General Dynamics Electric Boat získala zakázky v hodnotě 76,6 miliardy USD na 14 ponorek v rámci dnešního oznámení amerického námořnictva. Z toho 29,5 miliardy USD připadá na pět ponorek Columbia a 42,1 miliardy USD na devět ponorek Virginia.
, /PRNewswire/ -- As part of today's $76.6 billion Navy contract announcement, General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced it has been awarded $29.5 billion for five additional Columbia-class submarines, $42.1 billion for nine additional Virginia-Class submarines, and additional support for shipyard infrastructure.
Information about these contract modifications is detailed in the U.S. Department of War contract awards, which can be found here and here.
General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy. "These important contract modifications provide Electric Boat and our suppliers with the demand certainty we need to continue investing in capacity and hiring the workforce necessary to ensure we deliver these important national security assets on schedule," said Mark Rayha, president of General Dynamics Electric Boat.
General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy. Headquartered in Groton, Connecticut, it employs more than 27,000 people. More information about General Dynamics Electric Boat is available at www.gdeb.com.
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.
Public Storage (PSA - Free Report) came out with quarterly funds from operations (FFO) of $4.17 per share, missing the Zacks Consensus Estimate of $4.25 per share. This compares to FFO of $4.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of -1.88%. A quarter ago, it was expected that this self-storage facility real estate investment trust would post FFO of $4.13 per share when it actually produced FFO of $4.22, delivering a surprise of +2.18%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Public Storage, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $1.23 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.59%. This compares to year-ago revenues of $1.2 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Public Storage shares have added about 27.4% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Public Storage?While Public Storage has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Public Storage was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $4.24 on $1.24 billion in revenues for the coming quarter and $16.94 on $4.93 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Cousins Properties (CUZ - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This real estate company is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +5.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cousins Properties' revenues are expected to be $263.55 million, up 10.9% from the year-ago quarter.
Ventas (VTR - Free Report) came out with quarterly funds from operations (FFO) of $0.97 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to FFO of $0.87 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +1.04%. A quarter ago, it was expected that this seniors housing real estate investment trust would post FFO of $0.91 per share when it actually produced FFO of $0.94, delivering a surprise of +3.3%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Ventas, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $1.73 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.72%. This compares to year-ago revenues of $1.42 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Ventas shares have added about 26.8% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Ventas?While Ventas has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ventas was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.98 on $1.69 billion in revenues for the coming quarter and $3.88 on $6.69 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, SBA Communications (SBAC - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.
This communications tower operator is expected to post quarterly earnings of $2.96 per share in its upcoming report, which represents a year-over-year change of -6.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
SBA Communications' revenues are expected to be $703.37 million, up 0.6% from the year-ago quarter.
Align Technology (ALGN - Free Report) came out with quarterly earnings of $2.64 per share, beating the Zacks Consensus Estimate of $2.56 per share. This compares to earnings of $2.49 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.13%. A quarter ago, it was expected that this maker of the Invisalign tooth-straightening system would post earnings of $2.26 per share when it actually produced earnings of $2.58, delivering a surprise of +14.16%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Align Technology, which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $1.06 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $1.01 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Align Technology shares have added about 12.5% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Align Technology?While Align Technology has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Align Technology was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.88 on $1.02 billion in revenues for the coming quarter and $11.36 on $4.19 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Dental Supplies is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
McKesson (MCK - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This prescription drug distributor is expected to post quarterly earnings of $9.59 per share in its upcoming report, which represents a year-over-year change of +16.1%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level.
McKesson's revenues are expected to be $104.39 billion, up 6.7% from the year-ago quarter.
Invitation Home (INVH - Free Report) came out with quarterly funds from operations (FFO) of $0.51 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to FFO of $0.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +4.08%. A quarter ago, it was expected that this real estate investment trust focused on single-family rentals would post FFO of $0.48 per share when it actually produced FFO of $0.48, delivering no surprise.
Over the last four quarters, the company has surpassed consensus FFO estimates just once.
Invitation Home, which belongs to the Zacks REIT and Equity Trust - Residential industry, posted revenues of $747.55 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.66%. This compares to year-ago revenues of $681.4 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Invitation Home shares have added about 8.1% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Invitation Home?While Invitation Home has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Invitation Home was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.48 on $720 million in revenues for the coming quarter and $1.95 on $2.85 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Residential is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Camden (CPT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This real estate investment trust is expected to post quarterly earnings of $1.67 per share in its upcoming report, which represents a year-over-year change of -1.8%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level.
Camden's revenues are expected to be $391.65 million, down 1.2% from the year-ago quarter.
Essex Property Trust (ESS - Free Report) came out with quarterly funds from operations (FFO) of $4.08 per share, beating the Zacks Consensus Estimate of $4.03 per share. This compares to FFO of $4.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +1.24%. A quarter ago, it was expected that this real estate investment trust would post FFO of $3.96 per share when it actually produced FFO of $4.06, delivering a surprise of +2.53%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Essex Property Trust, which belongs to the Zacks REIT and Equity Trust - Residential industry, posted revenues of $489.05 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $469.83 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Essex Property Trust shares have added about 12.6% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Essex Property Trust?While Essex Property Trust has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Essex Property Trust was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $3.99 on $492.46 million in revenues for the coming quarter and $16.11 on $1.95 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Residential is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, American Homes 4 Rent (AMH - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This real estate company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +2.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
American Homes 4 Rent's revenues are expected to be $466.13 million, up 1.9% from the year-ago quarter.
Camping World ve 2. čtvrtletí vykázal zisk na akcii 0,57 USD, nad odhadem 0,56 USD. Tržby ale klesly na 1,93 miliardy USD a za odhadem zaostaly o 3,72 %.
Camping World (CWH - Free Report) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.79%. A quarter ago, it was expected that this recreational vehicle retailer and services provider would post a loss of $0.23 per share when it actually produced a loss of $0.21, delivering a surprise of +8.7%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Camping World, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $1.93 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.72%. This compares to year-ago revenues of $1.98 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Camping World shares have lost about 35.5% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Camping World?While Camping World has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Camping World was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $1.86 billion in revenues for the coming quarter and $0.59 on $6.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Lear (LEA - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31.
This automotive seating and electrical distribution systems company is expected to post quarterly earnings of $3.89 per share in its upcoming report, which represents a year-over-year change of +12.1%. The consensus EPS estimate for the quarter has been revised 1.7% higher over the last 30 days to the current level.
Lear's revenues are expected to be $6.14 billion, up 1.8% from the year-ago quarter.
Carvana (CVNA - Free Report) reported $7.38 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 52.4%. EPS of $0.42 for the same period compares to $0.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.99 billion, representing a surprise of +5.55%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.42.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Carvana performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Per retail unit gross profit - Total: $7,014.00 compared to the $6,796.56 average estimate based on four analysts.Per retail unit gross profit - Retail vehicle: $3,547.00 compared to the $3,282.16 average estimate based on four analysts.Unit sales - Retail vehicle unit sales: 197,325 versus 198,190 estimated by four analysts on average.Per unit revenue - Wholesale vehicles: $10,633.00 versus $11,079.20 estimated by three analysts on average.Unit sales - Wholesale vehicle unit sales: 105,052 versus 97,755 estimated by three analysts on average.Per retail unit gross profit - Other: $2,666.00 versus $2,853.86 estimated by three analysts on average.Per unit revenue - Retail vehicles: $27,908.00 versus $25,395.83 estimated by three analysts on average.Per retail unit gross profit - Wholesale: $801.00 versus the two-analyst average estimate of $952.00.Sales and operating revenues- Retail vehicle sales, net: $5.51 billion versus the five-analyst average estimate of $4.97 billion. The reported number represents a year-over-year change of +61.7%.Sales and operating revenues- Other sales and revenues: $526 million versus $559.44 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +28% change.Sales and operating revenues- Wholesale sales and revenues: $1.34 billion versus $1.28 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change.Gross Profit- Retail vehicle: $700 million versus the three-analyst average estimate of $640.75 million.View all Key Company Metrics for Carvana here>>>
Shares of Carvana have returned +0.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Published in earnings earnings-estimates-revisions earnings-surprise
Robinhood Markets ve 2. čtvrtletí vykázala zisk 0,62 USD na akcii a tržby 1,31 miliardy USD, obojí nad odhady. Zisk na akcii byl meziročně vyšší než 0,42 USD.
Robinhood Markets, Inc. (HOOD - Free Report) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +40.91%. A quarter ago, it was expected that this company would post earnings of $0.4 per share when it actually produced earnings of $0.38, delivering a surprise of -5%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Robinhood Markets, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $1.31 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.49%. This compares to year-ago revenues of $989 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Robinhood Markets shares have lost about 18% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Robinhood Markets?While Robinhood Markets has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Robinhood Markets was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $1.3 billion in revenues for the coming quarter and $1.95 on $5.07 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, BGC Group (BGC - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This brokerage company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +9.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BGC Group's revenues are expected to be $814.9 million, up 3.9% from the year-ago quarter.
Cenovus Energy ve 2. čtvrtletí vykázala tržby 12,59 mld. USD, což bylo o 31,61 % nad odhadem a meziročně o 41,4 % více. EPS činil 1,11 USD, v souladu s očekáváním.
For the quarter ended June 2026, Cenovus Energy (CVE - Free Report) reported revenue of $12.59 billion, up 41.4% over the same period last year. EPS came in at $1.11, compared to $0.33 in the year-ago quarter.
The reported revenue represents a surprise of +31.61% over the Zacks Consensus Estimate of $9.57 billion. With the consensus EPS estimate being $1.11, the company has not delivered EPS surprise.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cenovus performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Upstream - Total Conventional Natural Gas Production: 809.8 millions of cubic feet compared to the 835.45 millions of cubic feet average estimate based on three analysts.Total Upstream Production: 970.4 millions of barrels of oil equivalent versus the three-analyst average estimate of 961.95 millions of barrels of oil equivalent.Upstream - Crude Oil and Natural Gas Liquids - Total Oil Sands Production - Christina Lake: 372.1 millions of barrels of oil compared to the 372.28 millions of barrels of oil average estimate based on two analysts.Upstream - Crude Oil and Natural Gas Liquids - Total Oil Sands Production - Sunrise: 65.7 millions of barrels of oil versus 64.18 millions of barrels of oil estimated by two analysts on average.Upstream - Crude Oil and Natural Gas Liquids - Total Oil Sands Production - Lloydminster Therma: 103.1 millions of barrels of oil versus the two-analyst average estimate of 100.68 millions of barrels of oil.Upstream - Crude Oil and Natural Gas Liquids - Total Oil Sands Production - Lloydminster Conventional Heavy Oil: 28.4 millions of barrels of oil versus 28.28 millions of barrels of oil estimated by two analysts on average.Upstream - Crude Oil and Natural Gas Liquids - Total Oil Sands Production: 783.8 millions of barrels of oil versus the two-analyst average estimate of 772.01 millions of barrels of oil.Upstream - Total Conventional Natural Gas Production - Oil Sands: 15.6 millions of cubic feet versus 14.4 millions of cubic feet estimated by two analysts on average.Downstream - Total Canadian Refining - Heavy Crude Oil Unit Throughput: 101.7 millions of barrels of oil compared to the 102.06 millions of barrels of oil average estimate based on two analysts.Downstream - Total U.S. Refining - Crude Oil Unit Throughput: 349.8 millions of barrels of oil compared to the 346.66 millions of barrels of oil average estimate based on two analysts.Downstream Crude Oil Throughput per day - Total Throughput: 451.50 KBbls compared to the 456.02 KBbls average estimate based on two analysts.Upstream(Oil Sands) -Production Volumes per day: 786.40 Kboe versus the two-analyst average estimate of 774.41 Kboe.View all Key Company Metrics for Cenovus here>>>
Shares of Cenovus have returned +11.5% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
OneMain Holdings, Inc. (OMF) Q2 2026 Earnings Call July 29, 2026 9:00 AM EDT
Company Participants
Peter Poillon - Head of Investor Relations
Douglas Shulman - Chairman, President & CEO
Jenny Osterhout - Executive VP & CFO
Conference Call Participants
Moshe Orenbuch - TD Cowen, Research Division
Terry Ma - Barclays Bank PLC, Research Division
Mark DeVries - Deutsche Bank AG, Research Division
Donald Fandetti - Wells Fargo Securities, LLC, Research Division
Arren Cyganovich - Truist Securities, Inc., Research Division
Mihir Bhatia - BofA Securities, Research Division
Richard Shane - JPMorgan Chase & Co, Research Division
David Scharf - Citizens JMP Securities, LLC, Research Division
Presentation
Operator
Good morning, everyone. Welcome to the OneMain Financial Second Quarter 2026 Earnings Conference Call and Webcast. Hosting the call today from OneMain is Peter Poillon, Head of Investor Relations. Today's call is being recorded. It is my pleasure to turn the floor over to Mr. Peter Poillon.
Peter Poillon
Head of Investor Relations
Thank you, operator. Good morning, everyone, and thank you for joining us. Let me begin by directing you to Page 2 of the second quarter 2026 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the Investor Relations section of the OneMain website.
Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future financial performance and business prospects, and these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release. We caution you not to place undue reliance on forward-looking statements.
If you may be listening to this via replay at some point after today, we remind you that the remarks made herein are
VICI Properties Inc. (VICI - Free Report) reported $1.06 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 5.7%. EPS of $0.62 for the same period compares to $0.82 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.04 billion, representing a surprise of +1.57%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.62.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how VICI Properties performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Other income: $18.92 million compared to the $18.97 million average estimate based on three analysts. The reported number represents a change of -3.2% year over year.Revenues- Golf revenues: $11.99 million versus $11.51 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.2% change.Net Earnings Per Share (Diluted): $0.48 versus $0.72 estimated by two analysts on average.View all Key Company Metrics for VICI Properties here>>>
Shares of VICI Properties have returned +2.1% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Generac Holdings oznámila konferenční hovor k výsledkům za 2. čtvrtletí 2026; v dostupném textu ale nezazněly žádné konkrétní finanční výsledky ani výhled.
Generac Holdings Inc. (GNRC) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT
Company Participants
Kris Rosemann - Director of Corporate Finance & Investor Relations
Aaron P. Jagdfeld - Chairman, President & CEO
York Ragen - Chief Financial Officer
Conference Call Participants
Michael Halloran - Robert W. Baird & Co. Incorporated, Research Division
George Gianarikas - Canaccord Genuity Corp., Research Division
David Tarantino - KeyBanc Capital Markets Inc., Research Division
Brian Drab - William Blair & Company L.L.C., Research Division
Jonathan Windham - UBS Investment Bank, Research Division
Tanner James - Jefferies LLC, Research Division
Praneeth Satish - Wells Fargo Securities, LLC, Research Division
Manish Somaiya - Cantor Fitzgerald & Co., Research Division
Keith Housum - Northcoast Research Partners, LLC
Vikram Bagri - Citigroup Inc., Research Division
Christine Cho - Barclays Bank PLC, Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Second Quarter 2026 Generac Holdings, Inc. Earnings Conference Call.
[Operator Instructions]
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kris Rosemann, Director of Corporate Finance and Investor Relations. Please go ahead.
Kris Rosemann
Director of Corporate Finance & Investor Relations
Good morning, and welcome to our second quarter 2026 earnings call. I'd like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer. We will begin our call today by commenting on forward-looking statements.
Certain statements made during this presentation as well as other information provided from time to time by Generac or its employees may contain certain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements.
Please see our earnings release or SEC filings for a list of words
Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure RaceCrane NYSE: CR reported record second-quarter results for 2026, citing core sales growth, margin expansion, rising backlog and stronger-than-expected contributions from its January acquisitions. The company raised its full-year adjusted earnings outlook to $6.85 to $7.05 per share, an increase of $0.20 at the midpoint.
President and CEO Alex Alcala said the quarter reflected “strong execution across the company and continued momentum across our portfolio.” Total sales increased 26% from a year earlier, including 5% core growth, while adjusted operating profit rose 37%, according to Executive Vice President and CFO Rich Maue.
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3 Unique AI Software Plays With Strong Analyst SupportTotal company adjusted operating margin expanded 180 basis points to a record 21.3%. Maue said the improvement reflected higher core sales, acquisitions, productivity initiatives and favorable pricing net of inflation. The company said its adjusted results excluded a benefit from IEEPA tariff recoveries during the quarter, which it characterized as one-time recoveries not expected to materially recur during the remainder of the year.
Aerospace segment posts double-digit core growth Crane’s Aerospace & Advanced Technologies segment generated $339 million in second-quarter sales, up 31% from the prior year. Core sales rose 13.3%, led by broad-based commercial aerospace and defense demand.
MarketBeat Week in Review – 07/06 - 07/10The segment’s backlog reached nearly $1.3 billion, rising 11% on a core basis from a year earlier and 7% sequentially. Including the Druck acquisition, backlog increased 20% year over year.
Alcala said Crane saw strength across commercial and military aerospace, including new program wins. During the quarter, the company was selected to supply components for GE’s RISE program and announced it would provide a brake control system for the Otto Aerospace Phantom 3500 business jet.
Crane also cited growing defense-related demand. Alcala said the company has about $35 million of current content across more than 10 missile programs, including systems related to THAAD, Patriot and Tomahawk. Customer requests for quotations and forecasts indicate demand that could expand fourfold or fivefold by the end of the decade, he said.
For the full year, Crane now expects Aerospace & Advanced Technologies core sales growth to finish slightly above its long-term range of 7% to 9%. Segment adjusted operating margin was 25.8%, compared with 26.6% a year earlier, as the acquired Druck business had a dilutive effect on margins. Maue said the segment would have been roughly 100 basis points more profitable in the quarter without the acquisition’s impact.
Process Flow backlog improves sequentially Process Flow Technologies recorded sales of $386 million, up 21% from the prior-year period. Core sales declined 1.4%, while the Panametrics, Reuter-Stokes and optek acquisitions added nearly 22 percentage points of growth. Foreign exchange added 0.8 percentage points.
Although core foreign-exchange-neutral backlog was down 2% from a year earlier, it increased 2% sequentially. Core orders were approximately flat year over year. The segment posted adjusted operating margin of 22.2%, up about 80 basis points from the prior-year quarter despite acquisition-related dilution.
Management said demand and orders strengthened during the quarter, supporting expectations for year-over-year core growth to turn positive in the second half. Alcala pointed to improving quote activity and signs of recovery in chemical production, particularly in the Americas, alongside continued demand in industrial power generation, water and wastewater, cryogenics and nuclear-related markets.
Crane secured cryogenic projects from SpaceX and Blue Origin during the quarter. The company also said it continues to support nuclear-facility restarts, including Constellation Energy’s Crane Clean Energy Center, while pursuing future opportunities in pressurized-water reactors and small modular reactors through Reuter-Stokes.
The company maintained its full-year Process Flow Technologies outlook for core growth ranging from flat to low single digits. Maue said both volume and price are expected to contribute to second-half growth, and management expects strong operating leverage as volumes improve.
Acquisitions outperform initial expectations Crane said the four businesses acquired in January—Panametrics, Druck, Reuter-Stokes and optek—are performing ahead of plan. Management said integrations are progressing faster than expected, synergies are arriving sooner and additional growth and margin opportunities have been identified.
As a result, Crane increased its expectation for the acquisitions’ full-year earnings contribution to about $0.20 per share, up from approximately $0.15 per share previously.
Maue said the company originally expected the acquired portfolio to grow 4% to 6% and improve margins by 200 basis points in 2026, later increasing the margin expectation to 300 basis points. He now expects growth to exceed the original range and margin improvement to reach roughly 350 basis points or more for the year.
Balance sheet supports M&A focus Crane repaid $100 million of debt during the quarter and another $90 million after quarter-end, reducing pro forma net leverage to about 1.2 times. The company said its target leverage range is 2 times to 3 times and that acquisitions remain its primary capital-allocation priority.
Alcala said Crane’s pipeline of potential deals has “never been stronger” across both Aerospace & Advanced Technologies and Process Flow Technologies, though he said there was nothing imminent to announce. The company is seeking highly engineered, mission-critical technologies that can strengthen its franchises, expand exposure to attractive markets and support long-term margin expansion.
For the second half, Crane expects third-quarter results to be similar to the second quarter, followed by a modestly lower fourth quarter due to normal seasonality. The company continues to forecast 2026 corporate expense of $80 million to $85 million, net non-operating expense of about $58 million and a tax rate of approximately 23%.
About Crane (NYSE:CR)Crane Co, headquartered in Stamford, Connecticut, is a diversified manufacturer of engineered industrial products serving customers around the world. The company operates through two primary segments: Aerospace & Electronics and Engineered Materials. Its Aerospace & Electronics division designs and produces valves, fittings, manifolds, and filtration systems for aircraft fuel, hydraulics, and environmental control systems. The Engineered Materials segment focuses on advanced polymers, heat exchangers, and specialized composite solutions for industries including chemical processing, semiconductor manufacturing, and power generation.
With roots dating back to its founding in 1855 in Chicago by R.T.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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National Capital Bancorp oznámila za 2. čtvrtletí čistý zisk 1,624 mil. USD, tedy 1,41 USD na akcii, a dividendu 0,26 USD na akcii. Firma zároveň očekává uzavření fúze s ODNB Financial ve 4. čtvrtletí 2026.
Earnings WASHINGTON, DC / ACCESS Newswire / July 29, 2026 / National Capital Bancorp, Inc. ( "NACB" or the "Company") (OTCID:NACB), the holding company for The National Capital Bank of Washington ("NCB" or the "Bank") reported net income of $1,624,000, or $1.41 per common share, for the three months ended June 30, 2026, compared to net income of $1,914,000, or $1.66 per common share, for the three months ended June 30, 2025. For the six months ended June 30, 2025, the Company reported net income of $2,677,000 or $2.32 per common share, compared to $3,587,000, or $3.12 per common share for the six months ended June 30, 2025. The decrease in earnings was primarily attributable to higher provision expense in the first quarter and merger related expenses.
Total assets were up year-over-year at $742,918,000 on June 30, 2026, compared to $702,597,000 on June 30, 2025. Total loans of $503,870,000 on June 30, 2026, decreased by $26.3 million during the quarter and have decreased by $5.9 million over the past twelve months. Loan balances in the quarter were impacted by the payoff of several construction loan projects, payoffs of several residential real estate loans, as well as lower utilization of commercial revolving credit lines. Total deposits of $655,952,000 on June 30, 2026, increased $5.3 million during the quarter but have increased $44.2 million over the past twelve months. The Company has been focused on balanced growth with increases in deposits providing funding for new loan opportunities. As a result, the Company continues to experience a relatively low reliance on wholesale funding sources and maintains strong levels of available secured borrowing capacity to meet the financing and cash flow needs of our client base as well as continuing to pursue desirable new relationship opportunities.
The Company's net interest margin of 3.62% during the second quarter of 2026 increased compared with 3.51% in the first quarter of 2026 and comparable to 3.68% in the second quarter of 2025. The increase quarter over quarter is attributable to a favorable shift in deposit mix.
Total shareholders' equity increased to $70,172,000 on June 30, 2026 from $63,281,000 a year ago due primarily to the retained earnings for the past twelve months. For the six months ended June 30, 2026, the return on average assets and return on average equity was 0.72% and 7.79%, respectively.
The Company's level of non-performing loans of 2.32% of total loans on June 30, 2026, compared to 2.55% on December 31, 2025, consists of five nonaccrual loans with two separate borrowers. Four of the loans are CRA-eligible multifamily loans, which participate in the DC Housing Voucher Program, while the fifth loan is a DC multifamily construction and development loan. All five loans have been individually evaluated for specific reserves using recent appraisals. The Company has recorded partial charge-offs on these loans of $3.6 million, including $2.2 million in the first quarter of 2026. The allowance for credit losses to total loans was 1.21% on June 30, 2026, compared with 1.22% on June 30, 2025, while the annualized net charge-off ratio was 0.90% for the first half of 2026. The Bank is continuing to work multiple paths to cost-effectively resolve these problem loans.
"We continue to work through resolutions for our non-performing assets while concurrently focusing on growing the Bank through strong, relationship based, loan opportunities funded by core deposits." said Jimmy Olevson, President and Chief Executive Officer of the Bank. "We are also excited to work towards closing the previously announced merger with ODNB Financial Corporation, with an expected closing date in the fourth quarter of this year."
The Company also announced today that its Board of Directors has declared a cash dividend of $0.26 per share for shareholders of record as of August 14, 2026. The dividend payout of $299,620.88on 1,152,388 shares is payable August 28, 2026.
On June 15, 2026, the Company and ODNB Financial Corporation ("ODNB"), the holding company of Old Dominion National Bank, jointly announced that they have entered into a definitive merger agreement pursuant to which NACB will merge into ODNB, with ODNB surviving as the bank holding company. The combined holding company, which will be renamed National Capital Bancorp, Inc., expects to list its common stock and trade under the ticker symbol "NACB". Old Dominion National Bank will merge with and into NCB, with NCB surviving as the wholly owned subsidiary bank.
The merger is expected to close in the fourth quarter of 2026, subject to satisfaction of customary closing conditions, including regulatory approvals and shareholder approvals from ODNB and NACB shareholders.
About National Capital Bancorp, Inc.
National Capital Bancorp, Inc. is the holding company for The National Capital Bank of Washington, which was founded in 1889 and is Washington's Oldest Bank. NCB is headquartered on Capitol Hill with offices in the Friendship Heights community in Northwest D.C., the Courthouse/Clarendon community in Arlington, Virginia and the Fox Hill senior living community of Bethesda, Maryland. NCB also operates residential mortgage and commercial lending offices and a wealth management services division. NCB product and service offerings include personal and business deposit accounts, robust online and mobile banking services and sophisticated treasury management solutions - all delivered with top-rated personal service. NCB is well positioned to serve all the banking needs of those in our communities. For more information about NCB, visit www.nationalcapitalbank.bank.
Forward-Looking Statements
This news release may contain certain forward-looking statements, such as statements of the Company's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified using words such as "expects," "subject," "will," "intends," "will be" or "would," These statements are subject to change based on various important factors (some of which are beyond the Company's control) and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis of factors only as of the date of which they are given). These factors include general economic conditions, trends in interest rates, the ability of the Company to effectively manage its growth and results of regulatory examinations, among other factors. In addition, with respect to the proposed merger with ODNB, the following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the business of NACB may not be successfully integrated into ODNB or the business of Old Dominion National Bank may not be successfully integrated into NCB, or such integration may take longer, be more difficult, time-consuming or costly to accomplish than expected; (2) the expected growth opportunities or cost savings from the proposed transaction may not be fully realized or may take longer to realize than expected; (3) deposit attrition, operating costs, customer losses and business disruption following the proposed transaction, including adverse effects on relationships with employees and customers, may be greater than expected; (4) the possibility that the proposed transaction does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); (5) the outcome of any legal proceedings that may be instituted in connection with the proposed transaction; (6) the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement; (7) reputational risk and potential adverse reactions of customers, employees or other business partners, including those resulting from the announcement or completion of the proposed transaction; (8) the diversion of management's attention and time from ongoing business operations and opportunities on merger-related matters; and (9) certain restrictions during the pendency of the proposed transaction that may impact NACB's ability to pursue certain business opportunities or strategic transactions. The foregoing list of important factors is not exclusive. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Glen Burnie Bancorp ve 2. čtvrtletí vykázala čistou ztrátu 272 tis. USD, zatímco úvěry vzrostly o 10,3 % na 267,6 mil. USD. Ztrátu prohloubily vyšší opravné položky a náklady na kompenzace.
GLEN BURNIE, Md., July 29, 2026 (GLOBE NEWSWIRE) -- Glen Burnie Bancorp ("Company") (OTCQX: GLBZ), the bank holding company for The Bank of Glen Burnie ("Bank"), today reported a net loss of $272 thousand, or $(0.09) per diluted common share, for the second quarter of 2026, compared to net income of $84 thousand, or $0.03 per diluted common share, for the first quarter of 2026, and a net loss of $212 thousand, or $(0.07) per diluted common share, for the second quarter of 2025.
For the six months ended June 30, 2026, the Company reported a net loss of $188 thousand, or $(0.06) per diluted common share, compared to a net loss of $59 thousand, or $(0.02) per diluted common share, for the six months ended June 30, 2025.
Pre-tax pre-provision income was $117 thousand for the second quarter of 2026, compared to $122 thousand for the first quarter of 2026 and a pre-tax pre-provision loss of $296 thousand for the second quarter of 2025. For the six months ended June 30, 2026, pre-tax pre-provision income was $239 thousand, an improvement of $1.0 million from a pre-tax pre-provision loss of $792 thousand for the first six months of 2025.
Second-quarter results reflected continued strong loan growth, stable underlying net interest margin performance and increased mortgage banking revenue. These positive developments were offset primarily by provision expense associated with loan growth, premium acceleration within the purchased automobile loan portfolio and increased compensation-related expenses, including investments in additional commercial lending personnel to support the Bank's Annapolis expansion.
"We continued to generate meaningful loan growth during the second quarter while maintaining stable asset quality and liquidity," said Mark C. Hanna, President and Chief Executive Officer. "Although reported earnings were affected by provision expense required to support that growth and by premium acceleration within our purchased automobile loan portfolio, yields across the remainder of the loan portfolio remained stable and core net interest margin improved modestly. We also made a significant investment in a Loan Production Office in the Annapolis market, adding two commercial lenders, and saw increased activity from VA Wholesale Mortgage. Our focus remains on converting recent balance-sheet growth into sustainable earnings while maintaining disciplined funding, expense and capital management."
Second Quarter 2026 Highlights
Continued strong loan growth. Total loans increased $25.1 million, or 10.3%, during the second quarter to $267.6 million at June 30, 2026, compared to $242.6 million at March 31, 2026. For the first six months of 2026, total loans increased $36.4 million, or 15.7%, from $231.2 million at December 31, 2025. Compared to June 30, 2025, total loans increased $54.3 million, or 25.4%. Loan growth during 2026 was primarily attributable to purchased consumer loans and commercial real estate loans for both owner-occupied and investment properties.
Stable underlying net interest margin. Net interest income was approximately $3.0 million for both the second and first quarters of 2026, compared to $2.7 million for the second quarter of 2025. Reported net interest margin was 3.11% for the second quarter of 2026, compared to 3.26% for the first quarter of 2026 and 3.05% for the second quarter of 2025. The first quarter included $167 thousand of loan interest income that did not recur in the second quarter, consisting of an $88 thousand positive adjustment related to a purchased loan pool and $79 thousand of interest collected on a previously nonaccrual loan that repaid in full. Excluding these items, core net interest margin increased modestly to 3.11% for the second quarter from approximately 3.08% for the first quarter.
Underlying loan yields remained stable outside the automobile portfolio. Core loan yield declined to 5.63% for the second quarter from 5.77% for the first quarter. The decline was concentrated in the automobile loan portfolio. Loans excluding automobile loans yielded 5.80% during the second quarter, compared to 5.79% during the first quarter. The reported yield on automobile loans declined to 4.89% from 5.69%, primarily reflecting increased loan prepayments and the resulting acceleration of unamortized purchase premiums. Despite the decline in reported loan yield, core loan interest income increased approximately $164 thousand linked quarter as higher average loan balances and the additional day in the second quarter more than offset the effect of lower reported yields.
Provision expense reflected loan growth rather than credit deterioration. The provision for credit losses increased to $569 thousand for the second quarter of 2026, compared to $86 thousand for the first quarter of 2026 and $79 thousand for the second quarter of 2025. The increase primarily reflected significant loan growth and changes in unfunded commitments. Asset quality remained stable. Nonperforming loans totaled approximately $669 thousand, or 0.25% of total loans, at June 30, 2026, compared to $662 thousand, or 0.27% of total loans, at March 31, 2026. The allowance for credit losses was $3.2 million, or 1.18% of total loans, at June 30, 2026 compared to $2.8 million, or 1.15% of total loans at March 31, 2026.
Mortgage banking activity increased. Mortgage commission income from VA Wholesale Mortgage increased to $353 thousand for the second quarter of 2026 from $197 thousand for the first quarter. The corresponding mortgage commission expense increased to $255 thousand from $145 thousand. Because a substantial portion of mortgage commission expense varies directly with mortgage production and commission revenue, the increase in commission expense should be considered together with the related increase in mortgage commission income. Mortgage commission income, net of directly related commission expense, increased to approximately $98 thousand for the second quarter from approximately $52 thousand for the first quarter.
Linked-quarter expense increase was concentrated in compensation and variable mortgage commissions, while the monthly expense trend improved during the quarter. Total noninterest expense increased $187 thousand to $3.4 million for the second quarter of 2026 from $3.3 million for the first quarter. The increase primarily reflected the addition of two commercial lenders to support the Bank’s Annapolis Loan Production Office, higher variable mortgage commissions associated with increased mortgage banking revenue, and the timing of payroll taxes and employee benefit expenses. Excluding compensation, benefits and mortgage commission expense, all other noninterest expenses declined approximately $104 thousand linked quarter. Monthly noninterest expense also declined as the quarter progressed, with June returning to approximately the preceding 12-month monthly average.
Deposit growth and funding flexibility. Retail deposits increased $4.8 million, or 1.4%, during the second quarter to $343.2 million at June 30, 2026. Total deposits were $357.0 million at June 30, 2026, compared to $357.5 million at March 31, 2026 and $332.4 million at December 31, 2025. Because loan growth exceeded retail deposit growth, wholesale funding increased to $28.2 million at June 30, 2026 from $19.1 million at March 31, 2026. Wholesale funding represented approximately 7.1% of total assets at June 30, 2026.
Sufficient liquidity. At June 30, 2026, the Bank maintained approximately $58.5 million of cash and unencumbered investment securities. The Bank also had access to approximately $83.4 million of available secured and unsecured borrowing capacity. Total on- and off-balance-sheet liquidity was approximately $141.9 million, or 35.9% of total assets.
Regulatory capital. The Bank’s regulatory capital ratios remained above regulatory minimums at June 30, 2026. The Bank’s Common Equity Tier 1 Capital and Tier 1 Risk-Based Capital Ratios were 11.95%, and its Total Risk-Based Capital Ratio was 13.10%. The Bank’s Tier 1 leverage ratio was 8.79% at June 30, 2026.
Operating Results
Net interest income modestly increased $13 thousand to $3.0 million for the second quarter of 2026 compared to the first quarter. Compared to the second quarter of 2025, net interest income increased $243 thousand, or 8.9%.
Total interest income increased $74 thousand compared to linked quarter and $462 thousand, or 11.9%, from the second quarter of 2025. Interest and fees on loans were unchanged linked quarter at $3.5 million despite a $14.8 million increase in average loan balances. The benefit of higher average loan balances and the additional day in the second quarter was offset by $167 thousand of loan-interest income recognized in the first quarter that did not recur in the second quarter, together with increased premium acceleration associated with prepayments in the purchased automobile loan portfolio.
Interest and dividends on securities increased $43 thousand linked quarter, while interest on deposits with banks and federal funds sold increased $33 thousand. These increases reflected the timing of income recognition on certain investment securities, Federal Reserve Bank balances and FHLB stock.
Total interest expense increased $61 thousand to $1.4 million for the second quarter from $1.3 million for the first quarter. The increase primarily reflected the additional day in the quarter and higher average certificate-of-deposit balances and rates. These factors were partially offset by a lower cost on money market accounts. The Company's overall cost of funds remained unchanged linked quarter at 1.52%.
Noninterest income increased $169 thousand to $584 thousand for the second quarter of 2026 from $415 thousand for the first quarter and increased $364 thousand from the second quarter of 2025. The linked-quarter increase was principally attributable to a $156 thousand increase in mortgage commission income from VA Wholesale Mortgage.
Noninterest expense increased $187 thousand to $3.4 million for the second quarter from $3.3 million for the first quarter. Compensation, employee benefits and mortgage commission expense increased $291 thousand, while all other noninterest expenses declined approximately $104 thousand. The compensation-related increase reflected the addition of two commercial lenders supporting the Annapolis LPO, variable mortgage commissions associated with higher mortgage revenue and the timing of payroll taxes and benefits.
The efficiency ratio was 96.7% for the second quarter of 2026, compared to 96.4% for the first quarter of 2026 and 110.0% for the second quarter of 2025. The net operating expense ratio improved to 3.00% from 3.12% linked quarter and 3.41% for the second quarter of 2025. While the year-over-year improvement is encouraging, both measures remain above management’s longer-term objectives and indicate that the Company has not yet achieved the operating leverage necessary to produce acceptable returns. Management remains focused on scalable operating solutions, disciplined expense management and generating sufficient revenue growth to spread the Company’s operating costs across a larger earning-asset base. Management will also continue to evaluate additional opportunities to improve efficiency without limiting the Bank’s ability to support customers, manage risk and execute its growth strategy.
Pre-tax pre-provision income was $117 thousand for the second quarter of 2026, compared to $122 thousand for the first quarter and a pre-tax pre-provision loss of $296 thousand for the second quarter of 2025. The essentially unchanged linked-quarter result reflected the offsetting effects of balance-sheet and revenue growth, lower reported automobile loan yields and compensation-related investments. Although pre-tax pre-provision performance has improved significantly from the prior year, management recognizes that additional revenue growth and operating leverage are needed to produce sustainable profitability and acceptable returns.
Balance Sheet and Funding
Total assets increased to $395.0 million at June 30, 2026 from $380.5 million at March 31, 2026 and $359.9 million at December 31, 2025. The linked-quarter increase was primarily attributable to loan growth, partially offset by lower cash and cash-equivalent balances.
Total loans increased to $267.6 million at June 30, 2026 from $242.6 million at March 31, 2026 and $231.2 million at December 31, 2025. Average loans increased 6.3% linked quarter to $250.9 million from $236.1 million. Period-end loans exceeded second-quarter average loans by approximately $16.7 million. To the extent these balances are maintained, the higher ending loan balance should provide a favorable starting point for third-quarter loan-interest income because the second quarter did not include a full quarter of income on loans originated or purchased throughout the period.
Retail deposits increased to $343.2 million from $338.4 million during the second quarter, while brokered deposits declined to $13.7 million from $19.1 million. Short-term borrowings totaled $14.5 million at June 30, 2026.Total deposits were $357.0 million at June 30, 2026, compared to $357.5 million at March 31, 2026 and $332.4 million at December 31, 2025.
Because loan growth exceeded retail deposit growth, total wholesale funding, consisting of brokered deposits and borrowings, increased to $28.2 million at June 30, 2026 from $19.1 million at March 31, 2026. Wholesale funding increased to 7.1% of total assets from 5.0% at March 31, 2026. The loan-to-deposit ratio increased to approximately 75.0% from 67.8% over the same period. Although the Company used additional wholesale funding and existing liquidity to support loan growth, management believes the Bank continues to maintain substantial liquidity and funding flexibility.
Asset Quality
Asset quality remained stable during the second quarter. Nonperforming loans totaled approximately $669 thousand, or 0.25% of total loans, at June 30, 2026, compared to $662 thousand, or 0.27% of total loans, at March 31, 2026.
Net charge-offs were $108 thousand during the second quarter of 2026, compared to $54 thousand during the first quarter and $45 thousand during the second quarter of 2025. For the six months ended June 30, 2026, net charge-offs were $162 thousand, compared to $49 thousand for the first six months of 2025. Annualized net charge-offs represented approximately 0.13% and 0.05% of average loans for the six months ended June 30, 2026 and 2025, respectively.
The allowance for credit losses increased to $3.2 million, or 1.18% of total loans, at June 30, 2026 from $2.8 million at March 31, 2026. Management believes the increase in the allowance and provision expense primarily reflected loan growth and changes in unfunded commitments, rather than deterioration in credit quality.
Capital Position
Stockholders' equity increased to $21.3 million at June 30, 2026 from $21.0 million at March 31, 2026 and $18.9 million at June 30, 2025. The linked-quarter increase primarily reflected an improvement in accumulated other comprehensive loss associated with the market value of available-for-sale securities, partially offset by the second-quarter net loss.
The Bank's regulatory capital ratios remained above regulatory minimum requirements at June 30, 2026. Continued balance-sheet growth, together with limited current earnings retention, has increased the importance of disciplined capital planning. Management continues to evaluate capital alternatives intended to support prudent growth, maintain appropriate capital cushions and improve long-term shareholder returns.
Results for the second quarter of 2026 reflected continued execution of the Company’s balance-sheet optimization and growth strategy. During the quarter, the Company generated strong loan growth, maintained stable asset quality and underlying net interest margin performance, increased mortgage banking revenue and continued investing in commercial relationship development. Management remains focused on converting this growth into sustainable earnings, improving operating leverage and maintaining appropriate liquidity and capital levels.
Glen Burnie Bancorp Information
Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is a locally owned community bank with six branch offices serving Anne Arundel County and a loan production office in Annapolis, Maryland. The Bank is engaged in the commercial and retail banking business including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships, non-profits and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. Additional information is available at www.thebankofglenburnie.com.
Forward-Looking Statements
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements are often identified by words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” “may,” “should,” or similar expressions.
These statements are not guarantees of future performance and involve known and unknown risks and uncertainties. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
GLEN BURNIE BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS - 5 QUARTERS (dollars in thousands, except shares outstanding) June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) ASSETS Cash and due from banks $1,639 $1,714 $1,777 $2,359 $1,677 Interest-bearing deposits in other financial institutions 3,566 13,340 3,728 9,868 10,991 Total Cash and Cash Equivalents 5,205 15,054 5,505 12,227 12,668 Investment securities available for sale, at fair value 102,090 103,040 103,469 104,141 104,566 Restricted equity securities, at cost 941 252 441 251 869 Loans 267,629 242,568 231,221 215,320 213,362 Less: Allowance for credit losses (3,164) (2,792) (2,716) (2,568) (2,587) Loans, net 264,465 239,776 228,505 212,752 210,775 Premises and equipment, net 2,258 2,315 2,393 2,463 2,575 Bank owned life insurance 9,099 9,055 9,012 8,966 8,921 Deferred tax assets, net 7,496 7,737 7,524 7,475 8,102 Accrued interest receivable 1,569 1,458 1,288 1,340 1,206 Accrued taxes receivable 199 19 - 310 271 Prepaid expenses 489 523 400 434 386 Goodwill 317 317 317 317 - Other assets 902 995 1,062 1,118 382 Total Assets $395,030 $380,541 $359,916 $351,794 $350,721 LIABILITIES Noninterest-bearing deposits $105,108 $109,596 $104,158 $107,368 $107,027 Interest-bearing deposits 251,855 247,938 228,224 221,701 210,289 Total Deposits 356,963 357,534 332,382 329,069 317,316 Short-term borrowings 14,500 - 4,000 - 13,000 Defined pension liability 340 340 342 341 340 Accrued expenses and other liabilities 1,902 1,716 1,767 1,655 1,132 Total Liabilities 373,705 359,590 338,491 331,065 331,788 STOCKHOLDERS' EQUITY Common stock, par value $1, authorized 15,000,000 shares 2,935 2,920 2,920 2,920 2,901 Shares issued and outstanding 2,934,863 2,919,695 2,919,695 2,919,695 2,900,681 Additional paid-in capital 11,174 11,119 11,119 11,119 11,037 Deferred Compensation, Restricted Stock (129) (72) (81) (84) - Retained earnings 22,658 22,930 22,852 22,948 22,823 Accumulated other comprehensive loss ("AOCL") (15,313) (15,946) (15,385) (16,174) (17,828) Total Stockholders' Equity 21,325 20,951 21,425 20,729 18,933 Total Liabilities and Stockholders' Equity $395,030 $380,541 $359,916 $351,794 $350,721 GLEN BURNIE BANCORP AND SUBSIDIARY FUNDING - 5 QUARTERS (dollars in thousands, except shares outstanding) June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Noninterest-Bearing Deposits $105,108 $109,596 $104,158 $107,368 $107,027 Interest-Bearing Deposits: Interest-bearing checking 23,581 22,828 22,835 29,199 23,196 Money Market 119,231 111,004 103,382 98,581 93,685 ICS Reciprocal Deposits 1,941 2,173 2,154 - - Savings 60,598 62,862 62,145 67,826 68,043 Time Deposits 32,783 29,951 27,476 26,095 25,365 Total Retail Deposits (A) 343,242 338,414 322,150 329,069 317,316 Brokered Deposits: ICS One-Way Deposits 3,484 7,480 - - - DTC Brokered Deposits 10,237 11,640 10,232 - - Total Brokered Deposits (B) 13,721 19,120 10,232 - - Borrowings (C) 14,500 - 4,000 - 13,000 Total Funding $371,463 $357,534 $336,382 $329,069 $330,316 Total Wholesale Funding ("WF") - (B) + (C)$28,221 $19,120 $14,232 $- $13,000 As a percentage of Assets 7.1% 5.0% 4.0% 0.0% 3.7% As a percentage of Funding 7.6% 5.3% 4.2% 0.0% 3.9% Noninterest-Bearing Deposits $105,108 $109,596 $104,158 $107,368 $107,027 As a percentage of Assets 26.6% 28.8% 28.9% 30.5% 30.5% As a percentage of Funding 28.3% 30.7% 31.0% 32.6% 32.4% GLEN BURNIE BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF (LOSS) INCOME - 5 QUARTERS (dollars in thousands, except per share amounts) (unaudited) Three Months Ended June 30, March 31, December 31,September 30,June 30, 2026 2026 2025 2025 2025 Interest income Interest and fees on loans $3,525 $3,527 $3,181 $3,126 $2,909 Interest and dividends on securities 729 686 702 719 732 Interest on deposits with banks and federal funds sold 85 52 82 92 236 Total Interest Income 4,339 4,265 3,965 3,937 3,877 Interest expense Interest on deposits 1,347 1,286 1,132 1,044 942 Interest on short-term borrowings 13 13 25 62 199 Total Interest Expense 1,360 1,299 1,157 1,106 1,141 Net Interest Income 2,979 2,966 2,808 2,831 2,736 Provision (release) of credit loss allowance 569 86 216 44 79 Net interest income after credit loss (release) provision 2,410 2,880 2,592 2,787 2,657 Noninterest income Service charges on deposit accounts 39 35 41 37 34 Mortgage commission income 353 197 372 191 - Other fees and commissions 148 140 208 297 142 Income on life insurance 44 43 45 45 44 Total Noninterest Income 584 415 666 570 220 Noninterest expenses Salary and employee benefits 1,876 1,695 1,463 1,865 2,026 Mortgage commission expense 255 145 385 - - Occupancy and equipment expenses 256 271 275 248 256 Legal, accounting and other professional fees 342 352 526 478 278 Data processing and item processing services 172 289 283 219 224 FDIC insurance costs 65 59 46 46 44 Advertising and marketing related expenses 50 35 50 45 30 Loan collection costs 15 - (12) 19 7 Telephone costs 5 27 37 20 25 Other expenses 410 386 411 330 362 Total Noninterest Expenses 3,446 3,259 3,464 3,270 3,252 Income (loss) before income taxes (452) 36 (206) 87 (375)Income tax benefit (180) (48) (111) (38) (163) Net income (loss) $(272) $84 $(95) $125 $(212) Pre-tax pre-provsion ("PTPP") income (loss) $117 $122 $10 $131 $(296) Earnings (loss) per common share(1) $(0.09) $0.03 $(0.03) $0.04 $(0.07) (1)Basic and diluted earnings per share are the same as the Company has no dilutive shares. GLEN BURNIE BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF (LOSS) INCOME (dollars in thousands, except per share amounts) Six Months Ended June 30, June 30, 2026 2025 (unaudited) (unaudited) Interest income Interest and fees on loans $7,052 $5,618 Interest and dividends on securities 1,415 1,477 Interest on deposits with banks and federal funds sold 137 411 Total Interest Income 8,604 7,506 Interest expense Interest on deposits 2,633 1,783 Interest on short-term borrowings 26 424 Total Interest Expense 2,659 2,207 Net Interest Income 5,945 5,299 Provision (release) of credit loss allowance 655 (541) Net interest income after credit loss (release) provision 5,290 5,840 Noninterest income Service charges on deposit accounts 74 65 Mortgage commission income 550 - Other fees and commissions 288 273 Income on life insurance 87 87 Total Noninterest Income 999 425 Noninterest expenses Salary and employee benefits 3,571 3,853 Mortgage commission expense 400 - Occupancy and equipment expenses 527 565 Legal, accounting and other professional fees 694 662 Data processing and item processing services 461 480 FDIC insurance costs 124 85 Advertising and marketing related expenses 85 66 Loan collection costs 15 52 Telephone costs 32 63 Other expenses 796 690 Total Noninterest Expenses 6,705 6,516 Income (loss) before income taxes (416) (251) Income tax benefit (228) (192) Net income (loss) $(188) $(59) PTPP income (loss) $239 $(792) Earnings (loss) per common share(1) $(0.06) $(0.02) (1)Basic and diluted earnings per share are the same as the Company has no dilutive shares. GLEN BURNIE BANCORP AND SUBSIDIARY SELECTED FINANCIAL DATA - 5 QUARTERS AND YEAR TO DATE (dollars in thousands, except per share amounts) At And For The Three Months Ended At And For The Six Months Ended June 30, March 31, December 31,September 30,June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Selected Balance Sheet Data Assets $395,030 $380,541 $359,916 $351,794 $350,721 $395,030 $350,721 Investment securities 102,090 103,040 103,469 104,141 104,566 102,090 104,566 Gross loans 267,629 242,568 231,221 215,320 213,362 267,629 213,362 Goodwill 317 317 317 317 - 317 - Noninterest-bearing deposits 105,108 109,596 104,158 107,368 107,027 105,108 107,027 Interest-bearing deposits 238,134 228,818 217,992 221,701 210,289 238,134 210,289 Retail Deposits 343,242 338,414 322,150 329,069 317,316 343,242 317,316 Wholesale Funding - Advances + Brokered Deposits 28,221 19,120 14,232 - 13,000 28,221 13,000 AOCL (15,313) (15,946) (15,385) (16,174) (17,828) (15,313) (17,828)Stockholders' equity 21,325 20,951 21,425 20,729 18,933 21,325 18,933 Summary Income Statement Interest income 4,339 4,265 3,965 3,937 3,877 8,604 7,506 Interest expense 1,360 1,299 1,157 1,106 1,141 2,659 2,207 Net Interest Income 2,979 2,966 2,808 2,831 2,736 5,945 5,299 Provision (release) of credit loss allowance 569 86 216 44 79 655 (541)Noninterest income 584 415 666 570 220 999 425 Salary and employee benefits 2,131 1,840 1,848 1,865 2,026 3,971 3,853 Operating Expenses 1,315 1,419 1,616 1,405 1,226 2,734 2,663 Noninterest expenses 3,446 3,259 3,464 3,270 3,252 6,705 6,516 Income (loss) before income taxes (452) 36 (206) 87 (375) (416) (251)Income tax benefit (180) (48) (111) (38) (163) (228) (192)Net income (loss) $(272) $84 $(95) $125 $(212) $(188) $(59) PTPP income (loss) $117 $122 $10 $131 $(296) $239 $(792) Earnings (loss) per common share(1) $(0.09) $0.03 $(0.03) $0.04 $(0.07) $(0.06) $(0.02)Weighted average shares outstanding 2,934,696 2,919,695 2,919,695 2,919,695 2,900,681 2,927,237 2,891,585 Average Balances Assets $383,126 $369,976 $354,743 $353,651 $356,587 $376,551 $354,948 Int-bearing deposits and investments (amortized cost) 132,530 133,039 134,544 138,627 150,335 132,785 150,330 Loans 250,921 236,106 220,069 216,263 208,951 243,514 207,411 Non-interest-bearing deposits 107,102 106,088 107,961 109,609 105,395 106,595 104,318 Interest-bearing retail deposits 232,005 220,331 220,748 217,297 212,252 227,018 210,520 Wholesale Funding - Advances + Brokered Deposits 20,969 19,406 2,441 5,286 17,824 19,337 19,020 Stockholders' equity 21,150 21,672 20,913 19,407 18,981 21,477 18,770 GLEN BURNIE BANCORP AND SUBSIDIARY SELECTED FINANCIAL DATA - 5 QUARTERS AND YEAR TO DATE (dollars in thousands, except per share amounts) At And For The Three Months Ended At And For The Six Months Ended June 30, March 31, December 31,September 30,June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Capital and Capital Ratios (Bank)(2) Common Equity Tier 1 Capital Ratio 11.95% 13.16% 13.80% 14.82% 14.91% 11.95% 14.91%Tier 1 Risk-based Capital Ratio 11.95% 13.16% 13.80% 14.82% 14.91% 11.95% 14.91%Tier 1 Leverage Ratio 8.79% 9.18% 9.49% 9.67% 9.59% 8.79% 9.59%Total Risk-Based Capital Ratio 13.10% 14.25% 14.94% 15.96% 16.06% 13.10% 16.06%Common Equity Tier 1 Capital $35,447 $35,673 $35,555 $36,204 $36,449 $35,447 $36,449 Tier 1 Regulatory Capital $35,447 $35,673 $35,555 $36,204 $36,449 $35,447 $36,449 Total Regulatory Capital $38,866 $38,631 $38,482 $38,987 $39,281 $38,866 $39,281 Capital Ratios (Company) Common Equity Ratio 5.40% 5.51% 5.95% 5.89% 5.40% 5.40% 5.40%Tangible Capital Ratio(3) 5.32% 5.43% 5.87% 5.81% 5.40% 5.32% 5.40% Performance Ratios Return on average assets ("ROAA") -0.28% 0.09% -0.11% 0.14% -0.24% -0.10% -0.03%PTPP ROAA 0.12% 0.13% 0.01% 0.15% -0.33% 0.13% -0.45%Efficiency ratio(4) 96.72% 96.39% 99.71% 96.15% 110.01% 96.56% 113.84%Net operating expense ratio(5) 3.00% 3.12% 3.13% 3.03% 3.41% 3.06% 3.44% Int-bearing deposit and investment Yields 2.46% 2.25% 2.31% 2.32% 2.58% 2.36% 2.53%Loan yields 5.63% 6.06% 5.73% 5.73% 5.58% 5.84% 5.46%Core loan yields 5.63% 5.77% 5.73% 5.73% 5.58% 5.70% 5.46%Yield on earning assets 4.54% 4.69% 4.44% 4.40% 4.33% 4.61% 4.23%Cost of funds 1.52% 1.52% 1.39% 1.32% 1.36% 1.52% 1.33%Cost of interest-bearing liabilities 2.16% 2.20% 2.06% 1.97% 1.99% 2.18% 1.94%Net interest margin 3.11% 3.26% 3.14% 3.16% 3.05% 3.19% 2.99%Core Net Interest Margin 3.11% 3.08% 3.14% 3.16% 3.05% 3.10% 2.99% Dividends Paid $- $- $- $- $- $- $- Cash dividends declared per share $- $- $- $- $- $- $- Tangible book value per share(3) $7.16 $7.07 $7.23 $6.99 $6.53 $7.16 $6.53 Book value per share $7.27 $7.18 $7.34 $7.10 $6.53 $7.27 $6.53 Shares issued and outstanding 2,934,863 2,919,695 2,919,695 2,919,695 2,900,681 2,934,863 2,900,681 GLEN BURNIE BANCORP AND SUBSIDIARY SELECTED FINANCIAL DATA - 5 QUARTERS AND YEAR TO DATE (dollars in thousands, except per share amounts) At And For The Three Months Ended At And For The Six Months Ended June 30, March 31, December 31,September 30,June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Asset Quality and Liquidity Allowance for credit losses ("ACL") $3,164 $2,792 $2,716 $2,568 $2,587 $3,164 $2,587 Nonaccrual loans $669 $662 $1,256 $1,201 $1,066 $669 $1,066 90+past due and accruing - - - - - - - Restructured loans(6) - - - - - - - Nonperforming loans ("NPLs") 669 662 1,256 1,201 1,066 669 1,066 Other Real Estate Owned - - - - - - - Nonperforming assets ("NPAs") $669 $662 $1,256 $1,201 $1,066 $669 $1,066 ACL to gross loans 1.18% 1.15% 1.17% 1.19% 1.21% 1.18% 1.21%NPLs to gross loans 0.25% 0.27% 0.54% 0.56% 0.50% 0.25% 0.50%ACL to nonperforming loans 472.9% 421.8% 216.2% 213.8% 242.7% 472.9% 242.7%Net charge-offs (recoveries) $108 $54 $71 $94 $45 $162 $49 Net charge-offs (recoveries) to avg. loans 0.17% 0.09% 0.13% 0.17% 0.09% 0.13% 0.05%NPAs to Assets 0.17% 0.17% 0.35% 0.34% 0.30% 0.17% 0.30%Loans to Retail Deposits 78.0% 71.7% 71.8% 65.4% 67.2% 78.0% 67.2%Loans to Funding 72.0% 67.8% 68.7% 65.4% 64.6% 72.0% 64.6% (1)Basic and diluted earnings per share are the same as the Company has no dilutive shares.(2)The Company and Bank are subject to regulatory capital requirements administered by federal banking agencies. Management has determined that the Company’s risk-based capital ratios are not materially different than the Bank’s and the Company's regulatory ratios are not reflected in the table.(3)Tangible book value and tangible capital ratios exclude goodwill of $317 thousand(4)The efficiency ratio is defined as noninterest expense divided by the sum of net interest income and noninterest income.(5)The net operating expense ratio is defined as noninterest expense less noninterest income divided by average assets.(6)These are restructured loans to borrowers with financial difficulty that are not included in nonaccrual status.
