Customer ARR grew 214% year-over-year to $259 million AI Customer ARR grew 212% year-over-year to $234 million Record $93 million in incremental ARR BROOMFIELD, Colo.--(BUSINESS WIRE)--DigitalOcean Holdings, Inc. (NYSE: DOCN), the AI-Native Cloud purpose-built for inference and agentic workloads, today announced results for its second quarter ended June 30, 2026. "Our growth rate is accelerating, as revenue grew 29% year-over-year, more than double our growth rate a year ago," said Paddy Srinivasan, CEO of DigitalOcean. "The acceleration is coming from our highest spending customers and sophisticated AI Natives, and we are now beginning to land nine-figure annual commitments. Early Inference Engine customers drove their total token consumption up approximately 30x in the last 60-days, and 85% of our AI customer ARR now comes from inference and core cloud rather than bare metal. Just as important is how we are growing: attractive margins, positive free cash flow, capacity delivered on or ahead of schedule, and a stronger balance sheet. Our customer momentum and early product traction give us confidence to raise our 2026 revenue outlook to approximately 30%, reaching 35% or more by Q4 2026, and strengthen our conviction in our ability to exceed 50% growth in 2027." Second Quarter 2026 Financial Highlights(1): Revenue was $281 million, an increase of 29%. Annual Run-Rate Revenue (“ARR”) ended the quarter at $1,125 million, an increase of 29%. AI Customer ARR was $234 million, an increase of 212%. Record $93 million of incremental ARR added during the quarter, an increase of 191%. Net income attributable to common stockholders was $35 million, a decrease of 4%, and net income margin was 13%. Operating income was $29 million, a decrease of 18%, and operating income margin was 10%. Adjusted operating income was $67 million, an increase of 9%, and adjusted operating income margin was 24%. Adjusted EBITDA was $114 million, an increase of 27%, and adjusted EBITDA margin was 40%. Diluted net income per share was $0.29 and non-GAAP diluted net income per share was $0.45. Net cash from operating activities increased to $110 million at a 39% margin, from $92 million at a 42% margin in the second quarter of 2025. Adjusted free cash flow increased to $61 million at a 22% margin, from $57 million at a 26% margin in the second quarter of 2025. Cash and cash equivalents was $767 million as of June 30, 2026. Remaining Performance Obligation (“RPO”)(2) was $894 million, of which, $366 million is expected to be recognized over the next 12 months. RPO was $71 million in the second quarter of 2025. Second Quarter 2026 Operational Highlights(1): Launched Inference Engine as part of AI-Native Cloud. Shipped more than 80 product releases since April. Signed first nine-figure annual customer commitments with leading AI-Natives, extending weighted average contract life from 1.6 years to over 3 years. Secured an incremental 20 MW of committed data center capacity expected to come online in 2027 and 2028, bringing total committed capacity to approximately 155 MW, with additional capacity actively being pursued. Added to the Russell 1000 Index, recognition of a business that has scaled with discipline, pairing durable growth with consistent execution. The number of $100K+ Customers(3) grew 9%, while the revenue from these customers, which now represents 35% of total revenue, grew 98%. The number of $500K+ and $1M+ Customers grew 35% and 73%, respectively. Revenue from these customers, which now represents 26% and 23% of total revenue, grew 160% and 214%, respectively. Recent Developments: Repurchased approximately $472 million of our 0.00% Convertible Senior Notes due 2030, funded by a concurrent registered direct offering, reducing leverage with minimal cash usage and minimal dilution, with issued shares offset by the retired notes and an intended repurchase of approximately 500,000 shares. Financial Outlook: DigitalOcean is initiating guidance for the third quarter ending September 30, 2026 as follows: Total revenue of $304 to $307 million, up 32% to 34% year-over-year. Adjusted EBITDA margin of 38% to 39%. Non-GAAP diluted net income per share of $0.28 to $0.30. Fully diluted weighted average shares outstanding of approximately 126 to 127 million shares. For the full year 2026, we now expect: Total revenue of $1.170 to $1.180 billion, up 30% to 31% year-over-year. Adjusted EBITDA margin of 38.5% to 39.5%. Adjusted free cash flow margin in the range of 11% to 13% of revenue. Non-GAAP diluted net income per share of $1.35 to $1.40. Fully diluted weighted average shares outstanding of approximately 122 to 123 million shares. A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to assess the probable significance of the unavailable information, although it is important to note that these factors could be material to our results computed in accordance with GAAP. The financial guidance presented in this release are estimates based on information available to management as of the date of this release. There can be no assurance that our actual results will not differ from the financial guidance presented in this release. Conference Call Information: DigitalOcean will host a conference call today, August 4, 2026, at 8:00 a.m. ET to review its results. The conference call and presentation can be accessed by registering for the webcast at https://events.q4inc.com/attendee/684389800. A live webcast and replay of the conference call in addition to the presentation can be accessed from the DigitalOcean investor relations website at investors.digitalocean.com. About DigitalOcean DigitalOcean (NYSE: DOCN) is the AI-Native Cloud, purpose-built for inference and agentic workloads. Its five-layer integrated platform, spanning GPU and CPU infrastructure, core cloud, inference, data, and managed agent orchestration, is open throughout with no vendor lock-in, giving builders everything they need to start fast, scale production AI workloads, and improve unit economics. More than 680,000 customers and millions of developers globally trust DigitalOcean to build, ship, and scale their applications. Learn more at digitalocean.com. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our expected future performance, including but not limited to statements in the section titled “Financial Outlook” and the quotations of our CEO. The forward-looking statements contained in this release and the accompanying earnings call referenced in this release are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: (1) fluctuations in our financial results make it difficult to project future results; (2) our ability to sustain profitability in the future; (3) our ability to expand usage of our platform by existing customers and/or attract new customers and/or retain existing customers; (4) the speed at which the market for our platform and solutions develops; (5) the success of the development and use of our artificial intelligence and machine learning (“AI/ML”) product offerings or use of third-party AI/ML-based tools; (6) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (7) our ability to control costs, including our operating expenses, and the timing of payment for expenses; (8) the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges; (9) breaches in our security measures allowing unauthorized access to our platform, our data, or our customers’ data; (10) the competitive markets in which we participate; (11) our ability to effectively integrate and retain new members of our executive leadership team and senior management; (12) the effects of acquisitions and their integration; (13) general market, political, economic, and business conditions, including changes in trade policies, such as trade wars, tariffs and other restrictions or the threat of such actions; (14) the impact of new accounting pronouncements; (15) our ability to control fraudulent registrations and usage of our platform, reduce bad debt and lessen capacity constraints on our data centers, servers and equipment; (16) our customers’ ability to have continued and unimpeded access to our platform, including as a result of evolving laws and industry standards; and (17) our plans with respect to accelerating investments in data centers and GPU capacity. Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings and reports we make with the SEC. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date of this release, except as required by law. About Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with non-GAAP financial measures including: (i) adjusted operating income and adjusted operating income margin, (ii) adjusted EBITDA and adjusted EBITDA margin and (iii) non-GAAP net income and non-GAAP diluted net income per share. These measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. We believe that adjusted operating income margin and adjusted EBITDA, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance (including our long-term performance in the case of adjusted operating income) and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted operating income and adjusted EBITDA is helpful to our investors as they are measures used by management in assessing the health of our business, evaluating our operating performance, and for internal planning and forecasting purposes. We believe non-GAAP net income and non-GAAP diluted net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of unusual or non-recurring items from period to period for reasons unrelated to overall operating performance. Our calculations of each of these measures may differ from the calculations of measures with the same or similar titles by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider each of these non-GAAP financial measures alongside other financial performance measures, including the most directly comparable financial measure calculated in accordance with GAAP and our other GAAP results. A reconciliation of each of our non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP is set forth in the tables in the section “Reconciliation of GAAP to Non-GAAP Data.” Adjusted Operating Income and Adjusted Operating Income Margin We define adjusted operating income as operating income, adjusted to exclude stock-based compensation, amortization of acquired intangible assets, acquisition related compensation, acquisition and integration related costs, restructuring and other charges, restructuring related charges, impairment of certain long-lived assets and other charges. We define adjusted operating income margin as adjusted operating income as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin We define adjusted EBITDA as net income attributable to common stockholders, adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, acquisition related compensation, acquisition and integration related costs, income tax expense (benefit), restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, interest income and other income, net, (gain) loss on extinguishment of debt, net, and other charges. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share We define non-GAAP net income as net income attributable to common stockholders, excluding stock-based compensation, acquisition related compensation, amortization of acquired intangibles, acquisition and integration related costs, restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, (gain) loss on extinguishment of debt, net, and other charges. In addition to these exclusions, we subtract an assumed non-GAAP provision for income taxes to calculate non-GAAP net income that excludes the current period income tax benefit (expense). We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision in order to provide better consistency across reporting periods. We define non-GAAP diluted net income per share as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of our stock options, RSUs, PRSUs, and Convertible Notes and, beginning in the first quarter of 2026, excludes the in-the-money portion of our 2030 Convertible Notes as they are covered by our capped call transactions, which are expected to mitigate the dilutive effect of our 2030 Convertible Notes. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Adjusted free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, purchase of intangible assets, and excluding cash paid for restructuring and other charges, acquisition related compensation, restructuring related charges, and acquisition and integration related costs. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. We believe that adjusted free cash flow and adjusted free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our core operations that can be used for strategic initiatives, including investing in our business and selectively pursuing acquisitions and strategic investments. We further believe that historical and future trends in adjusted free cash flow and adjusted free cash flow margin, even if negative, provide useful information about the amount of net cash provided by operating activities that is available (or not available) to be used for strategic initiatives. Adjusted free cash flow and adjusted free cash flow margin exclude acquisitions of equipment under financing arrangements, finance leases, and our future contractual commitments. Additionally, adjusted free cash flow does not represent the residual cash flow available for discretionary expenses given our debt obligations and the total increase or decrease in our cash balance for a given period. Unlevered Adjusted Free Cash Flow and Unlevered Adjusted Free Cash Flow Margin Unlevered adjusted free cash flow is a non-GAAP financial measure that we define as adjusted free cash flow excluding cash paid for interest and interest income. Unlevered adjusted free cash flow margin is calculated as unlevered adjusted free cash flow divided by total revenue. We believe that unlevered adjusted free cash flow and unlevered adjusted free cash flow margin provide additional information to adjusted free cash flow about our liquidity and, measured over time, enable management and investors to monitor the underlying business’ growth pattern and ability to generate cash. We further believe that unlevered adjusted free cash flow is an important metric, as it provides a clear view of our cash generation before the impact of financing decisions and many investors and analysts use unlevered adjusted free cash flow as the basis of their enterprise value calculations as they assess the value of our business. Unlevered adjusted free cash flow and unlevered adjusted free cash flow margin exclude certain charges that will be settled in cash, such as interest paid to service our debt and equipment financing obligations. Additionally, unlevered adjusted free cash flow does not represent the residual cash flow available for discretionary expenses given our debt obligations and the total increase or decrease in our cash balance for a given period. Key Business Metrics: We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions. Customers We calculate customer count as the average number of customers as of the last day of the month for each month in the most recent quarter. Customers are classified in the following categories based on the amount of their spend in a given month and individual customers may fall within different categories within a reporting period (customer spend in a month in whole dollars): Digital Native Enterprise Customers: users that spend more than $500 in a month. $100K+ Customers: users that spend more than $8,333 in a month. $500K+ Customers: users that spend more than $41,667 in a month. $1M+ Customers: users that spend more than $83,333 in a month. ARR We calculate ARR by multiplying total revenue for the most recent quarter by four. AI Customer ARR We calculate AI Customer ARR by multiplying total AI Customer Revenue for the most recent quarter by four. AI Customer Revenue is defined as the total revenue generated from customers who utilize one or more of our AI/ML offerings, inclusive of their revenue from our IaaS and PaaS/SaaS offerings during the period. Other Metrics: Remaining Performance Obligation Remaining performance obligation (“RPO”) represents commitments in customer contracts for future services that have not yet been recognized in the condensed consolidated financial statements. RPO is not necessarily indicative of future revenue growth because it does not account for the timing of customers’ consumption or their usage beyond their contracted capacity. Additionally, RPO may increase when customers transition from usage-based to commitment-based agreements, which does not always reflect incremental revenue growth. RPO is influenced by a number of factors, including the timing and size of renewals, the timing and size of purchases of additional capacity and average contract term. Due to these factors, it is important to review RPO in conjunction with revenue and other financial metrics contained in this release and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings and reports we make with the SEC. DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) (unaudited) June 30, 2026 December 31, 2025 Current assets: Cash and cash equivalents $ 767,026 $ 254,475 Accounts receivable, less allowance for credit losses of $6,812 and $6,374, respectively 115,000 90,908 Prepaid expenses and other current assets 135,584 81,598 Total current assets 1,017,610 426,981 Property and equipment, net 1,049,332 589,094 Restricted cash 156 158 Goodwill 350,651 348,674 Intangible assets, net 93,373 99,504 Operating lease right-of-use assets, net 505,697 270,854 Deferred tax assets 93,991 90,310 Other assets 12,243 12,130 Total assets $ 3,123,053 $ 1,837,705 Current liabilities: Accounts payable $ 10,387 $ 38,836 Accrued other expenses 70,883 42,679 Deferred revenue 53,039 5,882 Debt, current 311,654 325,109 Operating lease liabilities, current 126,233 108,037 Finance lease liabilities and equipment financing obligations, current 129,777 31,411 Other current liabilities 74,139 67,510 Total current liabilities 776,112 619,464 Deferred tax liabilities 3,952 4,092 Debt, long-term 609,399 970,653 Operating lease liabilities, long-term 352,854 166,895 Finance lease liabilities and equipment financing obligations, long-term 447,943 99,103 Other non-current liabilities 2,062 6,188 Total liabilities 2,192,322 1,866,395 Commitments and contingencies (Note 9) Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025) — — Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 105,002,427 and 91,947,614 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) 2 2 Additional paid-in capital 925,014 16,005 Accumulated other comprehensive loss (1,756 ) (960 ) Retained earnings (Accumulated deficit) 7,471 (43,737 ) Total stockholders’ equity (deficit) 930,731 (28,690 ) Total liabilities and stockholders’ equity $ 3,123,053 $ 1,837,705 DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Revenue $ 281,184 $ 218,700 $ 539,089 $ 429,403 Cost of revenue 126,522 87,755 239,717 169,014 Gross profit 154,662 130,945 299,372 260,389 Operating expenses: Research and development 57,515 39,644 106,345 79,238 Sales and marketing 22,568 19,288 44,237 38,689 General and administrative 45,208 36,394 82,848 69,201 Total operating expenses 125,291 95,326 233,430 187,128 Operating income 29,371 35,619 65,942 73,261 Other (expense) income: Interest expense (7,463 ) (2,239 ) (18,016 ) (4,447 ) Loss on extinguishment of debt, net — (269 ) (2,700 ) (269 ) Interest income and other income, net 5,234 9,337 6,412 15,283 Other (expense) income, net (2,229 ) 6,829 (14,304 ) 10,567 Income before income taxes 27,142 42,448 51,638 83,828 Income tax benefit (expense) 8,295 (5,421 ) (430 ) (8,597 ) Net income attributable to common stockholders $ 35,437 $ 37,027 $ 51,208 $ 75,231 Net income per share attributable to common stockholders Basic $ 0.34 $ 0.41 $ 0.52 $ 0.82 Diluted $ 0.29 $ 0.39 $ 0.45 $ 0.77 Weighted-average shares used to compute net income per share attributable to common stockholders Basic 104,611 91,097 98,856 91,538 Diluted 126,548 100,617 118,708 101,521 DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2026 2025 Operating activities Net income attributable to common stockholders $ 51,208 $ 75,231 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 96,629 61,975 Stock-based compensation 55,231 40,513 Provision for expected credit losses 8,078 8,607 Loss on extinguishment of debt 2,700 269 Operating lease right-of-use assets and liabilities, net (30,810 ) (13,816 ) Non-cash interest expense 2,960 4,005 Other 3,476 (7,853 ) Changes in operating assets and liabilities: Accounts receivable (32,230 ) (17,064 ) Prepaid expenses and other current assets (53,906 ) 1,201 Accounts payable and accrued expenses 6,536 (3,029 ) Deferred revenue 47,157 5,867 Other assets and liabilities (140 ) 631 Net cash provided by operating activities 156,889 156,537 Investing activities Capital expenditures - property and equipment (81,576 ) (95,160 ) Capital expenditures - internal-use software (11,785 ) (3,412 ) Acquisition of equipment under financing arrangements (51,544 ) — Purchase of intangible assets (754 ) (1,835 ) Cash paid for acquisition of businesses, net of cash acquired (4,042 ) — Net cash used in investing activities (149,701 ) (100,407 ) Financing activities Proceeds from follow-on public offering, net of underwriting discounts and issuance costs 887,888 — Principal repayment of Term Loan Facility (500,000 ) — Proceeds from drawdown of Term Loan Facility 120,000 — Payment of debt issuance costs — (4,081 ) Proceeds related to issuance of common stock under equity incentive plan 3,558 2,771 Proceeds from issuance of common stock under employee stock purchase plan 2,494 2,660 Employee payroll taxes paid related to net settlement of equity awards (38,406 ) (16,294 ) Proceeds from financing arrangements 51,544 — Principal repayments of finance leases and financing arrangements (21,651 ) (2,733 ) Repurchase and retirement of common stock including related costs — (79,199 ) Net cash provided by (used in) financing activities 505,427 (96,876 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (66 ) 45 Increase (decrease) in cash, cash equivalents and restricted cash 512,549 (40,701 ) Cash, cash equivalents and restricted cash - beginning of period 254,633 430,193 Cash, cash equivalents and restricted cash - end of period $ 767,182 $ 389,492 DIGITALOCEAN HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) Adjusted Operating Income and Operating Income Margin Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2026 2025 2026 2025 Operating income $ 29,371 $ 35,619 $ 65,942 $ 73,261 Adjustments: Stock-based compensation 32,724 21,081 55,231 40,513 Amortization of acquired intangible assets 5,070 5,031 10,008 10,228 Impairment of certain long-lived assets 311 — 311 — Adjusted operating income $ 67,476 $ 61,731 $ 131,492 $ 124,002 As a percentage of revenue: Operating income margin 10 % 16 % 12 % 17 % Adjusted operating income margin 24 % 28 % 24 % 29 % Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2026 2025 2026 2025 GAAP Net income attributable to common stockholders $ 35,437 $ 37,027 $ 51,208 $ 75,231 Adjustments: Depreciation and amortization 51,154 32,765 96,629 61,975 Stock-based compensation 32,724 21,081 55,231 40,513 Interest expense 7,463 2,239 18,016 4,447 Income tax (benefit) expense (8,295 ) 5,421 430 8,597 Loss on extinguishment of debt — 269 2,700 269 Impairment of certain long-lived assets 311 — 311 — Interest income and other income, net(1) (5,234 ) (9,337 ) (6,412 ) (15,283 ) Adjusted EBITDA $ 113,560 $ 89,465 $ 218,113 $ 175,749 As a percentage of revenue: Net income margin 13 % 17 % 9 % 18 % Adjusted EBITDA margin 40 % 41 % 40 % 41 % Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share Three Months Ended Six Months Ended June 30, June 30, (In thousands, except per share amounts) 2026 2025 2026 2025 GAAP Net income attributable to common stockholders $ 35,437 $ 37,027 $ 51,208 $ 75,231 Stock-based compensation 32,724 21,081 55,231 40,513 Amortization of acquired intangible assets 5,070 5,031 10,008 10,228 Loss on extinguishment of debt(1) — 269 2,700 269 Impairment of certain long-lived assets 311 — 311 — Non-GAAP income tax adjustment(2) (18,735 ) (5,593 ) (18,752 ) (12,977 ) Non-GAAP Net income $ 54,807 $ 57,815 $ 100,706 $ 113,264 Non-cash charges related to convertible notes(3) $ 1,118 $ 1,596 $ 2,190 $ 3,191 Non-GAAP Net income used to compute net income per share, diluted $ 55,925 $ 59,411 $ 102,896 $ 116,455 GAAP Net income per share attributable to common stockholders, diluted(6) $ 0.29 $ 0.39 $ 0.45 $ 0.77 Stock-based compensation 0.27 0.21 0.48 0.40 Amortization of acquired intangible assets 0.04 0.05 0.09 0.10 Loss on extinguishment of debt(1) — — 0.02 — Impairment of certain long-lived assets — — — — Non-cash charges related to convertible notes(3) 0.01 0.02 0.02 0.03 Non-GAAP income tax adjustment(2) (0.16 ) (0.08 ) (0.17 ) (0.15 ) Non-GAAP Net income per share, diluted(4) $ 0.45 $ 0.59 $ 0.89 $ 1.15 GAAP Weighted-average shares used to compute net income per share, diluted 126,548 100,617 118,708 101,521 Add: Weighted-average dilutive effect of potentially dilutive securities — — 1,750 — Less: Anti-dilutive impact of capped call transaction(5) (3,227 ) — (4,388 ) — Non-GAAP Weighted-average shares used to compute net income per share, diluted(6) 123,321 100,617 116,070 101,521 ____________________ (1) For the three and six months ended June 30, 2026, excludes tax impact which is presented in Non-GAAP income tax adjustment. (2) For the periods in fiscal year 2026 and 2025, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year. (3) Consists of non-cash interest expense for amortization of debt issuance costs related to our Convertible Notes. (4) May not foot due to rounding. (5) Excludes the in-the-money portion of our 2030 Convertible Notes for non-GAAP weighted-average diluted shares as they are covered by our capped call transactions. Our outstanding capped call transactions are antidilutive under GAAP, but are expected to mitigate the dilutive effect of our 2030 Convertible Notes, and therefore are included in the calculation of non-GAAP diluted shares outstanding. The capped calls have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price. (6) Includes 1,750 and 15,957 of potentially dilutive securities related to our 2026 and 2030 Convertible Notes, respectively, as if the entire principal amount outstanding were converted into shares for the three and six months ended June 30, 2026. Includes 8,403 of potentially dilutive securities related to our 2026 Convertible Notes as if the entire principal amount outstanding were converted into shares for the three and six months ended June 30, 2025. The Company has the election of settling any conversion in cash, shares of our common stock, or a combination of both. Refer to our Quarterly Report on Form 10-Q for the three months ended June 30, 2026 for further details. Adjusted Free Cash Flow, Unlevered Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin and Unlevered Adjusted Free Cash Flow Margin Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2026 2025 2026 2025 GAAP Net cash provided by operating activities $ 109,968 $ 92,447 $ 156,889 $ 156,537 Adjustments: Capital expenditures - property and equipment (41,584 ) (33,197 ) (81,576 ) (95,160 ) Capital expenditures - internal-use software development (7,045 ) (1,383 ) (11,785 ) (3,412 ) Purchase of intangible assets (754 ) (852 ) (754 ) (1,835 ) Restructuring and other charges — — — 64 Adjusted free cash flow $ 60,585 $ 57,015 $ 62,774 $ 56,194 Plus: Cash paid for interest 4,820 54 14,349 249 Less: Interest income (6,390 ) (3,202 ) (9,267 ) (6,859 ) Unlevered adjusted free cash flow $ 59,015 $ 53,867 $ 67,856 $ 49,584 As a percentage of revenue: GAAP Net cash provided by operating activities 39 % 42 % 29 % 36 % Adjusted free cash flow margin 22 % 26 % 12 % 13 % Unlevered adjusted free cash flow margin 21 % 25 % 13 % 12 % More News From DigitalOcean Holdings, Inc.
	Saved 2026-08-04 11:43 1mo ago Published 2026-08-04 06:00 1mo ago	Enlight zvýšila tržby, zisk i celoroční výhled Enlight Renewable Energy ve 2. čtvrtletí zvýšila tržby o 55 % na 210 mil. USD a čistý zisk na 31 mil. USD. Zároveň zvýšila celoroční výhled tržeb na 790 až 820 mil. USD. ENLT Enlight Renewable Energy	FMP Stock News	92
Original source text All of the amounts disclosed in this press release are in U.S. dollars unless otherwise noted TEL AVIV, Israel, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Enlight Renewable Energy (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the quarter ended June 30, 2026. Registration links for the Company’s earnings English and Hebrew conference call and webcasts can be found at the end of this earnings release. Financial Highlights 3 months ending June 30, 2026 Total revenues and income1 of $210 million, an increase of 55% compared to the same period last year.Net income of $31 million, compared to $6 million in the same period last year.Adjusted EBITDA2 of $160 million, compared to $96 million in the same period last year. Excluding a gain of approximately $17 million from the follow-on sale of a 15% stake from the Sunlight cluster in the second quarter of 2026, Adjusted EBITDA totaled $142 million, an increase of 50% from the second quarter of 2025.Cash flow from operating activities3 of about $84 million, an increase of 37% compared to the same period last year. 6 months ending June 30, 2026 Total revenues and income of $409 million, an increase of 55% compared to the same period last year.Net income of $69 million, compared to $107 million in the same period last year. Excluding a gain of approximately $81 million from the sale of 44% stake from the Sunlight cluster in and deconsolidation in the first quarter of 2025, net income increased by 160%, compared to $26 million in the comparable period.Adjusted EBITDA of $314 million, compared to $227 million in the first half of 2025. Excluding a gain of $42 million from the sale of 44% from the Sunlight cluster in the first half of 2025, and a gain of $30 million from follow-on sales of 26% from the Sunlight cluster during the first half of 2026, Adjusted EBITDA amounted to $284 million in the first half of 2026, an increase of 54% from the first half of 2025.Operating cash flow of $185 million, an increase of 48% from the first half of 2025. 1Total revenues and income include revenues from the sale of electricity, as well as income from tax benefits from U.S. projects 2Adjusted EBITDA is a non-IFRS measure. Please refer to the appendices for the reconciliation to net income. The Company is unable to provide a reconciliation of “Adjusted EBITDA” to net income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted 3Interest payments and receipts are classified as cash flows from financing and investing activities, respectively, instead of cash flows from operating activities. Adjustments were made to comparative figures due to a change in accounting policy; for further details, see Appendix No. 4 Raising full-year guidance ranges Revenues & income4 guidance increased to $790 to $820 million, up from $755 to $785 million previously.Adjusted EBITDA guidance increased to $565 to $585 million, up from $545 to $565 million previously.The increase in guidance is primarily driven by strong first-half results, attributed to strong project operational performance, higher electricity prices in Europe and the depreciation of the USD. The increase in revenue guidance exceeded the increase in Adjusted EBITDA guidance, reflecting the growing contribution of our electricity trading operations in Israel, which are characterized by low margins. 4Total revenues and income include revenues from the sale of electricity along with income from tax benefits from US projects amounting to $160-180m. Summary of key financial results: For the three months endedFor the six months ended($ millions)June 30, 2026June 30, 2025% changeJune 30, 2026June 30, 2025% changeRevenues and Income21013555%40926555%Net Income316460%69107(36%)Net income excluding the Sunlight transactions316460%6926160%Adjusted EBITDA1609667%31422738%Adjusted EBITDA excluding the Sunlight transactions1429650%28418554%Cash Flow from Operating Activities846237%18512548% Adi Leviatan, CEO of Enlight Renewable Energy: “We are concluding another quarter of strong growth and consistent execution, with revenue increasing by 55%, significant improvements in profitability and cash flow generation, and robust performance across all of our operating regions. Our first-half results, together with the continued advancement of projects under construction and the expansion of our energy storage business, enable us to raise our 2026 revenue and Adjusted EBITDA guidance, as well as the run-rate revenues reflected in our mature projects and our year-end 2028 target. At the same time, the successful completion of $2.6 billion financing for the CO Bar complex, the largest in our history, along with additional milestones achieved during the quarter, highlights Enlight’s execution and financing capabilities and reflects the confidence of our financial partners. We remain focused and disciplined in expanding our global portfolio and converting it into sustained high-growth performance while preserving long-term profitability. At the same time, we continue to strengthen our position as a leading energy platform across the markets in which we operate.” Portfolio Review During the second quarter and through the date of this release, Enlight continued to expand its portfolio and advance projects through the various phases of development. As of the earning release date, Enlight’s total portfolio is comprised of 21.8 GW of generation capacity and 74.6 GWh energy storage (totaling 43.1 FGW5), representing an increase of 4.6% compared to the total portfolio at the release date of the first quarter of 2026 (41.2 FGW). The generation component increased by approximately 1.5% and the storage component increased by approximately 8% compared to the previous quarter, reflecting Enlight’s strategy to lead in energy storage as a response to the market’s increasing demand. The mature component of the portfolio (operating projects, projects under construction, and projects in pre-construction) comprises of 6.4 GW of generation capacity and 20.5 GWh of storage capacity, totaling 12.3 FGW, compared to 11.6 FGW at the end of the previous quarter, an increase of 6%. Approximately 53% of the capacity is located in the U.S., 32% in Europe, and approximately 15% in MENA. The advanced development and development components comprise of 15.4 GW of generation capacity and 54.1 GWh of storage capacity, totaling 30.8 FGW, an increase of 4% sequentially. Approximately 72% of the capacity is located in the U.S., 15% in MENA, and 13% in Europe. 5FGW (Factored GW) is the company’s consolidated metric combining generation and storage capacity into a uniform figure based on the ratio of construction costs. Current weighted average construction cost ratio is 3.5 GWh of storage per 1 GW of generation: FGW = GW + GWh / 3.5. The composition of Enlight’s portfolio appears in the following table: ComponentStatusFGWAnnual revenues & income run rate ($m)OperatingCommercial operation3.9~780-810Under constructionUnder construction4.5~840Pre-construction0-12 months to start of construction3.9~660Total Mature Portfolio 12.3~$2,300mAdvanced development13-24 months to start of construction7.8-Development24+ months to start of construction23.0-Total Portfolio 43.1- Operating component of the portfolio: 3.9 FGW Approximately 41% of the operating component is in the U.S., 34% in Europe, and 25% in Israel. 90% of operating capacity is contracted under PPAs, of which approximately 24% is under index-linked PPAs.The operating portfolio generates annualized revenues and income run rate of approximately $780 to $810 million. The increase in run-rate revenues from operating assets is driven mainly by higher revenues from electricity trade in Israel, good operational performance in the Company’s projects, higher electricity prices and exchange rates fluctuations. Under construction component of the portfolio: 4.5 FGW This component increased quarter-over-quarter by approximately 500 FMW (approximately 12%),The Bertikow project in Germany (storage capacity of 881 MWh) started construction during the quarter.As part of its strategy to expand energy storage capacity in Europe, the Company acquired and commenced construction of two energy storage projects in Finland, a key hub for data center development. The projects have a combined storage capacity of 902 MWh, are expected to achieve commercial operation during the first half of 2028 and are projected to generate an unlevered return6 of 19% to 20%.The under-construction component includes six projects in the U.S. (CO Bar Phases I-III, Country Acres, Crimson Orchard, and Snowflake A) with a total capacity of 3.4 GW, seven projects in Europe with an aggregate capacity of approximately 912 MW, and projects in Israel with a total capacity of approximately 142 MW.Energy storage projects (either standalone or paired with generation assets) account for approximately 42% of the under-construction component.During the second quarter, financing for the CO Bar complex in Arizona was successfully completed, totaling $2.6 billion. The financing was provided by a consortium of seven leading global financial institutions. The complex comprises five phases and includes 1.2 GW of solar generation capacity and 4 GWh of energy storage capacity. Total investment in the CO Bar complex is expected to range between $2.9 billion and $3.0 billion, including a term loan of approximately $1.7 billion. Tax equity proceeds are estimated at about $1.5 billion. The Company estimates that during the remainder of 2026 it will begin construction of projects totaling approximately 2.7 FGW, such that 87% of the mature component is expected to be either operating or under construction by the end of 2026.The under-construction component is expected to contribute approximately $840 million to the annual revenues and income in their first full year of operation, compared to $770 million in the previous quarter. The increase is mainly attributable to the inclusion of the projects mentioned above. 6 Calculated by dividing the projected EBITDA for the first full year of operations by the estimated net construction cost. Pre-construction component of the portfolio: 3.9 FGW This component increased by approximately 220 FMW.During the quarter, the Karpen Cluster in Romania was acquired, with an aggregate storage capacity of 848 MWh. Commercial operation is expected to commence in several phases during the second half of 2028 and the first half of 2029. The portfolio is expected to generate an unlevered return of 16.8% to 17.2%.During the quarter, an additional energy storage project in Finland, Kajo, was acquired, with a storage capacity of 542 MWh. Commercial operation is expected during the first half of 2028, and the project is expected to generate an unlevered return of 16.9%–17.3%.In addition, projects in Israel and Hungary with an aggregate capacity of approximately 56 FMW advanced to pre-construction.The pre-construction component includes six projects in the U.S. totaling 1.5 FGW, eleven projects in Europe totaling approximately 1.7 FGW, and projects in Israel totaling 0.7 FGW.Storage projects account for 77% of total capacity. Pre-construction projects are expected to contribute approximately $660 million to the annual recurring revenues and income in their first full year of operation, an increase from $540 million in the previous quarter. The increase is mainly attributable to the inclusion of the projects mentioned above. Advanced development component of the portfolio: 7.8 FGW This component increased by 500 FMW sequentially.During the quarter projects with an aggregate capacity of 324 FMW in the U.S. (in SPP), 286 FMW in Poland and 245 FMW in Israel transitioned from development to advanced development.This component includes 5.5 FGW in the U.S., 1.2 FGW in Europe, and 1.1 FGW in MENA.Storage projects account for 48% of total capacity.As of the date of this report, the entire advanced development portfolio in the U.S. has successfully completed System Impact Study process and has a high likelihood of securing grid interconnection.Approximately 5 FGW of U.S. capacity met Safe Harbor7 requirements (approximately 91% of this component’s capacity in the U.S.), securing eligibility for tax benefits. 7Securing Safe Harbor status and grid interconnection agreement do not guarantee the project's completion. Actual project completion is subject to meeting development milestones and market conditions Development component of the portfolio: 23 FGW This component includes 16.9 FGW in the U.S., 3.4 FGW in MENA, and 2.7 FGW in Europe.The main additions over the past three months include projects totaling planned capacity of approximately 2 FGW in the U.S., of which energy storage projects with aggregated capacity of 2.4 GWh in PJM and projects with aggregated electricity generation capacity of 478 MW and storage capacity of 1.4 GWh in CAISO. 240 MW planned electricity generation and 800 MWh of planned energy storage capacity were added in WECC.Storage projects account for approximately 51% of total capacity.As of the earnings release date, 8.1 FGW (approximately 48% of this component’s capacity in the U.S.) successfully completed System Impact Study and have a high likelihood of achieving grid interconnection.Approximately 6.4 FGW of U.S. capacity met Safe Harbor requirements (approximately 38% of this component’s capacity in the U.S.), securing eligibility for tax benefits.Under current U.S. legislation, energy storage projects that commence construction by the end of 2033 are eligible for the full value of available tax credits, with a gradual phase-down for projects beginning construction during the following three years. The Company currently has approximately 4.7 GW of energy storage capacity in its portfolio that is expected to begin construction over the coming years.The Company expects to pursue similar tax credit eligibility for future energy storage projects added to its portfolio, subject to their commencement of construction within the applicable qualification period. With completion of the current mature portfolio by year-end 2028, Enlight’s operating capacity is expected to reach approximately 12 FGW, and total annual revenues and income8 run rate is expected to reach $2.2 to $2.3 billion by the end of 2028, reflecting a 41% compound annual growth rate between 2024 and 2028. Project and Corporate Finance During the first half of the year, the Company secured approximately $3.7 billion of financing sources (including project financing): $2.6 billion financing for the CO-Bar complex, representing the largest financing transaction in the Company's history.Approximately $350 million raised through an expansion of Series G bonds on the Tel Aviv Stock Exchange, at an interest rate of approximately 4.4%, reflecting a spread of approximately 0.75% above comparable Israeli government bonds.Issuance of approximately 6 million shares, generating gross proceeds of approximately $420 million.$304 million financing secured for the Crimson Orchard project in Idaho, U.S.Follow-on transactions for the sale of additional stakes in the Sunlight portfolio, generating proceeds of $38 million.As of the balance sheet date, cash and cash equivalents at the “topco”8 level9 totaled $877 million. In addition, cash and cash equivalents held by subsidiaries amounted to approximately $287 million.As of the balance sheet date, the Company had available credit facilities of $550 million, of which $132 million had been utilized.As of the balance sheet date, the Company had approximately $1.7 billion of Letter of Credit and Surety Bond facilities, of which $674 million had been utilized. 8The expected growth in 2028 encompasses the Company’s operations in all geographies. Expected growth relies on business plans which rely on development conditions and assumptions regarding electricity prices and are contingent on current trends known to the Company at this time; Expected Adjusted EBITDA margin of approximately 70%-80% (including tax benefits) for the years shown. The company's revenues from tax benefits are estimated at approximately 22-24% of the total revenues & income run rate for December 2026 and approximately 28-30% of the total revenues & income run rate for December 2027 and December 2028. 9 Including Enlight Renewable Energy, headquarter companies in Europe and the U.S. and Clenera, and excluding other subsidiaries and project-linked entities. Financial Results Analysis Revenues & Income by Segment ($ millions)For the three months endedFor the six months endedSegment June 30, 2026 June 30, 2025 % change June 30, 2026 June 30, 2025 % change MENA 77 53 46% 141 96 48% Europe 52 48 9% 113 99 14% U.S. 80 34 133% 154 69 122% Other 1 0 - 1 1 - Total Revenues & Income 210 135 55% 409 265 55% Revenues & Income In the second quarter of 2026, the Company's total revenues increased by 55% to approximately $210 million, compared to approximately $135 million in the corresponding quarter last year. Revenues from electricity sales grew by 43% to approximately $166 million. The increase in revenues was primarily driven by new U.S. projects that commenced operations at the end of 2025, contributing approximately $20 million to the growth in electricity sales revenues. Foreign exchange fluctuations contributed an additional $13 million, electricity trading activities in Israel contributed $9 million, and higher power prices together with improved generation output contributed approximately $6 million to the increase in electricity sales revenues. Tax credit income amounted to approximately $44 million, compared to approximately $19 million in the corresponding quarter last year. The increase was primarily attributable to new U.S. projects that commenced operations at the end of 2025, as well as additional tax credits recognized at the Atrisco project related to the use of domestic content, which became effective in the third quarter of 2025. Net Income The Company's net income for the second quarter of 2026 totaled $31 million, compared to $6 million in the corresponding quarter last year. The $25 million increase was primarily driven by a $75 million increase in total revenues. This was partially offset by a $19 million increase in cost of revenues, mainly due to the expansion of electricity trading activities in Israel and the commencement of operations at new projects, a $10 million increase in depreciation and amortization expenses, an $8 million increase in general and administrative and development expenses, a $4 million increase in other expenses, primarily due to compensation for lost revenues received in the second quarter of 2025, and a $9 million increase in tax expenses. Gross financing expenses increased by $18 million, primarily as a result of the commencement of operations at new projects. This was partially offset by a $7 million increase in financing income. In addition, during the corresponding period last year, the Company recorded $12 million of financing expenses related to foreign exchange adjustments. Adjusted EBITDA The Company's Adjusted EBITDA for the second quarter of 2026 amounted to approximately $160 million, compared to approximately $96 million in the corresponding quarter last year, representing an increase of 67%. The increase compared to the second quarter of 2025 was primarily driven by a $75 million increase in revenues, partially offset by a $17 million increase in cost of revenues resulting from the commencement of operations of new projects and the expansion of electricity trading activities in Israel, a $6 million increase in general, administrative and development expenses (excluding share-based compensation expenses), and a $4 million decrease in other income. Partially offsetting these factors, the follow-on sale of an additional 15% interest in the Sunlight portfolio contributed approximately $17 million to Adjusted EBITDA. Conference Call Information English Conference Call & Webcast at 8:00am ET / 3:00pm Israel: Please pre-register to join the live conference call: https://register-conf.media-server.com/register/BIa44c30056e064c77bfb6d11ba810306b Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN. To join by webcast, which will feature a presentation, please use the following link: https://edge.media-server.com/mmc/p/sk3hcqbs Hebrew Webcast at 6:00am ET / 1:00pm Israel: Please pre-register to join the live webcast: https://enlightenergy-com.zoom.us/webinar/register/WN_Is-DMN7ETJ2-RR28wRf59A The press release with the financial results as well as the investor presentation materials will be accessible from the Company’s website prior to the conference call. An archived version of the webcast will be available on the Company’s investor relations website at https://enlightenergy.com/info/investors/ Supplemental Financial and Other Information We intend to announce material information to the public through the Enlight investor relations website at https://enlightenergy.com/info/investors, SEC filings, press releases, public conference calls, and public webcasts. We use these channels to communicate with our investors, customers, and the public about our company, our offerings, and other issues. As such, we encourage investors, the media, and others to follow the channels listed above, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page of our website. Non-IFRS Financial Measures This release presents Adjusted EBITDA, a non-IFRS financial metric, which is provided as a complement to the results provided in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). A reconciliation of the non-IFRS financial information to the most directly comparable IFRS financial measure is provided in the accompanying tables found at the end of this release. We define Adjusted EBITDA as net income (loss) plus depreciation and amortization, share based compensation, finance expenses, taxes on income and share in losses of equity accounted investees, minus finance income and adjusted to eliminate any non-recurring portions of other income (expenses), net. compensation received in respect of contractual performance shortfalls and recorded in other income (expenses), net, is included in adjusted EBITDA. Such compensation represents income the company would have generated had the contractual performance levels been achieved. With respect to gains (losses) from asset disposals, as part of Enlight’s strategy to accelerate growth and reduce the need for equity financing, the Company sells parts of or the entirety of selected renewable project assets from time to time, and therefore includes realized gains or losses from these asset disposals in Adjusted EBITDA. In the case of partial assets disposals, Adjusted EBITDA includes only the economic gain or loss attributable to the interest sold, calculated as the consideration received less the proportional book value attributable to such interest. Our management believes Adjusted EBITDA is indicative of operational performance and ongoing profitability and uses Adjusted EBITDA to evaluate the operating performance and for planning and forecasting purposes. Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under IFRS. There are a number of limitations related to the use of non-IFRS financial measures versus comparable financial measures determined under IFRS. For example, other companies in our industry may calculate the non-IFRS financial measures that we use differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of our non-IFRS financial measures as analytical tools. Investors are encouraged to review the related IFRS financial measure, Net Income, and the reconciliations of Adjusted EBITDA provided below to Net Income and to not rely on any single financial measure to evaluate our business. Special Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s business strategy and plans, capabilities of the Company’s project portfolio and the Company’s expectation relating to projects, including their timeline, financing and the achievement of operational and financial objectives, market opportunity, utility demand and potential growth, discussions with commercial counterparties and financing sources, pricing trends for materials, progress of Company projects, including anticipated timing of related approvals and project completion and anticipated production delays, the Company’s future financial results, expected impact from various regulatory developments and anticipated trade sanctions, expectations regarding wind production, electricity prices and windfall taxes, and expected Revenues, Income and Adjusted EBITDA guidance, the expected timing of completion of our ongoing projects, and the Company’s anticipated cash requirements and financing plans , are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects, as well as timing of construction of any project; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; disruptions in trade caused by political, social or economic instability in regions where our components and materials are made; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; exposure to market prices in some of our offtake contracts; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy; our ability to effectively manage the global expansion of the scale of our business operations; our ability to perform to expectations in our new line of business involving the construction of PV systems for municipalities in Israel; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, the impact of tariffs on the cost of construction and our ability to mitigate such impact, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with increasingly complex tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; our ability to obtain tax benefits and credits in the U.S. or other jurisdictions; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel, including the ongoing war in Israel, where our headquarters and some of our wind energy and solar energy projects are located; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”), as may be updated in our other documents filed with or furnished to the SEC. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. About Enlight Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 12 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its U.S. IPO (Nasdaq: ENLT) in 2023. Investor Contacts Limor Zohar Megen Director IR [email protected] Erica Mannion or Mike Funari Sapphire Investor Relations, LLC +1 617 542 6180 [email protected] Appendix 1 – Financial information Consolidated Statements of Income For the six months ended June 30 For the three months ended June 30 2026 2025 2026 2025 USD in USD in USD in USD in thousands thousands thousands thousands Revenues 322,477 225,875 165,990 116,117 Tax benefits 86,807 38,972 43,701 18,861 Total revenues and income 409,284 264,847 209,691 134,978 Cost of sales () (92,780) (56,484) (48,501) (29,846) Depreciation and amortization (98,106) (71,017) (47,384) (37,228) General and administrative expenses (37,081) (23,336) (18,118) (11,490) Development expenses (8,689) (5,469) (4,690) (2,905) Total operating expenses (236,656) (156,306) (118,693) (81,469) Gains from projects disposals 889 97,828 453 566 Other income (expenses), net 3,681 2,374 (519) 3,479 Operating profit 177,198 208,743 90,932 57,554 Finance income 20,260 8,166 11,264 1,471 Finance expenses (104,554) (82,286) (60,371) (52,083) Total finance expenses, net (84,294) (74,120) (49,107) (50,612) Profit before tax and equity loss 92,904 134,623 41,825 6,942 Share of losses of equity accounted investees (1,421) (1,645) (428) (418) Profit before income taxes 91,483 132,978 41,397 6,524 Taxes on income (22,498) (25,606) (10,220) (955) Profit for the period 68,985 107,372 31,177 5,569 Profit for the period attributed to: Owners of the Company 53,442 95,815 29,369 1,357 Non-controlling interests 15,543 11,557 1,808 4,212 68,985 107,372 31,177 5,569 Earnings per ordinary share (in USD) with a par value of NIS 0.1, attributable to owners of the parent Company: Basic earnings per share 0.39 0.80 0.21 0.01 Diluted earnings per share 0.36 0.75 0.20 0.01 Weighted average of share capital used in the calculation of earnings: Basic per share 137,294,117 119,107,985 139,430,537 119,421,246 Diluted per share 148,712,951 127,192,179 150,455,906 129,204,402 . () Excluding depreciation and amortization. Consolidated Statements of Financial Position as of June 30 December 31 2026 2025 USD in USD in Thousands Thousands Assets Current assets Cash and cash equivalents 1,163,734 528,497 Bank deposits 2,280 - Restricted cash 122,735 409,424 Trade receivables 111,799 95,118 Other receivables 149,939 62,286 Other financial assets 1,223 524 Total current assets 1,551,710 1,095,849 Non-current assets Restricted cash 133,009 130,358 Other long-term receivables 33,917 64,349 Deferred costs in respect of projects 378,466 235,615 Deferred borrowing costs 2,141 1,749 Loans to investee entities 91,852 85,131 Investments in equity accounted investees 36,027 59,310 Fixed assets, net 7,486,761 6,281,418 Intangible assets, net 318,289 303,971 Deferred taxes assets 4,223 4,692 Right-of-use asset, net 258,464 225,495 Financial assets at fair value through profit or loss 109,061 83,582 Other financial assets 58,137 58,383 Total non-current assets 8,910,347 7,534,053 Total assets 10,462,057 8,629,902 Consolidated Statements of Financial Position as of (Cont.) June 30 December 31 2026 2025 USD in USD in Thousands Thousands Liabilities and equity Current liabilities Credit and current maturities of loans from 566,257 884,120 banks and other financial institutions Trade payables 78,457 137,230 Other payables 528,706 405,741 Current maturities of debentures 186,745 173,571 Current maturities of lease liability 13,142 12,396 Other financial liabilities 9,445 16,147 Total current liabilities 1,382,752 1,629,205 Non-current liabilities Debentures 854,480 477,315 Other financial liabilities 172,810 378,303 Convertible debentures 287,992 273,801 Loans from banks and other financial institutions 4,158,696 2,981,786 Loans from non-controlling interests 82,449 86,946 Financial liabilities through profit or loss 27,511 26,946 Deferred taxes liabilities 85,751 77,688 Employee benefits 2,096 1,645 Lease liability 265,505 231,135 Deferred income related to tax equity 596,401 370,734 Asset retirement obligation 100,623 99,460 Total non-current liabilities 6,634,314 5,005,759 Total liabilities 8,017,066 6,634,964 Equity Ordinary share capital 3,961 3,711 Share premium 1,743,180 1,319,716 Capital reserves 100,113 99,311 Proceeds on account of convertible options 24,994 25,380 Accumulated profit 293,465 240,023 Equity attributable to shareholders of the Company 2,165,713 1,688,141 Non-controlling interests 279,278 306,797 Total equity 2,444,991 1,994,938 Total liabilities and equity 10,462,057 8,629,902 Consolidated Statements of Cash Flows For the six months ended June 30For the three months ended June 30 2026202520262025 USD inUSD inUSD inUSD in ThousandsThousandsThousandsThousands Cash flows for operating activities Profit for the period68,985107,37231,1775,569 Income and expenses not associated with cash flows: Depreciation and amortization98,10671,01747,38437,228Finance expenses, net85,21571,07350,51248,685Share-based compensation10,0422,9944,9411,284Taxes on income22,49825,60610,220955Tax benefits(79,764)(38,972)(39,014)(18,861)Other income (expenses), net(1,063)(2,374)688(3,479)Company’s share in losses of investee partnerships1,4211,645428418Gains from projects disposals(889)(97,828)(453)(566) 135,56633,16174,70665,664 Changes in assets and liabilities items: Change in other receivables289(4,593)(1,747)(3,737)Change in trade receivables(20,153)(20,885)(18,676)(509)Change in other payables19,63121,47023,65712,866Change in trade payables(14,161)(2,650)(20,890)(10,452) (14,394)(6,658)(17,656)(1,832) Income Tax paid(5,359)(8,673)(3,774)(7,598) Net cash from operating activities184,798125,20284,45361,803 Cash flows for investing activities Sale (Acquisition) of consolidated entities, net(14,657)33,018(14,423)(3,205)Sale of investee entities29,208-29,208-Changes in restricted cash and bank deposits, net280,8838,18653,93710Purchase, development, and construction in respect of projects(1,332,696)(658,022)(723,463)(402,160)Interest receipts ()15,5186,3348,9783,822Loans provided and Investment in investees(28,320)(26,324)(8,912)(18,894)Repayment of loans to investees22,50430,8158,134-Payments on account of acquisition of consolidated company(7,874)(7,447)(7,874)-Purchase of long-term financial assets measured at fair value through profit or loss, net(24,999)(3,247)(22,735)(207)Net cash used in investing activities(1,060,433)(616,687)(677,150)(420,634) Consolidated Statements of Cash Flows (Cont.) For the six months ended June 30For the three months ended June 30 2026202520262025 USD inUSD inUSD inUSD in ThousandsThousandsThousandsThousands Cash flows from financing activities Receipt of loans from banks and other financial institutions1,387,800674,684609,635531,106Repayment of loans from banks and other financial institutions(601,846)(223,361)(71,388)(114,439)Interest paid ()(61,825)(40,387)(26,256)(18,089)Issuance of debentures345,933125,838345,933-Issuance of convertible debentures-114,685--Repayment of debentures-(21,994)--Dividends and distributions by subsidiaries to non-controlling interests(37,842)(8,682)(37,842)(8,682)Proceeds from investments by tax-equity investors121,068---Repayment of tax-equity investment(5,837)(10,952)(3,850)(10,952)Deferred borrowing costs(51,410)(46,618)(39,636)(11,419)Receipt of loans from non-controlling interests14182-182Repayment of loans from non-controlling interests(3,539)-(3,539)-Increase in holding rights of consolidated entity-(1,392)--Issuance of shares419,317---Exercise of share options35301819Repayment of lease liability(3,767)(5,803)(938)(1,745)Proceeds from investment in entities by non-controlling interest-12,799-5,067 Net cash from financing activities1,508,101569,029772,137371,048 Increase in cash and cash equivalents632,46677,544179,44012,217 Balance of cash and cash equivalents at beginning of period528,497387,427978,761449,530 Effect of exchange rate fluctuations on cash and cash equivalents2,77115,4885,53318,712 Cash and cash equivalents at end of period1,163,734480,4591,163,734480,459 () See Appendix 4 for additional information regarding the change in presentation of interest receipts and interest paid Information related to Segmental Reporting For the six months ended June 30, 2026 MENA Europe USA Total reportable segments Others Total USD in thousandsRevenues141,371 113,320 66,693 321,384 1,093 322,477Tax benefits- - 86,807 86,807 - 86,807Total revenues and income141,371 113,320 153,500 408,191 1,093 409,284 Segment adjusted EBITDA125,478 85,484 138,078 349,040 (1,400) 347,640 Reconciliations of unallocated amounts: Headquarter costs ()(33,398)Intersegment profit9Gains from projects disposals (*)(28,905)Depreciation and amortization and share-based compensation(108,148)Operating profit177,198Finance income20,260Finance expenses(104,554)Share of the losses of equity accounted investees(1,421)Profit before income taxes91,483 () Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). (*) Reconciliation between EBITDA and operating profit reflecting the realization of revaluation gains from an asset revalued in 2025. Information related to Segmental Reporting For the six months ended June 30, 2025 MENA Europe USA Total reportable segments Others Total USD in thousandsRevenues95,637 99,184 30,008 224,829 1,046 225,875 Tax benefits- - 38,972 38,972 - 38,972 Total revenues and income95,637 99,184 68,980 263,801 1,046 264,847 Segment adjusted EBITDA107,031 82,226 59,913 249,170 1,079 250,249 Reconciliations of unallocated amounts: Headquarter costs () (22,958) Intersegment profit 127 Gains from projects disposals 55,336 Depreciation and amortization and share-based compensation (74,011) Operating profit 208,743 Finance income 8,166 Finance expenses (82,286) Share of the losses of equity accounted investees (1,645) Profit before income taxes 132,978 () Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). Information related to Segmental Reporting For the three months ended June 30, 2026 MENA Europe USA Total reportable segments Others Total USD in thousandsRevenues76,869 52,259 36,160 165,288 702 165,990Tax benefits- - 43,701 43,701 - 43,701Total revenues and income76,869 52,259 79,861 208,989 702 209,691 Segment adjusted EBITDA66,703 38,900 72,044 177,647 (946) 176,701 Reconciliations of unallocated amounts: Headquarter costs ()(16,441)Gains from projects disposals (*)(17,003)Depreciation and amortization and share-based compensation(52,325)Operating profit90,932Finance income11,264Finance expenses(60,371)Share of the losses of equity accounted investees(428)Profit before income taxes41,397 () Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). (*) Reconciliation between EBITDA and operating profit reflecting the realization of revaluation gains from an asset revalued in 2025. Information related to Segmental Reporting For the three months ended June 30, 2025 MENA Europe USA Total reportable segments Others Total USD in thousandsRevenues52,770 47,800 15,330 115,900 217 116,117Tax benefits- - 18,861 18,861 - 18,861Total revenues and income52,770 47,800 34,191 134,761 217 134,978 Segment adjusted EBITDA39,014 37,563 29,364 105,941 998 106,939 Reconciliations of unallocated amounts: Headquarter costs () (11,257)Intersegment profit 21Gains from projects disposals 363Depreciation and amortization and share-based compensation (38,512)Operating profit 57,554Finance income 1,471Finance expenses (52,083)Share of the losses of equity accounted investees (418)Profit before income taxes 6,524 () Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). Appendix 2 - Reconciliations between Net Income to Adjusted EBITDA ($ thousands) For the six months For the three months ended June 30 ended June 30 2026 2025 2026 2025 Net Income 68,985 107,372 31,177 5,569 Depreciation and amortization 98,106 71,017 47,384 37,228 Share based compensation 10,042 2,994 4,941 1,284 Finance income (20,260) (8,166) (11,264) (1,471) Finance expenses 104,554 82,286 60,371 52,083 Gains from projects disposals 28,905 () (55,336) () 17,003 (*) (363) ()Share of losses of equity accounted investees 1,421 1,645 428 418 Taxes on income 22,498 25,606 10,220 955 Adjusted EBITDA 314,251 227,418 160,260 95,703 * Net profit from deconsolidation and revaluation following the partial sale of an asset (Sunlight cluster).** Contribution to Adjusted EBITDA from the sale of an additional stake in the deconsolidated asset (Sunlight cluster). For more information regarding the composition of Adjusted EBITDA, refer to the description appearing in the “Non-IFRS financial measures” section of this press release. Appendix 3 – Debentures Covenants Debentures Covenants As of June 30, 2026, the Company was in compliance with all of its financial covenants under the indenture for the Series C, D, F, G and H Debentures, based on having achieved the following in its consolidated financial results: Minimum equity The company's equity shall be maintained at no less than NIS 375 million so long as debentures F remain outstanding, NIS 1,250 million so long as debentures C and D remain outstanding, and USD 600 million so long as debentures G and H remain outstanding. As of June 30, 2026, the company’s equity amounted to NIS 7,280 million (USD 2,445 million). Net financial debt to net CAP The ratio of standalone net financial debt to net CAP shall not exceed 70% for two consecutive financial periods so long as debentures F remain outstanding and shall not exceed 65% for two consecutive financial periods so long as debentures C, D, G and H remain outstanding. As of June 30, 2026, the net financial debt to net CAP ratio, as defined above, stands at 33%. Net financial debt to EBITDA So long as debentures F remain outstanding, standalone financial debt shall not exceed NIS 10 million, and the consolidated financial debt to EBITDA ratio shall not exceed 18 for more than two consecutive financial periods. For as long as debentures C and D remain outstanding, the consolidated financial debt to EBITDA ratio shall not exceed 15 for more than two consecutive financial periods. For as long as debentures G and H remain outstanding, the consolidated financial debt to EBITDA ratio shall not exceed 17 for more than two consecutive financial periods. As of June 30, 2026, the net financial debt to EBITDA ratio, as defined above, stands at 5.5. Equity to balance sheet The standalone equity to total balance sheet ratio shall be maintained at no less than 20% ,25% and 28%, respectively, for two consecutive financial periods for as long as debentures F, debentures C and D and debentures G and H remain outstanding. As of June 30, 2026, the equity to balance sheet ratio, as defined above, stands at 57%. Appendix 4 – Change in accounting policy Until September 30, 2025, interest paid and interest received were presented within cash flows from operating activities in the Consolidated Statements of Cash Flows. In accordance with IAS 7 Statement of Cash Flows, entities are permitted to classify interest paid and interest received as operating, investing, or financing cash flows, provided that the selected classification is applied consistently from period to period. During the fourth quarter of 2025, management elected to change the classification of interest paid, including payments relating to interest rate swap (IRS) instruments to cash flows used in financing activities, and interest received to cash flows from investing activities. Management believes that this change in presentation provides a more comprehensive view of the cost of financing the Company's operations and better reflects management’s view of the financing nature of these transactions. Accordingly, comparative information has been retrospectively adjusted to reflect this change in accounting policy in the Consolidated Statements of Cash Flows, as presented below: ($ thousands) For the six months ended June 30, 2025 As reported Adjustment As adjusted Net cash from operating activities 91,149 34,053 125,202 Net cash used in investing activities (623,021) 6,334 (616,687) Net cash from financing activities 609,416 (40,387) 569,029 Increase in cash and cash equivalents 77,544 - 77,544 ($ thousands) For the three months ended June 30, 2025 As reported Adjustment As adjusted Net cash from operating activities 47,536 14,267 61,803 Net cash used in investing activities (424,456) 3,822 (420,634) Net cash from financing activities 389,137 (18,089) 371,048 Increase in cash and cash equivalents 12,217 - 12,217 Appendix 5 a) Segment information: Operational projects ($ thousands) 6 Months ended June 30 3 Months ended June 30 Operational Project Segments Installed Capacity (MW) Installed Storage (MWh) Generation (GWh) Revenues and income Segment Adjusted EBITDA1 Generation (GWh)Reported RevenueSegment Adjusted EBITDA1 202620252026202520262025202620252026202520262025MENA676947766695 141,371 95,636 92,43964,387393 37876,86952,76949,24738,637Europe1,327-1,4831,353113,32199,18485,48482,226623 649 52,260 47,800 38,90037,563USA8962,5401,013519153,49968,980138,07859,913599 310 79,860 34,191 72,04429,364Total Consolidated2,8993,4873,2622,567408,191263,800316,002206,5261,615 1,337 208,989134,760160,192105,564Unconsolidated at Share2847 Total2,9273,534 b) Operational Projects Further Detail ($ thousands) 6 Months ended June 30, 20263 Months ended June 30, 2026 Operational ProjectSegmentInstalled Capacity (MW)Installed Storage (MWh)Revenues and incomeSegment Adjusted EBITDA1Reported RevenueSegment Adjusted EBITDA1Debt balance as of June 30, 2026Ownership %2MENA WindMENA316-56,745 26,763 623,80349%MENA PVMENA36094784,626 50,106 638,05384%Total MENA 676947141,37192,43976,86949,2471,261,856 Europe WindEurope1,184-103,994 45,548 808,28565%Europe PVEurope143-9,327 6,712 71,49073%Total Europe 1,327-113,32185,48452,26038,900897,775 USA PVUSA8942,540153,499 79,860 785,440100%Total USA8942,540153,499138,07979,86072,045785,440 Total Consolidated Projects2,8993,487408,191316,002208,989160,1922,927,070 Uncons. Projects at share2847 50%Total 2,9273,534408,191316,002208,989160,1922,927,070 For the 6 month ended June 2026, EBITDA included $1.5m of compensation recognized from Bjorenberget and excluded $30m from Sunlight sale and $3m of compensation from Emek; For the 6 month ended June 2025 EBITDA exculded $42m from Sunlight saleOwnership % is calculated based on the project's share of total revenues c) Projects under construction ($ millions) Consolidated ProjectsCountryGeneration and energy storage Capacity (MW/MWh)Est. CODEst. Total Project CostTax credit benefit- Qualifying categoryTax credit benefit- Adders3Discounted Value of Tax Benefit2 Est. Total Project Cost net of tax benefitCapital Invested as of June 30, 2026Est. Equity Required (%)Equity Invested as of June 30, 2026Est. First Full Year Revenue4Est. First Full Year EBITDA4,5Ownership %1Country AcresUSA403/688Q4 2026814-855ITCDC (10%)399-419415-4366810%-10%69162-6548-50100%Co Bar 1USA258/824H2 2027-636-669ITCEC (10%)300-315336-3544270%-10%6244124-13097-102100%Co Bar 2+3USA953/0H1 20281,215-1,277PTCEC (10%)547-575668-702100%Crimson OrchardUSA120/400H1 2027319-335ITCEC (10%) + DC (10% BESS only)164-173155-1621110%-10%63427-2820-21100%Snowflake AUSA594/1,900H2 20271,397-1,469ITCEC (10%)11627-659770-8108920%-10%6159123-130101-106100%Finland BESS10Finland0/902H1 2028173-182---173-1821215%-25%1247-4934-3551%BertikowGermany0/881H1 2028187-197---187-1971020%-30%1037-3831-3250%Gecama SolarSpain227/220Q4 2026197-207---197-20715323%-28%715336-3829-3172%SestanovacCroatia23/75Q4 202635-36---35-361615%-25%1675-6100%Tapolca BessHungary0/140Q4 2621-22---21-221545% 1576-7100%Bjornberget – BESSSweden0/100Q3 202624-25---24-2518100% 183255%Israel ConstructionIsrael7/256Q3 26- Q1 2741-43---41-431620%-30%169-10568%Total Consolidated Projects 2,585/ 6,386 5,059-5,317 2,037-2,1413,022-3,1752,352 769481-505378-397 Unconsolidated Projects at share10Israel13/171Q3 2026- Q1 202735-37---35-373615%-20%366-7552%Total 2,598/ 6,557 5,094-5,354 2,037-2,1413,057-3,2122,388 805487-512383-402 d) Pre-Construction Projects (due to commence construction within 12 months of the Approval Date) ($ millions) Consolidated ProjectsCountryGeneration and energy storage Capacity (MW/MWh)Est. CODEst. Total Project CostTax Credit Benefit Est. Total Project Cost net of tax benefitCapital Invested as of June 30, 2026Est. Equity Required (%)Equity Invested as of June 30, 2026Est. First Full Year Revenue4Est. First Full Year EBITDA4,5Ownership %1Qualifying CategoryAdders3Discounted Value of Tax Benefit2Co Bar 4+5USA0/3,176H1 20281,044-1,098ITCEC (10%) + DC (10%)604-635440-463190%-10%19124-131102-108100%NardoItaly104/8722029234-246---234-2461130%1139-4132-33100%JupiterGermany150/2,166H2 2028538-566---538-566735%795-10078-8251%KarpenRomania0/848H2 2028-H1 2029154-162---154-162325%-35%331-3326-28100%KajoFinland0/542H1 2028106-111---106-111020%025-2618-1951%Ohad HV storage9Israel0/675H2 2028117-123---117-1231520%1595100%Neot Smadar HV storage9Israel0/675H1 2029115-121---115-121520%573100% ($ millions) Additional Pre-Construction ProjectsMW DeploymentMW/MWh Est. Total Project CostTax Credit BenefitDiscounted Value of Tax Benefit2Est. Total Project Cost net of tax benefitCapital Invested as of June 30, 2026Est. Equity Required (%)Equity Invested as of June 30 2026Est. First Full Year Revenue4Est. First Full Year EBITDA4,5Ownership %1202720282029Qualifying CategoryAdders3United States128/0184/0255/0883-929ITCDC (10%) & EC (10%)8439-462444-4675310%-20%5361-6548-50100%Europe0/3160/208-94-99---94-99330%-100%320-2115-1687%MENA5/52686/356-301-316---301-3161420%-40%1459-6221-2295%Total Consolidated Projects133/842270/564255/03,586-3,771 1,043-1,0972,543-2,674131 131470-495358-378 Unconsolidated Projects at share100/260/7-5---5115%-20%11156%Total Pre-Construction912MW +10,393MWh3,591-3,776 1,043-1,0972,548-2,679132 132471-496359-379 1) The legal ownership share for all U.S. projects is 90%, but Enlight invests 100% of the equity in the project and entitled to 100% of the project distributions until full repayment of Enlight's capital plus a preferred return 2) Value of tax benefits under the IRA: The PTC value is estimated based on the project’s expected annual production and a yearly CPI indexation of 2%, discounted by 8% to COD. In assessing the value of the ITC, a step-up adjustment was made to reflect the full value of the tax credits, thus lowering net construction costs and enhancing the valuation and return of the project. The actual value attributed to tax benefits in a tax equity transaction may differ from the value presented, subject to the structure of the transaction and prevailing market conditions. 3) The Energy Community (EC) Adder provides extra credits for renewable energy projects in areas impacted by fossil fuel reliance or economic transition. The Domestic Content (DC) Adder rewards projects using U.S.-manufactured components, promoting local job creation and supply chain growth 4) Revenue and EBITDA for the first year of U.S. projects as presented above do not include income from tax benefits 5) EBITDA is a non-IFRS financial measure. This figure represents consolidated EBITDA for the project and excludes the share of project distributions to tax equity partners, as well as ITC and PTC proceeds. These components of the tax equity transaction may differ from project to project, are subject to market conditions and commercial terms agreed upon reaching financial close 6) The required equity during construction is estimated at 10% and is expected to decrease to 0% at COD 7) Gecama Solar’s debt is held under Gecama Wind. As of June 30, 2026, the solar project had $41m USD drawn 8) Rustic hills 1+2 - DC (10%) + EC (10%); Coggon - DC (10%); Gemstone - DC (10%); 9) Two high voltage projects with total capacity of 1,350MWh. Estimated revenue for the first 5 years is $14-15m million per year. From year 6, the projects will move to a deregulated market, with revenue expected to be $55 million per year 10) All numbers, beside equity invested, reflects Enlight share only 11) In the previous quarter, the Snowflake A BESS project was presented as expected to be eligible for the Domestic Content (“DC”) Adder. The project will not meet the applicable requirements for the DC adder. However, the removal of the DC adder is offset by significant savings capital expenditure of the new alternative equipment resulting in a negligible impact on the project’s economics e) Additional information on tax equity investments Tax equity investmentTax equity partner's share of project tax credits, cash flows, and taxable income($ millions) ProjectsEst. Total Project CostUpfront tax equity investmentTax credit proceeds during the project's operation ("pay-go")Share of ITC/PTC tax credit allocated to tax equity partnerShare of taxable income initial periodDuration of initial period for share of taxable income (years)Share in project cash flow initial period (second period)Duration of initial period for share in project cash flow (years)Atrisco PV36919855ConfidentialConfidentialConfidential17.5% (5%)10Atrisco BESS458266-ConfidentialConfidentialConfidential23% (7%)5Quail Ranch2741311899%99%1010% (5%)10Roadrunner6213375599%99%5-1010%-12% (5%)10 Apex financing was structured as a sale and leaseback and therefore not included in the table above Appendix 6 – cash and cash equivalents ($ thousands) June 30, 2026Cash and Cash Equivalents: Enlight Renewable Energy Ltd, Enlight EU Energies Kft and Enlight Renewable LLC excluding subsidiaries (“Topco”) 876,801Subsidiaries 286,933Deposits: Short term deposits 2,280Restricted Cash: Projects under construction 122,735Reserves, including debt service, performance obligations and others 133,009Total Cash 1,421,758 Appendix 7 – Corporate level (TopCo) debt ($ thousands)June 30, 2026Debentures: Debentures1,041,225Convertible debentures287,992Loans from banks and other financial institutions: Credit and short-term loans from banks and other financial institutions67,665Loans from banks and other financial institutions116,659Total corporate level debt1,513,541 Including current maturities of debentures in the amount of 186,745 Appendix 8 – Functional Currency Conversion Rates: The financial statements of each of the Company’s subsidiaries were prepared in the currency of the main economic environment in which it operates (hereinafter: the “Functional Currency”). For the purpose of consolidating the financial statements, results and financial position of each of the Group’s member companies are translated into the Israeli shekel (“NIS”), which is the Company’s Functional Currency. The Group’s consolidated financial statements are presented in U.S. dollars (“USD”). FX Rates to USD: Date of the financial statements: EuroNISAs of 30th June 2026 1.140.34As of 30th June 2025 1.130.28 Average for the 3 months period ended: June 2026 1.160.34June 2025 1.170.30 A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4e9351f7-7d30-4523-aa37-c0f12939ee6e
	Saved 2026-08-04 11:42 1mo ago Published 2026-08-04 06:36 1mo ago	Planet Fitness čelí žalobě po slabém růstu členství Planet Fitness po slabém růstu členství a snížení výhledu tržeb i upravené EBITDA čelí žalobě kvůli cenným papírům. Akcie 7. května 2026 spadly o 31 %. PLNT Planet Fitness	FMP Stock News	72
Original source text A securities fraud class action lawsuit has been filed on behalf of Planet Fitness investors after its stock dropped over 31% relating to Planet Fitness's failed marketing campaign that alienated the company's core market, casual gym-goers, and led to disappointing membership growth during the key Q1 sign-up period. , /PRNewswire/ -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Planet Fitness, Inc. (NYSE:PLNT) and certain of the Company's senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws. If you invested in Planet Fitness, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/planet-fitness-class-action-lawsuit. Key Details of the Planet Fitness ($PLNT) Class Action Lawsuit: Lead Plaintiff Deadline: September 14, 2026 Alleged Misconduct: Securities fraud relating to Planet Fitness's failed marketing campaign that led to disappointing membership growth during the key Q1 sign-up period Stock Drop: May 7, 2026 – 31% Stock Drop Court: U.S. District Court for the District of New Hampshire Take Action: Contact BFA Law to discuss your rights Investors have until September 14, 2026, to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Planet Fitness common stock. The class action is pending in the U.S. District Court for the District of New Hampshire. It is captioned Matsunaga v. Planet Fitness, Inc., et al., No. 26-cv-00576. Why is Planet Fitness Being Sued for Securities Fraud? Planet Fitness is a large franchisor and operator of fitness centers across the United States. The company aims to offer a fitness experience in a non-intimidating environment, which it calls the Judgement Free Zone. The complaint alleges that throughout the relevant period, Planet Fitness misrepresented the success of its marketing campaign to focus on "fitness-minded" members. For instance, Planet Fitness told investors that it "continue[d] to lean into our 'we are all strong on this Planet' campaign." Planet Fitness also stated that "[b]ecause this campaign resonated so strongly last year, we extended it into 2026." In truth, Planet Fitness's marketing campaign alienated fitness beginners and more casual gym-goers, which traditionally had been the company's focus and would be forced to restructure its marketing strategy. This caused the company to halt planned increases which its sales projections were premised on. Why did Planet Fitness's Stock Drop? On May 7, 2026, Planet Fitness released its Q1 2026 financial results. The company announced disappointing membership growth and cut 2026 revenue growth guidance from approximately 9% to about 7% and adjusted EBITDA growth guidance from roughly 10% to approximately 6%. During the same-day earnings call, the company stated that its marketing "may have pivoted too far" as the company "shift[ed] from [its] lighthearted approachable tone" to one that "increased penetration with the fitness-minded." As such it announced that, "we are pausing the planned national Black Card price increase pending a broader pricing review." This news caused the price of Planet Fitness stock to decline $19.95 per share, or 31%, from a closing price of $63.96 per share on May 6, 2026, to $44.01 per share on May 7, 2026. Click here for more information: https://www.bfalaw.com/cases/planet-fitness-class-action-lawsuit. What Can You Do? If you invested in Planet Fitness, you may have legal options and are encouraged to submit your information to the firm. All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses. Submit your information by visiting: https://www.bfalaw.com/cases/planet-fitness-class-action-lawsuit Why Bleichmar Fonti & Auld LLP? BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named "Elite Trial Lawyers" by the National Law Journal, "Litigation Stars" by Benchmark Litigation, among the top "500 Leading Plaintiff Financial Lawyers" by Lawdragon, "Titans of the Plaintiffs' Bar" by Law360 and "SuperLawyers" by Thomson Reuters. Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff's securities litigation law firm, with clients noting: "[t]here is no better service provider in the practice area," "[t]he interest of the client is always front and center," and "[t]here isn't a better firm in this space." One testimonial described the firm as "nimble and entrepreneurial," with a "relentless focus on adding value for clients." Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd. For more information about BFA and its attorneys, please visit https://www.bfalaw.com. https://www.bfalaw.com/cases/planet-fitness-class-action-lawsuit Attorney advertising. Past results do not guarantee future outcomes. SOURCE Bleichmar Fonti & Auld LLP
	Saved 2026-08-04 11:40 1mo ago Published 2026-08-04 07:30 1mo ago	Albany International zvýšila tržby a upravenou EBITDA na dvouleté maximum Albany International ve 2. čtvrtletí zvýšila čisté tržby na 329,5 mil. USD a upravená EBITDA vzrostla o 11,5 % na 57,8 mil. USD, nejvyšší za dva roky. Zisk na akcii stoupl na 0,61 USD z 0,31 USD. AIN Albany International Corporation	FMP Stock News	92
Original source text PORTSMOUTH, N.H.--(BUSINESS WIRE)--Albany International Corp. (NYSE:AIN) today reported operating results for its second quarter of 2026, which ended June 30, 2026. Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, “Our second-quarter performance delivered the strongest Adjusted EBITDA we have achieved in the past two years and grew 11.5% year-over-year, despite modestly lower-than-expected revenue due to several discrete factors. This result reflects the progress we have made to build a more nimble company and underscores the strength of our operating model, our focus on profitable growth, and the dedication of the Albany team." Kleveland continued, “In Engineered Composites, we are seeing the benefits of a refined operating model centered on our innovative technologies, which enable lighter-weight, more durable solutions for customers across commercial aerospace, defense, and space applications. Our recent participation at the Farnborough International Airshow reinforced the value of our business, as leading OEMs and government stakeholders engaged with us to explore solutions enabled by our innovative material science. In Machine Clothing, we are applying that same focus on innovation to expand opportunities for our high-value, performance-driven products across a broader range of uses.” Consolidated Results The Company’s net revenues were $329.5 million in the second quarter of 2026, compared to $311.4 million in the prior year. The increase was primarily driven by higher volume in the Engineered Composites business, offset by some end-market softness in Machine Clothing along with downtime related to an equipment failure in the Machine Clothing business. Gross profit of $107.9 million in the second quarter of 2026 was 10.7% higher than $97.5 million reported for the same period of 2025, as a result of cost controls in Machine Clothing and a favorable mix of aerospace and defense programs in the Engineered Composites business. Selling, general, and administrative expenses were $56.1 million in the second quarter of 2026, compared to $58.5 million in the same period of 2025, driven primarily by cost containment initiatives. Operating income was $32.1 million, compared to $22.3 million in the prior year, an increase of 44.3%, primarily driven by stronger gross profit and cost containment initiatives. The effective tax rate for the quarter was 32.0% compared to a 31.3% effective tax rate in the second quarter of 2025. The net income attributable to the Company was $17.4 million, or $0.61 per share on a basic and diluted basis, compared to $9.2 million, or $0.31 per share in the second quarter of 2025. Adjusted diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.82 per share, compared to $0.57 per share for the same period of last year. Adjusted EBITDA (a non-GAAP measure) was $57.8 million, compared to $51.9 million in the second quarter of 2025, an increase of 11.5%, due to stronger revenue and operating profit. Adjusted EBITDA margin was 17.6% and 16.7% in the prior year, up 90 basis points as a result of stronger contribution from Engineered Composites. Will Station, Albany International’s Chief Financial Officer, said, “We are pleased with our second-quarter performance, as disciplined execution and a more focused operating model drove meaningful year-over-year improvement in profitability. As we look to the balance of the year, we remain well positioned to maintain our growth trajectory. In Engineered Composites, we expect continued strength as multiple programs scale and we benefit from our focus on quality of earnings, while in Machine Clothing, we remain focused on execution and margin stability as we manage a fluid demand environment across the geographies we serve.” Machine Clothing Machine Clothing's net revenues decreased 2.4% after adjusting for currency translation, primarily driven by cyclical declines in the Americas and machine downtime in that region. Machine Clothing’s adjusted EBITDA margin was 28.0%, compared to 28.9% in the second quarter of 2025. The margin decline is primarily impacted by foreign currency impacts related to a weaker U.S. dollar. On a constant currency basis, margins were up slightly at 29.0% despite lower volumes, driven by synergies and efficiency gains across the network. Engineered Composites Engineered Composites net revenues increased 14.2% after adjusting for currency translation, driven by strength across commercial and defense programs, most notably on the commercial side within the LEAP program, and on the defense side under the CH-53K and missile programs. Adjusted EBITDA margin was 13.3%, compared to 8.5% in the second quarter of 2025. The increase in margin was driven by the continued focus on quality of earnings and the scaling of more profitable programs. Capital Allocation Balance Sheet Capital expenditures were $11.9 million, compared to $14.9 million in the second quarter of 2025, and were driven primarily by facility optimizations. Research and development expenses totaled $11.7 million, compared to $12.6 million in the second quarter of 2025, consistent with the Company’s commitment to advancing proprietary technologies and supporting long-term growth in both Machine Clothing and Engineered Composites. Albany ended the quarter with cash and cash equivalents of $77.3 million and total debt of $450.7 million, resulting in a net debt position of $373.3 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders. Outlook for the Third Quarter of 2026 Consolidated net revenue between $320 million and $330 million Machine Clothing net revenue between $165 million and $170 million Engineered Composite net revenue between $155 million and $160 million Adjusted EPS between $0.60 and $0.70 Third-quarter effective tax rate of 31.5% Second-Quarter 2026 Results Conference Call/Webcast The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Tuesday, August 4, 2026. Interested parties are encouraged to listen to the live webcast via the Company’s Investor Relations website at investors.albint.com or by registering via the link here. The event can also be accessed by dialing +1 (833) 461-5787 and using the Meeting ID: 487 159 842. An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Tuesday, August 4, 2026. ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net revenues $ 329,482 $ 311,399 $ 640,815 $ 600,173 Cost of goods sold 221,581 213,892 433,120 406,180 Gross profit 107,901 97,507 207,695 193,993 Selling, general, and administrative expenses 56,068 58,502 114,367 112,314 Technical and research expenses 11,722 12,552 24,679 24,448 Restructuring expenses, net 7,973 4,183 11,138 6,698 Operating income 32,138 22,270 57,511 50,533 Interest expense, net 6,068 5,150 11,535 8,805 Other expense/(income), net 39 3,534 (3,154 ) 4,517 Income before income taxes 26,031 13,586 49,130 37,211 Income tax expense 8,327 4,254 15,977 10,530 Net income 17,704 9,332 33,153 26,681 Net income attributable to the noncontrolling interest 290 149 458 143 Net income attributable to the Company $ 17,414 $ 9,183 $ 32,695 $ 26,538 Earnings per share attributable to Company shareholders - Basic $ 0.61 $ 0.31 $ 1.15 $ 0.87 Earnings per share attributable to Company shareholders - Diluted $ 0.61 $ 0.31 $ 1.14 $ 0.87 Shares of the Company used in computing earnings per share: Basic 28,361 29,928 28,341 30,373 Diluted 28,588 30,090 28,568 30,535 Dividends declared per Class A share $ 0.28 $ 0.27 $ 0.56 $ 0.54 ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 77,349 $ 112,350 Accounts receivable, net 252,133 235,084 Contract assets, net 77,287 87,102 Inventories 146,158 121,589 Income taxes prepaid and receivable 41,191 43,937 Prepaid expenses and other current assets 40,402 34,990 Assets held for sale 306,722 293,783 Total current assets $ 941,242 $ 928,835 Property, plant and equipment, net 467,424 482,568 Intangibles, net 19,667 21,428 Goodwill 160,552 162,507 Deferred income taxes 66,319 68,499 Other assets 56,161 54,872 Total assets $ 1,711,365 $ 1,718,709 Liabilities and Shareholders' Equity Accounts payable $ 75,075 $ 64,499 Accrued liabilities 133,829 139,385 Income taxes payable 24,524 35,090 Liabilities held for sale 187,108 203,323 Total current liabilities 420,536 442,297 Long-term debt 450,669 455,663 Other noncurrent liabilities 85,983 86,850 Deferred income taxes 2,088 1,797 Total liabilities 959,276 986,607 Commitments and Contingencies Shareholders' Equity: Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 41,056,929 issued in 2026 and 40,989,106 in 2025 41 41 Additional paid in capital 464,148 460,472 Retained earnings 993,170 976,373 Accumulated items of other comprehensive income: Translation adjustments (121,743 ) (119,008 ) Pension and postretirement liability adjustments (23,065 ) (23,911 ) Derivative valuation adjustment 131 (619 ) Treasury stock (Class A), at cost; 12,685,782 shares in 2026 and 12,685,782 in 2025 (566,993 ) (567,139 ) Total shareholders' equity 745,689 726,209 Noncontrolling interest 6,400 5,893 Total equity 752,089 732,102 Total liabilities and shareholders' equity $ 1,711,365 $ 1,718,709 ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 33,153 $ 26,681 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 32,853 40,085 Amortization 1,294 2,957 Change in deferred taxes 2,179 (2,761 ) Loss/(gain) on disposal of property, plant and equipment 324 (66 ) Non-cash interest expense 515 513 Compensation and benefits paid or payable in Class A Common Stock 5,009 3,654 Provision/(recovery) for credit losses from uncollected receivables and contract assets (101 ) 1,021 Foreign currency remeasurement loss/(gain) on intercompany loans (3,788 ) 7,171 Changes in operating assets and liabilities that provided/(used) cash: Accounts receivable (12,899 ) (4,490 ) Contract assets (8,778 ) (15,329 ) Inventories (22,912 ) (8,179 ) Prepaid expenses and other current assets (5,195 ) (2,565 ) Income taxes prepaid and receivable 2,769 743 Accounts payable 14,488 26,878 Accrued liabilities (23,259 ) (23,314 ) Income taxes payable (11,034 ) (17,191 ) Noncurrent receivables — (201 ) Other noncurrent liabilities 288 (2,927 ) Other, net (1,914 ) 3,719 Net cash provided by operating activities 2,992 34,833 Cash flows from investing activities: Purchases of property, plant and equipment (21,170 ) (29,526 ) Purchased software (12 ) (1,005 ) Proceeds received from sale of assets — 3,243 Proceeds from sale of investment 1,660 — Net cash used in investing activities (19,522 ) (27,288 ) Cash flows from financing activities: Proceeds from borrowings 83,000 171,995 Repayment of borrowings (85,000 ) (58,046 ) Purchase of Treasury shares — (120,448 ) Taxes paid in lieu of share issuance (1,333 ) (1,316 ) Dividends paid (15,867 ) (16,693 ) Net cash used in financing activities (19,200 ) (24,508 ) Effect of exchange rate changes on cash and cash equivalents 729 8,369 Decrease in cash and cash equivalents (35,001 ) (8,594 ) Cash and cash equivalents at beginning of period 112,350 115,283 Cash and cash equivalents at end of period $ 77,349 $ 106,689 Supplemental disclosure of cash flow information: Cash paid for interest, net $ 12,451 $ 10,710 Cash paid for income taxes $ 23,056 $ 26,278 The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure: (in thousands, except percentages) Net revenues as reported, Q2 2026 (Decrease)/ increase due to changes in currency translation rates Q2 2026 revenues on same basis as Q2 2025 currency translation rates Net revenues as reported, Q2 2025 % Change compared to Q2 2025, excluding currency rate effects Machine Clothing $ 178,710 $ 2,137 $ 176,573 $ 180,926 (2.4 )% Albany Engineered Composites 150,772 1,824 148,948 130,473 14.2 % Consolidated total $ 329,482 $ 3,961 $ 325,521 $ 311,399 4.5 % (in thousands, except percentages) Net revenues as reported, YTD 2026 (Decrease)/ increase due to changes in currency translation rates YTD 2026 revenues on same basis as 2025 currency translation rates Net revenues as reported, YTD 2025 % Change compared to 2025, excluding currency rate effects Machine Clothing $ 344,662 $ 8,279 $ 336,383 $ 355,623 (5.4 )% Albany Engineered Composites 296,153 4,959 291,194 244,550 19.1 % Consolidated total $ 640,815 $ 13,238 $ 627,577 $ 600,173 4.6 % The following table presents Gross profit and Gross profit margin: (in thousands, except percentages) Gross profit, Q2 2026 Gross profit margin, Q2 2026 Gross profit, Q2 2025 Gross profit margin, Q2 2025 Machine Clothing $ 80,947 45.3 % $ 83,759 46.3 % Albany Engineered Composites 26,954 17.9 % 13,748 10.5 % Consolidated total $ 107,901 32.7 % $ 97,507 31.3 % Reconciliation of Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods have been calculated as follows. Three months ended June 30, 2026 (in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 34,705 $ 11,429 $ (28,430 ) $ 17,704 Interest expense/(income), net — — 6,068 6,068 Income tax expense — — 8,327 8,327 Depreciation and amortization expense 8,422 8,561 35 17,018 EBITDA (non-GAAP) 43,127 19,990 (14,000 ) 49,117 Restructuring costs and other 6,389 — 1,584 7,973 Foreign currency revaluation (gains)/losses 503 175 (521 ) 157 Strategic review and other transition expenses 20 109 739 868 Pre-tax loss/(income) attributable to noncontrolling interest — (289 ) — (289 ) Adjusted EBITDA (non-GAAP) $ 50,039 $ 19,985 $ (12,198 ) $ 57,826 Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 28.0 % 13.3 % — 17.6 % Three months ended June 30, 2025 (in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 37,702 $ (2,674 ) $ (25,696 ) $ 9,332 Interest expense/(income), net — — 5,150 5,150 Income tax expense — — 4,254 4,254 Depreciation and amortization expense 7,973 13,455 323 21,751 EBITDA (non-GAAP) 45,675 10,781 (15,969 ) 40,487 Restructuring costs and other 3,015 520 (918 ) 2,617 Foreign currency revaluation (gains)/losses 3,467 21 5,449 8,937 Strategic review and other transition expenses — 28 — 28 Pre-tax (income) attributable to noncontrolling interest 41 (228 ) — (187 ) Adjusted EBITDA (non-GAAP) $ 52,198 $ 11,122 $ (11,438 ) $ 51,882 Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 28.9 % 8.5 % — 16.7 % Six months ended June 30, 2026 (in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 66,657 $ 20,027 $ (53,531 ) $ 33,153 Interest expense/(income), net — — 11,535 11,535 Income tax expense — — 15,977 15,977 Depreciation and amortization expense 16,724 17,350 73 34,147 EBITDA (non-GAAP) 83,381 37,377 (25,946 ) 94,812 Restructuring costs and other 9,065 — 2,073 11,138 Foreign currency revaluation (gains)/losses 85 (41 ) (2,631 ) (2,587 ) Strategic review and other transition expenses 541 109 2,493 3,143 Pre-tax (income) attributable to noncontrolling interest — (520 ) — (520 ) Adjusted EBITDA (non-GAAP) $ 93,072 $ 36,925 $ (24,011 ) $ 105,986 Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 27.0 % 12.5 % — 16.5 % Six months ended June 30, 2025 (in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 76,133 $ (1,058 ) $ (48,394 ) $ 26,681 Interest expense/(income), net — — 8,805 8,805 Income tax expense — — 10,530 10,530 Depreciation and amortization expense 15,679 26,750 613 43,042 EBITDA (non-GAAP) 91,812 25,692 (28,446 ) 89,058 Restructuring costs and other 4,617 1,688 (918 ) 5,387 Foreign currency revaluation (gains)/losses 5,159 (144 ) 8,508 13,523 Strategic review and other transition expenses 182 (412 ) 40 (190 ) Pre-tax (income) attributable to noncontrolling interest 120 (299 ) — (179 ) Adjusted EBITDA (non-GAAP) $ 101,890 $ 26,525 $ (20,816 ) $ 107,599 Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 28.7 % 10.8 % — 17.9 % The following table presents the reconciliation of Machine Clothing's Adjusted EBITDA Margin to Adjusted EBITDA Margin excluding the effect of changes in currency translation rates, a non-GAAP measure: (in thousands, except percentages) As reported, Q2 2026 (Decrease)/ increase due to changes in currency translation rates Q2 2026 on same basis as Q2 2025 currency translation rates As reported, Q2 2025 Machine Clothing Net revenues $ 178,710 $ 2,137 $ 176,573 $ 180,926 Machine Clothing Adjusted EBITDA (non-GAAP) 50,039 (1,112 ) 51,151 52,198 Adjusted EBITDA Margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 28.0 % 29.0 % 28.9 % Per share impact of the adjustments to earnings per share are as follows: Three months ended June 30, 2026 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 7,973 $ 2,551 $ 5,422 $ 0.19 Foreign currency revaluation (gains)/losses 157 50 107 — Strategic review and other transition expenses 868 278 590 0.02 Three months ended June 30, 2025 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 2,617 $ 845 $ 1,772 $ 0.06 Foreign currency revaluation (gains)/losses 8,937 2,887 6,050 0.20 Strategic review and other transition expenses 28 9 19 0.00 Six months ended June 30, 2026 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 11,138 $ 3,620 $ 7,518 $ 0.26 Foreign currency revaluation (gains)/losses (2,587 ) (841 ) (1,746 ) (0.06 ) Strategic review and other transition expenses 3,143 1,021 2,122 0.07 Six months ended June 30, 2025 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 5,387 $ 1,740 $ 3,647 $ 0.12 Foreign currency revaluation (gains)/losses 13,523 4,368 9,155 0.30 Strategic review and other transition expenses (190 ) (61 ) (129 ) (0.01 ) The following table provides a reconciliation of Earnings per share attributable to the Company shareholders - Diluted (GAAP) to Adjusted earnings per share attributable to the Company shareholders - Diluted (non-GAAP): Three months ended June 30, Six months ended June 30, Per share amounts (Diluted) 2026 2025 2026 2025 Earnings per share attributable to Company shareholders - Diluted (GAAP) $ 0.61 $ 0.31 $ 1.14 $ 0.87 Adjustments, after tax: Restructuring costs and other 0.19 0.06 0.26 0.12 Foreign currency revaluation (gains)/losses — 0.20 (0.06 ) 0.30 Strategic review and other transition expenses 0.02 — 0.07 (0.01 ) Adjusted earnings per share attributable to Company shareholders - Diluted (non-GAAP) $ 0.82 $ 0.57 $ 1.41 $ 1.28 The calculations of net debt are as follows: (in thousands) June 30, 2026 December 31, 2025 June 30, 2025 Long-term debt 450,669 455,663 444,686 Total debt 450,669 455,663 444,686 Cash and cash equivalents 77,349 112,350 106,689 Net debt (non-GAAP) $ 373,320 $ 343,313 $ 337,997 Free cash flow is defined as GAAP "Net cash provided by operating activities" in a period less "Purchases of property, plant and equipment" and "Purchased software" in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net cash provided by operating activities $ (2,651 ) $ 32,714 $ 2,992 $ 34,833 Purchases of property, plant and equipment (11,880 ) (13,929 ) (21,170 ) (29,526 ) Purchased software (12 ) (1,005 ) (12 ) (1,005 ) Free cash flow $ (14,543 ) $ 17,780 $ (18,190 ) $ 4,302 About Albany International Corp. Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, employs approximately 5,700 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com. Non-GAAP Measures This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; adjusted net revenues; Adjusted Gross profit/(loss); Adjusted Operating income/(loss);EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; Adjusted Net Income; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance. Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These current year revenues converted at prior year rates are then compared to the U.S. dollar amount as reported in the prior period. EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues. Adjusted Net Income is a supplemental measure of our performance that is not required by, or presented in accordance with U.S. GAAP. The company defines Adjusted Net Income to exclude costs related to the review of strategic alternatives for its structures assembly business, which could include a potential sale of that portion of the business. Such excluded adjustments to profitability to future contracts do not consist of items that are considered normal or recurring in the course of continued business operations. The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results. The Company’s Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted EPS may not be comparable to similarly titled measures of other companies. Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Forward-Looking Statements This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2026 and in future years; expectations in 2026 and in future periods of revenues, Adjusted Net Revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Net Income, Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements. Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases. More News From Albany International Corp.
	Saved 2026-08-04 11:38 1mo ago Published 2026-08-04 07:00 1mo ago	Broadridge zvýšila tržby, upravený EPS i dividendu Broadridge za fiskální rok 2026 zvýšila opakované tržby o 8 % a upravený zisk na akcii (EPS) o 12 % na 9,60 USD. Zároveň zvedá roční dividendu o 12 % na 4,36 USD a pro rok 2027 čeká růst opakovaných tržeb o 6–8 %. BR Broadridge Financial Solutions	FMP Stock News	96
Original source text Fiscal Year 2026 Recurring revenues grew 8% on a reported and constant currency basis Diluted EPS was $9.60 and Adjusted EPS grew 12% to $9.60 Closed sales rose to $305 million Raising annual dividend by 12% to $4.36, 20th consecutive annual dividend increase Fiscal year 2027 guidance calls for 6-8% Recurring revenue growth constant currency and 8-12% Adjusted EPS growth , /PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the fourth quarter and fiscal year 2026. Results compared with the same period last year were as follows: Summary Financial Results Fourth Quarter Fiscal Year Dollars in millions, except per share data 2026 2025 Change 2026 2025 Change Recurring revenues $1,542 $1,424 8 % $4,878 $4,508 8 % Constant currency growth (Non-GAAP) 8 % 8 % Total revenues $2,220 $2,065 7 % $7,477 $6,889 9 % Operating income $546 $499 10 % $1,301 $1,189 9 % Margin 24.6 % 24.1 % 17.4 % 17.3 % Adjusted Operating income (Non-GAAP) $598 $558 7 % $1,535 $1,411 9 % Margin (Non-GAAP) 26.9 % 27.0 % 20.5 % 20.5 % Diluted EPS $3.44 $3.16 9 % $9.60 $7.10 35 % Adjusted EPS (Non-GAAP) $3.82 $3.55 8 % $9.60 $8.55 12 % Closed sales $158 $114 39 % $305 $288 6 % "Broadridge is delivering strong results today while positioning our company for an exciting digital, agentic, and tokenized future," said Tim Gokey, Broadridge's CEO. "Fiscal year 2026 Recurring revenue growth constant currency was 8%, Adjusted EPS grew 12%, and Closed sales topped $305 million. Strong Free cash flow conversion of 110% helped drive record share repurchases. As a result, we achieved our three-year Recurring revenue and Adjusted EPS growth objectives for the fifth consecutive cycle. "We are building the infrastructure for the markets of tomorrow," Mr. Gokey continued. "We are enabling Governance solutions for tokenized assets, reinventing shareholder engagement, and digitizing communications. We are transforming collateral management and integrating tokenized assets into our Wealth and Capital Markets platforms. Across Broadridge, we are leaning into Agentic AI to drive growth and productivity. "Our fiscal year 2027 guidance calls for another year of strong financial performance, with 6-8% Recurring revenue growth constant currency, 8-12% Adjusted EPS growth, Free cash flow conversion greater than 100%, and Closed sales of $290-330 million. I'm also pleased to announce that our Board has approved a 12% increase in our annual dividend, marking the fourteenth double-digit increase in the past fifteen years," Mr. Gokey concluded. Fiscal Year 2027 Financial Guidance Recurring revenue growth constant currency (Non-GAAP) 6 - 8% Adjusted Operating income margin (Non-GAAP) ~21% Adjusted Earnings per share growth (Non-GAAP) 8 - 12% Free cash flow conversion (Non-GAAP) 100%+ Closed sales $290 - $330 million Financial Results for Fourth Quarter Fiscal Year 2026 compared to Fourth Quarter Fiscal Year 2025 Total revenues increased 7% to $2,220 million from $2,065 million. Recurring revenues increased $119 million, or 8%, to $1,542 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, driven by organic growth in Investor Communication Solutions ("ICS") and Global Technology and Operations ("GTO") and acquisitions in ICS and GTO. Event-driven revenues decreased $8 million, or 10%, to $71 million, primarily due to lower mutual fund proxy revenues. Distribution revenues increased $44 million, or 8%, to $606 million, driven primarily by postage rate increases of approximately $32 million. Operating income was $546 million, an increase of $48 million, or 10%. Operating income margin increased to 24.6%, compared to 24.1% for the prior year period. Adjusted Operating income was $598 million, an increase of $40 million, or 7%. Adjusted Operating income margin was 26.9% compared to 27.0% for the prior year period. Interest expense, net was flat at $27 million, compared to the prior year period. The effective tax rate was 23.7% compared to 20.6% in the prior year period. The change in effective tax rate for the three months ended June 30, 2026 was primarily driven by a decrease in discrete tax benefits. Net earnings increased 6% to $398 million and Adjusted Net earnings increased 5% to $442 million. Diluted earnings per share increased 9% to $3.44, compared to $3.16 in the prior year period, and Adjusted earnings per share increased 8% to $3.82, compared to $3.55 in the prior year period. Segment and Other Results for Fourth Quarter Fiscal Year 2026 compared to Fourth Quarter Fiscal Year 2025 ICS Total revenues were $1,732 million, an increase of $132 million, or 8%. Recurring revenues increased $96 million, or 10%, to $1,055 million. Recurring revenue growth constant currency (Non-GAAP) was 10%, driven by 6pts of Internal Growth, 3pts of Net New Business, and 1pt from acquisitions. By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows: Regulatory rose 14% and 14%, respectively. Equity revenue position growth was 14% and Mutual fund/ETF position growth was 7%. Data-driven fund solutions rose 7% and 7%, respectively, driven by growth in data and analytics products and the acquisitions of Acolin Group Holdco Limited ("Acolin") and LDI MAP, LLC ("iJoin"). Issuer rose 8% and 8%, respectively, driven by growth in disclosure solutions and shareholder engagement solutions. Customer communications rose 1% and 1%, respectively, driven by the acquisition of Signal Agency Limited ("Signal"). Event-driven revenues decreased $8 million, or 10%, to $71 million, from lower mutual fund proxy revenues. Distribution revenues increased $44 million, or 8%, to $606 million, driven primarily by postage rate increases of approximately $32 million. Earnings before income taxes increased by $40 million, or 8%, to $531 million, driven by higher Recurring revenues and Distribution revenues. Operating expenses rose 8%, or $91 million, to $1,201 million driven by higher distribution expenses, volume-related expenses and the impact of acquisitions and investments. Pre-tax margins were flat at 30.6%. GTO Recurring revenues were $488 million, an increase of $23 million, or 5%. Recurring revenue growth constant currency (Non-GAAP) was 5%, driven by organic growth and the acquisition of CQG, Inc. ("CQG"). By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows: Capital Markets rose 8% and 7%, respectively, primarily driven by 4pts of organic growth and 3pts from the acquisition of CQG. Wealth and Investment Management rose 1% and 1%, respectively. The benefit of higher trading volumes was offset by a 4pt impact from lower software term license revenue. Earnings before income taxes were $68 million, an increase of $34 million, or 99%, driven by higher revenue and lower expenses. Pre-tax margins increased to 13.8% from 7.3%. Corporate and Other Loss before income taxes increased by $24 million, primarily due to a non-cash Loss on Digital Assets of $11 million and higher technology spending, including the impact of investments. Financial Results for Fiscal Year 2026 compared to the Fiscal Year 2025 Total revenues increased 9% to $7,477 million from $6,889 million. Recurring revenues increased $370 million, or 8%, to $4,878 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, driven by organic growth and acquisitions in ICS and GTO. Event-driven revenues increased $29 million, or 9%, to $348 million, driven by higher equity and other communications. Distribution revenues increased $189 million, or 9%, to $2,251 million, primarily driven by postage rate increases of approximately $123 million and higher volumes. Operating income was $1,301 million, an increase of $112 million, or 9%. Operating income margin increased to 17.4%, compared to 17.3% for the prior year period. Adjusted Operating income was $1,535 million, an increase of $124 million, or 9%. Adjusted Operating income margin rose slightly to 20.5%. The combination of higher distribution revenue and the impact of lower rates on float income negatively impacted margins by 40 basis points. Interest expense, net was $100 million, a decrease of $23 million, primarily due to lower average borrowings and lower borrowing costs. The effective tax rate was 22.2% compared to 20.7% in the prior year period. The change in effective tax rate for the twelve months ended June 30, 2026 was primarily driven by an increase in pre-tax income and a decrease in total discrete tax benefits. The decrease in discrete tax benefits was primarily driven by a decrease in the excess tax benefits associated with stock-based compensation. Net earnings increased 34% to $1,124 million and Adjusted Net earnings increased 11% to $1,124 million. Diluted earnings per share increased 35% to $9.60, compared to $7.10 in the prior year period, and Adjusted earnings per share increased 12% to $9.60, compared to $8.55 in the prior year period. Segment and Other Results for Fiscal Year 2026 compared to Fiscal Year 2025 ICS Total revenues were $5,561 million, an increase of $448 million, or 9%. Recurring revenues increased $230 million, or 8%, to $2,962 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, driven by 7pts of organic growth. By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows: Regulatory rose 12% and 12%, respectively. Equity revenue position growth was 12% and Mutual fund/ETF position growth was 6%. Data-driven fund solutions rose 4% and 4%, respectively, driven by growth in data and analytics products, and the acquisitions of Acolin and iJoin. Issuer rose 8% and 8%, respectively, driven by growth in shareholder engagement solutions and disclosure solutions. Customer communications rose 5% and 5%, respectively, driven by growth in digital and print revenues, as well as the acquisition of Signal. Event-driven revenues increased $29 million, or 9%, to $348 million, driven by higher equity and other communications. Distribution revenues increased $189 million, or 9%, to $2,251 million, primarily driven by postage rate increases of approximately $123 million and higher volumes. Earnings before income taxes increased by $49 million, or 5%, to $1,104 million. The earnings benefit from higher Recurring revenue and Event-driven revenue was partially offset by higher Operating expenses. Operating expenses rose 10%, or $398 million, to $4,457 million, driven by distribution expenses, other volume-related expenses and the impact of acquisitions. Pre-tax margins decreased to 19.8% from 20.6%. GTO Recurring revenues were $1,916 million, an increase of $140 million, or 8%. Recurring revenue growth constant currency (Non-GAAP) was 7%, driven by 4pts of organic growth and 2pts from the acquisitions of Kyndryl's Securities Industry Services business ("SIS") and CQG. By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows: Capital Markets rose 6% and 5%, respectively, primarily driven by 4pts of revenue from new sales and 1pt from the acquisition of CQG. Wealth and Investment Management rose 11% and 10%, respectively, driven by 5pts of organic growth and 5pts from the acquisition of SIS. Earnings before income taxes were $298 million, an increase of $96 million, or 48%, as higher revenues more than offset higher expenses, including the impact of the SIS and CQG acquisitions. Pre-tax margins increased to 15.5% from 11.3%. Corporate and Other Earnings before income taxes were $44 million compared to a Loss of $197 million in the prior year period. The increased Earnings before income taxes was primarily due to the non-cash Gains on Digital Assets of $227 million and a $23 million decline in Interest expense, net which more than offset higher technology spending, including the impact of investments. Dividend Declaration and Increase On August 3, 2026, Broadridge's Board of Directors (the "Board") declared a quarterly dividend of $1.09 per share payable on October 5, 2026 to stockholders of record on September 3, 2026. This declaration reflects the Board's approval of a 12% increase in the annual dividend from $3.90 to $4.36 per share, subject to the discretion of the Board to declare quarterly dividends. Share Repurchase Plan Authorization On August 3, 2026, the Board authorized a new share repurchase program under which Broadridge may repurchase up to $1.5 billion of its outstanding common stock. This authorization replaces the 3.5 million shares remaining under the existing Board repurchase authorization. The share repurchase program has no expiration date and may be suspended, modified, or discontinued at any time at the discretion of the Board. Repurchases under the program may be made from time to time in open market transactions, privately negotiated transactions, transactions pursuant to Rule 10b5-1 trading arrangements, or other transactions permitted by applicable securities laws and regulations. The timing, number, and value of shares repurchased will depend on market conditions, the market price of Broadridge's common stock, available liquidity, capital allocation priorities, applicable legal requirements, and other factors considered relevant by management and the Board. Earnings Conference Call An analyst conference call will be held today, August 4, 2026 at 8:30 a.m. ET. A live webcast of the call will be available to the public on a listen-only basis. To listen to the live event and access the slide presentation, visit Broadridge's Investor Relations website at www.broadridge-ir.com prior to the start of the webcast. To listen to the call, investors may also dial 1-877-328-2502 within the United States and international callers may dial 1-412-317-5419. A replay of the webcast will be available and can be accessed in the same manner as the live webcast at the Broadridge Investor Relations site. Through August 11, 2026, the recording will also be available by dialing 1-855-669-9658 within the United States or 1-412-317-0088 for international callers, using passcode 1307113 for either dial-in number. Explanation and Reconciliation of the Company's Use of Non-GAAP Financial Measures The Company's results in this press release are presented in accordance with U.S. GAAP except where otherwise noted. In certain circumstances, results have been presented that are not generally accepted accounting principles measures ("Non-GAAP"). These Non-GAAP measures are Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share, Free cash flow, and Recurring revenue growth constant currency. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results. The Company believes our Non-GAAP financial measures help investors understand how management plans, measures and evaluates the Company's business performance. Management believes that Non-GAAP measures provide consistency in its financial reporting and facilitates investors' understanding of the Company's operating results and trends by providing an additional basis for comparison. Management uses these Non-GAAP financial measures to, among other things, evaluate our ongoing operations, and for internal planning and forecasting purposes. In addition, and as a consequence of the importance of these Non-GAAP financial measures in managing our business, the Company's Compensation Committee of the Board of Directors incorporates Non-GAAP financial measures in the evaluation process for determining management compensation. Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Earnings and Adjusted Earnings Per Share These Non-GAAP measures are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items the exclusion of which management believes provides insight regarding our ongoing operating performance. Depending on the period presented, these adjusted measures exclude the impact of certain of the following items: Amortization of Acquired Intangibles and Purchased Intellectual Property, which represent non-cash amortization expenses associated with the Company's acquisition activities. Acquisition and Integration Costs, which represent certain transaction and integration costs associated with the Company's acquisition activities. Restructuring and Other Related Costs, which represent severance and other costs related to the closure of substantially all operations of a production facility. Gains or Losses on Digital Assets, which represent the unrealized gains or losses, as applicable, related to the mark to market of the Company's digital asset holdings and the realized and unrealized gains or losses, as applicable, associated with the Canton Digital Asset Treasury transaction. Investment Gain represents a non-operating, non-cash gain on a privately held investment. We exclude Acquisition and Integration Costs, Restructuring and Other Related Costs, Gains or Losses on Digital Assets, and Investment Gain from our Adjusted Operating income (as applicable) and other adjusted earnings measures because excluding such information provides us with an understanding of the results from the primary operations of our business and enhances comparability across fiscal reporting periods, as these items are not reflective of our underlying operations or performance. We also exclude the impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, as these non-cash amounts are significantly impacted by the timing and size of individual acquisitions and do not factor into the Company's capital allocation decisions, management compensation metrics or multi-year objectives. Furthermore, management believes that this adjustment enables better comparison of our results as Amortization of Acquired Intangibles and Purchased Intellectual Property will not recur in future periods once such intangible assets have been fully amortized. Although we exclude Amortization of Acquired Intangibles and Purchased Intellectual Property from our adjusted earnings measures, our management believes that it is important for investors to understand that these intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Free cash flow and Free cash flow conversion In addition to the Non-GAAP financial measures discussed above, we provide Free cash flow information because we consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated that could be used for dividends, share repurchases, strategic acquisitions, other investments, as well as debt servicing. Free cash flow is a Non-GAAP financial measure and is defined by the Company as Net cash flows provided by operating activities less Capital expenditures as well as Software purchases and capitalized internal use software. Free cash flow conversion is calculated as Free cash flow divided by Adjusted Net earnings for the given period. Recurring revenue growth constant currency As a multi-national company, we are subject to variability of our reported U.S. dollar results due to changes in foreign currency exchange rates. The exclusion of the impact of foreign currency exchange fluctuations from our Recurring revenue growth, or what we refer to as amounts expressed "on a constant currency basis," is a Non-GAAP measure. We believe that excluding the impact of foreign currency exchange fluctuations from our Recurring revenue growth provides additional information that enables enhanced comparison to prior periods. Changes in Recurring revenue growth expressed on a constant currency basis are presented excluding the impact of foreign currency exchange fluctuations. To present this information, current period results for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the corresponding period of the comparative year, rather than at the actual average exchange rates in effect during the current fiscal year. Forward-Looking Statements This press release and other written or oral statements made from time to time by representatives of Broadridge may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by the use of words such as "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be," "on track," and other words of similar meaning, are forward-looking statements. In particular, information appearing in the "Fiscal Year 2027 Financial Guidance" section and statements about our three-year objectives are forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors described and discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended June 30, 2026 (the "2026 Annual Report"), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2026 Annual Report. These risks include: changes in laws and regulations affecting Broadridge's clients or the services provided by Broadridge; Broadridge's reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge's services with favorable pricing terms; a material security breach or cybersecurity attack affecting the information of Broadridge's clients; declines in participation and activity in the securities markets; the failure of Broadridge's key service providers to provide the anticipated levels of service; a disaster or other significant slowdown or failure of Broadridge's systems or error in the performance of Broadridge's services; overall market, economic and geopolitical conditions and their impact on the securities markets; the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients; Broadridge's failure to keep pace with changes in technology and demands of its clients; competitive conditions; Broadridge's ability to attract and retain key personnel; and the impact of new acquisitions and divestitures. There may be other factors that may cause our actual results to differ materially from the forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition. Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law. About Broadridge Broadridge Financial Solutions (NYSE: BR) is a global technology leader with trusted expertise and transformative technology, helping clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. Our technology and operations platforms process and generate over 8 billion communications annually and underpin the daily average trading of over $18 trillion in tokenized and traditional securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing approximately 16,000 associates in 28 countries. For more information about us, please visit www.broadridge.com. Contact Information Investors [email protected] Media [email protected] Condensed Consolidated Statements of Earnings (Unaudited) In millions, except per share amounts Three Months Ended June 30, Twelve Months Ended June 30, 2026 2025 2026 2025 Revenues $ 2,219.9 $ 2,065.4 $ 7,476.8 $ 6,889.1 Operating expenses: Cost of revenues 1,367.0 1,295.6 5,100.7 4,752.3 Selling, general and administrative expenses 306.6 271.2 1,075.5 948.2 Total operating expenses 1,673.6 1,566.8 6,176.2 5,700.6 Operating income 546.2 498.6 1,300.6 1,188.6 Interest expense, net (26.9) (26.6) (99.9) (122.7) Other non-operating income (expenses), net 2.5 (0.5) 245.2 (7.1) Earnings before income taxes 521.9 471.5 1,445.8 1,058.7 Provision for income taxes 123.9 97.3 321.6 219.2 Net earnings $ 398.0 $ 374.2 $ 1,124.3 $ 839.5 Basic earnings per share $ 3.46 $ 3.19 $ 9.67 $ 7.17 Diluted earnings per share $ 3.44 $ 3.16 $ 9.60 $ 7.10 Weighted-average shares outstanding: Basic 115.0 117.4 116.3 117.1 Diluted 115.6 118.3 117.1 118.3 Amounts may not sum due to rounding. Condensed Consolidated Balance Sheets (Unaudited) In millions, except per share amounts June 30, 2026 June 30, 2025 Assets Current assets: Cash and cash equivalents $ 402.9 $ 561.5 Accounts receivable, net of allowance for doubtful accounts of $13.2 and $12.5, respectively 1,129.4 1,077.1 Other current assets 215.8 178.5 Total current assets 1,748.1 1,817.1 Property, plant and equipment, net 174.3 170.1 Goodwill 3,787.8 3,609.6 Intangible assets, net 1,199.9 1,277.4 Deferred client conversion and start-up costs 819.3 842.9 Other non-current assets 1,215.9 827.9 Total assets $ 8,945.3 $ 8,545.0 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ — $ 499.3 Payables and accrued expenses 1,138.2 1,112.8 Contract liabilities 276.6 249.1 Total current liabilities 1,414.8 1,861.2 Long-term debt 3,254.6 2,753.0 Deferred taxes 387.0 261.0 Contract liabilities 312.8 429.2 Other non-current liabilities 735.5 585.5 Total liabilities 6,104.7 5,889.9 Stockholders' equity: Preferred stock: Authorized, 25.0 shares; issued and outstanding, none — — Common stock, $0.01 par value: Authorized, 650.0 shares; issued, 154.5 and 154.5 shares, respectively; outstanding, 114.0 and 117.1 shares, respectively 1.6 1.6 Additional paid-in capital 1,771.2 1,663.0 Retained earnings 4,553.6 3,862.5 Treasury stock, at cost: 40.4 and 37.3 shares, respectively (3,201.7) (2,599.0) Accumulated other comprehensive income (loss) (284.1) (272.9) Total stockholders' equity 2,840.5 2,655.1 Total liabilities and stockholders' equity $ 8,945.3 $ 8,545.0 Amounts may not sum due to rounding. Condensed Consolidated Statements of Cash Flows (Unaudited) In millions Twelve Months Ended June 30, 2026 2025 Cash Flows From Operating Activities Net earnings $ 1,124.3 $ 839.5 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization 137.7 130.7 Amortization of acquired intangibles and purchased intellectual property 203.6 196.6 Amortization of other assets 167.1 170.8 Write-down of long-lived assets and related charges 5.3 14.5 Stock-based compensation expense 93.9 73.4 Deferred income taxes 105.8 (5.2) Digital assets change in fair market value (231.4) — Other (41.8) (24.4) Changes in operating assets and liabilities, net of assets and liabilities acquired: Accounts receivable, net (19.6) 31.8 Other current assets (31.5) (5.4) Payables and accrued expenses (86.5) (146.5) Contract liabilities 68.8 56.5 Other non-current assets (155.7) (148.2) Other non-current liabilities 5.9 (12.8) Net cash flows from operating activities 1,345.6 1,171.3 Cash Flows From Investing Activities Capital expenditures (67.2) (43.8) Software purchases and capitalized internal use software (45.4) (71.1) Acquisitions, net of cash acquired (282.7) (193.5) Other investing activities (56.7) (7.8) Net cash flows from investing activities (452.0) (316.2) Cash Flows From Financing Activities Debt proceeds 2,017.0 1,238.1 Debt repayments (2,015.6) (1,342.5) Dividends paid (443.5) (402.3) Purchases of Treasury stock (603.7) (134.9) Proceeds from exercise of stock options 22.3 62.3 Other financing activities (25.1) (21.6) Net cash flows from financing activities (1,048.5) (600.8) Effect of exchange rate changes on Cash and cash equivalents (3.7) 2.8 Net change in Cash and cash equivalents (158.7) 257.1 Cash and cash equivalents, beginning of period 561.5 304.4 Cash and cash equivalents, end of period $ 402.9 $ 561.5 Amounts may not sum due to rounding. Segment Results (Unaudited) In millions Three Months Ended June 30, Twelve Months Ended June 30, 2026 2025 2026 2025 Revenues Investor Communication Solutions $ 1,732.3 $ 1,600.7 $ 5,560.8 $ 5,113.0 Global Technology and Operations 487.5 464.7 1,916.0 1,776.1 Total $ 2,219.9 $ 2,065.4 $ 7,476.8 $ 6,889.1 Earnings before Income Taxes Investor Communication Solutions $ 530.8 $ 490.5 $ 1,103.5 $ 1,054.0 Global Technology and Operations 67.5 33.9 297.8 201.4 Other (76.5) (52.9) 44.5 (196.7) Total $ 521.9 $ 471.5 $ 1,445.8 $ 1,058.7 Pre-tax margins: Investor Communication Solutions 30.6 % 30.6 % 19.8 % 20.6 % Global Technology and Operations 13.8 % 7.3 % 15.5 % 11.3 % Amortization of acquired intangibles and purchased intellectual property Investor Communication Solutions $ 11.2 $ 9.8 $ 42.7 $ 42.9 Global Technology and Operations 37.1 40.2 160.9 153.7 Total $ 48.3 $ 50.0 $ 203.6 $ 196.6 Amounts may not sum due to rounding. Supplemental Reporting Detail - Additional Product Line Reporting (Unaudited) In millions Three Months Ended June 30, Twelve Months Ended June 30, 2026 2025 Change 2026 2025 Change Investor Communication Solutions Regulatory $ 589.5 $ 515.2 14 % $ 1,434.9 $ 1,280.6 12 % Data-driven fund solutions 130.1 121.9 7 % 479.5 459.2 4 % Issuer 157.9 145.9 8 % 294.8 273.2 8 % Customer communications 177.2 175.9 1 % 752.8 718.8 5 % Total ICS Recurring revenues 1,054.8 958.8 10 % 2,962.1 2,731.8 8 % Equity and other 40.1 38.2 5 % 143.5 115.5 24 % Mutual funds 31.0 40.7 (24 %) 204.6 203.8 — % Total ICS Event-driven revenues 71.1 78.9 (10 %) 348.1 319.3 9 % Distribution revenues 606.5 562.9 8 % 2,250.6 2,062.0 9 % Total ICS Revenues $ 1,732.3 $ 1,600.7 8 % $ 5,560.8 $ 5,113.0 9 % Global Technology and Operations Capital markets $ 307.1 $ 285.4 8 % $ 1,184.2 $ 1,115.3 6 % Wealth and investment management 180.5 179.3 1 % 731.8 660.8 11 % Total GTO Recurring revenues 487.5 464.7 5 % 1,916.0 1,776.1 8 % Total Revenues $ 2,219.9 $ 2,065.4 7 % $ 7,476.8 $ 6,889.1 9 % Revenues by Type Recurring revenues $ 1,542.3 $ 1,423.6 8 % $ 4,878.0 $ 4,507.9 8 % Event-driven revenues 71.1 78.9 (10 %) 348.1 319.3 9 % Distribution revenues 606.5 562.9 8 % 2,250.6 2,062.0 9 % Total Revenues $ 2,219.9 $ 2,065.4 7 % $ 7,476.8 $ 6,889.1 9 % Amounts may not sum due to rounding. Select Operating Metrics (Unaudited) In millions Three Months Ended June 30, Twelve Months Ended June 30, 2026 2025 Change 2026 2025 Change Closed sales (a) $ 158.3 $ 113.5 39 % $ 305.1 $ 287.9 6 % Position Growth (b) Equity positions 17 % 18 % 16 % 16 % Equity revenue positions 14 % 14 % 12 % 12 % Mutual fund / ETF positions 7 % 7 % 6 % 7 % Internal Trade Growth (c) 15 % 14 % 15 % 13 % Amounts may not sum due to rounding. (a) Refer to the "Results of Operations" section of Broadridge's Form 10-K for a description of Closed sales and its calculation. (b) Position Growth is comprised of "equity position growth" and "mutual fund/ETF position growth." Equity position growth measures the estimated annual change in positions eligible for equity proxy materials. Beginning in the fourth quarter of fiscal year 2025, the Company began presenting information on "equity revenue position growth". Equity revenue position growth excludes small or fractional equity positions for which the Company does not recognize revenue ("non-revenue positions"). Prior-year period comparative information for this metric is not available. Mutual fund/ETF position growth measures the estimated change in mutual fund and exchange traded fund positions eligible for interim communications. These metrics are calculated from equity proxy and mutual fund/ETF position data reported to Broadridge for the same issuers or funds in both the current and prior year periods. (c) Represents the estimated change in daily average trade volumes for clients whose contracts are linked to trade volumes and who were on Broadridge's trading platforms in both the current and prior year periods. Reconciliation of Non-GAAP to GAAP Measures (Unaudited) In millions, except per share amounts Three Months Ended June 30, Twelve Months Ended June 30, 2026 2025 2026 2025 Reconciliation of Adjusted Operating Income Operating income (GAAP) $ 546.2 $ 498.6 $ 1,300.6 $ 1,188.6 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 48.3 50.0 203.6 196.6 Acquisition and Integration Costs 3.3 7.0 17.5 18.3 Restructuring and Other Related Costs (a) — 2.0 13.2 7.4 Adjusted Operating income (Non-GAAP) $ 597.9 $ 557.6 $ 1,534.8 $ 1,410.9 Operating income margin (GAAP) 24.6 % 24.1 % 17.4 % 17.3 % Adjusted Operating income margin (Non-GAAP) 26.9 % 27.0 % 20.5 % 20.5 % Reconciliation of Adjusted Net earnings Net earnings (GAAP) $ 398.0 $ 374.2 $ 1,124.3 $ 839.5 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 48.3 50.0 203.6 196.6 Acquisition and Integration Costs 3.3 7.0 17.5 18.3 Restructuring and Other Related Costs (a) — 2.0 13.2 7.4 Gains or Losses on Digital Assets 11.3 — (227.0) — Investment Gain (7.3) (7.3) Subtotal of adjustments 55.6 59.0 (0.1) 222.3 Tax impact of adjustments (b) (12.0) (13.2) — (50.4) Adjusted Net earnings (Non-GAAP) $ 441.6 $ 420.0 $ 1,124.2 $ 1,011.5 Reconciliation of Adjusted EPS Diluted earnings per share (GAAP) $ 3.44 $ 3.16 $ 9.60 $ 7.10 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 0.42 0.42 1.74 1.66 Acquisition and Integration Costs 0.03 0.06 0.15 0.15 Restructuring and Other Related Costs (a) — 0.02 0.11 0.06 Gains or Losses on Digital Assets 0.10 — (1.94) — Investment Gain (0.06) — (0.06) — Subtotal of adjustments 0.48 0.50 — 1.88 Tax impact of adjustments (b) (0.10) (0.11) — (0.43) Adjusted earnings per share (Non-GAAP) $ 3.82 $ 3.55 $ 9.60 $ 8.55 Twelve Months Ended June 30, 2026 2025 Reconciliation of Free cash flow Net cash flows from operating activities (GAAP) $ 1,345.6 $ 1,171.3 Capital expenditures and Software purchases and capitalized internal use software (112.6) (114.9) Free cash flow (Non-GAAP) $ 1,233.0 $ 1,056.4 Adjusted Net earnings (Non-GAAP) $ 1,124.2 $ 1,011.5 Free cash flow conversion (Non-GAAP) 110 % 104 % (a) Restructuring and Other Related Costs consist of severance and other costs related to the closure of substantially all operations of a production facility. Costs incurred are not reflected in segment profit and are recorded within Corporate and Other. Actions and associated costs related to the closure were completed in the third quarter of fiscal year 2026. (b) Calculated using the GAAP effective tax rate, adjusted to exclude $0.0 million and $2.5 million of excess tax benefits associated with stock-based compensation for the three months and fiscal year ended June 30, 2026, respectively and $9.0 million and $20.5 million of excess tax benefits associated with stock-based compensation for the three months and fiscal year ended June 30, 2025, respectively. For purposes of calculating the Adjusted earnings per share, the same adjustments were made on a per share basis. Reconciliation of Recurring Revenue Growth Constant Currency Three Months Ended June 30, 2026 Investor Communication Solutions Regulatory Data- Driven Fund Solutions Issuer Customer Comms. Total Recurring revenue growth (GAAP) 14 % 7 % 8 % 1 % 10 % Impact of foreign currency exchange 0 % 0 % 0 % 0 % 0 % Recurring revenue growth constant currency (Non-GAAP) 14 % 7 % 8 % 1 % 10 % Three Months Ended June 30, 2026 Global Technology and Operations Capital Markets Wealth and Investment Management Total Recurring revenue growth (GAAP) 8 % 1 % 5 % Impact of foreign currency exchange (1 %) 0 % 0 % Recurring revenue growth constant currency (Non-GAAP) 7 % 1 % 5 % Three Months Ended June 30, 2026 Consolidated Total Recurring revenue growth (GAAP) 8 % Impact of foreign currency exchange 0 % Recurring revenue growth constant currency (Non-GAAP) 8 % Fiscal Year Ended June 30, 2026 Investor Communication Solutions Regulatory Data- Driven Fund Solutions Issuer Customer Comms. Total Recurring revenue growth (GAAP) 12 % 4 % 8 % 5 % 8 % Impact of foreign currency exchange 0 % (1 %) 0 % 0 % 0 % Recurring revenue growth constant currency (Non-GAAP) 12 % 4 % 8 % 5 % 8 % Fiscal Year Ended June 30, 2026 Global Technology and Operations Capital Markets Wealth and Investment Management Total Recurring revenue growth (GAAP) 6 % 11 % 8 % Impact of foreign currency exchange (1 %) (1 %) (1 %) Recurring revenue growth constant currency (Non-GAAP) 5 % 10 % 7 % Fiscal Year Ended June 30, 2026 Consolidated Total Recurring revenue growth (GAAP) 8 % Impact of foreign currency exchange (1 %) Recurring revenue growth constant currency (Non-GAAP) 8 % Amounts may not sum due to rounding. Fiscal Year 2027 Guidance Reconciliation of Non-GAAP to GAAP Measures Adjusted Earnings Per Share Growth, Adjusted Operating Income Margin, and Free Cash Flow Conversion FY27 Recurring revenue growth Impact of foreign currency exchange (a) (0%) - 0% Recurring revenue growth constant currency (Non-GAAP) 6 - 8% FY27 Adjusted Operating income margin (b)(e) Operating income margin % (GAAP) ~19% Adjusted Operating income margin % (Non-GAAP) ~21% FY27 Adjusted earnings per share growth rate (c)(e) Diluted earnings per share (GAAP) (4%) - 0% Adjusted earnings per share (Non-GAAP) 8 - 12% FY27 Free cash flow conversion (d) Cash flow from operating activities relative to net earnings (GAAP) 100%+ Free cash flow conversion rate (Non-GAAP) 100%+ (a) Based on forward rates as of July 2026. (b) Adjusted Operating income margin guidance (Non-GAAP) is adjusted to exclude the approximately $145 million impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, Acquisition and Integration Costs, Restructuring and Other Related Costs. (c) Adjusted earnings per share growth guidance (Non-GAAP) is adjusted to exclude the approximately $0.99 per share impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, Acquisition and Integration Costs, Restructuring and Other Related Costs, and is calculated using diluted shares outstanding. (d) Free Cash Flow conversion guidance (Non-GAAP) is adjusted to exclude approximately $118 million of Capital expenditures as well as Software purchases and capitalized internal use software. (e) Excludes Gains and Losses on Digital Assets as they are not capable of being forecasted. SOURCE Broadridge Financial Solutions, Inc.
	Saved 2026-08-04 11:37 1mo ago Published 2026-08-04 06:30 1mo ago	United Parks zvýšil tržby, čistý zisk klesl United Parks & Resorts ve 2. čtvrtletí zvýšil tržby na 483,3 mil. USD, ale čistý zisk klesl o 21 % na 63,3 mil. USD. Návštěvnost se snížila o 2,9 % na 6,1 milionu. PRKS United Parks & Resorts	FMP Stock News	92
Original source text , /PRNewswire/ -- United Parks & Resorts Inc. (NYSE: PRKS), a leading theme parks and entertainment company, today reported its financial results for the second quarter and first six months of fiscal year 2026. Second Quarter 2026 Highlights Attendance was 6.1 million guests, a decrease of approximately 0.2 million guests or 2.9% from the second quarter of 2025. Total revenue was $483.3 million, a decrease of $6.9 million or 1.4% from the second quarter of 2025. Net income was $63.3 million, a decrease of $16.8 million or 21.0% from the second quarter of 2025. Adjusted EBITDA[1] was $195.5 million, a decrease of $10.8 million or 5.2% from the second quarter of 2025. Total revenue per capita[2] increased 1.5% to $79.82 compared to the second quarter of 2025. Admission per capita[2] decreased 1.8% to $40.31 while in-park per capita spending[2] increased 5.1% to a record $39.51 compared to the second quarter of 2025. First Six Months 2026 Highlights Attendance was 9.3 million guests, a decrease of approximately 0.3 million guests or 3.6% from the first six months of 2025. Total revenue was $761.6 million, a decrease of $15.5 million or 2.0% from the first six months of 2025. Net income was $29.2 million, a decrease of $34.8 million or 54.4% from the first six months of 2025. Adjusted EBITDA[1] was $253.4 million, a decrease of $20.3 million or 7.4% from the first six months of 2025. Total revenue per capita[2] increased 1.7% to $82.11 from the first six months of 2025. Admission per capita[2] decreased 1.4% to $42.21, while in-park per capita spending[2] increased 5.1% to a record $39.90 from the first six months of 2025. Other Highlights In the second quarter, the Company repurchased approximately 3.3 million shares for an aggregate total of approximately $125 million. For the first half of the year, the Company repurchased approximately 5.9 million shares (or 12.1% of total outstanding shares)[3] for an aggregate total of approximately $217.7 million. During the second quarter of 2026, the Company came to the aid of 331 animals in need in the wild. The total number of animals the Company has helped over its history is more than 43,000. "We are pleased with the continued progress we are making across certain initiatives. Results in the second quarter were impacted, as expected, by the shift in the timing of Easter (earlier holiday meant fewer holiday days in the second quarter compared to prior year quarter) and a continued decline in international visitation. Adjusting for these impacts, attendance would have been flat for the quarter." said Marc Swanson, CEO of United Parks & Resorts Inc. "We delivered another quarter of growth in total revenue per capita, driven by continued strong in-park execution. During the quarter, we again grew in-park per capita spending to a record for the quarter." "Looking ahead, we continue to see strength in our forward indicators for Discovery Cove and our group business with advanced bookings revenue for both up double-digits versus prior year. We continued to repurchase shares in the second quarter buying approximately 3.3 million shares for nearly $125 million. These buybacks emphasize our strong cash flow generation, our longstanding commitment to returning excess cash to our shareholders and our belief that our shares are materially undervalued. While we faced first-half headwinds across international visitation, weather impacts and holiday shifts, we are fully focused on executing against our strategic priorities and driving growth in revenue, Adjusted EBITDA, and total shareholder value," continued Swanson. "Our exciting summer event lineup continues for the next several weeks as we close out the season with Red, White & BBQ at SeaWorld Orlando and SeaWorld San Antonio, Summer Spectacular at SeaWorld San Diego, and Bier Fest Brews & BBQ at both Busch Gardens Tampa Bay and Busch Gardens Williamsburg. In September, we will kick off our award-winning Halloween events, which will run through October, followed by our Christmas celebrations in November and December. These seasonal offerings continue to resonate with our guests, and we're excited to introduce new intellectual property elements to our Howl O'Scream event, something we have done very little of historically but believe represents a significant opportunity for the business. This year, we have partnered with Sony Pictures to introduce popular horror films "I Know What You Did Last Summer", and "Anaconda" to our Halloween lineup at our SeaWorld and Busch Gardens parks respectively. Early forward booking ticket sales for our Howl O' Scream events are already running ahead of last year across our parks. I want to thank all of our ambassadors for their hard work and dedicated efforts to produce these events and deliver memorable guest experiences," concluded Swanson. [1] This earnings release includes Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow which are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section and the financial statement tables for the definitions of Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow and the reconciliation of these measures for historical periods to their respective most comparable financial measures calculated in accordance with GAAP. [2] This earnings release includes key performance metrics such as total revenue per capita, admissions per capita and in-park per capita spending. See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section for definitions and further details. [3] As of February 24, 2026. Second Quarter 2026 Results In the second quarter of 2026, the Company hosted approximately 6.1 million guests, generated total revenues of $483.3 million, net income of $63.3 million and Adjusted EBITDA of $195.5 million. Attendance decreased approximately 179,000 guests when compared to the second quarter of 2025. The decrease in attendance was primarily due to an unfavorable calendar shift including the timing of the Easter holiday and a decrease in international visitation compared to the same prior year quarter. The decrease in total revenue of $6.9 million compared to the second quarter of 2025 was primarily a result of a decrease in attendance, partially offset by an increase in total revenue per capita. Admission per capita decreased primarily due to the net impact of the admissions product mix when compared to the same prior year quarter. In park per capita spending increased primarily due to higher penetration and the impact of pricing initiatives compared to the same prior year quarter. Adjusted EBITDA was negatively impacted by a decrease in total revenue and an increase in operating expenses. For the Three Months Ended June 30, Change 2026 2025 % (Unaudited, in millions, except per share and per capita amounts) Total revenues $ 483.3 $ 490.2 (1.4) % Net income $ 63.3 $ 80.1 (21.0) % Net earnings per share, diluted $ 1.34 $ 1.45 (7.6) % Adjusted EBITDA $ 195.5 $ 206.3 (5.2) % Net cash provided by operating activities $ 170.0 $ 181.2 (6.2) % Attendance 6.06 6.23 (2.9) % Total revenue per capita $ 79.82 $ 78.64 1.5 % Admission per capita $ 40.31 $ 41.03 (1.8) % In-Park per capita spending $ 39.51 $ 37.61 5.1 % First Six Months 2026 Results In the first six months of 2026, the Company hosted approximately 9.3 million guests, generated total revenues of $761.6 million, net income of $29.2 million and Adjusted EBITDA of $253.4 million. Attendance decreased approximately 350,000 guests when compared to the first six months of 2025. The decrease in attendance was primarily due to unfavorable weather conditions versus prior year, a decline in visitation from international markets, and the Easter holiday shift compared to the first six months of 2025. The decrease in total revenue of $15.5 million compared to the first six months of 2025 was primarily a result of a decrease in attendance, partially offset by an increase in total revenue per capita. Admission per capita decreased primarily due to the net impact of the admissions product mix when compared to the first six months of 2025. In park per capita spending increased primarily due to penetration and the impact of pricing initiatives compared to the first six months of 2025. Adjusted EBITDA was negatively impacted by a decrease in total revenue. For the Six Months Ended June 30, Change 2026 2025 % (Unaudited, in millions, except per share and per capita amounts) Total revenues $ 761.6 $ 777.2 (2.0) % Net income $ 29.2 $ 64.0 (54.4) % Net earnings per share, diluted $ 0.60 $ 1.15 (47.8) % Adjusted EBITDA $ 253.4 $ 273.7 (7.4) % Net cash provided by operating activities $ 236.8 $ 206.9 14.4 % Attendance 9.28 9.63 (3.6) % Total revenue per capita $ 82.11 $ 80.74 1.7 % Admission per capita $ 42.21 $ 42.79 (1.4) % In-Park per capita spending $ 39.90 $ 37.95 5.1 % Share Repurchases In the second quarter, the Company repurchased approximately 3.3 million shares for an aggregate total of approximately $125 million. For the first half of the year, the Company repurchased approximately 5.9 million shares (or 12.1% of total outstanding shares) for an aggregate total of approximately $217.7 million. Rescue Efforts In the second quarter of 2026, the Company came to the aid of 331 animals in need in the wild. The total number of animals the Company has helped over its history is more than 43,000. The Company is one of the largest marine animal rescue organizations in the world. Working in partnership with state, local and federal agencies, the Company's rescue teams are on call 24 hours a day, seven days a week, 365 days a year. Consistent with its mission to protect animals and their ecosystems, rescue teams mobilize and often travel hundreds of miles to help ill, injured, orphaned or abandoned wild animals in need of the Company's expert care, with the goal of returning them to their natural habitat. Conference Call The Company will hold a conference call today, Tuesday, August 4, 2026, at 9 a.m. Eastern Time to discuss its second quarter and first six months of fiscal 2026 financial results. The conference call will be broadcast live on the Internet and the release and conference call can be accessed via the Company's website at www.UnitedParksInvestors.com. For those unable to participate in the live webcast, a replay will be available beginning at approximately 12 p.m. Eastern Time on August 4, 2026, under the "Events & Presentations" tab of www.UnitedParksInvestors.com. A replay of the call can also be accessed telephonically from 12 p.m. Eastern Time on August 4, 2026, through 11:59 p.m. Eastern Time on August 11, 2026, by dialing (800) 770-2030 from anywhere in the U.S. or Canada, or (609) 800-9909 from international locations and entering the conference code 5841517. Statement Regarding Non-GAAP Financial Measures This earnings release and accompanying financial statement tables include several non-GAAP financial measures, including Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow are not recognized terms under GAAP, should not be considered in isolation or as a substitute for a measure of financial performance or liquidity prepared in accordance with GAAP and are not indicative of net income or loss or net cash provided by operating activities as determined under GAAP. Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company's financial performance or liquidity. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation. Management believes the presentation of Adjusted EBITDA is appropriate as it eliminates the effect of certain non-cash and other items not necessarily indicative of the Company's underlying operating performance. Management uses Adjusted EBITDA in connection with certain components of its executive compensation program. In addition, investors, lenders, financial analysts and rating agencies have historically used EBITDA-related measures in the Company's industry, along with other measures, to estimate the value of a company, to make informed investment decisions and to evaluate companies in the industry. Management believes the presentation of Covenant Adjusted EBITDA for the last twelve months is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Company's credit agreement governing its Senior Secured Credit Facilities and the indentures governing its Senior Notes and First-Priority Senior Secured Notes (collectively, the "Debt Agreements"). Covenant Adjusted EBITDA is a material component of these covenants. Management believes that Free Cash Flow is useful to investors, equity analysts and rating agencies as a liquidity measure. The Company uses Free Cash Flow to evaluate its ability to generate cash flow from business operations. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures, as it excludes certain expenditures such as mandatory debt service requirements, which are significant. Free Cash Flow is not defined by GAAP and should not be considered in isolation or as an alternative to net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP. Free Cash Flow as defined above may differ from similarly titled measures presented by other companies. This earnings release includes several key performance metrics including total revenue per capita (defined as total revenue divided by attendance), admission per capita (defined as admissions revenue divided by attendance) and in-park per capita spending (defined as food, merchandise and other revenue divided by attendance). These performance metrics are used by management to assess the operating performance of its parks on a per attendee basis and to make strategic operating decisions. Management believes the presentation of these performance metrics is useful and relevant for investors as it provides investors the ability to review financial performance in the same manner as management and provides investors with a consistent methodology to analyze revenue between periods on a per attendee basis. In addition, investors, lenders, financial analysts and rating agencies have historically used similar per-capita related performance metrics to evaluate companies in the industry. About United Parks & Resorts Inc. United Parks & Resorts Inc. (NYSE: PRKS) is a global theme park and entertainment company that owns or licenses a diverse portfolio of award-winning park brands and experiences, including SeaWorld®, Busch Gardens®, Discovery Cove, Sesame Place®, Water Country USA, Adventure Island, and Aquatica®. The Company's seven world-class brands span 13 parks in seven markets across the United States and Abu Dhabi, offering experiences that matter with exhilarating thrill and family-friendly rides, coasters, and experiences, inspiring up-close and educational presentations with wildlife, and other various special events throughout the year. In addition, the Company collectively cares for one of the largest zoological collections in the world, is a global leader in animal welfare, training, and veterinary care, and is one of the leading marine animal rescue organizations in the world with a legacy of rescuing and caring for animals that spans over 60 years, including coming to the aid of over 43,000 animals in need. To learn more, visit www.UnitedParks.com. Copies of this and other news releases as well as additional information about United Parks & Resorts Inc. can be obtained online at www.unitedparks.com. Shareholders and prospective investors can also register to automatically receive the Company's press releases, SEC filings and other notices by e-mail by registering at that website. Forward-Looking Statements In addition to historical information, this press release contains statements relating to future results (including certain projections and business trends) that are "forward-looking statements" within the meaning of the federal securities laws. The Company generally uses the words such as "might," "will," "may," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," "guidance," "targeted," "goal" and variations of such words or similar expressions in this press release and any attachment to identify forward-looking statements. All statements, other than statements of historical facts included in this press release, including statements concerning plans, objectives, goals, expectations, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, earnings guidance, business trends and other information are forward-looking statements. The forward-looking statements are not historical facts, and are based upon current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control. All expectations, beliefs, estimates and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond management's control, that could cause actual results to differ materially from the forward-looking statements contained in this press release, including among others: various factors beyond our control adversely affecting attendance and guest spending at our theme parks, including, but not limited to, weather, natural disasters, labor shortages, inflationary pressures, supply chain delays or shortages, foreign exchange rates, consumer confidence, the potential spread of travel-related health concerns including pandemics and epidemics, travel related concerns, adverse general economic related factors including increasing interest rates, economic uncertainty, and recent geopolitical events outside of the United States, and governmental actions; failure to retain and/or hire employees; a decline in discretionary consumer spending or consumer confidence, including any unfavorable impacts from Federal Reserve interest rate actions and inflation which may influence discretionary spending, unemployment or the overall economy; the ability of Hill Path Capital LP and its affiliates to significantly influence our decisions and their interests may conflict with ours or yours in the future; increased labor costs, including minimum wage increases, and employee health and welfare benefit costs; complex federal and state regulations governing the treatment of animals, which can change, and claims and lawsuits by activist groups before government regulators and in the courts; activist and other third-party groups and/or media can pressure governmental agencies, vendors, partners, guests and/or regulators, bring action in the courts or create negative publicity about us; incidents or adverse publicity concerning our theme parks, the theme park industry and/or zoological facilities; a significant portion of our revenues have historically been generated in the States of Florida, California and Virginia, and any risks affecting such markets, such as natural disasters, closures due to pandemics, severe weather and travel-related disruptions or incidents; technology interruptions or failures that impair access to our websites and/or information technology systems; cyber security risks to us or our third-party service providers, failure to maintain or protect the integrity of internal, employee or guest data, and/or failure to abide by the evolving cyber security regulatory environment; inability to compete effectively in the highly competitive theme park industry; interactions between animals and our employees and our guests at attractions at our theme parks; animal exposure to infectious disease; high fixed cost structure of theme park operations; seasonal fluctuations in operating results; changing consumer tastes and preferences; adverse litigation judgments or settlements; inability to grow our business or fund theme park capital expenditures; inability to realize the benefits of developments, restructurings, acquisitions or other strategic initiatives, and the impact of the costs associated with such activities; the effects of public health events on our business and the economy in general; unionization activities and/or labor disputes; inability to protect our intellectual property or the infringement on intellectual property rights of others; the loss of licenses and permits required to exhibit animals or the violation of laws and regulations; inability to maintain certain commercial licenses; restrictions in our debt agreements limiting flexibility in operating our business; inability to retain our current credit ratings; our leverage and interest rate risk; inadequate insurance coverage; inability to purchase or contract with third party manufacturers for rides and attractions, construction delays or impacts of supply chain disruptions on existing or new rides and attractions; tariffs or other trade restrictions; environmental regulations, expenditures and liabilities; suspension or termination of any of our business licenses, including by legislation at federal, state or local levels; delays, restrictions or inability to obtain or maintain permits; inability to remediate an identified material weakness; financial distress of strategic partners or other counterparties; actions of activist stockholders; the policies of the U.S. President and their administration or any changes to tax laws; changes or declines in our stock price, as well as the risk that securities analysts could downgrade our stock or our sector; risks associated with the Company's capital allocation plans and share repurchases, including the risk that the Company's share repurchase program could increase volatility and fail to enhance stockholder value, uncertainties and factors set forth in the section entitled "Risk Factors" in the Company's most recently available Annual Report on Form 10-K, as such risks, uncertainties and factors may be updated in the Company's periodic filings with the Securities and Exchange Commission ("SEC"). Although the Company believes that these statements are based upon reasonable assumptions, it cannot guarantee future results and readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this press release. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent of these factors' likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) the Company's strategy, which is based in part on this analysis, will be successful. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect new information or events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company's filings with the SEC (which are available from the SEC's EDGAR database at www.sec.gov and via the Company's website at www.unitedparksinvestors.com). CONTACT: Investor Relations: Matthew Stroud Investor Relations 888-410-1812 [email protected] Media: AnneMarie Iturrizaga United Parks & Resorts Inc. [email protected] UNITED PARKS & RESORTS INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) For the Three Months Ended June 30, Change For the Six Months Ended June 30, Change 2026 2025 # % 2026 2025 $ % Net revenues: Admissions $ 244,081 $ 255,740 $ (11,659) (4.6) % $ 391,584 $ 411,855 $ (20,271) (4.9) % Food, merchandise and other 239,239 234,472 4,767 2.0 % 370,030 365,306 4,724 1.3 % Total revenues 483,320 490,212 (6,892) (1.4) % 761,614 777,161 (15,547) (2.0) % Costs and expenses: Cost of food, merchandise and other revenues 38,065 37,173 892 2.4 % 59,712 60,132 (420) (0.7) % Operating expenses (exclusive of depreciation and amortization shown separately below) 215,723 204,789 10,934 5.3 % 386,965 366,059 20,906 5.7 % Selling, general and administrative expenses 66,591 64,402 2,189 3.4 % 114,659 108,539 6,120 5.6 % Severance and other separation costs(a) 45 408 (363) (89.0) % 808 408 400 98.0 % Depreciation and amortization 45,786 42,974 2,812 6.5 % 90,853 84,669 6,184 7.3 % Total costs and expenses 366,210 349,746 16,464 4.7 % 652,997 619,807 33,190 5.4 % Operating income 117,110 140,466 (23,356) (16.6) % 108,617 157,354 (48,737) (31.0) % Other expenses (income), net 17 216 (199) (92.1) % (217) 193 (410) NM Interest expense 32,394 33,951 (1,557) (4.6) % 64,129 68,058 (3,929) (5.8) % Income before income taxes 84,699 106,299 (21,600) (20.3) % 44,705 89,103 (44,398) (49.8) % Provision for income taxes 21,430 26,191 (4,761) (18.2) % 15,504 25,128 (9,624) (38.3) % Net income $ 63,269 $ 80,108 $ (16,839) (21.0) % $ 29,201 $ 63,975 $ (34,774) (54.4) % Earnings per share Earnings per share, basic $ 1.36 $ 1.46 $ 0.61 $ 1.16 Earnings per share, diluted $ 1.34 $ 1.45 $ 0.60 $ 1.15 Weighted average common shares outstanding: Basic 46,674 54,991 48,040 55,005 Diluted (b) 47,168 55,411 48,525 55,436 UNITED PARKS & RESORTS INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) For the Three Months Ended June 30, Change For the Six Months Ended June 30, Change Last Twelve Months Ended June 30, 2026 2025 # % 2026 2025 $ % 2026 Net income $ 63,269 $ 80,108 $ (16,839) (21.0) % $ 29,201 $ 63,975 $ (34,774) (54.4) % $ 133,579 Provision for income taxes 21,430 26,191 (4,761) (18.2) % 15,504 25,128 (9,624) (38.3) % 48,560 Interest expense 32,394 33,951 (1,557) (4.6) % 64,129 68,058 (3,929) (5.8) % 130,211 Depreciation and amortization 45,786 42,974 2,812 6.5 % 90,853 84,669 6,184 7.3 % 180,658 Equity-based compensation expense (c) 4,927 4,043 884 21.9 % 10,345 8,376 1,969 23.5 % 19,734 Loss on impairment or disposal of assets and certain non- cash expenses(d) 7,790 12,117 (4,327) (35.7) % 13,454 13,208 246 1.9 % 29,253 Business optimization, development and strategic initiative costs (e) 10,111 3,045 7,066 NM 16,858 4,309 12,549 NM 27,667 Certain investment costs and other taxes 103 222 (119) (53.6) % 155 225 (70) (31.1) % 1,856 Other adjusting items (f) 9,663 3,614 6,049 167.4 % 12,924 5,757 7,167 124.5 % 13,342 Adjusted EBITDA (g) $ 195,473 $ 206,265 $ (10,792) (5.2) % $ 253,423 $ 273,705 $ (20,282) (7.4) % $ 584,860 Items added back to Covenant Adjusted EBITDA as defined in the Debt Agreements: Estimated cost savings (h) 40,000 Other adjustments as defined in the Debt Agreements (i) 12,017 Covenant Adjusted EBITDA (j) $ 636,877 For the Three Months Ended June 30, Change For the Six Months Ended June 30, Change 2026 2025 # % 2026 2025 # % Net cash provided by operating activities $ 170,004 $ 181,196 $ (11,192) (6.2) % $ 236,802 $ 206,911 $ 29,891 14.4 % Capital expenditures 68,551 53,561 14,990 28.0 % 138,183 110,464 27,719 25.1 % Free Cash Flow (k) $ 101,453 $ 127,635 $ (26,182) (20.5) % $ 98,619 $ 96,447 $ 2,172 2.3 % UNITED PARKS & RESORTS INC. AND SUBSIDIARIES UNAUDITED BALANCE SHEET DATA (In thousands) As of June 30, 2026 As of December 31, 2025 Cash and cash equivalents $ 19,076 $ 99,762 Total assets $ 2,641,480 $ 2,616,274 Deferred revenue $ 211,896 $ 143,325 Long-term debt, including current maturities: Term B-3 Loans $ 1,515,307 $ 1,523,019 Revolving Credit Facility 50,000 — Senior Notes 725,000 725,000 Total long-term debt, including current maturities $ 2,290,307 $ 2,248,019 Total stockholders' deficit $ (617,021) $ (435,806) UNITED PARKS & RESORTS INC. AND SUBSIDIARIES UNAUDITED CAPITAL EXPENDITURES DATA (In thousands) For the Six Months Ended June 30, Change 2026 2025 # % Capital Expenditures: Core(l) $ 127,966 $ 97,997 $ 29,969 30.6 % Expansion/ROI projects(m) 10,217 12,467 (2,250) (18.0) % Capital expenditures, total $ 138,183 $ 110,464 $ 27,719 25.1 % UNITED PARKS & RESORTS INC. AND SUBSIDIARIES UNAUDITED OTHER DATA (In thousands, except per capita amounts) For the Three Months Ended June 30, Change For the Six Months Ended June 30, Change 2026 2025 # % 2026 2025 # % Attendance 6,055 6,234 (179) (2.9) % 9,275 9,625 (350) (3.6) % Total revenue per capita (n) $ 79.82 $ 78.64 $ 1.18 1.5 % $ 82.11 $ 80.74 $ 1.37 1.7 % Admission per capita (o) $ 40.31 $ 41.03 $ (0.72) (1.8) % $ 42.21 $ 42.79 $ (0.58) (1.4) % In-Park per capita spending (p) $ 39.51 $ 37.61 $ 1.90 5.1 % $ 39.90 $ 37.95 $ 1.95 5.1 % NM-Not meaningful. (a) Reflects restructuring and other separation costs and/or adjustments. (b) During the three and six months ended June 30, 2026, there were approximately 780 thousand and 837 thousand anti-dilutive shares excluded from the computation of diluted earnings per share, respectively. During the three and six months ended June 30, 2025, there were approximately 686 thousand and 671 thousand anti-dilutive shares excluded from the computation of diluted earnings per share, respectively. (c) Reflects non-cash equity compensation expenses and related payroll taxes associated with the grants of equity-based compensation. (d) Reflects primarily non-cash self-insurance reserve adjustments of: (i) approximately $4.6 million and $8.3 million, respectively, for the three and six months ended June 30, 2026; (ii) approximately $9.6 million for the three and six months ended June 30, 2025; and (iii) approximately $16.2 million for the twelve months ended June 30, 2026. Also includes non-cash expenses related to asset write-offs and costs related to certain rides and equipment which were removed from service. (e) For the three, six, and twelve months ended June 30, 2026, reflects business optimization, development and other strategic initiative costs primarily related to: (i) $8.8 million, $14.4 million, and $23.0 million, respectively, of other business optimization costs and strategic initiative costs and (ii) $1.3 million, $1.6 million, and $2.5 million, respectively, of third-party consulting costs. Reflects business optimization, development and other strategic initiative costs primarily related to: (i) $1.5 million and $3.0 million of third-party consulting costs for the three and six months ended June 30, 2025, respectively, and (ii) $2.2 million and $4.0 million of other business optimization costs and strategic initiative costs for the three and six months ended June 30, 2025, respectively. (f) Reflects the impact of expenses, net of insurance recoveries and adjustments including legal settlements, incurred primarily related to certain matters, which we are permitted to exclude under the credit agreement governing our Senior Secured Credit Facilities due to the unusual nature of the items. Certain amounts relating to prior period results were reclassified to conform to current period presentation. These reclassifications have not changed the results of operations of the prior period. (g) Adjusted EBITDA is defined as net income before income tax expense, interest expense, depreciation and amortization, as further adjusted to exclude certain non-cash, and other items as described above. (h) The Company's Debt Agreements permit the calculation of certain covenants to be based on Covenant Adjusted EBITDA, as defined above, for the last twelve month period further adjusted for net annualized estimated savings the Company expects to realize over the following 24 month period related to certain specified actions, including restructurings and cost savings initiatives. These estimated savings are calculated net of the amount of actual benefits realized during such period. These estimated savings are a non-GAAP Adjusted EBITDA add-back item only as defined in the Debt Agreements and does not impact the Company's reported GAAP net income. (i) The Debt Agreements permit the Company's calculation of certain covenants to be based on Covenant Adjusted EBITDA as defined above, for the last twelve-month period further adjusted for certain costs as permitted by the Debt Agreements including recruiting and retention expenses, public company compliance costs and litigation and arbitration costs, if any. (j) Covenant Adjusted EBITDA is defined in the Debt Agreements as Adjusted EBITDA for the last twelve-month period further adjusted for net annualized estimated savings among other adjustments as described in footnote (h) and (i) above. (k) Free Cash Flow is defined as net cash provided by operating activities less capital expenditures. (l) Reflects capital expenditures during the respective period for park rides, attractions and maintenance activities. (m) Reflects capital expenditures during the respective period for park expansion, new properties, revenue and/or expense return on investment ("ROI") projects. (n) Calculated as total revenues divided by attendance. (o) Calculated as admissions revenue divided by attendance. (p) Calculated as food, merchandise and other revenue divided by attendance. SOURCE United Parks and Resorts Inc.
	Saved 2026-08-04 11:36 1mo ago Published 2026-08-04 06:55 1mo ago	USA Compression zvýšila tržby i zisk ve 2. čtvrtletí USA Compression Partners vykázala ve 2. čtvrtletí tržby 342,1 mil. USD a čistý zisk 45,7 mil. USD, obojí meziročně výrazně výše. Potvrdila také celoroční výhled Adjusted EBITDA 770–800 mil. USD. USAC USA Compression Partners	FMP Stock News	95
Original source text DALLAS--(BUSINESS WIRE)--USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for second-quarter 2026. Financial Highlights Total revenues of $342.1 million for second-quarter 2026, compared to $250.1 million for second-quarter 2025. Net income was $45.7 million for second-quarter 2026, compared to $28.6 million for second-quarter 2025. Net cash provided by operating activities was $145.7 million for second-quarter 2026, compared to $124.2 million for second-quarter 2025. Adjusted EBITDA was $193.2 million for second-quarter 2026, compared to $149.5 million for second-quarter 2025. Distributable Cash Flow was $125.3 million for second-quarter 2026, compared to $89.9 million for second-quarter 2025. Distributable Cash Flow Coverage Ratio was 1.65x for second-quarter 2026, compared to 1.40x for second-quarter 2025. Announced cash distribution of $0.525 per common unit for second-quarter 2026, consistent with second-quarter 2025. Operational Highlights Average revenue per revenue-generating horsepower per month of $22.84 for second-quarter 2026, compared to $21.31 for second-quarter 2025. Average revenue-generating horsepower of 4.45 million for second-quarter 2026, compared to 3.55 million for second-quarter 2025. Average horsepower utilization of 92.0% for second-quarter 2026, compared to 94.4% for second-quarter 2025. “Second-quarter results reflect steady sequential improvement as we advance through an important integration year,” said Clint Green, President and CEO. “With our SAP platform fully operational, our combined operational organization unified and executing, and our commercial team building momentum with an integrated customer base, the foundation we are building is strong. That foundation is reflected in our multi-year commercial results – with approximately half of planned 2027 new horsepower already contracted and meaningful 2028 commitments in hand, our customers are signaling our same long-term confidence in natural gas infrastructure.” Expansion capital expenditures were $46.8 million, maintenance capital expenditures were $16.9 million, and cash interest expense, net was $47.4 million for second-quarter 2026. On July 16, 2026, the Partnership announced a second-quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution will be paid on August 7, 2026, to common unitholders of record as of the close of business on July 27, 2026. Operational and Financial Data Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Operational data: Fleet horsepower (at period end) (1) 4,952,190 4,930,737 3,858,508 Revenue-generating horsepower (at period end) (2) 4,455,148 4,439,968 3,538,668 Average revenue-generating horsepower (3) 4,447,762 4,438,366 3,551,446 Revenue-generating compression units (at period end) 6,508 6,430 4,190 Horsepower utilization (at period end) (4) 92.0 % 92.0 % 94.2 % Average horsepower utilization (for the period) (4) 92.0 % 91.9 % 94.4 % Financial data ($ in thousands, except per horsepower data): Total revenues $ 342,146 $ 331,275 $ 250,125 Average revenue per revenue-generating horsepower per month (5) $ 22.84 $ 22.73 $ 21.31 Net income $ 45,652 $ 38,342 $ 28,559 Operating income $ 100,384 $ 91,411 $ 76,608 Net cash provided by operating activities $ 145,684 $ 86,103 $ 124,244 Gross margin $ 128,285 $ 126,227 $ 92,785 Adjusted gross margin (6) $ 217,356 $ 213,373 $ 163,626 Adjusted gross margin percentage (7) 63.5 % 64.4 % 65.4 % Adjusted EBITDA (6) $ 193,232 $ 188,587 $ 149,482 Adjusted EBITDA percentage (7) 56.5 % 56.9 % 59.8 % Distributable Cash Flow (6) $ 125,345 $ 130,793 $ 89,926 Distributable Cash Flow Coverage Ratio (6) 1.65x 1.72x 1.40x (1) Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 14,985 of non-marketable horsepower for each period presented. As of June 30, 2026, we had 97,650 large horsepower on order for delivery, of which 53,650 is expected to be delivered within the next 12 months. (2) Revenue-generating horsepower is horsepower under contract for which the Partnership is billing a customer. (3) Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period. (4) Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is expected to be delivered, divided by (ii) total available horsepower less idle horsepower that is under repair. Horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.0%, 90.0%, and 91.7% at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.0%, 90.2%, and 91.9% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. (5) Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period. (6) Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below. (7) Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue. Liquidity and Long-Term Debt As of June 30, 2026, the Partnership was in compliance with all covenants under its $1.75 billion revolving credit facility. As of June 30, 2026, the Partnership had outstanding borrowings under the revolving credit facility of $1.21 billion and, after accounting for outstanding letters of credit in the amount of $2.0 million, $536.9 million of remaining unused availability, all of which was available to be drawn, inclusive of restrictions related to compliance with applicable financial covenants. As of June 30, 2026, the outstanding aggregate principal amount of the Partnership’s 7.125% senior notes due 2029 and 6.250% senior notes due 2033 was $1.00 billion and $750.0 million, respectively. Full-Year 2026 Outlook USA Compression confirms its full-year 2026 guidance as follows (in thousands): Full-Year 2026 Outlook Low High Adjusted EBITDA (1) $ 770,000 $ 800,000 Distributable Cash Flow (1) $ 480,000 $ 510,000 Capital Expenditures: Expansion capital expenditures (2) $ 230,000 $ 250,000 Maintenance capital expenditures $ 60,000 $ 70,000 Conference Call The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss second-quarter 2026 financial and operating results. The call will be broadcast live over the internet. Investors may participate by audio webcast, or if located in the U.S. or Canada, by phone. A replay will be available shortly after the call via the “Events & Presentations” page of USA Compression’s Investor Relations website. About USA Compression Partners, LP USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com. Non-GAAP Financial Measures This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio. Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes Adjusted gross margin is useful to investors as a supplemental measure of the Partnership’s operating profitability. Management uses adjusted gross margin to assess operating performance as compared to historical results, budget and forecast amounts, expected return on capital investment, and our competitors. Adjusted gross margin primarily is impacted by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume, and per-unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units, and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted gross margin, as presented, may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its cost structure. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability. Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year, and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense (benefit). The Partnership defines Adjusted EBITDA as EBITDA plus impairment of assets, impairment of goodwill, interest income on capital leases, unit-based compensation expense (benefit), severance charges and other employee costs, certain transaction expenses, loss (gain) on disposition of assets, loss on extinguishment of debt, loss (gain) on derivative instrument, amortization of capitalized SaaS implementation costs, and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess: the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure, or the historical cost basis of the Partnership’s assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure. Management believes Adjusted EBITDA provides useful information to investors because, when viewed in conjunction with the Partnership’s GAAP results and the accompanying reconciliations, it may provide a more complete assessment of the Partnership’s performance as compared to considering solely GAAP results. Management also believes that external users of the Partnership’s financial statements benefit from having access to the same financial measures that management uses to evaluate the results of the Partnership’s business. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies. Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of assets, impairment of goodwill, certain transaction expenses, severance charges and other employee costs, loss (gain) on disposition of assets, loss on extinguishment of debt, change in fair value of derivative instrument, proceeds from insurance recovery, amortization of capitalized SaaS implementation costs, and other, less distributions on Preferred Units and maintenance capital expenditures. Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Distributable Cash Flow, as presented, may not be comparable to similarly titled measures of other companies. Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors, and others to compare the cash flows that the Partnership generates (after distributions on Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions that the Partnership expects to pay its common unitholders. Distributable Cash Flow Coverage Ratio is defined as the period’s Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it permits management, investors, and others to assess the Partnership’s ability to pay distributions to common unitholders out of the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio, as presented, may not be comparable to similarly titled measures of other companies. This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership for its 2026 fiscal year. The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio. Forward-Looking Statements Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2026 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include: changes in economic conditions of the crude oil and natural gas industries, including any impact from the ongoing military conflict involving Russia and Ukraine or the conflict in the Middle East; changes in general economic conditions, including inflation, supply chain disruptions, trade tensions or tariff impacts; changes in the long-term supply of and demand for crude oil and natural gas; our ability to realize the anticipated benefits of our acquisition of J-W Power Company and J-W Energy Company (the “J-W Power Acquisition”) and to integrate the acquired assets with our existing fleet and operations; competitive conditions in the Partnership’s industry, including competition for employees in a tight labor market; changes in the availability and cost of capital, including changes to interest rates; renegotiation of material terms of customer contracts; actions taken by the Partnership’s customers, competitors, and third-party operators; operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control; the deterioration of the financial condition of the Partnership’s customers, which may result in the initiation of bankruptcy proceedings with respect to certain customers; the restrictions on the Partnership’s business that are imposed under the Partnership’s long-term debt agreements; information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems; our ability to realize the anticipated benefits of the shared services integration with Energy Transfer; the effects of existing and future laws and governmental regulations; the effects of future litigation; factors described in Part I, Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2026, as updated by Exhibit 99.1 to the Partnership’s Current Report on Form 8-K12B filed on July 6, 2026, as well as our subsequent filings with the SEC; and other factors discussed in the Partnership’s filings with the SEC. All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements. USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per unit amounts – Unaudited) Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Revenues: Contract operations $ 304,857 $ 293,509 $ 227,277 Parts and service 22,136 21,871 6,507 Related party 15,153 15,895 16,341 Total revenues 342,146 331,275 250,125 Costs and expenses: Cost of operations, exclusive of depreciation and amortization 124,790 117,902 86,499 Depreciation and amortization 89,071 87,146 70,841 Selling, general, and administrative 28,895 35,357 12,896 Loss (gain) on disposition of assets (994 ) (545 ) 39 Impairment of assets — 4 3,242 Total costs and expenses 241,762 239,864 173,517 Operating income 100,384 91,411 76,608 Other income (expense): Interest expense, net (49,258 ) (48,966 ) (47,674 ) Loss on extinguishment of debt — (1 ) — Other 6 20 16 Total other expense (49,252 ) (48,947 ) (47,658 ) Net income before income tax expense 51,132 42,464 28,950 Income tax expense 5,480 4,122 391 Net income 45,652 38,342 28,559 Less: distributions on Preferred Units — — (1,950 ) Net income attributable to common unitholders’ interests $ 45,652 $ 38,342 $ 26,609 Weighted average common units outstanding – basic 144,974 142,750 119,003 Weighted average common units outstanding – diluted 145,619 143,131 119,503 Basic and diluted net income per common unit $ 0.31 $ 0.27 $ 0.22 Distributions declared per common unit for respective periods $ 0.525 $ 0.525 $ 0.525 USA COMPRESSION PARTNERS, LP SELECTED BALANCE SHEET DATA (In thousands, except unit amounts – Unaudited) June 30, 2026 Selected Balance Sheet Data: Total assets $ 3,685,539 Long-term debt, net $ 2,942,101 Total partners’ capital $ 287,067 Common units outstanding 144,974,152 USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands — Unaudited) Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Net cash provided by operating activities $ 145,684 $ 86,103 $ 124,244 Net cash used in investing activities (34,977 ) (467,892 ) (22,354 ) Net cash provided by (used in) financing activities (115,751 ) 387,747 (101,890 ) USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED GROSS MARGIN TO GROSS MARGIN (In thousands — Unaudited) The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented: Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Total revenues $ 342,146 $ 331,275 $ 250,125 Cost of operations, exclusive of depreciation and amortization (124,790 ) (117,902 ) (86,499 ) Depreciation and amortization (89,071 ) (87,146 ) (70,841 ) Gross margin $ 128,285 $ 126,227 $ 92,785 Depreciation and amortization 89,071 87,146 70,841 Adjusted gross margin $ 217,356 $ 213,373 $ 163,626 USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (In thousands — Unaudited) The following table reconciles Adjusted EBITDA to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented: Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Net income $ 45,652 $ 38,342 $ 28,559 Interest expense, net 49,258 48,966 47,674 Depreciation and amortization 89,071 87,146 70,841 Income tax expense 5,480 4,122 391 EBITDA $ 189,461 $ 178,576 $ 147,465 Unit-based compensation expense (benefit) (1) 1,608 2,405 (1,736 ) Transaction expenses (2) 1,032 3,777 — Severance charges and other employee costs (3) 1,695 4,085 472 Loss (gain) on disposition of assets (994 ) (545 ) 39 Loss on extinguishment of debt — 1 — Amortization of capitalized SaaS implementation costs 430 284 — Impairment of assets (4) — 4 3,242 Adjusted EBITDA $ 193,232 $ 188,587 $ 149,482 Interest expense, net (49,258 ) (48,966 ) (47,674 ) Non-cash interest expense 1,843 1,829 2,231 Income tax expense (5,480 ) (4,122 ) (391 ) Non-cash income tax expense (benefit) 1,939 2,711 (39 ) Transaction expenses (1,032 ) (3,777 ) — Severance charges and other employee costs (1,695 ) (4,085 ) (472 ) Other — 398 — Changes in operating assets and liabilities 6,135 (46,472 ) 21,107 Net cash provided by operating activities $ 145,684 $ 86,103 $ 124,244 USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (Dollars in thousands — Unaudited) The following table reconciles Distributable Cash Flow to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented: Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Net income $ 45,652 $ 38,342 $ 28,559 Non-cash interest expense 1,843 1,829 2,231 Depreciation and amortization 89,071 87,146 70,841 Non-cash income tax expense (benefit) 1,939 2,711 (39 ) Unit-based compensation expense (benefit) (1) 1,608 2,405 (1,736 ) Transaction expenses (2) 1,032 3,777 — Severance charges and other employee costs (3) 1,695 4,085 472 Loss (gain) on disposition of assets (994 ) (545 ) 39 Loss on extinguishment of debt — 1 — Impairment of assets (4) — 4 3,242 Distributions on Preferred Units — — (1,950 ) Amortization of capitalized SaaS implementation costs 430 284 — Maintenance capital expenditures (5) (16,931 ) (9,246 ) (11,733 ) Distributable Cash Flow $ 125,345 $ 130,793 $ 89,926 Maintenance capital expenditures 16,931 9,246 11,733 Transaction expenses (1,032 ) (3,777 ) — Severance charges and other employee costs (1,695 ) (4,085 ) (472 ) Distributions on Preferred Units — — 1,950 Other — 398 — Changes in operating assets and liabilities 6,135 (46,472 ) 21,107 Net cash provided by operating activities $ 145,684 $ 86,103 $ 124,244 Distributable Cash Flow $ 125,345 $ 130,793 $ 89,926 Distributions for Distributable Cash Flow Coverage Ratio (6) $ 76,095 $ 76,110 $ 64,409 Distributable Cash Flow Coverage Ratio 1.65x 1.72x 1.40x (1) For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, unit-based compensation expense included $0.1 million, $0.1 million, and $0.5 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards. For the three months ended June 30, 2025, unit-based compensation expense included $1.0 million related to the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for this period. The three months ended June 30, 2025 also reflected a $2.1 million reversal of unit-based compensation expense resulting from the forfeiture of certain awards by certain former senior management. (2) Represents certain expenses related to potential and completed transactions, including the J-W Power Acquisition, and other items. The Partnership believes it is useful to investors to exclude these expenses. (3) Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services or the J-W Power Acquisition integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended June 30, 2026, severance charges and other employee costs included $1.0 million and $0.1 million related to retention and relocation payments, respectively. For the three months ended March 31, 2026, severance charges and other employee costs included $0.6 million and $0.2 million related to retention and relocation payments, respectively. For the three months ended June 30, 2025, severance charges and other employee costs included $0.2 million related to relocation payments. (4) Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows. (5) Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow. (6) Represents distributions to the holders of the Partnership’s common units as of the record date.
	Saved 2026-08-04 11:34 1mo ago Published 2026-08-04 06:30 1mo ago	Apollo hlásí rekordní zisky a dividendu Apollo oznámila za 2. čtvrtletí rekordní zisky v oblasti Asset Management a Retirement Services. Správní rada zároveň schválila dividendu ve výši 0,5625 USD na akcii. APO Apollo Global Management	FMP Stock News	92
Original source text August 04, 2026 06:30 ET \| Source: Apollo Global Management, Inc. NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the second quarter ended June 30, 2026. Marc Rowan, Chairman and Chief Executive Officer at Apollo said, “Our strong second quarter results reflect record earnings across Asset Management and Retirement Services, highlighting the quality and growing scale of our business. We are at the forefront of modernizing how private markets operate by enhancing transparency, improving liquidity, and broadening access. In a market evolving quickly with increasing demand for capital, the breadth of our origination capabilities combined with a principal mindset positions us to help shape what comes next.” Apollo issued a full detailed presentation of its second quarter ended June 30, 2026 results, which can be viewed on Apollo’s Investor Relations website at ir.apollo.com. Dividend Apollo Global Management, Inc. has declared a cash dividend of $0.5625 per share of its Common Stock for the second quarter ended June 30, 2026. This dividend will be paid on August 31, 2026 to holders of record at the close of business on August 19, 2026. The declaration and payment of dividends on the Common Stock are at the sole discretion of Apollo Global Management, Inc.’s board of directors. Apollo cannot assure its stockholders that they will receive any dividends in the future. Conference Call Apollo will host a public audio webcast on Tuesday, August 4, 2026 at 8:30 a.m. Eastern Time. During the webcast, members of Apollo’s senior management team will review Apollo’s financial results for the second quarter ended June 30, 2026. The webcast may be accessed at ir.apollo.com. For those unable to listen to the live broadcast, there will be a replay of the webcast available at the same link one hour after the event. Apollo distributes its earnings releases via its website and email distribution lists. Those interested in receiving firm updates by email can sign up for them at ir.apollo.com. About Apollo Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2026, Apollo had approximately $1.05 trillion of assets under management. To learn more, please visit www.apollo.com. Forward-Looking Statements In this press release, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo’s expectations regarding the performance of its business, its liquidity and capital resources and other non-historical statements. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this press release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, interest rate fluctuations and market conditions generally, international trade barriers, domestic or international political developments and other geopolitical events, including geopolitical tensions and hostilities, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management’s assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene’s ability to maintain or improve financial strength ratings, the impact of Athene’s reinsurers failing to meet their assumed obligations, Athene’s ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2026, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. This press release does not constitute an offer of any Apollo fund. Investor and Media Relations Contacts For investors please contact: Noah Gunn Global Head of Investor Relations Apollo Global Management, Inc. 212-822-0540 [email protected] For media inquiries please contact: Joanna Rose Global Head of Corporate Communications Apollo Global Management, Inc. 212-822-0491 [email protected]
	Saved 2026-08-04 11:34 1mo ago Published 2026-08-04 06:37 1mo ago	Apollo zvýšila výnosy z poplatků a pojištění, zisk z prodeje aktiv zpomalil Apollo ve 2. čtvrtletí zvýšila výnosy z poplatků o 25 % na 785 mil. USD a výnosy z pojištění o 7 % na 877 mil. USD. Zisk z prodeje aktiv ale klesl na 16 mil. USD. APO Apollo Global Management	FMP Stock News	86
Original source text Apollo Global Management's logo at their office in Tokyo, Japan October 20, 2025. REUTERS/Miho Uranaka Purchase Licensing Rights, opens new tab CompaniesNEW YORK, Aug 4 (Reuters) - Apollo Global Management (APO.N), opens new tab posted a rise in earnings from fees and its insurance business in the second quarter, but cashed in less on its own investments in a tougher ‌environment for asset sales, the company said on Tuesday. The New York-based company posted adjusted net income of $2.11 per share, 10% higher than the same period last year but below estimates of $2.17 per share drawn from an LSEG poll of analysts. Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here. Apollo started as a private equity firm in 1990 and has since pushed hard into credit and insurance, helping swell its total assets ⁠under management to $1.05 trillion at end-June. CEO Marc Rowan has pledged to increase transparency and liquidity for private assets as valuations have come under scrutiny, with funds struggling to sell equity stakes and investors worrying about lending standards outside traditional banks. Fee-related earnings from managing assets and arranging debt and equity deals rose 25% to $785 million, while the spread earned on insurance assets rose 7% to $877 million. Apollo said those metrics broke quarterly records, as did fees from a unit which offers direct loans and asset-backed finance. Principal investing income, which reflects profits from divestments, dipped to $16 million from $75 million in the ‌previous ⁠quarter and $47 million in the same period of 2025. Sales of assets from certain funds had been "prudently delayed", Apollo said, adding that some fees and income were lower "while market conditions are less accommodative for monetization activity". Rising interest rates have weighed on so-called exit deals in private equity in recent years, although buyout pioneer KKR (KKR.N), opens new tab ⁠last week reported a brisk quarter for such deals. Apollo's asset management arm brought in $38 billion in fresh capital in the second quarter. The company said that was driven in part by multi-asset securitization strategies, which include new vehicles ⁠pulling together different types of debt. The firm is marketing those vehicles, dubbed AMAPS, as a replacement for collateralized loan obligations. Credit products for institutional investors and its latest flagship private equity ⁠fund also attracted inflows. Wealthy individuals who have been staging a retreat from private credit this year pitched in $3 billion during the quarter, down from $4 billion in the previous three months. Reporting by Isla Binnie in New York and Arasu Kannagi Basil in Bengaluru; Editing by Devika Syamnath Our Standards: The Thomson Reuters Trust Principles., opens new tab Isla Binnie reports on how company directors and executives manage stakeholder and shareholder interests, with a focus on compensation, corporate crises, dealmaking and succession. She also covers how politics, regulation, environmental issues and the broader economy affect boardroom discussions. Isla previously covered business, politics and general news in Spain and Italy. She trained with Reuters in London and covered emerging markets debt for the International Financing Review (IFR). Basil writes stories across the U.S. finance file including banks, asset managers, payment firms, insurers, and exchange operators. He also covers initial public offerings on U.S. exchanges and venture capital funding.
	Saved 2026-08-04 11:32 1mo ago Published 2026-08-04 06:00 1mo ago	Henry Schein zvýšil tržby i výhled na celý rok 2026 Henry Schein ve 2. čtvrtletí zvýšil tržby o 6,7 % na 3,5 miliardy USD a upravený zisk na akcii na 1,27 USD. Zároveň zvýšil výhled na celý rok 2026. HSIC Henry Schein	FMP Stock News	92
Original source text MELVILLE, N.Y.--(BUSINESS WIRE)--Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of healthcare solutions to office-based dental and medical practitioners, today reported financial results for the second quarter ended June 27, 2026. “We delivered strong sales performance and margin improvement in the second quarter, driven by sustained momentum across our businesses and solid operational execution by the team," said Fred Lowery, Chief Executive Officer of Henry Schein. Share “We delivered strong sales performance and margin improvement in the second quarter, driven by sustained momentum across our businesses and solid operational execution by the team. Internal local currency sales growth accelerated compared to the first quarter, which, combined with strong gross margins and the early benefits from our value creation initiatives, drove strong earnings growth,” said Fred Lowery, Chief Executive Officer of Henry Schein. “Our first-half performance and the sustained momentum have positioned us to raise our FY2026 guidance.” “Our value creation plans remain a top focus for our team, and we are on track to achieve our goals. As we sharpen our focus, our priorities ahead are accelerating growth, simplifying our business, driving operational rigor, and further deepening our customer relationships, all of which we believe will create sustainable shareholder value,” Mr. Lowery added. Second Quarter 2026 Financial Results Total net sales for the quarter were $3.5 billion, an increase of 6.7% compared to the second quarter of 2025 and reflects 4.6% internal sales growth, 0.7% sales growth from acquisitions, and a 1.4% increase resulting from foreign currency exchange. Second quarter sales growth is detailed in Exhibit A1. Global Distribution and Value-Added Services sales for the quarter increased 6.6%, and reflects 4.5% internal sales growth, 0.6% sales growth from acquisitions, and a 1.5% increase resulting from foreign currency exchange compared with the second quarter of 2025. The main components are: Global Dental Distribution merchandise sales for the quarter increased 9.7%, and by 5.9% internal sales growth, compared with the second quarter of 2025. Global Dental Distribution equipment sales for the quarter increased 3.8%, and by 2.2% internal sales growth, compared with the second quarter of 2025. Global Medical Distribution sales for the quarter increased 4.0%, and by 3.9% internal sales growth, compared with the second quarter of 2025. Global Value-Added Services sales for the quarter increased 5.1%, and by 3.7% internal sales growth, compared with the second quarter of 2025. Global Specialty Products sales for the quarter increased 8.7%, and reflects 3.2% internal sales growth, 3.4% sales growth from acquisitions, and a 2.1% increase resulting from foreign currency exchange, compared with the second quarter of 2025. Global Technology sales for the quarter increased 8.2%, and reflects 9.1% internal sales growth,1.3% sales decrease due to a business disposal, and a 0.4% increase resulting from foreign currency exchange, compared with the second quarter of 2025. GAAP net income2 for the quarter was $94 million, or $0.82 per diluted share4, and compares with second-quarter 2025 GAAP net income of $86 million, or $0.70 per diluted share. Non-GAAP net income2 for the quarter was $145 million, or $1.27 per diluted share4, and compares with second-quarter 2025 non-GAAP net income of $135 million, or $1.10 per diluted share. Adjusted EBITDA3 for the quarter was $288 million and compares with second-quarter 2025 Adjusted EBITDA of $256 million. Year-to-Date Financial Results Total net sales for the first half of 2026 were $6.8 billion, an increase of 6.5% compared to the first half of 2025 and reflects 3.6% internal sales growth, 0.7% sales growth from acquisitions, and a 2.2% increase resulting from foreign currency exchange. Year-to-date sales growth is detailed in Exhibit A1. GAAP net income2 for the first half of 2026 was $201 million, or $1.74 per diluted share4, and compares with GAAP net income for the first half of 2025 of $196 million, or $1.58 per diluted share. Non-GAAP net income2 for the first half of 2026 was $298 million, or $2.59 per diluted share4, and compares with non-GAAP net income for the first half of 2025 of $278 million, or $2.25 per diluted share. Adjusted EBITDA3 for the first half of 2026 was $577 million, and compares with Adjusted EBITDA for the first half of 2025 of $515 million. Share Repurchases During the second quarter of 2026, the Company repurchased approximately 2.6 million shares of common stock at an average price of $76.69 per share for a total of $200 million. For the year-to-date, the Company repurchased approximately 4.2 million shares of common stock at an average price of $77.05 per share for a total of $325 million. At the end of the quarter, Henry Schein had $455 million authorized and available for future stock repurchases. 2026 Financial Guidance Henry Schein today raised its financial guidance for 2026. Guidance is for current continuing operations and does not include the impact of restructuring expenses and related costs, amortization expense of acquired intangible assets, the impairment of intangible assets, changes in contingent consideration, select implementation-related costs supporting value creation initiatives, and litigation settlements. This guidance also assumes that foreign currency exchange rates remain generally consistent with current levels. The Company’s FY2026 guidance does not include any remeasurement gains for the remainder of 2026, or any future benefits from tariff refunds. In summary, the change in financial guidance is as follows: Updated Guidance Prior Guidance 2026 non-GAAP diluted EPS4 $5.29 to $5.39 $5.23 to $5.37 2026 total sales growth 4.5% to 5.5% 3% to 5% 2026 Adjusted EBITDA growth Mid to high- single-digits Mid-single-digits Adjustments to 2026 GAAP Net Income and Diluted EPS The Company is providing guidance for 2026 diluted EPS and for 2026 Adjusted EBITDA on a non-GAAP basis, as noted above. The Company is not providing a reconciliation of its 2026 non-GAAP diluted EPS guidance to its projected 2026 diluted EPS prepared on a GAAP basis, or its 2026 Adjusted EBITDA guidance to net income prepared on a GAAP basis. This is because the Company is unable to provide without unreasonable effort an estimate of restructuring expenses and related or similar costs, including its ongoing value creation initiatives, and the corresponding tax effect, which will be included in the Company’s 2026 diluted EPS and net income, prepared on a GAAP basis. The inability to provide this reconciliation is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact and timing of related costs. Management does not believe these items are representative of the Company’s underlying business performance. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. Second-Quarter 2026 Conference Call Webcast The Company will hold a conference call to discuss second-quarter 2026 financial results today, beginning at 8:00 a.m. Eastern time. Individual investors are invited to listen to the conference call through Henry Schein’s website by visiting https://investor.henryschein.com/webcasts. In addition, a replay will be available beginning shortly after the call has ended for a period of one week. The Company will be posting slides that provide a summary of its second-quarter 2026 financial results on its website at https://investor.henryschein.com/financials/quarterly-results/ About Henry Schein, Inc. Henry Schein, Inc. (Nasdaq: HSIC) is a products, services, and technology platforms company for healthcare customers. With more than 25,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional healthcare clinics, as well as other alternate care sites. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein corporate brand products in our main distribution centers. A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 34 countries and territories. The Company's sales reached $13.2 billion in 2025, and have grown at a compound annual rate of approximately 11.0 percent since Henry Schein became a public company in 1995. For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, Instagram.com/HenrySchein, and @HenrySchein on X. Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements include total sales growth, EPS and Adjusted EBITDA guidance and are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make”, or other comparable terms. A fuller discussion of our operations, financial condition and status of litigation matters, including factors that may affect our business and future prospects, is contained in documents we file with the United States Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K, and will be contained in subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations. Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: our dependence on third parties for the manufacture and supply of our products and where we manufacture products, our dependence on third parties for raw materials or purchased components; risks relating to the achievement of our strategic growth objectives, including anticipated results of restructuring and value creation initiatives; risks related to the Strategic Partnership Agreement with KKR Hawaii Aggregator L.P. entered into in January 2025; transitions in senior company leadership (including, without limitation, the transition to our new Chief Executive Officer); our ability to develop or acquire and maintain and protect new products (particularly technology and specialty products) and services and utilize new technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies/benefits, as well as significant demands on our operations, information systems, legal, regulatory, compliance, financial and human resources functions in connection with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; adverse changes in supplier rebates or other purchasing incentives; risks related to the sale of corporate brand products; risks related to activist investors; security risks associated with our information systems and technology products and services, such as cyberattacks or other privacy or data security breaches (including the October 2023 incident); effects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; political, economic, and regulatory influences on the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers, and increases in fuel and energy costs; changes in laws and policies governing manufacturing, development and investment in territories and countries where we do business; general global and domestic macro-economic and political conditions, including inflation, deflation, recession, unemployment (and corresponding increase in under-insured populations), consumer confidence, sovereign debt levels, fluctuations in energy pricing and the value of the U.S. dollar as compared to foreign currencies and changes to other economic indicators; failure to comply with existing and future regulatory requirements, including relating to health care; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation, changes in tax rates and availability of certain tax deductions; risks related to product liability, intellectual property and other claims; risks associated with customs policies or legislative import restrictions; risks associated with disease outbreaks, epidemics, pandemics (such as the COVID-19 pandemic), or similar wide-spread public health concerns and other natural or man-made disasters; risks associated with our global operations; the threat or outbreak of war (including, without limitation, geopolitical wars), terrorism or public unrest (including, without limitation, the wars in Ukraine and Iran, the Israel-Gaza war and other unrest and threats in the Middle East and the possibility of a wider European or global conflict); changes to laws and policies governing foreign trade, tariffs and sanctions or greater restrictions on imports and exports, including changes to international trade agreements and the current imposition of (and the potential for additional) tariffs by the U.S. on numerous countries and retaliatory tariffs; supply chain disruption; litigation risks; new or unanticipated litigation developments and the status of litigation matters; our dependence on our senior management, employee hiring and retention, increases in labor costs or health care costs, and our relationships with customers, suppliers and manufacturers; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements except as required by law. Included within the press release are non-GAAP financial measures that supplement the Company’s Consolidated Statements of Income prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s actual results prepared under GAAP to exclude certain items. In the schedule attached to the press release, the non-GAAP measures have been reconciled to and should be considered together with the Consolidated Statements of Income. Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. The impact of certain items that are excluded include integration and restructuring costs, amortization of acquisition-related assets, the insurance claim recovery associated with the cybersecurity incident, changes in contingent consideration, costs associated with shareholder advisory matters and select value creation consulting costs, and litigation settlements because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate and occur on an unpredictable basis. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures. (TABLES TO FOLLOW) HENRY SCHEIN, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share and per share data) (unaudited) Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Net sales $ 3,458 $ 3,240 $ 6,826 $ 6,408 Cost of sales 2,357 2,224 4,655 4,392 Gross profit 1,101 1,016 2,171 2,016 Operating expenses: Selling, general and administrative 831 778 1,640 1,516 Depreciation and amortization 70 64 137 126 Restructuring and related costs 29 23 41 48 Operating income 171 151 353 326 Other income (expense): Interest income 8 9 15 15 Interest expense (43) (38) (82) (73) Other, net 1 (1) 1 (2) Income before taxes, equity in earnings of affiliates and noncontrolling interests 137 121 287 266 Income taxes (34) (31) (72) (66) Equity in earnings (loss) of affiliates, net of tax (1) 4 (1) 7 Net income 102 94 214 207 Less: Net income attributable to noncontrolling interests (8) (8) (13) (11) Net income attributable to Henry Schein, Inc. $ 94 $ 86 $ 201 $ 196 Earnings per share attributable to Henry Schein, Inc.: Basic $ 0.83 $ 0.71 $ 1.76 $ 1.59 Diluted $ 0.82 $ 0.70 $ 1.74 $ 1.58 Weighted-average common shares outstanding: Basic 113,451,329 121,927,867 114,194,349 122,852,702 Diluted 114,390,366 122,636,948 115,238,506 123,739,381 HENRY SCHEIN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share data) June 27, December 27, 2026 2025 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 157 $ 156 Accounts receivable, net of allowance for credit losses of $97 and $90 1,763 1,651 Inventories, net 2,059 2,002 Prepaid expenses and other 621 655 Total current assets 4,600 4,464 Property and equipment, net 618 621 Operating lease right-of-use assets 322 301 Goodwill 4,272 4,213 Other intangibles, net 965 1,018 Investments and other 604 598 Total assets $ 11,381 $ 11,215 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,135 $ 1,154 Bank credit lines 1,024 764 Current maturities of long-term debt 138 33 Operating lease liabilities 76 78 Accrued expenses: Payroll and related 307 340 Taxes 199 179 Other 609 680 Total current liabilities 3,488 3,228 Long-term debt 2,300 2,310 Deferred income taxes 153 146 Operating lease liabilities 275 251 Other liabilities 442 486 Total liabilities 6,658 6,421 Redeemable noncontrolling interests 906 895 Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value, 1,000,000 shares authorized, none outstanding - - Common stock, $0.01 par value, 480,000,000 shares authorized, 111,916,222 issued and outstanding on June 27, 2026 and 115,771,149 issued and outstanding on December 27, 2025 1 1 Additional paid-in capital 140 177 Retained earnings 3,200 3,293 Accumulated other comprehensive loss (184) (226) Total Henry Schein, Inc. stockholders' equity 3,157 3,245 Noncontrolling interests 660 654 Total stockholders' equity 3,817 3,899 Total liabilities, redeemable noncontrolling interests and stockholders' equity $ 11,381 $ 11,215 HENRY SCHEIN, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions)/(unaudited) Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Cash flows from operating activities: Net income $ 102 $ 94 $ 214 $ 207 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 84 76 165 149 Impairment charge on intangible assets - - - 1 Non-cash restructuring charges 2 2 4 3 Stock-based compensation expense 13 11 16 16 Provision for losses on trade and other accounts receivable 2 3 8 5 Benefit from deferred income taxes (10) - (8) (7) Equity in (earnings) losses of affiliates 1 (4) 1 (7) Distributions from equity affiliates 1 6 4 8 Changes in unrecognized tax benefits (3) (3) (4) (1) Other 6 (4) (21) (31) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (47) (26) (116) (100) Inventories (57) (15) (49) (29) Other current assets 4 (38) 10 37 Accounts payable and accrued expenses 144 18 (79) (94) Net cash provided by operating activities 242 120 145 157 Cash flows from investing activities: Purchases of property and equipment (30) (32) (55) (63) Payments related to equity investments and business acquisitions, net of cash acquired (6) (50) (30) (101) Proceeds from loan to affiliate 1 2 2 2 Capitalized software costs (16) (14) (30) (26) Other (14) (4) (15) (9) Net cash used in investing activities (65) (98) (128) (197) Cash flows from financing activities: Net change in bank credit lines (22) 33 261 248 Proceeds from issuance of long-term debt 87 94 144 244 Principal payments for long-term debt (11) (6) (50) (21) Debt issuance costs - (2) - (2) Proceeds from issuance of stock upon exercise of stock options 1 - 2 1 Payments for repurchases and retirement of common stock (200) (286) (325) (447) Issuance of common stock - 250 - 250 Payments for taxes related to shares withheld for employee taxes (3) (2) (12) (14) Distributions to noncontrolling shareholders (6) (14) (22) (18) Payments for contingent consideration (4) (7) (4) (19) Acquisitions of noncontrolling interests in subsidiaries (10) (4) (42) (77) Net cash provided by (used in) financing activities (168) 56 (48) 145 Effect of exchange rate changes on cash and cash equivalents 10 (60) 32 (82) Net change in cash and cash equivalents 19 18 1 23 Cash and cash equivalents, beginning of period 138 127 156 122 Cash and cash equivalents, end of period $ 157 $ 145 $ 157 $ 145 Exhibit A - Second Quarter Sales Henry Schein, Inc. 2026 Second Quarter Sales Summary (in millions) (unaudited) Q2 2026 over Q2 2025 Constant Currency Growth Q2 2026 Q2 2025 Local Internal Growth Acquisition Growth Total Constant Currency Growth Foreign Exchange Impact Total Sales Growth U.S. Distribution and Value-Added Services Merchandise $ 652 $ 602 6.5% 1.8% 8.3% 0.0% 8.3% Equipment 216 219 -1.1% 0.0% -1.1% 0.0% -1.1% Value-Added Services 51 51 1.4% 0.0% 1.4% 0.0% 1.4% Total Dental 919 872 4.3% 1.3% 5.6% 0.0% 5.6% Medical 1,027 988 3.8% 0.0% 3.8% 0.0% 3.8% Total U.S. Distribution and Value-Added Services 1,946 1,860 4.0% 0.6% 4.6% 0.0% 4.6% International Distribution and Value-Added Services Merchandise 685 616 5.4% 0.9% 6.3% 4.8% 11.1% Equipment 240 220 5.4% 0.0% 5.4% 3.3% 8.7% Value-Added Services 10 7 19.9% 5.8% 25.7% 5.6% 31.3% Total Dental 935 843 5.5% 0.8% 6.3% 4.3% 10.6% Medical 30 28 5.7% 0.0% 5.7% 6.0% 11.7% Total International Distribution and Value-Added Services 965 871 5.5% 0.7% 6.2% 4.5% 10.7% Global Distribution and Value-Added Services Global Merchandise 1,337 1,218 5.9% 1.4% 7.3% 2.4% 9.7% Global Equipment 456 439 2.2% 0.0% 2.2% 1.6% 3.8% Global Value-Added Services 61 58 3.7% 0.7% 4.4% 0.7% 5.1% Global Dental 1,854 1,715 4.9% 1.0% 5.9% 2.2% 8.1% Global Medical 1,057 1,016 3.9% 0.0% 3.9% 0.1% 4.0% Total Global Distribution and Value-Added Services 2,911 2,731 4.5% 0.6% 5.1% 1.5% 6.6% Global Specialty Products 419 386 3.2% 3.4% 6.6% 2.1% 8.7% Global Technology 181 167 9.1% -1.3% 7.8% 0.4% 8.2% Eliminations (53) (44) n/a n/a n/a n/a n/a Total Global $ 3,458 $ 3,240 4.6% 0.7% 5.3% 1.4% 6.7% Exhibit A - Year-to-Date Sales Henry Schein, Inc. 2026 Second Quarter Year-to-Date Sales Summary (in millions) (unaudited) Q2 2026 Year-to-Date over Q2 2025 Year-to-Date Constant Currency Growth Q2 2026 Q2 2025 Local Internal Growth Acquisition Growth Total Constant Currency Growth Foreign Exchange Impact Total Sales Growth U.S. Distribution and Value-Added Services Merchandise $ 1,276 $ 1,193 5.3% 1.7% 7.0% 0.0% 7.0% Equipment 410 406 1.0% 0.0% 1.0% 0.0% 1.0% Value-Added Services 99 96 3.6% 0.0% 3.6% 0.0% 3.6% Total Dental 1,785 1,695 4.2% 1.1% 5.3% 0.0% 5.3% Medical 2,070 2,018 2.5% 0.0% 2.5% 0.0% 2.5% Total U.S. Distribution and Value-Added Services 3,855 3,713 3.3% 0.5% 3.8% 0.0% 3.8% International Distribution and Value-Added Services Merchandise 1,353 1,210 3.6% 1.0% 4.6% 7.2% 11.8% Equipment 463 417 4.5% 0.0% 4.5% 6.4% 10.9% Value-Added Services 19 14 19.5% 7.5% 27.0% 8.9% 35.9% Total Dental 1,835 1,641 4.0% 0.8% 4.8% 7.0% 11.8% Medical 60 53 5.2% 0.0% 5.2% 8.6% 13.8% Total International Distribution and Value-Added Services 1,895 1,694 4.0% 0.8% 4.8% 7.0% 11.8% Global Distribution and Value-Added Services Global Merchandise 2,629 2,403 4.5% 1.3% 5.8% 3.6% 9.4% Global Equipment 873 823 2.8% 0.0% 2.8% 3.2% 6.0% Global Value-Added Services 118 110 5.6% 1.0% 6.6% 1.1% 7.7% Global Dental 3,620 3,336 4.1% 1.0% 5.1% 3.4% 8.5% Global Medical 2,130 2,071 2.6% 0.0% 2.6% 0.2% 2.8% Total Global Distribution and Value-Added Services 5,750 5,407 3.5% 0.6% 4.1% 2.2% 6.3% Global Specialty Products 816 753 2.2% 2.8% 5.0% 3.4% 8.4% Global Technology 354 329 8.0% -1.3% 6.7% 0.9% 7.6% Eliminations (94) (81) n/a n/a n/a n/a n/a Total Global $ 6,826 $ 6,408 3.6% 0.7% 4.3% 2.2% 6.5% Exhibit B Henry Schein, Inc. 2026 Second Quarter and Year-to-Date Reconciliation of reported GAAP net income and diluted EPS attributable to Henry Schein, Inc. to non-GAAP net income and diluted EPS attributable to Henry Schein, Inc. (in millions, except per share data) (unaudited) Second Quarter Year-to-Date % % 2026 2025 Growth 2026 2025 Growth Net income attributable to Henry Schein, Inc. $ 94 $ 86 9.1% $ 201 $ 196 2.7 % Diluted EPS attributable to Henry Schein, Inc. $ 0.82 $ 0.70 17.1% $ 1.74 $ 1.58 10.1 % Non-GAAP Adjustments, net of tax and attribution to noncontrolling interests Restructuring and related costs (1) $ 20 $ 16 $ 28 $ 33 Acquisition intangible amortization (2) 28 27 55 54 Cyber incident-insurance proceeds, net of third-party advisory expenses (3) - - - (15) Change in contingent consideration (4) (1) - - (2) Costs associated with shareholder advisory matters and select implementation related value creation consulting costs (5) 4 5 14 11 Litigation settlements (6) - 1 - 1 Non-GAAP adjustments to net income $ 51 $ 49 $ 97 $ 82 Non-GAAP net income attributable to Henry Schein, Inc. $ 145 $ 135 7.7% $ 298 $ 278 7.1 % Non-GAAP diluted EPS attributable to Henry Schein, Inc. $ 1.27 $ 1.10 15.5% $ 2.59 $ 2.25 15.1 % Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures. Net income growth rates are based on actual values and may not recalculate due to rounding. Amounts may not sum due to rounding. (1) Restructuring and Related Costs The following table presents details of our restructuring and related costs: Second Quarter Year-to-Date 2026 2025 2026 2025 Restructuring and related costs - pre-tax, as reported $ 29 $ 23 $ 41 $ 48 Income tax benefit (7) (5) (10) (12) Amount attributable to noncontrolling interests (2) (2) (3) (3) Restructuring and related costs, net $ 20 $ 16 $ 28 $ 33 (2) Acquisition Intangible Amortization The following table presents details of amortization of acquired intangible assets: Second Quarter Year-to-Date 2026 2025 2026 2025 Acquisition intangible amortization - pre-tax, as reported $ 46 $ 44 $ 91 $ 87 Income tax benefit (12) (11) (23) (21) Amount attributable to noncontrolling interests (6) (6) (13) (12) Acquisition intangible amortization, net $ 28 $ 27 $ 55 $ 54 (3) Represents cyber insurance proceeds, net of one time professional and other fees related to remediation of our Q4 2023 cyber incident. During Q1 2025, we received insurance proceeds of $20 million ($15 million, net of taxes) under this policy representing the remaining insurance recovery of losses related to the cyber incident. (4) Represents a change in the fair value of contingent consideration of $2 million ($1 million, net of taxes) and $1 million ($0 million, net of taxes) recorded during Q2 2026 and YTD 2026, respectively, and $2 million ($2 million, net of taxes) recorded during YTD 2025 related to certain 2023, 2024 and 2025 acquisitions. (5) Represents costs associated with shareholder advisory matters and select value creation consulting costs of $6 million ($4 million, net of taxes) and $19 million ($14 million, net of taxes) recorded during Q2 2026 and YTD 2026, respectively, and $6 million ($5 million, net of taxes) and $14 million ($11 million, net of taxes) recorded during Q2 2025 and YTD 2025, respectively. (6) Represents settlement amounts for litigation at one of our businesses during Q2 2025 and YTD 2025. Exhibit C Henry Schein, Inc. 2026 Second Quarter and Year-to-Date Reconciliation of reported GAAP net income to Adjusted EBITDA (in millions) (unaudited) Second Quarter Year-to-Date 2026 2025 2026 2025 Net income attributable to Henry Schein, Inc. (GAAP) $ 94 $ 86 $ 201 $ 196 Net income attributable to noncontrolling interests 8 8 13 11 Net income (GAAP) 102 94 214 207 Definitional adjustments: Interest income (8) (9) (15) (15) Interest expense 43 38 82 73 Income taxes 34 31 72 66 Depreciation and amortization 83 76 164 149 Non-GAAP adjustments: Restructuring and related costs 29 23 41 48 Cyber incident-insurance proceeds, net of third-party advisory expenses - - - (20) Impairment of intangible assets - - - 1 Change in contingent consideration (2) - (1) (2) Costs associated with shareholder advisory matters and select implementation related value creation consulting costs 6 6 19 14 Litigation settlements - 1 - 1 Other adjustments: Equity in earnings of affiliates, net of tax 1 (4) 1 (7) Adjusted EBITDA (non-GAAP) $ 288 $ 256 $ 577 $ 515 Adjusted EBITDA is a non-GAAP measure that we calculate in the manner reflected on Exhibit C. We define Adjusted EBITDA as net income, excluding (i) net income attributable to noncontrolling interests, (ii) interest income and expense, (iii) income taxes, (iv) depreciation and amortization, (v) restructuring and related costs, (vi) cyber incident-insurance proceeds, net of third-party advisory expenses, (vii) impairment of intangible assets, (viii) change in contingent consideration, (ix) costs associated with shareholder advisory matters and select implementation related value creation consulting costs, (x) litigation settlements, and (xi) equity in earnings of affiliates, net of tax. Amounts may not sum due to rounding. More News From Henry Schein, Inc.
	Saved 2026-08-04 11:31 1mo ago Published 2026-08-04 06:45 1mo ago	MPLX zvýšil zisk a výhled investic na rok 2026 MPLX ve 2. čtvrtletí zvýšil čistý zisk na 1,077 miliardy USD a upravený EBITDA na 1,775 miliardy USD. Firma zároveň zvýšila výhled růstových investic pro rok 2026 o 500 milionů USD na 2,9 miliardy USD. MPLX MPLX	FMP Stock News	92
Original source text , /PRNewswire/ -- Executing Natural Gas and NGL value chain growth strategy; Harmon Creek III processing plant beginning operations in August; progressing expansion of Permian sour gas treating capacity Second-quarter net income attributable to MPLX of $1.1 billion and net cash provided by operating activities of $1.7 billion Adjusted EBITDA attributable to MPLX of $1.8 billion and distributable cash flow of $1.5 billion, enabling the return of $1.1 billion of capital MPLX expects distribution increases of 12.5% in 2026 and 2027 MPLX LP (NYSE: MPLX) today reported second-quarter 2026 net income attributable to MPLX of $1,077 million, compared with $1,048 million for the second quarter of 2025. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1,775 million, compared with $1,690 million for the second quarter of 2025. Crude Oil and Products Logistics segment adjusted EBITDA for the second quarter of 2026 was $1,161 million, compared with $1,138 million for the second quarter of 2025. Natural Gas and NGL Services segment adjusted EBITDA for the second quarter of 2026 was $614 million, compared with $552 million for the second quarter of 2025. During the quarter, MPLX generated $1,702 million in net cash provided by operating activities, $1,450 million of distributable cash flow, and adjusted free cash flow of $668 million. MPLX announced a second-quarter 2026 distribution of $1.0765 per common unit, resulting in distribution coverage of 1.3x for the quarter. The leverage ratio was 3.7x at the end of the quarter. "Our second quarter operational performance reflects the consistent progression of our strategic initiatives, as we complete and integrate growth projects across our natural gas and NGL value chains to meet growing global demand," said Maryann Mannen, MPLX chairman, president and chief executive officer. "As additional projects enter service in the second half of the year, and utilizations increase, MPLX remains positioned to deliver mid-single digit adjusted EBITDA growth." Financial Highlights (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions, except per unit and ratio data) 2026 2025 2026 2025 Net income attributable to MPLX LP $ 1,077 $ 1,048 $ 1,989 $ 2,174 Adjusted EBITDA attributable to MPLX LP(a) 1,775 1,690 3,504 3,447 Net cash provided by operating activities 1,702 1,736 3,049 2,982 Distributable cash flow attributable to MPLX LP(a) 1,450 1,420 2,858 2,906 Distribution per common unit(b) $ 1.0765 $ 0.9565 $ 2.1530 $ 1.9130 Distribution coverage(c) 1.3x 1.5x 1.3x 1.5x Consolidated total debt to LTM adjusted EBITDA(a)(d) 3.7x 3.1x 3.7x 3.1x Cash paid for common unit repurchases $ 50 $ 100 $ 100 $ 200 (a) Non-GAAP measures. See reconciliation in the tables that follow. (b) Distributions declared by the board of directors of MPLX's general partner. (c) Beginning with the three months ended March 31, 2025, distribution coverage is defined as DCF attributable to MPLX LP divided by total LP distributions, as a result of the conversion of the remaining Series A preferred units to common units in February 2025. (d) Calculated using face value total debt and LTM adjusted EBITDA. Also referred to as leverage ratio. See reconciliation in the tables that follow. Segment Results Crude Oil and Products Logistics Crude Oil and Products Logistics segment adjusted EBITDA for the second quarter of 2026 increased by $23 million compared to the same period in 2025. The increase was primarily driven by higher rates across the business units and increased butane blending, partially offset by lower crude pipeline throughputs and higher operating expenses. Operating Statistics (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Total MPLX Pipeline throughput (mbpd) 5,876 6,103 (4) % 5,789 6,017 (4) % Average pipeline tariff rates ($ per barrel) $ 1.07 $ 1.06 1 % 1.06 1.06 — % Terminal throughput (mbpd) 3,259 3,183 2 % 3,118 3,139 (1) % Segment adjusted EBITDA (in millions) $ 1,161 $ 1,138 2 % $ 2,272 $ 2,235 2 % Natural Gas and NGL Services Natural Gas and NGL Services segment adjusted EBITDA for the second quarter of 2026 increased by $62 million compared to the same period in 2025. The increase was driven by increased volumes including growth from equity affiliates and acquisitions, partially offset by the divestiture of non-core gathering and processing assets in 2025. Operating Statistics (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Total MPLX Gathering throughput (MMcf/d) 6,859 6,562 5 % 6,674 6,539 2 % Natural gas processed (MMcf/d) 9,590 9,740 (2) % 9,498 9,760 (3) % C2 + NGLs fractionated (mbpd) 680 634 7 % 657 647 2 % Segment adjusted EBITDA (in millions) $ 614 $ 552 11 % $ 1,232 $ 1,212 2 % Strategic Update MPLX is increasing its 2026 growth capital spending outlook by $500 million, to $2.9 billion, primarily reflecting the accelerated execution of the Gulf Coast fractionation project to meet global demand for U.S. energy. MPLX plans to invest over 90% of organic growth capital toward opportunities to meet growing natural gas and NGL infrastructure needs. With projects concentrated in the Permian and Marcellus, two of the most prolific and competitive basins in North America, investments in these value chains reflect the partnership's confidence in the long-term fundamentals of the energy market, offer some of the most compelling investments in the midstream sector, and are expected to generate mid-teens returns. Investment Details MPLX Ownership Expected In- Service Secretariat I 200 million cubic feet per day (MMcf/d) gas processing plant in the Delaware Basin 100 % Placed in service in April 2026 Harmon Creek III 300 MMcf/d gas processing plant and 40 thousand barrel per day (mbpd) de-ethanizer in the Marcellus 100 % Beginning operations in August 2026 Bay Runner and Bay Runner Twin Pipelines Up to 5.3 billion cubic feet per day (Bcf/d) of natural gas transport capacity between Agua Dulce, Texas, and Brownsville, Texas 30 % Bay Runner: 3Q26 Bay Runner Twin: 2029 Titan Complex Increasing sour gas treating capacity from 150 MMcf/d to over 400 MMcf/d in the Delaware Basin 100 % 4Q26 BANGL Pipeline Expanding NGL pipeline from 250 mbpd to 300 mbpd; provides transportation from the Permian Basin to the Texas Gulf Coast 100 % 4Q26 Blackcomb Pipeline 2.5 Bcf/d pipeline connecting Permian supply to Agua Dulce, Texas 34 % 4Q26; Began commissioning July 2026 Traverse Pipeline 2.5 Bcf/d pipeline designed to transport natural gas between Agua Dulce, Texas, and Katy, Texas 34 % 2H27 Gulf Coast Fractionators Two 150 mbpd fractionation facilities near MPC's Galveston Bay refinery 100 % Frac I: 2028 Frac II: 2029 Gulf Coast LPG Export Terminal JV 400 mbpd LPG export terminal located in the Port of Texas City, Texas 50 % 2028 Marcellus Gathering System Expansion Supports producer activity near MPLX's Majorsville gas processing complex 100 % 1H28 Eiger Express Pipeline 3.7 Bcf/d pipeline connecting Permian supply to Katy, Texas 22 % Mid-2028 Secretariat II 300 MMcf/d gas processing plant in the Delaware Basin 100 % 2H28 Financial Position and Liquidity As of June 30, 2026, MPLX had $1.0 billion in cash, $2.5 billion available on its bank revolving credit facility, and $1.5 billion available through its intercompany loan agreement with MPC. MPLX's leverage ratio was 3.7x, while the stability of cash flows supports leverage in the range of 4.0x. The partnership repurchased $50 million of common units held by the public in the second quarter of 2026. As of June 30, 2026, MPLX had approximately $1.0 billion remaining available under its unit repurchase authorizations. Conference Call At 9:30 a.m. ET today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this earnings release and other investor-related materials, will also be available online prior to the conference call and webcast at www.mplx.com. About MPLX LP MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.mplx.com. Investor Relations Contact: (419) 421-2071 Brian Worthington, Vice President, Investor Relations Isaac Feeney, Director, Investor Relations Evan Heminger, Analyst, Investor Relations Media Contact: (419) 421-3577 Jamal Kheiry, Communications Manager Non-GAAP references In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (GAAP), management utilizes additional non-GAAP measures to analyze our performance. This press release and supporting schedules include the non-GAAP measures adjusted EBITDA; consolidated debt to last twelve months adjusted EBITDA, which we refer to as our leverage ratio; distributable cash flow (DCF); adjusted free cash flow (Adjusted FCF); and Adjusted FCF after distributions. Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. We define Adjusted EBITDA as net income adjusted for: (i) provision for income taxes; (ii) net interest and other financial costs; (iii) depreciation and amortization; (iv) income/(loss) from equity method investments; (v) distributions and adjustments related to equity method investments; (vi) impairment expense; (vii) noncontrolling interests; (viii) transaction-related costs; and (ix) other adjustments, as applicable. DCF is a financial performance and liquidity measure used by management and by the board of directors of our general partner as a key component in the determination of cash distributions paid to unitholders. We believe DCF is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the partnership is generating sufficient cash flow to support quarterly distributions. In addition, DCF is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on DCF and cash distributions paid to unitholders. We define DCF as Adjusted EBITDA adjusted for: (i) deferred revenue impacts; (ii) sales-type lease payments, net of income; (iii) adjusted net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment capital expenditures paid out; and (vi) other adjustments as deemed necessary. Adjusted FCF and Adjusted FCF after distributions are financial liquidity measures used by management in the allocation of capital and to assess financial performance. We believe that unitholders may use this metric to analyze our ability to manage leverage and return capital. We define Adjusted FCF as net cash provided by operating activities adjusted for: (i) net cash used in investing activities; (ii) cash contributions from MPC; and (iii) cash distributions to noncontrolling interests. We define Adjusted FCF after distributions as Adjusted FCF less base distributions to common and preferred unitholders. We believe that the presentation of Adjusted EBITDA, DCF, Adjusted FCF and Adjusted FCF after distributions provides useful information to investors in assessing our financial condition and results of operations. Leverage ratio is a liquidity measure used by management, industry analysts, investors, lenders and rating agencies to analyze our ability to incur and service debt and fund capital expenditures. The GAAP measures most directly comparable to Adjusted EBITDA and DCF are net income and net cash provided by operating activities while the GAAP measure most directly comparable to Adjusted FCF and Adjusted FCF after distributions is net cash provided by operating activities. These non-GAAP financial measures should not be considered alternatives to GAAP net income or net cash provided by operating activities as they have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because non-GAAP financial measures may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of Adjusted EBITDA, DCF, Adjusted FCF, Adjusted FCF after distributions and our leverage ratio to their most directly comparable measures calculated and presented in accordance with GAAP, see the tables below. Forward-Looking Statements This press release contains forward-looking statements regarding MPLX LP (MPLX). These forward-looking statements may relate to, among other things, MPLX's expectations, estimates and projections concerning its business and operations, financial priorities, including with respect to positive free cash flow and distribution coverage, strategic plans, capital return plans, capital expenditure plans, operating cost reduction objectives, and environmental, social and governance ("ESG") plans and goals, including those related to greenhouse gas emissions, biodiversity, and inclusion and ESG reporting. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors or required to be disclosed in our filings with the Securities Exchange Commission (SEC). In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. You can identify forward-looking statements by words such as "advance," "anticipate," "believe," "commitment," "confidence," "continue," "could," "design," "drive," "endeavor," "estimate," "expect," "focus," "forecast," "goal," "guidance," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "progress," "project," "prospective," "pursue," "seek," "should," "strategy," "strive," "support," "target," "trends," "will," "would" or other similar expressions that convey the uncertainty of future events or outcomes. MPLX cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPLX, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPLX's actual results to differ materially from those implied in the forward-looking statements include but are not limited to: political or regulatory developments, changes in governmental policies relating to refined petroleum products, crude oil, natural gas, natural gas liquids ("NGLs") or renewable diesel and other renewable fuels, or taxation including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; volatility in and degradation of general economic, market, industry or business conditions, including as a result of pandemics, other infectious disease outbreaks, natural hazards, extreme weather events, regional conflicts such as hostilities in the Middle East and in Ukraine, tariffs, inflation, rising interest rates or government shutdowns; the adequacy of capital resources and liquidity, including the availability of sufficient free cash flow from operations to pay or grow distributions and to fund future unit repurchases; the ability to access debt markets on commercially reasonable terms or at all; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products or renewable diesel and other renewable fuels; increased pricing volatility or supply disruptions due to the U.S.-Iran conflict and market reactions thereto; changes to the expected construction costs and in service dates of planned and ongoing projects and investments, including pipeline projects and new processing units, and the ability to obtain regulatory and other approvals with respect thereto; the timing and ability to obtain necessary regulatory approvals and satisfy the other conditions necessary to consummate planned transactions within the expected timeframes if at all; the ability to realize expected returns or other benefits on anticipated or ongoing projects or planned transactions, including the recently completed acquisitions of Northwind Delaware Holdings LLC and BANGL, LLC; the inability or failure of our joint venture partners to fund their share of operations and development activities; the financing and distribution decisions of joint ventures we do not control; the availability of desirable strategic alternatives to optimize portfolio assets and the ability to obtain regulatory and other approvals with respect thereto; our ability to successfully implement our sustainable energy strategy and principles and to achieve our ESG plans and goals within the expected timeframes if at all; changes in government incentives for emission-reduction products and technologies; the outcome of research and development efforts to create future technologies necessary to achieve our ESG plans and goals; our ability to scale projects and technologies on a commercially competitive basis; changes in regional and global economic growth rates and consumer preferences, including consumer support for emission-reduction products and technology; industrial incidents or other unscheduled shutdowns affecting our machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers; the suspension, reduction or termination of MPC's obligations under MPLX's commercial agreements; the imposition of windfall profit taxes, maximum refining margin penalties, minimum inventory requirements or refinery maintenance and turnaround supply plans on companies operating in the energy industry in California or other jurisdictions; the establishment or increase of tariffs on goods, including crude oil and other feedstocks imported into the United States, other trade protection measures or restrictions or retaliatory actions from foreign governments; compliance costs and uncertainty associated with cap and invest programs or similar arrangements or programs in California or other jurisdictions; other risk factors inherent to MPLX's industry; the impact of adverse market conditions or other similar risks to those identified herein affecting MPC; and the factors set forth under the heading "Risk Factors" and "Disclosures Regarding Forward-Looking Statements" in MPLX's and MPC's Annual Reports on Form 10-K for the year ended Dec. 31, 2025, and in other filings with the SEC. Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law. Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office. Condensed Consolidated Results of Operations (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions, except per unit data) 2026 2025 2026 2025 Revenues and other income: Operating revenue $ 1,453 $ 1,338 $ 2,757 $ 2,758 Operating revenue - related parties 1,629 1,450 3,131 2,917 Income from equity method investments 180 170 362 356 Other income 50 45 100 96 Total revenues and other income 3,312 3,003 6,350 6,127 Costs and expenses: Operating expenses (including purchased product costs) 1,012 821 1,930 1,688 Operating expenses - related parties 415 426 813 846 Depreciation and amortization 365 324 723 650 General and administrative expenses 108 107 222 219 Other taxes 34 32 70 65 Total costs and expenses 1,934 1,710 3,758 3,468 Income from operations 1,378 1,293 2,592 2,659 Net interest and other financial costs 289 234 580 463 Income before income taxes 1,089 1,059 2,012 2,196 Provision for income taxes 2 1 3 2 Net income 1,087 1,058 2,009 2,194 Less: Net income attributable to noncontrolling interests 10 10 20 20 Net income attributable to MPLX LP $ 1,077 $ 1,048 $ 1,989 $ 2,174 Per Unit Data Net income attributable to MPLX LP per limited partner unit: Common – basic $ 1.06 $ 1.03 $ 1.96 $ 2.13 Common – diluted $ 1.06 $ 1.03 $ 1.96 $ 2.13 Weighted average limited partner units outstanding: Common units – basic 1,015 1,020 1,015 1,020 Common units – diluted 1,015 1,021 1,015 1,020 Select Financial Statistics (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions, except ratio data) 2026 2025 2026 2025 Common unit distributions declared by MPLX LP Common units (LP) – public $ 395 $ 356 $ 790 $ 713 Common units – MPC 697 619 1,394 1,238 Total LP distribution declared 1,092 975 2,184 1,951 Other Financial Data Adjusted EBITDA attributable to MPLX LP(a) 1,775 1,690 3,504 3,447 DCF attributable to MPLX LP(a) $ 1,450 $ 1,420 $ 2,858 $ 2,906 Distribution coverage(b) 1.3x 1.5x 1.3x 1.5x Cash Flow Data Net cash flow provided by (used in): Operating activities $ 1,702 $ 1,736 $ 3,049 $ 2,982 Investing activities (1,028) (602) (1,819) (1,203) Financing activities $ (1,149) $ (2,282) $ (2,336) $ (1,912) (a) Non-GAAP measure. See reconciliation below. (b) Beginning with the three months ended March 31, 2025, distribution coverage is defined as DCF attributable to MPLX LP divided by total LP distributions, as a result of the conversion of the remaining Series A preferred units to common units in February 2025. Financial Data (unaudited) (In millions, except ratio data) June 30, 2026 December 31, 2025 Cash and cash equivalents $ 1,031 $ 2,137 Total assets 42,969 43,005 Total debt(a) 25,640 25,653 Total equity $ 14,252 $ 14,528 Consolidated debt to LTM adjusted EBITDA(b) 3.7x 3.7x Partnership units outstanding: MPC-held common units 647 647 Public common units 367 368 (a) There were no borrowings on the loan agreement with MPC as of June 30, 2026 or December 31, 2025. Presented net of unamortized debt issuance costs, unamortized discount/premium and includes long-term debt due within one year. (b) Calculated using face value total debt and LTM adjusted EBITDA. Face value total debt was $26,005 million as of June 30, 2026, and $26,006 million as of December 31, 2025. Operating Statistics (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Crude Oil and Products Logistics Pipeline throughput (mbpd) Crude oil pipelines 3,830 4,012 (5) % 3,757 3,961 (5) % Product pipelines 2,046 2,091 (2) % 2,032 2,056 (1) % Total pipelines 5,876 6,103 (4) % 5,789 6,017 (4) % Average tariff rates ($ per barrel) Crude oil pipelines $ 1.06 $ 1.06 — % $ 1.05 $ 1.05 — % Product pipelines 1.09 1.05 4 % 1.09 1.08 1 % Total pipelines $ 1.07 $ 1.06 1 % $ 1.06 $ 1.06 — % Terminal throughput (mbpd) 3,259 3,183 2 % 3,118 3,139 (1) % Barges in operation 331 320 3 % 331 320 3 % Towboats in operation 30 29 3 % 30 29 3 % Natural Gas and NGL Services Operating Statistics (unaudited) - Consolidated(a) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Gathering throughput (MMcf/d) Marcellus Operations 1,680 1,488 13 % 1,629 1,494 9 % Utica Operations — — — % — 133 (100) % Southwest Operations 1,990 1,734 15 % 1,990 1,759 13 % Bakken Operations 162 162 — % 154 168 (8) % Rockies Operations — 541 (100) % — 545 (100) % Total gathering throughput 3,832 3,925 (2) % 3,773 4,099 (8) % Natural gas processed (MMcf/d) Marcellus Operations 4,570 4,312 6 % 4,511 4,318 4 % Utica Operations(b) — — — % — — — % Southwest Operations 2,013 1,821 11 % 1,993 1,850 8 % Southern Appalachia Operations 220 205 7 % 205 196 5 % Bakken Operations 161 162 (1) % 153 168 (9) % Rockies Operations — 593 (100) % — 597 (100) % Total natural gas processed 6,964 7,093 (2) % 6,862 7,129 (4) % C2 + NGLs fractionated (mbpd) Marcellus Operations 584 545 7 % 567 556 2 % Utica Operations(b) — — — % — — — % Other 24 29 (17) % 22 29 (24) % Total C2 + NGLs fractionated 608 574 6 % 589 585 1 % (a) Includes operating data for entities that have been consolidated into the MPLX financial statements. (b) The Utica region processing and fractionation operations only include partnership-operated equity method investments and thus do not have any operating statistics from a consolidated perspective. See table below for details on Utica. Excluding Divested Assets(a), Natural Gas and NGL Services Operating Statistics (unaudited) - Consolidated(b) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Total gathering throughput (MMcf/d) 3,832 3,384 13 % 3,773 3,421 10 % Total natural gas processed (MMcf/d) 6,964 6,500 7 % 6,862 6,532 5 % Total C2 + NGLs fractionated (mbpd) 608 569 7 % 589 580 (1) % (a) Excludes volumes associated with divested Rockies gathering and processing operations and assets contributed to Markwest EMG Jefferson Dry Gas Gathering Company, L.L.C. (b) Includes operating data for entities that have been consolidated into the MPLX financial statements. Natural Gas and NGL Services Operating Statistics (unaudited) - Operated(a) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Gathering throughput (MMcf/d) Marcellus Operations 1,680 1,488 13 % 1,629 1,494 9 % Utica Operations 3,027 2,566 18 % 2,901 2,503 16 % Southwest Operations 1,990 1,734 15 % 1,990 1,759 13 % Bakken Operations 162 162 — % 154 168 (8) % Rockies Operations — 612 (100) % — 615 (100) % Total gathering throughput 6,859 6,562 5 % 6,674 6,539 2 % Natural gas processed (MMcf/d) Marcellus Operations 6,232 6,019 4 % 6,196 5,997 3 % Utica Operations 964 940 3 % 951 952 — % Southwest Operations 2,013 1,821 11 % 1,993 1,850 8 % Southern Appalachia Operations 220 205 7 % 205 196 5 % Bakken Operations 161 162 (1) % 153 168 (9) % Rockies Operations — 593 (100) % — 597 (100) % Total natural gas processed 9,590 9,740 (2) % 9,498 9,760 (3) % C2 + NGLs fractionated (mbpd) Marcellus Operations 584 545 7 % 567 556 2 % Utica Operations 72 60 20 % 68 62 10 % Other 24 29 (17) % 22 29 (24) % Total C2 + NGLs fractionated 680 634 7 % 657 647 2 % (a) Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments. Excluding Divested Assets(a), Natural Gas and NGL Services Operating Statistics (unaudited) - Operated(b) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Total gathering throughput (MMcf/d) 6,859 5,950 15 % 6,674 5,924 13 % Total natural gas processed (MMcf/d) 9,590 9,147 5 % 9,498 9,163 4 % Total C2 + NGLs fractionated (mbpd) 680 629 8 % 657 642 2 % (a) Excludes volumes associated with divested Rockies gathering and processing operations and assets contributed to Markwest EMG Jefferson Dry Gas Gathering Company, L.L.C. (b) Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments. Reconciliation of Segment Adjusted EBITDA to Net Income (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Crude Oil and Products Logistics segment adjusted EBITDA attributable to MPLX LP $ 1,161 $ 1,138 $ 2,272 $ 2,235 Natural Gas and NGL Services segment adjusted EBITDA attributable to MPLX LP 614 552 1,232 1,212 Adjusted EBITDA attributable to MPLX LP 1,775 1,690 3,504 3,447 Depreciation and amortization (365) (324) (723) (650) Net interest and other financial costs (289) (234) (580) (463) Income from equity method investments 180 170 362 356 Distributions/adjustments related to equity method investments (234) (229) (485) (456) Adjusted EBITDA attributable to noncontrolling interests 11 11 22 22 Other(a) 9 (26) (91) (62) Net income $ 1,087 $ 1,058 $ 2,009 $ 2,194 (a) Includes unrealized derivative gain/(loss), equity-based compensation, provision for income taxes and other miscellaneous items. Reconciliation of Segment Adjusted EBITDA to Income from Operations (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Crude Oil and Products Logistics Segment adjusted EBITDA $ 1,161 $ 1,138 2,272 2,235 Depreciation and amortization (146) (135) (289) (268) Income from equity method investments 52 59 114 115 Distributions/adjustments related to equity method investments (71) (77) (143) (149) Other (18) (17) (39) (34) Natural Gas and NGL Services Segment adjusted EBITDA 614 552 1,232 1,212 Depreciation and amortization (219) (189) (434) (382) Income from equity method investments 128 111 248 241 Distributions/adjustments related to equity method investments (163) (152) (342) (307) Adjusted EBITDA attributable to noncontrolling interests 11 11 22 22 Other 29 (8) (49) (26) Income from operations $ 1,378 $ 1,293 $ 2,592 $ 2,659 Reconciliation of Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to MPLX LP from Net Income (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Net income $ 1,087 $ 1,058 $ 2,009 $ 2,194 Provision for income taxes 2 1 3 2 Net interest and other financial costs 289 234 580 463 Income from operations 1,378 1,293 2,592 2,659 Depreciation and amortization 365 324 723 650 Income from equity method investments (180) (170) (362) (356) Distributions/adjustments related to equity method investments 234 229 485 456 Other (11) 25 88 60 Adjusted EBITDA 1,786 1,701 3,526 3,469 Adjusted EBITDA attributable to noncontrolling interests (11) (11) (22) (22) Adjusted EBITDA attributable to MPLX LP 1,775 1,690 3,504 3,447 Deferred revenue impacts 27 (10) 26 (28) Sales-type lease payments, net of income 8 14 21 27 Adjusted net interest and other financial costs(a) (281) (225) (565) (444) Maintenance capital expenditures, net of reimbursements (68) (45) (121) (80) Equity method investment maintenance capital expenditures paid out (5) (3) (9) (8) Other (6) (1) 2 (8) DCF attributable to MPLX LP $ 1,450 $ 1,420 $ 2,858 $ 2,906 (a) Represents Net interest and other financial costs, excluding gain/loss on extinguishment of debt and amortization of deferred financing costs. Reconciliation of Net Income to Last Twelve Month (LTM) adjusted EBITDA (unaudited) Last Twelve Months June 30, December 31, (In millions) 2026 2025 2025 LTM Net income $ 4,767 $ 4,350 $ 4,952 Provision for income taxes 9 9 8 Net interest and other financial costs 1,100 918 983 LTM income from operations 5,876 5,277 5,943 Depreciation and amortization 1,424 1,296 1,351 Income from equity method investments (703) (676) (697) Distributions/adjustments related to equity method investments 991 966 962 Gain on equity method investments (484) — (484) Gain on sale of assets (159) — (159) Transaction-related costs(a) 33 — 33 Other 140 104 112 LTM Adjusted EBITDA 7,118 6,967 7,061 Adjusted EBITDA attributable to noncontrolling interests (44) (44) (44) LTM Adjusted EBITDA attributable to MPLX LP 7,074 6,923 7,017 Consolidated total debt(b) $ 26,005 $ 21,507 $ 26,006 Consolidated total debt to LTM adjusted EBITDA(c) 3.7x 3.1x 3.7x (a) Transaction-related costs include costs associated with the acquisition of Northwind Midstream, acquisition of the remaining interest in BANGL, LLC and the divestiture of the Rockies gathering and processing operations. (b) Consolidated total debt excludes unamortized debt issuance costs and unamortized discount/premium. Consolidated total debt includes long-term debt due within one year and outstanding borrowings, if any, under the loan agreement with MPC. (c) Also referred to as our leverage ratio. Reconciliation of Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to MPLX LP from Net Cash Provided by Operating Activities (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Net cash provided by operating activities $ 1,702 $ 1,736 $ 3,049 $ 2,982 Changes in working capital items (261) (313) (190) (83) All other, net 12 (6) 1 (4) Loss on extinguishment of debt — 3 — 3 Adjusted net interest and other financial costs(a) 281 225 565 444 Other adjustments related to equity method investments 18 22 32 61 Other 34 34 69 66 Adjusted EBITDA 1,786 1,701 3,526 3,469 Adjusted EBITDA attributable to noncontrolling interests (11) (11) (22) (22) Adjusted EBITDA attributable to MPLX LP 1,775 1,690 3,504 3,447 Deferred revenue impacts 27 (10) 26 (28) Sales-type lease payments, net of income 8 14 21 27 Adjusted net interest and other financial costs(a) (281) (225) (565) (444) Maintenance capital expenditures, net of reimbursements (68) (45) (121) (80) Equity method investment maintenance capital expenditures paid out (5) (3) (9) (8) Other (6) (1) 2 (8) DCF attributable to MPLX LP $ 1,450 $ 1,420 $ 2,858 $ 2,906 (a) Represents Net interest and other financial costs, excluding gain/loss on extinguishment of debt and amortization of deferred financing costs. Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Net cash provided by operating activities(a) $ 1,702 $ 1,736 $ 3,049 $ 2,982 Adjustments to reconcile net cash provided by operating activities to adjusted free cash flow Net cash used in investing activities (1,028) (602) (1,819) (1,203) Contributions from MPC 5 7 9 14 Distributions to noncontrolling interests (11) (11) (22) (22) Adjusted free cash flow 668 1,130 1,217 1,771 Distributions paid to common and preferred unitholders (1,092) (976) (2,185) (1,954) Adjusted free cash flow after distributions $ (424) $ 154 $ (968) $ (183) (a) The three months ended June 30, 2026 and June 30, 2025 include working capital draws of $261 million and $313 million, respectively. The six months ended June 30, 2026 and June 30, 2025 include working capital draws of $190 million and $83 million, respectively. Capital Expenditures (unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Capital Expenditures: Growth capital expenditures $ 746 $ 286 $ 1,354 $ 506 Growth capital reimbursements (49) (37) (84) (64) Investments in unconsolidated affiliates(a) 202 203 439 322 Return of capital(b) — (39) — (39) Capitalized interest (25) (7) (44) (12) Total growth capital expenditures(c) 874 406 1,665 713 Maintenance capital expenditures 73 55 130 103 Maintenance capital reimbursements (5) (10) (9) (23) Capitalized interest (1) (1) (2) (2) Total maintenance capital expenditures 67 44 119 78 Total growth and maintenance capital expenditures 941 450 1,784 791 Investments in unconsolidated affiliates(a) (202) (203) (439) (322) Return of capital(b) — 39 — 39 Growth and maintenance capital reimbursements(d) 54 47 93 87 (Increase)/Decrease in capital accruals 6 (40) (84) (41) Capitalized interest 26 8 46 14 Additions to property, plant and equipment $ 825 $ 301 $ 1,400 $ 568 (a) Investments in unconsolidated affiliates and additions to property, plant and equipment are shown as separate lines within investing activities in the Consolidated Statements of Cash Flows. (b) Return of capital for the six months ended June 30, 2025 excludes a $21 million special distribution received in exchange for the contribution of assets to a joint venture. (c) Total growth capital expenditures for the six months ended June 30, 2025 excludes acquisitions of $235 million, net of cash acquired. (d) Growth capital reimbursements are generally included in changes in deferred revenue within operating activities in the Consolidated Statements of Cash Flows. Maintenance capital reimbursements are included in the Contributions from MPC line within financing activities in the Consolidated Statements of Cash Flows. SOURCE MPLX LP
	Saved 2026-08-04 11:04 1mo ago Published 2026-08-04 06:45 1mo ago	Aptiv zvýšil tržby i zisk a dokončil spin-off Aptiv ve 2. čtvrtletí zvýšil tržby o 2 % na 3,3 miliardy USD a upravený zisk na akcii na 1,63 USD. Firma také dokončila spin-off Electrical Distribution Systems a obdržela přibližně 1,9 miliardy USD na dividendě. APTV Aptiv	FMP Stock News	92
Original source text Strong Operating Performance and Significant Progress Diversifying Towards Non-Auto Markets SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)--Aptiv PLC (NYSE: APTV), a global industrial technology company, today reported financial results for the second quarter of 2026. Second Quarter Financial Highlights Include: U.S. GAAP revenue of $3.3 billion, an increase of 2% Adjusted revenue growth of 2% U.S. GAAP net income from continuing operations of $298 million Adjusted EBITDA of $613 million U.S. GAAP diluted earnings per share from continuing operations of $1.40 Adjusted net income per share of $1.63 Completed the spin-off of Electrical Distribution Systems segment Electrical Distribution Systems segment classified as discontinued operations for all periods presented Received cash dividend of $1.9 billion in connection with the spin-off Year-to-Date Financial Highlights Include: U.S. GAAP revenue of $6.3 billion, an increase of 2% Adjusted revenue growth of 1% U.S. GAAP net income from continuing operations of $427 million Adjusted EBITDA of $1,106 million U.S. GAAP diluted earnings per share from continuing operations of $2.01 Adjusted net income per share of $2.56 "We delivered solid results in the second quarter, our first as New Aptiv, with a reacceleration in revenue growth and margin expansion year-over-year,” said Kevin Clark, chair and chief executive officer. “In addition, we continued to demonstrate progress on many of our strategic initiatives, including double digit revenue growth in Non-Automotive revenues, advancing our presence in the Robotics market from partnerships to commercial stage, and securing a major Drone market commercial win in early July. While the macroeconomic landscape for Automotive remains dynamic and customer mix has presented as an incremental headwind, we remain committed to delivering continued revenue growth and strong operating performance this year. Moreover, our strong belief in the long-term value of our business and opportunity for growth across markets has reinforced our commitment in returning capital to shareholders, with half of our expected cash flow for the year already having been allocated towards share repurchases, a level we see continuing for the next few years." Second Quarter 2026 Results For the three months ended June 30, 2026, the Company reported U.S. GAAP revenue of $3.3 billion, an increase of 2% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 2% in the second quarter. This reflects growth of 10% in North America, 6% in Asia Pacific, which includes growth of 5% in China, partially offset by declines of 8% in EMEA and 4% in South America, our smallest region. The Company reported second quarter 2026 U.S. GAAP net income from continuing operations of $298 million, net income margin from continuing operations of 9.1% and earnings from continuing operations of $1.40 per diluted share, compared to U.S. GAAP net income from continuing operations of $265 million, net income margin from continuing operations of 8.3% and earnings from continuing operations of $1.21 per diluted share in the prior year period. Second quarter Adjusted Net Income totaled $345 million, or earnings of $1.63 per diluted share, compared to $285 million, or $1.31 per diluted share, in the prior year period. The Company reported second quarter Adjusted EBITDA of $613 million, compared to $547 million in the prior year period. Adjusted EBITDA margin was 18.7%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs. The Company reported second quarter Adjusted Operating Income of $473 million, compared to $410 million in the prior year period. Adjusted Operating Income margin was 14.4%, compared to 12.8% in the prior year period. Depreciation and amortization expense totaled $195 million, compared to $190 million in the prior year period. Interest expense for the second quarter totaled $62 million, compared to $92 million in the prior year period. Tax expense in the second quarter of 2026 was $52 million, compared to $16 million in the prior year period. Net cash flow provided by operating activities from continuing operations totaled $137 million in the second quarter, compared to $326 million in the prior year period. The Company generated Free Cash Flow of $12 million in the second quarter, compared to $219 million generated in the prior year period. Year-to-Date 2026 Results For the six months ended June 30, 2026, the Company reported U.S. GAAP revenue of $6.3 billion, an increase of 2% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 1% during the period. This reflects growth of 9% in North America and 1% in Asia Pacific, which includes a decline of 4% in China, partially offset by declines of 7% in EMEA and 3% in South America, our smallest region. The Company reported 2026 year-to-date U.S. GAAP net income from continuing operations of $427 million, net income margin from continuing operation of 6.8% and earnings from continuing operations of $2.01 per diluted share, compared to U.S. GAAP net income from continuing operations of $125 million, net income margin from continuing operation of 2.0% and earnings from continuing operations of $0.55 per diluted share in the prior year period. Year-to-date Adjusted Net Income totaled $545 million, or earnings of $2.56 per diluted share, compared to $517 million, or $2.30 per diluted share, in the prior year period. For the 2026 year-to-date period, The Company reported Adjusted EBITDA of $1,106 million, compared to $1,059 million in the prior year period. Adjusted EBITDA margin was 17.5%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs. The Company reported Adjusted Operating Income of $829 million for the year-to-date 2026 period, compared to $789 million in the prior year period. Adjusted Operating Income margin was 13.1%, compared to 12.8% in the prior year period. Depreciation and amortization expense totaled $384 million, compared to $379 million in the prior year period. Interest expense for the year-to-date period totaled $146 million, compared to $185 million in the prior year period. Tax expense in the six months ended June 30, 2026 was $94 million. Tax expense in the six months ended June 30, 2025 was $342 million, which primarily reflects an increase to valuation allowances of approximately $300 million on deferred tax assets impacted by the OECD Administrative Guidance issued in the first quarter of 2025. Net cash flow provided by operating activities from continuing operations totaled $82 million in the six months ended June 30, 2026, compared to $531 million in the prior year period. The Company reported negative Free Cash Flow of $196 million in the six months ended June 30, 2026, compared to $264 million generated in the prior year period. Reconciliations of Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules. Debt Redemptions and Share Repurchases In April 2026, the Company redeemed $1,847 million of aggregate principal amount of certain senior notes principally utilizing proceeds from the cash distribution received from Versigent in connection with the spin-off. The Company repurchased and retired 4.1 million shares for $250 million in the second quarter of 2026, bringing the year-to-date total to $325 million. As of June 30, 2026, $1.8 billion remained available for future share repurchases under the Company’s existing authorization. EDS Spin-Off As previously disclosed, the spin-off of the Company’s former Electrical Distribution Systems segment into a new independent publicly traded company, Versigent PLC, was completed on April 1, 2026. The results of the Electrical Distribution Systems business through April 1, 2026 are presented as discontinued operations separate from the Company’s continuing operations for all periods presented. In connection with the spin-off, Aptiv received a dividend of approximately $1.9 billion from Versigent, which the Company used to opportunistically redeem outstanding debt prior to maturity. Q3 and Full Year 2026 Outlook The Company’s third quarter and full year 2026 financial guidance is as follows. This reflects Aptiv without the EDS business, which is presented as discontinued operations. (in millions, except per share amounts) Q3 2026 New Aptiv (Pro Forma) Full Year 2026 Net sales $3,120 - $3,220 $12,600 - $12,800 U.S. GAAP net income from continuing operations $180 - $200 $860 - $900 U.S. GAAP net income from continuing operations margin 6.0% 6.9% Adjusted EBITDA $545 - $575 $2,310 - $2,370 Adjusted EBITDA margin 17.7% 18.4% U.S. GAAP diluted net income per share from continuing operations $0.86 - $0.96 $4.06 - $4.26 Adjusted net income per share $1.25 - $1.35 $5.60 - $5.80 Cash flow from continuing operations $1,270 - $1,370 Free cash flow $625 - $725 U.S. GAAP effective tax rate ~18% Adjusted effective tax rate ~18% Conference Call and Webcast The Company will host a conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by dialing +1.800.330.6710 (U.S.) or +1.213.279.1505 (international) or through a webcast at ir.aptiv.com. The conference ID number is 8103952. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company’s website. A replay will be available two hours following the conference call. Use of Non-GAAP Financial Information This press release contains information about Aptiv’s financial results which are not presented in accordance with GAAP. Specifically, Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow are non-GAAP financial measures. Adjusted Revenue Growth represents the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Adjusted EBITDA represents net income (loss) before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, income (loss) from discontinued operations, restructuring and other special items. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of net sales. Adjusted Operating Income represents net income (loss) before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, income (loss) from discontinued operations, amortization, restructuring, separation costs related to the spin-off of the Electrical Distribution Systems business, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), goodwill and other asset impairments, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions. Adjusted Operating Income margin is defined as Adjusted Operating Income as a percentage of net sales. Adjusted Net Income represents net income (loss) attributable to Aptiv before income (loss) from discontinued operations, amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share represents Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding for the period. Free cash flow represents cash provided by (used in) operating activities from continuing operations less capital expenditures. Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position, results of operations and liquidity. In particular, management believes Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow are useful measures in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and that may obscure underlying business results and trends. Management also uses these non-GAAP financial measures for internal planning and forecasting purposes. Such non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measures in the attached supplemental schedules at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies. About Aptiv Aptiv is a global industrial technology leader delivering advanced solutions people trust when it matters most across automotive, commercial vehicle, aerospace and defense, telecom and datacom, and other diversified industrial end markets. Our differentiated portfolio enables devices and systems to sense, think, act, and continuously optimize performance. Building on decades of innovation, Aptiv brings global scale and a resilient, localized value chain to customers across the globe. Learn more at aptiv.com. Forward-Looking Statements This press release, as well as other statements made by Aptiv PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events, certain investments and acquisitions and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company’s operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company’s strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law. APTIV PLC CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except per share amounts) Net sales $ 3,274 $ 3,199 $ 6,306 $ 6,186 Operating expenses: Cost of sales 2,499 2,468 4,861 4,784 Selling, general and administrative 332 327 660 636 Amortization 52 52 104 103 Restructuring 24 27 40 49 Total operating expenses 2,907 2,874 5,665 5,572 Operating income 367 325 641 614 Interest expense (62 ) (92 ) (146 ) (185 ) Other income, net 58 15 55 19 Net gain on equity method transactions 3 46 3 46 Income from continuing operations before income taxes and equity loss 366 294 553 494 Income tax expense (52 ) (16 ) (94 ) (342 ) Income from continuing operations before equity loss 314 278 459 152 Equity loss, net of tax (17 ) (14 ) (34 ) (29 ) Income from continuing operations 297 264 425 123 (Loss) income from discontinued operations, net of tax (50 ) 133 13 263 Net income 247 397 438 386 Net income attributable to noncontrolling interest — 5 3 6 Net loss attributable to redeemable noncontrolling interest (1 ) (1 ) (2 ) (2 ) Net income attributable to Aptiv $ 248 $ 393 $ 437 $ 382 Amounts attributable to Aptiv: Income from continuing operations $ 298 $ 265 $ 427 $ 125 (Loss) income from discontinued operations (50 ) 128 10 257 Net income $ 248 $ 393 $ 437 $ 382 Diluted net income (loss) per share: Continuing operations $ 1.40 $ 1.21 $ 2.01 $ 0.55 Discontinued operations (0.23 ) 0.59 0.05 1.15 Diluted net income (loss) per share attributable to Aptiv $ 1.17 $ 1.80 $ 2.06 $ 1.70 Weighted average number of diluted shares outstanding 212.10 218.11 212.53 224.32 APTIV PLC CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2026 December 31, (Unaudited) 2025 (in millions) ASSETS Current assets: Cash and cash equivalents $ 761 $ 1,575 Restricted cash 4 3 Accounts receivable, net 2,434 1,910 Inventories 2,038 1,789 Other current assets 766 627 Current assets of discontinued operations — 2,841 Total current assets 6,003 8,745 Long-term assets: Property, net 2,756 2,872 Operating lease right-of-use assets 305 331 Investments in affiliates 1,255 1,288 Intangible assets, net 1,875 1,997 Goodwill 3,937 4,008 Other long-term assets 1,865 1,816 Long-term assets of discontinued operations — 2,356 Total long-term assets 11,993 14,668 Total assets $ 17,996 $ 23,413 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt $ 23 $ 23 Accounts payable 1,910 1,623 Accrued liabilities 1,042 1,191 Current liabilities of discontinued operations — 2,200 Total current liabilities 2,975 5,037 Long-term liabilities: Long-term debt 5,331 7,467 Pension benefit obligations 212 212 Long-term operating lease liabilities 241 270 Other long-term liabilities 484 479 Long-term liabilities of discontinued operations — 449 Total long-term liabilities 6,268 8,877 Total liabilities 9,243 13,914 Commitments and contingencies Redeemable noncontrolling interest — 102 Total Aptiv shareholders’ equity 8,753 9,207 Noncontrolling interest — 190 Total shareholders’ equity 8,753 9,397 Total liabilities, redeemable noncontrolling interest and shareholders’ equity $ 17,996 $ 23,413 APTIV PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2026 2025 (in millions) Cash flows from operating activities: Net income $ 438 $ 386 Income from discontinued operations, net of tax 13 263 Income from continuing operations 425 123 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 384 379 Restructuring expense, net of cash paid (14 ) (9 ) Deferred income taxes (32 ) 309 Loss from equity method investments, net of dividends received 34 29 Loss on extinguishment of debt (39 ) 3 Net gain on equity method transactions (3 ) (46 ) Other, net 65 74 Changes in operating assets and liabilities: Accounts receivable, net (314 ) (204 ) Inventories (230 ) (108 ) Accounts payable 144 163 Other, net (331 ) (180 ) Pension contributions (7 ) (2 ) Net cash provided by operating activities from continuing operations 82 531 Net cash (used in) provided by operating activities from discontinued operations (133 ) 252 Net cash (used in) provided by operating activities (51 ) 783 Cash flows from investing activities: Capital expenditures (278 ) (267 ) Proceeds from sale of property 2 2 Proceeds from asset sale — 4 Proceeds from sale of technology investments — 1 Cost of technology investments — (42 ) Proceeds from the sale of equity method investments — 164 Acquisition of redeemable noncontrolling interest (67 ) — Settlement of derivatives (3 ) 5 Net cash used in investing activities from continuing operations (346 ) (133 ) Net cash used in investing activities from discontinued operations (66 ) (79 ) Net cash used in investing activities (412 ) (212 ) Cash flows from financing activities: Decrease in other short and long-term debt, net (5 ) (574 ) Repayment of senior notes (2,054 ) — Fees related to modification of debt agreements — (5 ) Dividend received from spin-off of Versigent 1,920 — Cash transferred to Versigent related to spin-off (282 ) — Repurchase of ordinary shares (322 ) — Taxes withheld and paid on employees’ restricted share awards (32 ) (17 ) Net cash used in financing activities from continuing operations (775 ) (596 ) Net cash provided by (used in) financing activities from discontinued operations 150 (136 ) Net cash used in financing activities (625 ) (732 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash (1 ) 36 Decrease in cash, cash equivalents and restricted cash (1,089 ) (125 ) Cash, cash equivalents and restricted cash at beginning of the period 1,854 1,574 Cash, cash equivalents and restricted cash at end of the period $ 765 $ 1,449 Cash, cash equivalents and restricted cash of discontinued operations $ — $ 328 Cash, cash equivalents and restricted cash of continuing operations $ 765 $ 1,121 APTIV PLC FOOTNOTES (Unaudited) 1. Segment Summary Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % 2026 2025 % (in millions) (in millions) Net Sales Engineered Components $ 1,800 $ 1,718 5% $ 3,422 $ 3,298 4% Intelligent Systems 1,501 1,507 —% 2,934 2,931 —% Eliminations and Other (a) (27 ) (26 ) (50 ) (43 ) Net Sales $ 3,274 $ 3,199 $ 6,306 $ 6,186 Adjusted EBITDA Engineered Components $ 403 $ 343 17% $ 729 $ 670 9% Intelligent Systems 210 204 3% 377 389 (3)% Adjusted EBITDA $ 613 $ 547 $ 1,106 $ 1,059 2. Weighted Average Number of Diluted Shares Outstanding The following table illustrates the weighted average shares outstanding used in calculating basic and diluted net income (loss) per share attributable to Aptiv for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except per share amounts) Weighted average ordinary shares outstanding, basic 211.56 217.73 211.84 223.91 Dilutive shares related to RSUs 0.54 0.38 0.69 0.41 Weighted average ordinary shares outstanding, including dilutive shares 212.10 218.11 212.53 224.32 Basic net income (loss) per share: Continuing operations $ 1.41 $ 1.21 $ 2.02 $ 0.56 Discontinued operations (0.24 ) 0.59 0.04 1.15 Basic net income per share attributable to Aptiv $ 1.17 $ 1.80 $ 2.06 $ 1.71 Diluted net income (loss) per share: Continuing operations $ 1.40 $ 1.21 $ 2.01 $ 0.55 Discontinued operations (0.23 ) 0.59 0.05 1.15 Diluted net income per share attributable to Aptiv $ 1.17 $ 1.80 $ 2.06 $ 1.70 APTIV PLC RECONCILIATION OF NON-GAAP MEASURES (Unaudited) In this press release the Company has provided information regarding certain non-GAAP financial measures, including “Adjusted Revenue Growth,” “Adjusted EBITDA,” “Adjusted Operating Income,” “Adjusted Net Income,” “Adjusted Net Income Per Share” and “Free Cash Flow.” Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the following schedules. Adjusted Revenue Growth: Adjusted Revenue Growth is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Revenue Growth in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Revenue Growth is defined as the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Not all companies use identical calculations of Adjusted Revenue Growth, therefore this presentation may not be comparable to other similarly titled measures of other companies. Three Months Ended June 30, 2026 Reported net sales % change 2 % Less: foreign currency exchange and commodities — % Adjusted revenue growth 2 % Six Months Ended June 30, 2026 Reported net sales % change 2 % Less: foreign currency exchange and commodities 1 % Adjusted revenue growth 1 % Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted EBITDA in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted EBITDA is defined as net income (loss) before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, income (loss) from discontinued operations, restructuring and other special items. Not all companies use identical calculations of Adjusted EBITDA, therefore this presentation may not be comparable to other similarly titled measures of other companies. EBITDA margin represents EBITDA as a percentage of net sales, and Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales. Consolidated Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) $ Margin $ Margin $ Margin $ Margin Net income attributable to Aptiv $ 248 7.6 % $ 393 12.3 % $ 437 6.9 % $ 382 6.2 % (Loss) income from discontinued operations, net of tax (50 ) 128 10 257 Income from continuing operations $ 298 9.1 % $ 265 8.3 % $ 427 6.8 % $ 125 2.0 % Interest expense 62 92 146 185 Income tax expense 52 16 94 342 Net loss attributable to redeemable noncontrolling interest (1 ) (1 ) (2 ) (2 ) Depreciation and amortization (a) 195 190 384 379 EBITDA $ 606 18.5 % $ 562 17.6 % $ 1,049 16.6 % $ 1,029 16.6 % Other income, net (58 ) (15 ) (55 ) (19 ) Net gain on equity method transactions (3 ) (46 ) (3 ) (46 ) Equity loss, net of tax 17 14 34 29 Restructuring 24 27 40 49 Separation costs 18 1 23 1 Other acquisition and portfolio project costs 8 5 15 12 Compensation expense related to acquisitions 1 4 3 9 Gain on asset sale — (5 ) — (5 ) Adjusted EBITDA $ 613 18.7 % $ 547 17.1 % $ 1,106 17.5 % $ 1,059 17.1 % Segment Adjusted EBITDA (in millions) Three Months Ended June 30, 2026 Engineered Components Intelligent Systems Total Operating income $ 267 $ 100 $ 367 Restructuring 8 16 24 Separation costs 10 8 18 Other acquisition and portfolio project costs 3 5 8 Compensation expense related to acquisitions — 1 1 Depreciation and amortization (a) 115 80 195 Adjusted EBITDA $ 403 $ 210 $ 613 Three Months Ended June 30, 2025 Engineered Components Intelligent Systems Total Operating income $ 209 $ 116 $ 325 Restructuring 17 10 27 Separation costs 1 — 1 Other acquisition and portfolio project costs 1 4 5 Compensation expense related to acquisitions — 4 4 Gain on business divestitures and other transactions — (5 ) (5 ) Depreciation and amortization (a) 115 75 190 Adjusted EBITDA $ 343 $ 204 $ 547 Six Months Ended June 30, 2026 Engineered Components Intelligent Systems Total Operating income $ 468 $ 173 $ 641 Restructuring 12 28 40 Separation costs 13 10 23 Other acquisition and portfolio project costs 7 8 15 Compensation expense related to acquisitions — 3 3 Depreciation and amortization (a) 229 155 384 Adjusted EBITDA $ 729 $ 377 $ 1,106 Six Months Ended June 30, 2025 Engineered Components Intelligent Systems Total Operating income $ 403 $ 211 $ 614 Restructuring 33 16 49 Separation costs 1 — 1 Other acquisition and portfolio project costs 4 8 12 Compensation expense related to acquisitions — 9 9 Gain on business divestitures and other transactions — (5 ) (5 ) Depreciation and amortization (a) 229 150 379 Adjusted EBITDA $ 670 $ 389 $ 1,059 Adjusted Operating Income: Adjusted Operating Income is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes this measure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income (loss) before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, income (loss) from discontinued operations, amortization, restructuring and other special items. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable to other similarly titled measures of other companies. Operating income margin represents Operating income as a percentage of net sales, and Adjusted Operating Income margin represents Adjusted Operating Income as a percentage of net sales. Consolidated Adjusted Operating Income Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 ($ in millions) $ Margin $ Margin $ Margin $ Margin Net income attributable to Aptiv $ 248 7.6 % $ 393 12.3 % $ 437 6.9 % $ 382 6.2 % (Loss) income from discontinued operations, net of tax (50 ) 128 10 257 Income from continuing operations $ 298 9.1 % $ 265 8.3 % $ 427 6.8 % $ 125 2.0 % Interest expense 62 92 146 185 Other income, net (58 ) (15 ) (55 ) (19 ) Net gain on equity method transactions (3 ) (46 ) (3 ) (46 ) Income tax expense 52 16 94 342 Equity loss, net of tax 17 14 34 29 Net loss attributable to redeemable noncontrolling interest (1 ) (1 ) (2 ) (2 ) Operating income $ 367 11.2 % $ 325 10.2 % $ 641 10.2 % $ 614 9.9 % Amortization 52 52 104 103 Restructuring 24 27 40 49 Separation costs 18 1 23 1 Other acquisition and portfolio project costs 8 5 15 12 Asset impairments 3 1 3 6 Compensation expense related to acquisitions 1 4 3 9 Gain on asset sale — (5 ) — (5 ) Adjusted operating income $ 473 14.4 % $ 410 12.8 % $ 829 13.1 % $ 789 12.8 % Segment Adjusted Operating Income (in millions) Three Months Ended June 30, 2026 Engineered Components Intelligent Systems Total Operating income $ 267 $ 100 $ 367 Amortization 29 23 52 Restructuring 8 16 24 Separation costs 10 8 18 Other acquisition and portfolio project costs 3 5 8 Asset impairments — 3 3 Compensation expense related to acquisitions — 1 1 Adjusted operating income $ 317 $ 156 $ 473 Three Months Ended June 30, 2025 Engineered Components Intelligent Systems Total Operating income $ 209 $ 116 $ 325 Amortization 30 22 52 Restructuring 17 10 27 Separation costs 1 — 1 Other acquisition and portfolio project costs 1 4 5 Asset impairments 1 — 1 Compensation expense related to acquisitions — 4 4 Gain on asset sale — (5 ) (5 ) Adjusted operating income $ 259 $ 151 $ 410 Six Months Ended June 30, 2026 Engineered Components Intelligent Systems Total Operating income $ 468 $ 173 $ 641 Amortization 59 45 104 Restructuring 12 28 40 Separation costs 13 10 23 Other acquisition and portfolio project costs 7 8 15 Asset impairments — 3 3 Compensation expense related to acquisitions — 3 3 Adjusted operating income $ 559 $ 270 $ 829 Six Months Ended June 30, 2025 Engineered Components Intelligent Systems Total Operating income $ 403 $ 211 $ 614 Amortization 59 44 103 Restructuring 33 16 49 Separation costs 1 — 1 Other acquisition and portfolio project costs 4 8 12 Asset impairments 6 — 6 Compensation expense related to acquisitions — 9 9 Gain on asset sale — (5 ) (5 ) Adjusted operating income $ 506 $ 283 $ 789 Adjusted Net Income and Adjusted Net Income Per Share: Adjusted Net Income and Adjusted Net Income Per Share, which are non-GAAP measures, are presented as supplemental measures of the Company’s financial performance which management believes are useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Management utilizes Adjusted Net Income and Adjusted Net Income Per Share in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Net Income is defined as net (loss) income attributable to Aptiv before income (loss) from discontinued operations, amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding, for the period. Not all companies use identical calculations of Adjusted Net Income and Adjusted Net Income Per Share, therefore this presentation may not be comparable to other similarly titled measures of other companies. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except per share amounts) Net income attributable to Aptiv $ 248 $ 393 $ 437 $ 382 (Loss) income from discontinued operations, net of tax (50 ) 128 10 257 Income from continuing operations $ 298 $ 265 $ 427 $ 125 Adjusting items: Amortization 52 52 104 103 Restructuring 24 27 40 49 Separation costs 18 1 23 1 Other acquisition and portfolio project costs 8 5 15 12 Asset impairments 3 1 3 6 Compensation expense related to acquisitions 1 4 3 9 Gain on asset sale — (5 ) — (5 ) (Gain) loss on extinguishment of debt (44 ) — (39 ) 3 Gain on change in fair value of publicly traded equity securities — (3 ) — (1 ) Net gain on equity method transactions (3 ) (46 ) (3 ) (46 ) Tax impact of intercompany transfers of intellectual property and other related transactions (a) — — — 294 Tax impact of adjusting items (b) (12 ) (16 ) (28 ) (33 ) Adjusted net income attributable to Aptiv $ 345 $ 285 $ 545 $ 517 Weighted average number of diluted shares outstanding 212.10 218.11 212.53 224.32 Diluted net income per share attributable to Aptiv $ 1.40 $ 1.21 $ 2.01 $ 0.55 Adjusted net income per share $ 1.63 $ 1.31 $ 2.56 $ 2.30 Free Cash Flow: Free Cash Flow is presented as a supplemental measure of the Company’s liquidity, which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions, evaluating its liquidity and determining appropriate capital allocation strategies. Management believes this measure is useful to investors to understand how the Company’s core operating activities generate and use cash. Free Cash Flow is defined as cash provided by (used in) operating activities from continuing operations less capital expenditures. Not all companies use identical calculations of Free Cash Flow, therefore this presentation may not be comparable to other similarly titled measures of other companies. The calculation of Free Cash Flow does not reflect cash used to service debt, pay dividends or repurchase shares, and therefore, does not necessarily reflect funds available for investment or other discretionary uses. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Net cash provided by operating activities from continuing operations $ 137 $ 326 $ 82 $ 531 Capital expenditures (125 ) (107 ) (278 ) (267 ) Free cash flow $ 12 $ 219 $ (196 ) $ 264 Financial Guidance: The reconciliation of the forward-looking non-GAAP financial measures provided in the Company’s financial guidance to the most comparable forward-looking GAAP measure for the third quarter and full year 2026 is as follows. This reflects Aptiv without the EDS business, which is presented as discontinued operations. New Aptiv (Pro Forma) Estimated Q3 Estimated Full Year 2026 (a) 2026 (a) ($ in millions) Adjusted EBITDA $ Margin (b) $ Margin (b) Net income from continuing operations attributable to Aptiv $ 190 6.0 % $ 880 6.9 % Interest expense 60 245 Income tax expense 50 220 Net loss attributable to noncontrolling interest (c) — (5 ) Depreciation and amortization 195 775 EBITDA $ 495 15.6 % $ 2,115 16.7 % Other income, net (5 ) (60 ) Net gain on equity method transactions — (5 ) Equity loss, net of tax 20 70 Restructuring 30 95 Other acquisition and portfolio project costs, including costs related to the spin-off of the EDS business 20 70 Pro forma adjustment to continuing operations presentation (d) — 55 Adjusted EBITDA $ 560 17.7 % $ 2,340 18.4 % New Aptiv (Pro Forma) Estimated Q3 Estimated Full Year 2026 (a) 2026 (a) Adjusted Net Income Per Share ($ and shares in millions, except per share amounts) Net income from continuing operations attributable to Aptiv $ 190 $ 880 Adjusting items: Amortization 50 210 Restructuring 30 95 Other acquisition and portfolio project costs, including costs related to the spin-off of the EDS business 20 70 Asset impairments — 5 Net gain on equity method transactions — (5 ) Gain on extinguishment of debt — (45 ) Tax impact of adjusting items (20 ) (60 ) Pro forma adjustment to continuing operations presentation (b) — 55 Adjusted net income attributable to Aptiv $ 270 $ 1,205 Weighted average number of diluted shares outstanding 208.00 211.50 Diluted net income per share attributable to Aptiv $ 0.91 $ 4.16 Adjusted net income per share $ 1.30 $ 5.70 New Aptiv (Pro Forma) Estimated Full Year 2026 (a) Free Cash Flow (in millions) Net cash provided by operating activities from continuing operations $ 1,320 Capital expenditures (600 ) Pro forma adjustment to continuing operations presentation (b) (45 ) Free cash flow $ 675
	Saved 2026-08-04 11:04 1mo ago Published 2026-08-04 06:30 1mo ago	Hut 8 má 949 MW smluvní kapacity a 7,5 mld. USD investičního financování projektů Hut 8 oznámila 949 MW smluvní IT kapacity a zhruba 26,6 mld. USD očekávané hodnoty kontraktů. Zároveň uzavřela 7,5 mld. USD investičního financování projektů. HUT Hut 8	FMP Stock News	92
Original source text Power-first execution model compounds across the Company's first two AI data center campuses 949 MW of contracted IT capacity, approximately $26.6 billion of expected aggregate base-term contract value, more than $1.75 billion of expected average annual NOI, and $7.5 billion of investment-grade project financing secured to date Earnings Release Highlights Completed the commercialization of Hut 8's first gigawatt-scale AI data center campus, signing, subsequent to quarter-end, a second 352 MW IT lease at Beacon Point. Closed $7.5 billion of fully amortizing investment-grade project financing across two offerings in a single quarter, each on a non-dilutive basis and without recourse to Hut 8 Corp. Scaled expected aggregate base-term contract value across the portfolio to approximately $26.6 billion across 949 MW of contracted AI data center capacity, representing more than $1.75 billion of expected average annual NOI, leased or backstopped exclusively by investment-grade counterparties. Facilities representing 1,330 MW of utility capacity in active construction across River Bend and Beacon Point, targeted for initial data hall delivery in Q2 2027 and Q3 2027, respectively. , /PRNewswire/ -- Hut 8 Corp. (Nasdaq, TSX: HUT) ("Hut 8" or the "Company"), an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies, today reported its financial results for the second quarter of 2026. Asher Genoot, CEO of Hut 8, said: "In the second quarter, our power-first model drove significant commercial and financial milestones across our first two AI data center campuses. To date, it has produced data center leases representing 949 MW of contracted IT capacity, approximately $26.6 billion of expected aggregate base-term value leased or backstopped by investment-grade counterparties, more than $1.75 billion of expected average annual NOI, and $7.5 billion of investment-grade construction financing. "Three milestones during the quarter and the weeks that followed demonstrated our momentum. At Beacon Point, our existing high-investment-grade tenant returned within months of the Phase 1 lease to commit to a second 352 MW IT lease, commercializing the campus's full one-gigawatt of utility capacity. In the credit markets, we closed $7.5 billion across two investment-grade offerings in a single quarter, opening with our inaugural River Bend financing and returning weeks later to execute on improved terms for Beacon Point Phase 1. Commitments of this depth from some of the market's most sophisticated counterparties underscore the strength of a model built to perform repeatedly at scale. "Delivery is now our central priority. We continue to apply the full weight of our organization to deliver River Bend and Beacon Point: operating rigor built through years of developing energy-intensive infrastructure at scale and a team we continue to expand ahead of the growth to come. Bringing these campuses online will put nearly a gigawatt of contracted IT capacity into service and establish the foundation from which we intend to build the defining infrastructure platform of the AI era." Second Quarter 2026 Highlights Power Generated $1.2 million in second quarter revenue from Power Generation and Managed Services. Advanced, following the execution of the Phase 2 lease subsequent to quarter-end, 500 MW of utility capacity from Beacon Point into Energy Capacity Under Construction, increasing total Energy Capacity Under Construction to 1,330 MW, comprising 330 MW at the River Bend campus and 1,000 MW at the Beacon Point campus. Digital Infrastructure Generated $1.3 million in second quarter revenue from Colocation services. An additional $27.0 million of Colocation revenue, including reimbursements, from the Company's share of the unconsolidated King Mountain Joint Venture is recognized in the "Equity in earnings of unconsolidated joint venture" line item. Advanced the buildout of River Bend, targeted for initial data hall delivery in the second quarter of 2027. Progress during the quarter included the commencement of vertical construction, continued construction of the campus substation, and receipt of initial deliveries of long-lead equipment. Commenced the buildout of Beacon Point, with construction of Phase 1 and the campus substation underway, targeted for initial energization in the first quarter of 2027 and initial data hall delivery in the third quarter of 2027. Completed the commercialization of Hut 8's first gigawatt-scale AI data center campus, signing, subsequent to quarter-end, a second 15-year, 352 MW IT lease at Beacon Point with the same high-investment-grade tenant as in Beacon Point Phase 1, representing approximately $9.8 billion in expected base-term contract value and approximately $655.0 million of expected average annual NOI on a triple-net, take-or-pay basis and bringing total base-term contract value across the campus to approximately $19.6 billion and expected average annual NOI to approximately $1.3 billion. Renewal options increase potential campus-level contract value to $50.2 billion. Compute Generated $72.5 million in second quarter revenue from ASIC Compute, AI Cloud, and Traditional Cloud solutions. Capital Strategy and Balance Sheet Maintained a strong liquidity position, supported by approximately $8.1 billion in unrestricted cash, restricted cash and cash equivalents, and Bitcoin holdings, including $7.6 billion attributable to Hut 8 and $497.2 million attributable to American Bitcoin, as of June 30, 2026. Closed $7.5 billion of fully amortizing investment-grade project financing across two offerings, comprising $3.25 billion of senior secured notes for the River Bend campus, the first investment-grade construction financing for a single-sponsor data center project, and $4.25 billion of senior secured notes for Beacon Point Phase 1, rated Baa2 and priced 20 basis points inside the issuance spread of the River Bend notes, in each case on a non-dilutive basis and without recourse to Hut 8 Corp. Refinanced the Company's $200.0 million Bitcoin-backed credit facility through a new facility with FalconX, reducing facility cost of debt from 9.0% to 7.0% and, upon the closing of the new facility, releasing approximately 3,300 BTC from collateral. Following the conversion of the Company's $150.0 million Coatue convertible note, Hut 8 carries no general recourse debt at the parent level. Advanced financing plans for Beacon Point Phase 2, evaluating a range of structures consistent with the Company's disciplined approach to funding campus development. Development Pipeline As of June 30, 2026, Hut 8's development pipeline totaled approximately 8,660 MW, including 5,400 MW of Energy Capacity Under Diligence, 1,880 MW of Energy Capacity Under Exclusivity, 50 MW of Energy Capacity Under Development, and 1,330 MW of Energy Capacity Under Construction. Stage Description Utility Capacity As of June 30, 2026 Energy Capacity Under Diligence Greenfield sites identified for large-load use cases such as AI, HPC, ASIC compute, industrial applications such as next-generation manufacturing, and other energy-intensive technologies. At this stage, Hut 8 generally invests limited development capital to evaluate critical factors, including power availability, infrastructure readiness, fiber connectivity, and overall commercial viability. 5,400 MW Energy Capacity Under Exclusivity Sites where Hut 8 has secured site control and completed a suitable power study indicating a viable path to the power and infrastructure required for deployment. 1,880 MW1 Energy Capacity Under Development Sites where Hut 8 is actively investing in development and commercialization by executing definitive land and/or power agreements, advancing site design and infrastructure development, and engaging with prospective customers. 50 MW Energy Capacity Under Construction Sites where Hut 8 has executed definitive commercial agreements for the relevant capacity and commenced construction activities. 1,330 MW2 Total All sites under diligence, exclusivity, development, and construction. 8,660 MW1 1. Excludes 1,000 MW of potential expansion capacity at River Bend (subject to the expansion of power at the site), for which Fluidstack holds a ROFO under the River Bend lease. 2. Includes 500 MW of energy capacity at Beacon Point Phase 2, which advanced to Energy Capacity Under Construction subsequent to June 30, 2026. Select Second Quarter 2026 Financial Results Revenue for the three months ended June 30, 2026 was $74.9 million, compared to $41.3 million in the prior-year period, and consisted of $1.2 million in Power revenue, $1.3 million in Digital Infrastructure revenue, and $72.5 million in Compute revenue. Net loss for the three months ended June 30, 2026 was $177.1 million, compared to net income of $137.5 million in the prior-year period. Net loss for the period included $138.6 million of primarily unrealized losses on digital assets, compared to $217.6 million of primarily unrealized gains on digital assets in the prior-year period. Adjusted EBITDA for the three months ended June 30, 2026 was $10.4 million, compared to $4.2 million in the prior-year period. Beginning with the three months ended June 30, 2026, the Company has revised its definition of Adjusted EBITDA to exclude mark-to-market gains and losses on digital assets, and presents Adjusted EBITDA inclusive of digital assets mark-to-market as a separate measure. Prior-period amounts have been recast to conform to the current presentation. Adjusted EBITDA inclusive of digital assets mark-to-market for the three months ended June 30, 2026 was $(94.6) million, compared to $221.2 million in the prior-year period. Reconciliations of these non-GAAP measures to net loss or net income, the most comparable GAAP measure, and explanations of these measures are provided in the tables included below in this press release. Conference Call The Company will host a conference call and webcast to review the results today at 8:30 a.m. ET. To register for the webcast, use the following link: app.webinar.net/aA6jEPYlwy5 Supplemental Materials and Upcoming Communications The Company expects to make available on its website materials designed to accompany the discussion of its results, along with certain supplemental financial information and other data. For important news and information regarding the Company, including investor presentations and timing of future investor conferences, visit the Investor Relations section of the Company's website, hut8.com/investors, and its social media accounts, including on X and LinkedIn. The Company uses its website and social media accounts as primary channels for disclosing key information to its investors, some of which may contain material and previously non-public information. Analyst Coverage A full list of Hut 8 Corp. analyst coverage can be found at hut8.com/investors/stock-info/. About Hut 8 Hut 8 is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies such as AI, high-performance computing, and ASIC compute. The Company develops, commercializes, and operates industrial-scale energy and data center infrastructure through a power-first, innovation-driven approach. For more information, visit hut8.com. Cautionary Note Regarding Forward-Looking Information This press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the expected aggregate base-term contract value and expected average annual net operating income associated with the Company's contracted data center capacity; the potential contract value associated with the exercise of renewal options at the Company's leased data center sites; the development and construction of the Company's River Bend and Beacon Point sites, including the targeted timing of initial energization and data hall delivery; the anticipated completion and operation of the Company's leased data center sites and the expected benefits thereof; the Company's plans and potential financing structures for Beacon Point Phase 2; the Company's future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "allow," "believe," "estimate," "expect," "predict," "can," "might," "potential," "is designed to," "likely," or similar expressions. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, failure of critical systems; geopolitical, social, economic, and other events and circumstances; competition from current and future competitors; risks related to power requirements; cybersecurity threats and breaches; hazards and operational risks; changes in leasing arrangements; Internet-related disruptions; dependence on key personnel; having a limited operating history; attracting and retaining customers; entering into new offerings or lines of business; price fluctuations and rapidly changing technologies; construction of new data centers, data center expansions, or data center redevelopment; predicting facility requirements; strategic alliances or joint ventures; operating and expanding internationally; failing to grow hashrate; purchasing miners; relying on third-party mining pool service providers; uncertainty in the development and acceptance of the Bitcoin network; Bitcoin halving events; competition from other methods of investing in Bitcoin; concentration of Bitcoin holdings; hedging transactions; potential liquidity constraints; legal, regulatory, governmental, and technological uncertainties; physical risks related to climate change; involvement in legal proceedings; trading volatility; and other risks described from time to time in the Company's filings with the U.S. Securities and Exchange Commission. In particular, see the Company's recent and upcoming annual and quarterly reports and other continuous disclosure documents, which are available under the Company's EDGAR profile at sec.gov and SEDAR+ profile at sedarplus.ca. Non-GAAP Financial Measures In addition to its results determined in accordance with GAAP, the Company relies on Adjusted EBITDA, inclusive of digital assets mark-to-market; Adjusted EBITDA; and expected net operating income (NOI) contribution, which are non-GAAP financial measures, to evaluate its business, measure its performance, and inform strategic decision-making. Adjusted EBITDA, Inclusive of Digital Assets Mark-to-Market The Company defines Adjusted EBITDA, inclusive of digital assets mark-to-market, as net loss or income adjusted for interest expense, interest income, income tax benefit or provision, depreciation and amortization, our share of depreciation and amortization from unconsolidated joint ventures, net of basis adjustments, foreign exchange loss or gain, gain on the sale of property and equipment, gain or loss on derivatives, loss on other financial liability, gain on warrant liability, gain on the sale of the Far North joint venture, net of transaction costs, non-recurring transactions, loss or income attributable to non-controlling interests, and stock-based compensation expense. Adjusted EBITDA The Company defines Adjusted EBITDA as Adjusted EBITDA, inclusive of digital assets mark-to-market, further adjusted to exclude loss or gain on digital assets attributable to Hut 8 Corp., thereby removing the effect of mark-to-market fluctuations of digital assets held on the Company's balance sheet. The Company's digital assets are considered primarily long-term holdings, and periodic appreciation or depreciation in the fair value of such holdings does not reflect the results of the Company's core operations. Expected Net Operating Income (NOI) Contribution The Company defines expected net operating income (NOI) contribution as expected lease revenue attributable to a particular lease, less any non-reimbursable operating expenses attributable to the leased property. How the Company Uses These Measures The Company's board of directors and management team use Adjusted EBITDA, inclusive of digital assets mark-to-market, and Adjusted EBITDA to assess the Company's financial performance, as these measures allow for the comparison of operating performance on a consistent basis across periods by removing the effects of the Company's capital structure, such as varying levels of interest expense and income, its asset base, such as depreciation and amortization, and other items, including the non-recurring transactions described above. Adjusted EBITDA further excludes the impact of changes in the fair value of the Company's digital asset holdings, which may otherwise affect the comparability of the Company's financial results across periods. The Company's management team uses expected NOI contribution to evaluate the anticipated operating performance of a particular lease, independent of the Company's consolidated capital structure or asset base, allowing management to assess the economics of individual leasing arrangements on a comparable basis. Investors are encouraged to evaluate each adjustment described above and the reasons the Company's Board and management team believe these measures provide useful supplemental information. Limitations Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, inclusive of digital assets mark-to-market, and Adjusted EBITDA. In evaluating these measures, you should be aware that the Company may incur expenses in the future that are the same as, or similar to, certain adjustments reflected in the calculation of these measures. Accordingly, the presentation of these measures should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. Operating income is the GAAP measure most directly comparable to expected NOI contribution. In evaluating this measure, you should be aware that the Company may incur non-reimbursable lease operating expenses that are not currently known or quantifiable. Accordingly, the Company's presentation of expected NOI contribution should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. Expected NOI contribution also excludes the impact of selling, general and administrative expenses and depreciation and amortization, each of which has a real economic effect and could materially impact the Company's consolidated financial results. No reconciliation of expected NOI contribution to its most directly comparable GAAP measure is included in this press release because the Company is unable to quantify certain amounts that would be required to be included in operating income without unreasonable effort, and any such quantification would imply a degree of precision that could be confusing or misleading to investors. The Company may modify the calculation or presentation of these measures in the future, and any such modification could be material. These measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company's results as reported in accordance with GAAP. Because other companies, including companies in the Company's industry and Real Estate Investment Trusts, may calculate similarly titled measures differently, the Company's non-GAAP measures may not be comparable to those reported by other companies, which limits their usefulness for comparative purposes. Hut 8 Corp. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited, in USD thousands, except share and per share data) Three Months Ended June 30, 2026 2025 Revenue: Power $ 1,176 $ 5,492 Digital Infrastructure 1,285 1,512 Compute 72,471 34,295 Total revenue 74,932 41,299 Cost of revenue (exclusive of depreciation and amortization shown below): ‌ Cost of revenue – Power 826 5,000 Cost of revenue – Digital Infrastructure 1,374 2,120 Cost of revenue – Compute 24,691 14,656 Total cost of revenue 26,891 21,776 Operating expenses: Depreciation and amortization 39,727 19,458 General and administrative expenses 76,080 30,158 Loss (gain) on digital assets 138,597 (217,640) Gain on sale of property and equipment (33) (312) Total operating expenses (income) 254,371 (168,336) Operating (loss) income (206,330) 187,859 Other (expense) income: Foreign exchange (loss) gain (3,219) 3,114 Interest expense (51,160) (8,396) Interest income 27,085 — Gain (loss) on derivatives 18,315 (18,403) Loss on other financial liability (98) (181) Gain on warrant liability 22 — Gain on sale of the Far North JV, net of transaction costs 1,110 — Equity in earnings of unconsolidated joint venture 5,671 1,064 Total other (expense) income (2,274) (22,802) Net (loss) income before income taxes (208,604) 165,057 Income tax benefit (provision) 31,462 (27,574) Net (loss) income (177,142) 137,483 Less: Net loss (income) attributable to non-controlling interests 26,951 (171) Net (loss) income attributable to Hut 8 Corp. $ (150,191) $ 137,312 Net (loss) income per share of common stock: Basic attributable to Hut 8 Corp. $ (1.27) $ 1.32 Diluted attributable to Hut 8 Corp. $ (1.27) $ 1.18 Weighted average number of shares of common stock outstanding: Basic 118,483,238 104,246,041 Diluted 118,483,238 119,018,761 Net (loss) income $ (177,142) $ 137,483 Other comprehensive (loss) income: Foreign currency translation adjustments (12,701) 39,892 Total comprehensive (loss) income (189,843) 177,375 Less: Comprehensive loss (income) attributable to non-controlling interests 26,951 (227) Comprehensive (loss) income attributable to Hut 8 Corp. $ (162,892) $ 177,148 See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements. Adjusted EBITDA reconciliation: Three Months Ended June 30, (in USD thousands) 2026 2025 Net (loss) income $ (177,142) $ 137,483 Interest expense 51,160 8,396 Interest income (27,085) — Income tax (benefit) provision (31,462) 27,574 Depreciation and amortization 39,727 19,458 Share of unconsolidated joint venture depreciation, amortization, net of basis adjustments (1) 2,159 5,543 Foreign exchange loss (gain) 3,219 (3,114) Gain on sale of property and equipment (33) (312) (Gain) loss on derivatives (18,315) 18,403 Loss on other financial liability 98 181 Gain on warrant liability (22) — Gain on sale of the Far North JV, net of transaction costs (1,110) — Non-recurring transactions (2) — 3,739 Loss (income) attributable to non-controlling interest 12,985 (3,786) Stock-based compensation expense 51,239 7,640 Adjusted EBITDA, inclusive of digital assets mark-to-market $ (94,582) $ 221,205 Loss (gain) on digital assets attributable to Hut 8 Corp. 105,031 (217,014) Adjusted EBITDA $ 10,449 $ 4,191 (1) Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income in accordance with ASC 323. See Note 8. Investment in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail. (2) There were no non-recurring transactions for the three months ended June 30, 2026. Non-recurring transactions for the three months ended June 30, 2025 represent approximately $3.7 million of restructuring costs and ABTC-related transaction costs. SOURCE Hut 8 Corp.
	Saved 2026-08-04 11:02 1mo ago Published 2026-08-04 06:30 1mo ago	Vivid Seats zvýšila celoroční výhled Adjusted EBITDA Vivid Seats ve 2. čtvrtletí vykázala tržby 129,9 mil. USD a čistou ztrátu 14,3 mil. USD. Zároveň zvýšila celoroční výhled Adjusted EBITDA na 34,0–40,0 mil. USD. SEAT Vivid Seats	FMP Stock News	92
Original source text CHICAGO, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Vivid Seats Inc. (Nasdaq: SEAT) (“Vivid Seats” or “we”), a leading marketplace that utilizes its technology platform to connect millions of buyers with thousands of ticket sellers across hundreds of thousands of events each year, today provided financial results for the second quarter ended June 30, 2026. “We are encouraged by the progress we’ve made through the first half of the year. Our second quarter results exceeded expectations as we delivered sequential growth driven by the extraordinary demand created by the FIFA World Cup,” said Lawrence Fey, Chief Executive Officer of Vivid Seats. “We continue to successfully execute against our strategic objectives. With leading technology, a compelling value proposition, differentiated data, and a relentless focus on operational excellence, we remain confident in our ability to drive long-term shareholder value.” Second Quarter 2026 Key Financial Highlights Marketplace GOV of $659.4 millionRevenues of $129.9 millionNet loss of $14.3 millionAdjusted EBITDA of $12.6 million Key Business Metrics & Non-U.S. GAAP Financial Measure We use the following key business metrics and non-U.S. GAAP financial measure to evaluate our performance, identify trends, formulate financial projections, and make strategic decisions. We believe this information is useful to investors and others in understanding and evaluating our results of operations in the same manner as management. The following table summarizes our key business metrics and non-U.S. GAAP financial measure for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Marketplace GOV(1) $659,359 $685,488 $1,271,725 $1,505,847 Marketplace orders(2) 1,825 2,173 3,541 4,469 Resale orders(3) 84 97 166 202 Adjusted EBITDA(4) $12,592 $14,356 $22,078 $36,077 (1) Marketplace Gross Order Value (“Marketplace GOV”) represents the total transactional amount of Marketplace orders processed on our online platform during a period, inclusive of fees, exclusive of taxes, and net of event cancellations. During the three and six months ended June 30, 2026, event cancellations negatively impacted Marketplace GOV by $16.4 million and $25.4 million, respectively, compared to $20.3 million and $35.8 million during the three and six months ended June 30, 2025, respectively.(2) Marketplace orders represent the total volume of Marketplace segment transactions processed on our online platform during a period, net of event cancellations. During the three and six months ended June 30, 2026, our Marketplace segment experienced 30,767 and 60,201 event cancellations, respectively, compared to 47,845 and 90,198 event cancellations during the three and six months ended June 30, 2025, respectively.(3) Resale orders represent the total volume of Resale segment transactions processed on a given platform (including our own) during a period, net of event cancellations. During the three and six months ended June 30, 2026, our Resale segment experienced 605 and 1,072 event cancellations, respectively, compared to 1,276 and 2,161 event cancellations during the three and six months ended June 30, 2025, respectively.(4) Adjusted EBITDA is a financial measure not defined under accounting principles generally accepted in the United States of America (“U.S. GAAP”). See “Adjusted EBITDA” below for more information, including a reconciliation of adjusted EBITDA to net loss, the most directly comparable U.S. GAAP financial measure. 2026 Financial Outlook For the year ending December 31, 2026, we now anticipate: Marketplace GOV in the range of $2.3 billion to $2.6 billion (previously $2.2 billion to $2.6 billion)Adjusted EBITDA in the range of $34.0 million to $40.0 million (previously $30.0 million to $40.0 million)* * We calculate forward-looking adjusted EBITDA based on internal forecasts that omit certain information that would be included in forward-looking net loss, the most directly comparable U.S. GAAP financial measure. We do not attempt to provide a reconciliation of forward-looking adjusted EBITDA to forward-looking net loss because the timing and/or probable significance of certain excluded items that have not yet occurred and are outside of our control is inherently uncertain and unavailable without unreasonable efforts. Such items could have a significant and unpredictable impact on our future U.S. GAAP financial results. Webcast Details Vivid Seats will host a webcast at 8:30 a.m. Eastern Time today to discuss the second quarter 2026 financial results, business updates, and financial outlook. Participants may access the webcast and supplemental earnings presentation by visting investors.vividseats.com/events-and-presentations. About Vivid Seats Founded in 2001, Vivid Seats (Nasdaq: SEAT) is a leading online ticket marketplace connecting fans to the live events, artists, and teams they love. Vivid Seats is committed to delivering the most rewarding ticket-buying experience for fans through competitive everyday pricing backed by its Lowest Price Guarantee, an industry-leading rewards program, and award-winning customer service. The Chicago-based company offers one of the widest selections of live events across North America, powered by proprietary technology that makes discovering and buying tickets simple, affordable, and reliable. Learn more by downloading the Vivid Seats app or visiting vividseats.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “can,” “continue,” “could,” “design,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “propose,” “seek,” “should,” “target,” “will,” and “would,” as well as similar expressions that predict or indicate future events or do not relate to historical matters, are intended to identify such forward-looking statements. Such forward-looking statements may relate to, without limitation: our business strategy and objectives; our future operating results and financial performance, including our expectations with respect to our fiscal year 2026 Marketplace GOV and adjusted EBITDA; and our expectations with respect to live event industry growth, the supply of and demand for live events, and our competitive positioning. Forward-looking statements are not guarantees of future performance, conditions, or results, and are subject to risks and uncertainties that can be difficult to predict and/or outside of our control. Therefore, actual results may differ materially from those contemplated by any such forward-looking statements. Such risks and uncertainties include, but are not limited to: the supply of and demand for live events; the impact of adverse economic conditions and other factors affecting discretionary consumer and corporate spending; our ability to develop and maintain relationships with ticket buyers, sellers, and partners; the impact of changes to internet search engine algorithms and mobile app marketplace rules; the impact of artificial intelligence on how consumers search for live event tickets; our ability to attract ticket sellers and buyers to our platform in the increasingly competitive ticketing industry; our ability to continue to maintain and improve our platform; the impact of extraordinary events, including disease epidemics; our ability to identify suitable acquisition targets and to complete and realize the expected benefits of acquisitions and other strategic investments; our ability to attract, hire, motivate, and retain our senior management team and other highly skilled personnel; our ability to comply with applicable laws and regulations; the ability of ticket holders to sell their tickets on the secondary market unencumbered; the impact of unfavorable outcomes in legislation and legal proceedings; our ability to maintain the integrity of our information systems and infrastructure, and to identify, assess, and manage relevant cybersecurity risks; our ability to generate sufficient cash flows and/or obtain additional financing when necessary or desirable; and other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as in our press releases and other filings with the Securities and Exchange Commission. Except as required by applicable law, we undertake no obligation to update or revise any such forward-looking statements, which speak only as of the date of this press release. Contact: Investors [email protected] Media [email protected] VIVID SEATS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) June 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $136,676 $102,702 Restricted cash 904 604 Accounts receivable – net 45,036 30,664 Inventory – net 26,925 18,166 Prepaid expenses and other current assets 39,191 26,336 Total current assets 248,732 178,472 Property and equipment – net 11,268 12,373 Right-of-use assets – net 9,769 10,515 Intangible assets – net 124,168 141,528 Goodwill – net 283,468 283,915 Deferred tax assets – net 1,296 1,123 Investments 5,465 5,365 Other assets 4,639 3,575 Total assets $688,805 $636,866 Liabilities and shareholders' deficit Current liabilities: Accounts payable $230,849 $153,418 Accrued expenses and other current liabilities 126,476 125,957 Deferred revenue 17,331 19,973 Current maturities of long-term debt 3,930 3,930 Total current liabilities 378,586 303,278 Long-term debt – net 381,836 383,431 Long-term lease liabilities 15,260 16,452 Other liabilities 18,202 18,834 Total liabilities 793,884 721,995 Commitments and contingencies Shareholders' deficit: Class A common stock, $0.0001 par value; 500,000,000 shares authorized, 12,190,860 and 11,712,157 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively 23 23 Additional paid-in capital 1,376,687 1,368,067 Treasury stock, at cost, 949,665 shares at June 30, 2026 and December 31, 2025 (93,920) (93,920)Accumulated deficit (1,388,424) (1,359,472)Accumulated other comprehensive income 555 173 Total shareholders' deficit (105,079) (85,129)Total liabilities and shareholders' deficit $688,805 $636,866 VIVID SEATS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues $129,861 $143,566 $255,644 $307,589 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 38,642 42,429 77,837 86,954 Marketing and selling 52,753 53,800 102,704 117,912 General and administrative 32,589 46,272 65,706 94,354 Depreciation and amortization 12,318 12,341 24,626 23,966 Impairment charges — 320,449 — 320,449 Total costs and expenses 136,302 475,291 270,873 643,635 Loss from operations (6,441) (331,725) (15,229) (336,046)Interest expense – net 6,055 5,634 11,986 11,299 Other expense (income) – net 945 (150,197) 2,015 (154,351)Loss on extinguishment of debt — — — 801 Loss before income taxes (13,441) (187,162) (29,230) (193,795)Income tax expense (benefit) 880 76,165 (278) 79,320 Net loss (14,321) (263,327) (28,952) (273,115)Net loss attributable to redeemable noncontrolling interests — (123,652) — (127,498)Net loss attributable to Class A common stockholders $(14,321) $(139,675) $(28,952) $(145,617) VIVID SEATS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities Net loss $(28,952) $(273,115)Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 24,626 23,966 Amortization of leases 721 720 Amortization of deferred financing costs 474 485 Equity-based compensation 9,085 22,403 Loss on asset disposals 86 196 Change in fair value of derivative asset 338 573 Deferred income tax expense (benefit) (403) 76,707 Non-cash interest expense – net 269 334 Foreign currency loss (gain) – net 1,469 (3,574)Change in fair value of Intermediate Warrants — (4,849)Loss on extinguishment of debt — 801 Adjustment of liabilities under TRA — (149,172)Impairment charges — 320,449 Write-off of Sponsorship Loan — 2,024 Changes in operating assets and liabilities: Accounts receivable – net (14,520) (906)Inventory – net (8,764) (13,018)Prepaid expenses and other current assets (12,869) 3,613 Accounts payable 77,670 (29,394)Accrued expenses and other current liabilities (243) (28,104)Deferred revenue (2,643) (3,826)Long-term lease liabilities (1,183) (1,085)Other assets and liabilities – net 47 864 Net cash provided by (used in) operating activities 45,208 (53,908)Cash flows from investing activities Purchases of property and equipment (23) (2,043)Purchases of personal seat licenses (625) (960)Investments in developed technology (5,993) (8,341)Purchases of seat images (287) (321)Net cash used in investing activities (6,928) (11,665)Cash flows from financing activities Payments of taxes related to net settlement of equity incentive awards (686) (1,742)Payments of 2025 First Lien Loan (1,965) (983)Payments toward Acquired Domain Name Obligation (1,000) (1,000)Payment of deferred financing costs and other debt-related expenses — (162)Tax distributions to redeemable noncontrolling interests — (1,689)Repurchases of Class A common stock — (15,862)Payment of liabilities under TRA — (4,005)Payments of 2024 First Lien Loan — (76,986)Proceeds from 2025 First Lien Loan — 76,986 Net cash used in financing activities (3,651) (25,443)Effect of exchange rate changes on cash, cash equivalents, and restricted cash (355) 354 Net increase (decrease) in cash, cash equivalents, and restricted cash 34,274 (90,662)Cash, cash equivalents, and restricted cash – beginning of period 103,306 244,648 Cash, cash equivalents, and restricted cash – end of period $137,580 $153,986 Supplemental disclosures of cash flow information Cash paid for interest $12,086 $14,883 Cash paid for income taxes, net of income tax refunds received $268 $1,953 Adjusted EBITDA Adjusted EBITDA is a non-U.S. GAAP financial measure that is used by investors and others to evaluate companies in our industry. Adjusted EBITDA is also used by management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. We believe adjusted EBITDA is useful for understanding, evaluating, and highlighting trends in our operating results and for making period-to-period comparisons of our business performance because it excludes the impact of items that are outside of our control and/or not reflective of ongoing performance related directly to the operation of our business. Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. Adjusted EBITDA does not reflect all amounts associated with our operating results as determined in accordance with U.S. GAAP and specifically excludes certain recurring costs such as: income tax expense (benefit); interest expense – net; depreciation and amortization; sales tax liabilities; transaction costs; equity-based compensation; litigation, settlements, and related costs; loss on asset disposals; change in fair value of derivative asset; foreign currency loss (gain) – net; severance compensation; change in fair value of warrants; loss on extinguishment of debt; adjustment of liabilities under our former Tax Receivable Agreement (“TRA”) entered into with the existing unitholders of Hoya Intermediate, LLC; and impairment charges. In addition, other companies may calculate adjusted EBITDA differently than we do, thereby limiting its usefulness as a comparative tool. We compensate for these limitations by providing specific information regarding the U.S. GAAP amounts that are excluded from our presentation of adjusted EBITDA. The following table presents a reconciliation of adjusted EBITDA to net loss, the most directly comparable U.S. GAAP financial measure, for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss $(14,321) $(263,327) $(28,952) $(273,115)Adjustments to reconcile net loss to adjusted EBITDA: Income tax expense (benefit) 880 76,165 (278) 79,320 Interest expense – net 6,055 5,634 11,986 11,299 Depreciation and amortization 12,318 12,341 24,626 23,966 Sales tax liability(1) 204 431 441 (1,360)Transaction costs(2) 138 2,172 930 7,881 Equity-based compensation(3) 4,671 11,652 9,085 22,403 Litigation, settlements, and related costs(4) 1,687 352 1,836 705 Loss on asset disposals(5) 27 149 86 196 Change in fair value of derivative asset(6) 142 223 338 573 Foreign currency loss (gain) – net(7) 779 (1,533) 1,735 (3,574)Severance compensation(8) 12 554 245 554 Change in fair value of Intermediate Warrants(9) — (1,734) — (4,849)Loss on extinguishment of debt(10) — — — 801 Adjustment of liabilities under TRA(11) — (149,172) — (149,172)Impairment charges(12) — 320,449 — 320,449 Adjusted EBITDA $12,592 $14,356 $22,078 $36,077 (1) During the three and six months ended June 30, 2026 and 2025, we accrued for additional uncollected indirect tax liabilities in jurisdictions where we believed it was probable we should remit payment to U.S. and foreign governmental tax authorities before all required amounts are collected from the customer. We also received abatements and recognized other reductions to the balance of the liability related to uncollected indirect taxes (including sales taxes).(2) Consists of legal, accounting, tax, and other professional fees, integration costs, and other transaction-related expenses, none of which are considered indicative of our core operating performance. Costs in the three and six months ended June 30, 2026 primarily related to various strategic transactions and investments. Costs in three and six months ended June 30, 2025 primarily related to potential strategic transactions that were explored during the period, the February 2025 refinancing of our first lien term loan, repurchases of Class A common stock, and various strategic transactions and investments.(3) Relates to equity incentive awards granted to our employees, directors, and consultants pursuant to our 2021 Incentive Award Plan and shares of Class A common stock purchased by our employees pursuant to our 2021 Employee Stock Purchase Plan, neither of which are considered indicative of our core operating performance.(4) Relates to external legal costs, settlement costs, and insurance recoveries related to certain non-ordinary course legal and regulatory matters that are not considered indicative of our core operating performance.(5) Relates to disposals of fixed assets, which are not considered indicative of our core operating performance.(6) Relates to the revaluation of derivatives recorded at fair value, which revaluations are not considered indicative of our core operating performance.(7) Relates to net realized and unrealized losses (gains) resulting from the impact of exchange rate changes on transactions denominated in non-functional currencies, which are not considered indicative of our core operating performance. (8) Relates to severance-related payments made to terminated employees as a result of a reduction in employee headcount and the departure of certain members of our leadership team, which are not considered indicative of our core operating performance.(9) Relates to the revaluation of warrants issued in connection with the 2021 transaction pursuant to which Horizon Acquisition Corporation merged with and into us that entitled Hoya Topco, LLC to purchase common units of Hoya Intermediate, LLC, which revaluations are not considered indicative of our core operating performance.(10) Relates to losses incurred in connection with the extinguishment of our former first lien term loan, which are not considered indicative of our core operating performance.(11) Relates to the remeasurement and settlement of the TRA liability, which remeasurements and settlements are not considered indicative of our core operating performance.(12) Relates to non-cash impairment charges related to our goodwill and certain indefinite-lived intangible assets triggered by the effects of recent declines in our financial performance, near-term outlook, and Class A common stock price, among other factors.
	Saved 2026-08-04 10:53 1mo ago Published 2026-08-04 06:30 1mo ago	Willis Lease Finance zvýšila zisk i tržby ve 2. čtvrtletí Willis Lease Finance ve 2. čtvrtletí zvýšila provozní zisk na 34,0 mil. USD a upravenou EBITDA na 120,7 mil. USD. Tržby z leasingu vzrostly o 6,7 % na 77,1 mil. USD. WLFC Willis Lease Finance	FMP Stock News	88
Original source text COCONUT CREEK, Fla., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced its financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights (All metrics compared to second quarter 2025, except where noted) Income from operations of $34.0 million, an increase of 20.2%Quarterly lease rent revenue of $77.1 million, an increase of 6.7%Quarterly core lease rent and maintenance reserve revenues were $123.6 million in the aggregate, up 0.5%Gain on sale of leased equipment of $32.0 million, an increase of 16.2%Net income attributable to common shareholders of $28.7 millionAdjusted EBITDA of $120.7 million, an increase of 4.0%Grew assets under management, including on our balance sheet and Willis Aviation Capital businesses, to $4.4 billion “The first half of the year was focused on establishing and building Willis Aviation Capital,” said Austin C. Willis, Chief Executive Officer of WLFC, “with total AUM growth of 21% year over year, we have delivered.” Second Quarter 2026 Operating Results Lease rent revenue increased by $4.9 million, or 6.7%, to $77.1 million in the three months ended June 30, 2026 from $72.3 million for the three months ended June 30, 2025. The increase is due to an increase in the average size of the portfolio as compared to that of the prior year period. During the second quarter of 2026, the Company recognized $7.5 million of long-term maintenance revenue, compared to $0.5 million for the quarter ended June 30, 2025. Long-term maintenance is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet. For the quarter ended June 30, 2026, the gain on sale of leased equipment was $32.0 million, reflecting the sale of 21 engines and other parts and equipment from the lease portfolio. During the three months ended June 30, 2025, the Company sold 14 engines, two airframes, and other parts and equipment for a net gain of $27.6 million. In March 2026, the Company’s investment fund partnership with Liberty Mutual Investments commenced operations, followed by the commencement of the Company’s investment fund partnership with Blackstone Credit & Insurance in April 2026. The book value of lease assets owned either directly or through WLFC’s joint ventures, inclusive of the Company’s equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases was $3,721.6 million as of June 30, 2026. The value of our assets under management, inclusive of the book value of WLFC’s on-balance sheet assets as well as leased assets in our joint ventures, third-party managed assets, and managed fund portfolios was $4.4 billion as of June 30, 2026. NON-GAAP FINANCIAL MEASURES Adjusted EBITDA We analyze our financial data to evaluate the health of our business and assess our performance. As appropriate, in addition to income or loss from operations under GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to evaluate our business. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance as it excludes certain items that may not be indicative of our recurring operating results. We also believe that investors, in addition to management, benefit from referring to this non-GAAP financial measure in assessing our performance, when viewed together with our GAAP results. While items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating performance, it can be useful to exclude such items as they can vary significantly between periods and or not be indicative of current or future operating results. Because non-GAAP financial measures are not standardized, our calculation of Adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by other companies. This non-GAAP financial measure should not be considered in insolation from, or as a substitute for, financial information performed in accordance with GAAP. We define Adjusted EBITDA as net income attributable to common shareholders, excluding (i) income tax expense, (ii) interest expense, (iii) preferred stock dividends/costs, (iv) loss on debt extinguishment, (v) depreciation and amortization expense, (vi) stock compensation expense, (vii) write-down of equipment, (viii) acquisition, financing and divestitures related expenses, and (ix) other items not indicative of our ongoing operating performance. Adjusted EBITDA was approximately $120.7 million and $116.1 million for the three months ended June 30, 2026 and 2025, respectively, and $244.6 million and $219.4 million for the six months ended June 30, 2026 and 2025, respectively. See below for the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income attributable to common shareholders. Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in thousands)Net income attributable to common shareholders$28,745 $58,955 $52,406 $74,431 Add: Income tax expense 7,828 13,920 19,583 22,305 Add: Interest expense 29,689 33,569 62,322 65,663 Add: Preferred stock dividends/costs 1,423 1,422 2,845 2,815 Add: Loss on debt extinguishment 5,421 — 12,448 — Add: Depreciation and amortization expense 29,068 27,550 59,246 52,574 Add: Stock compensation expense 12,703 16,751 26,455 23,658 Add: Write-down of equipment 4,910 11,458 6,059 13,567 Add: Acquisition, financing and divestitures related expenses 2,560 662 4,802 828 Less: Other (1) (1,610) (48,226) (1,581) (36,449)Adjusted EBITDA$120,737 $116,061 $244,585 $219,392 ________________________________________________________ During the three and six months ended June 30, 2026, the Company recognized non-recurring project expenses of $(1.6) million and $(1.6) million, respectively, related to its sustainable aviation fuel project. The negative expense recognized during the three-month and six-month periods reflect government grant proceeds recognized in the second quarter of 2026. During the three and six months ended June 30, 2025, the Company recognized non-recurring project expenses of $(5.3) million and $6.5 million, respectively, related to its sustainable aviation fuel project, for which the Company subsequently decided to cease further investment. The negative expense recognized during the three-month period reflects government grant proceeds received in the second quarter of 2025. Additionally, during the three and six months ended June 30, 2025, the Company recognized $43.0 million in relation to the gain on sale of the BAML business. Balance Sheet As of June 30, 2026, the Company’s lease portfolio was $2,956.3 million, consisting of $2,783.4 million of equipment held in its operating lease portfolio, $89.3 million of notes receivable, and $83.6 million of maintenance rights, which represented 334 engines, 22 aircraft, one marine vessel, and other leased parts and equipment. As of December 31, 2025, the Company’s lease portfolio was $2,988.9 million, consisting of $2,801.7 million of equipment held in its operating lease portfolio, $139.9 million of notes receivable, $30.6 million of maintenance rights, and $16.6 million of investments in sales-type leases, which represented 363 engines, 20 aircraft, one marine vessel, and other leased parts and equipment. Conference Call WLFC will hold a conference call led by the executive management team today at 10:00 a.m. Eastern Time to discuss its second quarter 2026 results. To participate in the conference call, please use the following dial-in numbers: U.S. and Canada: +1 (800) 330-6730 International: +1 786 297 8585 Conference ID: 7661930 Participant Passcode: 442978 The conference call may also be accessed by registering via the following link: https://event.webcasts.com/starthere.jsp?ei=1759374&tp_key=c0ab3b632b. A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit the Investor Relations sections of our website at https://www.wlfc.global/investor-center. About Willis Lease Finance Corporation Willis Lease Finance Corporation (WLFC) leases large and regional spare commercial aircraft engines and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO, and ground and cargo handling services. Forward-Looking Statements Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. By their nature, forward-looking statements involve a number of inherent risks, uncertainties and assumptions and are subject to change in circumstances that are difficult to predict and many of which are outside of our control. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. Our actual results may differ materially from the results discussed, either expressly or implicitly, in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and natural disasters; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors, as well as the impact of new or increased tariffs; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995. Unaudited Condensed Consolidated Statements of Income (In thousands, except per share data) Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % ChangeREVENUE Lease rent revenue$77,137 $72,268 6.7% $154,522 $140,007 10.4%Maintenance reserve revenue 46,456 50,743 (8.4)% 101,968 105,602 (3.4)%Spare parts and equipment sales 21,180 30,354 (30.2)% 42,867 48,594 (11.8)%Interest revenue 1,183 3,649 (67.6)% 3,971 7,583 (47.6)%Gain on sale of leased equipment 32,038 27,582 16.2% 49,997 32,019 56.1%Gain on sale of financial assets 154 — nm 592 378 56.6%Maintenance services revenue 8,983 8,031 11.9% 18,752 13,617 37.7%Management and advisory fees 5,524 2,588 113.4% 13,419 4,551 194.9%Other revenue 1,362 287 374.6% 2,275 883 157.6%Total revenue 194,017 195,502 (0.8)% 388,363 353,234 9.9% EXPENSES Depreciation and amortization expense 29,068 27,550 5.5% 59,246 52,574 12.7%Cost of spare parts and equipment sales 15,097 28,102 (46.3)% 29,514 43,425 (32.0)%Cost of maintenance services 10,350 8,621 20.1% 19,210 13,950 37.7%Write-down of equipment 4,910 11,458 (57.1)% 6,059 13,567 (55.3)%General and administrative 55,559 50,429 10.2% 112,163 98,149 14.3%Technical expense 9,947 7,508 32.5% 19,635 13,738 42.9%Net finance costs: Interest expense 29,689 33,569 (11.6)% 62,322 65,663 (5.1)%Loss on debt extinguishment 5,421 — nm 12,448 — nmTotal net finance costs 35,110 33,569 4.6% 74,770 65,663 13.9%Total expenses 160,041 167,237 (4.3)% 320,597 301,066 6.5% Income from operations 33,976 28,265 20.2% 67,766 52,168 29.9%Gain on sale of business — 42,950 (100.0)% — 42,950 (100.0)%Income from investments 4,172 3,082 35.4% 7,220 4,433 62.9%Income before income taxes 38,148 74,297 (48.7)% 74,986 99,551 (24.7)%Income tax expense 7,828 13,920 (43.8)% 19,583 22,305 (12.2)%Net income 30,320 60,377 (49.8)% 55,403 77,246 (28.3)%Net income attributable to noncontrolling interests 152 — nm 152 — nmNet income attributable to WLFC 30,168 60,377 (50.0)% 55,251 77,246 (28.5)%Preferred stock dividends 1,353 1,353 —% 2,706 2,676 1.1%Accretion of preferred stock issuance costs 70 69 1.4% 139 139 —%Net income attributable to common shareholders$28,745 $58,955 (51.2)% $52,406 $74,431 (29.6)% Basic weighted average income per common share$1.36 $2.89 $2.53 $3.70 Diluted weighted average income per common share$1.31 $2.81 $2.39 $3.55 Basic weighted average common shares outstanding 21,127 20,367 20,733 20,094 Diluted weighted average common shares outstanding 22,013 20,970 21,885 20,985 Unaudited Condensed Consolidated Balance Sheets (In thousands, except per share data) June 30, 2026 December 31, 2025ASSETS Cash and cash equivalents $10,725 $16,441 Restricted cash 161,497 530,500 Equipment held for operating lease, less accumulated depreciation 2,783,382 2,801,683 Maintenance rights 83,632 30,632 Equipment held for sale 77,002 20,509 Receivables, net 41,365 35,717 Spare parts inventory 51,402 56,577 Investments 152,148 104,250 Property, equipment & furnishings, less accumulated depreciation 76,904 73,835 Intangible assets, net 8,295 271 Notes receivable, net 89,279 139,945 Investments in sales-type leases, net — 16,595 Due from affiliates 3,188 — Other assets 114,357 109,360 Total assets $3,653,176 $3,936,315 LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY Liabilities: Accounts payable and accrued expenses $103,306 $105,706 Deferred income taxes 264,773 228,547 Debt obligations 2,320,904 2,700,338 Maintenance reserves 129,261 116,185 Security deposits 24,537 24,651 Unearned revenue 35,112 35,350 Due to affiliates 1,407 — Total liabilities 2,879,300 3,210,777 Redeemable preferred stock ($0.01 par value) 63,540 63,401 Shareholders’ equity: Common stock ($0.01 par value) 228 229 Paid-in capital in excess of par 71,274 72,510 Retained earnings 637,033 590,785 Accumulated other comprehensive income (loss), net of income tax expense (benefit) 61 (1,387)Total Willis Lease Finance Corporation shareholders’ equity 708,596 662,137 Noncontrolling interests 1,740 — Total equity 710,336 662,137 Total liabilities, redeemable preferred stock and equity $3,653,176 $3,936,315 CONTACT:Scott B. Flaherty Executive Vice President & Chief Financial Officer 561.413.0112
	Saved 2026-08-04 10:49 1mo ago Published 2026-08-04 06:15 1mo ago	Apple napadá britský požadavek na šifrovaná data Apple podala novou právní žalobu proti požadavku britské vlády na přístup k šifrovaným datům britských zákazníků. Spor navazuje na loňský konflikt kolem požadavku na data britských i amerických uživatelů. AAPL Apple	FMP Stock News	78
Original source text Apple has launched a fresh legal challenge against a U.K. government attempt to access encrypted data held by British customers. The move comes a year on from the previous dispute between the two over a request from the U.K.'s Home Office for both British and American customer data. That order was dropped by the U.K. after interventions from U.S. President Donald Trump and Vice President JD Vance. Apple confirmed the filing of the legal challenge to CNBC, but declined to comment further. The Home Office said it does not comment on legal proceedings or operational matters, including confirming or denying the existence of individual notices. "The UK supports strong encryption and robust privacy protections, but it is also vital that law enforcement can access communications when necessary and proportionate to protect the public from terrorism, serious crime, and child sexual abuse," a Home Office spokesperson told CNBC. "The Investigatory Powers Act is world-leading legislation that helps keep people safe while protecting privacy through strong safeguards and independent judicial oversight." 'Transatlantic row'Britain's Home Office, which handles immigration and security, in early 2025 issued an order to Apple requiring a technical "backdoor" that would allow officials to view fully encrypted material uploaded to the cloud software. Former U.S. Director of National Intelligence Tulsi Gabbard said in August last year that the U.K. had dropped the request after interventions from Trump and Vance. But the Home Office demanded in September that Apple provide access to British citizens' encrypted data, the Financial Times reported. Read more After the initial request from the U.K. government, Apple disabled its Advanced Data Protection (ADP) in the U.K. to new users. Current U.K. users will eventually need to disable this security feature, the company said in a statement in September. "We are gravely disappointed that the protections provided by ADP are not available to our customers in the UK given the continuing rise of data breaches and other threats to customer privacy," Apple said at the time. "As we have said many times before, we have never built a backdoor or master key to any of our products or services and we never will." "The original demand caused a transatlantic row because it extended to American users," Andrew Fremlin-Key, partner at law firm Withers, specialising in media, reputation and information disputes, told CNBC. "Restricting the new notice to British users may reduce that conflict, but it is unlikely to eliminate US concerns about a foreign government requiring an American company to weaken the security of its technology."
	Saved 2026-08-04 10:49 1mo ago Published 2026-08-04 03:56 1mo ago	AI firmy zjišťují, jak USA prověří modely Velké AI firmy včetně Anthropic, OpenAI, Google a Meta zamíří do Bílého domu, aby zjistily, jak USA budou před uvedením na trh prověřovat jejich nejpokročilejší modely. Proces je dobrovolný a má testovat, zda umí odhalovat a zneužívat softwarové zranitelnosti. FB Meta Platforms	FMP Stock News	78