, /PRNewswire/ -- The board of directors of Marathon Petroleum Corp. (NYSE: MPC) has declared a dividend of $1.00 per share on common stock. The dividend is payable Sept. 10, 2026, to shareholders of record as of the close of business Aug. 19, 2026.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream and midstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.
Vistra schválila čtvrtletní dividendu 0,23 USD na akcii kmenových akcií, celkem zhruba 75 milionů USD. Také vyhlásila pololetní dividendu 40,00 USD na preferenční akcii 8,0% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock.
, /PRNewswire/ -- Vistra (NYSE: VST) announced today that its board of directors has declared a quarterly dividend of $0.23 per share of Vistra's common stock, reflecting an estimated aggregate payment of approximately $75 million this quarter. The common dividend is payable on Sept. 30, 2026, to common stockholders of record as of Sept. 21, 2026. The ex-dividend date for the common dividend will be Sept. 21, 2026.
The board of directors also declared a semi-annual dividend on the company's 8.0% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock. The Series A dividend is $40.00 per preferred share, or $80.00 per share of Series A preferred stock on an annualized basis. The Series A dividend is payable on Oct. 15, 2026, to Series A preferred stockholders of record as of Oct. 1, 2026.
About Vistra
Vistra (NYSE: VST) is a leading Fortune 500 integrated retail electricity and power generation company based in Irving, Texas, that provides essential resources to customers, businesses, and communities from California to Maine. Vistra is a leader in transforming the energy landscape, with an unyielding focus on reliability, affordability, and sustainability. The company safely operates a reliable, efficient power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities while taking an innovative, customer-centric approach to its retail business. Learn more at vistracorp.com.
Mirion Technologies, Inc. (MIR) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT
Company Participants
Eric Linn - Vice President of Investor Relations
Thomas Logan - Founder, Medical Group President, CEO & Chairman
Brian Schopfer - CFO & Medical Group President
Conference Call Participants
James West - Melius Research LLC
Joseph Ritchie - Goldman Sachs Group, Inc., Research Division
Quinn Fredrickson - Robert W. Baird & Co. Incorporated, Research Division
Andrew Kaplowitz - Citigroup Inc., Research Division
Christopher Moore - CJS Securities, Inc.
Jeffrey Grampp - Northland Capital Markets, Research Division
Tomohiko Sano - JPMorgan Chase & Co, Research Division
Presentation
Operator
Greetings. Welcome to the Mirion Technologies Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.
I will now turn the conference over to Eric Linn, Treasurer and Head of Investor Relations. Thank you. Eric, you may begin.
Eric Linn
Vice President of Investor Relations
Thank you, Liz, and good morning, everyone. Welcome to Mirion's Second Quarter 2026 Earnings Conference Call. Joining me this morning are Mirion's Founder, Chairman and CEO, Tom Logan; and Mirion's CFO and Medical Group President, Brian Schopfer.
Before we begin today's prepared remarks, allow me to remind you that comments made during this call will include forward-looking statements, and actual results may differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are discussed in our annual reports on Form 10-K, quarterly reports on Form 10-Q and in Mirion's other SEC filings under the caption Risk Factors. Quarterly references within today's discussion are related to the second quarter ended June 30, 2026, unless otherwise noted.
The comments made during this call will also include certain financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliation of those non-GAAP financial measures to the
Patterson-UTI Energy ve 2. čtvrtletí zvýšila tržby na 1,2 miliardy USD, ale vykázala čistou ztrátu 19,6 milionu USD. Firma zároveň čeká další růst vrtací a dokončovací aktivity ve 3. čtvrtletí.
Earnings HOUSTON, TX / ACCESS Newswire / July 29, 2026 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported financial results for the quarter ended June 30, 2026.
Second Quarter 2026 Financial Results and Other Key Items
Second Quarter 2026 Total Revenue of $1.2 billion, a 10% sequential increase
Second Quarter 2026 Net Loss Attributable to Common Stockholders of $20 million
Adjusted Net Income(1) Attributable to Common Stockholders of $1 million; excludes a $21 million non-cash charge associated with the exit of our Contract Drilling operations in Colombia and a $5 million non-cash write down of other noncontrolling investments
Second Quarter 2026 Adjusted EBITDA(2) of $232 million
Expecting further growth in Drilling and Completion activity and pricing in the third quarter
Declared a quarterly dividend of $0.10 per share, payable on September 15, 2026 to holders of record as of September 1, 2026
Management Commentary
"We delivered a strong quarter, with a positive inflection in activity and momentum building across each of our businesses as we moved through the second quarter and into the third," said Andy Hendricks, Chief Executive Officer. "Our team executed very well, customer activity is growing, and the U.S. onshore market is responding to a more constructive commodity price environment. These results reflect the strategic investments we have made to position Patterson-UTI as a premier oilfield services company across each of our core businesses. Importantly, this second quarter performance was achieved without the benefit of the additional growth capital investments announced during the quarter. We expect those investments to support continued growth into 2027 and beyond, while further strengthening our technology leadership."
"Commodity volatility has continued into the third quarter amid ongoing geopolitical uncertainty, but the broader market backdrop has become increasingly constructive," continued Mr. Hendricks. "Higher commodity prices contributed to increased U.S. onshore drilling activity during the second quarter, and that momentum has carried into the third. As the quarter progresses, we expect both drilling and completion activity to continue building. In Drilling Services, we have already signed contracts for additional rigs and are advancing the reactivation and upgrade work needed to activate those rigs. In Completion Services, our fleet was effectively sold out prior to industry activity increasing, and customer discussions around price increases remain very constructive, along with growing interest in our new Emerald natural gas direct drive technology and the added value of our integrated completion services. Taken together, these trends reinforce our confidence in the trajectory of our businesses and our ability to deliver additional returns for investors."
"Activity is ramping faster than we initially expected, and we are moving decisively to capture opportunities that should create meaningful long-term value for Patterson-UTI," said Andy Smith, Chief Financial Officer. "Seasonally, working capital in the first half is typically a use of cash for the company, and the stronger pace of activity required a larger working capital investment in the first half of the year as we supported higher customer demand. Working capital typically reverses somewhat in the second half. Importantly, even as we fund working capital and capital investments that strengthen earnings power over time, we still expect full-year 2026 free cash flow to more than cover our 2026 dividend payments, and we expect free cash flow to improve in 2027."
Drilling Services
Second quarter Drilling Services revenue was $374 million, and adjusted gross profit(3) was $114 million. During the quarter, we made the decision to exit our Contract Drilling operations in Colombia, where we operated less than one rig on average during the period. In connection with this decision, our Direct Operating Costs include a non-cash charge of approximately $20 million, primarily related to the write-down of inventory that supported older rig technology in Colombia and the write-down of other assets in the country. Excluding these items, Drilling Services adjusted gross profit would have been $134 million.
U.S. Contract Drilling operating days totaled 8,361 during the second quarter, with an average of 92 rigs operating during the period. Activity strengthened as the quarter progressed, and we exited the quarter with 96 rigs operating. Higher demand, together with growing customer interest in structural rig upgrades, supported approximately 10-15% pricing increases on recently awarded term contracts compared to levels at the start of the year. Directional Drilling also delivered a strong quarter, driven in part by continued growth in our downhole motor rental business.
Completion Services
Second quarter Completion Services revenue totaled $754 million, with adjusted gross profit of $123 million.
Completion Services delivered stronger second quarter results, driven by high pressure pumping utilization, improved pricing, and continued growth in our integrated service offering. Industry capacity remained tight throughout the quarter, and the recent increase in rig count has not yet fully flowed through to completion demand, which typically follows drilling activity with a three- to six-month lag. Against this strengthening backdrop, revenue per pump hour increased by a mid-single digit percentage sequentially, on average, supported by improved core pressure pumping pricing and a higher contribution from integrated completion services. Adjusted gross profit increased across all service lines, with the strongest percentage increase coming from our Power Solutions natural gas fueling business.
Drilling Products
Second quarter Drilling Products revenue totaled $91 million, with adjusted gross profit of $37 million.
Drilling Products delivered its strongest quarterly revenue since Patterson-UTI completed the Ulterra acquisition in 2023, overcoming challenges in the Middle East, our largest international market, and the seasonal spring breakup in Canada. International revenue reached a company record, while U.S. revenue per industry rig approached record levels, reflecting strong execution across multiple points in the rig-count cycle.
Other
Second quarter Other revenue totaled $9 million, with adjusted gross profit of $7 million.
Outlook
In Drilling Services, we expect our average U.S. rig count to be approximately 100 in the third quarter, and we expect to exit the quarter higher than the quarterly average. Results should also benefit from a full quarter of the higher pricing achieved during the second quarter as well as additional pricing improvements in the third quarter. Overall, we expect Drilling Services adjusted gross profit to be approximately $145 million in the third quarter.
In Completion Services, we expect third quarter adjusted gross profit to be approximately $140 million, supported by near-full utilization across our active frac equipment and additional pricing improvement compared to the second quarter. While we increased our capital expenditure budget during the second quarter, our strategy remains focused on high-return, 100% natural gas, Emerald investments and disciplined fleet management. We will continue decommissioning diesel assets over time, and we do not expect active horsepower to increase during the second half of 2026.
In Drilling Products, we expect third quarter adjusted gross profit to be approximately $40 million, driven by higher drilling activity in the United States, and the seasonal recovery from spring breakup in Canada.
We expect Other adjusted gross profit in the third quarter to be approximately $5 million.
For the third quarter, we expect general and administrative expense to be approximately $70 million and depreciation, depletion, amortization, and impairment expense to be approximately $225 million.
Consistent with our update during the second quarter, total capital expenditures, net of asset sales, are still expected to be approximately $600 million in 2026.
Except for cash dividends per common share, all references to "per share" in this press release are diluted earnings per common share as defined within Accounting Standards Codification Topic 260.
Second Quarter Earnings Conference Call
The Company's quarterly conference call to discuss the operating results for the quarter ended June 30, 2026, is scheduled for July 30, 2026, at 9:00 a.m. Central Time. The dial-in information for participants is (833) 461-5787 (Domestic) and (585) 542-9983 (International). The Meeting ID for both numbers is 227633549. The call is also being webcast and can be accessed through the Investor Relations section of the Company's website at investor.patenergy.com. A webcast replay of the conference call will be on the Company's website for one year.
About Patterson-UTI
Patterson-UTI is a leading provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services in the United States, and specialized bit solutions in the United States, Middle East and many other regions around the world. For more information, visit www.patenergy.com.
This press release contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Patterson-UTI's current beliefs, expectations or intentions regarding future events. Words such as "anticipate," "believe," "budgeted," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "predict," "project," "pursue," "see," "should," "strategy," "target," or "will," and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including, without limitation, statements regarding Patterson-UTI's future expectations, beliefs, plans, strategy, objectives, financial conditions, operations outlook, assumptions or future events or performance, activity levels, active rig count projections, contract terms, capex spending and budgets, future cash flow, future use of generated cash flow, customer demand, future commodity prices, outlook for international and domestic markets, and timing and amount of dividends, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond Patterson-UTI's control, which could cause actual results to differ materially from the results expressed or implied by the statements. For information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and other disclosures in Patterson-UTI's SEC filings, including but not limited to its Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q.
Additional information concerning risks and uncertainties associated with Patterson-UTI's business is contained from time to time in Patterson-UTI's SEC filings. Patterson-UTI's filings may be obtained by contacting Patterson-UTI or the SEC or through Patterson-UTI's website at http://www.patenergy.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. Patterson-UTI undertakes no obligation to publicly update or revise any forward-looking statement.
Non-GAAP Financial Measures
(1) Adjusted net income (loss) is considered a Non-GAAP Financial Measure. See non-GAAP Financial Measures below for a reconciliation of GAAP Net income (loss) to Adjusted net income (loss).
(2) Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is not defined by GAAP. See Non-GAAP Financial Measures below for a reconciliation of net income to Adjusted EBITDA.
(3) Adjusted gross profit is considered a non-GAAP financial measure. See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
June 30,
2026
December 31,
2025
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
$
203,169
$
420,642
Accounts receivable, net
919,665
723,277
Inventory
140,750
160,280
Other current assets
108,603
113,892
Total current assets
1,372,187
1,418,091
Property and equipment, net
2,598,413
2,711,037
Goodwill
487,388
487,388
Intangible assets, net
755,241
814,810
Other assets
159,445
139,140
Total assets
$
5,372,674
$
5,570,466
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
513,173
$
470,782
Accrued liabilities
248,334
366,488
Other current liabilities
22,639
26,372
Total current liabilities
784,146
863,642
Long-term debt, net
1,234,173
1,221,038
Deferred tax liabilities, net
203,228
215,818
Other liabilities
44,596
45,253
Total liabilities
2,266,143
2,345,751
Stockholders' equity:
Stockholders' equity attributable to controlling interests
3,099,876
3,218,538
Noncontrolling interest
6,655
6,177
Total equity
3,106,531
3,224,715
Total liabilities and stockholders' equity
$
5,372,674
$
5,570,466
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
REVENUES
$
1,227,967
$
1,117,331
$
1,219,320
$
2,345,298
$
2,499,857
COSTS AND EXPENSES:
Direct operating costs
947,329
849,155
929,363
1,796,484
1,890,777
Depreciation, depletion, amortization and impairment
217,781
218,394
261,858
436,175
493,724
General and administrative
67,505
68,763
64,108
136,268
131,038
Other operating expense (income), net
2,314
(4,664
)
(6,523
)
(2,350
)
(3,141
)
Total operating costs and expenses
1,234,929
1,131,648
1,248,806
2,366,577
2,512,398
OPERATING INCOME (LOSS)
(6,962
)
(14,317
)
(29,486
)
(21,279
)
(12,541
)
OTHER INCOME (EXPENSE):
Interest income
2,902
2,765
1,272
5,667
2,736
Interest expense, net of amount capitalized
(20,398
)
(17,485
)
(17,645
)
(37,883
)
(35,342
)
Other income (expense)
(3,464
)
965
(1,644
)
(2,499
)
324
Total other income (expense)
(20,960
)
(13,755
)
(18,017
)
(34,715
)
(32,282
)
INCOME (LOSS) BEFORE INCOME TAXES
(27,922
)
(28,072
)
(47,503
)
(55,994
)
(44,823
)
INCOME TAX EXPENSE (BENEFIT)
(8,647
)
(3,596
)
1,194
(12,243
)
2,584
NET INCOME (LOSS)
(19,275
)
(24,476
)
(48,697
)
(43,751
)
(47,407
)
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST
327
151
447
478
732
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
(19,602
)
$
(24,627
)
$
(49,144
)
$
(44,229
)
$
(48,139
)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS PER COMMON SHARE:
Basic
$
(0.05
)
$
(0.06
)
$
(0.13
)
$
(0.12
)
$
(0.12
)
Diluted
$
(0.05
)
$
(0.06
)
$
(0.13
)
$
(0.12
)
$
(0.12
)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic
380,192
379,587
385,365
379,891
385,940
Diluted
380,192
379,587
385,365
379,891
385,940
CASH DIVIDENDS PER COMMON SHARE
$
0.10
$
0.10
$
0.08
$
0.20
$
0.16
PATTERSON-UTI ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Six Months Ended
June 30,
2026
2025
Cash flows from operating activities:
Net income (loss)
$
(43,751
)
$
(47,407
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization and impairment
436,175
493,724
Deferred income tax expense (benefit)
(12,577
)
1,704
Stock-based compensation
12,937
21,867
Net (gain) loss on asset disposals
3,643
(973
)
Colombia contract drilling exit costs
20,011
-
Other
61
(1,972
)
Changes in operating assets and liabilities
(296,559
)
(119,053
)
Net cash provided by operating activities
119,940
347,890
Cash flows from investing activities:
Purchases of property and equipment
(272,552
)
(306,037
)
Proceeds from disposal of assets, including insurance recoveries
14,879
28,344
Other
(1,597
)
(11,514
)
Net cash used in investing activities
(259,270
)
(289,207
)
Cash flows from financing activities:
Purchases of treasury stock
(9,478
)
(35,849
)
Dividends paid
(76,016
)
(61,619
)
Net proceeds from issuance of senior notes
496,015
-
Repayment of senior notes
(482,505
)
-
Payments of finance leases
(3,250
)
(4,432
)
Other
(1,936
)
(10,820
)
Net cash used in financing activities
(77,170
)
(112,720
)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
(973
)
(1,365
)
Net change in cash, cash equivalents and restricted cash
(217,473
)
(55,402
)
Cash, cash equivalents and restricted cash at beginning of period
420,642
241,293
Cash, cash equivalents and restricted cash at end of period
$
203,169
$
185,891
PATTERSON-UTI ENERGY, INC.
Additional Financial and Operating Data
(unaudited, dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
Drilling Services
Revenues
$
373,501
$
351,717
$
403,805
$
725,218
$
816,665
Direct operating costs
$
259,619
$
217,861
$
254,772
$
477,480
$
502,401
Adjusted gross profit (1)
$
113,882
$
133,856
$
149,033
$
247,738
$
314,264
Depreciation, amortization and impairment
$
85,490
$
83,944
$
112,647
$
169,434
$
197,619
General and administrative
$
6,617
$
7,097
$
4,152
$
13,714
$
8,097
Other operating expense (income), net
$
(962
)
$
(1,488
)
$
(8,368
)
$
(2,450
)
$
(8,368
)
Operating income (loss)
$
22,737
$
44,303
$
40,602
$
67,040
$
116,916
Operating days - U.S. (2)
8,361
8,301
9,465
16,662
19,038
Capital expenditures
$
60,148
$
54,421
$
55,174
$
114,569
$
128,632
Completion Services
Revenues
$
753,641
$
679,587
$
719,332
$
1,433,228
$
1,485,412
Direct operating costs
$
630,716
$
581,486
$
619,083
$
1,212,202
$
1,276,764
Adjusted gross profit (1)
$
122,925
$
98,101
$
100,249
$
221,026
$
208,648
Depreciation, amortization and impairment
$
108,838
$
111,472
$
119,774
$
220,310
$
235,600
General and administrative
$
7,230
$
7,330
$
9,723
$
14,560
$
21,132
Other operating expense (income), net
$
(1,328
)
$
-
$
-
$
(1,328
)
$
-
Operating income (loss)
$
8,185
$
(20,701
)
$
(29,248
)
$
(12,516
)
$
(48,084
)
Capital expenditures
$
75,023
$
45,101
$
68,985
$
120,124
$
131,158
Drilling Products
Revenues
$
91,333
$
79,797
$
88,390
$
171,130
$
174,053
Direct operating costs
$
54,194
$
46,924
$
49,335
$
101,118
$
96,275
Adjusted gross profit (1)
$
37,139
$
32,873
$
39,055
$
70,012
$
77,778
Depreciation, amortization and impairment
$
20,478
$
19,846
$
23,584
$
40,324
$
46,460
General and administrative
$
8,344
$
7,923
$
8,651
$
16,267
$
17,770
Operating income (loss)
$
8,317
$
5,104
$
6,820
$
13,421
$
13,548
Capital expenditures
$
18,711
$
15,842
$
15,252
$
34,553
$
33,474
Other (3)
Revenues
$
9,492
$
6,230
$
7,793
$
15,722
$
23,727
Direct operating costs
$
2,800
$
2,884
$
6,173
$
5,684
$
15,337
Adjusted gross profit (1)
$
6,692
$
3,346
$
1,620
$
10,038
$
8,390
Depreciation, depletion, amortization and impairment
$
1,639
$
1,269
$
3,538
$
2,908
$
9,874
General and administrative
$
-
$
2
$
82
$
2
$
286
Operating income (loss)
$
5,053
$
2,075
$
(2,000
)
$
7,128
$
(1,770
)
Capital expenditures
$
1,910
$
1,111
$
1,802
$
3,021
$
5,398
Corporate
Depreciation
$
1,336
$
1,863
$
2,315
$
3,199
$
4,171
General and administrative
$
45,314
$
46,411
$
41,500
$
91,725
$
83,753
Other operating expense (income), net
$
4,604
$
(3,176
)
$
1,845
$
1,428
$
5,227
Capital expenditures
$
132
$
153
$
2,993
$
285
$
7,375
Total Capital Expenditures
$
155,924
$
116,628
$
144,206
$
272,552
$
306,037
Adjusted gross profit, which is considered a non-GAAP financial measure, is defined as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). See Non-GAAP Financial Measures below for a reconciliation of GAAP gross profit to adjusted gross profit by segment.
Operational data relates to our contract drilling business. A rig is considered to be operating if it is earning revenue pursuant to a contract on a given day.
Other includes our oilfield rentals business, prior to its divestiture in April 2025, and oil and natural gas working interests.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted EBITDA Reconciliations
(unaudited, dollars in thousands)
The following table reconciles Net income (loss) per the information below to Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as reported on the unaudited Condensed Consolidated Statements of Operations:
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
Net income (loss)
$
(19,275
)
$
(24,476
)
$
(48,697
)
$
(43,751
)
$
(47,407
)
Income tax expense (benefit)
(8,647
)
(3,596
)
1,194
(12,243
)
2,584
Net interest expense
17,496
14,720
16,373
32,216
32,606
Depreciation, depletion, amortization and impairment
217,781
218,394
261,858
436,175
493,724
Colombia contract drilling exit costs
20,011
-
-
20,011
-
Noncontrolling investment write-down
4,520
-
-
4,520
-
Legal accruals and settlements
-
-
(4,585
)
-
(4,585
)
Merger and integration expense
-
-
488
-
920
Adjusted EBITDA(1)
$
231,886
$
205,042
$
226,631
$
436,928
$
477,842
Total revenues
$
1,227,967
$
1,117,331
$
1,219,320
$
2,345,298
$
2,499,857
Adjusted EBITDA by Operating Segment:
Drilling Services
$
128,238
$
128,247
$
148,664
$
256,485
$
309,950
Completion Services
117,023
90,771
90,526
207,794
187,516
Drilling Products
28,795
24,950
30,404
53,745
60,008
Other
6,692
3,344
1,538
10,036
8,104
Corporate
(48,862
)
(42,270
)
(44,501
)
(91,132
)
(87,736
)
Adjusted EBITDA
$
231,886
$
205,042
$
226,631
$
436,928
$
477,842
Adjusted EBITDA is not defined by accounting principles generally accepted in the United States of America ("GAAP"). We define Adjusted EBITDA as net income (loss) plus income tax expense (benefit), net interest expense, depreciation, depletion, amortization and impairment expense, exit costs, noncontrolling investment write-down, legal accruals and settlements, impairment of goodwill and merger and integration expense. We present Adjusted EBITDA as a supplemental disclosure because we believe it provides to both management and investors additional information with respect to the performance of our fundamental business activities and a comparison of the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be construed as an alternative to the GAAP measure of net income (loss). Our computations of Adjusted EBITDA may not be the same as similarly titled measures of other companies.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit Reconciliations
(unaudited, dollars in thousands)
The following table reconciles Adjusted gross profit to gross profit, which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted gross profit:
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2026
2026
2025
2026
2025
Drilling Services
Revenues
$
373,501
$
351,717
$
403,805
$
725,218
$
816,665
Less direct operating costs
(259,619
)
(217,861
)
(254,772
)
(477,480
)
(502,401
)
Less depreciation, amortization and impairment
(85,490
)
(83,944
)
(112,647
)
(169,434
)
(197,619
)
GAAP gross profit (loss)
28,392
49,912
36,386
78,304
116,645
Depreciation, amortization and impairment
85,490
83,944
112,647
169,434
197,619
Adjusted gross profit (1)
$
113,882
$
133,856
$
149,033
$
247,738
$
314,264
Completion Services
Revenues
$
753,641
$
679,587
$
719,332
$
1,433,228
$
1,485,412
Less direct operating costs
(630,716
)
(581,486
)
(619,083
)
(1,212,202
)
(1,276,764
)
Less depreciation, amortization and impairment
(108,838
)
(111,472
)
(119,774
)
(220,310
)
(235,600
)
GAAP gross profit (loss)
14,087
(13,371
)
(19,525
)
716
(26,952
)
Depreciation, amortization and impairment
108,838
111,472
119,774
220,310
235,600
Adjusted gross profit (1)
$
122,925
$
98,101
$
100,249
$
221,026
$
208,648
Drilling Products
Revenues
$
91,333
$
79,797
$
88,390
$
171,130
$
174,053
Less direct operating costs
(54,194
)
(46,924
)
(49,335
)
(101,118
)
(96,275
)
Less depreciation, amortization and impairment
(20,478
)
(19,846
)
(23,584
)
(40,324
)
(46,460
)
GAAP gross profit (loss)
16,661
13,027
15,471
29,688
31,318
Depreciation, amortization and impairment
20,478
19,846
23,584
40,324
46,460
Adjusted gross profit (1)
$
37,139
$
32,873
$
39,055
$
70,012
$
77,778
Other
Revenues
$
9,492
$
6,230
$
7,793
$
15,722
$
23,727
Less direct operating costs
(2,800
)
(2,884
)
(6,173
)
(5,684
)
(15,337
)
Less depreciation, depletion, amortization and impairment
(1,639
)
(1,269
)
(3,538
)
(2,908
)
(9,874
)
GAAP gross profit (loss)
5,053
2,077
(1,918
)
7,130
(1,484
)
Depreciation, depletion, amortization and impairment
1,639
1,269
3,538
2,908
9,874
Adjusted gross profit (1)
$
6,692
$
3,346
$
1,620
$
10,038
$
8,390
Adjusted gross profit is considered a non-GAAP financial measure. We define "Adjusted gross profit" as revenues less direct operating costs (excluding depreciation, depletion, amortization and impairment expense). Adjusted gross profit is included as a supplemental disclosure because it is a useful indicator of our operating performance.
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Gross Profit Reconciliations
(unaudited, dollars in thousands)
Three Months Ended
June 30,
2026
Drilling Services
Adjusted gross profit
$
113,882
Colombia contract drilling exit costs
20,011
Adjusted gross profit, net of Colombia contract drilling exit costs
$
133,893
PATTERSON-UTI ENERGY, INC.
Non-GAAP Financial Measures
Adjusted Net Income (Loss) and Adjusted Earnings Per Share
(unaudited, in thousands, except per share data)
Three Months Ended June 30, 2026
As Reported
Adjusted (1)
Total
Per Share
Total
Per Share
Net income (loss) attributable to common stockholders as reported
$
(19,602
)
$
(0.05
)
$
(19,602
)
$
(0.05
)
Reverse certain items:
Colombia contract drilling exit costs (included in direct operating costs)
20,011
Colombia contract drilling exit costs (included in depreciation, amortization
and impairment)
995
Noncontrolling investment write-down
4,520
Income tax expense (benefit)
(5,360
)
Adjusted net income (loss) (1)
$
(19,602
)
$
(0.05
)
$
564
$
0.00
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock
380,192
380,192
Add dilutive effect of potential common shares
-
4,607
Weighted average number of diluted common shares outstanding
380,192
384,799
Federal statutory tax rate
21.0
%
We define adjusted net income (loss) as net income (loss) attributable to common stockholders as reported, excluding exit costs and noncontrolling investment write-down. We present adjusted net income (loss) in order to convey to investors our performance on a basis that, by excluding the items listed above, is more comparable to our net income (loss) reported in previous periods. Adjusted net income (loss) should not be construed as an alternative to GAAP net income (loss).
CONTACT:
Michael Sabella
Vice President, Investor Relations
(281) 885-7589
National Fuel Gas oznámila za 3. fiskální čtvrtletí zisk 138,6 mil. USD, tedy EPS 1,45 USD, a snížila výhled upraveného EPS pro fiskální rok 2026 na 7,40 až 7,60 USD.
WILLIAMSVILLE, N.Y., July 29, 2026 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2026 fiscal year.
THIRD QUARTER FISCAL 2026 SUMMARY
GAAP earnings of $138.6 million, or earnings per share (EPS) of $1.45, compared to GAAP earnings of $149.8 million, or $1.64 per share, in the prior year.Adjusted EPS of $1.54 compared to $1.64 from the prior year. See non-GAAP reconciliation on page 2.Net cash provided by operating activities of $1.035 billion for the nine months ending June 30, 2026, with free cash flow of $280 million (as defined on page 25) through the same period.The Integrated Upstream and Gathering segment benefitted from its strong hedge and marketing portfolio during the quarter, as a $0.56 per Mcf gain more than offset the drop in NYMEX natural gas prices compared to the prior year.Supply Corporation expanded its Line N System Upgrade Project to 294,000 dekatherms per day, executing a 20-year precedent agreement for 200,000 dekatherms per day of incremental firm transportation capacity, supporting the initial phase of the coal-to-gas conversion at the existing Shippingport Power Station site in western Pennsylvania.The Company completed the necessary financing needed to close the pending Ohio gas utility acquisition and received its final regulatory approval during the quarter, which places the acquisition on track to close on October 1 of this year.The Company maintained its longstanding focus on shareholder returns as the Board of Directors approved a 4% increase in the Company's dividend, to an annual rate of $2.22 per share. The Company has now paid a dividend for 124 consecutive years and increased its annual dividend rate for 56 consecutive years.The Company is revising its fiscal 2026 adjusted EPS guidance range of $7.40 to $7.60 per share, or $7.50 per share at the midpoint, a projected 9% increase from fiscal 2025. MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “Looking forward, with the growing demand for natural gas, the outlook for the industry and National Fuel is as strong as ever. Over the last several years, we have consistently enhanced the quality of our asset base, improved capital efficiency, and expanded our long-term growth opportunities through disciplined execution across the Company. Whether it is expanding our pipelines to serve new data center or power generation demand in the region, or producing gas supply to meet growing demand in Appalachia and across markets served by our high-quality firm transportation portfolio, our ability to benefit from these industry tailwinds is evident. In addition, our pending Ohio gas utility acquisition, once completed, will significantly increase rate base for our regulated businesses and provides an additional avenue for meaningful regulated earnings growth.
"With this strong backdrop, National Fuel is expected to deliver approximately 7% to 10% average annual EPS growth through 2029. This growth alongside our disciplined capital allocation strategy and focus on returning an increasing amount of capital to shareholders through our long-standing dividend, positions National Fuel to deliver sustainable long-term value for shareholders."
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED EARNINGS
Three Months Ended June 30,
(Thousands) (Per Share)
2026
2025
2026
2025
Reported GAAP Earnings $138,621 $149,818 $1.45 $1.64 Items impacting comparability: Costs related to the pending Ohio gas utility acquisition 6,192 — 0.07 — Tax impact of costs related to the pending Ohio acquisition (1,435) — (0.02) — Impact of equity issuance related to pending Ohio acquisition, net of interest benefits (3,566) — 0.03 — Tax impact of net interest benefit from equity issuance 826 — 0.01 — Interest expense from long-term debt issuances for pending Ohio acquisition, net of interest benefit 1,129 — 0.01 — Tax impact of interest expense from long-term debt issuances, net of interest benefit (262) — — — Premiums paid on early redemption of debt 413 — — — Tax impact of premiums paid on early redemption of debt (96) — — — Other/rounding (refer to Segment results for details) (840) (615) (0.01) — Adjusted Earnings $140,982 $149,203 $1.54 $1.64 FISCAL 2026 GUIDANCE UPDATE
National Fuel is revising its adjusted earnings per share guidance for fiscal 2026 to a range of $7.40 to $7.60. This updated range incorporates our third quarter results as well as lower expected production for the remaining three months, partially offset by lower unit costs in the Integrated Upstream and Gathering segment. The Company is maintaining an average NYMEX natural gas price assumption of $3.00 per MMBtu for the remaining three months of fiscal 2026, which approximates the current NYMEX forward curve at this time.
Integrated Upstream and Gathering segment fiscal 2026 production is now expected to be 420 to 430 Bcf, a moderate decrease from our prior guidance, primarily reflecting the combined impact of ongoing appraisal activities and greater than anticipated well interactions related to more intensive completion design testing. While these activities affected near-term production, they will allow for further optimization of future development planning and capital allocation decisions and are not expected to impact the outlook for long-term production growth and continued improvement in capital efficiency. This guidance range also does not incorporate any price-related curtailments over the remainder of the fiscal year.
The Company is also revising its Integrated Upstream and Gathering segment capital expenditure guidance to a range of $580 to $605 million, a 2% increase at the midpoint, largely as a result of higher oil and diesel prices, as well as schedule changes. In addition, this segment has implemented a new discretionary land acquisition spending program, which is expected to lead to an additional $20 to $40 million in spending outside of the aforementioned capital spending guidance. This discretionary program represents a strategic investment to expand core inventory depth in Tioga County and strengthen what the Company believes is one of the premier natural gas resource positions in North America. Over the next two years, the Company expects to invest $100 to $200 million of discretionary land capital to extend development runway, increase long-term development optionality, and support future capital efficiency improvements.
In addition, the Company is also revising its capital expenditure guidance in the Pipeline and Storage segment, which is now expected to be between $235 to $265 million. This increase is driven by the strong execution on our various modernization and expansion projects for this calendar year, several of which are proceeding at a quicker pace than previously anticipated.
The acquisition of CenterPoint Energy's Ohio natural gas utility business is expected to close on October 1 of this year. As a result, this is not expected to impact fiscal 2026 guidance, which also excludes any financing or acquisition-related costs.
The Company’s other fiscal 2026 guidance assumptions are detailed in the table on page 7.
LONG-TERM OUTLOOK
National Fuel plans to provide detailed fiscal 2027 guidance after the closing of the Ohio utility acquisition, which is on track to occur on October 1 of this year.
The Company is also updating its long-term earnings per share outlook, which it now expects to be 7% to 10% per year, on average from fiscal 2026 through fiscal 2029, using the current natural gas price outlook. In addition to significant per-share earnings growth driven by strong outlooks in each segment, the Company anticipates leveraging its best-in-class capital efficiency trend to generate between $1.0 and $1.5 billion of free cash flow over the next three years. The combination of significant earnings growth, a more balanced business mix following the closing of the Ohio utility acquisition, and strong free cash flow generation is expected to provide increased flexibility to allocate capital in ways that maximize per share value over the long-term. This free cash flow is projected to be utilized to reduce outstanding debt, which will further strengthen the Company's investment grade balance sheet, and support strategic investments and other opportunities to enhance shareholder returns beyond the 7% to 10% target.
FINANCING ACTIVITIES UPDATE
In June 2026, the Company issued $1.5 billion of new three-, five-, and ten-year notes (split into three equal tranches) to fund a portion of the CenterPoint acquisition and refinance the early redemption of $300 million of notes that were scheduled to mature in October 2026. In conjunction with these transactions, the Company recognized an after-tax loss of $0.3 million related to the early redemption of the October 2026 maturity, which is presented as an item impacting comparability for the quarter.
DISCUSSION OF THIRD QUARTER RESULTS BY SEGMENT
The following earnings discussion of each operating segment for the quarter ended June 30, 2026 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the nine months ended June 30, 2026 are summarized on pages 10 and 11).
Note that management defines adjusted earnings as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.
Integrated Upstream and Gathering Segment
The Integrated Upstream and Gathering segment's exploration and production operations are carried out by Seneca Resources Company, LLC (“Seneca”) and its gathering operations are carried out by the operating subsidiaries of National Fuel Gas Midstream Company, LLC ("Gathering"). Seneca explores for, develops, and produces primarily natural gas reserves in Pennsylvania. Gathering constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which primarily delivers Seneca's production and, to a lesser extent, third-party Appalachian production to various interstate pipelines.
Three Months Ended June 30,(in thousands)2026
2025
VarianceGAAP Earnings$111,874 $116,667 $(4,793)Premiums paid on early redemption of debt 413 — 413 Tax impact of premiums paid on early redemption of debt (96) — (96)Unrealized (gain) loss on derivative asset (2022 CA asset sale) — 45 (45)Tax impact of unrealized (gain) loss on derivative asset — (12) 12 Adjusted Earnings$112,191 $116,700 $(4,509) Adjusted EBITDA$248,528 $258,411 $(9,883) The Integrated Upstream and Gathering segment's third quarter GAAP earnings decreased $4.8 million versus the prior year. Excluding items impacting comparability, adjusted earnings decreased $4.5 million from the prior year, as the benefit of higher realized natural gas prices and lower interest expense was more than offset by lower production volumes and higher operating expenses.
Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.81 per Mcf, an increase of $0.10 per Mcf, or 4%, compared to the prior year, as gains in Seneca's hedging portfolio and tighter basis differentials more than offset lower NYMEX prices during the quarter.
During the third quarter, Seneca produced 104.3 Bcf of natural gas, a decrease of 7.3 Bcf, or 7%, compared to the prior year, as production from recently turned-in-line wells was more than offset by natural declines from existing wells.
Three Months Ended June 30,(Cost per Mcf)2026
2025
VarianceUpstream General and Administrative Expense (“G&A”)$0.17 $0.17 $— Lease Operating Expense (“LOE”)$0.15 $0.11 $0.04 Adjusted Gathering Operation and Maintenance Expense ("O&M")$0.13 $0.11 (1) $0.02 Taxes and Other$0.07 $0.08 $(0.01)Adjusted Total Cash Operating Costs$0.52 $0.47 (1) $0.05 Depreciation, Depletion and Amortization Expense (“DD&A”)$0.80 $0.71 $0.09 Adjusted Total Operating Costs$1.32 $1.18 (1) $0.14 (1) Adjusted Gathering O&M Expense of $0.11 per Mcf for the quarter ended June 30, 2025 excludes a $0.04 per Mcf reduction to Gathering O&M Expense attributed to a change in segment reporting, which is fully offset in operating revenue. On a per unit basis, third quarter adjusted total operating costs were $0.14 higher compared to the prior year, primarily due to higher per unit LOE and DD&A expense. Consistent with previous quarters this fiscal year, the increase in per unit LOE compared to the prior year was largely driven by additional third-party gathering expenses. The increase in DD&A expense was largely driven by the impact of ceiling test impairments Seneca recorded in fiscal 2025 that artificially lowered the per unit DD&A rate in the prior year.
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.
Three Months Ended June 30,(in thousands)2026
2025
VarianceGAAP Earnings$28,739 $28,857 $(118) Adjusted EBITDA$66,933 $67,019 $(86) The Pipeline and Storage segment’s third quarter GAAP earnings were in line with the prior year as an increase in operating revenues was offset by higher O&M and DD&A.
Operating revenues increased $1.0 million, primarily driven by higher transportation revenues related to new long-term contracts. O&M expense increased $1.2 million, primarily due to higher third-party and material costs.
Utility Segment
The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.
Three Months Ended
June 30,
(in thousands)2026
2025
Variance
GAAP Earnings$5,686 $4,997 $689 Adjusted EBITDA$27,148 $25,743 $1,405 The Utility segment’s third quarter GAAP earnings increased $0.7 million, primarily as a result of higher customer margin (operating revenue less purchased gas sold) of $6.0 million. Contributors to increased customer margin included the implementation of year two of the three-year joint settlement in New York and revenue from the Utility’s Distribution System Improvement Charge in Pennsylvania. Partially offsetting this was an increase in O&M expense driven by higher employee-related costs (which were largely the result of new collective bargaining agreements) and an increase in uncollectible expense.
Corporate and All Other
Three Months Ended June 30,(in thousands)2026
2025
VarianceGAAP Earnings$(7,678) $(703) $(6,975)Costs related to the pending Ohio gas utility acquisition 6,192 — 6,192 Tax impact of costs related to the pending Ohio acquisition (1,435) — (1,435)Net interest benefit from equity issuance related to pending acquisition (3,566) — (3,566)Tax impact of net interest benefit from equity issuance 826 — 826 Interest expense from long-term debt issuances for pending Ohio acquisition, net of interest benefit 1,129 — 1,129 Tax impact of interest expense from long-term debt issuances, net of interest benefit (262) — (262)Unrealized (gain) loss on other investments (1,064) (820) (244)Tax impact of unrealized (gain) loss on other investments 224 172 52 Adjusted Earnings$(5,634) $(1,351) $(4,283) The Company’s operations that are included in Corporate and All Other generated a combined net loss of $7.7 million in the third quarter, largely due to transaction and financing costs related to the pending Ohio gas utility acquisition.
EARNINGS TELECONFERENCE
A conference call to discuss the results will be held on Thursday, July 30, 2026, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call is provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com, and a replay of the webcast will be available on the website following the call.
National Fuel is an integrated energy company reporting financial results for three operating segments: Integrated Upstream and Gathering, Pipeline and Storage, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.
Analyst Contact:Ryan P. Vossler716-857-7158Media Contact:Karen L. Merkel716-857-7654 Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the Company’s ability to complete strategic transactions, such as the planned CenterPoint Ohio acquisition, including receipt of required regulatory clearances and satisfaction of other conditions to closing, and to recognize the anticipated benefits of such transactions; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; changes in the price of natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures, other investments, and acquisitions, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIESGUIDANCE SUMMARY As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2026. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below. The acquisition of CenterPoint Energy's Ohio natural gas utility business still is expected to close in the fourth quarter of calendar 2026, as previously planned. As a result, this is not expected to impact fiscal 2026 guidance, which also excludes any financing or acquisition-related costs. Fiscal 2026 adjusted earnings per share guidance also excludes after-tax financing and acquisition related costs during the nine months ended June 30, 2026, which reduced earnings by $0.30 per share, and expected financing and acquisition related costs during the three months ending September 30, 2026.
The revised adjusted earnings per share guidance range also excludes certain items that impacted the comparability of adjusted operating results during the nine months ended June 30, 2026, including after-tax unrealized losses on other investments, which increased earnings by less than $0.01 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the remaining three months ending September 30, 2026, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.
Previous FY 2026 Guidance Updated FY 2026 Guidance Consolidated Adjusted Earnings per Share$7.45 - $7.75 $7.40 - $7.60Consolidated Effective Tax Rate~ 25.5% ~ 25.5% Capital Expenditures (Millions) Integrated Upstream and Gathering$560 - $610 $580 - $605(1)Pipeline and Storage$210 - $250 $235 - $265Utility$185 - $205 $185 - $205Consolidated Capital Expenditures$955 - $1,065 $1,000 - $1,075 Integrated Upstream & Gathering Segment Guidance Commodity Price Assumptions(price for remaining six months) (price for remaining three months)NYMEX natural gas price (per MMBtu)$3.00 $3.00Appalachian basin spot price (per MMBtu)$2.20 $2.15 Production (Bcf)425 to 440 420 to 430 Integrated Operating Costs ($/Mcf) Upstream General and Administrative Expense~$0.18 ~$0.18Lease Operating Expense$0.16 - $0.17 $0.15 - $0.16Gathering Operation and Maintenance Expense~$0.12 ~$0.12Depreciation, Depletion and Amortization$0.76 - $0.81 $0.77 - $0.80 Pipeline and Storage Segment Revenues (Millions)$420 - $435 $420 - $435 Utility Segment Guidance (Millions) Customer Margin(2)$470 - $490 $470 - $490O&M Expense$250 – $260 $250 – $260Non-Service Pension & OPEB Income$23 - $27 $23 - $27 (1) Integrated Upstream and Gathering Capital Expenditures exclude $20 to $40 million of discretionary land spending.
(2) Customer Margin is defined as Operating Revenues less Purchased Gas Expense.
NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGSQUARTER ENDED JUNE 30, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / (Thousands of Dollars)& Gathering Storage Utility All Other Consolidated(1) Third quarter 2025 GAAP earnings$116,667 $28,857 $4,997 $(703) $149,818 Items impacting comparability: Unrealized (gain) loss on derivative asset 45 45 Tax impact of unrealized (gain) loss on derivative asset (12) (12)Unrealized (gain) loss on other investments (820) (820)Tax impact of unrealized (gain) loss on other investments 172 172 Third quarter 2025 adjusted earnings 116,700 28,857 4,997 (1,351) 149,203 Drivers of adjusted earnings(2) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production (15,646) (15,646)Higher (lower) realized natural gas prices, after hedging 8,253 8,253 Higher (lower) gathering revenues 951 951 Higher (lower) other operating revenues 3,830 3,830 Pipeline and Storage Revenues Higher (lower) operating revenues 760 760 Utility Margins(3) Impact of usage and weather (689) (689)Impact of new rates in New York 4,443 4,443 Regulatory revenue adjustments 304 304 Higher (lower) other operating revenues 644 644 Operating Expenses Lower (higher) lease operating expenses (2,592) (2,592)Lower (higher) operating expenses (3,290) (960) (3,644) (2,500) (10,394)Lower (higher) property, franchise and other taxes 1,145 1,145 Lower (higher) depreciation / depletion (2,672) (833) (3,505)Other Income (Expense) Higher (lower) other income 635 (454) 181 (Higher) lower interest expense 3,712 (637) 3,075 Income Taxes Lower (higher) income tax expense / effective tax rate 2,095 564 (711) (712) 1,236 All other / rounding (295) (284) 342 20 (217)Third quarter 2026 adjusted earnings 112,191 28,739 5,686 (5,634) 140,982 Items impacting comparability: Costs related to the pending Ohio gas utility acquisition (6,192) (6,192)Tax impact of costs related to the pending Ohio gas utility acquisition 1,435 1,435 Net interest benefit from equity issuance related to pending acquisition 3,566 3,566 Tax impact of net interest benefit from equity issuance (826) (826)Interest expense from long-term debt issuances for pending acquisition, net of interest benefit (1,129) (1,129)Tax impact of interest expense from long-term debt issuances, net of interest benefit 262 262 Premiums paid on early redemption of debt (413) (413)Tax impact of premiums paid on early redemption of debt 96 96 Unrealized gain (loss) on other investments 1,064 1,064 Tax impact of unrealized gain (loss) on other investments (224) (224)Third quarter 2026 GAAP earnings$111,874 $28,739 $5,686 $(7,678) $138,621 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHAREQUARTER ENDED JUNE 30, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / & Gathering Storage Utility All Other Consolidated(1) Third quarter 2025 GAAP earnings per share$1.28 $0.32 $0.05 $(0.01) $1.64 Items impacting comparability: Unrealized (gain) loss on derivative asset, net of tax — Unrealized (gain) loss on other investments, net of tax (0.01) (0.01)Rounding 0.01 0.01 Third quarter 2025 adjusted earnings per share 1.28 0.32 0.05 (0.01) 1.64 Drivers of adjusted earnings(2)(4) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production (0.17) (0.17)Higher (lower) realized natural gas prices, after hedging 0.09 0.09 Higher (lower) gathering revenues 0.01 0.01 Higher (lower) other operating revenues 0.04 0.04 Pipeline and Storage Revenues Higher (lower) operating revenues 0.01 0.01 Utility Margins(3) Impact of usage and weather (0.01) (0.01)Impact of new rates in New York 0.05 0.05 Regulatory revenue adjustments — — Higher (lower) other operating revenues 0.01 0.01 Operating Expenses Lower (higher) lease operating expenses (0.03) (0.03)Lower (higher) operating expenses (0.04) (0.01) (0.04) (0.03) (0.12)Lower (higher) property, franchise and other taxes 0.01 0.01 Lower (higher) depreciation / depletion (0.03) (0.01) (0.04)Other Income (Expense) Higher (lower) other income 0.01 — 0.01 (Higher) lower interest expense 0.04 (0.01) 0.03 Income Taxes Lower (higher) income tax expense / effective tax rate 0.02 0.01 (0.01) (0.01) 0.01 All other / rounding 0.01 (0.02) 0.01 — — Third quarter 2026 adjusted earnings per share(4) 1.23 0.31 0.06 (0.06) 1.54 Items impacting comparability(4): Costs related to the pending Ohio gas utility acquisition, net of tax (0.05) (0.05)Impact of equity issuance related to pending acquisition, net of interest benefits (0.06) (0.01) — 0.03 (0.04)Interest expense from long-term debt issuances for pending acquisition, net of tax (0.01) (0.01)Premiums paid on early redemption of debt, net of tax — — Unrealized gain (loss) on other investments, net of tax 0.01 0.01 Third quarter 2026 GAAP earnings per share$1.17 $0.30 $0.06 $(0.08) $1.45 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)Downstream margin defined as operating revenues less purchased gas expense.(4)As a result of the equity issuance, drivers of adjusted earnings, third quarter 2026 adjusted earnings per share, and items impacting comparability for the third quarter 2026 have been calculated using adjusted diluted shares of 91,333,969. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGSNINE MONTHS ENDED JUNE 30, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / (Thousands of Dollars)& Gathering Storage Utility All Other Consolidated(1)Nine months ended June 30, 2025 GAAP earnings$221,205 $93,019 $101,040 $(4,102) $411,162 Items impacting comparability: Impairment of assets 141,802 141,802 Tax impact of impairment of assets (37,169) (37,169)Premiums paid on early redemption of debt 2,385 2,385 Tax impact of premiums paid on early redemption of debt (642) (642)Unrealized (gain) loss on derivative asset 729 729 Tax impact of unrealized (gain) loss on derivative asset (196) (196)Unrealized (gain) loss on other investments 1,780 1,780 Tax impact of unrealized (gain) loss on other investments (374) (374)Nine months ended June 30, 2025 adjusted earnings 328,114 93,019 101,040 (2,696) 519,477 Drivers of adjusted earnings(2) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production 1,406 1,406 Higher (lower) realized natural gas prices, after hedging 77,803 77,803 Higher (lower) other operating revenues 8,880 8,880 Pipeline and Storage Revenues Higher (lower) operating revenues 2,481 2,481 Utility Margins(3) Impact of usage and weather 957 957 Impact of new rates in New York 10,520 10,520 Regulatory revenue adjustments 4,856 4,856 Higher (lower) other operating revenues 1,928 1,928 Operating Expenses Lower (higher) lease operating expenses (11,316) (11,316)Lower (higher) operating expenses (9,061) (1,559) (10,298) (4,453) (25,371)Lower (higher) depreciation / depletion (14,945) (2,359) (2,578) (19,882)Other Income (Expense) Higher (lower) other income (1,081) 862 708 489 (Higher) lower interest expense 10,510 (717) (1,949) 7,844 Income Taxes Lower (higher) income tax expense / effective tax rate (2,288) 1,140 (1,290) (741) (3,179) All other / rounding (835) (76) (155) 69 (997)Nine months ended June 30, 2026 adjusted earnings 388,268 91,565 105,125 (9,062) 575,896 Items impacting comparability: Costs related to the pending Ohio gas utility acquisition (16,378) (16,378)Tax impact of costs related to the pending Ohio gas utility acquisition 3,796 3,796 Net interest benefit from equity issuance 7,497 7,497 Tax impact of net interest benefit from equity issuance (1,738) (1,738)Interest expense from long-term debt issuances for pending acquisition, net of interest benefit (1,129) (1,129)Tax impact of interest expense from long-term debt issuances, net of interest benefit 262 262 Premiums paid on early redemption of debt (413) (413)Tax impact of premiums paid on early redemption of debt 96 96 Unrealized gain (loss) on other investments 57 57 Tax impact of unrealized gain (loss) on other investments (12) (12)Nine months ended June 30, 2026 GAAP earnings$387,951 $91,565 $105,125 $(16,707) $567,934 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARENINE MONTHS ENDED JUNE 30, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / & Gathering Storage Utility All Other Consolidated(1)Nine months ended June 30, 2025 GAAP earnings per share$2.42 $1.02 $1.11 $(0.04) $4.51 Items impacting comparability: Impairment of assets, net of tax 1.14 1.14 Premiums paid on early redemption of debt, net of tax 0.02 0.02 Unrealized (gain) loss on derivative asset, net of tax 0.01 0.01 Unrealized (gain) loss on other investments, net of tax 0.02 0.02 Rounding (0.01) (0.01)Nine months ended June 30, 2025 adjusted earnings per share 3.59 1.02 1.11 (0.03) 5.69 Drivers of adjusted earnings(2)(4) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production 0.02 0.02 Higher (lower) realized natural gas prices, after hedging 0.85 0.85 Higher (lower) other operating revenues 0.10 0.10 Pipeline and Storage Revenues Higher (lower) operating revenues 0.03 0.03 Utility Margins(3) Impact of usage and weather 0.01 0.01 Impact of new rates in New York 0.12 0.12 Regulatory revenue adjustments 0.05 0.05 Higher (lower) other operating revenues 0.02 0.02 Operating Expenses Lower (higher) lease operating expenses (0.12) (0.12)Lower (higher) operating expenses (0.10) (0.02) (0.11) (0.05) (0.28)Lower (higher) depreciation / depletion (0.16) (0.03) (0.03) (0.22)Other Income (Expense) Higher (lower) other income (0.01) 0.01 0.01 0.01 (Higher) lower interest expense 0.12 (0.01) (0.02) 0.09 Income Taxes Lower (higher) income tax expense / effective tax rate (0.03) 0.01 (0.01) (0.01) (0.04) All other / rounding (0.02) — (0.01) 0.01 (0.02)Nine months ended June 30, 2026 adjusted earnings per share(4) 4.25 1.00 1.15 (0.09) 6.31 Items impacting comparability(4): Costs related to the pending Ohio gas utility acquisition, net of tax (0.14) (0.14)Impact of equity issuance related to pending acquisition, net of interest benefits (0.14) (0.03) (0.04) 0.06 (0.15)Interest expense from long-term debt issuances for pending acquisition, net of tax (0.01) (0.01)Premiums paid on early redemption of debt, net of tax — — Unrealized gain (loss) on other investments, net of tax — — Nine months ended June 30, 2026 GAAP earnings per share$4.11 $0.97 $1.11 $(0.18) $6.01 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)Downstream margin defined as operating revenues less purchased gas expense.(4)As a result of the equity issuance, drivers of adjusted earnings, nine months ended June 30, 2026 adjusted earnings per share, and items impacting comparability for the nine months ended June 30, 2026 have been calculated using adjusted diluted shares of 91,284,991. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES (Thousands of Dollars, except per share amounts) Three Months Ended Nine Months Ended June 30, June 30, (Unaudited) (Unaudited)SUMMARY OF OPERATIONS2026
2025
2026
2025
Operating Revenues: Utility Revenues$165,422 $157,446 $850,258 $729,445 Integrated Upstream and Gathering Revenues 302,516 306,402 984,561 873,901 Pipeline and Storage Revenues 69,559 67,982 212,558 207,916 537,497 531,830 2,047,377 1,811,262 Operating Expenses: Purchased Gas 29,878 27,986 323,335 228,661 Operation and Maintenance: Utility 60,592 56,053 187,549 174,744 Integrated Upstream and Gathering and Other 63,534 47,137 180,904 137,312 Pipeline and Storage 31,013 29,814 88,459 86,544 Property, Franchise and Other Taxes 22,482 24,180 72,519 71,450 Depreciation, Depletion and Amortization 121,058 116,408 362,412 337,055 Impairment of Assets — — — 141,802 328,557 301,578 1,215,178 1,177,568 Operating Income 208,940 230,252 832,199 633,694 Other Income (Expense): Other Income (Deductions) 11,866 8,534 37,100 31,486 Interest Expense on Long-Term Debt (33,181) (34,333) (96,776) (107,356)Other Interest Expense (2,831) (3,556) (16,344) (13,033) Income Before Income Taxes 184,794 200,897 756,179 544,791 Income Tax Expense 46,173 51,079 188,245 133,629 Net Income Available for Common Stock$138,621 $149,818 $567,934 $411,162 Earnings Per Common Share Basic$1.46 $1.66 $6.06 $4.54 Diluted$1.45 $1.64 $6.01 $4.51 Weighted Average Common Shares: Used in Basic Calculation 95,034,935 90,358,018 93,730,191 90,546,228 Used in Diluted Calculation 95,736,482 91,139,556 94,445,771 91,247,547 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited) June 30,
September 30,(Thousands of Dollars)2026
2025
ASSETS Property, Plant and Equipment$16,097,040 $15,406,329 Less - Accumulated Depreciation, Depletion and Amortization 8,002,972 7,693,687 Net Property, Plant and Equipment 8,094,068 7,712,642 Current Assets: Cash and Temporary Cash Investments 1,235,178 43,166 Receivables - Net 227,913 180,801 Unbilled Revenue 16,916 16,219 Gas Stored Underground 12,838 33,468 Materials and Supplies - at average cost 51,232 50,545 Unrecovered Purchased Gas Costs 2,136 5,769 Other Current Assets 67,660 80,759 Total Current Assets 1,613,873 410,727 Other Assets: Recoverable Future Taxes 98,996 89,247 Unamortized Debt Expense 5,821 6,236 Other Regulatory Assets 123,464 135,486 Deferred Charges 117,345 73,941 Other Investments 66,946 68,346 Goodwill 5,476 5,476 Prepaid Pension and Post-Retirement Benefit Costs 187,737 169,228 Fair Value of Derivative Financial Instruments 127,630 39,388 Other 10,411 8,387 Total Other Assets 743,826 595,735 Total Assets$10,451,767 $8,719,104 CAPITALIZATION AND LIABILITIES Capitalization: Comprehensive Shareholders' Equity Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 95,035,675 Shares and 90,379,095 Shares, Respectively$95,036 $90,379 Paid in Capital 1,393,023 1,050,918 Earnings Reinvested in the Business 2,426,044 2,012,529 Accumulated Other Comprehensive Income (Loss) 9,576 (59,222)Total Comprehensive Shareholders' Equity 3,923,679 3,094,604 Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 3,567,401 2,382,861 Total Capitalization 7,491,080 5,477,465 Current and Accrued Liabilities: Notes Payable to Banks and Commercial Paper — 150,200 Current Portion of Long-Term Debt — 300,000 Accounts Payable 146,096 184,046 Amounts Payable to Customers 752 968 Dividends Payable 52,745 48,353 Interest Payable on Long-Term Debt 34,475 14,393 Customer Advances — 17,188 Customer Security Deposits 27,723 29,853 Other Accruals and Current Liabilities 241,398 174,689 Fair Value of Derivative Financial Instruments 1,027 6,074 Total Current and Accrued Liabilities 504,216 925,764 Other Liabilities: Deferred Income Taxes 1,353,287 1,225,262 Taxes Refundable to Customers 302,149 306,335 Cost of Removal Regulatory Liability 319,921 307,659 Other Regulatory Liabilities 116,935 121,944 Pension and Other Post-Retirement Liabilities 3,768 5,252 Asset Retirement Obligations 223,021 236,787 Other Liabilities 137,390 112,636 Total Other Liabilities 2,456,471 2,315,875 Commitments and Contingencies — — Total Capitalization and Liabilities$10,451,767 $8,719,104 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Nine Months Ended June 30,(Thousands of Dollars) 2026
2025
Operating Activities: Net Income Available for Common Stock $567,934 $411,162 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Impairment of Assets — 141,802 Depreciation, Depletion and Amortization 362,412 337,055 Deferred Income Taxes 88,936 60,754 Premium Paid on Early Redemption of Debt 413 2,385 Stock-Based Compensation 14,801 15,721 Other 17,695 19,296 Change in: Receivables and Unbilled Revenue (47,233) (95,254)Gas Stored Underground and Materials and Supplies 19,943 18,803 Unrecovered Purchased Gas Costs 3,633 (2,903)Other Current Assets 13,054 28,038 Accounts Payable 2 1,744 Amounts Payable to Customers (216) (18,445)Customer Advances (17,188) (19,373)Customer Security Deposits (2,130) (7,526)Other Accruals and Current Liabilities 57,892 44,283 Other Assets (15,919) (35,348)Other Liabilities (29,494) (39,918)Net Cash Provided by Operating Activities $1,034,535 $862,276 Investing Activities: Capital Expenditures $(764,515) $(627,316)Other 10,302 9,352 Net Cash Used in Investing Activities $(754,213) $(617,964) Financing Activities: Changes in Notes Payable to Banks and Commercial Paper $(150,200) $(29,200)Shares Repurchased Under Repurchase Plan — (54,430)Reduction of Long-Term Debt (601,239) (1,004,086)Net Proceeds From Issuance of Long-Term Debt 1,481,195 988,731 Dividends Paid on Common Stock (150,027) (140,098)Net Proceeds from Common Stock Sale 338,396 — Net Repurchases of Common Stock Under Stock and Benefit Plans (6,435) (4,134)Net Cash Provided by (Used in) Financing Activities $911,690 $(243,217) Net Increase in Cash and Cash Equivalents 1,192,012 1,095 Cash and Cash Equivalents at Beginning of Period 43,166 38,222 Cash and Cash Equivalents at June 30 $1,235,178 $39,317 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) INTEGRATED UPSTREAM AND GATHERING SEGMENT Three Months Ended Nine Months Ended(Thousands of Dollars, except per share amounts)June 30, June 30, 2026
2025
Variance 2026
2025
VarianceTotal Operating Revenues$302,516 $306,402 $(3,886) $984,561 $873,901 $110,660 Operating Expenses: Operation and Maintenance: Upstream General and Administrative Expense 17,487 18,602 (1,115) 55,365 56,776 (1,411)Lease Operating Expense 15,847 12,566 3,281 50,034 35,710 14,324 Gathering Operation and Maintenance Expense 13,595 7,865 5,730 37,788 23,760 14,028 All Other Operation and Maintenance Expense 3,366 3,816 (450) 9,847 10,994 (1,147)Property, Franchise and Other Taxes 3,693 5,142 (1,449) 12,118 12,572 (454)Depreciation, Depletion and Amortization 83,078 79,696 3,382 247,888 228,970 18,918 Impairment of Assets — — — — 141,802 (141,802) 137,066 127,687 9,379 413,040 510,584 (97,544) Operating Income 165,450 178,715 (13,265) 571,521 363,317 208,204 Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit (Cost) (81) 36 (117) (244) 110 (354)Interest and Other Income 414 44 370 986 568 418 Interest Expense on Long-Term Debt (493) — (493) (493) (3,283) 2,790 Interest Expense (13,016) (17,795) 4,779 (44,260) (56,746) 12,486 Income Before Income Taxes 152,274 161,000 (8,726) 527,510 303,966 223,544 Income Tax Expense 40,400 44,333 (3,933) 139,559 82,761 56,798 Net Income$111,874 $116,667 $(4,793) $387,951 $221,205 $166,746 Net Income Per Share (Diluted)$1.17 $1.28 $(0.11) $4.11 $2.42 $1.69 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) PIPELINE AND STORAGE SEGMENT Three Months Ended Nine Months Ended(Thousands of Dollars, except per share amounts)June 30, June 30, 2026
2025
Variance 2026
2025
VarianceRevenues from External Customers$69,559 $67,982 $1,577 $212,558 $207,916 $4,642 Intersegment Revenues 36,982 37,597 (615) 112,347 113,849 (1,502)Total Operating Revenues 106,541 105,579 962 324,905 321,765 3,140 Operating Expenses: Purchased Gas (67) (164) 97 (74) (42) (32)Operation and Maintenance 31,479 30,264 1,215 89,913 87,940 1,973 Property, Franchise and Other Taxes 8,196 8,460 (264) 25,178 25,727 (549)Depreciation, Depletion and Amortization 19,656 18,601 1,055 58,719 55,733 2,986 59,264 57,161 2,103 173,736 169,358 4,378 Operating Income 47,277 48,418 (1,141) 151,169 152,407 (1,238) Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit 537 952 (415) 1,610 2,857 (1,247)Interest and Other Income 2,077 1,111 966 4,441 4,945 (504)Interest Expense (11,735) (11,209) (526) (35,314) (34,637) (677)Income Before Income Taxes 38,156 39,272 (1,116) 121,906 125,572 (3,666)Income Tax Expense 9,417 10,415 (998) 30,341 32,553 (2,212)Net Income$28,739 $28,857 $(118) $91,565 $93,019 $(1,454)Net Income Per Share (Diluted)$0.30 $0.32 $(0.02) $0.97 $1.02 $(0.05) NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) UTILITY SEGMENT Three Months Ended Nine Months Ended(Thousands of Dollars, except per share amounts)June 30, June 30, 2026
2025
Variance 2026
2025
VarianceRevenues from External Customers$165,422 $157,446 $7,976 $850,258 $729,445 $120,813 Intersegment Revenues 78 77 1 294 279 15 Total Operating Revenues 165,500 157,523 7,977 850,552 729,724 120,828 Operating Expenses: Purchased Gas 66,239 64,292 1,947 433,384 337,541 95,843 Operation and Maintenance 61,652 57,039 4,613 190,778 177,742 13,036 Property, Franchise and Other Taxes 10,461 10,449 12 34,827 32,761 2,066 Depreciation, Depletion and Amortization 18,090 17,945 145 55,171 51,908 3,263 156,442 149,725 6,717 714,160 599,952 114,208 Operating Income 9,058 7,798 1,260 136,392 129,772 6,620 Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit 5,220 5,328 (108) 23,032 23,498 (466)Interest and Other Income 1,054 628 426 3,426 1,869 1,557 Interest Expense (10,764) (10,958) 194 (33,508) (32,601) (907)Income Before Income Taxes 4,568 2,796 1,772 129,342 122,538 6,804 Income Tax Expense (Benefit) (1,118) (2,201) 1,083 24,217 21,498 2,719 Net Income$5,686 $4,997 $689 $105,125 $101,040 $4,085 Net Income Per Share (Diluted)$0.06 $0.05 $0.01 $1.11 $1.11 $— NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) Three Months Ended Nine Months Ended(Thousands of Dollars, except per share amounts)June 30, June 30,ALL OTHER2026
2025
Variance 2026
2025
VarianceTotal Operating Revenues$— $— $— $— $— $— Operating Expenses: Operation and Maintenance — — — — — — — — — — — — Operating Loss — — — — — — Other Income (Expense): Interest and Other Income (Deductions) (172) (131) (41) 1,053 (489) 1,542 Interest Expense (122) (141) 19 (376) (389) 13 Income (Loss) before Income Taxes (294) (272) (22) 677 (878) 1,555 Income Tax Expense (Benefit) (72) (63) (9) 154 (204) 358 Net Income (Loss)$(222) $(209) $(13) $523 $(674) $1,197 Net Income (Loss) Per Share (Diluted)$— $— $— $— $(0.01) $0.01 Three Months Ended Nine Months Ended June 30, June 30,CORPORATE2026
2025
Variance 2026
2025
VarianceRevenues from External Customers$— $— $— $— $— $— Intersegment Revenues 1,436 1,341 95 4,307 4,024 283 Total Operating Revenues 1,436 1,341 95 4,307 4,024 283 Operating Expenses: Operation and Maintenance 13,915 5,725 8,190 30,160 14,992 15,168 Property, Franchise and Other Taxes 132 129 3 396 390 6 Depreciation, Depletion and Amortization 234 166 68 634 444 190 14,281 6,020 8,261 31,190 15,826 15,364 Operating Loss (12,845) (4,679) (8,166) (26,883) (11,802) (15,081)Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Costs (217) (212) (5) (652) (635) (17)Interest and Other Income 39,151 41,073 (1,922) 116,316 123,918 (7,602)Interest Expense on Long-Term Debt (32,688) (34,333) 1,645 (96,283) (104,073) 7,790 Other Interest Expense (3,311) (3,748) 437 (15,754) (13,815) (1,939)Loss before Income Taxes (9,910) (1,899) (8,011) (23,256) (6,407) (16,849)Income Tax Benefit (2,454) (1,405) (1,049) (6,026) (2,979) (3,047)Net Loss$(7,456) $(494) $(6,962) $(17,230) $(3,428) $(13,802)Net Loss Per Share (Diluted)$(0.08) $(0.01) $(0.07) $(0.18) $(0.03) $(0.15) Three Months Ended Nine Months Ended June 30, June 30,INTERSEGMENT ELIMINATIONS2026
2025
Variance 2026
2025
VarianceIntersegment Revenues$(38,496) $(39,015) $519 $(116,948) $(118,152) $1,204 Operating Expenses: Purchased Gas (36,294) (36,142) (152) (109,975) (108,838) (1,137)Operation and Maintenance (2,202) (2,873) 671 (6,973) (9,314) 2,341 (38,496) (39,015) 519 (116,948) (118,152) 1,204 Operating Income — — — — — — Other Income (Expense): Interest and Other Deductions (36,117) (40,295) 4,178 (112,868) (125,155) 12,287 Interest Expense 36,117 40,295 (4,178) 112,868 125,155 (12,287)Net Income$— $— $— $— $— $— Net Income Per Share (Diluted)$— $— $— $— $— $— NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT INFORMATION (Continued)(Thousands of Dollars) Three Months Ended Nine Months Ended June 30, June 30, (Unaudited) (Unaudited) Increase Increase 2026
2025
(Decrease) 2026
2025
(Decrease) Capital Expenditures: Integrated Upstream and Gathering$146,327 (1) $150,007 (3) $(3,680) $453,903 (1)(2) $412,519 (3)(4) $41,384 Pipeline and Storage 91,571 (1) 22,700 (3) 68,871 166,199 (1)(2) 58,117 (3)(4) 108,082 Utility 46,956 (1) 50,025 (3) (3,069) 120,550 (1)(2) 128,322 (3)(4) (7,772)Total Reportable Segments 284,854 222,732 62,122 740,652 598,958 141,694 All Other — — — — — — Corporate 4,009 138 3,871 4,434 518 3,916 Eliminations — — — (546) (3,520) 2,974 Total Capital Expenditures$288,863 $222,870 $65,993 $744,540 $595,956 $148,584 (1) Capital expenditures for the quarter and nine months ended June 30, 2026, include accounts payable and accrued liabilities related to capital expenditures of $65.7 million, $29.0 million, $7.2 million and $3.4 million in the Integrated Upstream and Gathering segment, Pipeline and Storage segment, Utility segment and Corporate category, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2026, since they represent non-cash investing activities at that date. (2) Capital expenditures for the nine months ended June 30, 2026, exclude capital expenditures of $87.9 million, $19.4 million and $18.0 million in the Integrated Upstream and Gathering segment, Pipeline and Storage segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2025 and paid during the nine months ended June 30, 2026. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2025, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2026. (3) Capital expenditures for the quarter and nine months ended June 30, 2025, include accounts payable and accrued liabilities related to capital expenditures of $73.1 million, $5.7 million and $9.8 million in the Integrated Upstream and Gathering segment, Pipeline and Storage segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at June 30, 2025, since they represented non-cash investing activities at that date. (4) Capital expenditures for the nine months ended June 30, 2025, exclude capital expenditures of $85.0 million, $14.4 million and $20.6 million in the Integrated Upstream and Gathering segment, Pipeline and Storage segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the nine months ended June 30, 2025. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2025. DEGREE DAYS Percent Colder (Warmer) Than:Three Months Ended June 30,Normal
2026
2025
Normal(1) Last Year(1)Buffalo, NY843 797 825 (5.5) (3.4)Erie, PA776 711 813 (8.4) (12.5) Nine Months Ended June 30, Buffalo, NY6,195 6,360 5,825 2.7 9.2 Erie, PA5,693 5,911 5,527 3.8 6.9 (1) Percents compare actual 2026 degree days to normal degree days and actual 2026 degree days to actual 2025 degree days. NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
INTEGRATED UPSTREAM AND GATHERING INFORMATION
Three Months Ended Nine Months Ended
June 30, June 30,
Increase Increase
2026
2025
(Decrease) 2026
2025
(Decrease)
Gas Production/Prices: Production (MMcf) Appalachia 104,285 111,588 (7,303) 315,470 314,819 651 Average Prices (Per Mcf) Weighted Average $2.25 $2.69 $(0.44) $2.97 $2.66 $0.31 Weighted Average after Hedging $2.81 $2.71 $0.10 $3.05 $2.73 $0.32 Selected Operating Performance Statistics: Upstream General and Administrative Expense per Mcf(1) $0.17 $0.17 $— $0.18 $0.18 $— Lease Operating Expense per Mcf(1) $0.15 $0.11 $0.04 $0.16 $0.11 $0.05 Adjusted Gathering Operation and Maintenance Expense per Mcf(1)(2) $0.13 $0.11 $0.02 $0.12 $0.11 $0.01 Depreciation, Depletion and Amortization per Mcf(1) $0.80 $0.71 $0.09 $0.79 $0.73 $0.06 (1) Refer to page 15 for the Upstream General and Administrative Expense, Lease Operating Expense, Gathering Operation and Maintenance Expense, and Depreciation, Depletion, and Amortization Expense for the Integrated Upstream and Gathering segment. (2) Adjusted Gathering O&M Expense of $0.11 per Mcf for both the three and nine months ended June 30, 2025, exclude a $0.04 per Mcf and $0.03 per Mcf reduction, respectively, to Gathering O&M Expense attributed to a change in segment reporting, which is fully offset in operating revenue. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES Pipeline and Storage Throughput - (millions of cubic feet - MMcf) Three Months Ended Nine Months Ended June 30, June 30, Increase Increase 2026
2025
(Decrease) 2026
2025
(Decrease)Firm Transportation - Affiliated 17,166 20,123 (2,957) 97,184 101,233 (4,049)Firm Transportation - Non-Affiliated 162,182 158,910 3,272 543,183 515,411 27,772 Interruptible Transportation 935 149 786 1,543 665 878 180,283 179,182 1,101 641,910 617,309 24,601 Utility Throughput - (MMcf) Three Months Ended Nine Months Ended June 30, June 30, Increase Increase 2026
2025
(Decrease) 2026
2025
(Decrease)Retail Sales: Residential Sales 9,253 10,151 (898) 64,029 60,738 3,291 Commercial Sales 1,260 1,658 (398) 10,389 9,997 392 Industrial Sales 95 93 2 590 594 (4) 10,608 11,902 (1,294) 75,008 71,329 3,679 Transportation 12,756 13,853 (1,097) 57,927 55,881 2,046 23,364 25,755 (2,391) 132,935 127,210 5,725 NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted earnings, adjusted EBITDA, and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.
Management defines adjusted earnings as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to adjusted earnings for the three and nine months ended June 30, 2026 and 2025:
Three Months Ended Nine Months Ended June 30, June 30,(in thousands except per share amounts) 2026
2025
2026
2025
Reported GAAP Earnings $138,621 $149,818 $567,934 $411,162 Items impacting comparability: Impairment of assets — — — 141,802 Tax impact of impairment of assets — — — (37,169)Premiums paid on early redemption of debt 413 — 413 2,385 Tax impact of premiums paid on early redemption of debt (96) — (96) (642)Unrealized (gain) loss on derivative asset — 45 — 729 Tax impact of unrealized (gain) loss on derivative asset — (12) — (196)Costs related to the pending Ohio gas utility acquisition 6,192 — 16,378 — Tax impact of costs related to the pending Ohio gas utility acquisition (1,435) — (3,796) — Net interest benefit from equity issuance (3,566) — (7,497) — Tax impact of net interest benefit from equity issuance 826 — 1,738 — Interest expense from long-term debt issuances for pending acquisition, net of interest benefit 1,129 — 1,129 — Tax impact of interest expense from long-term debt issuances, net of interest benefit (262) — (262) — Unrealized (gain) loss on other investments (1,064) (820) (57) 1,780 Tax impact of unrealized (gain) loss on other investments 224 172 12 (374)Adjusted Earnings $140,982 $149,203 $575,896 $519,477 Reported GAAP Earnings Per Share $1.45 $1.64 $6.01 $4.51 Items impacting comparability: Impairment of assets, net of tax — — — 1.14 Premiums paid on early redemption of debt, net of tax — — — 0.02 Unrealized (gain) loss on derivative asset, net of tax — — — 0.01 Costs related to the pending Ohio gas utility acquisition, net of tax 0.05 — 0.14 — Impact of equity issuance related to pending acquisition, net of interest benefits 0.04 — 0.15 — Interest expense from long-term debt issuances for pending acquisition, net of tax 0.01 — 0.01 — Unrealized (gain) loss on other investments, net of tax (0.01) (0.01) — 0.02 Rounding — 0.01 — (0.01)Adjusted Earnings Per Share $1.54 $1.64 $6.31 $5.69 NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to adjusted EBITDA for the three and nine months ended June 30, 2026 and 2025:
Three Months Ended Nine Months Ended June 30, June 30,(in thousands) 2026
2025
2026
2025
Reported GAAP Earnings $138,621 $149,818 $567,934 $411,162 Depreciation, Depletion and Amortization 121,058 116,408 362,412 337,055 Other (Income) Deductions (11,866) (8,534) (37,100) (31,486)Interest Expense 36,012 37,889 113,120 120,389 Income Taxes 46,173 51,079 188,245 133,629 Impairment of Assets — — — 141,802 Costs related to the pending Ohio gas utility acquisition(1) 5,025 — 9,531 — Adjusted EBITDA $335,023 $346,660 $1,204,142 $1,112,551 Adjusted EBITDA by Segment Integrated Upstream and Gathering Adjusted EBITDA $248,528 $258,411 $819,409 $734,089 Pipeline and Storage Adjusted EBITDA 66,933 67,019 209,888 208,140 Utility Adjusted EBITDA 27,148 25,743 191,563 181,680 Corporate and All Other Adjusted EBITDA (7,586) (4,513) (16,718) (11,358)Total Adjusted EBITDA $335,023 $346,660 $1,204,142 $1,112,551 (1) For the three months and nine months ended June 30, 2026, costs represent a portion of acquisition costs recognized in O&M expense for the pending Ohio gas utility acquisition. The remaining $1.2 million and $6.8 million of acquisition costs for the three months and nine months ended June 30, 2026, respectively, are recognized in interest expense. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA Three Months Ended Nine Months Ended June 30, June 30,(in thousands)2026
2025
2026
2025
Integrated Upstream and Gathering Segment Reported GAAP Earnings$111,874 $116,667 $387,951 $221,205 Depreciation, Depletion and Amortization 83,078 79,696 247,888 228,970 Other (Income) Deductions (333) (80) (742) (678)Interest Expense 13,509 17,795 44,753 60,029 Income Taxes 40,400 44,333 139,559 82,761 Impairment of Assets — — — 141,802 Adjusted EBITDA$248,528 $258,411 $819,409 $734,089 Pipeline and Storage Segment Reported GAAP Earnings$28,739 $28,857 $91,565 $93,019 Depreciation, Depletion and Amortization 19,656 18,601 58,719 55,733 Other (Income) Deductions (2,614) (2,063) (6,051) (7,802)Interest Expense 11,735 11,209 35,314 34,637 Income Taxes 9,417 10,415 30,341 32,553 Adjusted EBITDA$66,933 $67,019 $209,888 $208,140 Utility Segment Reported GAAP Earnings$5,686 $4,997 $105,125 $101,040 Depreciation, Depletion and Amortization 18,090 17,945 55,171 51,908 Other (Income) Deductions (6,274) (5,956) (26,458) (25,367)Interest Expense 10,764 10,958 33,508 32,601 Income Taxes (1,118) (2,201) 24,217 21,498 Adjusted EBITDA$27,148 $25,743 $191,563 $181,680 Corporate and All Other Reported GAAP Earnings$(7,678) $(703) $(16,707) $(4,102)Depreciation, Depletion and Amortization 234 166 634 444 Other (Income) Deductions (2,645) (435) (3,849) 2,361 Interest Expense 4 (2,073) (455) (6,878)Income Taxes (2,526) (1,468) (5,872) (3,183)Costs related to the pending Ohio gas utility acquisition 5,025 — 9,531 — Adjusted EBITDA$(7,586) $(4,513) $(16,718) $(11,358) NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
FREE CASH FLOW Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The following table reconciles National Fuel's free cash flow to Net Cash Provided by Operating Activities on the Consolidated Statement of Cash Flows for the nine months ended June 30, 2026 and 2025:
Nine Months Ended
June 30,
(in thousands) 2026
2025
Net Cash Provided by Operating Activities $1,034,535 $862,276 Less: Net Cash Used in Investing Activities 754,213 617,964 Proceeds from Divestitures — — 280,322 244,312 Plus: Acquisitions — — Free Cash Flow $280,322 $244,312 The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.
Ryan P. Vossler
Investor Relations
716-857-7158Timothy J. Silverstein
Chief Financial Officer
716-857-6987
Second quarter comparable store sales growth of 6.0%10% increase in second quarter diluted earnings per share to $0.86$2.4 billion of share repurchases and $2.0 billion net cash provided by operating activities year-to-date SPRINGFIELD, Mo., July 29, 2026 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its second quarter ended June 30, 2026.
2nd Quarter Financial Results
Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank all of Team O’Reilly for their tremendous hard work and unwavering commitment to taking care of our customers each and every day. We are very pleased to report another quarter of strong performance, highlighted by a comparable store sales increase of 6.0% and a 10% increase in diluted earnings per share. Our Team continues to consistently execute our proven dual market strategy at a high level and delivered solid growth in both professional and DIY during the quarter. We remain committed to taking market share by providing unsurpassed levels of service to our customers, supported by best-in-class parts availability.”
Sales for the second quarter ended June 30, 2026, increased $367 million, or 8%, to $4.89 billion from $4.53 billion for the same period one year ago. Gross profit for the second quarter increased 8% to $2.52 billion (or 51.4% of sales) from $2.33 billion (or 51.4% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the second quarter increased 8% to $1.53 billion (or 31.3% of sales) from $1.41 billion (or 31.2% of sales) for the same period one year ago. Operating income for the second quarter increased 8% to $986 million (or 20.2% of sales) from $914 million (or 20.2% of sales) for the same period one year ago.
Net income for the second quarter ended June 30, 2026, increased $46 million, or 7%, to $715 million (or 14.6% of sales) from $669 million (or 14.8% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 10% to $0.86 on 829 million shares versus $0.78 on 858 million shares for the same period one year ago.
Year-to-Date Financial Results
Mr. Beckham concluded, “As a result of our strong performance in the first half of 2026, we are raising our full-year 2026 comparable store sales guidance to a range of 4% to 6%. Our updated full-year sales outlook reflects our confidence in the strength of the underlying demand drivers within our industry, as well as our Team’s focus on providing the excellent customer service that drives long-term profitable growth. Year-to-date, we have opened 110 net, new stores across North America, and we are on track to achieve our goal of 225 to 235 net, new store openings in 2026.”
Sales for the first six months of 2026 increased $791 million, or 9%, to $9.45 billion from $8.66 billion for the same period one year ago. Gross profit for the first six months of 2026 increased 9% to $4.86 billion (or 51.5% of sales) from $4.45 billion (or 51.4% of sales) for the same period one year ago. SG&A expenses for the first six months of 2026 increased 9% to $3.04 billion (or 32.1% of sales) from $2.79 billion (or 32.2% of sales) for the same period one year ago. Operating income for the first six months of 2026 increased 10% to $1.83 billion (or 19.3% of sales) from $1.66 billion (or 19.1% of sales) for the same period one year ago.
Net income for the first six months of 2026 increased $112 million, or 9%, to $1.32 billion (or 14.0% of sales) from $1.21 billion (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2026 increased 13% to $1.58 on 836 million shares versus $1.40 on 861 million shares for the same period one year ago.
2nd Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 6.0% for the second quarter ended June 30, 2026, on top of 4.1% for the same period one year ago. Comparable store sales increased 7.0% for the six months ended June 30, 2026, on top of 3.9% for the same period one year ago.
Share Repurchase Program
During the second quarter ended June 30, 2026, the Company repurchased 16.7 million shares of its common stock, at an average price per share of $90.40, for a total investment of $1.51 billion. During the first six months of 2026, the Company repurchased 26.7 million shares of its common stock, at an average price per share of $91.17, for a total investment of $2.43 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $24.3 million for the six months ended June 30, 2026. Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 7.3 million shares of its common stock, at an average price per share of $86.81, for a total investment of $632 million. The Company has repurchased a total of 1.50 billion shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $20.32, for a total aggregate investment of $30.42 billion. As of the date of this release, the Company had approximately $1.33 billion remaining under its current share repurchase authorization.
Updated Full-Year 2026 Guidance
The table below outlines the Company’s updated guidance for selected full-year 2026 financial data:
For the Year Ending December 31, 2026Net, new store openings 225 to 235Comparable store sales 4.0% to 6.0%Total revenue $18.9 billion to $19.2 billionGross profit as a percentage of sales 51.5% to 52.0%Operating income as a percentage of sales 19.3% to 19.8%Effective income tax rate 22.5%
Diluted earnings per share(1) $3.20 to $3.30Net cash provided by operating activities $3.1 billion to $3.5 billionCapital expenditures $1.3 billion to $1.4 billionFree cash flow(2) $1.8 billion to $2.1 billion (1) Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.(2) Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure: For the Year Ending (in millions) December 31, 2026 Net cash provided by operating activities $3,110 to $3,520 Less:Capital expenditures 1,300 to 1,400 Excess tax benefit from share-based compensation payments 10 to 20 Free cash flow $1,800 to $2,100 Non-GAAP Information
This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.
Earnings Conference Call Information
The Company will host a conference call on Thursday, July 30, 2026, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 532005. A replay of the conference call will be available on the Company’s website through Thursday, July 29, 2027.
About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of June 30, 2026, the Company operated 6,695 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Forward-Looking Statements
The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; trade disputes and changes in trade policies, including the imposition of new or increased tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2025, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
For further information contact:Investor Relations Contacts Leslie Skorick (417) 874-7142 Eric Bird (417) 868-4259 Media Contact Sonya Cox (417) 427-8071 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) June 30, 2026 June 30, 2025 December 31, 2025 (Unaudited) (Unaudited) (Note)Assets Current assets: Cash and cash equivalents $262,181 $198,613 $193,793 Accounts receivable, net 457,785 428,828 389,793 Amounts receivable from suppliers 170,728 123,273 159,900 Inventory 5,971,856 5,399,588 5,731,385 Other current assets 337,082 165,504 269,406 Total current assets 7,199,632 6,315,806 6,744,277 Property and equipment, at cost 10,741,816 9,708,429 10,222,249 Less: accumulated depreciation and amortization 4,191,571 3,758,465 3,964,824 Net property and equipment 6,550,245 5,949,964 6,257,425 Operating lease, right-of-use assets 2,484,413 2,409,177 2,391,150 Goodwill 955,211 943,314 948,208 Other assets, net 199,615 202,358 197,193 Total assets $17,389,116 $15,820,619 $16,538,253 Liabilities and shareholders’ deficit Current liabilities: Accounts payable $7,384,958 $6,858,649 $7,103,684 Self-insurance reserves 214,311 158,844 297,304 Accrued payroll 176,174 145,629 119,603 Accrued benefits and withholdings 275,493 238,984 240,072 Income taxes payable — 312,545 13,957 Current portion of operating lease liabilities 452,275 434,151 439,907 Other current liabilities 1,071,463 573,084 561,294 Total current liabilities 9,574,674 8,721,886 8,775,821 Long-term debt 7,014,543 5,823,744 6,016,904 Operating lease liabilities, less current portion 2,120,615 2,055,053 2,034,688 Deferred income taxes 238,615 211,920 211,210 Other liabilities 276,394 239,878 262,982 Shareholders’ equity (deficit): Common stock, $0.01 par value: Authorized shares – 1,250,000,000 Issued and outstanding shares – 816,165,813 as of June 30, 2026, 850,561,094 as of June 30, 2025, and 841,909,238 as of December 31, 2025 8,162 8,506 8,419 Additional paid-in capital 1,536,955 1,499,288 1,530,292 Retained deficit (3,416,414) (2,748,221) (2,328,817)Accumulated other comprehensive income 35,572 8,565 26,754 Total shareholders’ deficit (1,835,725) (1,231,862) (763,352) Total liabilities and shareholders’ deficit $17,389,116 $15,820,619 $16,538,253 Note: The balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data) For the Three Months Ended For the Six Months Ended June 30, June 30, 2026 2025 2026 2025 Sales $4,892,013 $4,525,058 $9,452,552 $8,661,982 Cost of goods sold, including warehouse and distribution expenses 2,375,273 2,198,520 4,588,601 4,213,959 Gross profit 2,516,740 2,326,538 4,863,951 4,448,023 Selling, general and administrative expenses 1,530,994 1,412,068 3,036,597 2,792,087 Operating income 985,746 914,470 1,827,354 1,655,936 Other income (expense): Interest expense (69,871) (57,337) (132,616) (114,901)Interest income 1,589 1,885 3,337 3,549 Other, net 6,611 2,437 6,089 1,222 Total other expense (61,671) (53,015) (123,190) (110,130) Income before income taxes 924,075 861,455 1,704,164 1,545,806 Provision for income taxes 209,011 192,860 384,919 338,726 Net income $715,064 $668,595 $1,319,245 $1,207,080 Earnings per share-basic: Earnings per share $0.87 $0.78 $1.59 $1.41 Weighted-average common shares outstanding – basic 825,197 854,003 831,853 856,768 Earnings per share-assuming dilution: Earnings per share $0.86 $0.78 $1.58 $1.40 Weighted-average common shares outstanding – assuming dilution 828,875 858,440 835,661 861,368 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) For the Six Months Ended June 30, 2026 2025 Operating activities: Net income $1,319,245 $1,207,080 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, equipment and intangibles 273,643 247,159 Amortization of debt discount and issuance costs 3,818 3,667 Deferred income taxes 27,504 (36,679)Share-based compensation programs 17,512 18,812 Other 5,722 7,945 Changes in operating assets and liabilities: Accounts receivable (75,256) (73,966)Inventory (239,312) (280,899)Accounts payable 284,815 331,082 Income taxes payable (33,836) 314,779 Other 455,557 (227,014)Net cash provided by operating activities 2,039,412 1,511,966 Investing activities: Purchases of property and equipment (552,050) (587,685)Proceeds from sale of property and equipment 5,142 2,695 Other, including acquisitions, net of cash acquired (2,767) (10,008)Net cash used in investing activities (549,675) (594,998) Financing activities: Net proceeds of commercial paper 651,888 298,918 Proceeds from the issuance of long-term debt 847,365 — Principal payments on long-term debt (500,000) — Payment of debt issuance costs (6,655) (3,815)Payment of excise tax on share repurchases (18,718) (17,012)Repurchases of common stock (2,433,023) (1,176,640)Net proceeds from issuance of common stock 37,763 48,167 Other (270) (433)Net cash used in financing activities (1,421,650) (850,815) Effect of exchange rate changes on cash 301 2,215 Net increase in cash and cash equivalents 68,388 68,368 Cash and cash equivalents at beginning of the period 193,793 130,245 Cash and cash equivalents at end of the period $262,181 $198,613 Supplemental disclosures of cash flow information: Income taxes paid $100,317 $393,872 Interest paid, net of capitalized interest 119,269 110,374 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited) For the Twelve Months Ended June 30,Adjusted Debt to EBITDAR: 2026 2025(In thousands, except adjusted debt to EBITDAR ratio) GAAP debt $7,014,543 $5,823,744Add:Letters of credit 197,809 162,289 Unamortized discount and debt issuance costs 30,457 26,256 Six-times rent expense 3,030,750 2,834,550Adjusted debt $10,273,559 $8,846,839 GAAP net income $2,650,374 $2,423,674Add:Interest expense 252,779 225,470 Provision for income taxes 748,155 655,250 Depreciation and amortization 537,714 486,166 Share-based compensation expense 33,815 33,514 Rent expense (i) 505,125 472,425EBITDAR $4,727,962 $4,296,499 Adjusted debt to EBITDAR 2.17 2.06 (i) The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended June 30, 2026 and 2025 (in thousands): For the Twelve Months Ended June 30, 2026 2025 Total lease cost, per ASC 842 $606,667 $570,733 Less:Variable non-contract operating lease components, related to property taxes and insurance 101,542 98,308 Rent expense $505,125 $472,425 June 30, 2026 2025Selected Balance Sheet Ratios: Inventory turnover(1) 1.6 1.6Average inventory per store (in thousands) (2) $892 $833Accounts payable to inventory (3) 123.7%
127.0%
For the Three Months Ended For the Six Months Ended June 30, June 30, 2026 2025 2026 2025Reconciliation of Free Cash Flow (in thousands): Net cash provided by operating activities $1,006,499 $756,846 $2,039,412 $1,511,966Less:Capital expenditures 307,603 300,734 552,050 587,685 Excess tax benefit from share-based compensation payments 6,194 7,348 9,546 20,273Free cash flow $692,702 $448,764 $1,477,816 $904,008 For the Three Months Ended For the Six Months Ended June 30, June 30, 2026 2025 2026 2025Revenue Disaggregation (in thousands): Sales to do-it-yourself customers$2,336,858 $2,228,566 $4,526,990 $4,280,425Sales to professional service provider customers 2,469,582 2,195,840 4,760,366 4,194,433Other sales and sales adjustments 85,573 100,652 165,196 187,124Total sales $4,892,013 $4,525,058 $9,452,552 $8,661,982 For the Three Months Ended For the Six Months Ended For the Twelve Months Ended June 30, June 30, June 30, 2026 2025 2026 2025 2026 2025 Store Count: Beginning domestic store count 6,495 6,298 6,447 6,265 6,360 6,152 New stores opened 46 62 94 95 181 208 Stores closed — — — — — — Ending domestic store count 6,541 6,360 6,541 6,360 6,541 6,360 Beginning Mexico store count 121 93 112 87 98 69 New stores opened 5 5 14 11 28 29 Stores closed — — — — — — Ending Mexico store count 126 98 126 98 126 98 Beginning Canada store count 28 25 26 26 25 23 New stores opened — — 2 — 3 3 Stores closed — — — (1) — (1)Ending Canada store count 28 25 28 25 28 25 Total ending store count 6,695 6,483 6,695 6,483 6,695 6,483 For the Three Months Ended For the Twelve Months Ended June 30, June 30, 2026 2025 2026 2025Store and Team Member Information: Total employment 95,822 92,810 Square footage (in thousands)(4) 52,697 50,238 Sales per weighted-average square foot(4)(5) $91.10 $88.76 $351.82 $342.83Sales per weighted-average store (in thousands)(4)(6) $733 $698 $2,811 $2,672 (1) Calculated as cost of goods sold for the last 12 months divided by average inventory.(2) Calculated as inventory divided by store count at the end of the reported period.(3) Calculated as accounts payable divided by inventory.(4) Represents O’Reilly’s U.S. and Puerto Rico operations only.(5) Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.(6) Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.