Original source text Executives from America's largest artificial intelligence companies arrive at the White House on Tuesday to see, for the first time, how the government intends to inspect their most powerful models before release. The staff-level meeting is being convened by the Office of the National Cyber Director and is expected to draw representatives from Anthropic, OpenAI, Alphabet Inc's (NASDAQ:GOOG) Google and Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB). On the table is a framework, now complete, that sets out how officials will assess whether frontier models can find and exploit software vulnerabilities. The summit emanated from an executive order by Donald Trump signed on 2 June, and participation is voluntary. The presidential edict explicitly bars the process from being turned into a licensing, permitting or preclearance regime. That said, developers could hand the government access to qualifying models for up to 30 days before releasing them to other trusted partners. The Treasury, the National Security Agency and the Cybersecurity and Infrastructure Security Agency were told to build a classified benchmarking process for the tests. Expect few of the details to become public. Both the benchmarking methodology and the capability threshold that determines which models get caught are classified, and will be shared with developers only as officials see fit. The bigger questions companies want answered are definitional. The administration has not said how it will define a frontier model, whether open-weight systems that users can download and modify will be covered, or which arm of government will actually run the review. No single official or office has been designated to handle outreach to the industry, though national cyber director Sean Cairncross, Treasury secretary Scott Bessent and commerce secretary Howard Lutnick have been driving the initiative. Firms with models already in the pipeline want to know quickly whether those releases will be subject to the new process. The meeting follows a bruising few weeks for relations between Washington and the labs. Export controls briefly curtailed Anthropic's release of Fable 5, and the administration later asked OpenAI to stagger the rollout of GPT-5.6 to a limited set of government-approved partners. The security case has meanwhile been made for the government by the industry's own disclosures. OpenAI revealed last month that an experimental agent escaped its restricted testing environment and compromised Hugging Face's systems while hunting for answers to a cybersecurity evaluation. Anthropic withheld Mythos, a model capable of unearthing software vulnerabilities, from public release. On 28 July, more than 1,100 employees of the four companies signed an open letter titled Pacing the Frontier, asking Washington to help build international tools for slowing frontier development if it outruns human oversight. OpenAI and Anthropic endorsed it as companies within a day.
	Saved 2026-08-04 10:49 1mo ago Published 2026-08-04 04:12 1mo ago	Trumpovy účty nakupují podhodnocené AI akcie Alphabet a Meta Trumpovy účty letos nakupovaly Alphabet a Meta Platforms, které Wall Street považuje za podhodnocené AI tituly. Alphabet má podle mediánu cílové ceny 20% růstový potenciál, Meta 39%. GOOGL Alphabet	FMP Stock News	72
Original source text President Trump's investment accounts made over 6,200 stock trades year to date through May, according to financial disclosures filed with U.S. Office of Government Ethics. Those accounts are managed by third-party advisors, meaning Trump was not responsible for any decision, but it's still interesting to explore where his money is invested. This year, Trump bought shares of Alphabet (GOOGL +4.88%) (GOOG +4.44%), with net purchases totaling $1.7 million to $3.6 million through May. He also increased his stake in Meta Platforms (META +6.02%), with net purchases totaling $845,000 to $4.8 million over the same period. Alphabet and Meta Platforms sit at the center of the artificial intelligence infrastructure build-out, and most Wall Street analysts believe the stocks are undervalued. Here are the important details. President Donald J. Trump speaks on the phone in the Oval Office. Image source: Official White House Photo by Joyce N. Boghosian. Alphabet: 20% upside implied by Wall Street's median target price Alphabet reported strong second-quarter financial results that beat estimates on the top and bottom lines. Revenue increased 24% to $119.7 billion, the sixth consecutive acceleration, driven by 82% sales growth in the cloud computing segment. Operating income (which excludes unrealized gains on its investment in SpaceX) increased 30% to $40.7 billion. Alphabet shares have added 4% since the report, but the stock still looks very attractive at 18 times earnings. That is a massive discount to the five-year average of 24 times earnings, and the company has compelling growth prospects due to its full-stack approach to artificial intelligence (AI), which spans custom chips, cloud services, models, enterprise tools, and consumer applications. On the earnings call, CEO Sundar Pichai highlighted momentum in each product category: Nearly 90% of Fortune 100 companies use Gemini Enterprise, a platform that helps businesses build AI agents and automate workflows. More than 9 million developers are building on the company's Gemini models each month. And Google Search engagement is trending higher due to AI Overviews and AI Mode. Pichai also mentioned strong demand for custom AI chips called Tensor Processing Units (TPUs), the most popular alternative to Nvidia GPUs. Alphabet rents these chips to cloud computing customers, but it recently began selling TPUs directly to certain clients for use in external data centers. That shift positions Alphabet as a more direct competitor with Nvidia. Wall Street estimates that Alphabet's earnings will increase at 14% annually over the next three years. That makes the current valuation of 17.9 times earnings look reasonable. In fact, most Wall Street analysts think the stock is undervalued. The median target price of $425 per share implies 20% upside from the current share price of $355. Meta Platforms: 39% upside implied by Wall Street's median target price Meta Platforms delivered mixed financial results in the second quarter, beating analysts' consensus estimate on the top line but missing on the bottom line. Revenue increased 28% to $60.8 billion, but operating margin dropped 12 percentage points, and net income fell 13% to $6.18 per diluted share. A combination of legal fees, severance costs, and heavy spending on AI infrastructure crushed margins and reduced earnings. That caused the stock to drop 10%. But there are silver linings. The expenditures related to lawsuits and headcount reductions were one-time charges, and investments in AI infrastructure lay the foundation for strong future growth. "We are now at a point where our investments in AI are accelerating every major part of our core business," CEO Mark Zuckerberg told analysts. "They're improving the experience for people using our apps, driving better performance for advertisers, and helping our teams build new experiences and ship faster." Zuckerberg also shed light on how Meta will monetize AI products in the future. "We're developing new personal agents that will be the foundation of our next wave of products." He noted the recent launch of Meta Business Agent, which answers questions and automates employee workflows. Meta is also exploring renting out excess data center capacity directly to customers through a new cloud computing division. Wall Street expects Meta's earnings to grow at 21% annually over the next three years. That makes the current valuation of 21 times earnings look cheap. Indeed, among 71 analysts, Meta has a median target price of $770 per share. That implies 39% upside from the current share price of $554.
	Saved 2026-08-04 10:43 1mo ago Published 2026-08-04 06:30 1mo ago	Merck zvýšil tržby i celoroční výhled Společnost Merck ve 2. čtvrtletí zvýšila tržby o 5 % na 16,6 miliardy USD, tažené přípravky KEYTRUDA a WINREVAIR. Zároveň zvedla celoroční výhled tržeb na 66,3 až 67,3 miliardy USD. MRK.US Merck & Company	FMP Stock News	96
Original source text Sales Growth Reflects Continued Strength in Oncology, Including Initial Uptake of KEYTRUDA QLEX, and Animal Health, Plus Contributions From Launches Such as WINREVAIR Financial Highlights Total Worldwide Sales Were $16.6 Billion (5% Growth; 4% Growth ex-FX) KEYTRUDA/KEYTRUDA QLEX1 Sales Were $8.4 Billion (5% Growth; 4% Growth ex-FX); Includes KEYTRUDA QLEX Sales of $463 Million WINREVAIR Sales Were $588 Million (75% Growth; 75% Growth ex-FX) Animal Health Sales Were $1.8 Billion (8% Growth; 5% Growth ex-FX) GAAP Loss per Share Was $0.54; Non-GAAP Loss per Share Was $0.13; GAAP and Non-GAAP Loss per Share Include a Charge of $2.31 per Share for the Acquisition of Terns Pipeline & Portfolio Highlights Received U.S. FDA Approval for LIPFENDRA (enlicitide), the First and Only Once-Daily Oral PCSK9 Inhibitor To Reduce LDL-C in Adults With Hypercholesterolemia Announced Positive Data From TroFuse-005 Trial Evaluating Sacituzumab Tirumotecan (sac-TMT) in Certain Patients With Advanced or Recurrent Endometrial Cancer Announced Positive Phase 3 Results From Once-Weekly Investigational Oral HIV Treatment Regimen of Islatravir and Lenacapavir, in Collaboration With Gilead Full-Year 2026 Financial Outlook Narrows and Raises Expected Worldwide Sales Range To Be Between $66.3 Billion and $67.3 Billion Now Expects Non-GAAP EPS To Be Between $2.66 and $2.76; Outlook Includes Charges of $2.43 per Share for the Acquisition of Terns, Comprised of a One-Time Charge of $2.31 per Share as Well as Costs of Approximately $0.12 per Share To Finance the Acquisition and Advance MK-4208 (Formerly TERN-701) RAHWAY, N.J.--(BUSINESS WIRE)--Merck & Co., Inc., Rahway, N.J., USA (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the second quarter of 2026. “We continued to make substantial progress across our business this quarter, driven by strong execution and growing contributions from new product launches,” said Robert M. Davis, chairman and chief executive officer. “The FDA approval of LIPFENDRA is an exciting moment for our company and for patients, marking the latest milestone in our nearly 70-year legacy in cardiovascular disease. Together with key regulatory and clinical advances across oncology, HIV and immunology, this achievement reflects the strength of our pipeline and portfolio transformation as we bring forward the next wave of innovation. I am confident in the ongoing execution of our strategy as we deliver for patients and further enhance our long-term growth trajectory.” Financial Summary $ in millions, except EPS amounts Second Quarter 2026 2025 Change Change Ex- Exchange Sales $16,607 $15,806 5% 4% GAAP net (loss) income2 (1,335) 4,427 N/M N/M Non-GAAP net (loss) income that excludes certain items2,3* (330) 5,366 N/M N/M GAAP EPS (0.54) 1.76 N/M N/M Non-GAAP EPS that excludes certain items3* (0.13) 2.13 N/M N/M Refer to table on page 7. N/M - Not meaningful For the second quarter of 2026, Generally Accepted Accounting Principles (GAAP) loss / earnings per share (EPS) assuming dilution was a loss per share of $0.54 and non-GAAP loss per share was $0.13. Both the GAAP and non-GAAP loss per share were due to a charge for the acquisition of Terns Pharmaceuticals, Inc. (Terns) of $2.31 per share. Both GAAP and non-GAAP EPS in the second quarter of 2025 include a charge of $0.07 per share for an upfront payment related to a license agreement with Jiangsu Hengrui Pharmaceutical Co., Ltd. (Hengrui Pharma). Non-GAAP EPS excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities. Non-GAAP EPS in the second quarter of 2025 also excludes tax benefits primarily resulting from favorable audit reserve adjustments. Year-to-date results can be found in the attached tables. Second-Quarter Sales Performance The following table reflects sales of the Company’s top products and significant performance drivers. Second Quarter $ in millions 2026 2025 Change Change Ex-Exchange Commentary Total Sales $16,607 $15,806 5% 4% Pharmaceutical 14,760 14,050 5% 4% Increase primarily driven by growth in oncology as well as cardiometabolic and respiratory, partially offset by a decline in diabetes. KEYTRUDA/ KEYTRUDA QLEX 8,366 7,956 5% 4% Growth primarily driven by strong global uptake in earlier-stage indications, including triple-negative breast cancer (TNBC), cervical cancer, head and neck cancer and bladder cancer, as well as higher global demand in metastatic indications, including urothelial cancer. Sales of KEYTRUDA QLEX were $463 million. GARDASIL/ GARDASIL 9 1,169 1,126 4% 3% Increase primarily due to higher demand in Asia Pacific and Europe, as well as favorable timing of tenders in Europe, partially offset by lower demand in certain other international markets. PROQUAD, M-M-R II and VARIVAX 592 609 -3% -3% Decrease primarily reflects lower demand in the U.S., partially offset by higher net pricing in the U.S., higher demand in Europe and favorable private-sector purchasing patterns for M-M-R II in the U.S. WINREVAIR 588 336 75% 75% Growth primarily reflects continued uptake in the U.S. and early launch uptake in certain international markets, particularly in Japan and Europe. BRIDION 497 461 8% 8% Growth primarily due to higher demand and net pricing in the U.S. JANUVIA/JANUMET 429 623 -31% -31% Decline primarily due to lower demand and net pricing in the U.S. due to competition, as well as lower demand in China and most other international markets due to ongoing generic competition. Lynparza 365 370 -1% -2% Relatively flat compared with prior year. PREVYMIS 295 228 29% 28% Increase primarily due to higher demand in the U.S. and certain European markets, reflecting in part the launch of new indications. Lenvima* 283 265 7% 6% Growth primarily due to higher demand in the U.S., partially offset by lower net pricing. WELIREG 271 162 67% 67% Growth primarily driven by higher demand in the U.S. and continued launch uptake in several international markets, particularly in Japan, as well as favorable wholesaler purchasing patterns in the U.S. OHTUVAYRE 204 - - - Product obtained as part of the Company’s October 2025 acquisition of Verona Pharma plc. Includes a benefit from the timing of specialty pharmacy purchases in the U.S. CAPVAXIVE 184 129 42% 40% Increase primarily driven by launch uptake in several international markets, particularly in Asia Pacific and Europe, as well as in the U.S. VAXNEUVANCE 148 229 -35% -36% Decline primarily due to favorable prior period public-sector activity in the U.S., which increased sales in that period, as well as lower demand in the U.S. and in most international markets in the current period due to competitive pressure. LAGEVRIO 5 83 -95% -95% Decline largely due to lower demand in Japan and the U.S. Animal Health 1,775 1,646 8% 5% Growth attributable to both Livestock and Companion Animal product portfolios. Livestock 1,041 961 8% 6% Growth primarily driven by higher demand for ruminant and poultry products. Companion Animal 734 685 7% 5% Growth primarily due to new product launches. Sales of BRAVECTO line of products were $359 million and $335 million in the current and prior-year quarters, respectively, which represents an increase of 7%, or 4% excluding impact of foreign exchange. Other Revenues** 72 110 -35% -34% Decline primarily due to lower revenue from third-party manufacturing arrangements. Alliance revenue for this product represents the Company’s share of profits, which are product sales net of cost of sales and commercialization costs. Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Second-Quarter Expense and Related Information The table below presents selected expense information. $ in millions GAAP Acquisition- and Divestiture- Related Costs4 Restructuring Costs (Income) Loss From Investments in Equity Securities Non- GAAP3 Second Quarter 2026 Cost of sales $4,395 $1,067 $184 $- $3,144 Selling, general and administrative 2,904 17 - - 2,887 Research and development 9,741 6 (1) - 9,736 Restructuring costs 151 - 151 - - Other (income) expense, net 99 - - (191) 290 Second Quarter 2025 Cost of sales $3,557 $576 $165 $- $2,816 Selling, general and administrative 2,649 15 1 - 2,633 Research and development 4,048 3 53 - 3,992 Restructuring costs 560 - 560 - - Other (income) expense, net (7) - - (61) 54 GAAP Expense, EPS and Related Information Gross margin was 73.5% for the second quarter of 2026 compared with 77.5% for the second quarter of 2025. The decrease was primarily due to higher amortization of intangible assets and inventory write-downs. Selling, general and administrative (SG&A) expenses were $2.9 billion in the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The increase was primarily due to higher administrative costs (including investments in IT), as well as higher promotional costs in support of product launches. Research and development (R&D) expenses were $9.7 billion in the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a $5.7 billion charge for the acquisition of Terns and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone Life Sciences (Blackstone). R&D expenses in the second quarter of 2025 include a $200 million charge for an upfront payment related to a license agreement with Hengrui Pharma. Other (income) expense, net, was $99 million of expense in the second quarter of 2026 compared with $7 million of income in the second quarter of 2025. The unfavorability was primarily due to higher net interest expense, partially offset by higher net income from investments in equity securities. The income tax provision for the second quarter of 2026 was $654 million on a pretax loss of $683 million, resulting in an effective income tax rate of (95.9)%. This effective income tax rate includes a 108.9 percentage point unfavorable impact of the charge for the acquisition of Terns, for which no tax benefit was recorded. GAAP loss per share was $0.54 for the second quarter of 2026 compared with earnings per share of $1.76 for the second quarter of 2025, largely due to higher charges for business development transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma. Non-GAAP Expense, EPS and Related Information Non-GAAP gross margin was 81.1% for the second quarter of 2026 compared with 82.2% for the second quarter of 2025. The decrease was primarily due to higher inventory write-downs. Non-GAAP SG&A expenses were $2.9 billion in the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The increase was primarily due to higher administrative costs (including investments in IT), as well as higher promotional costs in support of product launches. Non-GAAP R&D expenses were $9.7 billion in the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a $5.7 billion charge for the acquisition of Terns and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone. R&D expenses in the second quarter of 2025 include a $200 million charge for an upfront payment related to a license agreement with Hengrui Pharma. Non-GAAP other (income) expense, net, was $290 million of expense in the second quarter of 2026 compared with $54 million of expense in the second quarter of 2025. The unfavorability was primarily due to higher net interest expense. The non-GAAP income tax provision for the second quarter of 2026 was $882 million on pretax income of $550 million, resulting in a non-GAAP effective income tax rate of 160.3%. This effective income tax rate includes a 146.2 percentage point unfavorable impact of the charge for the acquisition of Terns, for which no tax benefit was recorded. Non-GAAP loss per share was $0.13 for the second quarter of 2026 compared with earnings per share of $2.13 for the second quarter of 2025, largely due to higher charges for business development transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma. A reconciliation of GAAP to non-GAAP net (loss) income and EPS is provided in the table that follows. Second Quarter $ in millions, except EPS amounts 2026 2025 EPS GAAP EPS $(0.54) $1.76 Difference 0.41 0.37 Non-GAAP EPS that excludes items listed below3 $(0.13) $2.13 Net (Loss) Income GAAP net (loss) income2 $(1,335) $4,427 Difference 1,005 939 Non-GAAP net (loss) income that excludes items listed below2,3 $(330) $5,366 Excluded Items: Acquisition- and divestiture-related costs4 $1,090 $594 Restructuring costs 334 779 Income from investments in equity securities (191) (61) Increase to net loss / decrease to net income before taxes 1,233 1,312 Estimated income tax benefit5 (228) (373) Increase to net loss / decrease to net income $1,005 $939 Pipeline and Portfolio Highlights In the second quarter, the Company achieved key regulatory milestones across the portfolio while continuing to advance its broad and diverse pipeline. Oncology: U.S. Food and Drug Administration (FDA) approved KEYTRUDA and KEYTRUDA QLEX, each with WELIREG, for the adjuvant treatment of certain patients with clear cell renal cell carcinoma (ccRCC), based on Phase 3 LITESPARK-022 trial. Approvals represent first approved combination of a PD-1 and hypoxia-inducible factor-2 alpha inhibitor for these patients. In July, FDA approved expanded use of KEYTRUDA and KEYTRUDA QLEX, each with Padcev, as treatment before and after surgery for adult patients with muscle-invasive bladder cancer (MIBC), including cisplatin eligible patients based on Phase 3 KEYNOTE-B15 trial; the expansion builds upon prior approval of this regimen for cisplatin ineligible patients based on Phase 3 KEYNOTE-905 trial. FDA approved KEYTRUDA and KEYTRUDA QLEX, each with Trodelvy, for the first-line treatment of PD-L1 positive (Combined Positive Score [CPS] ≥10) advanced TNBC, based on Phase 3 KEYNOTE-D19/ASCENT-04 trial. FDA granted Breakthrough Therapy designation (BTD) for calderasib (MK-1084), an investigational oral specific KRAS G12C inhibitor, in combination with KEYTRUDA, for the first-line treatment of patients with advanced or metastatic non-small cell lung cancer (NSCLC) with KRAS G12C-mutation and expressing PD-L1 (tumor proportion score [TPS] ≥1%). Announced that Phase 3 TroFuse-005 trial evaluating sac-TMT, an investigational anti-TROP2 antibody-drug conjugate (ADC) being developed in collaboration with Kelun-Biotech, met its primary endpoints of overall survival (OS) and progression-free survival (PFS) in patients with advanced or recurrent endometrial cancer who have progressed after platinum-based chemotherapy and anti-PD-1/L1 immunotherapy. First Phase 3 results from the Company’s broad sac-TMT clinical development program, which includes 17 ongoing global Phase 3 trials across multiple tumor types. At the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting, new research was presented across over 25 types of cancer, reinforcing long-term impact of KEYTRUDA and momentum in the Company’s rapidly advancing oncology pipeline, including: Five-year follow-up data from Phase 2b KEYNOTE-942 trial, in collaboration with Moderna, underscoring continued potential of intismeran autogene (mRNA-4157/V940) in combination with KEYTRUDA for patients with stage III/IV melanoma following complete resection. Data from Phase 3 OptiTROP-Lung05 trial, led by Kelun-Biotech, evaluating sac-TMT plus KEYTRUDA in China, adding to ongoing research of novel treatment approaches for patients with NSCLC. Results from final analysis of KEYNOTE-522 evaluating KEYTRUDA in combination with chemotherapy, reporting a continued survival benefit for patients with high-risk early-stage TNBC. Vaccines and Infectious Diseases: In July, presented new data for daily and weekly options across HIV treatment and prevention pipeline at 26th International AIDS Conference (AIDS 2026). Hosted HIV investor event to highlight these data. In collaboration with Gilead, presented first Phase 3 results for islatravir/lenacapavir (ISL/LEN), an investigational oral once-weekly single-tablet HIV treatment regimen, which maintained virological suppression in adults with HIV who switched antiretroviral therapy. ISL/LEN has the potential to be the first approved oral, once-weekly HIV treatment. Presented first results from a Phase 2b study evaluating switch to investigational once-weekly oral islatravir and ulonivirine (ISL/ULO) in adults with virologically suppressed HIV-1. Received regulatory approvals in Japan and China for ENFLONSIA for the prevention of RSV lower respiratory tract disease in newborns and infants who are born during or entering their first RSV season. Cardiometabolic and Respiratory: In July, FDA approved LIPFENDRA (enlicitide), the first and only once-daily oral PCSK9 inhibitor, as an adjunct to diet and exercise, to reduce LDL-C in adults with hypercholesterolemia, based on two Phase 3 trials from the CORALreef clinical program: CORALreef Lipids and CORALreef HeFH. At week 24, LIPFENDRA significantly reduced LDL-C by a placebo-adjusted 56% and 59%, respectively. Immunology: Announced positive topline results from Phase 3 ATLAS-UC induction-only study (Study 2) evaluating tulisokibart (MK-7240), an investigational humanized monoclonal antibody targeting tumor necrosis factor-like cytokine 1A (TL1A), in patients with moderately to severely active ulcerative colitis (UC). Initial topline results from primary analyses of two Phase 2 studies evaluating tulisokibart: In hidradenitis suppurativa (HS), the study met its primary and key secondary endpoints. Full results will be shared at an upcoming medical meeting. In systemic sclerosis-associated interstitial lung disease (SSc-ILD), the study did not meet its primary endpoint and will be discontinued. No new safety concerns were identified. Business Development: Completed acquisition of Terns for $6.8 billion. Added MK-4208, a novel investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor recently granted BTD by the FDA for the treatment of certain adults with Philadelphia chromosome-positive chronic myeloid leukemia. Notable recent news releases on the Company’s pipeline and portfolio are provided in the table that follows. Visit the News Releases section of the Company’s website to read the releases. Oncology FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With WELIREG, for Adjuvant Treatment of Certain Patients With ccRCC; Based on Results From Phase 3 LITESPARK-022 Trial FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With Padcev, as Treatment Before and After Surgery for Adults With MIBC; Based on Results From Phase 3 KEYNOTE-B15 Trial, Combined With Previous Approvals Based on Phase 3 KEYNOTE-905 Trial FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With Trodelvy, as First-Line Treatment of PD-L1+ Advanced TNBC; Based on Results From Phase 3 KEYNOTE-D19/ASCENT-04 Trial European Commission Approved KEYTRUDA Plus Padcev as First PD-1 Inhibitor Plus ADC Regimen for Adults With Cisplatin-Ineligible Resectable MIBC; Based on Results From Phase 3 KEYNOTE-905 Trial FDA Granted BTD for Calderasib (MK-1084), an Investigational KRAS G12C Inhibitor, for Certain Patients With Newly Diagnosed Metastatic KRAS G12C-Mutant NSCLC The Company Announced TroFuse-005 Trial Evaluating Sac-TMT Met Primary Endpoints of OS and PFS in Certain Patients With Advanced or Recurrent Endometrial Cancer The Company and Moderna Presented 5-Year Data for Intismeran Autogene in Combination With KEYTRUDA in Patients With High-Risk Stage III/IV Melanoma Following Complete Resection at ASCO 2026 KEYTRUDA as Monotherapy Significantly Improved PFS in Certain Patients With Advanced or Recurrent Endometrial Cancer With Mismatch Repair Deficient Tumors Compared to Chemotherapy; Results From Phase 3 KEYNOTE-C93 Trial The Company Highlighted New Long-Term Data and Advancements Across Broad Oncology Portfolio and Pipeline Research at ASCO 2026 The Company Completed Acquisition of Terns Vaccines and Infectious Diseases The Company, in Collaboration With Gilead, Announced That the Once-Weekly Investigational Oral HIV Treatment Regimen of Islatravir and Lenacapavir (ISL/LEN) Maintained Virological Suppression in People With HIV Who Switched Antiretroviral Therapy The Company Presented New Data on Daily, Weekly and Monthly Options Across its HIV Treatment and Prevention Pipeline at AIDS 2026 The Company Announced Initial Access Plans for Alimatravir (MK-8527), Its Investigational Once-Monthly Oral Pre-Exposure Prophylaxis in Phase 3 Development; Multi-Faceted Strategy Aims To Enable Rapid, Broad and Sustainable Access to Alimatravir, if Approved, in Low- And Middle-Income Countries The Company Announced New Agreement With AIDS Drug Assistance Program Crisis Task Force To Improve Access and Care for People Living With HIV FDA Approved an Additional Indication for CAPVAXIVE in Children and Adolescents Aged 2 Through 17 at Increased Risk for Pneumococcal Disease; Based on Results From Phase 3 STRIDE-13 Trial Cardiometabolic and Respiratory FDA Approved LIPFENDRA, the First and Only Once-Daily Oral PCSK9 Inhibitor To Reduce LDL-C in Adults With Hypercholesterolemia; Based on Results From CORALreef Lipids and CORALreef HeFH Trials Immunology Tulisokibart Met Primary and Key Secondary Endpoints in the Phase 3 ATLAS-UC Induction-only Study in Patients With Moderately to Severely Active UC Animal Health The Company’s Animal Health Business Completed Acquisition of TARGAN, Broadening Its Commercial Poultry Portfolio Through TARGAN’s Innovative High-Speed Biodevice Technology References in the above news release titles have been modified for the purpose of this announcement. Upcoming Investor Event The Company will hold an Oncology Investor Event to coincide with the European Society for Medical Oncology Congress 2026 on Monday, Oct. 26, 2026, at 6 p.m. CET / 1 p.m. EDT, during which senior management will provide an update on the Company’s oncology strategy and program. The event will take place in Madrid, Spain, and will be accessible via live audio webcast at this weblink. Full-Year 2026 Financial Outlook The following table summarizes the Company’s full-year financial outlook. Full Year 2026 Updated Prior Sales $66.3 billion to $67.3 billion $65.8 billion to $67.0 billion Non-GAAP Gross margin3 Approximately 81% Approximately 82% Non-GAAP Operating expenses3 $42.0 billion to $42.7 billion $36.0 billion to $36.8 billion Non-GAAP Other (income) expense, net3 Approximately $1.4 billion expense Approximately $1.3 billion expense Non-GAAP Effective income tax rate3 35.0% to 36.0% 23.5% to 24.5% Non-GAAP EPS3* $2.66 to $2.76 $5.04 to $5.16 Share count (assuming dilution) Approximately 2.48 billion Approximately 2.48 billion The Company does not have any non-GAAP adjustments to sales. Includes one-time R&D charges of $9.0 billion for the acquisition of Cidara Therapeutics, Inc. (Cidara) and $5.7 billion for the acquisition of Terns. Outlook does not assume any additional significant potential business development transactions. *Includes one-time charges of $3.62 per share for the acquisition of Cidara and $2.31 per share for the acquisition of Terns. The Company has not provided a reconciliation of forward-looking non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other (income) expense, net, non-GAAP effective income tax rate and non-GAAP EPS to the most directly comparable GAAP measures, given it cannot predict with reasonable certainty the amounts necessary for such a reconciliation, including intangible asset impairment charges, legal settlements, and income and losses from investments in equity securities either owned directly or through ownership interests in investment funds, without unreasonable effort. These items are inherently difficult to forecast and could have a significant impact on the Company’s future GAAP results. The Company is raising and narrowing the range for its full-year sales outlook and now anticipates full-year 2026 sales to be between $66.3 billion and $67.3 billion, including a positive impact from foreign exchange of approximately 1% at mid-July 2026 exchange rates. The Company now expects the full-year non-GAAP effective income tax rate to be between 35.0% and 36.0%, including the impact of the non-tax deductible one-time charges for the acquisitions of Cidara and Terns. The Company now expects full-year 2026 non-GAAP EPS to be between $2.66 and $2.76, including a positive impact from foreign exchange of approximately $0.15 per share at mid-July 2026 exchange rates. This range includes one-time charges of $9.0 billion, or $3.62 per share, related to the acquisition of Cidara and $5.7 billion, or $2.31 per share, related to the acquisition of Terns. This range also includes costs of approximately $0.12 per share to finance the Terns acquisition and advance MK-4208. The charges related to Terns were not previously included in the outlook. In 2025, non-GAAP EPS of $8.98 was negatively impacted by one-time charges of $0.20 per share in the aggregate related to certain business development transactions. Consistent with past practice, the financial outlook does not assume additional significant potential business development transactions. Earnings Conference Call Investors, journalists and the general public may access a live audio webcast of the call on Tuesday, Aug. 4, at 9 a.m. EDT via this weblink. A replay of the webcast, along with the sales and earnings news release, supplemental financial disclosures and slides highlighting the results, will be available on the Company’s website. All participants may join the call by dialing (800) 369-3351 (U.S. and Canada Toll-Free) or (517) 308-9448 and using the access code 9818590. About Our Company At Merck & Co., Inc., Rahway, N.J., USA, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA This news release of Merck & Co., Inc., Rahway, N.J., USA (the “Company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements. Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the Company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the Company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov). Appendix Generic product names are provided below. Pharmaceutical BRIDION (sugammadex) CAPVAXIVE (Pneumococcal 21-valent Conjugate Vaccine) ENFLONSIA (clesrovimab-cfor) GARDASIL (Human Papillomavirus Quadrivalent [Types 6, 11, 16 and 18] Vaccine, Recombinant) GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant) JANUMET (sitagliptin and metformin HCl) JANUVIA (sitagliptin) KEYTRUDA (pembrolizumab) KEYTRUDA QLEX (pembrolizumab and berahyaluronidase alfa-pmph) LAGEVRIO (molnupiravir) Lenvima (lenvatinib) LIPFENDRA (enlicitide) Lynparza (olaparib) M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live) OHTUVAYRE (ensifentrine) PREVYMIS (letermovir) PROQUAD (Measles, Mumps, Rubella and Varicella Virus Vaccine Live) VARIVAX (Varicella Virus Vaccine Live) VAXNEUVANCE (Pneumococcal 15-valent Conjugate Vaccine) WELIREG (belzutifan) WINREVAIR (sotatercept-csrk) Animal Health BRAVECTO (fluralaner) MERCK & CO., INC., RAHWAY, N.J., USA CONSOLIDATED STATEMENT OF OPERATIONS - GAAP (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) (UNAUDITED) Table 1 GAAP % Change GAAP % Change 2Q26 2Q25 June YTD 2026 June YTD 2025 Sales $ 16,607 $ 15,806 5% $ 32,893 $ 31,335 5% Costs, Expenses and Other Cost of sales 4,395 3,557 24% 8,590 6,976 23% Selling, general and administrative 2,904 2,649 10% 5,604 5,202 8% Research and development 9,741 4,048 22,333 7,669 * Restructuring costs 151 560 -73% 346 629 -45% Other (income) expense, net 99 (7 ) * 237 (43 ) * (Loss) Income Before Taxes (683 ) 4,999 * (4,217 ) 10,902 * Income Tax Provision 654 571 1,363 1,388 Net (Loss) Income (1,337 ) 4,428 * (5,580 ) 9,514 * Less: Net (Loss) Income Attributable to Noncontrolling Interests (2 ) 1 (5 ) 8 Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USA $ (1,335 ) $ 4,427 * $ (5,575 ) $ 9,506 * (Loss) Earnings per Common Share Assuming Dilution (1) $ (0.54 ) $ 1.76 * $ (2.26 ) $ 3.77 * Average Shares Outstanding Assuming Dilution (1) 2,470 2,513 2,471 2,522 Tax Rate -95.9 % 11.4 % -32.3 % 12.7 % * 100% or greater (1) Because the Company recorded a net loss in both the second quarter and first six months of 2026, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive. MERCK & CO., INC., RAHWAY, N.J., USA THREE AND SIX MONTHS ENDED JUNE 30, 2026 GAAP TO NON-GAAP RECONCILIATION (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) (UNAUDITED) Table 2a GAAP Acquisition- and Divestiture-Related Costs (1) Restructuring Costs (2) (Income) Loss from Investments in Equity Securities Adjustment Subtotal Non-GAAP Second Quarter Cost of sales $ 4,395 1,067 184 1,251 $ 3,144 Selling, general and administrative 2,904 17 17 2,887 Research and development 9,741 6 (1 ) 5 9,736 Restructuring costs 151 151 151 – Other (income) expense, net 99 (191 ) (191 ) 290 Loss Before Taxes (683 ) (1,090 ) (334 ) 191 (1,233 ) 550 Income Tax Provision (Benefit) 654 (219 ) (3) (50 ) (3) 41 (3) (228 ) 882 Net Loss (1,337 ) (871 ) (284 ) 150 (1,005 ) (332 ) Net Loss Attributable to Merck & Co., Inc., Rahway, N.J., USA (1,335 ) (871 ) (284 ) 150 (1,005 ) (330 ) Loss per Common Share Assuming Dilution (4) $ (0.54 ) (0.35 ) (0.12 ) 0.06 (0.41 ) $ (0.13 ) Tax Rate -95.9 % 160.3 % June YTD Cost of sales $ 8,590 2,081 421 2,502 $ 6,088 Selling, general and administrative 5,604 49 49 5,555 Research and development 22,333 6 33 39 22,294 Restructuring costs 346 346 346 – Other (income) expense, net 237 (371 ) (371 ) 608 Loss Before Taxes (4,217 ) (2,136 ) (800 ) 371 (2,565 ) (1,652 ) Income Tax Provision (Benefit) 1,363 (421 ) (3) (135 ) (3) 80 (3) (476 ) 1,839 Net Loss (5,580 ) (1,715 ) (665 ) 291 (2,089 ) (3,491 ) Net Loss Attributable to Merck & Co., Inc., Rahway, N.J., USA (5,575 ) (1,715 ) (665 ) 291 (2,089 ) (3,486 ) Loss per Common Share Assuming Dilution (4) $ (2.26 ) (0.70 ) (0.27 ) 0.12 (0.85 ) $ (1.41 ) Tax Rate -32.3 % -111.3 % Only the line items that are affected by non-GAAP adjustments are shown. The Company is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing non-GAAP information enhances investors’ understanding of the Company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. (1) Amounts included in cost of sales reflect expenses for the amortization of intangible assets, as well as the recognition of fair value step-up of inventories related to the 2025 Verona Pharma plc acquisition. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. (2) Amounts primarily include employee separation costs, accelerated depreciation and asset impairment charges associated with facilities to be closed or divested, as well as contractual termination costs, associated with activities under the Company's formal restructuring programs. (3) Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. (4) Because the Company recorded a net loss in both the second quarter and first six months of 2026, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive. MERCK & CO., INC., RAHWAY, N.J., USA FRANCHISE / KEY PRODUCT SALES (AMOUNTS IN MILLIONS) (UNAUDITED) Table 3 2026 2025 2Q June YTD 1Q 2Q June YTD 1Q 2Q June YTD 3Q 4Q Full Year Nom % Ex-Exch % Nom % Ex-Exch % TOTAL SALES (1) $16,286 $16,607 $32,893 $15,529 $15,806 $31,335 $17,276 $16,400 $65,011 5 4 5 3 PHARMACEUTICAL 14,349 14,760 29,109 13,638 14,050 27,688 15,611 14,843 58,142 5 4 5 3 Oncology Keytruda 7,906 7,904 15,810 7,205 7,956 15,161 8,142 8,337 31,641 -1 -2 4 2 Keytruda Qlex 128 463 590 5 35 40 - - - - Alliance Revenue – Lynparza (2) 341 365 706 312 370 682 379 389 1,450 -1 -2 4 2 Alliance Revenue – Lenvima (2) 256 283 539 258 265 523 258 272 1,053 7 6 3 2 Welireg 199 271 470 137 162 300 196 220 716 67 67 57 56 Alliance Revenue – Reblozyl (3) 148 122 270 119 107 226 136 164 525 15 15 20 20 Vaccines (4) Gardasil/Gardasil 9 1,069 1,169 2,238 1,327 1,126 2,453 1,749 1,031 5,233 4 3 -9 -10 ProQuad/M-M-R II/Varivax 538 592 1,130 539 609 1,148 684 619 2,451 -3 -3 -2 -3 Vaxneuvance 202 148 350 230 229 459 226 140 825 -35 -36 -24 -26 RotaTeq 206 134 340 228 121 349 204 119 673 10 9 -3 -4 Capvaxive 142 184 325 107 129 236 244 279 759 42 40 38 36 Enflonsia 1 2 3 79 21 100 - - - - Cardiometabolic & Respiratory Winrevair 525 588 1,114 280 336 615 360 467 1,443 75 75 81 81 Ohtuvayre 131 204 335 178 178 - - - - Alliance Revenue - Adempas/Verquvo (5) 109 126 235 106 123 229 112 129 470 3 3 3 3 Adempas (6) 78 78 156 68 80 147 82 83 312 -2 -4 6 1 Infectious Diseases Bridion 472 497 969 441 461 902 439 499 1,841 8 8 7 7 Prevymis 272 295 568 208 228 436 266 275 978 29 28 30 27 Delstrigo 75 101 176 67 83 150 77 79 306 21 17 17 10 Zerbaxa 82 77 159 70 74 145 81 87 312 4 2 10 8 Isentress/Isentress HD 59 60 119 90 86 176 82 67 325 -30 -31 -32 -33 Dificid 34 22 56 83 96 179 43 25 247 -77 -77 -69 -69 Lagevrio 28 5 32 102 83 185 138 57 380 -95 -95 -82 -83 Diabetes Januvia 367 258 625 549 372 921 382 302 1,604 -31 -30 -32 -32 Janumet 207 171 378 247 251 498 243 199 940 -32 -33 -24 -25 Other Pharmaceutical (7) 774 641 1,416 865 703 1,568 1,004 770 3,340 -9 -9 -10 -11 ANIMAL HEALTH 1,791 1,775 3,566 1,588 1,646 3,234 1,615 1,505 6,354 8 5 10 6 Livestock 1,064 1,041 2,105 924 961 1,885 1,023 987 3,896 8 6 12 7 Companion Animal 727 734 1,461 664 685 1,349 592 518 2,458 7 5 8 4 Other Revenues (8) 146 72 218 303 110 413 50 52 515 -35 -34 -47 -6 Sum of quarterly amounts may not equal year-to-date amounts due to rounding. (1) Only select products are shown. (2) Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs. (3) Alliance Revenue represents royalties. (4) Total Vaccines sales were $2,314 million and $2,361 million in the first and second quarter of 2026, respectively, and $2,607 million and $2,370 million in the first and second quarter of 2025, respectively. (5) Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs. (6) Net product sales in the Company's marketing territories. (7) Includes Pharmaceutical products not individually shown above. Also reflects total alliance revenue for Koselugo of $161 million and $10 million in the first and second quarter of 2026, respectively, and $44 million and $43 million in the first and second quarter of 2025, respectively. (8) Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of milestone payments for out-licensed products were $132 million and $0 million in the first and second quarter of 2026, respectively, and $95 million and $5 million in the first and second quarter of 2025, respectively. More News From Merck & Co., Inc.
	Saved 2026-08-04 10:42 1mo ago Published 2026-08-04 06:30 1mo ago	Caterpillar poprvé překonal 20 miliard USD v prodejích a výnosech Caterpillar ve 2. čtvrtletí zvýšil prodeje a výnosy o 24 % na 20,5 miliardy USD, poprvé v historii nad 20 miliard USD za čtvrtletí. Zisk na akcii stoupl na 7,77 USD, upravený zisk na akcii na 8,17 USD. CAT Caterpillar	FMP Stock News	92
Original source text Second-quarter 2026 sales and revenues increased 24% to $20.5 billion Second-quarter 2026 profit per share of $7.77; adjusted profit per share of $8.17 Deployed $2.2 billion of cash for share repurchases and dividends in the second quarter Second Quarter ($ in billions except profit per share) 2026 2025 Sales and Revenues $20.5 $16.6 Profit Per Share $7.77 $4.62 Adjusted Profit Per Share $8.17 $4.72 Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13. , /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced second-quarter 2026 results. "This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," said Caterpillar Chairman and CEO Joe Creed. "This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers' toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments." Sales and revenues for the second quarter of 2026 were $20.5 billion, a 24% increase compared with $16.6 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million. Operating profit margin was 20.9% for the second quarter of 2026, compared with 17.3% for the second quarter of 2025. Adjusted operating profit margin was 21.9% for the second quarter of 2026, compared with 17.6% for the second quarter of 2025. Second-quarter 2026 profit per share was $7.77, compared with second-quarter 2025 profit per share of $4.62. Adjusted profit per share in the second quarter of 2026 was $8.17, compared with second-quarter 2025 adjusted profit per share of $4.72. For the second quarter of 2026 and 2025, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. For the second quarter of 2026, enterprise operating cash flow was $4.4 billion, and the company ended the second quarter with $6.7 billion of enterprise cash. In the quarter, the company deployed $1.5 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends. CONSOLIDATED RESULTS Consolidated Sales and Revenues Consolidated Sales and Revenues Comparison Second Quarter 2026 vs. Second Quarter 2025 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings. Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24%, compared with $16.569 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million. Higher sales volume was mainly driven by higher sales of equipment to end users. Sales were higher across the three primary segments. Sales and Revenues by Segment (Millions of dollars) Second Quarter 2025 Sales Volume Price Realization Currency Inter- Segment / Other Second Quarter 2026 $ Change % Change Power & Energy $ 7,037 $ 736 $ 212 $ 53 $ 200 $ 8,238 $ 1,201 17 % Construction Industries 6,190 1,755 309 74 18 8,346 2,156 35 % Resource Industries 3,886 639 75 65 (17) 4,648 762 20 % All Other Segment 85 1 1 — (3) 84 (1) (1 %) Corporate Items and Eliminations (1,524) (18) (2) 7 (198) (1,735) (211) Machinery, Power & Energy 15,674 3,113 595 199 — 19,581 3,907 25 % Financial Products Segment 1,042 — — — 103 1,145 103 10 % Corporate Items and Eliminations (147) — — — (36) (183) (36) Financial Products Revenues 895 — — — 67 962 67 7 % Consolidated Sales and Revenues $ 16,569 $ 3,113 $ 595 $ 199 $ 67 $ 20,543 $ 3,974 24 % Sales and Revenues by Geographic Region North America Latin America EAME Asia/Pacific External Sales and Revenues Inter-Segment Total Sales and Revenues (Millions of dollars) $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg Second Quarter 2026 Power & Energy $ 4,182 30 % $ 373 (16 %) $ 1,348 3 % $ 892 9 % $ 6,795 17 % $ 1,443 16 % $ 8,238 17 % Construction Industries 5,065 50 % 676 25 % 1,456 23 % 1,064 3 % 8,261 35 % 85 27 % 8,346 35 % Resource Industries 2,230 34 % 671 13 % 713 22 % 954 1 % 4,568 21 % 80 (18 %) 4,648 20 % All Other Segment 9 50 % 1 — % 2 100 % 3 (50 %) 15 15 % 69 (4 %) 84 (1 %) Corporate Items and Eliminations (51) 1 (1) (7) (58) (1,677) (1,735) Machinery, Power & Energy 11,435 39 % 1,722 10 % 3,518 15 % 2,906 4 % 19,581 25 % — — % 19,581 25 % Financial Products Segment 765 9 % 122 16 % 137 9 % 121 12 % 1,145 10 % — — % 1,145 10 % Corporate Items and Eliminations (106) (23) (30) (24) (183) — (183) Financial Products Revenues 659 7 % 99 16 % 107 (1 %) 97 11 % 962 7 % — — % 962 7 % Consolidated Sales and Revenues $ 12,094 37 % $ 1,821 10 % $ 3,625 14 % $ 3,003 4 % $ 20,543 24 % $ — — % $ 20,543 24 % Second Quarter 2025 Power & Energy $ 3,225 $ 442 $ 1,306 $ 821 $ 5,794 $ 1,243 $ 7,037 Construction Industries 3,369 540 1,185 1,029 6,123 67 6,190 Resource Industries 1,668 592 584 945 3,789 97 3,886 All Other Segment 6 — 1 6 13 72 85 Corporate Items and Eliminations (32) (3) (4) (6) (45) (1,479) (1,524) Machinery, Power & Energy 8,236 1,571 3,072 2,795 15,674 — 15,674 Financial Products Segment 703 105 126 108 1,042 — 1,042 Corporate Items and Eliminations (88) (20) (18) (21) (147) — (147) Financial Products Revenues 615 85 108 87 895 — 895 Consolidated Sales and Revenues $ 8,851 $ 1,656 $ 3,180 $ 2,882 $ 16,569 $ — $ 16,569 Consolidated Operating Profit Consolidated Operating Profit Comparison Second Quarter 2026 vs. Second Quarter 2025 To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings. Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume. Operating profit in the second quarter of 2026 included $392 million of expected International Emergency Economic Power Act (IEEPA) tariff recoveries. Profit (Loss) by Segment (Millions of dollars) Second Quarter 2026 Second Quarter 2025 $ Change % Change Power & Energy $ 2,027 $ 1,554 $ 473 30 % Construction Industries 1,947 1,244 703 57 % Resource Industries 693 563 130 23 % All Other Segment — — — — % Corporate Items and Eliminations (453) (566) 113 Machinery, Power & Energy 4,214 2,795 1,419 51 % Financial Products Segment 328 248 80 32 % Corporate Items and Eliminations (65) (36) (29) Financial Products 263 212 51 24 % Consolidating Adjustments (182) (147) (35) Consolidated Operating Profit $ 4,295 $ 2,860 $ 1,435 50 % Other Profit/Loss and Tax Items Other income (expense) in the second quarter of 2026 was income of $398 million, compared with income of $84 million in the second quarter of 2025. The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and investment and interest income. The effective tax rate for the second quarter of 2026 was 23.1% compared to 23.0% for the second quarter of 2025. Excluding the discrete items discussed below, the global estimated annual effective tax rate was 23.0% for the second quarters of 2026 and 2025.A discrete tax benefit of $26 million was recorded in the second quarter of 2026, compared with a $1 million benefit in the second quarter of 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. In addition, the global estimated annual effective tax rate in the second quarter of 2026 excluded the impact of second quarter losses of $139 million for the divestiture of certain non-U.S. entities with no related tax benefit. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13. POWER & ENERGY (Millions of dollars) Segment Sales Second Quarter 2025 Sales Volume Price Realization Currency Inter- Segment Second Quarter 2026 $ Change % Change Total Sales $ 7,037 $ 736 $ 212 $ 53 $ 200 $ 8,238 $ 1,201 17 % Sales by Application Second Quarter 2026 Second Quarter 2025 $ Change % Change Power Generation $ 3,098 $ 2,407 $ 691 29 % Oil and Gas 2,044 1,867 177 9 % Industrial 1,653 1,520 133 9 % External Sales 6,795 5,794 1,001 17 % Inter-segment 1,443 1,243 200 16 % Total Sales $ 8,238 $ 7,037 $ 1,201 17 % Segment Profit Second Quarter 2026 Second Quarter 2025 Change % Change Segment Profit $ 2,027 $ 1,554 $ 473 30 % Segment Profit Margin 24.6 % 22.1 % 2.5 pts Power & Energy's total sales were $8.238 billion in the second quarter of 2026, an increase of $1.201 billion, or 17%, compared with $7.037 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $736 million, favorable price realization of $212 million and higher inter-segment sales of $200 million. Power Generation – Sales increased in large reciprocating engines and in turbines and turbine-related services, primarily in data center applications. Oil and Gas – Sales increased in reciprocating engines used in gas compression applications and in reciprocating engine aftermarket parts, partially offset by lower sales of reciprocating engines used in well servicing applications. Sales also increased in turbines and turbine-related services. Industrial – Sales increased primarily in North America and EAME. Power & Energy's segment profit was $2.027 billion in the second quarter of 2026, an increase of $473 million, or 30%, compared with $1.554 billion in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $457 million and favorable price realization of $212 million, partially offset by unfavorable manufacturing costs of $149 million. Unfavorable manufacturing costs largely reflected increased period manufacturing costs. CONSTRUCTION INDUSTRIES (Millions of dollars) Segment Sales Second Quarter 2025 Sales Volume Price Realization Currency Inter- Segment Second Quarter 2026 $ Change % Change Total Sales $ 6,190 $ 1,755 $ 309 $ 74 $ 18 $ 8,346 $ 2,156 35 % Sales by Geographic Region Second Quarter 2026 Second Quarter 2025 $ Change % Change North America $ 5,065 $ 3,369 $ 1,696 50 % Latin America 676 540 136 25 % EAME 1,456 1,185 271 23 % Asia/Pacific 1,064 1,029 35 3 % External Sales 8,261 6,123 2,138 35 % Inter-segment 85 67 18 27 % Total Sales $ 8,346 $ 6,190 $ 2,156 35 % Segment Profit Second Quarter 2026 Second Quarter 2025 Change % Change Segment Profit $ 1,947 $ 1,244 $ 703 57 % Segment Profit Margin 23.3 % 20.1 % 3.2 pts Construction Industries' total sales were $8.346 billion in the second quarter of 2026, an increase of $2.156 billion, or 35%, compared with $6.190 billion in the second quarter of 2025. The increase in sales was mainly due to higher sales volume of $1.8 billion and favorable price realization of $309 million. Higher sales volume was primarily driven by higher sales of equipment to end users. In North America, sales increased primarily due to higher sales volume and favorable price realization. Higher sales volume was mainly driven by higher sales of equipment to end users and by the impact from changes in dealer inventories. Sales increased in Latin America mainly due to higher sales volume and favorable currency impacts primarily related to the Brazilian real. Higher sales volume was mainly driven by higher sales of equipment to end users. In EAME, sales increased primarily due to higher sales volume and favorable currency impacts mainly related to the euro. Higher sales volume was primarily driven by higher sales of equipment to end users. Sales increased in Asia/Pacific mainly due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users. Construction Industries' segment profit was $1.947 billion in the second quarter of 2026, an increase of $703 million, or 57%, compared with $1.244 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume. RESOURCE INDUSTRIES (Millions of dollars) Segment Sales Second Quarter 2025 Sales Volume Price Realization Currency Inter- Segment Second Quarter 2026 $ Change % Change Total Sales $ 3,886 $ 639 $ 75 $ 65 $ (17) $ 4,648 $ 762 20 % Sales by Industry Second Quarter 2026 Second Quarter 2025 $ Change % Change Mining, HC and Q&A* $ 3,685 $ 3,024 $ 661 22 % Rail 883 765 118 15 % External Sales 4,568 3,789 779 21 % Inter-segment 80 97 (17) (18 %) Total Sales $ 4,648 $ 3,886 $ 762 20 % *Heavy Construction and Quarry & Aggregates (HC and Q&A) Segment Profit Second Quarter 2026 Second Quarter 2025 Change % Change Segment Profit $ 693 $ 563 $ 130 23 % Segment Profit Margin 14.9 % 14.5 % 0.4 pts Resource Industries' total sales were $4.648 billion in the second quarter of 2026, an increase of $762 million, or 20%, compared with $3.886 billion in the second quarter of 2025. The increase was primarily due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users. Mining, Heavy Construction and Quarry & Aggregates – Sales increased primarily due to higher sales of equipment to end users. Rail – Sales increased due to higher international locomotive deliveries. Sales also increased in rail services. Resource Industries' segment profit was $693 million in the second quarter of 2026, an increase of $130 million, or 23%, compared with $563 million in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $269 million, partially offset by unfavorable manufacturing costs of $158 million. Unfavorable manufacturing costs primarily reflected increased period manufacturing costs. FINANCIAL PRODUCTS SEGMENT (Millions of dollars) Revenues by Geographic Region Second Quarter 2026 Second Quarter 2025 $ Change % Change North America $ 765 $ 703 $ 62 9 % Latin America 122 105 17 16 % EAME 137 126 11 9 % Asia/Pacific 121 108 13 12 % Total Revenues $ 1,145 $ 1,042 $ 103 10 % Segment Profit Second Quarter 2026 Second Quarter 2025 Change % Change Segment Profit $ 328 $ 248 $ 80 32 % Financial Products' segment revenues were $1.145 billion in the second quarter of 2026, an increase of $103 million, or 10%, compared with $1.042 billion in the second quarter of 2025. The increase was primarily due to a favorable impact from higher average earning assets across all regions. Financial Products' segment profit was $328 million in the second quarter of 2026, an increase of $80 million, or 32%, compared with $248 million in the second quarter of 2025. The increase was mainly due to favorable impacts from higher average earning assets of $44 million, equity securities at Insurance Services of $22 million and higher margins at Insurance Services of $21 million, partially offset by higher provision for credit losses at Cat Financial of $22 million. At the end of the second quarter of 2026, past dues at Cat Financial were 1.31%, compared with 1.62% at the end of the second quarter of 2025. Write-offs, net of recoveries, were $20 million for the second quarter of 2026 compared with $18 million for the second quarter of 2025. As of June 30, 2026, Cat Financial's allowance for credit losses totaled $294 million, or 0.84% of finance receivables, compared with $283 million, or 0.86% of finance receivables at March 31, 2026. The allowance for credit losses at year-end 2025 was $284 million, or 0.86% of finance receivables. Corporate Items and Eliminations Expense for corporate items and eliminations was $518 million in the second quarter of 2026, a decrease of $84 million from the second quarter of 2025. This decrease was due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the second quarter of 2026, and favorable impacts of segment reporting methodology differences. This was partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans. In the second quarter of 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S. entities. Notes i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx. ii. Sales of equipment to end users is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Tuesday, Aug. 4, 2026. iii. Information on non-GAAP financial measures is included in the appendix on pages 12 and 13. iv. Some amounts within this report are rounded to the millions or billions and may not add. v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Tuesday, Aug. 4, 2026, to discuss its 2026 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx. About Caterpillar For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at caterpillar.com. Caterpillar's latest financial results are also available online: https://investors.caterpillar.com/overview/default.aspx https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call) Forward-Looking Statements Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements. Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission. APPENDIX NON-GAAP FINANCIAL MEASURES The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. The company believes it is important to separately quantify the profit impact of two significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) other restructuring costs. The company does not consider this item indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2026, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans. Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows: (Dollars in millions except per share data) Operating Profit Operating Profit Margin Profit Before Taxes Provision (Benefit) for Income Taxes Profit Profit per Share Three Months Ended June 30, 2026 - U.S. GAAP $ 4,295 20.9 % $ 4,558 $ 1,055 $ 3,593 $ 7.77 Restructuring costs - divestiture of certain non-U.S. entities 139 0.7 % 139 — 139 0.30 Other restructuring costs 63 0.3 % 63 15 48 0.10 Three Months Ended June 30, 2026 - Adjusted $ 4,497 21.9 % $ 4,760 $ 1,070 $ 3,780 $ 8.17 Three Months Ended June 30, 2025 - U.S. GAAP $ 2,860 17.3 % $ 2,818 $ 646 $ 2,179 $ 4.62 Other restructuring costs 56 0.3 % 56 12 47 0.10 Three Months Ended June 30, 2025 - Adjusted $ 2,916 17.6 % $ 2,874 $ 658 $ 2,226 $ 4.72 The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three months ended June 30, 2026 and 2025, these items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results. A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below: (Dollars in millions) Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate Three Months Ended June 30, 2026 - U.S. GAAP $ 4,558 1,055 23.1 % Restructuring costs - divestiture of certain non-U.S. entities 139 — Excess stock-based compensation — 26 Annual effective tax rate, excluding discrete items $ 4,697 $ 1,081 23.0 % Excess stock-based compensation — (26) Other restructuring costs 63 15 Three Months Ended June 30, 2026 - Adjusted $ 4,760 $ 1,070 Three Months Ended June 30, 2025 - U.S. GAAP $ 2,818 $ 646 23.0 % Excess stock-based compensation — 1 Annual effective tax rate, excluding discrete items $ 2,818 $ 647 23.0 % Excess stock-based compensation — (1) Other restructuring costs 56 12 Three Months Ended June 30, 2025 - Adjusted $ 2,874 $ 658 Supplemental Consolidating Data The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows: Consolidated – Caterpillar Inc. and its subsidiaries. Machinery, Power & Energy (MP&E) – The company defines MP&E as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP&E's information relates to the design, manufacturing and marketing of its products. Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment. Consolidating Adjustments – Eliminations of transactions between MP&E and Financial Products. The nature of the MP&E and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business. Pages 15 to 25 reconcile MP&E and Financial Products to Caterpillar Inc. consolidated financial information. Caterpillar Inc. Condensed Consolidated Statement of Results of Operations (Unaudited) (Dollars in millions except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Sales and revenues: Sales of Machinery, Power & Energy $ 19,581 $ 15,674 $ 36,054 $ 29,052 Revenues of Financial Products 962 895 1,904 1,766 Total sales and revenues 20,543 16,569 37,958 30,818 Operating costs: Cost of goods sold 12,781 10,807 24,087 19,772 Selling, general and administrative expenses 2,018 1,694 3,834 3,287 Research and development expenses 616 551 1,153 1,031 Interest expense of Financial Products 362 336 707 662 Other operating (income) expenses 471 321 797 627 Total operating costs 16,248 13,709 30,578 25,379 Operating profit 4,295 2,860 7,380 5,439 Interest expense excluding Financial Products 135 126 269 242 Other income (expense) 398 84 658 191 Consolidated profit before taxes 4,558 2,818 7,769 5,388 Provision (benefit) for income taxes 1,055 646 1,725 1,220 Profit of consolidated companies 3,503 2,172 6,044 4,168 Equity in profit (loss) of unconsolidated affiliated companies 90 7 97 14 Profit of consolidated and affiliated companies 3,593 2,179 6,141 4,182 Less: Profit (loss) attributable to noncontrolling interests — — (1) — Profit 1 $ 3,593 $ 2,179 $ 6,142 $ 4,182 Profit per common share $ 7.80 $ 4.64 $ 13.29 $ 8.85 Profit per common share — diluted 2 $ 7.77 $ 4.62 $ 13.23 $ 8.82 Weighted-average common shares outstanding (millions) – Basic 460.4 469.7 462.0 472.4 – Diluted 2 462.5 471.5 464.3 474.5 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. Caterpillar Inc. Condensed Consolidated Statement of Financial Position (Unaudited) (Millions of dollars) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 6,713 $ 9,980 Receivables – trade and other 13,188 10,920 Receivables – finance 10,844 10,649 Prepaid expenses and other current assets 3,078 2,801 Inventories 20,627 18,135 Total current assets 54,450 52,485 Property, plant and equipment – net 15,628 15,140 Long-term receivables – trade and other 3,086 2,142 Long-term receivables – finance 14,364 14,272 Noncurrent deferred and refundable income taxes 2,286 2,882 Intangible assets 420 241 Goodwill 5,859 5,321 Other assets 6,516 6,102 Total assets $ 102,609 $ 98,585 Liabilities Current liabilities: Short-term borrowings: -- Financial Products $ 5,046 $ 5,514 Accounts payable 10,313 8,968 Accrued expenses 5,825 5,587 Accrued wages, salaries and employee benefits 2,148 2,554 Customer advances 4,777 3,314 Dividends payable 749 703 Other current liabilities 2,871 2,798 Long-term debt due within one year: -- Machinery, Power & Energy 35 35 -- Financial Products 8,026 7,085 Total current liabilities 39,790 36,558 Long-term debt due after one year: -- Machinery, Power & Energy 10,655 10,678 -- Financial Products 21,384 20,018 Liability for postemployment benefits 3,744 3,838 Other liabilities 7,642 6,175 Total liabilities 83,215 77,267 Shareholders' equity Common stock 5,654 7,181 Treasury stock (54,533) (49,539) Profit employed in the business 70,141 65,448 Accumulated other comprehensive income (loss) (1,867) (1,772) Noncontrolling interests (1) — Total shareholders' equity 19,394 21,318 Total liabilities and shareholders' equity $ 102,609 $ 98,585 Caterpillar Inc. Condensed Consolidated Statement of Cash Flow (Unaudited) (Millions of dollars) Six Months Ended June 30, 2026 2025 Cash flow from operating activities: Profit of consolidated and affiliated companies $ 6,141 $ 4,182 Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 1,211 1,094 Provision (benefit) for deferred income taxes 644 (110) (Gain) loss on divestiture 139 — Other (22) 398 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (3,182) (319) Inventories (2,553) (1,639) Accounts payable 1,528 973 Accrued expenses 189 (12) Accrued wages, salaries and employee benefits (408) (805) Customer advances 2,576 1,276 Other assets – net (93) (90) Other liabilities – net 71 (537) Net cash provided by (used for) operating activities 6,241 4,411 Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,315) (1,265) Expenditures for equipment leased to others (847) (608) Proceeds from disposals of leased assets and property, plant and equipment 436 365 Additions to finance receivables (8,639) (7,064) Collections of finance receivables 8,060 6,399 Proceeds from sale of finance receivables 33 18 Investments and acquisitions (net of cash acquired) (802) (21) Proceeds from sale of businesses and investments (net of cash sold) (92) 12 Proceeds from maturities and sale of securities 734 1,328 Investments in securities (1,155) (618) Other – net 148 (53) Net cash provided by (used for) investing activities (3,439) (1,507) Cash flow from financing activities: Dividends paid (1,399) (1,336) Common stock issued, and other stock compensation transactions, net (121) (59) Payments to purchase common stock (6,522) (4,488) Excise tax paid on purchases of common stock (49) (73) Proceeds from debt issued (original maturities greater than three months) 7,363 5,707 Payments on debt (original maturities greater than three months) (4,763) (4,168) Short-term borrowings – net (original maturities three months or less) (542) 72 Net cash provided by (used for) financing activities (6,033) (4,345) Effect of exchange rate changes on cash (35) (7) Increase (decrease) in cash, cash equivalents and restricted cash (3,266) (1,448) Cash, cash equivalents and restricted cash at beginning of period 9,986 6,896 Cash, cash equivalents and restricted cash at end of period $ 6,720 $ 5,448 Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less. Caterpillar Inc. Supplemental Data for Results of Operations For the Three Months Ended June 30, 2026 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Power & Energy $ 19,581 $ 19,581 $ — $ — Revenues of Financial Products 962 — 1,188 (226) 1 Total sales and revenues 20,543 19,581 1,188 (226) Operating costs: Cost of goods sold 12,781 12,783 — (2) 2 Selling, general and administrative expenses 2,018 1,800 223 (5) 2 Research and development expenses 616 616 — — Interest expense of Financial Products 362 — 374 (12) 2 Other operating (income) expenses 471 168 328 (25) 2 Total operating costs 16,248 15,367 925 (44) Operating profit 4,295 4,214 263 (182) Interest expense excluding Financial Products 135 141 — (6) 3 Other income (expense) 398 163 59 176 4 Consolidated profit before taxes 4,558 4,236 322 — Provision (benefit) for income taxes 1,055 963 92 — Profit of consolidated companies 3,503 3,273 230 — Equity in profit (loss) of unconsolidated affiliated companies 90 90 — — Profit of consolidated and affiliated companies 3,593 3,363 230 — Less: Profit (loss) attributable to noncontrolling interests — — — — Profit 5 $ 3,593 $ 3,363 $ 230 $ — 1 Elimination of Financial Products' revenues earned from MP&E. 2 Elimination of net expenses recorded between MP&E and Financial Products. 3 Elimination of interest expense recorded between Financial Products and MP&E. 4 Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E. 5 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Results of Operations For the Three Months Ended June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Power & Energy $ 15,674 $ 15,674 $ — $ — Revenues of Financial Products 895 — 1,081 (186) 1 Total sales and revenues 16,569 15,674 1,081 (186) Operating costs: Cost of goods sold 10,807 10,809 — (2) 2 Selling, general and administrative expenses 1,694 1,497 209 (12) 2 Research and development expenses 551 551 — — Interest expense of Financial Products 336 — 342 (6) Other operating (income) expenses 321 22 318 (19) 2 Total operating costs 13,709 12,879 869 (39) Operating profit 2,860 2,795 212 (147) Interest expense excluding Financial Products 126 130 — (4) Other income (expense) 84 (101) 42 143 3 Consolidated profit before taxes 2,818 2,564 254 — Provision (benefit) for income taxes 646 585 61 — Profit of consolidated companies 2,172 1,979 193 — Equity in profit (loss) of unconsolidated affiliated companies 7 7 — — Profit of consolidated and affiliated companies 2,179 1,986 193 — Less: Profit (loss) attributable to noncontrolling interests — (1) 1 — Profit 4 $ 2,179 $ 1,987 $ 192 $ — 1 Elimination of Financial Products' revenues earned from MP&E. 2 Elimination of net expenses recorded by MP&E paid to Financial Products. 3 Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E. 4 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Results of Operations For the Six Months Ended June 30, 2026 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Power & Energy $ 36,054 $ 36,054 $ — $ — Revenues of Financial Products 1,904 — 2,331 (427) 1 Total sales and revenues 37,958 36,054 2,331 (427) Operating costs: Cost of goods sold 24,087 24,091 — (4) 2 Selling, general and administrative expenses 3,834 3,409 445 (20) 2 Research and development expenses 1,153 1,153 — — Interest expense of Financial Products 707 — 730 (23) 2 Other operating (income) expenses 797 188 656 (47) 2 Total operating costs 30,578 28,841 1,831 (94) Operating profit 7,380 7,213 500 (333) Interest expense excluding Financial Products 269 281 — (12) 3 Other income (expense) 658 262 75 321 4 Consolidated profit before taxes 7,769 7,194 575 — Provision (benefit) for income taxes 1,725 1,570 155 — Profit of consolidated companies 6,044 5,624 420 — Equity in profit (loss) of unconsolidated affiliated companies 97 97 — — Profit of consolidated and affiliated companies 6,141 5,721 420 — Less: Profit (loss) attributable to noncontrolling interests (1) (1) — — Profit 5 $ 6,142 $ 5,722 $ 420 $ — 1 Elimination of Financial Products' revenues earned from MP&E. 2 Elimination of net expenses recorded between MP&E and Financial Products. 3 Elimination of interest expense recorded between Financial Products and MP&E. 4 Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E. 5 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Results of Operations For the Six Months Ended June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Sales and revenues: Sales of Machinery, Power & Energy $ 29,052 $ 29,052 $ — $ — Revenues of Financial Products 1,766 — 2,129 (363) 1 Total sales and revenues 30,818 29,052 2,129 (363) Operating costs: Cost of goods sold 19,772 19,776 — (4) 2 Selling, general and administrative expenses 3,287 2,905 405 (23) 2 Research and development expenses 1,031 1,031 — — Interest expense of Financial Products 662 — 668 (6) Other operating (income) expenses 627 30 643 (46) 2 Total operating costs 25,379 23,742 1,716 (79) Operating profit 5,439 5,310 413 (284) Interest expense excluding Financial Products 242 249 — (7) Other income (expense) 191 (146) 60 277 3 Consolidated profit before taxes 5,388 4,915 473 — Provision (benefit) for income taxes 1,220 1,105 115 — Profit of consolidated companies 4,168 3,810 358 — Equity in profit (loss) of unconsolidated affiliated companies 14 14 — — Profit of consolidated and affiliated companies 4,182 3,824 358 — Less: Profit (loss) attributable to noncontrolling interests — (1) 1 — Profit 4 $ 4,182 $ 3,825 $ 357 $ — 1 Elimination of Financial Products' revenues earned from MP&E. 2 Elimination of net expenses recorded between MP&E and Financial Products. 3 Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E. 4 Profit attributable to common shareholders. Caterpillar Inc. Supplemental Data for Financial Position At June 30, 2026 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Assets Current assets: Cash and cash equivalents $ 6,713 $ 5,945 $ 768 $ — Receivables – trade and other 13,188 4,630 686 7,872 1,2 Receivables – finance 10,844 — 18,938 (8,094) 2 Prepaid expenses and other current assets 3,078 2,683 423 (28) 3 Inventories 20,627 20,627 — — Total current assets 54,450 33,885 20,815 (250) Property, plant and equipment – net 15,628 11,314 4,268 46 4 Long-term receivables – trade and other 3,086 2,721 101 264 1,2 Long-term receivables – finance 14,364 — 15,912 (1,548) 2 Noncurrent deferred and refundable income taxes 2,286 2,596 124 (434) 5 Intangible assets 420 420 — — Goodwill 5,859 5,859 — — Other assets 6,516 4,826 2,783 (1,093) 6 Total assets $ 102,609 $ 61,621 $ 44,003 $ (3,015) Liabilities Current liabilities: Short-term borrowings $ 5,046 $ — $ 5,046 $ — Accounts payable 10,313 10,275 251 (213) 7 Accrued expenses 5,825 5,069 756 — Accrued wages, salaries and employee benefits 2,148 2,098 50 — Customer advances 4,777 4,774 3 — Dividends payable 749 749 — — Other current liabilities 2,871 2,212 709 (50) 5,8,9 Long-term debt due within one year 8,061 35 8,026 — Total current liabilities 39,790 25,212 14,841 (263) Long-term debt due after one year 32,039 10,948 22,384 (1,293) 9 Liability for postemployment benefits 3,744 3,743 1 — Other liabilities 7,642 6,607 1,552 (517) 5 Total liabilities 83,215 46,510 38,778 (2,073) Shareholders' equity Common stock 5,654 5,654 905 (905) 10 Treasury stock (54,533) (54,533) — — Profit employed in the business 70,141 64,890 5,219 32 10 Accumulated other comprehensive income (loss) (1,867) (901) (966) — Noncontrolling interests (1) 1 67 (69) 10 Total shareholders' equity 19,394 15,111 5,225 (942) Total liabilities and shareholders' equity $ 102,609 $ 61,621 $ 44,003 $ (3,015) 1 Elimination of receivables between MP&E and Financial Products. 2 Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables. 3 Elimination of MP&E's insurance premiums that are prepaid to Financial Products. 4 Reclassification of Financial Products' other assets to property, plant and equipment. 5 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. 6 Elimination of other intercompany assets and liabilities between MP&E and Financial Products. 7 Elimination of payables between MP&E and Financial Products. 8 Elimination of prepaid insurance in Financial Products' other liabilities. 9 Elimination of debt between MP&E and Financial Products. 10 Eliminations associated with MP&E's investments in Financial Products' subsidiaries. Caterpillar Inc. Supplemental Data for Financial Position At December 31, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Assets Current assets: Cash and cash equivalents $ 9,980 $ 9,333 $ 647 $ — Receivables – trade and other 10,920 3,883 657 6,380 1,2 Receivables – finance 10,649 — 17,325 (6,676) 2 Prepaid expenses and other current assets 2,801 2,448 441 (88) 3 Inventories 18,135 18,135 — — Total current assets 52,485 33,799 19,070 (384) Property, plant and equipment – net 15,140 10,985 4,106 49 4 Long-term receivables – trade and other 2,142 1,982 163 (3) 1,2 Long-term receivables – finance 14,272 — 15,538 (1,266) 2 Noncurrent deferred and refundable income taxes 2,882 3,208 133 (459) 5 Intangible assets 241 241 — — Goodwill 5,321 5,321 — — Other assets 6,102 4,525 2,651 (1,074) 6 Total assets $ 98,585 $ 60,061 $ 41,661 $ (3,137) Liabilities Current liabilities: Short-term borrowings $ 5,514 $ — $ 5,514 $ — Accounts payable 8,968 8,988 268 (288) 7 Accrued expenses 5,587 4,877 710 — Accrued wages, salaries and employee benefits 2,554 2,494 60 — Customer advances 3,314 3,311 3 — Dividends payable 703 703 — — Other current liabilities 2,798 2,259 645 (106) 5,8 Long-term debt due within one year 7,120 35 7,085 — Total current liabilities 36,558 22,667 14,285 (394) Long-term debt due after one year 30,696 10,955 21,018 (1,277) 9 Liability for postemployment benefits 3,838 3,837 1 — Other liabilities 6,175 5,162 1,516 (503) 5 Total liabilities 77,267 42,621 36,820 (2,174) Shareholders' equity Common stock 7,181 7,181 905 (905) 10 Treasury stock (49,539) (49,539) — — Profit employed in the business 65,448 60,639 4,799 10 10 Accumulated other comprehensive income (loss) (1,772) (843) (929) — Noncontrolling interests — 2 66 (68) 10 Total shareholders' equity 21,318 17,440 4,841 (963) Total liabilities and shareholders' equity $ 98,585 $ 60,061 $ 41,661 $ (3,137) 1 Elimination of receivables between MP&E and Financial Products. 2 Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables. 3 Elimination of MP&E's insurance premiums that are prepaid to Financial Products. 4 Reclassification of Financial Products' other assets to property, plant and equipment. 5 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. 6 Elimination of other intercompany assets and liabilities between MP&E and Financial Products. 7 Elimination of payables between MP&E and Financial Products. 8 Elimination of prepaid insurance in Financial Products' other liabilities. 9 Elimination of debt between MP&E and Financial Products. 10 Eliminations associated with MP&E's investments in Financial Products' subsidiaries. Caterpillar Inc. Supplemental Data for Cash Flow For the Six Months Ended June 30, 2026 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Cash flow from operating activities: Profit of consolidated and affiliated companies $ 6,141 $ 5,721 $ 420 $ — Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 1,211 812 399 — Provision (benefit) for deferred income taxes 644 666 (22) — (Gain) loss on divestiture 139 139 — — Other (22) (74) (271) 323 1 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (3,182) (1,356) (27) (1,799) 1,2 Inventories (2,553) (2,552) — (1) 1 Accounts payable 1,528 1,518 (65) 75 1 Accrued expenses 189 183 6 — Accrued wages, salaries and employee benefits (408) (399) (9) — Customer advances 2,576 2,576 — — Other assets – net (93) (111) 35 (17) 1 Other liabilities – net 71 (112) 148 35 1 Net cash provided by (used for) operating activities 6,241 7,011 614 (1,384) Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,315) (1,302) (16) 3 1 Expenditures for equipment leased to others (847) (11) (840) 4 1 Proceeds from disposals of leased assets and property, plant and equipment 436 35 407 (6) 1 Additions to finance receivables (8,639) — (10,312) 1,673 2 Collections of finance receivables 8,060 — 9,188 (1,128) 2 Net intercompany purchased receivables — — (838) 838 2 Proceeds from sale of finance receivables 33 — 33 — Collections of intercompany receivables (original maturities greater than three months) — — 48 (48) 3 Investments and acquisitions (net of cash acquired) (802) (802) — — Proceeds from sale of businesses and investments (net of cash sold) (92) (92) — — Proceeds from maturities and sale of securities 734 395 339 — Investments in securities (1,155) (648) (507) — Other – net 148 230 (82) — Net cash provided by (used for) investing activities (3,439) (2,195) (2,580) 1,336 Cash flow from financing activities: Dividends paid (1,399) (1,399) — — Common stock issued, and other stock compensation transactions, net (121) (121) — — Payments to purchase common stock (6,522) (6,522) — — Excise tax paid on purchases of common stock (49) (49) — — Payments on intercompany borrowings (original maturities greater than three months) — (48) — 48 3 Proceeds from debt issued (original maturities greater than three months) 7,363 — 7,363 — Payments on debt (original maturities greater than three months) (4,763) (19) (4,744) — Short-term borrowings – net (original maturities three months or less) (542) — (542) — Net cash provided by (used for) financing activities (6,033) (8,158) 2,077 48 Effect of exchange rate changes on cash (35) (44) 9 — Increase (decrease) in cash, cash equivalents and restricted cash (3,266) (3,386) 120 — Cash, cash equivalents and restricted cash at beginning of period 9,986 9,336 650 — Cash, cash equivalents and restricted cash at end of period $ 6,720 $ 5,950 $ 770 $ — 1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. 2 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory. 3 Elimination of proceeds and payments to/from MP&E and Financial Products. Caterpillar Inc. Supplemental Data for Cash Flow For the Six Months Ended June 30, 2025 (Unaudited) (Millions of dollars) Supplemental Consolidating Data Consolidated Machinery, Power & Energy Financial Products Consolidating Adjustments Cash flow from operating activities: Profit of consolidated and affiliated companies $ 4,182 $ 3,824 $ 358 $ — Adjustments to reconcile profit to net cash provided by operating activities: Depreciation and amortization 1,094 716 378 — Provision (benefit) for deferred income taxes (110) (88) (22) — Other 398 357 (286) 327 1 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (319) 90 5 (414) 1,2 Inventories (1,639) (1,639) — — Accounts payable 973 930 6 37 1 Accrued expenses (12) (64) 52 — Accrued wages, salaries and employee benefits (805) (786) (19) — Customer advances 1,276 1,276 — — Other assets – net (90) (133) (3) 46 1 Other liabilities – net (537) (621) 128 (44) 1 Net cash provided by (used for) operating activities 4,411 3,862 597 (48) Cash flow from investing activities: Capital expenditures – excluding equipment leased to others (1,265) (1,273) (22) 30 1 Expenditures for equipment leased to others (608) (14) (597) 3 1 Proceeds from disposals of leased assets and property, plant and equipment 365 36 362 (33) 1 Additions to finance receivables (7,064) — (8,084) 1,020 2 Collections of finance receivables 6,399 — 7,278 (879) 2 Net intercompany purchased receivables — — 93 (93) 2 Proceeds from sale of finance receivables 18 — 18 — Additions to intercompany receivables (original maturities greater than three months) — (1,000) — 1,000 3 Collections of intercompany receivables (original maturities greater than three months) — — 35 (35) 3 Investments and acquisitions (net of cash acquired) (21) (21) — — Proceeds from sale of businesses and investments (net of cash sold) 12 12 — — Proceeds from maturities and sale of securities 1,328 1,026 302 — Investments in securities (618) (278) (340) — Other – net (53) (18) (35) — Net cash provided by (used for) investing activities (1,507) (1,530) (990) 1,013 Cash flow from financing activities: Dividends paid (1,336) (1,336) — — Common stock issued, and other stock compensation transactions, net (59) (59) — — Payments to purchase common stock (4,488) (4,488) — — Excise tax paid on purchases of common stock (73) (73) — — Proceeds from intercompany borrowings (original maturities greater than three months) — — 1,000 (1,000) 3 Payments on intercompany borrowings (original maturities greater than three months) — (35) — 35 3 Proceeds from debt issued (original maturities greater than three months) 5,707 1,976 3,731 — Payments on debt (original maturities greater than three months) (4,168) (35) (4,133) — Short-term borrowings – net (original maturities three months or less) 72 — 72 — Net cash provided by (used for) financing activities (4,345) (4,050) 670 (965) Effect of exchange rate changes on cash (7) (21) 14 — Increase (decrease) in cash, cash equivalents and restricted cash (1,448) (1,739) 291 — Cash, cash equivalents and restricted cash at beginning of period 6,896 6,170 726 — Cash, cash equivalents and restricted cash at end of period $ 5,448 $ 4,431 $ 1,017 $ — 1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. 2 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory. 3 Elimination of proceeds and payments to/from MP&E and Financial Products. SOURCE Caterpillar Inc.
	Saved 2026-08-04 10:35 1mo ago Published 2026-08-04 10:35 1mo ago	Lufthansa snížila výhled zisku, akcie padají Lufthansa výrazně zhoršila celoroční výhled a snížila odhad upraveného provozního zisku EBIT na 1,7 až 2,2 mld. EUR. Akcie odepisují přes 10 %. LHA Lufthansa	Patria Stock News	92
Original source text Německá Lufthansa výrazně zhoršila výhled hospodaření pro letošní rok a upozornila na rostoucí tlak vyšších cen paliva, který vedl k výraznému snížení letošních odhadů. Vedení reaguje rozsáhlými úspornými opatřeními, omezením nerentabilních linek, snižováním investic a reorganizací provozu. Přesto Lufthansa upozorňuje, že poptávka po cestování zůstává silná, zejména na asijských trasách, a pozitivní výsledky nadále vykazuje také segment nákladní dopravy. Volatilita cen leteckého paliva a kratší doba mezi rezervací a samotnou cestou komplikují snahy Lufthansy o zvýšení ziskovosti. Tato německá aerolinka nově snížila odhad upraveného provozního zisku EBIT za celý rok do rozmezí 1,7 až 2,2 mld. EUR a ruší tak předchozí očekávání „výrazně vyššího“ zisku než loni. Akcie odepisují přes 10 %. Lufthansa se zároveň podobně jako IAG vzdala plánů na růst kapacity. Nově očekává, že přepravní kapacita zůstane na úrovni roku 2025, zatímco dříve počítala s růstem až o 2 %. Finanční ředitel Till Streichert uvedl, že výhled na druhé pololetí zůstává velmi nejistý a prognózování je čím dál obtížnější. Vedení však věří, že vysoká poptávka po cestování spolu s disciplínou v nákladech a kapacitách pomůže kompenzovat významnou část rostoucích nákladů. Nový výhled navazuje na slabším druhé čtvrtletí, kdy se zisk propadl o více než polovinu na 383 mil. EUR. Analytici přitom očekávali přibližně 477 mil. EUR. Hlavním důvodem byl meziroční nárůst nákladů na palivo o 750 mil. EUR. Právě kolísání cen ropy se stává významným problémem i pro další evropské aerolinky, například Ryanair nebo easyJet. Lufthansa také snížila plánované kapitálové výdaje. Nově očekává investice kolem 2,5 mld. EUR oproti dříve plánovaným 2,9 mld. EUR, především kvůli nižšímu počtu dodaných letadel. Letošní rok je pro Lufthansu náročnější a komplikuje tak snahy generálního ředitele Carstena Spohra zlepšit ziskovost. Náklady na palivo prudce vzrostly kvůli konfliktu na Blízkém východě a jen vyšší ceny paliva letos budou Lufthansu stát dodatečných 1,5 mld. EUR. Aerolinka se navíc během jednání o mzdách potýkala se stávkami pilotů a palubního personálu, které ji ve druhém čtvrtletí stály nejméně 150 mil. EUR. V reakci na rostoucí náklady společnost urychlila uzavření regionální dceřiné společnosti CityLine, zrušila přibližně 20 tisíc nerentabilních krátkých letů a vyřadila starší letadla s vysokou spotřebou paliva. Současně plánuje do roku 2030 zrušit 4 000 administrativních pracovních míst a přesunout část provozu z nákladově náročné hlavní značky Lufthansa k novějším aerolinkám Discover Airlines a City Airlines, kde mohou být personální náklady až o 40 % nižší. Pozitivním bodem zůstává nákladní doprava. Divize Lufthansa Cargo zvýšila ve druhém čtvrtletí zisk téměř o 60 %. A také uvedla, že celková poptávka po cestování zůstává silná a výnosy na asijských linkách byly o více než 13 % vyšší než před rokem. Navzdory současným problémům Lufthansa nadále usiluje o růst. Spolu s Air France-KLM minulý týden podala závaznou nabídku na získání menšinového podílu v portugalském státním dopravci TAP Air Portugal, který je atraktivní zejména díky silné pozici na trzích Latinské Ameriky. Nabídky nyní posuzuje státní holding Parpública.
	Saved 2026-08-04 10:32 1mo ago Published 2026-08-04 06:03 1mo ago	Ingredion potvrdil výhled EPS po poklesu zisku Ingredion ve 2. čtvrtletí snížil provozní zisk o 31 % na 188 milionů USD a upravený EPS na 2,82 USD. Zároveň potvrdil celoroční výhled EPS a akcionáři Tate & Lyle schválili hotovostní nabídku od Ingredion. INGR Ingredion	FMP Stock News	92
Original source text Second quarter 2026 reported and adjusted* operating income decreased 31% and 5% compared to the second quarter 2025Second quarter 2026 reported and adjusted EPS were $1.78 and $2.82, compared with $2.99 and $2.87 in the second quarter 2025Reaffirming amended full-year guidance, which now reflects the sale of a majority stake in the Pakistan business, for reported EPS to be in the range of $9.15 to $9.75 and adjusted EPS to be in the range of $10.30 to $10.90Ingredion’s 595 pence all-cash offer to acquire Tate & Lyle accepted by their shareholders WESTCHESTER, Ill., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported its second quarter 2026 results. "Ingredion delivered a solid second quarter, with Texture & Healthful Solutions continuing its quarterly net sales volume growth and Food & Industrial Ingredients—U.S./CAN operating results sequentially improving during the quarter," said Jim Zallie, chairman, president and CEO of Ingredion. "Additionally, we completed the sale of our majority stake in the Pakistan business, and we are pleased to report that Tate & Lyle’s shareholders approved our recommended all-cash offer on July 28, marking an important step toward completing the transaction." "Texture & Healthful Solutions delivered its ninth consecutive quarter of broad-based net sales volume growth, driven by continued strong customer demand for our solutions offerings, including clean-label ingredients, demonstrating the durability and margin enhancement of our solutions-selling model." "Food & Industrial Ingredients—LATAM continued to deliver in line with expectations, which was a result of focused execution across the region, the resilience of our diversified businesses, and the advancement of network optimization opportunities, which included the announced closure of our Cabo, Brazil facility. We also successfully navigated foreign exchange headwinds and macroeconomic pressures.” “In Food & Industrial Ingredients—U.S./CAN, reliability at our Argo plant improved, with sequentially better production rates and yields achieved throughout the quarter. We are pleased to say that the plant is operating at normal production rates across all major operating units.” “Looking ahead, we are focused on continued operational execution across our Food & Industrial Ingredients businesses and accelerating the growth of our Texture & Healthful Solutions portfolio. We have also commenced the integration planning work for the pending acquisition of Tate & Lyle, which, when completed, will establish Ingredion as a more comprehensive global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food.” * Reported results are in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted financial measures are non-GAAP financial measures. See “II. Non-GAAP Information” in the Supplemental Financial Information that follows the Condensed Consolidated Financial Statements for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. Diluted Earnings Per Share (EPS) 2Q252Q26Reported Diluted EPS$ 2.99 $ 1.78 Acquisition/integration costs — 0.64 Impairment charges (0.02) 0.34 Restructuring costs 0.03 0.14 Net (gain) on sale of business — (0.27)Tax items and other matters (0.13) 0.19 Adjusted Diluted EPS$ 2.87 $ 2.82 Factors affecting changes in Reported and Adjusted EPS 2Q26Total items affecting adjusted diluted EPS(0.05)Total operating items(0.17)Margin(0.34)Volume0.03 Foreign exchange0.05 Other income0.09 Total non-operating items0.12 Financing costs0.05 Non-controlling interests— Tax rate— Shares outstanding0.07 Other non-operating income— ** Totals may not sum or recalculate due to rounding Business Review Total Ingredion Net Sales $ in millions2025FX ImpactVolumePrice Mix2026ChangeChange excl. FXSecond Quarter1,8333620 (39)1,8501%(1%)Year-to-Date3,64669(12)(61)3,642—%(2%) Second quarter net sales increased 1%. The increase was primarily driven by higher net sales volume in T&HS and favorable foreign exchange in F&II—LATAM, partially offset by less favorable overall price mix and lower net sales volume in F&II—U.S./CAN. Reported Operating Income $ in millions2025FX ImpactBusiness DriversRestructuring/ImpairmentOther2026ChangeChange excl. FXSecond Quarter2715(20)(42)(26)188(31%)(32%)Year-to-Date54711(87)(46)(34)391(29%)(31%) Adjusted Operating Income $ in millions2025FX ImpactBusiness Drivers2026ChangeChange excl. FXSecond Quarter2735(20)258(5%)(7%)Year-to-Date54611(87)470(14%)(16%) Second quarter reported and adjusted operating income were $188 million and $258 million, respectively. The difference between reported and adjusted operating income was primarily attributable to impairment charges and costs from the closure of our Cabo, Brazil facility, as well as costs attributable to the previously announced thermal event at our Argo plant. Excluding foreign exchange translation impacts, reported operating income was down 32% and adjusted operating income was down 7% from a year ago. Texture & Healthful Solutions Net Sales $ in millions2025FX ImpactVolumePrice Mix2026ChangeChange excl. FXSecond Quarter599544(21)6275%4%Year-to-Date1,2011857(32)1,2444%2% Segment Operating Income $ in millions2025FX ImpactBusiness Drivers2026ChangeChange excl. FXSecond Quarter111151175%5%Year-to-Date210432173%1% Second quarter operating income for Texture & Healthful Solutions was $117 million, up $6 million from a year ago, driven by sales volume growth, partially offset by unfavorable price mix and higher tapioca costs. Excluding foreign exchange translation impacts, segment operating income was up 5%. Food & Industrial Ingredients—LATAM Net Sales $ in millions2025FX ImpactVolumePrice Mix2026ChangeChange excl. FXSecond Quarter59630(5)(10)6113%(3%)Year-to-Date1,16948(12)(15)1,1902%(2%) Segment Operating Income $ in millions2025FX ImpactBusiness DriversArgentina JV2026ChangeChange excl. FXSecond Quarter1274(17)4118(7%)(10%)Year-to-Date2546(31)4233(8%)(11%) Second quarter operating income for Food & Industrial Ingredients—LATAM was $118 million, a $9 million decrease from a year ago, driven primarily by Mexico’s transactional currency impacts and a more challenging demand environment. Excluding foreign exchange translational impacts, segment operating income was down 10%. Food & Industrial Ingredients—U.S./CAN Net Sales $ in millions2025FX ImpactVolumePrice Mix2026ChangeChange excl. FXSecond Quarter523—(22)(13)488(7%)(7%)Year-to-Date1,0432(60)(22)963(8%)(8%) Segment Operating Income $ in millions2025FX ImpactBusiness Drivers2026ChangeChange excl. FXSecond Quarter86—(28)58(33%)(33%)Year-to-Date1781(87)92(48%)(49%) Second quarter operating income for Food & Industrial Ingredients—U.S./CAN was $58 million, a $28 million decrease from the prior year. The decline resulted from lower production at our Argo facility, which had normalized by the end of the quarter, as well as softer volumes and price mix. Excluding foreign exchange translation impacts, operating income was down 33%. All Other* Net Sales $ in millions2025FX ImpactVolumePrice Mix2026ChangeChange excl. FXSecond Quarter1151351248%7%Year-to-Date2331382455%5% All Other Operating Income (Loss) $ in millions2025 FX ImpactBusiness Drivers2026ChangeChange excl. FXSecond Quarter(1)—76NMNMYear-to-Date(1)—109NMNM Second quarter operating income (loss) for All Other increased $7 million from the prior year, reflecting continued improvements in the Protein Fortification business. * All Other consists of the businesses of multiple operating segments that are not individually or collectively classified as reportable segments. Net sales from All Other are generated primarily by sweetener and starch sales from the Pakistan business, sales of stevia and other ingredients from our PureCircle and other sugar reduction businesses, and pea protein ingredients from our Protein Fortification business. Other Financial Items At June 30, 2026, total debt was $1.8 billion, and cash, including short-term investments, was $952 million, versus $1.8 billion and $1.0 billion, at December 31, 2025.Net financing costs were $55 million in Q2 2026, compared to $12 million in Q2 2025, primarily due to a $47 million mark-to-market foreign exchange loss on derivatives used to hedge British pound sterling exposure related to the pending Tate & Lyle acquisition.The reported and adjusted effective tax rates for the second quarter were 33.7% and 27.2%, compared to 23.6% and 27.2%, for the year-ago period. The increase in the reported effective tax rate was primarily attributable to the gain on the sale of a majority stake in the Pakistan business and the change in value of the Mexican peso relative to the U.S. dollar. These impacts were partially offset by the utilization of previously unbenefited capital losses.Net capital expenditures totaled $210 million through June 30, 2026. Dividends and Share Repurchases In the second quarter, the Company paid $52 million in dividends to shareholders. On May 20, 2026, the Company declared a quarterly dividend of $0.82 per share, which was paid on July 21, 2026. Year-to-date, the Company has repurchased $14 million of common stock and remains committed to its $100 million full-year target. Full-Year 2026 Outlook Ingredion reaffirms its 2026 full year outlook after reflecting the impact of the sale of a majority stake in the Pakistan business on the second half of the year. The Company expects its full-year 2026 reported EPS to be in the range of $9.15 to $9.75, and its adjusted EPS to be in the range of $10.30 to $10.90. The Company still expects full-year 2026 net sales to be flat to up low single digits, reflecting volume growth and favorable foreign exchange, partially offset by lower price mix as well as the impact of the previously mentioned sale of its majority stake in the Pakistan business. Reported operating income is expected to be down low double digits, with adjusted operating income now expected to be down mid-single-digits for full-year 2026, which reflects the second half impact from the sale of a majority stake in the Pakistan business. The 2026 full-year outlook further assumes the following: Texture & Healthful Solutions operating income is now expected to be up mid-to-high single-digits, driven by sales volume growth, partially offset by expected higher input cost inflation; Food & Industrial Ingredients—LATAM operating income is still anticipated to be down low single-digits, reflecting the continued strength of the Mexican peso; Food & Industrial Ingredients—U.S./CAN operating income is now expected to be down 20-25%, driven by the operational headwinds Argo incurred in the first half of 2026; and All Other’s operating loss is now anticipated to be approximately $(15) million, which reflects the removal of the second half earnings contribution of the Pakistan business. Corporate costs for full-year 2026 are now expected to be down mid-single-digits. For full-year 2026, the Company expects a reported effective tax rate of 27.4% to 28.9% and still expects an adjusted effective tax rate of 26.0% to 27.5%. Cash from operations for the full year 2026 is now expected to be in the range of $700 million to $800 million. Capital expenditures for the full year are now expected to be approximately $450 to $490 million. This guidance reflects tariff levels in effect as of the end of July 2026. In addition, this guidance excludes acquisition-related integration and restructuring costs, as well as any potential impairment costs. Third Quarter 2026 Outlook For the third quarter of 2026, compared to the same quarter last year, the Company expects net sales to be up low single-digits. Reported and adjusted operating income are both expected to be down mid-single-digits, which again reflects the impact of the sale of our majority stake in the Pakistan business. Conference Call and Webcast Details Ingredion will host a conference call on Tuesday, August 4, 2026, at 8 a.m. CT/9 a.m. ET, hosted by Jim Zallie, chairman, president and chief executive officer and Jason Payant, vice president and interim chief financial officer. The call will be webcast in real time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be available on the Company’s website above and can be downloaded a few hours before the call begins. A replay will be available for a limited time at https://ir.ingredionincorporated.com/financial-information/quarterly-results. About Ingredion Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion Idea Labs® innovation centers located around the world and more than 11,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news. Forward-Looking Statements This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Ingredion Incorporated intends these forward-looking statements to be covered by the safe harbor provisions for such statements. Forward-looking statements include, among others, any statements regarding our expectations for third quarter 2026 net sales and reported and adjusted operating income, full-year 2026 reported and adjusted earnings per share, net sales, reported and adjusted operating income, segment operating income, corporate costs, reported and adjusted effective tax rate, cash from operations, and capital expenditures, and any other statements regarding our prospects and our future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations, or beliefs underlying any of the foregoing. In addition, such statements include statements regarding our expectations with respect to completion and benefits of the pending acquisition of Tate & Lyle (the “pending acquisition”), including statements regarding plans, objectives, intentions and expectations with respect to the future operations and financial performance of the combined group. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “opportunities,” “potential,” or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are “forward-looking statements.” These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct. The following factors relating to the pending acquisition, among others, could cause actual results to differ materially from those expressed in or implied by our forward-looking statements: failure of the pending acquisition to be completed when expected or at all because of the inability to satisfy material antitrust or other conditions or for other reasons; the risk that the expected benefits of the pending acquisition may not be fully realized or may take longer to realize than anticipated, including as a result of the risks and uncertainties discussed below; failure to integrate effectively the businesses of Ingredion and Tate & Lyle or to manage effectively the expanded operations of the combined group; the incurrence of substantial expenses and indebtedness by Ingredion and the combined group to complete the pending acquisition and to operate the enterprise after completion; and the risk of loss of contracts and customers, distributors, suppliers, vendors and other business partners of Tate & Lyle as a result of the pending acquisition. Actual results and developments may differ materially from the expectations expressed in or implied by our forward-looking statements, based on various risks and uncertainties, including changes in consumer practices, preferences, price sensitivity, behaviors, demand and perceptions; the impact of geopolitical developments, tensions, threats or conflicts on the availability and prices of raw materials and energy supplies, supply chains and foreign exchange and interest rates; the impact of global business and economic conditions on demand for our products or our access to global credit and equity markets; our reliance on certain industries for a significant portion of our sales; operating difficulties at our manufacturing facilities and liabilities relating to product safety and quality; our ability to keep pace with technological developments in research and development and continue to offer innovative products; competitive pressures that may adversely affect our market share, revenue and profitability; market volatility that may adversely affect our ability to pass through potential increases in the cost of corn and other raw materials to customers, to purchase quantities of corn and other raw materials at prices sufficient to sustain or increase our profitability, or to supply product quantities and meet shipment delivery requirements that our customers demand; the impact on inputs to our procurement, production processes and delivery channels, such as raw material, energy, and freight and logistics, of price fluctuations, supply chain interruptions, tariffs, duties, and shortages; our ability to contain costs, manage working capital, and achieve budgets, including completion of planned maintenance and investment projects on time and on budget; global climate change and legal, regulatory, or market measures to address climate change; our ability to identify and complete acquisitions, divestitures, or strategic alliances on favorable terms or achieve anticipated synergies; the economic, political and other risks inherent in conducting operations in foreign countries and with foreign currencies; our ability to maintain satisfactory labor relations; our ability to attract, develop, retain, motivate and maintain good relationships with our workforce, including key personnel; the impact of legal and regulatory proceedings; the risks associated with pandemics; the impact of any impairment charges on intangible assets and goodwill; global and regional economic policies and changes to existing laws and regulations; changes in our tax rates or exposure to additional income tax liabilities; increases in interest rates that could increase our borrowing costs; risks affecting our ability to raise funds at reasonable rates and other factors affecting our access to sufficient funds for future growth and expansion; risks relating to the use of artificial intelligence and other advanced technologies, and our reliance on third‑party technology providers; interruptions, security incidents, or failures with respect to information technology systems, processes, and sites; risks affecting the continuation of our dividend policy; and our ability to maintain effective internal control over financial reporting. Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments or otherwise. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in our Annual Report on Form 10-K for the year ended December 31, 2025, and in our subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. This press release is for information purposes and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the all-cash offer by the Company for the entire issued and to be issued ordinary share capital of Tate & Lyle, or otherwise, nor shall there be any sale, issuance or transfer of securities of Tate & Lyle in any jurisdiction in contravention of applicable law. The pending acquisition will be made solely by means of a scheme of arrangement (or, if the pending acquisition is implemented by way of a takeover offer, as that term is defined in the UK Companies Act 2006 (a “Takeover Offer”), the offer document), which will contain the full terms and conditions of the pending acquisition. If the Company exercises its right to implement the pending acquisition by way of a Takeover Offer, such offer will be made in compliance with applicable U.S. laws and regulations. Ingredion Incorporated Condensed Consolidated Statements of Income (Unaudited) (dollars and shares in millions, except per share data) Three Months Ended June 30, Change % Six Months Ended June 30, Change % 2026 2025 2026 2025 Net sales$1,850 $1,833 1% $3,642 $3,646 —%Cost of sales 1,424 1,356 2,815 2,703 Gross profit 426 477 (11%) 827 943 (12%)Operating expenses 207 208 —% 407 401 1%Other operating (income), net (14) (5) (27) (15) Restructuring/impairment charges 45 3 56 10 Operating income 188 271 (31%) 391 547 (29%)Financing costs 55 12 64 21 Net (gain) on sale of business (44) — (44) — Other non-operating expense, net 2 — 2 — Income before income taxes 175 259 (32%) 369 526 (30%)Provision for income taxes 59 61 109 129 Net income 116 198 (41%) 260 397 (35%)Less: Net income attributable to non-controlling interests 2 2 4 4 Net income attributable to Ingredion$114 $196 (42%) $256 $393 (35%) Earnings per common share attributable to Ingredion common shareholders: Weighted average common shares outstanding: Basic 63.3 64.5 63.2 64.5 Diluted 63.9 65.6 63.9 65.6 Earnings per common share of Ingredion: Basic$1.80 $3.04 (41%) $4.05 $6.09 (33%)Diluted$1.78 $2.99 (40%) $4.01 $5.99 (33%) Ingredion Incorporated Condensed Consolidated Balance Sheets (dollars and shares in millions, except per share amounts) June 30, 2026 December 31, 2025 (Unaudited) Assets Current assets: Cash and cash equivalents $948 $1,030 Short-term investments 4 3 Accounts receivable, net 1,386 1,185 Inventories 1,109 1,227 Prepaid expenses and assets held for sale 76 60 Total current assets 3,523 3,505 Property, plant and equipment, net 2,521 2,526 Goodwill 917 922 Intangible assets, net 337 347 Other non-current assets 772 597 Total assets $8,070 $7,897 Liabilities and stockholders’ equity Current liabilities: Short-term borrowings $41 $48 Accounts payable, accrued liabilities and liabilities held for sale 1,218 1,268 Total current liabilities 1,259 1,316 Long-term debt 1,742 1,742 Other non-current liabilities 496 473 Total liabilities 3,497 3,531 Share-based payments subject to redemption 49 64 Redeemable non-controlling interests — 7 Ingredion stockholders’ equity: Preferred stock — authorized 25.0 shares — $0.01 par value, none issued — — Common stock — authorized 200.0 shares — $0.01 par value, 77.8 shares issued at June 30, 2026 and December 31, 2025 1 1 Additional paid-in capital 1,163 1,155 Less: Treasury stock (common stock: 14.7 and 14.8 shares at June 30, 2026 and December 31, 2025) at cost (1,553) (1,555)Accumulated other comprehensive loss (848) (937)Retained earnings 5,761 5,610 Total Ingredion stockholders’ equity 4,524 4,274 Non-redeemable non-controlling interests — 21 Total stockholders’ equity 4,524 4,295 Total liabilities and stockholders’ equity $8,070 $7,897 Ingredion Incorporated Condensed Consolidated Statements of Cash Flows (Unaudited) (dollars in millions) Six Months Ended June 30, 2026 2025 Cash from operating activities Net income $260 $397 Non-cash charges to net income: Depreciation and amortization 110 108 Mechanical stores expense 38 32 Net (gain) on sale of business (44) — Impairment charges 33 6 Foreign exchange losses, net 47 4 Margin accounts (19) (9)Changes in other working capital (231) (241)Other (71) (35)Cash provided by operating activities 123 262 Cash from investing activities Capital expenditures and mechanical stores purchases, net (210) (193)Proceeds from sales of businesses, net 139 12 Purchases of equity securities, net (26) (19)Other (5) (3)Cash used for investing activities (102) (203)Cash from financing activities Proceeds (payments) on borrowings, net 35 (46)Repurchases of common stock, net (14) (55)Common stock activity for share-based compensation, net (10) (9)Purchases of non-controlling interests (7) — Dividends paid, including to non-controlling interests (105) (106)Cash used for financing activities (101) (216)Effects of foreign exchange rate changes on cash and cash equivalents (2) 21 (Decrease) in cash and cash equivalents (82) (136)Cash and cash equivalents, beginning of period 1,030 997 Cash and cash equivalents, end of period $948 $861 Ingredion Incorporated Supplemental Financial Information (Unaudited) (dollars in millions, except for percentages) I. Segment Information of Net Sales to Unaffiliated Customers and Operating Income Three Months Ended June 30, Change % Change Excl. FX % Six Months Ended June 30, Change % Change Excl. FX % 2026 2025 2026 2025 Net Sales to Unaffiliated Customers: Texture & Healthful Solutions (i)$627 $599 5% 4% $1,244 $1,201 4% 2%Food & Industrial Ingredients—LATAM (ii) 611 596 3% (3%) 1,190 1,169 2% (2%)Food & Industrial Ingredients—U.S./Canada (iii) 488 523 (7%) (7%) 963 1,043 (8%) (8%)All Other (iv) 124 115 8% 7% 245 233 5% 5%Net Sales$1,850 $1,833 1% (1%) $3,642 $3,646 —% (2%) Operating Income (Loss): Texture & Healthful Solutions$117 $111 5% 5% $217 $210 3% 1%Food & Industrial Ingredients—LATAM 118 127 (7%) (10%) 233 254 (8%) (11%)Food & Industrial Ingredients—U.S./Canada 58 86 (33%) (33%) 92 178 (48%) (49%)All Other 6 (1) NM NM 9 (1) NM NMCorporate (41) (50) (18%) (18%) (81) (95) (15%) (15%)Adjusted Operating Income 258 273 (5%) (7%) 470 546 (14%) (16%)Acquisition/integration costs (6) — (6) — Impairment charges (31) — (31) (6) Restructuring costs (14) (3) (25) (4) Other matters (19) 1 (17) 11 Operating Income$188 $271 (31%) (32%) $391 $547 (29%) (31%) Notes to Net Sales to Unaffiliated Customers (i) Net of inter-segment sales of $35 million and $9 million for the second quarter of 2026 and 2025, and $44 million and $18 million for year-to-date 2026 and 2025. (ii) Net of inter-segment sales of $11 million and $14 million for the second quarter of 2026 and 2025, and $21 million and $27 million for year-to-date 2026 and 2025. (iii) Net of inter-segment sales of $48 million and $27 million for the second quarter of 2026 and 2025, and $75 million and $60 million for year-to-date 2026 and 2025. (iv) Net of inter-segment sales of $8 million and $4 million for the second quarter of 2026 and 2025, and $12 million and $7 million for year-to-date 2026 and 2025. II. Non-GAAP Information To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), non-GAAP historical financial measures are used, which exclude certain GAAP items such as acquisition/integration costs, restructuring costs, impairment charges, net (gain) on sale of business, Mexico tax item, and other specified items. The term “adjusted” is generally used when referring to these non-GAAP financial measures. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the Company’s operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company’s operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business. Expected financial measures may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. Non-GAAP adjustments are generally made to adjusted financial measures, which increases management’s confidence in its ability to forecast adjusted financial measures than in its ability to forecast GAAP financial measures. These non-GAAP measures, including non-GAAP expected measures, should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the Company’s non-GAAP information is not necessarily comparable to similarly titled measures presented by other companies. A reconciliation of each non-GAAP financial measure to the most comparable GAAP measure is provided in the tables below. Ingredion Incorporated Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS (Unaudited) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (in millions) Diluted EPS (in millions) Diluted EPSNet income attributable to Ingredion$114 $1.78 $256 $4.01 Adjustments: Acquisition/integration costs (i) 41 0.64 41 0.64 Impairment charges (ii) 22 0.34 22 0.34 Restructuring costs (iii) 9 0.14 19 0.30 Net (gain) on sale of business (iv) (17) (0.27) (17) (0.27) Other matters (v) 14 0.23 12 0.19 Tax item–Mexico (vi) (2) (0.03) (6) (0.09) Other tax matters (vii) (1) (0.01) 3 0.04 Non-GAAP adjusted net income attributable to Ingredion$180 $2.82 $330 $5.16 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 (in millions) Diluted EPS (in millions) Diluted EPSNet income attributable to Ingredion$196 $2.99 $393 $5.99 Adjustments: Impairment charges (ii) (1) (0.02) 4 0.06 Restructuring costs (iii) 2 0.03 3 0.05 Other matters (v) (1) (0.02) (8) (0.12) Tax item–Mexico (vi) (6) (0.08) (7) (0.11) Other tax matters (vii) (2) (0.03) (2) (0.03) Non-GAAP adjusted net income attributable to Ingredion$188 $2.87 $383 $5.84 Net income and EPS may not sum or recalculate due to rounding. Notes(i) During the three and six months ended June 30, 2026, we recorded pre-tax acquisition and integration costs of $53 million primarily related to our pending acquisition of Tate & Lyle, including a $47 million of acquisition-related foreign exchange hedging losses. There was no such activity during the three and six months ended June 30, 2025. (ii) During the three and six months ended June 30, 2026, we recorded pre-tax impairment charges of $33 million, primarily related to the closure of our facility in Cabo, Brazil. During the three months ended June 30, 2025, we recorded a tax benefit for impairment charges to equity method investments. During the six months ended June 30, 2025, we recorded $6 million of pre-tax impairment charges on our equity investments. (iii) During the three and six months ended June 30, 2026, we recorded pre-tax restructuring costs of $14 million and $25 million, primarily related to the closure of our facility in Cabo, Brazil, and costs related to our sale of the Pakistan business and other restructuring activity. During the three and six months ended June 30, 2025, we recorded pre-tax restructuring costs of $3 million and $4 million, primarily related to decommissioning costs for plant closures. (iv) During the three and six months ended June 30, 2026, we recorded a net pre-tax gain of $44 million related to the sale of our Pakistan business. There was no such activity during the three and six months ended June 30, 2025. (v) During the three and six months ended June 30, 2026, we recorded pre-tax charges of $19 million and $17 million primarily related to the Argo thermal event. During the three and six ended June 30, 2025, we recorded pre-tax benefits of $1 million and $11 million primarily related to insurance recoveries and a favorable judgment related to certain indirect taxes in Brazil. (vi) The tax amounts are result of the movement of the Mexican peso against the U.S. dollar and its impact on the remeasurement of the Mexico financial statements during the period. (vii) During the three and six months ended June 30, 2026,we recorded a change in our accrual related to the permanent reinvestment of foreign earnings, recognized prior-year tax liabilities, associated tax impacts related to the above current and prior-year non-GAAP adjustments, and recapture of prior-year U.S. tax benefits. These were partially offset by the utilization of previously unbenefited capital losses, recognition of a deferred tax asset, and interest income on previously recognized tax benefits associated with certain Brazilian local incentives that were previously taxable. Ingredion Incorporated Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income (Unaudited) (dollars in millions, pre-tax) Three Months Ended June 30, Six Months Ended June 30,2026 2025 2026 2025 Operating income$188 $271 $391 $547 Adjustments: Acquisition/integration costs (i) 6 — 6 — Impairment charges (ii) 31 — 31 6 Restructuring costs (iii) 14 3 25 4 Other matters (v) 19 (1) 17 (11) Non-GAAP adjusted operating income$258 $273 $470 $546 For notes (i) through (v), see notes (i) through (v) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. Ingredion Incorporated Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate (Unaudited) (dollars in millions, except for percentages) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income Tax Rate (b/a) Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income Tax Rate (b/a)As Reported$175 $59 33.7% $369 $109 29.5% Adjustments: Acquisition/integration costs (i) 53 12 53 12 Impairment charges (ii) 33 11 33 11 Restructuring costs (iii) 14 5 25 6 Net (gain) on sale of business (iv) (44) (27) (44) (27) Other matters (v) 19 5 17 5 Tax item–Mexico (vi) — 2 — 6 Other tax matters (vii) — 1 — (3) Adjusted Non-GAAP$250 $68 27.2% $453 $119 26.3% Three Months Ended June 30, 2025 Six Months Ended June 30, 2025Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income Tax Rate (b/a) Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income Tax Rate (b/a)As Reported$259 $61 23.6% $526 $129 24.5% Adjustments: Impairment charges (ii) — 1 6 2 Restructuring costs (iii) 3 1 4 1 Other matters (v) (1) — (11) (3) Tax item–Mexico (vi) — 6 — 7 Other tax matters (vii) — 2 — 2 Adjusted Non-GAAP$261 $71 27.2% $525 $138 26.3% For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. Ingredion Incorporated Reconciliation of Expected GAAP Diluted Earnings Per Share (“GAAP EPS”) to Expected Adjusted Diluted Earnings Per Share (“Adjusted EPS”) (Unaudited) Expected EPS Range for Full-Year 2026Low End of Guidance High End of GuidanceGAAP EPS$9.15 $9.75 Adjustments: Acquisition/integration costs (i) 0.64 0.64 Impairment charges (ii) 0.34 0.34 Restructuring costs (iii) 0.30 0.30 Net (gain) on sale of business (iv) (0.27) (0.27) Other matters (v) 0.19 0.19 Tax item–Mexico (vi) (0.09) (0.09) Other tax matters (vii) 0.04 0.04 Adjusted EPS$10.30 $10.90 For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. Ingredion Incorporated Reconciliation of Expected GAAP Effective Income Tax Rate (“GAAP ETR”) to Expected Adjusted Effective Income Tax Rate (“Adjusted ETR”) (Unaudited) Expected Effective Income Tax Rate Range for Full-Year 2026Low End of Guidance High End of GuidanceGAAP ETR27.4% 28.9% Adjustments: Acquisition/integration costs (i)(0.3%) (0.3%) Impairment charges (ii)0.2% 0.2% Restructuring costs (iii)(0.1%) (0.1%) Net (gain) on sale of business (iv)(1.6%) (1.6%) Other matters (v)0.1% 0.1% Tax item–Mexico (vi)0.6% 0.6% Other tax matters (vii)(0.3%) (0.3%) Adjusted ETR26.0% 27.5% For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. CONTACTS: Investors: Noah Weiss, 773-896-5242 Media: Rick Wion, 708-209-6323
	Saved 2026-08-04 10:31 1mo ago Published 2026-08-04 06:00 1mo ago	ADM zvýšila celoroční odhad upraveného EPS po silném 2. čtvrtletí ADM zvýšila celoroční odhad upraveného EPS na zhruba 5,15 až 5,60 USD z předchozích 4,15 až 4,70 USD. Ve 2. čtvrtletí vykázala upravený čistý zisk 895 milionů USD a upravený EPS 1,84 USD. ADM Archer-Daniels-Midland	FMP Stock News	92
Original source text CHICAGO--(BUSINESS WIRE)--ADM (NYSE: ADM) today reported financial results for the quarter ended June 30, 2026 and updated its full-year 2026 outlook. 2Q26 Key Takeaways: Net earnings of $908 million, with adjusted net earnings1 of $895 million EPS2 of $1.87, with adjusted EPS1,2 of $1.84 2026 Outlook3: ADM now expects 2026 adjusted EPS1,2 of approximately $5.15 to $5.60, up from the prior adjusted EPS1,2 guidance range of $4.15 to $4.70 The updated outlook reflects expected year-over-year earnings improvement in ADM's crushing and ethanol businesses, as the Company expects to continue capitalizing on the constructive margin environment through disciplined execution. That environment stems primarily from the finalized 2026 and 2027 renewable volume obligations ("RVO") under the U.S. Renewable Fuel Standard in March 2026, supported by global trade dynamics and elevated energy prices. Additionally, performance continues to improve in Nutrition Continuing to monitor external factors across the macroeconomic, geopolitical, policy, and trade environments Capital expenditures continue to be projected to be in the range of $1.3 billion to $1.5 billion "ADM delivered robust second-quarter financial and operating results," said Juan Luciano, Chair of the Board and CEO. "Segment operating profit rose significantly year-over-year and sequentially, with broad-based growth across all three segments—driven by strong commercial and operational execution by the team, a constructive biofuels environment, and momentum in Nutrition, led by Flavors. These results, and the expectations we have into the back half of this year, give us confidence to again raise our 2026 earnings outlook.” Second Quarter and Year-to-Date 2026 Results 2Q26 Results Overview ($ in millions except per share amounts) GAAP Measures Earnings Before Income Taxes EPS2 (as reported) 2Q26 $1,088 $1.87 Percent change vs. 2Q 2025 NM3 NM3 Non-GAAP Measures Total Segment Operating Profit1 Adjusted EPS1,2 2Q26 $1,450 $1.84 Percent change vs. 2Q 2025 75% 98% YTD 2026 Results Overview ($ in millions except per share amounts) GAAP Measures Earnings Before Income Taxes EPS2 (as reported) YTD 2026 $1,472 $2.49 Percent change vs. YTD 2025 133% 135% Non-GAAP Measures Total Segment Operating Profit1 Adjusted EPS1,2 YTD 2026 $2,214 $2.56 Percent change vs. YTD 2025 40% 57% 1 Non-GAAP financial measures; see pages 7-8 and 14-17 for explanations and reconciliations. 2 All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis. 3 NM: Not Meaningful. Percentage increases above 200% or when one period includes income and other period includes loss are considered not meaningful. Summary of Second Quarter and Year-to-Date 2026 For the second quarter of 2026, earnings before income taxes were $1.1 billion, compared to the prior year quarter of $279 million. EPS2 on a GAAP basis was $1.87, representing an increase of $1.42 compared to the prior year quarter EPS of $0.45. Adjusted EPS1,2 was $1.84, an increase of $0.91 compared to the prior year quarter of $0.93. Total second quarter segment operating profit1 was $1.5 billion, an increase of 75% compared to the prior year quarter. This excludes net specified item gains of $18 million. Earnings before income taxes were $1.5 billion year-to-date in 2026, compared to the prior year period of $632 million. Total segment operating profit1 was $2.2 billion year-to-date in 2026, up 40% versus the prior year period. EPS2 on a GAAP basis was $2.49, up $1.43 versus the prior year period, and adjusted EPS1,2 was $2.56, up $0.93 versus the prior year period. 2Q26 Segment Overview ($ in millions) 2Q 2026 2Q 2025 % Change Total Segment Operating Profit1 $1,450 $830 75% Segment Operating Profit: Ag Services & Oilseeds 867 379 129% Carbohydrate Solutions 411 337 22% Nutrition 172 114 51% YTD 2026 Segment Overview ($ in millions) YTD 2026 YTD 2025 % Change Total Segment Operating Profit1 $2,214 $1,577 40% Segment Operating Profit: Ag Services & Oilseeds 1,140 791 44% Carbohydrate Solutions 767 576 33% Nutrition 307 210 46% 1 Non-GAAP financial measures; see pages 7-8 and 14-17 for explanations and reconciliations. 2 All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis. Agriculture Services and Oilseeds Summary (AS&O) AS&O segment operating profit was $867 million for the second quarter of 2026, an increase of 129% compared to the prior year quarter. The increase was primarily due to margin expansion across the segment, most notably in Ag Services and North American crushing, which was supported by the RVO and elevated global energy prices. Current quarter results included around $100 million of net positive mark-to-market and timing impacts, primarily attributable to the Crushing subsegment, with a modest benefit attributable to the Ag Services subsegment, partially offset by a net negative impact attributable to Refined Products and Other subsegment. Ag Services subsegment operating profit was 159% higher compared to the prior year quarter, primarily as a result of strategically leveraging ADM's global asset network in a complex operating environment to deliver value across the agricultural supply chain. Further, South American operations benefited from the grain export terminal in Barcarena, Brazil, returning to full operations, and increased soybean exports which were supported by higher farmer selling. Crushing subsegment operating profit increased by $330 million compared to the prior year quarter. The increase was attributable to strong execution by the team in an improved margin environment. Global oilseed volumes increased by approximately 5% compared to the prior year quarter, in part due to improved asset utilization. Margin strength was supported by a constructive environment for biofuels, which was underpinned by the RVO, higher global energy prices, and positive net mark-to-market and timing impacts. Further, stable soybean meal prices supported strong global meal demand, resulting in record meal exports from Brazil and the U.S. Refined Products and Other subsegment operating profit was 3% lower compared to the prior year quarter. The decrease largely resulted from net negative mark-to-market and timing impacts in the second quarter of 2026. Underlying regional performance was mixed, with strong North American and European biodiesel margins partially offset by net negative mark-to-market timing impacts and supply and demand imbalances in South America impacting local margins. Equity earnings from the company’s investment in Wilmar were approximately 22% lower compared to the prior year quarter. 2Q 2026 AS&O Overview ($ in millions) 2Q 2026 2Q 2025 % Change Segment Operating Profit $867 $379 129% Ag Services 293 113 159% Crushing 363 33 NM1 Refined Products and Other 151 156 (3)% Wilmar 60 77 (22)% YTD 2026 AS&O Overview ($ in millions) YTD 2026 YTD 2025 % Change Segment Operating Profit $1,140 $791 44% Ag Services 493 272 81% Crushing 284 79 NM1 Refined Products and Other 237 291 (19)% Wilmar 126 149 (15)% 1 NM: Not Meaningful. Percentage increases above 200% or when one period includes income and the other period includes a loss are considered not meaningful. Carbohydrate Solutions Summary Carbohydrate Solutions segment operating profit was $411 million for the second quarter of 2026, an increase of 22% compared to the prior year quarter. The increase primarily reflected robust North American ethanol margins, including policy incentives. The RVO, elevated global energy prices, and lower U.S. corn prices together gave ethanol an economic advantage over competing blendstocks, driving both higher domestic blend rates and favorable industry-wide exports. Starches and Sweeteners subsegment operating profit increased by 7% compared to the prior year quarter, primarily due to higher ethanol margins related to ADM’s corn wet-milling ethanol operations, including policy incentives. This strength was partially offset by lower liquid sweetener volumes and margins, most notably in North America, while global starch volumes and margins stabilized. Vantage Corn Processors subsegment operating profit increased by $52 million compared to the prior year quarter, as ADM’s corn dry-milling ethanol operations benefited from strengthening ethanol margins, supported by policy incentives and effective risk management. 2Q26 Carbohydrate Solutions Overview ($ in millions) 2Q 2026 2Q 2025 % Change Segment Operating Profit $411 $337 22% Starches and Sweeteners 326 304 7% Vantage Corn Processors 85 33 158% YTD 2026 Carbohydrate Solutions Overview ($ in millions) YTD 2026 YTD 2025 % Change Segment Operating Profit $767 $576 33% Starches and Sweeteners 555 511 9% Vantage Corn Processors 212 65 NM1 1 NM: Not Meaningful. Percentage increases above 200% or when one period includes income and the other period includes a loss are considered not meaningful Nutrition Summary Nutrition segment operating profit was $172 million for the second quarter of 2026, representing a 51% increase compared to the prior year quarter. The year-over-year increase was attributable to improved performance in both the Human Nutrition and Animal Nutrition subsegments. Human Nutrition subsegment operating profit was 51% higher compared to the prior year quarter, largely driven by Flavors growth, supported by seasonal momentum, and continued progress at the Decatur East plant. Animal Nutrition subsegment operating profit was 50% higher compared to the prior year quarter, due to operational improvements and benefits from portfolio actions taken during 2025. 2Q26 Nutrition Overview ($ in millions) 2Q 2026 2Q 2025 % Change Segment Operating Profit $172 $114 51% Human Nutrition 139 92 51% Animal Nutrition 33 22 50% YTD 2026 Nutrition Overview ($ in millions) YTD 2026 YTD 2025 % Change Segment Operating Profit $307 $210 46% Human Nutrition 243 168 45% Animal Nutrition 64 42 52% Corporate and Other Business Summary For the second quarter of 2026, Corporate results improved, reflecting the non-recurrence of prior-year quarter impairment losses and lower financing costs, partially offset by higher performance-based compensation. Other Business’s contribution to operating profit decreased in the current year quarter primarily due to lower captive insurance results. Conference Call Information ADM will host a webcast today, August 4, 2026, at 7:30 a.m. Central Time to discuss financial results and outlook. To listen to the webcast, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast. About ADM ADM unlocks the power of nature to enrich the quality of life. We’re an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. We’re a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. We’re a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. We’re a cutting-edge innovator, guiding the way to a future of new bio-based consumer and industrial solutions. And we're leading in business-driven sustainability efforts that support a strong agricultural sector, resilient supply chains, and a vast and growing bioeconomy. Around the globe, our expertise and innovation are meeting critical needs from harvest to home. Learn more at www.adm.com. Cautionary Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical or current fact included in this press release, are forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “outlook,” “forecast”, “will,” “should,” “can have,” “likely,” “goals,” “objectives,” “priorities,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements the Company makes relating to its future results of operations and underlying assumptions, as well as growth opportunities, operational execution and improvements, progress on Company priorities, changes to the margin environment, earnings improvements, future demand, future investments, policy changes, capital allocation priorities and actions, the biofuels environment, global trade and tariff conditions, energy prices, and global market volatility are forward-looking statements. All forward-looking statements are subject to significant risks, uncertainties and changes in circumstances that could cause actual results and outcomes to differ materially from those expressed or implied in the forward-looking statements, including, without limitation, (1) operational risks related to equipment failure, natural disasters, epidemics, pandemics, adverse weather conditions, accidents, explosions, fires, war or acts of terrorism, cybersecurity incidents or other unexpected outages; (2) risks related to the availability and prices of agricultural commodities, agricultural commodity products, other raw materials and energy, including impacts from factors outside the Company’s control such as changes in market conditions, weather conditions, crop disease, plantings, climate change, competition and changes in global demand, as well as risks relating to global and regional economic downturns; (3) risks related to compliance with, and changes in, government programs, policies, laws, and regulations, including those related to trade, tariffs, sanctions, biofuels, sustainability, food safety and quality, the environment, tax, and financial markets; (4) risks related to international conflicts, acts of terrorism or war, sanctions, maritime piracy and other geopolitical events or economic disruptions, as well as other risks related to the disruption of global markets and trade flows; (5) risks and uncertainties relating to acquisitions, equity investments, joint ventures, integrations, divestitures, and other transactions; (6) risks relating to the Company’s execution of its strategic priorities, including achieving cost reductions and operational improvements, organic and inorganic growth and innovation in its products and services; (7) risks related to the Company’s technology systems and cybersecurity incidents; and (8) other risks, assumptions and uncertainties that are described in Item 1A, "Risk Factors" included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as may be updated in subsequent Quarterly Reports on Form 10-Q. For these statements, the Company claims the protection of the safe harbor for forward-looking statements in the Private Securities Litigation Reform Act. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Except to the extent required by law, the Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement whether as a result of new information, future events, changes in assumptions or otherwise. Non-GAAP Financial Measures The Company uses certain “Non-GAAP” financial measures as defined by the Securities and Exchange Commission. These are measures of performance not defined by accounting principles generally accepted in the United States (GAAP), and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release. Adjusted net earnings and Adjusted earnings per share (EPS). Adjusted net earnings reflects ADM’s reported net earnings after removal of the effect on net earnings of specified items as more fully described in the reconciliation tables below. Adjusted EPS reflects ADM’s diluted EPS after removal of the effect on EPS as reported of specified items as more fully described in the reconciliation tables below. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM’s performance because they provide investors additional information about ADM’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s diluted shares outstanding for each respective period in order to arrive at an adjusted EPS amount for each specified item. Total segment operating profit. Total segment operating profit is ADM’s consolidated earnings before income taxes adjusted for Other Business, Corporate, and specified items as more fully described in the reconciliation tables below. Management believes that total segment operating profit is a useful measure of ADM’s performance because it provides investors information about ADM’s reportable segment performance excluding Other Business, Corporate overhead costs as well as specified items. Total segment operating profit is not a measure of consolidated operating results under GAAP and should not be considered an alternative to earnings before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under GAAP. Adjusted Return on Invested Capital (ROIC). Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested capital. Adjusted ROIC earnings is ADM’s net earnings adjusted for the after-tax effects of interest expense on borrowings and specified items. Adjusted invested capital is the sum of ADM’s equity (excluding redeemable and non-redeemable non-controlling interests) and interest-bearing liabilities (which totals invested capital), adjusted for specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM’s returns excluding the impacts of specified items and increases period-to-period comparability of underlying business performance. Management uses Adjusted ROIC to measure ADM’s performance by comparing Adjusted ROIC to its weighted average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC earnings and Adjusted invested capital are non-GAAP financial measures and are not intended to replace or be alternatives to GAAP financial measures. EBITDA. EBITDA is defined as earnings before interest on borrowings, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted for specified items. The Company calculates Adjusted EBITDA by removing the impact of specified items and adding back the amounts of income tax expense, interest expense on borrowings, and depreciation and amortization to net earnings. Management believes that EBITDA and Adjusted EBITDA are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace or be an alternative to net earnings, the most directly comparable GAAP financial measure. Cash flows from operations before working capital. Cash flows from operations before working capital is defined as cash flows from operating activities adjusted for changes in operating assets and liabilities as presented in the Company’s consolidated statement of cash flows. Management believes that cash flows from operations before working capital is a useful measure of the Company’s cash generation. Cash flows from operations before working capital is a non-GAAP financial measure and is not intended to replace or be an alternative to cash from operating activities, the most directly comparable GAAP financial measure. Forecasted GAAP Earnings Reconciliation. ADM is not presenting forecasted GAAP earnings per diluted share, forecasted net earnings, forecasted total debt, or forecasted effective tax rate, or a quantitative reconciliation of those metrics to forecasted adjusted earnings per diluted share, forecasted adjusted EBITDA, forecasted net debt, or forecasted adjusted effective tax rate, respectively, in reliance on the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K. ADM is unable to predict with reasonable certainty and without unreasonable effort the impact of any impairment and timing of restructuring-related and other charges, along with acquisition-related expenses and the outcome of certain regulatory, legal and tax matters, as well as other potential reconciling items. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings. Mark-to-market and timing impact Mark-to-market and timing impacts represent changes in agricultural commodity pricing and foreign currency market factors and are not necessarily reflective of the operating performance of our business. Mark-to-market and timing impacts represent the estimated net unrealized gain and loss impacts of market factor changes on the valuation of certain of our merchandisable commodity inventories (including certain commodity inventories valued at the lower of cost or market), cash purchase and sales contracts, and futures and foreign currency contracts. The final mark-to-market and timing impacts will be realized when the underlying inventory, cash purchase and sales contracts, and futures and foreign currency contracts are settled. Financial Tables Follow Source: Corporate Release Source: ADM Segment Operating Profit and Corporate Results (unaudited) Quarter ended Six months ended June 30, June 30, (In millions) 2026 2025 Change 2026 2025 Change Segment Operating Profit Ag Services and Oilseeds $ 867 $ 379 $ 488 $ 1,140 $ 791 $ 349 Ag Services 293 113 180 493 272 221 Crushing 363 33 330 284 79 205 Refined Products and Other 151 156 (5 ) 237 291 (54 ) Wilmar 60 77 (17 ) 126 149 (23 ) Carbohydrate Solutions $ 411 $ 337 $ 74 $ 767 $ 576 $ 191 Starches and Sweeteners 326 304 22 555 511 44 Vantage Corn Processors 85 33 52 212 65 147 Nutrition $ 172 $ 114 $ 58 $ 307 $ 210 $ 97 Human Nutrition 139 92 47 243 168 75 Animal Nutrition 33 22 11 64 42 22 Corporate Results $ (460 ) $ (498 ) $ 38 $ (883 ) $ (939 ) $ 56 Interest expense - net (103 ) (112 ) 9 (208 ) (212 ) 4 Unallocated corporate function costs (374 ) (294 ) (80 ) (718 ) (647 ) (71 ) Other income - net 19 7 12 50 24 26 Specified items: Impairment, exit, restructuring charges, and settlement contingencies (2 ) (99 ) 97 (7 ) (104 ) 97 Consolidated Statements of Earnings (unaudited) Quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 (in millions, except per share amounts) Revenues $ 22,681 $ 21,166 $ 43,171 $ 41,341 Cost of products sold 20,746 19,796 40,014 38,791 Gross Profit 1,935 1,370 3,157 2,550 Selling, general, and administrative expenses 1,026 911 1,987 1,843 Asset impairment, exit, and restructuring costs 13 137 25 175 Equity in (earnings) of unconsolidated affiliates (142 ) (134 ) (231 ) (278 ) Interest and investment (income) expense (116 ) 70 (241 ) (68 ) Interest expense 148 159 297 317 Other (income) - net (82 ) (52 ) (152 ) (71 ) Earnings Before Income Taxes 1,088 279 1,472 632 Income tax expense 176 62 257 123 Net Earnings Including Non-controlling Interests 912 217 1,215 509 Less: Net earnings (loss) attributable to non-controlling interests 4 (2 ) 9 (5 ) Net Earnings Attributable to ADM $ 908 $ 219 $ 1,206 $ 514 Diluted earnings per common share $ 1.87 $ 0.45 $ 2.49 $ 1.06 Weighted average number of shares outstanding – diluted 485 484 485 484 Summary of Financial Condition (unaudited) June 30, 2026 June 30, 2025 (in millions) Net Investment In Cash and cash equivalents $ 1,060 $ 1,057 Short-term marketable securities 33 9 Operating working capital 8,254 8,377 Property, plant, and equipment 10,979 11,142 Investments in affiliates 5,901 5,175 Goodwill and other intangibles 6,498 7,036 Other non-current assets 2,350 2,351 $ 35,075 $ 35,147 Financed By Short-term debt $ 407 $ 856 Long-term debt, including current maturities 7,604 8,372 Deferred liabilities 3,192 3,232 Temporary equity 292 249 Shareholders’ equity 23,580 22,438 $ 35,075 $ 35,147 Summary of Cash Flows (unaudited) Six months ended June 30 2026 2025 (in millions) Cash flows from operating activities (1) Net earnings including non-controlling interests $ 1,215 $ 509 Depreciation and amortization 586 578 Asset impairment charges 5 105 (Gain) loss on asset contributions, sales and investment revaluation, net (85 ) 150 Other – net 38 (109 ) Other changes in operating assets and liabilities (460 ) 2,723 Net cash provided by operating activities 1,299 3,956 Cash flows from investing activities Capital expenditures (466 ) (596 ) Net assets of businesses acquired — (95 ) Proceeds from sales of assets, businesses and investments 56 41 Purchases of marketable securities — (11 ) Proceeds from sales of marketable securities 6 267 Other – net 31 3 Net cash used in investing activities (373 ) (391 ) Cash flows from financing activities Long-term debt payments (5 ) — Net repayments under lines of credit agreements (389 ) (1,057 ) Cash dividends (510 ) (495 ) Acquisition of non-controlling interest — (4 ) Other – net (51 ) (23 ) Net cash used in financing activities (955 ) (1,579 ) Effect of exchange rate on cash, cash equivalents, restricted cash, and restricted cash equivalents (19 ) 34 Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents (48 ) 2,020 Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period 5,505 3,924 Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period $ 5,457 $ 5,944 1 Cash flows from operations before working capital is a Non-GAAP financial measure. Cash flows from operations before working capital year-to-date 2026 was $1.8 billion, calculated as cash flows provided by operating activities of $1.3 billion, adjusted for changes in working capital of $(460) million. Cash flows from operations before working capital year-to-date 2025 was $1.2 billion, calculated as cash flows provided by operating activities of $4.0 billion, adjusted for changes in working capital of $2.7 billion for year-to-date 2025. Segment Operating Analysis (unaudited) Quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 (in ‘000s metric tons) Certain processed volumes (by commodity) Oilseeds 9,477 9,051 18,776 18,142 Corn 4,736 4,614 9,278 9,195 Quarter ended Six months ended June 30, June 30, 2026 2025 2026 2025 (in millions) Revenues Ag Services and Oilseeds $ 17,916 $ 16,269 $ 33,917 $ 31,944 Carbohydrate Solutions 2,757 2,792 5,316 5,362 Nutrition 1,902 1,993 3,707 3,810 Total Segment Revenues 22,575 21,054 42,940 41,116 Other Business 106 112 231 225 Total Revenues $ 22,681 $ 21,166 $ 43,171 $ 41,341 Total Segment Operating Profit A Non-GAAP financial measure (unaudited) Quarter ended Six months ended June 30 June 30 (In millions) 2026 2025 Change 2026 2025 Change Earnings before income taxes $ 1,088 $ 279 $ 809 $ 1,472 $ 632 $ 840 Other Business (earnings) (80 ) (94 ) 14 (133 ) (190 ) 57 Corporate 460 498 (38 ) 883 939 (56 ) Specified items: (Gain) on sales of assets and businesses (21 ) (8 ) (13 ) (83 ) (8 ) (75 ) Impairment, exit, restructuring charges, and settlement contingencies 3 224 (221 ) 20 273 (253 ) (Gain) on contract termination — (69 ) 69 — (69 ) 69 ADM's share of equity method investment non-recurring charges $ — $ — $ — $ 55 $ — $ 55 Total Segment Operating Profit $ 1,450 $ 830 $ 620 $ 2,214 $ 1,577 $ 637 Adjusted Net Earnings and Adjusted EPS Non-GAAP financial measures (unaudited) Quarter ended June 30, Six months ended June 30, 2026 2025 2026 2025 In millions Per share In millions Per share In millions Per share In millions Per share Net earnings and reported EPS (diluted) $ 908 $ 1.87 $ 219 $ 0.45 $ 1,206 $ 2.49 $ 514 $ 1.06 Adjustments: (Gain) on sales of assets and businesses (a) (19 ) (0.04 ) (6 ) (0.01 ) (66 ) (0.13 ) (6 ) (0.01 ) Impairment, exit, restructuring charges, and settlement contingencies (b) 6 0.01 291 0.60 35 0.07 334 0.69 ADM's share of equity method investment non-recurring charges (c) — — — — 55 0.11 — — (Gain) on contract termination (d) — — (52 ) (0.11 ) — — (52 ) (0.11 ) Certain discrete tax adjustments (e) — — — — 10 0.02 — — Total adjustments (13 ) (0.03 ) 233 0.48 34 0.07 276 0.57 Adjusted net earnings and adjusted diluted EPS $ 895 $ 1.84 $ 452 $ 0.93 $ 1,240 $ 2.56 $ 790 $ 1.63 (a) Current year quarter gains of $21 million ($19 million after tax) includes gains from sales of assets, tax effected using the applicable income tax rate. Current YTD gains of $83 million ($66 million after tax) includes gains from contribution of assets to joint venture arrangements, tax effected using the applicable income tax rate. Prior year quarter and YTD amounts of $8 million ($6 million after tax) were related to the gain from the sale of a facility, tax effected using the Company’s U.S. income tax rate. (b) Current year quarter and YTD charges of $5 million and $40 million ($6 million and $35 million after tax), respectively, were primarily driven by charges related to inventory adjustments and contingent settlements, tax effected using the applicable tax rates. Prior year quarter and YTD charges of $323 million and $377 million pretax ($291 million and $334 million after tax), respectively, were primarily driven by impairment of certain investments, impairment of long lived assets and other restructuring charges pursuant to the Company’s portfolio optimization efforts, and contingent settlements, tax effected using the applicable tax rates. (c) Current year YTD charges of $55 million were driven by the Company’s share of non-recurring charges related to provisions recorded by Wilmar. (d) Prior year quarter and YTD gains of $69 million ($52 million after tax) relate to the recognition of income due to a cancelled contract with a cost method investee, tax effected using the applicable income tax rate. (e) Discrete tax adjustment relates to the non-recurring impact of updated tax regulations. Return on Invested Capital (ROIC) and Adjusted ROIC Non-GAAP financial measures (unaudited) Adjusted ROIC Earnings (in millions) Four Quarters Quarter Ended Ended Sep. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 June 30, 2026 June 30, 2026 Net earnings attributable to ADM $ 108 $ 456 $ 298 $ 908 $ 1,770 Adjustments: Interest expense(1) 106 108 111 107 432 Tax on interest (25 ) (26 ) (26 ) (25 ) (102 ) Total ROIC Earnings 189 538 383 990 2,100 Other adjustments, net of tax 341 (35 ) 47 (13 ) 340 Total Adjusted ROIC Earnings $ 530 $ 503 $ 430 $ 977 $ 2,440 Adjusted Invested Capital (in millions) Quarter Ended Trailing Four Sep. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 June 30, 2026 Quarter Average Equity(2) $ 22,494 $ 22,733 $ 22,804 $ 23,573 $ 22,901 Interest-bearing liabilities(3) 7,956 8,509 9,426 8,107 8,500 Total Invested Capital 30,450 31,242 32,230 31,680 31,401 Other adjustments, net of tax 341 (35 ) 47 (13 ) 85 Total Adjusted Invested Capital $ 30,791 $ 31,207 $ 32,277 $ 31,667 $ 31,486 Return on Invested Capital 6.7 % Adjusted Return on Invested Capital 7.8 % (1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense (2) Excludes non-controlling interests (3) Includes short-term debt, long term debt and finance lease obligations Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA) and Adjusted EBITDA Non-GAAP financial measures (unaudited) Four Quarters Four Quarters Quarter Ended Ended Ended Sep. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 June 30, 2026 June 30, 2026 June 30, 2025 (in millions) Net earnings $ 108 $ 456 $ 298 $ 908 $ 1,770 $ 1,099 Net earnings (loss) attributable to non-controlling interests 2 (2 ) 5 4 9 (11 ) Income tax expense 37 22 81 176 316 319 Interest expense(1) 106 108 111 107 432 488 Depreciation and amortization(2) 295 296 289 292 1,172 1,145 EBITDA 548 880 784 1,487 3,699 3,040 (Gain) on sales of assets and businesses (31 ) — (62 ) (21 ) (114 ) (19 ) Impairment, exit, restructuring charges, and settlement contingencies 261 293 35 5 594 865 ADM's share of equity method investment non-recurring charges and (gains), net 163 (254 ) 55 — (36 ) — (Gain) on contract termination — — — — — (69 ) Expenses related to acquisitions — — — — — 3 Railroad maintenance expense 12 47 — 1 60 64 Adjusted EBITDA $ 954 $ 965 $ 812 $ 1,472 $ 4,203 $ 3,884 (1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense (2) Excludes $3 million, $9 million, $4 million, and $1 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026, respectively.
	Saved 2026-08-04 10:31 1mo ago Published 2026-08-04 06:07 1mo ago	Prologis zahájila nabídku 15 milionů akcií Prologis zahájila veřejnou nabídku 15 milionů kmenových akcií. Upisovatelé mohou do 30 dnů koupit až dalších 2,25 milionu akcií kvůli převisu poptávky. PLD Prologis	FMP Stock News	78
Original source text , /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) (the "Company" or "Prologis") announced today the commencement of an underwritten public offering of 15,000,000 shares of its common stock. J.P. Morgan and BofA Securities are acting as the underwriters for the offering. The Company expects to grant the underwriters a 30-day option, exercisable in whole or in part from time to time, to purchase up to an additional 2,250,000 shares of the Company's common stock solely to cover overallotments in connection with the offering. The Company intends to contribute the net proceeds from this offering to its operating partnership, which intends to use the net proceeds from the offering for general corporate purposes, including to fund potential acquisitions such as SEGRO plc ("SEGRO"). There can be no assurance that the Company will complete the SEGRO combination on the proposed terms, on the anticipated timeline, or at all. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. All of the shares of common stock will be offered pursuant to the Company's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. When available, a copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained from J.P. Morgan Securities LLC, Attention: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by emailing [email protected] and [email protected]; BofA Securities, Inc., Attn: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001 or by emailing [email protected]; or by visiting the EDGAR database on the SEC's website at www.sec.gov. ABOUT PROLOGIS The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. FORWARD-LOOKING STATEMENTS The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to the combination with SEGRO, rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our and SEGRO's properties; (iv) risks associated with acquisitions, dispositions and development of properties, including those specific to data center development and the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that Prologis and SEGRO maintain and their credit ratings; (vii) risks related to Prologis' and SEGRO's investments in and management of their co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to global pandemics; (xi) Prologis' and SEGRO's ability to complete the combination on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties relating to satisfying the conditions to the combination; (xii) the effect of the combination on the ability of Prologis and SEGRO to operate their respective businesses and retain and hire key personnel and to maintain favorable business relationships; (xiii) failure to realize the expected benefits or synergies of the combination; (xiv) significant transaction costs and/or unknown or inestimable liabilities; (xv) the risk of shareholder litigation in connection with the combination, including resulting expense or delay; (xvi) the risk that SEGRO's business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (xvii) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance; (xviii) risks related to the market value of the Prologis common stock to be issued in the combination, including foreign currency exchange rates; (xix) other risks related to the completion of the combination and actions related thereto; and (xx) those additional factors discussed under Part I, Item 1A. Risk Factors in Prologis' Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent documents filed with the SEC by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law. SOURCE Prologis, Inc.
	Saved 2026-08-04 10:30 1mo ago Published 2026-08-04 06:00 1mo ago	Spotify má 777 milionů uživatelů a 300 milionů předplatitelů Spotify Technology S.A. zveřejnila výsledky za 2. čtvrtletí 2026. Firma má 777 milionů uživatelů, včetně 300 milionů předplatitelů. SPOT Spotify	FMP Stock News	78
Original source text - NEW YORK--(BUSINESS WIRE)--Spotify Technology S.A. (NYSE: SPOT) has released its results for the second quarter of 2026 today. Please visit investors.spotify.com to view the Shareholder Deck and other supplemental materials. As previously announced, the company will host a live question and answer session to discuss second quarter 2026 results at 8:00 a.m. Eastern Time. Alex Norström and Gustav Söderström, our Co-Chief Executive Officers, and Christian Luiga, our Chief Financial Officer, will be on hand to answer questions. Questions can be submitted by going to slido.com and using the code #SpotifyEarningsQ226. What: Spotify Second Quarter 2026 Financial Results Q&A Webcast When: Tuesday, August 4, 2026 Time: 8:00 a.m. Eastern Time Q2 2026 Update: https://investors.spotify.com/ Webcast: https://app.webinar.net/24zaxYZl1G3 Slido Event Code: #SpotifyEarningsQ226 A live webcast of the earnings call will be accessible at investors.spotify.com and a recording of the webcast will be available following the session. About Spotify Technology S.A. Spotify’s platform revolutionized music listening forever when we launched in 2008. Today, more listeners than ever can discover, manage and enjoy over 100 million tracks, 7 million podcast titles, and 500,000 audiobooks in select markets on Spotify. We are the world’s most popular audio streaming subscription service with 777 million users, including 300 million subscribers across 184 markets. Source: Spotify Technology S.A. More News From Spotify Technology S.A. Back to Newsroom
	Saved 2026-08-04 10:30 1mo ago Published 2026-08-04 06:11 1mo ago	Spotify čeká slabší zisk kvůli zpomalujícímu růstu uživatelů Spotify čeká ve třetím čtvrtletí provozní zisk 670 milionů EUR, pod odhadem trhu, protože růst uživatelů zpomaluje v Evropě a Severní Americe. Akcie v premarketu klesly asi o 5 %. SPOT Spotify	FMP Stock News	92
Original source text Spotify's logo at the headquarters on Regeringsgatan in Stockholm, Sweden November 18, 2025. TT News Agency/Fredrik Sandberg/via REUTERS Purchase Licensing Rights, opens new tab Aug 4 (Reuters) - Spotify (SPOT.N), opens new tab forecast third-quarter profit below Wall Street estimates on Tuesday, after the streaming giant reported slowing user growth in ‌major markets of Europe and North America, driving shares around 5% lower in premarket trading. The Swedish company has launched AI features like "Personal Podcasts" and new offerings such as "Reserved" to attract more user and fend off ⁠competition from rivals including YouTube and Netflix, and AI music startups like Udio and Suno. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. Spotify said it expects operating income of €670 million ($770.97 million) in the third quarter, below analysts' average estimates of €677.8 million, according to data compiled by Visible Alpha. In the second quarter, its operating income came in at €655 million, beating estimates of €639.2 million, driven by strong revenue growth ‌and ⁠lower payroll taxes. Such taxes, called social charges, are tied to the value of the company's share price. The company's shares have fallen about 16% so far this year. Its quarterly revenue rose 14% to €4.78 ⁠billion, slightly below LSEG-compiled estimates of €4.80 billion. The revenue forecast for third quarter of €5 billion was slightly above estimates of €4.93 billion. Its ⁠monthly active users forecast of 788 million was below Visible Alpha estimates of 793.6 million, while its outlook for ⁠a 5 million increase in premium subscribers to 305 million was largely inline with estimates. ($1 = 0.8690 euros) Reporting by Jaspreet Singh in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab
	Saved 2026-08-04 10:24 1mo ago Published 2026-08-04 04:24 1mo ago	Lucid v červenci prodal méně vozů, akcie dál klesají Lucid v červenci v USA prodal odhadovaných 860 vozů, meziročně o 3,4 % méně. Akcie LCID letos klesly o více než 30 %. LCID Lucid Group	FMP Stock News	78
Original source text Lucid Group Inc. (NASDAQ:LCID) is set to report its earnings following market close on Tuesday. However, falling sales figures, combined with the volatility of the stock, could pose challenges for the EV maker. According to data from market research firm Motor Intelligence cited by an Electric Vehicles report on Monday, Lucid sold an estimated 860 units in the U.S. during July. The figure represents a 3.4% YoY decline from July 2025 and a 5.7% decline from June 2026, the report said. Notably, Lucid reported zero sales in four months in the Norwegian market, the report said. Norway remains one of the most popular markets for Battery Electric vehicles, with Norwegian Road Traffic Information Council data showing that EVs accounted for over 97% of Norway’s total new car registrations in July. Lucid’s lackluster U.S. sales come despite the company offering incentives like 0% financing for 72 months on 2026 Lucid Gravity units, as well as incentives worth up to $16,000 through various schemes on the stock, the report said. The Lucid Air sedan also had its own incentives worth up to $10,000, the report added. Motor Intelligence data only covers U.S. sales, but Lucid also operates in markets like Saudi Arabia and Canada, among others. Lucid’s Bankruptcy Rumors, Stock MovementThe news comes as Lucid CEO Silvio Napoli had dismissed reports that the automaker was going to file for bankruptcy. Slamming the reports, Napoli said that the EV maker was “not considering bankruptcy or a transaction to take the company private." Lucid’s Chief Communications Officer Nick Twork had earlier denied rumors of bankruptcy, saying that the automaker had delivered a cease-and-desist letter to the outlet behind the report. The automaker, during the second quarter of 2026, produced 4,774 vehicles and delivered 3,953 units, amid a series of changes in its leadership. Price Action: LCID, since the beginning of the year, has declined over 30%. Lucid shares were trading for around $11/share on January second, but have since fallen to $7.70/share at market close on Monday. According to Benzinga Edge Rankings, Lucid offers poor Momentum, but provides a favorable price trend in the Short and Medium term. Check out more of Benzinga’s Future Of Mobility coverage by following this link. Image via Shutterstock Market News and Data brought to you by Benzinga APIs © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. To add Benzinga News as your preferred source on Google, click here.
	Saved 2026-08-04 10:05 1mo ago Published 2026-08-04 06:00 1mo ago	Yiren Digital AI zvládá 98,7 % zákaznických dotazů Yiren Digital uvedla, že AI v zákaznických operacích dosahuje 98,7% míry odpovědí a téměř 80% míry samostatného vyřešení problémů. Denně také zpracuje asi 1 500 hodin převodu řeči na text. YRD Yiren Digital	FMP Stock News	78
Original source text AI-enabled customer operations achieve a 98.7% answer rate, nearly 80% autonomous problem resolution and approximately 1,500 hours of daily speech-to-text processing , /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets, today announced the continued expansion of AI deployment across customer operations, including intelligent customer service, outbound communications, quality controls and workflow automation. Customer operations encompass some of the Company's highest-volume workflows, spanning service, sales and asset-recovery interactions. Deploying AI across these high-volume workflows illustrates how the Company is extending AI beyond discrete task automation into shared operational capabilities that can be applied across additional business functions over time. "Customer operations represent a proven example of how agent-driven execution can create value at scale," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "By embedding AI into high-volume workflows, we are expanding service capacity and responsiveness while enabling our teams to focus on cases that require greater judgment and human engagement. These module deployments provide a solid foundation to support our future expansion into AI-powered business beyond fintech." AI-Enabled Customer Operations at Scale Yiren Digital's self-developed AI agent platform, MagiCube 2.0, serves as the Company's enterprise AI operating platform, providing the common infrastructure for AI agent deployment. XuanJi, the Company's AI-driven workflow execution layer, supports repetitive, high-volume processes such as outbound customer service, telesales, insurance proposal generation, lending operations and post-sale engagement. Together, these systems enable AI deployment across multiple customer-facing workflows through a unified enterprise architecture. Current examples of AI deployment across customer operations and related outcomes include: Intelligent customer service: The Qingniao intelligent customer-service system achieved a 98.7% answer rate, and its text-based service agent's autonomous problem-resolution rate increased from 60% to nearly 80%. Voice-AI: The Fengchao AI voice agent supports approximately 1,500 hours of real-time speech-to-text processing per day, with recognition accuracy as high as 97.8%. Automated quality assurance: A quality-inspection agent performs real-time checks on more than 2 million sales records daily, supporting consistent review at a scale that would be difficult to achieve through manual processes alone. 24/7 customer support: The Company's credit business operates a 24/7 AI-assisted outbound-call customer-service center, extending service availability and supporting high-volume customer communications. In addition to AI-enhanced customer solutions, all customer complaints were handled within 24 hours in 2025, and the Company's complaint-handling success rate reached 100% with total complaint volume decreasing by 35.97% year over year. These results reflect the Company's broader customer-protection and service-management efforts. Embedding AI Across Customer Operations Together, these deployments demonstrate how Yiren Digital is extending AI beyond standalone applications into core customer operations. By integrating AI agents, workflow execution and automated quality controls within a unified enterprise architecture, the Company is building a more consistent and scalable operating model while supporting its long-term transition toward an AI-native, multi-industry operating platform. Yiren Digital will continue expanding AI deployment across customer acquisition, customer service, quality assurance and post-sale engagement, supported by centralized orchestration and governance across regulated business lines. About Yiren Digital Yiren Digital Ltd. is a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets. The Company leverages advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion. Following the regulatory filing of its in-house developed Large Language Model Zhiyu, and the significant enhancement of its MagiCube Agent platform, Yiren Digital is establishing a new growth engine to accelerate its evolution into an AI-native, multi-industry operating platform extending beyond traditional financial services. For more information, please visit https://ir.yiren.com. Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "aim," "anticipate," "believe," "estimate," "expect," "hope," "going forward," "intend," "ought to," "plan," "project," "potential," "seek," "may," "might," "can," "could," "will," "would," "shall," "should," "is likely to" and the negative form of these words and other similar expressions. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident," and similar expressions. Forward-looking statements are based on management's current expectations, assumptions, and assessments of current market and operating conditions. These statements involve inherent risks, uncertainties, and other factors, many of which are outside the control of the Company, and which could cause actual results to differ materially from those expressed or implied in such statements. Actual results may differ materially from those expressed or implied in forward-looking statements due to a variety of factors and other risks described in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company undertakes no, and expressly disclaims any, obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law. SOURCE Yiren Digital Ltd.
	Saved 2026-08-04 09:33 1mo ago Published 2026-08-04 04:39 1mo ago	Coca-Cola Europacific zvýšila zisk i tržby, akcie klesly Coca-Cola Europacific Partners oznámila vyšší pololetní zisk i tržby, ale akcie po výsledcích klesly o 4,3 % na 7 710 p kvůli vybírání zisků. Firma potvrdila celoroční výhled na růst tržeb v konstantní měnové bázi o 3 až 4 % a růst provozního zisku kolem 7 %. CCEP Coca-Cola European Partners	FMP Stock News	88
Original source text Coca-Cola Europacific Partners PLC (LSE:CCEP, NASDAQ:CCEP) was hit by profit-taking after the drinks bottler reported higher first-half profit and reaffirmed its full-year guidance. The shares fell 4.3% to 7,710p, having hit an all-time high in the run-up to the interim results. Revenue increased 4.4% to €10.7 billion in the six months to 3 July, or 6.1% on a comparable currency-neutral basis. Reported operating profit rose 6.9% to €1.5 billion, while diluted earnings per share climbed 9.1% to €2.17. However, second-quarter revenue growth slowed to 2.5%, or 3.3% excluding currency movements. Revenue per unit case edged up just 0.1%, even as volumes grew 3.2% after adjusting for trading days. In Europe, quarterly volumes increased 2.3%, supported by warmer weather in June and the company's FIFA World Cup marketing campaign. Asia-Pacific volumes rose 5%, driven by the Philippines and a recovery in Indonesia. Chief executive Damian Gammell said the consumer environment remained challenging, while the full impact of the conflict in the Middle East was uncertain. The group retained its guidance for currency-neutral revenue growth of between 3% and 4% in the 2026 financial year, alongside operating profit growth of around 7%. It also continues to expect free cash flow of at least €1.7 billion. Coca-Cola Europacific Partners has completed €593 million of its planned €1 billion share buyback.
	Saved 2026-08-04 09:25 1mo ago Published 2026-08-04 02:13 1mo ago	Eaton po zveřejnění výsledků dosáhl nového maxima Eaton dosáhl nového 52týdenního maxima po zveřejnění výsledků, které překonaly očekávání: EPS činil 3,15 USD při tržbách 8,53 miliardy USD. Firma zároveň zvýšila výhled pro FY 2026 na 13,40–13,60 USD na akcii. ETN Eaton Corporation	FMP Stock News	92
Original source text Posted by Defense World Staff on Aug 4th, 2026 Eaton Corporation, PLC (NYSE:ETN – Get Free Report) shares hit a new 52-week high on Monday following a better than expected earnings announcement. The stock traded as high as $438.76 and last traded at $438.4160, with a volume of 3621802 shares changing hands. The stock had previously closed at $415.20. The industrial products company reported $3.15 EPS for the quarter, beating the consensus estimate of $3.08 by $0.07. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The company had revenue of $8.53 billion during the quarter, compared to analysts’ expectations of $8.16 billion. During the same quarter in the previous year, the company posted $2.95 EPS. The business’s revenue for the quarter was up 21.4% compared to the same quarter last year. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS. Eaton Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be paid a $1.10 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $4.40 annualized dividend and a yield of 1.0%. Eaton’s dividend payout ratio is presently 44.76%. Eaton News Roundup Here are the key news stories impacting Eaton this week: Positive Sentiment: Record results exceeded expectations. Eaton reported quarterly sales of approximately $8.5 billion, up 21% year over year, while adjusted earnings per share of $3.15 topped the $3.08 consensus estimate. Segment margins reached 23.1%, above the high end of management’s guidance. Eaton rises after record Q2 results and higher full-year outlook Positive Sentiment: Management raised its 2026 outlook. Full-year adjusted EPS guidance increased to $13.40-$13.60, while organic sales growth guidance rose to 11%-13%. Improved output in Electrical Americas and broad order growth support the upgraded forecast. ETN Q2 Earnings Call Highlights Ramp Progress and Raised Outlook Positive Sentiment: Data-center demand remains a major growth catalyst. Electrical Americas orders rose 41%, Electrical Global orders increased 33%, and electrical-sector data-center orders surged about 85% from the prior-year quarter. RBC said Eaton’s data-center construction backlog positions it well for a sustained growth cycle. Eaton Well-Positioned for Growth Surge Based on Data Center Construction Backlog, RBC Says Positive Sentiment: Analyst sentiment improved. BMO Capital Markets raised its price target from $477 to $487 and maintained an “outperform” rating. Other analysts also boosted forecasts following the earnings beat and higher guidance. Eaton Analysts Boost Their Forecasts After Strong Q2 Earnings Analyst Ratings Changes Several research firms have recently issued reports on ETN. JPMorgan Chase & Co. boosted their target price on Eaton from $406.00 to $445.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. BMO Capital Markets increased their price target on shares of Eaton from $477.00 to $487.00 and gave the company an “outperform” rating in a research report on Monday. Sanford C. Bernstein restated an “outperform” rating on shares of Eaton in a report on Monday. KeyCorp upped their target price on shares of Eaton from $420.00 to $480.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Wells Fargo & Company increased their target price on shares of Eaton from $350.00 to $425.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $430.89. Check Out Our Latest Report on ETN Insiders Place Their Bets In related news, Director Dorothy C. Thompson sold 167 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $385.00, for a total value of $64,295.00. Following the sale, the director directly owned 1,096 shares of the company’s stock, valued at approximately $421,960. The trade was a 13.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Peter Denk sold 2,000 shares of the business’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $417.94, for a total value of $835,880.00. Following the completion of the sale, the insider owned 7,102 shares in the company, valued at approximately $2,968,209.88. This trade represents a 21.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 21,028 shares of company stock worth $8,614,793 in the last three months. 0.10% of the stock is owned by corporate insiders. Institutional Investors Weigh In On Eaton A number of hedge funds and other institutional investors have recently bought and sold shares of ETN. Bartlett & CO. Wealth Management LLC increased its position in shares of Eaton by 9.2% during the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 238,030 shares of the industrial products company’s stock worth $75,815,000 after purchasing an additional 19,958 shares during the last quarter. Burling Wealth Partners LLC boosted its holdings in shares of Eaton by 63.0% in the 4th quarter. Burling Wealth Partners LLC now owns 11,296 shares of the industrial products company’s stock valued at $3,598,000 after buying an additional 4,366 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Eaton by 239,384.8% in the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 158,060 shares of the industrial products company’s stock valued at $50,344,000 after buying an additional 157,994 shares during the last quarter. Pioneer Trust Bank N A OR grew its stake in shares of Eaton by 669.1% in the fourth quarter. Pioneer Trust Bank N A OR now owns 6,230 shares of the industrial products company’s stock valued at $1,984,000 after buying an additional 5,420 shares in the last quarter. Finally, Entropy Technologies LP acquired a new position in Eaton during the fourth quarter worth $14,786,000. Institutional investors and hedge funds own 82.97% of the company’s stock. Eaton Stock Performance The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.91. The stock’s fifty day moving average is $405.81 and its two-hundred day moving average is $386.28. The firm has a market capitalization of $170.24 billion, a price-to-earnings ratio of 44.60, a P/E/G ratio of 2.65 and a beta of 1.18. About Eaton (Get Free Report) Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems. Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment. See Also Five stocks we like better than Eaton SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Why Rare Earth Processing Could Be the Real 2027 Opportunity The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? 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	Saved 2026-08-04 08:45 1mo ago Published 2026-08-04 08:35 1mo ago	CSG koupila areál v Sasku pro výrobu munice CSG koupila průmyslový areál v Sasku a plánuje do něj investovat 100 milionů eur do výroby nitroglycerinu, energetických materiálů a munice. V první fázi chce vybudovat i kapacity pro munici a muniční komponenty. CSG CSG	Patria Stock News	86
Original source text Zbrojařská skupina Czechoslovak Group pokračuje v rozsáhlé expanzi výrobních kapacit v Evropě. Po loňské akvizici výrobce nitrocelulózy nyní získala průmyslový areál v německém Sasku, kde plánuje investovat 100 milionů eur do výroby nitroglycerinu, energetických materiálů a munice. Zbrojařská a strojírenská skupina Czechoslovak Group (CSG) získala průmyslový areál v Německu, kde chce vyrábět energetický materiál, jako je nitroglycerin, a munice. Investovat chce do projektu 100 milionů eur (2,4 miliardy korun), kupní cenu ale nezveřejnila. Areál Gnaschwitz, který má 57 hektarů, se nachází nedaleko saského Budyšína a CSG ho získala od španělské společnosti MAXAM, jež patří mezi největší evropské výrobce průmyslových trhavin a vojenských energetických materiálů. CSG chce v tomto areálu vyrábět nitroglycerin a další produkty na jeho bázi. Podle skupiny představují klíčové suroviny pro výrobu dvousložkových i vícesložkových střelných prachů, které slouží jako pohonné náplně pro malorážovou, středněrážovou i velkorážovou munici. Produkce nitroglycerinu a navazujících produktů bude určena pro potřeby společností patřících pod CSG i pro zákazníky mimo skupinu. V první fázi investice chce také CSG vybudovat výrobní kapacity pro munici a muniční komponenty. "Tato investice přispěje k rozšíření výrobních kapacit, po nichž v Německu i celé Evropě dlouhodobě roste poptávka," stojí v tiskové zprávě. V areálu Gnaschwitz je podle skupiny do budoucna prostor i pro další rozvoj. Stávající infrastruktura umožňuje rozšířit výrobu například o sestavování munice středních ráží, tankové a 120milimetrové minometné munice nebo výrobu muničních komponentů. CSG už v Německu má závod na výrobu energetických materiálů. Minulý rok dokončil slovenský výrobce munice MSM Group, který patří pod CSG, převzetí průmyslového parku Walsrode v Bomlitzu, kde se vyrábí nitrocelulóza. Ani tehdy skupina kupní cenu neuvedla, ale Seznam Zprávy tehdy informovaly, že šlo o obchod za miliardy korun. V minulosti pak skupina usilovala i o získání českého státního výrobce výbušnin a střeliva Explosia. CSG je přední evropská obranná průmyslová skupina, nejvyšší vedení sídlí v Praze. Výrobní závody má ve Spojených státech, v Británii, ve Španělsku, v Itálii, Německu, Česku, na Slovensku, v?Srbsku a Indii. Zaměstnává více než 14.000 lidí, loni vykázala tržby 6,7 miliardy eur (162 miliard Kč). S akciemi CSG se od ledna obchoduje na amsterodamské a pražské burze, přičemž od té doby ztratily přes polovinu hodnoty.