, /PRNewswire/ -- The Board of Directors of Quaker Houghton (NYSE: KWR) today declared a $0.53 per share quarterly cash dividend, an increase of 4.3% over the prior dividend. The quarterly dividend is payable on October 30, 2026, to shareholders of record at the close of business on October 16, 2026.
Joseph A. Berquist, Chief Executive Officer and President commented, "Today's dividend increase announcement reflects our confidence in the durability of our business, the strength of our cash flow generation, and our ability to create long-term shareholder value. We remain focused on executing our strategy while maintaining a balanced approach to capital allocation that supports investing in growth, maintaining financial flexibility, and returning cash to shareholders. This dividend increase marks our 17th consecutive year and 50th increase since going public in 1972."
About Quaker Houghton
Quaker Houghton is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, our customers include thousands of the world's most advanced and specialized steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. Our high-performing, innovative and sustainable solutions are backed by best-in-class technology, deep process knowledge and customized services. With approximately 4,700 employees, including chemists, engineers and industry experts, we partner with our customers to improve their operations so they can run even more efficiently, even more effectively, whatever comes next. Quaker Houghton is headquartered in Conshohocken, Pennsylvania, located near Philadelphia in the United States. Visit quakerhoughton.com to learn more.
NEWPORT NEWS, Va., July 29, 2026 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that the U.S. nuclear submarine shipbuilding team, which includes the company’s Newport News Shipbuilding (NNS) division, has been awarded contracts for construction of Block VI Virginia-class and Build II Columbia-class submarines.
The combined total of approximately $76.6 billion in contract modifications from the U.S. Navy to HII’s Newport News Shipbuilding and General Dynamics Electric Boat (GDEB) is to support the construction of five additional Columbia-class, nine additional Virginia-class submarines, and other funding for shipyard infrastructure.
In the Virginia-class program, NNS will serve as the delivery yard for six of the planned submarines. In the Columbia-class program, NNS is a major shipbuilding partner, constructing and delivering six module sections per submarine.
“We are committed to building the nuclear-powered submarines that protect our nation,” NNS President Kari Wilkinson said. “These contracts provide the American shipbuilding industrial base the opportunity to demonstrate that commitment in a meaningful way and we are honored to serve our customer and our country.”
NNS and GDEB have built and delivered 26 Virginia-class submarines to date.
A photo accompanying this release is available at: http://hii.com/news/hii-is-awarded-contracts-for-construction-of-block-vi-virginia-class-and-build-ii-columbia-class-submarines/.
About HII
HII is America’s largest shipbuilder, delivering the world’s most powerful ships and all-domain mission technologies, including unmanned systems, to U.S. and allied defense customers. HII is the largest producer of unmanned underwater vehicles for the U.S. Navy and the world.
With a more than 140-year history of advancing U.S. national security, HII builds and integrates defense capabilities extending from the core fleet to C6ISR, AI/ML, EW and synthetic training. Headquartered in Virginia, HII’s workforce is 45,000 strong. For more information, visit:
HII on the web: https://www.HII.com/HII on Facebook: https://www.facebook.com/TeamHIIHII on X: https://www.twitter.com/WeAreHIIHII on Instagram: https://www.instagram.com/WeAreHIIHII on LinkedIn: https://www.linkedin.com/company/wearehii
Contact:
Regency Centers ve 2. čtvrtletí zvýšila zisk na akcii na 0,61 USD a Nareit FFO na 1,21 USD. Zároveň zvedla celoroční výhled FFO i Core Operating Earnings.
JACKSONVILLE, Fla., July 29, 2026 (GLOBE NEWSWIRE) -- Regency Centers Corporation (“Regency Centers,” “Regency” or the “Company”) (Nasdaq: REG) today reported financial and operating results for the period ended June 30, 2026, and provided updated 2026 earnings guidance. For the three months ended June 30, 2026 and 2025, Net Income Attributable to Common Shareholders was $0.61 and $0.56, respectively, per diluted share.
Second Quarter 2026 Highlights
Reported Nareit Funds From Operations ("FFO") of $1.21 per diluted share and Core Operating Earnings of $1.16 per diluted shareIncreased quarterly Same Property Net Operating Income ("NOI") year-over-year by 3.8%Raised full year 2026 Nareit FFO guidance to a range of $4.84 to $4.88 per diluted share and 2026 Core Operating Earnings guidance to a range of $4.62 to $4.66 per diluted shareThe midpoint of 2026 Core Operating Earnings guidance now represents year-over-year growth exceeding 5%Raised full year 2026 guidance for Same Property NOI growth to a range of 3.7% to 4.1% year-over-yearSame Property percent leased ended the quarter at 96.9%, up 40 basis points year-over-year, and Same Property percent commenced ended the quarter at 94.5%, up 50 basis points year-over-yearExecuted 2.1 million square feet of comparable new and renewal leases during the quarter at blended rent spreads of 10.4% on a cash basis and 19.5% on a straight-lined basisStarted $68 million of ground-up development and redevelopment projectsAs of June 30, 2026, Regency's in-process development and redevelopment projects had estimated net project costs of $680 million at a blended estimated yield of approximately 9%Acquired one shopping center and two outparcels for a total of approximately $48 million, or $19 million at Regency's sharePro-rata net debt and preferred stock to TTM operating EBITDAre at June 30, 2026 was 5.0xIssued the Company's annual Corporate Responsibility report, highlighting achievements and progress within our corporate responsibility programSubsequent to quarter end, acquired two shopping centers for $101 million, or $42 million at Regency's share
“Our team delivered another excellent quarter, highlighted by strong earnings and NOI growth, robust tenant demand, and continued momentum across our investments platform,” said Lisa Palmer, President and Chief Executive Officer. “These results reflect the strength of our strategy, anchored by our high-quality portfolio, leading national development program, fortress balance sheet and exceptional team. Together, these position us to drive attractive, sustainable growth and long-term value for our shareholders.”
Financial Results
Net Income Attributable to Common Shareholders
For the three months ended June 30, 2026, Net Income Attributable to Common Shareholders was $112.4 million, or $0.61 per diluted share, compared to Net Income Attributable to Common Shareholders of $102.6 million, or $0.56 per diluted share, for the same period in 2025.
Nareit FFO
For the three months ended June 30, 2026, Nareit FFO was $226.3 million, or $1.21 per diluted share, compared to $212.1 million, or $1.16 per diluted share, for the same period in 2025.
Core Operating Earnings
For the three months ended June 30, 2026, Core Operating Earnings was $217.7 million, or $1.16 per diluted share, compared to $202.2 million, or $1.10 per diluted share, for the same period in 2025.
Portfolio Performance
NOI
Second quarter 2026 Same Property NOI increased by 3.8% compared to the same period in 2025. Same Property base rent growth contributed 3.7% to Same Property NOI growth in the second quarter of 2026. Second quarter 2026 NOI increased by 6.8% compared to the same period in 2025.
Occupancy
As of June 30, 2026, Regency’s Same Property portfolio was 96.9% leased, an increase of 30 basis points sequentially and an increase of 40 basis points compared to June 30, 2025. Same Property anchor percent leased, which includes spaces greater than or equal to 10,000 square feet, was 98.4%, an increase of 20 basis points sequentially.Same Property shop percent leased, which includes spaces less than 10,000 square feet, was 94.4%, an increase of 30 basis points sequentially. As of June 30, 2026, Regency’s Same Property portfolio was 94.5% commenced, an increase of 20 basis points sequentially and an increase of 50 basis points compared to June 30, 2025. Leasing Activity
During the three months ended June 30, 2026, Regency executed approximately 2.1 million square feet of comparable new and renewal leases at a blended cash rent spread of +10.4% and a blended straight-lined rent spread of +19.5%.During the twelve months ended June 30, 2026, Regency executed approximately 7.1 million square feet of comparable new and renewal leases at a blended cash rent spread of +11.8% and a blended straight-lined rent spread of +22.7%. Corporate Responsibility
On May 28, 2026, Regency issued its annual Corporate Responsibility Report, demonstrating the Company’s continued leadership in and commitment to corporate responsibility as a key component of our business strategy and performance. The report can be found in the Corporate Responsibility section of the Company's website.
Capital Allocation and Balance Sheet
Developments and Redevelopments
For the three months ended June 30, 2026, the Company started ground-up development and redevelopment projects with estimated net project costs of approximately $68 million, at the Company's share. Second quarter starts included The Berkeley at Durbin Park, a $55 million Whole Foods and TJ Maxx-anchored ground-up development project in Jacksonville, FL. For the three months ended June 30, 2026, the Company completed approximately $20 million of redevelopment projects.As of June 30, 2026, Regency’s in-process development and redevelopment projects had estimated net project costs of $680 million at the Company’s share, 49% of which had been incurred. Property Transactions
On June 11, 2026, the Company acquired Shops at Highland Walk in Denver, CO, a 95,000 square foot shopping center anchored by King Soopers. The property was acquired through the Company's State of Oregon joint venture for approximately $37 million, or $7 million at Regency's share. Subsequent to quarter end, on July 8, 2026, the Company acquired Franklin Crossing in Franklin Lakes, NJ, an 88,000 square foot shopping center anchored by Stop & Shop, for $27 million.Subsequent to quarter end, on July 14, 2026, the Company acquired Cornerstone at Westford in Westford, MA, a 236,000 square foot shopping center anchored by Market Basket. The property was acquired through the Company's State of Oregon joint venture for $74 million, or $15 million at Regency's share.
Balance Sheet
As of June 30, 2026, Regency had approximately $1.5 billion of available capacity under its revolving credit facility.As of June 30, 2026, Regency’s pro-rata net debt and preferred stock to TTM operating EBITDAre was 5.0x.
2026 Guidance
Regency Centers is providing updated 2026 Guidance, as summarized in the table below. Please refer to the Company’s second quarter 2026 "Earnings Presentation" and "Quarterly Supplemental Disclosure" for additional detail. All materials are posted on the Company’s website at investors.regencycenters.com.
Full Year 2026 Guidance (in thousands, except per share data)YTD ActualCurrent
2026 GuidancePrior
2026 Guidance Net Income Attributable to Common Shareholders per diluted share$1.30 $2.48 - $2.52$2.45 - $2.49 Nareit Funds From Operations (“Nareit FFO”) per diluted share$2.41 $4.84 - $4.88$4.83 - $4.87 Core Operating Earnings per diluted share(1)$2.32 $4.62 - $4.66$4.59 - $4.63 Same property NOI growth 4.1% +3.7% to +4.1%+3.25% to +3.75% Non-cash revenues(2)$20,173 $46,000-$49,000+/- $51,000 G&A expense, net(3)$50,609 $98,000-$100,000$96,000-$100,000 Interest expense, net and Preferred stock dividends(4)$123,594 $250,000-$252,000$250,000-$252,000 Management, transaction and other fees$13,569 +/-$27,000+/-$27,000 Development and Redevelopment spend$169,187 +/-$350,000+/-$350,000 Acquisitions$25,020 +/-$70,000+/-$25,000Cap rate (weighted average) 5.9% +/- 6.3%+/- 5.9% Dispositions$2,925 +/-$5,000$0
Cap rate (weighted average) 7.3% +/- 6.2%0.0%
Note: Figures above represent 100% of Regency's consolidated entities and its pro-rata share of unconsolidated real estate partnerships, with the exception of items that are net of noncontrolling interests including per share data, "Development and Redevelopment spend," "Acquisitions," and "Dispositions".
(1) Core Operating Earnings excludes from Nareit FFO: (i) transaction related income or expenses; (ii) gains or losses from the early extinguishment of debt; (iii) certain non-cash components of earnings derived from straight-line rents, above and below market rent amortization, and debt and derivative mark-to-market amortization; and (iv) other amounts as they occur.
(2) Includes above and below market rent amortization and straight-line rents, and excludes debt and derivative mark to market amortization.
(3) Represents 'General & administrative, net' before gains or losses on deferred compensation plan, as reported on supplemental pages 6 and 7 and calculated on a pro -rata basis.
(4) Includes debt and derivative mark to market amortization, and is net of interest income.
Conference Call Information
To discuss Regency’s second quarter results and provide further business updates, management will host a conference call on Thursday, July 30 at 11:00 a.m. ET. Dial-in and webcast information is below.
Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit RegencyCenters.com.
Reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO, Core Operating Earnings, and Adjusted Funds from Operations – Actual (in thousands, except per share amounts)
For the Periods Ended June 30, 2026 and 2025 Three Months Ended Year to Date 2026 2025 2026 2025 Reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO: Net Income Attributable to Common Shareholders $112,351 102,608 $237,487 208,782 Adjustments to reconcile to Nareit Funds From Operations (1): Depreciation and amortization (excluding FF&E) 115,156 107,329 228,718 211,363 Gain on sale of real estate, net of tax (3,570) 346 (20,617) 245 Provision for impairment of real estate - 1,262 - 1,262 Exchangeable operating partnership units 2,360 586 4,977 1,228 Nareit FFO $226,297 212,131 $450,565 422,880 Nareit FFO per share (diluted) $1.21 1.16 $2.41 2.31 Weighted average shares (diluted) 187,190 183,023 187,147 182,966 Reconciliation of Nareit FFO to Core Operating Earnings: Nareit FFO $226,297 212,131 $450,565 422,880 Adjustments to reconcile to Core Operating Earnings (1): Certain Non-Cash Items Straight-line rent, net (2) (5,390) (6,040) (9,828) (12,177)Above/below market rent amortization, net (5,048) (5,376) (10,297) (11,837)Debt and derivative mark-to-market amortization 1,871 1,510 3,813 2,802 Core Operating Earnings $217,730 202,225 434,253 401,668 Core Operating Earnings per share (diluted) $1.16 1.10 $2.32 2.20 Weighted average shares (diluted) 187,190 183,023 187,147 182,966 Reconciliation of Core Operating Earnings to Adjusted Funds from Operations: Core Operating Earnings $217,730 202,225 $434,253 401,668 Adjustments to reconcile to Adjusted Funds from Operations (1): Operating capital expenditures (40,823) (32,524) (67,910) (56,277)Debt cost and derivative adjustments 2,372 2,297 4,602 4,426 Stock-based compensation 6,061 5,455 11,929 10,898 Adjusted Funds from Operations $185,340 177,453 $382,874 360,715 (1) Includes Regency's consolidated entities and its share of unconsolidated real estate partnerships, net of share attributable to noncontrolling interests.
(2) Includes the impact of uncollectible straight-line rent of $912 and $744 for the three months ended June 30, 2026 and 2025, respectively, and $3,092 and $1,120 for the six months ended June 30, 2026 and 2025, respectively.
Reconciliation of Net Income Attributable to Common Shareholders to Pro-Rata Same Property NOI - Actual (in thousands)
For the Periods Ended June 30, 2026 and 2025Three Months Ended Year to Date 2026 2025 Change 2026 2025 Change Net income attributable to common shareholders$112,351 102,608 $237,487 208,782 Less: Management, transaction, and other fees (7,192) (7,244) (14,125) (14,056) Other (1) (12,181) (12,850) (23,577) (26,539) Plus: Depreciation and amortization 108,803 99,535 215,225 196,309 General and administrative 27,567 25,480 53,173 47,080 Other operating expense 2,037 1,944 3,038 3,632 Other expense, net 50,593 51,040 94,889 99,713 Equity in income of investments in real estate partnerships excluded from NOI (2) 10,740 14,679 15,340 28,130 Net income attributable to noncontrolling interests 3,975 2,328 8,224 4,594 Preferred stock dividends 3,413 3,413 6,826 6,826 NOI 300,106 280,933 6.8% 596,500 554,471 7.6% Less non-same property NOI (3) (11,786) (3,287) (22,612) (3,190) Same Property NOI$288,320 277,646 3.8% $573,888 551,281 4.1% Same Property NOI without Redevelopments$246,356 239,487 2.9% $488,766 475,372 2.8% Expense Recovery Ratio 89.7% 88.1% 87.8% 86.4% NOI Margin 69.6% 70.2% 69.0% 69.7% (1) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interests.
(2) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, such as, but not limited to, straight-line rental income, above and below market rent amortization, depreciation and amortization, interest expense, and real estate gains and impairments.
(3) Includes revenues and expenses attributable to Non-Same Property, Property in Development, termination fees, corporate activities, and noncontrolling interests.
Same Property NOI is a key non-GAAP pro-rata measure used by management in evaluating the operating performance of Regency’s properties. The Company provides a reconciliation of Net Income Attributable to Common Shareholders to Same Property NOI.
Reported results are preliminary and not final until the filing of the Company’s Form 10-Q with the SEC and, therefore, remain subject to adjustment.
The Company has published additional financial information in its second quarter 2026 supplemental package that may help investors estimate earnings. A copy of the Company’s second quarter 2026 supplemental package will be available on the Company's website at investors.regencycenters.com or by written request to: Investor Relations, Regency Centers Corporation, One Independent Drive, Suite 114, Jacksonville, Florida, 32202. The supplemental package contains more detailed financial and property results including financial statements, an outstanding debt summary, acquisition and development activity, investments in partnerships, information pertaining to securities issued other than common stock, property details, a significant tenant rent report and a lease expiration table in addition to earnings and valuation guidance assumptions. The information provided in the supplemental package is unaudited and includes non-GAAP measures, and there can be no assurance that the information will not vary from the final information in the Company’s Form 10-Q for the period ended June 30, 2026. Regency may, but assumes no obligation to, update information in the supplemental package from time to time.
Non-GAAP Financial Measures
We believe these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes.
We do not consider non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP, rather they supplement GAAP measures by providing additional information we believe to be useful to our shareholders. The principal limitation of these non-GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of the non-GAAP financial measures we use to their most directly comparable GAAP measures are provided. Non-GAAP financial measures should not be relied upon in evaluating the financial condition, results of operations or future prospects of the Company.
Nareit FFO is a commonly used measure of REIT performance, which the National Association of Real Estate Investment Trusts (“Nareit”) defines as net income, computed in accordance with GAAP, excluding gains on sales and impairments of real estate, net of tax, plus depreciation and amortization related to real estate, and after adjustments for unconsolidated real estate partnerships and joint ventures. Regency computes Nareit FFO for all periods presented in accordance with Nareit's definition. Since Nareit FFO excludes depreciation and amortization and gains on sales and impairments of real estate, it provides a performance measure that, when compared year over year, reflects the impact on operations from trends in percent leased, rental rates, operating costs, acquisition and development activities, and financing costs. This provides a perspective of the Company’s financial performance not immediately apparent from net income determined in accordance with GAAP. Thus, Nareit FFO is a supplemental non-GAAP financial measure of the Company's operating performance, which does not represent cash generated from operating activities in accordance with GAAP; and, therefore, should not be considered a substitute measure of cash flows from operations. The Company provides a reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO.
Core Operating Earnings is an additional non-GAAP performance measure that adjusts Nareit Funds from Operations (“Nareit FFO”) to exclude certain non-cash and other items that impact the comparability of the Company's period-over-period performance. Core Operating Earnings excludes from Nareit FFO: (i) certain income or expenses related to non-comparable events and transactions; (ii) gains or losses from the early extinguishment of debt; (iii) certain non-cash items derived from straight-line rents, above and below market rent amortization, and debt and derivative mark-to-market amortization; and (iv) other non-cash or non-comparable amounts as they occur.
Adjusted Funds From Operations (“AFFO”) is an additional performance measure used by Regency that reflects cash available to fund the Company’s business needs and distribution to shareholders. AFFO is calculated by adjusting Core Operating Earnings ("COE") for (i) capital expenditures necessary to maintain and lease the Company’s portfolio of properties, (ii) debt cost and derivative adjustments and (iii) stock-based compensation. The Company provides a reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO, to Core Operating Earnings, and to Adjusted Funds from Operations.
Net Operating Income (NOI) is the sum of base rent, percentage rent, termination fee income, tenant recoveries, other lease income, and other property income, less operating and maintenance expenses, real estate taxes, ground rent, termination expense, and uncollectible lease income. NOI excludes straight-line rental income and expense, above and below market rent and ground rent amortization, tenant lease inducement amortization, and other fees. Management believes that NOI is a useful measure for investors because it provides insight into the core operations and performance of our properties, independent of the capital structure, financing activities, and non-operating factors. By focusing on property-level performance, NOI allows investors to compare the performance of our real estate assets across periods and with those of other REIT peers in the industry, facilitating a clearer understanding of trends in occupancy, rental income, and operating expense management. In addition to its relevance for investors, management uses NOI as a key performance metric in making operational and strategic decisions. NOI is used to evaluate income generated from shopping centers (i.e., return on assets) and to guide decisions on capital investments. These decisions may include acquisitions, redevelopments, and investments in capital improvements.
Pro-rata information: includes 100% of the Company’s consolidated properties plus its economic share (based on the ownership interest) in the unconsolidated real estate investment partnerships. The Company provides Pro-rata financial information because Regency believes it assists investors and analysts in estimating the economic interest in the consolidated and unconsolidated real estate investment partnerships, when read in conjunction with the Company’s reported results under GAAP. The Company believes presenting its Pro-rata share of assets, liabilities, operating results, and other metrics, along with certain other non-GAAP financial measures, makes comparisons of its operating results to those of other REITs more meaningful. The Pro-rata information provided is not, nor is it intended to be, presented in accordance with GAAP. The Pro-rata supplemental details of assets and liabilities and supplemental details of operations reflect the Company’s proportionate economic ownership of the assets, liabilities, and operating results of the properties in our portfolio.
The Pro-rata information is prepared on a basis consistent with the comparable consolidated amounts and is intended to more accurately reflect the Company’s proportionate economic interest in the assets, liabilities, and operating results of properties in its portfolio. The Company does not control the unconsolidated real estate partnerships, and the Pro-rata presentations of the assets and liabilities, and revenues and expenses do not represent our legal claim to such items. The partners are entitled to profit or loss allocations and distributions of cash flows according to the operating agreements, which generally provide for such allocations according to their invested capital. The Company’s share of invested capital establishes the ownership interests Regency uses to prepare its Pro-rata share.
The presentation of Pro-rata information has limitations which include, but are not limited to, the following:
The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; andOther companies in our industry may calculate their Pro-rata interest differently, limiting the comparability of Pro-rata information. Because of these limitations, the Pro-rata financial information should not be considered independently or as a substitute for the financial statements as reported under GAAP. The Company compensates for these limitations by relying primarily on our GAAP financial statements, using the Pro-rata information as a supplement.
Same Property NOI is a key non-GAAP financial measure commonly used by real estate investment trusts (REITs) to evaluate operating performance. It is calculated on a Pro-rata ownership basis for properties owned and operated for the entirety of both the current and prior comparable reporting periods. Same Property NOI includes revenues and operating expenses associated with these properties but excludes items that are not indicative of ongoing operating performance. These include, without limitation, termination fees, as well as corporate-level expenses, financing costs, and other non-operating items. Management believes this measure provides investors with a useful and consistent comparison of the Company’s operating performance and trends. Management uses Same Property NOI as a supplemental measure to assess property-level performance and to compare the performance of its stabilized property portfolio across reporting periods. This measure allows investors to evaluate trends in revenue and expense growth for properties that have been consistently operated during the periods.
Forward-Looking Statements
Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Regency’s future events, developments, or financial or operational performance or results such as our current 2026 guidance, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “could,” “should,” “would,” “expect,” “estimate,” “believe,” “intend,” “forecast,” “project,” “plan,” “anticipate,” “guidance,” and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained, and it is possible actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Our operations are subject to a number of risks and uncertainties including, but not limited to, those risk factors described in our Securities and Exchange Commission (“SEC”) filings, our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) under Item 1A, as supplemented by the discussion in Item 1A of Part II of our subsequent Quarterly Reports on Form 10-Q. When considering an investment in our securities, you should carefully read and consider these risks, together with all other information in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our other filings and submissions to the SEC. If any of the events described in the risk factors actually occur, our business, financial condition or operating results, as well as the market price of our securities, could be materially adversely affected. Forward-looking statements are only as of the date they are made, and Regency undertakes no duty to update its forward-looking statements, whether as a result of new information, future events or developments or otherwise, except as to the extent required by law. These risks and events include, without limitation:
Risk Factors Related to the Current Economic and Geopolitical Environments
Macroeconomic, political, and geopolitical conditions and governmental policies may adversely impact consumer confidence and spending and the businesses of our tenants and could, in turn, adversely impact our business. Changes in interest rates may adversely impact our cost to borrow, real estate valuation, stock price, and ability to raise capital through issuance of debt and equity. Unfavorable developments that may affect the banking and financial services industry could adversely affect our business, liquidity and financial condition, and overall results of operations.
Risk Factors Related to Pandemics or other Public Health Crises
Pandemics or other public health crises may adversely affect our tenants' financial condition, the profitability of our properties, and our access to the capital markets and could have a material adverse effect on our business, results of operations, cash flows and financial condition.
Risk Factors Related to Operating Retail-Based Shopping Centers
Shifts in retail trends, sales, and delivery methods between brick and mortar stores, e-commerce, home delivery, and curbside pick-up, as well as autonomous delivery systems, may adversely impact our revenues, results of operations, and cash flows. Changing economic and retail market conditions in geographic areas where our properties are concentrated may reduce our revenues and cash flow. Our success depends on the continued presence and success of our "anchor" tenants. A percentage of our revenues are derived from "local" tenants and our net income may be adversely impacted if these tenants are not successful, or if the demand for the types or mix of tenants significantly change. We may be unable to collect balances due from tenants in bankruptcy. Many of our costs and expenses associated with operating our properties may remain constant or increase, even if our lease income decreases. Compliance with the Americans with Disabilities Act and other building, fire, and safety regulations may have an adverse effect on us.
Risk Factors Related to Real Estate Investments
Our real estate assets may decline in value and be subject to impairment losses which may reduce our net income. We face risks associated with development, redevelopment, and expansion of properties. We face risks associated with the development of mixed-use commercial properties. We face risks associated with the acquisition of properties. We may be unable to sell properties when desired because of market conditions. Changes in tax laws could impact our acquisition or disposition of real estate.
Risk Factors Related to the Environment Affecting Our Properties
Climate change may adversely impact our properties, some of which may be more vulnerable due to their geographic location, and may lead to additional compliance obligations and costs. Costs of environmental remediation may adversely impact our financial performance and reduce our cash flow.
Risk Factors Related to Corporate Matters
An increased and differing focus on metrics and reporting related to environmental, social and governance ("ESG") factors by investors, lenders and other stakeholders may impose additional costs and expose us to new risks. An uninsured loss or a loss that exceeds the insurance coverage on our properties may subject us to loss of capital and revenue on those properties. Failure to attract and retain key personnel may adversely affect our business and operations.
Risk Factors Related to Our Partnerships and Joint Ventures
We do not have voting control over all of the properties owned in our real estate partnerships and joint ventures, so we are unable to ensure that our objectives will be pursued. The termination of our partnerships may adversely affect our cash flow, operating results, and our ability to make distributions to stock and unit holders.
Risk Factors Related to Funding Strategies and Capital Structure
Our ability to sell properties and fund acquisitions and developments may be adversely impacted by higher market capitalization rates and lower NOI at our properties which may adversely affect results of operations and financial condition. We depend on external sources of capital, which may not be available in the future on favorable terms or at all. Our debt financing may adversely affect our business and financial condition. Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition. Increases in interest rates would cause our borrowing costs to rise and negatively impact our results of operations. Hedging activity may expose us to risks, including the risks that a counterparty will not perform and that the hedge will not yield the economic benefits we anticipate, which may adversely affect us.
Risk Factors Related to Information Management and Technology
The unauthorized access, use, theft or destruction of tenant or employee personal, financial or other data, or of Regency's proprietary or confidential information stored in our information systems or by third parties on our behalf, could impact operations, and expose us to potential liabilities and material adverse financial impact. Any actual or perceived failure to comply with new or existing laws, regulations and other requirements relating to the privacy, security and processing of personal information could adversely affect our business, results of operations, or financial condition. The use of technology based on artificial intelligence presents risks relating to confidentiality, creation of inaccurate and flawed outputs and emerging regulatory risk, any or all of which may adversely affect our business and results of operations.
Risk Factors Related to Taxes and the Parent Company’s Qualification as a REIT
If the Parent Company fails to qualify as a REIT for federal income tax purposes, it would be subject to federal income tax at regular corporate rates. Dividends paid by REITs generally do not qualify for reduced tax rates. Legislative or other actions affecting REITs may have a negative effect on us or our investors. Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities. Partnership tax audit rules could have a material adverse effect.
Risk Factors Related to the Company’s Stock
Restrictions on the ownership of the Parent Company’s capital stock to preserve its REIT status may delay or prevent a change in control. The issuance of the Parent Company's capital stock may delay or prevent a change in control. Ownership in the Parent Company may be diluted in the future. The Parent Company’s amended and restated bylaws provide that the courts located in the State of Florida will be the sole and exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees. There is no assurance that we will continue to pay dividends at current or historical rates.
NEENAH, WI, July 29, 2026 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal third quarter ended July 4, 2026, and guidance for our fiscal fourth quarter ending October 3, 2026.
Reports record fiscal third quarter 2026 revenue of $1.305 billion, GAAP operating margin of 4.7% and GAAP diluted EPS of $1.58.Reports fiscal third quarter 2026 non-GAAP operating margin of 6.3% and non-GAAP diluted EPS of $2.32, excluding $0.74 of stock-based compensation expense.Initiates fiscal fourth quarter 2026 revenue guidance of $1.330 billion to $1.380 billion with GAAP diluted EPS of $2.18 to $2.34, including $0.29 of stock-based compensation expense. Fiscal fourth quarter non-GAAP EPS guidance of $2.47 to $2.63 excludes stock-based compensation expense.
Three Months Ended July 4, 2026 July 4, 2026 Oct 3, 2026 Q3F26 Results Q3F26 Guidance Q4F26 GuidanceSummary GAAP Items Revenue (in billions)$1.305 $1.200 to $1.250 $1.330 to $1.380Operating margin 4.7% 4.1% to 4.5% 5.5% to 5.9%Diluted EPS$1.58 $1.25 to $1.41 $2.18 to $2.34 Summary Non-GAAP Items (1) Adjusted operating margin (2) 6.3% 5.9% to 6.3% 6.1% to 6.5%Adjusted EPS (3)$2.32 $2.02 to $2.18 $2.47 to $2.63Return on invested capital (ROIC) 14.9% Economic return 5.9% (1)Refer to Non-GAAP Supplemental Information tables for additional information regarding non-GAAP financial measures.(2)Excludes stock-based compensation expense of approximately 160 bps for Q3F26 results, 180 bps for Q3F26 guidance and 60 bps for Q4F26 guidance.(3)Excludes stock-based compensation expense, net of tax, of $0.74 for Q3F26 results, $0.77 for Q3F26 guidance and $0.29 for Q4F26 guidance. Fiscal Third Quarter 2026 Information
Won 31 manufacturing programs during the quarter representing $255 million in annualized revenue when fully ramped into production.Purchased $20.6 million of our shares at an average price of $258.75 per share under our 2026 Share Repurchase Program, leaving $21.4 million available under our existing $100.0 million authorization. Todd Kelsey, President and Chief Executive Officer, commented, “Plexus generated record quarterly revenue in the fiscal third quarter by capturing strengthening end market demand and successfully launching numerous new programs. Fiscal third quarter revenue of $1.305 billion exceeded guidance, increasing 12% sequentially and 28% year over year. In addition, non-GAAP operating margin of 6.3% met the high end of guidance, non-GAAP EPS of $2.32 exceeded guidance and we again delivered healthy working capital efficiency.”
Mr. Kelsey added, “Our go-to-market team continued to drive strong performance with quarterly manufacturing wins of $255 million in annualized revenue. This result included significant wins for our Aerospace/Defense market sector as well as a new partnership in our Industrial market sector manufacturing a battery energy storage system for data centers. Furthermore, we expanded our funnel of qualified manufacturing opportunities to $4.5 billion, a record level, supporting the potential to sustain robust long-term revenue growth.”
David Abuhl, Senior Vice President and Chief Financial Officer, commented, “Driven by continued progress on our working capital initiatives, our cash cycle of 62 days exceeded expectations. This outstanding result is the best quarterly cash cycle performance in over five years. In support of accelerating revenue growth, we had a slight usage of free cash flow in the quarter, which was better than our expectations. While we expect to maintain cash cycle days in the low-to-mid 60s for the fiscal fourth quarter, further working capital investments are required to support our substantial revenue growth projections. As such, we now expect a usage of free cash flow for fiscal 2026 with a return to meaningful free cash flow generation in early fiscal 2027.”
Mr. Abuhl continued, “Our favorable cash cycle days, prudent capital expenditures and strong operating performance produced a return on invested capital of 14.9% in the quarter, up 110 basis points versus the prior quarter and 590 basis points above our cost of capital. This result represented the highest return in nearly five years.”
Mr. Kelsey continued, “For our fiscal fourth quarter, we forecast continued revenue growth led by strength in our Healthcare/Life Sciences and Industrial market sectors, including our semiconductor capital equipment subsector. We are guiding revenue of $1.330 to $1.380 billion, up 4% sequentially and 28% year over year at the midpoint, non-GAAP operating margin of 6.1% to 6.5% and non-GAAP EPS of $2.47 to $2.63. For fiscal 2026, we now anticipate generating in excess of 20% revenue growth due to Plexus’ success in launching numerous new programs and our market share gains combined with improved end market demand. Additionally, we expect to deliver this considerable revenue growth with greater than 6% non-GAAP operating margin and healthy working capital efficiency.”
Mr. Kelsey concluded, “Our differentiated value proposition, focused on providing unmatched quality and delivery, is resulting in robust performance for fiscal 2026 and positions Plexus for sustained, long-term momentum. We currently see the potential to generate fiscal 2027 revenue growth in excess of our 9% to 12% goal led by our Aerospace/Defense and Industrial market sectors, including our semiconductor capital equipment subsector. In addition, we anticipate delivering operating margin expansion, while continuing to make important investments in talent and technology in support of future growth.”
Quarterly ComparisonThree Months Ended(in thousands, except EPS)July 4, 2026 Apr 4, 2026 Jun 28, 2025Revenue$1,304,778 $1,163,757 $1,018,308 Gross profit 131,379 119,176 103,288 Operating income 61,260 61,837 53,608 Net income 42,993 49,809 45,116 Diluted EPS$1.58 $1.82 $1.64 Gross margin 10.1% 10.2% 10.1%Operating margin 4.7% 5.3% 5.3% ROIC (1) 14.9% 13.8% 14.1%Economic return (1) 5.9% 4.8% 5.2% (1) Refer to Non-GAAP Supplemental Information tables for non-GAAP financial measures discussed and/or disclosed in this release, such as adjusted operating margin, adjusted net income, adjusted diluted EPS, ROIC and economic return. Business Segment and Market Sector Revenue
Plexus measures operational performance and allocates resources on a geographic segment basis. Plexus also reports revenue based on the market sector breakout set forth in the table below, which reflects Plexus’ market sector focused strategy. Top 10 customers comprised 55% of revenue during the third quarter of fiscal 2026. This is up 1 percentage point from the second quarter of fiscal 2026 and up 7 percentage points from the third quarter of fiscal 2025.
Business Segments ($ in millions)Three Months Ended July 4, 2026 Apr 4, 2026 Jun 28, 2025Americas$428 $397 $312 Asia-Pacific 774 652 594 Europe, Middle East and Africa 109 116 117 Elimination of inter-segment sales (6) (1) (5)Total Revenue$1,305 $1,164 $1,018 Market Sectors ($ in millions)Three Months Ended July 4, 2026 Apr 4, 2026 Jun 28, 2025Aerospace/Defense$233 18% $212 18% $183 18%Healthcare/Life Sciences 483 37% 473 41% 420 41%Industrial 589 45% 479 41% 415 41%Total Revenue$1,305 $1,164 $1,018 Non-GAAP Supplemental Information
Plexus provides non-GAAP supplemental information, such as ROIC, economic return and free cash flow, because such measures are used for internal management goals and decision-making, and because they provide management and investors with additional insight into financial performance. In addition, management uses these and other non-GAAP measures, such as adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted EPS, to provide a better understanding of core performance for purposes of period-to-period comparisons. Plexus believes that these measures are also useful to investors because they provide further insight by eliminating the effect of non-recurring items that are not reflective of continuing operations. For additional information on non-GAAP measures, please refer to the attached Non-GAAP Supplemental Information tables.
ROIC and Economic Return
ROIC for the third quarter of fiscal 2026 was 14.9%. Plexus defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a four-quarter period for the third fiscal quarter. Invested capital is defined as equity plus debt and operating lease obligations, less cash and cash equivalents. Plexus' weighted average cost of capital for fiscal 2026 is 9.0%. ROIC for the third quarter of fiscal 2026 less Plexus’ weighted average cost of capital resulted in an economic return of 5.9%.
Free Cash Flow
Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended July 4, 2026, cash flows provided by operations was $25.9 million and capital expenditures were $26.6 million, which resulted in a usage of free cash flow of $0.7 million.
Cash Cycle DaysThree Months Ended July 4, 2026 Apr 4, 2026 Jun 28, 2025Days in Accounts Receivable56 55 59 Days in Contract Assets13 12 13 Days in Inventory116 120 128 Days in Accounts Payable(76) (74) (72)Days in Advanced Payments(47) (49) (59)Annualized Cash Cycle (1)62 64 69 (1)Plexus calculates cash cycle as the sum of days in accounts receivable, days in contract assets and days in inventory, less days in accounts payable and days in advanced payments. Conference Call and Webcast Information
What: Plexus Fiscal 2026 Q3 Earnings Conference Call and WebcastWhen: Thursday, July 30, 2026 at 8:30 a.m. Eastern TimeWhere: Participants are encouraged to join the live webcast at the investor relations section of the Plexus website, plexus.com. Participants can also join utilizing the links below:Webcast link:
https://events.q4inc.com/attendee/435522461
Replay: The webcast will be archived on the Plexus website and will be available as on-demand for 12 months Investor and Media Contact
Shawn Harrison
+1.920.969.6325 [email protected]
About Plexus
At Plexus, we help create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments. From life-saving medical devices and mission-critical aerospace and defense products to industrial automation systems and semiconductor capital equipment, our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect. We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors, supported by a global team of over 20,000 members across our 27 facilities. For more information about Plexus, visit our website at www.plexus.com.
Safe Harbor and Fair Disclosure Statement
The statements contained in this press release that are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, plan, anticipate, goal, target and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include the effects of tariffs, trade disputes, trade agreements and other trade protection measures; the effects of shortages, delays and price fluctuations in obtaining components as a result of economic cycles, capacity constraints, natural disasters or otherwise; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the particular risks relative to new or recent customers, programs or services, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate engagement terms, and the lack of a track record of order volume and timing; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customers and deliver product on a timely basis; the risks of concentration of work for certain customers; the effects of start-up costs of new programs and facilities or the costs associated with winding down programs or the closure or consolidation of facilities; possible unexpected costs and operating disruption in transitioning programs, including transitions between Company facilities; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by the customer, resulting in an inventory write-off; the fact that customer orders may not lead to long-term relationships; our ability to manage successfully and execute a complex business model characterized by high product mix and demanding quality, regulatory, and other requirements; the outcome of litigation and regulatory investigations and proceedings, including the results of any challenges with regard to such outcomes; the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; risks related to information technology systems and data security; increasing regulatory and compliance requirements; any tax law changes and related foreign jurisdiction tax developments; current or potential future barriers to the repatriation of funds that are currently held outside of the United States as a result of actions taken by other countries or otherwise; the potential effects of jurisdictional results on our taxes, tax rates, and our ability to use deferred tax assets and net operating losses; the weakness of the economy regionally or globally; the effect of changes in the pricing and margins of our services; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; the effects of changes in economic conditions, political conditions and regulatory matters in the United States and in the other countries in which we do business; the potential effect of other events outside our control, such as the conflict between Russia and Ukraine, conflict in the Middle East (including in Iran), escalating tensions between China and Taiwan or China and the United States, tensions in or amongst countries in which we operate or transact business; changes in energy prices, terrorism, global health epidemics and weather events; the impact of increased competition; an inability to successfully manage human capital, including succession planning for and transition of senior executives; changes in financial accounting standards; and other risks detailed herein and in our other Securities and Exchange Commission filings, particularly in Risk Factors contained in our fiscal 2025 Form 10-K.
PLEXUS CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)(unaudited) Three Months Ended Nine Months Ended Jul 4, Jun 28, Jul 4, Jun 28, 2026 2025 2026 2025Net sales$1,304,778 $1,018,308 $3,538,387 $2,974,600 Cost of sales 1,173,399 915,020 3,181,694 2,672,869 Gross profit 131,379 103,288 356,693 301,731 Operating expenses: Selling and administrative expenses 70,119 49,680 179,132 147,789 Restructuring and other charges, net — — — 4,683 Operating income 61,260 53,608 177,561 149,259 Other income (expense): Interest expense (4,089) (2,501) (10,399) (9,192)Interest income 1,463 934 3,259 3,039 Miscellaneous, net (2,185) (2,205) (5,063) (4,753)Income before income taxes 56,449 49,836 165,358 138,353 Income tax expense 13,456 4,720 31,374 16,897 Net income$42,993 $45,116 $133,984 $121,456 Earnings per share: Basic$1.61 $1.67 $5.01 $4.48 Diluted$1.58 $1.64 $4.90 $4.39 Weighted average shares outstanding: Basic 26,712 27,059 26,745 27,084 Diluted 27,294 27,532 27,347 27,670 PLEXUS CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(unaudited) Jul 4, Sep 27, 2026 2025ASSETS Current assets: Cash and cash equivalents$314,053 $306,464 Restricted cash 514 294 Accounts receivable 795,159 656,573 Contract assets 193,942 150,654 Inventories 1,488,391 1,229,839 Prepaid expenses and other 103,285 54,969 Total current assets 2,895,344 2,398,793 Property, plant and equipment, net 546,159 546,052 Operating lease right-of-use assets 66,560 72,863 Deferred income taxes 95,173 91,349 Other assets 30,361 28,053 Total non-current assets 738,253 738,317 Total assets$3,633,597 $3,137,110 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt and finance lease obligations$183,814 $45,793 Accounts payable 978,899 726,597 Advanced payments from customers 602,933 575,850 Accrued salaries and wages 111,557 109,076 Other accrued liabilities 68,563 61,367 Total current liabilities 1,945,766 1,518,683 Long-term debt and finance lease obligations, net of current portion 91,644 91,987 Long-term operating lease liabilities 23,888 29,422 Deferred income taxes 7,322 6,000 Other liabilities 36,225 36,430 Total non-current liabilities 159,079 163,839 Total liabilities 2,104,845 1,682,522 Shareholders’ equity: Common stock 549 547 Additional paid-in-capital 710,372 695,653 Common stock held in treasury (1,319,506) (1,255,451)Retained earnings 2,130,012 1,996,028 Accumulated other comprehensive income 7,325 17,811 Total shareholders’ equity 1,528,752 1,454,588 Total liabilities and shareholders’ equity$3,633,597 $3,137,110 PLEXUS CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Nine Months Ended Jul 4, Jun 28, 2026 2025Cash flows from operating activities Net income$133,984 $121,456 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 57,357 58,509 Share-based compensation expense and related charges 36,820 22,466 Other, net (211) (8,381)Changes in operating assets and liabilities, excluding impacts of currency: Accounts receivable (140,201) (37,265)Contract assets (43,250) (24,090)Inventories (259,911) 37,543 Other current and non-current assets (47,874) (1,262)Accrued income taxes payable (3,930) (13,361)Accounts payable 271,371 88,902 Advanced payments from customers 27,444 (118,276)Other current and non-current liabilities 7,389 (9,028)Cash flows provided by operating activities 38,988 117,213 Cash flows from investing activities Payments for property, plant and equipment (74,312) (60,441)Other, net (258) (412)Cash flows used in investing activities (74,570) (60,853)Cash flows from financing activities Borrowings under debt agreements 605,500 293,500 Payments on debt and finance lease obligations (476,674) (402,875)Debt issuance costs (1,108) — Repurchases of common stock (64,055) (43,807)Payments related to tax withholding for share-based compensation (21,473) (15,100)Cash flows provided by (used in) financing activities 42,190 (168,282)Effect of exchange rate changes on cash and cash equivalents 1,201 2,077 Net increase (decrease) in cash and cash equivalents and restricted cash 7,809 (109,845)Cash and cash equivalents and restricted cash: Beginning of period 306,758 347,462 End of period$314,567 $237,617 PLEXUS CORP. AND SUBSIDIARIESNON-GAAP SUPPLEMENTAL INFORMATION Table 1(in thousands, except per share data)(unaudited) Three Months Ended Nine Months Ended Jul 4, Apr 4, Jun 28, Jul 4, Jun 28, 2026 2026 2025 2026 2025Operating income, as reported$61,260 $61,837 $53,608 $177,561 $149,259 Operating margin, as reported 4.7% 5.3% 5.3% 5.0% 5.0% Non-GAAP adjustments: Restructuring costs (1) — — — — 4,683 Stock-based compensation (2) 21,137 7,922 7,691 36,824 21,813 Non-GAAP operating income$82,397 $69,759 $61,299 $214,385 $175,755 Non-GAAP operating margin 6.3% 6.0% 6.0% 6.1% 5.9% Net income, as reported$42,993 $49,809 $45,116 $133,984 $121,456 Non-GAAP adjustments: Restructuring costs, net of tax (1) — — — — 4,191 Stock-based compensation, net of tax (2) 20,337 6,055 7,307 33,769 20,722 Adjusted net income$63,330 $55,864 $52,423 $167,753 $146,369 Diluted earnings per share, as reported$1.58 $1.82 $1.64 $4.90 $4.39 Non-GAAP per share adjustments: Restructuring costs, net of tax (1) — — — — 0.15 Stock-based compensation, net of tax (2) 0.74 0.23 0.26 1.23 0.75 Adjusted diluted earnings per share$2.32 $2.05 $1.90 $6.13 $5.29 (1)During the nine months ended June 28, 2025, restructuring costs of $4.7 million, or $4.2 million net of taxes, were incurred primarily for employee severance costs associated with a reduction in the Company’s workforce in the EMEA and AMER regions. (2)During the three and nine months ended July 4, 2026, $12.9 million, or $12.5 million net of taxes ($0.46 per diluted share), of accelerated stock-based compensation expense was recorded in selling and administrative expenses in the accompanying Condensed Consolidated Statements of Operations as a result of previously announced executive retirement agreements. PLEXUS CORP. AND SUBSIDIARIES
NON-GAAP SUPPLEMENTAL INFORMATION Table 2
(in thousands)
(unaudited)
ROIC and Economic Return CalculationsNine Months Ended Six Months Ended Nine Months Ended Jul 4, Apr 4, Jun 28, 2026 2026
2025Operating income, as reported $177,561 $116,301 $149,259 Restructuring and other charges, net — — 4,683 Accelerated stock-based compensation (1)+ 12,940 + — + — Adjusted operating income $190,501 $116,301 $153,942 ÷ 3 x 2 ÷ 3 $63,500 $51,314 x 4 x 4 Adjusted annualized operating income $254,000 $232,602 $205,256 Adjusted effective tax ratex 16% x 17% x 11%Tax impact 40,640 39,542 22,578 Adjusted operating income (tax-effected) $213,360 $193,060 $182,678 Average invested capital÷$1,431,266 ÷$1,401,134 ÷$1,298,575 ROIC 14.9% 13.8% 14.1%Weighted average cost of capital- 9.0% - 9.0% - 8.9%Economic return 5.9% 4.8% 5.2% Average Invested Capital CalculationsJul 4, Apr 4, Jan 3, Sep 27, 2026 2026 2026 2025Equity$1,528,752 $1,489,800 $1,481,063 $1,454,588 Plus: Debt and finance lease obligations - current 183,814 143,112 66,837 45,793 Operating lease obligations - current (2) 7,616 7,758 7,943 8,253 Debt and finance lease obligations - long-term 91,644 91,034 91,139 91,987 Operating lease obligations - long-term 23,888 25,769 27,327 29,422 Less: Cash and cash equivalents (314,053) (303,133) (248,825) (306,464) $1,521,661 $1,454,340 $1,425,484 $1,323,579 Average Invested Capital CalculationsJun 28, Mar 29, Dec 28, Sep 28, 2025 2025 2024 2024Equity$1,419,085 $1,351,675 $1,319,069 $1,324,825 Plus: Debt and finance lease obligations - current 50,678 121,014 121,977 157,325 Operating lease obligations - current (2) 8,470 9,968 14,875 14,697 Debt and finance lease obligations - long-term 92,215 88,761 88,728 89,993 Operating lease obligations - long-term 31,192 32,720 35,124 32,275 Less: Cash and cash equivalents (237,567) (310,531) (317,161) (345,109) $1,364,073 $1,293,607 $1,262,612 $1,274,006 (1)During the three and nine months ended July 4, 2026, $12.9 million of accelerated stock-based compensation expense was recorded in selling and administrative expenses in the accompanying Condensed Consolidated Statements of Operations as a result of previously announced executive retirement agreements.(2)Included in other accrued liabilities on the Condensed Consolidated Balance Sheets.
FormFactor v 2. čtvrtletí překonal odhady: tržby činily 258,24 milionu USD a upravený EPS 82 centů. Firma zároveň čeká na 3. čtvrtletí tržby 260 až 280 milionů USD.
FormFactor stock is climbing today. Why is FORM stock surging? FormFactor Delivers Double Beat In Q2 Q2 Revenue: $258.24 million, versus estimates of $240 million Q2 Adjusted EPS: 82 cents, versus estimates of 61 cents Total revenue was up 14.2% on a year-over-year basis. The semiconductor test and measurement tech company said it experienced broad-based demand in the quarter, with strength in High Bandwidth Memory and Co-Packaged Optics.
“Over the past four quarters, FormFactor has grown revenue more than 30%, expanded Non-GAAP gross margin 1,500 basis points, and tripled earnings per share,” said Mike Slessor, CEO of FormFactor.
“These improvements reflect years of investment to create and expand our unique position at the intersection of high-performance compute and advanced packaging.”
Looking ahead, FormFactor guided for third-quarter revenue in the range of $260 million to $280 million versus estimates of $247.35 million. The company anticipates third-quarter adjusted earnings of 77 cents to 95 cents per share, versus estimates of 63 cents per share.
FORM Shares Soar After The CloseFORM Price Action: FormFactor shares were up 15.34% in after-hours, trading at $96.25 at the time of publication on Wednesday, according to Benzinga Pro.
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FormFactor vykázal rekordní tržby, hrubý zisk i zisk na akcii za 2. čtvrtletí a čeká další růst ve 3. čtvrtletí. Tržby dosáhly 258,2 mil. USD a upravený non-GAAP EPS byl 0,82 USD. Ve 3. čtvrtletí firma očekává tržby 270 mil. USD (±10 mil. USD) a non-GAAP EPS 0,86 USD (±0,09 USD).
Is Cohu Inc. One of the Cheapest Chip Stocks Around?FormFactor NASDAQ: FORM reported record second-quarter revenue, gross profit and earnings per share, as demand for semiconductor test products increased across high-bandwidth memory, data-center computing and co-packaged optics.
Chief Executive Officer Mike Slessor said the company surpassed a $1 billion annualized revenue run rate and exceeded 50% gross margin during the quarter, marking progress toward the long-term target model introduced in May. That model calls for revenue of $1.6 billion, non-GAAP gross margin of 55% and non-GAAP earnings per share above $5 by 2030.
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“FormFactor's second quarter revenue, gross profit, and earnings per share set all-time records,” Slessor said. He added that the company expects further sequential increases in both revenue and profitability in the third quarter.
Second-Quarter Results Revenue for the second quarter was $258.2 million, up $32.1 million, or about 14%, from the first quarter and $18.2 million above the midpoint of the company’s outlook range. Chief Financial Officer Aric McKinnis said the result represented FormFactor’s third consecutive quarterly revenue record.
GAAP gross margin was 50.7%, compared with 38.4% in the first quarter. The prior-quarter result included $18.8 million in restructuring costs that did not recur in the second quarter. On a non-GAAP basis, gross margin reached 53.3%, up 430 basis points sequentially.
McKinnis said roughly one-third of the sequential gross-margin improvement came from durable baseline cost reductions, one-third reflected the $32 million increase in revenue, and one-third came from items not expected to recur, including tariff refunds and precious-metal recovery associated with the shutdown of the company’s Baldwin Park site.
Excluding those nonrecurring items and favorable product mix, McKinnis said FormFactor’s normalized non-GAAP gross-margin baseline was about 51% at second-quarter volumes. He said the company expects its Farmers Branch, Texas, manufacturing site to be accretive to gross margins once it comes online.
GAAP net income was $56.2 million, or $0.71 per diluted share, compared with $20.4 million, or $0.26 per share, in the first quarter. Non-GAAP net income was $65 million, or $0.82 per diluted share, compared with $44.5 million, or $0.56 per share, in the first quarter. Free cash flow totaled $52.6 million, up from $30.7 million in the prior quarter. Cash and investments increased $42.8 million sequentially to $349 million. Systems-segment revenue reached a record $48.5 million, rising $20.6 million, or 74%, from the first quarter. McKinnis said the recovery reflected stronger engineering-prober demand and accelerating co-packaged optics revenue.
HBM, DDR and Foundry Demand FormFactor’s DRAM probe-card business posted another record quarter as demand for HBM4 products increased alongside continued DDR demand. HBM accounted for approximately two-thirds of overall DRAM revenue during the period, according to Slessor.
The company said two customers continued to adopt its SmartMatrix full-wafer contactor technology for high-speed HBM4 testing. Slessor said the technology allows customers to test hundreds of completed HBM stacks simultaneously at HBM4 data rates exceeding 10 gigabits per second.
For the third quarter, however, FormFactor expects overall DRAM revenue to remain comparable with the second-quarter record while the mix shifts materially toward DDR. Slessor attributed that expected shift to constrained memory supply and increased DDR pricing, which he said is prompting customers to adjust wafer-start mixes toward DDR designs.
Foundry and logic probe-card demand also increased significantly from the first quarter, driven primarily by data-center CPU applications, continued networking strength, early momentum in hyperscaler custom ASICs, and steady PC and mobile demand.
Slessor said increasing CPU compute intensity associated with agentic AI use cases is creating probe-card opportunities. He cited FormFactor’s incumbent position with a data-center CPU supplier, an expanding relationship with a high-performance-compute leader across networking, GPU and CPU products, and multiple design wins at a large fabless XPU customer.
He characterized the company’s current share at the fabless CPU customer as low single digits but said it has additional opportunity over time. Capacity availability could limit the pace of share expansion until Farmers Branch begins ramping, he said.
Co-Packaged Optics Gains Momentum FormFactor increased its outlook for co-packaged optics, or CPO, revenue after seeing faster-than-expected adoption. The company had initially forecast 2026 CPO revenue of $10 million to $20 million but now expects to exceed $20 million by the end of the third quarter and to finish the full year significantly above that level.
The growth is being supported by planned increases in CPO chip volumes later in the year and FormFactor’s role in testing photonic integrated-circuit wafers before they are combined with electrical integrated circuits to create optical modules, Slessor said.
While he said FormFactor is seeing “strong acceleration” in the business, Slessor did not provide a detailed quarterly CPO forecast for 2027, citing variables including customer adoption, yields and test times. The company has previously identified a CPO served market of about $400 million by 2030.
Capacity Expansion and Third-Quarter Outlook FormFactor’s Farmers Branch facility remains on track to begin ramping at the end of 2026 and continue ramping through 2027. The initial targeted capacity is roughly equivalent to the company’s existing California probe-card manufacturing footprint, McKinnis said.
The company expects 2026 cash capital expenditures for Farmers Branch and other capacity additions of $140 million to $170 million. It also expects total pre-production ramp costs of about $25 million to $30 million this year, including roughly $12 million incurred through the second quarter and approximately $7 million expected in the third quarter.
McKinnis said FormFactor expects Farmers Branch to be accretive to gross margin after reaching its initial target capacity, which is anticipated by the beginning of 2028. The company has received incentives that include a $24.2 million grant from the Texas Semiconductor Innovation Fund, subject to meeting certain criteria.
For the third quarter, FormFactor forecast revenue of $270 million, plus or minus $10 million, and non-GAAP gross margin of 54%, plus or minus 150 basis points. The outlook includes expected tariff refunds that McKinnis said would contribute about 300 basis points to gross margin. The company forecast non-GAAP earnings per diluted share of $0.86, plus or minus $0.09.
About FormFactor (NASDAQ:FORM)FormFactor, Inc NASDAQ: FORM is a leading provider of advanced test and measurement solutions for the semiconductor industry. The company specializes in the design, development and manufacture of high-performance wafer-level and package-level test interfaces used in wafer sort, characterization, reliability and failure analysis applications. By leveraging precision microelectromechanical systems (MEMS) and photolithographic processes, FormFactor delivers probe cards, analytical probes and test sockets that enable device makers to validate next-generation integrated circuits across logic, memory, RF, analog and power applications.
FormFactor's product portfolio includes custom probe cards for wafer probers, TEM-based analytical probes for material and device characterization, and socket solutions for burn-in and final test of packaged devices.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced that its Board of Directors has declared a quarterly cash dividend of $5.16 per share on its common stock. The quarterly common stock dividend will be paid on September 16, 2026, to shareholders of record on August 19, 2026.
About Equinix
Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements, including statements related to Equinix's quarterly cash dividend. For a list and description of such risks and uncertainties, see Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix (EQIX - Free Report) came out with quarterly funds from operations (FFO) of $11.78 per share, beating the Zacks Consensus Estimate of $11.25 per share. This compares to FFO of $9.91 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +4.71%. A quarter ago, it was expected that this data center operator would post FFO of $10.89 per share when it actually produced FFO of $10.79, delivering a surprise of -0.92%.
Over the last four quarters, the company has surpassed consensus FFO estimates two times.
Equinix, which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $2.63 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.34%. This compares to year-ago revenues of $2.26 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Equinix shares have added about 35.1% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Equinix?While Equinix has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Equinix was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $10.72 on $2.58 billion in revenues for the coming quarter and $43.05 on $10.24 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Retail is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Simon Property (SPG - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.
This shopping mall real estate investment trust is expected to post quarterly earnings of $3.18 per share in its upcoming report, which represents a year-over-year change of +4.3%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.
Simon Property's revenues are expected to be $1.71 billion, up 14.4% from the year-ago quarter.
Service Corporation International ve 2. čtvrtletí zvýšila výnosy o 4 % na 1,103 mld. USD a upravený zisk na akcii na 0,90 USD. Zároveň potvrdila celoroční EPS guidance a zvýšila výhled provozního peněžního toku na 1,085 mld. USD.
Conference call on Thursday, July 30, 2026, at 8:00 a.m. Central Time.
, /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the second quarter of 2026.
Second Quarter Highlights:
Consolidated revenue grew $37.8 million, or 4%, over the second quarter of 2025 Comparable total funeral sales average grew 3% over the second quarter of 2025 Comparable cemetery preneed sales production increased 8% in the current quarter Comparable funeral preneed sales production increased 7% in the current quarter GAAP earnings per share was $0.90 compared to $0.86 in the second quarter of 2025 Adjusted earnings per share was $0.90 compared to $0.88 in the second quarter of 2025 Net cash provided by operating activities increased $72.2 million, or 43%, to $238.7 million in the current quarter compared to $166.5 million in the prior-year quarter Adjusted cash provided by operating activities increased $70.5 million, or 42%, to $238.8 million in the current quarter compared to $168.3 million in the prior year Tom Ryan, the Company's Chairman and CEO, commented on the second quarter performance:
"Today, we reported adjusted earnings per share of $0.90 and adjusted net cash provided by operating activities of $238.8 million, both ahead of the prior year and our expectations. Our funeral segment benefited from a continued strong average revenue per service which more than offset a better-than-expected 1% decline in funeral services performed. Our cemetery segment continued to perform well, generating 5% growth in comparable cemetery revenue. The growth was primarily driven by higher recognized preneed merchandise and service revenue, as well as higher other revenue, both of which reflected impressive earnings growth from our cemetery trust funds. Additionally, recognized preneed property revenue grew 2%, while preneed property production grew 7%. This dynamic puts temporary pressure on cemetery gross margins but expands our backlog with higher-margin deferred property sales, which will benefit us in future periods. Preneed funeral sales production also remained strong, increasing 7% on a comparable basis, reinforcing the long-term strength of our preneed strategy and helping to build our backlog of future revenue.
We remain focused on executing our long-term growth strategy by growing revenue, leveraging our scale, and allocating capital in a disciplined manner to create long-term shareholder value. Our consistent cash generation continues to provide the financial flexibility to invest in strategic acquisitions, expand and develop our cemetery portfolio, pursue attractive real estate opportunities, and construct new funeral homes. Thus far this year, we returned $363 million to shareholders through dividends and share repurchases, reflecting our continued commitment to balanced capital allocation. This balanced capital allocation strategy positions us to deliver sustainable growth and create long-term shareholder value.
Finally, I would like to thank our more than 25,000 associates for their unwavering commitment to serving client families with compassion, professionalism, and excellence. Their dedication is the foundation of our success and continues to distinguish SCI every day."
Details of our second quarter 2026 financial results and the unaudited consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.
(Dollars in millions, except for per share amounts)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Revenue
$ 1,103.3
$ 1,065.4
$ 2,199.7
$ 2,139.6
Operating income
$ 231.6
$ 224.5
$ 475.4
$ 476.1
Net income attributable to common stockholders
$ 124.8
$ 122.9
$ 260.6
$ 265.7
Diluted earnings per share
$ 0.90
$ 0.86
$ 1.87
$ 1.84
Earnings excluding special items (1)
$ 124.9
$ 125.5
$ 260.1
$ 265.1
Diluted earnings per share excluding special items (1)
$ 0.90
$ 0.88
$ 1.87
$ 1.84
Diluted weighted average shares outstanding
138.3
143.0
139.1
144.1
Net cash provided by operating activities
$ 238.7
$ 166.5
$ 572.4
$ 477.6
Net cash provided by operating activities excluding
special items (1)
$ 238.8
$ 168.3
$ 573.3
$ 484.2
(1)
Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items are non-GAAP financial measures. These items are also referred to as "adjusted earnings per share" and "adjusted operating cash flow". A reconciliation from net income attributable to common stockholders, diluted earnings per share, and net cash provided by operating activities in accordance with generally accepted accounting principles in the United States (GAAP) can be found under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures" in the Appendix at the end of this press release.
Diluted earnings per share was $0.90 in the second quarter of 2026 compared to $0.86 in the second quarter of 2025. The current year quarter was impacted by $0.1 million of net losses on divestitures and impairment charges compared to $4.1 million of net gains in the prior year. The prior year also included a $6.4 million charge related to the settlement of certain legal matters and a $1.6 million restructuring charge. Diluted earnings per share, excluding special items, was $0.90 in the second quarter of 2026 compared to $0.88 in the second quarter of 2025. Higher cemetery gross profit combined with a lower share count more than offset lower funeral gross profit. Net cash provided by operating activities increased $72.2 million, or 43%, to $238.7 million in the second quarter of 2026. Adjusted cash provided by operating activities increased $70.5 million, or 42%, to $238.8 million in the current quarter compared to $168.3 million in the prior year primarily due to a reduction in cash taxes and strong operating cash receipts from increased preneed cemetery sales production. CONFIRMED 2026 EPS GUIDANCE AND RAISED 2026 CASH FLOW GUIDANCE
The $4.20 midpoint of our annual guidance range for 2026 detailed below is confirmed with a more narrow range expected for adjusted earnings per share of $4.10 to $4.30. Our cash flow outlook at the midpoint has increased $50 million from $1,035 million to $1,085 million due to stronger cemetery preneed cash receipts. Additionally, we increased our total maintenance capital expenditures by $10 million to $335 million. Our outlook for diluted earnings per share from continuing operations excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.
(Dollars in millions, except per share amounts)
2026 Outlook
Revised 2026 Outlook
Diluted earnings per share excluding special items (1)
$4.05 - $4.35
$4.10 - $4.30
Net cash provided by operating activities excluding special items and cash
taxes (1)
$1,125 - $1,185
$1,175 - $1,235
Cash taxes expected in 2026 (at the midpoint of diluted earnings per share
excluding special items guidance)
$120
$120
Net cash provided by operating activities excluding special items (1)
$1,005 - $1,065
$1,055 - $1,115
Midpoint of net cash provided by operating activities excluding special items (1)
$1,035
$1,085
Capital improvements at existing field locations
$135
$140
Development of cemetery property
$165
$170
Digital investments and corporate
$25
$25
Total maintenance, cemetery development, and other capital expenditures
(Maintenance capital expenditures)
$325
$335
(1)
Diluted earnings per share excluding special items, net cash provided by operating activities excluding special items and cash taxes, and net cash provided by operating activities excluding special items are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from diluted earnings per share and net cash provided by operating activities; however, diluted earnings per share and net cash provided by operating activities calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2026 excludes the following because this information is not currently available for 2026: Expenses net of insurance recoveries related to hurricanes, gains or losses associated with asset divestitures, gains or losses associated with the early extinguishment of debt, potential tax reserve adjustments and IRS payments and/or refunds, acquisition and integration costs, system implementation and transition costs, and potential costs associated with estimated litigation charges or legal settlements or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP, consistent with the historical disclosures found in the Appendix at the end of this press release under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures".
CONFERENCE CALL AND WEBCAST
We will host a conference call on Thursday, July 30, 2026, at 8:00 a.m. Central Time. A question and answer session will follow prepared remarks made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 7565620. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through August 6, 2026 and can be accessed at (855) 669-9658 (US) or (412) 317-0088 (International) with the passcode of 1797873. Additionally, a replay of the conference call will be available on our website for approximately three months.
ABOUT SERVICE CORPORATION INTERNATIONAL
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving approximately 700,000 combined preneed and atneed families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At June 30, 2026, we owned and operated 1,495 funeral service locations and 505 cemeteries (of which 316 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
For additional information contact: [email protected]
Investors:
Trey Bocage - Assistant Vice President - Treasury and Investor Relations
(713) 525-3454
Andrea Low - Director - Federal Tax and Investor Relations
(713) 525-2811
Media:
Jay Andrew - Assistant Vice President - Corporate Communications
(713) 525-3468
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
The statements in this press release that are not historical facts are forward-looking statements made in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe", "estimate", "project", "expect", or "anticipate", "predict" that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. These factors are discussed below. Except as required by applicable law, we assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.
Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control. We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow. Our ability to execute our strategic plan depends on many factors, some of which are beyond our control. We may be adversely affected by the effects of inflation. Our results may be adversely affected by significant weather events, natural disasters, catastrophic events, or public health crises. Our credit agreements contain covenants that may prevent us from engaging in certain transactions. If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds. The financial condition of third-party insurance companies that fund our preneed contracts may impact our future revenue. Unfavorable publicity could affect our reputation and business. Our failure to attract and retain qualified sales personnel and licensed funeral professionals could have an adverse effect on our business and financial condition. We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance. Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets. Any failure to protect personal information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow. A failure of a key information technology system or process could disrupt and adversely affect our business. Our Canadian business exposes us to operational, economic, and currency risks. Our level of indebtedness could adversely affect our cash flows, our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness. The funeral and cemetery industry is competitive. If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term. If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease. The continuing upward trend in life expectancy and an increase in the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows. Our funeral and cemetery businesses are high fixed-cost businesses. Risks associated with our supply chain, such as tariffs, could materially adversely affect our financial performance. Regulation and compliance could have a material adverse impact on our financial results. Unfavorable results of litigation could have a material adverse impact on our financial statements. Cemetery burial practice claims could have a material adverse impact on our financial results. The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results. Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows. For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2025 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com.
SERVICE CORPORATION INTERNATIONAL
APPENDIX: RESULTS FOR THE SECOND QUARTER OF 2026
Consolidated Statement of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Revenue
$ 1,103,288
$ 1,065,444
$ 2,199,742
$ 2,139,611
Cost of revenue
(829,787)
(794,006)
(1,639,790)
(1,576,756)
Gross profit
273,501
271,438
559,952
562,855
Corporate general and administrative expenses
(41,775)
(49,466)
(85,686)
(94,167)
Restructuring charge
—
(1,575)
—
(1,575)
(Losses) gains on divestitures and impairment charges, net
(138)
4,062
1,136
9,033
Operating income
231,588
224,459
475,402
476,146
Interest expense
(64,711)
(64,071)
(128,717)
(125,554)
Other (expense) income, net
(57)
3,914
1,341
7,066
Income before income taxes
166,820
164,302
348,026
357,658
Provision for income taxes
(41,943)
(41,378)
(87,276)
(91,807)
Net income
124,877
122,924
260,750
265,851
Net income attributable to noncontrolling interests
(52)
(59)
(117)
(106)
Net income attributable to common stockholders
$ 124,825
$ 122,865
$ 260,633
$ 265,745
Basic earnings per share:
Net income attributable to common stockholders
$ 0.91
$ 0.87
$ 1.89
$ 1.86
Basic weighted average number of shares
137,519
141,897
138,268
143,001
Diluted earnings per share:
Net income attributable to common stockholders
$ 0.90
$ 0.86
$ 1.87
$ 1.84
Diluted weighted average number of shares
138,327
142,992
139,122
144,134
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands, except share amounts)
June 30, 2026
December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 260,411
$ 243,581
Receivables, net of reserves of $3,602 and $3,944, respectively
104,109
100,415
Inventories
38,235
35,246
Other
46,991
32,551
Total current assets
449,746
411,793
Preneed receivables, net of reserves of $33,925 and $34,680, respectively, and
trust investments
7,652,394
7,360,793
Cemetery property
2,251,528
2,201,967
Property and equipment, net
2,835,540
2,751,761
Goodwill
2,174,837
2,169,055
Deferred charges and other assets, net of reserves of $2,826 and $2,460,
respectively
1,329,669
1,360,530
Cemetery perpetual care trust investments
2,520,779
2,398,613
Total assets
$ 19,214,493
$ 18,654,512
LIABILITIES & EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$ 650,833
$ 685,156
Current maturities of long-term debt
195,149
56,847
Income taxes payable
246
3,701
Total current liabilities
846,228
745,704
Long-term debt
5,108,016
5,082,970
Deferred revenue, net
1,823,627
1,779,266
Deferred tax liability
704,103
691,033
Other liabilities
571,893
550,793
Deferred receipts held in trust
6,116,618
5,784,398
Care trusts' corpus
2,506,248
2,381,507
Commitments and contingencies
Equity:
Common stock, $1 per share par value, 500,000,000 shares authorized,
142,249,152 and 141,957,004 shares issued, respectively, and 136,619,474 and
139,678,199 shares outstanding, respectively
136,619
139,678
Capital in excess of par value
976,452
987,210
Retained earnings
427,900
498,958
Accumulated other comprehensive income
(3,720)
12,425
Total common stockholders' equity
1,537,251
1,638,271
Noncontrolling interests
509
570
Total equity
1,537,760
1,638,841
Total liabilities and equity
$ 19,214,493
$ 18,654,512
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in thousands)
Six months ended June 30,
2026
2025
Cash flows from operating activities:
Net income
$ 260,750
$ 265,851
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
114,081
108,257
Amortization of intangibles
7,038
8,441
Amortization of cemetery property
48,581
48,195
Amortization of loan costs
4,474
4,383
Provision for expected credit losses
4,217
5,234
Provision for deferred income taxes
13,307
4,621
Gains on divestitures and impairment charges, net
(1,136)
(9,033)
Share-based compensation
10,387
9,589
Change in assets and liabilities, net of effects from acquisitions and divestitures:
(Increase) decrease in receivables
(5,094)
6,205
Decrease (increase) in other assets
24,982
(16,110)
Increase in payables and other liabilities
21,679
11,996
Effect of preneed sales production and maturities:
Decrease (increase) in preneed receivables, net and trust investments
8,318
(28,062)
Increase in deferred revenue, net
40,995
23,785
Increase in deferred receipts held in trust
19,860
34,228
Net cash provided by operating activities
572,439
477,580
Cash flows from investing activities:
Capital expenditures
(175,593)
(161,201)
Business acquisitions, net of cash acquired
(39,469)
(28,242)
Real estate acquisitions
(12,835)
(5,422)
Corporate headquarters
(56,334)
(26,759)
Proceeds from divestitures and sales of property and equipment
5,331
26,762
Payments for Company-owned life insurance policies
(124)
(130)
Proceeds from Company-owned life insurance policies and other
—
3,757
Tax credit equity investments
(40,737)
—
Net cash used in investing activities
(319,761)
(191,235)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
405,000
495,001
Scheduled payments of debt
(13,648)
(12,827)
Early payments of debt
(295,000)
(305,000)
Proceeds from corporate headquarters debt facility
51,854
17,120
Principal payments on finance leases
(19,783)
(18,853)
Proceeds from exercise of stock options
6,599
4,040
Purchase of Company common stock
(266,377)
(324,023)
Payments of dividends
(96,363)
(91,129)
Bank overdrafts and other
(4,773)
(7,354)
Net cash used in financing activities
(232,491)
(243,025)
Effect of foreign currency
(4,938)
5,800
Net increase in cash, cash equivalents, and restricted cash
15,249
49,120
Cash, cash equivalents, and restricted cash at beginning of period
246,468
221,399
Cash, cash equivalents, and restricted cash at end of period
$ 261,717
$ 270,519
Consolidated Segment Results
(See definitions of revenue line items later in this appendix.)
(Dollars in millions, except funeral services
performed and average revenue per service)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Consolidated funeral:
Atneed revenue
$ 298.7
$ 296.1
$ 618.9
$ 625.2
Matured preneed revenue
196.5
183.5
401.9
389.3
Core revenue
495.2
479.6
1,020.8
1,014.5
Non-funeral home revenue
27.6
25.7
56.4
53.4
Non-funeral home preneed sales revenue
21.3
26.4
43.5
48.6
Core general agency and other revenue
60.7
59.7
114.7
114.4
Total revenue
$ 604.8
$ 591.4
$ 1,235.4
$ 1,230.9
Gross profit
$ 110.3
$ 116.0
$ 244.3
$ 270.0
Gross profit percentage
18.2 %
19.6 %
19.8 %
21.9 %
Funeral services performed
87,347
87,014
181,033
184,868
Average revenue per service
$ 5,985
$ 5,807
$ 5,950
$ 5,777
(Dollars in millions)
Three months ended June
30,
Six months ended June 30,
2026
2025
2026
2025
Consolidated cemetery:
Atneed property revenue
$ 37.5
$ 37.0
$ 74.0
$ 74.2
Atneed merchandise and service revenue
73.2
74.0
145.9
149.1
Total atneed revenue
110.7
111.0
219.9
223.3
Recognized preneed property revenue
225.4
220.4
435.0
409.1
Recognized preneed merchandise and service revenue
116.2
105.8
222.5
204.3
Total recognized preneed revenue
341.6
326.2
657.5
613.4
Core revenue
452.3
437.2
877.4
836.7
Other cemetery revenue
46.2
36.9
87.0
72.1
Total revenue
$ 498.5
$ 474.1
$ 964.4
$ 908.8
Gross profit
$ 163.2
$ 155.5
$ 315.7
$ 292.9
Gross profit percentage
32.7 %
32.8 %
32.7 %
32.2 %
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended June 30, 2026 and 2025. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2025 and ending June 30, 2026.
(Dollars in millions, except average revenue per service and
average revenue per contract sold)
Three months ended June 30,
2026
2025
Var
%
Comparable funeral revenue:
Atneed revenue (1)
$ 290.2
$ 294.3
$ (4.1)
(1.4) %
Matured preneed revenue (2)
194.0
182.8
11.2
6.1 %
Core revenue (3)
484.2
477.1
7.1
1.5 %
Non-funeral home revenue (4)
27.4
25.1
2.3
9.2 %
Non-funeral home preneed sales revenue (5)
21.2
26.3
(5.1)
(19.4) %
Core general agency and other revenue (6)
60.1
59.3
0.8
1.3 %
Total comparable revenue
$ 592.9
$ 587.8
$ 5.1
0.9 %
Comparable gross profit
$ 109.8
$ 116.6
$ (6.8)
(5.8) %
Comparable gross profit percentage
18.5 %
19.8 %
(1.3) %
Comparable funeral services performed:
Atneed
44,482
45,873
(1,391)
(3.0) %
Matured preneed
26,384
26,247
137
0.5 %
Total core
70,866
72,120
(1,254)
(1.7) %
Non-funeral home
14,178
14,109
69
0.5 %
Total comparable funeral services performed
85,044
86,229
(1,185)
(1.4) %
Core cremation rate
58.0 %
57.4 %
0.6 %
Total comparable cremation rate (7)
64.8 %
64.3 %
0.5 %
Comparable funeral average revenue per service:
Atneed
$ 6,524
$ 6,416
$ 108
1.7 %
Matured preneed
7,353
6,965
388
5.6 %
Total core
6,833
6,615
218
3.3 %
Non-funeral home
1,933
1,779
154
8.7 %
Total comparable average revenue per service
$ 6,016
$ 5,824
$ 192
3.3 %
Comparable funeral preneed sales production:
Total preneed sales
$ 323.3
$ 303.4
$ 19.9
6.6 %
Core contracts sold
38,642
36,232
2,410
6.7 %
Non-funeral home contracts sold
20,420
20,923
(503)
(2.4) %
Core average revenue per contract sold
6,706
6,604
102
1.5 %
Non-funeral home average revenue per contract sold
$ 3,141
$ 3,068
$ 73
2.4 %
(1)
Atneed revenue represents merchandise and services sold and delivered or performed once death has occurred.
(2)
Matured preneed revenue represents merchandise and services sold on a preneed contract through our core funeral homes, which have been delivered or performed as well as the related merchandise and service trust fund income and other insurance benefits.
(3)
Core revenue represents the sum of merchandise and services sold on an atneed contract or preneed contract, which were delivered or performed once death has occurred through our core funeral homes.
(4)
Non-funeral home revenue represents services sold on a preneed or atneed contract through one of our non-funeral home sales channels (e.g. SCI Direct) and performed once death has occurred.
(5)
Non-funeral home preneed sales revenue represents travel protection, net and merchandise sold on a preneed contract that is delivered before death has occurred and general agency revenue from our non-funeral home sales channel.
(6)
Core general agency and other revenue primarily comprises core general agency revenue, which is commissions we receive from third-party insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed arrangements and core travel protection preneed sales, net.
(7)
Total comparable cremation rate includes the impact of cremation services through our non-funeral sales channel (e.g. SCI Direct).
Total comparable funeral revenue increased $5.1 million. Core funeral revenue increased $7.1 million, or 1.5%, primarily due to a 3.3% increase in core average revenue per service partially offset by a 1.7% decrease in core funeral services performed. The growth in the average revenue per service is primarily driven by consumer preferences for enhanced product and service offerings as well as an increase in trust fund income. The core cremation rate increased 60 basis points to 58.0%. Non-funeral home revenue increased $2.3 million, or 9.2%, due to an 8.7% increase in non-funeral home average revenue per service driven by increased matured preneed revenue from the backlog, combined with a 0.5% increase in non-funeral home services performed. Non-funeral home preneed sales revenue decreased $5.1 million, primarily due to an operational shift to defer the delivery of urns on preneed contracts to the time of need. This transition was completed late in 2025, and this decrease is short-term in nature as we will recognize deferred urn revenue from the backlog at the time of need as non-funeral home revenue in future periods. Core general agency and other revenue increased $0.8 million. Core general agency revenue benefited from higher insurance sales production which was largely offset by a lower general agency commission rate quarter over quarter. The current commission rate is stable and is trending in line with expectations. Comparable funeral gross profit decreased $6.8 million to $109.8 million, and the gross profit percentage declined 130 basis points from 19.8% to 18.5%. Gross profit was impacted by higher selling compensation associated with strong insurance-funded preneed sales production. Selling compensation costs associated with insurance-funded preneed sales production are expensed as incurred, while the benefit of these sales will be realized in future periods as the related funeral services are performed. Comparable funeral preneed sales production increased $19.9 million, or 6.6%, in the second quarter of 2026 compared to 2025, driven by an 8.3% increase in core preneed sales production. Comparable Cemetery Results
The table below details comparable cemetery results of operations ("same store") for the three months ended June 30, 2026 and 2025. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2025 and ending June 30, 2026.
(Dollars in millions)
Three months ended June 30,
2026
2025
Var
%
Comparable cemetery revenue:
Atneed property revenue
$ 37.3
$ 37.0
$ 0.3
0.8 %
Atneed merchandise and service revenue
72.9
74.0
(1.1)
(1.5) %
Total atneed revenue (1)
110.2
111.0
(0.8)
(0.7) %
Recognized preneed property revenue
225.2
220.4
4.8
2.2 %
Recognized preneed merchandise and service revenue
116.2
105.8
10.4
9.8 %
Total recognized preneed revenue (2)
341.4
326.2
15.2
4.7 %
Core revenue (3)
451.6
437.2
14.4
3.3 %
Other revenue (4)
45.3
36.9
8.4
22.8 %
Total comparable revenue
$ 496.9
$ 474.1
$ 22.8
4.8 %
Comparable gross profit
$ 162.2
$ 155.5
$ 6.7
4.3 %
Comparable gross profit percentage
32.6 %
32.8 %
(0.2) %
Comparable cemetery preneed and atneed sales production:
Property
$ 288.5
$ 271.2
$ 17.3
6.4 %
Merchandise and services
225.3
210.9
14.4
6.8 %
Discounts and other
(5.4)
(3.7)
(1.7)
(45.9) %
Preneed and atneed sales production
$ 508.4
$ 478.4
$ 30.0
6.3 %
Preneed sales production
$ 399.5
$ 369.8
$ 29.7
8.0 %
Recognition rate (5)
88.8 %
91.4 %
(1)
Atneed revenue represents property, merchandise, and services sold and delivered or performed once death has occurred.
(2)
Recognized preneed revenue represents property, merchandise, and services sold on a preneed contract, which were delivered or performed as well as the related merchandise and service trust fund income.
(3)
Core revenue represents the sum of property, merchandise, and services that have been delivered or performed as well as the related merchandise and service trust fund income.
(4)
Other revenue is primarily related to endowment care trust fund income, royalty income, and interest and finance charges earned from customer receivables on preneed installment contracts.
(5)
Represents the ratio of current period core revenue stated as a percentage of current period preneed and atneed sales production.
Total comparable cemetery revenue increased $22.8 million, or 4.8%, in the second quarter of 2026 compared to the second quarter of 2025. The increase was due to higher core revenue of $14.4 million and higher other revenue of $8.4 million. The core revenue increase of $14.4 million was primarily due to a $15.2 million, or 4.7%, increase in total recognized preneed revenue, of which $4.8 million resulted from higher property revenue and $10.4 million from higher merchandise and service revenue. Merchandise and service revenue also reflects the positive impacts from increased trust fund income. Total recognized preneed revenue benefited from growth in comparable cemetery preneed sales production of $29.7 million, or 8.0%, a significant portion of which will benefit us in the future. Other revenue was $8.4 million higher, or 22.8%, compared to the prior-year quarter primarily from an increase in endowment care trust fund income based on market performance and higher total return distributions. Comparable cemetery gross profit increased $6.7 million to $162.2 million. The gross profit percentage decreased slightly from 32.8% to 32.6%. Gross profit was impacted by higher selling compensation, reflecting strong preneed sales production growth of 8.0%. While this strong production growth puts temporary pressure on cemetery gross margins, it grows our backlog with higher-margin deferred property sales which will benefit us in future periods. Comparable preneed cemetery sales production increased $29.7 million, or 8.0%, and was supported by an increase in the number of contracts sold and a higher sales average as well as an increase in large sales. Other Financial Results
Corporate general and administrative expenses were $41.8 million in the second quarter of 2026, compared to $49.5 million in the prior year. The prior year included a $6.4 million charge related to the settlement of certain legal matters. The remaining decrease is partially due to lower auto and general liability claims in the current year. Interest expense was $64.7 million in the second quarter of 2026 compared to $64.1 million in the prior year. The average balances on our floating-rate debt increased approximately $189.0 million, partially offset by lower average floating rates decreasing from 6.8% to 5.8%, resulting in the net $0.6 million increase in interest expense. The GAAP effective income tax rate for the second quarter of 2026 was 25.1%, down from 25.2% in the prior-year quarter. On an adjusted basis, the effective tax rate was 25.2%, down from 25.4% in the prior-year quarter. The lower effective tax rate in the current period was primarily due to non-taxable gains on the cash surrender value of certain life insurance policies. Cash Flow and Capital Spending
(Dollars in millions)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Net cash provided by operating activities
$ 238.7
$ 166.5
$ 572.4
$ 477.6
Legal settlement payments
0.1
0.5
0.3
0.7
Restructuring charge payments
—
1.3
0.6
5.9
Net cash provided by operating activities excluding special
items
$ 238.8
$ 168.3
$ 573.3
$ 484.2
Cash taxes included in net cash provided by operating
activities excluding special items
$ 30.0
$ 94.3
$ 34.4
$ 99.2
Net cash provided by operating activities excluding special items grew $70.5 million to $238.8 million in the second quarter of 2026 compared to $168.3 million in the second quarter of 2025. The increase is driven by higher operating income of $7.1 million, and a reduction in cash taxes of $64.3 million, due primarily to credits associated with a renewable energy investment. The related renewable energy investment resulted in a $40.7 million investing cash outflow in the current quarter. Working capital remained essentially flat overall; however, we saw an improvement of $36.4 million in preneed working capital. This improvement was primarily driven by collections associated with higher preneed cemetery sales production (for which revenue recognition was deferred) as well as higher collection rates compared to the prior year. This was offset by $37.3 million in higher accounts payable and other working capital uses due to the timing of an additional payroll cycle within the period compared to the prior year. We expect the favorable preneed cemetery collection rates to continue in the back half of 2026, resulting in our increasing cash flow guidance.
A summary of our capital expenditures is set forth below:
(Dollars in millions)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Capital improvements at existing field locations
$ 29.6
$ 29.1
$ 49.6
$ 49.8
Development of cemetery property
44.5
34.7
85.4
76.0
Digital investments and corporate
6.0
5.1
11.6
9.9
Total maintenance, cemetery development, and other capital
expenditures (Maintenance capital expenditures)
$ 80.1
$ 68.9
$ 146.6
$ 135.7
Growth capital expenditures/construction of new funeral
service locations
15.6
14.1
29.0
25.5
Total capital expenditures
$ 95.7
$ 83.0
$ 175.6
$ 161.2
Total capital expenditures increased $12.7 million in the current quarter, primarily due to the timing of spend on the development of high-returning cemetery property during the quarter.
Trust Fund Returns
Total trust fund returns include realized and unrealized gains and losses and dividends and are shown gross without netting of certain fees. A summary of our consolidated trust fund returns as of June 30, 2026 is set forth below:
Three Months
Six Months
Preneed funeral
8.0 %
7.1 %
Preneed cemetery
7.8 %
7.1 %
Cemetery perpetual care
7.4 %
6.8 %
Combined trust funds
7.7 %
7.0 %
Non-GAAP Financial Measures
Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and years, and better reflect the performance of our core operations by adjusting for the items listed below. We also believe these measures help facilitate comparisons to our competitors' operating results.
Set forth below is a reconciliation of our reported net income attributable to common stockholders to earnings excluding special items and our GAAP diluted earnings per share to diluted earnings per share excluding special items. See "Cash Flow and Capital Spending" in this press release for a reconciliation of net cash provided by operating activities to net cash provided by operating activities excluding special items. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.
(Dollars in millions, except diluted EPS)
Three months ended June 30,
2026
2025
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net income attributable to common stockholders, as reported
$ 124.8
$ 0.90
$ 122.9
$ 0.86
Pre-tax reconciling items:
Losses (gains) on divestitures and impairment charges, net
0.1
—
(4.1)
(0.03)
Legal settlement
—
—
6.4
0.04
Restructuring charge
—
—
1.6
0.01
Tax reconciling items:
Tax effect from significant items
—
—
(0.9)
—
Change in non-recurring tax items
—
—
(0.4)
—
Earnings excluding special items and diluted earnings per share
excluding special items
$ 124.9
$ 0.90
$ 125.5
$ 0.88
Diluted weighted average shares outstanding
138.3
143.0
(Dollars in millions, except diluted EPS)
Six months ended June 30,
2026
2025
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net income attributable to common stockholders, as reported
$ 260.6
$ 1.87
$ 265.7
$ 1.84
Pre-tax reconciling items:
Gains on divestitures and impairment charges, net
(1.1)
(0.01)
(9.0)
(0.06)
Legal settlement
—
—
6.4
0.04
Restructuring charge
—
—
1.6
0.01
Tax reconciling items:
Tax effect from significant items
0.2
0.01
0.4
0.01
Change in non-recurring tax items
0.4
—
—
—
Earnings excluding special items and diluted earnings per share
excluding special items
The Hanover Insurance Group, Inc. (THG) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT
Company Participants
Oksana Lukasheva - Senior Vice President of Corporate Finance
John "Jack" C. Roche - President, CEO & Director
Jeffrey Farber - Executive VP & CFO
Richard Lavey - Executive VP & COO
Conference Call Participants
Michael Phillips - Oppenheimer & Co. Inc., Research Division
Daniel Cohen - BMO Capital Markets Equity Research
Jon Paul Newsome - Piper Sandler & Co., Research Division
Riley Sandom - RBC Capital Markets, Research Division
Presentation
Operator
Good day, and welcome to the Hanover Insurance Group's Second Quarter Earnings Conference Call. My name is Chris, and I will be your operator for today's call. [Operator Instructions] Please note that today's event is being recorded.
I would now like to turn the conference over to Oksana Lukasheva. Please go ahead.
Oksana Lukasheva
Senior Vice President of Corporate Finance
Thank you, operator. Good morning, and thank you for joining us for our quarterly conference call. We will begin today's call with prepared remarks from Jack Roche, our President and Chief Executive Officer; and Jeff Farber, our Chief Financial Officer. Available to answer your questions after our prepared remarks are Dick Lavey, our Chief Operating Officer and CEO elect; and Bryan Salvatore, President of Specialty Lines.
Before I turn the call over to Jack, let me note that our earnings press release financial supplement and a complete slide presentation for today's call are available in the Investors section of our website at hanover.com. After the presentation, we will answer questions in the Q&A session. Our prepared remarks and responses to your questions today, other than statements of historical fact, include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.
These statements can relate to, among other things, our outlook guidance, profitability, growth, strategy, capital management, the implementation
GREELEY, Colo., July 29, 2026 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's leading food companies, reports its second quarter 2026 financial results.
Second Quarter Highlights
Net Sales of $4.6 billion.Consolidated GAAP Operating Income margin of 1.4%.GAAP Net Income of $13.2 million and GAAP EPS of $0.06. Adjusted Net Income of $153.9 million, and Adjusted EPS of $0.64.Adjusted EBITDA of $360.0 million, or a 7.8% margin, with Adjusted EBITDA margins of 8.7% in the U.S., 7.6% in Europe, and 3.9% in Mexico.U.S. Fresh volumes rose from increased demand across both retail and foodservice. Profitability declined from previous year due to commodity market pricing reductions, while margins increased sequentially from last quarter with improvements in our productivity, completion of plant upgrades and gains in live operations. Pilgrim’s continues to improve its portfolio and support key customer growth with the investment in Ellijay, Ga., to increase deboning in the small bird category. U.S. Prepared Foods drove profitable growth as sales and margins both rose from last year. Just Bare® retail sales increased over 30% versus prior year, making it the second largest brand in the fully cooked category. Construction of the new prepared foods facility in Walker County, Ga., remains on schedule. Europe sales and volumes rose from continued marketplace momentum for poultry and meals offerings. Sales of Rollover® grew double digits whereas Fridge Raiders® remained steady. Margins in the UK pork segment continue to be impacted by excess imports from European countries.Mexico volumes grew from last year with improved growing conditions and as retail fresh volumes of Pilgrim’s® rose over 30%. Margins in the live commodity markets were impacted by increased domestic production and imports in chicken, greater egg availability, and additional pork imports. Ramp up of live operations in the Southern Peninsula continues to be on track.Pilgrim’s approach to engaging its team members and supporting its communities garnered multiple awards across regions for workplace satisfaction, including “America’s Greatest Workplaces” by Newsweek in the U.S., “Employer of the Year” by The Grocer in Europe, and the “Exceptional Companies Award” by the Institute for the Promotion of Quality in Mexico.Maintained strong liquidity position to support future growth opportunities as the company’s net leverage ratio is currently 1.43x Adjusted EBITDA, below the target of 2x to 3x. (Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 Y/Y Change June 28, 2026 June 29, 2025 Y/Y Change (In millions, except per share and percentages)Net sales $4,626.2 $4,757.4 (2.8) % $9,158.9 $9,220.4 (0.7) %U.S. GAAP EPS $0.06 $1.49 (96.0) % $0.48 $2.73 (82.4) %Operating income $66.0 $512.3 (87.1) % $228.5 $916.8 (75.1) %Adjusted EBITDA(1) $360.0 $686.9 (47.6) % $668.1 $1,220.1 (45.2) %Adjusted EBITDA margin(1) 7.8% 14.4% (6.6) pts 7.3% 13.2% (5.9) pts (1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
“Throughout the quarter, chicken demand remained firm in all regions as affordability continued to resonate with consumers across retail and foodservice,” said Fabio Sandri, Pilgrim’s President and CEO. “We continued our investments to drive sales growth and reduce volatility, mitigating downsides in the chicken commodity markets.”
In the second quarter, counter-seasonal movements in the jumbo commodity cutout market emerged as values fell more than 25% from the prior year. While profitability declined compared to last year, margins improved sequentially with the completion of plant upgrades and improvements in live operations.
Case Ready and Small Bird volumes grew from incremental distribution with Key Customers. Investments in Big Bird for portioning equipment continue to support the growth of Prepared Foods, moderating the impact of commodity market declines. Additional investments were announced in Ellijay, Ga., to support the long-term growth of Key Customers in the boneless category.
“While consumer interest in chicken continued to be healthy across all channels, supply growth rose faster than demand.” said Sandri. “Our relentless focus on closing operational gaps and further investments in plant upgrades to increase our internal supply capabilities and support Key Customer growth will further improve our ability to mitigate the impact of volatile commodity fundamentals, creating a more resilient earnings profile.”
U.S. Prepared Foods continues to drive profitable growth as sales and margins expanded compared to prior year. Just Bare® continues to lead growth within the frozen fully cooked category, growing market share by nearly 300 basis points over the past year.
“The growth of Just Bare® continues to demonstrate our ability to diversify our portfolio through brands,” Sandri said. “Our investment in Walker County, Ga., will further enhance our operational capabilities, accelerating momentum of our value-added line up.”
In Europe, volumes to Key Customers in retail rose faster than the overall grocery channel, as poultry and meal offerings continued to resonate throughout the market. These growth areas helped compensate for pressured pork margins due to increased European imports to the UK, additional costs driven by the Middle East conflict, and decreases in foodservice traffic.
“Our diversified portfolio continues to demonstrate adaptability needed to meet consumer needs and drive volume growth through Key Customer partnerships,” commented Sandri. “Equally important, we’ve secured additional distribution through our innovation and branded offerings that will further expand our presence.”
Mexico increased volumes through growth in both fresh and prepared. In Fresh, branded offerings in retail rose nearly 30% compared to last year. Prepared experienced similar success as Pilgrims® value-added products grew over double digits in both retail and foodservice.
Margins were compressed versus last year as counter-seasonal growing conditions for chickens, supporting a significant increase in production. Total protein supply also expanded further given additional egg availability and pork imports.
Projects to drive sales and mitigate the impact of commodity volatility remain on schedule. The new prepared foods line in Porvenir started production on schedule, and expansion in the Southern Peninsula proceeds as planned.
“Demand for chicken continues to be robust throughout Mexico despite a significant increase in overall protein supply,” remarked Sandri. “The growth of our branded offerings and prepared foods along with our investments will further mitigate challenges from live commodity markets, improving our margin profile while reducing risk.”
Pilgrim’s was also recognized as a top employer of choice by multiple entities across all regions, resulting from the company’s partnerships with its team members and communities, its training and development programs, and overall workplace satisfaction.
“Culture is paramount to our success,” concluded Sandri. “It attracts talent, retains team members and ultimately drives the success of our business. We will continue to be vigilant in embedding our unique values, strategies, and methods throughout all aspects of our organization.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, July 30, at 7 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to: https://dpregister.com/sreg/10210422/1046c71b5dc
You may also reach the pre-registration link by logging in through the investor section of our website at
https://ir.pilgrims.com in the “Events & Presentations” section.
For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.”
Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com.