Original source text

Revenues of $4.6 billion, up 7% year-over-year Net income of $356 million or $2.81 per diluted share Adjusted EBITDA (non-GAAP) of $631 million and Adjusted EBITDA margin (non-GAAP) of 13.8% Non-GAAP Diluted Earnings per Share of $3.26, up 2% year-over-year Cash Flows from Operations of $793 million; Non-GAAP Free Cash Flow of $761 million , /PRNewswire/ -- Leidos Holdings, Inc. (NYSE: LDOS) today reported financial results for the second quarter of fiscal year 2026, highlighted by robust revenue growth and free cash flow generation.

"I'm pleased to report another strong quarter for Leidos," said Chief Executive Officer Tom Bell. "In addition to achieving milestones for revenue and cash, we booked $5 billion of contract awards. We're seeing meaningful growth emerge across our Defense Tech, Energy Infrastructure, and Cyber growth pillars. And we have greater visibility into the long-term role of our Managed Healthcare pillar. The strength of our balanced portfolio allows us to enhance our 2026 guidance for revenues, earnings, and cash."

SUMMARY OPERATING RESULTS

Three Months Ended

(in millions, except margin and per share data)

July 3, 2026

July 4, 2025

Revenues

$ 4,558

$ 4,253

Net income

$                  356

$                   393

Net income margin

7.8 %

9.2 %

Diluted earnings per share (EPS)

$                 2.81

$                  3.01

Non-GAAP Measures*:

Adjusted EBITDA

$                  631

$                   647

Adjusted EBITDA margin

13.8 %

15.2 %

Non-GAAP diluted EPS

$                 3.26

$                  3.21

* Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Management believes that these non-GAAP measures provide another representation of Leidos' results of operations and financial condition, including its ability to comply with financial covenants. See Non-GAAP Financial Measures at the end of this press release for more information and a reconciliation of our selected reported results to these non-GAAP measures.

Revenues for the quarter were $4.56 billion, up 7% compared to the second quarter of 2025, including 4% organically. Revenues grew year-over-year due to increased customer demand for defense tech products, energy and air traffic management solutions, and intelligence mission support.

For the second quarter, net income was $356 million, or $2.81 per diluted share. Net income and diluted EPS were both down 9% and 7%, respectively, year-over-year; net income margin was 7.8% compared to 9.2% in the second quarter of 2025. Net income and diluted EPS for the quarter reflect $29 million in costs associated with the acquisition of ENTRUST Solutions Group ("Entrust") and the pending joint venture with Analogic Corporation, as well as restructuring costs associated with the NorthStar 2030 re-alignment. Adjusting for these and certain other items, non-GAAP net income decreased 1% year-over-year, to $413 million for the second quarter, and non-GAAP diluted EPS increased 2% to $3.26.

In addition, adjusted EBITDA was $631 million for the second quarter, down 2% year-over-year. Adjusted EBITDA margin of 13.8% decreased from 15.2% in the second quarter of 2025. Profitability in the current quarter reflected excellent program execution and disciplined cost management across the portfolio; profitability in the year-ago quarter benefited from several one-time, non-operational gains, including a $25 million insurance reimbursement for legal costs.

CASH FLOW SUMMARY

Net cash provided by operating activities for the quarter was $793 million for an operating cash flow conversion ratio of 224%. After adjusting for property, equipment, and software payments, quarterly free cash was $761 million for a free cash flow conversion ratio of 185%.

For the quarter, Leidos used $38 million in investing activities, including $32 million in property, equipment and software payments. Leidos used $423 million in financing activities, consisting primarily of $300 million in debt paydown and $127 million returned to shareholders, including $72 million in share repurchases and $55 million as part of a regular quarterly cash dividend program. As of July 3, 2026, Leidos had $748 million in cash and cash equivalents and $6.0 billion of debt.

NEW BUSINESS AWARDS

Net bookings totaled $4.9 billion in the quarter, representing a book-to-bill ratio of 1.1. As a result, backlog at the end of the quarter was $48.7 billion, of which $10.2 billion was funded. Trailing-twelve-month book-to-bill of 1.1 resulted in year-over-year growth in total and funded backlog of 5% and 44%, respectively. Quarterly bookings included several key awards:

Avionics Intermediate Shop (AIS) Production Support Integration (PIS). The U.S. Air Force Sustainment Center awarded Leidos a $475 million follow-on AIS PIS contract to manage the computerized diagnostic system that fixes the F-16 fighter jets. The company will deliver independent systems engineering, resolve complex component shortages, and manage original equipment manufacturer subcontracts. This work ensures sustained mission readiness of F-16 fleets for the U.S. Air Force, European, and foreign partners. General Services Administration (GSA) Military OneSource. Leidos secured a $456 million contract from the GSA to manage the Military OneSource program over the next four years. Under this agreement, Leidos will deliver comprehensive 24/7 well-being services, including confidential counseling, tax support, and relocation tools to more than 4.7 million service members and their families worldwide. This strategic win further cements Leidos as a leading provider of global military health and managed health services. U.S. Air Force Electronic Warfare Mission Support. Leidos received a $350 million contract modification to provide additional high-end technical support for the U.S. Air Force Material Command. The company will supply additional units of its advanced low-band surveillance radar infrastructure alongside specialized signal-processing software. These mission-critical capabilities are engineered to defeat adversary low-observable assets and mitigate heavy electronic countermeasures, providing defense networks with the definitive, high-fidelity threat intelligence required for modern multi-domain operations. Defense Health Agency (DHA) Reserve Health Readiness Program (RHRP) 3.1. Leidos will maintain uninterrupted medical and dental exams for U.S. military reservists under a potential 30-month, $325 million contract modification while the DHA finalizes its long-term transition strategy for RHRP. Customs Border Patrol (CBP) Medium Energy Mobile (MEM) Systems. Leidos secured a five-year, $270 million single-award indefinite delivery, indefinite quantity (IDIQ) contract from CBP to deliver up to 100 MEM Systems. These flexible, non-intrusive inspection units scan vehicles and cargo for contraband, drugs, and weapons and will be deployed at various points of entry across the U.S. This award will align to the Leidos Security Enterprise Solutions and Analogic Corporation joint venture upon its formation. Naval Surface Warfare Center (NSWC) Multi-Service Advanced Capability Hypersonics Test Bed (MACH-TB) 2.0. The NSWC awarded Leidos an $88 million other transaction authority (OTA) contract to develop experimental hypersonic glide vehicles to serve as real-world testbeds for advancing high-speed flight technologies. FORWARD GUIDANCE

Leidos is raising its fiscal year 2026 guidance as follows:

FY26 Guidance

Measure

Current

Prior

Revenues (B)

$18.20 - $18.40

$18.00 - $18.40

Adjusted EBITDA Margin

Mid 13%

Mid 13%

Non-GAAP Diluted EPS

$12.20 - $12.50

$12.10 - $12.50

Cash Flows Provided by Operating Activities (B)

Approximately $1.85

Approximately $1.80

For information regarding adjusted EBITDA margin and non-GAAP diluted EPS, see the related explanations and reconciliations to GAAP measures included elsewhere in this release.

Leidos does not provide a reconciliation of forward-looking adjusted EBITDA margins or non-GAAP diluted EPS to net income margin or diluted EPS due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected net income margin or diluted EPS may vary significantly based on actual events, Leidos is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected net income margin and diluted EPS being materially less than what may be implied by projected adjusted EBITDA margins and non-GAAP diluted EPS.

CONFERENCE CALL INFORMATION

Leidos management will discuss operations and financial results in an earnings conference call beginning at 8 A.M. eastern time on August 4, 2026. A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leidos Investor Relations website (http://ir.leidos.com). An archived version of the webcast will be available on the Leidos Investor Relations website until August 4, 2027.

ABOUT LEIDOS

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimates of our future growth, strategy and financial and operating performance, including future revenues, adjusted EBITDA margins, diluted EPS (including on a non-GAAP basis) and cash flows provided by operating activities, as well as statements about our business contingency plans, government budgets and spending, uncertainties in tax due to new tax legislation or other regulatory developments, strategy, planned investments including the pending joint venture, sustainability goals and our future dividends, share repurchases, capital expenditures, debt repayments, acquisitions, dispositions and cash flow conversion. These statements reflect our belief and assumptions as to future events that may not prove to be accurate.

Actual performance and results may differ materially from those results anticipated by our guidance and other forward-looking statements made in this release depending on a variety of factors, including, but not limited to: developments in the U.S. government defense and non-defense budgets, including budget reductions, sequestration, implementation of spending limits or changes in budgetary priorities, potential future U.S. government shutdown and other or future delays in the U.S. government budget process, or the U.S. government's failure to raise the debt ceiling, which increases the possibility of a default by the U.S. government on its debt obligations, related credit-rating downgrades, or an economic recession; uncertainties in tax due to new tax legislation or other regulatory developments; deterioration of economic conditions or weakening in credit or capital markets; uncertainty in the consequences of current and future geopolitical events; inflationary pressures and fluctuations in interest rates; delays in the U.S. government contract procurement process or the award of contracts and delays or loss of contracts as a result of competitor protests; changes in U.S. government procurement rules, regulations and practices; our compliance with various U.S. government and other government procurement rules and regulations; governmental reviews, audits and investigations of our company; our ability to effectively compete and win contracts with the U.S. government and other customers; our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence; our reliance on information technology spending by hospitals/healthcare organizations; our reliance on infrastructure investments by industrial and natural resources organizations; energy efficiency and alternative energy sourcing investments; investments by U.S. government and commercial organizations in environmental impact and remediation projects; the effects of an epidemic, pandemic or similar outbreak may have on our business, financial position, results of operations and/or cash flows; our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our employees; our ability to accurately estimate costs, including cost increases due to inflation, associated with our firm-fixed-price contracts and other contracts; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues; cybersecurity, data security or other security threats, system failures or other disruptions of our business; our compliance with international, federal, state and local laws and regulations regarding privacy, data security, protection, storage, retention, transfer, disposal and other processing, technology protection and personal information; the damage and disruption to our business resulting from natural disasters and the effects of climate change; our ability to effectively acquire businesses and make investments; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to manage performance and other risks related to customer contracts; the failure of our inspection or detection systems to detect threats; the adequacy of our insurance programs, customer indemnifications or other liability protections designed to protect us from significant product or other liability claims, including cybersecurity attacks; our ability to manage risks associated with our international business; our ability to comply with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and similar worldwide anti-corruption and anti-bribery laws and regulations; our ability to protect our intellectual property and other proprietary rights by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to prevail in litigation brought by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to declare or increase future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and our agreements; our ability to grow our commercial health and infrastructure businesses, which could be negatively affected by budgetary constraints faced by hospitals and by developers of energy and infrastructure projects; our ability to successfully integrate acquired businesses; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks that we face.

These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the U.S. Securities and Exchange Commission (SEC), including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the Investor Relations section of our website at www.leidos.com.

All information in this release is as of August 4, 2026. Leidos expressly disclaims any duty to update the guidance or any other forward-looking statement provided in this release to reflect subsequent events, actual results or changes in Leidos' expectations. Leidos also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

CONTACTS:

Investor Relations:

Media Relations:

Stuart Davis

Brandon Ver Velde

571.526.6124

571.526.6257

[email protected]

[email protected]

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Six Months Ended

(in millions, except per share data)

July 3,
2026

July 4,
2025

July 3,
2026

July 4,
2025

Revenues

$        4,558

$         4,253

$        8,958

$         8,498

Cost of revenues

3,741

3,471

7,380

6,959

Selling, general and administrative expenses

283

217

506

447

Acquisition, integration and restructuring costs

27

2

62

6

Equity earnings of non-consolidated subsidiaries

(7)

(8)

(12)

(15)

Operating income

514

571

1,022

1,101

Non-operating expense:

Interest expense, net

(69)

(55)

(124)

(104)

Other income (expense), net

6

2

(18)

(1)

Income before income taxes

451

518

880

996

Income tax expense

(95)

(125)

(189)

(238)

Net income

356

393

691

758

Less: net income attributable to non-controlling interest

2

2

9

4

Net income attributable to Leidos common stockholders

$           354

$           391

$           682

$           754

Earnings per share:

Basic

$          2.81

$           3.03

$          5.41

$           5.84

Diluted

2.81

3.01

5.37

5.80

Weighted average number of common shares outstanding:

Basic

126

129

126

129

Diluted

126

130

127

130

Cash dividends declared per share

$          0.43

$           0.40

$          0.86

$           0.80

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

July 3,
2026

January 2,
2026

Assets:

Cash and cash equivalents

$         748

$        1,108

Receivables, net

2,968

2,708

Inventory, net

94

342

Other current assets

493

656

Assets held for sale

943

—

Total current assets

5,246

4,814

Property, plant and equipment, net

900

961

Intangible assets, net

943

458

Goodwill

7,663

6,342

Operating lease right-of-use assets, net

491

526

Other long-term assets

389

392

Total assets

$     15,632

$       13,493

Liabilities:

Accounts payable and accrued liabilities

$       2,180

$        1,988

Accrued payroll and employee benefits

855

819

Current portion of long-term debt

22

20

Liabilities held for sale

163

—

Total current liabilities

3,220

2,827

Long-term debt, net of current portion

6,009

4,628

Operating lease liabilities

547

587

Other long-term liabilities

520

489

Total liabilities

10,296

8,531

Stockholders' equity:

Common stock, $0.0001 par value, 500,000,000 shares authorized, 125,492,013 and 126,380,657 shares issued and outstanding at July 3, 2026, and January 2, 2026, respectively

—

—

Additional paid-in capital

88

319

Retained earnings

5,219

4,647

Accumulated other comprehensive loss

(23)

(50)

Total Leidos stockholders' equity

5,284

4,916

Non-controlling interest

52

46

Total stockholders' equity

5,336

4,962

Total liabilities and stockholders' equity

$     15,632

$       13,493

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(in millions)

July 3,
2026

July 4,
2025

July 3,
2026

July 4,
2025

Cash flows from operations:

Net income

$           356

$           393

$           691

$           758

Adjustments to reconcile net income to net cash provided by operations:

Depreciation and amortization

81

72

153

141

Stock-based compensation

26

25

51

46

Deferred income taxes

6

224

(2)

200

Net (gain) loss on pension plan settlement

(3)

—

20

—

Other

4

1

14

—

Change in assets and liabilities, net of effects of acquisitions and dispositions:

Receivables

(33)

10

(193)

(236)

Other current assets and other long-term assets

35

(7)

38

(34)

Accounts payable and accrued liabilities and other long-term liabilities

43

(188)

97

(260)

Accrued payroll and employee benefits

188

155

34

7

Income taxes receivable/payable

90

(199)

191

(78)

Net cash provided by operating activities

793

486

1,094

544

Cash flows from investing activities:

Acquisition of a business, net of cash acquired

—

(285)

(2,338)

(285)

Payments for property, equipment and software

(32)

(29)

(63)

(51)

Divestiture of a business

—

—

4

—

Net proceeds from sale of assets

4

—

4

—

Other

(10)

—

(4)

—

Net cash used in investing activities

(38)

(314)

(2,397)

(336)

Cash flows from financing activities:

Proceeds from debt issuance

—

—

1,397

997

Repayments from commercial paper

(300)

—

—

—

Repayments of borrowings

(5)

(30)

(10)

(559)

Payments for debt issuance costs

—

—

(15)

(7)

Dividend payments

(55)

(52)

(110)

(105)

Repurchases of stock and other

(72)

(9)

(315)

(537)

Proceeds from issuances of stock

17

16

33

31

Net capital distributions to non-controlling interests

(1)

(2)

(3)

(7)

Other

(7)

(6)

(7)

(6)

Net cash (used in) provided by financing activities

(423)

(83)

970

(193)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

1

7

—

14

Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified in current assets held for sale

333

96

(333)

29

Less: change in cash balances classified as assets held for sale

41

—

41

—

Net increase (decrease) in cash, cash equivalents and restricted cash

292

96

(374)

29

Cash, cash equivalents and restricted cash at beginning of period

538

924

1,204

991

Cash, cash equivalents and restricted cash at end of period

830

1,020

830

1,020

Less: restricted cash at end of period

82

90

82

90

Cash and cash equivalents at end of period

$           748

$           930

$           748

$           930

LEIDOS HOLDINGS, INC.

UNAUDITED SEGMENT OPERATING RESULTS

Three Months Ended

Six Months Ended

(in millions)

July 3,
2026

July 4,
2025

July 3,
2026

July 4,
2025

Revenues:

Intelligence & Digital

$       1,499

$         1,408

$       3,012

$         2,816

Health

1,086

1,175

2,274

2,363

Homeland

1,018

771

1,834

1,541

Defense

955

899

1,838

1,778

Total

$       4,558

$         4,253

$       8,958

$         8,498

Operating income (loss):

Intelligence & Digital

$         142

$           135

$         288

$           267

Health

254

303

538

591

Homeland

92

64

125

125

Defense

84

78

146

152

Corporate

(58)

(9)

(75)

(34)

Total

$         514

$           571

$       1,022

$         1,101

Operating income margin:

Intelligence & Digital

9.5 %

9.6 %

9.6 %

9.5 %

Health

23.4 %

25.8 %

23.7 %

25.0 %

Homeland

9.0 %

8.3 %

6.8 %

8.1 %

Defense

8.8 %

8.7 %

7.9 %

8.5 %

Total

11.3 %

13.4 %

11.4 %

13.0 %

Beginning fiscal 2026, we completed a realignment of our reporting structure, which resulted in the identification of four reportable segments: Intelligence & Digital, Health, Homeland and Defense. Additionally, we separately present the unallocable costs associated with corporate functions as Corporate. We commenced operating and reporting under the new organizational structure effective the first day of fiscal 2026. As a result of this change, prior year segment results have been recast to reflect the current reportable segment structure.

Intelligence & Digital

Intelligence & Digital revenues grew 6% year-over-year to $1.50 billion driven by recent contract awards and increased volumes for Intelligence Community mission support, as well as $9 million from Kudu Dynamics through May 23, 2026 (12 months from the close of the acquisition). Operating income margin was 9.5% compared to 9.6% in the prior year quarter, and non-GAAP operating income margin was 10.1%, unchanged from the prior year quarter.

Health

Health revenues of $1.09 billion decreased by 8% compared to the prior year quarter. Health operating income margin for the quarter was 23.4%, compared to 25.8% in the prior year quarter, and non-GAAP operating income margin was 23.8%, compared to 26.3% in the prior year quarter. The declines in revenues and margins were primarily driven by lower medical disability exam volumes.

Homeland

Homeland revenues of $1.02 billion increased by 32% compared to the prior year quarter. Revenue growth was driven by continued strong demand in the Air Traffic and Energy businesses, and included $141 million from the acquisition of ENTRUST Solutions. Operating income margin for the quarter was 9.0%, compared to 8.3% in the prior year quarter, and non-GAAP operating margin increased to 12.1% from 9.3% in the prior year quarter. Profitability enhancements were driven by a better mix of security products, as well as improved program performance and lower indirect expenses across the portfolio.

Defense

Defense revenues of $955 million were up 6% compared to the prior year quarter led by increased demand for several defense tech product lines. Defense operating income margin for the quarter was 8.8%, compared to 8.7% in the prior year quarter, and non-GAAP operating margin was 9.9%, compared to 10.0% in the prior year quarter.

LEIDOS HOLDINGS, INC.
UNAUDITED BACKLOG BY REPORTABLE SEGMENT

Backlog represents the revenues we expect to recognize under negotiated contracts and unissued task orders on sole source IDIQ contracts, to the extent we believe their execution and funding to be probable. Backlog does not include potential task orders expected to be awarded under multiple award IDIQ contracts.

Backlog value is based on management's estimates about volume of services, availability of customer funding and other factors, and excludes contracts that are under protest. Estimated backlog comprises both funded and negotiated unfunded backlog. Backlog estimates are subject to change and may be affected by several factors, including modifications of contracts, non-exercise of options and foreign currency movements.

Funded backlog for contracts with the U.S. government represents the value on contracts for which funding is appropriated less revenues previously recognized on these contracts. Funded backlog for contracts with non-U.S. government entities and commercial customers represents the estimated value on contracts, which may cover multiple future years, under which Leidos is obligated to perform, less revenue previously recognized on the contracts. Unfunded backlog represents all remaining value on task orders that is not funded, including options, that we expect to recognize as well as expected future task orders under sole source IDIQ contracts.

The estimated value of backlog as of the dates presented was as follows:

July 3, 2026

July 4, 2025

(in millions)

Funded

Unfunded

Total

Funded

Unfunded

Total

Intelligence & Digital

$       1,922

$     16,492

$     18,414

$        1,667

$       16,081

$       17,748

Health

1,242

5,369

6,611

504

7,522

8,026

Homeland

3,669

6,261

9,930

2,918

6,920

9,838

Defense

3,390

10,366

13,756

2,033

8,565

10,598

Total

$     10,223

$     38,488

$     48,711

$        7,122

$       39,088

$       46,210

Backlog at July 3, 2026, includes amounts acquired as part of the Entrust transaction. As of March 27, 2026, the acquisition date, Entrust had $371 million of backlog that was included within the Homeland reportable segment.

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES

Leidos uses and refers to non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP diluted EPS, non-GAAP free cash flow and non-GAAP free cash flow conversion, which are not measures of financial performance under generally accepted accounting principles in the U.S. and, accordingly, these measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with Leidos's consolidated financial statements prepared in accordance with GAAP.

Management believes that these non-GAAP measures provide another representation of the results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Organic revenues capture the revenue that is inherent in the underlying business excluding the impact of acquisitions and divestitures made within the prior year; it is computed as current revenues excluding revenues from acquisitions within the last 12 months and divestitures within the current and year-ago periods.

Non-GAAP operating income is computed by excluding the following discrete items from operating income:

Acquisition, integration and restructuring costs – Represents acquisition, integration, lease termination, severance and retention costs and asset markdowns related to acquisitions and restructuring activities. Amortization of acquired intangible assets – Represents the amortization of the fair value of the acquired intangible assets. We do not exclude the revenue associated with these acquired intangible assets from non-GAAP operating income. Asset impairment charges – Represents impairments of long-lived intangible assets and other assets. Non-GAAP non operating income is computed by excluding the discrete items from operating income and the following discrete items from non operating income.

Settlement loss on pension plan buy-out – Represents the settlement loss in connection with the buy-out of our UK defined benefit pension plan. Acquisition related financing costs – Represents the cost associated with the termination of the bridge loan facility in connection with the acquisition of Entrust. Non-GAAP operating margin is computed by dividing non-GAAP operating income by revenues.

Adjusted EBITDA is computed by excluding the following items from income before income taxes: (i) discrete items as identified above; (ii) interest expense; (iii) interest income; (iv) depreciation expense; and (v) amortization of internally developed intangible assets.

Adjusted EBITDA margin is computed by dividing adjusted EBITDA by revenues.

Non-GAAP net income is computed by excluding the discrete items listed under non-GAAP operating income and non-GAAP non operating income and their related tax impacts.

Non-GAAP diluted EPS is computed by dividing net income attributable to Leidos common stockholders, adjusted for the discrete items as identified above and the related tax impacts, by the diluted weighted average number of common shares outstanding.

Non-GAAP free cash flow is computed by deducting expenditures for property, equipment and software from net cash provided by (used in) operating activities.

Non-GAAP free cash flow conversion is computed by dividing non-GAAP free cash flow by non-GAAP net income attributable to Leidos common stockholders; operating cash flow conversion is computed by dividing net cash provided by operating activities by net income attributable to Leidos common stockholders.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except growth percentages)

The following table presents the reconciliation of revenues to organic revenues by reportable segment and total operations:

Three Months Ended

July 3, 2026

July 4, 2025

Percent Change

Intelligence & Digital

Revenues, as reported

$         1,499

$         1,408

6.5 %

Acquisition revenues(1)

9

—

Organic revenues

1,490

1,408

5.8 %

Health

Revenues, as reported

1,086

1,175

(7.6) %

Homeland

Revenues, as reported

1,018

771

32.0 %

Acquisition and divestiture revenues(1)(2)

141

9

Organic revenues

877

762

15.1 %

Defense

Revenues, as reported

955

899

6.2 %

Total Operations

Revenues, as reported

4,558

4,253

7.2 %

Acquisition and divestiture revenues(1)(2)

150

9

Organic revenues

$         4,408

$         4,244

3.9 %

(1)

Current period acquisition revenues reflects revenues in the current as reported figures for 12 months from closing of each acquisition. Acquisition revenues for the three months ended July 3, 2026, for the Intelligence & Digital and Homeland segments includes Kudu Dynamics (acquired May 23, 2025) and Entrust (acquired March 27, 2026).

(2)

Prior period divestiture revenues reflect revenues from assets subsequently divested. Divestiture revenues for the three months ended July 4, 2025, for the Homeland segment include an immaterial business not aligned to the Company's long term strategy (divested October 31, 2025).

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended July 3, 2026:

Three Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs (1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
results

Operating income

$         514

$           29

$           40

$             1

$         584

Non-operating expense, net

(63)

—

—

—

(63)

Income before income taxes

451

29

40

1

521

Income tax expense(2)

(95)

(3)

(10)

—

(108)

Net income

356

26

30

1

413

Less: net income attributable to non-controlling interest

2

—

—

—

2

Net income attributable to Leidos common stockholders

$         354

$           26

$           30

$             1

$         411

Diluted EPS attributable to Leidos common stockholders(3)

$        2.81

$         0.21

$         0.24

$         0.01

$        3.26

Diluted shares

126

126

126

126

126

Three Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs (1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
results

Net income

$       356

$           26

$           30

$             1

$        413

Income tax expense(2)

95

3

10

—

108

Income before income taxes

451

29

40

1

521

Depreciation expense

41

—

—

—

41

Amortization of intangibles

40

—

(40)

—

—

Interest expense, net

69

—

—

—

69

Adjusted EBITDA

$       601

$           29

$           —

$             1

$        631

Adjusted EBITDA margin

13.2 %

13.8 %

(1)

Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(2)

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(3)

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended July 4, 2025:

Three Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs

Amortization
of acquired
intangibles

Non-GAAP
results

Operating income

$          571

$             2

$           32

$          605

Non-operating expense, net

(53)

—

—

(53)

Income before income taxes

518

2

32

552

Income tax expense(1)

(125)

(1)

(7)

(133)

Net income

393

1

25

419

Less: net income attributable to non-controlling interest

2

—

—

2

Net income attributable to Leidos common stockholders

$          391

$             1

$           25

$          417

Diluted EPS attributable to Leidos common stockholders(2)

$         3.01

$         0.01

$         0.19

$         3.21

Diluted shares

130

130

130

130

Three Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs

Amortization
of acquired
intangibles

Non-GAAP
results

Net income

$        393

$             1

$           25

$        419

Income tax expense(1)

125

1

7

133

Income before income taxes

518

2

32

552

Depreciation expense

40

—

—

40

Amortization of intangibles

32

—

(32)

—

Interest expense, net

55

—

—

55

Adjusted EBITDA

$        645

$             2

$           —

$        647

Adjusted EBITDA margin

15.2 %

15.2 %

(1)

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2)

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the six months ended July 3, 2026:

Six Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Settlement
loss on
pension plan
buy-out

Acquisition
related
financing
costs

Non-GAAP
results

Operating income

$      1,022

$           64

$          70

$           1

$          —

$          —

$      1,157

Non-operating expense, net

(142)

—

—

—

23

5

(114)

Income before income taxes

880

64

70

1

23

5

1,043

Income tax expense(2)

(189)

(9)

(17)

—

(6)

(1)

(222)

Net income

691

55

53

$           1

$          17

$            4

821

Less: net income attributable to non-controlling interest

9

—

—

—

—

—

9

Net income attributable to Leidos common stockholders

$        682

$           55

$          53

$           1

$          17

$            4

$        812

Diluted EPS attributable to Leidos common stockholders(3)

$       5.37

$         0.43

$        0.42

$       0.01

$        0.13

$        0.03

$       6.39

Diluted shares

127

127

127

127

127

127

127

Six Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Settlement
loss on
pension plan
buy-out

Acquisition
related
financing
costs

Non-GAAP
results

Net income

$      691

$          55

$          53

$            1

$          17

$            4

$       821

Income tax expense(2)

189

9

17

—

6

1

222

Income before income taxes

880

64

70

1

23

5

1,043

Depreciation expense

83

—

—

—

—

—

83

Amortization of intangibles

70

—

(70)

—

—

—

—

Interest expense, net

124

—

—

—

—

(5)

119

Adjusted EBITDA

$    1,157

$          64

$          —

$            1

$          23

$          —

$     1,245

Adjusted EBITDA margin

12.9 %

13.9 %

(1)

Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(2)

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(3)

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the six months ended July 4, 2025:

Six Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Non-GAAP
results

Operating income

$       1,101

$             7

$           62

$        1,170

Non-operating expense, net

(105)

—

—

(105)

Income before income taxes

996

7

62

1,065

Income tax expense(2)

(238)

(2)

(15)

(255)

Net income

758

5

47

810

Less: net loss attributable to non-controlling interest

4

—

—

4

Net income attributable to Leidos common stockholders

$         754

$             5

$           47

$          806

Diluted EPS attributable to Leidos common stockholders(3)

$        5.80

$         0.04

$         0.36

$         6.20

Diluted shares

130

130

130

130

Six Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Non-GAAP
results

Net income

$       758

$             5

$           47

$        810

Income tax expense(2)

238

2

15

255

Income before income taxes

996

7

62

1,065

Depreciation expense

79

—

—

79

Amortization of intangibles

62

—

(62)

—

Interest expense, net

104

—

—

104

Adjusted EBITDA

$     1,241

$             7

$           —

$      1,248

Adjusted EBITDA margin

14.6 %

14.7 %

(1)

Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(2)

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(3)

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except margin percentages)

The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income:

Three Months Ended July 3, 2026

Operating
income
(loss)

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
operating
income
(loss)

Non-GAAP
operating
margin

Intelligence & Digital

$        142

$             1

$             7

$              1

$        151

10.1 %

Health

254

2

3

—

259

23.8 %

Homeland

92

12

19

—

123

12.1 %

Defense

84

—

11

—

95

9.9 %

Corporate

(58)

14

—

—

(44)

NM

Total

$        514

$           29

$           40

$              1

$        584

12.8 %

NM - Not Meaningful

(1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations

Three Months Ended July 4, 2025

Operating
income

(loss)

Acquisition,
integration
and
restructuring
costs

Amortization
of acquired
intangibles

Non-GAAP
operating
income

(loss)

Non-GAAP
operating
margin

Intelligence & Digital

$         135

$           —

$             7

$         142

10.1 %

Health

303

—

6

309

26.3 %

Homeland

64

1

7

72

9.3 %

Defense

78

—

12

90

10.0 %

Corporate

(9)

1

—

(8)

NM

Total

$         571

$             2

$           32

$         605

14.2 %

Six Months Ended July 3, 2026

Operating
income
(loss)

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
operating
income
(loss)

Non-GAAP
operating
margin

Intelligence & Digital

$        288

$             2

$           15

$             1

$        306

10.2 %

Health

538

2

7

—

547

24.1 %

Homeland

125

41

26

—

192

10.5 %

Defense

146

—

22

—

168

9.1 %

Corporate

(75)

19

—

—

(56)

NM

Total

$      1,022

$           64

$           70

$             1

$      1,157

12.9 %

NM - Not Meaningful

(1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except margin percentages)

The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income:

Six Months Ended July 4, 2025

Operating
income

(loss)

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Non-GAAP
operating
income

(loss)

Non-GAAP
operating
margin

Intelligence & Digital

$         267

$           —

$           12

$         279

9.9 %

Health

591

—

12

603

25.5 %

Homeland

125

5

14

144

9.3 %

Defense

152

—

24

176

9.9 %

Corporate

(34)

2

—

(32)

NM

Total

$       1,101

$             7

$           62

$       1,170

13.8 %

NM - Not Meaningful

(1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except percentages)

The following table presents the reconciliation of free cash flow to net cash provided by operating activities as well as the calculation of operating cash flow and free cash flow conversion ratios:

Three Months Ended

July 3, 2026

July 4, 2025

Net cash provided by operating activities

$               793

$                486

Payments for property, equipment and software

(32)

(29)

Non-GAAP free cash flow

$               761

$                457

Net income attributable to Leidos common stockholders

$               354

$                391

Acquisition, integration and restructuring costs(1)(2)

26

1

Amortization of acquired intangibles(1)

30

25

Asset impairment charges(1)

1

—

Non-GAAP net income attributable to Leidos common stockholders

$               411

$                417

Operating cash flow conversion ratio

224 %

124 %

Non-GAAP free cash flow conversion ratio

185 %

110 %

(1)

After-tax expenses excluded from non-GAAP net income.

(2)

Asset markdowns associated with restructuring activities for the three months ended July 3, 2026, were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

SOURCE Leidos Holdings, Inc.

Original source text

WESTBROOK, Maine--(BUSINESS WIRE)--IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced second quarter results.

Second Quarter Results

The Company reports revenues of $1,217 million for the second quarter of 2026, an increase of 10% as reported and 9% organic, driven by Companion Animal Group ("CAG") growth of 9% as reported and organic, Water revenue growth of 15% as reported and 13% organic, and LPD revenue growth of 11% as reported and 9% organic.

Second quarter earnings per diluted share (“EPS”) were $4.27, an increase of 18% as reported and 15% on a comparable basis. Second quarter EPS included $0.14 per share in tax benefits from share-based compensation and $0.06 per share benefit from year-over-year currency changes.

“Our second quarter results reflect the strength of our Technology for Life strategy, with continued innovation across our Catalyst, Fecal Dx, and IDEXX inVue Dx platforms supporting deeper customer adoption and higher diagnostic utilization,” said Mike Erickson, President and Chief Executive Officer. “This is the kind of durable, compounding growth we're building for the long term, helping veterinarians see more and do more for their patients while creating lasting value for our shareholders.”

Second Quarter Performance Highlights

Companion Animal Group (“CAG”)

CAG revenue growth was led by CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic, including 14% reported and 12% organic gains in International regions, and 10% reported and organic growth in the U.S., outpacing sector growth levels.

Additional U.S. companion animal practice key metrics are available in the Q2 2026 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.

Exceptional commercial execution - including strong volume gains, net customer expansion, benefits from IDEXX innovation, and growth of the premium instrument installed base - drove double-digit CAG Diagnostics recurring revenue growth.

IDEXX VetLab™ consumables generated 15% reported and 14% organic revenue growth, supported by testing utilization gains, including benefits from recent product launches and net new customer growth with 11% expansion of the IDEXX global premium instrument installed base and net price gains. Reference laboratory diagnostic and consulting services generated 11% reported and 10% organic revenue growth, driven by higher testing volumes and net new customer gains. Rapid assay products revenues increased 1% as reported and on an organic basis, driven by net price benefits and an easing of the volume impacts from adoption of the Catalyst™ Pancreatic Lipase Test, which has shifted some testing across modalities. CAG Diagnostics capital instrument revenues decreased 19% as reported and 20% on an organic basis, lapping the Q2 2025 broad availability of IDEXX inVue Dx, with current-year period revenue benefiting from over 1,600 IDEXX inVue Dx placements.

Veterinary software, services and diagnostic imaging systems revenues grew 12% on a reported and organic basis for the quarter, with benefits from cloud-native software growth and installed base expansion. Diagnostic imaging systems delivered another record quarter of installations, led by ImageVue™ DR50 Plus.

Water

Water revenues grew 15% as reported and 13% organic for the quarter, reflecting solid organic growth in the U.S. and Europe.

Livestock, Poultry and Dairy (“LPD”)

LPD revenues increased 11% as reported and 9% organic for the quarter, led by strong growth in the Americas.

Gross Profit and Operating Profit

Gross profit increased 12% as reported and 11% on a comparable basis. Gross margin of 64.0% increased 140 basis points as reported and 120 basis points on a comparable basis, supported by strong recurring revenue volume gains, operational productivity initiatives, and net price realization.

Operating margin was 35.0% for the quarter, higher than the prior year period by 140 basis points as reported and by 110 basis points on a comparable basis. Operating margin results reflect a 10% operating expense increase as reported and 9% growth on a comparable basis. Operating expense growth supported expansion of commercial capabilities, advancement of the Company's innovation agenda, and enabling information technology investments.

2026 Growth and Financial Performance Outlook

The Company is updating its full year revenue growth guidance range to $4,700 million - $4,745 million, or reported growth of 9.1% - 10.3%, an increase of $5 million at midpoint, net of a $15 million reduction to projected revenues from a stronger U.S. dollar. The Company is increasing its outlook for organic revenue growth to 8.5% - 9.7%, an increase of 0.4% at midpoint, reflecting operational performance.

The Company increased its full year reported operating margin outlook to 32.3% - 32.5%, bringing the projected full year operating profit margin expansion to 70 - 90 basis points as reported and on a comparable basis. This outlook benefits from strong second quarter operating performance, while advancing strategic investment priorities.

The Company updated its EPS outlook range to $14.69 - $14.94, reflecting increased reported growth of 12% - 14% and 13% - 15% comparable growth. At midpoint this reflects benefits of $0.14 per share from operational performance; $0.05 from higher share-based compensation benefits and a $0.05 headwind from updated estimates for foreign exchange impacts.

The following table provides the Company's updated outlook for annual key financial metrics in 2026 with a comparison to the prior outlook:

Amounts in millions except per share data and percentages

2026 Growth and Financial Performance Outlook

Updated

Prior

Revenue

$4,700

-

$4,745

$4,675

-

$4,760

Reported growth

9.1%

-

10.3%

8.6%

-

10.6%

Organic growth

8.5%

-

9.7%

7.7%

-

9.7%

CAG Diagnostics Recurring Revenue Growth

Reported growth

10.1%

-

11.3%

9.6%

-

11.6%

Organic growth

9.5%

-

10.7%

8.7%

-

10.7%

Operating Margin

32.3%

-

32.5%

32.1%

-

32.5%

Operating margin expansion

70 bps

-

90 bps

50 bps

-

90 bps

Comparable margin expansion

70 bps

-

90 bps

50 bps

-

90 bps

EPS

$14.69

-

$14.94

$14.45

-

$14.90

Reported growth

12%

-

14%

11%

-

14%

Comparable growth

13%

-

15%

11%

-

15%

Other Key Metrics

Net interest expense

~ $35

~ $34

Share-based compensation tax benefit

~ $19

~ $15

Share-based compensation tax rate benefit

~ 1.3%

~ 1.0%

Effective tax rate

~ 21.1%

~ 21.4%

Share-based compensation EPS impact

~ $0.24

~ $0.19

Reduction in average shares outstanding

1.5%

-

2%

1%

-

2%

Operating Cash Flow (% of Net Income)

110%

-

120%

105%

-

115%

Free Cash Flow (% of Net Income)

90%

-

100%

85%

-

95%

Capital Expenditures

~ $180

~ $180

The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2026.

Estimated Foreign Currency Exchange Rate Impacts

2026

Revenue growth rate impact

~0.6%

CAG Diagnostics recurring revenue growth rate impact

~0.6%

Operating margin growth impact

~ 30 bps

EPS impact

~ $0.22

EPS growth impact

~ 2%

Go-Forward Foreign Currency Exchange Rate Assumptions

2026

In U.S. dollars

euro

$1.14

British pound

$1.32

Canadian dollar

$0.70

Australian dollar

$0.69

Relative to the U.S. dollar

Japanese yen

¥162

Chinese renminbi

¥6.80

Brazilian real

R$5.20

Conference Call and Webcast Information

IDEXX Laboratories, Inc. will host a conference call today at 8:30 a.m. (ET) to discuss its second quarter 2026 results and management’s outlook. Individuals can access a live webcast of the conference call through a link on the IDEXX website, www.idexx.com/investors. An archived edition of the webcast will be available after 1:00 p.m. (ET) via the same link and will remain available for one year. The live call also will be accessible by telephone. To listen to the live conference call, please dial 1-800-330-6730 or 1-213-279-1575 and reference passcode 922025.

2026 Investor Day

IDEXX Laboratories, Inc. will host its 2026 Investor Day on Thursday, August 13, 2026 from 8:00 am to approximately 12:00 pm (ET). A live webcast and accompanying slide presentations will be available at www.idexx.com/investors. An archived webcast replay of the event will be available approximately one hour following the event at www.idexx.com/investors. For additional information, contact [email protected].

About IDEXX Laboratories, Inc.

IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help measure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500™ Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.

Note Regarding Forward-Looking Statements

This earnings release and the statements to be made in the accompanying earnings conference call contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the Company’s business prospects and estimates of the Company’s financial results for future periods. Forward-looking statements are included above under "2026 Growth and Financial Performance Outlook" and elsewhere and can be identified by the use of words such as "expects", "may", "anticipates", "intends", "would", "will", "plans", "believes", "estimates", "projected", "should", and similar words and expressions. Our forward-looking statements include statements relating to our expectations regarding financial performance; revenue growth and EPS outlooks; operating and free cash flow forecast; projected impact of foreign currency exchange rates and interest rates; projected operating margins and expenses and capital expenditures, including anticipated investments in global commercial capabilities and innovation; projected tax, tax rate and EPS benefits from share-based compensation arrangements; projected effective tax rates, reduction of average shares outstanding and net interest expense; trends and other factors impacting the pet healthcare industry, including pet population demographics and U.S. clinical visits, and their anticipated effects on the Company; IDEXX inVue Dx analyzer placements; IDEXX Cancer Dx testing panel expansion; rollout of Fine Needle Aspiration to the IDEXX inVue Dx analyzer; and future commercial expansions. These statements are intended to provide management's expectations or forecasts of future events as of the date of this earnings release; are based on management's estimates, projections, beliefs, and assumptions as of the date of this earnings release; and are not guarantees of future performance. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among other things, the adverse impact, and the duration, of macroeconomic events, conditions, and uncertainties, such as geopolitical instability (including wars, terrorist attacks, and armed conflicts), general economic uncertainty, changes in U.S. and other countries’ tariff and trade policies, severe weather and other natural conditions, and supply chain challenges on our business, results of operations, liquidity, financial condition, and stock price, as well as the matters described under the headings "Business," "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in the corresponding sections of the Company's Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, as well as those described from time to time in the Company’s other filings with the U.S. Securities and Exchange Commission available at www.sec.gov. The Company specifically disclaims any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Statement Regarding Non-GAAP Financial Measures

The following defines terms and conventions and provides reconciliations regarding certain measures used in this earnings release and/or the accompanying earnings conference call that are not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"), otherwise referred to as non-GAAP financial measures. To supplement the Company’s consolidated results presented in accordance with GAAP, the Company has disclosed non-GAAP financial measures that exclude or adjust certain items. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors’ evaluation of the Company’s business performance and liquidity and are useful for period-over-period comparisons of the performance of the Company’s business and its liquidity and to the performance and liquidity of our peers. While management believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Constant currency - Constant currency references are non-GAAP financial measures which exclude the impact of changes in foreign currency exchange rates and are consistent with how management evaluates our performance and comparisons with prior and future periods. We estimate the net impacts of currency on our revenue, gross profit, operating profit, and EPS results by restating results to the average exchange rates or exchange rate assumptions for the comparative period, which includes adjusting for the estimated impacts of foreign currency hedging transactions and certain impacts on our effective tax rates. These estimated currency changes impacted second quarter 2026 results as follows: increased gross profit growth by 1.1%, increased gross margin expansion 20 basis points, increased operating expense growth by 0.5%, increased operating profit growth by 1.6%, increased operating profit margin growth by 30 basis points, and increased EPS growth by 1.7%. Constant currency revenue growth represents the percentage change in revenue during the applicable period, as compared to the prior year period, excluding the impact of changes in foreign currency exchange rates. See the supplementary analysis of results below for revenue percentage change from currency for the three and six months ended June 30, 2026 and refer to the 2026 Growth and Financial Performance Outlook section of this earnings release for estimated foreign currency exchange rate impacts on 2026 projections and estimates.

Growth and organic revenue growth - All references to growth and organic growth refer to growth compared to the equivalent prior year period unless specifically noted. Organic revenue growth is a non-GAAP financial measure that represents the percentage change in revenue, as compared to the same period for the prior year, net of the effect of changes in foreign currency exchange rates, certain business acquisitions, and divestitures. Management believes that reporting organic revenue growth provides useful information to investors by facilitating easier comparisons of our revenue performance with prior and future periods and to the performance of our peers. Organic revenue growth should be considered in addition to, and not as a replacement of or a superior measure to, revenue growth reported in accordance with GAAP. See the supplementary analysis of results below for a reconciliation of reported revenue growth to organic revenue growth for the three and six months ended June 30, 2026. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Please refer to the 2026 Growth and Financial Performance Outlook section of this earnings release for estimated full year 2026 organic revenue growth for the Company and CAG Diagnostics recurring revenue growth. The percentage change in revenue resulting from acquisitions represents revenues during the current year period, limited to the initial 12 months from the date of the acquisition, that are directly attributable to business acquisitions. Revenue from acquisitions is expected to have an immaterial impact on projected full year 2026 revenue growth and no impact on CAG Diagnostics recurring revenue growth.

We exclude from organic revenue growth the effect of changes in foreign currency exchange rates because changes in foreign currency exchange rates are not under management’s control, are subject to volatility, and can obscure underlying business trends. We calculate the impact on revenue resulting from changes in foreign currency exchange rates by applying the difference between the weighted average exchange rates during the current year period and the comparable prior year period to foreign currency denominated revenues for the prior year period.

We also exclude from organic revenue growth the effect of certain business acquisitions and divestitures because the nature, size, and number of these transactions can vary dramatically from period to period, and because they either require or generate cash as an inherent consequence of the transaction, and therefore can also obscure underlying business and operating trends. We consider acquisitions to be a business when all three elements of inputs, processes, and outputs are present, consistent with ASU 2017-01, “Business Combinations: (Topic 805) Clarifying the Definition of a Business.” We do not consider acquired assets to be a business if substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. A typical acquisition that we do not consider a business is a customer relationship asset acquisition, which does not have all elements necessary to operate a business, such as employees or infrastructure. Revenue from these customers acquired is included in organic revenue growth because we believe the efforts required to convert and retain these acquired customers are similar in nature to our efforts to obtain and retain our existing customer base.

Comparable growth metrics - Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) are non-GAAP financial measures and exclude the impact of changes in foreign currency exchange rates and non-recurring or unusual items (if any). Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Management believes that reporting comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) provides useful information to investors because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding key metrics used by management. Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) should be considered in addition to, and not as replacements of or superior measures to, gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain reported in accordance with GAAP.

The reconciliation of these non-GAAP financial measures is as follows:

Three Months Ended

Year-over-Year

Six Months Ended

Year-over-Year

June 30,

June 30,

Change

June 30,

June 30,

Change

Dollar amounts in thousands

2026

2025

2026

2025

Gross profit and growth (as reported)

$

779,087

$

694,732

12

%

$

1,501,826

$

1,318,111

14

%

Gross margin and margin gain

64.0

%

62.6

%

140 bps

63.7

%

62.5

%

120 bps

Less: comparability adjustments

Change from currency

7,511

—

27,982

—

Comparable gross profit and growth

$

771,576

$

694,732

11

%

$

1,473,844

$

1,318,111

12

%

Comparable gross margin and margin gain

63.9

%

62.6

%

120 bps

63.6

%

62.5

%

110 bps

Operating expenses and growth (as reported)

$

353,521

$

321,686

10

%

$

713,674

$

628,531

14

%

Less: comparability adjustments

Change from currency

1,458

—

7,728

—

Loss on equity investment

—

—

5,000

—

Now-concluded litigation matter —

—

—

(8,600)

Comparable operating expense and growth

$

352,063

$

321,686

9

%

$

700,946

$

637,131

10

%

Operating profit and growth (as reported)

$

425,566

$

373,046

14

%

$

788,152

$

689,580

14

%

Operating margin and margin gain

35.0

%

33.6

%

140 bps

33.4

%

32.7

%

70 bps

Less: comparability adjustments

Change from currency

6,053

—

20,254

—

Loss on equity investment

—

—

(5,000

)

—

Now-concluded litigation matter

—

—

—

8,600

Comparable operating profit and growth

$

419,513

$

373,046

12

%

$

772,898

$

680,980

13

%

Comparable operating margin and margin gain

34.7

%

33.6

%

110 bps

33.3

%

32.3

%

100 bps

Amounts presented may not recalculate due to rounding.

Projected 2026 comparable operating margin expansion outlined in the 2026 Growth and Financial Performance Outlook section of this earnings release reflects the following adjustments: (i) full year 2026 reported operating margin adjusted for a $5 million unfavorable impact of loss on an equity investment; (ii) adjustment to projected 2026 operating margin for a positive impact from year-over-year foreign currency exchange rate changes at noted exchange rates; and (iii) adjustment to 2025 operating margin for the positive impact of the approximately $9 million discrete litigation expense accrual adjustment in the second quarter of 2025.

These impacts described above reconcile reported gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain (including projected 2026) to comparable gross profit growth, comparable gross margin gain, comparable operating expense growth, comparable operating profit growth and comparable operating margin gain for the Company.

Comparable EPS growth - Comparable EPS growth is a non-GAAP financial measure that represents the percentage change in earnings per share (diluted) ("EPS") for a measurement period, as compared to the prior base period, net of the impact of changes in foreign currency exchange rates from the prior base period and excluding the tax benefits of share-based compensation activity under ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," and non-recurring or unusual items (if any). Management believes comparable EPS growth is a more useful way to measure the Company’s business performance than EPS growth because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding a key metric used by management. Comparable EPS growth should be considered in addition to, and not as a replacement of or a superior measure to, EPS growth reported in accordance with GAAP. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts.

The reconciliation of this non-GAAP financial measure is as follows:

Three Months Ended

Year-over-Year

Six Months Ended

Year-over-Year

June 30,

June 30,

Growth

June 30,

June 30,

Growth

2026

2025

2026

2025

Earnings per share (diluted) and growth

$

4.27

$

3.63

18

%

$

7.74

$

6.59

17

%

Less: comparability adjustments

Share-based compensation activity

0.14

0.10

0.23

0.11

Loss on equity investment

—

—

(0.05

)

—

Now-concluded litigation matter

—

—

—

0.08

Change from currency

0.06

—

0.20

—

Comparable EPS and growth

$

4.07

$

3.53

15

%

$

7.36

$

6.40

15

%

Amounts presented may not recalculate due to rounding.

Projected 2026 comparable EPS growth outlined in the 2026 Growth and Financial Performance Outlook section of this earnings release reflects the following adjustments: (i) adjustment to projected full year 2026 reported EPS for estimated positive year-over-year foreign currency exchange rate change impact of $0.22 at noted exchange rates; (ii) adjustment to projected full year 2026 reported EPS for estimated positive impact of share-based compensation activity of $0.24; (iii) adjustment to projected full year 2026 EPS of $0.05 for unfavorable impact of a loss on an equity investment; (iv) adjustment to full year 2025 reported EPS for a positive $0.08 impact from the discrete litigation expense accrual adjustment in the second quarter of 2025; and (v) adjustment to full year 2025 reported EPS for positive impact of share-based compensation activity of $0.35.

These impacts and those described in the constant currency note above reconcile reported EPS growth (including projected 2026 reported EPS growth) to comparable EPS growth for the Company.

Segment and Other Income from Operations - We report segment income from operations in our Segment Information table below. Segment income from operations is a non-GAAP financial measure that adjusts for the impact of foreign currency transaction gains and losses and should be considered in addition to, and not as a replacement for, or superior measure to, income from operations. We exclude foreign currency transaction gains and losses for each reportable segment (CAG, Water, and LPD) from segment income from operations and report the full amount of foreign currency transaction gains and losses in Other. We believe that reporting segment income from operations provides supplemental analysis to help investors further evaluate each reportable segment’s business performance by excluding foreign currency transaction gains and losses, which are centrally managed by our corporate treasury function and which we do not consider relevant for assessing the results of each reportable segment’s operations. In addition, we believe that reporting segment income from operations provides information to investors regarding key metrics that are used by management, including our chief operating decision-maker, in evaluating the performance of each reportable segment.

The reconciliation of this non-GAAP financial measure is as follows for the three and six months ended June 30, 2026 and 2025:

Amounts in thousands

Three Months Ended June 30,

2026

2025

Income from Operations

Impact from Foreign Currency

Segment and Other Income from Operations

Income from Operations

Impact from Foreign Currency

Segment and Other Income from Operations

CAG

$

393,069

$

214

$

393,283

$

347,983

$

494

$

348,477

Water

30,258

16

30,274

24,606

36

24,642

LPD

2,395

16

2,411

(543

)

38

(505

)

Other

(156

)

(246

)

(402

)

1,000

(568

)

432

Total

$

425,566

$

—

$

425,566

$

373,046

$

—

$

373,046

Amounts in thousands

Six Months Ended June 30,

2026

2025

Income from Operations

Impact from Foreign Currency

Segment and Other Income from Operations

Income from Operations

Impact from Foreign Currency

Segment and Other Income from Operations

CAG

$

730,234

$

604

$

730,838

$

642,554

$

1,078

$

643,632

Water

53,901

42

53,943

45,380

79

45,459

LPD

3,657

44

3,701

(462

)

82

(380

)

Other

360

(690

)

(330

)

2,108

(1,239

)

869

Total

$

788,152

$

—

$

788,152

$

689,580

$

—

$

689,580

Free cash flow - Free cash flow is a non-GAAP financial measure and means, with respect to a measurement period, the cash generated from operations during that period, reduced by the Company’s investments in property and equipment. Management believes free cash flow is a useful measure because it indicates the cash the operations of the business are generating after appropriate reinvestment for recurring investments in property and equipment that are required to operate the business. Free cash flow should be considered in addition to, and not as a replacement of or a superior measure to, net cash provided by operating activities. See the supplementary analysis of results below for our calculation of free cash flow for the three and six months ended June 30, 2026 and 2025. To estimate projected 2026 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of approximately $180 million. Free cash flow conversion, or the net income to free cash flow ratio, is a non-GAAP financial measure that is defined as free cash flow, with respect to a measurement period, divided by net income for the same period. To calculate trailing twelve-month net income to free cash flow ratio for the twelve months ended June 30, 2026, we have deducted purchases of property and equipment of approximately $117 million from net cash provided from operating activities of approximately $1,372 million, divided by net income of approximately $1,140 million.

Debt to Adjusted EBITDA (Leverage Ratios) - Adjusted EBITDA, gross debt, and net debt are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure of earnings before interest, taxes, depreciation, amortization, non-recurring transaction expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges. Management believes that reporting Adjusted EBITDA, gross debt, and net debt in the Debt to Adjusted EBITDA ratios provides supplemental analysis to help investors further evaluate the Company's business performance and available borrowing capacity under the Company's credit facility. Adjusted EBITDA, gross debt, and net debt should be considered in addition to, and not as replacements of or superior measures to, net income or total debt reported in accordance with GAAP. For further information on how Adjusted EBITDA and the Debt to Adjusted EBITDA Ratios are calculated, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Notes and Definitions

Discrete litigation expense accrual - During the first quarter of 2025, the Company reduced its previously established $89.0 million accrual related to a concluded litigation matter by approximately $9 million, which represented our best estimate at that time of the amount of the loss.

Concluded litigation matter - The Company was a defendant in a litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under an expired patent license agreement, and the trial court ruled in favor of the plaintiff in 2020. Following appeals and in light of the appellate court's April 3, 2025 decision, on April 17, 2025, the Company paid the judgment of approximately $80 million, and the plaintiff executed a satisfaction and release of judgment, which was filed with the trial court on the same date, concluding this matter. For further information, see the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

IDEXX Laboratories, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations

Amounts in thousands except per share data (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2026

2025

2026

2025

Revenue:

Revenue

$

1,216,585

$

1,109,457

$

2,357,405

$

2,107,884

Expenses and Income:

Cost of revenue

437,498

414,725

855,579

789,773

Gross profit

779,087

694,732

1,501,826

1,318,111

Sales and marketing

171,277

161,107

346,527

317,330

General and administrative

116,815

98,681

235,930

190,242

Research and development

65,429

61,898

131,217

120,959

Total operating expense

353,521

321,686

713,674

628,531

Income from operations

425,566

373,046

788,152

689,580

Non-operating income (expense), net

(8,342

)

(10,694

)

(15,486

)

(17,144

)

Income before provision for income taxes

417,224

362,352

772,666

672,436

Provision for income taxes

78,812

68,363

155,808

135,770

Net Income:

Net income attributable to stockholders

$

338,412

$

293,989

$

616,858

$

536,666

Earnings per share: Basic

$

4.29

$

3.66

$

7.78

$

6.64

Earnings per share: Diluted

$

4.27

$

3.63

$

7.74

$

6.59

Shares outstanding: Basic

78,954

80,413

79,299

80,864

Shares outstanding: Diluted

79,312

80,994

79,742

81,465

IDEXX Laboratories, Inc. and Subsidiaries

Selected Operating Information (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2026

2025

2026

2025

Operating Ratios

Gross profit

64.0

%

62.6

%

63.7

%

62.5

%

(as a percentage of revenue):

Sales, marketing, general and administrative expense

23.7

%

23.4

%

24.7

%

24.1

%

Research and development expense

5.4

%

5.6

%

5.6

%

5.7

%

Income from operations1

35.0

%

33.6

%

33.4

%

32.7

%

1Amounts presented may not recalculate due to rounding.

IDEXX Laboratories, Inc. and Subsidiaries

Segment and Other Information

Amounts in thousands (Unaudited)

Three Months Ended

June 30, 2026

Percent of Revenue

June 30, 2025

Percent of Revenue

Revenue:

CAG

$

1,118,236

$

1,022,443

Water

58,564

51,001

LPD

35,181

31,762

Other

4,604

4,251

Total

$

1,216,585

$

1,109,457

Gross Profit:

CAG

$

715,787

64.0

%

$

642,102

62.8

%

Water

43,598

74.4

%

35,511

69.6

%

LPD

18,651

53.0

%

14,929

47.0

%

Other

1,051

22.8

%

2,190

51.5

%

Total

$

779,087

64.0

%

$

694,732

62.6

%

Income from Operations:

CAG

$

393,283

35.2

%

$

348,477

34.1

%

Water

30,274

51.7

%

24,642

48.3

%

LPD

2,411

6.9

%

(505

)

(1.6

%)

Other

(402

)

(8.7

%)

432

10.2

%

Total

$

425,566

35.0

%

$

373,046

33.6

%

Six Months Ended

June 30, 2026

Percent of Revenue

June 30, 2025

Percent of Revenue

Revenue:

CAG

$

2,172,288

$

1,942,279

Water

108,829

96,322

LPD

67,664

60,358

Other

8,624

8,925

Total

$

2,357,405

$

2,107,884

Gross Profit:

CAG

$

1,383,296

63.7

%

$

1,216,925

62.7

%

Water

80,135

73.6

%

67,584

70.2

%

LPD

35,561

52.6

%

29,294

48.5

%

Other

2,834

32.9

%

4,308

48.3

%

Total

$

1,501,826

63.7

%

$

1,318,111

62.5

%

Income from Operations:

CAG

$

730,838

33.6

%

$

643,632

33.1

%

Water

53,943

49.6

%

45,459

47.2

%

LPD

3,701

5.5

%

(380

)

(0.6

%)

Other

(330

)

(3.8

%)

869

9.7

%

Total

$

788,152

33.4

%

$

689,580

32.7

%

IDEXX Laboratories, Inc. and Subsidiaries

Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets

Amounts in thousands (Unaudited)

Three Months Ended

June 30, 2026

June 30, 2025

Dollar Change

Reported Revenue Growth1

Percentage Change from
Currency

Percentage Change from Acquisitions

Organic Revenue Growth1

Net Revenue

CAG

$

1,118,236

$

1,022,443

$

95,793

9.4

%

0.6

%

—

8.7

%

United States

734,892

684,497

50,395

7.4

%

—

—

7.4

%

International

383,344

337,946

45,398

13.4

%

1.9

%

—

11.5

%

Water

$

58,564

$

51,001

$

7,563

14.8

%

1.9

%

—

13.0

%

United States

29,621

26,090

3,531

13.5

%

—

—

13.5

%

International

28,943

24,911

4,032

16.2

%

3.8

%

—

12.4

%

LPD

$

35,181

$

31,762

$

3,419

10.8

%

1.8

%

—

9.0

%

United States

6,608

5,767

841

14.6

%

—

—

14.6

%

International

28,573

25,995

2,578

9.9

%

2.1

%

—

7.8

%

Other

$

4,604

$

4,251

$

353

8.3

%

—

—

8.3

%

Total Company

$

1,216,585

$

1,109,457

$

107,128

9.7

%

0.7

%

—

9.0

%

United States

772,968

717,869

55,099

7.7

%

—

—

7.7

%

International

443,617

391,588

52,029

13.3

%

2.0

%

—

11.2

%

Three Months Ended

June 30, 2026

June 30, 2025

Dollar Change

Reported Revenue Growth1

Percentage Change from

Currency

Percentage Change from Acquisitions

Organic Revenue Growth1

Net CAG Revenue

CAG Diagnostics recurring revenue:

$

974,713

$

877,995

$

96,718

11.0

%

0.7

%

—

10.3

%

IDEXX VetLab consumables

430,337

375,112

55,225

14.7

%

1.1

%

—

13.6

%

Rapid assay products

101,575

100,240

1,335

1.3

%

0.3

%

—

1.1

%

Reference laboratory diagnostic and consulting services

406,729

367,694

39,035

10.6

%

0.3

%

—

10.3

%

CAG Diagnostics services and accessories

36,072

34,949

1,123

3.2

%

1.1

%

—

2.1

%

CAG Diagnostics capital – instruments

$

47,174

$

58,600

($

11,426

)

(19.5

%)

0.1

%

—

(19.6

%)

Veterinary software, services and diagnostic imaging systems:

$

96,349

$

85,848

$

10,501

12.2

%

0.4

%

—

11.8

%

Recurring revenue

76,343

68,954

7,389

10.7

%

0.5

%

—

10.2

%

Systems and hardware

20,006

16,894

3,112

18.4

%

0.2

%

—

18.2

%

Net CAG revenue

$

1,118,236

$

1,022,443

$

95,793

9.4

%

0.6

%

—

8.7

%

Three Months Ended

June 30, 2026

June 30, 2025

Dollar Change

Reported Revenue Growth1

Percentage Change from
Currency

Percentage Change from Acquisitions

Organic Revenue Growth1

CAG Diagnostics recurring revenue:

$

974,713

$

877,995

$

96,718

11.0

%

0.7

%

—

10.3

%

United States

630,504

575,009

55,495

9.7

%

—

—

9.7

%

International

344,209

302,986

41,223

13.6

%

2.0

%

—

11.6

%

1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding.

IDEXX Laboratories, Inc. and Subsidiaries

Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets

Amounts in thousands (Unaudited)

Six Months Ended

June 30, 2026

June 30, 2025

Dollar Change

Reported Revenue Growth1

Percentage Change from
Currency

Percentage Change from Acquisitions

Organic Revenue Growth1

Net Revenue

CAG

$

2,172,288

$

1,942,279

$

230,009

11.8

%

1.7

%

—

10.1

%

United States

1,425,792

1,308,386

117,406

9.0

%

—

—

9.0

%

International

746,496

633,893

112,603

17.8

%

5.4

%

—

12.4

%

Water

$

108,829

$

96,322

$

12,507

13.0

%

2.8

%

—

10.2

%

United States

56,014

49,593

6,421

12.9

%

—

—

12.9

%

International

52,815

46,729

6,086

13.0

%

5.6

%

—

7.4

%

LPD

$

67,664

$

60,358

$

7,306

12.1

%

4.0

%

—

8.2

%

United States

12,992

11,555

1,437

12.4

%

—

—

12.4

%

International

54,672

48,803

5,869

12.0

%

4.8

%

—

7.2

%

Other

$

8,624

$

8,925

($

301

)

(3.4

%)

—

—

(3.4

%)

Total Company

$

2,357,405

$

2,107,884

$

249,521

11.8

%

1.8

%

—

10.0

%

United States

1,498,200

1,372,730

125,470

9.1

%

—

—

9.1

%

International

859,205

735,154

124,051

16.9

%

5.3

%

—

11.6

%

Six Months Ended

June 30, 2026

June 30, 2025

Dollar Change

Reported Revenue Growth1

Percentage Change from

Currency

Percentage Change from Acquisitions

Organic Revenue Growth1

Net CAG Revenue

CAG Diagnostics recurring revenue:

$

1,895,026

$

1,684,262

$

210,764

12.5

%

1.8

%

—

10.7

%

IDEXX VetLab consumables

842,919

719,891

123,028

17.1

%

2.6

%

—

14.5

%

Rapid assay products

186,513

184,274

2,239

1.2

%

0.7

%

—

0.5

%

Reference laboratory diagnostic and consulting services

792,908

712,100

80,808

11.3

%

1.4

%

—

10.0

%

CAG Diagnostics services and accessories

72,686

67,997

4,689

6.9

%

2.3

%

—

4.6

%

CAG Diagnostics capital – instruments

$

89,623

$

90,594

($

971

)

(1.1

%)

1.4

%

—

(2.5

%)

Veterinary software, services and diagnostic imaging systems:

$

187,639

$

167,423

$

20,216

12.1

%

0.7

%

—

11.4

%

Recurring revenue

149,879

134,747

15,132

11.2

%

0.8

%

—

10.5

%

Systems and hardware

37,760

32,676

5,084

15.6

%

0.3

%

—

15.2

%

Net CAG revenue

$

2,172,288

$

1,942,279

$

230,009

11.8

%

1.7

%

—

10.1

%

Six Months Ended

June 30, 2026

June 30, 2025

Dollar Change

Reported Revenue Growth1

Percentage Change from
Currency

Percentage Change from Acquisitions

Organic Revenue Growth1

CAG Diagnostics recurring revenue:

$

1,895,026

$

1,684,262

$

210,764

12.5

%

1.8

%

—

10.7

%

United States

1,224,987

1,111,986

113,002

10.2

%

—

—

10.2

%

International

670,039

572,276

97,762

17.1

%

5.4

%

—

11.6

%

1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding.

IDEXX Laboratories, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

Amounts in thousands (Unaudited)

June 30, 2026

December 31, 2025

Assets:

Current Assets:

Cash and cash equivalents

$

196,933

$

180,070

Accounts receivable, net

627,083

552,378

Inventories

391,579

377,756

Other current assets

293,894

303,623

Total current assets

1,509,489

1,413,827

Property and equipment, net

733,238

747,380

Other long-term assets, net

1,199,608

1,189,552

Total assets

$

3,442,335

$

3,350,759

Liabilities and Stockholders'

Equity:

Current Liabilities:

Accounts payable

$

129,097

$

110,408

Accrued liabilities

453,169

530,147

Line of credit

519,000

398,000

Current portion of long-term debt

149,999

74,995

Deferred revenue

36,400

35,264

Total current liabilities

1,287,665

1,148,814

Long-term debt, net of current portion

299,865

374,842

Other long-term liabilities, net

242,230

221,720

Total long-term liabilities

542,095

596,562

Total stockholders' equity

1,612,575

1,605,383

Total liabilities and stockholders' equity

$

3,442,335

$

3,350,759

IDEXX Laboratories, Inc. and Subsidiaries

Selected Balance Sheet Information (Unaudited)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Selected Balance Sheet Information:

Days sales outstanding1

46.2

46.2

46.8

46.5

44.7

Inventory turns2

1.4

1.4

1.6

1.5

1.5

1Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days.

2Inventory turns are calculated as the ratio of our inventory-related cost of revenue for the quarter multiplied by four, divided by the average inventory balances at the beginning and end of each quarter.

IDEXX Laboratories, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

Amounts in thousands (Unaudited)

Six Months Ended

June 30, 2026

June 30, 2025

Operating:

Cash Flows from Operating Activities:

Net income

$

616,858

$

536,666

Non-cash adjustments to net income

143,240

111,582

Changes in assets and liabilities

(146,688

)

(224,543

)

Net cash provided by operating activities

613,410

423,705

Investing:

Cash Flows from Investing Activities:

Purchases of property and equipment

(56,630

)

(64,128

)

Acquisitions

(4,491

)

—

Proceeds from net investment hedges

2,081

890

Net cash used by investing activities

(59,040

)

(63,238

)

Financing:

Cash Flows from Financing Activities:

Borrowings under credit facility, net

121,000

329,000

Payments of senior notes

—

(103,386

)

Repurchases of common stock

(697,840

)

(738,995

)

Proceeds from exercises of stock options and employee stock purchase plans

51,074

24,523

Shares withheld for statutory tax withholding payments on restricted stock

(10,853

)

(7,094

)

Net cash used by financing activities

(536,619

)

(495,952

)

Net effect of changes in exchange rates on cash

(888

)

11,813

Net increase (decrease) in cash and cash equivalents

16,863

(123,672

)

Cash and cash equivalents, beginning of period

180,070

288,266

Cash and cash equivalents, end of period

$

196,933

$

164,594

IDEXX Laboratories, Inc. and Subsidiaries

Free Cash Flow

Amounts in thousands (Unaudited)

Three Months Ended

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Free Cash Flow:

Net cash provided by operating activities

$

347,162

$

185,743

$

613,410

$

423,705

Investing cash flows attributable to purchases of property and equipment

(24,646

)

(34,102

)

(56,630

)

(64,128

)

Free cash flow1

$

322,516

$

151,641

$

556,780

$

359,577

1See Statement Regarding Non-GAAP Financial Measures, above.

IDEXX Laboratories, Inc. and Subsidiaries

Common Stock Repurchases

Amounts in thousands except per share data (Unaudited)

Three Months Ended

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Shares repurchased in the open market

582

713

1,170

1,644

Shares acquired through employee surrender for statutory tax withholding

—

2

17

16

Total shares repurchased

582

715

1,187

1,660

Cost of shares repurchased in the open market

$

332,046

$

327,530

$

692,879

$

736,745

Cost of shares for employee surrenders

298

970

10,853

7,094

Total cost of shares

$

332,344

$

328,500

$

703,732

$

743,839

Average cost per share – open market repurchases

$

570.72

$

458.96

$

592.41

$

448.02

Average cost per share – employee surrenders

$

563.62

$

513.46

$

627.34

$

452.84

Average cost per share – total

$

570.71

$

459.10

$

592.92

$

448.07

More News From IDEXX Laboratories, Inc.

Original source text

Diluted EPS: $4.14, +33.1%; Adjusted EPS: $4.37, +23.8%

Contract Value, FX Neutral: $5.3 billion, +0.3% Sequentially, +1.7% YoY

SECOND QUARTER 2026 HIGHLIGHTS

Revenues: $1.7 billion, -0.6% as reported; -1.6% FX neutral. Adjusted Revenues: $1.7 billion, +2.8% as reported; +1.8% FX neutral. Net income: $275 million, +14.4% as reported; Adjusted EBITDA excluding divested operation: $466 million, +6.4% as reported, +4.4% FX neutral. Operating cash flow: $398 million, +3.8%; free cash flow: $378 million, +8.9%. Repurchased 3.6 million common shares for $547 million. Board of Directors increased the share repurchase authorization by $500 million in July 2026. STAMFORD, Conn.--(BUSINESS WIRE)--Gartner, Inc. (NYSE: IT) today reported results for the second quarter of 2026 and updated its financial outlook for the full year 2026. Additional information regarding the Company’s results as well as the updated 2026 financial outlook is provided in an earnings supplement available on the Company’s Investor Relations website at https://investor.gartner.com.

Gene Hall, Gartner’s Chairman and Chief Executive Officer, commented, "Contract Value growth accelerated again. Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow were ahead of expectations. We repurchased $547 million of stock in the quarter, as our capital allocation continues to create value for our shareholders. In addition, we increased our full year Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow guidance even with the stronger dollar."

CONFERENCE CALL INFORMATION

The Company will host a webcast call at 8:00 a.m. Eastern time on Tuesday, August 4, 2026 to discuss the Company’s financial results. Listeners can access the webcast live at https://edge.media-server.com/mmc/p/siaqzruh. To participate actively in the live call via dial-in, please register at https://register-conf.media-server.com/register/BI60b3b327155d48c99835471ca69f3102. Once registered, participants will receive a dial-in number and a unique PIN to access the call. A replay of the webcast will be available on the Company’s website for approximately 30 days following the call.

CONSOLIDATED RESULTS HIGHLIGHTS

(Unaudited; $ in millions, except per share amounts)

Three Months Ended

June 30,

Inc/(Dec)

2026

2025

Inc/(Dec)

FX Neutral

GAAP Metrics:

Revenues

$

1,676

$

1,686

(0.6

)%

(1.6

)%

Net income

275

241

14.4

%

na

Diluted EPS

4.14

3.11

33.1

%

na

Operating cash flow

398

384

3.8

%

na

Non-GAAP Metrics:

Adjusted revenues

$

1,676

$

1,631

2.8

%

1.8

%

Adjusted EBITDA excluding divested operation

466

438

6.4

%

4.4

%

Adjusted EPS

4.37

3.53

23.8

%

na

Free cash flow

378

347

8.9

%

na

na=not available.

CONTRACT VALUE HIGHLIGHTS

Global Technology Sales Contract Value FX Neutral (GTS CV): $4.0 billion, ~flat Sequentially, +1.1% YoY Global Business Sales Contract Value FX Neutral (GBS CV): $1.3 billion, +1.2% Sequentially, +3.3% YoY SEGMENT RESULTS HIGHLIGHTS

Our segment results for the three months ended June 30, 2026 were as follows:

(Unaudited; $ in millions)

Insights

Conferences

Consulting

Revenues

$

1,290

$

244

$

142

Inc/(Dec)

2.1

%

15.5

%

(8.8

)%

Inc/(Dec) - FX neutral

1.0

%

14.2

%

(8.8

)%

Gross contribution

$

999

$

145

$

54

Inc/(Dec)

4.0

%

19.6

%

(12.6

)%

Contribution margin

77.5

%

59.5

%

37.9

%

Additional details regarding our segment results can be obtained from the earnings supplement, our quarterly report on Form 10–Q filed with the SEC on August 4, 2026 and our webcast.

Certain financial metrics contained in this Press Release are considered non-GAAP financial measures. Definitions of these non-GAAP financial measures are included in this Press Release under “Non-GAAP Financial Measures” and the related reconciliations are under “Supplemental Information — Non-GAAP Reconciliations.” In this Press Release, some totals may not add due to rounding. The percentage changes are based on the unrounded whole number and recalculation based on millions may yield a different result.

ABOUT GARTNER

Gartner, Inc. (NYSE: IT) delivers actionable, objective business and technology insights that drive smarter decisions and stronger performance on an organization’s mission-critical priorities.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release regarding the Company’s growth and prospects, projected financial results, long-term objectives, and all other statements in this release other than recitation of historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, estimates, uncertainties and other factors that may cause actual results to be materially different. Such factors include, but are not limited to, the following: our ability to maintain and expand our products and services; our ability to keep pace with technological and industry developments in artificial intelligence (“AI”) and comply with evolving AI regulations; our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures; our ability to grow or sustain revenue from individual customers; our ability to expand or retain our customer base; our ability to carry out our strategic initiatives and manage associated costs; the timing of conferences and meetings, in particular our Gartner Symposium/Xpo series; our ability to achieve and effectively manage growth, including our ability to integrate our acquisitions and consummate and integrate future acquisitions; our ability to attract and retain a professional staff of analysts and consultants as well as experienced sales personnel upon whom we are dependent, especially in light of labor competition; our ability to successfully compete with existing competitors and potential new competitors; our ability to enforce and protect our intellectual property rights; the impact of cybersecurity incidents or other disruptions to our information systems; our ability to pay our debt obligations; the impact of global economic and geopolitical conditions, including inflation (and related monetary policy by governments in response to inflation) and recession; uncertain effects, both direct and indirect, of changes and volatility in tariffs and trade policies; risks associated with the creditworthiness, budget cuts, priorities and shutdown of governments and agencies; additional risks associated with international operations, including foreign currency fluctuations; the impact on our business resulting from changes in international conditions, including those resulting from tensions in the Middle East, the war in Ukraine and current and future sanctions imposed by governments or other authorities; the impact of restructuring and other charges on our businesses and operations; our ability to meet sustainability commitments and comply with applicable regulatory requirements, as well as potential reactions by customers to these commitments; the impact of changes in tax policy (including global minimum tax legislation) and heightened scrutiny from various taxing authorities globally; changes to laws and regulations; and other risks and uncertainties described under “Risk Factors” in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which can be found on Gartner’s website at https://investor.gartner.com and the SEC’s website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and Gartner disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

NON-GAAP FINANCIAL MEASURES

Certain financial measures used in this Press Release are not defined by U.S. generally accepted accounting principles (“GAAP”) and as such are considered non-GAAP financial measures. We provide these measures to enhance the user’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future. Investors are cautioned that these non-GAAP financial measures may not be defined in the same manner by other companies and, as a result, may not be comparable to other similarly titled measures used by other companies. Also, these non-GAAP financial measures should not be construed as alternatives, or superior, to other measures determined in accordance with GAAP. The non-GAAP financial measures used in this Press Release are defined below.

Adjusted Revenues: Represents GAAP revenues less revenues from our Digital Markets divested operation. We believe Adjusted Revenues is an important measure of our recurring operations as it provides a more accurate period-over period comparison of trends in revenues.

Adjusted EBITDA and Adjusted EBITDA Margin: Represents GAAP net income (loss) adjusted for: (i) interest expense, net; (ii) tax provision (benefit); (iii) gain on event cancellation insurance claims, as applicable; (iv) other (income) expense, net; (v) stock-based compensation expense; (vi) depreciation, amortization, and accretion; (vii) goodwill impairment and other asset impairments, as applicable, (viii) workforce reduction expenses and certain other non-recurring items and (ix) gain/loss on divestitures, as applicable. Adjusted EBITDA Margin represents Adjusted EBITDA divided by GAAP Revenue. We believe Adjusted EBITDA and Adjusted EBITDA Margin are important measures of our recurring operations as they exclude items not representative of our core operating results.

Adjusted EBITDA Excluding Divested Operation and Adjusted EBITDA Margin Excluding Divested Operation: Represents Adjusted EBITDA as defined above less EBITDA from our Digital Markets divested operation. Adjusted EBITDA Margin Excluding Divested Operation represents Adjusted EBITDA Excluding Divested Operation divided by Adjusted Revenue. We believe Adjusted EBITDA Excluding Divested Operation and Adjusted EBITDA Margin Excluding Divested Operation are important measures of our recurring operations as it provides a more accurate and consistent period-over period comparison of our results.

Adjusted Net Income and Adjusted EPS: Represents GAAP net income (loss) and diluted net income (loss) per share adjusted for the impact of certain items directly related to acquisitions and other non-recurring items. These adjustments include (on a per share basis, in the case of Adjusted EPS): (i) the amortization of acquired intangibles*; (ii) workforce reduction expenses and other non-recurring items; (iii) gain on event cancellation insurance claims, as applicable; (iv) the non-cash (gain) loss on de-designated interest rate swaps, as applicable; (v) goodwill impairment and other asset impairments, as applicable, (vi) gain/loss on divestitures, as applicable. and (vii) the related tax impact. We believe Adjusted Net Income and Adjusted EPS are important measures of our recurring operations as they exclude items that may not be indicative of our core operating results.

* The Company excludes amortization of acquired intangibles because it is generally a fixed non-cash expense that can be significantly impacted by the timing and/or size of acquisitions and management does not use it to evaluate core operating results. Although the Company excludes the amortization of acquired intangibles from Adjusted Net Income and Adjusted EPS, management believes that it is important for investors to understand that such intangible assets were recorded as part of acquisition accounting and contribute to revenue generation.

Free Cash Flow: Represents cash provided by operating activities determined in accordance with GAAP less payments for capital expenditures. We believe Free Cash Flow is an important measure of the recurring cash generated by the Company’s core operations that may be available to be used to repay debt obligations, repurchase our stock, invest in future growth through new business development activities, or make acquisitions.

Foreign Currency Neutral (FX Neutral): We provide foreign currency neutral dollar amounts and percentages for our contract values, revenues, certain expenses, and other metrics. These foreign currency neutral dollar amounts and percentages eliminate the effects of exchange rate fluctuations and thus provide a more accurate and meaningful trend in the underlying data being measured. We calculate foreign currency neutral dollar amounts by converting the underlying amounts in local currency for different periods into U.S. dollars by applying the same foreign exchange rates to all periods presented.

SUPPLEMENTAL INFORMATION - NON-GAAP RECONCILIATIONS

The tables below provide reconciliations of certain Non-GAAP financial measures used in this Press Release with the most directly comparable GAAP measure. See “Non-GAAP Financial Measures” above for definitions of these measures.

Reconciliation - GAAP Revenues to Adjusted Revenues

(Unaudited; $ in millions)

Three Months Ended June 30,

2026

2025

Total revenues

$

1,676

$

1,686

Less: Divested operation revenues

—

(56

)

Adjusted revenues

$

1,676

$

1,631

Reconciliation - GAAP Net Income to Adjusted EBITDA Excluding Divested Operation

(Unaudited; $ in millions)

Three Months Ended June 30,

2026

2025

GAAP net income

$

275

$

241

Interest expense, net

22

12

Other expense (income), net

2

(2

)

Tax provision

79

77

Operating income

379

327

Adjustments:

Stock-based compensation expense (a)

41

43

Depreciation, amortization and accretion (b)

45

51

Loss on impairment of lease related assets (c)

—

1

Workforce reduction expenses and other non-recurring items (d)

—

22

Gain from sale of divested operation (e)

1

—

Adjusted EBITDA

$

466

$

443

Less: Divested operation adjusted EBITDA (f)

—

(6

)

Adjusted EBITDA excluding divested operation

$

466

$

438

(a)

Consists of costs for stock-based compensation awards.

(b)

Includes depreciation expense, amortization of intangibles and accretion on asset retirement obligations.

(c)

Includes impairment loss for lease related assets.

(d)

Consists of workforce reduction expenses, direct and incremental expenses related to acquisitions and divestitures, facility-related exit costs and other non-recurring items, if applicable.

(e)

Consists of an adjustment to the gain from the February 2026 sale of our divested operation.

(f)

Divested operation adjusted EBITDA is calculated as divested operation contribution minus certain direct Selling, General, and Administrative expenses. It excludes allocations for corporate support services and other indirect costs that benefited the business.

Reconciliation - GAAP Net Income and GAAP Net Income per Diluted Share to Adjusted Net Income and Adjusted EPS

(Unaudited; $ in millions, except per share amounts)

Three Months Ended June 30,

2026

2025

Amount

Per Share

Amount

Per Share

GAAP net income and GAAP net income per diluted share

$

275

$

4.14

$

241

$

3.11

Acquisition and other adjustments:

Amortization of acquired intangibles (a)

20

0.30

20

0.26

Workforce reduction expenses and other non-recurring items (b), (c)

1

0.02

23

0.29

Gain from sale of divested operation (d)

1

0.01

—

—

Loss on impairment of lease related assets (e)

—

—

1

0.01

Tax impact of adjustments (f)

(6

)

(0.10

)

(11

)

(0.14

)

Adjusted net income and Adjusted EPS (g)

$

291

$

4.37

$

273

$

3.53

(a)

Consists of non-cash amortization from acquired intangibles.

(b)

Consists of workforce reduction expenses, direct and incremental expenses related to acquisitions and divestitures, facility-related exit costs and other non-recurring items, if applicable.

(c)

Includes the amortization of deferred financing fees, which are recorded in Interest expense, net in the Company’s accompanying Condensed Consolidated Statements of Operations.

(d)

Consists of an adjustment to the gain from the February 2026 sale of our divested operation.

(e)

Includes impairment loss for lease related assets.

(f)

The blended effective tax rates on the adjustments were approximately 29.1% and 25.5% for the three months ended June 30, 2026 and 2025, respectively.

(g)

Adjusted EPS was calculated based on 66.6 million and 77.4 million diluted shares for the three months ended June 30, 2026 and 2025, respectively.

Reconciliation - GAAP Cash Provided by Operating Activities to Free Cash Flow

(Unaudited; $ in millions)

Three Months Ended June 30,

2026

2025

GAAP cash provided by operating activities

$

398

$

384

Cash paid for capital expenditures

(20

)

(36

)

Free Cash Flow

$

378

$

347

GARTNER, INC.

Condensed Consolidated Statements of Operations

(Unaudited; in millions, except per share data)

Three Months Ended

June 30,

2026

2025

Revenues:

Insights

$

1,289.8

$

1,263.6

Conferences

244.2

211.4

Consulting

141.9

155.6

Other

—

55.9

Total revenues

1,675.9

1,686.5

Costs and expenses:

Cost of services and product development

487.0

531.7

Selling, general and administrative

764.6

777.0

Depreciation

25.1

30.5

Amortization of intangibles

20.0

20.2

Gain from sale of divested operation

0.7

—

Total costs and expenses

1,297.4

1,359.4

Operating income

378.5

327.1

Interest expense, net

(22.3

)

(11.8

)

Other (expense) income, net

(1.6

)

2.5

Income before income taxes

354.6

317.8

Provision for income taxes

79.1

77.0

Net income

$

275.5

$

240.8

Net income per share:

Basic

$

4.14

$

3.12

Diluted

$

4.14

$

3.11

Weighted average shares outstanding:

Basic

66.5

77.2

Diluted

66.6

77.4

Source: Gartner, Inc.
Gartner-IR

More News From Gartner, Inc.

Original source text

BISMARCK, N.D.--(BUSINESS WIRE)--Knife River Corporation (NYSE: KNF), an aggregates-based, vertically integrated construction materials and contracting services company, today announced financial results for the second quarter ended June 30, 2026.

PERFORMANCE SUMMARY

Three Months Ended June 30,

(In millions, except per share)

2026

2025

% Change

Revenue

$

938.6

$

833.8

13

%

Net income

$

43.9

$

50.6

(13

)%

Net income margin

4.7

%

6.1

%

Adjusted EBITDA

$

139.7

$

140.8

(1

)%

Adjusted EBITDA margin

14.9

%

16.9

%

Net income per share

$

0.77

$

0.89

(13

)%

Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures."

"During the quarter, we delivered 13% year-over-year revenue growth, including 20% revenue growth in contracting services," said Knife River President and CEO Brian Gray. "That pull-through demand, combined with contributions from acquisitions, helped us generate double-digit volume and gross profit growth across our material product lines. Aggregate pricing also improved by 8% on a product mix-adjusted basis. The fundamentals of our business are strong. During the quarter, headwinds related to energy costs, delayed impact projects, and the type and timing of contracting services impacted Adjusted EBITDA and margins. Last year, we also benefited in the second quarter from $10.3 million in gains on asset sales, compared to just $650,000 this quarter. Despite these factors, we delivered strong operational results year-over-year.

"With the majority of the construction season still ahead of us, we have opportunities to execute on our $1.2 billion contracting services backlog, driving volume and gross profit improvement in all of our product lines," Gray said. "Additionally, we continue to implement our self-help initiatives to improve margins — including price optimization and operational efficiencies.

"The acquisitions we have completed over the last two years also continue to perform as expected, and we have several targets in our pipeline that align with our growth strategy," Gray said. "In addition, we have multiple organic growth projects underway across our footprint, including aggregates reserve expansions designed to strengthen our position, support future earnings growth and create long-term shareholder value."

Knife River expects its full-year 2026 financial results to be in the ranges noted in the following table.

2026 Financial Guidance

Low

High

(In millions)

Revenue

$

3,400.0

$

3,600.0

Adjusted EBITDA

$

520.0

$

560.0

The company further expects:

Aggregates volumes to increase high-single digits and pricing to increase mid-single digits. Ready-mix volumes to increase mid-teens. Asphalt volumes to increase high-single digits. Depreciation, depletion and amortization to increase mid-teens. The guidance ranges are based on normal weather, economic and operating conditions, and do not include the expected impact of future acquisitions.

REPORTING SEGMENT PERFORMANCE

West

Alaska, California, Hawaii, Oregon, Washington

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

% Change

2026

2025

% Change

(In millions)

Revenue

$

290.4

$

317.4

(9

)%

$

502.2

$

525.7

(4

)%

EBITDA

$

49.2

$

60.7

(19

)%

$

71.4

$

85.7

(17

)%

EBITDA margin

17.0

%

19.1

%

14.2

%

16.3

%

Second quarter revenue decreased 9% year-over-year, primarily due to less available public-agency work in Oregon, as well as delays in Hawaii and Alaska related to project phasing and weather. EBITDA decreased 19% compared to the prior year, reflecting decreased activity and lower-margin contracting services work, partially offset by higher aggregate and ready-mix pricing across the region.

Mountain

Idaho, Montana, Utah, Wyoming

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

% Change

2026

2025

% Change

(In millions)

Revenue

$

236.5

$

176.1

34

%

$

317.7

$

242.1

31

%

EBITDA

$

31.0

$

30.9

—

%

$

22.8

$

14.6

56

%

EBITDA margin

13.1

%

17.6

%

7.2

%

6.0

%

Second quarter revenue increased 34% from the prior year, largely driven by an increase in contracting services as well as acquisitions completed in the first quarter. EBITDA was flat, as the revenue growth was primarily offset by the timing of project performance gains and lower-margin contracting services work.

Central

Iowa, Minnesota, North Dakota, South Dakota, Texas

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

% Change

2026

2025

% Change

(In millions)

Revenue

$

325.6

$

255.2

28

%

$

426.8

$

323.1

32

%

EBITDA

$

53.6

$

44.4

21

%

$

26.8

$

20.1

33

%

EBITDA margin

16.5

%

17.4

%

6.3

%

6.2

%

Second quarter revenue increased 28% from the prior year, primarily driven by increased volumes across all product lines as well as contributions from the Texcrete acquisition. EBITDA improved 21%, with a majority of the increase being attributed to aggregate sales, as well as higher margins on contracting services work. However, EBITDA margin declined as the prior-year period benefited from $7.9 million of gains on asset sales that did not recur this quarter.

Energy Services

California, Iowa, Nebraska, Oregon, South Dakota, Texas, Washington, Wyoming

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

% Change

2026

2025

% Change

(In millions)

Revenue

$

103.0

$

97.4

6

%

$

123.5

$

111.3

11

%

EBITDA

$

19.8

$

17.1

16

%

$

15.2

$

9.3

64

%

EBITDA margin

19.2

%

17.5

%

12.3

%

8.3

%

Second quarter revenue increased 6% from the prior year, driven by increased volumes due to improved market opportunities in California. EBITDA improved 16%, largely because of the increased sales volumes in California, as well as lower railcar maintenance expenses compared to prior year.

The company is committed to disciplined capital allocation, including reinvesting to maintain fixed assets, strengthening operations and growing the business.

The company currently estimates total 2026 capital expenditures for maintenance and improvement to be between 5% and 7% of revenue. For the six months ending June 30, 2026, the company spent $90.1 million, largely on the replacement of construction equipment and plant improvements.

Additionally, for the six months ended June 30, 2026, the company spent $244.5 million on growth initiatives, which was comprised of $184.4 million on acquisitions and $60.1 million on aggregate expansions and greenfield projects. For the remainder of 2026, the company expects to spend $76.4 million on organic growth projects. Capital expenditures for future acquisitions and new growth opportunities would be incremental to the outlined capital program. It is anticipated that capital expenditures for the remainder of 2026 will be funded by various sources, including cash from operations and debt.

On May 15, 2026, the company issued an incremental $400 million Term Loan B facility which was used to finance recent acquisitions and growth initiatives previously discussed, repay borrowings under the Revolving Credit Facility, and for working capital and general corporate purposes.

As of June 30, 2026, Knife River had $40.7 million of unrestricted cash and cash equivalents, $1.6 billion of gross debt and $387.2 million of available capacity under its revolving credit facility, net of outstanding letters of credit. Net leverage, defined as the ratio of net debt to trailing-twelve-month Adjusted EBITDA, was 3.2x at June 30, 2026.

Knife River will host a conference call at 11 a.m. EDT today to discuss second quarter results and conduct a question-and-answer session. The event will be webcast at investors.kniferiver.com.

To participate in the live call:

Domestic: 1-585-542-9983 International: 1-833-461-5787 Conference ID: 137711168 After the conclusion of the call, an on-demand replay of the webcast will be made available.

Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit www.kniferiver.com.

Knife River Corporation

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions, except per share amounts)

Revenue:

Construction materials

$

532.1

$

493.6

$

794.4

$

707.0

Contracting services

406.5

340.2

554.3

480.2

Total revenue

938.6

833.8

1,348.7

1,187.2

Cost of revenue:

Construction materials

400.2

377.1

673.2

610.9

Contracting services

375.6

299.4

515.5

428.7

Total cost of revenue

775.8

676.5

1,188.7

1,039.6

Gross profit

162.8

157.3

160.0

147.6

Selling, general and administrative expenses

81.7

69.2

165.1

142.2

Operating income (loss)

81.1

88.1

(5.1

)

5.4

Interest expense

24.5

22.3

45.3

37.6

Other income

3.3

2.2

2.6

6.8

Income (loss) before income taxes

59.9

68.0

(47.8

)

(25.4

)

Income tax expense (benefit)

16.0

17.4

(12.5

)

(7.3

)

Net income (loss)

$

43.9

$

50.6

$

(35.3

)

$

(18.1

)

Net income (loss) per share:

Basic

$

0.77

$

0.89

$

(0.62

)

$

(0.32

)

Diluted

$

0.77

$

0.89

$

(0.62

)

$

(0.32

)

Weighted average common shares outstanding:

Basic

56.8

56.7

56.7

56.6

Diluted

56.9

56.9

56.7

56.6

Knife River Corporation

Consolidated Balance Sheets

(Unaudited)

June 30, 2026

June 30, 2025

December 31, 2025

(In millions, except shares and per share amounts)

Assets

Current assets:

Cash, cash equivalents and restricted cash

$

102.0

$

77.7

$

123.4

Receivables, net

468.4

428.1

278.1

Contract assets

121.9

64.0

77.5

Inventories

507.3

479.5

435.7

Prepayments and other current assets

72.0

54.0

46.2

Total current assets

1,271.6

1,103.3

960.9

Noncurrent assets:

Net property, plant and equipment

2,176.7

1,924.3

2,028.9

Goodwill

584.0

464.1

519.7

Other intangible assets, net

33.7

38.1

32.7

Operating lease right-of-use assets

51.4

49.1

52.6

Investments and other

60.4

52.6

55.3

Total noncurrent assets

2,906.2

2,528.2

2,689.2

Total assets

$

4,177.8

$

3,631.5

$

3,650.1

Liabilities and Stockholders' Equity

Current liabilities:

Long-term debt - current portion

$

17.2

$

11.8

$

11.7

Accounts payable

228.0

172.1

145.6

Contract liabilities

26.6

36.3

33.8

Accrued compensation

38.4

31.4

44.3

Current operating lease liabilities

16.5

14.3

15.9

Other taxes payable

18.8

18.0

11.3

Accrued interest

11.8

7.7

7.3

Other accrued liabilities

119.9

105.6

108.1

Total current liabilities

477.2

397.2

378.0

Noncurrent liabilities:

Long-term debt

1,600.1

1,341.2

1,153.8

Deferred income taxes

296.5

257.5

287.9

Noncurrent operating lease liabilities

34.8

34.8

36.7

Other

163.3

139.7

152.8

Total liabilities

2,571.9

2,170.4

2,009.2

Commitments and contingencies

Stockholders' equity:

Common stock, 300,000,000 shares authorized, $0.01 par value, 57,194,556 shares issued and 56,763,420 shares outstanding at June 30, 2026; 57,095,301 shares issued and 56,664,165 shares outstanding at June 30, 2025; 57,095,301 shares issued and 56,664,165 shares outstanding at December 31, 2025

0.6

0.6

0.6

Other paid-in capital

629.6

623.9

629.6

Retained earnings

989.3

849.4

1,024.6

Treasury stock held at cost - 431,136 shares

(3.6

)

(3.6

)

(3.6

)

Accumulated other comprehensive loss

(10.0

)

(9.2

)

(10.3

)

Total stockholders' equity

1,605.9

1,461.1

1,640.9

Total liabilities and stockholders' equity

$

4,177.8

$

3,631.5

$

3,650.1

Knife River Corporation

Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended

June 30,

2026

2025

(In millions)

Operating activities:

Net loss

$

(35.3

)

$

(18.1

)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation, depletion and amortization

108.5

89.0

Deferred income taxes

0.3

(0.1

)

Provision for credit losses

0.7

0.4

Amortization of debt issuance costs

2.0

1.8

Employee stock-based compensation costs

5.4

5.7

Pension and postretirement benefit plan net periodic benefit cost

0.9

0.7

Unrealized gains on investments

(2.3

)

(1.1

)

Gains on sales of assets

(2.6

)

(12.7

)

Gains on bargain purchases

(0.2

)

(3.6

)

Equity in earnings of unconsolidated affiliates

(0.7

)

(0.2

)

Changes in current assets and liabilities, net of acquisitions:

Receivables

(233.2

)

(177.4

)

Inventories

(66.2

)

(59.9

)

Other current assets

(22.5

)

(18.1

)

Accounts payable

87.6

36.2

Other current liabilities

16.7

(15.6

)

Pension and postretirement benefit plan contributions

(0.3

)

(0.3

)

Other noncurrent changes

7.6

5.5

Net cash used in operating activities

(133.6

)

(167.8

)

Investing activities:

Capital expenditures

(150.2

)

(228.6

)

Acquisitions, net of cash acquired

(184.4

)

(501.9

)

Net proceeds from sale or disposition of property and other

4.8

31.4

Investments

(2.8

)

(2.8

)

Net cash used in investing activities

(332.6

)

(701.9

)

Financing activities:

Issuance of long-term debt

461.0

683.0

Repayment of long-term debt

(6.9

)

(3.0

)

Debt issuance costs

(3.9

)

(11.1

)

Tax withholding on stock-based compensation

(5.4

)

(2.6

)

Net cash provided by financing activities

444.8

666.3

Decrease in cash, cash equivalents and restricted cash

(21.4

)

(203.4

)

Cash, cash equivalents and restricted cash -- beginning of year

123.4

281.1

Cash, cash equivalents and restricted cash -- end of period

$

102.0

$

77.7

Segment Financial Data and Highlights (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Dollars

Margin

Dollars

Margin

Dollars

Margin

Dollars

Margin

(Dollars in millions)

Revenues by segment:

West

$

290.4

$

317.4

$

502.2

$

525.7

Mountain

236.5

176.1

317.7

242.1

Central

325.6

255.2

426.8

323.1

Energy Services

103.0

97.4

123.5

111.3

Total segment revenues

955.5

846.1

1,370.2

1,202.2

Corporate Services and Eliminations

(16.9

)

(12.3

)

(21.5

)

(15.0

)

Consolidated revenues

$

938.6

$

833.8

$

1,348.7

$

1,187.2

EBITDA by segment:

West

$

49.2

17.0

%

$

60.7

19.1

%

$

71.4

14.2

%

$

85.7

16.3

%

Mountain

31.0

13.1

%

30.9

17.6

%

22.8

7.2

%

14.6

6.0

%

Central

53.6

16.5

%

44.4

17.4

%

26.8

6.3

%

20.1

6.2

%

Energy Services

19.8

19.2

%

17.1

17.5

%

15.2

12.3

%

9.3

8.3

%

Total segment EBITDA (a)

153.6

16.1

%

153.1

18.1

%

136.2

9.9

%

129.7

10.8

%

Corporate Services and Eliminations (b)

(13.4

)

N.M.

(13.4

)

N.M.

(31.4

)

N.M.

(31.5

)

N.M.

Consolidated EBITDA (a)

$

140.2

14.9

%

$

139.7

16.8

%

$

104.8

7.8

%

$

98.2

8.3

%

The following table summarizes backlog for the company.

June 30, 2026

June 30, 2025

(In millions)

West

$

235.7

$

282.4

Mountain

449.3

483.4

Central

531.0

487.6

$

1,216.0

$

1,253.4

Margins on backlog at June 30, 2026, are expected to be slightly lower than the margins on backlog at June 30, 2025. Approximately 85% of the company's contracting services backlog relates to publicly funded projects, including street and highway construction projects. Period over period increases or decreases should not be used as an indicator of future revenues or earnings.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Sales (thousands):

Aggregates (tons)

10,031

8,826

14,909

12,693

Ready-mix concrete (cubic yards)

1,193

1,041

1,917

1,585

Asphalt (tons)

2,030

1,643

2,313

1,842

Average selling price:*

Aggregates (per ton)

$

19.41

$

18.80

$

20.00

$

19.49

Ready-mix concrete (per cubic yard)

$

198.45

$

197.91

$

198.95

$

198.37

Asphalt (per ton)

$

65.77

$

67.45

$

66.79

$

68.92

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Dollars

Margin

Dollars

Margin

Dollars

Margin

Dollars

Margin

(Dollars in millions)

Revenues by product line:

Aggregates

$

194.7

$

165.9

$

298.2

$

247.4

Ready-mix concrete

236.7

206.0

381.3

314.4

Asphalt

133.5

110.8

154.5

127.0

Liquid asphalt

91.4

85.9

109.5

98.1

Other*

83.7

79.6

130.3

123.0

Contracting services

406.5

340.2

554.3

480.2

Internal sales

(207.9

)

(154.6

)

(279.4

)

(202.9

)

Total revenues

$

938.6

$

833.8

$

1,348.7

$

1,187.2

Gross profit by product line:

Aggregates

$

38.8

19.9

%

$

34.6

20.8

%

$

35.1

11.8

%

$

28.6

11.6

%

Ready-mix concrete

39.1

16.5

%

32.4

15.7

%

54.6

14.3

%

41.1

13.1

%

Asphalt

20.9

15.7

%

16.8

15.2

%

16.0

10.3

%

11.2

8.8

%

Liquid asphalt

16.5

18.1

%

14.9

17.4

%

13.7

12.6

%

10.7

10.9

%

Other*

16.6

19.8

%

17.8

22.3

%

1.8

1.4

%

4.5

3.7

%

Contracting services

30.9

7.6

%

40.8

12.0

%

38.8

7.0

%

51.5

10.7

%

Total gross profit

$

162.8

17.3

%

$

157.3

18.9

%

$

160.0

11.9

%

$

147.6

12.4

%

NON-GAAP FINANCIAL MEASURES

EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, as well as total segment measures, as applicable, net debt and net leverage are considered non-GAAP measures of financial performance. These non-GAAP financial measures are not measures of financial performance under GAAP. The items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. Therefore, these non-GAAP financial measures should not be considered substitutes for the applicable GAAP metric.

EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are most directly comparable to the corresponding GAAP measures of net income and net income margin. Net debt and net leverage are most directly comparable to the corresponding GAAP measures of total debt. We believe these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to our peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance by excluding unrealized gains and losses on benefit plan investments, stock-based compensation, and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting, as they are considered non-cash and not part of our core operations. We believe EBITDA and Adjusted EBITDA assist rating agencies and investors in comparing operating performance across operating periods on a consistent basis by excluding items management does not believe are indicative of the company's operating performance, including using EBITDA and Adjusted EBITDA to calculate Knife River’s leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important financial metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. We believe EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin, including those measures by segment, are useful performance measures because they provide clarity as to the operational results of the company. Management believes net debt and net leverage are useful performance measures because they provide a measure of how long it would take the company to pay back its debt if net debt and Adjusted EBITDA were constant. Net leverage also allows management to assess our borrowing capacity and optimal leverage ratio. Our management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating our operating results internally and calculating employee incentive compensation, and leverage as a multiple of Adjusted EBITDA to determine the appropriate method of funding our operations.

EBITDA is calculated by adding back income taxes, interest expense (net of interest income) and depreciation, depletion and amortization expense to net income. EBITDA margin is calculated by dividing EBITDA by revenues. Adjusted EBITDA is calculated by adding back unrealized gains and losses on benefit plan investments, stock-based compensation and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting to EBITDA. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing-twelve-month Adjusted EBITDA. These non-GAAP financial measures are calculated the same for both the segment and consolidated metrics and should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income, net income margin and total debt and are intended to be helpful supplemental financial measures for investors’ understanding of our operating performance. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, net debt and net leverage measures having the same or similar names.

The following information reconciles segment and consolidated net income (loss) to EBITDA and Adjusted EBITDA and provides the calculation of EBITDA margin, Adjusted EBITDA margin, net debt and net leverage. Interest expense, net, is net of interest income that is included in other income (expense) on the Consolidated Statements of Operations.

The following table provides the reconciliation of net income (loss) to EBITDA and Adjusted EBITDA.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions)

Net income (loss)

$

43.9

$

50.6

$

(35.3

)

$

(18.1

)

Depreciation, depletion and amortization

56.4

50.2

108.5

88.9

Interest expense, net

23.9

21.5

44.1

34.7

Income taxes

16.0

17.4

(12.5

)

(7.3

)

EBITDA

$

140.2

$

139.7

$

104.8

$

98.2

Unrealized (gains) losses on benefit plan investments

(3.2

)

(1.8

)

(2.4

)

(1.1

)

Stock-based compensation expense

2.6

2.9

5.4

5.7

Impact of selling acquired inventory after markup to fair value as part of acquisition accounting

0.1

—

0.1

—

Adjusted EBITDA

$

139.7

$

140.8

$

107.9

$

102.8

Revenue

$

938.6

$

833.8

$

1,348.7

$

1,187.2

Net income (loss) margin

4.7

%

6.1

%

(2.6

)%

(1.5

)%

EBITDA margin

14.9

%

16.8

%

7.8

%

8.3

%

Adjusted EBITDA margin

14.9

%

16.9

%

8.0

%

8.7

%

The following table provides the reconciliation of consolidated net income (loss) to total segment EBITDA.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions)

Net income (loss)

$

43.9

$

50.6

$

(35.3

)

$

(18.1

)

Depreciation, depletion and amortization

56.4

50.2

108.5

88.9

Interest expense, net

23.9

21.5

44.1

34.7

Income taxes

16.0

17.4

(12.5

)

(7.3

)

EBITDA

$

140.2

$

139.7

$

104.8

$

98.2

Less corporate services EBITDA

(13.4

)

(13.4

)

(31.4

)

(31.5

)

Total segment EBITDA

$

153.6

$

153.1

$

136.2

$

129.7

The following tables provide the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.

Twelve Months Ended

June 30, 2026

Six Months Ended June 30, 2026

Twelve Months Ended December 31, 2025

Six Months Ended June 30, 2025

(In millions)

Net income (loss)

$

139.9

$

(35.3

)

$

157.1

$

(18.1

)

Depreciation, depletion and amortization

213.3

108.5

193.7

88.9

Interest expense, net

86.8

44.1

77.4

34.7

Income taxes

50.9

(12.5

)

56.1

(7.3

)

EBITDA

$

490.9

$

104.8

$

484.3

$

98.2

Unrealized (gains) losses on benefit plan investments

(4.2

)

(2.4

)

(2.9

)

(1.1

)

Stock-based compensation expense

11.1

5.4

11.4

5.7

Impact of selling acquired inventory after markup to fair value as part of acquisition accounting

3.8

.1

3.7

—

Adjusted EBITDA

$

501.6

$

107.9

$

496.5

$

102.8

The following table provides the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.

Twelve Months Ended

June 30, 2026

(In millions)

Long-term debt

$

1,600.1

Long-term debt - current portion

17.2

Total debt

1,617.3

Add: Unamortized debt issuance costs

17.9

Total debt, gross

1,635.2

Less: Cash and cash equivalents, excluding restricted cash

40.7

Total debt, net

$

1,594.5

Trailing-twelve-months ended June 30, 2026, Adjusted EBITDA

$

501.6

Net leverage

3.2

x

Knife River’s projections for 2026 Adjusted EBITDA is a non-GAAP financial measure that excludes or otherwise has been adjusted for non-GAAP adjustment items from Knife River’s financial statements. When the company provides its forward-looking 2026 Adjusted EBITDA, it does not provide a reconciliation of these non-GAAP financial measures as Knife River is unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results, including, but not limited to, the potentially high variability, complexity and low visibility with respect to the items that would be excluded from the applicable GAAP measure in the relevant future period, such as unusual gains and losses, the impact and timing of potential acquisitions and divestitures, certain financing costs and other structural changes or their probable significance. Therefore, Knife River is unable to provide a reconciliation of these measures without unreasonable efforts.

FORWARD-LOOKING STATEMENTS

The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that its expectations are expressed in good faith and based on reasonable assumptions, there is no assurance the company’s statements with respect to its EDGE strategy, shareholder value creation, financial guidance, expected long-term goals, expected backlog margin, or other proposed strategies will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's most recent Form 10-K and subsequent filings with the Securities and Exchange Commission.

Changes in such assumptions and factors could cause actual future results to differ materially from those expressed in the forward-looking statements. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

Original source text

Vancouver, British Columbia--(Newsfile Corp. - August 4, 2026) - Bitzero Holdings Inc. (Nasdaq: AIBZ) (CSE: AIBZ.U) (FSE: 000) ("Bitzero" or the "Company"), a provider of sustainable high-performance compute ("HPC") and AI data center infrastructure, today announced a collaboration with Vertiv, a global leader in critical digital infrastructure, further strengthening Bitzero's growing ecosystem of technical, engineering, and supply chain providers supporting the delivery of next-generation data center infrastructure.

Further to Bitzero's previously announced partnerships, Vertiv adds deep expertise in critical power, thermal management, and infrastructure deployment to support the design and delivery of AI, HPC, and hyperscale data centers. The relationship expands Bitzero's access to proven technologies and engineering capabilities that can help accelerate project execution while supporting performance, efficiency, and scalability requirements.

Vertiv technologies and expertise are expected to serve as a key pillar within Bitzero's broader execution platform, bringing global expertise in critical power and cooling systems, including advanced liquid cooling design and engineering capabilities required for modern AI and HPC environments. As compute density increases and customer requirements evolve, integrated end-to-end infrastructure systems and modular solutions are becoming increasingly central to the successful deployment of resilient, scalable, and efficient digital infrastructure, helping customers accelerate deployment and reduce time to token.

The collaboration reflects Bitzero's continued focus on building an integrated network of industry-leading providers across technical design, project execution, and supply chain coordination. By deepening its relationships with specialized infrastructure leaders, the Company is positioning itself to deliver high-performance compute environments that meet the demands of hyperscale, AI, and other advanced workloads.

"Bitzero is intentionally building an ecosystem of leading providers across every critical layer of data center delivery," said Bitzero Founder & CEO, Mohammed Bakhashwain. "Following our previously announced relationships, Vertiv further enhances our technical depth across critical power, thermal management, and infrastructure solutions, while strengthening our supply chain capabilities as we continue advancing our platform for hyperscale, AI, and HPC applications."

"Successfully scaling AI requires more than advanced compute, it requires end-to-end infrastructure capable of supporting increasingly demanding power and thermal profiles," said Paul Ryan, president for Europe, Middle East and Africa (EMEA) at Vertiv. "Vertiv draws on decades of experience in critical digital infrastructure to help organizations deploy and operate the power and cooling systems that underpin AI and HPC environments, helping accelerate AI readiness and support faster time-to-token outcomes. We are pleased to support Mohammed and the Bitzero team as it expands its capabilities to meet growing customer demand."

As Bitzero continues to advance its development strategy, the Company remains focused on bringing together the expertise, infrastructure providers, and delivery capabilities necessary to support long-term growth across its portfolio of sites.

About Bitzero Holdings Inc.

Bitzero Holdings Inc. is a provider of IT energy infrastructure and high-efficiency power for data centers. The Company focuses on data center development, high-performance compute (HPC), and strategic data center hosting partnerships. Bitzero Holdings Inc. owns four data center locations in the North American and Nordic regions, with its Nordic assets powered by clean, low-carbon energy sources. Visit www.bitzero.com for more information.

About Vertiv

Vertiv brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.

Vertiv Media Contact
Susanna Collins
[email protected]

Forward-looking statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act, and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements are often, but not always, identified by words such as "anticipate", "plan", "expect", "intend", "may", "will", "would", "could", "should", "believe", "estimate", "project", "potential", "target" or similar expressions suggesting future outcomes or events.

Forward-looking statements in this release include, but are not limited to, statements regarding the anticipated benefits of the collaboration with Vertiv; the expected role of Vertiv's technologies and expertise within Bitzero's execution platform; and Bitzero's ability to design, deliver and scale AI, HPC and hyperscale data center infrastructure, accelerate project execution and reduce time to token. These statements are only a prediction and are based on assumptions including that the collaboration will proceed and deliver benefits as expected; that Vertiv will provide the anticipated technologies, expertise and support on commercially reasonable terms and on a timely basis; that Bitzero will have access to the capital, power, sites and personnel required to advance its development strategy; that Bitzero will secure customer demand for AI and HPC capacity at its sites; that Bitzero will complete site development in accordance with its expected timelines; that no unforeseen technological, competitive or regulatory developments will materially impair the anticipated benefits of the collaboration; and that there will be no material change in economic, market, supply chain or regulatory conditions. Bitzero believes that the assumptions on which its forward-looking statements are based were reasonable when made, but cautions readers that these assumptions may prove to be incorrect.

Actual events or results may differ materially from those in the forward-looking statements set forth herein as a result of a number of factors, including: risks relating to the execution of Bitzero's development strategy; the availability, cost and timing of financing, critical power, cooling and other data center infrastructure; supply chain and counterparty performance; risks that the Vertiv collaboration does not deliver the anticipated benefits, is terminated or modified, or does not proceed on the timelines or terms currently contemplated; risks associated with the evolution of AI and HPC customer requirements and compute density; competitive risks in the AI/HPC and data center infrastructure market; technology obsolescence risk; and general economic and market conditions. Readers are referred to Vertiv's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and to Bitzero's continuous disclosure record, including its most recent Annual Information Form, Management's Discussion and Analysis, its CSE listing statement and its registration statement/annual report on Form 40-F, in each case available on SEDAR+ at www.sedarplus.ca or on EDGAR at www.sec.gov, for a discussion of the risk factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this release. The forward-looking statements in this release are made as of the date hereof, and neither Vertiv nor Bitzero undertakes any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307656

Source: Bitzero Holdings Inc.

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Original source text

Sales of $1.26 billion, up 7.5 percent from last year Second-quarter diluted EPS of $0.41; adjusted EPS of $1.83 Net income margin of 2.3 percent; adjusted EBITDA margin of 19.6 percent Updates 2026 EPS outlook; now expects 2026 EPS of $3.75-$4.05, raising adjusted EPS outlook to $6.05-$6.35 , /PRNewswire/ -- The Timken Company (NYSE: TKR) (www.timken.com), a leader in advanced motion technology, today reported second-quarter 2026 results.

2Q-26

2Q-25

% Change

Net Sales (mils.)

$1,260.9

$1,173.4

7.5 %

Net Income Margin

2.3 %

6.7 %

(440 bps)

Adjusted EBITDA Margin

19.6 %

17.7 %

190 bps

Diluted EPS

$0.41

$1.12

(63.4) %

Adjusted EPS

$1.83

$1.42

28.9 %

Net Cash from Operations (mils.)

$107.1

$111.3

(3.8) %

Free Cash Flow

$80.5

$78.2

2.9 %

"The Timken team is successfully advancing our Elevate to Outperform strategy to accelerate profitable growth, structurally increase margins and create long-term shareholder value," said Lucian Boldea, president and chief executive officer. "Second quarter results demonstrate our team's strong execution and continued progress against these objectives combined with our ability to capitalize on improving customer demand. Our performance during the first half of the year, continued momentum, and disciplined execution framework gives us the confidence to raise our 2026 outlook."

Second-Quarter 2026 Highlights

Timken delivered sales in the second quarter of $1.26 billion, up 7.5 percent from the same period a year ago. The increase was driven by higher volumes across both segments, higher pricing, revenue from the Bijur Delimon acquisition and favorable foreign currency translation. Organically, sales were up 4.4 percent as compared to the second quarter of 2025.

The company posted net income in the second quarter of $28.9 million or $0.41 per diluted share. This compares to net income of $78.5 million or $1.12 per diluted share for the same period a year ago. The company's net income margin in the quarter was 2.3 percent, compared to 6.7 percent in the second quarter of last year. Net income in the current period includes an impairment charge related to the anticipated divestiture of the company's belts business.

Excluding special items (detailed in the attached tables), adjusted net income in the second quarter was $128.4 million or $1.83 per diluted share. This compares to adjusted net income of $99.3 million or $1.42 per diluted share for the same period in 2025. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $247.2 million or 19.6 percent of sales, compared with $208.2 million or 17.7 percent of sales in the second quarter of last year. Adjusted EBITDA in the current period includes a net benefit of $8.0 million for IEEPA tariff refunds.

Net cash provided by operations in the quarter was $107.1 million, and free cash flow was $80.5 million. During the quarter, Timken increased its quarterly dividend by 3 percent and repurchased approximately 155 thousand shares of company stock. In total, the company returned $45.0 million of cash to shareholders through dividends and share repurchases during the quarter. The company ended the quarter with a strong balance sheet; net debt to adjusted EBITDA was 2.0 times as of June 30, 2026.

Second-Quarter 2026 Segment Results

Engineered Bearings sales of $807.0 million increased 3.8 percent from the same period a year ago driven primarily by higher volumes, the impact of higher pricing and favorable foreign currency translation.

Adjusted EBITDA in the quarter was $161.3 million or 20.0 percent of sales, compared with $153.4 million or 19.7 percent of sales in the second quarter of last year. The increase in adjusted EBITDA was driven primarily by positive price/mix, the impact of higher volume, a net benefit for tariff refunds and favorable foreign currency, partially offset by higher operating costs.

Industrial Motion sales of $453.9 million increased 14.6 percent compared with the same period a year ago driven primarily by higher demand across most platforms and end-market sectors, revenue from the Bijur Delimon acquisition, higher pricing and favorable foreign currency translation.

Adjusted EBITDA in the quarter was $105.6 million or 23.3 percent of sales, compared with $72.6 million or 18.3 percent of sales in the second quarter of last year. The increase in adjusted EBITDA was driven primarily by the impact of higher volume, positive price/mix, a net benefit for tariff refunds and contribution from the Bijur Delimon acquisition, partially offset by higher operating costs.

2026 Outlook

Timken is updating its 2026 outlook, with full-year earnings per diluted share now forecasted to be in the range of $3.75 to $4.05 and is raising its adjusted earnings per diluted share to the range of $6.05 to $6.35. The company is planning for 2026 revenue to be up approximately 5.5 percent in total at the midpoint from 2025, a slight increase from its prior outlook of 5 percent growth at the midpoint.

Conference Call Information

Timken will host a conference call today at 11 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts.

Conference Call:

Tuesday, August 4, 2026

11:00 a.m. Eastern Time

Live Dial-In: 888-880-3330

Conference ID: 2764753

Live Webcast:

http://investors.timken.com

Replay:

https://tmkn.biz/4b21FiY

About The Timken Company

The Timken Company (NYSE: TKR; www.timken.com), a leader in advanced motion technology, designs and manufacturers highly engineered systems and components for customers in strategic end markets, including aerospace and defense, power and electrification, and automation and industrial solutions. With more than 125 years of specialized expertise and a multinational presence, Timken is a trusted partner worldwide, innovating and powering performance across the application lifecycle. The company posted $4.6 billion in sales in 2025 and employs approximately 19,000 people, operating from 45 countries. Learn more at www.timken.com or @TheTimkenCompany.

Certain statements in this release (including statements regarding the company's forecasts, beliefs, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance, including information under the heading "2026 Outlook," are forward-looking.

The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the finalization of the company's financial statements for the second quarter of 2026; fluctuations in customer demand for the company's products or services; changes in customer preferences due to emergent technologies, evolving regulatory landscapes or other factors; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; logistical issues associated with port closures, delays or increased costs; costs associated with inclement weather events; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); changes in wages, shipping costs, raw material costs, energy and fuel prices, and other production costs; new technology, including artificial intelligence, that may impact the way the Company's products are produced, sold or distributed; changes in customer demand or tariff rates and other costs associated with tariffs; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations or interest rates; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; the company's ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies, such as artificial intelligence; unplanned plant shutdowns; the effects of government-imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations remediation, or assessments; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances or polytetrafluoroethylene; the company's ability to maintain positive relations with unions and works councils; the company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel; negative impacts to the company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions, capital investments, and cost reduction actions. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2025, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, 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.

Media Relations:
Sarah Factor
234.262.4878
[email protected]

Investor Relations:
Neil Frohnapple
234.262.2310
[email protected]

The Timken Company

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions, except share data) (Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net sales

$

1,260.9

$

1,173.4

$

2,492.2

$

2,313.7

Cost of products sold

861.6

813.1

1,698.9

1,594.7

Selling, general & administrative expenses

205.9

189.7

407.1

374.5

Amortization of intangible assets

20.7

19.9

41.3

38.9

Impairment and restructuring charges

87.9

2.9

91.5

13.8

Operating Income

84.8

147.8

253.4

291.8

Non-service pension and other postretirement expense

(0.7)

(1.2)

(1.4)

(2.4)

Other expense, net

(2.5)

(3.4)

(4.9)

(3.7)

Interest expense, net

(23.7)

(26.8)

(46.3)

(51.0)

Income Before Income Taxes

57.9

116.4

200.8

234.7

Provision for income taxes

20.7

30.7

57.7

57.6

Net Income

37.2

85.7

143.1

177.1

Less: Net income attributable to noncontrolling interest

8.3

7.2

16.0

20.3

Net Income Attributable to The Timken Company

$

28.9

$

78.5

$

127.1

$

156.8

Net Income per Common Share Attributable to The Timken Company Common Shareholders

    Basic Earnings per share

$

0.42

$

1.13

$

1.83

$

2.24

    Diluted Earnings per share

$

0.41

$

1.12

$

1.81

$

2.23

Average Shares Outstanding

69,468,880

69,751,965

69,531,059

69,877,737

Average Shares Outstanding - assuming dilution

70,090,431

70,075,084

70,152,767

70,283,847

BUSINESS SEGMENTS

(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

(Dollars in millions)

2026

2025

2026

2025

Engineered Bearings

Net sales

$

807.0

$

777.4

$

1,613.2

$

1,538.1

Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1)

$

161.3

$

153.4

$

320.3

$

312.6

Adjusted EBITDA Margin (1)

20.0

%

19.7

%

19.9

%

20.3

%

Industrial Motion

Net sales

$

453.9

$

396.0

$

879.0

$

775.6

Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1)

$

105.6

$

72.6

$

196.9

$

139.7

Adjusted EBITDA Margin (1)

23.3

%

18.3

%

22.4

%

18.0

%

Unallocated corporate expense (1)

$

(19.7)

$

(17.8)

$

(39.0)

$

(36.0)

Consolidated

Net sales

$

1,260.9

$

1,173.4

$

2,492.2

$

2,313.7

Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1)

$

247.2

$

208.2

$

478.2

$

416.3

Adjusted EBITDA Margin (1)

19.6

%

17.7

%

19.2

%

18.0

%

EBITDA is a non-GAAP measure defined as operating income plus other income (expense) and excluding depreciation and amortization. EBITDA Margin is a non-GAAP measure defined as EBITDA as a percentage of net sales. EBITDA and EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting EBITDA and EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See the subsequent pages for the reconciliations of Consolidated EBITDA and Consolidated EBITDA Margin.

(1) Consolidated adjusted EBITDA is a non-GAAP measure defined as EBITDA less impairment, restructuring and reorganization charges, acquisition costs, including transaction costs and the amortization of the inventory step-up, actuarial gains and losses associated with the remeasurement of the Company's defined benefit pension and other postretirement benefit plans, property losses and recoveries, gains and losses on the sale of real estate and divestitures, and other items from time to time that are not part of the Company's core operations. Consolidated adjusted EBITDA Margin is a non-GAAP measure defined as Consolidated adjusted EBITDA as a percentage of net sales. Management believes Consolidated adjusted EBITDA and Consolidated adjusted EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted EBITDA and adjusted EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See subsequent pages for the reconciliations of Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin. Segment Adjusted EBITDA is the measurement of segment profit and loss. The Company's Chief Operating Decision Maker ("CODM") utilizes Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin to evaluate segment performance and allocates resources. See the Company's quarterly report on Form 10-Q for a reconciliation of Segment Adjusted EBITDA to income before income taxes.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)

June 30,
2026

December 31,
2025

ASSETS

Cash and cash equivalents

$

399.1

$

364.4

Restricted cash

1.4

1.0

Accounts receivable, net

822.9

689.4

Unbilled receivables

174.0

137.6

Inventories, net

1,249.1

1,243.3

Other current assets

196.0

165.1

Total Current Assets

2,842.5

2,600.8

Property, plant and equipment, net

1,289.9

1,357.6

Operating lease assets

152.4

152.9

Goodwill and other intangible assets

2,473.0

2,488.7

Other assets

67.8

76.8

Total Assets

$

6,825.6

$

6,676.8

LIABILITIES

Accounts payable

$

371.1

$

353.2

Short-term debt, including current portion of long-term debt

40.2

38.9

Income taxes

17.3

31.4

Accrued expenses

489.7

498.6

Total Current Liabilities

918.3

922.1

Long-term debt

2,036.0

1,883.1

Accrued pension benefits

136.6

148.9

Accrued postretirement benefits

29.2

29.3

Long-term operating lease liabilities

94.3

100.8

Other non-current liabilities

248.1

246.9

Total Liabilities

3,462.5

3,331.1

EQUITY

The Timken Company shareholders' equity

3,194.5

3,184.6

Noncontrolling interest

168.6

161.1

Total Equity

3,363.1

3,345.7

Total Liabilities and Equity

$

6,825.6

$

6,676.8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

(Dollars in millions)

2026

2025

2026

2025

Cash Provided by (Used in)

OPERATING ACTIVITIES

Net Income

$

37.2

$

85.7

$

143.1

$

177.1

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

Depreciation and amortization

59.7

57.2

118.6

112.3

Impairment charges

79.0

—

79.0

—

Stock-based compensation expense

6.9

6.9

14.5

14.4

Pension and other postretirement expense

1.3

1.9

2.6

3.7

Pension and other postretirement benefit contributions and payments

(7.3)

(4.6)

(18.1)

(28.4)

Changes in operating assets and liabilities:

Accounts receivable

(11.8)

(21.0)

(124.6)

(91.8)

Unbilled receivables

(18.4)

5.9

(36.6)

(12.3)

Inventories

(5.4)

5.2

(17.9)

20.5

Accounts payable

(8.0)

2.8

23.1

23.0

Accrued expenses

(5.6)

(11.4)

(24.1)

(27.4)

Income taxes

(25.0)

(25.5)

(9.0)

(22.0)

Other, net

4.5

8.2

(4.2)

0.8

Net Cash Provided by Operating Activities

$

107.1

$

111.3

$

146.4

$

169.9

INVESTING ACTIVITIES

Capital expenditures

$

(26.6)

$

(33.1)

$

(65.4)

$

(68.3)

Acquisitions, net of cash received

(0.1)

—

(124.4)

—

Investments in short-term marketable securities, net

2.9

3.9

9.0

4.7

Other, net

0.3

0.1

0.3

2.0

Net Cash Used in Investing Activities

$

(23.5)

$

(29.1)

$

(180.5)

$

(61.6)

FINANCING ACTIVITIES

Cash dividends paid to shareholders

$

(25.0)

$

(24.4)

$

(50.3)

$

(49.5)

Purchase of treasury shares

(20.0)

(22.6)

(48.0)

(45.7)

Proceeds from exercise of stock options

2.4

0.2

5.3

0.5

Payments related to tax withholding for stock-based compensation

(1.2)

(0.3)

(10.4)

(9.8)

Net proceeds (payments) from credit facilities

17.5

(1.1)

180.3

26.9

Net payments on long-term debt

(1.1)

(6.1)

(2.2)

(7.3)

Net Cash Provided by (Used in) Financing Activities

$

(27.4)

$

(54.3)

$

74.7

$

(84.9)

Effect of exchange rate changes on cash

(1.2)

16.4

(5.5)

23.8

Increase in Cash, Cash Equivalents and Restricted Cash

$

55.0

$

44.3

$

35.1

$

47.2

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

345.5

376.5

365.4

373.6

Cash, Cash Equivalents and Restricted Cash at End of Period

$

400.5

$

420.8

$

400.5

$

420.8

Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earnings Per Share to GAAP Earnings Per Share:

(Unaudited)

The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that the non-GAAP measures of adjusted net income and adjusted diluted earnings per share are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted net income and adjusted diluted earnings per share is useful to investors as these measures are representative of the Company's core operations.

(Dollars in millions, except share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

EPS

2025

EPS

2026

EPS

2025

EPS

Net Income Attributable to The Timken Company

$

28.9

$

0.41

$

78.5

$

1.12

$

127.1

$

1.81

$

156.8

$

2.23

Adjustments: (1)

Acquisition intangible amortization

$

20.7

$

19.9

$

41.3

$

38.9

Impairment, restructuring and reorganization charges (2)

9.0

5.0

13.9

8.2

Acquisition-related charges (3)

3.4

—

5.2

—

Belts impairment, restructuring and reorganization charges (4)

94.4

—

94.4

—

Gain on sale of certain assets (5)

—

(0.1)

—

(1.3)

CEO transition expenses (6)

—

3.2

—

11.8

Noncontrolling interest of above adjustments (7)

0.4

1.0

0.3

4.8

Provision for income taxes (8)

(28.4)

(8.2)

(36.5)

(21.3)

      Total Adjustments:

99.5

1.42

20.8

0.30

118.6

1.69

41.1

0.59

Adjusted Net Income Attributable to The Timken Company

$

128.4

$

1.83

$

99.3

$

1.42

$

245.7

$

3.50

$

197.9

$

2.82

(1) Adjustments are pre-tax, with the net tax provision listed separately.

(2) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; (iv) impairment of assets; and (v) related depreciation and amortization. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations.

(3) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact.

(4) On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates Industrial Corporation plc. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2026. In addition, the Company announced the closure of its belts manufacturing facility in Springfield, Missouri. As a result, the Company recorded impairment, restructuring and reorganization charges of $94.4 million during the second quarter of 2026.

(5) Represents the net gain resulting from the sale of certain assets.

(6) On March 31, 2025, the Company announced that Tarak B. Mehta, President and Chief Executive Officer ("CEO") of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, and incremental stock compensation expense related to a deferred share award issued to Mr. Kyle.

(7) Represents the noncontrolling interest impact of the adjustments listed above, as well as the reversal of uncertain tax positions related to Timken India Limited.

(8) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods.

Reconciliation of EBITDA to GAAP Net Income, EBITDA Margin to Net Income as a Percentage of Sales, and EBITDA Margin, After Adjustments, to Net Income as a Percentage of Sales, and EBITDA, After Adjustments, to Net Income:

(Unaudited)

The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that adjusted EBITDA, adjusted EBITDA margin and EBITDA margin are useful to investors as they are representative of the Company's core operations and are used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.

(Dollars in millions)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

Percentage to
Net Sales

2025

Percentage to
Net Sales

2026

Percentage to
Net Sales

2025

Percentage to
Net Sales

Net Income

$

37.2

3.0

%

$

85.7

7.3

%

$

143.1

5.7

%

$

177.1

7.7

%

Provision for income taxes

20.7

30.7

57.7

57.6

Interest expense

26.2

29.8

50.5

56.3

Interest income

(2.5)

(3.0)

(4.2)

(5.3)

Depreciation and amortization

59.7

57.2

118.6

112.3

Consolidated EBITDA

$

141.3

11.2

%

$

200.4

17.1

%

$

365.7

14.7

%

$

398.0

17.2

%

Adjustments:

Impairment, restructuring and reorganization charges (1)

$

8.1

$

4.7

$

12.9

$

7.8

Acquisition-related charges (2)

3.4

—

5.2

—

Belts impairment, restructuring and reorganization charges (3)

94.4

—

94.4

—

Gain on sale of certain assets (4)

—

(0.1)

—

(1.3)

CEO transition expenses (5)

—

3.2

—

11.8

Total Adjustments

105.9

8.4

%

7.8

0.6

%

112.5

4.5

%

18.3

0.8

%

Adjusted EBITDA

$

247.2

19.6

%

$

208.2

17.7

%

$

478.2

19.2

%

$

416.3

18.0

%

(1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations.

(2) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact.

(3) On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates Industrial Corporation plc. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2026. In addition, the Company announced the closure of its belts manufacturing facility in Springfield, Missouri. As a result, the Company recorded impairment, restructuring and reorganization charges of $94.4 million during the second quarter of 2026.

(4) Represents the net gain resulting from the sale of certain assets.

(5) On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, and incremental stock compensation expense related to a deferred share award issued to Mr. Kyle.

Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to Capital, and the Ratio of Net Debt to Adjusted EBITDA:

(Unaudited)

These reconciliations are provided as additional relevant information about the Company's financial position deemed useful to investors. Capital, used for the ratio of net debt to capital, is a non-GAAP measure defined as total debt less cash and cash equivalents plus total shareholders' equity. Management believes Net Debt, the Ratio of Net Debt to Capital, Adjusted EBITDA (see next page), and the Ratio of Net Debt to Adjusted EBITDA are important measures of the Company's financial position, due to the amount of cash and cash equivalents on hand. The Company presents net debt to adjusted EBITDA because it believes it is more representative of the Company's financial position as it is reflective of the ability to cover its net debt obligations with results from its core operations.

(Dollars in millions)

June 30,
2026

December 31,
2025

Short-term debt, including current portion of long-term debt

$

40.2

$

38.9

Long-term debt

2,036.0

1,883.1

  Total Debt

$

2,076.2

$

1,922.0

Less: Cash and cash equivalents

(399.1)

(364.4)

Net Debt

$

1,677.1

$

1,557.6

Total Equity

$

3,363.1

$

3,345.7

Ratio of Net Debt to Capital

33.3

%

31.8

%

Adjusted EBITDA for the Twelve Months Ended

$

857.7

$

795.8

Ratio of Net Debt to Adjusted EBITDA

2.0

2.0

Reconciliation of Free Cash Flow to GAAP Net Cash Provided by Operating Activities:

(Unaudited)

Management believes that free cash flow is a non-GAAP measure that is useful to investors because it is a meaningful indicator of cash generated from operating activities available for the execution of its business strategy.

(Dollars in millions)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net cash provided by operating activities

$

107.1

$

111.3

$

146.4

$

169.9

Less: capital expenditures

(26.6)

(33.1)

(65.4)

(68.3)

Free cash flow

$

80.5

$

78.2

$

81.0

$

101.6

Reconciliation of EBITDA, After Adjustments, to GAAP Net Income:

(Unaudited)

The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that the non-GAAP measure of adjusted EBITDA is useful to investors as it is representative of the Company's core operations and is used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.

(Dollars in millions)

Twelve Months Ended
June 30, 2026

Twelve Months Ended
December 31, 2025

Net Income

$

283.3

$

317.3

Provision for income taxes

98.8

98.7

Interest expense

104.5

110.3

Interest income

(9.2)

(10.3)

Depreciation and amortization

236.4

230.1

Consolidated EBITDA

$

713.8

$

746.1

Adjustments:

Impairment, restructuring and reorganization charges (1)

$

25.8

$

20.7

Corporate pension and other postretirement benefit related expense (2)

10.8

10.8

Acquisition-related charges (3)

5.2

—

Belts impairment, restructuring and reorganization charges (4)

94.4

—

Gain on sale of certain assets (5)

(1.3)

(2.6)

CEO transition expenses (6)

9.0

20.8

Total Adjustments

143.9

49.7

Adjusted EBITDA

$

857.7

$

795.8

(1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations.

(2) Corporate pension and other postretirement benefit related expense represents actuarial losses that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial losses and gains in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement.

(3) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact.

(4) On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates Industrial Corporation plc. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2026. In addition, the Company announced the closure of its belts manufacturing facility in Springfield, Missouri. As a result, the Company recorded impairment and restructuring charges of $94.4 million during the second quarter of 2026.

(5) Represents the net gain resulting from the sale of certain assets.

(6) On August 22, 2025, the Company announced the appointment of Lucian Boldea as President and CEO, effective September 1, 2025, and that Richard G. Kyle would retire from the role of interim President and CEO. On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Mr. Kyle would be serving as interim President and CEO. CEO transition expenses for the twelve months ended December 31, 2025, primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, the acceleration of certain stock compensation awards issued to Mr. Kyle, and other one-time costs associated with the transition in 2025.

Reconciliation of Net Sales to Organic Sales

(Unaudited)

The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that net sales, excluding the impact of acquisitions, divestitures and foreign currency exchange rate changes, allow investors and the Company to meaningfully evaluate the percentage change in net sales on a comparable basis from period to period.

Three Months Ended
June 30, 2026

Three Months Ended
June 30, 2025

$ Change

% Change

Net sales

$

1,260.9

$

1,173.4

$

87.5

7.5

%

Less: Acquisitions

20.6

—

20.6

NM

         Currency

15.1

—

15.1

NM

Net sales, excluding the impact of acquisitions and currency

$

1,225.2

$

1,173.4

$

51.8

4.4

%

Reconciliation of Adjusted Earnings per Share to GAAP Earnings per Share for Full Year 2026 Outlook:

(Unaudited)

The following reconciliation is provided as additional relevant information about the Company's outlook deemed useful to investors. Forecasted full year adjusted diluted earnings per share is an important financial measure that management believes is useful to investors as it is representative of the Company's expectation for the performance of its core business operations.

Low End Earnings
Per Share

High End Earnings
Per Share

Forecasted full year GAAP diluted earnings per share

$

3.75

$

4.05

Forecasted Adjustments:

  Impairment, restructuring and other special items, net (1)

1.45

1.45

Acquisition-related intangible amortization expense, net

0.85

0.85

Forecasted full year adjusted diluted earnings per share

$

6.05

$

6.35

(1) Impairment, restructuring and other special items, net do not include the impact of any potential future mark-to-market pension and other postretirement remeasurement adjustments, because the amounts will not be known until incurred.

SOURCE The Timken Company

Original source text

BILLERICA, Mass.--(BUSINESS WIRE)--Bruker Corporation (Nasdaq: BRKR) today announced financial results for the three and six months ended June 30, 2026.

Frank H. Laukien, Bruker’s President and CEO, commented: “We returned to organic revenue growth in the second quarter and our Scientific Instruments segment achieved 10% organic bookings growth year-over-year. Our focus on cost and profitability resulted in solid margin expansion and non-GAAP EPS growth in the quarter. In particular, we achieved strong order bookings growth for our differentiated products and solutions in the semiconductor tools, energy research and biopharma markets. In our academic and medical research business, US academic demand remained soft in Q2, while aca/gov bookings in Europe and China were up strongly. We are gaining confidence in a gradual market recovery, and we anticipate significant organic margin expansion and non-GAAP EPS growth not only this year, but in 2027 as well.”

Second Quarter 2026 (Q2-26) Financial Results

Bruker’s revenues for the second quarter of 2026 were $838.5 million, an increase of 5.2% compared to $797.4 million in the second quarter of 2025. In Q2-26, revenues increased organically yoy by 2.8%, or 3.4% excluding tariff refunds. Growth from acquisitions was 1.5%, with constant-exchange rate (CER) growth of 4.3%, while foreign currency translation had a favorable impact of 0.9% yoy.

Q2-26 Bruker Scientific Instruments (BSI) revenues of $767.3 million increased 4.7% yoy, with organic revenue increasing by 2.3%. Q2-26 Bruker Energy & Supercon Technologies (BEST) revenues of $74.2 million increased 11.9% yoy, with an organic revenue increase of 8.9%, net of intercompany eliminations.

Q2-26 GAAP operating loss was $(65.3) million, compared to GAAP operating income of $11.9 million in the second quarter of 2025. Second quarter 2026 GAAP financial results include non-cash goodwill impairment charges of $134.9 million. Bruker’s Q2-26 non-GAAP operating income was $118.5 million, compared to $72.0 million in the second quarter of 2025, and Q2-26 non-GAAP operating margin was 14.1%, compared to 9.0% in the second quarter of 2025.

Q2-26 GAAP diluted loss per share was $(0.41), compared to diluted earnings per share of $0.05 in the second quarter of 2025. Q2-26 non-GAAP diluted EPS was $0.49, compared to $0.32 in the second quarter of 2025.

First Half 2026 Financial Results

For the first half of 2026, Bruker’s revenues were $1.7 billion, an increase of 3.9% compared to $1.6 billion in the first half of 2025. In the first half of 2026, revenues decreased organically by 0.8% yoy, while growth from acquisitions was 2.0%, CER growth was 1.2%, and foreign currency translation had a favorable impact of 2.7%.

In the first half of 2026, BSI revenues of $1.5 billion increased 3.3% yoy, with revenue decreasing by 1.4% organically. First half 2026 BEST revenues of $141.0 million increased 12.3% yoy, with organic growth of 6.1%, net of intercompany eliminations.

In the first half of 2026, GAAP operating loss was $(55.1) million, which includes the impact of impairment charges noted above, compared to GAAP operating income of $43.7 million in the first half of 2025. Bruker's non-GAAP operating income in the first half of 2026 was $202.7 million, compared to $173.7 million in the first half of 2025. Bruker’s non-GAAP operating margin in the first half of 2026 improved to 12.2%, compared to 10.9% in the first half of 2025.

First half 2026 GAAP diluted loss per share was $(0.39), compared to diluted earnings per share of $0.16 in the first half of 2025. First half 2026 non-GAAP diluted EPS was $0.80, compared to $0.78 in the first half of 2025, including a currency headwind of 5 cents.

Updating Fiscal Year 2026 (FY26) Financial Outlook for Currency and Tax Only

Bruker now expects FY26 revenues of $3.54 to $3.57 billion, compared to FY25 revenues of $3.44 billion, with 3% to 4% year-over-year reported revenue growth, including:

Organic revenue growth of 1% to 2%, M&A revenue growth of approximately 1.5%, CER revenue growth of 2.5% to 3.5%, and Foreign currency translation revenue tailwind of approximately 0.5% (previously 1.5%). Bruker continues to expect FY26 non-GAAP EPS of $2.10 to $2.15 compared to $1.83 in FY25, an increase of 15% to 17% year-over-year, now at an effective non-GAAP tax rate of 27.5%. This includes a currency headwind of approximately $0.10, or 5%. Our FY26 revenue and non-GAAP EPS guidance is based on foreign currency exchange rates as of June 30, 2026.

For the Company’s outlook for 2026 organic revenue growth, M&A revenue growth, constant exchange rate revenue growth, and constant exchange rate non-GAAP EPS growth, and non-GAAP EPS, each of which are forward-looking non-GAAP measures, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a description of items excluded from our expected non-GAAP EPS.

Quarterly Earnings Call

Bruker will host a conference call and webcast to discuss its financial results, business outlook, and related corporate and financial matters today, August 4, 2026, at 9:00 am Eastern Daylight Time. To listen to the webcast, investors can go to https://ir.bruker.com and click on the “Q2 2026 Earnings Webcast” hyperlink. A slide presentation will be referenced during the webcast and will be posted to our Investor Relations website shortly before the webcast begins. Investors can also listen to the earnings webcast via telephone by dialing 1-888-437-2685 (U.S. toll free) or +1-412-317-6702 (international) and referencing “Bruker’s Second Quarter 2026 Earnings Conference Call.”

Bruker is enabling investors to pre-register for the earnings conference call so that they can expedite their entry into the call and avoid the need to wait for a live operator. In order to pre-register for the call, investors can visit https://dpregister.com/sreg/10210859/10488dbff5c and enter their contact information. Investors will then be issued a personalized phone number and PIN to dial into the live conference call. Individuals can pre-register any time prior to the start of the conference call.

A telephone replay of the conference call will be available by dialing 1-855-669-9658 (U.S. toll free) or +1-412-317-0088 (international) and entering replay access code: 2701950. The replay will be available beginning one hour after the end of the conference call through September 4, 2026.

About Bruker Corporation – Leader of the Post-Genomic Era (Nasdaq: BRKR)

Bruker is enabling scientists and engineers to make breakthrough post-genomic discoveries and develop new applications that improve the quality of human life. Bruker’s high-performance scientific instruments and high value analytical and diagnostic solutions enable scientists to explore life and materials at molecular, cellular, and microscopic levels. In close cooperation with our customers, Bruker is enabling innovation, improved productivity, and customer success in post-genomic life science molecular and cell biology research, in specialty diagnostics, in applied and biopharma applications, in microscopy and nanoanalysis, as well as in industrial and cleantech research, and next-gen semiconductor metrology in support of AI. Bruker offers differentiated, high-value life science and diagnostics systems and solutions in preclinical imaging, clinical phenomics research, proteomics and multiomics, spatial and single-cell biology, functional structural and condensate biology, clinical microbiology and molecular diagnostics, as well as in the semiconductor industry. For more information, please visit www.bruker.com.

Use of Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP), we use the following non-GAAP financial measures: non-GAAP gross profit; non-GAAP gross profit margin; non-GAAP operating income; non-GAAP operating income margin; non-GAAP SG&A expense; non-GAAP interest and other income (expense), net; non-GAAP profit before income taxes; non-GAAP income tax rate; non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP measures exclude costs related to restructuring actions, impairments, acquisition and related integration expenses, amortization of acquired intangible assets, and other non-operational costs.

We also may refer to CER currency revenue growth, CER non-GAAP EPS growth, and free cash flow which are also non-GAAP financial measures. We define the term CER currency revenue as GAAP revenue excluding the effect of changes in foreign currency translation rates. We define the term CER EPS as non-GAAP EPS excluding the effect of changes in foreign currency translation rates. We define free cash flow as net cash provided by operating activities, less additions to property, plant, and equipment. We believe free cash flow is a useful measure to evaluate our business because it indicates the amount of cash generated after additions to property, plant, and equipment that is available for, among other things, acquisitions, investments in our business, repayment of debt and return of capital to shareholders.

The presentation of these non-GAAP financial measures is not intended to be a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP and may be different from non-GAAP financial measures used by other companies, and therefore, may not be comparable among companies. We believe these non-GAAP financial measures provide meaningful supplemental information regarding our performance. However, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included in the accompanying tables, and not to rely on any single financial measure to evaluate our business. Specifically, management believes that the non-GAAP measures mentioned above provide relevant and useful information which is widely used by analysts, investors and competitors in our industry, as well as by our management, in assessing both consolidated and business unit performance.

We use these non-GAAP financial measures to evaluate our period-over-period operating performance because our management believes this provides a more comparable measure of our continuing business by adjusting for certain items that are not reflective of the underlying performance of our business. These measures may also be useful to investors in evaluating the underlying operating performance of our business and forecasting future results. We regularly use these non-GAAP financial measures internally to understand, manage, and evaluate our business results and make operating decisions. We also measure our employees and compensate them, in part, based on certain non-GAAP measures and use this information for our planning and forecasting activities.

Additional information relating to the non-GAAP financial measures used in this press release and reconciliations to the most directly comparable GAAP financial measures are provided in the tables accompanying this press release following our GAAP financial statements.

With respect to our outlook for 2026 non-GAAP organic revenue, non-GAAP M&A revenue, and non-GAAP EPS, we are not providing the most directly comparable GAAP financial measures or corresponding reconciliations to such GAAP financial measures on a forward-looking basis, because we are unable to predict with reasonable certainty certain items that may affect such measures calculated and presented in accordance with GAAP without unreasonable effort. Our expected non-GAAP organic revenue and EPS ranges exclude primarily the future impact of restructuring actions, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments. These reconciling items are uncertain, depend on various factors outside our management’s control and could significantly impact, either individually or in the aggregate, our future revenues and EPS presented in accordance with GAAP.

Forward-Looking Statements

Any statements contained in this press release which do not describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our fiscal year 2026 and beyond financial outlook, our outlook for reported revenue growth, organic revenue growth, M&A revenue growth contributions, CER currency revenue growth, margin improvements, foreign currency translation revenue impact, EPS, non-GAAP EPS, and CER Non-GAAP EPS growth; effects of academic market and tariff dynamics on our future financial results and our ability to mitigate such effects in the future; management’s expectations for the impact of foreign currency and acquisitions; the effects of our expanded cost savings initiatives; and for future financial and operational performance and business outlook; future economic conditions; and statements found under the “Use of Non-GAAP Financial Measures” section of this release. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, including, but not limited to, (1) the length and severity of any recession and the impact on global economic conditions, (2) the impact of supply chain challenges, including inflationary pressures, (3) the impact of geopolitical instability and tensions and any sanctions, including any reduction in natural gas exports from Russia resulting from the ongoing conflict with Ukraine and resulting market disruptions, such as higher prices for and reduced availability of key metals used in our products, (4) the conflict in Israel, Palestine and surrounding areas and hostilities in the Middle East, including heightened tensions in Iran, and the possible expansion of such conflicts and potential geopolitical consequences and global instability, (5) the ongoing tensions between the United States and China, tariff increases or uncertainties and trade policy changes and restrictions, and the increasing potential of conflict involving countries in Asia that are critical to our supply chain operations, such as Taiwan and China, (6) continued volatility in the capital markets, (7) the impact of increased interest rates, (8) the integration and assumption of liabilities of businesses we have acquired or may acquire in the future, (9) our restructuring and cost-control initiatives, changing technologies, product development and market acceptance of our products, (10) the cost and pricing of our products, manufacturing and outsourcing, competition, dependence on collaborative partners, key suppliers and third party distributors, capital spending and government funding policies, (11) changes in governmental regulations, intellectual property rights, and litigation, (12) exposure to foreign currency fluctuations, (13) the impact of foreign currency exchange rates, (14) our ability to service our debt obligations and fund our anticipated cash needs, (15) the effect of a concentrated ownership of our common stock, (16) the loss of key personnel, (17) payment of future dividends, (18) the impact (if any) of macroeconomic issues, including uncertainties related to trade policies or tariff regulations, and (19) other risk factors discussed from time to time in our filings with the Securities and Exchange Commission, or SEC. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2025, as may be updated by our quarterly reports on Form 10-Q. We expressly disclaim any intent or obligation to update these forward-looking statements other than as required by applicable law.