About Pilgrim’s Pride
Pilgrim’s employs approximately 63,000 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Contact: Andrew Rojeski Head of Strategy, Investor Relations, & Sustainability [email protected] www.pilgrims.com PILGRIM’S PRIDE CORPORATIONCONSOLIDATED BALANCE SHEETS (Unaudited) June 28, 2026 December 28, 2025 (In thousands)Cash and cash equivalents $388,843 $640,235 Restricted cash and cash equivalents 9,461 — Trade accounts and other receivables, less allowance for credit losses 897,865 1,164,903 Accounts receivable from related parties 28,219 13,398 Inventories 2,025,304 2,031,259 Income taxes receivable 79,793 103,702 Prepaid expenses and other current assets 290,745 272,809 Assets held for sale — 11,057 Total current assets 3,720,230 4,237,363 Deferred tax assets 28,869 31,211 Other long-lived assets 153,311 113,195 Operating lease assets, net 249,464 257,784 Intangible assets, net 798,240 832,066 Goodwill 1,315,103 1,338,884 Property, plant and equipment, net 3,764,707 3,533,027 Total assets $10,029,924 $10,343,530 Accounts payable $1,579,442 $1,588,569 Accounts payable to related parties 30,591 43,516 Revenue contract liabilities 31,407 37,622 Accrued expenses and other current liabilities 1,008,263 1,095,858 Income taxes payable 94,339 123,769 Current maturities of long-term debt 913 924 Total current liabilities 2,744,955 2,890,258 Noncurrent operating lease liabilities, less current maturities 189,824 199,315 Long-term debt, less current maturities 2,861,359 3,093,113 Deferred tax liabilities 437,530 452,326 Other long-term liabilities 32,858 14,787 Total liabilities 6,266,526 6,649,799 Common stock 2,631 2,627 Treasury stock (544,687) (544,687)Additional paid-in capital 2,034,816 2,023,609 Retained earnings 2,360,323 2,245,523 Accumulated other comprehensive loss (103,236) (47,022)Total Pilgrim’s Pride Corporation stockholders’ equity 3,749,847 3,680,050 Noncontrolling interest 13,551 13,681 Total stockholders’ equity 3,763,398 3,693,731 Total liabilities and stockholders’ equity $10,029,924 $10,343,530 PILGRIM’S PRIDE CORPORATIONCONSOLIDATED AND COMBINED STATEMENTS OF INCOME(unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands, except per share data)Net sales $4,626,230 $4,757,365 $9,158,863 $9,220,374 Cost of sales 4,286,478 4,042,070 8,473,621 7,950,206 Gross profit 339,752 715,295 685,242 1,270,168 Selling, general and administrative expense 265,103 199,457 445,272 333,236 Restructuring activities 8,699 3,499 11,464 20,111 Operating income 65,950 512,339 228,506 916,821 Interest expense, net of capitalized interest 49,860 42,475 87,707 84,213 Interest income (3,750) (11,024) (10,620) (35,977)Foreign currency transaction losses (gains) (1,338) 4,892 (416) 2,839 Miscellaneous, net (614) 414 (1,777) (278)Income before income taxes 21,792 475,582 153,612 866,024 Income tax expense 8,572 119,573 38,942 213,672 Net income 13,220 356,009 114,670 652,352 Less: Net income attributable to noncontrolling interests (157) 489 (130) 799 Net income (loss) attributable to Pilgrim’s Pride Corporation $13,377 $355,520 $114,800 $651,553 Weighted average shares of common stock outstanding: Basic 237,928 237,381 237,820 237,308 Effect of dilutive common stock equivalents 915 1,046 881 1,046 Diluted 238,843 238,427 238,701 238,354 Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding: Basic $0.06 $1.50 $0.48 $2.75 Diluted $0.06 $1.49 $0.48 $2.73 PILGRIM’S PRIDE CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Six Months Ended June 28, 2026 June 29, 2025 (In thousands)Cash flows from operating activities: Net income $114,670 $652,352 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 241,787 218,022 Asset impairment 22,263 846 Loss on early extinguishment of debt recognized as a component of interest expense 17,569 1,419 Stock-based compensation 11,211 14,185 Deferred income tax benefit (5,691) (19,493)Loan cost amortization 2,689 2,491 Loss on property disposals 2,604 1,990 Accretion of discount related to Senior Notes 1,125 1,211 Gain on equity method investments — (3)Changes in operating assets and liabilities: Trade accounts and other receivables 239,435 (74,961)Inventories (7,604) (105,692)Prepaid expenses and other current assets (17,457) (17,434)Accounts payable, accrued expenses and other current liabilities (127,640) (34,570)Income taxes (6,688) 8,048 Long-term pension and other postretirement obligations 1,259 (1,469)Other operating assets and liabilities (17,686) (24,839)Cash provided by operating activities 471,846 622,103 Cash flows from investing activities: Acquisitions of property, plant and equipment (465,189) (259,283)Proceeds from property disposals 10,375 2,912 Business acquisitions (3,073) — Cash used in investing activities (457,887) (256,371)Cash flows from financing activities: Payments on revolving line of credit, long-term borrowings and finance lease obligations (313,312) (90,654)Proceeds from revolving line of credit and long-term borrowings 73,667 — Payments on early extinguishment of debt (14,548) (2,120)Payments for dividend — (1,495,497)Cash used in financing activities (254,193) (1,588,271)Effect of exchange rate changes on cash and cash equivalents (1,697) 37,700 Increase (decrease) in cash, cash equivalents and restricted cash (241,931) (1,184,839)Cash, cash equivalents and restricted cash, beginning of period 640,235 2,043,158 Cash, cash equivalents and restricted cash, end of period $398,304 $858,319 PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)
“EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses (gains), (2) costs related to litigation settlements, (3) restructuring activities losses, (4) asset impairment, and (5) net income (loss) attributable to noncontrolling interest. EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.
PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands)Net income $13,220 $356,009 $114,670 $652,352)Add: Interest expense, net(a) 46,110 31,451 77,087 48,236Income tax expense 8,572 119,573 38,942 213,672Depreciation and amortization 123,306 113,504 241,787 218,022EBITDA 191,208 620,537 472,486 1,132,282Add: Foreign currency transaction losses (gains)(b) (1,338) 4,892 (416) 2,839Litigation settlements(c) 135,711 58,464 158,905 65,714Restructuring activities losses(d) 8,699 3,499 11,464 20,111Asset impairment(e) 25,558 — 25,558 —Minus: Net income (loss) attributable to noncontrolling interest(e) (157) 489 (130) 799Adjusted EBITDA $359,995 $686,903 $668,127 $1,220,147 (a) Interest expense, net, consists of interest expense less interest income.
(b) Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c) This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d) Restructuring activities losses are related to costs incurred, such as severance.
(e) Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
The summary unaudited consolidated income statement data for the 12 months ended June 28, 2026 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 28, 2026 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 28, 2025 and (2) the applicable unaudited consolidated income statement data for the six months ended June 28, 2026.
PILGRIM'S PRIDE CORPORATIONReconciliation of LTM Adjusted EBITDA(Unaudited) Three Months Ended LTM Ended June 28, 2026 September 28, 2025 December 28, 2025 March 29, 2026 June 28, 2026 (In thousands)Net income $343,061 $87,931 $101,450 $13,220 $545,662Add: Interest expense, net 28,990 33,044 30,977 46,110 139,121Income tax expense 118,319 86,803 30,370 8,572 244,064Depreciation and amortization 116,426 121,709 118,481 123,306 479,922EBITDA 606,796 329,487 281,278 191,208 1,408,769Add: Foreign currency transaction losses (gains) 5,169 (1,231) 922 (1,338) 3,522Litigation settlements 19,582 77,363 23,194 135,711 255,850Restructuring activities losses 1,779 9,464 2,765 8,699 22,707Asset impairment — — — 25,558 25,558Minus: Net income (loss) attributable to noncontrolling interest 248 (62) 27 (157) 56Adjusted EBITDA $633,078 $415,145 $308,132 $359,995 $1,716,350 EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
PILGRIM'S PRIDE CORPORATIONReconciliation of EBITDA Margin(Unaudited) Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands, except percent of net sales)Net income $13,220 $356,009 $114,670 $652,352 0.29% 7.48% 1.25% 7.08%Add: Interest expense, net 46,110 31,451 77,087 48,236 0.99% 0.66% 0.84% 0.52%Income tax expense 8,572 119,573 38,942 213,672 0.19% 2.51% 0.43% 2.32%Depreciation and amortization 123,306 113,504 241,787 218,022 2.66% 2.38% 2.64% 2.36%EBITDA 191,208 620,537 472,486 1,132,282 4.13% 13.03% 5.16% 12.28%Add: Foreign currency transaction losses (gains) (1,338) 4,892 (416) 2,839 (0.03)% 0.10% —% 0.03%Litigation settlements 135,711 58,464 158,905 65,714 2.94% 1.23% 1.72% 0.71%Restructuring activities losses 8,699 3,499 11,464 20,111 0.19% 0.07% 0.13% 0.22%Asset impairment 25,558 — 25,558 — 0.55% —% 0.28% —%Minus: Net income (loss) attributable to noncontrolling interest (157) 489 (130) 799 —% 0.01% —% 0.01%Adjusted EBITDA $359,995 $686,903 $668,127 $1,220,147 7.78% 14.42% 7.29% 13.23% Net sales $4,626,230 $4,757,365 $9,158,863 $9,220,374 Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Three Months Ended Three Months Ended June 28, 2026 June 29, 2025 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands)Net income (loss)$(44,045) $46,969 $10,296 $13,220 $239,262 $54,880 $61,867 $356,009Add: Interest expense, net(a) 47,963 (1,510) (343) 46,110 35,651 (174) (4,026) 31,451Income tax expense (benefit) (13,610) 15,244 6,938 8,572 78,204 16,001 25,368 119,573Depreciation and amortization 79,972 36,598 6,736 123,306 71,149 36,929 5,426 113,504EBITDA 70,280 97,301 23,627 191,208 424,266 107,636 88,635 620,537Add: Foreign currency transaction losses (gains)(b) (1) (169) (1,168) (1,338) 4 685 4,203 4,892Litigation settlements(c) 135,711 — — 135,711 58,464 — — 58,464Restructuring activities losses(d) — 8,699 — 8,699 — 3,499 — 3,499Asset impairment(e) 25,558 — — 25,558 — — — —Minus: Net income (loss) attributable to noncontrolling interest — — (157) (157) — — 489 489Adjusted EBITDA$231,548 $105,831 $22,616 $359,995 $482,734 $111,820 $92,349 $686,903 (a) Interest expense, net, consists of interest expense less interest income.
(b) Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c) This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d) Restructuring activities losses are related to costs incurred, such as severance.
(e) Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Six Months Ended Six Months Ended June 28, 2026 June 29, 2025 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands) (In thousands)Net income (loss)$(2,211) $100,254 $16,627 $114,670 $461,558 $97,030 $93,764 $652,352Add: Interest expense, net(a) 81,826 (3,619) (1,120) 77,087 61,218 (2,078) (10,904) 48,236Income tax expense (benefit) (1,495) 30,573 9,864 38,942 149,216 25,923 38,533 213,672Depreciation and amortization 154,477 74,120 13,190 241,787 137,535 70,066 10,421 218,022EBITDA 232,597 201,328 38,561 472,486 809,527 190,941 131,814 1,132,282Add: Foreign currency transaction losses (gains)(b) (1) (1,139) 724 (416) 3 313 2,523 2,839Litigation settlements(c) 158,905 — — 158,905 65,714 — — 65,714Restructuring activities losses(d) — 11,464 — 11,464 — 20,111 — 20,111Asset impairment(d) 25,558 — — 25,558 — — — —Minus: Net income (loss) attributable to noncontrolling interest — — (130) (130) — — 799 799Adjusted EBITDA$417,059 $211,653 $39,415 $668,127 $875,244 $211,365 $133,538 $1,220,147 (a) Interest expense, net, consists of interest expense less interest income.
(b) Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c) This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d) Restructuring activities losses are related to costs incurred, such as severance.
(e) Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:
PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted Operating Income(Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands)GAAP operating income (loss), U.S. operations$(11,112) $354,987 $75,797 $673,793 Litigation settlements 135,711 58,464 158,905 65,714 Asset impairment 25,558 — 25,558 — Adjusted operating income, U.S. operations$150,157 $413,451 $260,260 $739,507 Adjusted operating income margin, U.S. operations 5.7% 14.7% 4.9% 13.3% Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands)GAAP operating income, Europe operations$60,551 $70,419 $125,306 $119,490 Restructuring activities losses 8,699 3,499 11,464 20,111 Adjusted operating income, Europe operations$69,250 $73,918 $136,770 $139,601 Adjusted operating income margin, Europe operations 5.0% 5.4% 5.0% 5.4% Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands)GAAP operating income, Mexico operations$16,511 $86,933 $27,403 $123,538 No adjustments — — — — Adjusted operating income, Mexico operations$16,511 $86,933 $27,403 $123,538 Adjusted operating income margin, Mexico operations 2.8% 15.4% 2.4% 11.7% Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:
PILGRIM'S PRIDE CORPORATIONReconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin(Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In percent)GAAP operating income (loss) margin, U.S. operations(0.4)% 12.6% 1.4% 12.1%Litigation settlements5.1% 2.1% 3.0% 1.2%Asset impairment1.0% —% 0.5% —%Adjusted operating income margin, U.S. operations5.7% 14.7% 4.9% 13.3% Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In percent)GAAP operating income margin, Europe operations4.4% 5.1% 4.6% 4.6%Restructuring activities losses0.6% 0.3% 0.4% 0.8%Adjusted operating income margin, Europe operations5.0% 5.4% 5.0% 5.4% Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In percent)GAAP operating income margin, Mexico operations2.8% 15.4% 2.4% 11.7%No adjustments—% —% —% —%Adjusted operating income margin, Mexico operations2.8% 15.4% 2.4% 11.7% Adjusted net income attributable to Pilgrim's Pride Corporation ("Pilgrim's") is calculated by adding to net income attributable to Pilgrim's certain items of expense and deducting from net income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:
PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted Net Income(Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands, except per share data)Net income attributable to Pilgrim's $13,377 $355,520 $114,800 $651,553 Add: Foreign currency transaction losses (gains) (1,338) 4,892 (416) 2,839 Litigation settlements 135,711 58,464 158,905 65,714 Restructuring activities losses 8,699 3,499 11,464 20,111 Asset impairment 25,558 — 25,558 — Loss on early extinguishment of debt recognized as a component of interest expense(a) 17,569 — 17,569 — Adjusted net income attributable to Pilgrim's before tax impact 199,576 422,375 327,880 740,217 Net tax impact of adjustments(b) (45,706) (16,178) (52,305) (21,456)Adjusted net income attributable to Pilgrim's $153,870 $406,197 $275,575 $718,761 Weighted average diluted shares of common stock outstanding 238,843 238,427 238,701 238,354 Adjusted net income attributable to Pilgrim's per common diluted share $0.64 $1.70 $1.15 $3.02 (a) The loss on early extinguishment of debt recognized as a component of interest expense was due to the repurchase of the Senior Notes due 2032 in the second quarter of 2026.
(b) Net tax impact of adjustments represents the tax impact of all adjustments shown above.
Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:
PILGRIM'S PRIDE CORPORATIONReconciliation of GAAP EPS to Adjusted EPS(Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands, except per share data)U.S. GAAP EPS $0.06 $1.49 $0.48 $2.73 Add: Foreign currency transaction losses (gains) — 0.02 — 0.01 Litigation settlements 0.55 0.25 0.66 0.28 Restructuring activities losses 0.04 0.01 0.05 0.08 Asset impairment 0.11 — 0.11 — Loss on early extinguishment of debt recognized as a component of interest expense(a) 0.07 — 0.07 — Adjusted EPS attributable to Pilgrim's before tax impact 0.83 1.77 1.37 3.10 Net tax impact of adjustments(b) (0.19) (0.07) (0.22) (0.08)Adjusted EPS $0.64 $1.70 $1.15 $3.02 Weighted average diluted shares of common stock outstanding 238,843 238,427 238,701 238,354 (a) The loss on early extinguishment of debt recognized as a component of interest expense was due to the repurchase of the Senior Notes due 2032 in the second quarter of 2026.
(b) Net tax impact of adjustments represents the tax impact of all adjustments shown above.
PILGRIM'S PRIDE CORPORATIONSupplementary Geographic Data(Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands)Sources of net sales by country of origin: U.S. $2,649,242 $2,820,385 $5,284,640 $5,563,574Europe 1,389,647 1,371,270 2,741,391 2,602,799Mexico 587,341 565,710 1,132,832 1,054,001Total net sales $4,626,230 $4,757,365 $9,158,863 $9,220,374 Sources of cost of sales by country of origin: U.S. $2,452,286 $2,331,143 $4,891,126 $4,686,710Europe 1,278,722 1,247,137 2,510,115 2,362,362Mexico 555,470 463,790 1,072,380 901,134Total cost of sales $4,286,478 $4,042,070 $8,473,621 $7,950,206 Sources of gross profit by country of origin: U.S. $196,956 $489,242 $393,514 $876,864Europe 110,925 124,133 231,276 240,437Mexico 31,871 101,920 60,452 152,867Total gross profit $339,752 $715,295 $685,242 $1,270,168 Sources of operating income by country of origin: U.S. $(11,112) $354,987 $75,797 $673,793Europe 60,551 70,419 125,306 119,490Mexico 16,511 86,933 27,403 123,538Total operating income $65,950 $512,339 $228,506 $916,821
McGrath (MGRC - Free Report) came out with quarterly earnings of $1.37 per share, missing the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.46 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -6.16%. A quarter ago, it was expected that this business-to-business rental company would post earnings of $1.13 per share when it actually produced earnings of $1.1, delivering a surprise of -2.65%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
McGrath, which belongs to the Zacks Financial - Leasing Companies industry, posted revenues of $221.11 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 6.86%. This compares to year-ago revenues of $235.62 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
McGrath shares have added about 14.3% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for McGrath?While McGrath has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for McGrath was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.82 on $271.03 million in revenues for the coming quarter and $6.35 on $970.46 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Leasing Companies is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Upbound Group (UPBD - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This company that leases furniture and appliances with an option to buy is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of -4.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Upbound Group's revenues are expected to be $1.15 billion, down 0.2% from the year-ago quarter.
Comstock Resources ve 2. čtvrtletí zvýšil produkci o 16 % oproti 1. čtvrtletí na 113,1 Bcfe. Čistý zisk připadající na společnost činil 8,766 mil. USD, tedy 0,03 USD na akcii.
FRISCO, TX, July 29, 2026 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE; NYSE Texas: CRK) today reported financial and operating results for the quarter ended June 30, 2026.
Highlights of 2026's Second Quarter
Return of production growth in quarter with 16% growth over first quarter.Sold a 27% noncontrolling common equity interest in Pinnacle Gas Services LLC ("Pinnacle") for $600 million and used the proceeds to redeem and retire all of Pinnacle's preferred equity securities and its outstanding indebtedness.Turned five Western Haynesville wells to sales in the second quarter with an average lateral length of 9,679 feet and an average per well initial production rate of 33 MMcf per day.Turned twelve Legacy Haynesville wells to sales during the second quarter with an average lateral length of 11,835 feet and an average per well initial production rate of 31 MMcf per day. Five of these wells were horseshoe wells.Second quarter 2026 financial results: Natural gas and oil sales, including realized hedging gains, were $332 million for the quarter.Cash flows from operating activities was $170 million and operating cash flow before changes in working capital was $189 million or $0.65 per share.Net income available to the Company was $9 million, or $0.03 per share and adjusted net income available to the Company was $8 million or $0.03 per share for the quarter.Net income was $15 million and adjusted EBITDAX was $245 million. Financial Results for the Three Months Ended June 30, 2026
Comstock produced 113.1 Bcfe in the second quarter of 2026, which increased 16% from the first quarter of this year and increased 1% from the same period in 2025. During the second quarter of 2026, Comstock realized $2.55 per Mcfe before hedging and $2.93 per Mcfe after hedging. Comstock's natural gas and oil sales in the second quarter of 2026 were $331.6 million (including realized hedging gains of $43.3 million). Cash flows from operating activities in the second quarter of 2026 was $170.2 million. Operating cash flow before changes in working capital generated in the second quarter of 2026 was $188.5 million, and net income available to the Company for the second quarter was $8.8 million or $0.03 per diluted share. The net income available to the Company in the quarter included a pre-tax $1.0 million unrealized gain on hedging contracts held for price risk management resulting from the change in future natural gas prices since the first quarter of 2026. Excluding this item, exploration expense and gain on sale of assets, adjusted net income available to the Company for the second quarter of 2026 was $8.3 million, or $0.03 per diluted share.
Comstock's production cost per Mcfe in the second quarter returned to normal levels and averaged $0.77 per Mcfe, which was comprised of $0.38 for gathering and transportation costs, $0.25 for lease operating costs, $0.06 for production and other taxes and $0.08 for cash general and administrative expenses. Comstock's unhedged operating margin was 70% in the second quarter of 2026 and 74% after hedging.
Financial Results for the Six Months Ended June 30, 2026
For the six months ended June 30, 2026, production was down 7% to 1,166 MMcfe per day compared to the same period in 2025. Comstock realized $3.35 per Mcfe before hedging and $3.18 per Mcfe after hedging for its production of 211.0 Bcfe. Natural gas and oil sales for the six months ended June 30, 2026 totaled $670.2 million (including realized hedging losses of $37.1 million). Cash flows from operating activities for the first six months of 2026 was $442.2 million. Operating cash flow before changes in working capital generated in the first six months of 2026 was $380.4 million, and net income available to the Company was $116.2 million or $0.40 per diluted share. Net income available to the Company for the first six months of 2026 included a pre-tax $83.8 million unrealized gain on hedging contracts held for price risk management. Excluding this item and exploration expense and gain on sale of assets, adjusted net income available to the Company for the six months ended June 30, 2026 was $47.7 million, or $0.16 per diluted share.
Comstock's production cost per Mcfe for the six months ended June 30, 2026 averaged $0.85 per Mcfe, which was comprised of $0.40 for gathering and transportation costs, $0.27 for lease operating costs, $0.09 for production and other taxes and $0.09 for cash general and administrative expenses. Comstock's unhedged operating margin was 75% for the first six months of 2026 and 73% after hedging.
Drilling Results
Comstock drilled 17 (15.6 net) operated horizontal Haynesville/Bossier shale wells in the second quarter of 2026, which had an average lateral length of 11,104 feet. Comstock turned 16 (12.7 net) operated wells to sales in the second quarter of 2026.
Since its last operational update in May 2026, Comstock has turned 17 (13.6 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 31 MMcf per day. The completed lateral length of these wells averaged 11,201 feet. Included in the wells turned to sales were five more successful Western Haynesville wells:
Well
Vertical
Depth
(feet)
Completed
Lateral (feet)
Initial
Production
Rate (MMcf
per day) Ericson KN #1 15,414 7,975 30Jensen WW #1 14,272 9,243 31Glass KG #1 14,972 11,182 35Lotspeich BJ #1 17,903 9,805 34Jones LA #1 16,069 10,191 33 Earnings Call Information
Comstock has planned a conference call for 10:00 a.m. Central Time on July 30, 2026, to discuss the second quarter 2026 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
https://register-conf.media-server.com/register/BIb1b9c89894d24cf390641104a3f40885.
Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/xprpo4xr.
If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on July 30, 2026. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/xprpo4xr.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov.
Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the NYSE and the NYSE Texas under the symbol CRK.
COMSTOCK RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 Revenues: Natural gas sales $287,745 $339,225 $706,020 $751,511 Oil sales 476 741 1,234 1,443 Total natural gas and oil sales 288,221 339,966 707,254 752,954 Gas services 63,481 130,296 229,982 230,162 Gain on sale of assets 1,580 — 3,400 — Total revenues and other operating income 353,282 470,262 940,636 983,116 Operating expenses: Production and ad valorem taxes 7,196 10,555 17,621 21,734 Gathering and transportation 43,331 41,759 85,135 84,376 Lease operating 28,150 31,109 56,431 66,109 Exploration 4,427 — 13,770 2,150 Depreciation, depletion and amortization 167,432 158,379 308,964 326,270 Gas services 63,014 126,714 225,870 243,483 General and administrative 17,151 12,300 35,373 23,380 Total operating expenses 330,701 380,816 743,164 767,502 Operating income 22,581 89,446 197,472 215,614 Other income (expenses): Gain (loss) from derivative financial instruments 44,365 235,847 46,761 (94,492)Other income 259 2,100 522 2,439 Interest expense (55,042) (55,178) (108,103) (110,015)Total other income (expenses) (10,418) 182,769 (60,820) (202,068)Income before income taxes 12,163 272,215 136,652 13,546 (Provision for) benefit from income taxes 2,837 (141,487) (9,153) 1,789 Net income 15,000 130,728 127,499 15,335 Net income attributable to noncontrolling interest (6,234) (5,886) (11,283) (11,771)Net income available to the Company $8,766 $124,842 $116,216 $3,564 Net income per share: Basic $0.03 $0.45 $0.40 $0.05 Diluted $0.03 $0.44 $0.40 $0.05 Weighted average shares outstanding: Basic 291,612 290,604 291,465 290,455 Diluted 291,612 294,247 291,465 294,026 COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Natural gas production (MMcf) 113,069 112,164 210,924 227,193 Oil production (Mbbls) 5 13 16 23 Total production (MMcfe) 113,102 112,238 211,021 227,329 Natural gas sales $287,745 $339,225 $706,020 $751,511 Natural gas hedging settlements (1) 43,333 4,286 (37,055) (3,673)Total natural gas including hedging 331,078 343,511 668,965 747,838 Oil sales 476 741 1,234 1,443 Total natural gas and oil sales including hedging $331,554 $344,252 $670,199 $749,281 Average natural gas price (per Mcf) $2.54 $3.02 $3.35 $3.31 Average natural gas price including hedging (per Mcf) $2.93 $3.06 $3.17 $3.29 Average oil price (per barrel) $95.20 $57.00 $77.13 $62.74 Average price (per Mcfe) $2.55 $3.03 $3.35 $3.31 Average price including hedging (per Mcfe) $2.93 $3.07 $3.18 $3.30 Production and ad valorem taxes $7,196 $10,555 $17,621 $21,734 Gathering and transportation 43,331 41,759 85,135 84,376 Lease operating 28,150 31,109 56,431 66,109 Cash general and administrative (2) 8,792 6,771 19,570 13,411 Total production costs $87,469 $90,194 $178,757 $185,630 Production and ad valorem taxes (per Mcfe) $0.06 $0.09 $0.09 $0.10 Gathering and transportation (per Mcfe) 0.38 0.37 0.40 0.37 Lease operating (per Mcfe) 0.25 0.28 0.27 0.29 Cash general and administrative (per Mcfe) 0.08 0.06 0.09 0.06 Total production costs (per Mcfe) $0.77 $0.80 $0.85 $0.82 Unhedged operating margin 70% 73% 75% 75%Hedged operating margin 74% 74% 73% 75% Gas services revenue $63,481 $130,296 $229,982 $230,162 Gas services expenses 63,014 126,714 225,870 243,483 Gas services margin $467 $3,582 $4,112 $(13,321) Natural Gas and Oil Capital Expenditures: Unproved property acquisitions $20,409 $9,932 $39,449 $19,616 Total natural gas and oil properties acquisitions $20,409 $9,932 $39,449 $19,616 Exploration and Development: Development leasehold $4,006 $5,295 $7,374 $8,851 Exploratory drilling and completion 174,359 130,997 349,134 231,104 Development drilling and completion 199,356 123,991 357,915 269,569 Other development costs 12,707 7,919 19,277 8,434 Total exploration and development capital expenditures $390,428 $268,202 $733,700 $517,958 (1) Included in gain (loss) from derivative financial instruments in operating results.
(2) Excludes stock-based compensation.
COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 ADJUSTED NET INCOME AVAILABLE TO THE COMPANY: Net income available to the Company $8,766 $124,842 $116,216 $3,564 Unrealized (gain) loss from derivative financial instruments (1,032) (231,561) (83,816) 90,819 Exploration expense 4,427 — 13,770 2,150 Gain on sale of assets (1,580) — (3,400) — Adjustment to income taxes (2,330) 140,873 4,919 (14,419)Adjusted net income available to the Company(1) $8,251 $34,154 $47,689 $82,114 Adjusted net income available to the Company per share(2) $0.03 $0.12 $0.16 $0.28 Diluted shares outstanding 291,612 294,247 291,465 294,026 ADJUSTED EBITDAX: Net income $15,000 $130,728 $127,499 $15,335 Interest expense 55,042 55,178 108,103 110,015 Income taxes (2,837) 141,487 9,153 (1,789)Depreciation, depletion, and amortization 167,432 158,379 308,964 326,270 Exploration 4,427 — 13,770 2,150 Unrealized (gain) loss from derivative financial instruments (1,032) (231,561) (83,816) 90,819 Stock-based compensation 8,359 5,529 15,803 9,971 Gain on sale of assets (1,580) — (3,400) — Total Adjusted EBITDAX (3) $244,811 $259,740 $496,076 $552,771 OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL(4): Cash flows from operating activities $170,205 $347,564 $442,170 $522,310 Increase (decrease) in accounts receivable 11,542 (34,978) (61,952) (1,318)Increase (decrease) in other current assets 12,148 (25,322) 2,949 (25,881)Increase in accounts payable and accrued expenses (5,390) (77,628) (2,764) (46,487)Operating cash flow before changes in working capital $188,505 $209,636 $380,403 $448,624 (1) Adjusted net income available to the Company is presented because of its acceptance by investors and by Comstock management as an indicator of the Company's profitability excluding non-cash unrealized gains and losses on derivative financial instruments, exploration expense and other unusual items.
(2) Adjusted net income available to the Company per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units pursuant to the treasury stock method.
(3) Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock's results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized gains and losses on derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.
(4) Operating cash flow before changes in working capital is presented in the earnings release because management believes it to be useful to investors as a measure of operating cash generation of the Company based on the revenues and expenses that were related to the period versus the period when the revenues were received or expenses paid while enhancing comparability across periods. Operating cash flow before changes in working capital is not a measure of Comstock's liquidity or actual cash generation.
COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30,
2026 December 31,
2025 ASSETS Cash and cash equivalents $45,008 $23,930 Accounts receivable 180,593 242,545 Derivative financial instruments 53,156 19,206 Other current assets 59,804 75,257 Total current assets 338,561 360,938 Property and equipment, net 6,756,314 6,215,494 Goodwill 335,897 335,897 Operating lease right-of-use assets 71,684 94,733 Derivative financial instruments 22,230 — $7,524,686 $7,007,062 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $503,111 $501,695 Accrued costs 171,187 153,248 Operating leases 37,598 46,937 Derivative financial instruments — 27,636 Total current liabilities 711,896 729,516 Long-term debt 3,098,770 2,809,066 Deferred income taxes 495,428 437,098 Long-term operating leases 33,570 47,692 Asset retirement obligation 21,444 20,787 Total liabilities 4,361,108 4,044,159 Stockholders' Equity: Common stock 146,810 146,527 Additional paid-in capital 1,191,881 1,376,053 Accumulated earnings 1,240,446 1,124,230 Total stockholders' equity attributable to Comstock 2,579,137 2,646,810 Noncontrolling interest 584,441 316,093 Total stockholders' equity 3,163,578 2,962,903 $7,524,686 $7,007,062
Corcept Therapeutics ve 2. čtvrtletí zvýšila tržby na 256,1 milionu USD a čistý zisk na 43 milionů USD. Firma zároveň zvedla celoroční výhled tržeb na 1,1 až 1,2 miliardy USD.
3 Biopharmaceutical Stocks Bucking the Sell-OffCorcept Therapeutics NASDAQ: CORT reported second-quarter 2026 revenue of $256.1 million, up 32% from the prior-year period, as sales from its Cushing’s syndrome franchise increased and its newly launched ovarian cancer therapy LIFYORLI contributed $47.6 million in its first quarter of availability.
Net income rose to $43 million from $35 million a year earlier. Chief Financial Officer Atabak Mokari said operating expenses were flat compared with the first quarter, while cash and investments totaled $545 million as of June 30.
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The company raised its full-year 2026 revenue guidance to a range of $1.1 billion to $1.2 billion. Mokari said the updated outlook reflects strength in both Corcept’s endocrinology and oncology businesses.
LIFYORLI Launch Drives Oncology Growth Corcept’s LIFYORLI, approved by the FDA on March 25 for platinum-resistant ovarian cancer, generated $47.6 million in revenue after the company began selling the treatment April 1. Roberto Vieira, president of Corcept’s oncology division, described the launch as one of the strongest for an oncology medication.
Vieira said more than 1,300 patients have started treatment with LIFYORLI and more than 1,000 physicians have prescribed it to at least one patient. He said demand has come from academic and non-teaching hospitals as well as community oncology clinics.
According to the company, more than 70% of combined Medicare, Medicaid and commercial insurance lives had formal coverage policies for LIFYORLI in place as of the call. The National Comprehensive Cancer Network listed the therapy as a preferred regimen 15 days after its approval, Corcept said.
Vieira said the company continues to add patients weekly and is seeking to expand use among additional physicians and practices. He said Corcept expects LIFYORLI’s U.S. annual revenue in platinum-resistant ovarian cancer alone to exceed $1 billion as adoption grows.
In its pivotal ROSELLA study, LIFYORLI combined with nab-paclitaxel chemotherapy met both primary endpoints, according to Chief Executive Officer Joe Belanoff. He said the combination significantly delayed disease progression and extended overall survival compared with nab-paclitaxel alone. The company reported a 35% reduction in the risk of death, corresponding to a hazard ratio of 0.65 and a P value of 0.0004.
Cushing’s Syndrome Demand and Relacorilant Regulatory Update Korlym and authorized generic product revenue totaled $208.6 million during the quarter. Sean Maduck, president of Corcept’s endocrinology division, said the company recorded a record number of new prescriptions, first-time prescribers and patients receiving its Cushing’s syndrome medications.
Maduck attributed growth to increased physician awareness of hypercortisolism, which can contribute to difficult-to-treat diabetes and resistant hypertension. He cited the company’s CATALYST and MOMENTUM studies, which found hypercortisolism in portions of patients screened for those conditions.
In response to analyst questions, Maduck said the specialty-pharmacy transition is behind the company and that second-quarter growth was not primarily driven by clearing a backlog. Rather, he said performance reflected continued service of existing patients and a record number of new enrollments.
Belanoff said the FDA accepted Corcept’s resubmitted new drug application for relacorilant in Cushing’s syndrome and assigned a Prescription Drug User Fee Act date of Dec. 17, 2026. Corcept resubmitted the application June 17 after the FDA requested additional analyses of the data from the company’s original application during an April meeting.
The application is supported by the Phase III GRACE trial and evidence from the Phase III GRADIENT trial, a long-term extension study and earlier development work, Belanoff said. He said the company believes relacorilant demonstrated durable improvement in signs and symptoms of Cushing’s syndrome without certain serious adverse events associated with currently approved medications.
Pipeline Studies Continue Across Cancer, MASH and ALS Corcept is evaluating relacorilant with chemotherapy in several solid tumors. Belanoff said one arm of the BELLA study in platinum-resistant ovarian cancer is expected to produce results this year, while additional BELLA arms in platinum-sensitive ovarian cancer and endometrial cancer, along with the STELLA cervical cancer trial and TRIDENT first-line pancreatic cancer trial, are expected to report results by the end of 2027.
The company also initiated the Phase Ib SYNERGY study of nenicorilant with nivolumab across a range of solid tumors, with results expected by the end of next year.
Outside oncology, Corcept said its 175-patient Phase IIb MONARCH study of miricorilant in metabolic dysfunction-associated steatohepatitis, or MASH, has completed enrollment and is expected to produce data later this year. Positive results could support advancement to Phase III, Belanoff said.
For ALS, the company is conducting a dose-titration study of dazucorilant to improve gastrointestinal tolerability ahead of a planned pivotal trial expected to begin early next year. Belanoff cited Phase II DAZALS results showing reduced risk of death among patients receiving the 300-milligram dose, while noting that non-serious gastrointestinal distress accounted for most treatment discontinuations.
About Corcept Therapeutics (NASDAQ:CORT)Corcept Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing drugs that modulate the effects of cortisol, a hormone implicated in a range of severe metabolic, oncologic and psychiatric disorders. The company's scientific platform centers on selectively targeting the glucocorticoid receptor to counteract the harmful consequences of excess cortisol, a strategy designed to address diseases with significant unmet medical needs.
The company's flagship marketed product, Korlym (mifepristone), is approved in the United States for the treatment of hyperglycemia secondary to Cushing's syndrome in patients who have type 2 diabetes or glucose intolerance and are not candidates for surgery.
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Churchill Downs ve 2. čtvrtletí zvýšil čisté výnosy na rekordních 980 milionů USD a čistý zisk přiřaditelný CDI na 241 milionů USD. Adjusted EBITDA dosáhl rekordních 477 milionů USD.
LOUISVILLE, Ky., July 29, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company," "CDI," "we") today reported business results for the quarter ended June 30, 2026.
Company Highlights
Second quarter 2026 financial results, as compared to the prior year quarter: All-time record net revenue of $980 million, up $46 million or 5%Net income attributable to CDI of $241 million, up $24 million or 11%All-time record Adjusted EBITDA of $477 million, up $26 million or 6% Churchill Downs Racetrack ran the 152nd Kentucky Derby with all-time record Derby Week contribution to Adjusted EBITDA. All-time record all-sources wagering for Kentucky Derby WeekHighest peak viewership of 24.4 million, up 12% vs. prior year and highest average viewership of 19.6 million, up 11% vs. prior year152nd Kentucky Oaks in primetime for the first time with 2.4 million viewers and record all sources wagering for the Kentucky Oaks race day card We ended second quarter of 2026 with net bank leverage of 3.7x. CONSOLIDATED RESULTS
Second Quarter(in millions, except per share data)2026
2025
Net revenue$980 $934Net income attributable to CDI$241 $217Diluted EPS attributable to CDI$3.42 $2.99Adjusted net income attributable to CDI(a)$242 $224Adjusted Diluted EPS(a)$3.45 $3.10Adjusted EBITDA(a)$477 $451 (a) This is a non-GAAP measure. See explanation of non-GAAP measures below. SEGMENT RESULTS
The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments. All comparisons are against the applicable prior year period unless otherwise noted.
Live and Historical Racing
Second Quarter(in millions)2026
2025
Revenue$575 $541Adjusted EBITDA 318 297 Second quarter 2026 revenue increased $34 million due to a $21 million increase from Churchill Downs Racetrack, a $12 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue. The Kentucky HRM increase was due to a $5 million increase from our Southwestern Kentucky venues, a $3 million increase from our Northern Kentucky venues, a $3 million increase from our Western Kentucky venues, and a $1 million increase from our Louisville venues. The Virginia HRM increase was due to a $5 million net increase primarily from our Northern Virginia venues, partially offset by a $4 million net decrease from our Central Virginia venues primarily from increased competition.
Second quarter 2026 Adjusted EBITDA increased $21 million due to a $16 million increase from Churchill Downs Racetrack, a $6 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues, partially offset by a $2 million decrease at our New Hampshire venues primarily due to the planned closure of our temporary Casino Salem venue during the construction of the Rockingham Grand Casino venue. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue, partially offset by higher operating expenses. The Kentucky HRM increase was due to a $2 million increase from our Northern Kentucky venues, a $2 million increase from our Southwestern Kentucky venues, and a $2 million increase from our Western Kentucky venues. The Virginia HRM increase was primarily due to a $4 million net increase from our Northern Virginia venues, a $1 million increase from our Western Virginia venue, and a $1 million increase from our Southern Virginia venues, partially offset by a $5 million net decrease from our Central Virginia venues primarily from increased competition.
Wagering Services and Solutions
Second Quarter(in millions)2026
2025
Revenue$178 $168Adjusted EBITDA 52 48 Second quarter 2026 revenue increased $10 million due to $9 million growth in our Horse Racing business from record-breaking Derby Week wagering and a $1 million increase from our Exacta business.
Second quarter 2026 Adjusted EBITDA increased $4 million due to a $3 million increase from our Horse Racing business and a $1 million increase from our Exacta business.
Gaming
Second Quarter(in millions)2026
2025
Revenue$270 $266Adjusted EBITDA 133 127 Second quarter 2026 revenue increased $4 million primarily due to an $8 million increase primarily from our New York, Indiana, and Maryland properties, partially offset by a $4 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025.
Second quarter 2026 Adjusted EBITDA increased $6 million. Our equity investments increased $4 million from strong performance at Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio. Our wholly-owned gaming properties increased $4 million primarily from strong performance at our New York venue, partially offset by a $2 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025.
All Other
Second Quarter(in millions) 2026 2025 Revenue$2 $2 Adjusted EBITDA (26) (21) Second quarter 2026 revenue is consistent with the prior year. All intercompany captive revenue is eliminated in consolidation.
Second quarter 2026 Adjusted EBITDA decreased $5 million primarily due to a reduction of corporate legal-related fees in the prior year quarter and claim development within our captive insurance company.
NET INCOME ATTRIBUTABLE TO CDI
The Company's second quarter 2026 net income attributable to CDI was $241 million compared to $217 million in the prior year quarter.
The following factors impacted the comparability of the Company's second quarter 2026 net income to the prior year quarter:
a $4 million after-tax decrease in transaction, pre-opening, and other expenses; anda $2 million after-tax impairment charge in the prior year quarter related to a write-off of obsolete HRMs in Virginia. Excluding the items above, second quarter 2026 adjusted net income attributable to CDI increased $18 million primarily due to the following:
a $10 million after-tax increase primarily driven by the results of our operations;a $4 million after-tax decrease in interest expense; anda $4 million after-tax increase in equity income from our unconsolidated affiliates.
Conference Call
A conference call regarding this news release is scheduled for Thursday, July 30, 2026 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at http://ir.churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, July 30, 2026. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com.
Use of Non-GAAP Measures
In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA.
The Company uses non-GAAP measures as key performance measures of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company's core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are supplemental measures of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results.
We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.
Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interests; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses.
Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interests.
Adjusted EBITDA excludes:
Transaction expense, net, which includes: Acquisition, disposition, and property sale related charges; andOther transaction expense, including legal, accounting, and other deal-related expense; Stock-based compensation expense;Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs;Asset impairments, net;Gain on property sales;Legal reserves;Pre-opening expense; andOther charges, recoveries, and expenses For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Net Income to Adjusted EBITDA included herewith for additional information.
About Churchill Downs Incorporated
Churchill Downs Incorporated ("CDI") (Nasdaq: CHDN) has created extraordinary entertainment experiences for over 150 years, beginning with the Company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. https://www.churchilldownsincorporated.com/
This news release contains various "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "seek," "should," "will," "scheduled," and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, and related economic matters on our results of operations, financial conditions, and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine ("HRM") manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; cybersecurity risk, including cybersecurity breaches, loss or misuse of our confidential information as a result of a breach including customers’ personal information, or IT system operational disruptions, could lead to government enforcement actions or other litigation; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; reliance on our technology services and catastrophic events, system failures, errors or defects disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates, disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; whether the objective of a strategic alternative review process will be achieved; the terms, structure, benefits and costs of any strategic transaction; the timing of any strategic transaction and whether any strategic transaction will be consummated on the terms proposed or at all; the risk that the announcement or exploration of strategic alternatives could have an adverse effect on our ability to retain key personnel and maintain relationships with partners, suppliers, employees, shareholders and other business relationships; the risk of any unexpected costs or expenses resulting from the exploration of strategic alternatives; the risk of any litigation relating to the exploration of strategic alternatives or any strategic transaction; and other factors described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited) Three Months Ended June 30, Six Months Ended June 30,(in millions, except per common share data) 2026 2025 2026 2025 Net revenue: Live and Historical Racing$543 $510 $840 $783 Wagering Services and Solutions 167 158 276 265 Gaming 270 266 527 529 All Other — — — — Total net revenue 980 934 1,643 1,577 Operating expense: Live and Historical Racing 268 256 467 446 Wagering Services and Solutions 96 91 164 158 Gaming 192 191 380 383 All Other 5 4 10 8 Selling, general and administrative expense 61 61 120 116 Asset impairments, net — 2 — 2 Transaction expense, net 1 2 2 2 Total operating expense 623 607 1,143 1,115 Operating income 357 327 500 462 Other (expense) income: Interest expense, net (70) (75) (142) (147)Equity in income of unconsolidated affiliates 41 37 77 70 Miscellaneous, net — 3 6 3 Total other (expense) income (29) (35) (59) (74)Income from operations before provision for income taxes 328 292 441 388 Income tax provision (86) (74) (116) (93)Net income 242 218 325 295 Net income attributable to noncontrolling interests 1 1 1 1 Net income attributable to
Churchill Downs Incorporated$241 $217 $324 $294 Net income attributable to Churchill Downs Incorporated per common share data: Basic net income$3.43 $3.02 $4.59 $4.02 Diluted net income$3.42 $2.99 $4.58 $3.98 Weighted average shares outstanding: Basic 70 72 70 73 Diluted 70 72 70 73 CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in millions)June 30,
2026 December 31,
2025ASSETS Current assets: Cash and cash equivalents$196 $201 Restricted cash 99 88 Accounts receivable, net 129 93 Income taxes receivable — 17 Other current assets 60 44 Total current assets 484 443 Property and equipment, net 2,911 2,919 Investment in and advances to unconsolidated affiliates 690 685 Goodwill 900 900 Other intangible assets, net 2,513 2,515 Other assets 23 23 Total assets$7,521 $7,485 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable$261 $184 Accrued expenses and other current liabilities 370 400 Income taxes payable 38 — Current deferred revenue 27 55 Current maturities of long-term debt and notes payable 663 63 Dividends payable — 31 Total current liabilities 1,359 733 Long-term debt, net of current maturities and loan origination fees 1,627 1,986 Notes payable, net of current maturities and debt issuance costs 2,483 3,081 Non-current deferred revenue 12 15 Deferred income taxes 562 520 Other liabilities 87 94 Total liabilities 6,130 6,429 Commitments and contingencies Redeemable noncontrolling interest 50 46 Shareholders' equity: Preferred stock — — Common stock 7 — Retained earnings 1,335 1,011 Accumulated other comprehensive loss (1) (1)Total Churchill Downs Incorporated shareholders' equity 1,341 1,010 Total liabilities and shareholders' equity$7,521 $7,485 CHURCHILL DOWNS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,(in millions) 2026 2025 Cash flows from operating activities: Net income$325 $295 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 115 117 Distributions from unconsolidated affiliates 72 63 Equity in income of unconsolidated affiliates (77) (70)Stock-based compensation 13 11 Deferred income taxes 42 4 Asset impairments — 2 Amortization of operating lease assets 3 3 Other 5 4 Changes in operating assets and liabilities: Income taxes 55 81 Deferred revenue (31) (37)Other assets and liabilities (10) 14 Net cash provided by operating activities 512 487 Cash flows from investing activities: Capital maintenance expenditures (38) (32)Capital project expenditures (79) (133)Other (2) (1)Net cash used in investing activities (119) (166)Cash flows from financing activities: Proceeds from borrowings under long-term debt obligations 646 642 Repayments of borrowings under long-term debt obligations (1,006) (547)Payment of dividends (31) (30)Repurchase of common stock — (341)Taxes paid related to net share settlement of stock awards (3) (4)Change in bank overdraft 8 (5)Other (1) (2)Net cash used in financing activities (387) (287)Net increase in cash, cash equivalents and restricted cash 6 34 Cash, cash equivalents and restricted cash, beginning of period 289 252 Cash, cash equivalents and restricted cash, end of period$295 $286 CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited) Three Months Ended June 30, Six Months Ended June 30,(in millions, except per common share data) 2026 2025 2026 2025 GAAP net income attributable to CDI$241 $217 $324 $294 Adjustments, continuing operations: Transaction, pre-opening, and other expense 3 9 9 13 Other charges and recoveries, net (1) (1) (5) (1)Asset impairments, net — 2 — 2 Income tax impact on net income adjustments(a) (1) (3) (1) (4)Total adjustments 1 7 3 10 Adjusted net income attributable to CDI$242 $224 $327 $304 Adjusted diluted EPS$3.45 $3.10 $4.66 $4.15 Weighted average shares outstanding - Diluted 70 72 70 73 (a) The income tax impact for each adjustment is derived by applying the effective tax rate, including current and deferred income tax expense, based upon the jurisdiction and the nature of the adjustment. Three Months Ended June 30, Six Months Ended June 30,(in millions)2026
2025
2026
2025
Total Wagering TwinSpires Horse Racing(a)$634 $609 $1,009 $993 (a) TwinSpires Horse Racing wagering does not include wagering generated by Velocity and national affiliates. CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited) Three Months Ended June 30, Six Months Ended June 30,(in millions) 2026 2025 2026 2025 Net revenue from external customers: Live and Historical Racing: Churchill Downs Racetrack$247 $228 $250 $232 Louisville 59 57 114 109 Northern Kentucky 29 27 65 58 Southwestern Kentucky 49 43 93 84 Western Kentucky 18 16 37 28 Virginia 138 136 271 266 New Hampshire 3 3 10 6 Total Live and Historical Racing$543 $510 $840 $783 Wagering Services and Solutions:$167 $158 $276 $265 Gaming: Florida$24 $26 $48 $51 Iowa 24 23 48 47 Indiana 35 32 68 64 Louisiana 29 32 65 77 Maine 26 28 51 52 Maryland 28 25 49 46 Mississippi 24 24 48 49 New York 51 48 97 91 Pennsylvania 29 28 53 52 Total Gaming$270 $266 $527 $529 All Other — — — — Net revenue from external customers$980 $934 $1,643 $1,577 Intercompany net revenues: Live and Historical Racing$32 $31 $36 $35 Wagering Services and Solutions 11 10 20 19 Gaming — — 5 4 All Other 2 2 4 4 Eliminations (45) (43) (65) (62)Intercompany net revenue$— $— $— $— CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited)
Three Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers Pari-mutuel: Live and simulcast racing$53 $133 $4 $190 $— $190Historical racing(a) 265 — — 265 — 265Racing event-related services 192 — — 192 — 192Gaming(a) 3 4 232 239 — 239Other(a) 30 30 34 94 — 94Total$543 $167 $270 $980 $— $980 Three Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers Pari-mutuel: Live and simulcast racing$54 $125 $4 $183 $— $183Historical racing(a) 252 — 5 257 — 257Racing event-related services 173 — — 173 — 173Gaming(a) 3 4 225 232 — 232Other(a) 28 29 32 89 — 89Total$510 $158 $266 $934 $— $934 (a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $16 million in each of the three months ended June 30, 2026 and 2025. Six Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers Pari-mutuel: Live and simulcast racing$64 $214 $14 $292 $— $292Historical racing(a) 522 — — 522 — 522Racing event-related services 193 — 1 194 — 194Gaming(a) 7 10 450 467 — 467Other(a) 54 52 62 168 — 168Total$840 $276 $527 $1,643 $— $1,643 Six Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other TotalNet revenue from external customers Pari-mutuel: Live and simulcast racing$65 $205 $15 $285 $— $285Historical racing(a) 489 — 14 503 — 503Racing event-related services 174 — 1 175 — 175Gaming(a) 6 8 439 453 — 453Other(a) 49 52 60 161 — 161Total$783 $265 $529 $1,577 $— $1,577 (a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $32 million for the six months ended June 30, 2026 and $30 million for the six months ended June 30, 2025. CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited)
Adjusted EBITDA by segment is comprised of the following: Three Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$575 $178 $270 $1,023 $2 $(45) $980 Pari-mutuel taxes and purses (119) (8) (7) (134) — — (134)Gaming taxes (2) (1) (81) (84) — — (84)Marketing and advertising (16) (6) (8) (30) — — (30)Salaries and benefits (38) (9) (41) (88) — — (88)Content expense (1) (78) (2) (81) — 35 (46)Selling, general and administrative expense (14) (4) (12) (30) (24) — (54)Maintenance, insurance and utilities (13) (3) (9) (25) (3) 2 (26)Gaming equipment rental and technology costs (13) (2) (5) (20) — 8 (12)Food and beverage costs (4) — (4) (8) — — (8)Other operating expense(a) (37) (15) (18) (70) (1) — (71)Equity in income of unconsolidated affiliates — — 50 50 — — 50 Other income — — — — — — — Adjusted EBITDA$318 $52 $133 $503 $(26) $— $477 Three Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$541 $168 $266 $975 $2 $(43) $934 Pari-mutuel taxes and purses (116) (8) (7) (131) — — (131)Gaming taxes (1) (1) (80) (82) — — (82)Marketing and advertising (16) (6) (9) (31) — — (31)Salaries and benefits (38) (9) (43) (90) — — (90)Content expense (2) (76) (2) (80) — 32 (48)Selling, general and administrative expense (10) (5) (11) (26) (22) 1 (47)Maintenance, insurance and utilities (12) (1) (10) (23) (1) 2 (22)Gaming equipment rental and technology costs (12) (1) (5) (18) — 8 (10)Food and beverage costs (4) — (4) (8) — — (8)Other operating expense(a) (33) (13) (16) (62) — — (62)Equity in income of unconsolidated affiliates — — 47 47 — — 47 Other income — — 1 1 — — 1 Adjusted EBITDA$297 $48 $127 $472 $(21) $— $451 Six Months Ended June 30, 2026(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$876 $296 $532 $1,704 $4 $(65) $1,643 Pari-mutuel taxes and purses (195) (12) (18) (225) — — (225)Gaming taxes (4) (1) (156) (161) — — (161)Marketing and advertising (28) (8) (16) (52) — — (52)Salaries and benefits (74) (17) (84) (175) — — (175)Content expense (2) (121) (3) (126) — 44 (82)Selling, general and administrative expense (25) (8) (24) (57) (46) — (103)Maintenance, insurance and utilities (25) (5) (19) (49) (7) 4 (52)Gaming equipment rental and technology costs (27) (3) (9) (39) — 17 (22)Food and beverage costs (8) — (9) (17) — — (17)Other operating expense(a) (57) (24) (35) (116) (1) — (117)Equity in income of unconsolidated affiliates — — 96 96 — — 96 Other income — — 1 1 — — 1 Adjusted EBITDA$431 $97 $256 $784 $(50) $— $734 Six Months Ended June 30, 2025(in millions)Live and Historical Racing Wagering Services and Solutions Gaming Total Segments All Other Eliminations TotalRevenue$818 $284 $533 $1,635 $4 $(62) $1,577 Pari-mutuel taxes and purses (188) (12) (22) (222) — — (222)Gaming taxes (3) (1) (152) (156) — — (156)Marketing and advertising (30) (7) (17) (54) — — (54)Salaries and benefits (70) (17) (87) (174) — — (174)Content expense (3) (120) (4) (127) — 41 (86)Selling, general and administrative expense (21) (10) (22) (53) (43) 1 (95)Maintenance, insurance and utilities (22) (2) (19) (43) (4) 4 (43)Gaming equipment rental and technology costs (24) (2) (9) (35) — 16 (19)Food and beverage costs (8) — (8) (16) — — (16)Other operating expense(a) (50) (24) (33) (107) — — (107)Equity in income of unconsolidated affiliates — — 90 90 — — 90 Other income — — 1 1 — — 1 Adjusted EBITDA$399 $89 $251 $739 $(43) $— $696 (a) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs. CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited) Three Months Ended June 30, Six Months Ended June 30,(in millions) 2026 2025 2026 2025 Reconciliation of Net Income to Adjusted EBITDA: Net income attributable to Churchill Downs Incorporated$241 $217 $324 $294 Net income attributable to noncontrolling interests 1 1 1 1 Net income 242 218 325 295 Adjustments: Depreciation and amortization 59 58 115 117 Interest expense 70 75 142 147 Income tax provision 86 74 116 93 Stock-based compensation expense 8 7 13 11 Pre-opening expense 2 2 5 6 Other expenses, net — 4 2 4 Asset impairments, net — 2 — 2 Transaction expense, net 1 2 2 2 Other income, expense: Interest, depreciation and amortization expense related to equity investments 10 10 19 20 Other charges and recoveries, net (1) (1) (5) (1)Total adjustments 235 233 409 401 Adjusted EBITDA$477 $451 $734 $696 Adjusted EBITDA by segment: Live and Historical Racing$318 $297 $431 $399 Wagering Services and Solutions 52 48 97 89 Gaming 133 127 256 251 Total segment Adjusted EBITDA 503 472 784 739 All Other (26) (21) (50) (43)Total Adjusted EBITDA$477 $451 $734 $696 CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS
(Unaudited) Summarized financial information for our equity investments is comprised of the following:
Summarized Income Statement Three Months Ended June 30, Six Months Ended June 30,(in millions) 2026 2025 2026 2025 Net revenue$228 $216 $444 $421 Operating and SG&A expense 142 135 279 265 Depreciation and amortization 6 6 12 12 Operating income 80 75 153 144 Interest and other expense, net (9) (10) (19) (21)Net income$71 $65 $134 $123 Summarized Balance Sheet(in millions)June 30,
2026 December 31,
2025Assets Current assets$97 $109 Property and equipment, net 309 315 Other assets, net 266 265 Total assets$672 $689 Liabilities and Members' Deficit Current liabilities$102 $89 Long-term debt 765 803 Other liabilities 1 — Members' deficit (196) (203)Total liabilities and members' deficit$672 $689 CHURCHILL DOWNS INCORPORATED
SUPPLEMENTAL INFORMATION
(Unaudited) 2026 capital projects for the Company are as follows:(in millions)ProjectTarget
Completion2026
Planned Spend Live and Historical Racing Segment Churchill Downs RacetrackVictory RunApril 2028$25-30New HampshireRockingham Grand Casino (HRM Venue)Mid-2027$70-80All Other & Completed Projects All Other Projects TBD$30-50Completed Projects Completed$55-60 Total:$180-220 Contact: Sam Ullrich
(502) 638-3906 [email protected]
Churchill Downs Incorporated uzavřela definitivní dohodu o koupi 49% podílu na United Tote od NYRA. Současně NYRA prodloužila smlouvu o službách tote do roku 2035.
LOUISVILLE, Ky., July 29, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN, “CDI,” “Company”) announced today that the Company has signed a definitive agreement to acquire 49% of United Tote Company (“United Tote”) from NYRA Content Management Solutions, LLC, a subsidiary of the New York Racing Association, Inc. (“NYRA”). CDI sold a 49% interest in United Tote to NYRA in April 2024, and NYRA agreed to utilize United Tote for their racetrack and gaming related pari-mutuel wagering systems (“tote services”). Concurrent with this transaction, NYRA has agreed to extend their tote services agreement with United Tote through 2035.
United Tote manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities (“OTBs”), and other wagering operators. United Tote provides totalisator services which accumulate wagers, calculate payoffs, and display wagering data to bettors to CDI-operated racing and gaming facilities as well as third-party racetracks, OTBs, and other pari-mutuel wagering operators.
This acquisition supports the CDI’s long-term strategy to own and vertically integrate key technologies and services related to pari-mutuel wagering and horse racing, while strengthening the Company’s position as a leading B2B distributor of horse racing content and provider of racing services. United Tote also enhances CDI’s ability to develop, deploy, and manage critical horse racing related wagering technology.
The transaction is expected to close by August 5, 2026.
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has created extraordinary entertainment experiences for over 150 years, beginning with the Company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. https://www.churchilldownsincorporated.com/
About The New York Racing Association, Inc.
The New York Racing Association, Inc. (“NYRA”) is a not-for-profit organization franchised by New York State to conduct thoroughbred racing at Aqueduct Racetrack, Belmont Park and Saratoga Race Course. NYRA tracks are the cornerstone of New York’s horse racing economy, which is responsible for 19,000 jobs and more than $3 billion in annual statewide impact.
NYRA is the parent company of NYRA Bets, LLC, the national advanced deposit wagering platform launched in 2016 and currently available to customers in 38 states. NYRA Bets provides bettors the opportunity to wager on tracks worldwide from anywhere at any time. The NYRA Bets app is available for download on iOS and Android at NYRABets.com.
This news release contains various "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "seek," "should," "will," "scheduled," and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, and related economic matters on our results of operations, financial conditions, and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine ("HRM") manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; cybersecurity risk, including cybersecurity breaches, loss or misuse of our confidential information as a result of a breach including customers’ personal information, or IT system operational disruptions, could lead to government enforcement actions or other litigation; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; reliance on our technology services and catastrophic events, system failures, errors or defects disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates, disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; whether the objective of a strategic alternative review process will be achieved; the terms, structure, benefits and costs of any strategic transaction; the timing of any strategic transaction and whether any strategic transaction will be consummated on the terms proposed or at all; the risk that the announcement or exploration of strategic alternatives could have an adverse effect on our ability to retain key personnel and maintain relationships with partners, suppliers, employees, shareholders and other business relationships; the risk of any unexpected costs or expenses resulting from the exploration of strategic alternatives; the risk of any litigation relating to the exploration of strategic alternatives or any strategic transaction; and other factors described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact: Sam UllrichMedia Contact: Breck Thomas-Ross(502) 638-3906(502) [email protected]@kyderby.com
Arm odhaduje výnosy za 2. čtvrtletí na 1,38 miliardy USD, nad odhadem 1,34 miliardy USD, díky silné poptávce po AI čipech. Zisk na akcii čeká 47 centů oproti 43 centům.
SummaryCompaniesSecond-quarter revenue forecast at $1.38 billion versus $1.34 billion estimateSecond-quarter adjusted profit forecast is 47 cents per share versus 43 cents estimateFirst-quarter royalties rise 22% to $715 million while licensing revenue grows 23% to $574 millionJuly 29 (Reuters) - Arm Holdings , signaled strong demand from AI on Wednesday, yet shares slid 8% after hours in choppy trade even though the intellectual property and chip designer forecast second-quarter revenue above Wall Street estimates.
The boom around AI and more recently the demand for agents - programs that can act with little or no human direction - has boosted demand for Arm's chip architecture, which powers an increasing number of data center central processing units (CPUs). Cloud giants such as Alphabet (GOOGL.O), opens new tab and Amazon.com (AMZN.O), opens new tab build custom AI chips, which have boosted the company's licensing revenue and royalties as more complex chips are shipped to data centers.
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"The more inference workloads you run, that creates work that only CPUs can do," Arm CEO Rene Haas told Reuters.
Inference refers to the process of generating an answer when a user queries a chatbot such as Anthropic's Claude.
Arm sells intellectual property that other chip companies license and pay royalties on for each unit shipped, but has recently decided to make its own central processing unit for the data center.
Higher demand from big tech company chips, along with new entrants such as Nvidia (NVDA.O), opens new tab and its Vera processor, helped the company report higher-than-expected revenue, Haas said. Qualcomm also launched its C1000 data center chip, which does not contribute to Arm revenue now but will in the future, he said.
Haas said the company has shipped 1.5 billion Arm cores for the data center — an important data-crunching portion of each chip — in the last six years, but about 30% were shipped in the last nine months.
"Growth is accelerating," Haas said.
Revenue from royalties rose 22% to $715 million in the first quarter, while licensing revenue increased 23% to $574 million.
The company's spending plans and forecast remain unchanged, finance chief Jason Child said during a conference call on Wednesday.
Arm expects smartphone royalties to drop next quarter and forecast second-quarter growth of roughly 10% and 15%, Child said.
POWER-EFFICIENT DESIGNSArm's chip designs are prized for their power efficiency, a critical advantage for data center operators looking to manage the soaring energy costs and heat generated by running massive AI models.
Its AGI CPU, a new AI data center chip unveiled in March, is exceeding initial expectations, with demand surpassing $2 billion across fiscal years 2027 and 2028, the company said. It has already delivered the product to multiple customers.
Cloud firm Oracle (ORCL.N), opens new tab has agreed to buy the new chip, Haas said. The CEO did not disclose the contract value.
"We have new customers in North America and China," Haas said, adding that the company can now secure supply for more than $1 billion worth of chips.
"I feel better about (supply) than I did 90 days ago," he said.
Jefferies analysts forecast sales of the new chip reaching $18 billion in fiscal 2031, surpassing the chip designer's own projection of $15 billion. Haas said the company was not changing any forecasts on Wednesday.
Arm projected second-quarter revenue of $1.38 billion, above analysts' average estimate of $1.34 billion, according to data compiled by LSEG.
The British chip designer expects second-quarter profit of 47 cents per share, adjusted for stock compensation, among other things, compared with analysts' expectations of 43 cents per share.
The company reported revenue of $1.29 billion and adjusted per-share earnings of 45 cents for the first quarter. Analysts expected revenue of $1.26 billion and adjusted profit of 40 cents a share.
Reporting by Juby Babu in Mexico City; Editing by Sahal Muhammed and Rod Nickel and David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron’s magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.
Arm vykázal rekordní první čtvrtletí: zisk 45 centů na akcii i tržby 1,29 miliardy USD překonaly odhady. Firma zároveň čeká ve druhém čtvrtletí tržby 1,33 až 1,48 miliardy USD.
Editor’s Note: This article has been updated to correct Arm’s second-quarter revenue guidance.
ARM stock is moving. Watch the price action here. Arm Q1 Details Arm reported quarterly earnings of 45 cents per share, which beat the consensus estimate of 40 cents by 12.5%, according to Benzinga Pro data.
Quarterly revenue of $1.29 billion beat the analyst estimate of $1.26 billion. Royalty revenue grew 22% to $715 million, with data center royalties more than doubling year over year. Licensing revenue reached $574 million, up 23% year over year.
“Arm delivered a record first quarter, reflecting strong execution across our business and growing demand for the Arm compute platform as AI expands across cloud infrastructure, edge devices and the physical world,” said CEO Rene Haas in a letter to shareholders.
Looking AheadArm expects second quarter adjusted EPS of 43 cents to 51 cents, versus the 43 cent analyst estimate, and revenue in a range of $1.33 billion to $1.48 billion, versus the $1.34 billion estimate.
ARM Stock Price Activity: According to data from Benzinga Pro, Arm stock was down 0.52% to $223.23 in Wednesday’s extended trading.
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
MAA ve 2. čtvrtletí zvýšila zisk na akcii na 1,04 USD, ale Core FFO klesl na 2,08 USD. Firma zároveň snížila celoroční výhled zisku na akcii na 3,96 až 4,20 USD a Core FFO na akcii na 8,41 až 8,65 USD.
, /PRNewswire/ -- Mid-America Apartment Communities, Inc., or MAA (NYSE: MAA), today announced operating results for the three and six months ended June 30, 2026.
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Earnings per common share - diluted
$
1.04
$
0.92
$
2.10
$
2.46
Funds from operations (FFO) per Share - diluted (1)
$
2.10
$
2.19
$
4.32
$
4.39
Core FFO per Share - diluted (1)
$
2.08
$
2.15
$
4.21
$
4.35
(1)
A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO is found later in this release.
Brad Hill, President and Chief Executive Officer, said, "Second quarter Core FFO results exceeded our expectations due to steady demand and continued disciplined expense management. Our focus on new lease pricing resulted in an acceleration in our new lease sequential pricing trends, supported our consistently strong renewal results and delivered blended lease-over-lease pricing that was 20 basis points better year-over-year. As steady demand increasingly outweighs the declining pressure from new deliveries more broadly across our footprint, the improved pricing and operating fundamentals we see in a number of our markets should become more broad-based, supporting an accelerating recovery. Our pricing momentum, operating discipline, and growing contribution from our new developments, position MAA to deliver attractive future earnings growth."
During the second quarter of 2026, MAA's Same Store effective blended lease rate growth was 0.7%, a 20 basis point improvement over the same period in the prior year as well as a 100 basis point improvement on a sequential basis, driven by a 170 basis point improvement in new lease pricing from the first quarter of 2026. As of June 30, 2026, resident turnover in the Same Store Portfolio remained historically low at 39.6% with a low level of move-outs associated with buying single-family homes of 10.9% for the quarter. During the second quarter of 2026, MAA completed the initial lease-up of MAA Cathedral Arts in Dallas, Texas, completed the development of MAA Plaza Midwood located in Charlotte, North Carolina and began construction of a multifamily apartment community in the Kansas City market. During the second quarter of 2026, Mid-America Apartments, L.P. (MAALP), MAA's operating partnership, entered into a unsecured delayed draw term loan (referred to in this release as the DDTL Facility) in the aggregate committed principal amount of up to $350.0 million. The DDTL Facility is scheduled to mature in November 2030. As of June 30, 2026, there was $100.0 million outstanding under the DDTL Facility. During the second quarter of 2026, MAA repurchased 0.4 million shares of its common stock at a weighted average share price of $130.66 for total consideration of $50 million. Same Store Operating Results
Same Store results for the three and six months ended June 30, 2026 as compared to the same periods in the prior year are summarized below:
Three months ended June 30, 2026 vs. 2025
Six months ended June 30, 2026 vs. 2025
Revenues
Expenses
NOI (1)
Average Effective
Rent per Unit
Revenues
Expenses
NOI (1)
Average Effective
Rent per Unit
Same Store Operating Growth
-0.3 %
0.8 %
-1.0 %
-0.2 %
-0.3 %
1.1 %
-1.2 %
-0.2 %
(1)
A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, is found later in this release.
Same Store operating statistics for the three and six months ended June 30, 2026 are summarized below:
Three months ended June 30, 2026
Six months ended June 30, 2026
As of June 30, 2026
Average Effective
Rent per Unit
Average Physical
Occupancy
Average Effective
Rent per Unit
Average Physical
Occupancy
Resident Turnover
Same Store Operating Statistics
$
1,688
95.3 %
$
1,687
95.4 %
39.6 %
Same Store net effective lease pricing statistics for the three and six months ended June 30, 2026 are summarized below:
Same Store Net Effective Lease Pricing Statistics
Three Months Ended
June 30, 2026
Six Months Ended
June 30, 2026
Effective Blended Lease Rate Growth
0.7 %
0.3 %
Effective New Lease Rate Growth
-5.3 %
-6.0 %
Effective Renewal Lease Rate Growth
5.2 %
5.3 %
Acquisition and Disposition Activity
In April 2026, MAA closed on the acquisition of a land parcel located in the Nashville market through its pre-purchase development program, and MAA began construction of a 312-unit multifamily apartment community at the property in July 2026.
In July 2026, MAA closed on the acquisition of a land parcel located in the Northern Virginia market through its pre-purchase development program and plans future development of a 306-unit multifamily apartment community at the property starting in the third quarter of 2026.
In May 2026, MAA closed on the disposition of a 194-unit multifamily apartment community located in the Raleigh, North Carolina market for net proceeds of approximately $40 million, resulting in a gain on the sale of depreciable real estate assets of approximately $35 million.
Development and Lease-up Activity
A summary of MAA's development communities under construction as of the end of the second quarter of 2026 is set forth below (dollars in thousands):
Units as of
Development Costs as of
Expected Project
Total
June 30, 2026
June 30, 2026
Completions By Year
Development
Expected
Costs
Expected
Projects (1)
Total
Delivered
Leased
Total
to Date
Remaining
2026
2027
2028
6
1,749
193
127
$
597,500
$
360,361
$
237,139
2
2
2
(1)
Two of the development projects were leasing as of June 30, 2026.
During the second quarter of 2026, MAA completed the development of MAA Plaza Midwood located in Charlotte, North Carolina and began construction on a 263-unit multifamily apartment community in the Kansas City market.
MAA funded approximately $81 million of costs for current and planned development projects, including predevelopment activities, during the second quarter of 2026.
A summary of the total units, physical occupancy and cost of MAA's lease-up communities as of the end of the second quarter of 2026 is set forth below (dollars in thousands):
Total
As of June 30, 2026
Lease-Up
Total
Physical
Costs
Projects (1)
Units
Occupancy
to Date
5
1,759
74.4
%
$
623,742
(1)
Two of the lease-up projects are expected to stabilize in the third quarter of 2026, two in the fourth quarter of 2026 and one in the third quarter of 2027.
During the second quarter of 2026, MAA completed the lease-up of MAA Cathedral Arts located in Dallas, Texas.
Balance Sheet and Financing Activities
As of June 30, 2026, MAA had $882.8 million of combined cash and available capacity under MAALP's unsecured revolving credit facility.
In June 2026, MAALP entered into the DDTL Facility in the aggregate committed principal amount of up to $350.0 million. Advances of loans under the DDTL Facility may be requested by MAALP in one or more draws (subject to a maximum of five draws) and will be available until December 21, 2026. The DDTL Facility is scheduled to mature in November 2030. Amounts borrowed under the DDTL Facility will bear interest at a variable rate, at MAALP's election, either (1) based upon the Secured Overnight Financing Rate (SOFR) plus an applicable margin ranging from 0.675% to 1.550% based upon MAALP's credit rating or (2) a base rate plus an applicable margin ranging from 0.00% to 0.55% based upon MAALP's credit rating. The DDTL Facility also contains an uncommitted accordion feature that allows MAALP to increase the total amount of unsecured indebtedness under the DDTL Facility to $550.0 million until December 21, 2026. As of June 30, 2026, there was $100.0 million outstanding under the DDTL Facility. MAALP intends to use the loan proceeds for general corporate purposes, including repayment of other debt.
During the second quarter of 2026, MAA repurchased 0.4 million shares of its common stock at a weighted average share price of $130.66 for total consideration of $50 million.
Dividends and distributions paid on shares of common stock and noncontrolling interests during the second quarter of 2026 were $182.5 million, as compared to $181.8 million for the same period in the prior year.
Balance sheet highlights as of June 30, 2026 are summarized below (dollars in billions):
Total debt to adjusted
total assets (1)
Net Debt/Adjusted
EBITDAre (2)
Total debt
outstanding
Average effective
interest rate
Fixed rate debt as a %
of total debt
Total debt average
years to maturity
31.2 %
4.5x
$
5.7
3.9 %
86.6 %
6.0
(1)
As defined in the covenants for the unsecured senior notes issued by MAALP.
(2)
Adjusted EBITDAre is calculated for the trailing twelve month period ended June 30, 2026. A reconciliation of Unsecured notes payable, net and Secured notes payable, net to Net Debt and a reconciliation of Net income to Adjusted EBITDAre are found later in this release.
130th Consecutive Quarterly Common Dividend Declared
MAA declared its 130th consecutive quarterly common dividend, which will be paid on July 31, 2026 to holders of record on July 15, 2026. The current annual dividend rate is $6.12 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA's financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA's Board of Directors deems relevant. MAA's Board of Directors may modify the dividend policy from time to time.
2026 Earnings and Same Store Guidance
MAA is updating its prior 2026 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance. MAA expects to provide updates to its 2026 Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share guidance on a quarterly basis.
FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA's definition of FFO is in accordance with the National Association of Real Estate Investment Trusts', or NAREIT's, definition, and Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.
2026 Guidance
Previous Range
Previous Midpoint
Updated Range
Updated Midpoint
Earnings:
Full Year 2026
Full Year 2026
Full Year 2026
Full Year 2026
Earnings per common share - diluted
$4.18 to $4.50
$4.34
$3.96 to $4.20
$4.08
Core FFO per Share - diluted
$8.37 to $8.69
$8.53
$8.41 to $8.65
$8.53
Core AFFO per Share - diluted
$7.34 to $7.66
$7.50
$7.38 to $7.62
$7.50
MAA Same Store Portfolio:
Property revenue growth
-0.20% to 1.30%
0.55 %
-0.20% to 0.40%
0.10 %
Property operating expense growth
1.90% to 3.40%
2.65 %
1.25% to 2.25%
1.75 %
NOI growth
-1.70% to 0.30%
-0.70 %
-1.70% to 0.10%
-0.90 %
MAA expects Core FFO for the third quarter of 2026 to be in the range of $2.04 to $2.16 per diluted Share, or $2.10 per diluted Share at the midpoint. The projected difference from Core FFO per diluted Share for the second quarter of 2026 to the midpoint of MAA's guidance for the third quarter of 2026 is summarized below:
Core FFO per diluted Share
Q2 2026 per diluted Share reported results
$
2.08
Same Store NOI
0.01
Non Same Store NOI
0.02
Interest expense
(0.01)
Q3 2026 per diluted Share guidance midpoint
$
2.10
MAA does not forecast Earnings per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release.
Supplemental Material and Conference Call
Supplemental Data to this release can be found on the "For Investors" page of the MAA website at www.maac.com. MAA will host a conference call to further discuss second quarter results on July 30, 2026, at 9:00 AM Central Time. The conference call-in number is (888) 596-4144. You may also join the live webcast of the conference call by accessing the "For Investors" page of the MAA website at www.maac.com. MAA's filings with the Securities and Exchange Commission (SEC) are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.
About MAA
MAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of June 30, 2026, MAA had ownership interest in 104,698 apartment units, including communities in development, across 16 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at [email protected], or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.
Forward-Looking Statements
This release (as well as the Supplemental Data to 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. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead are statements related to expectations, projections, intentions, assumptions and beliefs regarding the future. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "forecasts," "projects," "assumes," "will," "may," "could," "should," "budget," "target," "outlook," "proforma," "opportunity," "guidance" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding quarterly and full year 2026 guidance (including earnings guidance, Same Store Portfolio guidance and other related projections and assumptions), development costs for our development communities, timelines for occupancy, completion and stabilization of our development communities, and timelines for stabilization of our lease-up communities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance, achievements or outcomes to be materially different from the future results, performance, achievements or outcomes expressed or implied by such forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such statements should not be regarded as a representation by us or any other person that the results, performance, achievements or outcomes described in such statements will be achieved.
The following factors, among others, could cause our actual results, performance, achievements or outcomes to differ materially from those expressed or implied in the forward-looking statements: adverse effects on occupancy levels and rental revenues due to unfavorable market and economic conditions; adverse changes in real estate markets, including changes in supply and/or demand for multifamily housing or increased competition from alternative housing options; failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results; unexpected capital needs; material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors; losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits; ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures; level and volatility of interest or capitalization rates or capital market conditions; changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations; extreme weather and natural disasters; disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events; legal proceedings or class action lawsuits; and other risks identified in our annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 6, 2026, our quarterly reports on Form 10-Q, other reports we file with the SEC and in other documents that we publicly disseminate.
Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this release to reflect events, circumstances or changes in expectations after the date of this release.
FINANCIAL HIGHLIGHTS
Dollars in thousands, except per share data
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Rental and other property revenues
$
555,127
$
549,902
$
1,108,852
$
1,099,197
Net income available for MAA common shareholders
$
120,828
$
107,205
$
244,265
$
287,956
Total NOI (1)
$
336,407
$
335,248
$
684,560
$
683,190
Earnings per common share: (2)
Basic
$
1.04
$
0.92
$
2.10
$
2.46
Diluted
$
1.04
$
0.92
$
2.10
$
2.46
Funds from operations per Share - diluted: (2)
FFO (1)
$
2.10
$
2.19
$
4.32
$
4.39
Core FFO (1)
$
2.08
$
2.15
$
4.21
$
4.35
Core AFFO (1)
$
1.77
$
1.85
$
3.74
$
3.89
Dividends declared per common share
$
1.530
$
1.515
$
3.060
$
3.030
Dividends/Core FFO (diluted) payout ratio
73.6
%
70.5
%
72.7
%
69.7
%
Dividends/Core AFFO (diluted) payout ratio
86.4
%
81.9
%
81.8
%
77.9
%
Consolidated interest expense
$
53,132
$
45,111
$
104,541
$
90,272
Debt discount and debt issuance cost amortization
(1,776)
(1,624)
(3,535)
(3,241)
Capitalized interest
4,408
5,048
8,280
10,153
Total interest incurred
$
55,764
$
48,535
$
109,286
$
97,184
(1)
The following reconciliations are found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for MAA common shareholders to FFO, Core FFO and Core AFFO.
(2)
See the "Share and Unit Data" section for additional information.
Dollars in thousands, except share price
June 30, 2026
December 31, 2025
Gross Assets (1)
$
18,238,708
$
17,921,913
Gross Real Estate Assets (1)
$
17,968,887
$
17,662,513
Total debt
$
5,691,901
$
5,405,372
Common shares and units outstanding
118,944,528
119,819,916
Share price
$
138.94
$
138.91
Book equity value
$
5,601,501
$
5,839,645
Market equity value
$
16,526,153
$
16,644,185
Net Debt/Adjusted EBITDAre (2)
4.5x
4.3x
(1)
Reconciliations of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets are found later in this release.
(2)
Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. The following reconciliations are found later in this release: (i) Unsecured notes payable, net and Secured notes payable, net to Net Debt; and (ii) Net income to EBITDA, EBITDAre and Adjusted EBITDAre.
CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share data (Unaudited)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Revenues:
Rental and other property revenues
$
555,127
$
549,902
$
1,108,852
$
1,099,197
Expenses:
Operating expenses, excluding real estate taxes and insurance
136,525
132,465
264,138
257,420
Real estate taxes and insurance
82,195
82,189
160,154
158,587
Depreciation and amortization
162,548
153,521
324,418
305,871
Total property operating expenses
381,268
368,175
748,710
721,878
Property management expenses
17,955
17,511
40,416
38,089
General and administrative expenses
15,146
12,813
31,862
28,432
Interest expense
53,132
45,111
104,541
90,272
(Gain) loss on sale of depreciable real estate assets
(35,255)
69
(55,419)
(71,842)
Other non-operating income
(2,102)
(4,722)
(18,107)
(5,556)
Income before income tax expense
124,983
110,945
256,849
297,924
Income tax expense
(454)
(600)
(5,975)
(1,638)
Income from continuing operations before real estate joint venture activity
124,529
110,345
250,874
296,286
Income from real estate joint venture
289
530
555
995
Net income
124,818
110,875
251,429
297,281
Net income attributable to noncontrolling interests
3,068
2,748
5,320
7,481
Net income available for shareholders
121,750
108,127
246,109
289,800
Dividends to MAA Series I preferred shareholders
922
922
1,844
1,844
Net income available for MAA common shareholders
$
120,828
$
107,205
$
244,265
$
287,956
Earnings per common share - basic:
Net income available for common shareholders
$
1.04
$
0.92
$
2.10
$
2.46
Earnings per common share - diluted:
Net income available for common shareholders
$
1.04
$
0.92
$
2.10
$
2.46
SHARE AND UNIT DATA
Shares and units in thousands
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Net Income Shares (1)
Weighted average common shares - basic
116,079
116,976
116,349
116,908
Effect of dilutive securities
65
187
96
241
Weighted average common shares - diluted
116,144
117,163
116,445
117,149
Funds From Operations Shares And Units
Weighted average common shares and units - basic
119,009
119,950
119,284
119,932
Weighted average common shares and units - diluted
119,094
120,015
119,360
119,995
Period End Shares And Units
Common shares at June 30,
116,015
117,071
116,015
117,071
Operating Partnership units at June 30,
2,930
2,950
2,930
2,950
Total common shares and units at June 30,
118,945
120,021
118,945
120,021
(1)
For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Condensed Consolidated Financial Statements in MAA's Quarterly Report on Form 10-Q for the three months ended June 30, 2026, expected to be filed with the SEC on or about July 30, 2026.
CONSOLIDATED BALANCE SHEETS
Dollars in thousands (Unaudited)
June 30, 2026
December 31, 2025
Assets
Real estate assets:
Land
$
2,176,947
$
2,129,401
Buildings and improvements and other
15,218,047
14,852,509
Development and capital improvements in progress
406,830
426,759
17,801,824
17,408,669
Less: Accumulated depreciation
(6,244,124)
(5,914,017)
11,557,700
11,494,652
Undeveloped land
73,359
73,359
Investment in real estate joint venture
41,868
41,313
Real estate assets, net
11,672,927
11,609,324
Cash and cash equivalents
51,836
60,258
Restricted cash
13,168
13,717
Other assets
256,653
245,683
Assets held for sale
—
46,401
Total assets
$
11,994,584
$
11,975,383
Liabilities and equity
Liabilities:
Unsecured notes payable, net
$
5,331,445
$
5,044,979
Secured notes payable, net
360,456
360,393
Accrued expenses and other liabilities
701,182
730,366
Total liabilities
6,393,083
6,135,738
Redeemable common stock
18,907
20,402
Shareholders' equity:
Preferred stock
9
9
Common stock
1,157
1,166
Additional paid-in capital
7,283,817
7,401,962
Accumulated distributions in excess of net income
(1,846,433)
(1,734,986)
Accumulated other comprehensive loss
(4,555)
(5,300)
Total MAA shareholders' equity
5,433,995
5,662,851
Noncontrolling interests - Operating Partnership units
136,117
141,503
Total shareholders' equity
5,570,112
5,804,354
Noncontrolling interests - consolidated real estate entities
12,482
14,889
Total equity
5,582,594
5,819,243
Total liabilities and equity
$
11,994,584
$
11,975,383
RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FAD
Amounts in thousands, except per share and unit data
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Net income available for MAA common shareholders
$
120,828
$
107,205
$
244,265
$
287,956
Depreciation and amortization of real estate assets
161,037
152,149
321,530
303,140
(Gain) loss on sale of depreciable real estate assets
(35,255)
69
(55,419)
(71,842)
MAA's share of depreciation and amortization of real estate assets of real estate joint venture
168
167
338
331
Net income attributable to noncontrolling interests
3,068
2,748
5,320
7,481
FFO attributable to common shareholders and unitholders
249,846
262,338
516,034
527,066
(Gain) loss on embedded derivative in preferred shares (1)
(1,091)
(1,693)
483
(1,283)
Loss (gain) on investments, net of tax (1)(2)
1,068
317
(16,169)
(337)
Casualty related (recoveries) and charges, net (1)
(2,299)
(3,346)
2,220
(3,568)
Core FFO attributable to common shareholders and unitholders
247,524
257,616
502,568
521,878
Recurring capital expenditures
(37,242)
(35,343)
(55,990)
(55,449)
Core AFFO attributable to common shareholders and unitholders
210,282
222,273
446,578
466,429
Redevelopment capital expenditures
(31,749)
(15,435)
(42,516)
(32,844)
Revenue enhancing capital expenditures
(23,519)
(20,104)
(38,081)
(35,292)
Commercial capital expenditures
(2,161)
(2,755)
(3,379)
(6,729)
Other capital expenditures
(10,608)
(12,048)
(22,703)
(27,489)
FAD attributable to common shareholders and unitholders
$
142,245
$
171,931
$
339,899
$
364,075
Dividends and distributions paid
$
182,546
$
181,814
$
365,906
$
363,581
Weighted average common shares - diluted
116,144
117,163
116,445
117,149
FFO weighted average common shares and units - diluted
119,094
120,015
119,360
119,995
Earnings per common share - diluted:
Net income available for common shareholders
$
1.04
$
0.92
$
2.10
$
2.46
FFO per Share - diluted
$
2.10
$
2.19
$
4.32
$
4.39
Core FFO per Share - diluted
$
2.08
$
2.15
$
4.21
$
4.35
Core AFFO per Share - diluted
$
1.77
$
1.85
$
3.74
$
3.89
(1)
Included in Other non-operating income in the Consolidated Statements of Operations.
(2)
For the three months ended June 30, 2026 and 2025, loss on investments is presented net of tax benefit of $0.3 million and $0.1 million, respectively. For the six months ended June 30, 2026 and 2025, gain on investments is presented net of tax expense of $4.3 million and $0.1 million, respectively.
RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME
Dollars in thousands
Three Months Ended
Six Months Ended
June 30,
2026
March 31,
2026
June 30,
2025
June 30,
2026
June 30,
2025
Net income available for MAA common shareholders
$
120,828
$
123,437
$
107,205
$
244,265
$
287,956
Depreciation and amortization
162,548
161,870
153,521
324,418
305,871
Property management expenses
17,955
22,461
17,511
40,416
38,089
General and administrative expenses
15,146
16,716
12,813
31,862
28,432
Interest expense
53,132
51,409
45,111
104,541
90,272
(Gain) loss on sale of depreciable real estate assets
(35,255)
(20,164)
69
(55,419)
(71,842)
Other non-operating (income) expense
(2,102)
(16,005)
(4,722)
(18,107)
(5,556)
Income tax expense
454
5,521
600
5,975
1,638
Income from real estate joint venture
(289)
(266)
(530)
(555)
(995)
Net income attributable to noncontrolling interests
3,068
2,252
2,748
5,320
7,481
Dividends to MAA Series I preferred shareholders
922
922
922
1,844
1,844
Total NOI
$
336,407
$
348,153
$
335,248
$
684,560
$
683,190
Same Store NOI
$
316,219
$
328,696
$
319,502
$
644,915
$
652,418
Non-Same Store and Other NOI
20,188
19,457
15,746
39,645
30,772
Total NOI
$
336,407
$
348,153
$
335,248
$
684,560
$
683,190
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre
Dollars in thousands
Three Months Ended
Twelve Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
December 31, 2025
Net income
$
124,818
$
110,875
$
410,714
$
456,566
Depreciation and amortization
162,548
153,521
640,842
622,295
Interest expense
53,132
45,111
199,526
185,257
Income tax expense
454
600
8,932
4,595
EBITDA
340,952
310,107
1,260,014
1,268,713
(Gain) loss on sale of depreciable real estate assets
(35,255)
69
(55,643)
(72,066)
Adjustments to reflect MAA's share of EBITDAre of unconsolidated affiliates
422
351
1,571
1,424
EBITDAre
306,119
310,527
1,205,942
1,198,071
(Gain) loss on embedded derivative in preferred shares (1)
(1,091)
(1,693)
655
(1,111)
Loss (gain) on investments (1)
1,414
397
(27,524)
(7,457)
Casualty related (recoveries) and charges, net (1)
(2,299)
(3,346)
1,190
(4,598)
Legal costs, settlements and (recoveries), net (1)(2)
—
—
61,908
61,908
Adjusted EBITDAre
$
304,143
$
305,885
$
1,242,171
$
1,246,813
(1)
Included in Other non-operating income in the Consolidated Statements of Operations
(2)
During both the twelve months ended June 30, 2026 and December 31, 2025, in accordance with its accounting policies, MAA recognized $61.9 million of accrued legal settlements and legal defense costs.
RECONCILIATION OF UNSECURED NOTES PAYABLE, NET AND SECURED NOTES PAYABLE, NET TO NET DEBT
Dollars in thousands
June 30, 2026
December 31, 2025
Unsecured notes payable, net
$
5,331,445
$
5,044,979
Secured notes payable, net
360,456
360,393
Total debt
5,691,901
5,405,372
Cash and cash equivalents
(51,836)
(60,258)
Net Debt
$
5,640,065
$
5,345,114
RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS
Dollars in thousands
June 30, 2026
December 31, 2025
Total assets
$
11,994,584
$
11,975,383
Accumulated depreciation
6,244,124
5,914,017
Accumulated depreciation for Assets held for sale (1)
—
32,513
Gross Assets
$
18,238,708
$
17,921,913
(1)
Included in Assets held for sale in the Consolidated Balance Sheets.
RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS
Dollars in thousands
June 30, 2026
December 31, 2025
Real estate assets, net
$
11,672,927
$
11,609,324
Accumulated depreciation
6,244,124
5,914,017
Assets held for sale, net
—
46,401
Accumulated depreciation for Assets held for sale (1)
—
32,513
Cash and cash equivalents
51,836
60,258
Gross Real Estate Assets
$
17,968,887
$
17,662,513
(1)
Included in Assets held for sale in the Consolidated Balance Sheets.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDAre
For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA's core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges and (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA considers Adjusted EBITDAre to be an important measure of performance from core operations because Adjusted EBITDAre excludes various income and expense items that are not indicative of operating performance. MAA's computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.
Core Adjusted Funds from Operations (Core AFFO)
Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.
Core Funds from Operations (Core FFO)
Core FFO represents FFO as adjusted for items that are not considered part of MAA's core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges and (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA's definition of Core FFO may be similar to others in the industry, MAA's methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.
EBITDA
For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA excludes various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.
EBITDAre
For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable assets, gain on consolidation of third-party development and adjustments to reflect MAA's share of EBITDAre of an unconsolidated affiliate. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre excludes various expense items that are not indicative of operating performance. While MAA's definition of EBITDAre is in accordance with NAREIT's definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.
Funds Available for Distribution (FAD)
FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds and corporate related capital expenditures. Because net income attributable to noncontrolling interests is added back, FAD, when used in this release, represents FAD attributable to common shareholders and unitholders. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and capital expenditures.
Funds From Operations (FFO)
FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this release, represents FFO attributable to common shareholders and unitholders. While MAA's definition of FFO is in accordance with NAREIT's definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Gross Assets
Gross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Gross Real Estate Assets
Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net, Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.
Net Debt
Net Debt represents Unsecured notes payable,net and Secured notes payable,net less Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes Net Debt is a helpful tool in evaluating its debt position.
NON-GAAP FINANCIAL MEASURES (Continued)
Net Operating Income (NOI)
Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
Non-Same Store and Other NOI
Non-Same Store and Other NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Non-Same Store and Other Portfolio during the period. Non-Same Store and Other NOI includes storm-related expenses related to severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
Same Store NOI
Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the period. Same Store NOI excludes storm-related expenses related to severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.
OTHER KEY DEFINITIONS
Average Effective Rent per Unit
Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.
Average Physical Occupancy
Average Physical Occupancy represents the average of the daily physical occupancy for an applicable period.
Development Communities
Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.
Effective Blended Lease Rate Growth
Effective Blended Lease Rate Growth represents the combined weighted average of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth from our Same Store Portfolio for the applicable period.
Effective New Lease Rate Growth
Effective New Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for new leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.
Effective Renewal Lease Rate Growth
Effective Renewal Lease Rate Growth represents the growth in gross rent amounts after the effect of leasing concessions for renewal leases from our Same Store Portfolio that were effective during the applicable period as compared to the prior lease.
Lease-up Communities
New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.
Non-Same Store and Other Portfolio
Non-Same Store and Other Portfolio includes recently acquired communities, communities in development or lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.
Resident Turnover
Resident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a trailing twelve month basis as of the end of the reported quarter.
Same Store Portfolio (or Same Store)
MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions or events warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Communities that have been approved by MAA's Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have experienced a significant casualty loss are also excluded from the Same Store Portfolio.
FTC žaluje Hims & Hers kvůli údajnému nejasnému informování zákazníků o účtování za recepty téměř ihned po vyplnění vstupního formuláře. Po zprávě akcie klesly.
ATLANTA, July 29, 2026 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Hims & Hers Health, Inc. (“Hims & Hers” or the “Company”) (NYSE: HIMS) complied with federal securities laws. On July 29, 2026, the Federal Trade Commission (“FTC”) announced that it is suing Hims & Hers alleging the Company “fails to clearly disclose that it charges consumers for prescriptions almost immediately after they submit an intake form, despite telling consumers that they will be able to consult with a medical provider to find a treatment that is ‘right for them.’” Following this news, the price of the Company’s stock dropped.
If you purchased Hims & Hers stock and suffered a loss on that investment, you are encouraged to contact Corey Holzer, Esq. at [email protected] or Joshua Karr, Esq. at [email protected], call our toll-free number at (888) 508-6832, or visit our website at www.holzerlaw.com/case/hims-hers-health/ to discuss your legal rights.
Holzer & Holzer, LLC, an ISS top rated securities litigation law firm for 2021, 2022, and 2023, dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. More information about the firm is available through its website, www.holzerlaw.com, and upon request from the firm. Holzer & Holzer, LLC has paid for the dissemination of this promotional communication, and Corey Holzer is the attorney responsible for its content.
Bausch Health ve 2. čtvrtletí zvýšil tržby na 2,85 miliardy USD a upravený zisk na akcii (EPS) na 1,26 USD. Zároveň zvýšil celoroční výhled tržeb, EBITDA i cash flow.
Second Quarter Consolidated Revenues of $2.85 billion, up 13% on a Reported basis and 11% on an Organic (non-GAAP)1 basis over the prior year period GAAP Net Income Attributable to Bausch Health of $258 million and GAAP Net Income of $260 million GAAP Earnings per Diluted Share Attributable to Bausch Health of $0.68 compared to $0.40 in the prior year period; Adjusted Earnings per Diluted Share (non-GAAP)1 of $1.26 compared to $0.90 in the prior year period, an increase of 40% Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1 of $1,075 million, up 28% on a Reported basis over the prior year period BAUSCH HEALTH EXCLUDING BAUSCH + LOMB SECOND QUARTER 2026 RESULTS
Delivered thirteenth consecutive quarter of year-over-year Revenue growth, with Revenue up 16% on a Reported basis and 13% on an Organic (non-GAAP)1 basis Net Income increased $84 million over the prior year period, and Adjusted EBITDA (non-GAAP)1 grew 28% Generated $517 million in Cash Provided by Operating Activities and $471 million in Adjusted Cash Flows from Operations (non-GAAP)1 Raising full-year 2026 Revenue, Adjusted EBITDA (non-GAAP)1, and Adjusted Cash Flows from Operations (non-GAAP)1 guidance , /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) ("Bausch Health" or the "Company" or "we" or "our") today announced its second quarter 2026 financial results and other key updates from the quarter.
"The second quarter marks our thirteenth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb, reflecting the strength of our portfolio, disciplined execution, and the dedication of our teams around the world. We delivered our highest Revenue and Adjusted EBITDA growth rates in the past three years, generated our strongest Adjusted Cash Flow from Operations since Q4 2024, and reduced Net Debt by one of our largest amounts since our 2022 debt refinancing. This performance strengthens our financial flexibility and supports continued investment in our business, our pipeline, and business development opportunities. We remain focused on driving long-term value creation," said Thomas J. Appio, Chief Executive Officer, Bausch Health.
1
This is a non-GAAP measure or a non-GAAP ratio. For further information on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP Information" section of this news release. Please also refer to tables at the end of this news release for a reconciliation of this and other non-GAAP measures and ratios to the most directly comparable GAAP measure.
Second Quarter 2026 Revenue Performance
Total consolidated reported revenues were $2.85 billion for the second quarter of 2026, compared with $2.53 billion in the second quarter of 2025, an increase of $322 million, or 13%. Excluding the impact of foreign exchange of $25 million, acquisitions of $35 million, and divestitures and discontinuations of $7 million, revenue increased 11% on an organic1 basis compared with the second quarter of 2025.
Reported revenues by segment were as follows:
Three Months Ended
June 30,
Reported Change
Change at
Constant
Currency1
(Non-GAAP)
Change in
Organic
Revenue1
(Non-GAAP)
(in millions)
2026
2025
Amount
Pct.
Total Bausch Health Revenues
$2,852
$2,530
$322
13 %
12 %
11 %
Bausch Health (excl. B+L)
$1,458
$1,252
$206
16 %
15 %
13 %
Salix segment
$758
$627
$131
21 %
21 %
21 %
International segment
$305
$278
$27
10 %
5 %
5 %
Solta Medical segment
$176
$128
$48
38 %
37 %
12 %
Diversified segment
$219
$219
$0
— %
— %
— %
Bausch + Lomb segment
$1,394
$1,278
$116
9 %
8 %
8 %
Salix Segment
Salix segment reported revenues were $758 million for the second quarter of 2026, compared with $627 million for the second quarter of 2025, an increase of $131 million, or 21%. Segment revenues increased 21% on an organic1 basis compared with the second quarter of 2025. Xifaxan® was the primary contributor to growth, with 26% revenue growth in the second quarter of 2026.
International Segment
International segment reported revenues were $305 million for the second quarter of 2026, compared with $278 million for the second quarter of 2025, an increase of $27 million, or 10%. Excluding the impact of foreign exchange of $12 million, segment revenues grew 5% on an organic1 basis compared with the second quarter of 2025, with strong execution across LATAM and EMEA more than offsetting softer results in Canada.
Solta Medical Segment
Solta Medical segment reported revenues were $176 million for the second quarter of 2026, compared with $128 million in the second quarter of 2025, an increase of $48 million, or 38% aided by the acquisition of our full service distributor in China. Excluding a $1 million favorable impact from foreign exchange and acquisitions of $32 million, segment revenues increased by 12% on an organic1 basis compared with the second quarter of 2025, led by growth in APAC including South Korea, China and Taiwan.
Diversified Segment
Diversified segment reported revenues were $219 million for the second quarter of 2026, flat compared with $219 million for the second quarter of 2025. Segment revenues were flat on an organic1 basis compared with the second quarter of 2025. Results in the Neuroscience business balanced softer performance in Dermatology, Generics, and Dentistry.
Bausch + Lomb Segment
Bausch + Lomb segment reported revenues were $1.39 billion for the second quarter of 2026, compared with $1.28 billion for the second quarter of 2025, an increase of $116 million, or 9%. Excluding the impact of foreign exchange of $12 million, acquisitions of $3 million and divestitures and discontinuations of $5 million, segment revenues increased 8% on an organic1 basis compared with the second quarter of 2025.
Consolidated Operating Income
Consolidated operating income was $740 million for the second quarter of 2026, compared with consolidated operating income of $444 million for the second quarter of 2025, an increase of $296 million, primarily attributable to results in the Salix, Bausch + Lomb, and Solta Medical segments.
Consolidated Net Income Attributable to Bausch Health
Consolidated net income attributable to Bausch Health for the second quarter of 2026 was $258 million, compared with consolidated net income attributable to Bausch Health of $148 million for the second quarter of 2025.
Consolidated Adjusted Net Income Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted net income attributable to Bausch Health (non-GAAP)1 for the second quarter of 2026 was $476 million, compared with $335 million for the second quarter of 2025, an increase of $141 million, primarily due to higher revenues.