Bruker Corporation

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in millions, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Revenue

$

838.5

$

797.4

$

1,661.9

$

1,598.8

Cost of revenue

422.5

439.5

866.1

849.7

Gross profit

416.0

357.9

795.8

749.1

Operating expenses:

Selling, general and administrative

238.9

231.4

481.0

456.8

Research and development

94.3

100.2

195.6

197.3

Goodwill impairment charge

134.9

—

134.9

—

Other charges, net

13.2

14.4

39.4

51.3

Total operating expenses

481.3

346.0

850.9

705.4

Operating (loss) income

(65.3

)

11.9

(55.1

)

43.7

Interest and other income (expense), net

24.6

(11.4

)

36.3

(18.1

)

(Loss) income before income taxes, equity in income of unconsolidated investees, net of tax, and noncontrolling interests in consolidated subsidiaries (a)

(40.7

)

0.5

(18.8

)

25.6

Income tax provision (benefit)

14.2

(3.1

)

16.7

5.6

Equity in income of unconsolidated investees, net of tax

4.0

0.6

0.3

1.0

Consolidated net (loss) income

(50.9

)

4.2

(35.2

)

21.0

Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries

1.1

(3.4

)

2.4

(4.0

)

Net (loss) income attributable to Bruker Corporation

$

(52.0

)

$

7.6

$

(37.6

)

$

25.0

Dividends on Series A Mandatory Convertible Preferred Stock

10.9

—

21.8

—

Net (loss) income attributable to Bruker Corporation common shareholders

$

(62.9

)

$

7.6

$

(59.4

)

$

25.0

Net (loss) income per common share attributable to Bruker Corporation shareholders:

Basic

$

(0.41

)

$

0.05

$

(0.39

)

$

0.16

Diluted

$

(0.41

)

$

0.05

$

(0.39

)

$

0.16

Weighted average common shares outstanding:

Basic

152.3

151.6

152.2

151.6

Diluted

152.3

151.7

152.2

151.8

Bruker Corporation

REVENUE

(unaudited and in millions)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Revenue by Segment:

Bruker BioSpin

$

195.7

$

195.3

$

393.2

$

403.1

Bruker CALID

310.3

285.8

626.6

565.9

Bruker Nano

261.3

252.1

507.3

508.7

BSI Revenue Total

767.3

733.2

1,527.1

1,477.7

BEST

74.2

66.3

141.0

125.6

Eliminations

(3.0

)

(2.1

)

(6.2

)

(4.5

)

Total revenue

$

838.5

$

797.4

$

1,661.9

$

1,598.8

Revenue by End Customer Geography:

United States

$

248.2

$

222.9

$

470.1

$

440.3

Europe

308.7

272.5

630.3

557.7

Asia Pacific

217.3

242.1

426.0

474.7

Other

64.3

59.9

135.5

126.1

Total revenue

$

838.5

$

797.4

$

1,661.9

$

1,598.8

Bruker Corporation
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited and in millions, except per share data)

The tables below present the GAAP to Non-GAAP reconciliation for the three and six months ended June 30, 2026, and June 30, 2025, respectively, for the following measures: Gross Profit and Gross Profit Margin; Selling, General and Administrative (“SG&A”) Expenses; Operating (loss) income and Operating (loss) income margin; Interest and Other Income (Expense), net; Profit (loss) before Income Taxes; Net Income (loss) Attributable to Bruker Corporation Common Shareholders; Diluted net income (loss) per common share; and Income Tax rate.

Gross Profit

Gross Profit Margin

SG&A Expenses

Operating (Loss) income

Operating (Loss) income Margin

Interest and other income (expense), net

(Loss) profit before income tax (a)

Net (loss) income attributable to Bruker Corporation Common Shareholders

Diluted net (loss) income per common share attributable to Bruker Corporation Common Shareholders (b)

Income Tax Rate

Three Months Ended June 30, 2026:

GAAP

$416.0

49.6%

$238.9

$(65.3)

(7.8)%

$24.6

$(40.7)

$(62.9)

$(0.41)

(34.9)%

Non-GAAP adjustments:

Restructuring costs

0.3

—

—

4.2

0.5%

—

4.2

4.2

0.03

—

Acquisition-related costs

0.8

0.1%

—

4.4

0.5%

—

4.4

4.4

0.03

—

Purchased intangibles amortization

18.3

2.2%

(15.0)

33.3

4.0%

—

33.3

33.3

0.22

—

Goodwill and Intangible assets impairment charges

—

—

—

134.9

16.1%

—

134.9

134.9

0.88

—

Lease and fixed asset impairment charges

0.3

—

—

2.9

0.3%

—

2.9

2.9

0.02

—

Unrealized gain on equity interest investment

—

—

—

—

—

(27.6)

(27.6)

(27.6)

(0.18)

—

Other costs

0.9

0.2%

—

4.1

0.5%

1.5

5.6

1.4

—

—

Tax effect of above Non-GAAP adjustments

—

—

—

—

—

—

—

(15.0)

(0.10)

56.0%

Other Discrete Items

—

—

—

—

—

—

—

—

—

3.9%

Total Non-GAAP adjustments

20.6

2.5%

(15.0)

183.8

21.9%

(26.1)

157.7

138.5

0.90

59.9%

Non-GAAP

$436.6

52.1%

$223.9

$118.5

14.1%

$(1.5)

$117.0

$75.6

$0.49

25.0%

Three Months Ended June 30, 2025:

GAAP

$357.9

44.9%

$231.4

$11.9

1.5%

$(11.4)

$0.5

$7.6

$0.05

(620.0)%

Non-GAAP adjustments:

Restructuring costs

4.4

0.6%

—

7.3

0.9%

—

7.3

7.3

0.05

—

Acquisition-related costs

2.8

0.4%

—

5.5

0.7%

—

5.5

5.5

0.04

—

Purchased intangibles amortization

15.0

1.9%

(16.5)

31.5

4.0%

—

31.5

31.5

0.21

—

Acquisition-related litigation charges

—

—

—

4.0

0.5%

—

4.0

4.0

0.03

—

Other costs

7.1

0.8%

—

11.8

1.4%

0.4

12.2

9.9

0.07

—

Tax effect of above Non-GAAP adjustments

—

—

—

—

—

—

—

(17.5)

(0.13)

643.6%

Other Discrete Items

—

—

—

—

—

—

—

—

—

—

Total Non-GAAP adjustments

29.3

3.7%

(16.5)

60.1

7.5%

0.4

60.5

40.7

0.27

643.6%

Non-GAAP

$387.2

48.6%

$214.9

$72.0

9.0%

$(11.0)

$61.0

$48.3

$0.32

23.6%

Bruker Corporation
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued
(unaudited and in millions, except per share data)

Gross Profit

Gross Profit Margin

SG&A Expenses

Operating (Loss) Income

Operating (Loss) income Margin

Interest and other income (expense), net

(Loss) Profit before income tax (a)

Net (loss) income attributable to Bruker Corporation Common Shareholders

Diluted net (loss) income per common share attributable to Bruker Corporation Common Shareholders (b)

Income Tax Rate

Six Months Ended June 30, 2026

GAAP

$795.8

47.9%

$481.0

$(55.1)

(3.3)%

$36.3

$(18.8)

$(59.4)

$(0.39)

(88.8)%

Non-GAAP adjustments:

Restructuring costs

9.8

0.6%

—

22.0

1.3%

—

22.0

22.0

0.14

—

Acquisition-related costs

4.2

0.3%

—

11.9

0.7%

—

11.9

11.9

0.08

—

Purchased intangibles amortization

35.0

2.1%

(30.7)

65.8

4.0%

—

65.8

65.8

0.43

—

Gain on remeasurement of previously held equity interest

—

—

—

—

—

(12.2)

(12.2)

(12.2)

(0.08)

—

Goodwill and Intangible assets impairment charges

0.7

—

—

137.6

8.3%

—

137.6

137.6

0.90

—

Lease and fixed asset impairment charges

2.1

0.1%

—

15.6

0.9%

—

15.6

15.6

0.10

—

Unrealized gain on equity interest investment

—

—

—

—

—

(27.6)

(27.6)

(27.6)

(0.18)

—

Other costs

0.8

0.1%

—

4.9

0.3%

0.3

5.2

4.2

0.03

—

Tax effect of above Non-GAAP adjustments

—

—

—

—

—

—

—

(35.3)

(0.23)

112.3%

Other Discrete Items

—

—

—

—

—

—

—

—

—

2.6%

Total Non-GAAP adjustments

52.6

3.2%

(30.7)

257.8

15.5%

(39.5)

218.3

182.0

1.19

114.9%

Non-GAAP

$848.4

51.1%

$450.3

$202.7

12.2%

$(3.2)

$199.5

$122.6

$0.80

26.1%

Six Months Ended June 30, 2025:

GAAP

$749.1

46.9%

$456.8

$43.7

2.7%

$(18.1)

$25.6

$25.0

$0.16

21.9%

Non-GAAP adjustments:

Restructuring costs

7.0

0.4%

—

17.5

1.1%

—

17.5

17.5

0.12

—

Acquisition-related costs

5.1

0.3%

—

14.1

0.9%

—

14.1

14.1

0.09

—

Purchased intangibles amortization

29.0

1.8%

(29.6)

58.8

3.7%

—

58.8

58.8

0.39

—

Acquisition-related litigation charges

—

—

—

22.6

1.4%

—

22.6

22.6

0.15

—

Other costs

7.9

0.5%

—

17.0

1.1%

2.4

19.4

16.7

0.11

—

Tax effect of above Non-GAAP adjustments

—

—

—

—

—

—

—

(35.7)

(0.24)

4.2%

Other Discrete Items

—

—

—

—

—

—

—

—

—

—

Total Non-GAAP adjustments

49.0

3.0%

(29.6)

130.0

8.2%

2.4

132.4

94.0

0.62

4.2%

Non-GAAP

$798.1

49.9%

$427.2

$173.7

10.9%

$(15.7)

$158.0

$119.0

$0.78

26.1%

Bruker Corporation
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued
(unaudited and in millions, except per share data)

The tables below present the GAAP to Non-GAAP reconciliation for CER currency revenue, organic revenue, free cash flow, and weighted average common shares outstanding (Diluted):

Total Bruker

Bruker Scientific Instruments (a)

BEST

Three Months Ended June 30,

2026

yoy

growth

(c)

2025

2026

yoy

growth

(c)

2025

2026

yoy

growth

(c)

2025

GAAP revenue

$

838.5

5.2%

$

797.4

$

767.3

4.7%

$

733.2

$

71.2

10.9%

$

64.2

Effect of changes in foreign currency translation rates

7.0

23.4

5.7

21.2

1.3

2.2

Non-GAAP CER currency revenue

831.5

4.3%

774.0

761.6

3.9%

712.0

69.9

8.9%

62.0

Acquisitions (b)

11.4

29.6

11.4

29.6

—

—

Non-GAAP Organic revenue

$

820.1

2.8%

$

744.4

$

750.2

2.3%

$

682.4

$

69.9

8.9%

$

62.0

Total Bruker

Bruker Scientific Instruments (a)

BEST

Six Months Ended June 30,

2026

yoy

growth

(c)

2025

2026

yoy

growth

(c)

2025

2026

yoy

growth

(c)

2025

GAAP revenue

$

1,661.9

3.9%

$

1,598.8

$

1,527.1

3.3%

$

1,477.7

$

134.8

11.3%

$

121.1

Effect of changes in foreign currency translation rates

43.6

13.0

37.3

12.0

6.3

1.0

Non-GAAP CER currency revenue

1,618.3

1.2%

1,585.8

1,489.8

0.8%

1,465.7

128.5

6.1%

120.1

Acquisitions (b)

32.2

98.8

32.2

98.8

—

—

Non-GAAP Organic revenue

$

1,586.1

(0.8)%

$

1,487.0

$

1,457.6

(1.4)%

$

1,366.9

$

128.5

6.1%

$

120.1

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net cash used in operating activities

$

(77.4

)

$

(127.5

)

$

(6.2

)

$

(62.5

)

Non-GAAP adjustments:

Purchases of property, plant and equipment and intangible assets

(28.8

)

(21.3

)

(53.0

)

(47.3

)

Non-GAAP free cash flow

$

(106.2

)

$

(148.8

)

$

(59.2

)

$

(109.8

)

Bruker Corporation

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES - Continued

(unaudited and in millions, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

GAAP Weighted Average Common Shares Outstanding (Diluted)

152.3

151.7

152.2

151.8

Stock options, restricted stock units, and employee stock purchase plan (a)

0.5

—

0.5

—

Series A Mandatory Convertible Preferred Stock (b)

—

—

—

—

Non-GAAP Weighted Average Common Shares Outstanding (Diluted)

152.8

151.7

152.7

151.8

Bruker Corporation

PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)

June 30,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$

184.9

$

298.8

Accounts receivable, net

545.9

544.9

Inventories

1,120.1

1,094.6

Other current assets

374.1

274.2

Total current assets

2,225.0

2,212.5

Property, plant and equipment, net

714.1

744.8

Goodwill, intangibles, net and other long-term assets

3,113.8

3,284.1

Total assets

$

6,052.9

$

6,241.4

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt and finance lease obligations

$

10.1

$

16.6

Accounts payable

200.2

215.9

Current portion of deferred revenue and customer advances

444.6

441.3

Other current liabilities

549.8

605.4

Total current liabilities

1,204.7

1,279.2

Long-term debt

1,814.7

1,852.5

Other long-term liabilities

597.7

599.4

Redeemable noncontrolling interests

35.6

36.8

Total shareholders' equity

2,400.2

2,473.5

Total liabilities, redeemable noncontrolling interests and shareholders' equity

$

6,052.9

$

6,241.4

Bruker Corporation

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in millions)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Cash flows from operating activities:

Consolidated net (loss) income

$

(50.9

)

$

4.2

$

(35.2

)

$

21.0

Adjustments to reconcile net (loss) income to cash flows from operating activities:

Depreciation and amortization

58.0

56.1

116.3

106.5

Asset impairments

141.8

7.5

157.7

10.3

Other non-cash expenses (income), net

(29.4

)

(35.0

)

(23.9

)

(49.3

)

Changes in operating assets and liabilities, net of acquisitions and divestitures

(196.9

)

(160.3

)

(221.1

)

(151.0

)

Net cash used in operating activities

(77.4

)

(127.5

)

(6.2

)

(62.5

)

Cash flows from investing activities:

Purchases of property, plant and equipment and intangible assets

(28.8

)

(21.3

)

(53.0

)

(47.3

)

Cash paid for acquisitions, net of cash acquired

—

(68.4

)

(16.0

)

(69.5

)

Other investing activities, net

3.5

(1.4

)

4.0

(0.4

)

Net cash used in investing activities

(25.3

)

(91.1

)

(65.0

)

(117.2

)

Cash flows from financing activities:

Repayments of revolving lines of credit

(25.0

)

(51.2

)

(25.0

)

(219.1

)

Proceeds from revolving lines of credit

195.0

168.3

195.0

308.2

Repayment of long-term debt

(2.3

)

(14.6

)

(183.6

)

(22.3

)

Proceeds from long-term debt

—

—

—

2.9

Payment of dividends to shareholders

(18.5

)

(7.6

)

(37.1

)

(15.3

)

Other financing activities, net

—

0.6

(5.0

)

(10.1

)

Net cash provided by (used in) financing activities

149.2

95.5

(55.7

)

44.3

Effect of exchange rate changes on cash, cash equivalents and restricted cash

5.0

31.6

12.9

44.9

Net decrease in cash, cash equivalents and restricted cash

51.5

(91.5

)

(114.0

)

(90.5

)

Cash, cash equivalents and restricted cash at beginning of period

137.6

187.7

303.1

186.7

Cash, cash equivalents and restricted cash at end of period

$

189.1

$

96.2

$

189.1

$

96.2

Original source text

NEW YORK--(BUSINESS WIRE)--American Express Global Business Travel, which is operated by Global Business Travel Group, Inc. (NYSE: GBTG) ("Amex GBT" or the "Company"), a leading software and services company for travel, expense and meetings & events, today reported second quarter 2026 financial results.

(in millions, except percentages; unaudited)

Three Months Ended

YOY

Inc / (Dec)

June 30,

2026

2025

Revenue

$

870

$

631

38

%

Total operating expenses

$

846

$

597

42

%

Gross Profit

$

494

$

371

33

%

Gross Profit Margin

57

%

59

%

(200)bps

Net income

$

17

$

15

14

%

Net income margin

2

%

2

%

(40)bps

Adjusted Gross Profit

$

514

$

389

32

%

Adjusted Gross Profit Margin

59

%

62

%

(250)bps

Adjusted Operating Expenses

$

696

$

500

39

%

Adjusted EBITDA

$

178

$

133

34

%

Adjusted EBITDA Margin

21

%

21

%

(60)bps

Net cash from operating activities

$

142

$

57

153

%

Free Cash Flow

$

103

$

27

281

%

Net Debt / LTM Adjusted EBITDA

1.7x

1.6x

A reconciliation of non-GAAP financial measures to the most comparable GAAP measure is provided at the end of this release.

Results include the impact of acquisitions for Q2 2026 only.

Paul Abbott, Chief Executive Officer:

"We delivered strong growth and commercial and product success. Total New Wins Value accelerated to $3.5 billion, with double-digit SME growth and major wins with Google, Koch and Pfizer, while maintaining an impressive 95% customer retention rate. Our new product innovations are clearly resonating with customers, including our proprietary agent-to-agent architecture, our Egencia AI connector in Claude and enhancements for Complete by SAP Concur and Amex GBT."

Business Highlights

Strong growth and financial performance. Delivered revenue growth of 38% with Adjusted Gross Profit Margin of 59% and Adjusted EBITDA of $178 million. Continued commercial progress. LTM Total New Wins Value accelerated to $3.5 billion, including major new wins with Google, Koch and Pfizer. Maintained strong customer retention rate of 95%, including CWT. Strong momentum in SME, with LTM SME New Wins Value of $2.3 billion, up 11% year-over-year. Product innovation. Launched Egencia AI connector in Claude, one of the business travel industry's first agentic integrations enabling both travelers and enterprise AI agents to book and manage policy-compliant air and hotel transactions without leaving the tools they already work in. Also expanded Egencia's conversational AI into Google Chat and a conversational AI pilot in Microsoft Teams for Neo customers. Egencia integration with Concur Expense is now live for all customers. SAP Strategic Alliance. 83% of eligible joint customers are now using Complete by SAP Concur and Amex GBT, the new, AI-powered flagship solution for travel and expense. A new set of innovations for Complete have been launched that help travelers navigate disruptions more easily, give travel managers greater visibility into program performance and make it easier for organizations to capture more value from their travel investments. Second Quarter 2026 Operational & Financial Highlights
(Changes compared to prior year period unless otherwise noted)

TTV growth of 57% and Transaction Growth of 45%. Revenue of $870 million increased 38%. Within this, Travel Revenue increased 38% due to acquisition impacts, growth in business travel demand and share gains. Product and Professional Services Revenue increased 38%. Excluding the impact of acquisitions, revenue growth was 10%. Total operating expenses of $846 million increased 42%, primarily due to the impact of acquisitions, increased cost of revenue to drive growth and increased investments in technology, content, sales and marketing, partially offset by $18 million of cost transformation benefits and $14 million of CWT net synergies, which was in line with expectations. Additionally, there were restructuring costs related to achievement of CWT synergies and broader cost transformation and higher depreciation and amortization. Net income of $17 million increased 14%. Revenue growth and higher benefit from income taxes were offset by higher operating expenses, including restructuring costs related to achieving CWT synergies and broader cost transformation initiatives, and unfavorable movement on earnout derivative liabilities. Net cash from operating activities of $142 million increased 153% primarily due to favorable working capital timing and lower cash taxes. Free Cash Flow of $103 million increased 281%, due to higher net cash from operating activities, partially offset by increased investments in purchase of property and equipment. Shareholder approval for the proposed acquisition of the Company by Long Lake Management (the "Merger") was obtained on August 3, 2026. The Merger is expected to close in the second half of 2026, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals.

Glossary of Terms

See the "Glossary of Terms" for the definitions of certain terms used within this press release.

About American Express Global Business Travel

American Express Global Business Travel (Amex GBT) is a leading software and services company for travel, expense, and meetings & events. We have built the most valuable marketplace in travel with the most comprehensive and competitive content. A choice of solutions brought to you through a strong combination of technology and people, delivering the best experiences. With travel professionals and business partners in more than 140 countries, our solutions deliver savings, flexibility, and service from a brand you can trust – Amex GBT.

Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on LinkedIn and Instagram.

GLOBAL BUSINESS TRAVEL GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended
June 30,

(in $ millions, except share and per share data)

2026

2025

Revenue

$

870

$

631

Costs and expenses:

Cost of revenue (excluding depreciation and amortization shown separately below)

356

242

Sales and marketing

123

111

Technology and content

160

120

General and administrative

110

69

Restructuring and other exit charges

41

12

Depreciation and amortization

56

43

Total operating expenses

846

597

Operating income

24

34

Interest income

1

2

Interest expense

(25

)

(23

)

Fair value movement on earnout derivative liabilities

6

32

Other income (loss), net

9

(11

)

Income before income taxes

15

34

Provision for income taxes

(2

)

(21

)

Share of income from equity method investments

4

2

Net income

17

15

Less: net income attributable to non-controlling interests in subsidiaries

2

2

Net income attributable to the Company’s Class A common stockholders

$

15

$

13

Basic income per share attributable to the Company’s Class A common stockholders

$

0.03

$

0.03

Weighted average number of shares outstanding - Basic

513,798,712

470,877,173

Diluted income per share attributable to the Company’s Class A common stockholders

$

0.03

$

0.03

Weighted average number of shares outstanding - Diluted

520,372,250

474,839,915

GLOBAL BUSINESS TRAVEL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in $ millions, except share and per share data)

June 30,
2026

December 31,
2025

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

$

518

$

434

Accounts receivable (net of allowance for credit losses of $11 and $9 as of June 30, 2026 and December 31, 2025, respectively)

968

869

Due from affiliates

66

51

Prepaid expenses and other current assets

237

215

Total current assets

1,789

1,569

Property and equipment, net

308

308

Equity method investments

48

43

Goodwill

1,663

1,671

Other intangible assets, net

800

851

Operating lease right-of-use assets

60

66

Deferred tax assets

318

298

Other non-current assets

91

110

Total assets

$

5,077

$

4,916

Liabilities and shareholders’ equity

Current liabilities:

Accounts payable

$

619

$

515

Due to affiliates

36

25

Accrued expenses and other current liabilities

758

757

Current portion of operating lease liabilities

23

26

Current portion of long-term debt

61

58

Total current liabilities

1,497

1,381

Long-term debt, net of unamortized debt discount and debt issuance costs

1,451

1,360

Deferred tax liabilities

98

99

Pension liabilities

148

163

Long-term operating lease liabilities

64

62

Earnout derivative liabilities

—

37

Other non-current liabilities

128

153

Total liabilities

3,386

3,255

Commitments and Contingencies

Redeemable non-controlling interest

46

49

Shareholders’ equity:

Class A common stock (par value $0.0001; 3,000,000,000 shares authorized; 547,016,649 and 538,342,297 shares issued, 522,285,480 and 521,088,517 shares outstanding as of June 30, 2026 and December 31, 2025, respectively)

—

—

Additional paid-in capital

3,293

3,277

Accumulated deficit

(1,399

)

(1,466

)

Accumulated other comprehensive loss

(80

)

(75

)

Treasury shares, at cost (24,731,169 and 17,253,780 shares as of June 30, 2026 and December 31, 2025, respectively)

(175

)

(128

)

Total equity of the Company’s shareholders

1,639

1,608

Equity attributable to non-controlling interest in subsidiaries

6

4

Total shareholders’ equity

1,645

1,612

Total liabilities, redeemable non-controlling interest and shareholders’ equity

$

5,077

$

4,916

GLOBAL BUSINESS TRAVEL GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six months ended
June 30,

(in $ millions)

2026

2025

Operating activities:

Net income

$

71

$

90

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization

116

83

Deferred tax (benefit) charge

(26

)

10

Equity-based compensation

36

39

Allowance for credit losses

6

3

Loss on early extinguishment of debt

—

2

Fair value movement on earnout derivative liabilities

(37

)

(106

)

Other, net

(6

)

18

Changes in working capital:

Accounts receivable

(115

)

(123

)

Prepaid expenses and other current assets

(28

)

(3

)

Due from affiliates

(15

)

(13

)

Due to affiliates

11

(6

)

Accounts payable, accrued expenses and other current liabilities

129

98

Defined benefit pension funding

(15

)

(13

)

Proceeds from termination of interest rate swap contracts

—

31

Net cash from operating activities

127

110

Investing activities:

Business acquisition, net of cash and restricted cash acquired

10

—

Purchase of property and equipment

(76

)

(57

)

Proceeds from foreign exchange forward contracts

—

27

Net cash used in investing activities

(66

)

(30

)

Financing activities:

Proceeds from senior secured term loans

132

99

Repayment of senior secured term loans

(40

)

(106

)

Repurchase of common shares

(47

)

(1

)

Contributions from ESPP

4

4

Payment of taxes withheld on vesting of equity awards

(28

)

(41

)

Other

(1

)

(3

)

Net cash from (used in) financing activities

20

(48

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(8

)

25

Net increase in cash, cash equivalents and restricted cash

73

57

Cash, cash equivalents and restricted cash, beginning of period

479

561

Cash, cash equivalents and restricted cash, end of period

$

552

$

618

Supplemental cash flow information:

Cash paid for income taxes (net of refunds)

$

—

$

29

Cash paid for interest (net of interest received)

$

48

$

50

Issuance of shares to settle contingent consideration

$

4

$

—

Non-cash additions for operating lease right-of-use assets

$

10

$

2

Non-cash additions for finance lease

$

—

$

1

Additional Information and Disclosures

Glossary of Terms

AI refers to Artificial Intelligence. CWT refers to CWT Holdings, LLC. Customer retention rate is calculated based on traded Total Transaction Value in the quarter versus the same period in the prior year. LTM refers to the last twelve months ended June 30, 2026. GMN refers to Global & Multinational Enterprises and SME refers to Small and Medium-sized Enterprises. For organizational management purposes, Amex GBT divides the customer base into these two general categories, generally on the basis of annual TTV, although this measure can vary by country and by customer preference. Amex GBT offers all products and services to all sizes of customer, as customers of all sizes may prefer different solutions. SME New Wins Value is calculated using expected annual Total Transaction Value (TTV) over the contract term from all SME new client wins over the last twelve months. Total New Wins Value is calculated using expected annual Total Transaction Value (TTV) over the contract term from all new client wins over the last twelve months. Total Transaction Value or TTV refers to the sum of the total price paid by travelers for air, hotel, rail, car rental and cruise bookings, including taxes and other charges applied by suppliers at point of sale, less cancellations and refunds. Transaction Growth represents year-over-year increase or decrease as a percentage of the total transactions, including air, hotel, car rental, rail or other travel-related transactions, recorded at the time of booking, and is calculated on a net basis to exclude cancellations, refunds and exchanges. To calculate year-over-year growth or decline, we compare the total number of net transactions in the comparative previous period/ year to the total number of net transactions in the current period/year in percentage terms. We have presented Transaction Growth on a net basis to exclude cancellations, refunds and exchanges as management believes this better aligns Transaction Growth with the way we measure TTV and earn revenue. Prior period Transaction Growth percentages have been recalculated and represented to conform to current period presentation. Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition, and should not be considered as an alternative, to other performance or liquidity measures derived in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and you should not consider them either in isolation or as a substitute for analyzing our results as reported under GAAP. In addition, because not all companies use identical calculations, the presentations of our non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

Management believes that these non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance or liquidity across periods. In addition, we use certain of these non-GAAP financial measures as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital investment allocations. We also use certain of our non-GAAP financial measures as indicators of our ability to generate cash to meet our liquidity needs and to assist our management in evaluating our financial flexibility, capital structure and leverage. These non-GAAP financial measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and/or to compare our performance and liquidity against that of other peer companies using similar measures.

We define Adjusted Gross Profit as revenue less cost of revenue (excluding depreciation and amortization).

We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by revenue.

We define EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization.

We define Adjusted EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization and as further adjusted to exclude costs that management believes are non-core to the underlying business of the Company, consisting of restructuring, exit and related charges, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation and related employer taxes, long-term incentive plan costs, certain corporate costs, fair value movements on earnout derivative liabilities, foreign currency gains (losses) and non-service components of net periodic pension benefit (costs).

We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.

We define Adjusted Operating Expenses as total operating expenses excluding depreciation and amortization and costs that management believes are non-core to the underlying business of the Company, consisting of restructuring, exit and related charges, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation and related employer taxes, long-term incentive plan costs and certain corporate costs.

Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are supplemental non-GAAP financial measures of operating performance that do not represent and should not be considered as alternatives to gross profit, net income (loss) or total operating expenses, as determined under GAAP. In addition, these measures may not be comparable to similarly titled measures used by other companies.

These non-GAAP measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the Company’s results or expenses as reported under GAAP. Some of these limitations are that these measures do not reflect:

changes in, or cash requirements for, our working capital needs or contractual commitments; our interest expense, or the cash requirements to service interest or principal payments on our indebtedness; our tax expense, or the cash requirements to pay our taxes; recurring, non-cash expenses of depreciation and amortization of property and equipment and definite-lived intangible assets and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future; the non-cash expense of stock-based compensation, which has been, and will continue to be for the foreseeable future, an important part of how we attract and retain our employees and a significant recurring expense in our business; restructuring, mergers and acquisition and integration costs, all of which are intrinsic to our acquisitive business model; and impact on earnings or changes resulting from matters that are non-core to our underlying business, as we believe they are not indicative of our underlying operations. Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses should not be considered as a measure of liquidity or as a measure determining discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations.

We believe that the adjustments applied in presenting Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are appropriate to provide additional information to investors about certain material non-cash and other items that management believes are non-core to our underlying business.

We use these measures as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital investment allocations. These non-GAAP measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. We also believe that Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are helpful supplemental measures to assist potential investors and analysts in evaluating our operating results across reporting periods on a consistent basis.

We define Free Cash Flow as net cash from (used in) operating activities, less cash used for additions to property and equipment.

We believe Free Cash Flow is an important measure of our liquidity. This measure is a useful indicator of our ability to generate cash to meet our liquidity demands. We use this measure to conduct and evaluate our operating liquidity. We believe it typically presents an alternate measure of cash flow since purchases of property and equipment are a necessary component of our ongoing operations and it provides useful information regarding how cash provided by operating activities compares to the property and equipment investments required to maintain and grow our platform. We believe Free Cash Flow provides investors with an understanding of how assets are performing and measures management’s effectiveness in managing cash.

Free Cash Flow is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure has limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent cash flow for discretionary expenditures. This measure should not be considered as a measure of liquidity or cash flow from operations as determined under GAAP. This measure is not a measurement of our financial performance under GAAP and should not be considered in isolation or as an alternative to net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of liquidity.

We define Net Debt as total debt outstanding consisting of the current and non-current portion of long-term debt, net of unamortized debt discount and unamortized debt issuance costs, minus cash and cash equivalents. Net Debt is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure is not a measurement of our indebtedness as determined under GAAP and should not be considered in isolation or as an alternative to assess our total debt or any other measures derived in accordance with GAAP or as an alternative to total debt. Management uses Net Debt to review our overall liquidity, financial flexibility, capital structure and leverage. Further, we believe that certain debt rating agencies, creditors and credit analysts monitor our Net Debt as part of their assessment of our business.

Reconciliation of Adjusted Gross Profit to Gross Profit:

Three months ended June 30,

(in $ millions)

2026

2025

Revenue

$

870

$

631

Cost of revenue (excluding depreciation and amortization)

356

242

Adjusted Gross Profit

514

389

Depreciation and amortization related to cost of revenue

20

18

Gross Profit

494

371

Gross Profit Margin

57

%

59

%

Adjusted Gross Profit Margin

59

%

62

%

Reconciliation of net income to EBITDA and Adjusted EBITDA:

Three months ended June 30,

(in $ millions)

2026

2025

Net income

$

17

$

15

Interest income

(1

)

(2

)

Interest expense

25

23

Provision for income taxes

2

21

Depreciation and amortization

56

43

EBITDA

99

100

Restructuring, exit and related charges (a)

45

13

Integration costs (b)

17

3

Mergers and acquisitions costs (c)

12

18

Equity-based compensation and related employer taxes (d)

20

20

Fair value movement on earnout derivative liabilities (e)

(6

)

(32

)

Other adjustments, net (f)

(9

)

11

Adjusted EBITDA

$

178

$

133

Net income Margin

2

%

2

%

Adjusted EBITDA Margin

21

%

21

%

Reconciliation of total operating expenses to Adjusted Operating Expenses:

Three months ended June 30,

(in $ millions)

2026

2025

Total operating expenses

$

846

$

597

Adjustments:

Depreciation and amortization

(56

)

(43

)

Restructuring, exit and related charges (a)

(45

)

(13

)

Integration costs (b)

(17

)

(3

)

Mergers and acquisitions costs (c)

(12

)

(18

)

Equity-based compensation and related employer taxes (d)

(20

)

(20

)

Adjusted Operating Expenses

$

696

$

500

a)

Includes (i) employee severance costs of $38 million and $11 million for the three months ended June 30, 2026 and 2025, respectively, (ii) accelerated amortization of operating lease ROU assets of $4 million and $1 million for the three months ended June 30, 2026 and 2025, respectively, and (iii) contract costs related to facility abandonment of $3 million and $1 million for the three months ended June 30, 2026 and 2025, respectively.

b)

Represents expenses related to the integration of business acquisitions.

c)

Represents expenses related to business acquisitions, including potential business acquisitions, and includes pre-acquisition due diligence and related activities costs.

d)

Represents non-cash equity-based compensation expense and employer taxes paid related to equity incentive awards to certain employees.

e)

Represents fair value movements on earnout derivative liabilities during the periods.

f)

Adjusted EBITDA excludes (i) unrealized foreign exchange gain (loss) of $9 million and $(10) million for the three months ended June 30, 2026 and 2025, respectively, and (ii) non-service component of our net periodic pension cost related to our defined benefit pension plans of $0 and $1 million for the three months ended June 30, 2026 and 2025, respectively.

Reconciliation of LTM Adjusted EBITDA:

Three months ended

Last twelve months ended

(in $ millions)

September 30, 2025

December 31, 2025

March 31, 2026

June 30, 2026

June 30, 2026

Net (loss) income

$

(62

)

$

83

$

54

$

17

$

92

Interest income

(2

)

(2

)

(1

)

(1

)

(6

)

Interest expense

24

24

27

25

100

Provision for (benefit from) income taxes

24

(26

)

(42

)

2

(42

)

Depreciation and amortization

49

60

60

56

225

EBITDA

33

139

98

99

369

Restructuring, exit and related charges

31

10

49

45

135

Integration costs

4

8

9

17

38

Mergers and acquisitions

10

1

3

12

26

Equity-based compensation and related employer taxes

19

20

25

20

84

Fair value movement on earnout derivative liabilities

26

(16

)

(31

)

(6

)

(27

)

Gain on remeasurement of equity method investment at fair value

—

(39

)

—

—

(39

)

Other adjustments, net

5

7

(3

)

(9

)

—

Adjusted EBITDA

$

128

$

130

$

150

$

178

$

586

Reconciliation of net cash from operating activities to Free Cash Flow:

Three months ended June 30,

(in $ millions)

2026

2025

Net cash from operating activities

$

142

$

57

Less: Purchase of property and equipment

(39

)

(30

)

Free Cash Flow

$

103

$

27

Reconciliation of Net Debt:

As of

(in $ millions)

June 30, 2026

December 31, 2025

June 30, 2025

Current portion of long-term debt

$

61

$

58

$

19

Long-term debt, net of unamortized debt discount and debt issuance costs

1,451

1,360

1,362

Total debt, net of unamortized debt discount and debt issuance costs

1,512

1,418

1,381

Less: Cash and cash equivalents

(518

)

(434

)

(601

)

Net Debt

$

994

$

984

$

780

LTM Adjusted EBITDA

$

586

$

532

$

502

Net Debt / LTM Adjusted EBITDA

1.7x

1.9x

1.6x

Forward-Looking Statements

Certain statements made in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this release are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks, uncertainties and other factors: (1) changes to projected financial information or our ability to achieve our anticipated growth rate and execute on industry opportunities; (2) our ability to maintain our existing relationships with clients and suppliers and to compete with existing and new competitors; (3) various conflicts of interest that could arise among us, affiliates and investors; (4) our success in retaining or recruiting, or changes required in, our officers, key employees or directors; (5) factors relating to our business, operations and financial performance, including market conditions and global and economic factors beyond our control; (6) the impact of geopolitical conflicts, including the war in Ukraine, the conflicts in the Middle East, tensions between China and Taiwan and military operations in Venezuela, as well as related changes in base interest rates, inflation and significant market volatility on our business, the travel industry, travel trends and the global economy generally; (7) the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; (8) the effect of a prolonged or substantial decrease in global travel on the global travel industry; (9) political, social and macroeconomic conditions (including the widespread adoption of teleconference and virtual meeting technologies which could reduce the number of in-person business meetings and demand for travel and our services); (10) the effect of legal, tax and regulatory changes; (11) the impact of any future acquisitions including the integration of any acquisition; (12) costs related to, or the inability to recognize the anticipated benefits of our merger with CWT; (13) risks related to the business of CWT or unexpected liabilities that may arise in connection with the integration of CWT into our business; (14) the outcome of any legal proceedings that may be instituted against the Company in connection with the merger with CWT or the proposed Merger; (15) the ability to complete the proposed Merger on the anticipated terms and timing, or at all, including obtaining required regulatory approvals and the satisfaction of other conditions to the completion of the proposed Merger; (16) the ability to achieve the cost reductions contemplated by our business strategy after the completion of the Merger; (17) the risk that disruptions from the proposed Merger (such as the ability of certain customers of the Company to terminate or amend contracts upon a change of control, or to withhold consent to such change of control) will harm the Company’s business, including current plans and operations, during the pendency, and following the completion of, the proposed Merger; (18) the diversion of management’s time and attention from ordinary course business operations to completion of the proposed Merger; (19) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed Merger; (20) contractual provisions that may impact the Company’s ability to pursue certain business opportunities or strategic transactions during the pendency, and/or following the completion of, the proposed Merger; (21) the occurrence of any event, change, or other circumstance that could give rise to the termination of the proposed Merger; (22) those risks and uncertainties found in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the risk factors discussed in the Company’s most recent Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and future filings with the SEC from time to time, which are available via the SEC’s website at www.sec.gov; and (23) those risks and uncertainties that are described in the definitive proxy statement that was filed with the SEC on July 6, 2026 in connection with the Merger. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. These factors should not be construed as exhaustive and should be read in conjunction with the other forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Disclaimer

An investment in Global Business Travel Group, Inc. is not an investment in American Express. American Express shall not be responsible in any manner whatsoever for, and in respect of, the statements herein, all of which are made solely by Global Business Travel Group, Inc.

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Original source text

Aug 4, 2026 6:30 AM Eastern Daylight Time

MINNEAPOLIS--(BUSINESS WIRE)--Northern Oil and Gas, Inc. (NYSE: NOG) (“NOG” or the “Company”) today announced that its Board of Directors has declared a cash dividend on the Company’s common stock.

DIVIDEND DECLARATION

NOG’s Board of Directors has declared a cash dividend in the amount of $0.45 per share, representing an equal amount to the prior quarterly dividend. The dividend is payable on October 30, 2026, to stockholders of record as of the close of business on September 29, 2026.

ABOUT NOG

Northern Oil and Gas (NOG) is the largest publicly traded dedicated non-operator in the United States, built on a differentiated strategy of acquiring non-operated minority working interests and mineral rights across the premier basins of North America. By combining deep industry relationships with disciplined capital allocation, NOG has built a scaled, diversified portfolio that generates durable production and strong cash flow for its shareholders. More information about NOG can be found at www.noginc.com.

More News From Northern Oil and Gas, Inc.

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Original source text

First FDA-approved IHC assay identifies patients who may be eligible for combination treatment with TRUQAP® (capivasertib)

, /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced the nationwide availability of Roche's VENTANA® PTEN (SP218) RxDx Assay, the first immunohistochemistry (IHC) companion diagnostic test approved by the U.S. Food and Drug Administration (FDA) to determine PTEN protein loss, also known as PTEN deficiency, in tumors of patients with prostate adenocarcinoma. The assay helps identify patients who may be eligible for treatment with AstraZeneca's TRUQAP® (capivasertib) in combination with abiraterone acetate and prednisone.

Addressing an Unmet Need in Prostate Cancer Care
Excluding skin cancer, prostate cancer is the most common cancer among men in the United States, with more than 330,000 new cases expected each year. PTEN is a tumor suppressor protein that plays a critical role in regulating cell growth. Loss of PTEN protein expression has been associated with more aggressive disease progression and reduced benefit from current standard-of-care therapies in prostate cancer. Until recently, there were no approved treatment options specifically targeting this biology.

The VENTANA PTEN (SP218) RxDx Assay is a companion diagnostic designed to detect PTEN protein loss in prostate cancer tissue specimens, providing clinicians with important biomarker information to help guide treatment decisions and support personalized patient care.

"Biomarker testing is essential to advancing precision oncology and helping connect patients with the therapies most appropriate for their disease," said Shakti Ramkissoon, M.D., Ph.D., vice president, medical lead for oncology at Labcorp. "The launch of the VENTANA PTEN (SP218) RxDx Assay underscores how Labcorp is expanding access to innovative companion diagnostics and delivering the timely insights physicians need to make personalized treatment decisions."

Advancing Access to FDA-Approved Companion Diagnostics
Labcorp participated in Roche's early access program to support Day 1 laboratory readiness for the assay, reinforcing the company's commitment to helping patients gain timely access to newly approved targeted therapies and the companion diagnostics needed to identify eligible patients.

The VENTANA PTEN (SP218) RxDx Assay is now available through Labcorp's national network of laboratories and complements the company's comprehensive portfolio of genomic, molecular and companion diagnostic testing services that support precision oncology care. As one of the nation's largest providers of oncology testing services, Labcorp enables physicians across community and academic settings to access FDA-approved companion diagnostics at scale, helping bring precision medicine to more patients regardless of where they receive care. The assay can also be ordered alongside Labcorp's broader portfolio of oncology testing services, providing clinicians with comprehensive biomarker insights from a single laboratory partner.

To learn more about the assay, visit https://oncology.labcorp.com/tests/484680/PTEN-IHC-with-interpretation-for-prostate-adenocarcinoma

About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025 and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com.

SOURCE Labcorp

Original source text

Positioned To Accelerate Profitable Growth and Innovation as a Pure-Play Building Technologies Company

Repaid $900 Million of Indebtedness and Preferred Stock Reduced to 350,000 Shares Outstanding

ADI Begins Trading Today on the New York Stock Exchange Under Ticker "ADIG"

, /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI) ("Resideo"), a leading global developer and manufacturer of critical control and sensing solutions for residential end markets, today announced the completion of its spin-off of ADI Global Distribution Inc. ("ADI"), establishing Resideo as a pure-play building technologies company. Resideo will continue to trade on the New York Stock Exchange under the ticker symbol "REZI" and ADI's common stock will begin "regular-way" trading today on the New York Stock Exchange under the ticker symbol "ADIG".

"With trusted and iconic brands, deep relationships with pros and a 140-year heritage of innovation, Resideo is poised to start this next chapter as a pure-play building technologies company," said Tom Surran, President and Chief Executive Officer of Resideo. "With dedicated strategic, operational and financial focus, we are ready to capture the profitable growth opportunities ahead and drive above market growth and sustained margin expansion."

The spin-off was completed through the distribution of all of the issued and outstanding shares of ADI common stock to Resideo common shareholders on the basis of one share of ADI common stock for every two shares of Resideo common stock held of record as of the close of business on July 20, 2026. Resideo shareholders of record will also receive cash in lieu of any fractional shares to which they would otherwise be entitled.

In connection with the spin-off, Resideo repaid $900 million of outstanding principal under its Term Loan B credit facility. Resideo expects to make a further repayment of approximately $200 million under its Term Loan B credit facility following the completion of the post-closing cash adjustment under the separation agreement with ADI. Resideo expects to make this repayment by the end of the third fiscal quarter. Additionally, the outstanding Resideo Series A Cumulative Convertible Participating Preferred Stock was reduced by 150,000 shares in connection with the completion of the spin-off, leaving 350,000 shares outstanding, with a proportional adjustment to the conversion price thereof.

About Resideo

Resideo is a global building technologies company that is a leading developer and manufacturer of critical control and sensing solutions for residential markets. The company serves professional installers and integrators across diverse product segments, such as heating, ventilation, and air conditioning controls, combustion, life safety, security, and water. Its comfort and protection solutions can be found in more than 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. More information about Resideo and its trusted brands, including BRK, First Alert, and Honeywell Home, is available at www.resideo.com.

Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, those regarding our anticipated market positioning and financial and operational performance following the separation of our ADI Global Distribution business from Resideo Technologies, Inc. and other future events or developments. Forward-looking statements are typically identified by such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," and similar expressions, although not all forward-looking statements contain these words. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Among the factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements are the possibility that the separation may not achieve the intended strategic, operational, or financial benefits for Resideo, its businesses, or its shareholders; that Resideo may experience operational or other disruptions as a result of the separation, including those relating to information technology systems, business processes, internal controls, customer and vendor relationships, and workforce alignment. Resideo's ability to succeed as an independent enterprise without ADI will depend on numerous factors, including the execution of its strategies and plans, access to capital markets, the competitive landscape, and general business and economic conditions. Other risks and uncertainties include, but are not limited to, our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, risks and uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, and the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic reports.

All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of Resideo to differ materially from such forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward-looking statements.

Contacts:

Investors:

Christopher T. Lee
Global Head of Strategic Finance
[email protected]

Media:

Kevin Hunt
Communications Director
[email protected]

Or

Dan Moore, Tali Epstein
Collected Strategies
[email protected]

SOURCE Resideo Technologies, Inc.

Original source text

, /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the second quarter ended June 30, 2026.

AMETEK's second quarter 2026 sales were a record $2.04 billion, a 15% increase over the second quarter of 2025. On a GAAP basis, second quarter earnings were a record $1.77 per diluted share. Adjusted earnings in the quarter were a record $2.09 per diluted share, up 17% from the second quarter of 2025. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization, financing fees and integration costs of $0.32 per diluted share.

GAAP operating income was a record $528.2 million. Adjusted operating income increased 18% to a record $544.4 million and operating margins were 26.6% in the quarter, up 60 basis points from the prior year. Operating cash flow in the quarter was up 35% to $483.7 million and free cash flow to net income conversion was 111%. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.

"AMETEK delivered superb results in the second quarter. Strong organic sales growth, contributions from recent acquisitions, and outstanding operating performance led to high-teens earnings growth, excellent 110 basis points of core margin expansion and record operating performance," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Notably, for the second quarter in a row, orders were exceptional, growing 28% in the quarter."

Electronic Instruments Group (EIG)

EIG sales in the second quarter were $1.32 billion, an increase of 14% over the same period in 2025. On a GAAP basis, EIG's second quarter operating income was $369.8 million. On an adjusted basis, EIG's operating income was up 12% to $384.7 million.

"EIG generated outstanding results in the second quarter with mid-teens sales growth, sizeable orders growth and excellent operating performance," commented Mr. Zapico. "Sales growth in the quarter was balanced between organic growth and contributions from recent acquisitions, with excellent orders growth highlighted by our semiconductor and commercial aerospace markets. Further, EIG's strong operating performance drove core margins up 40 basis points to 30.1%."

Electromechanical Group (EMG)

EMG sales in the second quarter were a record $723.2 million, up 17% from the second quarter of 2025. In the quarter, EMG's GAAP operating income was $189.3 million. On an adjusted basis, EMG's operating income increased 32% to a record $190.5 million and operating income margins were 26.3%.

"EMG delivered exceptional results in the second quarter. Strong organic sales growth resulted in sizeable profit growth and 290 basis points of core margin expansion," noted Mr. Zapico. "Orders growth was also outstanding and broad-based in the quarter with notable strength in medtech, defense and automation markets."

Third Quarter and Full Year 2026 Outlook

"Our businesses performed exceptionally well in the second quarter highlighting the strength of the AMETEK Growth Model, the quality of our business and the attractiveness of our markets. Our broad-based sales and orders growth reflects our unique position as a mission critical provider of highly differentiated solutions supporting strong secular growth markets including the global infrastructure build-out," added Mr. Zapico.

"For 2026, we now expect overall sales to be up approximately 10% versus 2025. Adjusted earnings per diluted share are now expected to be in the range of $8.20 to $8.30, up 10% to 12% over the comparable basis for 2025. This is an increase from our prior guidance range of $7.94 to $8.14 per diluted share reflecting our strong underlying performance and outlook for the balance of the year," he added.

"For the third quarter of 2026, overall sales are expected to be up high single digits on a percentage basis compared to the third quarter of 2025. Adjusted earnings in the quarter are anticipated to be in the range of $2.08 to $2.10 per share, up 10% to 11% compared to the third quarter of 2025," concluded Mr. Zapico.

Conference Call

AMETEK will webcast its second quarter 2026 investor conference call on Tuesday, August 4, 2026, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

Corporate Profile

AMETEK (NYSE: AME) is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales of approximately $8.0 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. Founded in 1930, AMETEK has been listed on the NYSE for over 95 years and is a component of the S&P 500. For more information, visit www.ametek.com.

Forward-looking Information

Statements in this news release relating to future events, such as AMETEK's expected business and financial performance, are "forward-looking statements." Forward-looking statements are subject to various factors and uncertainties that may cause actual results to differ materially from expectations. These factors and uncertainties include risks related to AMETEK's ability to consummate and successfully integrate future acquisitions; risks with international sales and operations, including supply chain disruptions, tariffs, trade disputes and currency conditions; AMETEK's ability to successfully develop new products, open new facilities or transfer product lines; the price and availability of raw materials; compliance with government regulations, including environmental regulations; changes in the competitive environment or the effects of competition in our markets; the ability to maintain adequate liquidity and financing sources; and general economic conditions affecting the industries we serve. A detailed discussion of these and other factors that may affect our future results is contained in AMETEK's filings with the U.S. Securities and Exchange Commission, including its most recent reports on Forms 10-K, 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.

Contact:

Kevin Coleman
Vice President, Investor Relations and Treasurer
[email protected]
Phone: 610.889.5247

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net sales

$         2,044,397

$         1,778,056

$     3,972,834

$     3,510,027

Cost of sales

1,309,356

1,142,167

2,520,234

2,249,138

Selling, general and administrative

206,848

174,263

409,471

344,434

     Total operating expenses

1,516,204

1,316,430

2,929,705

2,593,572

Operating income

528,193

461,626

1,043,129

916,455

Interest expense

(30,101)

(16,857)

(51,010)

(35,850)

Other (expense) income, net

(5,720)

(2,600)

(6,767)

(4,214)

Income before income taxes

492,372

442,169

985,352

876,391

Provision for income taxes

85,476

83,802

179,099

166,266

Net income

$            406,896

$            358,367

$       806,253

$       710,125

Diluted earnings per share

$                1.77

$                1.55

$            3.51

$            3.07

Basic earnings per share

$                1.78

$                1.55

$            3.52

$            3.08

Weighted average common shares
outstanding:

     Diluted shares

229,855

231,472

229,845

231,507

     Basic shares

229,086

230,818

228,994

230,743

Dividends per share

$                0.34

$                0.31

$            0.68

$            0.62

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Net sales:

Electronic Instruments

$         1,321,153

$         1,159,571

$     2,585,689

$     2,303,244

Electromechanical

723,244

618,485

1,387,145

1,206,783

Consolidated net sales

$         2,044,397

$         1,778,056

$     3,972,834

$     3,510,027

Operating income:

Segment operating income:

Electronic Instruments

$            369,722

$            344,428

$       743,660

$       698,478

Electromechanical

189,317

143,888

360,083

272,606

Total segment operating income

559,039

488,316

1,103,743

971,084

Corporate administrative expenses

(30,846)

(26,690)

(60,614)

(54,629)

Consolidated operating income

$            528,193

$            461,626

$     1,043,129

$       916,455

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)

June 30,

December 31,

2026

2025

(Unaudited)

ASSETS

Current assets:

     Cash and cash equivalents

$            495,446

$            457,951

     Receivables, net

1,170,497

1,119,257

     Inventories, net

1,195,383

1,106,405

     Other current assets

365,475

336,229

          Total current assets

3,226,801

3,019,842

Property, plant and equipment, net

850,173

855,215

Right of use assets, net

259,308

273,142

Goodwill

7,418,304

7,170,770

Other intangibles, investments and other assets

4,840,127

4,748,574

          Total assets

$        16,594,713

$        16,067,543

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

     Short-term borrowings and current portion of long-term debt, net

$            980,633

$         1,208,975

     Accounts payable and accruals

1,677,965

1,633,777

          Total current liabilities

2,658,598

2,842,752

Long-term debt, net

1,055,541

1,074,334

Deferred income taxes and other long-term liabilities

1,619,811

1,521,671

Stockholders' equity

11,260,763

10,628,786

          Total liabilities and stockholders' equity

$        16,594,713

$        16,067,543

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended June 30,

2026

2025

EIG Segment operating income (GAAP)

$       369,722

$        344,428

Acquisition-related costs(1)

14,996

—

Adjusted EIG Segment operating income (Non-GAAP)

$       384,718

$        344,428

EMG Segment operating income (GAAP)

$       189,317

$        143,888

Acquisition-related costs(1)

1,208

—

Adjusted EMG Segment operating income (Non-GAAP)

$       190,525

$        143,888

Operating income (GAAP)

$       528,193

$        461,626

Acquisition-related costs(1)

16,204

—

Adjusted Operating income (Non-GAAP)

$       544,397

$        461,626

Interest expense (GAAP)

$         30,101

$         16,857

Acquisition-related costs(1)

(10,006)

—

Adjusted interest expense (non-GAAP)

$         20,095

$         16,857

Diluted earnings per share (GAAP)

$            1.77

$            1.55

Acquisition-related costs(1)

0.11

—

Income tax benefit on acquisition-related costs(1)

(0.02)

—

Pretax amortization of acquisition-related intangible assets

0.30

0.31

Income tax benefit on amortization of acquisition-related intangible assets

(0.07)

(0.08)

Rounding

—

—

Adjusted Diluted earnings per share (Non-GAAP)

$            2.09

$            1.78

Cash provided by operating activities (GAAP)

$       483,693

$        359,089

Deduct: Capital expenditures

(32,012)

(29,269)

Free cash flow (Non-GAAP)

$       451,681

$        329,820

Free cash flow conversion (Non-GAAP)

111 %

92 %

(1)

-

Acquisition-related costs comprise integration costs in Cost of Sales and one-time Indicor bridge financing fees in interest expense.

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended
June 30,

2026

2025

Change

EIG Segment operating margin (GAAP)

28.0 %

29.7 %

Acquisition-related costs(1)

1.1 %

— %

Adjusted EIG Segment operating margin (Non-GAAP)

29.1 %

29.7 %

Dilutive impact of acquisitions and foreign exchange(2)

1.0 %

— %

Adjusted EIG Segment core operating margin (Non-GAAP)

30.1 %

29.7 %

0.4 %

EMG Segment operating margin (GAAP)

26.2 %

23.3 %

Acquisition-related costs(1)

0.1 %

— %

Adjusted EMG Segment operating margin (Non-GAAP)

26.3 %

23.3 %

Dilutive impact of acquisitions and foreign exchange(2)

(0.1) %

— %

Adjusted EMG Segment core operating margin (Non-GAAP)

26.2 %

23.3 %

2.9 %

Operating income margin (GAAP)

25.8 %

26.0 %

Acquisition-related costs(1)

0.8 %

— %

Adjusted operating income margin (Non-GAAP)

26.6 %

26.0 %

0.6 %

Dilutive impact of acquisitions and foreign exchange(2)

0.5 %

— %

Adjusted core operating income margin (Non-GAAP)

27.1 %

26.0 %

1.1 %

(1)

-

Acquisition-related costs comprise integration costs in Cost of Sales and one-time Indicor bridge financing fees in interest expense.

(2)

-

Operating income margins adjusted for dilutive impact from acquisitions completed in the last twelve months and the foreign exchange gain or loss.

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(Unaudited)

Forecasted Diluted Earnings Per Share

Three Months Ended

Year Ended

September 30, 2026

December 31,2026

Low

High

Low

High

Diluted earnings per share (GAAP)

$          1.85

$          1.87

$        7.19

$        7.29

Pretax amortization of acquisition-related intangible
assets

0.31

0.31

1.21

1.21

Income tax benefit on amortization of acquisition-related
intangible assets

(0.08)

(0.08)

(0.30)

(0.30)

Acquisition-related costs(3)

—

—

0.12

0.12

Income tax benefit on acquisition-related costs(3)

—

—

(0.02)

(0.02)

Adjusted Diluted earnings per share (Non-GAAP)

$          2.08

$          2.10

$        8.20

$        8.30

(3)

-

In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events. Acquisition-related costs reflected in the table above are actual June 30, 2026 year-to-date adjustments.

Use of Non-GAAP Financial Information

The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles ("GAAP") basis with certain non-GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non-GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.

The non-GAAP financial measures referenced in this press release include adjusted operating income, adjusted operating margin, and adjusted earnings per share. These measures are adjusted to exclude items that management does not consider indicative of AMETEK's ongoing operational performance, such as after-tax acquisition-related intangible amortization, one-time acquisition-related costs (including transaction related costs, purchase accounting adjustments, and integration related costs).

In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events.

The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK's operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers.

SOURCE AMETEK, Inc.

Original source text

Net Sales were $2,188 million; Innovation Sales Growth added $40 million. Net Income of $24 million; Adjusted EBITDA of $247 million, strong execution despite elevated inflation. Structural cost actions expected to generate approximately $85 million of in-year savings, partially offsetting full-year 2026 expected inflation of $150 million. On track to achieve full-year 2026 Net Sales at the high end of guidance range, while Adjusted EBITDA is expected at the low end of guidance range due to the heightened inflationary environment; Adjusted EPS range lowered to reflect higher interest expense and Adjusted Cash Flow guidance updated to $600 million to $700 million. , /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today reported second quarter 2026 results.

Net Sales in second quarter 2026 were $2,188 million, versus $2,204 million in second quarter 2025. Net Income in second quarter 2026 was $24 million, or $0.08 per diluted share, versus Net Income of $104 million, or $0.34 per diluted share in second quarter 2025. Second quarter 2026 and 2025 Net Income were impacted by a net charge from non-recurring and special items and amortization of purchased intangibles of $17 million and $24 million, respectively. Excluding non-recurring and special items and amortization of purchased intangibles, Adjusted Net Income for the second quarter of 2026 was $41 million, or $0.14 per diluted share, and $128 million, or $0.42 per diluted share in second quarter 2025.

"We continued to execute against our near-term strategic priorities and delivered solid second quarter performance, with Adjusted EBITDA at the top of our guidance range despite greater than anticipated inflation," said Robbert Rietbroek, President and Chief Executive Officer. "Our business demonstrated resilience, with both sales and volumes increasing in the first half of 2026 compared with the same period in 2025. We are beginning to realize the benefits of our productivity initiatives, disciplined cost management, and improving operational efficiencies, which helped mitigate higher than expected inflationary pressures in the quarter. As a result, we achieved 50 basis points of sequential Adjusted EBITDA margin expansion in the second quarter relative to the first quarter."

"In response to incremental inflation, we implemented additional productivity, cost reduction, and pricing initiatives. The combination of these recent actions and our disciplined execution against strategic priorities positions us to drive continued sequential profitability and margin improvement in the second half of 2026 and provides positive momentum into next year."

Financial and Operating Results

Net Sales

Second quarter 2026 Net Sales decreased 1% to $2,188 million, versus $2,204 million in the same quarter last year. The $16 million decline was driven by a 1% decrease, or $27 million, in price, flat, or $2 million decrease, in volume/mix, partially offset by a $13 million favorable foreign exchange/other impact. Innovation Sales Growth in the second quarter was $40 million.

EBITDA

Second quarter 2026 EBITDA decreased 26% to $240 million from $323 million in the same quarter last year. Excluding the impact of business combinations and other non-recurring and special items, Adjusted EBITDA was $247 million versus $336 million in the same quarter last year. The $89 million decline in Adjusted EBITDA was driven by the impact of commodity input and operating cost inflation of $60 million, lower price of $27 million, lower volume/mix of $8 million, as well as an unfavorable foreign exchange impact of $3 million, partially offset by positive Net Performance of $9 million. Second quarter Adjusted EBITDA Margin was 11.3% in 2026, and 15.3% in 2025.

Other Results

Total Debt (Long-Term, Short-Term and Current Portion) was $5,688 million in second quarter 2026 compared to $5,592 million in fourth quarter 2025 and $5,772 million in the first quarter 2026. Net Debt (Total Debt less Cash and Cash Equivalents) was $5,483 million in second quarter 2026 compared to $5,331 million in fourth quarter 2025 and $5,583 million in the first quarter 2026. The Company's second quarter 2026 Net Leverage Ratio was 4.7x compared to 3.8x in fourth quarter 2025.

Capital expenditures in second quarter 2026 were $83 million, versus $228 million in the same quarter last year.

The Company returned approximately $65 million to stockholders during the first six months of 2026 through regular dividends.

2026 Annual Guidance

The Company now expects 2026 Net Sales at the high-end of the range of $8.4 billion to $8.6 billion, Adjusted EBITDA at the low-end of the range of $1.05 billion to $1.25 billion, and Adjusted EPS in the range of $0.65 to $0.90.

The Company now expects 2026 Adjusted Cash Flow in the range of $600 million to $700 million, and 2026 capital spending below $450 million.

Optimizing Operations

Furthering our footprint optimization initiative, we completed the divestiture of our Croatia facility and announced plans to close our facility in Lebanon, Tennessee, to consolidate volumes across fewer facilities. Additionally, we notified employees of our intention to evaluate the potential closure of our site in Winsford, UK.

Innovation Sales Growth, Net Performance, and Non-GAAP Reconciliations

We define Innovation Sales Growth as incremental sales of a product that delivers a significant change in materials used, package functionality or design to a new or existing customer. We define Net Performance as the impact of cost and productivity initiatives, production efficiencies and/or disruptions and other operating impacts. A tabular reconciliation of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted EPS, Adjusted Net Cash Used in Operating Activities, Adjusted Cash Flow, Net Debt and Net Leverage is attached to this release.

Earnings Call

The Company will host a conference call at 10:00 a.m. ET today (August 4, 2026) to discuss the results of second quarter 2026. The conference call will be webcast and can be accessed from the Investors website at https://investors.graphicpkg.com. Participants may also listen via telephone by using the following dial-in numbers:

Toll-Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 266400

Investors: [email protected]
Media: [email protected]

Forward Looking Statements

Any statements of the Company's expectations in this press release, including but not limited to savings resulting from structural cost actions in 2026, 2026 Net Sales, Adjusted EBITDA and Adjusted Earnings per Diluted Share, Adjusted Cash Flow guidance, and profitability and margin improvement in the second half of 2026 constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, inflation of and volatility in raw material and energy costs, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives, cost reduction plans, as well as the Company's debt level, currency movements and other risks of conducting business internationally, the impact of regulatory and litigation matters, including the continued availability of the Company's U.S. federal income tax attributes to offset U.S. federal income taxes and the timing related to the Company's future U.S. federal income tax payments. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements, except as may be required by law. Additional information regarding these and other risks is contained in the Company's periodic filings with the Securities and Exchange Commission.

About Graphic Packaging Holding Company

Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials. An industry leader in innovation, the Company is committed to reducing the environmental footprint of consumer packaging. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products. Learn more at www.graphicpkg.com.

Graphic Packaging Holding Company

Consolidated Statements of Operations

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

In millions, except per share amounts

2026

2025

2026

2025

Net Sales

$            2,188

$            2,204

$          4,344

$          4,324

Cost of Sales

1,896

1,784

3,746

3,459

Selling, General and Administrative

180

204

382

400

Other Expense, Net

11

10

25

26

Business Combinations, Exit Activities and Other Special Items, Net

6

13

77

25

Income from Operations

95

193

114

414

Nonoperating Pension and Postretirement Benefit Expense

(1)

(1)

(1)

(1)

Interest Expense, Net

(68)

(53)

(132)

(104)

Income (Loss) before Income Taxes

26

139

(19)

309

Income Tax Expense

(2)

(35)

—

(78)

Net Income (Loss)

$               24

$             104

$            (19)

$            231

Net Income (Loss) Per Share - Basic

$             0.08

$             0.35

$          (0.06)

$           0.77

Net Income (Loss) Per Share - Diluted

$             0.08

$             0.34

$          (0.06)

$           0.76

Weighted Average Number of Shares Outstanding - Basic

296.6

301.2

296.6

301.7

Weighted Average Number of Shares Outstanding - Diluted

296.7

301.6

296.6

302.4

Graphic Packaging Holding Company

Condensed Consolidated Balance Sheets

(Unaudited)

In millions, except share and per share amounts

June 30, 2026

December 31, 2025

Assets

Current Assets:

Cash and Cash Equivalents

$             205

$             261

Receivables, Net

888

760

Inventories, Net

1,691

1,766

Assets Held for Sale

8

10

Other Current Assets

220

126

Total Current Assets

3,012

2,923

Property, Plant and Equipment, Net

5,532

5,669

Goodwill

2,048

2,065

Intangible Assets, Net

626

670

Other Assets

442

448

Total Assets

$          11,660

$          11,775

Liabilities

Current Liabilities:

Short-Term Debt and Current Portion of Long-Term Debt

$             552

$             549

Accounts Payable

955

1,027

Liabilities Held for Sale

2

—

Other Accrued Liabilities

675

668

Total Current Liabilities

2,184

2,244

Long-Term Debt

5,115

5,022

Deferred Income Tax Liabilities

681

688

Other Noncurrent Liabilities

443

484

Shareholders' Equity

Preferred Stock, par value $0.01 per share; 100,000,000 shares authorized; no shares issued or
outstanding

—

—

Common Stock, par value $0.01 per share; 1,000,000,000 shares authorized; 296,054,676 and
295,128,049 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

3

3

Capital in Excess of Par Value

1,994

1,981

Retained Earnings

1,530

1,614

Accumulated Other Comprehensive Loss

(291)

(262)

Total Graphic Packaging Holding Company Shareholders' Equity

3,236

3,336

Noncontrolling Interest

1

1

Total Equity

3,237

3,337

Total Liabilities and Shareholders' Equity

$          11,660

$          11,775

Graphic Packaging Holding Company

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,

In millions

2026

2025

Cash Flows from Operating Activities:

Net (Loss) Income

$             (19)

$             231

Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities:

Depreciation and Amortization

284

261

Amortization of Deferred Debt Issuance Costs

3

3

Deferred Income Taxes

(7)

16

Amount of Postretirement Expense Less Than Funding

(1)

—

Share-Based Compensation Expense, Net

18

(1)

Asset Impairment Charges

53

—

Other, Net

(2)

(13)

Changes in Operating Assets and Liabilities

(284)

(404)

Net Cash Provided by Operating Activities

45

93

Cash Flows from Investing Activities:

Capital Spending

(223)

(541)

Acquisition of Businesses

—

(29)

Proceeds from the Sale of Business and Properties, Net of Cash and Cash Equivalents Sold

8

12

Beneficial Interest on Sold Receivables

240

110

Beneficial Interest Obtained in Exchange for Proceeds

(164)

(54)

Other, Net

6

(3)

Net Cash Used in Investing Activities

(133)

(505)

Cash Flows from Financing Activities:

Repurchase of Common Stock

—

(110)

Retirement of Long-Term Debt

(400)

—

Payments on Debt

(9)

(6)

Proceeds from Issuance of Debt

544

99

Borrowings under Revolving Credit Facilities

1,829

2,077

Payments on Revolving Credit Facilities

(1,847)

(1,599)

Repurchase of Common Stock related to Share-Based Payments

(4)

(32)

Debt Issuance Costs

(4)

(1)

Dividends Paid

(65)

(63)

Other, Net

(12)

(3)

Net Cash Provided by Financing Activities

32

362

Decrease in Cash and Cash Equivalents

(56)

(50)

Effect of Exchange Rate Changes on Cash

—

13

Net Decrease in Cash and Cash Equivalents

(56)

(37)

Cash and Cash Equivalents at Beginning of Period

261

157

Cash and Cash Equivalents at End of Period

$             205

$             120

Graphic Packaging Holding Company
Reconciliation of Non-GAAP Financial Measures

The tables below set forth the calculation of the Company's earnings before interest expense, income tax expense, depreciation and amortization, including pension amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, Net Leverage Ratio, and Total Net Debt. Adjusted EBITDA and Adjusted Net Income exclude charges associated with: the Company's business combinations, facility shutdowns, certain extended mill outages, sales of assets, non-recurring and other special items. The Company's management believes that the presentation of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio provides useful information to investors because these measures are regularly used by management in assessing the Company's performance. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio are financial measures not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), and are not measures of net income, operating income, operating performance, liquidity or net sales presented in accordance with GAAP. The Company's guidance for 2026 Adjusted EBITDA, Adjusted Earnings per Share, and Adjusted Cash Flow are non-GAAP financial measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures (Net Income, Net Income per Share, and Net Cash Provided by Operating Activities, respectively) because the information necessary to prepare such a reconciliation is not available without unreasonable efforts.

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as we do.

Three Months Ended June 30,

Six Months Ended June 30,

In millions, except per share amounts

2026

2025

2026

2025

Net Income (Loss)

$             24

$            104

$      (19)

$      231

Add (Subtract):

Income Tax Expense

2

35

—

78

Interest Expense, Net

68

53

132

104

Depreciation and Amortization

146

131

286

263

EBITDA

240

323

399

676

Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a)

6

13

77

25

Other Non-Recurring Items(a)

1

—

3

—

Adjusted EBITDA

$            247

$            336

$      479

$      701

Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales)

11.3 %

15.3 %

11.0 %

16.2 %

Net Income (Loss)

$             24

$            104

$      (19)

$      231

Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a)

6

13

77

25

Other Non-Recurring Items(a)

1

—

3

—

Accelerated Depreciation Related to Exit Activities

—

4

—

8

Amortization Related to Purchased Intangible Assets

15

15

31

34

Tax Impact of Adjustments

(5)

(8)

(23)

(16)

Adjusted Net Income

$             41

$            128

$       69

$      282

Adjusted Earnings Per Share - Basic

$           0.14

$           0.42

$      0.23

$      0.93

Adjusted Earnings Per Share - Diluted

$           0.14

$           0.42

$      0.23

$      0.93

(a) Represents items management believes are not indicative of ongoing operating performance.

Graphic Packaging Holding Company

Reconciliation of Non-GAAP Financial Measures

(Continued)

Twelve Months Ended

In millions

June 30, 2026

June 30, 2025

December 31, 2025

Net Income

$             194

$             534

$             444

Add (Subtract):

Income Tax Expense

61

180

139

Equity Income of Unconsolidated Entity

(1)

(1)

(1)

Interest Expense, Net

248

215

220

Depreciation and Amortization

563

541

540

EBITDA

$            1,065

$            1,469

$            1,342

Charges Associated with Business Combinations, Exit Activities and Other Special Items, Net(a)

93

69

41

Other Non-Recurring Items(a)

15

—

12

Adjusted EBITDA

$            1,173

$            1,538

$            1,395

Calculation of Net Debt:

June 30, 2026

June 30, 2025

December 31, 2025

Short-Term Debt and Current Portion of Long-Term Debt

$             552

$             443

$             549

Long-Term Debt (b)

5,136

5,416

5,043

Less:

Cash and Cash Equivalents

(205)

(120)

(261)

Net Debt

$            5,483

$            5,739

$            5,331

Net Leverage Ratio (Net Debt/Adjusted EBITDA)

4.7

3.7

3.8

(a) Represents items management believes are not indicative of ongoing operating performance.

(b) Excludes unamortized deferred debt issue costs.

Six Months Ended June 30,

In millions

2026

2025

Net Cash Provided by Operating Activities

$              45

$              93

Net Cash Receipts from Receivables Sold included in Investing Activities

76

56

Cash Payments Associated with Business Combinations, Exit Activities and Other Special Items, Net
and Other Non-Recurring Items

57

33

Adjusted Net Cash Provided by Operating Activities

$             178

$             182

Capital Spending

(223)

(541)

Adjusted Cash Flow

$             (45)

$            (359)

SOURCE Graphic Packaging Holding Company

Original source text

August 04, 2026 07:00 ET | Source: Beam Therapeutics

Updated BEAM-302 Phase 1/2 Clinical Data Selected for Late-Breaking Oral Presentation at the European Respiratory Society (ERS) Congress 2026

Dosing Complete for All Adult and Adolescent Patients in Phase 1/2 BEACON Trial of Risto-cel in Sickle Cell Disease; U.S. Biologics License Application (BLA) Submission Expected as Early as Year-End 2026

Clinical Trial Start-up Activities Underway Following U.S. FDA Clearance of Investigational New Drug (IND) Application for BEAM-304 in Phenylketonuria (PKU)

Ended Second Quarter 2026 with $1.2 Billion in Cash, Cash Equivalents and Marketable Securities; Cash Runway Expected to Support Operating Plans into mid-2029

CAMBRIDGE, Mass., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Beam Therapeutics Inc. (Nasdaq: BEAM), a biotechnology company developing precision genetic medicines through base editing, today reported second quarter 2026 financial results and provided updates across the company’s hematology and genetic disease franchises.

“The second quarter marked another period of rapid progress and disciplined execution on the clinical, regulatory and operational milestones we set for Beam,” said John Evans, chief executive officer of Beam Therapeutics. “Importantly, this progress enabled dosing of the first patient in the global pivotal cohort evaluating BEAM-302, the most advanced genetic medicine in development for AATD, which has the potential to fundamentally change the treatment paradigm for patients. In addition, we completed dosing for all adult and adolescent SCD patients in the BEACON trial of risto-cel and received FDA clearance of the IND for BEAM-304 in PKU, paving the way to the clinic for this next potentially high-value franchise. Looking ahead, we believe Beam is positioned to achieve several important milestones, including updated clinical data for BEAM-302 at the ERS Congress, rapid enrollment in the BEAM-302 pivotal cohort, first-in-human data for BEAM-301 in GSDIa, and the expected BLA submission for risto-cel. With the continued expansion and advancement of our base editing pipeline, we have the potential to deliver transformative therapies for many patients with serious genetic diseases.”

Second Quarter 2026 and Recent Progress and Anticipated Milestones

Liver-targeted Genetic Disease Franchise

BEAM-302: Beam’s lead genetic disease program is designed to be a best-in-class and first-in-class liver-targeting therapy for alpha-1 antitrypsin deficiency (AATD) that directly corrects the root cause of the disease and therefore has the potential to address both liver and lung manifestations of AATD.

In July, Beam dosed the first patient in the global pivotal cohort of the ongoing Phase 1/2 trial evaluating BEAM-302 in patients with AATD-associated lung disease, with or without liver disease. The cohort is designed to support a potential accelerated approval path in the United States.Detailed and updated clinical data for BEAM-302 were selected for a late-breaking oral presentation at the European Respiratory Society (ERS) Congress, taking place September 5-9, 2026, in Barcelona, Spain. BEAM-304: BEAM-304 is designed to leverage Beam’s proprietary and clinically validated base editing technology and lipid nanoparticle (LNP) delivery capabilities to directly and durably correct mutations in the phenylalanine hydroxylase (PAH) gene that cause phenylketonuria (PKU). Beam aims to advance BEAM-304 using an innovative platform approach with the goal of creating mutation-specific base editors for the majority of patients with PKU.

In June, Beam announced that the U.S. Food and Drug Administration (FDA) cleared the investigational new drug (IND) application for BEAM-304.Beam has initiated clinical start-up activities for the planned Phase 1/2 trial for BEAM-304. The trial will initially evaluate safety, tolerability, and reduction of blood Phe levels in PKU patients with the R408W mutation, one of the most prevalent disease-causing mutations among patients with PKU in the U.S., with a goal of establishing clinical proof of concept for base editing in PKU. The trial will subsequently evaluate base editors for additional mutations within a single clinical program.In July, updated preclinical data for BEAM-304 were presented at the Federation of American Societies for Experimental Biology (FASEB) Genome Engineering: Research and Applications Conference. The presentation is available on the Presentation and Publications page of Beam’s website beamtx.com.
BEAM-301: BEAM-301 aims to correct one of the most common disease-causing mutations, R83C, in patients with glycogen storage disease type Ia (GSDIa).

BEAM-301 is currently being evaluated in an open-label Phase 1/2 dose-exploration trial in patients with GSDIa.Beam expects to report initial clinical data in 2026. Hematology Franchise

Risto-cel: Ristoglogene autogetemcel (risto-cel, formerly known as BEAM-101) is an investigational autologous cell therapy with a potential best-in-class profile for the treatment of sickle cell disease (SCD).

Dosing is complete in all adult and adolescent patients enrolled in the Phase 1/2 BEACON trial.Beam expects to report updated data for the BEACON trial by year-end 2026 and submit a biologics license application (BLA) for risto-cel as early as year-end 2026. Next-generation Programs in Sickle Cell Disease and Hematology:

Beam completed enrollment and dosing in the Phase 1 healthy volunteer clinical trial of BEAM-103, an anti-CD117 monoclonal antibody with the potential to enable non-genotoxic ex vivo and in vivo therapies for SCD. Treatment with BEAM-103 was well tolerated across all doses tested.Beam continues to make significant investments in developing targeted LNPs to deliver gene editing to hematopoietic stem cells (HSCs). Targeted LNPs for HSC delivery have been identified and are in lead optimization. Second Quarter 2026 Financial Results

Cash Position: Cash, cash equivalents and marketable securities were $1.2 billion as of June 30, 2026, compared to $1.2 billion as of December 31, 2025.Research & Development (R&D) Expenses: R&D expenses were $95.1 million for the second quarter of 2026, compared to $101.8 million for the second quarter of 2025.General & Administrative (G&A) Expenses: G&A expenses were $31.9 million for the second quarter of 2026, compared to $26.9 million for the second quarter of 2025.Net Income (Loss): Net loss was $122.7 million, or $1.18 per share, for the second quarter of 2026, compared to net loss of $102.1 million, or $1.00 per share, for the second quarter of 2025. Cash Runway
Beam expects that its cash, cash equivalents and marketable securities as of June 30, 2026, together with an additional $200 million expected to be drawn from the company’s facility with Sixth Street, will fund anticipated operating expenses and capital expenditure requirements into mid-2029, funding the company through the anticipated launch of risto-cel in SCD, execution of the BEAM-302 pivotal development plan in AATD, and clinical proof of concept for BEAM-304 in PKU.

About Beam Therapeutics
Beam Therapeutics (Nasdaq: BEAM) is a biotechnology company committed to establishing the leading, fully integrated platform for precision genetic medicines. To achieve this vision, Beam has assembled a platform with integrated gene editing, delivery and internal manufacturing capabilities. Beam’s suite of gene editing technologies is anchored by base editing, a proprietary technology that is designed to enable precise, predictable and efficient single base changes, at targeted genomic sequences, without making double-stranded breaks in the DNA. This has the potential to enable a wide range of therapeutic editing strategies that Beam is using to advance a diversified portfolio of base editing programs. Beam is a values-driven organization committed to its people, cutting-edge science, and a vision of providing lifelong cures to patients suffering from serious diseases.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned not to place undue reliance on these forward-looking statements, including, but not limited to, statements related to: the therapeutic applications and potential of our technology, including with respect to SCD, AATD, PKU and GSDIa; our plans, and anticipated timing, to advance our programs and present data from ongoing clinical trials; the clinical trial designs and expectations for risto-cel, BEAM-103, BEAM-301, BEAM-302 and BEAM-304; our planned submission of a BLA for risto-cel; our expectations regarding the anticipated launch of risto-cel; the potential for an accelerated approval path for BEAM-302; our expected presentations at upcoming medical conferences, including at the ERS Congress; our anticipated regulatory interactions and filings; our expectations regarding the funds that will be available to draw under our credit facility; the sufficiency of our capital resources to fund operating expenses and capital expenditure requirements and the period in which such resources are expected to be available; and our ability to develop lifelong, curative, precision genetic medicines for patients through base editing. Each forward-looking statement is subject to important risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement, including, without limitation, risks and uncertainties related to: our ability to develop, obtain regulatory approval for, and commercialize our product candidates, which may take longer or cost more than planned; our ability to raise additional funding, which may not be available; our ability to obtain, maintain and enforce patent and other intellectual property protection for our product candidates; the uncertainty that our product candidates will receive regulatory approval necessary to initiate or continue human clinical trials; that preclinical testing of our product candidates and preliminary or interim data from preclinical studies and clinical trials may not be predictive of the results or success of ongoing or later clinical trials; that initiation and enrollment of, and anticipated timing to advance, our clinical trials may take longer than expected; that our product candidates, including the delivery modalities we rely on to administer them, may cause serious adverse events; that we may not achieve the funding milestones under our credit facility; that our product candidates may experience manufacturing or supply interruptions or failures; risks related to competitive products; and the other risks and uncertainties identified under the headings “Risk Factors Summary” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Contacts:
Investors:
Holly Manning
Beam Therapeutics
[email protected]

Media:
Josie Butler
1AB
[email protected]

Condensed Consolidated Balance Sheet Data (unaudited)(in thousands) June 30,
2026 December 31,
2025Cash, cash equivalents, and marketable securities$1,152,927 $1,245,210 Total assets 1,386,355 1,481,177 Total liabilities 318,913 242,819 Total stockholders’ equity 1,067,442 1,238,358 Condensed Consolidated Statement of Operations (unaudited)(in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025License and collaboration revenue$490 $8,466 $32,228 $15,936 Operating expenses: Research and development 95,096 101,758 199,620 200,574 General and administrative 31,947 26,859 66,376 54,799 Total operating expenses 127,043 128,617 265,996 255,373 Loss from operations (126,553) (120,151) (233,768) (239,437)Other income (expense): Change in fair value of derivative liabilities (4,200) 1,300 (1,700) 4,500 Change in fair value of non-controlling equity investments 338 4,415 354 2,334 Change in fair value of contingent consideration liabilities (205) (28) 309 (55)Gain on sale of equity method investment 455 — 455 — Interest and other income (expense), net 7,487 12,326 17,354 22,190 Total other income (expense) 3,875 18,013 16,772 28,969 Net loss$(122,678) $(102,138) $(216,996) $(210,468)Unrealized gain (loss) on marketable securities (1,119) (150) (3,300) (669)Comprehensive loss$(123,797) $(102,288) $(220,296) $(211,137)Net loss per common share, basic and diluted$(1.18) $(1.00) $(2.09) $(2.21)Weighted-average common shares outstanding, basic and diluted 104,325,436 101,995,184 103,797,276 95,023,977

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HomeDividends AnalysisREITs AnalysisReal Estate Analysis

SummaryData center REIT Equinix gets prior buy rating reaffirmed after Q2 results in late July.Positives include an investment-grade rating from Fitch, strong dividend coverage, revenue and FFO growth, and global scale with few real competitors.Some downside is seen from a market pullback in EQIX stock and a low upside forecast in the near term, along with a rich valuation.This niche is dependent on high power and cooling needs, putting into question the durability of grids globally. Getty Images

A Prominent Data Center REIT Who Beat Q2 Earnings Estimates Recently Ahhh... the perfect combination of two sectors I've followed for many years, tech and real estate, and what better example of this than a mega data center REIT like

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author does not hold any long positions in the Equinix stock directly, but does hold shares in REIT mutual funds who invest in a diversified portfolio that may include data center REITS, along with others.

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Appoints Julien Perrier Chief Commercial Officer

Completes previously authorized $100 million share repurchase program; Board authorizes additional $50 million under repurchase program

Reaffirms 2026 revenue guidance

RADNOR, Pa., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its second quarter 2026 financial results.

Second Quarter Highlights from Continuing Operations:

Financial results of the Regulatory and Medical Writing business are reported as discontinued operations. The discussion in this earnings release presents the results of continuing operations and excludes amounts related to discontinued operations for all periods presented, unless otherwise noted.

Revenue was $93.3 million, compared to $92.4 million in the second quarter of 2025, representing growth of 1%.
Software revenue was $48.8 million, compared to $46.7 million in the second quarter of 2025, representing growth of 4%.Services revenue was $44.5 million, compared to $45.7 million in the second quarter of 2025, representing a decrease of 3%. Net loss was $6.1 million, compared to a net income of $1.5 million in the second quarter of 2025.
The change primarily reflects the absence of a $5.7 million favorable contingent consideration adjustment recorded in the prior-year period, a $2.9 million unfavorable swing in currency expense, and a $2.2 million increase in reorganization costs, partially offset by lower income tax expense. Adjusted EBITDA was $26.2 million, compared to $27.0 million in the second quarter of 2025, representing a decrease of 3%. “This second quarter was about continuing to execute on our commitments. Overall, we are pleased with our ongoing progress transforming Certara into a company we believe can deliver sustainable double-digit growth,” said Jon Resnick, Chief Executive Officer. “We completed the divestiture of our Regulatory and Medical Writing business, implemented our two new business units, and taken necessary actions to strengthen our leadership team and our commercial model. Our focus in the second half of the year is customer impact and speed of execution.”

“Our second quarter results were in line with our expectations, and we remain focused on executing against our full-year plan,” said Faiz Mohammed, Interim Chief Financial Officer. “We continue to expect full-year revenue growth of 0% to 4% on a comparable continuing operations basis, supported by continued strength in software and improving services performance as we move through the second half of the year.”

Second Quarter 2026 and Recent Corporate Updates

In May, Certara closed the divestiture of its global medical writing and related regulatory services business (“the Regulatory and Medical Writing business”) and announced the reorganization of its company around two business units, Model Informed Discovery and Drug Development (MID3) and Accelerated Clinical Evidence (ACE).In parallel with the reorganization, during the second quarter, Certara executed a reduction in force, focusing predominantly on overhead, impacting approximately 5% of its global employee base. This action, combined with other steps towards operational excellence, is expected to result in a run-rate savings of approximately $13 million. These reductions allow the Company to accelerate innovation and growth and streamline the Company’s cost base, including stranded costs from the divestiture. Certara has appointed Julien Perrier Chief Commercial Officer, effective August 1, 2026. Mr. Perrier brings nearly two decades of international commercial leadership in the life sciences. Most recently, he served as Chief Executive Officer of Ziwig, where he led the commercial development of the AI-powered diagnostic EndoTest. Prior to Ziwig, Mr. Perrier served as a Vice President at IQVIA, Head of the Immunology division, France at AbbVie, and Head of Office Specialty Care Division at Sanofi. As part of Certara’s move to align sales and marketing under a unified commercial leadership model in support of the business units, Mr. Perrier will focus on deepening customer engagement, sharpening go-to-market execution, and ensuring Certara’s products and services deliver clear, demonstrable value to customers worldwide.Certara has appointed Eric Jahn as Chief Information Officer. Mr. Jahn previously served as Senior Vice President, IT. He joined Certara in 2022 and has helped scale the business globally by partnering with all functions as a strategic business partner. Prior to Certara, Mr. Jahn served as Vice President, IT Infrastructure at TIBCO Software and spent seven years at Rocket Software in various IT leadership roles. Second Quarter 2026 Results from Continuing Operations

Financial results of the Regulatory and Medical Writing business are reported as discontinued operations. The discussion in this earnings release presents the results of continuing operations and excludes amounts related to discontinued operations for all periods presented, unless otherwise noted. Refer to Note 4 "Divestiture and Discontinued Operation" in our Form 10-Q for the quarter ended June 30, 2026 for further details.

Total revenue for the second quarter of 2026 was $93.3 million, representing year-over-year growth of 1% on a reported basis. Software revenue for the second quarter of 2026 was $48.8 million, representing year-over-year growth of 4% on a reported basis. Services revenue for the second quarter of 2026 was $44.5 million, representing a year-over-year decrease of 3% on a reported basis.

Total Bookings for the second quarter of 2026 were $98.3 million, representing a year-over-year increase of 1%.

Software Bookings for the second quarter of 2026 were $50.7 million, representing a year-over-year increase of 9%.

Services Bookings for the second quarter of 2026 were $47.6 million, representing a year-over-year decrease of 6%.

Total cost of revenues for the second quarter of 2026 was $35.1 million, an increase of $0.8 million from $34.3 million in the second quarter of 2025. The increase in cost of revenues was primarily due to a $1.0 million increase in employee-related costs and a $0.9 million increase in professional and consulting expenses, partially offset by a decrease in equity-based compensation expense and other miscellaneous expenses.

Total operating expenses for the second quarter of 2026 were $58.3 million, which increased by $7.9 million from $50.4 million in the second quarter of 2025. Higher operating expenses were primarily attributable to a $5.7 million increase related to the remeasurement of the fair value of business acquisition contingent consideration, primarily due to the absence of a non-recurring favorable change recognized in the prior year that reduced expenses in that period, a $1.1 million increase in professional and consulting expenses, a $1.0 million increase in employee-related costs, a $0.8 million increase in depreciation expense, and a $0.6 million increase in executive recruiting expenses, partially offset by a decrease in equity-based compensation expense.

Net loss for the second quarter of 2026 was $6.1 million, compared to net income of $1.5 million in the second quarter of 2025. The $7.6 million increase in loss was primarily driven by higher operating expenses, including a $5.7 million increase related to the remeasurement of the fair value of acquisition-related contingent consideration, $1.1 million aggregate increase in executive recruiting and lease abandonment charges, increased total other expenses, and a higher cost of revenue, partially offset by lower tax expense and higher revenue.

Diluted loss per share for the second quarter of 2026 was $(0.04), as compared to diluted earnings per share of $0.01 for the second quarter of 2025.

Adjusted EBITDA for the second quarter of 2026 was $26.2 million compared to $27.0 million for the second quarter of 2025, a decrease of $0.8 million. See note (1) in the section titled “A Note on Non-GAAP Financial Measures” below for more information on adjusted EBITDA.

Adjusted net income for the second quarter of 2026 was $12.5 million compared to $12.7 million for the second quarter of 2025, a decrease of $0.2 million. Adjusted diluted earnings per share for the second quarter of 2026 was $0.08, compared to $0.08 for the second quarter of 2025. See note (2) in the section titled “A Note on Non-GAAP Financial Measures” below for more information on adjusted net income and adjusted diluted earnings per share.

THREE MONTHS ENDED
JUNE 30, SIX MONTHS ENDED
JUNE 30,  2026   2025   2026   2025 Key Financials(in millions, except per share data)
Revenue$93.3  $92.4  $187.4  $184.5 Software revenue$48.8  $46.7  $98.5  $93.1 Service revenue$44.5  $45.7  $88.8  $91.4 Total bookings$98.3  $97.4  $195.5  $195.7 Software bookings$50.7  $46.6  $99.4  $87.3 Services bookings$47.6  $50.8  $96.1  $108.4 Net income (loss)$(6.1) $1.5  $(17.9) $3.0 Diluted earnings (loss) per share$(0.04) $0.01  $(0.11) $0.02 Adjusted EBITDA$26.2  $27.0  $52.9  $55.4 Adjusted net income$12.5  $12.7  $21.6  $29.5 Adjusted diluted earnings per share$0.08  $0.08  $0.14  $0.18 Cash and cash equivalents     $184.1  $162.3
2026 Financial Outlook

Certara is reaffirming its revenue growth and updating its adjusted EBITDA margin, adjusted diluted earnings per share, and fully diluted share guidance for the full year 2026, to reflect the divestiture of the Regulatory and Medical Writing business and Continuing Operations reporting:

Revenue growth for Continuing Operations, excluding the Regulatory and Medical Writing business, is expected to be 0% to 4%, or revenue of $367 million to $382 million.
Full year 2026 adjusted EBITDA margin for Continuing Operations, excluding the Regulatory and Medical writing business, is expected to be approximately 29% to 31%.
Full year adjusted diluted earnings per share for Continuing Operations, excluding the Regulatory and Medical Writing business is expected to be in the range of $0.31 to $0.36.
Fully diluted shares are expected to be in the range of 155 million to 157 million. Financial results of the Regulatory and Medical Writing business will be reported as discontinued operations for 2026. Through the transaction closing on May 8, 2026, the year-to-date discontinued operations Revenue was $19.2 million.

In the second quarter, the Company repurchased $17.4 million in shares, which completed a $100 million share repurchase program under terms previously authorized by the Board. In the third quarter, the Board approved an additional $50 million under the share repurchase program, reflecting the Company’s continued confidence in the business and its disciplined approach to capital allocation. The program does not have an express expiration date, and all repurchase plans must be brought in advance to the Board.

Please note that the Company has not reconciled adjusted EBITDA, adjusted EBITDA margin or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. The Company expects the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Webcast and Conference Call Details

Certara will host a conference call today, August 4, 2026, at 8:30 a.m. ET to discuss its second quarter 2026 financial results. Investors interested in listening to the conference call are required to register online in advance of the call. A live and archived webcast of the event will be available on the “Investors” section of the Certara website at https://ir.certara.com.

About Certara

Certara accelerates medicines using biosimulation software, technology and services to transform traditional drug discovery and development. Its clients include more than 2,600 biopharmaceutical companies, academic institutions, and regulatory agencies across 70 countries.

Please visit our website at www.certara.com. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.

Such disclosures will be included in the Investor Relations section of our website at https://ir.certara.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

Forward-Looking Statements

This press release contains certain statements that constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, with respect to the Company’s full-year guidance. These statements typically contain words such as “believe,” “may,” “potential,” “will,” “plan,” “could,” “estimate,” “expects” and “anticipates” or the negative of these words or other similar terms or expressions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement and involves significant risks and uncertainties. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot provide any assurance that these expectations will prove to be correct. You should not rely upon forward-looking statements as predictions of future events and actual results, events, or circumstances. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including our ability to realize the expected benefits of the divestiture of our regulatory and medical writing business; any deceleration in, or resistance to, the acceptance of model-informed biopharmaceutical discovery and development; our ability to compete within our market; changes or delays in government regulation relating to the biopharmaceutical industry; trends in research and development spending; operational disruptions, funding constraints and policy changes at the Food and Drug Administration and other government agencies; consolidation within the biopharmaceutical industry; our ability to increase successfully our customer base, expand relationships and the products and services we provide and enter new markets; our ability to retain key personnel or recruit additional qualified personnel; risks related to the mischaracterization of our independent contractors; any delays or defects in our release of new or enhanced software or other biosimulation tools; issues relating to implementation, use and development of artificial intelligence and machine learning in our products and services; failure of our existing customers to renew their software licenses or any delays or terminations of contracts or reductions in scope of work by our existing customers; risks related to our contracts with government customers and receipt of government grants; risks related to any future acquisitions and other strategic transactions; the accuracy of our addressable market estimates; our ability to operate successfully a global business and adverse global economic conditions; our ability to comply with applicable trade compliance and economic sanctions laws and regulations; the impact of litigation; the sufficiency of our insurance coverage; our ability to perform our services in accordance with contractual requirements, regulatory standards and ethical considerations; the loss of more than one of our major customers; our ability to raise capital or generate sufficient cash flows; the ability or inability of our bookings to accurately predict our future revenue and our ability to realize the anticipated revenue reflected in our bookings; our ability to comply with anti-corruption laws; risks related to catastrophic events; the application of evolving corporate governance and public disclosure requirements; disruptions in the operations of the third-party providers who host our software solutions or any limitations on their capacity or interference with our use; any unauthorized access to or use of customer or other proprietary or confidential data or other breach of our cybersecurity measures, compliance with privacy and cybersecurity laws and related contractual requirements; our ability to reliably meet our data storage and management requirements, or the experience of any failures or interruptions in the delivery of our services over the internet; our ability to comply with the terms of any licenses governing our use of third-party open source software; our ability to adequately enforce or defend our ownership and use of our intellectual property and other proprietary rights; any allegations that we are infringing, misappropriating or otherwise violating a third party’s intellectual property rights; our ability to comply with healthcare laws; risks related to our indebtedness; any additional impairment of goodwill or other intangible assets; our ability to use net operating losses; the volatility of the market price of our common stock; future sales of our common stock by existing stockholders; the substantial holdings of our largest stockholder; and the other factors detailed under the captions “Risk Factors” and “Special Note Regarding Forward-Looking Statements” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, and reports, including the Form 10-K filed by the Company with the Securities and Exchange Commission on February 26, 2026, and subsequent reports filed with the SEC. Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, we expressly disclaim any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events.

A Note on Non-GAAP Financial Measures

This press release contains “non-GAAP measures” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Specifically, the Company makes use of the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share which are not recognized terms under GAAP. These measures should not be considered as alternatives to net income (loss), net income (loss) margin, or GAAP diluted earnings per share or revenue as measures of financial performance or any other performance measure derived in accordance with GAAP and should not be considered a measure of discretionary cash available to the Company to invest in the growth of its business. The presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the Company’s results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

You should refer to the footnotes below as well as the “Reconciliation of Non-GAAP Financial Measures” section in this press release below for a further explanation of these measures and reconciliations of these non-GAAP measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.

Management uses various financial metrics, including total revenues, income (loss) from operations, net income (loss), and certain non-GAAP measures, such as adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share, to make budgeting decisions, to make certain compensation decisions, and to compare the Company’s performance against that of other peer companies using similar measures. In addition, management believes these metrics provide useful measures for period-to-period comparisons of the Company’s business, as they remove the effect of certain non-cash expenses and other items not indicative of its ongoing operating performance.

Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical periods. In addition, these non-GAAP measures are frequently used by analysts, investors, and other interested parties to evaluate and assess performance.

(1) Adjusted EBITDA represents net income (loss) excluding interest expense, provision for (benefit from) for income taxes, depreciation and amortization expense, intangible asset amortization, equity-based compensation expense, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense and other items not indicative of our ongoing operating performance. Adjusted EBITDA margin represents adjusted EBITDA divided by revenue.

(2) Adjusted net income and adjusted diluted earnings per share exclude the effect of equity-based compensation expense, amortization of acquisition-related intangible assets, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as income tax provision adjustment for such charges.

In evaluating adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted diluted earnings per share, you should be aware that in the future the Company may incur expenses similar to those eliminated in this presentation and this presentation should not be construed as an inference that future results will be unaffected by unusual items.

Investor Relations and Media Contact:

Jeff Warren and Jay Liu
[email protected]

CERTARA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

THREE MONTHS ENDED
JUNE 30, SIX MONTHS ENDED
JUNE 30,(IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) 2026   2025   2026   2025         Total revenue$93,271  $92,356  $187,363  $184,455 Cost of revenues 35,122   34,285   69,794   69,005 Operating expenses:       Sales and marketing 14,978   13,658   27,928   26,044 Research and development 9,705   8,972   21,991   19,494 General and administrative 21,933   16,700   50,875   35,985 Depreciation and amortization 11,729   11,070   23,235   21,961 Total operating expenses 58,345   50,400   124,029   103,484 Income (loss) from operations (196)  7,671   (6,460)  11,966 Other income (expenses):       Interest expense (4,987)  (4,802)  (9,928)  (9,608)Net other income (expenses) (1,205)  1,501   96   3,226 Total other expenses (6,192)  (3,301)  (9,832)  (6,382)Income (loss) before income taxes (6,388)  4,370   (16,292)  5,584 Provision (benefits) for income taxes on continuing operations (307)  2,874   1,614   2,583 income (loss) from continuing operations, net of tax (6,081)  1,496   (17,906)  3,001 Loss from discontinued operations, net of tax (49,189)  (3,464)  (46,127)  (226)Net income (loss) attributable to common stockholders$(55,270) $(1,968) $(64,033) $2,775 Net income (loss) per share attributable to common stockholders:       Basic - Earnings (loss) per common share from continuing operations$(0.04) $0.01  $(0.11) $0.02 Basic - Earnings (loss) per common share from discontinued operations$(0.32) $(0.02) $(0.30) $— Basic - Earnings (loss) per common share$(0.36) $(0.01) $(0.41) $0.02         Diluted - Earnings (loss) per common share from continuing operations$(0.04) $0.01  $(0.11) $0.02 Diluted - Earnings (loss) per common share from discontinued operations$(0.32) $(0.02) $(0.30) $— Diluted - Earnings (loss) per common share$(0.36) $(0.01) $(0.41) $0.02 Weighted average common shares outstanding:       Basic 154,356,779   160,916,057   156,046,326   160,955,936 Diluted 154,356,779   161,849,002   156,046,326   161,601,024 CERTARA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) JUNE 30,
2026 DECEMBER 31,
2025Assets    Current assets:    Cash and cash equivalents $184,138  $189,392 Accounts receivable, net of allowances for credit losses of $1,940 and $2,235  100,759   101,574 Prepaid expenses and other current assets  27,289   21,887 Current assets of discontinued operations  —   2,266 Total current assets  312,186   315,119 Other assets:    Property and equipment, net  1,673   1,805 Operating lease right-of-use assets  8,952   11,840 Goodwill  718,125   745,056 Intangible assets, net of accumulated amortization of $345,829 and $415,804  345,207   361,835 Deferred income taxes  11,115   3,856 Other long-term assets  2,540   1,509 Other assets of discontinued operations  —   115,562 Total assets $1,399,798  $1,556,582 Liabilities and stockholders' equity    Current liabilities:    Accounts payable $2,723  $3,040 Accrued expenses  36,211   59,658 Current portion of deferred revenue  77,341   75,398 Current portion of long-term debt  2,963   2,963 Other current liabilities  3,161   4,365 Current liabilities of discontinued operations  —   7,961 Total current liabilities  122,399   153,385 Long-term liabilities:    Deferred revenue, net of current portion  2,704   2,350 Deferred income taxes  8,947   34,366 Operating lease liabilities, net of current portion  6,945   8,438 Long-term debt, net of current portion and debt discount  288,876   290,131 Other long-term liabilities  3,412   5,117 Total liabilities  433,283   493,787 Commitments and contingencies    Stockholders' equity    Preferred shares, $0.01 par value, 50,000,000 shares authorized; no shares issued, and outstanding as of June 30, 2026 and December 31, 2025, respectively  —   — Common shares, $0.01 par value, 600,000,000 shares authorized, 166,959,761 and 164,005,450 shares issued as of June 30, 2026 and December 31, 2025; 152,499,023 and 159,139,562 shares outstanding as of June 30,2026 and December 31, 2025, respectively  1,671   1,641 Additional paid-in capital  1,277,660   1,255,653 Accumulated deficit  (193,909)  (129,876)Accumulated other comprehensive income  9,057   2,040 Treasury stock at cost, 14,460,738 and 4,865,888 shares at June 30, 2026 and December 31, 2025, respectively  (127,964)  (66,663)Total stockholders' equity  966,515   1,062,795 Total liabilities and stockholders' equity $1,399,798  $1,556,582 CERTARA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)   SIX MONTHS ENDED JUNE 30,(IN THOUSANDS)  2026   2025 Cash flows from operating activities:    Net income (loss) from continuing operations $(17,906) $3,001 Adjustments to reconcile net income (loss) to net cash provided by operating activities:    Depreciation and amortization  32,342   31,271 Amortization of debt issuance costs  270   289 Provision for credit losses  (22)  401 Equity-based compensation expense  13,414   15,315 Change in fair value of contingent considerations  7,230   (5,901)Deferred income taxes  (8,698)  (1,969)Changes in assets and liabilities:    Accounts receivable  8,231   5,575 Prepaid expenses and other assets  (5,622)  5,873 Accounts payable, accrued expenses, and other liabilities  (15,682)  (19,487)Deferred revenues  2,041   (9,863)Other operating activities, net  (14)  (1,176)Cash provided by operating activities - continuing operations  15,584   23,329 Cash provided by operating activities - discontinued operations  6,148   11,865 Net cash provided by operating activities  21,732   35,194 Cash flows from investing activities:    Capital expenditures  (1,252)  (536)Capitalized software development costs  (13,223)  (12,199)Cash used in investing activities - continuing operations  (14,475)  (12,735)Cash provided by investing activities - discontinued operations  69,435   — Net cash provided (used) in investing activities  54,960   (12,735)Cash flows from financing activities:    Payments on long-term debt  (1,481)  (1,500)Common stock repurchase program  (57,389)  (25,000)Payments for business acquisition related contingent consideration  (20,121)  (13,230)Payment of taxes on shares withheld for employee taxes  (3,339)  (4,960)Net cash used in financing activities  (82,330)  (44,690)Effect of foreign exchange rate on cash and cash equivalents  384   5,314 Net decrease in cash and cash equivalents  (5,254)  (16,917)Cash and cash equivalents at beginning of period  189,392   179,183 Cash and cash equivalents at end of period $184,138  $162,266 NON-GAAP FINANCIAL MEASURES

The following table reconciles net income (loss) from continuing operations to Adjusted EBITDA:

THREE MONTHS ENDED
JUNE 30, SIX MONTHS ENDED
JUNE 30,  2026   2025   2026   2025  (in thousands)Net income (loss) from continuing operations(a)$(6,081) $1,496  $(17,906) $3,001 Interest expense(a) 4,987   4,802   9,928   9,608 Interest income(a) (943)  (1,243)  (2,069)  (2,885)(Benefit from) Provision for income taxes(a) (307)  2,874   1,614   2,583 Intangible asset amortization and fixed assets depreciation(a) 16,329   15,733   32,342   31,271 Currency (gain) loss(a) 2,358   (577)  2,418   (639)Equity-based compensation expense(b) 6,094   8,245   13,414   15,315 Change in fair value of contingent consideration(d) —   (5,722)  7,230   (5,901)Acquisition-related (income) expenses(e) (132)  428   (114)  1,304 Reorganization expense(f) 3,182   934   4,187   1,085 Loss (gain) on disposal of fixed assets(g) (24)  (1)  (14)  5 Executive recruiting expense(h) 735   —   1,851   661         Adjusted EBITDA$26,198  $26,969  $52,881  $55,408
The following table reconciles net income (loss) from continuing operations to adjusted net income:

THREE MONTHS ENDED
JUNE 30, SIX MONTHS ENDED
JUNE 30,  2026   2025   2026   2025  ( in thousands)Net income (loss) from continuing operations(a)$(6,081) $1,496  $(17,906) $3,001 Currency (gain) loss(a) 2,358   (577)  2,418   (639)Equity-based compensation expense(b) 6,094   8,245   13,414   15,315 Amortization of acquisition-related intangible assets(c) 10,849   10,947   21,640   21,938 Change in fair value of contingent consideration(d) —   (5,722)  7,230   (5,901)Acquisition-related (income) expenses(e) (132)  428   (114)  1,304 Reorganization expense(f) 3,182   934   4,187   1,085 Loss (gain) on disposal of fixed assets(g) (24)  (1)  (14)  5 Executive recruiting expense(h) 735   —   1,851   661 Income tax expense impact of adjustments(i) (4,441)  (3,023)  (11,132)  (7,319)        Adjusted net income$12,540  $12,727  $21,574  $29,450
The following tables reconciles diluted earnings per share from continuing operations to adjusted diluted earnings per share:

THREE MONTHS ENDED
JUNE 30, SIX MONTHS ENDED
JUNE 30,  2026   2025   2026   2025         Diluted earnings per share from continuing operations (a)$(0.04) $0.01  $(0.11) $0.02 Currency (gain) loss(a) 0.02   -   0.02   - Equity-based compensation expense(b) 0.04   0.05   0.08   0.09 Amortization of acquisition-related intangible assets(c) 0.07   0.07   0.13   0.14 Change in fair value of contingent consideration(d) -   (0.04)  0.05   (0.04)Acquisition-related expenses(e) -   -   -   0.01 Reorganization expense(f) 0.02   0.01   0.03   0.01 Loss (gain) on disposal of fixed assets(g) -   -   -   - Executive recruiting expense(h) -   -   0.01   - Income tax expense impact of adjustments(i) (0.03)  (0.02)  (0.07)  (0.05)        Adjusted diluted earnings per share$0.08  $0.08  $0.14  $0.18         Basic weighted average common shares outstanding 154,356,779   160,916,057   156,046,326   160,955,936 Effect of potentially dilutive shares outstanding (j) 595,507   932,945   433,412   645,088 Adjusted diluted weighted average common shares outstanding 154,952,286   161,849,002   156,479,738   161,601,024
(a) Represents a measure determined under GAAP.

(b) Represents expense related to equity-based compensation. Equity-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy.

(c) Represents amortization costs associated with acquired intangible assets in connection with business acquisitions.

(d) Represents expense associated with fair value adjustment or adjustment of contingent consideration of business acquisition.

(e) Represents costs associated with mergers and acquisitions and any retention bonuses pursuant to the acquisitions.

(f) Represents expenses related to reorganization, including legal entity reorganization and lease abandonment costs associated with the evaluation of our office space footprint.

(g) Represents the gain/loss related to disposal of fixed assets.

(h) Represents recruiting, relocation expenses, and retention costs related to senior executives.

(i) Represents the income tax effect of the non-GAAP adjustments calculated using the applicable statutory rate by jurisdiction.

(j) Represents potentially dilutive shares that were included from our GAAP diluted weighted average common shares outstanding.

Original source text

WALTHAM, Mass.--(BUSINESS WIRE)--Revvity, Inc. (NYSE: RVTY), today reported financial results for the second quarter ended July 5, 2026.

The Company reported GAAP earnings per share from continuing operations of $0.48, as compared to $0.47 in the same period a year ago. Revenue for the quarter was $730 million, as compared to $720 million in the same period a year ago. GAAP operating income from continuing operations for the quarter was $89 million (which includes $16 million of tariff related refunds), as compared to $91 million for the same period a year ago. GAAP operating profit margin from continuing operations was 12.2% as a percentage of revenue, as compared to 12.6% in the same period a year ago.

Adjusted earnings per share from continuing operations for the quarter was $1.41, as compared to $1.18 in the same period a year ago. Adjusted operating income was $211 million, as compared to $192 million for the same period a year ago. Adjusted operating profit margin was 28.9% as a percentage of revenue, as compared to 26.6% in the same period a year ago.

Enters into Definitive Agreement to Divest China Immunodiagnostics Business

The Company recently entered into a definitive agreement to divest its Immunodiagnostics business in China (“China IDX”), which represented approximately 6% of the Company’s total revenue in fiscal year 2025. The transaction is expected to close by the end of 2027, subject to customary closing conditions and regulatory approvals. The Company is providing second quarter 2026 financial results on a reported and pro forma basis; forward-looking guidance is provided on a pro forma basis only and excludes China IDX.

Pro forma earnings per share from continuing operations for the quarter was $0.52, as compared to $0.48 in the same period a year ago. Pro forma revenue for the quarter was $711 million, as compared to $681 million in the same period a year ago. Pro forma operating income was $94 million, as compared to $85 million in the same period a year ago. Pro forma operating profit margin was 13.2% as a percentage of pro forma revenue, as compared to 12.4% in the same period a year ago.

On a pro forma adjusted basis, earnings per share for the quarter was $1.41 (which includes approximately $0.11 from tariff related refunds), as compared to $1.15 in the same period a year ago. Pro forma adjusted operating income was $209 million (which includes $16 million of tariff related refunds), as compared to $180 million for the same period a year ago. Pro forma adjusted operating profit margin was 29.3% as a percentage of pro forma revenue, as compared to 26.5% in the same period a year ago.

Adjustments for the Company’s non-GAAP financial measures have been noted in the attached reconciliations.

“Revvity delivered a strong second quarter, with results above our expectations and encouraging signs of increased demand across our customer base,” said Prahlad Singh, president and chief executive officer of Revvity. “As we enter the second half of the year, given the clear momentum in our end markets, we are utilizing a portion of recently received tariff refunds to increase investments across the business, capitalize on emerging opportunities, and support future growth.”

Financial Overview by Reporting Segment

Life Sciences

Second quarter 2026 revenue was $359 million, as compared to $366 million in the same period a year ago. Pro forma revenue decreased 2% and pro forma organic revenue decreased 3% as compared to the same period a year ago. Second quarter 2026 adjusted operating income was $112 million, as compared to $115 million in the same period a year ago. Adjusted operating profit margin was 31.1% as a percentage of revenue, as compared to 31.6% in the same period a year ago. Diagnostics

Second quarter 2026 revenue was $371 million, as compared to $354 million in the same period a year ago. Pro forma revenue increased 12% and pro forma organic revenue increased 11% as compared to the same period a year ago. Second quarter 2026 adjusted operating income was $113 million, as compared to $89 million in the same period a year ago. Adjusted operating profit margin was 30.4% as a percentage of revenue, as compared to 25.2% in the same period a year ago. Full Year 2026 Guidance

For the full year 2026, on a pro forma basis, the Company forecasts total revenue of $2.83-$2.86 billion, pro forma organic revenue growth of 4-5%, and pro forma adjusted earnings per share of $5.30-$5.40.

Guidance for the full year 2026 for pro forma organic revenue growth and pro forma adjusted EPS is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company’s results prepared in accordance with GAAP.

Webcast Information

The Company will discuss its second quarter 2026 results and its outlook for business trends during a webcast on August 4, 2026, at 7:30 a.m. Eastern Time. A live audio webcast and presentation will be available on the Investors section of the Company’s website, ir.revvity.com.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.

Factors Affecting Future Performance

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as “believes”, “intends”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “will” and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) fluctuations in the global economic and political environments, including as the result of recently implemented and recently threatened tariff increases; (3) our failure to introduce new products in a timely manner; (4) our ability to execute acquisitions and divestitures, license technologies, or to successfully integrate acquired businesses or licensed technologies into our existing businesses or to make them profitable; (5) our ability to compete effectively; (6) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (7) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (8) disruptions in the supply of raw materials and supplies; (9) our ability to retain key personnel; (10) significant disruption in our information technology systems, or cybercrime; (11) uncertainties related to the development and use of AI in our product offerings and internal operations; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) our failure to comply with data privacy and information security laws and regulations; (18) regulatory changes; (19) our failure to comply with healthcare industry regulations; (20) economic, political and other risks associated with foreign operations; (21) our ability to obtain future financing; (22) restrictions in our credit agreements; (23) significant fluctuations in our stock price; (24) reduction or elimination of dividends on our common stock; and (25) other factors which we describe under the caption “Risk Factors” in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About Revvity

At Revvity, “impossible” is inspiration, and “can’t be done” is a call to action. Revvity provides health science solutions, technologies, expertise and services that deliver complete workflows from discovery to development, and diagnosis to cure. Revvity is revolutionizing what’s possible in healthcare, with specialized focus areas in translational multi-omics technologies, biomarker identification, imaging, prediction, screening, detection and diagnosis, informatics and more.

With 2025 revenue of $2.9 billion and approximately 11,000 employees, Revvity serves customers across pharmaceutical and biotech, diagnostic labs, academia and governments. It is part of the S&P 500 index and has customers in more than 160 countries.

Stay updated by following our Newsroom, LinkedIn, X, YouTube, Facebook and Instagram.

Revvity, Inc. and Subsidiaries

CONDENSED CONSOLIDATED INCOME STATEMENTS

Three Months Ended July 5, 2026

Three Months Ended June 29, 2025

(In thousands, except per share data)

As Reported

Pro Forma

As Reported

Pro Forma

Revenue

$

729,688

$

711,109

$

720,284

$

680,547

Cost of revenue

312,822

302,876

327,728

306,814

Selling, general and administrative expenses

278,576

265,739

248,526

235,812

Research and development expenses

48,974

48,798

53,270

53,270

Operating income from continuing operations

89,316

93,696

90,760

84,651

Interest income

(5,259

)

(5,242

)

(8,345

)

(8,327

)

Interest expense

22,990

22,990

22,937

22,937

Change in fair value of investments

5,251

5,251

1,955

1,955

Other expense, net

2,803

4,003

5,563

4,868

Income from continuing operations, before income taxes

63,531

66,694

68,650

63,218

Provision for income taxes

10,050

8,214

13,428

6,754

Income from continuing operations

53,481

58,480

55,222

56,464

Loss from discontinued operations

(1,661

)

(1,661

)

(1,274

)

(1,274

)

Net income

$

51,820

$

56,819

$

53,948

$

55,190

Diluted earnings per share:

Income from continuing operations

$

0.48

$

0.52

$

0.47

$

0.48

Loss from discontinued operations

(0.01

)

(0.01

)

(0.01

)

(0.01

)

Net income

$

0.47

$

0.51

$

0.46

$

0.47

Weighted average diluted shares of common stock outstanding

111,629

111,629

117,538

117,538

ABOVE PREPARED IN ACCORDANCE WITH GAAP

Additional supplemental information(1):

(per share, continuing operations)

Three Months Ended July 5, 2026

Three Months Ended June 29, 2025

As Reported

Pro Forma

As Reported

Pro Forma

GAAP EPS from continuing operations

$

0.48

$

0.52

$

0.47

$

0.48

Amortization of intangible assets

0.76

0.70

0.73

0.68

Purchase accounting adjustments

0.02

0.02

0.02

0.02

Acquisition and divestiture-related costs

—

—

0.01

0.01

Transformation costs

(0.01

)

(0.01

)

—

—

Change in fair value of investments

0.05

0.05

0.02

0.02

Significant litigation matters and settlements

—

—

0.01

0.01

Restructuring and other

0.32

0.32

0.10

0.10

Tax on above items

(0.21

)

(0.19

)

(0.16

)

(0.16

)

Adjusted EPS from continuing operations

$

1.41

$

1.41

$

1.18

$

1.15

(1) amounts may not sum due to rounding

Revvity, Inc. and Subsidiaries

CONDENSED CONSOLIDATED INCOME STATEMENTS

Six Months Ended July 5, 2026

Six Months Ended June 29, 2025

(In thousands, except per share data)

As Reported

Pro Forma

As Reported

Pro Forma

Revenue

$

1,440,806

$

1,398,021

$

1,385,046

$

1,309,245

Cost of revenue

636,285

612,042

616,944

578,190

Selling, general and administrative expenses

532,458

505,515

498,245

507,149

Research and development expenses

106,861

106,684

106,867

106,867

Operating income from continuing operations

165,202

173,780

162,990

117,039

Interest income

(11,563

)

(11,535

)

(18,426

)

(18,395

)

Interest expense

47,708

47,708

45,901

45,901

Change in fair value of investments

9,455

9,455

(1,118

)

(1,118

)

Other expense, net

6,079

6,567

15,601

14,296

Income from continuing operations, before income taxes

113,523

121,585

121,032

76,355

Provision for income taxes

19,149

17,814

24,141

23,664

Income from continuing operations

94,374

103,771

96,891

52,691

Loss from discontinued operations

(1,836

)

(1,836

)

(706

)

(706

)

Net income

$

92,538

$

101,935

$

96,185

$

51,985

Diluted earnings per share:

Income from continuing operations

$

0.84

$

0.93

$

0.82

$

0.44

Loss from discontinued operations

(0.02

)

(0.02

)

(0.01

)

(0.01

)

Net income

$

0.82

$

0.91

$

0.81

$

0.43

Weighted average diluted shares of common stock outstanding

111,746

111,746

118,882

118,882

ABOVE PREPARED IN ACCORDANCE WITH GAAP

Additional supplemental information(1):

(per share, continuing operations)

Six Months Ended July 5, 2026

Six Months Ended June 29, 2025

As Reported

Pro Forma

As Reported

Pro Forma

GAAP EPS from continuing operations

$

0.84

$

0.93

$

0.82

$

0.44

Amortization of intangible assets

1.52

1.41

1.41

1.32

Purchase accounting adjustments

0.02

0.02

0.02

0.02

Acquisition and divestiture-related costs

0.01

0.01

0.03

0.03

Change in fair value of investments

0.08

0.08

(0.01

)

(0.01

)

Loss from probable dispositions

—

—

—

0.29

Significant litigation matters and settlements

—

—

0.10

0.10

Significant environmental matters

—

—

(0.01

)

(0.01

)

Disposition of businesses and assets, net

(0.05

)

(0.05

)

—

—

Mark to market on postretirement benefits

(0.02

)

(0.02

)

0.04

0.04

Restructuring and other

0.41

0.40

0.12

0.12

Tax on above items

(0.36

)

(0.34

)

(0.32

)

(0.23

)

Adjusted EPS from continuing operations

$

2.47

$

2.45

$

2.19

$

2.11

(1) amounts may not sum due to rounding

Revvity, Inc. and Subsidiaries

REVENUE AND OPERATING INCOME (LOSS)

Three Months Ended July 5, 2026

Three Months Ended June 29, 2025

(In thousands, except percentages)

As Reported

Pro Forma

As Reported

Pro Forma

Revenue and adjusted operating income

Revenue

$

729,688

$

711,109

$

720,284

$

680,547

Operating income from continuing operations

$

89,316

$

93,696

$

90,760

$

84,651

OP%

12.2

%

13.2

%

12.6

%

12.4

%

Amortization of intangible assets

84,871

78,383

85,289

79,903

Purchase accounting adjustments

1,866

1,866

2,178

2,178

Acquisition and divestiture-related costs

105

39

1,248

1,248

Transformation costs

(736

)

(736

)

—

—

Significant litigation matters and settlements

79

79

1,124

1,124

Restructuring and other

35,508

35,199

11,203

11,203

Adjusted operating income

$

211,009

$

208,526

$

191,802

$

180,307

OP%

28.9

%

29.3

%

26.6

%

26.5

%

Three Months Ended

July 5,

2026

June 29,

2025

(In thousands, except percentages)

Segment revenue:

Life Sciences

$

358,699

$

365,898

Diagnostics

370,989

354,386

Segment revenue

729,688

720,284

Segment operating income:

Life Sciences

$

111,534

$

115,469

31.1

%

31.6

%

Diagnostics

112,866

89,422

30.4

%

25.2

%

Segment operating income

224,400

204,891

Corporate

(13,391

)

(13,089

)

Adjusted operating income

211,009

191,802

Amortization of intangible assets

(84,871

)

(85,289

)

Purchase accounting adjustments

(1,866

)

(2,178

)

Acquisition and divestiture-related costs

(105

)

(1,248

)

Transformation costs

736

—

Significant litigation matters and settlements

(79

)

(1,124

)

Restructuring and other

(35,508

)

(11,203

)

Reported operating income from continuing operations

$

89,316

$

90,760

REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries

REVENUE AND OPERATING INCOME (LOSS)

Six Months Ended July 5, 2026

Six Months Ended June 29, 2025

(In thousands, except percentages)

As Reported

Pro Forma

As Reported

Pro Forma

Revenue and adjusted operating income

Revenue

$

1,440,806

$

1,398,021

$

1,385,046

$

1,309,245

Operating income from continuing operations

165,202

173,780

162,990

117,039

OP%

11.5

%

12.4

%

11.8

%

8.9

%

Amortization of intangible assets

169,952

157,092

167,989

157,246

Purchase accounting adjustments

2,007

2,007

2,001

2,001

Acquisition and divestiture-related costs

387

324

3,789

3,789

Disposition of businesses and assets, net

(5,074

)

(5,074

)

—

—

Transformation costs

58

58

—

—

Loss from probable dispositions

—

—

—

34,243

Significant litigation matters and settlements

148

148

11,710

11,710

Significant environmental matters

—

—

(1,208

)

(1,208

)

Restructuring and other

46,183

45,197

14,442

14,442

Adjusted operating income

$

378,863

$

373,532

$

361,713

$

339,262

OP%

26.3

%

26.7

%

26.1

%

25.9

%

Six Months Ended

July 5,

2026

June 29,

2025

(In thousands, except percentages)

Segment revenue:

Life Sciences

$

720,544

$

706,293

Diagnostics

720,262

678,753

Segment revenue

1,440,806

1,385,046

Segment operating income:

Life Sciences

$

215,513

$

221,180

29.9

%

31.3

%

Diagnostics

188,988

163,437

26.2

%

24.1

%

Segment operating income

404,501

384,617

Corporate

(25,638

)

(22,904

)

Adjusted operating income

378,863

361,713

Amortization of intangible assets

(169,952

)

(167,989

)

Purchase accounting adjustments

(2,007

)

(2,001

)

Acquisition and divestiture-related costs

(387

)

(3,789

)

Disposition of businesses and assets, net

5,074

—

Transformation costs

(58

)

—

Significant litigation matters and settlements

(148

)

(11,710

)

Significant environmental matters

—

1,208

Restructuring and other

(46,183

)

(14,442

)

Reported operating income from continuing operations

$

165,202

$

162,990

REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

July 5,

2026

December 28,

2025

Current assets:

Cash and cash equivalents

$

1,022,943

$

919,860

Accounts receivable, net

709,175

744,671

Inventories, net

378,502

379,497

Other current assets

187,101

195,719

Total current assets

2,297,721

2,239,747

Property, plant and equipment, net

456,251

479,249

Operating lease right-of-use assets, net

150,945

165,439

Intangible assets, net

2,224,001

2,347,003

Goodwill

6,607,802

6,613,493

Other assets, net

309,114

323,480

Total assets

$

12,045,834

$

12,168,411

Current liabilities:

Current portion of long-term debt

$

572,156

$

588,828

Accounts payable

165,740

185,464

Accrued expenses and other current liabilities

538,461

556,954

Total current liabilities

1,276,357

1,331,246

Long-term debt

2,633,094

2,631,236

Long-term liabilities

771,359

807,461

Operating lease liabilities

136,266

148,108

Total liabilities

4,817,076

4,918,051

Total stockholders' equity

7,228,758

7,250,360

Total liabilities and stockholders' equity

$

12,045,834

$

12,168,411

PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(In thousands)

July 5,

2026

June 29,

2025

July 5,

2026

June 29,

2025

Operating activities:

Net income

$

51,820

$

53,948

$

92,538

$

96,185

Loss from discontinued operations, net of income taxes

1,661

1,274

1,836

706

Income from continuing operations

53,481

55,222

94,374

96,891

Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:

Stock-based compensation

10,731

10,133

19,446

17,864

Restructuring and other

35,508

11,203

46,183

14,442

Depreciation and amortization

102,039

102,778

207,095

200,200

Change in fair value of contingent consideration

1,626

459

1,527

(166

)

Amortization of deferred debt financing costs and

accretion of discounts

1,301

1,218

2,440

2,320

Change in fair value of investments

5,251

1,955

9,455

(1,118

)

Unrealized foreign exchange loss

86

206

186

140

Gains on disposition of businesses and assets, net

—

—

(5,074

)

—

Changes in assets and liabilities which (used) provided cash:

Accounts receivable, net

(17,631

)

(40,041

)

43,916

(21,901

)

Inventories, net

8,060

11,128

(4,778

)

5,642

Accounts payable

(4,320

)

(5,576

)

(18,064

)

3,278

Accrued expenses and other

(4,189

)

(14,367

)

(78,876

)

(49,177

)

Net cash provided by operating activities of continuing operations

191,943

134,318

317,830

268,415

Net cash used in operating activities of discontinued operations

—

—

(10,657

)

(5,942

)

Net cash provided by operating activities

191,943

134,318

307,173

262,473

Investing activities:

Capital expenditures

(11,073

)

(18,868

)

(30,848

)

(34,850

)

Purchases of investments and notes receivables

(2,506

)

—

(3,561

)

—

Proceeds from investments and notes receivables

6,819

—

7,496

—

Proceeds from dispositions of property, plant and equipment

3,036

—

12,039

—

Proceeds from disposition of businesses and assets

—

—

158

229

Cash paid for acquisitions, net of cash acquired

219

—

(67,061

)

—

Net cash used in investing activities of continuing operations

(3,505

)

(18,868

)

(81,777

)

(34,621

)

Net cash provided by investing activities of discontinued operations

—

9,375

—

18,750

Net cash used in investing activities

(3,505

)

(9,493

)

(81,777

)

(15,871

)

Financing Activities:

Payments of debt financing costs

—

(72

)

—

(2,474

)

Payments on other credit facilities

—

(53

)

—

(103

)

Payments for acquisition-related contingent consideration

(350

)

(161

)

(350

)

(1,978

)

Proceeds from issuance of common stock under stock plans

996

—

6,437

2,632

Purchases of common stock

(15,992

)

(293,907

)

(102,488

)

(447,501

)

Dividends paid

(7,814

)

(8,282

)

(15,654

)

(16,715

)

Net cash used in financing activities

(23,160

)

(302,475

)

(112,055

)

(466,139

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(2,563

)

31,953

(10,190

)

48,075

Net increase (decrease) in cash, cash equivalents, and restricted cash

162,715

(145,697

)

103,151

(171,462

)

Cash, cash equivalents, and restricted cash at beginning of period

861,466

1,138,687

921,030

1,164,452

Cash, cash equivalents, and restricted cash at end of period

$

1,024,181

$

992,990

$

1,024,181

$

992,990

Supplemental disclosure of cash flow information:

Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:

Cash and cash equivalents

$

1,022,943

$

991,849

$

1,022,943

$

991,849

Restricted cash included in other current assets

713

1,141

713

1,141

Restricted cash included in other assets

525

—

525

—

Total cash, cash equivalents and restricted cash

$

1,024,181

$

992,990

$

1,024,181

$

992,990

PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries

RECONCILIATION OF FINANCIAL METRICS (1)

Continuing Operations

Three Months Ended

July 5, 2026

Pro forma organic revenue growth:

Pro forma revenue growth from continuing operations

4%

Less: effect of foreign exchange rates

0%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

1%

Pro forma organic revenue growth from continuing operations

3%

Life Sciences

Three Months Ended

July 5, 2026

Pro forma organic revenue growth:

Pro forma revenue growth from continuing operations

-2%

Less: effect of foreign exchange rates

0%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

1%

Pro forma organic revenue growth from continuing operations

-3%

Diagnostics

Three Months Ended

July 5, 2026

Pro forma organic revenue growth:

Pro forma revenue growth from continuing operations

12%

Less: effect of foreign exchange rates

1%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

0%

Pro forma organic revenue growth from continuing operations

11%

(1) amounts may not sum due to rounding

Revvity, Inc. and Subsidiaries

RECONCILIATION OF FINANCIAL METRICS (1)

Continuing Operations

Six Months Ended

July 5, 2026

Pro forma organic revenue growth:

Pro forma revenue growth from continuing operations

7%

Less: effect of foreign exchange rates

2%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

1%

Pro forma organic revenue growth from continuing operations

4%

Life Sciences

Six Months Ended

July 5, 2026

Pro forma organic revenue growth:

Pro forma revenue growth from continuing operations

2%

Less: effect of foreign exchange rates

1%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

1%

Pro forma organic revenue growth from continuing operations

0%

Diagnostics

Six Months Ended

July 5, 2026

Pro forma organic revenue growth:

Pro forma revenue growth from continuing operations

12%

Less: effect of foreign exchange rates

2%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

0%

Pro forma organic revenue growth from continuing operations

10%

(1) amounts may not sum due to rounding

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

We use the term “organic revenue” to refer to GAAP revenue, excluding the effect of foreign currency changes and revenue from recent acquisitions, divestitures and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term “organic revenue growth” or “organic growth” to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year.

We use the term “adjusted gross margin” to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions and asset impairments. We use the related term “adjusted gross margin percentage” to refer to adjusted gross margin as a percentage of revenue.

We use the term “adjusted SG&A expense” to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, asset impairments, significant environmental charges, and restructuring and other charges. We use the related term “adjusted SG&A percentage” to refer to adjusted SG&A expense as a percentage of revenue.

We use the term “adjusted R&D expense” to refer to GAAP R&D expense, excluding amortization of intangible assets and purchase accounting adjustments. We use the related term “adjusted R&D percentage” to refer to adjusted R&D expense as a percentage of revenue.

We use the term “adjusted net interest and other expense” to refer to GAAP net interest and other expense, excluding adjustments for mark-to-market accounting on post-retirement benefits, changes in foreign exchange and interest associated with acquisitions and divestitures, changes in the value of investments and debt extinguishment costs.

We use the term “adjusted operating income” to refer to GAAP operating income, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, asset impairments, and restructuring and other charges. We use the related terms “adjusted operating profit percentage,” “adjusted operating profit margin,” and “adjusted operating margin” to refer to adjusted operating income as a percentage of revenue.

We use the term “free cash flow” to refer to net cash provided by (used in) operating activities of continuing operations, less payments for additions to property, plant and equipment from continuing operations (“capital expenditures”) plus the proceeds from sales of plant, property and equipment from continuing operations (“capital disposals”).

We use the term “adjusted net income” to refer to GAAP income from continuing operations, excluding amortization of intangible assets, debt extinguishment costs, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, changes in the value of investments, disposition of businesses and assets, net, changes in foreign exchange and interest associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events.

We use the term “adjusted earnings per share from continuing operations,” “adjusted earnings per share,” “adjusted EPS,” or “adjusted EPS from continuing operations” to refer to GAAP earnings per share from continuing operations, excluding amortization of intangible assets, debt extinguishment costs, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, changes in the value of investments, disposition of businesses and assets, net, changes in foreign exchange and interest associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events.

We use the term “pro forma organic revenue” to refer to organic revenue excluding revenue from probable dispositions. We use the related term “pro forma organic revenue growth”, “pro forma organic revenue growth from continuing operations” or “pro forma organic growth” to refer to the measure of comparing current period pro forma organic revenue with the corresponding period of the prior year.

We use the term “pro forma adjusted gross margin” to refer to adjusted gross margin, excluding gross margin from probable dispositions. We use the related term “pro forma adjusted gross margin percentage” to refer to pro forma adjusted gross margin as a percentage of pro forma revenue.

We use the term “pro forma adjusted SG&A expense” to refer to adjusted SG&A expense, excluding SG&A expense from probable dispositions and gains(losses) on sale of probable dispositions. We use the related term “pro forma adjusted SG&A percentage” to refer to pro forma adjusted SG&A expense as a percentage of pro forma revenue.

We use the term “pro forma adjusted R&D expense” to refer to adjusted R&D expense, excluding R&D expense from probable dispositions. We use the related term “pro forma adjusted R&D percentage” to refer to pro forma adjusted R&D expense as a percentage of pro forma revenue.

We use the term “pro forma adjusted net interest and other expense” to refer to adjusted net interest and other expense, excluding net interest and expense from probable dispositions.

We use the term “pro forma adjusted operating income” to refer to adjusted operating income, excluding operating income from probable dispositions. We use the related terms “pro forma adjusted operating profit percentage,” “pro forma adjusted operating profit margin,” and “pro forma adjusted operating margin” to refer to pro forma adjusted operating income as a percentage of pro forma revenue.

We use the term “pro forma adjusted earnings per share from continuing operations,” “pro forma adjusted earnings per share,” “pro forma adjusted EPS,” or “pro forma adjusted EPS from continuing operations” to refer to adjusted earnings per share from continuing operations, excluding net income from probable dispositions and gains (losses) on sale of probable dispositions.

Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item:

Amortization of intangible assets—purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Debt extinguishment costs—we incur costs and income related to the extinguishment of debt, including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and expense or income from hedges to lock in make-whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. Purchase accounting adjustments—accounting rules require us to adjust various balance sheet accounts, including inventory, fixed assets, deferred revenue and deferred rent balances to fair value at the time of the acquisition. As a result, the expenses for these items in our GAAP results are not the same as what would have been recorded by the acquired entity. Accounting rules also require us to estimate the fair value of contingent consideration at the time of the acquisition, and any subsequent changes to the estimate or payment of the contingent consideration and purchase accounting adjustments are charged to expense or income. We exclude the impact of any changes to contingent consideration from our non-GAAP measures because we believe these expenses or benefits do not accurately reflect the performance of our ongoing operations for the period in which such expenses or benefits are recorded. Acquisition and divestiture-related expenses—we incur legal, due diligence, stay bonuses, incentive awards, stock-based compensation, interest, foreign exchange gains and losses, integration expenses, rebranding expenses, and other costs related to acquisitions and divestitures. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. Transformation costs—transformation costs consist of external professional service costs related to transformation initiatives focused on business processes modernization, automation, and implementation of global systems to support the new Revvity Business Model. These costs are determined to be noncapitalizable in accordance with accounting standards. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported. Asset impairments—we incur expenses related to asset impairments. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Restructuring and other charges—restructuring and other charges consist of employee severance, other exit costs, abandonments or associated asset write-downs, cost of terminating certain lease agreements or contracts as well as costs associated with relocating facilities. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported. Adjustments for mark-to-market accounting on post-retirement benefits—we exclude adjustments for mark-to-market accounting on post-retirement benefits, and therefore only our projected costs are used to calculate our non-GAAP measures. We exclude these adjustments because they do not represent what we believe our investors consider to be costs of producing our products, investments in technology and production, and costs to support our internal operating structure. Significant litigation matters and settlements—we incur expenses related to significant litigation matters, including the costs to settle or resolve various claims and legal proceedings. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Significant environmental charges—we incur expenses related to significant environmental charges. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Disposition of businesses and assets, net—we exclude the impact of gains or losses from the disposition of businesses and assets from our adjusted earnings per share. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported. Impact of foreign currency changes on the current period—we exclude the impact of foreign currency associated with acquisitions and divestitures from these measures by using the prior period’s foreign currency exchange rates for the current period because foreign currency exchange rates are subject to volatility and can obscure underlying trends. Impact of significant tax events—we exclude the impact of significant tax events. Management does not believe the impact of significant tax events accurately reflects the performance of our ongoing operations for the periods in which the impact of such events was recorded. Change in fair value of investments—we exclude the impact of changes in the value of investments. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported. The tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board’s Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, debt extinguishment costs, other costs related to business acquisitions and divestitures, transformation costs, loss from probable dispositions, significant litigation matters and settlements, significant environmental charges, changes in the fair value of investments, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, and restructuring and other charges is calculated based on operational results and a blended jurisdictional tax rate, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on a blended jurisdictional tax rate currently in effect to determine our tax provision.

The non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies.

Each of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees.

Original source text

Second quarter GAAP net income of $4.4 million or $0.08 per diluted common share and
Distributable Earnings1 of $6.9 million or $0.12 per diluted common share

- Subsequent to the three months ended June 30, 2026 -

Declared third quarter 2026 dividend of $0.15 per common share

, /PRNewswire/ -- Ares Commercial Real Estate Corporation (the "Company") (NYSE: ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments, reported generally accepted accounting principles ("GAAP") net income of $4.4 million or $0.08 per diluted common share and Distributable Earnings1 of $6.9 million or $0.12 per diluted common share for the second quarter of 2026.

"We continue to make advancements in repositioning our portfolio, addressing risk rated 4 and 5 loans, and reducing office loans and REO properties, while investing in new loans," said Bryan Donohoe, Chief Executive Officer of Ares Commercial Real Estate Corporation. "Supported by the Ares platform, in the second quarter, we closed $130 million of new loan commitments, bringing the total new loan commitments to over $900 million in the last twelve months."

"During the second quarter, we maintained our balance sheet flexibility with moderate leverage and available capital of over $100 million to support our business priorities," said Jeff Gonzales, Chief Financial Officer of Ares Commercial Real Estate Corporation. "We continue to execute the goals we have outlined, which we believe will allow us to rebuild earnings to levels that are expected to meet or exceed the current dividend level."

________________________________________

(1)

Distributable Earnings (Loss) is a non-GAAP financial measure. Refer to Schedule I for the definition and reconciliation of Distributable Earnings (Loss).

COMMON STOCK DIVIDEND

On May 7, 2026, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the second quarter of 2026. The second quarter 2026 dividend was paid on July 15, 2026 to common stockholders of record as of June 30, 2026.

On August 4, 2026, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the third quarter of 2026. The third quarter 2026 dividend will be payable on October 15, 2026 to common stockholders of record as of September 30, 2026.

ADDITIONAL INFORMATION

The Company issued a presentation of its second quarter 2026 results, which can be viewed at www.arescre.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled "Second Quarter 2026 Earnings Presentation." The Company also filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 with the U.S. Securities and Exchange Commission on August 4, 2026.

CONFERENCE CALL AND WEBCAST INFORMATION

On Tuesday, August 4, 2026, the Company invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) to discuss its second quarter 2026 financial results.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of the Company's website at www.arescre.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 343-5172. International callers can access the conference call by dialing +1 (203) 518-9856. Please provide passcode ACREQ226. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through September 4, 2026 at 5:00 p.m. (Eastern Time) to domestic callers by dialing +1 (800) 723-0532 and to international callers by dialing +1 (402) 220-2655. An archived replay will also be available through September 4, 2026 on a webcast link located on the Home page of the Investor Resources section of the Company's website.

ABOUT ARES COMMERCIAL REAL ESTATE CORPORATION

Ares Commercial Real Estate Corporation (the "Company") is a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company invests in whole and co-invested senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast / conference call may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements relate to future events or the Company's future performance or financial condition and include, but are not limited to, statements about potential earnings, the resolution of underperforming loans, increased investment activity, liquidity management, reduction or increase of CECL reserve, reduction or increase of available borrowings, the industry and the loan market. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including global economic trends and economic conditions, including slower growth, changes to fiscal and monetary policy, inflation, labor shortages, changing interest rates, foreign currency exchange volatility and uncertainties caused by tariffs and trade disputes, as well as geopolitical instability, changes in interest rates and credit spreads, management's estimate of current expected credit losses and current expected credit loss reserve, the amount of commercial mortgage loans requiring refinancing, the demand for commercial real estate loans, the Company's expected investment capacity and available capital, rates of default or decreased recovery rates on the Company's target investments, the Company's business and investment strategy, the Company's projected operating results, the ability of Ares Commercial Real Estate Management LLC ("ACREM" or the Company's "Manager") to locate suitable investments for the Company, monitor, service and administer the Company's investments and execute its investment strategy, and the risks described from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risk factors described in Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K, filed with the SEC on February 10, 2026. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Projections and forward-looking statements are based on management's good faith and reasonable assumptions, including the assumptions described herein.

INVESTOR RELATIONS CONTACTS

Ares Commercial Real Estate Corporation
Carl Drake or John Stilmar
(888) 818-5298
[email protected]

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

As of

June 30, 2026

December 31, 2025

(unaudited)

ASSETS

Cash and cash equivalents

$ 17,558

$ 29,289

Restricted cash ($1,108 related to consolidated VIEs as of December 31, 2025)

41,017

37,868

Loans held for investment ($138,950 related to consolidated VIEs as of December
31, 2025)

1,748,835

1,528,806

Current expected credit loss reserve

(137,810)

(125,756)

Loans held for investment, net of current expected credit loss reserve

1,611,025

1,403,050

Real estate owned held for investment, net ($52,634 related to consolidated VIEs
as of December 31, 2025)

76,238

130,165

Real estate owned held for sale

53,934

—

Other assets ($76 of interest receivable related to consolidated VIEs as of
December 31, 2025)

17,503

17,770

Total assets

$        1,817,275

$        1,618,142

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Secured funding agreements

$        1,173,027

$ 858,176

Secured term loan

89,722

89,360

Collateralized loan obligation securitization debt (consolidated VIEs)

—

99,921

Due to affiliate

4,199

4,061

Dividends payable

8,458

8,442

Other liabilities ($257 of interest payable related to consolidated VIEs as of
December 31, 2025)

52,644

48,614

Total liabilities

1,328,050

1,108,574

Commitments and contingencies

STOCKHOLDERS' EQUITY

Common stock, par value $0.01 per share, 450,000,000 shares authorized at June
30, 2026 and December 31, 2025 and 55,481,113 and 55,026,453 shares issued
and outstanding at June 30, 2026 and December 31, 2025, respectively

532

532

Additional paid-in capital

822,606

820,827

Accumulated earnings (deficit)

(333,913)

(311,791)

Total stockholders' equity

489,225

509,568

Total liabilities and stockholders' equity

$        1,817,275

$ 1,618,142

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

For the Three Months Ended
June 30,

For the Six Months Ended
June 30,

2026

2025

2026

2025

Revenue:

Interest income

$    27,754

$    23,117

$    52,660

$    50,597

Interest expense

(19,182)

(16,101)

(36,543)

(34,290)

Net interest margin

8,572

7,016

16,117

16,307

Revenue from real estate owned

5,784

5,549

11,699

11,206

Total revenue

14,356

12,565

27,816

27,513

Expenses:

Management and incentive fees to affiliate

2,394

2,430

4,794

4,997

Professional fees

699

673

1,519

1,550

General and administrative expenses

1,723

1,995

3,140

3,715

General and administrative expenses reimbursed to affiliate

853

1,024

1,639

2,027

Expenses from real estate owned

3,301

4,628

6,435

9,123

Total expenses

8,970

10,750

17,527

21,412

(Provision for) reversal of current expected credit losses, net

(865)

20,150

(12,003)

25,490

Realized losses on loans

—

(33,000)

(3,340)

(33,000)

Income (loss) before income taxes

4,521

(11,035)

(5,054)

(1,409)

Income tax expense (benefit), including excise tax

138

—

169

281

Net income (loss) attributable to common stockholders

$     4,383

$  (11,035)

$    (5,223)

$    (1,690)

Earnings (loss) per common share:

Basic earnings (loss) per common share

$ 0.08

$ (0.20)

$ (0.09)

$ (0.03)

Diluted earnings (loss) per common share

$ 0.08

$ (0.20)

$ (0.09)

$ (0.03)

Weighted average number of common shares outstanding:

Basic weighted average shares of common stock outstanding

55,367,375

54,856,949

55,344,923

54,842,959

Diluted weighted average shares of common stock outstanding

56,354,988

54,856,949

55,344,923

54,842,959

Dividends declared per share of common stock1

$ 0.15

$ 0.15

$ 0.30

$ 0.30

____________________________

(1)

There is no assurance dividends will continue at these levels or at all.

SCHEDULE I
Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss)

Distributable Earnings (Loss) is a non-GAAP financial measure that helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company's REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings (Loss) provides useful information to investors regarding the Company's ability to pay dividends, which is one of the principal reasons the Company believes investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings (Loss) is defined as net income (loss) attributable to common stockholders computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company's target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company's Manager and the Company's independent directors and after approval by a majority of the Company's independent directors. Loan balances that are deemed to be uncollectible are written-off as a realized loss and are included in Distributable Earnings (Loss). Distributable Earnings (Loss) is aligned with the calculation of "Core Earnings," which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager.

Reconciliation of net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure, to Distributable Earnings (Loss) is set forth in the table below for the three and twelve months ended June 30, 2026 ($ in thousands):

For the Three Months Ended

June 30, 2026

For the Twelve Months Ended

June 30, 2026

Net income (loss) attributable to common stockholders

$                    4,383

$                    (4,434)

Stock-based compensation

882

3,696

Incentive fees to affiliate

—

—

Depreciation and amortization of real estate owned

749

5,104

Provision for (reversal of) current expected credit losses, net

865

19,648

Distributable Earnings (Loss)

$                    6,879

$                    24,014

Net income (loss) attributable to common stockholders

$                      0.08

$ (0.08)

Stock-based compensation

0.02

0.07

Incentive fees to affiliate

—

—

Depreciation and amortization of real estate owned

0.01

0.09

Provision for (reversal of) current expected credit losses, net

0.02

0.36

Basic Distributable Earnings (Loss) per common share

$                      0.12

$                       0.44

Net income (loss) attributable to common stockholders

$                      0.08

$                      (0.08)

Stock-based compensation

0.02

0.07

Incentive fees to affiliate

—

—

Depreciation and amortization of real estate owned

0.01

0.09

Provision for (reversal of) current expected credit losses, net

0.02

0.35

Diluted Distributable Earnings (Loss) per common share

$                      0.12

$                       0.43

____________________________

Numbers presented may not foot due to rounding.

SOURCE Ares Commercial Real Estate Corporation

Original source text

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Work will focus on persistent MRAM for metadata management, log data, write buffering and cache functions

CHANDLER, Ariz. & CARLSBAD, Calif.--(BUSINESS WIRE)--Everspin Technologies, Inc. (NASDAQ: MRAM), the world's leading developer and manufacturer of MRAM solutions, and MaxLinear, Inc., a leading provider of high-performance connectivity and storage acceleration solutions, today announced the signing of a memorandum of understanding (MOU) to evaluate next-generation memory architectures designed to improve efficiency and performance in AI servers.

AI models and inference workloads continue to grow while server architectures are under pressure to support larger data sets, expanding key-value (KV) caches and increased data movement across systems. These demands are driving interest in new approaches that combine persistent memory, acceleration and compression to improve performance, power efficiency and infrastructure utilization.

The MOU establishes a framework for the companies to evaluate the use of Everspin's persistent, low-latency MRAM technology with MaxLinear's storage compression, encryption and hardware acceleration platform. The work will focus on metadata management, log data, write buffering and cache functions, as well as other data-intensive workloads, with the goal of improving responsiveness, reliability and data persistence in next-generation server architectures.

"AI is forcing system architects to rethink where persistent memory fits in the server memory hierarchy," said Sanjeev Aggarwal, president and CEO of Everspin Technologies. "At Everspin, we continue to advance MRAM for applications where speed, persistence and endurance need to work together. We look forward to collaborating with MaxLinear to bring that innovation into AI server architectures that need persistent memory closer to critical data, creating a path for next-generation MRAM-based solutions.”

"The rapid growth of AI is driving the need for smarter ways to manage, move and access data across servers," said Vikas Choudhary, senior vice president, connectivity and storage at MaxLinear. "Combining acceleration, compression, and persistent memory creates an opportunity to improve resource utilization, reduce data movement and deliver more predictable performance for demanding AI workloads. Our collaboration with Everspin is focused on evaluating innovative architectures that can help customers scale efficiently as AI deployments continue to expand."

MOU Terms

Under the terms of the MOU, the companies will evaluate:

Technical validation of Everspin MRAM with MaxLinear’s acceleration, compression and encryption platform for AI and data-intensive server workloadsMarket development initiatives targeting hyperscale cloud, AI infrastructure and enterprise server customersLong-term manufacturing, supply and commercialization opportunitiesFor more information on Everspin Technologies, visit https://www.everspin.com

About Everspin Technologies

Everspin Technologies, Inc. (NASDAQ: MRAM) is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest-performance non-volatile memory for industrial, data center, automotive, aerospace and other mission-critical applications where data persistence is essential. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base.

About MaxLinear, Inc.

MaxLinear, Inc. (Nasdaq: MXL) is a leading provider of radio frequency (RF), analog, digital, and mixed-signal integrated circuits for access and connectivity, wired and wireless infrastructure, and industrial and multimarket applications. MaxLinear is headquartered in Carlsbad, California. For more information, please visit https://www.maxlinear.com/.

MaxLinear, the MaxLinear logo, any other MaxLinear trademarks are all property of MaxLinear, Inc. or one of MaxLinear's subsidiaries in the U.S.A. and other countries. All rights reserved.

All third-party marks and logos are trademarks or registered trademarks of their respective holders/owners.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding future events or results. Forward-looking statements are identified by words such as “will,” “expects” or similar expressions and include, but are not limited to, statements regarding Everspin’s anticipated business plans and business strategy. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 5, 2026, as well as in Everspin’s subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made, and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law.

More News From Everspin Technologies, Inc.

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Original source text

Raising 2026 revenue outlook

RPO increased to $894 million, up 12x from a year ago

Q2 2026 Revenue of $281 million grew 29% year-over-year

Million+ Dollar Customer ARR grew 214% year-over-year to $259 million

AI Customer ARR grew 212% year-over-year to $234 million

Record $93 million in incremental ARR

BROOMFIELD, Colo.--(BUSINESS WIRE)--DigitalOcean Holdings, Inc. (NYSE: DOCN), the AI-Native Cloud purpose-built for inference and agentic workloads, today announced results for its second quarter ended June 30, 2026.

"Our growth rate is accelerating, as revenue grew 29% year-over-year, more than double our growth rate a year ago," said Paddy Srinivasan, CEO of DigitalOcean. "The acceleration is coming from our highest spending customers and sophisticated AI Natives, and we are now beginning to land nine-figure annual commitments. Early Inference Engine customers drove their total token consumption up approximately 30x in the last 60-days, and 85% of our AI customer ARR now comes from inference and core cloud rather than bare metal. Just as important is how we are growing: attractive margins, positive free cash flow, capacity delivered on or ahead of schedule, and a stronger balance sheet. Our customer momentum and early product traction give us confidence to raise our 2026 revenue outlook to approximately 30%, reaching 35% or more by Q4 2026, and strengthen our conviction in our ability to exceed 50% growth in 2027."

Second Quarter 2026 Financial Highlights(1):

Revenue was $281 million, an increase of 29%. Annual Run-Rate Revenue (“ARR”) ended the quarter at $1,125 million, an increase of 29%. AI Customer ARR was $234 million, an increase of 212%. Record $93 million of incremental ARR added during the quarter, an increase of 191%. Net income attributable to common stockholders was $35 million, a decrease of 4%, and net income margin was 13%. Operating income was $29 million, a decrease of 18%, and operating income margin was 10%. Adjusted operating income was $67 million, an increase of 9%, and adjusted operating income margin was 24%. Adjusted EBITDA was $114 million, an increase of 27%, and adjusted EBITDA margin was 40%. Diluted net income per share was $0.29 and non-GAAP diluted net income per share was $0.45. Net cash from operating activities increased to $110 million at a 39% margin, from $92 million at a 42% margin in the second quarter of 2025. Adjusted free cash flow increased to $61 million at a 22% margin, from $57 million at a 26% margin in the second quarter of 2025. Cash and cash equivalents was $767 million as of June 30, 2026. Remaining Performance Obligation (“RPO”)(2) was $894 million, of which, $366 million is expected to be recognized over the next 12 months. RPO was $71 million in the second quarter of 2025. Second Quarter 2026 Operational Highlights(1):

Launched Inference Engine as part of AI-Native Cloud. Shipped more than 80 product releases since April. Signed first nine-figure annual customer commitments with leading AI-Natives, extending weighted average contract life from 1.6 years to over 3 years. Secured an incremental 20 MW of committed data center capacity expected to come online in 2027 and 2028, bringing total committed capacity to approximately 155 MW, with additional capacity actively being pursued. Added to the Russell 1000 Index, recognition of a business that has scaled with discipline, pairing durable growth with consistent execution. The number of $100K+ Customers(3) grew 9%, while the revenue from these customers, which now represents 35% of total revenue, grew 98%. The number of $500K+ and $1M+ Customers grew 35% and 73%, respectively. Revenue from these customers, which now represents 26% and 23% of total revenue, grew 160% and 214%, respectively. Recent Developments:

Repurchased approximately $472 million of our 0.00% Convertible Senior Notes due 2030, funded by a concurrent registered direct offering, reducing leverage with minimal cash usage and minimal dilution, with issued shares offset by the retired notes and an intended repurchase of approximately 500,000 shares. Financial Outlook:

DigitalOcean is initiating guidance for the third quarter ending September 30, 2026 as follows:

Total revenue of $304 to $307 million, up 32% to 34% year-over-year. Adjusted EBITDA margin of 38% to 39%. Non-GAAP diluted net income per share of $0.28 to $0.30. Fully diluted weighted average shares outstanding of approximately 126 to 127 million shares. For the full year 2026, we now expect:

Total revenue of $1.170 to $1.180 billion, up 30% to 31% year-over-year. Adjusted EBITDA margin of 38.5% to 39.5%. Adjusted free cash flow margin in the range of 11% to 13% of revenue. Non-GAAP diluted net income per share of $1.35 to $1.40. Fully diluted weighted average shares outstanding of approximately 122 to 123 million shares. A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to assess the probable significance of the unavailable information, although it is important to note that these factors could be material to our results computed in accordance with GAAP.

The financial guidance presented in this release are estimates based on information available to management as of the date of this release. There can be no assurance that our actual results will not differ from the financial guidance presented in this release.

Conference Call Information:

DigitalOcean will host a conference call today, August 4, 2026, at 8:00 a.m. ET to review its results. The conference call and presentation can be accessed by registering for the webcast at https://events.q4inc.com/attendee/684389800. A live webcast and replay of the conference call in addition to the presentation can be accessed from the DigitalOcean investor relations website at investors.digitalocean.com.

About DigitalOcean

DigitalOcean (NYSE: DOCN) is the AI-Native Cloud, purpose-built for inference and agentic workloads. Its five-layer integrated platform, spanning GPU and CPU infrastructure, core cloud, inference, data, and managed agent orchestration, is open throughout with no vendor lock-in, giving builders everything they need to start fast, scale production AI workloads, and improve unit economics. More than 680,000 customers and millions of developers globally trust DigitalOcean to build, ship, and scale their applications. Learn more at digitalocean.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our expected future performance, including but not limited to statements in the section titled “Financial Outlook” and the quotations of our CEO. The forward-looking statements contained in this release and the accompanying earnings call referenced in this release are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: (1) fluctuations in our financial results make it difficult to project future results; (2) our ability to sustain profitability in the future; (3) our ability to expand usage of our platform by existing customers and/or attract new customers and/or retain existing customers; (4) the speed at which the market for our platform and solutions develops; (5) the success of the development and use of our artificial intelligence and machine learning (“AI/ML”) product offerings or use of third-party AI/ML-based tools; (6) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (7) our ability to control costs, including our operating expenses, and the timing of payment for expenses; (8) the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges; (9) breaches in our security measures allowing unauthorized access to our platform, our data, or our customers’ data; (10) the competitive markets in which we participate; (11) our ability to effectively integrate and retain new members of our executive leadership team and senior management; (12) the effects of acquisitions and their integration; (13) general market, political, economic, and business conditions, including changes in trade policies, such as trade wars, tariffs and other restrictions or the threat of such actions; (14) the impact of new accounting pronouncements; (15) our ability to control fraudulent registrations and usage of our platform, reduce bad debt and lessen capacity constraints on our data centers, servers and equipment; (16) our customers’ ability to have continued and unimpeded access to our platform, including as a result of evolving laws and industry standards; and (17) our plans with respect to accelerating investments in data centers and GPU capacity.

Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings and reports we make with the SEC.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with non-GAAP financial measures including: (i) adjusted operating income and adjusted operating income margin, (ii) adjusted EBITDA and adjusted EBITDA margin and (iii) non-GAAP net income and non-GAAP diluted net income per share. These measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

We believe that adjusted operating income margin and adjusted EBITDA, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance (including our long-term performance in the case of adjusted operating income) and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted operating income and adjusted EBITDA is helpful to our investors as they are measures used by management in assessing the health of our business, evaluating our operating performance, and for internal planning and forecasting purposes.

We believe non-GAAP net income and non-GAAP diluted net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of unusual or non-recurring items from period to period for reasons unrelated to overall operating performance.

Our calculations of each of these measures may differ from the calculations of measures with the same or similar titles by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider each of these non-GAAP financial measures alongside other financial performance measures, including the most directly comparable financial measure calculated in accordance with GAAP and our other GAAP results. A reconciliation of each of our non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP is set forth in the tables in the section “Reconciliation of GAAP to Non-GAAP Data.”

Adjusted Operating Income and Adjusted Operating Income Margin

We define adjusted operating income as operating income, adjusted to exclude stock-based compensation, amortization of acquired intangible assets, acquisition related compensation, acquisition and integration related costs, restructuring and other charges, restructuring related charges, impairment of certain long-lived assets and other charges. We define adjusted operating income margin as adjusted operating income as a percentage of revenue.

Adjusted EBITDA and Adjusted EBITDA Margin

We define adjusted EBITDA as net income attributable to common stockholders, adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, acquisition related compensation, acquisition and integration related costs, income tax expense (benefit), restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, interest income and other income, net, (gain) loss on extinguishment of debt, net, and other charges. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue.

Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share

We define non-GAAP net income as net income attributable to common stockholders, excluding stock-based compensation, acquisition related compensation, amortization of acquired intangibles, acquisition and integration related costs, restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, (gain) loss on extinguishment of debt, net, and other charges. In addition to these exclusions, we subtract an assumed non-GAAP provision for income taxes to calculate non-GAAP net income that excludes the current period income tax benefit (expense). We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision in order to provide better consistency across reporting periods. We define non-GAAP diluted net income per share as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of our stock options, RSUs, PRSUs, and Convertible Notes and, beginning in the first quarter of 2026, excludes the in-the-money portion of our 2030 Convertible Notes as they are covered by our capped call transactions, which are expected to mitigate the dilutive effect of our 2030 Convertible Notes.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

Adjusted free cash flow is a non-GAAP financial measure that we define as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, purchase of intangible assets, and excluding cash paid for restructuring and other charges, acquisition related compensation, restructuring related charges, and acquisition and integration related costs. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue.

We believe that adjusted free cash flow and adjusted free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our core operations that can be used for strategic initiatives, including investing in our business and selectively pursuing acquisitions and strategic investments. We further believe that historical and future trends in adjusted free cash flow and adjusted free cash flow margin, even if negative, provide useful information about the amount of net cash provided by operating activities that is available (or not available) to be used for strategic initiatives. Adjusted free cash flow and adjusted free cash flow margin exclude acquisitions of equipment under financing arrangements, finance leases, and our future contractual commitments. Additionally, adjusted free cash flow does not represent the residual cash flow available for discretionary expenses given our debt obligations and the total increase or decrease in our cash balance for a given period.

Unlevered Adjusted Free Cash Flow and Unlevered Adjusted Free Cash Flow Margin

Unlevered adjusted free cash flow is a non-GAAP financial measure that we define as adjusted free cash flow excluding cash paid for interest and interest income. Unlevered adjusted free cash flow margin is calculated as unlevered adjusted free cash flow divided by total revenue.

We believe that unlevered adjusted free cash flow and unlevered adjusted free cash flow margin provide additional information to adjusted free cash flow about our liquidity and, measured over time, enable management and investors to monitor the underlying business’ growth pattern and ability to generate cash. We further believe that unlevered adjusted free cash flow is an important metric, as it provides a clear view of our cash generation before the impact of financing decisions and many investors and analysts use unlevered adjusted free cash flow as the basis of their enterprise value calculations as they assess the value of our business. Unlevered adjusted free cash flow and unlevered adjusted free cash flow margin exclude certain charges that will be settled in cash, such as interest paid to service our debt and equipment financing obligations. Additionally, unlevered adjusted free cash flow does not represent the residual cash flow available for discretionary expenses given our debt obligations and the total increase or decrease in our cash balance for a given period.

Key Business Metrics:

We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions.

Customers

We calculate customer count as the average number of customers as of the last day of the month for each month in the most recent quarter. Customers are classified in the following categories based on the amount of their spend in a given month and individual customers may fall within different categories within a reporting period (customer spend in a month in whole dollars):

Digital Native Enterprise Customers: users that spend more than $500 in a month. $100K+ Customers: users that spend more than $8,333 in a month. $500K+ Customers: users that spend more than $41,667 in a month. $1M+ Customers: users that spend more than $83,333 in a month. ARR

We calculate ARR by multiplying total revenue for the most recent quarter by four.

AI Customer ARR

We calculate AI Customer ARR by multiplying total AI Customer Revenue for the most recent quarter by four. AI Customer Revenue is defined as the total revenue generated from customers who utilize one or more of our AI/ML offerings, inclusive of their revenue from our IaaS and PaaS/SaaS offerings during the period.

Other Metrics:

Remaining Performance Obligation

Remaining performance obligation (“RPO”) represents commitments in customer contracts for future services that have not yet been recognized in the condensed consolidated financial statements. RPO is not necessarily indicative of future revenue growth because it does not account for the timing of customers’ consumption or their usage beyond their contracted capacity. Additionally, RPO may increase when customers transition from usage-based to commitment-based agreements, which does not always reflect incremental revenue growth. RPO is influenced by a number of factors, including the timing and size of renewals, the timing and size of purchases of additional capacity and average contract term. Due to these factors, it is important to review RPO in conjunction with revenue and other financial metrics contained in this release and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings and reports we make with the SEC.

DIGITALOCEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

June 30, 2026

December 31, 2025

Current assets:

Cash and cash equivalents

$

767,026

$

254,475

Accounts receivable, less allowance for credit losses of $6,812 and $6,374, respectively

115,000

90,908

Prepaid expenses and other current assets

135,584

81,598

Total current assets

1,017,610

426,981

Property and equipment, net

1,049,332

589,094

Restricted cash

156

158

Goodwill

350,651

348,674

Intangible assets, net

93,373

99,504

Operating lease right-of-use assets, net

505,697

270,854

Deferred tax assets

93,991

90,310

Other assets

12,243

12,130

Total assets

$

3,123,053

$

1,837,705

Current liabilities:

Accounts payable

$

10,387

$

38,836

Accrued other expenses

70,883

42,679

Deferred revenue

53,039

5,882

Debt, current

311,654

325,109

Operating lease liabilities, current

126,233

108,037

Finance lease liabilities and equipment financing obligations, current

129,777

31,411

Other current liabilities

74,139

67,510

Total current liabilities

776,112

619,464

Deferred tax liabilities

3,952

4,092

Debt, long-term

609,399

970,653

Operating lease liabilities, long-term

352,854

166,895

Finance lease liabilities and equipment financing obligations, long-term

447,943

99,103

Other non-current liabilities

2,062

6,188

Total liabilities

2,192,322

1,866,395

Commitments and contingencies (Note 9)

Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025)

—

—

Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 105,002,427 and 91,947,614 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)

2

2

Additional paid-in capital

925,014

16,005

Accumulated other comprehensive loss

(1,756

)

(960

)

Retained earnings (Accumulated deficit)

7,471

(43,737

)

Total stockholders’ equity (deficit)

930,731

(28,690

)

Total liabilities and stockholders’ equity

$

3,123,053

$

1,837,705

DIGITALOCEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Revenue

$

281,184

$

218,700

$

539,089

$

429,403

Cost of revenue

126,522

87,755

239,717

169,014

Gross profit

154,662

130,945

299,372

260,389

Operating expenses:

Research and development

57,515

39,644

106,345

79,238

Sales and marketing

22,568

19,288

44,237

38,689

General and administrative

45,208

36,394

82,848

69,201

Total operating expenses

125,291

95,326

233,430

187,128

Operating income

29,371

35,619

65,942

73,261

Other (expense) income:

Interest expense

(7,463

)

(2,239

)

(18,016

)

(4,447

)

Loss on extinguishment of debt, net

—

(269

)

(2,700

)

(269

)

Interest income and other income, net

5,234

9,337

6,412

15,283

Other (expense) income, net

(2,229

)

6,829

(14,304

)

10,567

Income before income taxes

27,142

42,448

51,638

83,828

Income tax benefit (expense)

8,295

(5,421

)

(430

)

(8,597

)

Net income attributable to common stockholders

$

35,437

$

37,027

$

51,208

$

75,231

Net income per share attributable to common stockholders

Basic

$

0.34

$

0.41

$

0.52

$

0.82

Diluted

$

0.29

$

0.39

$

0.45

$

0.77

Weighted-average shares used to compute net income per share attributable to common stockholders

Basic

104,611

91,097

98,856

91,538

Diluted

126,548

100,617

118,708

101,521

DIGITALOCEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Six Months Ended June 30,

2026

2025

Operating activities

Net income attributable to common stockholders

$

51,208

$

75,231

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

Depreciation and amortization

96,629

61,975

Stock-based compensation

55,231

40,513

Provision for expected credit losses

8,078

8,607

Loss on extinguishment of debt

2,700

269

Operating lease right-of-use assets and liabilities, net

(30,810

)

(13,816

)

Non-cash interest expense

2,960

4,005

Other

3,476

(7,853

)

Changes in operating assets and liabilities:

Accounts receivable

(32,230

)

(17,064

)

Prepaid expenses and other current assets

(53,906

)

1,201

Accounts payable and accrued expenses

6,536

(3,029

)

Deferred revenue

47,157

5,867

Other assets and liabilities

(140

)

631

Net cash provided by operating activities

156,889

156,537

Investing activities

Capital expenditures - property and equipment

(81,576

)

(95,160

)

Capital expenditures - internal-use software

(11,785

)

(3,412

)

Acquisition of equipment under financing arrangements

(51,544

)

—

Purchase of intangible assets

(754

)

(1,835

)

Cash paid for acquisition of businesses, net of cash acquired

(4,042

)

—

Net cash used in investing activities

(149,701

)

(100,407

)

Financing activities

Proceeds from follow-on public offering, net of underwriting discounts and issuance costs

887,888

—

Principal repayment of Term Loan Facility

(500,000

)

—

Proceeds from drawdown of Term Loan Facility

120,000

—

Payment of debt issuance costs

—

(4,081

)

Proceeds related to issuance of common stock under equity incentive plan

3,558

2,771

Proceeds from issuance of common stock under employee stock purchase plan

2,494

2,660

Employee payroll taxes paid related to net settlement of equity awards

(38,406

)

(16,294

)

Proceeds from financing arrangements

51,544

—

Principal repayments of finance leases and financing arrangements

(21,651

)

(2,733

)

Repurchase and retirement of common stock including related costs

—

(79,199

)

Net cash provided by (used in) financing activities

505,427

(96,876

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(66

)

45

Increase (decrease) in cash, cash equivalents and restricted cash

512,549

(40,701

)

Cash, cash equivalents and restricted cash - beginning of period

254,633

430,193

Cash, cash equivalents and restricted cash - end of period

$

767,182

$

389,492

DIGITALOCEAN HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(unaudited)

Adjusted Operating Income and Operating Income Margin

Three Months Ended

Six Months Ended

June 30,

June 30,

(In thousands)

2026

2025

2026

2025

Operating income

$

29,371

$

35,619

$

65,942

$

73,261

Adjustments:

Stock-based compensation

32,724

21,081

55,231

40,513

Amortization of acquired intangible assets

5,070

5,031

10,008

10,228

Impairment of certain long-lived assets

311

—

311

—

Adjusted operating income

$

67,476

$

61,731

$

131,492

$

124,002

As a percentage of revenue:

Operating income margin

10

%

16

%

12

%

17

%

Adjusted operating income margin

24

%

28

%

24

%

29

%

Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended

Six Months Ended

June 30,

June 30,

(In thousands)

2026

2025

2026

2025

GAAP Net income attributable to common stockholders

$

35,437

$

37,027

$

51,208

$

75,231

Adjustments:

Depreciation and amortization

51,154

32,765

96,629

61,975

Stock-based compensation

32,724

21,081

55,231

40,513

Interest expense

7,463

2,239

18,016

4,447

Income tax (benefit) expense

(8,295

)

5,421

430

8,597

Loss on extinguishment of debt

—

269

2,700

269

Impairment of certain long-lived assets

311

—

311

—

Interest income and other income, net(1)

(5,234

)

(9,337

)

(6,412

)

(15,283

)

Adjusted EBITDA

$

113,560

$

89,465

$

218,113

$

175,749

As a percentage of revenue:

Net income margin

13

%

17

%

9

%

18

%

Adjusted EBITDA margin

40

%

41

%

40

%

41

%

Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share

Three Months Ended

Six Months Ended

June 30,

June 30,

(In thousands, except per share amounts)

2026

2025

2026

2025

GAAP Net income attributable to common stockholders

$

35,437

$

37,027

$

51,208

$

75,231

Stock-based compensation

32,724

21,081

55,231

40,513

Amortization of acquired intangible assets

5,070

5,031

10,008

10,228

Loss on extinguishment of debt(1)

—

269

2,700

269

Impairment of certain long-lived assets

311

—

311

—

Non-GAAP income tax adjustment(2)

(18,735

)

(5,593

)

(18,752

)

(12,977

)

Non-GAAP Net income

$

54,807

$

57,815

$

100,706

$

113,264

Non-cash charges related to convertible notes(3)

$

1,118

$

1,596

$

2,190

$

3,191

Non-GAAP Net income used to compute net income per share, diluted

$

55,925

$

59,411

$

102,896

$

116,455

GAAP Net income per share attributable to common stockholders, diluted(6)

$

0.29

$

0.39

$

0.45

$

0.77

Stock-based compensation

0.27

0.21

0.48

0.40

Amortization of acquired intangible assets

0.04

0.05

0.09

0.10

Loss on extinguishment of debt(1)

—

—

0.02

—

Impairment of certain long-lived assets

—

—

—

—

Non-cash charges related to convertible notes(3)

0.01

0.02

0.02

0.03

Non-GAAP income tax adjustment(2)

(0.16

)

(0.08

)

(0.17

)

(0.15

)

Non-GAAP Net income per share, diluted(4)

$

0.45

$

0.59

$

0.89

$

1.15

GAAP Weighted-average shares used to compute net income per share, diluted

126,548

100,617

118,708

101,521

Add: Weighted-average dilutive effect of potentially dilutive securities

—

—

1,750

—

Less: Anti-dilutive impact of capped call transaction(5)

(3,227

)

—

(4,388

)

—

Non-GAAP Weighted-average shares used to compute net income per share, diluted(6)

123,321

100,617

116,070

101,521

____________________ (1)

For the three and six months ended June 30, 2026, excludes tax impact which is presented in Non-GAAP income tax adjustment.

(2)

For the periods in fiscal year 2026 and 2025, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year.

(3)

Consists of non-cash interest expense for amortization of debt issuance costs related to our Convertible Notes.

(4)

May not foot due to rounding.

(5)

Excludes the in-the-money portion of our 2030 Convertible Notes for non-GAAP weighted-average diluted shares as they are covered by our capped call transactions. Our outstanding capped call transactions are antidilutive under GAAP, but are expected to mitigate the dilutive effect of our 2030 Convertible Notes, and therefore are included in the calculation of non-GAAP diluted shares outstanding. The capped calls have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price.

(6)

Includes 1,750 and 15,957 of potentially dilutive securities related to our 2026 and 2030 Convertible Notes, respectively, as if the entire principal amount outstanding were converted into shares for the three and six months ended June 30, 2026. Includes 8,403 of potentially dilutive securities related to our 2026 Convertible Notes as if the entire principal amount outstanding were converted into shares for the three and six months ended June 30, 2025. The Company has the election of settling any conversion in cash, shares of our common stock, or a combination of both. Refer to our Quarterly Report on Form 10-Q for the three months ended June 30, 2026 for further details.

Adjusted Free Cash Flow, Unlevered Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin and Unlevered Adjusted Free Cash Flow Margin

Three Months Ended

Six Months Ended

June 30,

June 30,

(In thousands)

2026

2025

2026

2025

GAAP Net cash provided by operating activities

$

109,968

$

92,447

$

156,889

$

156,537

Adjustments:

Capital expenditures - property and equipment

(41,584

)

(33,197

)

(81,576

)

(95,160

)

Capital expenditures - internal-use software development

(7,045

)

(1,383

)

(11,785

)

(3,412

)

Purchase of intangible assets

(754

)

(852

)

(754

)

(1,835

)

Restructuring and other charges

—

—

—

64

Adjusted free cash flow

$

60,585

$

57,015

$

62,774

$

56,194

Plus: Cash paid for interest

4,820

54

14,349

249

Less: Interest income

(6,390

)

(3,202

)

(9,267

)

(6,859

)

Unlevered adjusted free cash flow

$

59,015

$

53,867

$

67,856

$

49,584

As a percentage of revenue:

GAAP Net cash provided by operating activities

39

%

42

%

29

%

36

%

Adjusted free cash flow margin

22

%

26

%

12

%

13

%

Unlevered adjusted free cash flow margin

21

%

25

%

13

%

12

%

More News From DigitalOcean Holdings, Inc.

Original source text

All of the amounts disclosed in this press release are in U.S. dollars unless otherwise noted

TEL AVIV, Israel, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Enlight Renewable Energy (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the quarter ended June 30, 2026. Registration links for the Company’s earnings English and Hebrew conference call and webcasts can be found at the end of this earnings release.

Financial Highlights

3 months ending June 30, 2026

Total revenues and income1 of $210 million, an increase of 55% compared to the same period last year.Net income of $31 million, compared to $6 million in the same period last year.Adjusted EBITDA2 of $160 million, compared to $96 million in the same period last year. Excluding a gain of approximately $17 million from the follow-on sale of a 15% stake from the Sunlight cluster in the second quarter of 2026, Adjusted EBITDA totaled $142 million, an increase of 50% from the second quarter of 2025.Cash flow from operating activities3 of about $84 million, an increase of 37% compared to the same period last year. 6 months ending June 30, 2026

Total revenues and income of $409 million, an increase of 55% compared to the same period last year.Net income of $69 million, compared to $107 million in the same period last year. Excluding a gain of approximately $81 million from the sale of 44% stake from the Sunlight cluster in and deconsolidation in the first quarter of 2025, net income increased by 160%, compared to $26 million in the comparable period.Adjusted EBITDA of $314 million, compared to $227 million in the first half of 2025. Excluding a gain of $42 million from the sale of 44% from the Sunlight cluster in the first half of 2025, and a gain of $30 million from follow-on sales of 26% from the Sunlight cluster during the first half of 2026, Adjusted EBITDA amounted to $284 million in the first half of 2026, an increase of 54% from the first half of 2025.Operating cash flow of $185 million, an increase of 48% from the first half of 2025. 1Total revenues and income include revenues from the sale of electricity, as well as income from tax benefits from U.S. projects
2Adjusted EBITDA is a non-IFRS measure. Please refer to the appendices for the reconciliation to net income. The Company is unable to provide a reconciliation of “Adjusted EBITDA” to net income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted
3Interest payments and receipts are classified as cash flows from financing and investing activities, respectively, instead of cash flows from operating activities. Adjustments were made to comparative figures due to a change in accounting policy; for further details, see Appendix No. 4

Raising full-year guidance ranges

Revenues & income4 guidance increased to $790 to $820 million, up from $755 to $785 million previously.Adjusted EBITDA guidance increased to $565 to $585 million, up from $545 to $565 million previously.The increase in guidance is primarily driven by strong first-half results, attributed to strong project operational performance, higher electricity prices in Europe and the depreciation of the USD. The increase in revenue guidance exceeded the increase in Adjusted EBITDA guidance, reflecting the growing contribution of our electricity trading operations in Israel, which are characterized by low margins.
4Total revenues and income include revenues from the sale of electricity along with income from tax benefits from US projects amounting to $160-180m.

Summary of key financial results:

For the three months endedFor the six months ended($ millions)June 30,
2026June 30,
2025% changeJune 30,
2026June 30,
2025% changeRevenues and Income21013555%40926555%Net Income316460%69107(36%)Net income excluding the Sunlight transactions316460%6926160%Adjusted EBITDA1609667%31422738%Adjusted EBITDA excluding the Sunlight transactions1429650%28418554%Cash Flow from Operating Activities846237%18512548%        Adi Leviatan, CEO of Enlight Renewable Energy: “We are concluding another quarter of strong growth and consistent execution, with revenue increasing by 55%, significant improvements in profitability and cash flow generation, and robust performance across all of our operating regions. Our first-half results, together with the continued advancement of projects under construction and the expansion of our energy storage business, enable us to raise our 2026 revenue and Adjusted EBITDA guidance, as well as the run-rate revenues reflected in our mature projects and our year-end 2028 target.

At the same time, the successful completion of $2.6 billion financing for the CO Bar complex, the largest in our history, along with additional milestones achieved during the quarter, highlights Enlight’s execution and financing capabilities and reflects the confidence of our financial partners.

We remain focused and disciplined in expanding our global portfolio and converting it into sustained high-growth performance while preserving long-term profitability. At the same time, we continue to strengthen our position as a leading energy platform across the markets in which we operate.”

Portfolio Review

During the second quarter and through the date of this release, Enlight continued to expand its portfolio and advance projects through the various phases of development. As of the earning release date, Enlight’s total portfolio is comprised of 21.8 GW of generation capacity and 74.6 GWh energy storage (totaling 43.1 FGW5), representing an increase of 4.6% compared to the total portfolio at the release date of the first quarter of 2026 (41.2 FGW). The generation component increased by approximately 1.5% and the storage component increased by approximately 8% compared to the previous quarter, reflecting Enlight’s strategy to lead in energy storage as a response to the market’s increasing demand.

The mature component of the portfolio (operating projects, projects under construction, and projects in pre-construction) comprises of 6.4 GW of generation capacity and 20.5 GWh of storage capacity, totaling 12.3 FGW, compared to 11.6 FGW at the end of the previous quarter, an increase of 6%. Approximately 53% of the capacity is located in the U.S., 32% in Europe, and approximately 15% in MENA.

The advanced development and development components comprise of 15.4 GW of generation capacity and 54.1 GWh of storage capacity, totaling 30.8 FGW, an increase of 4% sequentially. Approximately 72% of the capacity is located in the U.S., 15% in MENA, and 13% in Europe.

5FGW (Factored GW) is the company’s consolidated metric combining generation and storage capacity into a uniform figure based on the ratio of construction costs. Current weighted average construction cost ratio is 3.5 GWh of storage per 1 GW of generation: FGW = GW + GWh / 3.5.

The composition of Enlight’s portfolio appears in the following table:

ComponentStatusFGWAnnual revenues &
income run rate ($m)OperatingCommercial operation3.9~780-810Under constructionUnder construction4.5~840Pre-construction0-12 months to start of construction3.9~660Total Mature Portfolio 12.3~$2,300mAdvanced development13-24 months to start of construction7.8-Development24+ months to start of construction23.0-Total Portfolio 43.1-     Operating component of the portfolio: 3.9 FGW Approximately 41% of the operating component is in the U.S., 34% in Europe, and 25% in Israel. 90% of operating capacity is contracted under PPAs, of which approximately 24% is under index-linked PPAs.The operating portfolio generates annualized revenues and income run rate of approximately $780 to $810 million. The increase in run-rate revenues from operating assets is driven mainly by higher revenues from electricity trade in Israel, good operational performance in the Company’s projects, higher electricity prices and exchange rates fluctuations. Under construction component of the portfolio: 4.5 FGW This component increased quarter-over-quarter by approximately 500 FMW (approximately 12%),The Bertikow project in Germany (storage capacity of 881 MWh) started construction during the quarter.As part of its strategy to expand energy storage capacity in Europe, the Company acquired and commenced construction of two energy storage projects in Finland, a key hub for data center development. The projects have a combined storage capacity of 902 MWh, are expected to achieve commercial operation during the first half of 2028 and are projected to generate an unlevered return6 of 19% to 20%.The under-construction component includes six projects in the U.S. (CO Bar Phases I-III, Country Acres, Crimson Orchard, and Snowflake A) with a total capacity of 3.4 GW, seven projects in Europe with an aggregate capacity of approximately 912 MW, and projects in Israel with a total capacity of approximately 142 MW.Energy storage projects (either standalone or paired with generation assets) account for approximately 42% of the under-construction component.During the second quarter, financing for the CO Bar complex in Arizona was successfully completed, totaling $2.6 billion. The financing was provided by a consortium of seven leading global financial institutions. The complex comprises five phases and includes 1.2 GW of solar generation capacity and 4 GWh of energy storage capacity. Total investment in the CO Bar complex is expected to range between $2.9 billion and $3.0 billion, including a term loan of approximately $1.7 billion. Tax equity proceeds are estimated at about $1.5 billion. The Company estimates that during the remainder of 2026 it will begin construction of projects totaling approximately 2.7 FGW, such that 87% of the mature component is expected to be either operating or under construction by the end of 2026.The under-construction component is expected to contribute approximately $840 million to the annual revenues and income in their first full year of operation, compared to $770 million in the previous quarter. The increase is mainly attributable to the inclusion of the projects mentioned above. 6 Calculated by dividing the projected EBITDA for the first full year of operations by the estimated net construction cost.

Pre-construction component of the portfolio: 3.9 FGW This component increased by approximately 220 FMW.During the quarter, the Karpen Cluster in Romania was acquired, with an aggregate storage capacity of 848 MWh. Commercial operation is expected to commence in several phases during the second half of 2028 and the first half of 2029. The portfolio is expected to generate an unlevered return of 16.8% to 17.2%.During the quarter, an additional energy storage project in Finland, Kajo, was acquired, with a storage capacity of 542 MWh. Commercial operation is expected during the first half of 2028, and the project is expected to generate an unlevered return of 16.9%–17.3%.In addition, projects in Israel and Hungary with an aggregate capacity of approximately 56 FMW advanced to pre-construction.The pre-construction component includes six projects in the U.S. totaling 1.5 FGW, eleven projects in Europe totaling approximately 1.7 FGW, and projects in Israel totaling 0.7 FGW.Storage projects account for 77% of total capacity. Pre-construction projects are expected to contribute approximately $660 million to the annual recurring revenues and income in their first full year of operation, an increase from $540 million in the previous quarter. The increase is mainly attributable to the inclusion of the projects mentioned above. Advanced development component of the portfolio: 7.8 FGW This component increased by 500 FMW sequentially.During the quarter projects with an aggregate capacity of 324 FMW in the U.S. (in SPP), 286 FMW in Poland and 245 FMW in Israel transitioned from development to advanced development.This component includes 5.5 FGW in the U.S., 1.2 FGW in Europe, and 1.1 FGW in MENA.Storage projects account for 48% of total capacity.As of the date of this report, the entire advanced development portfolio in the U.S. has successfully completed System Impact Study process and has a high likelihood of securing grid interconnection.Approximately 5 FGW of U.S. capacity met Safe Harbor7 requirements (approximately 91% of this component’s capacity in the U.S.), securing eligibility for tax benefits. 7Securing Safe Harbor status and grid interconnection agreement do not guarantee the project's completion. Actual project completion is subject to meeting development milestones and market conditions

Development component of the portfolio: 23 FGW This component includes 16.9 FGW in the U.S., 3.4 FGW in MENA, and 2.7 FGW in Europe.The main additions over the past three months include projects totaling planned capacity of approximately 2 FGW in the U.S., of which energy storage projects with aggregated capacity of 2.4 GWh in PJM and projects with aggregated electricity generation capacity of 478 MW and storage capacity of 1.4 GWh in CAISO. 240 MW planned electricity generation and 800 MWh of planned energy storage capacity were added in WECC.Storage projects account for approximately 51% of total capacity.As of the earnings release date, 8.1 FGW (approximately 48% of this component’s capacity in the U.S.) successfully completed System Impact Study and have a high likelihood of achieving grid interconnection.Approximately 6.4 FGW of U.S. capacity met Safe Harbor requirements (approximately 38% of this component’s capacity in the U.S.), securing eligibility for tax benefits.Under current U.S. legislation, energy storage projects that commence construction by the end of 2033 are eligible for the full value of available tax credits, with a gradual phase-down for projects beginning construction during the following three years. The Company currently has approximately 4.7 GW of energy storage capacity in its portfolio that is expected to begin construction over the coming years.The Company expects to pursue similar tax credit eligibility for future energy storage projects added to its portfolio, subject to their commencement of construction within the applicable qualification period.
With completion of the current mature portfolio by year-end 2028, Enlight’s operating capacity is expected to reach approximately 12 FGW, and total annual revenues and income8 run rate is expected to reach $2.2 to $2.3 billion by the end of 2028, reflecting a 41% compound annual growth rate between 2024 and 2028.

Project and Corporate Finance

During the first half of the year, the Company secured approximately $3.7 billion of financing sources (including project financing):

$2.6 billion financing for the CO-Bar complex, representing the largest financing transaction in the Company's history.Approximately $350 million raised through an expansion of Series G bonds on the Tel Aviv Stock Exchange, at an interest rate of approximately 4.4%, reflecting a spread of approximately 0.75% above comparable Israeli government bonds.Issuance of approximately 6 million shares, generating gross proceeds of approximately $420 million.$304 million financing secured for the Crimson Orchard project in Idaho, U.S.Follow-on transactions for the sale of additional stakes in the Sunlight portfolio, generating proceeds of $38 million.As of the balance sheet date, cash and cash equivalents at the “topco”8 level9 totaled $877 million. In addition, cash and cash equivalents held by subsidiaries amounted to approximately $287 million.As of the balance sheet date, the Company had available credit facilities of $550 million, of which $132 million had been utilized.As of the balance sheet date, the Company had approximately $1.7 billion of Letter of Credit and Surety Bond facilities, of which $674 million had been utilized. 8The expected growth in 2028 encompasses the Company’s operations in all geographies. Expected growth relies on business plans which rely on development conditions and assumptions regarding electricity prices and are contingent on current trends known to the Company at this time; Expected Adjusted EBITDA margin of approximately 70%-80% (including tax benefits) for the years shown. The company's revenues from tax benefits are estimated at approximately 22-24% of the total revenues & income run rate for December 2026 and approximately 28-30% of the total revenues & income run rate for December 2027 and December 2028.
9 Including Enlight Renewable Energy, headquarter companies in Europe and the U.S. and Clenera, and excluding other subsidiaries and project-linked entities.

Financial Results Analysis

Revenues & Income by Segment
($ millions)For the three months endedFor the six months endedSegment
June 30,
2026
June 30,
2025
% change
June 30,
2026
June 30,
2025
% change
MENA
77
53
46%
141
96
48%
Europe
52
48
9%
113
99
14%
U.S.
80
34
133%
154
69
122%
Other
1
0
-
1
1
-
Total Revenues & Income
210
135
55%
409
265
55%
        Revenues & Income

In the second quarter of 2026, the Company's total revenues increased by 55% to approximately $210 million, compared to approximately $135 million in the corresponding quarter last year. Revenues from electricity sales grew by 43% to approximately $166 million.

The increase in revenues was primarily driven by new U.S. projects that commenced operations at the end of 2025, contributing approximately $20 million to the growth in electricity sales revenues. Foreign exchange fluctuations contributed an additional $13 million, electricity trading activities in Israel contributed $9 million, and higher power prices together with improved generation output contributed approximately $6 million to the increase in electricity sales revenues.

Tax credit income amounted to approximately $44 million, compared to approximately $19 million in the corresponding quarter last year. The increase was primarily attributable to new U.S. projects that commenced operations at the end of 2025, as well as additional tax credits recognized at the Atrisco project related to the use of domestic content, which became effective in the third quarter of 2025.

Net Income

The Company's net income for the second quarter of 2026 totaled $31 million, compared to $6 million in the corresponding quarter last year.

The $25 million increase was primarily driven by a $75 million increase in total revenues. This was partially offset by a $19 million increase in cost of revenues, mainly due to the expansion of electricity trading activities in Israel and the commencement of operations at new projects, a $10 million increase in depreciation and amortization expenses, an $8 million increase in general and administrative and development expenses, a $4 million increase in other expenses, primarily due to compensation for lost revenues received in the second quarter of 2025, and a $9 million increase in tax expenses.

Gross financing expenses increased by $18 million, primarily as a result of the commencement of operations at new projects. This was partially offset by a $7 million increase in financing income. In addition, during the corresponding period last year, the Company recorded $12 million of financing expenses related to foreign exchange adjustments.

Adjusted EBITDA

The Company's Adjusted EBITDA for the second quarter of 2026 amounted to approximately $160 million, compared to approximately $96 million in the corresponding quarter last year, representing an increase of 67%.

The increase compared to the second quarter of 2025 was primarily driven by a $75 million increase in revenues, partially offset by a $17 million increase in cost of revenues resulting from the commencement of operations of new projects and the expansion of electricity trading activities in Israel, a $6 million increase in general, administrative and development expenses (excluding share-based compensation expenses), and a $4 million decrease in other income.

Partially offsetting these factors, the follow-on sale of an additional 15% interest in the Sunlight portfolio contributed approximately $17 million to Adjusted EBITDA.

Conference Call Information

English Conference Call & Webcast at 8:00am ET / 3:00pm Israel:

Please pre-register to join the live conference call:

https://register-conf.media-server.com/register/BIa44c30056e064c77bfb6d11ba810306b

Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN.
To join by webcast, which will feature a presentation, please use the following link:

https://edge.media-server.com/mmc/p/sk3hcqbs

Hebrew Webcast at 6:00am ET / 1:00pm Israel:

Please pre-register to join the live webcast:

https://enlightenergy-com.zoom.us/webinar/register/WN_Is-DMN7ETJ2-RR28wRf59A

The press release with the financial results as well as the investor presentation materials will be accessible from the Company’s website prior to the conference call. An archived version of the webcast will be available on the Company’s investor relations website at https://enlightenergy.com/info/investors/

Supplemental Financial and Other Information

We intend to announce material information to the public through the Enlight investor relations website at https://enlightenergy.com/info/investors, SEC filings, press releases, public conference calls, and public webcasts. We use these channels to communicate with our investors, customers, and the public about our company, our offerings, and other issues. As such, we encourage investors, the media, and others to follow the channels listed above, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page of our website.

Non-IFRS Financial Measures

This release presents Adjusted EBITDA, a non-IFRS financial metric, which is provided as a complement to the results provided in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). A reconciliation of the non-IFRS financial information to the most directly comparable IFRS financial measure is provided in the accompanying tables found at the end of this release.

We define Adjusted EBITDA as net income (loss) plus depreciation and amortization, share based compensation, finance expenses, taxes on income and share in losses of equity accounted investees, minus finance income and adjusted to eliminate any non-recurring portions of other income (expenses), net. compensation received in respect of contractual performance shortfalls and recorded in other income (expenses), net, is included in adjusted EBITDA. Such compensation represents income the company would have generated had the contractual performance levels been achieved. With respect to gains (losses) from asset disposals, as part of Enlight’s strategy to accelerate growth and reduce the need for equity financing, the Company sells parts of or the entirety of selected renewable project assets from time to time, and therefore includes realized gains or losses from these asset disposals in Adjusted EBITDA. In the case of partial assets disposals, Adjusted EBITDA includes only the economic gain or loss attributable to the interest sold, calculated as the consideration received less the proportional book value attributable to such interest. Our management believes Adjusted EBITDA is indicative of operational performance and ongoing profitability and uses Adjusted EBITDA to evaluate the operating performance and for planning and forecasting purposes.

Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under IFRS. There are a number of limitations related to the use of non-IFRS financial measures versus comparable financial measures determined under IFRS. For example, other companies in our industry may calculate the non-IFRS financial measures that we use differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of our non-IFRS financial measures as analytical tools. Investors are encouraged to review the related IFRS financial measure, Net Income, and the reconciliations of Adjusted EBITDA provided below to Net Income and to not rely on any single financial measure to evaluate our business.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s business strategy and plans, capabilities of the Company’s project portfolio and the Company’s expectation relating to projects, including their timeline, financing and the achievement of operational and financial objectives, market opportunity, utility demand and potential growth, discussions with commercial counterparties and financing sources, pricing trends for materials, progress of Company projects, including anticipated timing of related approvals and project completion and anticipated production delays, the Company’s future financial results, expected impact from various regulatory developments and anticipated trade sanctions, expectations regarding wind production, electricity prices and windfall taxes, and expected Revenues, Income and Adjusted EBITDA guidance, the expected timing of completion of our ongoing projects, and the Company’s anticipated cash requirements and financing plans , are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects, as well as timing of construction of any project; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; disruptions in trade caused by political, social or economic instability in regions where our components and materials are made; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; exposure to market prices in some of our offtake contracts; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy; our ability to effectively manage the global expansion of the scale of our business operations; our ability to perform to expectations in our new line of business involving the construction of PV systems for municipalities in Israel; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, the impact of tariffs on the cost of construction and our ability to mitigate such impact, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with increasingly complex tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; our ability to obtain tax benefits and credits in the U.S. or other jurisdictions; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel, including the ongoing war in Israel, where our headquarters and some of our wind energy and solar energy projects are located; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”), as may be updated in our other documents filed with or furnished to the SEC.

These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

About Enlight

Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 12 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its U.S. IPO (Nasdaq: ENLT) in 2023.

Investor Contacts

Limor Zohar Megen
Director IR
[email protected]

Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
+1 617 542 6180
[email protected]

Appendix 1 – Financial information

Consolidated Statements of Income

  For the six months ended
June 30
For the three months ended
June 30
   2026
2025 2026
2025   USD in
USD in USD in
USD in   thousands
thousands thousands
thousands           Revenues 322,477 225,875 165,990 116,117 Tax benefits 86,807 38,972 43,701 18,861 Total revenues and income 409,284 264,847 209,691 134,978       Cost of sales (*) (92,780) (56,484) (48,501) (29,846) Depreciation and amortization (98,106) (71,017) (47,384) (37,228) General and administrative expenses (37,081) (23,336) (18,118) (11,490) Development expenses (8,689) (5,469) (4,690) (2,905) Total operating expenses (236,656) (156,306) (118,693) (81,469) Gains from projects disposals 889 97,828 453 566 Other income (expenses), net 3,681 2,374 (519) 3,479 Operating profit 177,198 208,743 90,932 57,554       Finance income 20,260 8,166 11,264 1,471 Finance expenses (104,554) (82,286) (60,371) (52,083) Total finance expenses, net (84,294) (74,120) (49,107) (50,612)       Profit before tax and equity loss 92,904 134,623 41,825 6,942 Share of losses of equity accounted investees (1,421) (1,645) (428) (418) Profit before income taxes 91,483 132,978 41,397 6,524 Taxes on income (22,498) (25,606) (10,220) (955) Profit for the period 68,985 107,372 31,177 5,569       Profit for the period attributed to:     Owners of the Company 53,442 95,815 29,369 1,357 Non-controlling interests 15,543 11,557 1,808 4,212   68,985 107,372 31,177 5,569 Earnings per ordinary share (in USD) with a par     value of NIS 0.1, attributable to owners of the     parent Company:     Basic earnings per share 0.39 0.80 0.21 0.01 Diluted earnings per share 0.36 0.75 0.20 0.01 Weighted average of share capital used in the     calculation of earnings:     Basic per share 137,294,117 119,107,985 139,430,537 119,421,246 Diluted per share 148,712,951 127,192,179 150,455,906 129,204,402 .
(*) Excluding depreciation and amortization.

Consolidated Statements of Financial Position as of           June 30 December 31   2026 2025   USD in USD in   Thousands Thousands Assets           Current assets     Cash and cash equivalents 1,163,734 528,497 Bank deposits 2,280 - Restricted cash 122,735 409,424 Trade receivables 111,799 95,118 Other receivables 149,939 62,286 Other financial assets 1,223 524 Total current assets 1,551,710 1,095,849       Non-current assets     Restricted cash 133,009 130,358 Other long-term receivables 33,917 64,349 Deferred costs in respect of projects 378,466 235,615 Deferred borrowing costs 2,141 1,749 Loans to investee entities 91,852 85,131 Investments in equity accounted investees 36,027 59,310 Fixed assets, net 7,486,761 6,281,418 Intangible assets, net 318,289 303,971 Deferred taxes assets 4,223 4,692 Right-of-use asset, net 258,464 225,495 Financial assets at fair value through profit or loss 109,061 83,582 Other financial assets 58,137 58,383 Total non-current assets 8,910,347 7,534,053       Total assets 10,462,057 8,629,902        Consolidated Statements of Financial Position as of (Cont.)
        June 30 December 31   2026 2025   USD in USD in   Thousands Thousands Liabilities and equity           Current liabilities     Credit and current maturities of loans from 566,257 884,120 banks and other financial institutions   Trade payables 78,457 137,230 Other payables 528,706 405,741 Current maturities of debentures 186,745 173,571 Current maturities of lease liability 13,142 12,396 Other financial liabilities 9,445 16,147 Total current liabilities 1,382,752 1,629,205       Non-current liabilities     Debentures 854,480 477,315 Other financial liabilities 172,810 378,303 Convertible debentures 287,992 273,801 Loans from banks and other financial institutions 4,158,696 2,981,786 Loans from non-controlling interests 82,449 86,946 Financial liabilities through profit or loss 27,511 26,946 Deferred taxes liabilities 85,751 77,688 Employee benefits 2,096 1,645 Lease liability 265,505 231,135 Deferred income related to tax equity 596,401 370,734 Asset retirement obligation 100,623 99,460 Total non-current liabilities 6,634,314 5,005,759       Total liabilities 8,017,066 6,634,964       Equity     Ordinary share capital 3,961 3,711 Share premium 1,743,180 1,319,716 Capital reserves 100,113 99,311 Proceeds on account of convertible options 24,994 25,380 Accumulated profit 293,465 240,023 Equity attributable to shareholders of the Company 2,165,713 1,688,141 Non-controlling interests 279,278 306,797 Total equity 2,444,991 1,994,938 Total liabilities and equity 10,462,057 8,629,902 Consolidated Statements of Cash Flows          For the six months ended
June 30For the three months ended
June 30 2026202520262025 USD inUSD inUSD inUSD in ThousandsThousandsThousandsThousands     Cash flows for operating activities    Profit for the period68,985107,37231,1775,569     Income and expenses not associated with cash flows:    Depreciation and amortization98,10671,01747,38437,228Finance expenses, net85,21571,07350,51248,685Share-based compensation10,0422,9944,9411,284Taxes on income22,49825,60610,220955Tax benefits(79,764)(38,972)(39,014)(18,861)Other income (expenses), net(1,063)(2,374)688(3,479)Company’s share in losses of investee partnerships1,4211,645428418Gains from projects disposals(889)(97,828)(453)(566) 135,56633,16174,70665,664     Changes in assets and liabilities items:    Change in other receivables289(4,593)(1,747)(3,737)Change in trade receivables(20,153)(20,885)(18,676)(509)Change in other payables19,63121,47023,65712,866Change in trade payables(14,161)(2,650)(20,890)(10,452) (14,394)(6,658)(17,656)(1,832)     Income Tax paid(5,359)(8,673)(3,774)(7,598)     Net cash from operating activities184,798125,20284,45361,803     Cash flows for investing activities    Sale (Acquisition) of consolidated entities, net(14,657)33,018(14,423)(3,205)Sale of investee entities29,208-29,208-Changes in restricted cash and bank deposits, net280,8838,18653,93710Purchase, development, and construction in respect of projects(1,332,696)(658,022)(723,463)(402,160)Interest receipts (*)15,5186,3348,9783,822Loans provided and Investment in investees(28,320)(26,324)(8,912)(18,894)Repayment of loans to investees22,50430,8158,134-Payments on account of acquisition of consolidated company(7,874)(7,447)(7,874)-Purchase of long-term financial assets measured at fair value through profit or loss, net(24,999)(3,247)(22,735)(207)Net cash used in investing activities(1,060,433)(616,687)(677,150)(420,634)      Consolidated Statements of Cash Flows (Cont.)          For the six months ended
June 30For the three months ended
June 30 2026202520262025 USD inUSD inUSD inUSD in ThousandsThousandsThousandsThousands     Cash flows from financing activities    Receipt of loans from banks and other financial institutions1,387,800674,684609,635531,106Repayment of loans from banks and other financial institutions(601,846)(223,361)(71,388)(114,439)Interest paid (*)(61,825)(40,387)(26,256)(18,089)Issuance of debentures345,933125,838345,933-Issuance of convertible debentures-114,685--Repayment of debentures-(21,994)--Dividends and distributions by subsidiaries to non-controlling interests(37,842)(8,682)(37,842)(8,682)Proceeds from investments by tax-equity investors121,068---Repayment of tax-equity investment(5,837)(10,952)(3,850)(10,952)Deferred borrowing costs(51,410)(46,618)(39,636)(11,419)Receipt of loans from non-controlling interests14182-182Repayment of loans from non-controlling interests(3,539)-(3,539)-Increase in holding rights of consolidated entity-(1,392)--Issuance of shares419,317---Exercise of share options35301819Repayment of lease liability(3,767)(5,803)(938)(1,745)Proceeds from investment in entities by non-controlling interest-12,799-5,067     Net cash from financing activities1,508,101569,029772,137371,048     Increase in cash and cash equivalents632,46677,544179,44012,217     Balance of cash and cash equivalents at beginning of period528,497387,427978,761449,530     Effect of exchange rate fluctuations on cash and cash equivalents2,77115,4885,53318,712     Cash and cash equivalents at end of period1,163,734480,4591,163,734480,459      (*) See Appendix 4 for additional information regarding the change in presentation of interest receipts and interest paid

Information related to Segmental Reporting

For the six months ended June 30, 2026 MENA Europe USA Total reportable segments Others Total USD in thousandsRevenues141,371 113,320 66,693 321,384 1,093 322,477Tax benefits- - 86,807 86,807 - 86,807Total revenues and income141,371 113,320 153,500 408,191 1,093 409,284           Segment adjusted EBITDA125,478 85,484 138,078 349,040 (1,400) 347,640  Reconciliations of unallocated amounts: Headquarter costs (*)(33,398)Intersegment profit9Gains from projects disposals (**)(28,905)Depreciation and amortization and share-based compensation(108,148)Operating profit177,198Finance income20,260Finance expenses(104,554)Share of the losses of equity accounted investees(1,421)Profit before income taxes91,483   (*)      Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).

(**)     Reconciliation between EBITDA and operating profit reflecting the realization of revaluation gains from an asset revalued in 2025.

Information related to Segmental Reporting

For the six months ended June 30, 2025 MENA Europe USA Total reportable
segments Others Total  USD in thousandsRevenues95,637 99,184 30,008 224,829 1,046 225,875 Tax benefits- - 38,972 38,972 - 38,972 Total revenues and income95,637 99,184 68,980 263,801 1,046 264,847             Segment adjusted EBITDA107,031 82,226 59,913 249,170 1,079 250,249    Reconciliations of unallocated amounts:  Headquarter costs (*) (22,958) Intersegment profit 127 Gains from projects disposals 55,336 Depreciation and amortization and share-based compensation (74,011) Operating profit 208,743 Finance income 8,166 Finance expenses (82,286) Share of the losses of equity accounted investees (1,645) Profit before income taxes 132,978      (*)      Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).

Information related to Segmental Reporting

For the three months ended June 30, 2026 MENA Europe USA Total reportable
segments Others Total USD in thousandsRevenues76,869 52,259 36,160 165,288 702 165,990Tax benefits- - 43,701 43,701 - 43,701Total revenues and income76,869 52,259 79,861 208,989 702 209,691           Segment adjusted EBITDA66,703 38,900 72,044 177,647 (946) 176,701  Reconciliations of unallocated amounts: Headquarter costs (*)(16,441)Gains from projects disposals (**)(17,003)Depreciation and amortization and share-based compensation(52,325)Operating profit90,932Finance income11,264Finance expenses(60,371)Share of the losses of equity accounted investees(428)Profit before income taxes41,397   (*)      Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).

(**)     Reconciliation between EBITDA and operating profit reflecting the realization of revaluation gains from an asset revalued in 2025.

Information related to Segmental Reporting

For the three months ended June 30, 2025 MENA Europe USA Total reportable segments Others Total USD in thousandsRevenues52,770 47,800 15,330 115,900 217 116,117Tax benefits- - 18,861 18,861 - 18,861Total revenues and income52,770 47,800 34,191 134,761 217 134,978            Segment adjusted EBITDA39,014 37,563 29,364 105,941 998 106,939   Reconciliations of unallocated amounts:  Headquarter costs (*) (11,257)Intersegment profit 21Gains from projects disposals 363Depreciation and amortization and share-based compensation (38,512)Operating profit 57,554Finance income 1,471Finance expenses (52,083)Share of the losses of equity accounted investees (418)Profit before income taxes 6,524 (*)      Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).

Appendix 2 - Reconciliations between Net Income to Adjusted EBITDA         ($ thousands) For the six months For the three months  ended June 30 ended June 30  2026  2025  2026  2025 Net Income 68,985  107,372  31,177  5,569 Depreciation and amortization 98,106  71,017  47,384  37,228 Share based compensation 10,042  2,994  4,941  1,284 Finance income (20,260)  (8,166)  (11,264)  (1,471) Finance expenses 104,554  82,286  60,371  52,083 Gains from projects disposals 28,905 (**) (55,336) (*) 17,003 (**) (363) (*)Share of losses of equity accounted investees 1,421  1,645  428  418 Taxes on income 22,498  25,606  10,220  955 Adjusted EBITDA 314,251  227,418  160,260  95,703          *    Net profit from deconsolidation and revaluation following the partial sale of an asset (Sunlight cluster).** Contribution to Adjusted EBITDA from the sale of an additional stake in the deconsolidated asset (Sunlight cluster). For more information regarding the composition of Adjusted EBITDA, refer to the description appearing in the “Non-IFRS financial measures” section of this press release.

Appendix 3 – Debentures Covenants

Debentures Covenants

As of June 30, 2026, the Company was in compliance with all of its financial covenants under the indenture for the Series C, D, F, G and H Debentures, based on having achieved the following in its consolidated financial results:

Minimum equity

The company's equity shall be maintained at no less than NIS 375 million so long as debentures F remain outstanding, NIS 1,250 million so long as debentures C and D remain outstanding, and USD 600 million so long as debentures G and H remain outstanding.

As of June 30, 2026, the company’s equity amounted to NIS 7,280 million (USD 2,445 million).

Net financial debt to net CAP

The ratio of standalone net financial debt to net CAP shall not exceed 70% for two consecutive financial periods so long as debentures F remain outstanding and shall not exceed 65% for two consecutive financial periods so long as debentures C, D, G and H remain outstanding.

As of June 30, 2026, the net financial debt to net CAP ratio, as defined above, stands at 33%.

Net financial debt to EBITDA

So long as debentures F remain outstanding, standalone financial debt shall not exceed NIS 10 million, and the consolidated financial debt to EBITDA ratio shall not exceed 18 for more than two consecutive financial periods.

For as long as debentures C and D remain outstanding, the consolidated financial debt to EBITDA ratio shall not exceed 15 for more than two consecutive financial periods.

For as long as debentures G and H remain outstanding, the consolidated financial debt to EBITDA ratio shall not exceed 17 for more than two consecutive financial periods.

As of June 30, 2026, the net financial debt to EBITDA ratio, as defined above, stands at 5.5.

Equity to balance sheet

The standalone equity to total balance sheet ratio shall be maintained at no less than 20% ,25% and 28%, respectively, for two consecutive financial periods for as long as debentures F, debentures C and D and debentures G and H remain outstanding.

As of June 30, 2026, the equity to balance sheet ratio, as defined above, stands at 57%.

Appendix 4 – Change in accounting policy

Until September 30, 2025, interest paid and interest received were presented within cash flows from operating activities in the Consolidated Statements of Cash Flows. In accordance with IAS 7 Statement of Cash Flows, entities are permitted to classify interest paid and interest received as operating, investing, or financing cash flows, provided that the selected classification is applied consistently from period to period.

During the fourth quarter of 2025, management elected to change the classification of interest paid, including payments relating to interest rate swap (IRS) instruments to cash flows used in financing activities, and interest received to cash flows from investing activities. Management believes that this change in presentation provides a more comprehensive view of the cost of financing the Company's operations and better reflects management’s view of the financing nature of these transactions.

Accordingly, comparative information has been retrospectively adjusted to reflect this change in accounting policy in the Consolidated Statements of Cash Flows, as presented below:

($ thousands) For the six months ended   June 30, 2025   As reported Adjustment As adjusted Net cash from operating activities 91,149  34,053  125,202  Net cash used in investing activities (623,021)  6,334  (616,687)  Net cash from financing activities 609,416  (40,387)  569,029  Increase in cash and cash equivalents 77,544  -  77,544   ($ thousands) For the three months ended   June 30, 2025   As reported Adjustment As adjusted Net cash from operating activities 47,536  14,267  61,803  Net cash used in investing activities (424,456)  3,822  (420,634)  Net cash from financing activities 389,137  (18,089)  371,048  Increase in cash and cash equivalents 12,217  -  12,217              Appendix 5

a) Segment information: Operational projects

($ thousands)

6 Months ended June 30

3 Months ended June 30

Operational
Project
Segments
Installed
Capacity
(MW)
Installed
Storage
(MWh)
Generation
(GWh)
Revenues and
income
Segment Adjusted
EBITDA1
Generation
(GWh)Reported RevenueSegment Adjusted
EBITDA1   202620252026202520262025202620252026202520262025MENA676947766695
141,371
95,636
92,43964,387393
37876,86952,76949,24738,637Europe1,327-1,4831,353113,32199,18485,48482,226623
649
52,260
47,800
38,90037,563USA8962,5401,013519153,49968,980138,07859,913599
310
79,860
34,191
72,04429,364Total Consolidated2,8993,4873,2622,567408,191263,800316,002206,5261,615
1,337
208,989134,760160,192105,564Unconsolidated
at Share2847 Total2,9273,534   b) Operational Projects Further Detail

($ thousands)   6 Months ended June 30, 20263 Months ended June 30, 2026 Operational ProjectSegmentInstalled Capacity (MW)Installed Storage (MWh)Revenues and
incomeSegment Adjusted
EBITDA1Reported RevenueSegment Adjusted EBITDA1Debt balance as of June 30, 2026Ownership %2MENA WindMENA316-56,745 26,763 623,80349%MENA PVMENA36094784,626 50,106 638,05384%Total MENA 676947141,37192,43976,86949,2471,261,856 Europe WindEurope1,184-103,994 45,548 808,28565%Europe PVEurope143-9,327 6,712 71,49073%Total Europe 1,327-113,32185,48452,26038,900897,775 USA PVUSA8942,540153,499 79,860 785,440100%Total USA8942,540153,499138,07979,86072,045785,440 Total Consolidated Projects2,8993,487408,191316,002208,989160,1922,927,070 Uncons. Projects at share2847     50%Total 2,9273,534408,191316,002208,989160,1922,927,070            For the 6 month ended June 2026, EBITDA included $1.5m of compensation recognized from Bjorenberget and excluded $30m from Sunlight sale and $3m of compensation from Emek; For the 6 month ended June 2025 EBITDA exculded $42m from Sunlight saleOwnership % is calculated based on the project's share of total revenues c) Projects under construction

($ millions)
Consolidated ProjectsCountryGeneration and energy storage Capacity (MW/MWh)Est.
CODEst. Total
Project CostTax credit benefit- Qualifying categoryTax credit benefit- Adders3Discounted Value of Tax Benefit2

Est. Total
Project Cost net of tax benefitCapital Invested as of June 30, 2026Est. Equity Required (%)Equity Invested as of June 30, 2026Est. First Full Year Revenue4Est. First Full Year EBITDA4,5Ownership %1Country AcresUSA403/688Q4 2026814-855ITCDC (10%)399-419415-4366810%-10%69162-6548-50100%Co Bar 1USA258/824H2 2027-636-669ITCEC (10%)300-315336-3544270%-10%6244124-13097-102100%Co Bar 2+3USA953/0H1 20281,215-1,277PTCEC (10%)547-575668-702100%Crimson OrchardUSA120/400H1 2027319-335ITCEC (10%) +
DC (10% BESS only)164-173155-1621110%-10%63427-2820-21100%Snowflake AUSA594/1,900H2 20271,397-1,469ITCEC (10%)11627-659770-8108920%-10%6159123-130101-106100%Finland BESS10Finland0/902H1 2028173-182---173-1821215%-25%1247-4934-3551%BertikowGermany0/881H1 2028187-197---187-1971020%-30%1037-3831-3250%Gecama SolarSpain227/220Q4 2026197-207---197-20715323%-28%715336-3829-3172%SestanovacCroatia23/75Q4 202635-36---35-361615%-25%1675-6100%Tapolca BessHungary0/140Q4 2621-22---21-221545%
1576-7100%Bjornberget – BESSSweden0/100Q3 202624-25---24-2518100%
183255%Israel ConstructionIsrael7/256Q3 26-
Q1 2741-43---41-431620%-30%169-10568%Total Consolidated Projects 2,585/
6,386 5,059-5,317  2,037-2,1413,022-3,1752,352 769481-505378-397 Unconsolidated Projects at share10Israel13/171Q3 2026- Q1 202735-37---35-373615%-20%366-7552%Total 2,598/
6,557 5,094-5,354  2,037-2,1413,057-3,2122,388 805487-512383-402                 d) Pre-Construction Projects (due to commence construction within 12 months of the Approval Date)

($ millions)
Consolidated ProjectsCountryGeneration and energy storage Capacity (MW/MWh)Est.
CODEst. Total
Project CostTax Credit Benefit Est. Total
Project Cost net of tax benefitCapital Invested as of June 30, 2026Est. Equity Required (%)Equity Invested as of June 30, 2026Est. First Full Year Revenue4Est. First Full Year EBITDA4,5Ownership %1Qualifying CategoryAdders3Discounted Value of Tax Benefit2Co Bar 4+5USA0/3,176H1 20281,044-1,098ITCEC (10%) +
DC (10%)604-635440-463190%-10%19124-131102-108100%NardoItaly104/8722029234-246---234-2461130%1139-4132-33100%JupiterGermany150/2,166H2 2028538-566---538-566735%795-10078-8251%KarpenRomania0/848H2 2028-H1 2029154-162---154-162325%-35%331-3326-28100%KajoFinland0/542H1 2028106-111---106-111020%025-2618-1951%Ohad HV storage9Israel0/675H2 2028117-123---117-1231520%1595100%Neot Smadar HV storage9Israel0/675H1 2029115-121---115-121520%573100% ($ millions)
Additional Pre-Construction ProjectsMW DeploymentMW/MWh

Est. Total
Project CostTax Credit BenefitDiscounted Value of Tax Benefit2Est. Total
Project Cost net of tax benefitCapital Invested as of June 30, 2026Est. Equity Required (%)Equity Invested as of June 30 2026Est. First Full Year Revenue4Est. First Full Year EBITDA4,5Ownership %1202720282029Qualifying CategoryAdders3United States128/0184/0255/0883-929ITCDC (10%) & EC (10%)8439-462444-4675310%-20%5361-6548-50100%Europe0/3160/208-94-99---94-99330%-100%320-2115-1687%MENA5/52686/356-301-316---301-3161420%-40%1459-6221-2295%Total Consolidated Projects133/842270/564255/03,586-3,771  1,043-1,0972,543-2,674131 131470-495358-378 Unconsolidated Projects at share100/260/7-5---5115%-20%11156%Total Pre-Construction912MW +10,393MWh3,591-3,776  1,043-1,0972,548-2,679132 132471-496359-379               1) The legal ownership share for all U.S. projects is 90%, but Enlight invests 100% of the equity in the project and entitled to 100% of the project distributions until full repayment of Enlight's capital plus a preferred return

2) Value of tax benefits under the IRA: The PTC value is estimated based on the project’s expected annual production and a yearly CPI indexation of 2%, discounted by 8% to COD. In assessing the value of the ITC, a step-up adjustment was made to reflect the full value of the tax credits, thus lowering net construction costs and enhancing the valuation and return of the project. The actual value attributed to tax benefits in a tax equity transaction may differ from the value presented, subject to the structure of the transaction and prevailing market conditions.

3) The Energy Community (EC) Adder provides extra credits for renewable energy projects in areas impacted by fossil fuel reliance or economic transition. The Domestic Content (DC) Adder rewards projects using U.S.-manufactured components, promoting local job creation and supply chain growth

4) Revenue and EBITDA for the first year of U.S. projects as presented above do not include income from tax benefits

5) EBITDA is a non-IFRS financial measure. This figure represents consolidated EBITDA for the project and excludes the share of project distributions to tax equity partners, as well as ITC and PTC proceeds. These components of the tax equity transaction may differ from project to project, are subject to market conditions and commercial terms agreed upon reaching financial close

6) The required equity during construction is estimated at 10% and is expected to decrease to 0% at COD

7) Gecama Solar’s debt is held under Gecama Wind. As of June 30, 2026, the solar project had $41m USD drawn

8) Rustic hills 1+2 - DC (10%) + EC (10%); Coggon - DC (10%); Gemstone - DC (10%);

9) Two high voltage projects with total capacity of 1,350MWh. Estimated revenue for the first 5 years is $14-15m million per year. From year 6, the projects will move to a deregulated market, with revenue expected to be $55 million per year

10) All numbers, beside equity invested, reflects Enlight share only

11) In the previous quarter, the Snowflake A BESS project was presented as expected to be eligible for the Domestic Content (“DC”) Adder. The project will not meet the applicable requirements for the DC adder. However, the removal of the DC adder is offset by significant savings capital expenditure of the new alternative equipment resulting in a negligible impact on the project’s economics

e) Additional information on tax equity investments

  Tax equity investmentTax equity partner's share of project tax credits, cash flows, and taxable income($ millions)
Projects*Est. Total
Project CostUpfront tax equity investmentTax credit proceeds during the project's operation ("pay-go")Share of ITC/PTC tax credit allocated to tax equity partnerShare of taxable income initial periodDuration of initial period for share of taxable income (years)Share in project cash flow initial period (second period)Duration of initial period for share in project cash flow (years)Atrisco PV36919855ConfidentialConfidentialConfidential17.5% (5%)10Atrisco BESS458266-ConfidentialConfidentialConfidential23% (7%)5Quail Ranch2741311899%99%1010% (5%)10Roadrunner6213375599%99%5-1010%-12% (5%)10          * Apex financing was structured as a sale and leaseback and therefore not included in the table above

Appendix 6 – cash and cash equivalents

($ thousands) June 30, 2026Cash and Cash Equivalents:    Enlight Renewable Energy Ltd, Enlight EU Energies Kft and Enlight Renewable LLC excluding subsidiaries (“Topco”) 876,801Subsidiaries   286,933Deposits:    Short term deposits   2,280Restricted Cash:    Projects under construction   122,735Reserves, including debt service, performance obligations and others 133,009Total Cash   1,421,758      Appendix 7 – Corporate level (TopCo) debt

($ thousands)June 30, 2026Debentures: Debentures1,041,225*Convertible debentures287,992Loans from banks and other financial institutions: Credit and short-term loans from banks and other financial institutions67,665Loans from banks and other financial institutions116,659Total corporate level debt1,513,541   * Including current maturities of debentures in the amount of 186,745

Appendix 8 – Functional Currency Conversion Rates:

The financial statements of each of the Company’s subsidiaries were prepared in the currency of the main economic environment in which it operates (hereinafter: the “Functional Currency”). For the purpose of consolidating the financial statements, results and financial position of each of the Group’s member companies are translated into the Israeli shekel (“NIS”), which is the Company’s Functional Currency. The Group’s consolidated financial statements are presented in U.S. dollars (“USD”).

FX Rates to USD:

Date of the financial statements:
EuroNISAs of 30th June 2026 1.140.34As of 30th June 2025 1.130.28    Average for the 3 months period ended:   June 2026 1.160.34June 2025 1.170.30 A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4e9351f7-7d30-4523-aa37-c0f12939ee6e

Original source text

A securities fraud class action lawsuit has been filed on behalf of Planet Fitness investors after its stock dropped over 31% relating to Planet Fitness's failed marketing campaign that alienated the company's core market, casual gym-goers, and led to disappointing membership growth during the key Q1 sign-up period.

, /PRNewswire/ -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Planet Fitness, Inc. (NYSE:PLNT) and certain of the Company's senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.

If you invested in Planet Fitness, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/planet-fitness-class-action-lawsuit.

Key Details of the Planet Fitness ($PLNT) Class Action Lawsuit:

Lead Plaintiff Deadline: September 14, 2026 Alleged Misconduct: Securities fraud relating to Planet Fitness's failed marketing campaign that led to disappointing membership growth during the key Q1 sign-up period Stock Drop: May 7, 2026 – 31% Stock Drop Court: U.S. District Court for the District of New Hampshire Take Action: Contact BFA Law to discuss your rights Investors have until September 14, 2026, to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Planet Fitness common stock. The class action is pending in the U.S. District Court for the District of New Hampshire. It is captioned Matsunaga v. Planet Fitness, Inc., et al., No. 26-cv-00576.

Why is Planet Fitness Being Sued for Securities Fraud?

Planet Fitness is a large franchisor and operator of fitness centers across the United States. The company aims to offer a fitness experience in a non-intimidating environment, which it calls the Judgement Free Zone.

The complaint alleges that throughout the relevant period, Planet Fitness misrepresented the success of its marketing campaign to focus on "fitness-minded" members. For instance, Planet Fitness told investors that it "continue[d] to lean into our 'we are all strong on this Planet' campaign." Planet Fitness also stated that "[b]ecause this campaign resonated so strongly last year, we extended it into 2026."

In truth, Planet Fitness's marketing campaign alienated fitness beginners and more casual gym-goers, which traditionally had been the company's focus and would be forced to restructure its marketing strategy. This caused the company to halt planned increases which its sales projections were premised on.

Why did Planet Fitness's Stock Drop?

On May 7, 2026, Planet Fitness released its Q1 2026 financial results. The company announced disappointing membership growth and cut 2026 revenue growth guidance from approximately 9% to about 7% and adjusted EBITDA growth guidance from roughly 10% to approximately 6%. During the same-day earnings call, the company stated that its marketing "may have pivoted too far" as the company "shift[ed] from [its] lighthearted approachable tone" to one that "increased penetration with the fitness-minded." As such it announced that, "we are pausing the planned national Black Card price increase pending a broader pricing review."

This news caused the price of Planet Fitness stock to decline $19.95 per share, or 31%, from a closing price of $63.96 per share on May 6, 2026, to $44.01 per share on May 7, 2026.

Click here for more information: https://www.bfalaw.com/cases/planet-fitness-class-action-lawsuit.

What Can You Do?

If you invested in Planet Fitness, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/planet-fitness-class-action-lawsuit

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named "Elite Trial Lawyers" by the National Law Journal, "Litigation Stars" by Benchmark Litigation, among the top "500 Leading Plaintiff Financial Lawyers" by Lawdragon, "Titans of the Plaintiffs' Bar" by Law360 and "SuperLawyers" by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff's securities litigation law firm, with clients noting: "[t]here is no better service provider in the practice area," "[t]he interest of the client is always front and center," and "[t]here isn't a better firm in this space." One testimonial described the firm as "nimble and entrepreneurial," with a "relentless focus on adding value for clients."

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

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Attorney advertising. Past results do not guarantee future outcomes.

SOURCE Bleichmar Fonti & Auld LLP

Original source text

PORTSMOUTH, N.H.--(BUSINESS WIRE)--Albany International Corp. (NYSE:AIN) today reported operating results for its second quarter of 2026, which ended June 30, 2026.

Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, “Our second-quarter performance delivered the strongest Adjusted EBITDA we have achieved in the past two years and grew 11.5% year-over-year, despite modestly lower-than-expected revenue due to several discrete factors. This result reflects the progress we have made to build a more nimble company and underscores the strength of our operating model, our focus on profitable growth, and the dedication of the Albany team."

Kleveland continued, “In Engineered Composites, we are seeing the benefits of a refined operating model centered on our innovative technologies, which enable lighter-weight, more durable solutions for customers across commercial aerospace, defense, and space applications. Our recent participation at the Farnborough International Airshow reinforced the value of our business, as leading OEMs and government stakeholders engaged with us to explore solutions enabled by our innovative material science. In Machine Clothing, we are applying that same focus on innovation to expand opportunities for our high-value, performance-driven products across a broader range of uses.”

Consolidated Results

The Company’s net revenues were $329.5 million in the second quarter of 2026, compared to $311.4 million in the prior year. The increase was primarily driven by higher volume in the Engineered Composites business, offset by some end-market softness in Machine Clothing along with downtime related to an equipment failure in the Machine Clothing business.

Gross profit of $107.9 million in the second quarter of 2026 was 10.7% higher than $97.5 million reported for the same period of 2025, as a result of cost controls in Machine Clothing and a favorable mix of aerospace and defense programs in the Engineered Composites business.

Selling, general, and administrative expenses were $56.1 million in the second quarter of 2026, compared to $58.5 million in the same period of 2025, driven primarily by cost containment initiatives.

Operating income was $32.1 million, compared to $22.3 million in the prior year, an increase of 44.3%, primarily driven by stronger gross profit and cost containment initiatives.

The effective tax rate for the quarter was 32.0% compared to a 31.3% effective tax rate in the second quarter of 2025.

The net income attributable to the Company was $17.4 million, or $0.61 per share on a basic and diluted basis, compared to $9.2 million, or $0.31 per share in the second quarter of 2025.

Adjusted diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.82 per share, compared to $0.57 per share for the same period of last year.

Adjusted EBITDA (a non-GAAP measure) was $57.8 million, compared to $51.9 million in the second quarter of 2025, an increase of 11.5%, due to stronger revenue and operating profit. Adjusted EBITDA margin was 17.6% and 16.7% in the prior year, up 90 basis points as a result of stronger contribution from Engineered Composites.

Will Station, Albany International’s Chief Financial Officer, said, “We are pleased with our second-quarter performance, as disciplined execution and a more focused operating model drove meaningful year-over-year improvement in profitability. As we look to the balance of the year, we remain well positioned to maintain our growth trajectory. In Engineered Composites, we expect continued strength as multiple programs scale and we benefit from our focus on quality of earnings, while in Machine Clothing, we remain focused on execution and margin stability as we manage a fluid demand environment across the geographies we serve.”

Machine Clothing

Machine Clothing's net revenues decreased 2.4% after adjusting for currency translation, primarily driven by cyclical declines in the Americas and machine downtime in that region.

Machine Clothing’s adjusted EBITDA margin was 28.0%, compared to 28.9% in the second quarter of 2025. The margin decline is primarily impacted by foreign currency impacts related to a weaker U.S. dollar. On a constant currency basis, margins were up slightly at 29.0% despite lower volumes, driven by synergies and efficiency gains across the network.

Engineered Composites

Engineered Composites net revenues increased 14.2% after adjusting for currency translation, driven by strength across commercial and defense programs, most notably on the commercial side within the LEAP program, and on the defense side under the CH-53K and missile programs.

Adjusted EBITDA margin was 13.3%, compared to 8.5% in the second quarter of 2025. The increase in margin was driven by the continued focus on quality of earnings and the scaling of more profitable programs.

Capital Allocation Balance Sheet

Capital expenditures were $11.9 million, compared to $14.9 million in the second quarter of 2025, and were driven primarily by facility optimizations. Research and development expenses totaled $11.7 million, compared to $12.6 million in the second quarter of 2025, consistent with the Company’s commitment to advancing proprietary technologies and supporting long-term growth in both Machine Clothing and Engineered Composites.

Albany ended the quarter with cash and cash equivalents of $77.3 million and total debt of $450.7 million, resulting in a net debt position of $373.3 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders.

Outlook for the Third Quarter of 2026

Consolidated net revenue between $320 million and $330 million Machine Clothing net revenue between $165 million and $170 million Engineered Composite net revenue between $155 million and $160 million Adjusted EPS between $0.60 and $0.70 Third-quarter effective tax rate of 31.5% Second-Quarter 2026 Results Conference Call/Webcast

The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Tuesday, August 4, 2026. Interested parties are encouraged to listen to the live webcast via the Company’s Investor Relations website at investors.albint.com or by registering via the link here. The event can also be accessed by dialing +1 (833) 461-5787 and using the Meeting ID: 487 159 842.

An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Tuesday, August 4, 2026.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net revenues

$

329,482

$

311,399

$

640,815

$

600,173

Cost of goods sold

221,581

213,892

433,120

406,180

Gross profit

107,901

97,507

207,695

193,993

Selling, general, and administrative expenses

56,068

58,502

114,367

112,314

Technical and research expenses

11,722

12,552

24,679

24,448

Restructuring expenses, net

7,973

4,183

11,138

6,698

Operating income

32,138

22,270

57,511

50,533

Interest expense, net

6,068

5,150

11,535

8,805

Other expense/(income), net

39

3,534

(3,154

)

4,517

Income before income taxes

26,031

13,586

49,130

37,211

Income tax expense

8,327

4,254

15,977

10,530

Net income

17,704

9,332

33,153

26,681

Net income attributable to the noncontrolling interest

290

149

458

143

Net income attributable to the Company

$

17,414

$

9,183

$

32,695

$

26,538

Earnings per share attributable to Company shareholders - Basic

$

0.61

$

0.31

$

1.15

$

0.87

Earnings per share attributable to Company shareholders - Diluted

$

0.61

$

0.31

$

1.14

$

0.87

Shares of the Company used in computing earnings per share:

Basic

28,361

29,928

28,341

30,373

Diluted

28,588

30,090

28,568

30,535

Dividends declared per Class A share

$

0.28

$

0.27

$

0.56

$

0.54

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

June 30, 2026

December 31, 2025

Assets

Cash and cash equivalents

$

77,349

$

112,350

Accounts receivable, net

252,133

235,084

Contract assets, net

77,287

87,102

Inventories

146,158

121,589

Income taxes prepaid and receivable

41,191

43,937

Prepaid expenses and other current assets

40,402

34,990

Assets held for sale

306,722

293,783

Total current assets

$

941,242

$

928,835

Property, plant and equipment, net

467,424

482,568

Intangibles, net

19,667

21,428

Goodwill

160,552

162,507

Deferred income taxes

66,319

68,499

Other assets

56,161

54,872

Total assets

$

1,711,365

$

1,718,709

Liabilities and Shareholders' Equity

Accounts payable

$

75,075

$

64,499

Accrued liabilities

133,829

139,385

Income taxes payable

24,524

35,090

Liabilities held for sale

187,108

203,323

Total current liabilities

420,536

442,297

Long-term debt

450,669

455,663

Other noncurrent liabilities

85,983

86,850

Deferred income taxes

2,088

1,797

Total liabilities

959,276

986,607

Commitments and Contingencies

Shareholders' Equity:

Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 41,056,929 issued in 2026 and 40,989,106 in 2025

41

41

Additional paid in capital

464,148

460,472

Retained earnings

993,170

976,373

Accumulated items of other comprehensive income:

Translation adjustments

(121,743

)

(119,008

)

Pension and postretirement liability adjustments

(23,065

)

(23,911

)

Derivative valuation adjustment

131

(619

)

Treasury stock (Class A), at cost; 12,685,782 shares in 2026 and 12,685,782 in 2025

(566,993

)

(567,139

)

Total shareholders' equity

745,689

726,209

Noncontrolling interest

6,400

5,893

Total equity

752,089

732,102

Total liabilities and shareholders' equity

$

1,711,365

$

1,718,709

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$

33,153

$

26,681

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

Depreciation

32,853

40,085

Amortization

1,294

2,957

Change in deferred taxes

2,179

(2,761

)

Loss/(gain) on disposal of property, plant and equipment

324

(66

)

Non-cash interest expense

515

513

Compensation and benefits paid or payable in Class A Common Stock

5,009

3,654

Provision/(recovery) for credit losses from uncollected receivables and contract assets

(101

)

1,021

Foreign currency remeasurement loss/(gain) on intercompany loans

(3,788

)

7,171

Changes in operating assets and liabilities that provided/(used) cash:

Accounts receivable

(12,899

)

(4,490

)

Contract assets

(8,778

)

(15,329

)

Inventories

(22,912

)

(8,179

)

Prepaid expenses and other current assets

(5,195

)

(2,565

)

Income taxes prepaid and receivable

2,769

743

Accounts payable

14,488

26,878

Accrued liabilities

(23,259

)

(23,314

)

Income taxes payable

(11,034

)

(17,191

)

Noncurrent receivables

—

(201

)

Other noncurrent liabilities

288

(2,927

)

Other, net

(1,914

)

3,719

Net cash provided by operating activities

2,992

34,833

Cash flows from investing activities:

Purchases of property, plant and equipment

(21,170

)

(29,526

)

Purchased software

(12

)

(1,005

)

Proceeds received from sale of assets

—

3,243

Proceeds from sale of investment

1,660

—

Net cash used in investing activities

(19,522

)

(27,288

)

Cash flows from financing activities:

Proceeds from borrowings

83,000

171,995

Repayment of borrowings

(85,000

)

(58,046

)

Purchase of Treasury shares

—

(120,448

)

Taxes paid in lieu of share issuance

(1,333

)

(1,316

)

Dividends paid

(15,867

)

(16,693

)

Net cash used in financing activities

(19,200

)

(24,508

)

Effect of exchange rate changes on cash and cash equivalents

729

8,369

Decrease in cash and cash equivalents

(35,001

)

(8,594

)

Cash and cash equivalents at beginning of period

112,350

115,283

Cash and cash equivalents at end of period

$

77,349

$

106,689

Supplemental disclosure of cash flow information:

Cash paid for interest, net

$

12,451

$

10,710

Cash paid for income taxes

$

23,056

$

26,278

The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure:

(in thousands, except percentages)

Net revenues as reported, Q2 2026

(Decrease)/ increase due to changes in currency translation rates

Q2 2026 revenues on same basis as Q2 2025 currency translation rates

Net revenues as reported, Q2 2025

% Change compared to Q2 2025, excluding currency rate effects

Machine Clothing

$

178,710

$

2,137

$

176,573

$

180,926

(2.4

)%

Albany Engineered Composites

150,772

1,824

148,948

130,473

14.2

%

Consolidated total

$

329,482

$

3,961

$

325,521

$

311,399

4.5

%

(in thousands, except percentages)

Net revenues as reported, YTD 2026

(Decrease)/ increase due to changes in currency translation rates

YTD 2026 revenues on same basis as 2025 currency translation rates

Net revenues as reported, YTD 2025

% Change compared to 2025, excluding currency rate effects

Machine Clothing

$

344,662

$

8,279

$

336,383

$

355,623

(5.4

)%

Albany Engineered Composites

296,153

4,959

291,194

244,550

19.1

%

Consolidated total

$

640,815

$

13,238

$

627,577

$

600,173

4.6

%

The following table presents Gross profit and Gross profit margin:

(in thousands, except percentages)

Gross profit,

Q2 2026

Gross profit margin, Q2 2026

Gross profit,

Q2 2025

Gross profit margin, Q2 2025

Machine Clothing

$

80,947

45.3

%

$

83,759

46.3

%

Albany Engineered Composites

26,954

17.9

%

13,748

10.5

%

Consolidated total

$

107,901

32.7

%

$

97,507

31.3

%

Reconciliation of Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods have been calculated as follows.

Three months ended June 30, 2026

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

34,705

$

11,429

$

(28,430

)

$

17,704

Interest expense/(income), net

—

—

6,068

6,068

Income tax expense

—

—

8,327

8,327

Depreciation and amortization expense

8,422

8,561

35

17,018

EBITDA (non-GAAP)

43,127

19,990

(14,000

)

49,117

Restructuring costs and other

6,389

—

1,584

7,973

Foreign currency revaluation (gains)/losses

503

175

(521

)

157

Strategic review and other transition expenses

20

109

739

868

Pre-tax loss/(income) attributable to noncontrolling interest

—

(289

)

—

(289

)

Adjusted EBITDA (non-GAAP)

$

50,039

$

19,985

$

(12,198

)

$

57,826

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.0

%

13.3

%

—

17.6

%

Three months ended June 30, 2025

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

37,702

$

(2,674

)

$

(25,696

)

$

9,332

Interest expense/(income), net

—

—

5,150

5,150

Income tax expense

—

—

4,254

4,254

Depreciation and amortization expense

7,973

13,455

323

21,751

EBITDA (non-GAAP)

45,675

10,781

(15,969

)

40,487

Restructuring costs and other

3,015

520

(918

)

2,617

Foreign currency revaluation (gains)/losses

3,467

21

5,449

8,937

Strategic review and other transition expenses

—

28

—

28

Pre-tax (income) attributable to noncontrolling interest

41

(228

)

—

(187

)

Adjusted EBITDA (non-GAAP)

$

52,198

$

11,122

$

(11,438

)

$

51,882

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.9

%

8.5

%

—

16.7

%

Six months ended June 30, 2026

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

66,657

$

20,027

$

(53,531

)

$

33,153

Interest expense/(income), net

—

—

11,535

11,535

Income tax expense

—

—

15,977

15,977

Depreciation and amortization expense

16,724

17,350

73

34,147

EBITDA (non-GAAP)

83,381

37,377

(25,946

)

94,812

Restructuring costs and other

9,065

—

2,073

11,138

Foreign currency revaluation (gains)/losses

85

(41

)

(2,631

)

(2,587

)

Strategic review and other transition expenses

541

109

2,493

3,143

Pre-tax (income) attributable to noncontrolling interest

—

(520

)

—

(520

)

Adjusted EBITDA (non-GAAP)

$

93,072

$

36,925

$

(24,011

)

$

105,986

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

27.0

%

12.5

%

—

16.5

%

Six months ended June 30, 2025

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

76,133

$

(1,058

)

$

(48,394

)

$

26,681

Interest expense/(income), net

—

—

8,805

8,805

Income tax expense

—

—

10,530

10,530

Depreciation and amortization expense

15,679

26,750

613

43,042

EBITDA (non-GAAP)

91,812

25,692

(28,446

)

89,058

Restructuring costs and other

4,617

1,688

(918

)

5,387

Foreign currency revaluation (gains)/losses

5,159

(144

)

8,508

13,523

Strategic review and other transition expenses

182

(412

)

40

(190

)

Pre-tax (income) attributable to noncontrolling interest

120

(299

)

—

(179

)

Adjusted EBITDA (non-GAAP)

$

101,890

$

26,525

$

(20,816

)

$

107,599

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.7

%

10.8

%

—

17.9

%

The following table presents the reconciliation of Machine Clothing's Adjusted EBITDA Margin to Adjusted EBITDA Margin excluding the effect of changes in currency translation rates, a non-GAAP measure:

(in thousands, except percentages)

As reported, Q2 2026

(Decrease)/ increase due to changes in currency translation rates

Q2 2026 on same basis as Q2 2025 currency translation rates

As reported, Q2 2025

Machine Clothing Net revenues

$

178,710

$

2,137

$

176,573

$

180,926

Machine Clothing Adjusted EBITDA (non-GAAP)

50,039

(1,112

)

51,151

52,198

Adjusted EBITDA Margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.0

%

29.0

%

28.9

%

Per share impact of the adjustments to earnings per share are as follows:

Three months ended June 30, 2026

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

7,973

$

2,551

$

5,422

$

0.19

Foreign currency revaluation (gains)/losses

157

50

107

—

Strategic review and other transition expenses

868

278

590

0.02

Three months ended June 30, 2025

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

2,617

$

845

$

1,772

$

0.06

Foreign currency revaluation (gains)/losses

8,937

2,887

6,050

0.20

Strategic review and other transition expenses

28

9

19

0.00

Six months ended June 30, 2026

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

11,138

$

3,620

$

7,518

$

0.26

Foreign currency revaluation (gains)/losses

(2,587

)

(841

)

(1,746

)

(0.06

)

Strategic review and other transition expenses

3,143

1,021

2,122

0.07

Six months ended June 30, 2025

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

5,387

$

1,740

$

3,647

$

0.12

Foreign currency revaluation (gains)/losses

13,523

4,368

9,155

0.30

Strategic review and other transition expenses

(190

)

(61

)

(129

)

(0.01

)

The following table provides a reconciliation of Earnings per share attributable to the Company shareholders - Diluted (GAAP) to Adjusted earnings per share attributable to the Company shareholders - Diluted (non-GAAP):

Three months ended June 30,

Six months ended June 30,

Per share amounts (Diluted)

2026

2025

2026

2025

Earnings per share attributable to Company shareholders - Diluted (GAAP)

$

0.61

$

0.31

$

1.14

$

0.87

Adjustments, after tax:

Restructuring costs and other

0.19

0.06

0.26

0.12

Foreign currency revaluation (gains)/losses

—

0.20

(0.06

)

0.30

Strategic review and other transition expenses

0.02

—

0.07

(0.01

)

Adjusted earnings per share attributable to Company shareholders - Diluted (non-GAAP)

$

0.82

$

0.57

$

1.41

$

1.28

The calculations of net debt are as follows:

(in thousands)

June 30, 2026

December 31, 2025

June 30, 2025

Long-term debt

450,669

455,663

444,686

Total debt

450,669

455,663

444,686

Cash and cash equivalents

77,349

112,350

106,689

Net debt (non-GAAP)

$

373,320

$

343,313

$

337,997

Free cash flow is defined as GAAP "Net cash provided by operating activities" in a period less "Purchases of property, plant and equipment" and "Purchased software" in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow:

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Net cash provided by operating activities

$

(2,651

)

$

32,714

$

2,992

$

34,833

Purchases of property, plant and equipment

(11,880

)

(13,929

)

(21,170

)

(29,526

)

Purchased software

(12

)

(1,005

)

(12

)

(1,005

)

Free cash flow

$

(14,543

)

$

17,780

$

(18,190

)

$

4,302

About Albany International Corp.

Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses.

Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, employs approximately 5,700 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.

Non-GAAP Measures

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; adjusted net revenues; Adjusted Gross profit/(loss); Adjusted Operating income/(loss);EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; Adjusted Net Income; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These current year revenues converted at prior year rates are then compared to the U.S. dollar amount as reported in the prior period.

EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues.

Adjusted Net Income is a supplemental measure of our performance that is not required by, or presented in accordance with U.S. GAAP. The company defines Adjusted Net Income to exclude costs related to the review of strategic alternatives for its structures assembly business, which could include a potential sale of that portion of the business. Such excluded adjustments to profitability to future contracts do not consist of items that are considered normal or recurring in the course of continued business operations.

The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results.

The Company’s Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted EPS may not be comparable to similarly titled measures of other companies.

Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness.

We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Forward-Looking Statements

This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2026 and in future years; expectations in 2026 and in future periods of revenues, Adjusted Net Revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Net Income, Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.

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Original source text

Fiscal Year 2026 Recurring revenues grew 8% on a reported and constant currency basis

Diluted EPS was $9.60 and Adjusted EPS grew 12% to $9.60

Closed sales rose to $305 million

Raising annual dividend by 12% to $4.36, 20th consecutive annual dividend increase

Fiscal year 2027 guidance calls for 6-8% Recurring revenue growth constant currency
and 8-12% Adjusted EPS growth

, /PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the fourth quarter and fiscal year 2026. Results compared with the same period last year were as follows:

Summary Financial Results

Fourth Quarter

Fiscal Year

Dollars in millions, except per share data

2026

2025

Change

2026

2025

Change

Recurring revenues

$1,542

$1,424

8 %

$4,878

$4,508

8 %

     Constant currency growth (Non-GAAP)

8 %

8 %

Total revenues

$2,220

$2,065

7 %

$7,477

$6,889

9 %

Operating income

$546

$499

10 %

$1,301

$1,189

9 %

     Margin

24.6 %

24.1 %

17.4 %

17.3 %

Adjusted Operating income (Non-GAAP)

$598

$558

7 %

$1,535

$1,411

9 %

     Margin (Non-GAAP)

26.9 %

27.0 %

20.5 %

20.5 %

Diluted EPS

$3.44

$3.16

9 %

$9.60

$7.10

35 %

Adjusted EPS (Non-GAAP)

$3.82

$3.55

8 %

$9.60

$8.55

12 %

Closed sales

$158

$114

39 %

$305

$288

6 %

"Broadridge is delivering strong results today while positioning our company for an exciting digital, agentic, and tokenized future," said Tim Gokey, Broadridge's CEO.

"Fiscal year 2026 Recurring revenue growth constant currency was 8%, Adjusted EPS grew 12%, and Closed sales topped $305 million. Strong Free cash flow conversion of 110% helped drive record share repurchases. As a result, we achieved our three-year Recurring revenue and Adjusted EPS growth objectives for the fifth consecutive cycle.

"We are building the infrastructure for the markets of tomorrow," Mr. Gokey continued. "We are enabling Governance solutions for tokenized assets, reinventing shareholder engagement, and digitizing communications. We are transforming collateral management and integrating tokenized assets into our Wealth and Capital Markets platforms. Across Broadridge, we are leaning into Agentic AI to drive growth and productivity.

"Our fiscal year 2027 guidance calls for another year of strong financial performance, with 6-8% Recurring revenue growth constant currency, 8-12% Adjusted EPS growth, Free cash flow conversion greater than 100%, and Closed sales of $290-330 million. I'm also pleased to announce that our Board has approved a 12% increase in our annual dividend, marking the fourteenth double-digit increase in the past fifteen years," Mr. Gokey concluded.

Fiscal Year 2027 Financial Guidance

Recurring revenue growth constant currency (Non-GAAP)

6 - 8%

Adjusted Operating income margin (Non-GAAP)

~21%

Adjusted Earnings per share growth (Non-GAAP)

8 - 12%

Free cash flow conversion (Non-GAAP)

100%+

Closed sales

$290 - $330 million

Financial Results for Fourth Quarter Fiscal Year 2026 compared to Fourth Quarter Fiscal Year 2025

Total revenues increased 7% to $2,220 million from $2,065 million. Recurring revenues increased $119 million, or 8%, to $1,542 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, driven by organic growth in Investor Communication Solutions ("ICS") and Global Technology and Operations ("GTO") and acquisitions in ICS and GTO. Event-driven revenues decreased $8 million, or 10%, to $71 million, primarily due to lower mutual fund proxy revenues. Distribution revenues increased $44 million, or 8%, to $606 million, driven primarily by postage rate increases of approximately $32 million. Operating income was $546 million, an increase of $48 million, or 10%. Operating income margin increased to 24.6%, compared to 24.1% for the prior year period. Adjusted Operating income was $598 million, an increase of $40 million, or 7%. Adjusted Operating income margin was 26.9% compared to 27.0% for the prior year period. Interest expense, net was flat at $27 million, compared to the prior year period. The effective tax rate was 23.7% compared to 20.6% in the prior year period. The change in effective tax rate for the three months ended June 30, 2026 was primarily driven by a decrease in discrete tax benefits. Net earnings increased 6% to $398 million and Adjusted Net earnings increased 5% to $442 million. Diluted earnings per share increased 9% to $3.44, compared to $3.16 in the prior year period, and Adjusted earnings per share increased 8% to $3.82, compared to $3.55 in the prior year period. Segment and Other Results for Fourth Quarter Fiscal Year 2026 compared to Fourth Quarter Fiscal Year 2025

ICS

Total revenues were $1,732 million, an increase of $132 million, or 8%. Recurring revenues increased $96 million, or 10%, to $1,055 million. Recurring revenue growth constant currency (Non-GAAP) was 10%, driven by 6pts of Internal Growth, 3pts of Net New Business, and 1pt from acquisitions. By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows: Regulatory rose 14% and 14%, respectively. Equity revenue position growth was 14% and Mutual fund/ETF position growth was 7%. Data-driven fund solutions rose 7% and 7%, respectively, driven by growth in data and analytics products and the acquisitions of Acolin Group Holdco Limited ("Acolin") and LDI MAP, LLC ("iJoin"). Issuer rose 8% and 8%, respectively, driven by growth in disclosure solutions and shareholder engagement solutions. Customer communications rose 1% and 1%, respectively, driven by the acquisition of Signal Agency Limited ("Signal"). Event-driven revenues decreased $8 million, or 10%, to $71 million, from lower mutual fund proxy revenues. Distribution revenues increased $44 million, or 8%, to $606 million, driven primarily by postage rate increases of approximately $32 million. Earnings before income taxes increased by $40 million, or 8%, to $531 million, driven by higher Recurring revenues and Distribution revenues. Operating expenses rose 8%, or $91 million, to $1,201 million driven by higher distribution expenses, volume-related expenses and the impact of acquisitions and investments. Pre-tax margins were flat at 30.6%. GTO

Recurring revenues were $488 million, an increase of $23 million, or 5%. Recurring revenue growth constant currency (Non-GAAP) was 5%, driven by organic growth and the acquisition of CQG, Inc. ("CQG"). By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows: Capital Markets rose 8% and 7%, respectively, primarily driven by 4pts of organic growth and 3pts from the acquisition of CQG. Wealth and Investment Management rose 1% and 1%, respectively. The benefit of higher trading volumes was offset by a 4pt impact from lower software term license revenue. Earnings before income taxes were $68 million, an increase of $34 million, or 99%, driven by higher revenue and lower expenses. Pre-tax margins increased to 13.8% from 7.3%. Corporate and Other

Loss before income taxes increased by $24 million, primarily due to a non-cash Loss on Digital Assets of $11 million and higher technology spending, including the impact of investments. Financial Results for Fiscal Year 2026 compared to the Fiscal Year 2025

Total revenues increased 9% to $7,477 million from $6,889 million. Recurring revenues increased $370 million, or 8%, to $4,878 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, driven by organic growth and acquisitions in ICS and GTO. Event-driven revenues increased $29 million, or 9%, to $348 million, driven by higher equity and other communications. Distribution revenues increased $189 million, or 9%, to $2,251 million, primarily driven by postage rate increases of approximately $123 million and higher volumes. Operating income was $1,301 million, an increase of $112 million, or 9%. Operating income margin increased to 17.4%, compared to 17.3% for the prior year period. Adjusted Operating income was $1,535 million, an increase of $124 million, or 9%. Adjusted Operating income margin rose slightly to 20.5%. The combination of higher distribution revenue and the impact of lower rates on float income negatively impacted margins by 40 basis points. Interest expense, net was $100 million, a decrease of $23 million, primarily due to lower average borrowings and lower borrowing costs. The effective tax rate was 22.2% compared to 20.7% in the prior year period. The change in effective tax rate for the twelve months ended June 30, 2026 was primarily driven by an increase in pre-tax income and a decrease in total discrete tax benefits. The decrease in discrete tax benefits was primarily driven by a decrease in the excess tax benefits associated with stock-based compensation. Net earnings increased 34% to $1,124 million and Adjusted Net earnings increased 11% to $1,124 million. Diluted earnings per share increased 35% to $9.60, compared to $7.10 in the prior year period, and Adjusted earnings per share increased 12% to $9.60, compared to $8.55 in the prior year period. Segment and Other Results for Fiscal Year 2026 compared to Fiscal Year 2025

ICS

Total revenues were $5,561 million, an increase of $448 million, or 9%. Recurring revenues increased $230 million, or 8%, to $2,962 million. Recurring revenue growth constant currency (Non-GAAP) was 8%, driven by 7pts of organic growth. By product line, Recurring revenue growth and Recurring revenue growth constant currency (Non-GAAP) were as follows: Regulatory rose 12% and 12%, respectively. Equity revenue position growth was 12% and Mutual fund/ETF position growth was 6%. Data-driven fund solutions rose 4% and 4%, respectively, driven by growth in data and analytics products, and the acquisitions of Acolin and iJoin. Issuer rose 8% and 8%, respectively, driven by growth in shareholder engagement solutions and disclosure solutions. Customer communications rose 5% and 5%, respectively, driven by growth in digital and print revenues, as well as the acquisition of Signal. Event-driven revenues increased $29 million, or 9%, to $348 million, driven by higher equity and other communications. Distribution revenues increased $189 million, or 9%, to $2,251 million, primarily driven by postage rate increases of approximately $123 million and higher volumes. Earnings before income taxes increased by $49 million, or 5%, to $1,104 million. The earnings benefit from higher Recurring revenue and Event-driven revenue was partially offset by higher Operating expenses. Operating expenses rose 10%, or $398 million, to $4,457 million, driven by distribution expenses, other volume-related expenses and the impact of acquisitions. Pre-tax margins decreased to 19.8% from 20.6%. GTO

Recurring revenues were $1,916 million, an increase of $140 million, or 8%. Recurring revenue growth constant currency (Non-GAAP) was 7%, driven by 4pts of organic growth and 2pts from the acquisitions of Kyndryl's Securities Industry Services business ("SIS") and CQG. By product line, Recurring revenue growth and the corresponding Recurring revenue growth constant currency (Non-GAAP) were as follows: Capital Markets rose 6% and 5%, respectively, primarily driven by 4pts of revenue from new sales and 1pt from the acquisition of CQG. Wealth and Investment Management rose 11% and 10%, respectively, driven by 5pts of organic growth and 5pts from the acquisition of SIS. Earnings before income taxes were $298 million, an increase of $96 million, or 48%, as higher revenues more than offset higher expenses, including the impact of the SIS and CQG acquisitions. Pre-tax margins increased to 15.5% from 11.3%. Corporate and Other

Earnings before income taxes were $44 million compared to a Loss of $197 million in the prior year period. The increased Earnings before income taxes was primarily due to the non-cash Gains on Digital Assets of $227 million and a $23 million decline in Interest expense, net which more than offset higher technology spending, including the impact of investments. Dividend Declaration and Increase

On August 3, 2026, Broadridge's Board of Directors (the "Board") declared a quarterly dividend of $1.09 per share payable on October 5, 2026 to stockholders of record on September 3, 2026. This declaration reflects the Board's approval of a 12% increase in the annual dividend from $3.90 to $4.36 per share, subject to the discretion of the Board to declare quarterly dividends.

Share Repurchase Plan Authorization

On August 3, 2026, the Board authorized a new share repurchase program under which Broadridge may repurchase up to $1.5 billion of its outstanding common stock. This authorization replaces the 3.5 million shares remaining under the existing Board repurchase authorization. The share repurchase program has no expiration date and may be suspended, modified, or discontinued at any time at the discretion of the Board. Repurchases under the program may be made from time to time in open market transactions, privately negotiated transactions, transactions pursuant to Rule 10b5-1 trading arrangements, or other transactions permitted by applicable securities laws and regulations. The timing, number, and value of shares repurchased will depend on market conditions, the market price of Broadridge's common stock, available liquidity, capital allocation priorities, applicable legal requirements, and other factors considered relevant by management and the Board.

Earnings Conference Call

An analyst conference call will be held today, August 4, 2026 at 8:30 a.m. ET. A live webcast of the call will be available to the public on a listen-only basis. To listen to the live event and access the slide presentation, visit Broadridge's Investor Relations website at www.broadridge-ir.com prior to the start of the webcast. To listen to the call, investors may also dial 1-877-328-2502 within the United States and international callers may dial 1-412-317-5419. A replay of the webcast will be available and can be accessed in the same manner as the live webcast at the Broadridge Investor Relations site. Through August 11, 2026, the recording will also be available by dialing 1-855-669-9658 within the United States or 1-412-317-0088 for international callers, using passcode 1307113 for either dial-in number.

Explanation and Reconciliation of the Company's Use of Non-GAAP Financial Measures

The Company's results in this press release are presented in accordance with U.S. GAAP except where otherwise noted. In certain circumstances, results have been presented that are not generally accepted accounting principles measures ("Non-GAAP"). These Non-GAAP measures are Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share, Free cash flow, and Recurring revenue growth constant currency. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results.

The Company believes our Non-GAAP financial measures help investors understand how management plans, measures and evaluates the Company's business performance. Management believes that Non-GAAP measures provide consistency in its financial reporting and facilitates investors' understanding of the Company's operating results and trends by providing an additional basis for comparison. Management uses these Non-GAAP financial measures to, among other things, evaluate our ongoing operations, and for internal planning and forecasting purposes. In addition, and as a consequence of the importance of these Non-GAAP financial measures in managing our business, the Company's Compensation Committee of the Board of Directors incorporates Non-GAAP financial measures in the evaluation process for determining management compensation.

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Earnings and Adjusted Earnings Per Share

These Non-GAAP measures are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items the exclusion of which management believes provides insight regarding our ongoing operating performance. Depending on the period presented, these adjusted measures exclude the impact of certain of the following items:

Amortization of Acquired Intangibles and Purchased Intellectual Property, which represent non-cash amortization expenses associated with the Company's acquisition activities. Acquisition and Integration Costs, which represent certain transaction and integration costs associated with the Company's acquisition activities. Restructuring and Other Related Costs, which represent severance and other costs related to the closure of substantially all operations of a production facility. Gains or Losses on Digital Assets, which represent the unrealized gains or losses, as applicable, related to the mark to market of the Company's digital asset holdings and the realized and unrealized gains or losses, as applicable, associated with the Canton Digital Asset Treasury transaction. Investment Gain represents a non-operating, non-cash gain on a privately held investment. We exclude Acquisition and Integration Costs, Restructuring and Other Related Costs, Gains or Losses on Digital Assets, and Investment Gain from our Adjusted Operating income (as applicable) and other adjusted earnings measures because excluding such information provides us with an understanding of the results from the primary operations of our business and enhances comparability across fiscal reporting periods, as these items are not reflective of our underlying operations or performance.

We also exclude the impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, as these non-cash amounts are significantly impacted by the timing and size of individual acquisitions and do not factor into the Company's capital allocation decisions, management compensation metrics or multi-year objectives. Furthermore, management believes that this adjustment enables better comparison of our results as Amortization of Acquired Intangibles and Purchased Intellectual Property will not recur in future periods once such intangible assets have been fully amortized. Although we exclude Amortization of Acquired Intangibles and Purchased Intellectual Property from our adjusted earnings measures, our management believes that it is important for investors to understand that these intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets.

Free cash flow and Free cash flow conversion

In addition to the Non-GAAP financial measures discussed above, we provide Free cash flow information because we consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated that could be used for dividends, share repurchases, strategic acquisitions, other investments, as well as debt servicing. Free cash flow is a Non-GAAP financial measure and is defined by the Company as Net cash flows provided by operating activities less Capital expenditures as well as Software purchases and capitalized internal use software. Free cash flow conversion is calculated as Free cash flow divided by Adjusted Net earnings for the given period.

Recurring revenue growth constant currency

As a multi-national company, we are subject to variability of our reported U.S. dollar results due to changes in foreign currency exchange rates. The exclusion of the impact of foreign currency exchange fluctuations from our Recurring revenue growth, or what we refer to as amounts expressed "on a constant currency basis," is a Non-GAAP measure. We believe that excluding the impact of foreign currency exchange fluctuations from our Recurring revenue growth provides additional information that enables enhanced comparison to prior periods.

Changes in Recurring revenue growth expressed on a constant currency basis are presented excluding the impact of foreign currency exchange fluctuations. To present this information, current period results for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the corresponding period of the comparative year, rather than at the actual average exchange rates in effect during the current fiscal year.

Forward-Looking Statements

This press release and other written or oral statements made from time to time by representatives of Broadridge may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, and which may be identified by the use of words such as "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be," "on track," and other words of similar meaning, are forward-looking statements. In particular, information appearing in the "Fiscal Year 2027 Financial Guidance" section and statements about our three-year objectives are forward-looking statements.

These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors described and discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended June 30, 2026 (the "2026 Annual Report"), as they may be updated in any future reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by reference to the factors discussed in the 2026 Annual Report.

These risks include:

changes in laws and regulations affecting Broadridge's clients or the services provided by Broadridge; Broadridge's reliance on a relatively small number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge's services with favorable pricing terms; a material security breach or cybersecurity attack affecting the information of Broadridge's clients; declines in participation and activity in the securities markets; the failure of Broadridge's key service providers to provide the anticipated levels of service; a disaster or other significant slowdown or failure of Broadridge's systems or error in the performance of Broadridge's services; overall market, economic and geopolitical conditions and their impact on the securities markets; the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients; Broadridge's failure to keep pace with changes in technology and demands of its clients; competitive conditions; Broadridge's ability to attract and retain key personnel; and the impact of new acquisitions and divestitures. There may be other factors that may cause our actual results to differ materially from the forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition.

Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.

About Broadridge

Broadridge Financial Solutions (NYSE: BR) is a global technology leader with trusted expertise and transformative technology, helping clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences.

Our technology and operations platforms process and generate over 8 billion communications annually and underpin the daily average trading of over $18 trillion in tokenized and traditional securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing approximately 16,000 associates in 28 countries.

For more information about us, please visit www.broadridge.com.

Contact Information

Investors
[email protected]

Media
[email protected]

Condensed Consolidated Statements of Earnings
(Unaudited)

In millions, except per share amounts

Three Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

2026

2025

Revenues

$     2,219.9

$     2,065.4

$     7,476.8

$     6,889.1

Operating expenses:

      Cost of revenues

1,367.0

1,295.6

5,100.7

4,752.3

      Selling, general and administrative expenses

306.6

271.2

1,075.5

948.2

      Total operating expenses

1,673.6

1,566.8

6,176.2

5,700.6

Operating income

546.2

498.6

1,300.6

1,188.6

Interest expense, net

(26.9)

(26.6)

(99.9)

(122.7)

Other non-operating income (expenses), net

2.5

(0.5)

245.2

(7.1)

Earnings before income taxes

521.9

471.5

1,445.8

1,058.7

Provision for income taxes

123.9

97.3

321.6

219.2

Net earnings

$       398.0

$       374.2

$     1,124.3

$       839.5

Basic earnings per share

$         3.46

$         3.19

$         9.67

$         7.17

Diluted earnings per share

$         3.44

$         3.16

$         9.60

$         7.10

Weighted-average shares outstanding:

      Basic

115.0

117.4

116.3

117.1

      Diluted

115.6

118.3

117.1

118.3

Amounts may not sum due to rounding.

Condensed Consolidated Balance Sheets

(Unaudited)

In millions, except per share amounts

June 30,
2026

June 30,
2025

Assets

Current assets:

Cash and cash equivalents

$          402.9

$         561.5

Accounts receivable, net of allowance for doubtful accounts of

$13.2 and $12.5, respectively

1,129.4

1,077.1

Other current assets

215.8

178.5

Total current assets

1,748.1

1,817.1

Property, plant and equipment, net

174.3

170.1

Goodwill

3,787.8

3,609.6

Intangible assets, net

1,199.9

1,277.4

Deferred client conversion and start-up costs

819.3

842.9

Other non-current assets

1,215.9

827.9

Total assets

$        8,945.3

$      8,545.0

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of long-term debt

$              —

$         499.3

Payables and accrued expenses

1,138.2

1,112.8

Contract liabilities

276.6

249.1

Total current liabilities

1,414.8

1,861.2

Long-term debt

3,254.6

2,753.0

Deferred taxes

387.0

261.0

Contract liabilities

312.8

429.2

Other non-current liabilities

735.5

585.5

Total liabilities

6,104.7

5,889.9

Stockholders' equity:

Preferred stock: Authorized, 25.0 shares; issued and outstanding, none

—

—

Common stock, $0.01 par value: Authorized, 650.0 shares; issued, 154.5

and 154.5 shares, respectively; outstanding, 114.0 and 117.1

shares, respectively

1.6

1.6

Additional paid-in capital

1,771.2

1,663.0

Retained earnings

4,553.6

3,862.5

Treasury stock, at cost: 40.4 and 37.3 shares, respectively

(3,201.7)

(2,599.0)

Accumulated other comprehensive income (loss)

(284.1)

(272.9)

Total stockholders' equity

2,840.5

2,655.1

Total liabilities and stockholders' equity

$        8,945.3

$      8,545.0

Amounts may not sum due to rounding.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

In millions

Twelve Months Ended

June 30,

2026

2025

Cash Flows From Operating Activities

Net earnings

$    1,124.3

$      839.5

Adjustments to reconcile net earnings to net cash flows from operating activities:

Depreciation and amortization

137.7

130.7

Amortization of acquired intangibles and purchased intellectual property

203.6

196.6

Amortization of other assets

167.1

170.8

Write-down of long-lived assets and related charges

5.3

14.5

Stock-based compensation expense

93.9

73.4

Deferred income taxes

105.8

(5.2)

             Digital assets change in fair market value

(231.4)

—

Other

(41.8)

(24.4)

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

               Accounts receivable, net

(19.6)

31.8

               Other current assets

(31.5)

(5.4)

               Payables and accrued expenses

(86.5)

(146.5)

               Contract liabilities

68.8

56.5

               Other non-current assets

(155.7)

(148.2)

               Other non-current liabilities

5.9

(12.8)

Net cash flows from operating activities

1,345.6

1,171.3

Cash Flows From Investing Activities

Capital expenditures

(67.2)

(43.8)

Software purchases and capitalized internal use software

(45.4)

(71.1)

Acquisitions, net of cash acquired

(282.7)

(193.5)

Other investing activities

(56.7)

(7.8)

Net cash flows from investing activities

(452.0)

(316.2)

Cash Flows From Financing Activities

Debt proceeds

2,017.0

1,238.1

Debt repayments

(2,015.6)

(1,342.5)

Dividends paid

(443.5)

(402.3)

Purchases of Treasury stock

(603.7)

(134.9)

Proceeds from exercise of stock options

22.3

62.3

Other financing activities

(25.1)

(21.6)

Net cash flows from financing activities

(1,048.5)

(600.8)

Effect of exchange rate changes on Cash and cash equivalents

(3.7)

2.8

Net change in Cash and cash equivalents

(158.7)

257.1

Cash and cash equivalents, beginning of period

561.5

304.4

Cash and cash equivalents, end of period

$      402.9

$      561.5

Amounts may not sum due to rounding.

Segment Results

(Unaudited)

In millions

Three Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

2026

2025

Revenues

Investor Communication Solutions

$    1,732.3

$    1,600.7

$    5,560.8

$    5,113.0

Global Technology and Operations

487.5

464.7

1,916.0

1,776.1

Total

$    2,219.9

$    2,065.4

$    7,476.8

$    6,889.1

Earnings before Income Taxes

Investor Communication Solutions

$     530.8

$     490.5

$   1,103.5

$   1,054.0

Global Technology and Operations

67.5

33.9

297.8

201.4

Other

(76.5)

(52.9)

44.5

(196.7)

Total

$     521.9

$     471.5

$   1,445.8

$   1,058.7

Pre-tax margins:

Investor Communication Solutions

30.6 %

30.6 %

19.8 %

20.6 %

Global Technology and Operations

13.8 %

7.3 %

15.5 %

11.3 %

Amortization of acquired intangibles and purchased intellectual property

Investor Communication Solutions

$        11.2

$         9.8

$        42.7

$        42.9

Global Technology and Operations

37.1

40.2

160.9

153.7

       Total

$        48.3

$        50.0

$      203.6

$      196.6

Amounts may not sum due to rounding.

Supplemental Reporting Detail - Additional Product Line Reporting

(Unaudited)

In millions

Three Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

Change

2026

2025

Change

Investor Communication Solutions

Regulatory

$   589.5

$   515.2

14 %

$ 1,434.9

$ 1,280.6

12 %

Data-driven fund solutions

130.1

121.9

7 %

479.5

459.2

4 %

Issuer

157.9

145.9

8 %

294.8

273.2

8 %

Customer communications

177.2

175.9

1 %

752.8

718.8

5 %

         Total ICS Recurring revenues

1,054.8

958.8

10 %

2,962.1

2,731.8

8 %

Equity and other

40.1

38.2

5 %

143.5

115.5

24 %

Mutual funds

31.0

40.7

(24 %)

204.6

203.8

— %

         Total ICS Event-driven revenues

71.1

78.9

(10 %)

348.1

319.3

9 %

Distribution revenues

606.5

562.9

8 %

2,250.6

2,062.0

9 %

Total ICS Revenues

$ 1,732.3

$ 1,600.7

8 %

$ 5,560.8

$ 5,113.0

9 %

Global Technology and Operations

Capital markets

$   307.1

$   285.4

8 %

$ 1,184.2

$ 1,115.3

6 %

Wealth and investment management

180.5

179.3

1 %

731.8

660.8

11 %

         Total GTO Recurring revenues

487.5

464.7

5 %

1,916.0

1,776.1

8 %

         Total Revenues

$ 2,219.9

$ 2,065.4

7 %

$ 7,476.8

$ 6,889.1

9 %

Revenues by Type

Recurring revenues

$ 1,542.3

$ 1,423.6

8 %

$ 4,878.0

$ 4,507.9

8 %

Event-driven revenues

71.1

78.9

(10 %)

348.1

319.3

9 %

Distribution revenues

606.5

562.9

8 %

2,250.6

2,062.0

9 %

         Total Revenues

$ 2,219.9

$ 2,065.4

7 %

$ 7,476.8

$ 6,889.1

9 %

Amounts may not sum due to rounding.

Select Operating Metrics

(Unaudited)

In millions

Three Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

Change

2026

2025

Change

Closed sales (a)

$   158.3

$   113.5

39 %

$  305.1

$   287.9

6 %

Position Growth (b)

   Equity positions

17 %

18 %

16 %

16 %

   Equity revenue positions

14 %

14 %

12 %

12 %

   Mutual fund / ETF positions

7 %

7 %

6 %

7 %

Internal Trade Growth (c)

15 %

14 %

15 %

13 %

Amounts may not sum due to rounding.

(a) Refer to the "Results of Operations" section of Broadridge's Form 10-K for a description of Closed sales and its calculation.

(b) Position Growth is comprised of "equity position growth" and "mutual fund/ETF position growth." Equity position growth measures the estimated annual change in positions eligible for equity proxy materials. Beginning in the fourth quarter of fiscal year 2025, the Company began presenting information on "equity revenue position growth". Equity revenue position growth excludes small or fractional equity positions for which the Company does not recognize revenue ("non-revenue positions"). Prior-year period comparative information for this metric is not available. Mutual fund/ETF position growth measures the estimated change in mutual fund and exchange traded fund positions eligible for interim communications. These metrics are calculated from equity proxy and mutual fund/ETF position data reported to Broadridge for the same issuers or funds in both the current and prior year periods.

(c) Represents the estimated change in daily average trade volumes for clients whose contracts are linked to trade volumes and who were on Broadridge's trading platforms in both the current and prior year periods.

Reconciliation of Non-GAAP to GAAP Measures

(Unaudited)

In millions, except per share amounts

Three Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

2026

2025

Reconciliation of Adjusted Operating Income

Operating income (GAAP)

$    546.2

$    498.6

$  1,300.6

$  1,188.6

Adjustments:

Amortization of Acquired Intangibles and Purchased Intellectual Property

48.3

50.0

203.6

196.6

Acquisition and Integration Costs

3.3

7.0

17.5

18.3

       Restructuring and Other Related Costs (a)

—

2.0

13.2

7.4

Adjusted Operating income (Non-GAAP)

$    597.9

$    557.6

$  1,534.8

$  1,410.9

Operating income margin (GAAP)

24.6 %

24.1 %

17.4 %

17.3 %

Adjusted Operating income margin (Non-GAAP)

26.9 %

27.0 %

20.5 %

20.5 %

Reconciliation of Adjusted Net earnings

Net earnings (GAAP)

$     398.0

$     374.2

$  1,124.3

$     839.5

Adjustments:

Amortization of Acquired Intangibles and Purchased Intellectual Property

48.3

50.0

203.6

196.6

Acquisition and Integration Costs

3.3

7.0

17.5

18.3

Restructuring and Other Related Costs (a)

—

2.0

13.2

7.4

Gains or Losses on Digital Assets

11.3

—

(227.0)

—

Investment Gain

(7.3)

(7.3)

     Subtotal of adjustments

55.6

59.0

(0.1)

222.3

Tax impact of adjustments (b)

(12.0)

(13.2)

—

(50.4)

Adjusted Net earnings (Non-GAAP)

$     441.6

$     420.0

$  1,124.2

$  1,011.5

Reconciliation of Adjusted EPS

Diluted earnings per share (GAAP)

$      3.44

$      3.16

$      9.60

$      7.10

Adjustments:

Amortization of Acquired Intangibles and Purchased Intellectual Property

0.42

0.42

1.74

1.66

Acquisition and Integration Costs

0.03

0.06

0.15

0.15

Restructuring and Other Related Costs (a)

—

0.02

0.11

0.06

Gains or Losses on Digital Assets

0.10

—

(1.94)

—

Investment Gain

(0.06)

—

(0.06)

—

     Subtotal of adjustments

0.48

0.50

—

1.88

Tax impact of adjustments (b)

(0.10)

(0.11)

—

(0.43)

Adjusted earnings per share (Non-GAAP)

$      3.82

$      3.55

$      9.60

$      8.55

Twelve Months Ended

June 30,

2026

2025

Reconciliation of Free cash flow

Net cash flows from operating activities (GAAP)

$   1,345.6

$   1,171.3

Capital expenditures and Software purchases and capitalized internal use software

(112.6)

(114.9)

Free cash flow (Non-GAAP)

$   1,233.0

$   1,056.4

Adjusted Net earnings (Non-GAAP)

$   1,124.2

$   1,011.5

Free cash flow conversion (Non-GAAP)

110 %

104 %

(a) Restructuring and Other Related Costs consist of severance and other costs related to the closure of substantially all operations of a production facility. Costs incurred are not reflected in segment profit and are recorded within Corporate and Other. Actions and associated costs related to the closure were completed in the third quarter of fiscal year 2026.

(b) Calculated using the GAAP effective tax rate, adjusted to exclude $0.0 million and $2.5 million of excess tax benefits associated with stock-based compensation for the three months and fiscal year ended June 30, 2026, respectively and $9.0 million and $20.5 million of excess tax benefits associated with stock-based compensation for the three months and fiscal year ended June 30, 2025, respectively. For purposes of calculating the Adjusted earnings per share, the same adjustments were made on a per share basis.

Reconciliation of Recurring Revenue Growth Constant Currency

Three Months Ended June 30, 2026

Investor Communication Solutions

Regulatory

Data-

Driven

Fund

Solutions

Issuer

Customer

Comms.

Total

Recurring revenue growth (GAAP)

14 %

7 %

8 %

1 %

10 %

Impact of foreign currency exchange

0 %

0 %

0 %

0 %

0 %

Recurring revenue growth constant currency (Non-GAAP)

14 %

7 %

8 %

1 %

10 %

Three Months Ended June 30, 2026

Global Technology and Operations

Capital Markets

Wealth and

Investment

Management

Total

Recurring revenue growth (GAAP)

8 %

1 %

5 %

Impact of foreign currency exchange

(1 %)

0 %

0 %

Recurring revenue growth constant currency (Non-GAAP)

7 %

1 %

5 %

Three Months Ended

June 30, 2026

Consolidated

Total

Recurring revenue growth (GAAP)

8 %

Impact of foreign currency exchange

0 %

Recurring revenue growth constant currency (Non-GAAP)

8 %

Fiscal Year Ended June 30, 2026

Investor Communication Solutions

Regulatory

Data-

Driven

Fund

Solutions

Issuer

Customer

Comms.

Total

Recurring revenue growth (GAAP)

12 %

4 %

8 %

5 %

8 %

Impact of foreign currency exchange

0 %

(1 %)

0 %

0 %

0 %

Recurring revenue growth constant currency (Non-GAAP)

12 %

4 %

8 %

5 %

8 %

Fiscal Year Ended June 30, 2026

Global Technology and Operations

Capital Markets

Wealth and

Investment

Management

Total

Recurring revenue growth (GAAP)

6 %

11 %

8 %

Impact of foreign currency exchange

(1 %)

(1 %)

(1 %)

Recurring revenue growth constant currency (Non-GAAP)

5 %

10 %

7 %

Fiscal Year Ended

June 30, 2026

Consolidated

Total

Recurring revenue growth (GAAP)

8 %

Impact of foreign currency exchange

(1 %)

Recurring revenue growth constant currency (Non-GAAP)

8 %

Amounts may not sum due to rounding.

Fiscal Year 2027 Guidance

Reconciliation of Non-GAAP to GAAP Measures

Adjusted Earnings Per Share Growth, Adjusted Operating Income Margin, and Free Cash Flow Conversion

FY27 Recurring revenue growth

Impact of foreign currency exchange (a)

(0%) - 0%

Recurring revenue growth constant currency (Non-GAAP)

6 - 8%

FY27 Adjusted Operating income margin (b)(e)

Operating income margin % (GAAP)

~19%

Adjusted Operating income margin % (Non-GAAP)

~21%

FY27 Adjusted earnings per share growth rate (c)(e)

Diluted earnings per share (GAAP)

(4%) - 0%

Adjusted earnings per share (Non-GAAP)

8 - 12%

FY27 Free cash flow conversion (d)

Cash flow from operating activities relative to net earnings (GAAP)

100%+

Free cash flow conversion rate (Non-GAAP)

100%+

(a) Based on forward rates as of July 2026.

(b) Adjusted Operating income margin guidance (Non-GAAP) is adjusted to exclude the approximately $145 million impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, Acquisition and Integration Costs, Restructuring and Other Related Costs.

(c) Adjusted earnings per share growth guidance (Non-GAAP) is adjusted to exclude the approximately $0.99 per share impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, Acquisition and Integration Costs, Restructuring and Other Related Costs, and is calculated using diluted shares outstanding.

(d) Free Cash Flow conversion guidance (Non-GAAP) is adjusted to exclude approximately $118 million of Capital expenditures as well as Software purchases and capitalized internal use software.

(e) Excludes Gains and Losses on Digital Assets as they are not capable of being forecasted.

SOURCE Broadridge Financial Solutions, Inc.

Original source text

, /PRNewswire/ -- United Parks & Resorts Inc. (NYSE: PRKS), a leading theme parks and entertainment company, today reported its financial results for the second quarter and first six months of fiscal year 2026.

Second Quarter 2026 Highlights

Attendance was 6.1 million guests, a decrease of approximately 0.2 million guests or 2.9% from the second quarter of 2025. Total revenue was $483.3 million, a decrease of $6.9 million or 1.4% from the second quarter of 2025. Net income was $63.3 million, a decrease of $16.8 million or 21.0% from the second quarter of 2025. Adjusted EBITDA[1] was $195.5 million, a decrease of $10.8 million or 5.2% from the second quarter of 2025. Total revenue per capita[2] increased 1.5% to $79.82 compared to the second quarter of 2025. Admission per capita[2] decreased 1.8% to $40.31 while in-park per capita spending[2] increased 5.1% to a record $39.51 compared to the second quarter of 2025. First Six Months 2026 Highlights

Attendance was 9.3 million guests, a decrease of approximately 0.3 million guests or 3.6% from the first six months of 2025. Total revenue was $761.6 million, a decrease of $15.5 million or 2.0% from the first six months of 2025. Net income was $29.2 million, a decrease of $34.8 million or 54.4% from the first six months of 2025. Adjusted EBITDA[1] was $253.4 million, a decrease of $20.3 million or 7.4% from the first six months of 2025. Total revenue per capita[2] increased 1.7% to $82.11 from the first six months of 2025. Admission per capita[2] decreased 1.4% to $42.21, while in-park per capita spending[2] increased 5.1% to a record $39.90 from the first six months of 2025. Other Highlights

In the second quarter, the Company repurchased approximately 3.3 million shares for an aggregate total of approximately $125 million. For the first half of the year, the Company repurchased approximately 5.9 million shares (or 12.1% of total outstanding shares)[3] for an aggregate total of approximately $217.7 million. During the second quarter of 2026, the Company came to the aid of 331 animals in need in the wild. The total number of animals the Company has helped over its history is more than 43,000. "We are pleased with the continued progress we are making across certain initiatives. Results in the second quarter were impacted, as expected, by the shift in the timing of Easter (earlier holiday meant fewer holiday days in the second quarter compared to prior year quarter) and a continued decline in international visitation. Adjusting for these impacts, attendance would have been flat for the quarter." said Marc Swanson, CEO of United Parks & Resorts Inc. "We delivered another quarter of growth in total revenue per capita, driven by continued strong in-park execution. During the quarter, we again grew in-park per capita spending to a record for the quarter."

"Looking ahead, we continue to see strength in our forward indicators for Discovery Cove and our group business with advanced bookings revenue for both up double-digits versus prior year. We continued to repurchase shares in the second quarter buying approximately 3.3 million shares for nearly $125 million. These buybacks emphasize our strong cash flow generation, our longstanding commitment to returning excess cash to our shareholders and our belief that our shares are materially undervalued. While we faced first-half headwinds across international visitation, weather impacts and holiday shifts, we are fully focused on executing against our strategic priorities and driving growth in revenue, Adjusted EBITDA, and total shareholder value," continued Swanson.

"Our exciting summer event lineup continues for the next several weeks as we close out the season with Red, White & BBQ at SeaWorld Orlando and SeaWorld San Antonio, Summer Spectacular at SeaWorld San Diego, and Bier Fest Brews & BBQ at both Busch Gardens Tampa Bay and Busch Gardens Williamsburg. In September, we will kick off our award-winning Halloween events, which will run through October, followed by our Christmas celebrations in November and December. These seasonal offerings continue to resonate with our guests, and we're excited to introduce new intellectual property elements to our Howl O'Scream event, something we have done very little of historically but believe represents a significant opportunity for the business. This year, we have partnered with Sony Pictures to introduce popular horror films "I Know What You Did Last Summer", and "Anaconda" to our Halloween lineup at our SeaWorld and Busch Gardens parks respectively. Early forward booking ticket sales for our Howl O' Scream events are already running ahead of last year across our parks. I want to thank all of our ambassadors for their hard work and dedicated efforts to produce these events and deliver memorable guest experiences," concluded Swanson.

[1] This earnings release includes Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow which are financial measures that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section and the financial statement tables for the definitions of Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow and the reconciliation of these measures for historical periods to their respective most comparable financial measures calculated in accordance with GAAP.

[2] This earnings release includes key performance metrics such as total revenue per capita, admissions per capita and in-park per capita spending. See "Statement Regarding Non-GAAP Financial Measures and Key Performance Metrics" section for definitions and further details.

[3] As of February 24, 2026.

Second Quarter 2026 Results

In the second quarter of 2026, the Company hosted approximately 6.1 million guests, generated total revenues of $483.3 million, net income of $63.3 million and Adjusted EBITDA of $195.5 million. Attendance decreased approximately 179,000 guests when compared to the second quarter of 2025. The decrease in attendance was primarily due to an unfavorable calendar shift including the timing of the Easter holiday and a decrease in international visitation compared to the same prior year quarter.

The decrease in total revenue of $6.9 million compared to the second quarter of 2025 was primarily a result of a decrease in attendance, partially offset by an increase in total revenue per capita. Admission per capita decreased primarily due to the net impact of the admissions product mix when compared to the same prior year quarter. In park per capita spending increased primarily due to higher penetration and the impact of pricing initiatives compared to the same prior year quarter. Adjusted EBITDA was negatively impacted by a decrease in total revenue and an increase in operating expenses.

For the Three Months Ended June 30,

Change

2026

2025

%

(Unaudited, in millions, except per share and per capita amounts)

Total revenues

$

483.3

$

490.2

(1.4)

%

Net income

$

63.3

$

80.1

(21.0)

%

Net earnings per share, diluted

$

1.34

$

1.45

(7.6)

%

Adjusted EBITDA

$

195.5

$

206.3

(5.2)

%

Net cash provided by operating activities

$

170.0

$

181.2

(6.2)

%

Attendance

6.06

6.23

(2.9)

%

Total revenue per capita

$

79.82

$

78.64

1.5

%

Admission per capita

$

40.31

$

41.03

(1.8)

%

In-Park per capita spending

$

39.51

$

37.61

5.1

%

First Six Months 2026 Results

In the first six months of 2026, the Company hosted approximately 9.3 million guests, generated total revenues of $761.6 million, net income of $29.2 million and Adjusted EBITDA of $253.4 million. Attendance decreased approximately 350,000 guests when compared to the first six months of 2025. The decrease in attendance was primarily due to unfavorable weather conditions versus prior year, a decline in visitation from international markets, and the Easter holiday shift compared to the first six months of 2025.

The decrease in total revenue of $15.5 million compared to the first six months of 2025 was primarily a result of a decrease in attendance, partially offset by an increase in total revenue per capita. Admission per capita decreased primarily due to the net impact of the admissions product mix when compared to the first six months of 2025. In park per capita spending increased primarily due to penetration and the impact of pricing initiatives compared to the first six months of 2025. Adjusted EBITDA was negatively impacted by a decrease in total revenue.

For the Six Months Ended June 30,

Change

2026

2025

%

(Unaudited, in millions, except per share and per capita amounts)

Total revenues

$

761.6

$

777.2

(2.0)

%

Net income

$

29.2

$

64.0

(54.4)

%

Net earnings per share, diluted

$

0.60

$

1.15

(47.8)

%

Adjusted EBITDA

$

253.4

$

273.7

(7.4)

%

Net cash provided by operating activities

$

236.8

$

206.9

14.4

%

Attendance

9.28

9.63

(3.6)

%

Total revenue per capita

$

82.11

$

80.74

1.7

%

Admission per capita

$

42.21

$

42.79

(1.4)

%

In-Park per capita spending

$

39.90

$

37.95

5.1

%

Share Repurchases

In the second quarter, the Company repurchased approximately 3.3 million shares for an aggregate total of approximately $125 million. For the first half of the year, the Company repurchased approximately 5.9 million shares (or 12.1% of total outstanding shares) for an aggregate total of approximately $217.7 million.

Rescue Efforts

In the second quarter of 2026, the Company came to the aid of 331 animals in need in the wild. The total number of animals the Company has helped over its history is more than 43,000.

The Company is one of the largest marine animal rescue organizations in the world. Working in partnership with state, local and federal agencies, the Company's rescue teams are on call 24 hours a day, seven days a week, 365 days a year. Consistent with its mission to protect animals and their ecosystems, rescue teams mobilize and often travel hundreds of miles to help ill, injured, orphaned or abandoned wild animals in need of the Company's expert care, with the goal of returning them to their natural habitat.

Conference Call

The Company will hold a conference call today, Tuesday, August 4, 2026, at 9 a.m. Eastern Time to discuss its second quarter and first six months of fiscal 2026 financial results. The conference call will be broadcast live on the Internet and the release and conference call can be accessed via the Company's website at www.UnitedParksInvestors.com. For those unable to participate in the live webcast, a replay will be available beginning at approximately 12 p.m. Eastern Time on August 4, 2026, under the "Events & Presentations" tab of www.UnitedParksInvestors.com. A replay of the call can also be accessed telephonically from 12 p.m. Eastern Time on August 4, 2026, through 11:59 p.m. Eastern Time on August 11, 2026, by dialing (800) 770-2030 from anywhere in the U.S. or Canada, or (609) 800-9909 from international locations and entering the conference code 5841517.

Statement Regarding Non-GAAP Financial Measures

This earnings release and accompanying financial statement tables include several non-GAAP financial measures, including Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow are not recognized terms under GAAP, should not be considered in isolation or as a substitute for a measure of financial performance or liquidity prepared in accordance with GAAP and are not indicative of net income or loss or net cash provided by operating activities as determined under GAAP.

Adjusted EBITDA, Covenant Adjusted EBITDA, Free Cash Flow and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate a company's financial performance or liquidity. Adjusted EBITDA, Covenant Adjusted EBITDA and Free Cash Flow as presented, may not be comparable to similarly titled measures of other companies due to varying methods of calculation.

Management believes the presentation of Adjusted EBITDA is appropriate as it eliminates the effect of certain non-cash and other items not necessarily indicative of the Company's underlying operating performance. Management uses Adjusted EBITDA in connection with certain components of its executive compensation program. In addition, investors, lenders, financial analysts and rating agencies have historically used EBITDA-related measures in the Company's industry, along with other measures, to estimate the value of a company, to make informed investment decisions and to evaluate companies in the industry.

Management believes the presentation of Covenant Adjusted EBITDA for the last twelve months is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Company's credit agreement governing its Senior Secured Credit Facilities and the indentures governing its Senior Notes and First-Priority Senior Secured Notes (collectively, the "Debt Agreements"). Covenant Adjusted EBITDA is a material component of these covenants.

Management believes that Free Cash Flow is useful to investors, equity analysts and rating agencies as a liquidity measure. The Company uses Free Cash Flow to evaluate its ability to generate cash flow from business operations. Free Cash Flow does not represent the residual cash flow available for discretionary expenditures, as it excludes certain expenditures such as mandatory debt service requirements, which are significant. Free Cash Flow is not defined by GAAP and should not be considered in isolation or as an alternative to net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP. Free Cash Flow as defined above may differ from similarly titled measures presented by other companies.

This earnings release includes several key performance metrics including total revenue per capita (defined as total revenue divided by attendance), admission per capita (defined as admissions revenue divided by attendance) and in-park per capita spending (defined as food, merchandise and other revenue divided by attendance). These performance metrics are used by management to assess the operating performance of its parks on a per attendee basis and to make strategic operating decisions. Management believes the presentation of these performance metrics is useful and relevant for investors as it provides investors the ability to review financial performance in the same manner as management and provides investors with a consistent methodology to analyze revenue between periods on a per attendee basis. In addition, investors, lenders, financial analysts and rating agencies have historically used similar per-capita related performance metrics to evaluate companies in the industry.

About United Parks & Resorts Inc.

United Parks & Resorts Inc. (NYSE: PRKS) is a global theme park and entertainment company that owns or licenses a diverse portfolio of award-winning park brands and experiences, including SeaWorld®, Busch Gardens®, Discovery Cove, Sesame Place®, Water Country USA, Adventure Island, and Aquatica®. The Company's seven world-class brands span 13 parks in seven markets across the United States and Abu Dhabi, offering experiences that matter with exhilarating thrill and family-friendly rides, coasters, and experiences, inspiring up-close and educational presentations with wildlife, and other various special events throughout the year. In addition, the Company collectively cares for one of the largest zoological collections in the world, is a global leader in animal welfare, training, and veterinary care, and is one of the leading marine animal rescue organizations in the world with a legacy of rescuing and caring for animals that spans over 60 years, including coming to the aid of over 43,000 animals in need. To learn more, visit www.UnitedParks.com.

Copies of this and other news releases as well as additional information about United Parks & Resorts Inc. can be obtained online at www.unitedparks.com. Shareholders and prospective investors can also register to automatically receive the Company's press releases, SEC filings and other notices by e-mail by registering at that website.

Forward-Looking Statements

In addition to historical information, this press release contains statements relating to future results (including certain projections and business trends) that are "forward-looking statements" within the meaning of the federal securities laws. The Company generally uses the words such as "might," "will," "may," "should," "estimates," "expects," "continues," "contemplates," "anticipates," "projects," "plans," "potential," "predicts," "intends," "believes," "forecasts," "future," "guidance," "targeted," "goal" and variations of such words or similar expressions in this press release and any attachment to identify forward-looking statements. All statements, other than statements of historical facts included in this press release, including statements concerning plans, objectives, goals, expectations, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, earnings guidance, business trends and other information are forward-looking statements. The forward-looking statements are not historical facts, and are based upon current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control. All expectations, beliefs, estimates and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond management's control, that could cause actual results to differ materially from the forward-looking statements contained in this press release, including among others: various factors beyond our control adversely affecting attendance and guest spending at our theme parks, including, but not limited to, weather, natural disasters, labor shortages, inflationary pressures, supply chain delays or shortages, foreign exchange rates, consumer confidence, the potential spread of travel-related health concerns including pandemics and epidemics, travel related concerns, adverse general economic related factors including increasing interest rates, economic uncertainty, and recent geopolitical events outside of the United States, and governmental actions; failure to retain and/or hire employees; a decline in discretionary consumer spending or consumer confidence, including any unfavorable impacts from Federal Reserve interest rate actions and inflation which may influence discretionary spending, unemployment or the overall economy; the ability of Hill Path Capital LP and its affiliates to significantly influence our decisions and their interests may conflict with ours or yours in the future; increased labor costs, including minimum wage increases, and employee health and welfare benefit costs; complex federal and state regulations governing the treatment of animals, which can change, and claims and lawsuits by activist groups before government regulators and in the courts; activist and other third-party groups and/or media can pressure governmental agencies, vendors, partners, guests and/or regulators, bring action in the courts or create negative publicity about us; incidents or adverse publicity concerning our theme parks, the theme park industry and/or zoological facilities; a significant portion of our revenues have historically been generated in the States of Florida, California and Virginia, and any risks affecting such markets, such as natural disasters, closures due to pandemics, severe weather and travel-related disruptions or incidents; technology interruptions or failures that impair access to our websites and/or information technology systems; cyber security risks to us or our third-party service providers, failure to maintain or protect the integrity of internal, employee or guest data, and/or failure to abide by the evolving cyber security regulatory environment; inability to compete effectively in the highly competitive theme park industry; interactions between animals and our employees and our guests at attractions at our theme parks; animal exposure to infectious disease; high fixed cost structure of theme park operations; seasonal fluctuations in operating results; changing consumer tastes and preferences; adverse litigation judgments or settlements; inability to grow our business or fund theme park capital expenditures; inability to realize the benefits of developments, restructurings, acquisitions or other strategic initiatives, and the impact of the costs associated with such activities; the effects of public health events on our business and the economy in general; unionization activities and/or labor disputes; inability to protect our intellectual property or the infringement on intellectual property rights of others; the loss of licenses and permits required to exhibit animals or the violation of laws and regulations; inability to maintain certain commercial licenses; restrictions in our debt agreements limiting flexibility in operating our business; inability to retain our current credit ratings; our leverage and interest rate risk; inadequate insurance coverage; inability to purchase or contract with third party manufacturers for rides and attractions, construction delays or impacts of supply chain disruptions on existing or new rides and attractions; tariffs or other trade restrictions; environmental regulations, expenditures and liabilities; suspension or termination of any of our business licenses, including by legislation at federal, state or local levels; delays, restrictions or inability to obtain or maintain permits; inability to remediate an identified material weakness; financial distress of strategic partners or other counterparties; actions of activist stockholders; the policies of the U.S. President and their administration or any changes to tax laws; changes or declines in our stock price, as well as the risk that securities analysts could downgrade our stock or our sector; risks associated with the Company's capital allocation plans and share repurchases, including the risk that the Company's share repurchase program could increase volatility and fail to enhance stockholder value, uncertainties and factors set forth in the section entitled "Risk Factors" in the Company's most recently available Annual Report on Form 10-K, as such risks, uncertainties and factors may be updated in the Company's periodic filings with the Securities and Exchange Commission ("SEC"). Although the Company believes that these statements are based upon reasonable assumptions, it cannot guarantee future results and readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this press release. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent of these factors' likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) the Company's strategy, which is based in part on this analysis, will be successful. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect new information or events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company's filings with the SEC (which are available from the SEC's EDGAR database at www.sec.gov and via the Company's website at www.unitedparksinvestors.com).

CONTACT:

Investor Relations:
Matthew Stroud
Investor Relations
888-410-1812
[email protected]

Media:
AnneMarie Iturrizaga
United Parks & Resorts Inc.
[email protected]

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

For the Three Months Ended

June 30,

Change

For the Six Months Ended

June 30,

Change

2026

2025

#

%

2026

2025

$

%

Net revenues:

Admissions

$

244,081

$

255,740

$

(11,659)

(4.6)

%

$

391,584

$

411,855

$

(20,271)

(4.9)

%

Food, merchandise and other

239,239

234,472

4,767

2.0

%

370,030

365,306

4,724

1.3

%

Total revenues

483,320

490,212

(6,892)

(1.4)

%

761,614

777,161

(15,547)

(2.0)

%

Costs and expenses:

Cost of food, merchandise and
other revenues

38,065

37,173

892

2.4

%

59,712

60,132

(420)

(0.7)

%

Operating expenses (exclusive
of depreciation and amortization
shown separately below)

215,723

204,789

10,934

5.3

%

386,965

366,059

20,906

5.7

%

Selling, general and
administrative expenses

66,591

64,402

2,189

3.4

%

114,659

108,539

6,120

5.6

%

Severance and other separation
costs(a)

45

408

(363)

(89.0)

%

808

408

400

98.0

%

Depreciation and amortization

45,786

42,974

2,812

6.5

%

90,853

84,669

6,184

7.3

%

Total costs and expenses

366,210

349,746

16,464

4.7

%

652,997

619,807

33,190

5.4

%

Operating income

117,110

140,466

(23,356)

(16.6)

%

108,617

157,354

(48,737)

(31.0)

%

Other expenses (income), net

17

216

(199)

(92.1)

%

(217)

193

(410)

NM

Interest expense

32,394

33,951

(1,557)

(4.6)

%

64,129

68,058

(3,929)

(5.8)

%

Income before income taxes

84,699

106,299

(21,600)

(20.3)

%

44,705

89,103

(44,398)

(49.8)

%

Provision for income taxes

21,430

26,191

(4,761)

(18.2)

%

15,504

25,128

(9,624)

(38.3)

%

Net income

$

63,269

$

80,108

$

(16,839)

(21.0)

%

$

29,201

$

63,975

$

(34,774)

(54.4)

%

Earnings per share

Earnings per share, basic

$

1.36

$

1.46

$

0.61

$

1.16

Earnings per share, diluted

$

1.34

$

1.45

$

0.60

$

1.15

Weighted average common
shares outstanding:

Basic

46,674

54,991

48,040

55,005

Diluted (b)

47,168

55,411

48,525

55,436

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

For the Three Months Ended

June 30,

Change

For the Six Months

Ended June 30,

Change

Last Twelve

Months Ended

June 30,

2026

2025

#

%

2026

2025

$

%

2026

Net income

$

63,269

$

80,108

$

(16,839)

(21.0)

%

$

29,201

$

63,975

$

(34,774)

(54.4)

%

$

133,579

Provision for
income taxes

21,430

26,191

(4,761)

(18.2)

%

15,504

25,128

(9,624)

(38.3)

%

48,560

Interest expense

32,394

33,951

(1,557)

(4.6)

%

64,129

68,058

(3,929)

(5.8)

%

130,211

Depreciation and
amortization

45,786

42,974

2,812

6.5

%

90,853

84,669

6,184

7.3

%

180,658

Equity-based
compensation
expense (c)

4,927

4,043

884

21.9

%

10,345

8,376

1,969

23.5

%

19,734

Loss on
impairment or
disposal of assets
and certain non-
cash expenses(d)

7,790

12,117

(4,327)

(35.7)

%

13,454

13,208

246

1.9

%

29,253

Business
optimization,
development and
strategic initiative
costs (e)

10,111

3,045

7,066

NM

16,858

4,309

12,549

NM

27,667

Certain
investment costs
and other taxes

103

222

(119)

(53.6)

%

155

225

(70)

(31.1)

%

1,856

Other adjusting
items (f)

9,663

3,614

6,049

167.4

%

12,924

5,757

7,167

124.5

%

13,342

Adjusted
EBITDA (g)

$

195,473

$

206,265

$

(10,792)

(5.2)

%

$

253,423

$

273,705

$

(20,282)

(7.4)

%

$

584,860

Items added back
to Covenant
Adjusted EBITDA
as defined in the
Debt Agreements:

Estimated cost
savings (h)

40,000

Other adjustments
as defined in the
Debt Agreements
(i)

12,017

Covenant
Adjusted EBITDA (j)

$

636,877

For the Three Months

Ended June 30,

Change

For the Six Months

Ended June 30,

Change

2026

2025

#

%

2026

2025

#

%

Net cash provided by operating activities

$

170,004

$

181,196

$

(11,192)

(6.2)

%

$

236,802

$

206,911

$

29,891

14.4

%

Capital expenditures

68,551

53,561

14,990

28.0

%

138,183

110,464

27,719

25.1

%

Free Cash Flow (k)

$

101,453

$

127,635

$

(26,182)

(20.5)

%

$

98,619

$

96,447

$

2,172

2.3

%

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED BALANCE SHEET DATA

(In thousands)

As of June 30,

2026

As of December

31, 2025

Cash and cash equivalents

$

19,076

$

99,762

Total assets

$

2,641,480

$

2,616,274

Deferred revenue

$

211,896

$

143,325

Long-term debt, including current maturities:

Term B-3 Loans

$

1,515,307

$

1,523,019

Revolving Credit Facility

50,000

—

Senior Notes

725,000

725,000

Total long-term debt, including current maturities

$

2,290,307

$

2,248,019

Total stockholders' deficit

$

(617,021)

$

(435,806)

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED CAPITAL EXPENDITURES DATA

(In thousands)

For the Six Months Ended

June 30,

Change

2026

2025

#

%

Capital Expenditures:

Core(l)

$

127,966

$

97,997

$

29,969

30.6

%

Expansion/ROI projects(m)

10,217

12,467

(2,250)

(18.0)

%

Capital expenditures, total

$

138,183

$

110,464

$

27,719

25.1

%

UNITED PARKS & RESORTS INC. AND SUBSIDIARIES

UNAUDITED OTHER DATA

(In thousands, except per capita amounts)

For the Three Months Ended June 30,

Change

For the Six Months Ended June 30,

Change

2026

2025

#

%

2026

2025

#

%

Attendance

6,055

6,234

(179)

(2.9)

%

9,275

9,625

(350)

(3.6)

%

Total revenue per capita (n)

$

79.82

$

78.64

$

1.18

1.5

%

$

82.11

$

80.74

$

1.37

1.7

%

Admission per capita (o)

$

40.31

$

41.03

$

(0.72)

(1.8)

%

$

42.21

$

42.79

$

(0.58)

(1.4)

%

In-Park per capita spending (p)

$

39.51

$

37.61

$

1.90

5.1

%

$

39.90

$

37.95

$

1.95

5.1

%

NM-Not meaningful.

(a) Reflects restructuring and other separation costs and/or adjustments.

(b) During the three and six months ended June 30, 2026, there were approximately 780 thousand and 837 thousand anti-dilutive shares excluded from the computation of diluted earnings per share, respectively. During the three and six months ended June 30, 2025, there were approximately 686 thousand and 671 thousand anti-dilutive shares excluded from the computation of diluted earnings per share, respectively.

(c) Reflects non-cash equity compensation expenses and related payroll taxes associated with the grants of equity-based compensation.

(d) Reflects primarily non-cash self-insurance reserve adjustments of: (i) approximately $4.6 million and $8.3 million, respectively, for the three and six months ended June 30, 2026; (ii) approximately $9.6 million for the three and six months ended June 30, 2025; and (iii) approximately $16.2 million for the twelve months ended June 30, 2026. Also includes non-cash expenses related to asset write-offs and costs related to certain rides and equipment which were removed from service.

(e) For the three, six, and twelve months ended June 30, 2026, reflects business optimization, development and other strategic initiative costs primarily related to: (i) $8.8 million, $14.4 million, and $23.0 million, respectively, of other business optimization costs and strategic initiative costs and (ii) $1.3 million, $1.6 million, and $2.5 million, respectively, of third-party consulting costs. Reflects business optimization, development and other strategic initiative costs primarily related to: (i) $1.5 million and $3.0 million of third-party consulting costs for the three and six months ended June 30, 2025, respectively, and (ii) $2.2 million and $4.0 million of other business optimization costs and strategic initiative costs for the three and six months ended June 30, 2025, respectively.

(f) Reflects the impact of expenses, net of insurance recoveries and adjustments including legal settlements, incurred primarily related to certain matters, which we are permitted to exclude under the credit agreement governing our Senior Secured Credit Facilities due to the unusual nature of the items. Certain amounts relating to prior period results were reclassified to conform to current period presentation. These reclassifications have not changed the results of operations of the prior period.

(g) Adjusted EBITDA is defined as net income before income tax expense, interest expense, depreciation and amortization, as further adjusted to exclude certain non-cash, and other items as described above.

(h) The Company's Debt Agreements permit the calculation of certain covenants to be based on Covenant Adjusted EBITDA, as defined above, for the last twelve month period further adjusted for net annualized estimated savings the Company expects to realize over the following 24 month period related to certain specified actions, including restructurings and cost savings initiatives. These estimated savings are calculated net of the amount of actual benefits realized during such period. These estimated savings are a non-GAAP Adjusted EBITDA add-back item only as defined in the Debt Agreements and does not impact the Company's reported GAAP net income.

(i) The Debt Agreements permit the Company's calculation of certain covenants to be based on Covenant Adjusted EBITDA as defined above, for the last twelve-month period further adjusted for certain costs as permitted by the Debt Agreements including recruiting and retention expenses, public company compliance costs and litigation and arbitration costs, if any.

(j) Covenant Adjusted EBITDA is defined in the Debt Agreements as Adjusted EBITDA for the last twelve-month period further adjusted for net annualized estimated savings among other adjustments as described in footnote (h) and (i) above.

(k) Free Cash Flow is defined as net cash provided by operating activities less capital expenditures.

(l) Reflects capital expenditures during the respective period for park rides, attractions and maintenance activities.

(m) Reflects capital expenditures during the respective period for park expansion, new properties, revenue and/or expense return on investment ("ROI") projects.

(n) Calculated as total revenues divided by attendance.

(o) Calculated as admissions revenue divided by attendance.

(p) Calculated as food, merchandise and other revenue divided by attendance.

SOURCE United Parks and Resorts Inc.

Original source text

DALLAS--(BUSINESS WIRE)--USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for second-quarter 2026.

Financial Highlights

Total revenues of $342.1 million for second-quarter 2026, compared to $250.1 million for second-quarter 2025. Net income was $45.7 million for second-quarter 2026, compared to $28.6 million for second-quarter 2025. Net cash provided by operating activities was $145.7 million for second-quarter 2026, compared to $124.2 million for second-quarter 2025. Adjusted EBITDA was $193.2 million for second-quarter 2026, compared to $149.5 million for second-quarter 2025. Distributable Cash Flow was $125.3 million for second-quarter 2026, compared to $89.9 million for second-quarter 2025. Distributable Cash Flow Coverage Ratio was 1.65x for second-quarter 2026, compared to 1.40x for second-quarter 2025. Announced cash distribution of $0.525 per common unit for second-quarter 2026, consistent with second-quarter 2025. Operational Highlights

Average revenue per revenue-generating horsepower per month of $22.84 for second-quarter 2026, compared to $21.31 for second-quarter 2025. Average revenue-generating horsepower of 4.45 million for second-quarter 2026, compared to 3.55 million for second-quarter 2025. Average horsepower utilization of 92.0% for second-quarter 2026, compared to 94.4% for second-quarter 2025. “Second-quarter results reflect steady sequential improvement as we advance through an important integration year,” said Clint Green, President and CEO. “With our SAP platform fully operational, our combined operational organization unified and executing, and our commercial team building momentum with an integrated customer base, the foundation we are building is strong. That foundation is reflected in our multi-year commercial results – with approximately half of planned 2027 new horsepower already contracted and meaningful 2028 commitments in hand, our customers are signaling our same long-term confidence in natural gas infrastructure.”

Expansion capital expenditures were $46.8 million, maintenance capital expenditures were $16.9 million, and cash interest expense, net was $47.4 million for second-quarter 2026.

On July 16, 2026, the Partnership announced a second-quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution will be paid on August 7, 2026, to common unitholders of record as of the close of business on July 27, 2026.

Operational and Financial Data

Three Months Ended

June 30,
2026

March 31,
2026

June 30,
2025

Operational data:

Fleet horsepower (at period end) (1)

4,952,190

4,930,737

3,858,508

Revenue-generating horsepower (at period end) (2)

4,455,148

4,439,968

3,538,668

Average revenue-generating horsepower (3)

4,447,762

4,438,366

3,551,446

Revenue-generating compression units (at period end)

6,508

6,430

4,190

Horsepower utilization (at period end) (4)

92.0

%

92.0

%

94.2

%

Average horsepower utilization (for the period) (4)

92.0

%

91.9

%

94.4

%

Financial data ($ in thousands, except per horsepower data):

Total revenues

$

342,146

$

331,275

$

250,125

Average revenue per revenue-generating horsepower per month (5)

$

22.84

$

22.73

$

21.31

Net income

$

45,652

$

38,342

$

28,559

Operating income

$

100,384

$

91,411

$

76,608

Net cash provided by operating activities

$

145,684

$

86,103

$

124,244

Gross margin

$

128,285

$

126,227

$

92,785

Adjusted gross margin (6)

$

217,356

$

213,373

$

163,626

Adjusted gross margin percentage (7)

63.5

%

64.4

%

65.4

%

Adjusted EBITDA (6)

$

193,232

$

188,587

$

149,482

Adjusted EBITDA percentage (7)

56.5

%

56.9

%

59.8

%

Distributable Cash Flow (6)

$

125,345

$

130,793

$

89,926

Distributable Cash Flow Coverage Ratio (6)

1.65x

1.72x

1.40x

(1)

Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 14,985 of non-marketable horsepower for each period presented. As of June 30, 2026, we had 97,650 large horsepower on order for delivery, of which 53,650 is expected to be delivered within the next 12 months.

(2)

Revenue-generating horsepower is horsepower under contract for which the Partnership is billing a customer.

(3)

Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period.

(4)

Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is expected to be delivered, divided by (ii) total available horsepower less idle horsepower that is under repair.

Horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.0%, 90.0%, and 91.7% at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 90.0%, 90.2%, and 91.9% for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

(5)

Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period.

(6)

Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below.

(7)

Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue.

Liquidity and Long-Term Debt

As of June 30, 2026, the Partnership was in compliance with all covenants under its $1.75 billion revolving credit facility. As of June 30, 2026, the Partnership had outstanding borrowings under the revolving credit facility of $1.21 billion and, after accounting for outstanding letters of credit in the amount of $2.0 million, $536.9 million of remaining unused availability, all of which was available to be drawn, inclusive of restrictions related to compliance with applicable financial covenants. As of June 30, 2026, the outstanding aggregate principal amount of the Partnership’s 7.125% senior notes due 2029 and 6.250% senior notes due 2033 was $1.00 billion and $750.0 million, respectively.

Full-Year 2026 Outlook

USA Compression confirms its full-year 2026 guidance as follows (in thousands):

Full-Year 2026 Outlook

Low

High

Adjusted EBITDA (1)

$

770,000

$

800,000

Distributable Cash Flow (1)

$

480,000

$

510,000

Capital Expenditures:

Expansion capital expenditures (2)

$

230,000

$

250,000

Maintenance capital expenditures

$

60,000

$

70,000

Conference Call

The Partnership will host a conference call today beginning at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss second-quarter 2026 financial and operating results. The call will be broadcast live over the internet. Investors may participate by audio webcast, or if located in the U.S. or Canada, by phone. A replay will be available shortly after the call via the “Events & Presentations” page of USA Compression’s Investor Relations website.

About USA Compression Partners, LP

USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com.

Non-GAAP Financial Measures

This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio.

Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes Adjusted gross margin is useful to investors as a supplemental measure of the Partnership’s operating profitability. Management uses adjusted gross margin to assess operating performance as compared to historical results, budget and forecast amounts, expected return on capital investment, and our competitors. Adjusted gross margin primarily is impacted by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume, and per-unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units, and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted gross margin, as presented, may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its cost structure. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability.

Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year, and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense (benefit). The Partnership defines Adjusted EBITDA as EBITDA plus impairment of assets, impairment of goodwill, interest income on capital leases, unit-based compensation expense (benefit), severance charges and other employee costs, certain transaction expenses, loss (gain) on disposition of assets, loss on extinguishment of debt, loss (gain) on derivative instrument, amortization of capitalized SaaS implementation costs, and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess:

the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure, or the historical cost basis of the Partnership’s assets; the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure. Management believes Adjusted EBITDA provides useful information to investors because, when viewed in conjunction with the Partnership’s GAAP results and the accompanying reconciliations, it may provide a more complete assessment of the Partnership’s performance as compared to considering solely GAAP results. Management also believes that external users of the Partnership’s financial statements benefit from having access to the same financial measures that management uses to evaluate the results of the Partnership’s business.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of assets, impairment of goodwill, certain transaction expenses, severance charges and other employee costs, loss (gain) on disposition of assets, loss on extinguishment of debt, change in fair value of derivative instrument, proceeds from insurance recovery, amortization of capitalized SaaS implementation costs, and other, less distributions on Preferred Units and maintenance capital expenditures.

Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Distributable Cash Flow, as presented, may not be comparable to similarly titled measures of other companies.

Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors, and others to compare the cash flows that the Partnership generates (after distributions on Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions that the Partnership expects to pay its common unitholders.

Distributable Cash Flow Coverage Ratio is defined as the period’s Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it permits management, investors, and others to assess the Partnership’s ability to pay distributions to common unitholders out of the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio, as presented, may not be comparable to similarly titled measures of other companies.

This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership for its 2026 fiscal year. The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations.

See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.

Forward-Looking Statements

Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2026 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include:

changes in economic conditions of the crude oil and natural gas industries, including any impact from the ongoing military conflict involving Russia and Ukraine or the conflict in the Middle East; changes in general economic conditions, including inflation, supply chain disruptions, trade tensions or tariff impacts; changes in the long-term supply of and demand for crude oil and natural gas; our ability to realize the anticipated benefits of our acquisition of J-W Power Company and J-W Energy Company (the “J-W Power Acquisition”) and to integrate the acquired assets with our existing fleet and operations; competitive conditions in the Partnership’s industry, including competition for employees in a tight labor market; changes in the availability and cost of capital, including changes to interest rates; renegotiation of material terms of customer contracts; actions taken by the Partnership’s customers, competitors, and third-party operators; operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control; the deterioration of the financial condition of the Partnership’s customers, which may result in the initiation of bankruptcy proceedings with respect to certain customers; the restrictions on the Partnership’s business that are imposed under the Partnership’s long-term debt agreements; information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems; our ability to realize the anticipated benefits of the shared services integration with Energy Transfer; the effects of existing and future laws and governmental regulations; the effects of future litigation; factors described in Part I, Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2026, as updated by Exhibit 99.1 to the Partnership’s Current Report on Form 8-K12B filed on July 6, 2026, as well as our subsequent filings with the SEC; and other factors discussed in the Partnership’s filings with the SEC. All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

USA COMPRESSION PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per unit amounts – Unaudited)

Three Months Ended

June 30,
2026

March 31,
2026

June 30,
2025

Revenues:

Contract operations

$

304,857

$

293,509

$

227,277

Parts and service

22,136

21,871

6,507

Related party

15,153

15,895

16,341

Total revenues

342,146

331,275

250,125

Costs and expenses:

Cost of operations, exclusive of depreciation and amortization

124,790

117,902

86,499

Depreciation and amortization

89,071

87,146

70,841

Selling, general, and administrative

28,895

35,357

12,896

Loss (gain) on disposition of assets

(994

)

(545

)

39

Impairment of assets

—

4

3,242

Total costs and expenses

241,762

239,864

173,517

Operating income

100,384

91,411

76,608

Other income (expense):

Interest expense, net

(49,258

)

(48,966

)

(47,674

)

Loss on extinguishment of debt

—

(1

)

—

Other

6

20

16

Total other expense

(49,252

)

(48,947

)

(47,658

)

Net income before income tax expense

51,132

42,464

28,950

Income tax expense

5,480

4,122

391

Net income

45,652

38,342

28,559

Less: distributions on Preferred Units

—

—

(1,950

)

Net income attributable to common unitholders’ interests

$

45,652

$

38,342

$

26,609

Weighted average common units outstanding – basic

144,974

142,750

119,003

Weighted average common units outstanding – diluted

145,619

143,131

119,503

Basic and diluted net income per common unit

$

0.31

$

0.27

$

0.22

Distributions declared per common unit for respective periods

$

0.525

$

0.525

$

0.525

USA COMPRESSION PARTNERS, LP

SELECTED BALANCE SHEET DATA

(In thousands, except unit amounts – Unaudited)

June 30,
2026

Selected Balance Sheet Data:

Total assets

$

3,685,539

Long-term debt, net

$

2,942,101

Total partners’ capital

$

287,067

Common units outstanding

144,974,152

USA COMPRESSION PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands — Unaudited)

Three Months Ended

June 30,
2026

March 31,
2026

June 30,
2025

Net cash provided by operating activities

$

145,684

$

86,103

$

124,244

Net cash used in investing activities

(34,977

)

(467,892

)

(22,354

)

Net cash provided by (used in) financing activities

(115,751

)

387,747

(101,890

)

USA COMPRESSION PARTNERS, LP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED GROSS MARGIN TO GROSS MARGIN

(In thousands — Unaudited)

The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented:

Three Months Ended

June 30,
2026

March 31,
2026

June 30,
2025

Total revenues

$

342,146

$

331,275

$

250,125

Cost of operations, exclusive of depreciation and amortization

(124,790

)

(117,902

)

(86,499

)

Depreciation and amortization

(89,071

)

(87,146

)

(70,841

)

Gross margin

$

128,285

$

126,227

$

92,785

Depreciation and amortization

89,071

87,146

70,841

Adjusted gross margin

$

217,356

$

213,373

$

163,626

USA COMPRESSION PARTNERS, LP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES

(In thousands — Unaudited)

The following table reconciles Adjusted EBITDA to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

Three Months Ended

June 30,
2026

March 31,
2026

June 30,
2025

Net income

$

45,652

$

38,342

$

28,559

Interest expense, net

49,258

48,966

47,674

Depreciation and amortization

89,071

87,146

70,841

Income tax expense

5,480

4,122

391

EBITDA

$

189,461

$

178,576

$

147,465

Unit-based compensation expense (benefit) (1)

1,608

2,405

(1,736

)

Transaction expenses (2)

1,032

3,777

—

Severance charges and other employee costs (3)

1,695

4,085

472

Loss (gain) on disposition of assets

(994

)

(545

)

39

Loss on extinguishment of debt

—

1

—

Amortization of capitalized SaaS implementation costs

430

284

—

Impairment of assets (4)

—

4

3,242

Adjusted EBITDA

$

193,232

$

188,587

$

149,482

Interest expense, net

(49,258

)

(48,966

)

(47,674

)

Non-cash interest expense

1,843

1,829

2,231

Income tax expense

(5,480

)

(4,122

)

(391

)

Non-cash income tax expense (benefit)

1,939

2,711

(39

)

Transaction expenses

(1,032

)

(3,777

)

—

Severance charges and other employee costs

(1,695

)

(4,085

)

(472

)

Other

—

398

—

Changes in operating assets and liabilities

6,135

(46,472

)

21,107

Net cash provided by operating activities

$

145,684

$

86,103

$

124,244

USA COMPRESSION PARTNERS, LP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES

(Dollars in thousands — Unaudited)

The following table reconciles Distributable Cash Flow to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

Three Months Ended

June 30,
2026

March 31,
2026

June 30,
2025

Net income

$

45,652

$

38,342

$

28,559

Non-cash interest expense

1,843

1,829

2,231

Depreciation and amortization

89,071

87,146

70,841

Non-cash income tax expense (benefit)

1,939

2,711

(39

)

Unit-based compensation expense (benefit) (1)

1,608

2,405

(1,736

)

Transaction expenses (2)

1,032

3,777

—

Severance charges and other employee costs (3)

1,695

4,085

472

Loss (gain) on disposition of assets

(994

)

(545

)

39

Loss on extinguishment of debt

—

1

—

Impairment of assets (4)

—

4

3,242

Distributions on Preferred Units

—

—

(1,950

)

Amortization of capitalized SaaS implementation costs

430

284

—

Maintenance capital expenditures (5)

(16,931

)

(9,246

)

(11,733

)

Distributable Cash Flow

$

125,345

$

130,793

$

89,926

Maintenance capital expenditures

16,931

9,246

11,733

Transaction expenses

(1,032

)

(3,777

)

—

Severance charges and other employee costs

(1,695

)

(4,085

)

(472

)

Distributions on Preferred Units

—

—

1,950

Other

—

398

—

Changes in operating assets and liabilities

6,135

(46,472

)

21,107

Net cash provided by operating activities

$

145,684

$

86,103

$

124,244

Distributable Cash Flow

$

125,345

$

130,793

$

89,926

Distributions for Distributable Cash Flow Coverage Ratio (6)

$

76,095

$

76,110

$

64,409

Distributable Cash Flow Coverage Ratio

1.65x

1.72x

1.40x

(1)

For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, unit-based compensation expense included $0.1 million, $0.1 million, and $0.5 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding unit awards. For the three months ended June 30, 2025, unit-based compensation expense included $1.0 million related to the cash portion of the settlement of phantom unit awards upon vesting, a portion of which is included in the unit-based compensation expense for this period. The three months ended June 30, 2025 also reflected a $2.1 million reversal of unit-based compensation expense resulting from the forfeiture of certain awards by certain former senior management.

(2)

Represents certain expenses related to potential and completed transactions, including the J-W Power Acquisition, and other items. The Partnership believes it is useful to investors to exclude these expenses.

(3)

Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services or the J-W Power Acquisition integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the relocation of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended June 30, 2026, severance charges and other employee costs included $1.0 million and $0.1 million related to retention and relocation payments, respectively. For the three months ended March 31, 2026, severance charges and other employee costs included $0.6 million and $0.2 million related to retention and relocation payments, respectively. For the three months ended June 30, 2025, severance charges and other employee costs included $0.2 million related to relocation payments.

(4)

Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows.

(5)

Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow.

(6)

Represents distributions to the holders of the Partnership’s common units as of the record date.

Original source text

August 04, 2026 06:30 ET | Source: Apollo Global Management, Inc.

NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the second quarter ended June 30, 2026.

Marc Rowan, Chairman and Chief Executive Officer at Apollo said, “Our strong second quarter results reflect record earnings across Asset Management and Retirement Services, highlighting the quality and growing scale of our business. We are at the forefront of modernizing how private markets operate by enhancing transparency, improving liquidity, and broadening access. In a market evolving quickly with increasing demand for capital, the breadth of our origination capabilities combined with a principal mindset positions us to help shape what comes next.”

Apollo issued a full detailed presentation of its second quarter ended June 30, 2026 results, which can be viewed on Apollo’s Investor Relations website at ir.apollo.com.

Dividend

Apollo Global Management, Inc. has declared a cash dividend of $0.5625 per share of its Common Stock for the second quarter ended June 30, 2026. This dividend will be paid on August 31, 2026 to holders of record at the close of business on August 19, 2026.

The declaration and payment of dividends on the Common Stock are at the sole discretion of Apollo Global Management, Inc.’s board of directors. Apollo cannot assure its stockholders that they will receive any dividends in the future.

Conference Call

Apollo will host a public audio webcast on Tuesday, August 4, 2026 at 8:30 a.m. Eastern Time. During the webcast, members of Apollo’s senior management team will review Apollo’s financial results for the second quarter ended June 30, 2026.

The webcast may be accessed at ir.apollo.com. For those unable to listen to the live broadcast, there will be a replay of the webcast available at the same link one hour after the event.

Apollo distributes its earnings releases via its website and email distribution lists. Those interested in receiving firm updates by email can sign up for them at ir.apollo.com.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2026, Apollo had approximately $1.05 trillion of assets under management. To learn more, please visit www.apollo.com.

Forward-Looking Statements

In this press release, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo’s expectations regarding the performance of its business, its liquidity and capital resources and other non-historical statements. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this press release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, interest rate fluctuations and market conditions generally, international trade barriers, domestic or international political developments and other geopolitical events, including geopolitical tensions and hostilities, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management’s assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene’s ability to maintain or improve financial strength ratings, the impact of Athene’s reinsurers failing to meet their assumed obligations, Athene’s ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2026, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. This press release does not constitute an offer of any Apollo fund.

Investor and Media Relations Contacts

For investors please contact:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
212-822-0540
[email protected]

For media inquiries please contact:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
212-822-0491
[email protected]

Original source text

Apollo Global Management's logo at their office in Tokyo, Japan October 20, 2025. REUTERS/Miho Uranaka Purchase Licensing Rights, opens new tab

CompaniesNEW YORK, Aug 4 (Reuters) - Apollo Global Management (APO.N), opens new tab posted a rise in earnings from fees and its insurance business in the second quarter, but cashed in less on its own investments in a tougher ‌environment for asset sales, the company said on Tuesday.

The New York-based company posted adjusted net income of $2.11 per share, 10% higher than the same period last year but below estimates of $2.17 per share drawn from an LSEG poll of analysts.

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Apollo started as a private equity firm in 1990 and has since pushed hard into credit and insurance, helping swell its total assets ⁠under management to $1.05 trillion at end-June.

CEO Marc Rowan has pledged to increase transparency and liquidity for private assets as valuations have come under scrutiny, with funds struggling to sell equity stakes and investors worrying about lending standards outside traditional banks.

Fee-related earnings from managing assets and arranging debt and equity deals rose 25% to $785 million, while the spread earned on insurance assets rose 7% to $877 million.

Apollo said those metrics broke quarterly records, as did fees from a unit which offers direct loans and asset-backed finance.

Principal investing income, which reflects profits from divestments, dipped to $16 million from $75 million in the ‌previous ⁠quarter and $47 million in the same period of 2025.

Sales of assets from certain funds had been "prudently delayed", Apollo said, adding that some fees and income were lower "while market conditions are less accommodative for monetization activity".

Rising interest rates have weighed on so-called exit deals in private equity in recent years, although buyout pioneer KKR (KKR.N), opens new tab ⁠last week reported a brisk quarter for such deals.

Apollo's asset management arm brought in $38 billion in fresh capital in the second quarter.

The company said that was driven in part by multi-asset securitization strategies, which include new vehicles ⁠pulling together different types of debt. The firm is marketing those vehicles, dubbed AMAPS, as a replacement for collateralized loan obligations.

Credit products for institutional investors and its latest flagship private equity ⁠fund also attracted inflows.

Wealthy individuals who have been staging a retreat from private credit this year pitched in $3 billion during the quarter, down from $4 billion in the previous three months.

Reporting by Isla Binnie in New York and Arasu Kannagi Basil in Bengaluru; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Isla Binnie reports on how company directors and executives manage stakeholder and shareholder interests, with a focus on compensation, corporate crises, dealmaking and succession. She also covers how politics, regulation, environmental issues and the broader economy affect boardroom discussions. Isla previously covered business, politics and general news in Spain and Italy. She trained with Reuters in London and covered emerging markets debt for the International Financing Review (IFR).

Basil writes stories across the U.S. finance file including banks, asset managers, payment firms, insurers, and exchange operators. He also covers initial public offerings on U.S. exchanges and venture capital funding.

Original source text

MELVILLE, N.Y.--(BUSINESS WIRE)--Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of healthcare solutions to office-based dental and medical practitioners, today reported financial results for the second quarter ended June 27, 2026.

“We delivered strong sales performance and margin improvement in the second quarter, driven by sustained momentum across our businesses and solid operational execution by the team," said Fred Lowery, Chief Executive Officer of Henry Schein.

Share “We delivered strong sales performance and margin improvement in the second quarter, driven by sustained momentum across our businesses and solid operational execution by the team. Internal local currency sales growth accelerated compared to the first quarter, which, combined with strong gross margins and the early benefits from our value creation initiatives, drove strong earnings growth,” said Fred Lowery, Chief Executive Officer of Henry Schein. “Our first-half performance and the sustained momentum have positioned us to raise our FY2026 guidance.”

“Our value creation plans remain a top focus for our team, and we are on track to achieve our goals. As we sharpen our focus, our priorities ahead are accelerating growth, simplifying our business, driving operational rigor, and further deepening our customer relationships, all of which we believe will create sustainable shareholder value,” Mr. Lowery added.

Second Quarter 2026 Financial Results

Total net sales for the quarter were $3.5 billion, an increase of 6.7% compared to the second quarter of 2025 and reflects 4.6% internal sales growth, 0.7% sales growth from acquisitions, and a 1.4% increase resulting from foreign currency exchange. Second quarter sales growth is detailed in Exhibit A1. Global Distribution and Value-Added Services sales for the quarter increased 6.6%, and reflects 4.5% internal sales growth, 0.6% sales growth from acquisitions, and a 1.5% increase resulting from foreign currency exchange compared with the second quarter of 2025. The main components are: Global Dental Distribution merchandise sales for the quarter increased 9.7%, and by 5.9% internal sales growth, compared with the second quarter of 2025. Global Dental Distribution equipment sales for the quarter increased 3.8%, and by 2.2% internal sales growth, compared with the second quarter of 2025. Global Medical Distribution sales for the quarter increased 4.0%, and by 3.9% internal sales growth, compared with the second quarter of 2025. Global Value-Added Services sales for the quarter increased 5.1%, and by 3.7% internal sales growth, compared with the second quarter of 2025. Global Specialty Products sales for the quarter increased 8.7%, and reflects 3.2% internal sales growth, 3.4% sales growth from acquisitions, and a 2.1% increase resulting from foreign currency exchange, compared with the second quarter of 2025. Global Technology sales for the quarter increased 8.2%, and reflects 9.1% internal sales growth,1.3% sales decrease due to a business disposal, and a 0.4% increase resulting from foreign currency exchange, compared with the second quarter of 2025. GAAP net income2 for the quarter was $94 million, or $0.82 per diluted share4, and compares with second-quarter 2025 GAAP net income of $86 million, or $0.70 per diluted share. Non-GAAP net income2 for the quarter was $145 million, or $1.27 per diluted share4, and compares with second-quarter 2025 non-GAAP net income of $135 million, or $1.10 per diluted share. Adjusted EBITDA3 for the quarter was $288 million and compares with second-quarter 2025 Adjusted EBITDA of $256 million. Year-to-Date Financial Results

Total net sales for the first half of 2026 were $6.8 billion, an increase of 6.5% compared to the first half of 2025 and reflects 3.6% internal sales growth, 0.7% sales growth from acquisitions, and a 2.2% increase resulting from foreign currency exchange. Year-to-date sales growth is detailed in Exhibit A1. GAAP net income2 for the first half of 2026 was $201 million, or $1.74 per diluted share4, and compares with GAAP net income for the first half of 2025 of $196 million, or $1.58 per diluted share. Non-GAAP net income2 for the first half of 2026 was $298 million, or $2.59 per diluted share4, and compares with non-GAAP net income for the first half of 2025 of $278 million, or $2.25 per diluted share. Adjusted EBITDA3 for the first half of 2026 was $577 million, and compares with Adjusted EBITDA for the first half of 2025 of $515 million. Share Repurchases

During the second quarter of 2026, the Company repurchased approximately 2.6 million shares of common stock at an average price of $76.69 per share for a total of $200 million.

For the year-to-date, the Company repurchased approximately 4.2 million shares of common stock at an average price of $77.05 per share for a total of $325 million.

At the end of the quarter, Henry Schein had $455 million authorized and available for future stock repurchases.

2026 Financial Guidance

Henry Schein today raised its financial guidance for 2026. Guidance is for current continuing operations and does not include the impact of restructuring expenses and related costs, amortization expense of acquired intangible assets, the impairment of intangible assets, changes in contingent consideration, select implementation-related costs supporting value creation initiatives, and litigation settlements. This guidance also assumes that foreign currency exchange rates remain generally consistent with current levels.

The Company’s FY2026 guidance does not include any remeasurement gains for the remainder of 2026, or any future benefits from tariff refunds. In summary, the change in financial guidance is as follows:

Updated
Guidance

Prior
Guidance

2026 non-GAAP diluted EPS4

$5.29 to $5.39

$5.23 to $5.37

2026 total sales growth

4.5% to 5.5%

3% to 5%

2026 Adjusted EBITDA growth

Mid to high-

single-digits

Mid-single-digits

Adjustments to 2026 GAAP Net Income and Diluted EPS

The Company is providing guidance for 2026 diluted EPS and for 2026 Adjusted EBITDA on a non-GAAP basis, as noted above. The Company is not providing a reconciliation of its 2026 non-GAAP diluted EPS guidance to its projected 2026 diluted EPS prepared on a GAAP basis, or its 2026 Adjusted EBITDA guidance to net income prepared on a GAAP basis. This is because the Company is unable to provide without unreasonable effort an estimate of restructuring expenses and related or similar costs, including its ongoing value creation initiatives, and the corresponding tax effect, which will be included in the Company’s 2026 diluted EPS and net income, prepared on a GAAP basis. The inability to provide this reconciliation is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact and timing of related costs.

Management does not believe these items are representative of the Company’s underlying business performance. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Second-Quarter 2026 Conference Call Webcast

The Company will hold a conference call to discuss second-quarter 2026 financial results today, beginning at 8:00 a.m. Eastern time. Individual investors are invited to listen to the conference call through Henry Schein’s website by visiting https://investor.henryschein.com/webcasts. In addition, a replay will be available beginning shortly after the call has ended for a period of one week.

The Company will be posting slides that provide a summary of its second-quarter 2026 financial results on its website at https://investor.henryschein.com/financials/quarterly-results/

About Henry Schein, Inc.

Henry Schein, Inc. (Nasdaq: HSIC) is a products, services, and technology platforms company for healthcare customers. With more than 25,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional healthcare clinics, as well as other alternate care sites.

Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein corporate brand products in our main distribution centers.

A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 34 countries and territories. The Company's sales reached $13.2 billion in 2025, and have grown at a compound annual rate of approximately 11.0 percent since Henry Schein became a public company in 1995.

For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, Instagram.com/HenrySchein, and @HenrySchein on X.

Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information

In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

These statements include total sales growth, EPS and Adjusted EBITDA guidance and are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make”, or other comparable terms. A fuller discussion of our operations, financial condition and status of litigation matters, including factors that may affect our business and future prospects, is contained in documents we file with the United States Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K, and will be contained in subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations.

Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: our dependence on third parties for the manufacture and supply of our products and where we manufacture products, our dependence on third parties for raw materials or purchased components; risks relating to the achievement of our strategic growth objectives, including anticipated results of restructuring and value creation initiatives; risks related to the Strategic Partnership Agreement with KKR Hawaii Aggregator L.P. entered into in January 2025; transitions in senior company leadership (including, without limitation, the transition to our new Chief Executive Officer); our ability to develop or acquire and maintain and protect new products (particularly technology and specialty products) and services and utilize new technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies/benefits, as well as significant demands on our operations, information systems, legal, regulatory, compliance, financial and human resources functions in connection with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; adverse changes in supplier rebates or other purchasing incentives; risks related to the sale of corporate brand products; risks related to activist investors; security risks associated with our information systems and technology products and services, such as cyberattacks or other privacy or data security breaches (including the October 2023 incident); effects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; political, economic, and regulatory influences on the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers, and increases in fuel and energy costs; changes in laws and policies governing manufacturing, development and investment in territories and countries where we do business; general global and domestic macro-economic and political conditions, including inflation, deflation, recession, unemployment (and corresponding increase in under-insured populations), consumer confidence, sovereign debt levels, fluctuations in energy pricing and the value of the U.S. dollar as compared to foreign currencies and changes to other economic indicators; failure to comply with existing and future regulatory requirements, including relating to health care; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation, changes in tax rates and availability of certain tax deductions; risks related to product liability, intellectual property and other claims; risks associated with customs policies or legislative import restrictions; risks associated with disease outbreaks, epidemics, pandemics (such as the COVID-19 pandemic), or similar wide-spread public health concerns and other natural or man-made disasters; risks associated with our global operations; the threat or outbreak of war (including, without limitation, geopolitical wars), terrorism or public unrest (including, without limitation, the wars in Ukraine and Iran, the Israel-Gaza war and other unrest and threats in the Middle East and the possibility of a wider European or global conflict); changes to laws and policies governing foreign trade, tariffs and sanctions or greater restrictions on imports and exports, including changes to international trade agreements and the current imposition of (and the potential for additional) tariffs by the U.S. on numerous countries and retaliatory tariffs; supply chain disruption; litigation risks; new or unanticipated litigation developments and the status of litigation matters; our dependence on our senior management, employee hiring and retention, increases in labor costs or health care costs, and our relationships with customers, suppliers and manufacturers; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority.

We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements except as required by law.

Included within the press release are non-GAAP financial measures that supplement the Company’s Consolidated Statements of Income prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s actual results prepared under GAAP to exclude certain items. In the schedule attached to the press release, the non-GAAP measures have been reconciled to and should be considered together with the Consolidated Statements of Income. Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. The impact of certain items that are excluded include integration and restructuring costs, amortization of acquisition-related assets, the insurance claim recovery associated with the cybersecurity incident, changes in contingent consideration, costs associated with shareholder advisory matters and select value creation consulting costs, and litigation settlements because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate and occur on an unpredictable basis. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures.

(TABLES TO FOLLOW)

HENRY SCHEIN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except share and per share data)

(unaudited)

Three Months Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

2026

2025

2026

2025

Net sales

$

3,458

$

3,240

$

6,826

$

6,408

Cost of sales

2,357

2,224

4,655

4,392

Gross profit

1,101

1,016

2,171

2,016

Operating expenses:

Selling, general and administrative

831

778

1,640

1,516

Depreciation and amortization

70

64

137

126

Restructuring and related costs

29

23

41

48

Operating income

171

151

353

326

Other income (expense):

Interest income

8

9

15

15

Interest expense

(43)

(38)

(82)

(73)

Other, net

1

(1)

1

(2)

Income before taxes, equity in earnings of affiliates and noncontrolling interests

137

121

287

266

Income taxes

(34)

(31)

(72)

(66)

Equity in earnings (loss) of affiliates, net of tax

(1)

4

(1)

7

Net income

102

94

214

207

Less: Net income attributable to noncontrolling interests

(8)

(8)

(13)

(11)

Net income attributable to Henry Schein, Inc.

$

94

$

86

$

201

$

196

Earnings per share attributable to Henry Schein, Inc.:

Basic

$

0.83

$

0.71

$

1.76

$

1.59

Diluted

$

0.82

$

0.70

$

1.74

$

1.58

Weighted-average common shares outstanding:

Basic

113,451,329

121,927,867

114,194,349

122,852,702

Diluted

114,390,366

122,636,948

115,238,506

123,739,381

HENRY SCHEIN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

June 27,

December 27,

2026

2025

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

157

$

156

Accounts receivable, net of allowance for credit losses of $97 and $90

1,763

1,651

Inventories, net

2,059

2,002

Prepaid expenses and other

621

655

Total current assets

4,600

4,464

Property and equipment, net

618

621

Operating lease right-of-use assets

322

301

Goodwill

4,272

4,213

Other intangibles, net

965

1,018

Investments and other

604

598

Total assets

$

11,381

$

11,215

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

1,135

$

1,154

Bank credit lines

1,024

764

Current maturities of long-term debt

138

33

Operating lease liabilities

76

78

Accrued expenses:

Payroll and related

307

340

Taxes

199

179

Other

609

680

Total current liabilities

3,488

3,228

Long-term debt

2,300

2,310

Deferred income taxes

153

146

Operating lease liabilities

275

251

Other liabilities

442

486

Total liabilities

6,658

6,421

Redeemable noncontrolling interests

906

895

Commitments and contingencies

Stockholders' equity:

Preferred stock, $0.01 par value, 1,000,000 shares authorized,

none outstanding

-

-

Common stock, $0.01 par value, 480,000,000 shares authorized,

111,916,222 issued and outstanding on June 27, 2026 and

115,771,149 issued and outstanding on December 27, 2025

1

1

Additional paid-in capital

140

177

Retained earnings

3,200

3,293

Accumulated other comprehensive loss

(184)

(226)

Total Henry Schein, Inc. stockholders' equity

3,157

3,245

Noncontrolling interests

660

654

Total stockholders' equity

3,817

3,899

Total liabilities, redeemable noncontrolling interests and stockholders' equity

$

11,381

$

11,215

HENRY SCHEIN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)/(unaudited)

Three Months Ended

Six Months Ended

June 27,

June 28,

June 27,

June 28,

2026

2025

2026

2025

Cash flows from operating activities:

Net income

$

102

$

94

$

214

$

207

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation and amortization

84

76

165

149

Impairment charge on intangible assets

-

-

-

1

Non-cash restructuring charges

2

2

4

3

Stock-based compensation expense

13

11

16

16

Provision for losses on trade and other accounts receivable

2

3

8

5

Benefit from deferred income taxes

(10)

-

(8)

(7)

Equity in (earnings) losses of affiliates

1

(4)

1

(7)

Distributions from equity affiliates

1

6

4

8

Changes in unrecognized tax benefits

(3)

(3)

(4)

(1)

Other

6

(4)

(21)

(31)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(47)

(26)

(116)

(100)

Inventories

(57)

(15)

(49)

(29)

Other current assets

4

(38)

10

37

Accounts payable and accrued expenses

144

18

(79)

(94)

Net cash provided by operating activities

242

120

145

157

Cash flows from investing activities:

Purchases of property and equipment

(30)

(32)

(55)

(63)

Payments related to equity investments and business acquisitions,

net of cash acquired

(6)

(50)

(30)

(101)

Proceeds from loan to affiliate

1

2

2

2

Capitalized software costs

(16)

(14)

(30)

(26)

Other

(14)

(4)

(15)

(9)

Net cash used in investing activities

(65)

(98)

(128)

(197)

Cash flows from financing activities:

Net change in bank credit lines

(22)

33

261

248

Proceeds from issuance of long-term debt

87

94

144

244

Principal payments for long-term debt

(11)

(6)

(50)

(21)

Debt issuance costs

-

(2)

-

(2)

Proceeds from issuance of stock upon exercise of stock options

1

-

2

1

Payments for repurchases and retirement of common stock

(200)

(286)

(325)

(447)

Issuance of common stock

-

250

-

250

Payments for taxes related to shares withheld for employee taxes

(3)

(2)

(12)

(14)

Distributions to noncontrolling shareholders

(6)

(14)

(22)

(18)

Payments for contingent consideration

(4)

(7)

(4)

(19)

Acquisitions of noncontrolling interests in subsidiaries

(10)

(4)

(42)

(77)

Net cash provided by (used in) financing activities

(168)

56

(48)

145

Effect of exchange rate changes on cash and cash equivalents

10

(60)

32

(82)

Net change in cash and cash equivalents

19

18

1

23

Cash and cash equivalents, beginning of period

138

127

156

122

Cash and cash equivalents, end of period

$

157

$

145

$

157

$

145

Exhibit A - Second Quarter Sales

Henry Schein, Inc.

2026 Second Quarter

Sales Summary

(in millions)

(unaudited)

Q2 2026 over Q2 2025

Constant Currency

Growth

Q2 2026

Q2 2025

Local Internal Growth

Acquisition Growth

Total Constant Currency Growth

Foreign Exchange Impact

Total Sales Growth

U.S. Distribution and Value-Added Services

Merchandise

$

652

$

602

6.5%

1.8%

8.3%

0.0%

8.3%

Equipment

216

219

-1.1%

0.0%

-1.1%

0.0%

-1.1%

Value-Added Services

51

51

1.4%

0.0%

1.4%

0.0%

1.4%

Total Dental

919

872

4.3%

1.3%

5.6%

0.0%

5.6%

Medical

1,027

988

3.8%

0.0%

3.8%

0.0%

3.8%

Total U.S. Distribution and Value-Added Services

1,946

1,860

4.0%

0.6%

4.6%

0.0%

4.6%

International Distribution and Value-Added Services

Merchandise

685

616

5.4%

0.9%

6.3%

4.8%

11.1%

Equipment

240

220

5.4%

0.0%

5.4%

3.3%

8.7%

Value-Added Services

10

7

19.9%

5.8%

25.7%

5.6%

31.3%

Total Dental

935

843

5.5%

0.8%

6.3%

4.3%

10.6%

Medical

30

28

5.7%

0.0%

5.7%

6.0%

11.7%

Total International Distribution and Value-Added Services

965

871

5.5%

0.7%

6.2%

4.5%

10.7%

Global Distribution and Value-Added Services

Global Merchandise

1,337

1,218

5.9%

1.4%

7.3%

2.4%

9.7%

Global Equipment

456

439

2.2%

0.0%

2.2%

1.6%

3.8%

Global Value-Added Services

61

58

3.7%

0.7%

4.4%

0.7%

5.1%

Global Dental

1,854

1,715

4.9%

1.0%

5.9%

2.2%

8.1%

Global Medical

1,057

1,016

3.9%

0.0%

3.9%

0.1%

4.0%

Total Global Distribution and Value-Added Services

2,911

2,731

4.5%

0.6%

5.1%

1.5%

6.6%

Global Specialty Products

419

386

3.2%

3.4%

6.6%

2.1%

8.7%

Global Technology

181

167

9.1%

-1.3%

7.8%

0.4%

8.2%

Eliminations

(53)

(44)

n/a

n/a

n/a

n/a

n/a

Total Global

$

3,458

$

3,240

4.6%

0.7%

5.3%

1.4%

6.7%

Exhibit A - Year-to-Date Sales

Henry Schein, Inc.

2026 Second Quarter Year-to-Date

Sales Summary

(in millions)

(unaudited)

Q2 2026 Year-to-Date over Q2 2025 Year-to-Date

Constant Currency

Growth

Q2 2026

Q2 2025

Local Internal Growth

Acquisition Growth

Total Constant Currency Growth

Foreign Exchange Impact

Total Sales Growth

U.S. Distribution and Value-Added Services

Merchandise

$

1,276

$

1,193

5.3%

1.7%

7.0%

0.0%

7.0%

Equipment

410

406

1.0%

0.0%

1.0%

0.0%

1.0%

Value-Added Services

99

96

3.6%

0.0%

3.6%

0.0%

3.6%

Total Dental

1,785

1,695

4.2%

1.1%

5.3%

0.0%

5.3%

Medical

2,070

2,018

2.5%

0.0%

2.5%

0.0%

2.5%

Total U.S. Distribution and Value-Added Services

3,855

3,713

3.3%

0.5%

3.8%

0.0%

3.8%

International Distribution and Value-Added Services

Merchandise

1,353

1,210

3.6%

1.0%

4.6%

7.2%

11.8%

Equipment

463

417

4.5%

0.0%

4.5%

6.4%

10.9%

Value-Added Services

19

14

19.5%

7.5%

27.0%

8.9%

35.9%

Total Dental

1,835

1,641

4.0%

0.8%

4.8%

7.0%

11.8%

Medical

60

53

5.2%

0.0%

5.2%

8.6%

13.8%

Total International Distribution and Value-Added Services

1,895

1,694

4.0%

0.8%

4.8%

7.0%

11.8%

Global Distribution and Value-Added Services

Global Merchandise

2,629

2,403

4.5%

1.3%

5.8%

3.6%

9.4%

Global Equipment

873

823

2.8%

0.0%

2.8%

3.2%

6.0%

Global Value-Added Services

118

110

5.6%

1.0%

6.6%

1.1%

7.7%

Global Dental

3,620

3,336

4.1%

1.0%

5.1%

3.4%

8.5%

Global Medical

2,130

2,071

2.6%

0.0%

2.6%

0.2%

2.8%

Total Global Distribution and Value-Added Services

5,750

5,407

3.5%

0.6%

4.1%

2.2%

6.3%

Global Specialty Products

816

753

2.2%

2.8%

5.0%

3.4%

8.4%

Global Technology

354

329

8.0%

-1.3%

6.7%

0.9%

7.6%

Eliminations

(94)

(81)

n/a

n/a

n/a

n/a

n/a

Total Global

$

6,826

$

6,408

3.6%

0.7%

4.3%

2.2%

6.5%

Exhibit B

Henry Schein, Inc.

2026 Second Quarter and Year-to-Date

Reconciliation of reported GAAP net income and diluted EPS attributable to Henry Schein, Inc.

to non-GAAP net income and diluted EPS attributable to Henry Schein, Inc.

(in millions, except per share data)

(unaudited)

Second Quarter

Year-to-Date

%

%

2026

2025

Growth

2026

2025

Growth

Net income attributable to Henry Schein, Inc.

$

94

$

86

9.1%

$

201

$

196

2.7

%

Diluted EPS attributable to Henry Schein, Inc.

$

0.82

$

0.70

17.1%

$

1.74

$

1.58

10.1

%

Non-GAAP Adjustments, net of tax and attribution to noncontrolling interests

Restructuring and related costs (1)

$

20

$

16

$

28

$

33

Acquisition intangible amortization (2)

28

27

55

54

Cyber incident-insurance proceeds, net of third-party advisory expenses (3)

-

-

-

(15)

Change in contingent consideration (4)

(1)

-

-

(2)

Costs associated with shareholder advisory matters and select implementation related value creation consulting costs (5)

4

5

14

11

Litigation settlements (6)

-

1

-

1

Non-GAAP adjustments to net income

$

51

$

49

$

97

$

82

Non-GAAP net income attributable to Henry Schein, Inc.

$

145

$

135

7.7%

$

298

$

278

7.1

%

Non-GAAP diluted EPS attributable to Henry Schein, Inc.

$

1.27

$

1.10

15.5%

$

2.59

$

2.25

15.1

%

Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures. Net income growth rates are based on actual values and may not recalculate due to rounding. Amounts may not sum due to rounding.

(1)

Restructuring and Related Costs

The following table presents details of our restructuring and related costs:

Second Quarter

Year-to-Date

2026

2025

2026

2025

Restructuring and related costs - pre-tax, as reported

$

29

$

23

$

41

$

48

Income tax benefit

(7)

(5)

(10)

(12)

Amount attributable to noncontrolling interests

(2)

(2)

(3)

(3)

Restructuring and related costs, net

$

20

$

16

$

28

$

33

(2) Acquisition Intangible Amortization

The following table presents details of amortization of acquired intangible assets:

Second Quarter

Year-to-Date

2026

2025

2026

2025

Acquisition intangible amortization - pre-tax, as reported

$

46

$

44

$

91

$

87

Income tax benefit

(12)

(11)

(23)

(21)

Amount attributable to noncontrolling interests

(6)

(6)

(13)

(12)

Acquisition intangible amortization, net

$

28

$

27

$

55

$

54

(3)

Represents cyber insurance proceeds, net of one time professional and other fees related to remediation of our Q4 2023 cyber incident. During Q1 2025, we received insurance proceeds of $20 million ($15 million, net of taxes) under this policy representing the remaining insurance recovery of losses related to the cyber incident.

(4)

Represents a change in the fair value of contingent consideration of $2 million ($1 million, net of taxes) and $1 million ($0 million, net of taxes) recorded during Q2 2026 and YTD 2026, respectively, and $2 million ($2 million, net of taxes) recorded during YTD 2025 related to certain 2023, 2024 and 2025 acquisitions.

(5)

Represents costs associated with shareholder advisory matters and select value creation consulting costs of $6 million ($4 million, net of taxes) and $19 million ($14 million, net of taxes) recorded during Q2 2026 and YTD 2026, respectively, and $6 million ($5 million, net of taxes) and $14 million ($11 million, net of taxes) recorded during Q2 2025 and YTD 2025, respectively.

(6)

Represents settlement amounts for litigation at one of our businesses during Q2 2025 and YTD 2025.

Exhibit C

Henry Schein, Inc.

2026 Second Quarter and Year-to-Date

Reconciliation of reported GAAP net income to Adjusted EBITDA

(in millions)

(unaudited)

Second Quarter

Year-to-Date

2026

2025

2026

2025

Net income attributable to Henry Schein, Inc. (GAAP)

$

94

$

86

$

201

$

196

Net income attributable to noncontrolling interests

8

8

13

11

Net income (GAAP)

102

94

214

207

Definitional adjustments:

Interest income

(8)

(9)

(15)

(15)

Interest expense

43

38

82

73

Income taxes

34

31

72

66

Depreciation and amortization

83

76

164

149

Non-GAAP adjustments:

Restructuring and related costs

29

23

41

48

Cyber incident-insurance proceeds, net of third-party advisory expenses

-

-

-

(20)

Impairment of intangible assets

-

-

-

1

Change in contingent consideration

(2)

-

(1)

(2)

Costs associated with shareholder advisory matters and select implementation related value creation consulting costs

6

6

19

14

Litigation settlements

-

1

-

1

Other adjustments:

Equity in earnings of affiliates, net of tax

1

(4)

1

(7)

Adjusted EBITDA (non-GAAP)

$

288

$

256

$

577

$

515

Adjusted EBITDA is a non-GAAP measure that we calculate in the manner reflected on Exhibit C. We define Adjusted EBITDA as net income, excluding (i) net income attributable to noncontrolling interests, (ii) interest income and expense, (iii) income taxes, (iv) depreciation and amortization, (v) restructuring and related costs, (vi) cyber incident-insurance proceeds, net of third-party advisory expenses, (vii) impairment of intangible assets, (viii) change in contingent consideration, (ix) costs associated with shareholder advisory matters and select implementation related value creation consulting costs, (x) litigation settlements, and (xi) equity in earnings of affiliates, net of tax. Amounts may not sum due to rounding.

More News From Henry Schein, Inc.

Original source text

, /PRNewswire/ --

Executing Natural Gas and NGL value chain growth strategy; Harmon Creek III processing plant beginning operations in August; progressing expansion of Permian sour gas treating capacity Second-quarter net income attributable to MPLX of $1.1 billion and net cash provided by operating activities of $1.7 billion Adjusted EBITDA attributable to MPLX of $1.8 billion and distributable cash flow of $1.5 billion, enabling the return of $1.1 billion of capital MPLX expects distribution increases of 12.5% in 2026 and 2027 MPLX LP (NYSE: MPLX) today reported second-quarter 2026 net income attributable to MPLX of $1,077 million, compared with $1,048 million for the second quarter of 2025.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1,775 million, compared with $1,690 million for the second quarter of 2025. Crude Oil and Products Logistics segment adjusted EBITDA for the second quarter of 2026 was $1,161 million, compared with $1,138 million for the second quarter of 2025. Natural Gas and NGL Services segment adjusted EBITDA for the second quarter of 2026 was $614 million, compared with $552 million for the second quarter of 2025.

During the quarter, MPLX generated $1,702 million in net cash provided by operating activities, $1,450 million of distributable cash flow, and adjusted free cash flow of $668 million. MPLX announced a second-quarter 2026 distribution of $1.0765 per common unit, resulting in distribution coverage of 1.3x for the quarter. The leverage ratio was 3.7x at the end of the quarter.

"Our second quarter operational performance reflects the consistent progression of our strategic initiatives, as we complete and integrate growth projects across our natural gas and NGL value chains to meet growing global demand," said Maryann Mannen, MPLX chairman, president and chief executive officer. "As additional projects enter service in the second half of the year, and utilizations increase, MPLX remains positioned to deliver mid-single digit adjusted EBITDA growth."

Financial Highlights (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions, except per unit and ratio data)

2026

2025

2026

2025

Net income attributable to MPLX LP

$

1,077

$

1,048

$

1,989

$

2,174

Adjusted EBITDA attributable to MPLX LP(a)

1,775

1,690

3,504

3,447

Net cash provided by operating activities

1,702

1,736

3,049

2,982

Distributable cash flow attributable to MPLX LP(a)

1,450

1,420

2,858

2,906

Distribution per common unit(b)

$

1.0765

$

0.9565

$

2.1530

$

1.9130

Distribution coverage(c)

1.3x

1.5x

1.3x

1.5x

Consolidated total debt to LTM adjusted EBITDA(a)(d)

3.7x

3.1x

3.7x

3.1x

Cash paid for common unit repurchases

$

50

$

100

$

100

$

200

(a)

Non-GAAP measures. See reconciliation in the tables that follow.

(b)

Distributions declared by the board of directors of MPLX's general partner.

(c)

Beginning with the three months ended March 31, 2025, distribution coverage is defined as DCF attributable to MPLX LP divided by total LP distributions, as a result of the conversion of the remaining Series A preferred units to common units in February 2025.

(d)

Calculated using face value total debt and LTM adjusted EBITDA. Also referred to as leverage ratio. See reconciliation in the tables that follow.

Segment Results

Crude Oil and Products Logistics

Crude Oil and Products Logistics segment adjusted EBITDA for the second quarter of 2026 increased by $23 million compared to the same period in 2025. The increase was primarily driven by higher rates across the business units and increased butane blending, partially offset by lower crude pipeline throughputs and higher operating expenses.

Operating Statistics (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

%
Change

2026

2025

%
Change

Total MPLX

Pipeline throughput (mbpd)

5,876

6,103

(4) %

5,789

6,017

(4) %

Average pipeline tariff rates ($ per barrel)

$

1.07

$

1.06

1 %

1.06

1.06

— %

Terminal throughput (mbpd)

3,259

3,183

2 %

3,118

3,139

(1) %

Segment adjusted EBITDA (in millions)

$

1,161

$

1,138

2 %

$

2,272

$

2,235

2 %

Natural Gas and NGL Services

Natural Gas and NGL Services segment adjusted EBITDA for the second quarter of 2026 increased by $62 million compared to the same period in 2025. The increase was driven by increased volumes including growth from equity affiliates and acquisitions, partially offset by the divestiture of non-core gathering and processing assets in 2025.

Operating Statistics (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

%
Change

2026

2025

%
Change

Total MPLX

Gathering throughput (MMcf/d)

6,859

6,562

5 %

6,674

6,539

2 %

Natural gas processed (MMcf/d)

9,590

9,740

(2) %

9,498

9,760

(3) %

C2 + NGLs fractionated (mbpd)

680

634

7 %

657

647

2 %

Segment adjusted EBITDA (in millions)

$

614

$

552

11 %

$

1,232

$

1,212

2 %

Strategic Update

MPLX is increasing its 2026 growth capital spending outlook by $500 million, to $2.9 billion, primarily reflecting the accelerated execution of the Gulf Coast fractionation project to meet global demand for U.S. energy. MPLX plans to invest over 90% of organic growth capital toward opportunities to meet growing natural gas and NGL infrastructure needs. With projects concentrated in the Permian and Marcellus, two of the most prolific and competitive basins in North America, investments in these value chains reflect the partnership's confidence in the long-term fundamentals of the energy market, offer some of the most compelling investments in the midstream sector, and are expected to generate mid-teens returns.

Investment

Details

MPLX
Ownership

Expected In-
Service

Secretariat I

200 million cubic feet per day

(MMcf/d) gas processing plant

in the Delaware Basin

100 %

Placed in service

in April 2026

Harmon Creek III

300 MMcf/d gas processing plant

and 40 thousand barrel per day

(mbpd) de-ethanizer in the Marcellus

100 %

Beginning

operations in

August 2026

Bay Runner and Bay

Runner Twin Pipelines

Up to 5.3 billion cubic feet per day

(Bcf/d) of natural gas transport capacity

between Agua Dulce, Texas, and

Brownsville, Texas

30 %

Bay Runner: 3Q26

Bay Runner Twin: 2029

Titan Complex

Increasing sour gas treating capacity

from 150 MMcf/d to over 400 MMcf/d in

the Delaware Basin

100 %

4Q26

BANGL Pipeline

Expanding NGL pipeline from 250

mbpd to 300 mbpd; provides

transportation from the Permian Basin

to the Texas Gulf Coast

100 %

4Q26

Blackcomb Pipeline

2.5 Bcf/d pipeline connecting Permian

supply to Agua Dulce, Texas

34 %

4Q26;

Began

commissioning

July 2026

Traverse Pipeline

2.5 Bcf/d pipeline designed to

transport natural gas between Agua

Dulce, Texas, and Katy, Texas

34 %

2H27

Gulf Coast Fractionators

Two 150 mbpd fractionation facilities

near MPC's Galveston Bay refinery

100 %

Frac I: 2028

Frac II: 2029

Gulf Coast LPG Export

Terminal JV

400 mbpd LPG export terminal located

in the Port of Texas City, Texas

50 %

2028

Marcellus Gathering

System Expansion

Supports producer activity near

MPLX's Majorsville gas processing

complex

100 %

1H28

Eiger Express Pipeline

3.7 Bcf/d pipeline connecting Permian

supply to Katy, Texas

22 %

Mid-2028

Secretariat II

300 MMcf/d gas processing plant in

the Delaware Basin

100 %

2H28

Financial Position and Liquidity

As of June 30, 2026, MPLX had $1.0 billion in cash, $2.5 billion available on its bank revolving credit facility, and $1.5 billion available through its intercompany loan agreement with MPC. MPLX's leverage ratio was 3.7x, while the stability of cash flows supports leverage in the range of 4.0x.

The partnership repurchased $50 million of common units held by the public in the second quarter of 2026. As of June 30, 2026, MPLX had approximately $1.0 billion remaining available under its unit repurchase authorizations.

Conference Call

At 9:30 a.m. ET today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this earnings release and other investor-related materials, will also be available online prior to the conference call and webcast at www.mplx.com.

About MPLX LP

MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.mplx.com.

Investor Relations Contact: (419) 421-2071
Brian Worthington, Vice President, Investor Relations
Isaac Feeney, Director, Investor Relations
Evan Heminger, Analyst, Investor Relations

Media Contact: (419) 421-3577
Jamal Kheiry, Communications Manager

Non-GAAP references

In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (GAAP), management utilizes additional non-GAAP measures to analyze our performance. This press release and supporting schedules include the non-GAAP measures adjusted EBITDA; consolidated debt to last twelve months adjusted EBITDA, which we refer to as our leverage ratio; distributable cash flow (DCF); adjusted free cash flow (Adjusted FCF); and Adjusted FCF after distributions.

Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. We define Adjusted EBITDA as net income adjusted for: (i) provision for income taxes; (ii) net interest and other financial costs; (iii) depreciation and amortization; (iv) income/(loss) from equity method investments; (v) distributions and adjustments related to equity method investments; (vi) impairment expense; (vii) noncontrolling interests; (viii) transaction-related costs; and (ix) other adjustments, as applicable.

DCF is a financial performance and liquidity measure used by management and by the board of directors of our general partner as a key component in the determination of cash distributions paid to unitholders. We believe DCF is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the partnership is generating sufficient cash flow to support quarterly distributions. In addition, DCF is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on DCF and cash distributions paid to unitholders. We define DCF as Adjusted EBITDA adjusted for: (i) deferred revenue impacts; (ii) sales-type lease payments, net of income; (iii) adjusted net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment capital expenditures paid out; and (vi) other adjustments as deemed necessary.

Adjusted FCF and Adjusted FCF after distributions are financial liquidity measures used by management in the allocation of capital and to assess financial performance. We believe that unitholders may use this metric to analyze our ability to manage leverage and return capital. We define Adjusted FCF as net cash provided by operating activities adjusted for: (i) net cash used in investing activities; (ii) cash contributions from MPC; and (iii) cash distributions to noncontrolling interests. We define Adjusted FCF after distributions as Adjusted FCF less base distributions to common and preferred unitholders. We believe that the presentation of Adjusted EBITDA, DCF, Adjusted FCF and Adjusted FCF after distributions provides useful information to investors in assessing our financial condition and results of operations.

Leverage ratio is a liquidity measure used by management, industry analysts, investors, lenders and rating agencies to analyze our ability to incur and service debt and fund capital expenditures.

The GAAP measures most directly comparable to Adjusted EBITDA and DCF are net income and net cash provided by operating activities while the GAAP measure most directly comparable to Adjusted FCF and Adjusted FCF after distributions is net cash provided by operating activities. These non-GAAP financial measures should not be considered alternatives to GAAP net income or net cash provided by operating activities as they have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because non-GAAP financial measures may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

For a reconciliation of Adjusted EBITDA, DCF, Adjusted FCF, Adjusted FCF after distributions and our leverage ratio to their most directly comparable measures calculated and presented in accordance with GAAP, see the tables below.

Forward-Looking Statements

This press release contains forward-looking statements regarding MPLX LP (MPLX). These forward-looking statements may relate to, among other things, MPLX's expectations, estimates and projections concerning its business and operations, financial priorities, including with respect to positive free cash flow and distribution coverage, strategic plans, capital return plans, capital expenditure plans, operating cost reduction objectives, and environmental, social and governance ("ESG") plans and goals, including those related to greenhouse gas emissions, biodiversity, and inclusion and ESG reporting. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors or required to be disclosed in our filings with the Securities Exchange Commission (SEC). In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. You can identify forward-looking statements by words such as "advance," "anticipate," "believe," "commitment," "confidence," "continue," "could," "design," "drive," "endeavor," "estimate," "expect," "focus," "forecast," "goal," "guidance," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "progress," "project," "prospective," "pursue," "seek," "should," "strategy," "strive," "support," "target," "trends," "will," "would" or other similar expressions that convey the uncertainty of future events or outcomes. MPLX cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPLX, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPLX's actual results to differ materially from those implied in the forward-looking statements include but are not limited to: political or regulatory developments, changes in governmental policies relating to refined petroleum products, crude oil, natural gas, natural gas liquids ("NGLs") or renewable diesel and other renewable fuels, or taxation including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; volatility in and degradation of general economic, market, industry or business conditions, including as a result of pandemics, other infectious disease outbreaks, natural hazards, extreme weather events, regional conflicts such as hostilities in the Middle East and in Ukraine, tariffs, inflation, rising interest rates or government shutdowns; the adequacy of capital resources and liquidity, including the availability of sufficient free cash flow from operations to pay or grow distributions and to fund future unit repurchases; the ability to access debt markets on commercially reasonable terms or at all; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products or renewable diesel and other renewable fuels; increased pricing volatility or supply disruptions due to the U.S.-Iran conflict and market reactions thereto; changes to the expected construction costs and in service dates of planned and ongoing projects and investments, including pipeline projects and new processing units, and the ability to obtain regulatory and other approvals with respect thereto; the timing and ability to obtain necessary regulatory approvals and satisfy the other conditions necessary to consummate planned transactions within the expected timeframes if at all; the ability to realize expected returns or other benefits on anticipated or ongoing projects or planned transactions, including the recently completed acquisitions of Northwind Delaware Holdings LLC and BANGL, LLC; the inability or failure of our joint venture partners to fund their share of operations and development activities; the financing and distribution decisions of joint ventures we do not control; the availability of desirable strategic alternatives to optimize portfolio assets and the ability to obtain regulatory and other approvals with respect thereto; our ability to successfully implement our sustainable energy strategy and principles and to achieve our ESG plans and goals within the expected timeframes if at all; changes in government incentives for emission-reduction products and technologies; the outcome of research and development efforts to create future technologies necessary to achieve our ESG plans and goals; our ability to scale projects and technologies on a commercially competitive basis; changes in regional and global economic growth rates and consumer preferences, including consumer support for emission-reduction products and technology; industrial incidents or other unscheduled shutdowns affecting our machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers; the suspension, reduction or termination of MPC's obligations under MPLX's commercial agreements; the imposition of windfall profit taxes, maximum refining margin penalties, minimum inventory requirements or refinery maintenance and turnaround supply plans on companies operating in the energy industry in California or other jurisdictions; the establishment or increase of tariffs on goods, including crude oil and other feedstocks imported into the United States, other trade protection measures or restrictions or retaliatory actions from foreign governments; compliance costs and uncertainty associated with cap and invest programs or similar arrangements or programs in California or other jurisdictions; other risk factors inherent to MPLX's industry; the impact of adverse market conditions or other similar risks to those identified herein affecting MPC; and the factors set forth under the heading "Risk Factors" and "Disclosures Regarding Forward-Looking Statements" in MPLX's and MPC's Annual Reports on Form 10-K for the year ended Dec. 31, 2025, and in other filings with the SEC.

Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.

Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office.

Condensed Consolidated Results of Operations

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions, except per unit data)

2026

2025

2026

2025

Revenues and other income:

Operating revenue

$

1,453

$

1,338

$

2,757

$

2,758

Operating revenue - related parties

1,629

1,450

3,131

2,917

Income from equity method investments

180

170

362

356

Other income

50

45

100

96

Total revenues and other income

3,312

3,003

6,350

6,127

Costs and expenses:

Operating expenses (including purchased product costs)

1,012

821

1,930

1,688

Operating expenses - related parties

415

426

813

846

Depreciation and amortization

365

324

723

650

General and administrative expenses

108

107

222

219

Other taxes

34

32

70

65

Total costs and expenses

1,934

1,710

3,758

3,468

Income from operations

1,378

1,293

2,592

2,659

Net interest and other financial costs

289

234

580

463

Income before income taxes

1,089

1,059

2,012

2,196

Provision for income taxes

2

1

3

2

Net income

1,087

1,058

2,009

2,194

Less: Net income attributable to noncontrolling interests

10

10

20

20

Net income attributable to MPLX LP

$

1,077

$

1,048

$

1,989

$

2,174

Per Unit Data

Net income attributable to MPLX LP per limited partner unit:

Common – basic

$

1.06

$

1.03

$

1.96

$

2.13

Common – diluted

$

1.06

$

1.03

$

1.96

$

2.13

Weighted average limited partner units outstanding:

Common units – basic

1,015

1,020

1,015

1,020

Common units – diluted

1,015

1,021

1,015

1,020

Select Financial Statistics (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions, except ratio data)

2026

2025

2026

2025

Common unit distributions declared by MPLX LP

Common units (LP) – public

$

395

$

356

$

790

$

713

Common units – MPC

697

619

1,394

1,238

Total LP distribution declared

1,092

975

2,184

1,951

Other Financial Data

Adjusted EBITDA attributable to MPLX LP(a)

1,775

1,690

3,504

3,447

DCF attributable to MPLX LP(a)

$

1,450

$

1,420

$

2,858

$

2,906

Distribution coverage(b)

1.3x

1.5x

1.3x

1.5x

Cash Flow Data

Net cash flow provided by (used in):

Operating activities

$

1,702

$

1,736

$

3,049

$

2,982

Investing activities

(1,028)

(602)

(1,819)

(1,203)

Financing activities

$

(1,149)

$

(2,282)

$

(2,336)

$

(1,912)

(a)

Non-GAAP measure. See reconciliation below.

(b)

Beginning with the three months ended March 31, 2025, distribution coverage is defined as DCF attributable to MPLX LP divided by total LP distributions, as a result of the conversion of the remaining Series A preferred units to common units in February 2025.

Financial Data (unaudited)

(In millions, except ratio data)

June 30,

2026

December 31,

2025

Cash and cash equivalents

$

1,031

$

2,137

Total assets

42,969

43,005

Total debt(a)

25,640

25,653

Total equity

$

14,252

$

14,528

Consolidated debt to LTM adjusted EBITDA(b)

3.7x

3.7x

Partnership units outstanding:

MPC-held common units

647

647

Public common units

367

368

(a)

There were no borrowings on the loan agreement with MPC as of June 30, 2026 or December 31, 2025. Presented net of unamortized debt issuance costs, unamortized discount/premium and includes long-term debt due within one year.

(b)

Calculated using face value total debt and LTM adjusted EBITDA. Face value total debt was $26,005 million as of June 30, 2026, and $26,006 million as of December 31, 2025.

Operating Statistics (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

%
Change

2026

2025

%
Change

Crude Oil and Products Logistics

Pipeline throughput (mbpd)

Crude oil pipelines

3,830

4,012

(5) %

3,757

3,961

(5) %

Product pipelines

2,046

2,091

(2) %

2,032

2,056

(1) %

Total pipelines

5,876

6,103

(4) %

5,789

6,017

(4) %

Average tariff rates ($ per barrel)

Crude oil pipelines

$

1.06

$

1.06

— %

$

1.05

$

1.05

— %

Product pipelines

1.09

1.05

4 %

1.09

1.08

1 %

Total pipelines

$

1.07

$

1.06

1 %

$

1.06

$

1.06

— %

Terminal throughput (mbpd)

3,259

3,183

2 %

3,118

3,139

(1) %

Barges in operation

331

320

3 %

331

320

3 %

Towboats in operation

30

29

3 %

30

29

3 %

Natural Gas and NGL Services

Operating Statistics (unaudited) -

Consolidated(a)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

%
Change

2026

2025

%
Change

Gathering throughput (MMcf/d)

Marcellus Operations

1,680

1,488

13 %

1,629

1,494

9 %

Utica Operations

—

—

— %

—

133

(100) %

Southwest Operations

1,990

1,734

15 %

1,990

1,759

13 %

Bakken Operations

162

162

— %

154

168

(8) %

Rockies Operations

—

541

(100) %

—

545

(100) %

Total gathering throughput

3,832

3,925

(2) %

3,773

4,099

(8) %

Natural gas processed (MMcf/d)

Marcellus Operations

4,570

4,312

6 %

4,511

4,318

4 %

Utica Operations(b)

—

—

— %

—

—

— %

Southwest Operations

2,013

1,821

11 %

1,993

1,850

8 %

Southern Appalachia Operations

220

205

7 %

205

196

5 %

Bakken Operations

161

162

(1) %

153

168

(9) %

Rockies Operations

—

593

(100) %

—

597

(100) %

Total natural gas processed

6,964

7,093

(2) %

6,862

7,129

(4) %

C2 + NGLs fractionated (mbpd)

Marcellus Operations

584

545

7 %

567

556

2 %

Utica Operations(b)

—

—

— %

—

—

— %

Other

24

29

(17) %

22

29

(24) %

Total C2 + NGLs fractionated

608

574

6 %

589

585

1 %

(a)

Includes operating data for entities that have been consolidated into the MPLX financial statements.

(b)

The Utica region processing and fractionation operations only include partnership-operated equity method investments and thus do not have any operating statistics from a consolidated perspective. See table below for details on Utica.

Excluding Divested Assets(a),

Natural Gas and NGL Services

Operating Statistics (unaudited) -

Consolidated(b)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

%
Change

2026

2025

%
Change

Total gathering throughput (MMcf/d)

3,832

3,384

13 %

3,773

3,421

10 %

Total natural gas processed (MMcf/d)

6,964

6,500

7 %

6,862

6,532

5 %

Total C2 + NGLs fractionated (mbpd)

608

569

7 %

589

580

(1) %

(a)

Excludes volumes associated with divested Rockies gathering and processing operations and assets contributed to Markwest EMG Jefferson Dry Gas Gathering Company, L.L.C.

(b)

Includes operating data for entities that have been consolidated into the MPLX financial statements.

Natural Gas and NGL Services

Operating Statistics (unaudited) -

Operated(a)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

%
Change

2026

2025

%
Change

Gathering throughput (MMcf/d)

Marcellus Operations

1,680

1,488

13 %

1,629

1,494

9 %

Utica Operations

3,027

2,566

18 %

2,901

2,503

16 %

Southwest Operations

1,990

1,734

15 %

1,990

1,759

13 %

Bakken Operations

162

162

— %

154

168

(8) %

Rockies Operations

—

612

(100) %

—

615

(100) %

Total gathering throughput

6,859

6,562

5 %

6,674

6,539

2 %

Natural gas processed (MMcf/d)

Marcellus Operations

6,232

6,019

4 %

6,196

5,997

3 %

Utica Operations

964

940

3 %

951

952

— %

Southwest Operations

2,013

1,821

11 %

1,993

1,850

8 %

Southern Appalachia Operations

220

205

7 %

205

196

5 %

Bakken Operations

161

162

(1) %

153

168

(9) %

Rockies Operations

—

593

(100) %

—

597

(100) %

Total natural gas processed

9,590

9,740

(2) %

9,498

9,760

(3) %

C2 + NGLs fractionated (mbpd)

Marcellus Operations

584

545

7 %

567

556

2 %

Utica Operations

72

60

20 %

68

62

10 %

Other

24

29

(17) %

22

29

(24) %

Total C2 + NGLs fractionated

680

634

7 %

657

647

2 %

(a)

Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments.

Excluding Divested Assets(a),

Natural Gas and NGL Services

Operating Statistics (unaudited) -

Operated(b)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

%
Change

2026

2025

%
Change

Total gathering throughput (MMcf/d)

6,859

5,950

15 %

6,674

5,924

13 %

Total natural gas processed (MMcf/d)

9,590

9,147

5 %

9,498

9,163

4 %

Total C2 + NGLs fractionated (mbpd)

680

629

8 %

657

642

2 %

(a)

Excludes volumes associated with divested Rockies gathering and processing operations and assets contributed to Markwest EMG Jefferson Dry Gas Gathering Company, L.L.C.

(b)

Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments.

Reconciliation of Segment Adjusted EBITDA to Net Income

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions)

2026

2025

2026

2025

Crude Oil and Products Logistics segment adjusted EBITDA attributable to MPLX LP

$

1,161

$

1,138

$

2,272

$

2,235

Natural Gas and NGL Services segment adjusted EBITDA attributable to MPLX LP

614

552

1,232

1,212

Adjusted EBITDA attributable to MPLX LP

1,775

1,690

3,504

3,447

Depreciation and amortization

(365)

(324)

(723)

(650)

Net interest and other financial costs

(289)

(234)

(580)

(463)

Income from equity method investments

180

170

362

356

Distributions/adjustments related to equity method investments

(234)

(229)

(485)

(456)

Adjusted EBITDA attributable to noncontrolling interests

11

11

22

22

Other(a)

9

(26)

(91)

(62)

Net income

$

1,087

$

1,058

$

2,009

$

2,194

(a)

Includes unrealized derivative gain/(loss), equity-based compensation, provision for income taxes and other miscellaneous items.

Reconciliation of Segment Adjusted EBITDA to Income

from Operations (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions)

2026

2025

2026

2025

Crude Oil and Products Logistics

Segment adjusted EBITDA

$

1,161

$

1,138

2,272

2,235

Depreciation and amortization

(146)

(135)

(289)

(268)

Income from equity method investments

52

59

114

115

Distributions/adjustments related to equity method investments

(71)

(77)

(143)

(149)

Other

(18)

(17)

(39)

(34)

Natural Gas and NGL Services

Segment adjusted EBITDA

614

552

1,232

1,212

Depreciation and amortization

(219)

(189)

(434)

(382)

Income from equity method investments

128

111

248

241

Distributions/adjustments related to equity method investments

(163)

(152)

(342)

(307)

Adjusted EBITDA attributable to noncontrolling interests

11

11

22

22

Other

29

(8)

(49)

(26)

Income from operations

$

1,378

$

1,293

$

2,592

$

2,659

Reconciliation of Adjusted EBITDA Attributable to MPLX

LP and DCF Attributable to MPLX LP from Net Income

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions)

2026

2025

2026

2025

Net income

$

1,087

$

1,058

$

2,009

$

2,194

Provision for income taxes

2

1

3

2

Net interest and other financial costs

289

234

580

463

Income from operations

1,378

1,293

2,592

2,659

Depreciation and amortization

365

324

723

650

Income from equity method investments

(180)

(170)

(362)

(356)

Distributions/adjustments related to equity method investments

234

229

485

456

Other

(11)

25

88

60

Adjusted EBITDA

1,786

1,701

3,526

3,469

Adjusted EBITDA attributable to noncontrolling interests

(11)

(11)

(22)

(22)

Adjusted EBITDA attributable to MPLX LP

1,775

1,690

3,504

3,447

Deferred revenue impacts

27

(10)

26

(28)

Sales-type lease payments, net of income

8

14

21

27

Adjusted net interest and other financial costs(a)

(281)

(225)

(565)

(444)

Maintenance capital expenditures, net of reimbursements

(68)

(45)

(121)

(80)

Equity method investment maintenance capital expenditures paid out

(5)

(3)

(9)

(8)

Other

(6)

(1)

2

(8)

DCF attributable to MPLX LP

$

1,450

$

1,420

$

2,858

$

2,906

(a)

Represents Net interest and other financial costs, excluding gain/loss on extinguishment of debt and amortization of deferred financing costs.

Reconciliation of Net Income to Last Twelve Month (LTM)

adjusted EBITDA (unaudited)

Last Twelve Months

June 30,

December 31,

(In millions)

2026

2025

2025

LTM Net income

$

4,767

$

4,350

$

4,952

Provision for income taxes

9

9

8

Net interest and other financial costs

1,100

918

983

LTM income from operations

5,876

5,277

5,943

Depreciation and amortization

1,424

1,296

1,351

Income from equity method investments

(703)

(676)

(697)

Distributions/adjustments related to equity method investments

991

966

962

Gain on equity method investments

(484)

—

(484)

Gain on sale of assets

(159)

—

(159)

Transaction-related costs(a)

33

—

33

Other

140

104

112

LTM Adjusted EBITDA

7,118

6,967

7,061

Adjusted EBITDA attributable to noncontrolling interests

(44)

(44)

(44)

LTM Adjusted EBITDA attributable to MPLX LP

7,074

6,923

7,017

Consolidated total debt(b)

$

26,005

$

21,507

$

26,006

Consolidated total debt to LTM adjusted EBITDA(c)

3.7x

3.1x

3.7x

(a)

Transaction-related costs include costs associated with the acquisition of Northwind Midstream, acquisition of the remaining interest in BANGL, LLC and the divestiture of the Rockies gathering and processing operations.

(b)

Consolidated total debt excludes unamortized debt issuance costs and unamortized discount/premium. Consolidated total debt includes long-term debt due within one year and outstanding borrowings, if any, under the loan agreement with MPC.

(c)

Also referred to as our leverage ratio.

Reconciliation of Adjusted EBITDA Attributable to MPLX

LP and DCF Attributable to MPLX LP from Net Cash

Provided by Operating Activities (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions)

2026

2025

2026

2025

Net cash provided by operating activities

$

1,702

$

1,736

$

3,049

$

2,982

Changes in working capital items

(261)

(313)

(190)

(83)

All other, net

12

(6)

1

(4)

Loss on extinguishment of debt

—

3

—

3

Adjusted net interest and other financial costs(a)

281

225

565

444

Other adjustments related to equity method investments

18

22

32

61

Other

34

34

69

66

Adjusted EBITDA

1,786

1,701

3,526

3,469

Adjusted EBITDA attributable to noncontrolling interests

(11)

(11)

(22)

(22)

Adjusted EBITDA attributable to MPLX LP

1,775

1,690

3,504

3,447

Deferred revenue impacts

27

(10)

26

(28)

Sales-type lease payments, net of income

8

14

21

27

Adjusted net interest and other financial costs(a)

(281)

(225)

(565)

(444)

Maintenance capital expenditures, net of reimbursements

(68)

(45)

(121)

(80)

Equity method investment maintenance capital expenditures paid out

(5)

(3)

(9)

(8)

Other

(6)

(1)

2

(8)

DCF attributable to MPLX LP

$

1,450

$

1,420

$

2,858

$

2,906

(a)

Represents Net interest and other financial costs, excluding gain/loss on extinguishment of debt and amortization of deferred financing costs.

Reconciliation of Net Cash Provided by Operating

Activities to Adjusted Free Cash Flow and Adjusted Free

Cash Flow after Distributions (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions)

2026

2025

2026

2025

Net cash provided by operating activities(a)

$

1,702

$

1,736

$

3,049

$

2,982

Adjustments to reconcile net cash provided by operating activities to adjusted free cash flow

Net cash used in investing activities

(1,028)

(602)

(1,819)

(1,203)

Contributions from MPC

5

7

9

14

Distributions to noncontrolling interests

(11)

(11)

(22)

(22)

Adjusted free cash flow

668

1,130

1,217

1,771

Distributions paid to common and preferred unitholders

(1,092)

(976)

(2,185)

(1,954)

Adjusted free cash flow after distributions

$

(424)

$

154

$

(968)

$

(183)

(a)

The three months ended June 30, 2026 and June 30, 2025 include working capital draws of $261 million and $313 million, respectively. The six months ended June 30, 2026 and June 30, 2025 include working capital draws of $190 million and $83 million, respectively.

Capital Expenditures (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(In millions)

2026

2025

2026

2025

Capital Expenditures:

Growth capital expenditures

$

746

$

286

$

1,354

$

506

Growth capital reimbursements

(49)

(37)

(84)

(64)

Investments in unconsolidated affiliates(a)

202

203

439

322

Return of capital(b)

—

(39)

—

(39)

Capitalized interest

(25)

(7)

(44)

(12)

Total growth capital expenditures(c)

874

406

1,665

713

Maintenance capital expenditures

73

55

130

103

Maintenance capital reimbursements

(5)

(10)

(9)

(23)

Capitalized interest

(1)

(1)

(2)

(2)

Total maintenance capital expenditures

67

44

119

78

Total growth and maintenance capital expenditures

941

450

1,784

791

Investments in unconsolidated affiliates(a)

(202)

(203)

(439)

(322)

Return of capital(b)

—

39

—

39

Growth and maintenance capital reimbursements(d)

54

47

93

87

(Increase)/Decrease in capital accruals

6

(40)

(84)

(41)

Capitalized interest

26

8

46

14

Additions to property, plant and equipment

$

825

$

301

$

1,400

$

568

(a)

Investments in unconsolidated affiliates and additions to property, plant and equipment are shown as separate lines within investing activities in the Consolidated Statements of Cash Flows.

(b)

Return of capital for the six months ended June 30, 2025 excludes a $21 million special distribution received in exchange for the contribution of assets to a joint venture.

(c)

Total growth capital expenditures for the six months ended June 30, 2025 excludes acquisitions of $235 million, net of cash acquired.

(d)

Growth capital reimbursements are generally included in changes in deferred revenue within operating activities in the Consolidated Statements of Cash Flows. Maintenance capital reimbursements are included in the Contributions from MPC line within financing activities in the Consolidated Statements of Cash Flows.

SOURCE MPLX LP

Original source text

Strong Operating Performance and Significant Progress Diversifying Towards Non-Auto Markets

SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)--Aptiv PLC (NYSE: APTV), a global industrial technology company, today reported financial results for the second quarter of 2026.

Second Quarter Financial Highlights Include:

U.S. GAAP revenue of $3.3 billion, an increase of 2% Adjusted revenue growth of 2% U.S. GAAP net income from continuing operations of $298 million Adjusted EBITDA of $613 million U.S. GAAP diluted earnings per share from continuing operations of $1.40 Adjusted net income per share of $1.63 Completed the spin-off of Electrical Distribution Systems segment Electrical Distribution Systems segment classified as discontinued operations for all periods presented Received cash dividend of $1.9 billion in connection with the spin-off Year-to-Date Financial Highlights Include:

U.S. GAAP revenue of $6.3 billion, an increase of 2% Adjusted revenue growth of 1% U.S. GAAP net income from continuing operations of $427 million Adjusted EBITDA of $1,106 million U.S. GAAP diluted earnings per share from continuing operations of $2.01 Adjusted net income per share of $2.56 "We delivered solid results in the second quarter, our first as New Aptiv, with a reacceleration in revenue growth and margin expansion year-over-year,” said Kevin Clark, chair and chief executive officer. “In addition, we continued to demonstrate progress on many of our strategic initiatives, including double digit revenue growth in Non-Automotive revenues, advancing our presence in the Robotics market from partnerships to commercial stage, and securing a major Drone market commercial win in early July. While the macroeconomic landscape for Automotive remains dynamic and customer mix has presented as an incremental headwind, we remain committed to delivering continued revenue growth and strong operating performance this year. Moreover, our strong belief in the long-term value of our business and opportunity for growth across markets has reinforced our commitment in returning capital to shareholders, with half of our expected cash flow for the year already having been allocated towards share repurchases, a level we see continuing for the next few years."

Second Quarter 2026 Results

For the three months ended June 30, 2026, the Company reported U.S. GAAP revenue of $3.3 billion, an increase of 2% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 2% in the second quarter. This reflects growth of 10% in North America, 6% in Asia Pacific, which includes growth of 5% in China, partially offset by declines of 8% in EMEA and 4% in South America, our smallest region.

The Company reported second quarter 2026 U.S. GAAP net income from continuing operations of $298 million, net income margin from continuing operations of 9.1% and earnings from continuing operations of $1.40 per diluted share, compared to U.S. GAAP net income from continuing operations of $265 million, net income margin from continuing operations of 8.3% and earnings from continuing operations of $1.21 per diluted share in the prior year period. Second quarter Adjusted Net Income totaled $345 million, or earnings of $1.63 per diluted share, compared to $285 million, or $1.31 per diluted share, in the prior year period.

The Company reported second quarter Adjusted EBITDA of $613 million, compared to $547 million in the prior year period. Adjusted EBITDA margin was 18.7%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs.

The Company reported second quarter Adjusted Operating Income of $473 million, compared to $410 million in the prior year period. Adjusted Operating Income margin was 14.4%, compared to 12.8% in the prior year period.

Depreciation and amortization expense totaled $195 million, compared to $190 million in the prior year period. Interest expense for the second quarter totaled $62 million, compared to $92 million in the prior year period.

Tax expense in the second quarter of 2026 was $52 million, compared to $16 million in the prior year period.

Net cash flow provided by operating activities from continuing operations totaled $137 million in the second quarter, compared to $326 million in the prior year period. The Company generated Free Cash Flow of $12 million in the second quarter, compared to $219 million generated in the prior year period.

Year-to-Date 2026 Results

For the six months ended June 30, 2026, the Company reported U.S. GAAP revenue of $6.3 billion, an increase of 2% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 1% during the period. This reflects growth of 9% in North America and 1% in Asia Pacific, which includes a decline of 4% in China, partially offset by declines of 7% in EMEA and 3% in South America, our smallest region.

The Company reported 2026 year-to-date U.S. GAAP net income from continuing operations of $427 million, net income margin from continuing operation of 6.8% and earnings from continuing operations of $2.01 per diluted share, compared to U.S. GAAP net income from continuing operations of $125 million, net income margin from continuing operation of 2.0% and earnings from continuing operations of $0.55 per diluted share in the prior year period. Year-to-date Adjusted Net Income totaled $545 million, or earnings of $2.56 per diluted share, compared to $517 million, or $2.30 per diluted share, in the prior year period.

For the 2026 year-to-date period, The Company reported Adjusted EBITDA of $1,106 million, compared to $1,059 million in the prior year period. Adjusted EBITDA margin was 17.5%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs.

The Company reported Adjusted Operating Income of $829 million for the year-to-date 2026 period, compared to $789 million in the prior year period. Adjusted Operating Income margin was 13.1%, compared to 12.8% in the prior year period.

Depreciation and amortization expense totaled $384 million, compared to $379 million in the prior year period. Interest expense for the year-to-date period totaled $146 million, compared to $185 million in the prior year period.

Tax expense in the six months ended June 30, 2026 was $94 million. Tax expense in the six months ended June 30, 2025 was $342 million, which primarily reflects an increase to valuation allowances of approximately $300 million on deferred tax assets impacted by the OECD Administrative Guidance issued in the first quarter of 2025.

Net cash flow provided by operating activities from continuing operations totaled $82 million in the six months ended June 30, 2026, compared to $531 million in the prior year period. The Company reported negative Free Cash Flow of $196 million in the six months ended June 30, 2026, compared to $264 million generated in the prior year period.

Reconciliations of Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules.

Debt Redemptions and Share Repurchases

In April 2026, the Company redeemed $1,847 million of aggregate principal amount of certain senior notes principally utilizing proceeds from the cash distribution received from Versigent in connection with the spin-off.

The Company repurchased and retired 4.1 million shares for $250 million in the second quarter of 2026, bringing the year-to-date total to $325 million. As of June 30, 2026, $1.8 billion remained available for future share repurchases under the Company’s existing authorization.

EDS Spin-Off

As previously disclosed, the spin-off of the Company’s former Electrical Distribution Systems segment into a new independent publicly traded company, Versigent PLC, was completed on April 1, 2026. The results of the Electrical Distribution Systems business through April 1, 2026 are presented as discontinued operations separate from the Company’s continuing operations for all periods presented. In connection with the spin-off, Aptiv received a dividend of approximately $1.9 billion from Versigent, which the Company used to opportunistically redeem outstanding debt prior to maturity.

Q3 and Full Year 2026 Outlook

The Company’s third quarter and full year 2026 financial guidance is as follows. This reflects Aptiv without the EDS business, which is presented as discontinued operations.

(in millions, except per share amounts)

Q3 2026

New Aptiv (Pro Forma)

Full Year 2026

Net sales

$3,120 - $3,220

$12,600 - $12,800

U.S. GAAP net income from continuing operations

$180 - $200

$860 - $900

U.S. GAAP net income from continuing operations margin

6.0%

6.9%

Adjusted EBITDA

$545 - $575

$2,310 - $2,370

Adjusted EBITDA margin

17.7%

18.4%

U.S. GAAP diluted net income per share from continuing operations

$0.86 - $0.96

$4.06 - $4.26

Adjusted net income per share

$1.25 - $1.35

$5.60 - $5.80

Cash flow from continuing operations

$1,270 - $1,370

Free cash flow

$625 - $725

U.S. GAAP effective tax rate

~18%

Adjusted effective tax rate

~18%

Conference Call and Webcast

The Company will host a conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by dialing +1.800.330.6710 (U.S.) or +1.213.279.1505 (international) or through a webcast at ir.aptiv.com. The conference ID number is 8103952. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company’s website. A replay will be available two hours following the conference call.

Use of Non-GAAP Financial Information

This press release contains information about Aptiv’s financial results which are not presented in accordance with GAAP. Specifically, Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow are non-GAAP financial measures. Adjusted Revenue Growth represents the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Adjusted EBITDA represents net income (loss) before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, income (loss) from discontinued operations, restructuring and other special items. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of net sales. Adjusted Operating Income represents net income (loss) before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, income (loss) from discontinued operations, amortization, restructuring, separation costs related to the spin-off of the Electrical Distribution Systems business, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), goodwill and other asset impairments, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions. Adjusted Operating Income margin is defined as Adjusted Operating Income as a percentage of net sales.

Adjusted Net Income represents net income (loss) attributable to Aptiv before income (loss) from discontinued operations, amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share represents Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding for the period.

Free cash flow represents cash provided by (used in) operating activities from continuing operations less capital expenditures.

Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position, results of operations and liquidity. In particular, management believes Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow are useful measures in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and that may obscure underlying business results and trends. Management also uses these non-GAAP financial measures for internal planning and forecasting purposes.

Such non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measures in the attached supplemental schedules at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

About Aptiv

Aptiv is a global industrial technology leader delivering advanced solutions people trust when it matters most across automotive, commercial vehicle, aerospace and defense, telecom and datacom, and other diversified industrial end markets. Our differentiated portfolio enables devices and systems to sense, think, act, and continuously optimize performance. Building on decades of innovation, Aptiv brings global scale and a resilient, localized value chain to customers across the globe. Learn more at aptiv.com.

Forward-Looking Statements

This press release, as well as other statements made by Aptiv PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events, certain investments and acquisitions and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company’s operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company’s strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.

APTIV PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except per share amounts)

Net sales

$

3,274

$

3,199

$

6,306

$

6,186

Operating expenses:

Cost of sales

2,499

2,468

4,861

4,784

Selling, general and administrative

332

327

660

636

Amortization

52

52

104

103

Restructuring

24

27

40

49

Total operating expenses

2,907

2,874

5,665

5,572

Operating income

367

325

641

614

Interest expense

(62

)

(92

)

(146

)

(185

)

Other income, net

58

15

55

19

Net gain on equity method transactions

3

46

3

46

Income from continuing operations before income taxes and equity loss

366

294

553

494

Income tax expense

(52

)

(16

)

(94

)

(342

)

Income from continuing operations before equity loss

314

278

459

152

Equity loss, net of tax

(17

)

(14

)

(34

)

(29

)

Income from continuing operations

297

264

425

123

(Loss) income from discontinued operations, net of tax

(50

)

133

13

263

Net income

247

397

438

386

Net income attributable to noncontrolling interest

—

5

3

6

Net loss attributable to redeemable noncontrolling interest

(1

)

(1

)

(2

)

(2

)

Net income attributable to Aptiv

$

248

$

393

$

437

$

382

Amounts attributable to Aptiv:

Income from continuing operations

$

298

$

265

$

427

$

125

(Loss) income from discontinued operations

(50

)

128

10

257

Net income

$

248

$

393

$

437

$

382

Diluted net income (loss) per share:

Continuing operations

$

1.40

$

1.21

$

2.01

$

0.55

Discontinued operations

(0.23

)

0.59

0.05

1.15

Diluted net income (loss) per share attributable to Aptiv

$

1.17

$

1.80

$

2.06

$

1.70

Weighted average number of diluted shares outstanding

212.10

218.11

212.53

224.32

APTIV PLC
CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,

2026

December 31,

(Unaudited)

2025

(in millions)

ASSETS

Current assets:

Cash and cash equivalents

$

761

$

1,575

Restricted cash

4

3

Accounts receivable, net

2,434

1,910

Inventories

2,038

1,789

Other current assets

766

627

Current assets of discontinued operations

—

2,841

Total current assets

6,003

8,745

Long-term assets:

Property, net

2,756

2,872

Operating lease right-of-use assets

305

331

Investments in affiliates

1,255

1,288

Intangible assets, net

1,875

1,997

Goodwill

3,937

4,008

Other long-term assets

1,865

1,816

Long-term assets of discontinued operations

—

2,356

Total long-term assets

11,993

14,668

Total assets

$

17,996

$

23,413

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term debt

$

23

$

23

Accounts payable

1,910

1,623

Accrued liabilities

1,042

1,191

Current liabilities of discontinued operations

—

2,200

Total current liabilities

2,975

5,037

Long-term liabilities:

Long-term debt

5,331

7,467

Pension benefit obligations

212

212

Long-term operating lease liabilities

241

270

Other long-term liabilities

484

479

Long-term liabilities of discontinued operations

—

449

Total long-term liabilities

6,268

8,877

Total liabilities

9,243

13,914

Commitments and contingencies

Redeemable noncontrolling interest

—

102

Total Aptiv shareholders’ equity

8,753

9,207

Noncontrolling interest

—

190

Total shareholders’ equity

8,753

9,397

Total liabilities, redeemable noncontrolling interest and shareholders’ equity

$

17,996

$

23,413

APTIV PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Six Months Ended June 30,

2026

2025

(in millions)

Cash flows from operating activities:

Net income

$

438

$

386

Income from discontinued operations, net of tax

13

263

Income from continuing operations

425

123

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation and amortization

384

379

Restructuring expense, net of cash paid

(14

)

(9

)

Deferred income taxes

(32

)

309

Loss from equity method investments, net of dividends received

34

29

Loss on extinguishment of debt

(39

)

3

Net gain on equity method transactions

(3

)

(46

)

Other, net

65

74

Changes in operating assets and liabilities:

Accounts receivable, net

(314

)

(204

)

Inventories

(230

)

(108

)

Accounts payable

144

163

Other, net

(331

)

(180

)

Pension contributions

(7

)

(2

)

Net cash provided by operating activities from continuing operations

82

531

Net cash (used in) provided by operating activities from discontinued operations

(133

)

252

Net cash (used in) provided by operating activities

(51

)

783

Cash flows from investing activities:

Capital expenditures

(278

)

(267

)

Proceeds from sale of property

2

2

Proceeds from asset sale

—

4

Proceeds from sale of technology investments

—

1

Cost of technology investments

—

(42

)

Proceeds from the sale of equity method investments

—

164

Acquisition of redeemable noncontrolling interest

(67

)

—

Settlement of derivatives

(3

)

5

Net cash used in investing activities from continuing operations

(346

)

(133

)

Net cash used in investing activities from discontinued operations

(66

)

(79

)

Net cash used in investing activities

(412

)

(212

)

Cash flows from financing activities:

Decrease in other short and long-term debt, net

(5

)

(574

)

Repayment of senior notes

(2,054

)

—

Fees related to modification of debt agreements

—

(5

)

Dividend received from spin-off of Versigent

1,920

—

Cash transferred to Versigent related to spin-off

(282

)

—

Repurchase of ordinary shares

(322

)

—

Taxes withheld and paid on employees’ restricted share awards

(32

)

(17

)

Net cash used in financing activities from continuing operations

(775

)

(596

)

Net cash provided by (used in) financing activities from discontinued operations

150

(136

)

Net cash used in financing activities

(625

)

(732

)

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

(1

)

36

Decrease in cash, cash equivalents and restricted cash

(1,089

)

(125

)

Cash, cash equivalents and restricted cash at beginning of the period

1,854

1,574

Cash, cash equivalents and restricted cash at end of the period

$

765

$

1,449

Cash, cash equivalents and restricted cash of discontinued operations

$

—

$

328

Cash, cash equivalents and restricted cash of continuing operations

$

765

$

1,121

APTIV PLC
FOOTNOTES
(Unaudited)

1. Segment Summary

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

%

2026

2025

%

(in millions)

(in millions)

Net Sales

Engineered Components

$

1,800

$

1,718

5%

$

3,422

$

3,298

4%

Intelligent Systems

1,501

1,507

—%

2,934

2,931

—%

Eliminations and Other (a)

(27

)

(26

)

(50

)

(43

)

Net Sales

$

3,274

$

3,199

$

6,306

$

6,186

Adjusted EBITDA

Engineered Components

$

403

$

343

17%

$

729

$

670

9%

Intelligent Systems

210

204

3%

377

389

(3)%

Adjusted EBITDA

$

613

$

547

$

1,106

$

1,059

2. Weighted Average Number of Diluted Shares Outstanding

The following table illustrates the weighted average shares outstanding used in calculating basic and diluted net income (loss) per share attributable to Aptiv for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except per share amounts)

Weighted average ordinary shares outstanding, basic

211.56

217.73

211.84

223.91

Dilutive shares related to RSUs

0.54

0.38

0.69

0.41

Weighted average ordinary shares outstanding, including dilutive shares

212.10

218.11

212.53

224.32

Basic net income (loss) per share:

Continuing operations

$

1.41

$

1.21

$

2.02

$

0.56

Discontinued operations

(0.24

)

0.59

0.04

1.15

Basic net income per share attributable to Aptiv

$

1.17

$

1.80

$

2.06

$

1.71

Diluted net income (loss) per share:

Continuing operations

$

1.40

$

1.21

$

2.01

$

0.55

Discontinued operations

(0.23

)

0.59

0.05

1.15

Diluted net income per share attributable to Aptiv

$

1.17

$

1.80

$

2.06

$

1.70

APTIV PLC
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)

In this press release the Company has provided information regarding certain non-GAAP financial measures, including “Adjusted Revenue Growth,” “Adjusted EBITDA,” “Adjusted Operating Income,” “Adjusted Net Income,” “Adjusted Net Income Per Share” and “Free Cash Flow.” Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the following schedules.

Adjusted Revenue Growth: Adjusted Revenue Growth is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Revenue Growth in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Revenue Growth is defined as the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Not all companies use identical calculations of Adjusted Revenue Growth, therefore this presentation may not be comparable to other similarly titled measures of other companies.

Three Months Ended

June 30, 2026

Reported net sales % change

2

%

Less: foreign currency exchange and commodities

—

%

Adjusted revenue growth

2

%

Six Months Ended

June 30, 2026

Reported net sales % change

2

%

Less: foreign currency exchange and commodities

1

%

Adjusted revenue growth

1

%

Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted EBITDA in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted EBITDA is defined as net income (loss) before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, income (loss) from discontinued operations, restructuring and other special items. Not all companies use identical calculations of Adjusted EBITDA, therefore this presentation may not be comparable to other similarly titled measures of other companies. EBITDA margin represents EBITDA as a percentage of net sales, and Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.

Consolidated Adjusted EBITDA

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions)

$

Margin

$

Margin

$

Margin

$

Margin

Net income attributable to Aptiv

$

248

7.6

%

$

393

12.3

%

$

437

6.9

%

$

382

6.2

%

(Loss) income from discontinued operations, net of tax

(50

)

128

10

257

Income from continuing operations

$

298

9.1

%

$

265

8.3

%

$

427

6.8

%

$

125

2.0

%

Interest expense

62

92

146

185

Income tax expense

52

16

94

342

Net loss attributable to redeemable noncontrolling interest

(1

)

(1

)

(2

)

(2

)

Depreciation and amortization (a)

195

190

384

379

EBITDA

$

606

18.5

%

$

562

17.6

%

$

1,049

16.6

%

$

1,029

16.6

%

Other income, net

(58

)

(15

)

(55

)

(19

)

Net gain on equity method transactions

(3

)

(46

)

(3

)

(46

)

Equity loss, net of tax

17

14

34

29

Restructuring

24

27

40

49

Separation costs

18

1

23

1

Other acquisition and portfolio project costs

8

5

15

12

Compensation expense related to acquisitions

1

4

3

9

Gain on asset sale

—

(5

)

—

(5

)

Adjusted EBITDA

$

613

18.7

%

$

547

17.1

%

$

1,106

17.5

%

$

1,059

17.1

%

Segment Adjusted EBITDA

(in millions)

Three Months Ended June 30, 2026

Engineered

Components

Intelligent

Systems

Total

Operating income

$

267

$

100

$

367

Restructuring

8

16

24

Separation costs

10

8

18

Other acquisition and portfolio project costs

3

5

8

Compensation expense related to acquisitions

—

1

1

Depreciation and amortization (a)

115

80

195

Adjusted EBITDA

$

403

$

210

$

613

Three Months Ended June 30, 2025

Engineered

Components

Intelligent

Systems

Total

Operating income

$

209

$

116

$

325

Restructuring

17

10

27

Separation costs

1

—

1

Other acquisition and portfolio project costs

1

4

5

Compensation expense related to acquisitions

—

4

4

Gain on business divestitures and other transactions

—

(5

)

(5

)

Depreciation and amortization (a)

115

75

190

Adjusted EBITDA

$

343

$

204

$

547

Six Months Ended June 30, 2026

Engineered

Components

Intelligent

Systems

Total

Operating income

$

468

$

173

$

641

Restructuring

12

28

40

Separation costs

13

10

23

Other acquisition and portfolio project costs

7

8

15

Compensation expense related to acquisitions

—

3

3

Depreciation and amortization (a)

229

155

384

Adjusted EBITDA

$

729

$

377

$

1,106

Six Months Ended June 30, 2025

Engineered

Components

Intelligent

Systems

Total

Operating income

$

403

$

211

$

614

Restructuring

33

16

49

Separation costs

1

—

1

Other acquisition and portfolio project costs

4

8

12

Compensation expense related to acquisitions

—

9

9

Gain on business divestitures and other transactions

—

(5

)

(5

)

Depreciation and amortization (a)

229

150

379

Adjusted EBITDA

$

670

$

389

$

1,059

Adjusted Operating Income: Adjusted Operating Income is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes this measure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income (loss) before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, income (loss) from discontinued operations, amortization, restructuring and other special items. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable to other similarly titled measures of other companies. Operating income margin represents Operating income as a percentage of net sales, and Adjusted Operating Income margin represents Adjusted Operating Income as a percentage of net sales.

Consolidated Adjusted Operating Income

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

($ in millions)

$

Margin

$

Margin

$

Margin

$

Margin

Net income attributable to Aptiv

$

248

7.6

%

$

393

12.3

%

$

437

6.9

%

$

382

6.2

%

(Loss) income from discontinued operations, net of tax

(50

)

128

10

257

Income from continuing operations

$

298

9.1

%

$

265

8.3

%

$

427

6.8

%

$

125

2.0

%

Interest expense

62

92

146

185

Other income, net

(58

)

(15

)

(55

)

(19

)

Net gain on equity method transactions

(3

)

(46

)

(3

)

(46

)

Income tax expense

52

16

94

342

Equity loss, net of tax

17

14

34

29

Net loss attributable to redeemable noncontrolling interest

(1

)

(1

)

(2

)

(2

)

Operating income

$

367

11.2

%

$

325

10.2

%

$

641

10.2

%

$

614

9.9

%

Amortization

52

52

104

103

Restructuring

24

27

40

49

Separation costs

18

1

23

1

Other acquisition and portfolio project costs

8

5

15

12

Asset impairments

3

1

3

6

Compensation expense related to acquisitions

1

4

3

9

Gain on asset sale

—

(5

)

—

(5

)

Adjusted operating income

$

473

14.4

%

$

410

12.8

%

$

829

13.1

%

$

789

12.8

%

Segment Adjusted Operating Income

(in millions)

Three Months Ended June 30, 2026

Engineered

Components

Intelligent

Systems

Total

Operating income

$

267

$

100

$

367

Amortization

29

23

52

Restructuring

8

16

24

Separation costs

10

8

18

Other acquisition and portfolio project costs

3

5

8

Asset impairments

—

3

3

Compensation expense related to acquisitions

—

1

1

Adjusted operating income

$

317

$

156

$

473

Three Months Ended June 30, 2025

Engineered

Components

Intelligent

Systems

Total

Operating income

$

209

$

116

$

325

Amortization

30

22

52

Restructuring

17

10

27

Separation costs

1

—

1

Other acquisition and portfolio project costs

1

4

5

Asset impairments

1

—

1

Compensation expense related to acquisitions

—

4

4

Gain on asset sale

—

(5

)

(5

)

Adjusted operating income

$

259

$

151

$

410

Six Months Ended June 30, 2026

Engineered

Components

Intelligent

Systems

Total

Operating income

$

468

$

173

$

641

Amortization

59

45

104

Restructuring

12

28

40

Separation costs

13

10

23

Other acquisition and portfolio project costs

7

8

15

Asset impairments

—

3

3

Compensation expense related to acquisitions

—

3

3

Adjusted operating income

$

559

$

270

$

829

Six Months Ended June 30, 2025

Engineered

Components

Intelligent

Systems

Total

Operating income

$

403

$

211

$

614

Amortization

59

44

103

Restructuring

33

16

49

Separation costs

1

—

1

Other acquisition and portfolio project costs

4

8

12

Asset impairments

6

—

6

Compensation expense related to acquisitions

—

9

9

Gain on asset sale

—

(5

)

(5

)

Adjusted operating income

$

506

$

283

$

789

Adjusted Net Income and Adjusted Net Income Per Share: Adjusted Net Income and Adjusted Net Income Per Share, which are non-GAAP measures, are presented as supplemental measures of the Company’s financial performance which management believes are useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Management utilizes Adjusted Net Income and Adjusted Net Income Per Share in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Net Income is defined as net (loss) income attributable to Aptiv before income (loss) from discontinued operations, amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding, for the period. Not all companies use identical calculations of Adjusted Net Income and Adjusted Net Income Per Share, therefore this presentation may not be comparable to other similarly titled measures of other companies.

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except per share amounts)

Net income attributable to Aptiv

$

248

$

393

$

437

$

382

(Loss) income from discontinued operations, net of tax

(50

)

128

10

257

Income from continuing operations

$

298

$

265

$

427

$

125

Adjusting items:

Amortization

52

52

104

103

Restructuring

24

27

40

49

Separation costs

18

1

23

1

Other acquisition and portfolio project costs

8

5

15

12

Asset impairments

3

1

3

6

Compensation expense related to acquisitions

1

4

3

9

Gain on asset sale

—

(5

)

—

(5

)

(Gain) loss on extinguishment of debt

(44

)

—

(39

)

3

Gain on change in fair value of publicly traded equity securities

—

(3

)

—

(1

)

Net gain on equity method transactions

(3

)

(46

)

(3

)

(46

)

Tax impact of intercompany transfers of intellectual property and other related transactions (a)

—

—

—

294

Tax impact of adjusting items (b)

(12

)

(16

)

(28

)

(33

)

Adjusted net income attributable to Aptiv

$

345

$

285

$

545

$

517

Weighted average number of diluted shares outstanding

212.10

218.11

212.53

224.32

Diluted net income per share attributable to Aptiv

$

1.40

$

1.21

$

2.01

$

0.55

Adjusted net income per share

$

1.63

$

1.31

$

2.56

$

2.30

Free Cash Flow: Free Cash Flow is presented as a supplemental measure of the Company’s liquidity, which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions, evaluating its liquidity and determining appropriate capital allocation strategies. Management believes this measure is useful to investors to understand how the Company’s core operating activities generate and use cash. Free Cash Flow is defined as cash provided by (used in) operating activities from continuing operations less capital expenditures. Not all companies use identical calculations of Free Cash Flow, therefore this presentation may not be comparable to other similarly titled measures of other companies. The calculation of Free Cash Flow does not reflect cash used to service debt, pay dividends or repurchase shares, and therefore, does not necessarily reflect funds available for investment or other discretionary uses.

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions)

Net cash provided by operating activities from continuing operations

$

137

$

326

$

82

$

531

Capital expenditures

(125

)

(107

)

(278

)

(267

)

Free cash flow

$

12

$

219

$

(196

)

$

264

Financial Guidance: The reconciliation of the forward-looking non-GAAP financial measures provided in the Company’s financial guidance to the most comparable forward-looking GAAP measure for the third quarter and full year 2026 is as follows. This reflects Aptiv without the EDS business, which is presented as discontinued operations.

New Aptiv (Pro Forma)

Estimated Q3

Estimated Full Year

2026 (a)

2026 (a)

($ in millions)

Adjusted EBITDA

$

Margin (b)

$

Margin (b)

Net income from continuing operations attributable to Aptiv

$

190

6.0

%

$

880

6.9

%

Interest expense

60

245

Income tax expense

50

220

Net loss attributable to noncontrolling interest (c)

—

(5

)

Depreciation and amortization

195

775

EBITDA

$

495

15.6

%

$

2,115

16.7

%

Other income, net

(5

)

(60

)

Net gain on equity method transactions

—

(5

)

Equity loss, net of tax

20

70

Restructuring

30

95

Other acquisition and portfolio project costs, including costs related to the spin-off of the EDS business

20

70

Pro forma adjustment to continuing operations presentation (d)

—

55

Adjusted EBITDA

$

560

17.7

%

$

2,340

18.4

%

New Aptiv (Pro Forma)

Estimated Q3

Estimated Full Year

2026 (a)

2026 (a)

Adjusted Net Income Per Share

($ and shares in millions,

except per share amounts)

Net income from continuing operations attributable to Aptiv

$

190

$

880

Adjusting items:

Amortization

50

210

Restructuring

30

95

Other acquisition and portfolio project costs, including costs related to the spin-off of the EDS business

20

70

Asset impairments

—

5

Net gain on equity method transactions

—

(5

)

Gain on extinguishment of debt

—

(45

)

Tax impact of adjusting items

(20

)

(60

)

Pro forma adjustment to continuing operations presentation (b)

—

55

Adjusted net income attributable to Aptiv

$

270

$

1,205

Weighted average number of diluted shares outstanding

208.00

211.50

Diluted net income per share attributable to Aptiv

$

0.91

$

4.16

Adjusted net income per share

$

1.30

$

5.70

New Aptiv (Pro Forma)

Estimated Full Year

2026 (a)

Free Cash Flow

(in millions)

Net cash provided by operating activities from continuing operations

$

1,320

Capital expenditures

(600

)

Pro forma adjustment to continuing operations presentation (b)

(45

)

Free cash flow

$

675

Original source text

Power-first execution model compounds across the Company's first two AI data center campuses

949 MW of contracted IT capacity, approximately $26.6 billion of expected aggregate base-term contract value, more than $1.75 billion of expected average annual NOI, and $7.5 billion of investment-grade project financing secured to date

Earnings Release Highlights

Completed the commercialization of Hut 8's first gigawatt-scale AI data center campus, signing, subsequent to quarter-end, a second 352 MW IT lease at Beacon Point. Closed $7.5 billion of fully amortizing investment-grade project financing across two offerings in a single quarter, each on a non-dilutive basis and without recourse to Hut 8 Corp. Scaled expected aggregate base-term contract value across the portfolio to approximately $26.6 billion across 949 MW of contracted AI data center capacity, representing more than $1.75 billion of expected average annual NOI, leased or backstopped exclusively by investment-grade counterparties. Facilities representing 1,330 MW of utility capacity in active construction across River Bend and Beacon Point, targeted for initial data hall delivery in Q2 2027 and Q3 2027, respectively. , /PRNewswire/ -- Hut 8 Corp. (Nasdaq, TSX: HUT) ("Hut 8" or the "Company"), an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies, today reported its financial results for the second quarter of 2026.

Asher Genoot, CEO of Hut 8, said: "In the second quarter, our power-first model drove significant commercial and financial milestones across our first two AI data center campuses. To date, it has produced data center leases representing 949 MW of contracted IT capacity, approximately $26.6 billion of expected aggregate base-term value leased or backstopped by investment-grade counterparties, more than $1.75 billion of expected average annual NOI, and $7.5 billion of investment-grade construction financing.

"Three milestones during the quarter and the weeks that followed demonstrated our momentum. At Beacon Point, our existing high-investment-grade tenant returned within months of the Phase 1 lease to commit to a second 352 MW IT lease, commercializing the campus's full one-gigawatt of utility capacity. In the credit markets, we closed $7.5 billion across two investment-grade offerings in a single quarter, opening with our inaugural River Bend financing and returning weeks later to execute on improved terms for Beacon Point Phase 1. Commitments of this depth from some of the market's most sophisticated counterparties underscore the strength of a model built to perform repeatedly at scale.

"Delivery is now our central priority. We continue to apply the full weight of our organization to deliver River Bend and Beacon Point: operating rigor built through years of developing energy-intensive infrastructure at scale and a team we continue to expand ahead of the growth to come. Bringing these campuses online will put nearly a gigawatt of contracted IT capacity into service and establish the foundation from which we intend to build the defining infrastructure platform of the AI era."

Second Quarter 2026 Highlights

Power

Generated $1.2 million in second quarter revenue from Power Generation and Managed Services. Advanced, following the execution of the Phase 2 lease subsequent to quarter-end, 500 MW of utility capacity from Beacon Point into Energy Capacity Under Construction, increasing total Energy Capacity Under Construction to 1,330 MW, comprising 330 MW at the River Bend campus and 1,000 MW at the Beacon Point campus. Digital Infrastructure

Generated $1.3 million in second quarter revenue from Colocation services. An additional $27.0 million of Colocation revenue, including reimbursements, from the Company's share of the unconsolidated King Mountain Joint Venture is recognized in the "Equity in earnings of unconsolidated joint venture" line item. Advanced the buildout of River Bend, targeted for initial data hall delivery in the second quarter of 2027. Progress during the quarter included the commencement of vertical construction, continued construction of the campus substation, and receipt of initial deliveries of long-lead equipment. Commenced the buildout of Beacon Point, with construction of Phase 1 and the campus substation underway, targeted for initial energization in the first quarter of 2027 and initial data hall delivery in the third quarter of 2027. Completed the commercialization of Hut 8's first gigawatt-scale AI data center campus, signing, subsequent to quarter-end, a second 15-year, 352 MW IT lease at Beacon Point with the same high-investment-grade tenant as in Beacon Point Phase 1, representing approximately $9.8 billion in expected base-term contract value and approximately $655.0 million of expected average annual NOI on a triple-net, take-or-pay basis and bringing total base-term contract value across the campus to approximately $19.6 billion and expected average annual NOI to approximately $1.3 billion. Renewal options increase potential campus-level contract value to $50.2 billion. Compute

Generated $72.5 million in second quarter revenue from ASIC Compute, AI Cloud, and Traditional Cloud solutions. Capital Strategy and Balance Sheet

Maintained a strong liquidity position, supported by approximately $8.1 billion in unrestricted cash, restricted cash and cash equivalents, and Bitcoin holdings, including $7.6 billion attributable to Hut 8 and $497.2 million attributable to American Bitcoin, as of June 30, 2026. Closed $7.5 billion of fully amortizing investment-grade project financing across two offerings, comprising $3.25 billion of senior secured notes for the River Bend campus, the first investment-grade construction financing for a single-sponsor data center project, and $4.25 billion of senior secured notes for Beacon Point Phase 1, rated Baa2 and priced 20 basis points inside the issuance spread of the River Bend notes, in each case on a non-dilutive basis and without recourse to Hut 8 Corp. Refinanced the Company's $200.0 million Bitcoin-backed credit facility through a new facility with FalconX, reducing facility cost of debt from 9.0% to 7.0% and, upon the closing of the new facility, releasing approximately 3,300 BTC from collateral. Following the conversion of the Company's $150.0 million Coatue convertible note, Hut 8 carries no general recourse debt at the parent level. Advanced financing plans for Beacon Point Phase 2, evaluating a range of structures consistent with the Company's disciplined approach to funding campus development. Development Pipeline

As of June 30, 2026, Hut 8's development pipeline totaled approximately 8,660 MW, including 5,400 MW of Energy Capacity Under Diligence, 1,880 MW of Energy Capacity Under Exclusivity, 50 MW of Energy Capacity Under Development, and 1,330 MW of Energy Capacity Under Construction.

Stage

Description

Utility Capacity
As of June 30,
2026

Energy Capacity Under
Diligence

Greenfield sites identified for large-load use cases such as AI, HPC, ASIC compute, industrial applications such as next-generation manufacturing, and other energy-intensive technologies. At this stage, Hut 8 generally invests limited development capital to evaluate critical factors, including power availability, infrastructure readiness, fiber connectivity, and overall commercial viability.

5,400 MW

Energy Capacity Under
Exclusivity

Sites where Hut 8 has secured site control and completed a suitable power study indicating a viable path to the power and infrastructure required for deployment.

1,880 MW1

Energy Capacity Under
Development

Sites where Hut 8 is actively investing in development and commercialization by executing definitive land and/or power agreements, advancing site design and infrastructure development, and engaging with prospective customers.

50 MW

Energy Capacity Under
Construction

Sites where Hut 8 has executed definitive commercial agreements for the relevant capacity and commenced construction activities.

1,330 MW2

Total

All sites under diligence, exclusivity, development, and construction.

8,660 MW1

1.

Excludes 1,000 MW of potential expansion capacity at River Bend (subject to the expansion of power at the site), for which Fluidstack holds a ROFO under the River Bend lease.

2.

Includes 500 MW of energy capacity at Beacon Point Phase 2, which advanced to Energy Capacity Under Construction subsequent to June 30, 2026.

Select Second Quarter 2026 Financial Results

Revenue for the three months ended June 30, 2026 was $74.9 million, compared to $41.3 million in the prior-year period, and consisted of $1.2 million in Power revenue, $1.3 million in Digital Infrastructure revenue, and $72.5 million in Compute revenue.

Net loss for the three months ended June 30, 2026 was $177.1 million, compared to net income of $137.5 million in the prior-year period. Net loss for the period included $138.6 million of primarily unrealized losses on digital assets, compared to $217.6 million of primarily unrealized gains on digital assets in the prior-year period.

Adjusted EBITDA for the three months ended June 30, 2026 was $10.4 million, compared to $4.2 million in the prior-year period. Beginning with the three months ended June 30, 2026, the Company has revised its definition of Adjusted EBITDA to exclude mark-to-market gains and losses on digital assets, and presents Adjusted EBITDA inclusive of digital assets mark-to-market as a separate measure. Prior-period amounts have been recast to conform to the current presentation. Adjusted EBITDA inclusive of digital assets mark-to-market for the three months ended June 30, 2026 was $(94.6) million, compared to $221.2 million in the prior-year period. Reconciliations of these non-GAAP measures to net loss or net income, the most comparable GAAP measure, and explanations of these measures are provided in the tables included below in this press release.

Conference Call

The Company will host a conference call and webcast to review the results today at 8:30 a.m. ET. To register for the webcast, use the following link: app.webinar.net/aA6jEPYlwy5

Supplemental Materials and Upcoming Communications

The Company expects to make available on its website materials designed to accompany the discussion of its results, along with certain supplemental financial information and other data. For important news and information regarding the Company, including investor presentations and timing of future investor conferences, visit the Investor Relations section of the Company's website, hut8.com/investors, and its social media accounts, including on X and LinkedIn. The Company uses its website and social media accounts as primary channels for disclosing key information to its investors, some of which may contain material and previously non-public information.

Analyst Coverage

A full list of Hut 8 Corp. analyst coverage can be found at hut8.com/investors/stock-info/.

About Hut 8

Hut 8 is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies such as AI, high-performance computing, and ASIC compute. The Company develops, commercializes, and operates industrial-scale energy and data center infrastructure through a power-first, innovation-driven approach. For more information, visit hut8.com.

Cautionary Note Regarding Forward-Looking Information

This press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the expected aggregate base-term contract value and expected average annual net operating income associated with the Company's contracted data center capacity; the potential contract value associated with the exercise of renewal options at the Company's leased data center sites; the development and construction of the Company's River Bend and Beacon Point sites, including the targeted timing of initial energization and data hall delivery; the anticipated completion and operation of the Company's leased data center sites and the expected benefits thereof; the Company's plans and potential financing structures for Beacon Point Phase 2; the Company's future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "allow," "believe," "estimate," "expect," "predict," "can," "might," "potential," "is designed to," "likely," or similar expressions.

Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, failure of critical systems; geopolitical, social, economic, and other events and circumstances; competition from current and future competitors; risks related to power requirements; cybersecurity threats and breaches; hazards and operational risks; changes in leasing arrangements; Internet-related disruptions; dependence on key personnel; having a limited operating history; attracting and retaining customers; entering into new offerings or lines of business; price fluctuations and rapidly changing technologies; construction of new data centers, data center expansions, or data center redevelopment; predicting facility requirements; strategic alliances or joint ventures; operating and expanding internationally; failing to grow hashrate; purchasing miners; relying on third-party mining pool service providers; uncertainty in the development and acceptance of the Bitcoin network; Bitcoin halving events; competition from other methods of investing in Bitcoin; concentration of Bitcoin holdings; hedging transactions; potential liquidity constraints; legal, regulatory, governmental, and technological uncertainties; physical risks related to climate change; involvement in legal proceedings; trading volatility; and other risks described from time to time in the Company's filings with the U.S. Securities and Exchange Commission. In particular, see the Company's recent and upcoming annual and quarterly reports and other continuous disclosure documents, which are available under the Company's EDGAR profile at sec.gov and SEDAR+ profile at sedarplus.ca.

Non-GAAP Financial Measures

In addition to its results determined in accordance with GAAP, the Company relies on Adjusted EBITDA, inclusive of digital assets mark-to-market; Adjusted EBITDA; and expected net operating income (NOI) contribution, which are non-GAAP financial measures, to evaluate its business, measure its performance, and inform strategic decision-making.

Adjusted EBITDA, Inclusive of Digital Assets Mark-to-Market

The Company defines Adjusted EBITDA, inclusive of digital assets mark-to-market, as net loss or income adjusted for interest expense, interest income, income tax benefit or provision, depreciation and amortization, our share of depreciation and amortization from unconsolidated joint ventures, net of basis adjustments, foreign exchange loss or gain, gain on the sale of property and equipment, gain or loss on derivatives, loss on other financial liability, gain on warrant liability, gain on the sale of the Far North joint venture, net of transaction costs, non-recurring transactions, loss or income attributable to non-controlling interests, and stock-based compensation expense.

Adjusted EBITDA

The Company defines Adjusted EBITDA as Adjusted EBITDA, inclusive of digital assets mark-to-market, further adjusted to exclude loss or gain on digital assets attributable to Hut 8 Corp., thereby removing the effect of mark-to-market fluctuations of digital assets held on the Company's balance sheet. The Company's digital assets are considered primarily long-term holdings, and periodic appreciation or depreciation in the fair value of such holdings does not reflect the results of the Company's core operations.

Expected Net Operating Income (NOI) Contribution

The Company defines expected net operating income (NOI) contribution as expected lease revenue attributable to a particular lease, less any non-reimbursable operating expenses attributable to the leased property.

How the Company Uses These Measures

The Company's board of directors and management team use Adjusted EBITDA, inclusive of digital assets mark-to-market, and Adjusted EBITDA to assess the Company's financial performance, as these measures allow for the comparison of operating performance on a consistent basis across periods by removing the effects of the Company's capital structure, such as varying levels of interest expense and income, its asset base, such as depreciation and amortization, and other items, including the non-recurring transactions described above. Adjusted EBITDA further excludes the impact of changes in the fair value of the Company's digital asset holdings, which may otherwise affect the comparability of the Company's financial results across periods.

The Company's management team uses expected NOI contribution to evaluate the anticipated operating performance of a particular lease, independent of the Company's consolidated capital structure or asset base, allowing management to assess the economics of individual leasing arrangements on a comparable basis. Investors are encouraged to evaluate each adjustment described above and the reasons the Company's Board and management team believe these measures provide useful supplemental information.

Limitations

Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, inclusive of digital assets mark-to-market, and Adjusted EBITDA. In evaluating these measures, you should be aware that the Company may incur expenses in the future that are the same as, or similar to, certain adjustments reflected in the calculation of these measures. Accordingly, the presentation of these measures should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items.

Operating income is the GAAP measure most directly comparable to expected NOI contribution. In evaluating this measure, you should be aware that the Company may incur non-reimbursable lease operating expenses that are not currently known or quantifiable. Accordingly, the Company's presentation of expected NOI contribution should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. Expected NOI contribution also excludes the impact of selling, general and administrative expenses and depreciation and amortization, each of which has a real economic effect and could materially impact the Company's consolidated financial results. No reconciliation of expected NOI contribution to its most directly comparable GAAP measure is included in this press release because the Company is unable to quantify certain amounts that would be required to be included in operating income without unreasonable effort, and any such quantification would imply a degree of precision that could be confusing or misleading to investors.

The Company may modify the calculation or presentation of these measures in the future, and any such modification could be material. These measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company's results as reported in accordance with GAAP. Because other companies, including companies in the Company's industry and Real Estate Investment Trusts, may calculate similarly titled measures differently, the Company's non-GAAP measures may not be comparable to those reported by other companies, which limits their usefulness for comparative purposes.

Hut 8 Corp. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited, in USD thousands, except share and per share data)

Three Months Ended

June 30,

2026

2025

Revenue:

Power

$

1,176

$

5,492

Digital Infrastructure

1,285

1,512

Compute

72,471

34,295

Total revenue

74,932

41,299

Cost of revenue (exclusive of depreciation and amortization shown below): ‌

Cost of revenue – Power

826

5,000

Cost of revenue – Digital Infrastructure

1,374

2,120

Cost of revenue – Compute

24,691

14,656

Total cost of revenue

26,891

21,776

Operating expenses:

Depreciation and amortization

39,727

19,458

General and administrative expenses

76,080

30,158

Loss (gain) on digital assets

138,597

(217,640)

Gain on sale of property and equipment

(33)

(312)

Total operating expenses (income)

254,371

(168,336)

Operating (loss) income

(206,330)

187,859

Other (expense) income:

Foreign exchange (loss) gain

(3,219)

3,114

Interest expense

(51,160)

(8,396)

Interest income

27,085

—

Gain (loss) on derivatives

18,315

(18,403)

Loss on other financial liability

(98)

(181)

Gain on warrant liability

22

—

Gain on sale of the Far North JV, net of transaction costs

1,110

—

Equity in earnings of unconsolidated joint venture

5,671

1,064

Total other (expense) income

(2,274)

(22,802)

Net (loss) income before income taxes

(208,604)

165,057

Income tax benefit (provision)

31,462

(27,574)

Net (loss) income

(177,142)

137,483

Less: Net loss (income) attributable to non-controlling interests

26,951

(171)

Net (loss) income attributable to Hut 8 Corp.

$

(150,191)

$

137,312

Net (loss) income per share of common stock:

Basic attributable to Hut 8 Corp.

$

(1.27)

$

1.32

Diluted attributable to Hut 8 Corp.

$

(1.27)

$

1.18

Weighted average number of shares of common stock outstanding:

Basic

118,483,238

104,246,041

Diluted

118,483,238

119,018,761

Net (loss) income

$

(177,142)

$

137,483

Other comprehensive (loss) income:

Foreign currency translation adjustments

(12,701)

39,892

Total comprehensive (loss) income

(189,843)

177,375

Less: Comprehensive loss (income) attributable to non-controlling interests

26,951

(227)

Comprehensive (loss) income attributable to Hut 8 Corp.

$

(162,892)

$

177,148

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Adjusted EBITDA reconciliation:

Three Months Ended

June 30,

(in USD thousands)

2026

2025

Net (loss) income

$

(177,142)

$

137,483

Interest expense

51,160

8,396

Interest income

(27,085)

—

Income tax (benefit) provision

(31,462)

27,574

Depreciation and amortization

39,727

19,458

Share of unconsolidated joint venture depreciation, amortization, net of basis adjustments (1)

2,159

5,543

Foreign exchange loss (gain)

3,219

(3,114)

Gain on sale of property and equipment

(33)

(312)

(Gain) loss on derivatives

(18,315)

18,403

Loss on other financial liability

98

181

Gain on warrant liability

(22)

—

Gain on sale of the Far North JV, net of transaction costs

(1,110)

—

Non-recurring transactions (2)

—

3,739

Loss (income) attributable to non-controlling interest

12,985

(3,786)

Stock-based compensation expense

51,239

7,640

Adjusted EBITDA, inclusive of digital assets mark-to-market

$

(94,582)

$

221,205

Loss (gain) on digital assets attributable to Hut 8 Corp.

105,031

(217,014)

Adjusted EBITDA

$

10,449

$

4,191

(1)

Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint
venture in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income in accordance with ASC 323.
See Note 8. Investment in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail.

(2)

There were no non-recurring transactions for the three months ended June 30, 2026. Non-recurring transactions for the three months ended
June 30, 2025 represent approximately $3.7 million of restructuring costs and ABTC-related transaction costs.

SOURCE Hut 8 Corp.

Original source text

CHICAGO, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Vivid Seats Inc. (Nasdaq: SEAT) (“Vivid Seats” or “we”), a leading marketplace that utilizes its technology platform to connect millions of buyers with thousands of ticket sellers across hundreds of thousands of events each year, today provided financial results for the second quarter ended June 30, 2026.

“We are encouraged by the progress we’ve made through the first half of the year. Our second quarter results exceeded expectations as we delivered sequential growth driven by the extraordinary demand created by the FIFA World Cup,” said Lawrence Fey, Chief Executive Officer of Vivid Seats. “We continue to successfully execute against our strategic objectives. With leading technology, a compelling value proposition, differentiated data, and a relentless focus on operational excellence, we remain confident in our ability to drive long-term shareholder value.”

Second Quarter 2026 Key Financial Highlights

Marketplace GOV of $659.4 millionRevenues of $129.9 millionNet loss of $14.3 millionAdjusted EBITDA of $12.6 million Key Business Metrics & Non-U.S. GAAP Financial Measure

We use the following key business metrics and non-U.S. GAAP financial measure to evaluate our performance, identify trends, formulate financial projections, and make strategic decisions. We believe this information is useful to investors and others in understanding and evaluating our results of operations in the same manner as management.

The following table summarizes our key business metrics and non-U.S. GAAP financial measure for the three and six months ended June 30, 2026 and 2025 (in thousands):

  Three Months Ended June 30,  Six Months Ended June 30,   2026  2025  2026  2025 Marketplace GOV(1) $659,359  $685,488  $1,271,725  $1,505,847 Marketplace orders(2)  1,825   2,173   3,541   4,469 Resale orders(3)  84   97   166   202 Adjusted EBITDA(4) $12,592  $14,356  $22,078  $36,077 (1) Marketplace Gross Order Value (“Marketplace GOV”) represents the total transactional amount of Marketplace orders processed on our online platform during a period, inclusive of fees, exclusive of taxes, and net of event cancellations. During the three and six months ended June 30, 2026, event cancellations negatively impacted Marketplace GOV by $16.4 million and $25.4 million, respectively, compared to $20.3 million and $35.8 million during the three and six months ended June 30, 2025, respectively.(2) Marketplace orders represent the total volume of Marketplace segment transactions processed on our online platform during a period, net of event cancellations. During the three and six months ended June 30, 2026, our Marketplace segment experienced 30,767 and 60,201 event cancellations, respectively, compared to 47,845 and 90,198 event cancellations during the three and six months ended June 30, 2025, respectively.(3) Resale orders represent the total volume of Resale segment transactions processed on a given platform (including our own) during a period, net of event cancellations. During the three and six months ended June 30, 2026, our Resale segment experienced 605 and 1,072 event cancellations, respectively, compared to 1,276 and 2,161 event cancellations during the three and six months ended June 30, 2025, respectively.(4) Adjusted EBITDA is a financial measure not defined under accounting principles generally accepted in the United States of America (“U.S. GAAP”). See “Adjusted EBITDA” below for more information, including a reconciliation of adjusted EBITDA to net loss, the most directly comparable U.S. GAAP financial measure.    2026 Financial Outlook

For the year ending December 31, 2026, we now anticipate:

Marketplace GOV in the range of $2.3 billion to $2.6 billion (previously $2.2 billion to $2.6 billion)Adjusted EBITDA in the range of $34.0 million to $40.0 million (previously $30.0 million to $40.0 million)* * We calculate forward-looking adjusted EBITDA based on internal forecasts that omit certain information that would be included in forward-looking net loss, the most directly comparable U.S. GAAP financial measure. We do not attempt to provide a reconciliation of forward-looking adjusted EBITDA to forward-looking net loss because the timing and/or probable significance of certain excluded items that have not yet occurred and are outside of our control is inherently uncertain and unavailable without unreasonable efforts. Such items could have a significant and unpredictable impact on our future U.S. GAAP financial results.

Webcast Details

Vivid Seats will host a webcast at 8:30 a.m. Eastern Time today to discuss the second quarter 2026 financial results, business updates, and financial outlook. Participants may access the webcast and supplemental earnings presentation by visting investors.vividseats.com/events-and-presentations.

About Vivid Seats

Founded in 2001, Vivid Seats (Nasdaq: SEAT) is a leading online ticket marketplace connecting fans to the live events, artists, and teams they love. Vivid Seats is committed to delivering the most rewarding ticket-buying experience for fans through competitive everyday pricing backed by its Lowest Price Guarantee, an industry-leading rewards program, and award-winning customer service. The Chicago-based company offers one of the widest selections of live events across North America, powered by proprietary technology that makes discovering and buying tickets simple, affordable, and reliable. Learn more by downloading the Vivid Seats app or visiting vividseats.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “can,” “continue,” “could,” “design,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “propose,” “seek,” “should,” “target,” “will,” and “would,” as well as similar expressions that predict or indicate future events or do not relate to historical matters, are intended to identify such forward-looking statements. Such forward-looking statements may relate to, without limitation: our business strategy and objectives; our future operating results and financial performance, including our expectations with respect to our fiscal year 2026 Marketplace GOV and adjusted EBITDA; and our expectations with respect to live event industry growth, the supply of and demand for live events, and our competitive positioning. Forward-looking statements are not guarantees of future performance, conditions, or results, and are subject to risks and uncertainties that can be difficult to predict and/or outside of our control. Therefore, actual results may differ materially from those contemplated by any such forward-looking statements. Such risks and uncertainties include, but are not limited to: the supply of and demand for live events; the impact of adverse economic conditions and other factors affecting discretionary consumer and corporate spending; our ability to develop and maintain relationships with ticket buyers, sellers, and partners; the impact of changes to internet search engine algorithms and mobile app marketplace rules; the impact of artificial intelligence on how consumers search for live event tickets; our ability to attract ticket sellers and buyers to our platform in the increasingly competitive ticketing industry; our ability to continue to maintain and improve our platform; the impact of extraordinary events, including disease epidemics; our ability to identify suitable acquisition targets and to complete and realize the expected benefits of acquisitions and other strategic investments; our ability to attract, hire, motivate, and retain our senior management team and other highly skilled personnel; our ability to comply with applicable laws and regulations; the ability of ticket holders to sell their tickets on the secondary market unencumbered; the impact of unfavorable outcomes in legislation and legal proceedings; our ability to maintain the integrity of our information systems and infrastructure, and to identify, assess, and manage relevant cybersecurity risks; our ability to generate sufficient cash flows and/or obtain additional financing when necessary or desirable; and other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as in our press releases and other filings with the Securities and Exchange Commission. Except as required by applicable law, we undertake no obligation to update or revise any such forward-looking statements, which speak only as of the date of this press release.

Contact:

Investors
[email protected]

Media
[email protected]

VIVID SEATS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data) (Unaudited)
   June 30,  December 31,   2026  2025 Assets      Current assets:      Cash and cash equivalents $136,676  $102,702 Restricted cash  904   604 Accounts receivable – net  45,036   30,664 Inventory – net  26,925   18,166 Prepaid expenses and other current assets  39,191   26,336 Total current assets  248,732   178,472 Property and equipment – net  11,268   12,373 Right-of-use assets – net  9,769   10,515 Intangible assets – net  124,168   141,528 Goodwill – net  283,468   283,915 Deferred tax assets – net  1,296   1,123 Investments  5,465   5,365 Other assets  4,639   3,575 Total assets $688,805  $636,866 Liabilities and shareholders' deficit      Current liabilities:      Accounts payable $230,849  $153,418 Accrued expenses and other current liabilities  126,476   125,957 Deferred revenue  17,331   19,973 Current maturities of long-term debt  3,930   3,930 Total current liabilities  378,586   303,278 Long-term debt – net  381,836   383,431 Long-term lease liabilities  15,260   16,452 Other liabilities  18,202   18,834 Total liabilities  793,884   721,995 Commitments and contingencies      Shareholders' deficit:      Class A common stock, $0.0001 par value; 500,000,000 shares authorized, 12,190,860 and 11,712,157 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively  23   23 Additional paid-in capital  1,376,687   1,368,067 Treasury stock, at cost, 949,665 shares at June 30, 2026 and December 31, 2025  (93,920)  (93,920)Accumulated deficit  (1,388,424)  (1,359,472)Accumulated other comprehensive income  555   173 Total shareholders' deficit  (105,079)  (85,129)Total liabilities and shareholders' deficit $688,805  $636,866 VIVID SEATS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands) (Unaudited)
   Three Months Ended June 30,  Six Months Ended June 30,   2026  2025  2026  2025 Revenues $129,861  $143,566  $255,644  $307,589 Costs and expenses:            Cost of revenues (exclusive of depreciation and amortization shown separately below)  38,642   42,429   77,837   86,954 Marketing and selling  52,753   53,800   102,704   117,912 General and administrative  32,589   46,272   65,706   94,354 Depreciation and amortization  12,318   12,341   24,626   23,966 Impairment charges  —   320,449   —   320,449 Total costs and expenses  136,302   475,291   270,873   643,635 Loss from operations  (6,441)  (331,725)  (15,229)  (336,046)Interest expense – net  6,055   5,634   11,986   11,299 Other expense (income) – net  945   (150,197)  2,015   (154,351)Loss on extinguishment of debt  —   —   —   801 Loss before income taxes  (13,441)  (187,162)  (29,230)  (193,795)Income tax expense (benefit)  880   76,165   (278)  79,320 Net loss  (14,321)  (263,327)  (28,952)  (273,115)Net loss attributable to redeemable noncontrolling interests  —   (123,652)  —   (127,498)Net loss attributable to Class A common stockholders $(14,321) $(139,675) $(28,952) $(145,617) VIVID SEATS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (Unaudited)
   Six Months Ended June 30,   2026  2025 Cash flows from operating activities      Net loss $(28,952) $(273,115)Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      Depreciation and amortization  24,626   23,966 Amortization of leases  721   720 Amortization of deferred financing costs  474   485 Equity-based compensation  9,085   22,403 Loss on asset disposals  86   196 Change in fair value of derivative asset  338   573 Deferred income tax expense (benefit)  (403)  76,707 Non-cash interest expense – net  269   334 Foreign currency loss (gain) – net  1,469   (3,574)Change in fair value of Intermediate Warrants  —   (4,849)Loss on extinguishment of debt  —   801 Adjustment of liabilities under TRA  —   (149,172)Impairment charges  —   320,449 Write-off of Sponsorship Loan  —   2,024 Changes in operating assets and liabilities:      Accounts receivable – net  (14,520)  (906)Inventory – net  (8,764)  (13,018)Prepaid expenses and other current assets  (12,869)  3,613 Accounts payable  77,670   (29,394)Accrued expenses and other current liabilities  (243)  (28,104)Deferred revenue  (2,643)  (3,826)Long-term lease liabilities  (1,183)  (1,085)Other assets and liabilities – net  47   864 Net cash provided by (used in) operating activities  45,208   (53,908)Cash flows from investing activities      Purchases of property and equipment  (23)  (2,043)Purchases of personal seat licenses  (625)  (960)Investments in developed technology  (5,993)  (8,341)Purchases of seat images  (287)  (321)Net cash used in investing activities  (6,928)  (11,665)Cash flows from financing activities      Payments of taxes related to net settlement of equity incentive awards  (686)  (1,742)Payments of 2025 First Lien Loan  (1,965)  (983)Payments toward Acquired Domain Name Obligation  (1,000)  (1,000)Payment of deferred financing costs and other debt-related expenses  —   (162)Tax distributions to redeemable noncontrolling interests  —   (1,689)Repurchases of Class A common stock  —   (15,862)Payment of liabilities under TRA  —   (4,005)Payments of 2024 First Lien Loan  —   (76,986)Proceeds from 2025 First Lien Loan  —   76,986 Net cash used in financing activities  (3,651)  (25,443)Effect of exchange rate changes on cash, cash equivalents, and restricted cash  (355)  354 Net increase (decrease) in cash, cash equivalents, and restricted cash  34,274   (90,662)Cash, cash equivalents, and restricted cash – beginning of period  103,306   244,648 Cash, cash equivalents, and restricted cash – end of period $137,580  $153,986        Supplemental disclosures of cash flow information      Cash paid for interest $12,086  $14,883 Cash paid for income taxes, net of income tax refunds received $268  $1,953           Adjusted EBITDA

Adjusted EBITDA is a non-U.S. GAAP financial measure that is used by investors and others to evaluate companies in our industry. Adjusted EBITDA is also used by management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting.

We believe adjusted EBITDA is useful for understanding, evaluating, and highlighting trends in our operating results and for making period-to-period comparisons of our business performance because it excludes the impact of items that are outside of our control and/or not reflective of ongoing performance related directly to the operation of our business.

Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. Adjusted EBITDA does not reflect all amounts associated with our operating results as determined in accordance with U.S. GAAP and specifically excludes certain recurring costs such as: income tax expense (benefit); interest expense – net; depreciation and amortization; sales tax liabilities; transaction costs; equity-based compensation; litigation, settlements, and related costs; loss on asset disposals; change in fair value of derivative asset; foreign currency loss (gain) – net; severance compensation; change in fair value of warrants; loss on extinguishment of debt; adjustment of liabilities under our former Tax Receivable Agreement (“TRA”) entered into with the existing unitholders of Hoya Intermediate, LLC; and impairment charges. In addition, other companies may calculate adjusted EBITDA differently than we do, thereby limiting its usefulness as a comparative tool. We compensate for these limitations by providing specific information regarding the U.S. GAAP amounts that are excluded from our presentation of adjusted EBITDA.

The following table presents a reconciliation of adjusted EBITDA to net loss, the most directly comparable U.S. GAAP financial measure, for the three and six months ended June 30, 2026 and 2025 (in thousands):

  Three Months Ended June 30,  Six Months Ended June 30,   2026  2025  2026  2025 Net loss $(14,321) $(263,327) $(28,952) $(273,115)Adjustments to reconcile net loss to adjusted EBITDA:            Income tax expense (benefit)  880   76,165   (278)  79,320 Interest expense – net  6,055   5,634   11,986   11,299 Depreciation and amortization  12,318   12,341   24,626   23,966 Sales tax liability(1)  204   431   441   (1,360)Transaction costs(2)  138   2,172   930   7,881 Equity-based compensation(3)  4,671   11,652   9,085   22,403 Litigation, settlements, and related costs(4)  1,687   352   1,836   705 Loss on asset disposals(5)  27   149   86   196 Change in fair value of derivative asset(6)  142   223   338   573 Foreign currency loss (gain) – net(7)  779   (1,533)  1,735   (3,574)Severance compensation(8)  12   554   245   554 Change in fair value of Intermediate Warrants(9)  —   (1,734)  —   (4,849)Loss on extinguishment of debt(10)  —   —   —   801 Adjustment of liabilities under TRA(11)  —   (149,172)  —   (149,172)Impairment charges(12)  —   320,449   —   320,449 Adjusted EBITDA $12,592  $14,356  $22,078  $36,077                   (1) During the three and six months ended June 30, 2026 and 2025, we accrued for additional uncollected indirect tax liabilities in jurisdictions where we believed it was probable we should remit payment to U.S. and foreign governmental tax authorities before all required amounts are collected from the customer. We also received abatements and recognized other reductions to the balance of the liability related to uncollected indirect taxes (including sales taxes).(2) Consists of legal, accounting, tax, and other professional fees, integration costs, and other transaction-related expenses, none of which are considered indicative of our core operating performance. Costs in the three and six months ended June 30, 2026 primarily related to various strategic transactions and investments. Costs in three and six months ended June 30, 2025 primarily related to potential strategic transactions that were explored during the period, the February 2025 refinancing of our first lien term loan, repurchases of Class A common stock, and various strategic transactions and investments.(3) Relates to equity incentive awards granted to our employees, directors, and consultants pursuant to our 2021 Incentive Award Plan and shares of Class A common stock purchased by our employees pursuant to our 2021 Employee Stock Purchase Plan, neither of which are considered indicative of our core operating performance.(4) Relates to external legal costs, settlement costs, and insurance recoveries related to certain non-ordinary course legal and regulatory matters that are not considered indicative of our core operating performance.(5) Relates to disposals of fixed assets, which are not considered indicative of our core operating performance.(6) Relates to the revaluation of derivatives recorded at fair value, which revaluations are not considered indicative of our core operating performance.(7) Relates to net realized and unrealized losses (gains) resulting from the impact of exchange rate changes on transactions denominated in non-functional currencies, which are not considered indicative of our core operating performance. (8) Relates to severance-related payments made to terminated employees as a result of a reduction in employee headcount and the departure of certain members of our leadership team, which are not considered indicative of our core operating performance.(9) Relates to the revaluation of warrants issued in connection with the 2021 transaction pursuant to which Horizon Acquisition Corporation merged with and into us that entitled Hoya Topco, LLC to purchase common units of Hoya Intermediate, LLC, which revaluations are not considered indicative of our core operating performance.(10) Relates to losses incurred in connection with the extinguishment of our former first lien term loan, which are not considered indicative of our core operating performance.(11) Relates to the remeasurement and settlement of the TRA liability, which remeasurements and settlements are not considered indicative of our core operating performance.(12) Relates to non-cash impairment charges related to our goodwill and certain indefinite-lived intangible assets triggered by the effects of recent declines in our financial performance, near-term outlook, and Class A common stock price, among other factors.

Original source text

COCONUT CREEK, Fla., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced its financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights (All metrics compared to second quarter 2025, except where noted)

Income from operations of $34.0 million, an increase of 20.2%Quarterly lease rent revenue of $77.1 million, an increase of 6.7%Quarterly core lease rent and maintenance reserve revenues were $123.6 million in the aggregate, up 0.5%Gain on sale of leased equipment of $32.0 million, an increase of 16.2%Net income attributable to common shareholders of $28.7 millionAdjusted EBITDA of $120.7 million, an increase of 4.0%Grew assets under management, including on our balance sheet and Willis Aviation Capital businesses, to $4.4 billion
“The first half of the year was focused on establishing and building Willis Aviation Capital,” said Austin C. Willis, Chief Executive Officer of WLFC, “with total AUM growth of 21% year over year, we have delivered.”

Second Quarter 2026 Operating Results

Lease rent revenue increased by $4.9 million, or 6.7%, to $77.1 million in the three months ended June 30, 2026 from $72.3 million for the three months ended June 30, 2025. The increase is due to an increase in the average size of the portfolio as compared to that of the prior year period.

During the second quarter of 2026, the Company recognized $7.5 million of long-term maintenance revenue, compared to $0.5 million for the quarter ended June 30, 2025. Long-term maintenance is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet.

For the quarter ended June 30, 2026, the gain on sale of leased equipment was $32.0 million, reflecting the sale of 21 engines and other parts and equipment from the lease portfolio. During the three months ended June 30, 2025, the Company sold 14 engines, two airframes, and other parts and equipment for a net gain of $27.6 million.

In March 2026, the Company’s investment fund partnership with Liberty Mutual Investments commenced operations, followed by the commencement of the Company’s investment fund partnership with Blackstone Credit & Insurance in April 2026.

The book value of lease assets owned either directly or through WLFC’s joint ventures, inclusive of the Company’s equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases was $3,721.6 million as of June 30, 2026.

The value of our assets under management, inclusive of the book value of WLFC’s on-balance sheet assets as well as leased assets in our joint ventures, third-party managed assets, and managed fund portfolios was $4.4 billion as of June 30, 2026.

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA

We analyze our financial data to evaluate the health of our business and assess our performance. As appropriate, in addition to income or loss from operations under GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to evaluate our business. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance as it excludes certain items that may not be indicative of our recurring operating results. We also believe that investors, in addition to management, benefit from referring to this non-GAAP financial measure in assessing our performance, when viewed together with our GAAP results. While items excluded from Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluating performance, it can be useful to exclude such items as they can vary significantly between periods and or not be indicative of current or future operating results.

Because non-GAAP financial measures are not standardized, our calculation of Adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by other companies. This non-GAAP financial measure should not be considered in insolation from, or as a substitute for, financial information performed in accordance with GAAP.

We define Adjusted EBITDA as net income attributable to common shareholders, excluding (i) income tax expense, (ii) interest expense, (iii) preferred stock dividends/costs, (iv) loss on debt extinguishment, (v) depreciation and amortization expense, (vi) stock compensation expense, (vii) write-down of equipment, (viii) acquisition, financing and divestitures related expenses, and (ix) other items not indicative of our ongoing operating performance.

Adjusted EBITDA was approximately $120.7 million and $116.1 million for the three months ended June 30, 2026 and 2025, respectively, and $244.6 million and $219.4 million for the six months ended June 30, 2026 and 2025, respectively. See below for the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income attributable to common shareholders.

Three months ended June 30, Six months ended June 30,  2026   2025   2026   2025  (in thousands)Net income attributable to common shareholders$28,745  $58,955  $52,406  $74,431 Add: Income tax expense 7,828   13,920   19,583   22,305 Add: Interest expense 29,689   33,569   62,322   65,663 Add: Preferred stock dividends/costs 1,423   1,422   2,845   2,815 Add: Loss on debt extinguishment 5,421   —   12,448   — Add: Depreciation and amortization expense 29,068   27,550   59,246   52,574 Add: Stock compensation expense 12,703   16,751   26,455   23,658 Add: Write-down of equipment 4,910   11,458   6,059   13,567 Add: Acquisition, financing and divestitures related expenses 2,560   662   4,802   828 Less: Other (1) (1,610)  (48,226)  (1,581)  (36,449)Adjusted EBITDA$120,737  $116,061  $244,585  $219,392 ________________________________________________________

During the three and six months ended June 30, 2026, the Company recognized non-recurring project expenses of $(1.6) million and $(1.6) million, respectively, related to its sustainable aviation fuel project. The negative expense recognized during the three-month and six-month periods reflect government grant proceeds recognized in the second quarter of 2026. During the three and six months ended June 30, 2025, the Company recognized non-recurring project expenses of $(5.3) million and $6.5 million, respectively, related to its sustainable aviation fuel project, for which the Company subsequently decided to cease further investment. The negative expense recognized during the three-month period reflects government grant proceeds received in the second quarter of 2025. Additionally, during the three and six months ended June 30, 2025, the Company recognized $43.0 million in relation to the gain on sale of the BAML business.
Balance Sheet

As of June 30, 2026, the Company’s lease portfolio was $2,956.3 million, consisting of $2,783.4 million of equipment held in its operating lease portfolio, $89.3 million of notes receivable, and $83.6 million of maintenance rights, which represented 334 engines, 22 aircraft, one marine vessel, and other leased parts and equipment. As of December 31, 2025, the Company’s lease portfolio was $2,988.9 million, consisting of $2,801.7 million of equipment held in its operating lease portfolio, $139.9 million of notes receivable, $30.6 million of maintenance rights, and $16.6 million of investments in sales-type leases, which represented 363 engines, 20 aircraft, one marine vessel, and other leased parts and equipment.

Conference Call

WLFC will hold a conference call led by the executive management team today at 10:00 a.m. Eastern Time to discuss its second quarter 2026 results.

To participate in the conference call, please use the following dial-in numbers:

U.S. and Canada: +1 (800) 330-6730
International: +1 786 297 8585
Conference ID: 7661930
Participant Passcode: 442978

The conference call may also be accessed by registering via the following link:
https://event.webcasts.com/starthere.jsp?ei=1759374&tp_key=c0ab3b632b.

A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit the Investor Relations sections of our website at https://www.wlfc.global/investor-center.

About Willis Lease Finance Corporation

Willis Lease Finance Corporation (WLFC) leases large and regional spare commercial aircraft engines and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO, and ground and cargo handling services.

Forward-Looking Statements

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. By their nature, forward-looking statements involve a number of inherent risks, uncertainties and assumptions and are subject to change in circumstances that are difficult to predict and many of which are outside of our control. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. Our actual results may differ materially from the results discussed, either expressly or implicitly, in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and natural disasters; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors, as well as the impact of new or increased tariffs; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)

Three months ended
June 30,   Six months ended
June 30,   2026  2025 % Change  2026  2025 % ChangeREVENUE           Lease rent revenue$77,137 $72,268 6.7% $154,522 $140,007 10.4%Maintenance reserve revenue 46,456  50,743 (8.4)%  101,968  105,602 (3.4)%Spare parts and equipment sales 21,180  30,354 (30.2)%  42,867  48,594 (11.8)%Interest revenue 1,183  3,649 (67.6)%  3,971  7,583 (47.6)%Gain on sale of leased equipment 32,038  27,582 16.2%  49,997  32,019 56.1%Gain on sale of financial assets 154  — nm  592  378 56.6%Maintenance services revenue 8,983  8,031 11.9%  18,752  13,617 37.7%Management and advisory fees 5,524  2,588 113.4%  13,419  4,551 194.9%Other revenue 1,362  287 374.6%  2,275  883 157.6%Total revenue 194,017  195,502 (0.8)%  388,363  353,234 9.9%            EXPENSES           Depreciation and amortization expense 29,068  27,550 5.5%  59,246  52,574 12.7%Cost of spare parts and equipment sales 15,097  28,102 (46.3)%  29,514  43,425 (32.0)%Cost of maintenance services 10,350  8,621 20.1%  19,210  13,950 37.7%Write-down of equipment 4,910  11,458 (57.1)%  6,059  13,567 (55.3)%General and administrative 55,559  50,429 10.2%  112,163  98,149 14.3%Technical expense 9,947  7,508 32.5%  19,635  13,738 42.9%Net finance costs:           Interest expense 29,689  33,569 (11.6)%  62,322  65,663 (5.1)%Loss on debt extinguishment 5,421  — nm  12,448  — nmTotal net finance costs 35,110  33,569 4.6%  74,770  65,663 13.9%Total expenses 160,041  167,237 (4.3)%  320,597  301,066 6.5%            Income from operations 33,976  28,265 20.2%  67,766  52,168 29.9%Gain on sale of business —  42,950 (100.0)%  —  42,950 (100.0)%Income from investments 4,172  3,082 35.4%  7,220  4,433 62.9%Income before income taxes 38,148  74,297 (48.7)%  74,986  99,551 (24.7)%Income tax expense 7,828  13,920 (43.8)%  19,583  22,305 (12.2)%Net income 30,320  60,377 (49.8)%  55,403  77,246 (28.3)%Net income attributable to noncontrolling interests 152  — nm  152  — nmNet income attributable to WLFC 30,168  60,377 (50.0)%  55,251  77,246 (28.5)%Preferred stock dividends 1,353  1,353 —%  2,706  2,676 1.1%Accretion of preferred stock issuance costs 70  69 1.4%  139  139 —%Net income attributable to common shareholders$28,745 $58,955 (51.2)% $52,406 $74,431 (29.6)%            Basic weighted average income per common share$1.36 $2.89   $2.53 $3.70  Diluted weighted average income per common share$1.31 $2.81   $2.39 $3.55              Basic weighted average common shares outstanding 21,127  20,367    20,733  20,094  Diluted weighted average common shares outstanding 22,013  20,970    21,885  20,985   Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)

  June 30, 2026 December 31, 2025ASSETS    Cash and cash equivalents $10,725 $16,441 Restricted cash  161,497  530,500 Equipment held for operating lease, less accumulated depreciation  2,783,382  2,801,683 Maintenance rights  83,632  30,632 Equipment held for sale  77,002  20,509 Receivables, net  41,365  35,717 Spare parts inventory  51,402  56,577 Investments  152,148  104,250 Property, equipment & furnishings, less accumulated depreciation  76,904  73,835 Intangible assets, net  8,295  271 Notes receivable, net  89,279  139,945 Investments in sales-type leases, net  —  16,595 Due from affiliates  3,188  — Other assets  114,357  109,360 Total assets $3,653,176 $3,936,315      LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY    Liabilities:    Accounts payable and accrued expenses $103,306 $105,706 Deferred income taxes  264,773  228,547 Debt obligations  2,320,904  2,700,338 Maintenance reserves  129,261  116,185 Security deposits  24,537  24,651 Unearned revenue  35,112  35,350 Due to affiliates  1,407  — Total liabilities  2,879,300  3,210,777      Redeemable preferred stock ($0.01 par value)  63,540  63,401      Shareholders’ equity:    Common stock ($0.01 par value)  228  229 Paid-in capital in excess of par  71,274  72,510 Retained earnings  637,033  590,785 Accumulated other comprehensive income (loss), net of income tax expense (benefit)  61  (1,387)Total Willis Lease Finance Corporation shareholders’ equity  708,596  662,137 Noncontrolling interests  1,740  — Total equity  710,336  662,137 Total liabilities, redeemable preferred stock and equity $3,653,176 $3,936,315 CONTACT:Scott B. Flaherty Executive Vice President & Chief Financial Officer 561.413.0112

Original source text

Apple has launched a fresh legal challenge against a U.K. government attempt to access encrypted data held by British customers.

The move comes a year on from the previous dispute between the two over a request from the U.K.'s Home Office for both British and American customer data. That order was dropped by the U.K. after interventions from U.S. President Donald Trump and Vice President JD Vance.

Apple confirmed the filing of the legal challenge to CNBC, but declined to comment further. The Home Office said it does not comment on legal proceedings or operational matters, including confirming or denying the existence of individual notices.

"The UK supports strong encryption and robust privacy protections, but it is also vital that law enforcement can access communications when necessary and proportionate to protect the public from terrorism, serious crime, and child sexual abuse," a Home Office spokesperson told CNBC.

"The Investigatory Powers Act is world-leading legislation that helps keep people safe while protecting privacy through strong safeguards and independent judicial oversight."

'Transatlantic row'Britain's Home Office, which handles immigration and security, in early 2025 issued an order to Apple requiring a technical "backdoor" that would allow officials to view fully encrypted material uploaded to the cloud software.

Former U.S. Director of National Intelligence Tulsi Gabbard said in August last year that the U.K. had dropped the request after interventions from Trump and Vance.

But the Home Office demanded in September that Apple provide access to British citizens' encrypted data, the Financial Times reported.

Read more

After the initial request from the U.K. government, Apple disabled its Advanced Data Protection (ADP) in the U.K. to new users. Current U.K. users will eventually need to disable this security feature, the company said in a statement in September.

"We are gravely disappointed that the protections provided by ADP are not available to our customers in the UK given the continuing rise of data breaches and other threats to customer privacy," Apple said at the time. "As we have said many times before, we have never built a backdoor or master key to any of our products or services and we never will."

"The original demand caused a transatlantic row because it extended to American users," Andrew Fremlin-Key, partner at law firm Withers, specialising in media, reputation and information disputes, told CNBC.

"Restricting the new notice to British users may reduce that conflict, but it is unlikely to eliminate US concerns about a foreign government requiring an American company to weaken the security of its technology."

Original source text

Executives from America's largest artificial intelligence companies arrive at the White House on Tuesday to see, for the first time, how the government intends to inspect their most powerful models before release.

The staff-level meeting is being convened by the Office of the National Cyber Director and is expected to draw representatives from Anthropic, OpenAI, Alphabet Inc's (NASDAQ:GOOG) Google and Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB).

On the table is a framework, now complete, that sets out how officials will assess whether frontier models can find and exploit software vulnerabilities.

The summit emanated from an executive order by Donald Trump signed on 2 June, and participation is voluntary. The presidential edict explicitly bars the process from being turned into a licensing, permitting or preclearance regime.

That said, developers could hand the government access to qualifying models for up to 30 days before releasing them to other trusted partners.

The Treasury, the National Security Agency and the Cybersecurity and Infrastructure Security Agency were told to build a classified benchmarking process for the tests.

Expect few of the details to become public. Both the benchmarking methodology and the capability threshold that determines which models get caught are classified, and will be shared with developers only as officials see fit.

The bigger questions companies want answered are definitional. The administration has not said how it will define a frontier model, whether open-weight systems that users can download and modify will be covered, or which arm of government will actually run the review.

No single official or office has been designated to handle outreach to the industry, though national cyber director Sean Cairncross, Treasury secretary Scott Bessent and commerce secretary Howard Lutnick have been driving the initiative.

Firms with models already in the pipeline want to know quickly whether those releases will be subject to the new process.

The meeting follows a bruising few weeks for relations between Washington and the labs.

Export controls briefly curtailed Anthropic's release of Fable 5, and the administration later asked OpenAI to stagger the rollout of GPT-5.6 to a limited set of government-approved partners.

The security case has meanwhile been made for the government by the industry's own disclosures.

OpenAI revealed last month that an experimental agent escaped its restricted testing environment and compromised Hugging Face's systems while hunting for answers to a cybersecurity evaluation.

Anthropic withheld Mythos, a model capable of unearthing software vulnerabilities, from public release.

On 28 July, more than 1,100 employees of the four companies signed an open letter titled Pacing the Frontier, asking Washington to help build international tools for slowing frontier development if it outruns human oversight.

OpenAI and Anthropic endorsed it as companies within a day.

Original source text

President Trump's investment accounts made over 6,200 stock trades year to date through May, according to financial disclosures filed with U.S. Office of Government Ethics. Those accounts are managed by third-party advisors, meaning Trump was not responsible for any decision, but it's still interesting to explore where his money is invested.

This year, Trump bought shares of Alphabet (GOOGL +4.88%) (GOOG +4.44%), with net purchases totaling $1.7 million to $3.6 million through May. He also increased his stake in Meta Platforms (META +6.02%), with net purchases totaling $845,000 to $4.8 million over the same period.

Alphabet and Meta Platforms sit at the center of the artificial intelligence infrastructure build-out, and most Wall Street analysts believe the stocks are undervalued. Here are the important details.

President Donald J. Trump speaks on the phone in the Oval Office. Image source: Official White House Photo by Joyce N. Boghosian.

Alphabet: 20% upside implied by Wall Street's median target price Alphabet reported strong second-quarter financial results that beat estimates on the top and bottom lines. Revenue increased 24% to $119.7 billion, the sixth consecutive acceleration, driven by 82% sales growth in the cloud computing segment. Operating income (which excludes unrealized gains on its investment in SpaceX) increased 30% to $40.7 billion.

Alphabet shares have added 4% since the report, but the stock still looks very attractive at 18 times earnings. That is a massive discount to the five-year average of 24 times earnings, and the company has compelling growth prospects due to its full-stack approach to artificial intelligence (AI), which spans custom chips, cloud services, models, enterprise tools, and consumer applications.

On the earnings call, CEO Sundar Pichai highlighted momentum in each product category: Nearly 90% of Fortune 100 companies use Gemini Enterprise, a platform that helps businesses build AI agents and automate workflows. More than 9 million developers are building on the company's Gemini models each month. And Google Search engagement is trending higher due to AI Overviews and AI Mode.

Pichai also mentioned strong demand for custom AI chips called Tensor Processing Units (TPUs), the most popular alternative to Nvidia GPUs. Alphabet rents these chips to cloud computing customers, but it recently began selling TPUs directly to certain clients for use in external data centers. That shift positions Alphabet as a more direct competitor with Nvidia.

Wall Street estimates that Alphabet's earnings will increase at 14% annually over the next three years. That makes the current valuation of 17.9 times earnings look reasonable. In fact, most Wall Street analysts think the stock is undervalued. The median target price of $425 per share implies 20% upside from the current share price of $355.

Meta Platforms: 39% upside implied by Wall Street's median target price Meta Platforms delivered mixed financial results in the second quarter, beating analysts' consensus estimate on the top line but missing on the bottom line. Revenue increased 28% to $60.8 billion, but operating margin dropped 12 percentage points, and net income fell 13% to $6.18 per diluted share.

A combination of legal fees, severance costs, and heavy spending on AI infrastructure crushed margins and reduced earnings. That caused the stock to drop 10%. But there are silver linings. The expenditures related to lawsuits and headcount reductions were one-time charges, and investments in AI infrastructure lay the foundation for strong future growth.

"We are now at a point where our investments in AI are accelerating every major part of our core business," CEO Mark Zuckerberg told analysts. "They're improving the experience for people using our apps, driving better performance for advertisers, and helping our teams build new experiences and ship faster."

Zuckerberg also shed light on how Meta will monetize AI products in the future. "We're developing new personal agents that will be the foundation of our next wave of products." He noted the recent launch of Meta Business Agent, which answers questions and automates employee workflows. Meta is also exploring renting out excess data center capacity directly to customers through a new cloud computing division.

Wall Street expects Meta's earnings to grow at 21% annually over the next three years. That makes the current valuation of 21 times earnings look cheap. Indeed, among 71 analysts, Meta has a median target price of $770 per share. That implies 39% upside from the current share price of $554.

Original source text

Sales Growth Reflects Continued Strength in Oncology, Including Initial Uptake of KEYTRUDA QLEX, and Animal Health, Plus Contributions From Launches Such as WINREVAIR

Financial Highlights

Total Worldwide Sales Were $16.6 Billion (5% Growth; 4% Growth ex-FX) KEYTRUDA/KEYTRUDA QLEX1 Sales Were $8.4 Billion (5% Growth; 4% Growth ex-FX); Includes KEYTRUDA QLEX Sales of $463 Million WINREVAIR Sales Were $588 Million (75% Growth; 75% Growth ex-FX) Animal Health Sales Were $1.8 Billion (8% Growth; 5% Growth ex-FX) GAAP Loss per Share Was $0.54; Non-GAAP Loss per Share Was $0.13; GAAP and Non-GAAP Loss per Share Include a Charge of $2.31 per Share for the Acquisition of Terns Pipeline & Portfolio Highlights

Received U.S. FDA Approval for LIPFENDRA (enlicitide), the First and Only Once-Daily Oral PCSK9 Inhibitor To Reduce LDL-C in Adults With Hypercholesterolemia Announced Positive Data From TroFuse-005 Trial Evaluating Sacituzumab Tirumotecan (sac-TMT) in Certain Patients With Advanced or Recurrent Endometrial Cancer Announced Positive Phase 3 Results From Once-Weekly Investigational Oral HIV Treatment Regimen of Islatravir and Lenacapavir, in Collaboration With Gilead Full-Year 2026 Financial Outlook

Narrows and Raises Expected Worldwide Sales Range To Be Between $66.3 Billion and $67.3 Billion Now Expects Non-GAAP EPS To Be Between $2.66 and $2.76; Outlook Includes Charges of $2.43 per Share for the Acquisition of Terns, Comprised of a One-Time Charge of $2.31 per Share as Well as Costs of Approximately $0.12 per Share To Finance the Acquisition and Advance MK-4208 (Formerly TERN-701) RAHWAY, N.J.--(BUSINESS WIRE)--Merck & Co., Inc., Rahway, N.J., USA (NYSE: MRK), known as MSD outside the United States and Canada, today announced financial results for the second quarter of 2026.

“We continued to make substantial progress across our business this quarter, driven by strong execution and growing contributions from new product launches,” said Robert M. Davis, chairman and chief executive officer. “The FDA approval of LIPFENDRA is an exciting moment for our company and for patients, marking the latest milestone in our nearly 70-year legacy in cardiovascular disease. Together with key regulatory and clinical advances across oncology, HIV and immunology, this achievement reflects the strength of our pipeline and portfolio transformation as we bring forward the next wave of innovation. I am confident in the ongoing execution of our strategy as we deliver for patients and further enhance our long-term growth trajectory.”

Financial Summary

$ in millions, except EPS amounts

Second Quarter

2026

2025

Change

Change Ex-

Exchange

Sales

$16,607

$15,806

5%

4%

GAAP net (loss) income2

(1,335)

4,427

N/M

N/M

Non-GAAP net (loss) income that excludes certain items2,3*

(330)

5,366

N/M

N/M

GAAP EPS

(0.54)

1.76

N/M

N/M

Non-GAAP EPS that excludes certain items3*

(0.13)

2.13

N/M

N/M

*Refer to table on page 7.

N/M - Not meaningful

For the second quarter of 2026, Generally Accepted Accounting Principles (GAAP) loss / earnings per share (EPS) assuming dilution was a loss per share of $0.54 and non-GAAP loss per share was $0.13. Both the GAAP and non-GAAP loss per share were due to a charge for the acquisition of Terns Pharmaceuticals, Inc. (Terns) of $2.31 per share. Both GAAP and non-GAAP EPS in the second quarter of 2025 include a charge of $0.07 per share for an upfront payment related to a license agreement with Jiangsu Hengrui Pharmaceutical Co., Ltd. (Hengrui Pharma).

Non-GAAP EPS excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities. Non-GAAP EPS in the second quarter of 2025 also excludes tax benefits primarily resulting from favorable audit reserve adjustments.

Year-to-date results can be found in the attached tables.

Second-Quarter Sales Performance
The following table reflects sales of the Company’s top products and significant performance drivers.

Second Quarter

$ in millions

2026

2025

Change

Change Ex-Exchange

Commentary

Total Sales

$16,607

$15,806

5%

4%

Pharmaceutical

14,760

14,050

5%

4%

Increase primarily driven by growth in oncology as well as cardiometabolic and respiratory, partially offset by a decline in diabetes.

KEYTRUDA/
KEYTRUDA QLEX

8,366

7,956

5%

4%

Growth primarily driven by strong global uptake in earlier-stage indications, including triple-negative breast cancer (TNBC), cervical cancer, head and neck cancer and bladder cancer, as well as higher global demand in metastatic indications, including urothelial cancer. Sales of KEYTRUDA QLEX were $463 million.

GARDASIL/
GARDASIL 9

1,169

1,126

4%

3%

Increase primarily due to higher demand in Asia Pacific and Europe, as well as favorable timing of tenders in Europe, partially offset by lower demand in certain other international markets.

PROQUAD, M-M-R II and VARIVAX

592

609

-3%

-3%

Decrease primarily reflects lower demand in the U.S., partially offset by higher net pricing in the U.S., higher demand in Europe and favorable private-sector purchasing patterns for M-M-R II in the U.S.

WINREVAIR

588

336

75%

75%

Growth primarily reflects continued uptake in the U.S. and early launch uptake in certain international markets, particularly in Japan and Europe.

BRIDION

497

461

8%

8%

Growth primarily due to higher demand and net pricing in the U.S.

JANUVIA/JANUMET

429

623

-31%

-31%

Decline primarily due to lower demand and net pricing in the U.S. due to competition, as well as lower demand in China and most other international markets due to ongoing generic competition.

Lynparza*

365

370

-1%

-2%

Relatively flat compared with prior year.

PREVYMIS

295

228

29%

28%

Increase primarily due to higher demand in the U.S. and certain European markets, reflecting in part the launch of new indications.

Lenvima*

283

265

7%

6%

Growth primarily due to higher demand in the U.S., partially offset by lower net pricing.

WELIREG

271

162

67%

67%

Growth primarily driven by higher demand in the U.S. and continued launch uptake in several international markets, particularly in Japan, as well as favorable wholesaler purchasing patterns in the U.S.

OHTUVAYRE

204

-

-

-

Product obtained as part of the Company’s October 2025 acquisition of Verona Pharma plc. Includes a benefit from the timing of specialty pharmacy purchases in the U.S.

CAPVAXIVE

184

129

42%

40%

Increase primarily driven by launch uptake in several international markets, particularly in Asia Pacific and Europe, as well as in the U.S.

VAXNEUVANCE

148

229

-35%

-36%

Decline primarily due to favorable prior period public-sector activity in the U.S., which increased sales in that period, as well as lower demand in the U.S. and in most international markets in the current period due to competitive pressure.

LAGEVRIO

5

83

-95%

-95%

Decline largely due to lower demand in Japan and the U.S.

Animal Health

1,775

1,646

8%

5%

Growth attributable to both Livestock and Companion Animal product portfolios.

Livestock

1,041

961

8%

6%

Growth primarily driven by higher demand for ruminant and poultry products.

Companion Animal

734

685

7%

5%

Growth primarily due to new product launches. Sales of BRAVECTO line of products were $359 million and $335 million in the current and prior-year quarters, respectively, which represents an increase of 7%, or 4% excluding impact of foreign exchange.

Other Revenues**

72

110

-35%

-34%

Decline primarily due to lower revenue from third-party manufacturing arrangements.

*Alliance revenue for this product represents the Company’s share of profits, which are product sales net of cost of sales and commercialization costs.

**Other revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities.

Second-Quarter Expense and Related Information
The table below presents selected expense information.

$ in millions

GAAP

Acquisition-
and
Divestiture-
Related Costs4

Restructuring
Costs

(Income)
Loss From
Investments
in Equity
Securities

Non-
GAAP3

Second Quarter 2026

Cost of sales

$4,395

$1,067

$184

$-

$3,144

Selling, general and administrative

2,904

17

-

-

2,887

Research and development

9,741

6

(1)

-

9,736

Restructuring costs

151

-

151

-

-

Other (income) expense, net

99

-

-

(191)

290

Second Quarter 2025

Cost of sales

$3,557

$576

$165

$-

$2,816

Selling, general and administrative

2,649

15

1

-

2,633

Research and development

4,048

3

53

-

3,992

Restructuring costs

560

-

560

-

-

Other (income) expense, net

(7)

-

-

(61)

54

GAAP Expense, EPS and Related Information
Gross margin was 73.5% for the second quarter of 2026 compared with 77.5% for the second quarter of 2025. The decrease was primarily due to higher amortization of intangible assets and inventory write-downs.

Selling, general and administrative (SG&A) expenses were $2.9 billion in the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The increase was primarily due to higher administrative costs (including investments in IT), as well as higher promotional costs in support of product launches.

Research and development (R&D) expenses were $9.7 billion in the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a $5.7 billion charge for the acquisition of Terns and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone Life Sciences (Blackstone). R&D expenses in the second quarter of 2025 include a $200 million charge for an upfront payment related to a license agreement with Hengrui Pharma.

Other (income) expense, net, was $99 million of expense in the second quarter of 2026 compared with $7 million of income in the second quarter of 2025. The unfavorability was primarily due to higher net interest expense, partially offset by higher net income from investments in equity securities.

The income tax provision for the second quarter of 2026 was $654 million on a pretax loss of $683 million, resulting in an effective income tax rate of (95.9)%. This effective income tax rate includes a 108.9 percentage point unfavorable impact of the charge for the acquisition of Terns, for which no tax benefit was recorded.

GAAP loss per share was $0.54 for the second quarter of 2026 compared with earnings per share of $1.76 for the second quarter of 2025, largely due to higher charges for business development transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma.

Non-GAAP Expense, EPS and Related Information
Non-GAAP gross margin was 81.1% for the second quarter of 2026 compared with 82.2% for the second quarter of 2025. The decrease was primarily due to higher inventory write-downs.

Non-GAAP SG&A expenses were $2.9 billion in the second quarter of 2026, an increase of 10% compared with the second quarter of 2025. The increase was primarily due to higher administrative costs (including investments in IT), as well as higher promotional costs in support of product launches.

Non-GAAP R&D expenses were $9.7 billion in the second quarter of 2026 compared with $4.0 billion in the second quarter of 2025. The increase was largely due to a $5.7 billion charge for the acquisition of Terns and higher clinical development spending, partially offset by a $200 million reduction in R&D expenses as part of a funding agreement with Blackstone. R&D expenses in the second quarter of 2025 include a $200 million charge for an upfront payment related to a license agreement with Hengrui Pharma.

Non-GAAP other (income) expense, net, was $290 million of expense in the second quarter of 2026 compared with $54 million of expense in the second quarter of 2025. The unfavorability was primarily due to higher net interest expense.

The non-GAAP income tax provision for the second quarter of 2026 was $882 million on pretax income of $550 million, resulting in a non-GAAP effective income tax rate of 160.3%. This effective income tax rate includes a 146.2 percentage point unfavorable impact of the charge for the acquisition of Terns, for which no tax benefit was recorded.

Non-GAAP loss per share was $0.13 for the second quarter of 2026 compared with earnings per share of $2.13 for the second quarter of 2025, largely due to higher charges for business development transactions, reflecting a $2.31 per share charge in the second quarter of 2026 for the acquisition of Terns compared with a $0.07 per share charge in the second quarter of 2025 related to a license agreement with Hengrui Pharma.

A reconciliation of GAAP to non-GAAP net (loss) income and EPS is provided in the table that follows.

Second Quarter

$ in millions, except EPS amounts

2026

2025

EPS

GAAP EPS

$(0.54)

$1.76

Difference

0.41

0.37

Non-GAAP EPS that excludes items listed below3

$(0.13)

$2.13

Net (Loss) Income

GAAP net (loss) income2

$(1,335)

$4,427

Difference

1,005

939

Non-GAAP net (loss) income that excludes items listed below2,3

$(330)

$5,366

Excluded Items:

Acquisition- and divestiture-related costs4

$1,090

$594

Restructuring costs

334

779

Income from investments in equity securities

(191)

(61)

Increase to net loss / decrease to net income before taxes

1,233

1,312

Estimated income tax benefit5

(228)

(373)

Increase to net loss / decrease to net income

$1,005

$939

Pipeline and Portfolio Highlights

In the second quarter, the Company achieved key regulatory milestones across the portfolio while continuing to advance its broad and diverse pipeline.

Oncology: U.S. Food and Drug Administration (FDA) approved KEYTRUDA and KEYTRUDA QLEX, each with WELIREG, for the adjuvant treatment of certain patients with clear cell renal cell carcinoma (ccRCC), based on Phase 3 LITESPARK-022 trial. Approvals represent first approved combination of a PD-1 and hypoxia-inducible factor-2 alpha inhibitor for these patients. In July, FDA approved expanded use of KEYTRUDA and KEYTRUDA QLEX, each with Padcev, as treatment before and after surgery for adult patients with muscle-invasive bladder cancer (MIBC), including cisplatin eligible patients based on Phase 3 KEYNOTE-B15 trial; the expansion builds upon prior approval of this regimen for cisplatin ineligible patients based on Phase 3 KEYNOTE-905 trial. FDA approved KEYTRUDA and KEYTRUDA QLEX, each with Trodelvy, for the first-line treatment of PD-L1 positive (Combined Positive Score [CPS] ≥10) advanced TNBC, based on Phase 3 KEYNOTE-D19/ASCENT-04 trial. FDA granted Breakthrough Therapy designation (BTD) for calderasib (MK-1084), an investigational oral specific KRAS G12C inhibitor, in combination with KEYTRUDA, for the first-line treatment of patients with advanced or metastatic non-small cell lung cancer (NSCLC) with KRAS G12C-mutation and expressing PD-L1 (tumor proportion score [TPS] ≥1%). Announced that Phase 3 TroFuse-005 trial evaluating sac-TMT, an investigational anti-TROP2 antibody-drug conjugate (ADC) being developed in collaboration with Kelun-Biotech, met its primary endpoints of overall survival (OS) and progression-free survival (PFS) in patients with advanced or recurrent endometrial cancer who have progressed after platinum-based chemotherapy and anti-PD-1/L1 immunotherapy. First Phase 3 results from the Company’s broad sac-TMT clinical development program, which includes 17 ongoing global Phase 3 trials across multiple tumor types. At the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting, new research was presented across over 25 types of cancer, reinforcing long-term impact of KEYTRUDA and momentum in the Company’s rapidly advancing oncology pipeline, including: Five-year follow-up data from Phase 2b KEYNOTE-942 trial, in collaboration with Moderna, underscoring continued potential of intismeran autogene (mRNA-4157/V940) in combination with KEYTRUDA for patients with stage III/IV melanoma following complete resection. Data from Phase 3 OptiTROP-Lung05 trial, led by Kelun-Biotech, evaluating sac-TMT plus KEYTRUDA in China, adding to ongoing research of novel treatment approaches for patients with NSCLC. Results from final analysis of KEYNOTE-522 evaluating KEYTRUDA in combination with chemotherapy, reporting a continued survival benefit for patients with high-risk early-stage TNBC. Vaccines and Infectious Diseases: In July, presented new data for daily and weekly options across HIV treatment and prevention pipeline at 26th International AIDS Conference (AIDS 2026). Hosted HIV investor event to highlight these data. In collaboration with Gilead, presented first Phase 3 results for islatravir/lenacapavir (ISL/LEN), an investigational oral once-weekly single-tablet HIV treatment regimen, which maintained virological suppression in adults with HIV who switched antiretroviral therapy. ISL/LEN has the potential to be the first approved oral, once-weekly HIV treatment. Presented first results from a Phase 2b study evaluating switch to investigational once-weekly oral islatravir and ulonivirine (ISL/ULO) in adults with virologically suppressed HIV-1. Received regulatory approvals in Japan and China for ENFLONSIA for the prevention of RSV lower respiratory tract disease in newborns and infants who are born during or entering their first RSV season. Cardiometabolic and Respiratory: In July, FDA approved LIPFENDRA (enlicitide), the first and only once-daily oral PCSK9 inhibitor, as an adjunct to diet and exercise, to reduce LDL-C in adults with hypercholesterolemia, based on two Phase 3 trials from the CORALreef clinical program: CORALreef Lipids and CORALreef HeFH. At week 24, LIPFENDRA significantly reduced LDL-C by a placebo-adjusted 56% and 59%, respectively. Immunology: Announced positive topline results from Phase 3 ATLAS-UC induction-only study (Study 2) evaluating tulisokibart (MK-7240), an investigational humanized monoclonal antibody targeting tumor necrosis factor-like cytokine 1A (TL1A), in patients with moderately to severely active ulcerative colitis (UC). Initial topline results from primary analyses of two Phase 2 studies evaluating tulisokibart: In hidradenitis suppurativa (HS), the study met its primary and key secondary endpoints. Full results will be shared at an upcoming medical meeting. In systemic sclerosis-associated interstitial lung disease (SSc-ILD), the study did not meet its primary endpoint and will be discontinued. No new safety concerns were identified. Business Development: Completed acquisition of Terns for $6.8 billion. Added MK-4208, a novel investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor recently granted BTD by the FDA for the treatment of certain adults with Philadelphia chromosome-positive chronic myeloid leukemia. Notable recent news releases on the Company’s pipeline and portfolio are provided in the table that follows. Visit the News Releases section of the Company’s website to read the releases.*

Oncology

FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With WELIREG, for Adjuvant Treatment of Certain Patients With ccRCC; Based on Results From Phase 3 LITESPARK-022 Trial

FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With Padcev, as Treatment Before and After Surgery for Adults With MIBC; Based on Results From Phase 3 KEYNOTE-B15 Trial, Combined With Previous Approvals Based on Phase 3 KEYNOTE-905 Trial

FDA Approved KEYTRUDA and KEYTRUDA QLEX, Each With Trodelvy, as First-Line Treatment of PD-L1+ Advanced TNBC; Based on Results From Phase 3 KEYNOTE-D19/ASCENT-04 Trial

European Commission Approved KEYTRUDA Plus Padcev as First PD-1 Inhibitor Plus ADC Regimen for Adults With Cisplatin-Ineligible Resectable MIBC; Based on Results From Phase 3 KEYNOTE-905 Trial

FDA Granted BTD for Calderasib (MK-1084), an Investigational KRAS G12C Inhibitor, for Certain Patients With Newly Diagnosed Metastatic KRAS G12C-Mutant NSCLC

The Company Announced TroFuse-005 Trial Evaluating Sac-TMT Met Primary Endpoints of OS and PFS in Certain Patients With Advanced or Recurrent Endometrial Cancer

The Company and Moderna Presented 5-Year Data for Intismeran Autogene in Combination With KEYTRUDA in Patients With High-Risk Stage III/IV Melanoma Following Complete Resection at ASCO 2026

KEYTRUDA as Monotherapy Significantly Improved PFS in Certain Patients With Advanced or Recurrent Endometrial Cancer With Mismatch Repair Deficient Tumors Compared to Chemotherapy; Results From Phase 3 KEYNOTE-C93 Trial

The Company Highlighted New Long-Term Data and Advancements Across Broad Oncology Portfolio and Pipeline Research at ASCO 2026

The Company Completed Acquisition of Terns

Vaccines and
Infectious Diseases

The Company, in Collaboration With Gilead, Announced That the Once-Weekly Investigational Oral HIV Treatment Regimen of Islatravir and Lenacapavir (ISL/LEN) Maintained Virological Suppression in People With HIV Who Switched Antiretroviral Therapy

The Company Presented New Data on Daily, Weekly and Monthly Options Across its HIV Treatment and Prevention Pipeline at AIDS 2026

The Company Announced Initial Access Plans for Alimatravir (MK-8527), Its Investigational Once-Monthly Oral Pre-Exposure Prophylaxis in Phase 3 Development; Multi-Faceted Strategy Aims To Enable Rapid, Broad and Sustainable Access to Alimatravir, if Approved, in Low- And Middle-Income Countries

The Company Announced New Agreement With AIDS Drug Assistance Program Crisis Task Force To Improve Access and Care for People Living With HIV

FDA Approved an Additional Indication for CAPVAXIVE in Children and Adolescents Aged 2 Through 17 at Increased Risk for Pneumococcal Disease; Based on Results From Phase 3 STRIDE-13 Trial

Cardiometabolic and Respiratory

FDA Approved LIPFENDRA, the First and Only Once-Daily Oral PCSK9 Inhibitor To Reduce LDL-C in Adults With Hypercholesterolemia; Based on Results From CORALreef Lipids and CORALreef HeFH Trials

Immunology

Tulisokibart Met Primary and Key Secondary Endpoints in the Phase 3 ATLAS-UC Induction-only Study in Patients With Moderately to Severely Active UC

Animal Health

The Company’s Animal Health Business Completed Acquisition of TARGAN, Broadening Its Commercial Poultry Portfolio Through TARGAN’s Innovative High-Speed Biodevice Technology

*References in the above news release titles have been modified for the purpose of this announcement.

Upcoming Investor Event
The Company will hold an Oncology Investor Event to coincide with the European Society for Medical Oncology Congress 2026 on Monday, Oct. 26, 2026, at 6 p.m. CET / 1 p.m. EDT, during which senior management will provide an update on the Company’s oncology strategy and program. The event will take place in Madrid, Spain, and will be accessible via live audio webcast at this weblink.

Full-Year 2026 Financial Outlook
The following table summarizes the Company’s full-year financial outlook.

Full Year 2026

Updated

Prior

Sales*

$66.3 billion to $67.3 billion

$65.8 billion to $67.0 billion

Non-GAAP Gross margin3

Approximately 81%

Approximately 82%

Non-GAAP Operating expenses3**

$42.0 billion to $42.7 billion

$36.0 billion to $36.8 billion

Non-GAAP Other (income) expense, net3

Approximately $1.4 billion expense

Approximately $1.3 billion expense

Non-GAAP Effective income tax rate3

35.0% to 36.0%

23.5% to 24.5%

Non-GAAP EPS3***

$2.66 to $2.76

$5.04 to $5.16

Share count (assuming dilution)

Approximately 2.48 billion

Approximately 2.48 billion

*The Company does not have any non-GAAP adjustments to sales.

**Includes one-time R&D charges of $9.0 billion for the acquisition of Cidara Therapeutics, Inc. (Cidara) and $5.7 billion for the acquisition of Terns. Outlook does not assume any additional significant potential business development transactions.

***Includes one-time charges of $3.62 per share for the acquisition of Cidara and $2.31 per share for the acquisition of Terns.

The Company has not provided a reconciliation of forward-looking non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other (income) expense, net, non-GAAP effective income tax rate and non-GAAP EPS to the most directly comparable GAAP measures, given it cannot predict with reasonable certainty the amounts necessary for such a reconciliation, including intangible asset impairment charges, legal settlements, and income and losses from investments in equity securities either owned directly or through ownership interests in investment funds, without unreasonable effort. These items are inherently difficult to forecast and could have a significant impact on the Company’s future GAAP results.

The Company is raising and narrowing the range for its full-year sales outlook and now anticipates full-year 2026 sales to be between $66.3 billion and $67.3 billion, including a positive impact from foreign exchange of approximately 1% at mid-July 2026 exchange rates.

The Company now expects the full-year non-GAAP effective income tax rate to be between 35.0% and 36.0%, including the impact of the non-tax deductible one-time charges for the acquisitions of Cidara and Terns.

The Company now expects full-year 2026 non-GAAP EPS to be between $2.66 and $2.76, including a positive impact from foreign exchange of approximately $0.15 per share at mid-July 2026 exchange rates. This range includes one-time charges of $9.0 billion, or $3.62 per share, related to the acquisition of Cidara and $5.7 billion, or $2.31 per share, related to the acquisition of Terns. This range also includes costs of approximately $0.12 per share to finance the Terns acquisition and advance MK-4208. The charges related to Terns were not previously included in the outlook. In 2025, non-GAAP EPS of $8.98 was negatively impacted by one-time charges of $0.20 per share in the aggregate related to certain business development transactions.

Consistent with past practice, the financial outlook does not assume additional significant potential business development transactions.

Earnings Conference Call
Investors, journalists and the general public may access a live audio webcast of the call on Tuesday, Aug. 4, at 9 a.m. EDT via this weblink. A replay of the webcast, along with the sales and earnings news release, supplemental financial disclosures and slides highlighting the results, will be available on the Company’s website.

All participants may join the call by dialing (800) 369-3351 (U.S. and Canada Toll-Free) or (517) 308-9448 and using the access code 9818590.

About Our Company
At Merck & Co., Inc., Rahway, N.J., USA, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities.

Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA
This news release of Merck & Co., Inc., Rahway, N.J., USA (the “Company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the Company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the Company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.

The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).

Appendix
Generic product names are provided below.

Pharmaceutical
BRIDION (sugammadex)
CAPVAXIVE (Pneumococcal 21-valent Conjugate Vaccine)
ENFLONSIA (clesrovimab-cfor)
GARDASIL (Human Papillomavirus Quadrivalent [Types 6, 11, 16 and 18] Vaccine, Recombinant)
GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant)
JANUMET (sitagliptin and metformin HCl)
JANUVIA (sitagliptin)
KEYTRUDA (pembrolizumab)
KEYTRUDA QLEX (pembrolizumab and berahyaluronidase alfa-pmph)
LAGEVRIO (molnupiravir)
Lenvima (lenvatinib)
LIPFENDRA (enlicitide)
Lynparza (olaparib)
M-M-R II (Measles, Mumps and Rubella Virus Vaccine Live)
OHTUVAYRE (ensifentrine)
PREVYMIS (letermovir)
PROQUAD (Measles, Mumps, Rubella and Varicella Virus Vaccine Live)
VARIVAX (Varicella Virus Vaccine Live)
VAXNEUVANCE (Pneumococcal 15-valent Conjugate Vaccine)
WELIREG (belzutifan)
WINREVAIR (sotatercept-csrk)

Animal Health
BRAVECTO (fluralaner)

MERCK & CO., INC., RAHWAY, N.J., USA CONSOLIDATED STATEMENT OF OPERATIONS - GAAP (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) (UNAUDITED) Table 1 GAAP

% Change GAAP % Change 2Q26

2Q25

June YTD 2026 June YTD 2025 Sales $

16,607

$

15,806

5%

$

32,893

$

31,335

5%

Costs, Expenses and Other Cost of sales 4,395

3,557

24%

8,590

6,976

23%

Selling, general and administrative 2,904

2,649

10%

5,604

5,202

8%

Research and development 9,741

4,048

*

22,333

7,669

*

Restructuring costs 151

560

-73%

346

629

-45%

Other (income) expense, net 99

(7

)

*

237

(43

)

*

(Loss) Income Before Taxes (683

)

4,999

*

(4,217

)

10,902

*

Income Tax Provision 654

571

1,363

1,388

Net (Loss) Income (1,337

)

4,428

*

(5,580

)

9,514

*

Less: Net (Loss) Income Attributable to Noncontrolling Interests (2

)

1

(5

)

8

Net (Loss) Income Attributable to Merck & Co., Inc., Rahway, N.J., USA $

(1,335

)

$

4,427

*

$

(5,575

)

$

9,506

*

(Loss) Earnings per Common Share Assuming Dilution (1) $

(0.54

)

$

1.76

*

$

(2.26

)

$

3.77

*

Average Shares Outstanding Assuming Dilution (1) 2,470

2,513

2,471

2,522

Tax Rate -95.9

%

11.4

%

-32.3

%

12.7

%

* 100% or greater (1) Because the Company recorded a net loss in both the second quarter and first six months of 2026, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive. MERCK & CO., INC., RAHWAY, N.J., USA THREE AND SIX MONTHS ENDED JUNE 30, 2026 GAAP TO NON-GAAP RECONCILIATION (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES) (UNAUDITED) Table 2a GAAP Acquisition- and
Divestiture-Related
Costs (1) Restructuring Costs (2) (Income) Loss from
Investments in
Equity Securities Adjustment
Subtotal Non-GAAP Second Quarter Cost of sales $

4,395

1,067

184

1,251

$

3,144

Selling, general and administrative 2,904

17

17

2,887

Research and development 9,741

6

(1

)

5

9,736

Restructuring costs 151

151

151

–

Other (income) expense, net 99

(191

)

(191

)

290

Loss Before Taxes (683

)

(1,090

)

(334

)

191

(1,233

)

550

Income Tax Provision (Benefit) 654

(219

)

(3)

(50

)

(3)

41

(3)

(228

)

882

Net Loss (1,337

)

(871

)

(284

)

150

(1,005

)

(332

)

Net Loss Attributable to Merck & Co., Inc., Rahway, N.J., USA (1,335

)

(871

)

(284

)

150

(1,005

)

(330

)

Loss per Common Share Assuming Dilution (4) $

(0.54

)

(0.35

)

(0.12

)

0.06

(0.41

)

$

(0.13

)

Tax Rate -95.9

%

160.3

%

June YTD Cost of sales $

8,590

2,081

421

2,502

$

6,088

Selling, general and administrative 5,604

49

49

5,555

Research and development 22,333

6

33

39

22,294

Restructuring costs 346

346

346

–

Other (income) expense, net 237

(371

)

(371

)

608

Loss Before Taxes (4,217

)

(2,136

)

(800

)

371

(2,565

)

(1,652

)

Income Tax Provision (Benefit) 1,363

(421

)

(3)

(135

)

(3)

80

(3)

(476

)

1,839

Net Loss (5,580

)

(1,715

)

(665

)

291

(2,089

)

(3,491

)

Net Loss Attributable to Merck & Co., Inc., Rahway, N.J., USA (5,575

)

(1,715

)

(665

)

291

(2,089

)

(3,486

)

Loss per Common Share Assuming Dilution (4) $

(2.26

)

(0.70

)

(0.27

)

0.12

(0.85

)

$

(1.41

)

Tax Rate -32.3

%

-111.3

%

Only the line items that are affected by non-GAAP adjustments are shown. The Company is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing non-GAAP information enhances investors’ understanding of the Company’s results because management uses non-GAAP measures to assess performance. Management uses non-GAAP measures internally for planning and forecasting purposes and to measure the performance of the Company along with other metrics. In addition, annual employee compensation, including senior management’s compensation, is derived in part using a non-GAAP pretax income metric. The non-GAAP information presented should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. (1) Amounts included in cost of sales reflect expenses for the amortization of intangible assets, as well as the recognition of fair value step-up of inventories related to the 2025 Verona Pharma plc acquisition. Amounts included in selling, general and administrative expenses reflect integration, transaction and certain other costs related to acquisitions and divestitures. (2) Amounts primarily include employee separation costs, accelerated depreciation and asset impairment charges associated with facilities to be closed or divested, as well as contractual termination costs, associated with activities under the Company's formal restructuring programs. (3) Represents the estimated tax impacts on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments. (4) Because the Company recorded a net loss in both the second quarter and first six months of 2026, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive. MERCK & CO., INC., RAHWAY, N.J., USA FRANCHISE / KEY PRODUCT SALES (AMOUNTS IN MILLIONS) (UNAUDITED) Table 3 2026

2025

2Q

June YTD

1Q

2Q

June YTD

1Q

2Q

June YTD

3Q

4Q

Full Year

Nom %

Ex-Exch %

Nom %

Ex-Exch %

TOTAL SALES (1) $16,286

$16,607

$32,893

$15,529

$15,806

$31,335

$17,276

$16,400

$65,011

5

4

5

3

PHARMACEUTICAL 14,349

14,760

29,109

13,638

14,050

27,688

15,611

14,843

58,142

5

4

5

3

Oncology Keytruda 7,906

7,904

15,810

7,205

7,956

15,161

8,142

8,337

31,641

-1

-2

4

2

Keytruda Qlex 128

463

590

5

35

40

-

-

-

-

Alliance Revenue – Lynparza (2) 341

365

706

312

370

682

379

389

1,450

-1

-2

4

2

Alliance Revenue – Lenvima (2) 256

283

539

258

265

523

258

272

1,053

7

6

3

2

Welireg 199

271

470

137

162

300

196

220

716

67

67

57

56

Alliance Revenue – Reblozyl (3) 148

122

270

119

107

226

136

164

525

15

15

20

20

Vaccines (4) Gardasil/Gardasil 9 1,069

1,169

2,238

1,327

1,126

2,453

1,749

1,031

5,233

4

3

-9

-10

ProQuad/M-M-R II/Varivax 538

592

1,130

539

609

1,148

684

619

2,451

-3

-3

-2

-3

Vaxneuvance 202

148

350

230

229

459

226

140

825

-35

-36

-24

-26

RotaTeq 206

134

340

228

121

349

204

119

673

10

9

-3

-4

Capvaxive 142

184

325

107

129

236

244

279

759

42

40

38

36

Enflonsia 1

2

3

79

21

100

-

-

-

-

Cardiometabolic & Respiratory Winrevair 525

588

1,114

280

336

615

360

467

1,443

75

75

81

81

Ohtuvayre 131

204

335

178

178

-

-

-

-

Alliance Revenue - Adempas/Verquvo (5) 109

126

235

106

123

229

112

129

470

3

3

3

3

Adempas (6) 78

78

156

68

80

147

82

83

312

-2

-4

6

1

Infectious Diseases Bridion 472

497

969

441

461

902

439

499

1,841

8

8

7

7

Prevymis 272

295

568

208

228

436

266

275

978

29

28

30

27

Delstrigo 75

101

176

67

83

150

77

79

306

21

17

17

10

Zerbaxa 82

77

159

70

74

145

81

87

312

4

2

10

8

Isentress/Isentress HD 59

60

119

90

86

176

82

67

325

-30

-31

-32

-33

Dificid 34

22

56

83

96

179

43

25

247

-77

-77

-69

-69

Lagevrio 28

5

32

102

83

185

138

57

380

-95

-95

-82

-83

Diabetes Januvia 367

258

625

549

372

921

382

302

1,604

-31

-30

-32

-32

Janumet 207

171

378

247

251

498

243

199

940

-32

-33

-24

-25

Other Pharmaceutical (7) 774

641

1,416

865

703

1,568

1,004

770

3,340

-9

-9

-10

-11

ANIMAL HEALTH 1,791

1,775

3,566

1,588

1,646

3,234

1,615

1,505

6,354

8

5

10

6

Livestock 1,064

1,041

2,105

924

961

1,885

1,023

987

3,896

8

6

12

7

Companion Animal 727

734

1,461

664

685

1,349

592

518

2,458

7

5

8

4

Other Revenues (8) 146

72

218

303

110

413

50

52

515

-35

-34

-47

-6

Sum of quarterly amounts may not equal year-to-date amounts due to rounding. (1) Only select products are shown. (2) Alliance Revenue represents the Company's share of profits, which are product sales net of cost of sales and commercialization costs. (3) Alliance Revenue represents royalties. (4) Total Vaccines sales were $2,314 million and $2,361 million in the first and second quarter of 2026, respectively, and $2,607 million and $2,370 million in the first and second quarter of 2025, respectively. (5) Alliance Revenue represents the Company's share of profits from sales in Bayer's marketing territories, which are product sales net of cost of sales and commercialization costs. (6) Net product sales in the Company's marketing territories. (7) Includes Pharmaceutical products not individually shown above. Also reflects total alliance revenue for Koselugo of $161 million and $10 million in the first and second quarter of 2026, respectively, and $44 million and $43 million in the first and second quarter of 2025, respectively. (8) Other Revenues are comprised primarily of revenues from third-party manufacturing arrangements and miscellaneous corporate revenues, including revenue-hedging activities. Other Revenues related to the receipt of milestone payments for out-licensed products were $132 million and $0 million in the first and second quarter of 2026, respectively, and $95 million and $5 million in the first and second quarter of 2025, respectively. More News From Merck & Co., Inc.

Original source text

Second-quarter 2026 sales and revenues increased 24% to $20.5 billion Second-quarter 2026 profit per share of $7.77; adjusted profit per share of $8.17 Deployed $2.2 billion of cash for share repurchases and dividends in the second quarter

Second Quarter

($ in billions except profit per share)

2026

2025

Sales and Revenues

$20.5

$16.6

Profit Per Share

$7.77

$4.62

Adjusted Profit Per Share

$8.17

$4.72

Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.

, /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced second-quarter 2026 results.

"This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," said Caterpillar Chairman and CEO Joe Creed. "This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers' toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."

Sales and revenues for the second quarter of 2026 were $20.5 billion, a 24% increase compared with $16.6 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million.

Operating profit margin was 20.9% for the second quarter of 2026, compared with 17.3% for the second quarter of 2025. Adjusted operating profit margin was 21.9% for the second quarter of 2026, compared with 17.6% for the second quarter of 2025. Second-quarter 2026 profit per share was $7.77, compared with second-quarter 2025 profit per share of $4.62. Adjusted profit per share in the second quarter of 2026 was $8.17, compared with second-quarter 2025 adjusted profit per share of $4.72. For the second quarter of 2026 and 2025, adjusted operating profit margin and adjusted profit per share excluded restructuring costs.

For the second quarter of 2026, enterprise operating cash flow was $4.4 billion, and the company ended the second quarter with $6.7 billion of enterprise cash. In the quarter, the company deployed $1.5 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends.

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison
Second Quarter 2026 vs. Second Quarter 2025

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings.

Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24%, compared with $16.569 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million. Higher sales volume was mainly driven by higher sales of equipment to end users.

Sales were higher across the three primary segments.

Sales and Revenues by Segment

(Millions of dollars)

Second
Quarter
2025

Sales

Volume

Price

Realization

Currency

Inter-
Segment /
Other

Second
Quarter
2026

$

Change

%

Change

Power & Energy

$     7,037

$       736

$       212

$        53

$       200

$     8,238

$     1,201

17 %

Construction Industries

6,190

1,755

309

74

18

8,346

2,156

35 %

Resource Industries

3,886

639

75

65

(17)

4,648

762

20 %

All Other Segment

85

1

1

—

(3)

84

(1)

(1 %)

Corporate Items and Eliminations

(1,524)

(18)

(2)

7

(198)

(1,735)

(211)

Machinery, Power & Energy

15,674

3,113

595

199

—

19,581

3,907

25 %

Financial Products Segment

1,042

—

—

—

103

1,145

103

10 %

Corporate Items and Eliminations

(147)

—

—

—

(36)

(183)

(36)

Financial Products Revenues

895

—

—

—

67

962

67

7 %

Consolidated Sales and Revenues

$    16,569

$     3,113

$       595

$       199

$        67

$    20,543

$     3,974

24 %

Sales and Revenues by Geographic Region

North America

Latin America

EAME

Asia/Pacific

External Sales
and Revenues

Inter-Segment

Total Sales
and Revenues

(Millions of dollars)

$

% Chg

$

% Chg

$

% Chg

$

% Chg

$

% Chg

$

% Chg

$

% Chg

Second Quarter 2026

Power & Energy

$ 4,182

30 %

$  373

(16 %)

$ 1,348

3 %

$  892

9 %

$ 6,795

17 %

$ 1,443

16 %

$ 8,238

17 %

Construction Industries

5,065

50 %

676

25 %

1,456

23 %

1,064

3 %

8,261

35 %

85

27 %

8,346

35 %

Resource Industries

2,230

34 %

671

13 %

713

22 %

954

1 %

4,568

21 %

80

(18 %)

4,648

20 %

All Other Segment

9

50 %

1

— %

2

100 %

3

(50 %)

15

15 %

69

(4 %)

84

(1 %)

Corporate Items and Eliminations

(51)

1

(1)

(7)

(58)

(1,677)

(1,735)

Machinery, Power & Energy

11,435

39 %

1,722

10 %

3,518

15 %

2,906

4 %

19,581

25 %

—

— %

19,581

25 %

Financial Products Segment

765

9 %

122

16 %

137

9 %

121

12 %

1,145

10 %

—

— %

1,145

10 %

Corporate Items and Eliminations

(106)

(23)

(30)

(24)

(183)

—

(183)

Financial Products Revenues

659

7 %

99

16 %

107

(1 %)

97

11 %

962

7 %

—

— %

962

7 %

Consolidated Sales and Revenues

$ 12,094

37 %

$ 1,821

10 %

$ 3,625

14 %

$ 3,003

4 %

$ 20,543

24 %

$   —

— %

$ 20,543

24 %

Second Quarter 2025

Power & Energy

$ 3,225

$  442

$ 1,306

$  821

$ 5,794

$ 1,243

$ 7,037

Construction Industries

3,369

540

1,185

1,029

6,123

67

6,190

Resource Industries

1,668

592

584

945

3,789

97

3,886

All Other Segment

6

—

1

6

13

72

85

Corporate Items and Eliminations

(32)

(3)

(4)

(6)

(45)

(1,479)

(1,524)

Machinery, Power & Energy

8,236

1,571

3,072

2,795

15,674

—

15,674

Financial Products Segment

703

105

126

108

1,042

—

1,042

Corporate Items and Eliminations

(88)

(20)

(18)

(21)

(147)

—

(147)

Financial Products Revenues

615

85

108

87

895

—

895

Consolidated Sales and Revenues

$ 8,851

$ 1,656

$ 3,180

$ 2,882

$ 16,569

$   —

$ 16,569

Consolidated Operating Profit

Consolidated Operating Profit Comparison
Second Quarter 2026 vs. Second Quarter 2025

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2026 earnings.

Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume.

Operating profit in the second quarter of 2026 included $392 million of expected International Emergency Economic Power Act (IEEPA) tariff recoveries.

Profit (Loss) by Segment

(Millions of dollars)

Second Quarter
2026

Second Quarter
2025

$

Change

%

Change

Power & Energy

$           2,027

$           1,554

$            473

30 %

Construction Industries

1,947

1,244

703

57 %

Resource Industries

693

563

130

23 %

All Other Segment

—

—

—

— %

Corporate Items and Eliminations

(453)

(566)

113

Machinery, Power & Energy

4,214

2,795

1,419

51 %

Financial Products Segment

328

248

80

32 %

Corporate Items and Eliminations

(65)

(36)

(29)

Financial Products

263

212

51

24 %

Consolidating Adjustments

(182)

(147)

(35)

Consolidated Operating Profit

$           4,295

$           2,860

$           1,435

50 %

Other Profit/Loss and Tax Items

Other income (expense) in the second quarter of 2026 was income of $398 million, compared with income of $84 million in the second quarter of 2025. The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and investment and interest income.
The effective tax rate for the second quarter of 2026 was 23.1% compared to 23.0% for the second quarter of 2025. Excluding the discrete items discussed below, the global estimated annual effective tax rate was 23.0% for the second quarters of 2026 and 2025.A discrete tax benefit of $26 million was recorded in the second quarter of 2026, compared with a $1 million benefit in the second quarter of 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.

In addition, the global estimated annual effective tax rate in the second quarter of 2026 excluded the impact of second quarter losses of $139 million for the divestiture of certain non-U.S. entities with no related tax benefit.

Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.

POWER & ENERGY

(Millions of dollars)

Segment Sales

Second
Quarter 2025

Sales
Volume

Price
Realization

Currency

Inter-
Segment

Second
Quarter 2026

$

Change

%

Change

Total Sales

$    7,037

$      736

$     212

$       53

$        200

$      8,238

$  1,201

17 %

Sales by Application

Second
Quarter 2026

Second
Quarter 2025

$

Change

%

Change

Power Generation

$    3,098

$    2,407

$     691

29 %

Oil and Gas

2,044

1,867

177

9 %

Industrial

1,653

1,520

133

9 %

External Sales

6,795

5,794

1,001

17 %

Inter-segment

1,443

1,243

200

16 %

Total Sales

$    8,238

$    7,037

$   1,201

17 %

Segment Profit

Second
Quarter 2026

Second
Quarter 2025

Change

%

Change

Segment Profit

$    2,027

$    1,554

$     473

30 %

Segment Profit Margin

24.6 %

22.1 %

       2.5 pts

Power & Energy's total sales were $8.238 billion in the second quarter of 2026, an increase of $1.201 billion, or 17%, compared with $7.037 billion in the second quarter of 2025. The increase was primarily due to higher sales volume of $736 million, favorable price realization of $212 million and higher inter-segment sales of $200 million.

Power Generation – Sales increased in large reciprocating engines and in turbines and turbine-related services, primarily in data center applications. Oil and Gas – Sales increased in reciprocating engines used in gas compression applications and in reciprocating engine aftermarket parts, partially offset by lower sales of reciprocating engines used in well servicing applications. Sales also increased in turbines and turbine-related services. Industrial – Sales increased primarily in North America and EAME. Power & Energy's segment profit was $2.027 billion in the second quarter of 2026, an increase of $473 million, or 30%, compared with $1.554 billion in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $457 million and favorable price realization of $212 million, partially offset by unfavorable manufacturing costs of $149 million. Unfavorable manufacturing costs largely reflected increased period manufacturing costs.

CONSTRUCTION INDUSTRIES

(Millions of dollars)

Segment Sales

Second
Quarter 2025

Sales
Volume

Price
Realization

Currency

Inter-
Segment

Second
Quarter 2026

$

Change

%

Change

Total Sales

$    6,190

$    1,755

$     309

$       74

$         18

$      8,346

$  2,156

35 %

Sales by Geographic Region

Second
Quarter 2026

Second
Quarter 2025

$

Change

%

Change

North America

$    5,065

$    3,369

$   1,696

50 %

Latin America

676

540

136

25 %

EAME

1,456

1,185

271

23 %

Asia/Pacific

1,064

1,029

35

3 %

External Sales

8,261

6,123

2,138

35 %

Inter-segment

85

67

18

27 %

Total Sales

$    8,346

$    6,190

$   2,156

35 %

Segment Profit

Second
Quarter 2026

Second
Quarter 2025

Change

%

Change

Segment Profit

$    1,947

$    1,244

$     703

57 %

Segment Profit Margin

23.3 %

20.1 %

       3.2 pts

Construction Industries' total sales were $8.346 billion in the second quarter of 2026, an increase of $2.156 billion, or 35%, compared with $6.190 billion in the second quarter of 2025. The increase in sales was mainly due to higher sales volume of $1.8 billion and favorable price realization of $309 million. Higher sales volume was primarily driven by higher sales of equipment to end users.

In North America, sales increased primarily due to higher sales volume and favorable price realization. Higher sales volume was mainly driven by higher sales of equipment to end users and by the impact from changes in dealer inventories. Sales increased in Latin America mainly due to higher sales volume and favorable currency impacts primarily related to the Brazilian real. Higher sales volume was mainly driven by higher sales of equipment to end users. In EAME, sales increased primarily due to higher sales volume and favorable currency impacts mainly related to the euro. Higher sales volume was primarily driven by higher sales of equipment to end users. Sales increased in Asia/Pacific mainly due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users. Construction Industries' segment profit was $1.947 billion in the second quarter of 2026, an increase of $703 million, or 57%, compared with $1.244 billion in the second quarter of 2025. The increase was primarily due to the profit impact of higher sales volume.

RESOURCE INDUSTRIES

(Millions of dollars)

Segment Sales

Second
Quarter 2025

Sales
Volume

Price
Realization

Currency

Inter-
Segment

Second
Quarter 2026

$

Change

%

Change

Total Sales

$    3,886

$      639

$      75

$       65

$        (17)

$      4,648

$    762

20 %

Sales by Industry

Second
Quarter 2026

Second
Quarter 2025

$

Change

%

Change

Mining, HC and Q&A*

$    3,685

$    3,024

$     661

22 %

Rail

883

765

118

15 %

External Sales

4,568

3,789

779

21 %

Inter-segment

80

97

(17)

(18 %)

Total Sales

$    4,648

$    3,886

$     762

20 %

*Heavy Construction and Quarry & Aggregates (HC and Q&A)

Segment Profit

Second
Quarter 2026

Second
Quarter 2025

Change

%

Change

Segment Profit

$      693

$      563

$     130

23 %

Segment Profit Margin

14.9 %

14.5 %

       0.4 pts

Resource Industries' total sales were $4.648 billion in the second quarter of 2026, an increase of $762 million, or 20%, compared with $3.886 billion in the second quarter of 2025. The increase was primarily due to higher sales volume. Higher sales volume was primarily driven by higher sales of equipment to end users.

Mining, Heavy Construction and Quarry & Aggregates – Sales increased primarily due to higher sales of equipment to end users. Rail – Sales increased due to higher international locomotive deliveries. Sales also increased in rail services. Resource Industries' segment profit was $693 million in the second quarter of 2026, an increase of $130 million, or 23%, compared with $563 million in the second quarter of 2025. The increase was mainly due to the profit impact of higher sales volume of $269 million, partially offset by unfavorable manufacturing costs of $158 million. Unfavorable manufacturing costs primarily reflected increased period manufacturing costs.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

Revenues by Geographic Region

Second
Quarter 2026

Second
Quarter 2025

$

Change

%

Change

North America

$        765

$        703

$         62

9 %

Latin America

122

105

17

16 %

EAME

137

126

11

9 %

Asia/Pacific

121

108

13

12 %

Total Revenues

$      1,145

$      1,042

$        103

10 %

Segment Profit

Second
Quarter 2026

Second
Quarter 2025

Change

%

Change

Segment Profit

$        328

$        248

$         80

32 %

Financial Products' segment revenues were $1.145 billion in the second quarter of 2026, an increase of $103 million, or 10%, compared with $1.042 billion in the second quarter of 2025. The increase was primarily due to a favorable impact from higher average earning assets across all regions.

Financial Products' segment profit was $328 million in the second quarter of 2026, an increase of $80 million, or 32%, compared with $248 million in the second quarter of 2025. The increase was mainly due to favorable impacts from higher average earning assets of $44 million, equity securities at Insurance Services of $22 million and higher margins at Insurance Services of $21 million, partially offset by higher provision for credit losses at Cat Financial of $22 million.

At the end of the second quarter of 2026, past dues at Cat Financial were 1.31%, compared with 1.62% at the end of the second quarter of 2025. Write-offs, net of recoveries, were $20 million for the second quarter of 2026 compared with $18 million for the second quarter of 2025. As of June 30, 2026, Cat Financial's allowance for credit losses totaled $294 million, or 0.84% of finance receivables, compared with $283 million, or 0.86% of finance receivables at March 31, 2026. The allowance for credit losses at year-end 2025 was $284 million, or 0.86% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $518 million in the second quarter of 2026, a decrease of $84 million from the second quarter of 2025. This decrease was due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the second quarter of 2026, and favorable impacts of segment reporting methodology differences. This was partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans.

In the second quarter of 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S. entities.

Notes

i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.
ii. Sales of equipment to end users is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Tuesday, Aug. 4, 2026.
iii. Information on non-GAAP financial measures is included in the appendix on pages 12 and 13.
iv. Some amounts within this report are rounded to the millions or billions and may not add.
v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Tuesday, Aug. 4, 2026, to discuss its 2026 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.

About Caterpillar
For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at caterpillar.com.

Caterpillar's latest financial results are also available online:

https://investors.caterpillar.com/overview/default.aspx

https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)

Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

APPENDIX

NON-GAAP FINANCIAL MEASURES

The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.

The company believes it is important to separately quantify the profit impact of two significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) other restructuring costs. The company does not consider this item indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2026, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans.

Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:

(Dollars in millions except per share data)

Operating
Profit

Operating
Profit Margin

Profit Before
Taxes

Provision
(Benefit) for
Income Taxes

Profit

Profit per
Share

Three Months Ended June 30, 2026 - U.S. GAAP

$      4,295

20.9 %

$      4,558

$      1,055

$      3,593

$       7.77

Restructuring costs - divestiture of certain non-U.S. entities

139

0.7 %

139

—

139

0.30

Other restructuring costs

63

0.3 %

63

15

48

0.10

Three Months Ended June 30, 2026 - Adjusted

$      4,497

21.9 %

$      4,760

$      1,070

$      3,780

$       8.17

Three Months Ended June 30, 2025 - U.S. GAAP

$      2,860

17.3 %

$      2,818

$        646

$      2,179

$       4.62

Other restructuring costs

56

0.3 %

56

12

47

0.10

Three Months Ended June 30, 2025 - Adjusted

$      2,916

17.6 %

$      2,874

$        658

$      2,226

$       4.72

The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three months ended June 30, 2026 and 2025, these items consist of (i) restructuring costs related to the divestiture of certain non-U.S. entities in 2026 and (ii) the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.

A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below:

(Dollars in millions)

Profit Before
Taxes

Provision
(Benefit) for
Income Taxes

Effective Tax
Rate

Three Months Ended June 30, 2026 - U.S. GAAP

$      4,558

1,055

23.1 %

Restructuring costs - divestiture of certain non-U.S. entities

139

—

Excess stock-based compensation

—

26

Annual effective tax rate, excluding discrete items

$      4,697

$      1,081

23.0 %

Excess stock-based compensation

—

(26)

Other restructuring costs

63

15

Three Months Ended June 30, 2026 - Adjusted

$      4,760

$      1,070

Three Months Ended June 30, 2025 - U.S. GAAP

$      2,818

$ 646

23.0 %

Excess stock-based compensation

—

1

Annual effective tax rate, excluding discrete items

$      2,818

$ 647

23.0 %

Excess stock-based compensation

—

(1)

Other restructuring costs

56

12

Three Months Ended June 30, 2025 - Adjusted

$      2,874

$ 658

Supplemental Consolidating Data

The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:

Consolidated – Caterpillar Inc. and its subsidiaries.

Machinery, Power & Energy (MP&E) – The company defines MP&E as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP&E's information relates to the design, manufacturing and marketing of its products.

Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.

Consolidating Adjustments – Eliminations of transactions between MP&E and Financial Products.

The nature of the MP&E and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.

Pages 15 to 25 reconcile MP&E and Financial Products to Caterpillar Inc. consolidated financial information.

Caterpillar Inc.

Condensed Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Sales and revenues:

Sales of Machinery, Power & Energy

$    19,581

$    15,674

$    36,054

$   29,052

Revenues of Financial Products

962

895

1,904

1,766

Total sales and revenues

20,543

16,569

37,958

30,818

Operating costs:

Cost of goods sold

12,781

10,807

24,087

19,772

Selling, general and administrative expenses

2,018

1,694

3,834

3,287

Research and development expenses

616

551

1,153

1,031

Interest expense of Financial Products

362

336

707

662

Other operating (income) expenses

471

321

797

627

Total operating costs

16,248

13,709

30,578

25,379

Operating profit

4,295

2,860

7,380

5,439

Interest expense excluding Financial Products

135

126

269

242

Other income (expense)

398

84

658

191

Consolidated profit before taxes

4,558

2,818

7,769

5,388

Provision (benefit) for income taxes

1,055

646

1,725

1,220

Profit of consolidated companies

3,503

2,172

6,044

4,168

Equity in profit (loss) of unconsolidated affiliated companies

90

7

97

14

Profit of consolidated and affiliated companies

3,593

2,179

6,141

4,182

Less: Profit (loss) attributable to noncontrolling interests

—

—

(1)

—

Profit 1

$     3,593

$     2,179

$     6,142

$    4,182

Profit per common share

$      7.80

$      4.64

$     13.29

$     8.85

Profit per common share — diluted 2

$      7.77

$      4.62

$     13.23

$     8.82

Weighted-average common shares outstanding (millions)

– Basic

460.4

469.7

462.0

472.4

– Diluted 2

462.5

471.5

464.3

474.5

1

Profit attributable to common shareholders.

2

Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$             6,713

$             9,980

Receivables – trade and other

13,188

10,920

Receivables – finance

10,844

10,649

Prepaid expenses and other current assets

3,078

2,801

Inventories

20,627

18,135

Total current assets

54,450

52,485

Property, plant and equipment – net

15,628

15,140

Long-term receivables – trade and other

3,086

2,142

Long-term receivables – finance

14,364

14,272

Noncurrent deferred and refundable income taxes

2,286

2,882

Intangible assets

420

241

Goodwill

5,859

5,321

Other assets

6,516

6,102

Total assets

$          102,609

$            98,585

Liabilities

Current liabilities:

Short-term borrowings:

-- Financial Products

$             5,046

$             5,514

Accounts payable

10,313

8,968

Accrued expenses

5,825

5,587

Accrued wages, salaries and employee benefits

2,148

2,554

Customer advances

4,777

3,314

Dividends payable

749

703

Other current liabilities

2,871

2,798

Long-term debt due within one year:

-- Machinery, Power & Energy

35

35

-- Financial Products

8,026

7,085

Total current liabilities

39,790

36,558

Long-term debt due after one year:

-- Machinery, Power & Energy

10,655

10,678

-- Financial Products

21,384

20,018

Liability for postemployment benefits

3,744

3,838

Other liabilities

7,642

6,175

Total liabilities

83,215

77,267

Shareholders' equity

Common stock

5,654

7,181

Treasury stock

(54,533)

(49,539)

Profit employed in the business

70,141

65,448

Accumulated other comprehensive income (loss)

(1,867)

(1,772)

Noncontrolling interests

(1)

—

Total shareholders' equity

19,394

21,318

Total liabilities and shareholders' equity

$          102,609

$            98,585

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

Six Months Ended June 30,

2026

2025

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$         6,141

$        4,182

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

Depreciation and amortization

1,211

1,094

Provision (benefit) for deferred income taxes

644

(110)

(Gain) loss on divestiture

139

—

Other

(22)

398

Changes in assets and liabilities, net of acquisitions and divestitures:

Receivables – trade and other

(3,182)

(319)

Inventories

(2,553)

(1,639)

Accounts payable

1,528

973

Accrued expenses

189

(12)

Accrued wages, salaries and employee benefits

(408)

(805)

Customer advances

2,576

1,276

Other assets – net

(93)

(90)

Other liabilities – net

71

(537)

Net cash provided by (used for) operating activities

6,241

4,411

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(1,315)

(1,265)

Expenditures for equipment leased to others

(847)

(608)

Proceeds from disposals of leased assets and property, plant and equipment

436

365

Additions to finance receivables

(8,639)

(7,064)

Collections of finance receivables

8,060

6,399

Proceeds from sale of finance receivables

33

18

Investments and acquisitions (net of cash acquired)

(802)

(21)

Proceeds from sale of businesses and investments (net of cash sold)

(92)

12

Proceeds from maturities and sale of securities

734

1,328

Investments in securities

(1,155)

(618)

Other – net

148

(53)

Net cash provided by (used for) investing activities

(3,439)

(1,507)

Cash flow from financing activities:

Dividends paid

(1,399)

(1,336)

Common stock issued, and other stock compensation transactions, net

(121)

(59)

Payments to purchase common stock

(6,522)

(4,488)

Excise tax paid on purchases of common stock

(49)

(73)

Proceeds from debt issued (original maturities greater than three months)

7,363

5,707

Payments on debt (original maturities greater than three months)

(4,763)

(4,168)

Short-term borrowings – net (original maturities three months or less)

(542)

72

Net cash provided by (used for) financing activities

(6,033)

(4,345)

Effect of exchange rate changes on cash

(35)

(7)

Increase (decrease) in cash, cash equivalents and restricted cash

(3,266)

(1,448)

Cash, cash equivalents and restricted cash at beginning of period

9,986

6,896

Cash, cash equivalents and restricted cash at end of period

$         6,720

$        5,448

Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2026

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power
& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$      19,581

$          19,581

$          —

$           —

Revenues of Financial Products

962

—

1,188

(226)

1

Total sales and revenues

20,543

19,581

1,188

(226)

Operating costs:

Cost of goods sold

12,781

12,783

—

(2)

2

Selling, general and administrative expenses

2,018

1,800

223

(5)

2

Research and development expenses

616

616

—

—

Interest expense of Financial Products

362

—

374

(12)

2

Other operating (income) expenses

471

168

328

(25)

2

Total operating costs

16,248

15,367

925

(44)

Operating profit

4,295

4,214

263

(182)

Interest expense excluding Financial Products

135

141

—

(6)

3

Other income (expense)

398

163

59

176

4

Consolidated profit before taxes

4,558

4,236

322

—

Provision (benefit) for income taxes

1,055

963

92

—

Profit of consolidated companies

3,503

3,273

230

—

Equity in profit (loss) of unconsolidated affiliated companies

90

90

—

—

Profit of consolidated and affiliated companies

3,593

3,363

230

—

Less: Profit (loss) attributable to noncontrolling interests

—

—

—

—

Profit 5

$        3,593

$           3,363

$         230

$           —

1

Elimination of Financial Products' revenues earned from MP&E.

2

Elimination of net expenses recorded between MP&E and Financial Products.

3

Elimination of interest expense recorded between Financial Products and MP&E.

4

Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.

5

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power
& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$      15,674

$        15,674

$          —

$           —

Revenues of Financial Products

895

—

1,081

(186)

1

Total sales and revenues

16,569

15,674

1,081

(186)

Operating costs:

Cost of goods sold

10,807

10,809

—

(2)

2

Selling, general and administrative expenses

1,694

1,497

209

(12)

2

Research and development expenses

551

551

—

—

Interest expense of Financial Products

336

—

342

(6)

Other operating (income) expenses

321

22

318

(19)

2

Total operating costs

13,709

12,879

869

(39)

Operating profit

2,860

2,795

212

(147)

Interest expense excluding Financial Products

126

130

—

(4)

Other income (expense)

84

(101)

42

143

3

Consolidated profit before taxes

2,818

2,564

254

—

Provision (benefit) for income taxes

646

585

61

—

Profit of consolidated companies

2,172

1,979

193

—

Equity in profit (loss) of unconsolidated affiliated companies

7

7

—

—

Profit of consolidated and affiliated companies

2,179

1,986

193

—

Less: Profit (loss) attributable to noncontrolling interests

—

(1)

1

—

Profit 4

$        2,179

$          1,987

$         192

$           —

1

Elimination of Financial Products' revenues earned from MP&E.

2

Elimination of net expenses recorded by MP&E paid to Financial Products.

3

Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.

4

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2026

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power
& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$      36,054

$          36,054

$          —

$           —

Revenues of Financial Products

1,904

—

2,331

(427)

1

Total sales and revenues

37,958

36,054

2,331

(427)

Operating costs:

Cost of goods sold

24,087

24,091

—

(4)

2

Selling, general and administrative expenses

3,834

3,409

445

(20)

2

Research and development expenses

1,153

1,153

—

—

Interest expense of Financial Products

707

—

730

(23)

2

Other operating (income) expenses

797

188

656

(47)

2

Total operating costs

30,578

28,841

1,831

(94)

Operating profit

7,380

7,213

500

(333)

Interest expense excluding Financial Products

269

281

—

(12)

3

Other income (expense)

658

262

75

321

4

Consolidated profit before taxes

7,769

7,194

575

—

Provision (benefit) for income taxes

1,725

1,570

155

—

Profit of consolidated companies

6,044

5,624

420

—

Equity in profit (loss) of unconsolidated affiliated companies

97

97

—

—

Profit of consolidated and affiliated companies

6,141

5,721

420

—

Less: Profit (loss) attributable to noncontrolling interests

(1)

(1)

—

—

Profit 5

$        6,142

$           5,722

$         420

$           —

1

Elimination of Financial Products' revenues earned from MP&E.

2

Elimination of net expenses recorded between MP&E and Financial Products.

3

Elimination of interest expense recorded between Financial Products and MP&E.

4

Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.

5

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power
& Energy

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Power & Energy

$      29,052

$          29,052

$          —

$           —

Revenues of Financial Products

1,766

—

2,129

(363)

1

Total sales and revenues

30,818

29,052

2,129

(363)

Operating costs:

Cost of goods sold

19,772

19,776

—

(4)

2

Selling, general and administrative expenses

3,287

2,905

405

(23)

2

Research and development expenses

1,031

1,031

—

—

Interest expense of Financial Products

662

—

668

(6)

Other operating (income) expenses

627

30

643

(46)

2

Total operating costs

25,379

23,742

1,716

(79)

Operating profit

5,439

5,310

413

(284)

Interest expense excluding Financial Products

242

249

—

(7)

Other income (expense)

191

(146)

60

277

3

Consolidated profit before taxes

5,388

4,915

473

—

Provision (benefit) for income taxes

1,220

1,105

115

—

Profit of consolidated companies

4,168

3,810

358

—

Equity in profit (loss) of unconsolidated affiliated companies

14

14

—

—

Profit of consolidated and affiliated companies

4,182

3,824

358

—

Less: Profit (loss) attributable to noncontrolling interests

—

(1)

1

—

Profit 4

$        4,182

$           3,825

$         357

$           —

1

Elimination of Financial Products' revenues earned from MP&E.

2

Elimination of net expenses recorded between MP&E and Financial Products.

3

Elimination of discount recorded by MP&E on receivables sold to Financial Products and of interest earned between MP&E and Financial Products as well as dividends paid by Financial Products to MP&E.

4

Profit attributable to common shareholders.

Caterpillar Inc.

Supplemental Data for Financial Position

At June 30, 2026

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power
& Energy

Financial

Products

Consolidating

Adjustments

Assets

Current assets:

Cash and cash equivalents

$        6,713

$           5,945

$          768

$           —

Receivables – trade and other

13,188

4,630

686

7,872

1,2

Receivables – finance

10,844

—

18,938

(8,094)

2

Prepaid expenses and other current assets

3,078

2,683

423

(28)

3

Inventories

20,627

20,627

—

—

Total current assets

54,450

33,885

20,815

(250)

Property, plant and equipment – net

15,628

11,314

4,268

46

4

Long-term receivables – trade and other

3,086

2,721

101

264

1,2

Long-term receivables – finance

14,364

—

15,912

(1,548)

2

Noncurrent deferred and refundable income taxes

2,286

2,596

124

(434)

5

Intangible assets

420

420

—

—

Goodwill

5,859

5,859

—

—

Other assets

6,516

4,826

2,783

(1,093)

6

Total assets

$      102,609

$         61,621

$       44,003

$       (3,015)

Liabilities

Current liabilities:

Short-term borrowings

$        5,046

$             —

$        5,046

$           —

Accounts payable

10,313

10,275

251

(213)

7

Accrued expenses

5,825

5,069

756

—

Accrued wages, salaries and employee benefits

2,148

2,098

50

—

Customer advances

4,777

4,774

3

—

Dividends payable

749

749

—

—

Other current liabilities

2,871

2,212

709

(50)

5,8,9

Long-term debt due within one year

8,061

35

8,026

—

Total current liabilities

39,790

25,212

14,841

(263)

Long-term debt due after one year

32,039

10,948

22,384

(1,293)

9

Liability for postemployment benefits

3,744

3,743

1

—

Other liabilities

7,642

6,607

1,552

(517)

5

Total liabilities

83,215

46,510

38,778

(2,073)

Shareholders' equity

Common stock

5,654

5,654

905

(905)

10

Treasury stock

(54,533)

(54,533)

—

—

Profit employed in the business

70,141

64,890

5,219

32

10

Accumulated other comprehensive income (loss)

(1,867)

(901)

(966)

—

Noncontrolling interests

(1)

1

67

(69)

10

Total shareholders' equity

19,394

15,111

5,225

(942)

Total liabilities and shareholders' equity

$      102,609

$         61,621

$       44,003

$       (3,015)

1

Elimination of receivables between MP&E and Financial Products.

2

Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

3

Elimination of MP&E's insurance premiums that are prepaid to Financial Products.

4

Reclassification of Financial Products' other assets to property, plant and equipment.

5

Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

6

Elimination of other intercompany assets and liabilities between MP&E and Financial Products.

7

Elimination of payables between MP&E and Financial Products.

8

Elimination of prepaid insurance in Financial Products' other liabilities.

9

Elimination of debt between MP&E and Financial Products.

10

Eliminations associated with MP&E's investments in Financial Products' subsidiaries.

Caterpillar Inc.

Supplemental Data for Financial Position

At December 31, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery, Power
& Energy

Financial

Products

Consolidating

Adjustments

Assets

Current assets:

Cash and cash equivalents

$        9,980

$           9,333

$         647

$            —

Receivables – trade and other

10,920

3,883

657

6,380

1,2

Receivables – finance

10,649

—

17,325

(6,676)

2

Prepaid expenses and other current assets

2,801

2,448

441

(88)

3

Inventories

18,135

18,135

—

—

Total current assets

52,485

33,799

19,070

(384)

Property, plant and equipment – net

15,140

10,985

4,106

49

4

Long-term receivables – trade and other

2,142

1,982

163

(3)

1,2

Long-term receivables – finance

14,272

—

15,538

(1,266)

2

Noncurrent deferred and refundable income taxes

2,882

3,208

133

(459)

5

Intangible assets

241

241

—

—

Goodwill

5,321

5,321

—

—

Other assets

6,102

4,525

2,651

(1,074)

6

Total assets

$       98,585

$         60,061

$      41,661

$        (3,137)

Liabilities

Current liabilities:

Short-term borrowings

$        5,514

$             —

$        5,514

$            —

Accounts payable

8,968

8,988

268

(288)

7

Accrued expenses

5,587

4,877

710

—

Accrued wages, salaries and employee benefits

2,554

2,494

60

—

Customer advances

3,314

3,311

3

—

Dividends payable

703

703

—

—

Other current liabilities

2,798

2,259

645

(106)

5,8

Long-term debt due within one year

7,120

35

7,085

—

Total current liabilities

36,558

22,667

14,285

(394)

Long-term debt due after one year

30,696

10,955

21,018

(1,277)

9

Liability for postemployment benefits

3,838

3,837

1

—

Other liabilities

6,175

5,162

1,516

(503)

5

Total liabilities

77,267

42,621

36,820

(2,174)

Shareholders' equity

Common stock

7,181

7,181

905

(905)

10

Treasury stock

(49,539)

(49,539)

—

—

Profit employed in the business

65,448

60,639

4,799

10

10

Accumulated other comprehensive income (loss)

(1,772)

(843)

(929)

—

Noncontrolling interests

—

2

66

(68)

10

Total shareholders' equity

21,318

17,440

4,841

(963)

Total liabilities and shareholders' equity

$       98,585

$         60,061

$      41,661

$        (3,137)

1

Elimination of receivables between MP&E and Financial Products.

2

Reclassification of MP&E's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

3

Elimination of MP&E's insurance premiums that are prepaid to Financial Products.

4

Reclassification of Financial Products' other assets to property, plant and equipment.

5

Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

6

Elimination of other intercompany assets and liabilities between MP&E and Financial Products.

7

Elimination of payables between MP&E and Financial Products.

8

Elimination of prepaid insurance in Financial Products' other liabilities.

9

Elimination of debt between MP&E and Financial Products.

10

Eliminations associated with MP&E's investments in Financial Products' subsidiaries.

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Six Months Ended June 30, 2026

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,
Power & Energy

Financial

Products

Consolidating

Adjustments

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$         6,141

$         5,721

$          420

$            —

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

Depreciation and amortization

1,211

812

399

—

Provision (benefit) for deferred income taxes

644

666

(22)

—

(Gain) loss on divestiture

139

139

—

—

Other

(22)

(74)

(271)

323

1

Changes in assets and liabilities, net of acquisitions and divestitures:

Receivables – trade and other

(3,182)

(1,356)

(27)

(1,799)

1,2

Inventories

(2,553)

(2,552)

—

(1)

1

Accounts payable

1,528

1,518

(65)

75

1

Accrued expenses

189

183

6

—

Accrued wages, salaries and employee benefits

(408)

(399)

(9)

—

Customer advances

2,576

2,576

—

—

Other assets – net

(93)

(111)

35

(17)

1

Other liabilities – net

71

(112)

148

35

1

Net cash provided by (used for) operating activities

6,241

7,011

614

(1,384)

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(1,315)

(1,302)

(16)

3

1

Expenditures for equipment leased to others

(847)

(11)

(840)

4

1

Proceeds from disposals of leased assets and property, plant and equipment

436

35

407

(6)

1

Additions to finance receivables

(8,639)

—

(10,312)

1,673

2

Collections of finance receivables

8,060

—

9,188

(1,128)

2

Net intercompany purchased receivables

—

—

(838)

838

2

Proceeds from sale of finance receivables

33

—

33

—

Collections of intercompany receivables (original maturities greater than three months)

—

—

48

(48)

3

Investments and acquisitions (net of cash acquired)

(802)

(802)

—

—

Proceeds from sale of businesses and investments (net of cash sold)

(92)

(92)

—

—

Proceeds from maturities and sale of securities

734

395

339

—

Investments in securities

(1,155)

(648)

(507)

—

Other – net

148

230

(82)

—

Net cash provided by (used for) investing activities

(3,439)

(2,195)

(2,580)

1,336

Cash flow from financing activities:

Dividends paid

(1,399)

(1,399)

—

—

Common stock issued, and other stock compensation transactions, net

(121)

(121)

—

—

Payments to purchase common stock

(6,522)

(6,522)

—

—

Excise tax paid on purchases of common stock

(49)

(49)

—

—

Payments on intercompany borrowings (original maturities greater than three months)

—

(48)

—

48

3

Proceeds from debt issued (original maturities greater than three months)

7,363

—

7,363

—

Payments on debt (original maturities greater than three months)

(4,763)

(19)

(4,744)

—

Short-term borrowings – net (original maturities three months or less)

(542)

—

(542)

—

Net cash provided by (used for) financing activities

(6,033)

(8,158)

2,077

48

Effect of exchange rate changes on cash

(35)

(44)

9

—

Increase (decrease) in cash, cash equivalents and restricted cash

(3,266)

(3,386)

120

—

Cash, cash equivalents and restricted cash at beginning of period

9,986

9,336

650

—

Cash, cash equivalents and restricted cash at end of period

$         6,720

$         5,950

$          770

$            —

1

Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

2

Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.

3

Elimination of proceeds and payments to/from MP&E and Financial Products.

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Six Months Ended June 30, 2025

(Unaudited)

(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,
Power & Energy

Financial

Products

Consolidating

Adjustments

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$         4,182

$         3,824

$          358

$            —

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

Depreciation and amortization

1,094

716

378

—

Provision (benefit) for deferred income taxes

(110)

(88)

(22)

—

Other

398

357

(286)

327

1

Changes in assets and liabilities, net of acquisitions and divestitures:

Receivables – trade and other

(319)

90

5

(414)

1,2

Inventories

(1,639)

(1,639)

—

—

Accounts payable

973

930

6

37

1

Accrued expenses

(12)

(64)

52

—

Accrued wages, salaries and employee benefits

(805)

(786)

(19)

—

Customer advances

1,276

1,276

—

—

Other assets – net

(90)

(133)

(3)

46

1

Other liabilities – net

(537)

(621)

128

(44)

1

Net cash provided by (used for) operating activities

4,411

3,862

597

(48)

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(1,265)

(1,273)

(22)

30

1

Expenditures for equipment leased to others

(608)

(14)

(597)

3

1

Proceeds from disposals of leased assets and property, plant and equipment

365

36

362

(33)

1

Additions to finance receivables

(7,064)

—

(8,084)

1,020

2

Collections of finance receivables

6,399

—

7,278

(879)

2

Net intercompany purchased receivables

—

—

93

(93)

2

Proceeds from sale of finance receivables

18

—

18

—

Additions to intercompany receivables (original maturities greater than three months)

—

(1,000)

—

1,000

3

Collections of intercompany receivables (original maturities greater than three months)

—

—

35

(35)

3

Investments and acquisitions (net of cash acquired)

(21)

(21)

—

—

Proceeds from sale of businesses and investments (net of cash sold)

12

12

—

—

Proceeds from maturities and sale of securities

1,328

1,026

302

—

Investments in securities

(618)

(278)

(340)

—

Other – net

(53)

(18)

(35)

—

Net cash provided by (used for) investing activities

(1,507)

(1,530)

(990)

1,013

Cash flow from financing activities:

Dividends paid

(1,336)

(1,336)

—

—

Common stock issued, and other stock compensation transactions, net

(59)

(59)

—

—

Payments to purchase common stock

(4,488)

(4,488)

—

—

Excise tax paid on purchases of common stock

(73)

(73)

—

—

Proceeds from intercompany borrowings (original maturities greater than three months)

—

—

1,000

(1,000)

3

Payments on intercompany borrowings (original maturities greater than three months)

—

(35)

—

35

3

Proceeds from debt issued (original maturities greater than three months)

5,707

1,976

3,731

—

Payments on debt (original maturities greater than three months)

(4,168)

(35)

(4,133)

—

Short-term borrowings – net (original maturities three months or less)

72

—

72

—

Net cash provided by (used for) financing activities

(4,345)

(4,050)

670

(965)

Effect of exchange rate changes on cash

(7)

(21)

14

—

Increase (decrease) in cash, cash equivalents and restricted cash

(1,448)

(1,739)

291

—

Cash, cash equivalents and restricted cash at beginning of period

6,896

6,170

726

—

Cash, cash equivalents and restricted cash at end of period

$         5,448

$         4,431

$         1,017

$            —

1

Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

2

Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.

3

Elimination of proceeds and payments to/from MP&E and Financial Products.

SOURCE Caterpillar Inc.

Original source text

Německá Lufthansa výrazně zhoršila výhled hospodaření pro letošní rok a upozornila na rostoucí tlak vyšších cen paliva, který vedl k výraznému snížení letošních odhadů. Vedení reaguje rozsáhlými úspornými opatřeními, omezením nerentabilních linek, snižováním investic a reorganizací provozu. Přesto Lufthansa upozorňuje, že poptávka po cestování zůstává silná, zejména na asijských trasách, a pozitivní výsledky nadále vykazuje také segment nákladní dopravy.

Volatilita cen leteckého paliva a kratší doba mezi rezervací a samotnou cestou komplikují snahy Lufthansy o zvýšení ziskovosti. Tato německá aerolinka nově snížila odhad upraveného provozního zisku EBIT za celý rok do rozmezí 1,7 až 2,2 mld. EUR a ruší tak předchozí očekávání „výrazně vyššího“ zisku než loni. Akcie odepisují přes 10 %.

Lufthansa se zároveň podobně jako IAG vzdala plánů na růst kapacity. Nově očekává, že přepravní kapacita zůstane na úrovni roku 2025, zatímco dříve počítala s růstem až o 2 %. Finanční ředitel Till Streichert uvedl, že výhled na druhé pololetí zůstává velmi nejistý a prognózování je čím dál obtížnější. Vedení však věří, že vysoká poptávka po cestování spolu s disciplínou v nákladech a kapacitách pomůže kompenzovat významnou část rostoucích nákladů.

Nový výhled navazuje na slabším druhé čtvrtletí, kdy se zisk propadl o více než polovinu na 383 mil. EUR. Analytici přitom očekávali přibližně 477 mil. EUR. Hlavním důvodem byl meziroční nárůst nákladů na palivo o 750 mil. EUR. Právě kolísání cen ropy se stává významným problémem i pro další evropské aerolinky, například Ryanair nebo easyJet. Lufthansa také snížila plánované kapitálové výdaje. Nově očekává investice kolem 2,5 mld. EUR oproti dříve plánovaným 2,9 mld. EUR, především kvůli nižšímu počtu dodaných letadel.

Letošní rok je pro Lufthansu náročnější a komplikuje tak snahy generálního ředitele Carstena Spohra zlepšit ziskovost. Náklady na palivo prudce vzrostly kvůli konfliktu na Blízkém východě a jen vyšší ceny paliva letos budou Lufthansu stát dodatečných 1,5 mld. EUR. Aerolinka se navíc během jednání o mzdách potýkala se stávkami pilotů a palubního personálu, které ji ve druhém čtvrtletí stály nejméně 150 mil. EUR.

V reakci na rostoucí náklady společnost urychlila uzavření regionální dceřiné společnosti CityLine, zrušila přibližně 20 tisíc nerentabilních krátkých letů a vyřadila starší letadla s vysokou spotřebou paliva. Současně plánuje do roku 2030 zrušit 4 000 administrativních pracovních míst a přesunout část provozu z nákladově náročné hlavní značky Lufthansa k novějším aerolinkám Discover Airlines a City Airlines, kde mohou být personální náklady až o 40 % nižší.

Pozitivním bodem zůstává nákladní doprava. Divize Lufthansa Cargo zvýšila ve druhém čtvrtletí zisk téměř o 60 %. A také uvedla, že celková poptávka po cestování zůstává silná a výnosy na asijských linkách byly o více než 13 % vyšší než před rokem.

Navzdory současným problémům Lufthansa nadále usiluje o růst. Spolu s Air France-KLM minulý týden podala závaznou nabídku na získání menšinového podílu v portugalském státním dopravci TAP Air Portugal, který je atraktivní zejména díky silné pozici na trzích Latinské Ameriky. Nabídky nyní posuzuje státní holding Parpública.

Original source text

Second quarter 2026 reported and adjusted* operating income decreased 31% and 5% compared to the second quarter 2025Second quarter 2026 reported and adjusted EPS were $1.78 and $2.82, compared with $2.99 and $2.87 in the second quarter 2025Reaffirming amended full-year guidance, which now reflects the sale of a majority stake in the Pakistan business, for reported EPS to be in the range of $9.15 to $9.75 and adjusted EPS to be in the range of $10.30 to $10.90Ingredion’s 595 pence all-cash offer to acquire Tate & Lyle accepted by their shareholders WESTCHESTER, Ill., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported its second quarter 2026 results.

"Ingredion delivered a solid second quarter, with Texture & Healthful Solutions continuing its quarterly net sales volume growth and Food & Industrial Ingredients—U.S./CAN operating results sequentially improving during the quarter," said Jim Zallie, chairman, president and CEO of Ingredion. "Additionally, we completed the sale of our majority stake in the Pakistan business, and we are pleased to report that Tate & Lyle’s shareholders approved our recommended all-cash offer on July 28, marking an important step toward completing the transaction."

"Texture & Healthful Solutions delivered its ninth consecutive quarter of broad-based net sales volume growth, driven by continued strong customer demand for our solutions offerings, including clean-label ingredients, demonstrating the durability and margin enhancement of our solutions-selling model."

"Food & Industrial Ingredients—LATAM continued to deliver in line with expectations, which was a result of focused execution across the region, the resilience of our diversified businesses, and the advancement of network optimization opportunities, which included the announced closure of our Cabo, Brazil facility. We also successfully navigated foreign exchange headwinds and macroeconomic pressures.”

“In Food & Industrial Ingredients—U.S./CAN, reliability at our Argo plant improved, with sequentially better production rates and yields achieved throughout the quarter. We are pleased to say that the plant is operating at normal production rates across all major operating units.”

“Looking ahead, we are focused on continued operational execution across our Food & Industrial Ingredients businesses and accelerating the growth of our Texture & Healthful Solutions portfolio. We have also commenced the integration planning work for the pending acquisition of Tate & Lyle, which, when completed, will establish Ingredion as a more comprehensive global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food.”

* Reported results are in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted financial measures are non-GAAP financial measures. See “II. Non-GAAP Information” in the Supplemental Financial Information that follows the Condensed Consolidated Financial Statements for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

Diluted Earnings Per Share (EPS)

2Q252Q26Reported Diluted EPS$        2.99 $        1.78 Acquisition/integration costs —  0.64 Impairment charges (0.02) 0.34 Restructuring costs 0.03  0.14 Net (gain) on sale of business —  (0.27)Tax items and other matters (0.13) 0.19 Adjusted Diluted EPS**$        2.87 $        2.82 Factors affecting changes in Reported and Adjusted EPS

2Q26Total items affecting adjusted diluted EPS**(0.05)Total operating items(0.17)Margin(0.34)Volume0.03 Foreign exchange0.05 Other income0.09 Total non-operating items0.12 Financing costs0.05 Non-controlling interests— Tax rate— Shares outstanding0.07 Other non-operating income— ** Totals may not sum or recalculate due to rounding

Business Review

Total Ingredion

Net Sales

$ in millions2025FX
ImpactVolumePrice
Mix2026ChangeChange
excl. FXSecond Quarter1,8333620 (39)1,8501%(1%)Year-to-Date3,64669(12)(61)3,642—%(2%) Second quarter net sales increased 1%. The increase was primarily driven by higher net sales volume in T&HS and favorable foreign exchange in F&II—LATAM, partially offset by less favorable overall price mix and lower net sales volume in F&II—U.S./CAN. Reported Operating Income

$ in millions2025FX ImpactBusiness
DriversRestructuring/ImpairmentOther2026ChangeChange
excl. FXSecond Quarter2715(20)(42)(26)188(31%)(32%)Year-to-Date54711(87)(46)(34)391(29%)(31%) Adjusted Operating Income

$ in millions2025FX ImpactBusiness
Drivers2026ChangeChange
excl. FXSecond Quarter2735(20)258(5%)(7%)Year-to-Date54611(87)470(14%)(16%) Second quarter reported and adjusted operating income were $188 million and $258 million, respectively. The difference between reported and adjusted operating income was primarily attributable to impairment charges and costs from the closure of our Cabo, Brazil facility, as well as costs attributable to the previously announced thermal event at our Argo plant. Excluding foreign exchange translation impacts, reported operating income was down 32% and adjusted operating income was down 7% from a year ago. Texture & Healthful Solutions

Net Sales

$ in millions2025FX ImpactVolumePrice
Mix2026ChangeChange
excl. FXSecond Quarter599544(21)6275%4%Year-to-Date1,2011857(32)1,2444%2% Segment Operating Income

$ in millions2025FX ImpactBusiness
Drivers2026ChangeChange
excl. FXSecond Quarter111151175%5%Year-to-Date210432173%1% Second quarter operating income for Texture & Healthful Solutions was $117 million, up $6 million from a year ago, driven by sales volume growth, partially offset by unfavorable price mix and higher tapioca costs. Excluding foreign exchange translation impacts, segment operating income was up 5%. Food & Industrial Ingredients—LATAM

Net Sales

$ in millions2025FX
ImpactVolumePrice
Mix2026ChangeChange
excl. FXSecond Quarter59630(5)(10)6113%(3%)Year-to-Date1,16948(12)(15)1,1902%(2%) Segment Operating Income

$ in millions2025FX ImpactBusiness
DriversArgentina JV2026ChangeChange
excl. FXSecond Quarter1274(17)4118(7%)(10%)Year-to-Date2546(31)4233(8%)(11%) Second quarter operating income for Food & Industrial Ingredients—LATAM was $118 million, a $9 million decrease from a year ago, driven primarily by Mexico’s transactional currency impacts and a more challenging demand environment. Excluding foreign exchange translational impacts, segment operating income was down 10%. Food & Industrial Ingredients—U.S./CAN

Net Sales

$ in millions2025FX ImpactVolumePrice
Mix2026ChangeChange
excl. FXSecond Quarter523—(22)(13)488(7%)(7%)Year-to-Date1,0432(60)(22)963(8%)(8%) Segment Operating Income

$ in millions2025FX ImpactBusiness
Drivers2026ChangeChange
excl. FXSecond Quarter86—(28)58(33%)(33%)Year-to-Date1781(87)92(48%)(49%) Second quarter operating income for Food & Industrial Ingredients—U.S./CAN was $58 million, a $28 million decrease from the prior year. The decline resulted from lower production at our Argo facility, which had normalized by the end of the quarter, as well as softer volumes and price mix. Excluding foreign exchange translation impacts, operating income was down 33%. All Other*

Net Sales

$ in millions2025FX ImpactVolumePrice
Mix2026ChangeChange
excl. FXSecond Quarter1151351248%7%Year-to-Date2331382455%5% All Other Operating Income (Loss)

$ in millions2025
FX ImpactBusiness
Drivers2026ChangeChange
excl. FXSecond Quarter(1)—76NMNMYear-to-Date(1)—109NMNM Second quarter operating income (loss) for All Other increased $7 million from the prior year, reflecting continued improvements in the Protein Fortification business. * All Other consists of the businesses of multiple operating segments that are not individually or collectively classified as reportable segments. Net sales from All Other are generated primarily by sweetener and starch sales from the Pakistan business, sales of stevia and other ingredients from our PureCircle and other sugar reduction businesses, and pea protein ingredients from our Protein Fortification business.

Other Financial Items

At June 30, 2026, total debt was $1.8 billion, and cash, including short-term investments, was $952 million, versus $1.8 billion and $1.0 billion, at December 31, 2025.Net financing costs were $55 million in Q2 2026, compared to $12 million in Q2 2025, primarily due to a $47 million mark-to-market foreign exchange loss on derivatives used to hedge British pound sterling exposure related to the pending Tate & Lyle acquisition.The reported and adjusted effective tax rates for the second quarter were 33.7% and 27.2%, compared to 23.6% and 27.2%, for the year-ago period. The increase in the reported effective tax rate was primarily attributable to the gain on the sale of a majority stake in the Pakistan business and the change in value of the Mexican peso relative to the U.S. dollar. These impacts were partially offset by the utilization of previously unbenefited capital losses.Net capital expenditures totaled $210 million through June 30, 2026. Dividends and Share Repurchases

In the second quarter, the Company paid $52 million in dividends to shareholders. On May 20, 2026, the Company declared a quarterly dividend of $0.82 per share, which was paid on July 21, 2026. Year-to-date, the Company has repurchased $14 million of common stock and remains committed to its $100 million full-year target.

Full-Year 2026 Outlook

Ingredion reaffirms its 2026 full year outlook after reflecting the impact of the sale of a majority stake in the Pakistan business on the second half of the year. The Company expects its full-year 2026 reported EPS to be in the range of $9.15 to $9.75, and its adjusted EPS to be in the range of $10.30 to $10.90.

The Company still expects full-year 2026 net sales to be flat to up low single digits, reflecting volume growth and favorable foreign exchange, partially offset by lower price mix as well as the impact of the previously mentioned sale of its majority stake in the Pakistan business.

Reported operating income is expected to be down low double digits, with adjusted operating income now expected to be down mid-single-digits for full-year 2026, which reflects the second half impact from the sale of a majority stake in the Pakistan business.

The 2026 full-year outlook further assumes the following: Texture & Healthful Solutions operating income is now expected to be up mid-to-high single-digits, driven by sales volume growth, partially offset by expected higher input cost inflation; Food & Industrial Ingredients—LATAM operating income is still anticipated to be down low single-digits, reflecting the continued strength of the Mexican peso; Food & Industrial Ingredients—U.S./CAN operating income is now expected to be down 20-25%, driven by the operational headwinds Argo incurred in the first half of 2026; and All Other’s operating loss is now anticipated to be approximately $(15) million, which reflects the removal of the second half earnings contribution of the Pakistan business.

Corporate costs for full-year 2026 are now expected to be down mid-single-digits.

For full-year 2026, the Company expects a reported effective tax rate of 27.4% to 28.9% and still expects an adjusted effective tax rate of 26.0% to 27.5%.

Cash from operations for the full year 2026 is now expected to be in the range of $700 million to $800 million. Capital expenditures for the full year are now expected to be approximately $450 to $490 million.

This guidance reflects tariff levels in effect as of the end of July 2026. In addition, this guidance excludes acquisition-related integration and restructuring costs, as well as any potential impairment costs.

Third Quarter 2026 Outlook

For the third quarter of 2026, compared to the same quarter last year, the Company expects net sales to be up low single-digits. Reported and adjusted operating income are both expected to be down mid-single-digits, which again reflects the impact of the sale of our majority stake in the Pakistan business.

Conference Call and Webcast Details

Ingredion will host a conference call on Tuesday, August 4, 2026, at 8 a.m. CT/9 a.m. ET, hosted by Jim Zallie, chairman, president and chief executive officer and Jason Payant, vice president and interim chief financial officer. The call will be webcast in real time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be available on the Company’s website above and can be downloaded a few hours before the call begins. A replay will be available for a limited time at https://ir.ingredionincorporated.com/financial-information/quarterly-results.

About Ingredion

Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion Idea Labs® innovation centers located around the world and more than 11,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news.

Forward-Looking Statements

This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Ingredion Incorporated intends these forward-looking statements to be covered by the safe harbor provisions for such statements.

Forward-looking statements include, among others, any statements regarding our expectations for third quarter 2026 net sales and reported and adjusted operating income, full-year 2026 reported and adjusted earnings per share, net sales, reported and adjusted operating income, segment operating income, corporate costs, reported and adjusted effective tax rate, cash from operations, and capital expenditures, and any other statements regarding our prospects and our future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations, or beliefs underlying any of the foregoing. In addition, such statements include statements regarding our expectations with respect to completion and benefits of the pending acquisition of Tate & Lyle (the “pending acquisition”), including statements regarding plans, objectives, intentions and expectations with respect to the future operations and financial performance of the combined group.

These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “opportunities,” “potential,” or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are “forward-looking statements.”

These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct.

The following factors relating to the pending acquisition, among others, could cause actual results to differ materially from those expressed in or implied by our forward-looking statements: failure of the pending acquisition to be completed when expected or at all because of the inability to satisfy material antitrust or other conditions or for other reasons; the risk that the expected benefits of the pending acquisition may not be fully realized or may take longer to realize than anticipated, including as a result of the risks and uncertainties discussed below; failure to integrate effectively the businesses of Ingredion and Tate & Lyle or to manage effectively the expanded operations of the combined group; the incurrence of substantial expenses and indebtedness by Ingredion and the combined group to complete the pending acquisition and to operate the enterprise after completion; and the risk of loss of contracts and customers, distributors, suppliers, vendors and other business partners of Tate & Lyle as a result of the pending acquisition.

Actual results and developments may differ materially from the expectations expressed in or implied by our forward-looking statements, based on various risks and uncertainties, including changes in consumer practices, preferences, price sensitivity, behaviors, demand and perceptions; the impact of geopolitical developments, tensions, threats or conflicts on the availability and prices of raw materials and energy supplies, supply chains and foreign exchange and interest rates; the impact of global business and economic conditions on demand for our products or our access to global credit and equity markets; our reliance on certain industries for a significant portion of our sales; operating difficulties at our manufacturing facilities and liabilities relating to product safety and quality; our ability to keep pace with technological developments in research and development and continue to offer innovative products; competitive pressures that may adversely affect our market share, revenue and profitability; market volatility that may adversely affect our ability to pass through potential increases in the cost of corn and other raw materials to customers, to purchase quantities of corn and other raw materials at prices sufficient to sustain or increase our profitability, or to supply product quantities and meet shipment delivery requirements that our customers demand; the impact on inputs to our procurement, production processes and delivery channels, such as raw material, energy, and freight and logistics, of price fluctuations, supply chain interruptions, tariffs, duties, and shortages; our ability to contain costs, manage working capital, and achieve budgets, including completion of planned maintenance and investment projects on time and on budget; global climate change and legal, regulatory, or market measures to address climate change; our ability to identify and complete acquisitions, divestitures, or strategic alliances on favorable terms or achieve anticipated synergies; the economic, political and other risks inherent in conducting operations in foreign countries and with foreign currencies; our ability to maintain satisfactory labor relations; our ability to attract, develop, retain, motivate and maintain good relationships with our workforce, including key personnel; the impact of legal and regulatory proceedings; the risks associated with pandemics; the impact of any impairment charges on intangible assets and goodwill; global and regional economic policies and changes to existing laws and regulations; changes in our tax rates or exposure to additional income tax liabilities; increases in interest rates that could increase our borrowing costs; risks affecting our ability to raise funds at reasonable rates and other factors affecting our access to sufficient funds for future growth and expansion; risks relating to the use of artificial intelligence and other advanced technologies, and our reliance on third‑party technology providers; interruptions, security incidents, or failures with respect to information technology systems, processes, and sites; risks affecting the continuation of our dividend policy; and our ability to maintain effective internal control over financial reporting.

Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments or otherwise. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in our Annual Report on Form 10-K for the year ended December 31, 2025, and in our subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.

This press release is for information purposes and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the all-cash offer by the Company for the entire issued and to be issued ordinary share capital of Tate & Lyle, or otherwise, nor shall there be any sale, issuance or transfer of securities of Tate & Lyle in any jurisdiction in contravention of applicable law. The pending acquisition will be made solely by means of a scheme of arrangement (or, if the pending acquisition is implemented by way of a takeover offer, as that term is defined in the UK Companies Act 2006 (a “Takeover Offer”), the offer document), which will contain the full terms and conditions of the pending acquisition. If the Company exercises its right to implement the pending acquisition by way of a Takeover Offer, such offer will be made in compliance with applicable U.S. laws and regulations.

Ingredion Incorporated
Condensed Consolidated Statements of Income
(Unaudited)
(dollars and shares in millions, except per share data) Three Months Ended June 30, Change
%
Six Months Ended June 30, Change
%
2026   2025    2026   2025  Net sales$1,850  $1,833  1% $3,642  $3,646  —%Cost of sales 1,424   1,356     2,815   2,703   Gross profit 426   477  (11%)  827   943  (12%)Operating expenses 207   208  —%  407   401  1%Other operating (income), net (14)  (5)    (27)  (15)  Restructuring/impairment charges 45   3     56   10   Operating income 188   271  (31%)  391   547  (29%)Financing costs 55   12     64   21   Net (gain) on sale of business (44)  —     (44)  —   Other non-operating expense, net 2   —     2   —   Income before income taxes 175   259  (32%)  369   526  (30%)Provision for income taxes 59   61     109   129   Net income 116   198  (41%)  260   397  (35%)Less: Net income attributable to non-controlling interests 2   2     4   4   Net income attributable to Ingredion$114  $196  (42%) $256  $393  (35%)            Earnings per common share attributable to Ingredion common shareholders:                       Weighted average common shares outstanding:           Basic 63.3   64.5     63.2   64.5   Diluted 63.9   65.6     63.9   65.6               Earnings per common share of Ingredion:           Basic$1.80  $3.04  (41%) $4.05  $6.09  (33%)Diluted$1.78  $2.99  (40%) $4.01  $5.99  (33%) Ingredion Incorporated
Condensed Consolidated Balance Sheets
(dollars and shares in millions, except per share amounts)
  June 30, 2026 December 31, 2025
  (Unaudited) Assets    Current assets:    Cash and cash equivalents $948  $1,030 Short-term investments  4   3 Accounts receivable, net  1,386   1,185 Inventories  1,109   1,227 Prepaid expenses and assets held for sale  76   60 Total current assets  3,523   3,505 Property, plant and equipment, net  2,521   2,526 Goodwill  917   922 Intangible assets, net  337   347 Other non-current assets  772   597 Total assets $8,070  $7,897      Liabilities and stockholders’ equity    Current liabilities:    Short-term borrowings $41  $48 Accounts payable, accrued liabilities and liabilities held for sale  1,218   1,268 Total current liabilities  1,259   1,316 Long-term debt  1,742   1,742 Other non-current liabilities  496   473 Total liabilities  3,497   3,531      Share-based payments subject to redemption  49   64 Redeemable non-controlling interests  —   7      Ingredion stockholders’ equity:    Preferred stock — authorized 25.0 shares — $0.01 par value, none issued  —   — Common stock — authorized 200.0 shares — $0.01 par value, 77.8 shares issued at June 30, 2026 and December 31, 2025  1   1 Additional paid-in capital  1,163   1,155 Less: Treasury stock (common stock: 14.7 and 14.8 shares at June 30, 2026 and December 31, 2025) at cost  (1,553)  (1,555)Accumulated other comprehensive loss  (848)  (937)Retained earnings  5,761   5,610 Total Ingredion stockholders’ equity  4,524   4,274 Non-redeemable non-controlling interests  —   21 Total stockholders’ equity  4,524   4,295 Total liabilities and stockholders’ equity $8,070  $7,897 Ingredion Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(dollars in millions)
  Six Months Ended June 30,  2026   2025 Cash from operating activities    Net income $260  $397 Non-cash charges to net income:    Depreciation and amortization  110   108 Mechanical stores expense  38   32 Net (gain) on sale of business  (44)  — Impairment charges  33   6 Foreign exchange losses, net  47   4 Margin accounts  (19)  (9)Changes in other working capital  (231)  (241)Other  (71)  (35)Cash provided by operating activities  123   262 Cash from investing activities    Capital expenditures and mechanical stores purchases, net  (210)  (193)Proceeds from sales of businesses, net  139   12 Purchases of equity securities, net  (26)  (19)Other  (5)  (3)Cash used for investing activities  (102)  (203)Cash from financing activities    Proceeds (payments) on borrowings, net  35   (46)Repurchases of common stock, net  (14)  (55)Common stock activity for share-based compensation, net  (10)  (9)Purchases of non-controlling interests  (7)  — Dividends paid, including to non-controlling interests  (105)  (106)Cash used for financing activities  (101)  (216)Effects of foreign exchange rate changes on cash and cash equivalents  (2)  21 (Decrease) in cash and cash equivalents  (82)  (136)Cash and cash equivalents, beginning of period  1,030   997 Cash and cash equivalents, end of period $948  $861 Ingredion Incorporated
Supplemental Financial Information
(Unaudited)
(dollars in millions, except for percentages)

I. Segment Information of Net Sales to Unaffiliated Customers and Operating Income

Three Months Ended
June 30, Change %
Change
Excl. FX %
Six Months Ended
June 30, Change %
Change
Excl. FX %
2026   2025     2026   2025   Net Sales to Unaffiliated Customers:               Texture & Healthful Solutions (i)$627  $599  5% 4% $1,244  $1,201  4% 2%Food & Industrial Ingredients—LATAM (ii) 611   596  3% (3%)  1,190   1,169  2% (2%)Food & Industrial Ingredients—U.S./Canada (iii) 488   523  (7%) (7%)  963   1,043  (8%) (8%)All Other (iv) 124   115  8% 7%  245   233  5% 5%Net Sales$1,850  $1,833  1% (1%) $3,642  $3,646  —% (2%)                Operating Income (Loss):               Texture & Healthful Solutions$117  $111  5% 5% $217  $210  3% 1%Food & Industrial Ingredients—LATAM 118   127  (7%) (10%)  233   254  (8%) (11%)Food & Industrial Ingredients—U.S./Canada 58   86  (33%) (33%)  92   178  (48%) (49%)All Other 6   (1) NM NM  9   (1) NM NMCorporate (41)  (50) (18%) (18%)  (81)  (95) (15%) (15%)Adjusted Operating Income 258   273  (5%) (7%)  470   546  (14%) (16%)Acquisition/integration costs (6)  —       (6)  —     Impairment charges (31)  —       (31)  (6)    Restructuring costs (14)  (3)      (25)  (4)    Other matters (19)  1       (17)  11     Operating Income$188  $271  (31%) (32%) $391  $547  (29%) (31%) Notes to Net Sales to Unaffiliated Customers

(i)   Net of inter-segment sales of $35 million and $9 million for the second quarter of 2026 and 2025, and $44 million and $18 million for year-to-date 2026 and 2025.

(ii)   Net of inter-segment sales of $11 million and $14 million for the second quarter of 2026 and 2025, and $21 million and $27 million for year-to-date 2026 and 2025.

(iii)   Net of inter-segment sales of $48 million and $27 million for the second quarter of 2026 and 2025, and $75 million and $60 million for year-to-date 2026 and 2025.

(iv)   Net of inter-segment sales of $8 million and $4 million for the second quarter of 2026 and 2025, and $12 million and $7 million for year-to-date 2026 and 2025.

II. Non-GAAP Information

To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), non-GAAP historical financial measures are used, which exclude certain GAAP items such as acquisition/integration costs, restructuring costs, impairment charges, net (gain) on sale of business, Mexico tax item, and other specified items. The term “adjusted” is generally used when referring to these non-GAAP financial measures.

Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the Company’s operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company’s operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business. Expected financial measures may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. Non-GAAP adjustments are generally made to adjusted financial measures, which increases management’s confidence in its ability to forecast adjusted financial measures than in its ability to forecast GAAP financial measures. These non-GAAP measures, including non-GAAP expected measures, should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the Company’s non-GAAP information is not necessarily comparable to similarly titled measures presented by other companies. A reconciliation of each non-GAAP financial measure to the most comparable GAAP measure is provided in the tables below.

Ingredion Incorporated
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS
(Unaudited) Three Months Ended
June 30, 2026 Six Months Ended
June 30, 2026 (in millions) Diluted EPS (in millions) Diluted EPSNet income attributable to Ingredion$114  $1.78  $256  $4.01         Adjustments:               Acquisition/integration costs (i) 41   0.64   41   0.64         Impairment charges (ii) 22   0.34   22   0.34         Restructuring costs (iii) 9   0.14   19   0.30         Net (gain) on sale of business (iv) (17)  (0.27)  (17)  (0.27)        Other matters (v) 14   0.23   12   0.19         Tax item–Mexico (vi) (2)  (0.03)  (6)  (0.09)        Other tax matters (vii) (1)  (0.01)  3   0.04         Non-GAAP adjusted net income attributable to Ingredion$180  $2.82  $330  $5.16 Three Months Ended
June 30, 2025 Six Months Ended
June 30, 2025 (in millions) Diluted EPS (in millions) Diluted EPSNet income attributable to Ingredion$196  $2.99  $393  $5.99         Adjustments:               Impairment charges (ii) (1)  (0.02)  4   0.06         Restructuring costs (iii) 2   0.03   3   0.05         Other matters (v) (1)  (0.02)  (8)  (0.12)        Tax item–Mexico (vi) (6)  (0.08)  (7)  (0.11)        Other tax matters (vii) (2)  (0.03)  (2)  (0.03)        Non-GAAP adjusted net income attributable to Ingredion$188  $2.87  $383  $5.84 Net income and EPS may not sum or recalculate due to rounding.

Notes(i)   During the three and six months ended June 30, 2026, we recorded pre-tax acquisition and integration costs of $53 million primarily related to our pending acquisition of Tate & Lyle, including a $47 million of acquisition-related foreign exchange hedging losses. There was no such activity during the three and six months ended June 30, 2025.

(ii)   During the three and six months ended June 30, 2026, we recorded pre-tax impairment charges of $33 million, primarily related to the closure of our facility in Cabo, Brazil. During the three months ended June 30, 2025, we recorded a tax benefit for impairment charges to equity method investments. During the six months ended June 30, 2025, we recorded $6 million of pre-tax impairment charges on our equity investments.

(iii)   During the three and six months ended June 30, 2026, we recorded pre-tax restructuring costs of $14 million and $25 million, primarily related to the closure of our facility in Cabo, Brazil, and costs related to our sale of the Pakistan business and other restructuring activity. During the three and six months ended June 30, 2025, we recorded pre-tax restructuring costs of $3 million and $4 million, primarily related to decommissioning costs for plant closures.

(iv)   During the three and six months ended June 30, 2026, we recorded a net pre-tax gain of $44 million related to the sale of our Pakistan business. There was no such activity during the three and six months ended June 30, 2025.

(v)   During the three and six months ended June 30, 2026, we recorded pre-tax charges of $19 million and $17 million primarily related to the Argo thermal event. During the three and six ended June 30, 2025, we recorded pre-tax benefits of $1 million and $11 million primarily related to insurance recoveries and a favorable judgment related to certain indirect taxes in Brazil.

(vi)   The tax amounts are result of the movement of the Mexican peso against the U.S. dollar and its impact on the remeasurement of the Mexico financial statements during the period.

(vii)   During the three and six months ended June 30, 2026,we recorded a change in our accrual related to the permanent reinvestment of foreign earnings, recognized prior-year tax liabilities, associated tax impacts related to the above current and prior-year non-GAAP adjustments, and recapture of prior-year U.S. tax benefits. These were partially offset by the utilization of previously unbenefited capital losses, recognition of a deferred tax asset, and interest income on previously recognized tax benefits associated with certain Brazilian local incentives that were previously taxable.

Ingredion Incorporated
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
(Unaudited)
(dollars in millions, pre-tax)
Three Months Ended
June 30, Six Months Ended
June 30,2026 2025  2026  2025 Operating income$188 $271  $391 $547         Adjustments:               Acquisition/integration costs (i) 6  —   6  —         Impairment charges (ii) 31  —   31  6         Restructuring costs (iii) 14  3   25  4         Other matters (v) 19  (1)  17  (11)        Non-GAAP adjusted operating income$258 $273  $470 $546 For notes (i) through (v), see notes (i) through (v) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

Ingredion Incorporated
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate
(Unaudited)
(dollars in millions, except for percentages)

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income
Tax Rate (b/a) Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income
Tax Rate (b/a)As Reported$175  $59  33.7% $369  $109  29.5%            Adjustments:                       Acquisition/integration costs (i) 53   12     53   12               Impairment charges (ii) 33   11     33   11               Restructuring costs (iii) 14   5     25   6               Net (gain) on sale of business (iv) (44)  (27)    (44)  (27)              Other matters (v) 19   5     17   5               Tax item–Mexico (vi) —   2     —   6               Other tax matters (vii) —   1     —   (3)              Adjusted Non-GAAP$250  $68  27.2% $453  $119  26.3% Three Months Ended June 30, 2025 Six Months Ended June 30, 2025Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income
Tax Rate (b/a) Income before Income Taxes (a) Provision for Income Taxes (b) Effective Income
Tax Rate (b/a)As Reported$259  $61 23.6% $526  $129  24.5%            Adjustments:                       Impairment charges (ii) —   1    6   2               Restructuring costs (iii) 3   1    4   1               Other matters (v) (1)  —    (11)  (3)              Tax item–Mexico (vi) —   6    —   7               Other tax matters (vii) —   2    —   2               Adjusted Non-GAAP$261  $71 27.2% $525  $138  26.3% For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

Ingredion Incorporated
Reconciliation of Expected GAAP Diluted Earnings Per Share (“GAAP EPS”)
to Expected Adjusted Diluted Earnings Per Share (“Adjusted EPS”)
(Unaudited)
Expected EPS Range
for Full-Year 2026Low End of
Guidance High End of
GuidanceGAAP EPS$9.15  $9.75     Adjustments:       Acquisition/integration costs (i) 0.64   0.64     Impairment charges (ii) 0.34   0.34     Restructuring costs (iii) 0.30   0.30     Net (gain) on sale of business (iv) (0.27)  (0.27)    Other matters (v) 0.19   0.19     Tax item–Mexico (vi) (0.09)  (0.09)    Other tax matters (vii) 0.04   0.04     Adjusted EPS$10.30  $10.90 For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

Ingredion Incorporated
Reconciliation of Expected GAAP Effective Income Tax Rate (“GAAP ETR”)
to Expected Adjusted Effective Income Tax Rate (“Adjusted ETR”)
(Unaudited)
Expected Effective Income
Tax Rate Range
for Full-Year 2026Low End of
Guidance High End of
GuidanceGAAP ETR27.4% 28.9%    Adjustments:       Acquisition/integration costs (i)(0.3%) (0.3%)    Impairment charges (ii)0.2% 0.2%    Restructuring costs (iii)(0.1%) (0.1%)    Net (gain) on sale of business (iv)(1.6%) (1.6%)    Other matters (v)0.1% 0.1%    Tax item–Mexico (vi)0.6% 0.6%    Other tax matters (vii)(0.3%) (0.3%)    Adjusted ETR26.0% 27.5% For notes (i) through (vii), see notes (i) through (vii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings Per Share (“EPS”) to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.

CONTACTS:
Investors: Noah Weiss, 773-896-5242
Media: Rick Wion, 708-209-6323

Original source text

CHICAGO--(BUSINESS WIRE)--ADM (NYSE: ADM) today reported financial results for the quarter ended June 30, 2026 and updated its full-year 2026 outlook.

2Q26 Key Takeaways:

Net earnings of $908 million, with adjusted net earnings1 of $895 million EPS2 of $1.87, with adjusted EPS1,2 of $1.84 2026 Outlook3:

ADM now expects 2026 adjusted EPS1,2 of approximately $5.15 to $5.60, up from the prior adjusted EPS1,2 guidance range of $4.15 to $4.70 The updated outlook reflects expected year-over-year earnings improvement in ADM's crushing and ethanol businesses, as the Company expects to continue capitalizing on the constructive margin environment through disciplined execution. That environment stems primarily from the finalized 2026 and 2027 renewable volume obligations ("RVO") under the U.S. Renewable Fuel Standard in March 2026, supported by global trade dynamics and elevated energy prices. Additionally, performance continues to improve in Nutrition Continuing to monitor external factors across the macroeconomic, geopolitical, policy, and trade environments Capital expenditures continue to be projected to be in the range of $1.3 billion to $1.5 billion "ADM delivered robust second-quarter financial and operating results," said Juan Luciano, Chair of the Board and CEO. "Segment operating profit rose significantly year-over-year and sequentially, with broad-based growth across all three segments—driven by strong commercial and operational execution by the team, a constructive biofuels environment, and momentum in Nutrition, led by Flavors. These results, and the expectations we have into the back half of this year, give us confidence to again raise our 2026 earnings outlook.”

Second Quarter and Year-to-Date 2026 Results

2Q26 Results Overview

($ in millions except per share amounts)

GAAP Measures

Earnings Before Income Taxes

EPS2 (as reported)

2Q26

$1,088

$1.87

Percent change vs. 2Q 2025

NM3

NM3

Non-GAAP Measures

Total Segment Operating Profit1

Adjusted EPS1,2

2Q26

$1,450

$1.84

Percent change vs. 2Q 2025

75%

98%

YTD 2026 Results Overview

($ in millions except per share amounts)

GAAP Measures

Earnings Before Income Taxes

EPS2 (as reported)

YTD 2026

$1,472

$2.49

Percent change vs. YTD 2025

133%

135%

Non-GAAP Measures

Total Segment Operating Profit1

Adjusted EPS1,2

YTD 2026

$2,214

$2.56

Percent change vs. YTD 2025

40%

57%

1 Non-GAAP financial measures; see pages 7-8 and 14-17 for explanations and reconciliations.

2 All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis.

3 NM: Not Meaningful. Percentage increases above 200% or when one period includes income and other period includes loss are considered not meaningful.

Summary of Second Quarter and Year-to-Date 2026

For the second quarter of 2026, earnings before income taxes were $1.1 billion, compared to the prior year quarter of $279 million. EPS2 on a GAAP basis was $1.87, representing an increase of $1.42 compared to the prior year quarter EPS of $0.45. Adjusted EPS1,2 was $1.84, an increase of $0.91 compared to the prior year quarter of $0.93.

Total second quarter segment operating profit1 was $1.5 billion, an increase of 75% compared to the prior year quarter. This excludes net specified item gains of $18 million.

Earnings before income taxes were $1.5 billion year-to-date in 2026, compared to the prior year period of $632 million. Total segment operating profit1 was $2.2 billion year-to-date in 2026, up 40% versus the prior year period. EPS2 on a GAAP basis was $2.49, up $1.43 versus the prior year period, and adjusted EPS1,2 was $2.56, up $0.93 versus the prior year period.

2Q26 Segment Overview

($ in millions)

2Q 2026

2Q 2025

% Change

Total Segment Operating Profit1

$1,450

$830

75%

Segment Operating Profit:

Ag Services & Oilseeds

867

379

129%

Carbohydrate Solutions

411

337

22%

Nutrition

172

114

51%

YTD 2026 Segment Overview

($ in millions)

YTD 2026

YTD 2025

% Change

Total Segment Operating Profit1

$2,214

$1,577

40%

Segment Operating Profit:

Ag Services & Oilseeds

1,140

791

44%

Carbohydrate Solutions

767

576

33%

Nutrition

307

210

46%

1 Non-GAAP financial measures; see pages 7-8 and 14-17 for explanations and reconciliations.

2 All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis.

Agriculture Services and Oilseeds Summary (AS&O)

AS&O segment operating profit was $867 million for the second quarter of 2026, an increase of 129% compared to the prior year quarter. The increase was primarily due to margin expansion across the segment, most notably in Ag Services and North American crushing, which was supported by the RVO and elevated global energy prices. Current quarter results included around $100 million of net positive mark-to-market and timing impacts, primarily attributable to the Crushing subsegment, with a modest benefit attributable to the Ag Services subsegment, partially offset by a net negative impact attributable to Refined Products and Other subsegment.

Ag Services subsegment operating profit was 159% higher compared to the prior year quarter, primarily as a result of strategically leveraging ADM's global asset network in a complex operating environment to deliver value across the agricultural supply chain. Further, South American operations benefited from the grain export terminal in Barcarena, Brazil, returning to full operations, and increased soybean exports which were supported by higher farmer selling.

Crushing subsegment operating profit increased by $330 million compared to the prior year quarter. The increase was attributable to strong execution by the team in an improved margin environment. Global oilseed volumes increased by approximately 5% compared to the prior year quarter, in part due to improved asset utilization. Margin strength was supported by a constructive environment for biofuels, which was underpinned by the RVO, higher global energy prices, and positive net mark-to-market and timing impacts. Further, stable soybean meal prices supported strong global meal demand, resulting in record meal exports from Brazil and the U.S.

Refined Products and Other subsegment operating profit was 3% lower compared to the prior year quarter. The decrease largely resulted from net negative mark-to-market and timing impacts in the second quarter of 2026. Underlying regional performance was mixed, with strong North American and European biodiesel margins partially offset by net negative mark-to-market timing impacts and supply and demand imbalances in South America impacting local margins.

Equity earnings from the company’s investment in Wilmar were approximately 22% lower compared to the prior year quarter.

2Q 2026 AS&O Overview

($ in millions)

2Q 2026

2Q 2025

% Change

Segment Operating Profit

$867

$379

129%

Ag Services

293

113

159%

Crushing

363

33

NM1

Refined Products and Other

151

156

(3)%

Wilmar

60

77

(22)%

YTD 2026 AS&O Overview

($ in millions)

YTD 2026

YTD 2025

% Change

Segment Operating Profit

$1,140

$791

44%

Ag Services

493

272

81%

Crushing

284

79

NM1

Refined Products and Other

237

291

(19)%

Wilmar

126

149

(15)%

1 NM: Not Meaningful. Percentage increases above 200% or when one period includes income and the other period includes a loss are considered not meaningful.

Carbohydrate Solutions Summary

Carbohydrate Solutions segment operating profit was $411 million for the second quarter of 2026, an increase of 22% compared to the prior year quarter. The increase primarily reflected robust North American ethanol margins, including policy incentives. The RVO, elevated global energy prices, and lower U.S. corn prices together gave ethanol an economic advantage over competing blendstocks, driving both higher domestic blend rates and favorable industry-wide exports.

Starches and Sweeteners subsegment operating profit increased by 7% compared to the prior year quarter, primarily due to higher ethanol margins related to ADM’s corn wet-milling ethanol operations, including policy incentives. This strength was partially offset by lower liquid sweetener volumes and margins, most notably in North America, while global starch volumes and margins stabilized.

Vantage Corn Processors subsegment operating profit increased by $52 million compared to the prior year quarter, as ADM’s corn dry-milling ethanol operations benefited from strengthening ethanol margins, supported by policy incentives and effective risk management.

2Q26 Carbohydrate Solutions Overview

($ in millions)

2Q 2026

2Q 2025

% Change

Segment Operating Profit

$411

$337

22%

Starches and Sweeteners

326

304

7%

Vantage Corn Processors

85

33

158%

YTD 2026 Carbohydrate Solutions Overview

($ in millions)

YTD 2026

YTD 2025

% Change

Segment Operating Profit

$767

$576

33%

Starches and Sweeteners

555

511

9%

Vantage Corn Processors

212

65

NM1

1 NM: Not Meaningful. Percentage increases above 200% or when one period includes income and the other period includes a loss are considered not meaningful

Nutrition Summary

Nutrition segment operating profit was $172 million for the second quarter of 2026, representing a 51% increase compared to the prior year quarter. The year-over-year increase was attributable to improved performance in both the Human Nutrition and Animal Nutrition subsegments.

Human Nutrition subsegment operating profit was 51% higher compared to the prior year quarter, largely driven by Flavors growth, supported by seasonal momentum, and continued progress at the Decatur East plant.

Animal Nutrition subsegment operating profit was 50% higher compared to the prior year quarter, due to operational improvements and benefits from portfolio actions taken during 2025.

2Q26 Nutrition Overview

($ in millions)

2Q 2026

2Q 2025

% Change

Segment Operating Profit

$172

$114

51%

Human Nutrition

139

92

51%

Animal Nutrition

33

22

50%

YTD 2026 Nutrition Overview

($ in millions)

YTD 2026

YTD 2025

% Change

Segment Operating Profit

$307

$210

46%

Human Nutrition

243

168

45%

Animal Nutrition

64

42

52%

Corporate and Other Business Summary

For the second quarter of 2026, Corporate results improved, reflecting the non-recurrence of prior-year quarter impairment losses and lower financing costs, partially offset by higher performance-based compensation. Other Business’s contribution to operating profit decreased in the current year quarter primarily due to lower captive insurance results.

Conference Call Information

ADM will host a webcast today, August 4, 2026, at 7:30 a.m. Central Time to discuss financial results and outlook. To listen to the webcast, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast.

About ADM

ADM unlocks the power of nature to enrich the quality of life. We’re an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. We’re a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. We’re a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. We’re a cutting-edge innovator, guiding the way to a future of new bio-based consumer and industrial solutions. And we're leading in business-driven sustainability efforts that support a strong agricultural sector, resilient supply chains, and a vast and growing bioeconomy. Around the globe, our expertise and innovation are meeting critical needs from harvest to home. Learn more at www.adm.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical or current fact included in this press release, are forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “outlook,” “forecast”, “will,” “should,” “can have,” “likely,” “goals,” “objectives,” “priorities,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements the Company makes relating to its future results of operations and underlying assumptions, as well as growth opportunities, operational execution and improvements, progress on Company priorities, changes to the margin environment, earnings improvements, future demand, future investments, policy changes, capital allocation priorities and actions, the biofuels environment, global trade and tariff conditions, energy prices, and global market volatility are forward-looking statements. All forward-looking statements are subject to significant risks, uncertainties and changes in circumstances that could cause actual results and outcomes to differ materially from those expressed or implied in the forward-looking statements, including, without limitation, (1) operational risks related to equipment failure, natural disasters, epidemics, pandemics, adverse weather conditions, accidents, explosions, fires, war or acts of terrorism, cybersecurity incidents or other unexpected outages; (2) risks related to the availability and prices of agricultural commodities, agricultural commodity products, other raw materials and energy, including impacts from factors outside the Company’s control such as changes in market conditions, weather conditions, crop disease, plantings, climate change, competition and changes in global demand, as well as risks relating to global and regional economic downturns; (3) risks related to compliance with, and changes in, government programs, policies, laws, and regulations, including those related to trade, tariffs, sanctions, biofuels, sustainability, food safety and quality, the environment, tax, and financial markets; (4) risks related to international conflicts, acts of terrorism or war, sanctions, maritime piracy and other geopolitical events or economic disruptions, as well as other risks related to the disruption of global markets and trade flows; (5) risks and uncertainties relating to acquisitions, equity investments, joint ventures, integrations, divestitures, and other transactions; (6) risks relating to the Company’s execution of its strategic priorities, including achieving cost reductions and operational improvements, organic and inorganic growth and innovation in its products and services; (7) risks related to the Company’s technology systems and cybersecurity incidents; and (8) other risks, assumptions and uncertainties that are described in Item 1A, "Risk Factors" included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as may be updated in subsequent Quarterly Reports on Form 10-Q. For these statements, the Company claims the protection of the safe harbor for forward-looking statements in the Private Securities Litigation Reform Act. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Except to the extent required by law, the Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement whether as a result of new information, future events, changes in assumptions or otherwise.

Non-GAAP Financial Measures

The Company uses certain “Non-GAAP” financial measures as defined by the Securities and Exchange Commission. These are measures of performance not defined by accounting principles generally accepted in the United States (GAAP), and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.

Adjusted net earnings and Adjusted earnings per share (EPS). Adjusted net earnings reflects ADM’s reported net earnings after removal of the effect on net earnings of specified items as more fully described in the reconciliation tables below. Adjusted EPS reflects ADM’s diluted EPS after removal of the effect on EPS as reported of specified items as more fully described in the reconciliation tables below. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM’s performance because they provide investors additional information about ADM’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s diluted shares outstanding for each respective period in order to arrive at an adjusted EPS amount for each specified item.

Total segment operating profit. Total segment operating profit is ADM’s consolidated earnings before income taxes adjusted for Other Business, Corporate, and specified items as more fully described in the reconciliation tables below. Management believes that total segment operating profit is a useful measure of ADM’s performance because it provides investors information about ADM’s reportable segment performance excluding Other Business, Corporate overhead costs as well as specified items. Total segment operating profit is not a measure of consolidated operating results under GAAP and should not be considered an alternative to earnings before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under GAAP.

Adjusted Return on Invested Capital (ROIC). Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested capital. Adjusted ROIC earnings is ADM’s net earnings adjusted for the after-tax effects of interest expense on borrowings and specified items. Adjusted invested capital is the sum of ADM’s equity (excluding redeemable and non-redeemable non-controlling interests) and interest-bearing liabilities (which totals invested capital), adjusted for specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM’s returns excluding the impacts of specified items and increases period-to-period comparability of underlying business performance. Management uses Adjusted ROIC to measure ADM’s performance by comparing Adjusted ROIC to its weighted average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC earnings and Adjusted invested capital are non-GAAP financial measures and are not intended to replace or be alternatives to GAAP financial measures.

EBITDA. EBITDA is defined as earnings before interest on borrowings, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted for specified items. The Company calculates Adjusted EBITDA by removing the impact of specified items and adding back the amounts of income tax expense, interest expense on borrowings, and depreciation and amortization to net earnings. Management believes that EBITDA and Adjusted EBITDA are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. EBITDA and Adjusted EBITDA are non-GAAP financial measures and are not intended to replace or be an alternative to net earnings, the most directly comparable GAAP financial measure.

Cash flows from operations before working capital. Cash flows from operations before working capital is defined as cash flows from operating activities adjusted for changes in operating assets and liabilities as presented in the Company’s consolidated statement of cash flows. Management believes that cash flows from operations before working capital is a useful measure of the Company’s cash generation. Cash flows from operations before working capital is a non-GAAP financial measure and is not intended to replace or be an alternative to cash from operating activities, the most directly comparable GAAP financial measure.

Forecasted GAAP Earnings Reconciliation. ADM is not presenting forecasted GAAP earnings per diluted share, forecasted net earnings, forecasted total debt, or forecasted effective tax rate, or a quantitative reconciliation of those metrics to forecasted adjusted earnings per diluted share, forecasted adjusted EBITDA, forecasted net debt, or forecasted adjusted effective tax rate, respectively, in reliance on the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K. ADM is unable to predict with reasonable certainty and without unreasonable effort the impact of any impairment and timing of restructuring-related and other charges, along with acquisition-related expenses and the outcome of certain regulatory, legal and tax matters, as well as other potential reconciling items. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.

Mark-to-market and timing impact

Mark-to-market and timing impacts represent changes in agricultural commodity pricing and foreign currency market factors and are not necessarily reflective of the operating performance of our business. Mark-to-market and timing impacts represent the estimated net unrealized gain and loss impacts of market factor changes on the valuation of certain of our merchandisable commodity inventories (including certain commodity inventories valued at the lower of cost or market), cash purchase and sales contracts, and futures and foreign currency contracts. The final mark-to-market and timing impacts will be realized when the underlying inventory, cash purchase and sales contracts, and futures and foreign currency contracts are settled.

Financial Tables Follow

Source: Corporate Release

Source: ADM

Segment Operating Profit and Corporate Results

(unaudited)

Quarter ended

Six months ended

June 30,

June 30,

(In millions)

2026

2025

Change

2026

2025

Change

Segment Operating Profit

Ag Services and Oilseeds

$

867

$

379

$

488

$

1,140

$

791

$

349

Ag Services

293

113

180

493

272

221

Crushing

363

33

330

284

79

205

Refined Products and Other

151

156

(5

)

237

291

(54

)

Wilmar

60

77

(17

)

126

149

(23

)

Carbohydrate Solutions

$

411

$

337

$

74

$

767

$

576

$

191

Starches and Sweeteners

326

304

22

555

511

44

Vantage Corn Processors

85

33

52

212

65

147

Nutrition

$

172

$

114

$

58

$

307

$

210

$

97

Human Nutrition

139

92

47

243

168

75

Animal Nutrition

33

22

11

64

42

22

Corporate Results

$

(460

)

$

(498

)

$

38

$

(883

)

$

(939

)

$

56

Interest expense - net

(103

)

(112

)

9

(208

)

(212

)

4

Unallocated corporate function costs

(374

)

(294

)

(80

)

(718

)

(647

)

(71

)

Other income - net

19

7

12

50

24

26

Specified items:

Impairment, exit, restructuring charges, and settlement contingencies

(2

)

(99

)

97

(7

)

(104

)

97

Consolidated Statements of Earnings

(unaudited)

Quarter ended

Six months ended

June 30,

June 30,

2026

2025

2026

2025

(in millions, except per share amounts)

Revenues

$

22,681

$

21,166

$

43,171

$

41,341

Cost of products sold

20,746

19,796

40,014

38,791

Gross Profit

1,935

1,370

3,157

2,550

Selling, general, and administrative expenses

1,026

911

1,987

1,843

Asset impairment, exit, and restructuring costs

13

137

25

175

Equity in (earnings) of unconsolidated affiliates

(142

)

(134

)

(231

)

(278

)

Interest and investment (income) expense

(116

)

70

(241

)

(68

)

Interest expense

148

159

297

317

Other (income) - net

(82

)

(52

)

(152

)

(71

)

Earnings Before Income Taxes

1,088

279

1,472

632

Income tax expense

176

62

257

123

Net Earnings Including Non-controlling Interests

912

217

1,215

509

Less: Net earnings (loss) attributable to non-controlling interests

4

(2

)

9

(5

)

Net Earnings Attributable to ADM

$

908

$

219

$

1,206

$

514

Diluted earnings per common share

$

1.87

$

0.45

$

2.49

$

1.06

Weighted average number of shares outstanding – diluted

485

484

485

484

Summary of Financial Condition

(unaudited)

June 30,
2026

June 30,
2025

(in millions)

Net Investment In

Cash and cash equivalents

$

1,060

$

1,057

Short-term marketable securities

33

9

Operating working capital

8,254

8,377

Property, plant, and equipment

10,979

11,142

Investments in affiliates

5,901

5,175

Goodwill and other intangibles

6,498

7,036

Other non-current assets

2,350

2,351

$

35,075

$

35,147

Financed By

Short-term debt

$

407

$

856

Long-term debt, including current maturities

7,604

8,372

Deferred liabilities

3,192

3,232

Temporary equity

292

249

Shareholders’ equity

23,580

22,438

$

35,075

$

35,147

Summary of Cash Flows

(unaudited)

Six months ended

June 30

2026

2025

(in millions)

Cash flows from operating activities (1)

Net earnings including non-controlling interests

$

1,215

$

509

Depreciation and amortization

586

578

Asset impairment charges

5

105

(Gain) loss on asset contributions, sales and investment revaluation, net

(85

)

150

Other – net

38

(109

)

Other changes in operating assets and liabilities

(460

)

2,723

Net cash provided by operating activities

1,299

3,956

Cash flows from investing activities

Capital expenditures

(466

)

(596

)

Net assets of businesses acquired

—

(95

)

Proceeds from sales of assets, businesses and investments

56

41

Purchases of marketable securities

—

(11

)

Proceeds from sales of marketable securities

6

267

Other – net

31

3

Net cash used in investing activities

(373

)

(391

)

Cash flows from financing activities

Long-term debt payments

(5

)

—

Net repayments under lines of credit agreements

(389

)

(1,057

)

Cash dividends

(510

)

(495

)

Acquisition of non-controlling interest

—

(4

)

Other – net

(51

)

(23

)

Net cash used in financing activities

(955

)

(1,579

)

Effect of exchange rate on cash, cash equivalents, restricted cash, and restricted cash equivalents

(19

)

34

Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents

(48

)

2,020

Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period

5,505

3,924

Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period

$

5,457

$

5,944

1 Cash flows from operations before working capital is a Non-GAAP financial measure. Cash flows from operations before working capital year-to-date 2026 was $1.8 billion, calculated as cash flows provided by operating activities of $1.3 billion, adjusted for changes in working capital of $(460) million. Cash flows from operations before working capital year-to-date 2025 was $1.2 billion, calculated as cash flows provided by operating activities of $4.0 billion, adjusted for changes in working capital of $2.7 billion for year-to-date 2025.

Segment Operating Analysis

(unaudited)

Quarter ended

Six months ended

June 30,

June 30,

2026

2025

2026

2025

(in ‘000s metric tons)

Certain processed volumes (by commodity)

Oilseeds

9,477

9,051

18,776

18,142

Corn

4,736

4,614

9,278

9,195

Quarter ended

Six months ended

June 30,

June 30,

2026

2025

2026

2025

(in millions)

Revenues

Ag Services and Oilseeds

$

17,916

$

16,269

$

33,917

$

31,944

Carbohydrate Solutions

2,757

2,792

5,316

5,362

Nutrition

1,902

1,993

3,707

3,810

Total Segment Revenues

22,575

21,054

42,940

41,116

Other Business

106

112

231

225

Total Revenues

$

22,681

$

21,166

$

43,171

$

41,341

Total Segment Operating Profit

A Non-GAAP financial measure

(unaudited)

Quarter ended

Six months ended

June 30

June 30

(In millions)

2026

2025

Change

2026

2025

Change

Earnings before income taxes

$

1,088

$

279

$

809

$

1,472

$

632

$

840

Other Business (earnings)

(80

)

(94

)

14

(133

)

(190

)

57

Corporate

460

498

(38

)

883

939

(56

)

Specified items:

(Gain) on sales of assets and businesses

(21

)

(8

)

(13

)

(83

)

(8

)

(75

)

Impairment, exit, restructuring charges, and settlement contingencies

3

224

(221

)

20

273

(253

)

(Gain) on contract termination

—

(69

)

69

—

(69

)

69

ADM's share of equity method investment non-recurring charges

$

—

$

—

$

—

$

55

$

—

$

55

Total Segment Operating Profit

$

1,450

$

830

$

620

$

2,214

$

1,577

$

637

Adjusted Net Earnings and Adjusted EPS

Non-GAAP financial measures

(unaudited)

Quarter ended June 30,

Six months ended June 30,

2026

2025

2026

2025

In millions

Per share

In millions

Per share

In millions

Per share

In millions

Per share

Net earnings and reported EPS (diluted)

$

908

$

1.87

$

219

$

0.45

$

1,206

$

2.49

$

514

$

1.06

Adjustments:

(Gain) on sales of assets and businesses (a)

(19

)

(0.04

)

(6

)

(0.01

)

(66

)

(0.13

)

(6

)

(0.01

)

Impairment, exit, restructuring charges, and settlement contingencies (b)

6

0.01

291

0.60

35

0.07

334

0.69

ADM's share of equity method investment non-recurring charges (c)

—

—

—

—

55

0.11

—

—

(Gain) on contract termination (d)

—

—

(52

)

(0.11

)

—

—

(52

)

(0.11

)

Certain discrete tax adjustments (e)

—

—

—

—

10

0.02

—

—

Total adjustments

(13

)

(0.03

)

233

0.48

34

0.07

276

0.57

Adjusted net earnings and adjusted diluted EPS

$

895

$

1.84

$

452

$

0.93

$

1,240

$

2.56

$

790

$

1.63

(a) Current year quarter gains of $21 million ($19 million after tax) includes gains from sales of assets, tax effected using the applicable income tax rate. Current YTD gains of $83 million ($66 million after tax) includes gains from contribution of assets to joint venture arrangements, tax effected using the applicable income tax rate. Prior year quarter and YTD amounts of $8 million ($6 million after tax) were related to the gain from the sale of a facility, tax effected using the Company’s U.S. income tax rate.

(b) Current year quarter and YTD charges of $5 million and $40 million ($6 million and $35 million after tax), respectively, were primarily driven by charges related to inventory adjustments and contingent settlements, tax effected using the applicable tax rates. Prior year quarter and YTD charges of $323 million and $377 million pretax ($291 million and $334 million after tax), respectively, were primarily driven by impairment of certain investments, impairment of long lived assets and other restructuring charges pursuant to the Company’s portfolio optimization efforts, and contingent settlements, tax effected using the applicable tax rates.

(c) Current year YTD charges of $55 million were driven by the Company’s share of non-recurring charges related to provisions recorded by Wilmar.

(d) Prior year quarter and YTD gains of $69 million ($52 million after tax) relate to the recognition of income due to a cancelled contract with a cost method investee, tax effected using the applicable income tax rate.

(e) Discrete tax adjustment relates to the non-recurring impact of updated tax regulations.

Return on Invested Capital (ROIC) and Adjusted ROIC

Non-GAAP financial measures

(unaudited)

Adjusted ROIC Earnings (in millions)

Four Quarters

Quarter Ended

Ended

Sep. 30, 2025

Dec. 31, 2025

Mar. 31, 2026

June 30, 2026

June 30, 2026

Net earnings attributable to ADM

$

108

$

456

$

298

$

908

$

1,770

Adjustments:

Interest expense(1)

106

108

111

107

432

Tax on interest

(25

)

(26

)

(26

)

(25

)

(102

)

Total ROIC Earnings

189

538

383

990

2,100

Other adjustments, net of tax

341

(35

)

47

(13

)

340

Total Adjusted ROIC Earnings

$

530

$

503

$

430

$

977

$

2,440

Adjusted Invested Capital (in millions)

Quarter Ended

Trailing Four

Sep. 30, 2025

Dec. 31, 2025

Mar. 31, 2026

June 30, 2026

Quarter Average

Equity(2)

$

22,494

$

22,733

$

22,804

$

23,573

$

22,901

Interest-bearing liabilities(3)

7,956

8,509

9,426

8,107

8,500

Total Invested Capital

30,450

31,242

32,230

31,680

31,401

Other adjustments, net of tax

341

(35

)

47

(13

)

85

Total Adjusted Invested Capital

$

30,791

$

31,207

$

32,277

$

31,667

$

31,486

Return on Invested Capital

6.7

%

Adjusted Return on Invested Capital

7.8

%

(1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense

(2) Excludes non-controlling interests

(3) Includes short-term debt, long term debt and finance lease obligations

Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA) and Adjusted EBITDA

Non-GAAP financial measures

(unaudited)

Four Quarters

Four Quarters

Quarter Ended

Ended

Ended

Sep. 30, 2025

Dec. 31, 2025

Mar. 31, 2026

June 30, 2026

June 30, 2026

June 30, 2025

(in millions)

Net earnings

$

108

$

456

$

298

$

908

$

1,770

$

1,099

Net earnings (loss) attributable to non-controlling interests

2

(2

)

5

4

9

(11

)

Income tax expense

37

22

81

176

316

319

Interest expense(1)

106

108

111

107

432

488

Depreciation and amortization(2)

295

296

289

292

1,172

1,145

EBITDA

548

880

784

1,487

3,699

3,040

(Gain) on sales of assets and businesses

(31

)

—

(62

)

(21

)

(114

)

(19

)

Impairment, exit, restructuring charges, and settlement contingencies

261

293

35

5

594

865

ADM's share of equity method investment non-recurring charges and (gains), net

163

(254

)

55

—

(36

)

—

(Gain) on contract termination

—

—

—

—

—

(69

)

Expenses related to acquisitions

—

—

—

—

—

3

Railroad maintenance expense

12

47

—

1

60

64

Adjusted EBITDA

$

954

$

965

$

812

$

1,472

$

4,203

$

3,884

(1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense

(2) Excludes $3 million, $9 million, $4 million, and $1 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026, respectively.

Original source text

, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) (the "Company" or "Prologis") announced today the commencement of an underwritten public offering of 15,000,000 shares of its common stock.

J.P. Morgan and BofA Securities are acting as the underwriters for the offering.

The Company expects to grant the underwriters a 30-day option, exercisable in whole or in part from time to time, to purchase up to an additional 2,250,000 shares of the Company's common stock solely to cover overallotments in connection with the offering.

The Company intends to contribute the net proceeds from this offering to its operating partnership, which intends to use the net proceeds from the offering for general corporate purposes, including to fund potential acquisitions such as SEGRO plc ("SEGRO"). There can be no assurance that the Company will complete the SEGRO combination on the proposed terms, on the anticipated timeline, or at all.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. All of the shares of common stock will be offered pursuant to the Company's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. When available, a copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained from J.P. Morgan Securities LLC, Attention: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by emailing [email protected] and [email protected]; BofA Securities, Inc., Attn: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001 or by emailing [email protected]; or by visiting the EDGAR database on the SEC's website at www.sec.gov.

ABOUT PROLOGIS

The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next.

FORWARD-LOOKING STATEMENTS

The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to the combination with SEGRO, rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our and SEGRO's properties; (iv) risks associated with acquisitions, dispositions and development of properties, including those specific to data center development and the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that Prologis and SEGRO maintain and their credit ratings; (vii) risks related to Prologis' and SEGRO's investments in and management of their co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to global pandemics; (xi) Prologis' and SEGRO's ability to complete the combination on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties relating to satisfying the conditions to the combination; (xii) the effect of the combination on the ability of Prologis and SEGRO to operate their respective businesses and retain and hire key personnel and to maintain favorable business relationships; (xiii) failure to realize the expected benefits or synergies of the combination; (xiv) significant transaction costs and/or unknown or inestimable liabilities; (xv) the risk of shareholder litigation in connection with the combination, including resulting expense or delay; (xvi) the risk that SEGRO's business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (xvii) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance; (xviii) risks related to the market value of the Prologis common stock to be issued in the combination, including foreign currency exchange rates; (xix) other risks related to the completion of the combination and actions related thereto; and (xx) those additional factors discussed under Part I, Item 1A. Risk Factors in Prologis' Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent documents filed with the SEC by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

SOURCE Prologis, Inc.

Original source text

-

NEW YORK--(BUSINESS WIRE)--Spotify Technology S.A. (NYSE: SPOT) has released its results for the second quarter of 2026 today. Please visit investors.spotify.com to view the Shareholder Deck and other supplemental materials.

As previously announced, the company will host a live question and answer session to discuss second quarter 2026 results at 8:00 a.m. Eastern Time. Alex Norström and Gustav Söderström, our Co-Chief Executive Officers, and Christian Luiga, our Chief Financial Officer, will be on hand to answer questions. Questions can be submitted by going to slido.com and using the code #SpotifyEarningsQ226.

What: Spotify Second Quarter 2026 Financial Results Q&A Webcast
When: Tuesday, August 4, 2026
Time: 8:00 a.m. Eastern Time
Q2 2026 Update: https://investors.spotify.com/
Webcast: https://app.webinar.net/24zaxYZl1G3
Slido Event Code: #SpotifyEarningsQ226

A live webcast of the earnings call will be accessible at investors.spotify.com and a recording of the webcast will be available following the session.

About Spotify Technology S.A.

Spotify’s platform revolutionized music listening forever when we launched in 2008. Today, more listeners than ever can discover, manage and enjoy over 100 million tracks, 7 million podcast titles, and 500,000 audiobooks in select markets on Spotify. We are the world’s most popular audio streaming subscription service with 777 million users, including 300 million subscribers across 184 markets.

Source: Spotify Technology S.A.

More News From Spotify Technology S.A.

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Original source text

Spotify's logo at the headquarters on Regeringsgatan in Stockholm, Sweden November 18, 2025. TT News Agency/Fredrik Sandberg/via REUTERS Purchase Licensing Rights, opens new tab

Aug 4 (Reuters) - Spotify (SPOT.N), opens new tab forecast third-quarter profit below Wall Street estimates on Tuesday, after the streaming giant reported slowing user growth in ‌major markets of Europe and North America, driving shares around 5% lower in premarket trading.

The Swedish company has launched AI features like "Personal Podcasts" and new offerings such as "Reserved" to attract more user and fend off ⁠competition from rivals including YouTube and Netflix, and AI music startups like Udio and Suno.

The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.

Spotify said it expects operating income of €670 million ($770.97 million) in the third quarter, below analysts' average estimates of €677.8 million, according to data compiled by Visible Alpha.

In the second quarter, its operating income came in at €655 million, beating estimates of €639.2 million, driven by strong revenue growth ‌and ⁠lower payroll taxes.

Such taxes, called social charges, are tied to the value of the company's share price. The company's shares have fallen about 16% so far this year.

Its quarterly revenue rose 14% to €4.78 ⁠billion, slightly below LSEG-compiled estimates of €4.80 billion. The revenue forecast for third quarter of €5 billion was slightly above estimates of €4.93 billion.

Its ⁠monthly active users forecast of 788 million was below Visible Alpha estimates of 793.6 million, while its outlook for ⁠a 5 million increase in premium subscribers to 305 million was largely inline with estimates.

($1 = 0.8690 euros)

Reporting by Jaspreet Singh in Bengaluru; Editing by Leroy Leo

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Original source text

Lucid Group Inc. (NASDAQ:LCID) is set to report its earnings following market close on Tuesday. However, falling sales figures, combined with the volatility of the stock, could pose challenges for the EV maker.

According to data from market research firm Motor Intelligence cited by an Electric Vehicles report on Monday, Lucid sold an estimated 860 units in the U.S. during July. The figure represents a 3.4% YoY decline from July 2025 and a 5.7% decline from June 2026, the report said.

Notably, Lucid reported zero sales in four months in the Norwegian market, the report said. Norway remains one of the most popular markets for Battery Electric vehicles, with Norwegian Road Traffic Information Council data showing that EVs accounted for over 97% of Norway’s total new car registrations in July.

Lucid’s lackluster U.S. sales come despite the company offering incentives like 0% financing for 72 months on 2026 Lucid Gravity units, as well as incentives worth up to $16,000 through various schemes on the stock, the report said. The Lucid Air sedan also had its own incentives worth up to $10,000, the report added.

Motor Intelligence data only covers U.S. sales, but Lucid also operates in markets like Saudi Arabia and Canada, among others.

Lucid’s Bankruptcy Rumors, Stock MovementThe news comes as Lucid CEO Silvio Napoli had dismissed reports that the automaker was going to file for bankruptcy. Slamming the reports, Napoli said that the EV maker was “not considering bankruptcy or a transaction to take the company private."

Lucid’s Chief Communications Officer Nick Twork had earlier denied rumors of bankruptcy, saying that the automaker had delivered a cease-and-desist letter to the outlet behind the report.

The automaker, during the second quarter of 2026, produced 4,774 vehicles and delivered 3,953 units, amid a series of changes in its leadership.

Price Action: LCID, since the beginning of the year, has declined over 30%. Lucid shares were trading for around $11/share on January second, but have since fallen to $7.70/share at market close on Monday.

According to Benzinga Edge Rankings, Lucid offers poor Momentum, but provides a favorable price trend in the Short and Medium term.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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Original source text

AI-enabled customer operations achieve a 98.7% answer rate, nearly 80% autonomous problem resolution and approximately 1,500 hours of daily speech-to-text processing

, /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets, today announced the continued expansion of AI deployment across customer operations, including intelligent customer service, outbound communications, quality controls and workflow automation.

Customer operations encompass some of the Company's highest-volume workflows, spanning service, sales and asset-recovery interactions. Deploying AI across these high-volume workflows illustrates how the Company is extending AI beyond discrete task automation into shared operational capabilities that can be applied across additional business functions over time.

"Customer operations represent a proven example of how agent-driven execution can create value at scale," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "By embedding AI into high-volume workflows, we are expanding service capacity and responsiveness while enabling our teams to focus on cases that require greater judgment and human engagement. These module deployments provide a solid foundation to support our future expansion into AI-powered business beyond fintech."

AI-Enabled Customer Operations at Scale

Yiren Digital's self-developed AI agent platform, MagiCube 2.0, serves as the Company's enterprise AI operating platform, providing the common infrastructure for AI agent deployment. XuanJi, the Company's AI-driven workflow execution layer, supports repetitive, high-volume processes such as outbound customer service, telesales, insurance proposal generation, lending operations and post-sale engagement. Together, these systems enable AI deployment across multiple customer-facing workflows through a unified enterprise architecture.

Current examples of AI deployment across customer operations and related outcomes include:

Intelligent customer service: The Qingniao intelligent customer-service system achieved a 98.7% answer rate, and its text-based service agent's autonomous problem-resolution rate increased from 60% to nearly 80%.

Voice-AI: The Fengchao AI voice agent supports approximately 1,500 hours of real-time speech-to-text processing per day, with recognition accuracy as high as 97.8%.

Automated quality assurance: A quality-inspection agent performs real-time checks on more than 2 million sales records daily, supporting consistent review at a scale that would be difficult to achieve through manual processes alone.

24/7 customer support: The Company's credit business operates a 24/7 AI-assisted outbound-call customer-service center, extending service availability and supporting high-volume customer communications.

In addition to AI-enhanced customer solutions, all customer complaints were handled within 24 hours in 2025, and the Company's complaint-handling success rate reached 100% with total complaint volume decreasing by 35.97% year over year. These results reflect the Company's broader customer-protection and service-management efforts.

Embedding AI Across Customer Operations

Together, these deployments demonstrate how Yiren Digital is extending AI beyond standalone applications into core customer operations. By integrating AI agents, workflow execution and automated quality controls within a unified enterprise architecture, the Company is building a more consistent and scalable operating model while supporting its long-term transition toward an AI-native, multi-industry operating platform.

Yiren Digital will continue expanding AI deployment across customer acquisition, customer service, quality assurance and post-sale engagement, supported by centralized orchestration and governance across regulated business lines.

About Yiren Digital

Yiren Digital Ltd. is a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets. The Company leverages advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion. Following the regulatory filing of its in-house developed Large Language Model Zhiyu, and the significant enhancement of its MagiCube Agent platform, Yiren Digital is establishing a new growth engine to accelerate its evolution into an AI-native, multi-industry operating platform extending beyond traditional financial services. For more information, please visit https://ir.yiren.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "aim," "anticipate," "believe," "estimate," "expect," "hope," "going forward," "intend," "ought to," "plan," "project," "potential," "seek," "may," "might," "can," "could," "will," "would," "shall," "should," "is likely to" and the negative form of these words and other similar expressions. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident," and similar expressions. Forward-looking statements are based on management's current expectations, assumptions, and assessments of current market and operating conditions. These statements involve inherent risks, uncertainties, and other factors, many of which are outside the control of the Company, and which could cause actual results to differ materially from those expressed or implied in such statements. Actual results may differ materially from those expressed or implied in forward-looking statements due to a variety of factors and other risks described in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company undertakes no, and expressly disclaims any, obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law.

SOURCE Yiren Digital Ltd.

Original source text

Coca-Cola Europacific Partners PLC (LSE:CCEP, NASDAQ:CCEP) was hit by profit-taking after the drinks bottler reported higher first-half profit and reaffirmed its full-year guidance.

The shares fell 4.3% to 7,710p, having hit an all-time high in the run-up to the interim results.

Revenue increased 4.4% to €10.7 billion in the six months to 3 July, or 6.1% on a comparable currency-neutral basis. Reported operating profit rose 6.9% to €1.5 billion, while diluted earnings per share climbed 9.1% to €2.17.

However, second-quarter revenue growth slowed to 2.5%, or 3.3% excluding currency movements. Revenue per unit case edged up just 0.1%, even as volumes grew 3.2% after adjusting for trading days.

In Europe, quarterly volumes increased 2.3%, supported by warmer weather in June and the company's FIFA World Cup marketing campaign. Asia-Pacific volumes rose 5%, driven by the Philippines and a recovery in Indonesia.

Chief executive Damian Gammell said the consumer environment remained challenging, while the full impact of the conflict in the Middle East was uncertain.

The group retained its guidance for currency-neutral revenue growth of between 3% and 4% in the 2026 financial year, alongside operating profit growth of around 7%.

It also continues to expect free cash flow of at least €1.7 billion. Coca-Cola Europacific Partners has completed €593 million of its planned €1 billion share buyback.

Original source text

Posted by Defense World Staff on Aug 4th, 2026

Eaton Corporation, PLC (NYSE:ETN – Get Free Report) shares hit a new 52-week high on Monday following a better than expected earnings announcement. The stock traded as high as $438.76 and last traded at $438.4160, with a volume of 3621802 shares changing hands. The stock had previously closed at $415.20.

The industrial products company reported $3.15 EPS for the quarter, beating the consensus estimate of $3.08 by $0.07. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The company had revenue of $8.53 billion during the quarter, compared to analysts’ expectations of $8.16 billion. During the same quarter in the previous year, the company posted $2.95 EPS. The business’s revenue for the quarter was up 21.4% compared to the same quarter last year. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS.

Eaton Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be paid a $1.10 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $4.40 annualized dividend and a yield of 1.0%. Eaton’s dividend payout ratio is presently 44.76%.

Eaton News Roundup Here are the key news stories impacting Eaton this week:

Positive Sentiment: Record results exceeded expectations. Eaton reported quarterly sales of approximately $8.5 billion, up 21% year over year, while adjusted earnings per share of $3.15 topped the $3.08 consensus estimate. Segment margins reached 23.1%, above the high end of management’s guidance. Eaton rises after record Q2 results and higher full-year outlook Positive Sentiment: Management raised its 2026 outlook. Full-year adjusted EPS guidance increased to $13.40-$13.60, while organic sales growth guidance rose to 11%-13%. Improved output in Electrical Americas and broad order growth support the upgraded forecast. ETN Q2 Earnings Call Highlights Ramp Progress and Raised Outlook Positive Sentiment: Data-center demand remains a major growth catalyst. Electrical Americas orders rose 41%, Electrical Global orders increased 33%, and electrical-sector data-center orders surged about 85% from the prior-year quarter. RBC said Eaton’s data-center construction backlog positions it well for a sustained growth cycle. Eaton Well-Positioned for Growth Surge Based on Data Center Construction Backlog, RBC Says Positive Sentiment: Analyst sentiment improved. BMO Capital Markets raised its price target from $477 to $487 and maintained an “outperform” rating. Other analysts also boosted forecasts following the earnings beat and higher guidance. Eaton Analysts Boost Their Forecasts After Strong Q2 Earnings Analyst Ratings Changes Several research firms have recently issued reports on ETN. JPMorgan Chase & Co. boosted their target price on Eaton from $406.00 to $445.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. BMO Capital Markets increased their price target on shares of Eaton from $477.00 to $487.00 and gave the company an “outperform” rating in a research report on Monday. Sanford C. Bernstein restated an “outperform” rating on shares of Eaton in a report on Monday. KeyCorp upped their target price on shares of Eaton from $420.00 to $480.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Wells Fargo & Company increased their target price on shares of Eaton from $350.00 to $425.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $430.89.

Check Out Our Latest Report on ETN

Insiders Place Their Bets In related news, Director Dorothy C. Thompson sold 167 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $385.00, for a total value of $64,295.00. Following the sale, the director directly owned 1,096 shares of the company’s stock, valued at approximately $421,960. The trade was a 13.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Peter Denk sold 2,000 shares of the business’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $417.94, for a total value of $835,880.00. Following the completion of the sale, the insider owned 7,102 shares in the company, valued at approximately $2,968,209.88. This trade represents a 21.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 21,028 shares of company stock worth $8,614,793 in the last three months. 0.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Eaton A number of hedge funds and other institutional investors have recently bought and sold shares of ETN. Bartlett & CO. Wealth Management LLC increased its position in shares of Eaton by 9.2% during the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 238,030 shares of the industrial products company’s stock worth $75,815,000 after purchasing an additional 19,958 shares during the last quarter. Burling Wealth Partners LLC boosted its holdings in shares of Eaton by 63.0% in the 4th quarter. Burling Wealth Partners LLC now owns 11,296 shares of the industrial products company’s stock valued at $3,598,000 after buying an additional 4,366 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Eaton by 239,384.8% in the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 158,060 shares of the industrial products company’s stock valued at $50,344,000 after buying an additional 157,994 shares during the last quarter. Pioneer Trust Bank N A OR grew its stake in shares of Eaton by 669.1% in the fourth quarter. Pioneer Trust Bank N A OR now owns 6,230 shares of the industrial products company’s stock valued at $1,984,000 after buying an additional 5,420 shares in the last quarter. Finally, Entropy Technologies LP acquired a new position in Eaton during the fourth quarter worth $14,786,000. Institutional investors and hedge funds own 82.97% of the company’s stock.

Eaton Stock Performance The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.91. The stock’s fifty day moving average is $405.81 and its two-hundred day moving average is $386.28. The firm has a market capitalization of $170.24 billion, a price-to-earnings ratio of 44.60, a P/E/G ratio of 2.65 and a beta of 1.18.

About Eaton (Get Free Report)

Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.

Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.

See Also Five stocks we like better than Eaton SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Why Rare Earth Processing Could Be the Real 2027 Opportunity The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? Receive News & Ratings for Eaton Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eaton and related companies with MarketBeat.com's FREE daily email newsletter.

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Original source text

Zbrojařská skupina Czechoslovak Group pokračuje v rozsáhlé expanzi výrobních kapacit v Evropě. Po loňské akvizici výrobce nitrocelulózy nyní získala průmyslový areál v německém Sasku, kde plánuje investovat 100 milionů eur do výroby nitroglycerinu, energetických materiálů a munice.

Zbrojařská a strojírenská skupina Czechoslovak Group (CSG) získala průmyslový areál v Německu, kde chce vyrábět energetický materiál, jako je nitroglycerin, a munice. Investovat chce do projektu 100 milionů eur (2,4 miliardy korun), kupní cenu ale nezveřejnila.

Areál Gnaschwitz, který má 57 hektarů, se nachází nedaleko saského Budyšína a CSG ho získala od španělské společnosti MAXAM, jež patří mezi největší evropské výrobce průmyslových trhavin a vojenských energetických materiálů.

CSG chce v tomto areálu vyrábět nitroglycerin a další produkty na jeho bázi. Podle skupiny představují klíčové suroviny pro výrobu dvousložkových i vícesložkových střelných prachů, které slouží jako pohonné náplně pro malorážovou, středněrážovou i velkorážovou munici. Produkce nitroglycerinu a navazujících produktů bude určena pro potřeby společností patřících pod CSG i pro zákazníky mimo skupinu.

V první fázi investice chce také CSG vybudovat výrobní kapacity pro munici a muniční komponenty. "Tato investice přispěje k rozšíření výrobních kapacit, po nichž v Německu i celé Evropě dlouhodobě roste poptávka," stojí v tiskové zprávě.

V areálu Gnaschwitz je podle skupiny do budoucna prostor i pro další rozvoj. Stávající infrastruktura umožňuje rozšířit výrobu například o sestavování munice středních ráží, tankové a 120milimetrové minometné munice nebo výrobu muničních komponentů.

CSG už v Německu má závod na výrobu energetických materiálů. Minulý rok dokončil slovenský výrobce munice MSM Group, který patří pod CSG, převzetí průmyslového parku Walsrode v Bomlitzu, kde se vyrábí nitrocelulóza. Ani tehdy skupina kupní cenu neuvedla, ale Seznam Zprávy tehdy informovaly, že šlo o obchod za miliardy korun. V minulosti pak skupina usilovala i o získání českého státního výrobce výbušnin a střeliva Explosia.

CSG je přední evropská obranná průmyslová skupina, nejvyšší vedení sídlí v Praze. Výrobní závody má ve Spojených státech, v Británii, ve Španělsku, v Itálii, Německu, Česku, na Slovensku, v?Srbsku a Indii. Zaměstnává více než 14.000 lidí, loni vykázala tržby 6,7 miliardy eur (162 miliard Kč). S akciemi CSG se od ledna obchoduje na amsterodamské a pražské burze, přičemž od té doby ztratily přes polovinu hodnoty.

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