Consolidated Earnings Per Share Attributable to Bausch Health
Consolidated earnings per share attributable to Bausch Health for the second quarter of 2026 was $0.68 on a diluted basis, compared with consolidated earnings per share of $0.40 on a diluted basis for the second quarter of 2025.
Consolidated Adjusted Earnings Per Share Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted earnings per share attributable to Bausch Health (non-GAAP)1 for the second quarter of 2026 was $1.26, compared with $0.90 for the second quarter of 2025.
Consolidated Adjusted EBITDA Attributable to Bausch Health (non-GAAP)1
Consolidated adjusted EBITDA attributable to Bausch Health (non-GAAP)1 was $1,075 million for the second quarter of 2026, compared with $842 million for the second quarter of 2025, an increase of $233 million.
Consolidated Cash Provided by Operating Activities
The Company generated $671 million of cash from operating activities in the second quarter of 2026, an increase of 132% versus $289 million in the second quarter of 2025.
Balance Sheet Highlights
As of June 30, 2026, Bausch Health reported consolidated cash and cash equivalents of $1,825 million, up from $1,309 million as of December 31, 2025. The Company remains focused on strengthening its balance sheet and delivering value to all stakeholders.
Focus on Strategic Priorities
The Company entered the second half of 2026 with strong financial momentum, with revenue and earnings growth across multiple segments. Upon the successful completion of major refinancing initiatives in the prior twelve-month period, the Company materially improved its debt maturity profile. The Company remains committed to evaluating all options for unlocking shareholder value, including maximizing the value of our Bausch Health and Bausch + Lomb assets.
2026 Financial Outlook
The Company updated its Consolidated full-year Revenue and Adjusted EBITDA (non-GAAP)1 guidance for 2026.
Bausch Health (excluding Bausch + Lomb) is raising its full year Revenue, Adjusted EBITDA (non-GAAP)1, and Adjusted Cash Flows from Operations (non-GAAP)1 guidance, which includes the currently estimated impact of applicable tariffs for the calendar year as of the date of this release.
Current Guidance (as of July 29, 2026)
BHC
BHC
(excl. B+L)
B+L
Revenues (in Billions)
$10.790 - $11.040
$5.350 - $5.500
$5.440 - $5.540
Revenue growth vs. Prior Year
4% - 6%
Adjusted EBITDA1 (in Billions)
$4.050 - $4.175
$3.025 - $3.100
$1.025 - $1.075
Adj. EBITDA1 growth vs. Prior Year
8% - 11%
Adjusted Cash Flows from Operations1 (in Billions)
$1.400 - $1.475
Other than with respect to GAAP revenues, the Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA (non-GAAP)1 to GAAP net income (loss) or forward-looking Adjusted Cash Flows from Operations (non-GAAP)1 to GAAP cash provided by operating activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because deductions (such as restructuring, gain or loss on extinguishment of debt and litigation and other matters) used to calculate projected net income (loss) and payments (such as payments of legal settlements, transformation costs, separation costs and separation-related costs, interest charged against premium, financing fees paid in connection with the debt refinancing transactions and acquired IPR&D expense) used to calculate Adjusted Cash Flows from Operations (non-GAAP)1 vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of projected net income (loss) or cash provided by operating activities at this time. The amount of these adjustments may be material and, therefore, could result in projected GAAP net income (loss) being materially less than projected Adjusted EBITDA (non-GAAP)1. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the "Forward-looking Statements" section of this news release. The guidance in this news release is only effective as of the date it is given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. The rapid recent developments in the evolving landscape of tariffs and responses have resulted in uncertainty regarding these measures and the effects they may have. We continue to assess the direct and indirect impacts on our businesses of such tariffs, including retaliatory tariffs and other trade protectionist measures as the situation develops, and there can be no assurance that such impacts will not be adverse.
A replay of the conference call will be available on the investor relations website.
About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.
Forward-looking Statements
This news release contains forward-looking information and statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws (collectively, "forward-looking statements"), including, but not limited to, statements relating to the Company's: future prospects and performance, financial guidance, research and development efforts and anticipated timing or results thereof, proposed plan to separate its eye health business, including the timing thereof, management of its balance sheet, generation of cash, ability to launch and commercialize new products, including the timing of regulatory processes with respect to the Company's product pipeline, ability to enforce and defend its Xifaxan® intellectual property rights, ability to execute its growth strategies and strategic priorities generally, and other corporate and strategic transactions. Forward-looking statements may generally be identified by the use of the words "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "estimates," "potential," "target," or "continue" and positive and negative variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. These forward-looking statements, including the full-year guidance, are based upon the current expectations and beliefs of management. The Company's 2026 financial outlook and full-year guidance are included to provide further information about management's expectations about the Company's future business operations, activities and results and may not be appropriate for other purposes.
These forward-looking statements are subject to certain factors, risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: our ability to execute our business strategy, business plans and operational efficiency initiatives; demand for, competitive positioning of and pricing for our current and anticipated products and our ability to achieve expected revenues, margins and expense levels; the successful development, regulatory approval, manufacture and timing of launches and commercialization of pipeline and other products; the completion, timing, integration and expected benefits of acquisitions and other strategic transactions (including the planned separation of our eye health business consisting of our Bausch + Lomb global Vision Care, Surgical and Pharmaceuticals businesses) on anticipated terms, timing and costs; the scope, duration and financial and operational impact of product quality matters and manufacturing facility compliance and certification matters; the continued availability and performance of key third-party distribution, fulfillment and other arrangements and the stability of global supply chains; the continuation of patent protection and regulatory exclusivity for key products; the expected impacts of the Inflation Reduction Act, and the impact of the negotiated prices for Xifaxan®, expected to become effective in 2027, under certain programs of the Centers for Medicare & Medicaid Services, and other healthcare reform measures and our ability to mitigate the impact thereof; our ability to generate cash flows and access liquidity to meet working capital needs, satisfy debt maturities as they become due, reduce debt levels and comply with financial and other covenants under our financing arrangements; the expected scope and impact of tariffs, counter-tariffs and other trade restrictions and the effectiveness of mitigation actions and the Company's ability to recover any tariffs that are eligible for refund claims; macroeconomic and geopolitical conditions (including inflation, recessionary pressures, foreign currency exchange rates and interest rates), changes in tax laws and related guidance (including legislation referred to as the One Big Beautiful Bill Act and Organisation for Economic Co-operation and Development related measures); the expected outcomes of litigation and other contingencies; and other factors, risks and uncertainties discussed in the Company's most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors, risks and uncertainties are incorporated herein by reference.
We caution that, as it is not possible to predict or identify all relevant factors that may impact forward-looking statements, the factors referred to above are not exhaustive and should not be considered a complete statement of all potential risks and uncertainties. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the aforementioned factors and other uncertainties and potential events. These forward-looking statements speak only as of the date made. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, except as required by law.
Non-GAAP Information
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures and non-GAAP ratios to provide supplemental information to readers. Management uses these non-GAAP measures and ratios as key metrics in the evaluation of the Company's performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The Company believes these non-GAAP measures and ratios are useful to investors in their assessment of our operating performance and the valuation of the Company. In addition, these non-GAAP measures and ratios address questions the Company routinely receives from analysts and investors, and in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors.
However, these measures and ratios are not prepared in accordance with GAAP nor do they have any standardized meaning under GAAP. In addition, other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to such similarly titled non-GAAP financial measures and ratios used by other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
The reconciliations of these historical non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below. However, as indicated above, for guidance purposes, the Company does not provide reconciliations of projected Adjusted EBITDA (non-GAAP) to projected GAAP Net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Many of the adjustments and exclusions used to calculate the projected non-GAAP measures may vary significantly based on actual events, so the Company is not able to forecast on a GAAP basis with reasonable certainty all adjustments needed in order to provide a GAAP calculation of these projected amounts. The amounts of these adjustments may be material and, therefore, could result in the GAAP amount being materially different from (including materially less than) the projected non-GAAP measures.
Commencing in the third quarter of 2025, the Company now includes payments of Acquired IPR&D in the calculation of Adjusted Cash Flows From Operations (non-GAAP). Prior-period amounts presented herein have been restated to conform to the current year's presentation.
Description of Non-GAAP Financial Measures
EBITDA (non-GAAP), Adjusted EBITDA (non-GAAP) and Adjusted EBITDA Attributable to Bausch Health (non-GAAP)
EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization. Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (Benefit from) provision for income taxes, depreciation and amortization, and certain other items described below. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) as defined below.
Management believes that Adjusted EBITDA (non-GAAP) and Adjusted EBITDA attributable to Bausch Health (non-GAAP), along with the GAAP measures used by management, most appropriately reflect how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflect our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) targets.
Adjusted EBITDA (non-GAAP) is Net income (loss) (its most directly comparable GAAP financial measure) adjusted for interest, income taxes, depreciation and amortization and the following items:
Restructuring, integration and transformation costs: The Company has incurred restructuring costs as it implemented certain strategies, which involved, among other things, improvements to its infrastructure and operations, internal reorganizations and impacts from the divestiture of assets and businesses. With regard to infrastructure and operational improvements which the Company has taken to improve efficiencies in the businesses and facilities, these tend to be costs intended to right size the business or organization that fluctuate significantly between periods in amount, size and timing, depending on the improvement project, reorganization or transaction. Additionally, the Company is launching certain transformation initiatives that will result in certain changes to and investment in its organizational structure and operations. These transformation initiatives arise outside of the ordinary course of continuing operations and, as is the case with the Company's restructuring efforts, costs associated with these transformation initiatives are expected to fluctuate between periods in amount, size and timing. These out-of-the-ordinary-course charges include third-party advisory costs, as well as certain severance-related costs. Investors should understand that the outcome of these transformation initiatives may result in future restructuring actions and certain of these charges could recur. The Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. Asset impairments: The Company has excluded the impact of impairments of finite-lived and indefinite-lived intangible assets, as well as impairments of assets held for sale, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes impairments of intangible assets and assets held for sale from measuring the performance of the Company and the business, the Company believes that it is important for investors to understand that intangible assets contribute to revenue generation. Goodwill impairments: The Company excludes the impact of goodwill impairments. When the Company has made acquisitions where the consideration paid was in excess of the fair value of the net assets acquired, the remaining purchase price is recorded as goodwill. For assets that we developed ourselves, no goodwill is recorded. Goodwill is not amortized but is tested for impairment. The amount of goodwill impairment is measured as the excess of a reporting unit's carrying value over its fair value. Management excludes these charges in measuring the performance of the Company and the business. Share-based compensation: The Company has excluded costs relating to share-based compensation. The Company believes that the exclusion of share-based compensation expense assists investors in the comparisons of operating results to peer companies. Share-based compensation expense can vary significantly based on the timing, size and nature of awards granted. Acquisition-related costs and adjustments (excluding amortization of intangible assets): The Company has excluded the impact of acquisition-related costs and fair value inventory step-up resulting from acquisitions as the amounts and frequency of such costs and adjustments are not consistent and are significantly impacted by the timing and size of its acquisitions. In addition, the Company excludes acquisition-related contingent consideration non-cash adjustments due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates, and the amount and frequency of such adjustments are not consistent and are significantly impacted by the timing and size of the Company's acquisitions, as well as the nature of the agreed-upon consideration. Loss (gain) on extinguishment of debt: The Company has excluded loss (gain) on extinguishment of debt as this represents a gain or loss from refinancing our existing debt and is not a reflection of our operations for the period. Further, the amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control. Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities regarding the separation of the eye-health business. Separation costs are incremental costs directly related to effectuating the separation of the eye-health business, and include, but are not limited to, legal, audit and advisory fees. Separation-related costs are incremental costs indirectly related to the separation of the eye-health business and include, but are not limited to, rebranding costs and costs associated with facility relocation and/or modification. As these costs arise from events outside of the ordinary course of continuing operations, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's operating performance, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors. Other adjustments: The Company has excluded certain other amounts, including legal and other professional fees incurred in connection with legal and governmental proceedings, investigations and information requests regarding certain of our legacy distribution, marketing, pricing, disclosure and accounting practices, litigation and other matters, and net (gain) loss on sale of assets or other disposition of assets. Given the unique nature of the matters relating to these costs, the Company believes these items are not normal operating expenses. For example, legal settlements and judgments vary significantly, in their nature, size and frequency, and, due to this volatility, the Company believes the costs associated with legal settlements and judgments are not normal operating expenses. In addition, as opposed to more ordinary course matters, the Company considers that each of the recent proceedings, investigations and information requests, given their nature and frequency, are outside of the ordinary course and relate to unique circumstances. The Company has also excluded IT infrastructure investments that are the result of other, non-comparable events to measure operating performance. These events arise outside of the ordinary course of continuing operations. The Company has also excluded certain other costs, including professional fees associated with contemplated, but not completed, strategic transactions. The Company excluded these costs as the consideration of such matters are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. However, investors should understand that many of these costs could recur and that companies in our industry often face litigation. Adjusted EBITDA attributable to Bausch Health (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to noncontrolling interest (non-GAAP). Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.
Adjusted Net Income (non-GAAP) and Adjusted Net Income attributable to Bausch Health (non-GAAP)
Adjusted net income (non-GAAP) is Net income (its most directly comparable GAAP financial measure), adjusted for asset impairments, goodwill impairments, restructuring, integration and transformation costs, acquisition-related costs and adjustments (excluding amortization of intangible assets), gain (loss) on extinguishment of debt, separation costs and separation-related costs and other non-GAAP adjustments as these adjustments are described above, and amortization of intangible assets and write down of financing fees as described below:
Amortization of intangible assets: The Company has excluded the impact of amortization of intangible assets, as such amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. The Company believes that the adjustments of these items correlate with the sustainability of the Company's operating performance. Although the Company excludes the amortization of intangible assets from its non-GAAP expenses, the Company believes that it is important for investors to understand that such 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. Write down of financing fees: In addition to excluding Loss (gain) on extinguishment of debt, the Company has excluded the impact of the write down of financing fees from Adjusted net income (non-GAAP). The amount and frequency of such amounts are not consistent and are significantly impacted by the timing and size of debt financing transactions and other factors in the debt market out of management's control. In addition, the Company excluded these costs as they are outside of the ordinary course of continuing operations and are infrequent in nature. The Company believes that the exclusion of such out-of-the-ordinary-course amounts provides supplemental information to assist in the comparison of the financial results of the Company from period to period and, therefore, provides useful supplemental information to investors. Adjusted net income attributable to Bausch Health (non-GAAP) is Adjusted net income (non-GAAP) further adjusted to exclude the Adjusted net income attributable to noncontrolling interest (non-GAAP). Adjusted net income attributable to noncontrolling interest (non-GAAP) is Net income attributable to noncontrolling interest (its most directly comparable GAAP financial measure) adjusted for the portion of the adjustments described above attributable to noncontrolling interest.
Historically, management has used Adjusted net income (loss) (non-GAAP) for strategic decision making, forecasting future results and evaluating current performance. This non-GAAP measure excludes the impact of certain items (as described above) that may obscure trends in the Company's underlying performance. By disclosing this non-GAAP measure, it is management's intention to provide investors with a meaningful, supplemental comparison of the Company's operating results and trends for the periods presented. Management believes that this measure is also useful to investors as such measure allows investors to evaluate the Company's performance using the same tools that management uses to evaluate past performance and prospects for future performance. Accordingly, the Company believes that Adjusted net income (non-GAAP) is useful to investors in their assessment of the Company's operating performance. It is also noted that, in recent periods, our GAAP Net income (loss) was significantly lower than our Adjusted net income (non-GAAP).
Adjusted Earnings Per Share (non-GAAP)
Adjusted earnings per share (non-GAAP) is calculated as Basic and Diluted loss per share attributable to Bausch Health (its most directly comparable GAAP financial measure), adjusted for the non-GAAP adjustments to reconcile Net income (loss) attributable to Bausch Health to Adjusted income attributable to Bausch Health (non-GAAP) and the diluted effect of stock options and restricted stock units excluded in the determination of Basic and Diluted loss per share attributable to Bausch Health during the period as the effect of including them would have been antidilutive. Management believes this non-GAAP measure excludes certain factors that could distort the visibility of the Company's underlying performance per share and offers investors a clearer, supplemental view of the Company's performance and trends over the reported periods. As a result, the Company considers Adjusted earnings per share (non-GAAP) to be beneficial for investors evaluating the Company's operating results, overall valuation, and potential return on investment. Management notes that for the periods presented, the Company's GAAP EPS was notably lower than its Adjusted earnings per share (non-GAAP).
Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP)
Organic revenue (non-GAAP) and Change in organic revenue (non-GAAP), are defined as GAAP Revenue and change in GAAP Revenue (the most directly comparable GAAP financial measures), adjusted for changes in foreign currency exchange rates (if applicable) and excluding the impact of recent acquisitions, divestitures and discontinuations, as defined below.
Organic revenue (non-GAAP) is impacted by changes in product volumes and price. The price component is made up of two key drivers: (i) changes in product gross selling price and (ii) changes in sales deductions. The Company uses organic revenue (non-GAAP) and change in organic revenue (non-GAAP) to assess performance of its reportable segments, and the Company in total. The Company believes that providing these non-GAAP measures is useful to investors as they provide a supplemental period-to-period comparison.
The adjustments to GAAP Revenue to determine Organic Revenue (non-GAAP) and Change in Organic Revenue (non-GAAP) are as follows:
Foreign currency exchange rates: Although changes in foreign currency exchange rates are part of our business, they are not within management's control. Changes in foreign currency exchange rates, however, can mask positive or negative trends in the business. The impact of changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period. Acquisitions, divestitures and discontinuations: In order to present period-over-period organic revenue (non-GAAP) growth/change on a comparable basis, revenues associated with acquisitions, divestitures and discontinuations are adjusted to include only revenues from those businesses and assets owned during both periods. Accordingly, organic revenue and change in organic revenue exclude from the current period, revenues attributable to each acquisition for twelve months subsequent to the day of acquisition, as there are no revenues from those businesses and assets included in the comparable prior period. Organic revenue and change in organic revenue exclude from the prior period, all revenues attributable to each divestiture and discontinuance during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period. Constant Currency
Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the Company's financial results and financial position. To assist investors in evaluating the Company's performance, we have adjusted for the effects of changes in foreign currencies. The impact of changes in foreign currency exchange rates is determined by comparing the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.
Please also see the reconciliation tables below for further information as to how these non-GAAP measures and ratios are calculated for the periods presented.
Adjusted Cash Flows from Operations (non-GAAP)
Adjusted cash flows from operations (non-GAAP) is Cash provided by operating activities (its most directly comparable GAAP financial measure) adjusted for: (i) payments of legacy legal settlements, net of insurance recoveries and restitutions, (ii) payments of transformation costs, (iii) payments for separation costs and separation-related costs, (iv) interest payments charged against premium, (v) fees paid in connection with the debt refinancing transactions and (vi) payments of acquired IPR&D.
As these payments arise from events outside of the ordinary course of continuing operations as discussed above, the Company believes that the adjustments of these items provide supplemental information with regard to the sustainability of the Company's cash from operations, allow for a comparison of the financial results to historical operations and forward-looking guidance and, as a result, provide useful supplemental information to investors.
Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) is Adjusted EBITDA (non-GAAP) adjusted to remove Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP). Adjusted EBITDA attributable to Bausch + Lomb (non-GAAP) is Income (loss) before income taxes of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's interest expense, depreciation, amortization and other adjustments as described above, allocated or attributable to Bausch + Lomb.
Adjusted EBITDA excluding Bausch + Lomb is not intended to be, and may not be, representative of income from continuing operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to Bausch Health excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted EBITDA excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted EBITDA attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented.
Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP)
Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP) is Adjusted Cash Flows from Operations (non-GAAP) adjusted to remove Adjusted Cash Flows from Operations attributable to Bausch + Lomb (non-GAAP). Adjusted Cash Flows from Operations attributable to Bausch + Lomb (non-GAAP) is Cash Flows from Operations of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's payment of separation costs, separation-related costs and other adjustments as described above, allocated or attributable to Bausch + Lomb.
Adjusted Cash Flows from Operations excluding Bausch + Lomb is not intended to be, and may not be, representative of Cash Flows from Operations (for Bausch Health excluding Bausch + Lomb) or from discontinued operations (for Bausch + Lomb) in accordance with GAAP, as: (i) the criteria for that accounting has not been met and (ii) certain cost allocations to BHC excluding Bausch + Lomb and Bausch + Lomb are not in accordance with the criteria for that accounting. As such, Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP) as included herein may not be indicative of the cash flows or Adjusted Cash Flows from Operations attributable to Bausch Health (non-GAAP) in the future, or if Bausch + Lomb met the criteria to be treated as a discontinued operation during any of the periods presented.
Management believes that Adjusted EBITDA excluding Bausch + Lomb (non-GAAP), Adjusted Cash Flows from Operations (non-GAAP) and Adjusted Cash Flows from Operations excluding Bausch + Lomb (non-GAAP), along with the GAAP and other non-GAAP measures used by management, most appropriately reflects how the Company measures the business internally and sets operational goals and incentives. In particular, the Company believes that these metrics focus management on the Company's underlying operational results and business performance. As a result, the Company uses these metrics to assess the actual financial performance of the Company and to forecast future results as part of its guidance. Management believes these metrics are a useful measure to evaluate current performance. These metrics are intended to show our unleveraged, pre-tax operating results and therefore reflect our financial performance based on operational factors. In addition, cash bonuses for the Company's executive officers and other key employees are based, in part, on the achievement of certain Adjusted EBITDA (non-GAAP) and Adjusted Cash Flows from Operations (non-GAAP) targets.
Net Debt (non-GAAP)
Net Debt (non-GAAP) is long-term debt (its most directly comparable GAAP financial measure) adjusted for premiums, discount and issuance costs less unrestricted cash and cash equivalents.
Net Debt excluding Bausch + Lomb (non-GAAP)
Net Debt excluding Bausch + Lomb (non-GAAP) is Net Debt (non-GAAP) adjusted to remove Net Debt attributable to Bausch + Lomb (non-GAAP). Net Debt attributable to Bausch + Lomb (non-GAAP) is long-term debt of our Bausch + Lomb segment (its most directly comparable GAAP financial measure) adjusted for the portion of the Company's premiums, discount and issuance costs less unrestricted cash and cash equivalents allocated or attributable to Bausch + Lomb.
Management believes Net Debt (non-GAAP) and Net Debt excluding Bausch + Lomb (non-GAAP) provides investors with useful information regarding the Company's overall leverage position and its ability to service its outstanding debt obligations.
Bausch Health Companies Inc.
Table 1
Condensed Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2026 and 2025
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
2026
2025
Revenues
Product sales
$ 2,825
$ 2,504
$ 5,325
$ 4,731
Other revenues
27
26
51
58
2,852
2,530
5,376
4,789
Expenses
Cost of goods sold (excluding amortization and impairments of intangible assets)
753
748
1,474
1,431
Cost of other revenues
19
16
36
34
Selling, general and administrative
907
894
1,768
1,761
Research and development
173
159
336
302
Amortization of intangible assets
225
256
466
512
Goodwill impairments
—
—
1,426
—
Restructuring, integration and separation costs
9
31
22
32
Other expense (income), net
26
(18)
58
(3)
2,112
2,086
5,586
4,069
Operating income (loss)
740
444
(210)
720
Interest income
11
13
21
24
Interest expense
(396)
(465)
(798)
(795)
Gain (loss) on extinguishment of debt
—
178
(1)
178
Foreign exchange and other
(7)
(30)
(18)
(34)
Income (loss) before income taxes
348
140
(1,006)
93
Provision for income taxes
(88)
(12)
(165)
(51)
Net income (loss)
260
128
(1,171)
42
Net (income) loss attributable to noncontrolling interest
(2)
20
6
48
Net income (loss) attributable to Bausch Health Companies Inc.
$ 258
$ 148
$ (1,165)
$ 90
.
Bausch Health Companies Inc.
Table 2
Reconciliation of Net income (loss) attributable to Bausch Health Companies Inc. to
Adjusted Net Income Attributable to Bausch Health Companies Inc. (non-GAAP)
For the Three and Six Months Ended June 30, 2026 and 2025
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
2026
2025
Net income (loss) attributable to Bausch Health Companies Inc.
$ 258
$ 148
$ (1,165)
$ 90
Non-GAAP adjustments: (a)
Amortization of intangible assets
225
256
466
512
Goodwill impairments
—
—
1,426
—
Asset impairments
9
—
9
—
Restructuring, integration and transformation costs
14
52
33
81
Acquisition-related costs and adjustments (excluding amortization of intangible assets)
6
(6)
22
6
(Gain) loss on extinguishment of debt and write down of financing fees
—
(126)
9
(126)
Separation costs and separation-related costs
1
2
2
7
Gain on sale of assets, net
—
—
(3)
—
Litigation and other matters, net of insurance recoveries and restitutions
6
8
16
5
Other
6
48
14
60
Tax effect of non-GAAP adjustments
(35)
(23)
(29)
(38)
Noncontrolling interest portion of the non-GAAP adjustments
(14)
(24)
(28)
(42)
Adjusted net income attributable to Bausch Health Companies Inc. (non-GAAP)
$ 476
$ 335
$ 772
$ 555
Earnings (loss) per share attributable to Bausch Health Companies Inc.
Basic
$ 0.69
$ 0.40
$ (3.12)
$ 0.24
Diluted
$ 0.68
$ 0.40
$ (3.12)
$ 0.24
Adjusted earnings per share attributable to Bausch Health Companies Inc. (non-GAAP) (b)
$ 1.26
$ 0.90
$ 2.04
$ 1.49
Weighted-average common shares
Basic
375.0
370.9
373.9
370.3
Diluted
378.1
373.1
378.5
373.5
(a)
The components of and further details respecting each of these non-GAAP adjustments and the financial statement line item to which each component relates can be found on Table 2a.
(b)
Adjusted earnings per share attributable to Bausch Health Companies Inc. is calculated using diluted weighted average common shares of 378.5 million which includes the diluted effect of stock options and restricted stock units of 4.6 million (the "Dilutive Shares") for the six months ended June 30, 2026. The Dilutive Shares were not included in the determination of basic and diluted loss per share attributable to Bausch Health Companies Inc. as the effect of including them would have been antidilutive.
Bausch Health Companies Inc.
Table 2a
Reconciliation of GAAP to Non-GAAP Financial Information
For the Three and Six Months Ended June 30, 2026 and 2025
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
2026
2025
Cost of goods sold reconciliation:
GAAP Cost of goods sold (excluding amortization and impairments of intangible
assets)
$ 753
$ 748
$ 1,474
$ 1,431
Fair value inventory step-up resulting from acquisitions (a)
—
(21)
(3)
(43)
Adjusted Cost of goods sold (excluding amortization and impairments of
intangible assets) (non-GAAP)
$ 753
$ 727
$ 1,471
$ 1,388
Selling, general and administrative reconciliation:
GAAP Selling, general and administrative
$ 907
$ 894
$ 1,768
$ 1,761
IT infrastructure investment (b)
(4)
(4)
(9)
(12)
Legal and other professional fees (b)
1
(11)
1
(14)
Separation-related costs (c)
(1)
(2)
(2)
(7)
Transformation costs (d)
(5)
(21)
(11)
(49)
Adjusted Selling, general and administrative (non-GAAP)
$ 898
$ 856
$ 1,747
$ 1,679
Amortization of intangible assets reconciliation:
GAAP Amortization of intangible assets
$ 225
$ 256
$ 466
$ 512
Amortization of intangible assets (e)
(225)
(256)
(466)
(512)
Adjusted Amortization of intangible assets (non-GAAP)
$ —
$ —
$ —
$ —
Goodwill impairments reconciliation:
GAAP Goodwill impairments
$ —
$ —
$ 1,426
$ —
Goodwill impairments (f)
—
—
(1,426)
—
Adjusted Goodwill impairments (non-GAAP)
$ —
$ —
$ —
$ —
Restructuring, integration and separation costs reconciliation:
GAAP Restructuring, integration and separation costs
$ 9
$ 31
$ 22
$ 32
Restructuring and integration costs (d)
(9)
(31)
(22)
(32)
Adjusted Restructuring, integration and separation costs (non-GAAP)
$ —
$ —
$ —
$ —
Other expense (income), net reconciliation:
GAAP Other expense (income), net
$ 26
$ (18)
$ 58
$ (3)
Litigation and other matters, net of insurance recoveries and restitutions (g)
(6)
(8)
(16)
(5)
Acquisition-related contingent consideration (a)
(6)
29
(18)
40
Gain on sale of assets, net (h)
—
—
3
—
Acquisition-related costs (a)
—
(2)
(1)
(3)
Asset impairments (i)
(9)
—
(9)
—
Other (b)
(1)
—
(1)
—
Adjusted Other expense (income), net (non-GAAP)
$ 4
$ 1
$ 16
$ 29
Bausch Health Companies Inc.
Table 2a (continued)
Reconciliation of GAAP to Non-GAAP Financial Information
For the Three and Six Months Ended June 30, 2026 and 2025
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
2026
2025
Gain (loss) on extinguishment of debt reconciliation:
GAAP Gain (loss) on extinguishment of debt
$ —
$ 178
$ (1)
$ 178
Gain (loss) on extinguishment of debt (j)
—
(178)
1
(178)
Adjusted Gain (loss) on extinguishment of debt (non-GAAP)
$ —
$ —
$ —
$ —
Interest expense reconciliation:
GAAP Interest expense
$ (396)
$ (465)
$ (798)
$ (795)
Write-down of financing fees (j)
—
(52)
8
(52)
Adjusted Interest expense (non-GAAP)
$ (396)
$ (517)
$ (790)
$ (847)
Foreign exchange and other reconciliation:
GAAP Foreign exchange and other
$ (7)
$ (30)
$ (18)
$ (34)
Other professional fees (b)
2
(33)
5
(34)
Adjusted Foreign exchange and other (non-GAAP)
$ (5)
$ (63)
$ (13)
$ (68)
Provision for income taxes reconciliation:
GAAP Provision for income taxes
$ (88)
$ (12)
$ (165)
$ (51)
Tax effect of non-GAAP adjustments (k)
(35)
(23)
(29)
(38)
Adjusted Provision for income taxes (non-GAAP)
$ (123)
$ (35)
$ (194)
$ (89)
Net (income) loss attributable to noncontrolling interest reconciliation:
GAAP Net (income) loss attributable to noncontrolling interest
$ (2)
$ 20
$ 6
$ 48
Noncontrolling interest portion of amortization of intangible assets (l)
(7)
(8)
(14)
(16)
Noncontrolling interest portion of all other adjustments (l)
(7)
(16)
(14)
(26)
Adjusted net (income) loss attributable to noncontrolling interest (non-GAAP)
$ (16)
$ (4)
$ (22)
$ 6
(a)
Represents the three components of the non-GAAP adjustment of "Acquisition-related costs and adjustments (excluding amortization of intangible assets)" (see Table 2).
(b)
Represents the four components of the non-GAAP adjustment of "Other" (see Table 2).
(c)
Represents the one component of the non-GAAP adjustment of "Separation costs and separation-related costs" (see Table 2).
(d)
Represents the two components of the non-GAAP adjustment of "Restructuring, integration and transformation costs" (see table 2).
(e)
Represents the sole component of the non-GAAP adjustment of "Amortization of intangible assets" (see Table 2).
(f)
Represents the sole component of the non-GAAP adjustment of "Goodwill impairments" (see Table 2).
(g)
Represents the sole component of the non-GAAP adjustment of "Litigation and other matters, net of insurance recoveries and restitutions" (see Table 2).
(h)
Represents the sole component of the non-GAAP adjustment of "Gain on sale of assets, net" (see Table 2).
(i)
Represents the sole component of the non-GAAP adjustment of "Asset impairments" (see Table 2).
(j)
Represents the two components of the non-GAAP adjustment of "Gain (loss) on extinguishment of debt and write-down of financing fees" (see Table 2).
(k)
Represents the sole component of the non-GAAP adjustment of "Tax effect of non-GAAP adjustments" (see Table 2).
(l)
Represents the portion of the non-GAAP adjustments attributable to noncontrolling interest (see Table 2).
Bausch Health Companies Inc.
Table 2b
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (non-GAAP)
For the Three and Six Months Ended June 30, 2026 and 2025
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
2026
2025
Net income (loss)
$ 260
$ 128
$ (1,171)
$ 42
Interest expense, net
385
452
777
771
Provision for income taxes
88
12
165
51
Depreciation and amortization
281
307
576
612
EBITDA (non-GAAP)
1,014
899
347
1,476
Adjustments:
Goodwill impairments
—
—
1,426
—
Asset impairments
9
—
9
—
Restructuring, integration and transformation costs
14
52
33
81
Acquisition-related costs and adjustments (excluding amortization of intangible assets)
6
(6)
22
6
(Gain) loss on extinguishment of debt
—
(178)
1
(178)
Share-based compensation
54
46
106
89
Separation costs and separation-related costs
1
2
2
7
Other adjustments:
Litigation and other matters, net of insurance recoveries and restitutions
6
8
16
5
Gain on sale of assets, net
—
—
(3)
—
Other
6
48
14
60
Adjusted EBITDA (non-GAAP) (a)
1,110
871
1,973
1,546
Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) (b)
(35)
(29)
(61)
(43)
Adjusted EBITDA attributable to Bausch Health Companies Inc. (non-GAAP) (c)
$ 1,075
$ 842
$ 1,912
$ 1,503
(a)
Includes the impact of Acquired IPR&D charges of $5 million and $1 million for the three months ended June 30, 2026 and 2025, respectively, and $16 million and $29 million for the six months ended June 30, 2026 and 2025, respectively.
(b)
Adjusted EBITDA attributable to noncontrolling interest (non-GAAP) is Net (income) loss attributable to noncontrolling interest adjusted for the noncontrolling interest portion of the adjustments above as follows:
Three Months Ended
Six Months Ended
June 30,
June 30,
(in millions)
2026
2025
2026
2025
Net (income) loss attributable to noncontrolling interest
$ (2)
$ 20
$ 6
$ 48
Noncontrolling interest portion of adjustments for:
Interest expense, net
(11)
(16)
(23)
(28)
Depreciation and amortization
(13)
(13)
(26)
(26)
All other adjustments
(9)
(20)
(18)
(37)
Adjusted EBITDA attributable to noncontrolling interest (non-GAAP)
$ (35)
$ (29)
$ (61)
$ (43)
(c)
Includes the impact of Acquired IPR&D charges net of noncontrolling interest (non-GAAP) of $4 million and $1 million for the three months ended June 30, 2026 and 2025, respectively and $14 million and $25 million for the six months ended June 30, 2026 and 2025, respectively.
Bausch Health Companies Inc.
Table 3a
Organic Growth (non-GAAP) - by Segment
For the Three Months Ended June 30, 2026 and 2025
(unaudited)
Calculation of Organic Revenue for the Three Months Ended
June 30, 2026
June 30, 2025
Change in
GAAP Revenues
Change in
Organic Revenue
Revenue
as
Reported
Changes
in
Exchange
Rates (a)
Acquisitions
Organic
Revenue
(Non-GAAP) (b)
Revenue
as
Reported
Divestitures
and
Discontinuations
Organic
Revenue
(Non-GAAP) (b)
(in millions)
Amount
Pct.
Amount
Pct.
Bausch Health (excl. B+L)
Salix
$ 758
$ —
$ —
$ 758
$ 627
$ (1)
$ 626
$ 131
21 %
$ 132
21 %
International
305
(12)
—
293
278
—
278
27
10 %
15
5 %
Solta Medical
176
(1)
(32)
143
128
—
128
48
38 %
15
12 %
Diversified
Neuroscience
138
—
—
138
118
—
118
20
17 %
20
17 %
Dermatology
47
—
—
47
55
—
55
(8)
(15) %
(8)
(15) %
Generics
14
—
—
14
21
(1)
20
(7)
(33) %
(6)
(30) %
Dentistry
20
—
—
20
25
—
25
(5)
(20) %
(5)
(20) %
Total Diversified
219
—
—
219
219
(1)
218
—
— %
1
— %
Bausch Health (excl. B+L)
revenues
1,458
(13)
(32)
1,413
1,252
(2)
1,250
206
16 %
163
13 %
Bausch + Lomb
Vision Care
784
(4)
—
780
753
(5)
748
31
4 %
32
4 %
Surgical
256
(6)
(3)
247
216
—
216
40
19 %
31
14 %
Pharmaceuticals
354
(2)
—
352
309
—
309
45
15 %
43
14 %
Total Bausch + Lomb
revenues
1,394
(12)
(3)
1,379
1,278
(5)
1,273
116
9 %
106
8 %
Total Bausch Health
Companies Inc. revenues
$ 2,852
$ (25)
$ (35)
$ 2,792
$ 2,530
$ (7)
$ 2,523
$ 322
13 %
$ 269
11 %
(a)
The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.
(b)
To supplement the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. For additional information about the Company's use of such non-GAAP financial measures, refer to the body of the news release to which these tables are attached. Organic revenue (non-GAAP) for the three months ended June 30, 2026 is calculated as revenue as reported adjusted for the impact for changes in exchange rates (previously defined in this news release) and excluding the impact of recent acquisitions. Organic revenue (non-GAAP) for the three months ended June 30, 2025 is calculated as revenue as reported less revenues attributable to divestitures and discontinuances during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period.
Bausch Health Companies Inc.
Table 3b
Organic Growth (non-GAAP) - by Segment
For the Six Months Ended June 30, 2026 and 2025
(unaudited)
Calculation of Organic Revenue for the Six Months Ended
June 30, 2026
June 30, 2025
Change in
GAAP Revenues
Change in
Organic Revenue
Revenue
as
Reported
Changes
in
Exchange
Rates (a)
Acquisitions
Organic
Revenue
(Non-GAAP) (b)
Revenue
as
Reported
Divestitures
and
Discontinuations
Organic
Revenue
(Non-GAAP) (b)
(in millions)
Amount
Pct.
Amount
Pct.
Bausch Health (excl. B+L)
Salix
$ 1,397
$ —
$ —
$ 1,397
$ 1,169
$ (1)
$ 1,168
$ 228
20 %
$ 229
20 %
International
590
(37)
—
553
540
(1)
539
50
9 %
14
3 %
Solta Medical
347
(5)
(64)
278
241
—
241
106
44 %
37
15 %
Diversified
Neuroscience
251
—
—
251
236
—
236
15
6 %
15
6 %
Dermatology
80
—
—
80
101
—
101
(21)
(21) %
(21)
(21) %
Generics
32
—
—
32
39
(1)
38
(7)
(18) %
(6)
(16) %
Dentistry
41
—
—
41
48
—
48
(7)
(15) %
(7)
(15) %
Total Diversified
404
—
—
404
424
(1)
423
(20)
(5) %
(19)
(4) %
Bausch Health (excl. B+L)
revenues
2,738
(42)
(64)
2,632
2,374
(3)
2,371
364
15 %
261
11 %
Bausch + Lomb
Vision Care
1,495
(29)
—
1,466
1,409
(7)
1,402
86
6 %
64
5 %
Surgical
484
(18)
(4)
462
430
—
430
54
13 %
32
7 %
Pharmaceuticals
659
(7)
—
652
576
(1)
575
83
14 %
77
13 %
Total Bausch + Lomb
revenues
2,638
(54)
(4)
2,580
2,415
(8)
2,407
223
9 %
173
7 %
Total Bausch Health
Companies Inc. revenues
$ 5,376
$ (96)
$ (68)
$ 5,212
$ 4,789
$ (11)
$ 4,778
$ 587
12 %
$ 434
9 %
(a)
The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the comparable prior period.
(b)
To supplement the financial measures prepared in accordance with GAAP, the Company uses certain non-GAAP financial measures. For additional information about the Company's use of such non-GAAP financial measures, refer to the body of the news release to which these tables are attached. Organic revenue (non-GAAP) for the six months ended June 30, 2026 is calculated as revenue as reported adjusted for the impact for changes in exchange rates (previously defined in this news release) and excluding the impact of recent acquisitions. Organic revenue (non-GAAP) for the six months ended June 30, 2025 is calculated as revenue as reported less revenues attributable to divestitures and discontinuances during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues from those businesses and assets included in the comparable current period.
Bausch Health Companies Inc.
Table 4
Other Financial Information
(unaudited)
(in millions)
June 30,
2026
December 31,
2025
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents
$ 1,825
$ 1,309
Restricted cash
13
16
Cash, cash equivalents and restricted cash
$ 1,838
$ 1,325
(in millions)
June 30,
2026
December 31,
2025
Debt Obligations
Senior Secured Credit Facilities:
Revolving Credit Facilities
$ 150
$ 100
Term Loan Facilities
5,765
5,787
Senior Secured Notes
10,214
10,235
Senior Unsecured Notes
4,098
4,098
Other
12
12
Total long-term debt and other, net of premiums, discounts and issuance costs
20,239
20,232
Plus: Unamortized premiums, discounts and issuance costs
502
585
Total long-term debt and other
$ 20,741
$ 20,817
(in millions)
June 30,
2026
December 31,
2025
Maturities of Debt Obligations (at principal amount)
Remainder of 2026
$ 29
58
2027
701
701
2028
3,766
4,240
2029
1,667
1,662
2030
4,173
4,118
2031
3,903
3,453
Thereafter
6,000
6,000
Total debt obligations
$ 20,239
$ 20,232
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)
2026
2025
2026
2025
Cash provided by operating activities
$ 671
$ 289
900
500
Net cash impact of legacy legal matters (a)
9
84
167
99
Payments of transformation costs
6
18
14
22
Payments of separation costs and separation-related costs
—
4
—
11
Interest payments charged against debt premium
(56)
(37)
(100)
(164)
Fees paid in connection with debt refinancing
2
84
13
84
Payments of Acquired IPR&D
5
—
16
28
Adjusted cash flows from operations (non-GAAP) (b)
$ 637
$ 442
$ 1,010
$ 580
(a)
Payments of legacy legal settlements, net of insurance recoveries and restitutions.
(b)
This is a non-GAAP measure. For further information on non-GAAP measures and non-GAAP ratios, please refer to the "Non-GAAP Information" section of this news release.
Bausch Health Companies Inc.
Table 4 (continued)
Other Financial Information
(unaudited)
Three Months Ended June 30, 2026
(in millions)
Bausch Health
Companies, Inc.
Bausch + Lomb
Corporation
Bausch Health
(excluding B+L) (b)
Cash provided by operating activities
$ 671
$ 153
$ 517
Payments of legacy legal matters
9
5
5
Payments of transformation costs
6
3
3
Interest payments charged against debt premium
(56)
—
(56)
Fees paid in connection with debt refinancing
2
—
2
Payments of Acquired IPR&D
5
5
—
Adjusted cash flows from operations (non-GAAP) (a)
$ 637
$ 166
$ 471
(a)
This is a non-GAAP measure. Management considers the presentation of Adjusted cash flows from operations for Bausch Health (excl. B+L) (non-GAAP) to be meaningful information and utilizes it in decision making and for compensation purposes. Adjusted cash flows from operations for Bausch Health (excl. B+L) (non-GAAP) is not intended to be representative of GAAP operating activities and Adjusted cash flows from operations for B+L (non-GAAP) is not intended to be representative of discontinued operations as the criteria for that accounting has not been met. As such, Adjusted cash flows from operations excluding B+L (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted cash flows from operations attributable to Bausch Health (non-GAAP) in the future, or if B+L met the criteria to be treated as a discontinued operation during any of the periods presented.
(b)
Amounts may not cross foot due to rounding.
Bausch Health Companies Inc.
Table 5
Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA (non-GAAP)
For the Three Months Ended June 30, 2026 and 2025
(unaudited)
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
(in millions)
Bausch Health
Companies Inc.
Bausch + Lomb
Corporation
Bausch Health
(excluding B+L)
Bausch Health
Companies Inc.
Bausch + Lomb
Corporation
Bausch Health
(excluding B+L)
Net Income (Loss)
$ 260
$ (10)
$ 270
$ 128
$ (58)
$ 186
Interest expense, net
385
89
296
452
125
327
Provision for (benefit from) income taxes
88
(1)
89
12
(89)
101
Depreciation and amortization
281
102
179
307
107
200
EBITDA(a)
1,014
180
834
899
85
814
Adjustments:
Asset impairments
9
9
—
—
—
—
Restructuring, integration and transformation costs
14
7
7
52
49
3
Acquisition-related costs and adjustments (excluding
amortization of intangible assets)
6
2
4
(6)
5
(11)
(Gain) loss on extinguishment of debt
—
—
—
(178)
9
(187)
Share-based compensation
54
38
16
46
30
16
Separation costs and separation-related costs
1
—
1
2
—
2
Other adjustments:
Litigation and other matters, net of insurance
recoveries and restitutions
6
5
1
8
6
2
Other
6
4
2
48
11
37
Adjusted EBITDA (non-GAAP) (a),(b)
$ 1,110
$ 245
$ 865
$ 871
$ 195
$ 676
Impact of Acquired IPR&D
$ 5
$ 5
$ —
$ 1
$ 1
$ —
(a)
This is a non-GAAP measure. Management considers the presentation of Adjusted EBITDA for Bausch Health (excluding B+L) (non-GAAP) to be meaningful information and utilizes it in decision making and for compensation purposes. Adjusted EBITDA for Bausch Health Excluding B+L (non-GAAP) is not intended to be representative of GAAP continuing operations and Adjusted EBITDA for B+L is not intended to be representative of discontinued operations as the criteria for that accounting has not been met. As such, Adjusted EBITDA for Bausch Health excluding B+L (non-GAAP) as included herein may not be indicative of the results of the operations or Adjusted EBITDA attributable to Bausch Health (non-GAAP) in the future, or if B+L met the criteria to be treated as a discontinued operation during any of the periods presented.
(b)
Adjusted EBITDA (non-GAAP) above includes Adjusted EBITDA attributable to noncontrolling interests. For Bausch Health Companies Inc., this amounted to $35 million and $29 million for the three months ended June 30, 2026 and 2025, respectively, which includes $4 million related to B+L in each period.
OneSpaWorld Holdings Limited (OSW) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT
Company Participants
Leonard Fluxman - CEO & Executive Chairman
Stephen Lazarus - President, COO & CFO
Conference Call Participants
Allison Malkin - ICR Inc.
Steven Wieczynski - Stifel, Nicolaus & Company, Incorporated, Research Division
Sharon Zackfia - William Blair & Company L.L.C., Research Division
Randal Konik - Jefferies LLC, Research Division
Maksim Rakhlenko - TD Cowen, Research Division
Gregory Miller - Truist Securities, Inc., Research Division
Andrew May - Northcoast Research Partners, LLC
Assia Georgieva - Infinity Research
Presentation
Operator
Greetings, and welcome to the OneSpaWorld Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Allison Malkin, partner of ICR. Thank you. Please go ahead.
Allison Malkin
ICR Inc.
Thank you. Good morning, and welcome to OneSpaWorld's Second Quarter 2026 Earnings Call and Webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's call and webcast may be deemed to constitute forward-looking statements.
These forward-looking statements reflect our judgment and analysis only as of today, and actual results may differ materially from current expectations based on a number of factors affecting our business. Accordingly, you should not place undue reliance on these forward-looking statements. For a more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements that is included in our second quarter 2026 earnings release, which was furnished to the SEC today on Form 8-K.
We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, the company may refer to certain adjusted non-GAAP metrics on
Continued strength in core growth engines supports reaffirmed Fiscal 2027 outlook
, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended June 30, 2026.
First Quarter Highlights:
Net sales of $874.1 million increased $191.3 million, or 28 percent, from the prior year Net earnings of $74.3 million increased $22.6 million, or 44 percent, from the prior year Adjusted EBITDA of $106.5 million increased $5.1 million, or 5 percent, from the prior year Earnings per share of $1.37 increased $0.42, or 44 percent, from the prior year Adjusted earnings per share of $1.53 increased $0.47, or 44 percent, from the prior year "Our targeted growth businesses continued to deliver strong, sustainable year-over-year top-line improvements, including Data Centers and Commercial HVAC revenue expansion of 90% and 22%, respectively," said Modine President and Chief Executive Officer, Neil D. Brinker. "As anticipated, our first quarter was impacted by the supply chain constraints we discussed last quarter, which limited production and temporarily reduced margins within our Data Centers segment. We are taking decisive actions to secure supply, including working closely with our partners to lock in volume requirements while simultaneously qualifying additional suppliers. These initiatives are yielding positive results, driving sequential volume and margin improvements as the quarter progressed. Our team continues to drive operational efficiency and ramp production across our manufacturing footprint, keeping us fully on track to meet future customer commitments and deliver on our full-year financial outlook."
First Quarter Financial Results
Net sales increased 28 percent to $874.1 million, compared with $682.8 million in the prior year. Sales growth was driven by higher sales in the Data Centers and Commercial HVAC segments, partially offset by lower sales in the Performance Technologies segment.
Gross profit increased 10 percent to $182.0 million and gross margin decreased by 340 basis points to 20.8 percent. Gross profit increased in the Data Centers and Commercial HVAC segments, while Performance Technologies experienced a decline in gross profit. The decrease in gross margin resulted from lower gross margins in all three business segments, as further discussed below.
Selling, general and administrative ("SG&A") expenses increased 22 percent to $103.3 million, but decreased as a percentage of sales. The increase in SG&A expenses was primarily due to higher expenses in the Data Centers segment to support growth, incremental expenses from acquisitions in the Commercial HVAC segment, costs related to the pending spin-off of the Performance Technologies segment, and higher expenses related to incentive compensation.
Operating income decreased 1 percent to $74.8 million. The decrease was driven by higher SG&A expenses to support growth and to prepare for the spin-off of the Performance Technologies segment, partially offset by higher gross profit on higher sales volume, as compared to the prior year. The Company recorded $3.9 million of restructuring expenses during the quarter, primarily severance expenses related to headcount reductions and costs related to equipment transfers. In addition, the Company incurred $7.1 million of costs related to the pending spin-off of the Performance Technologies segment. Adjusted EBITDA, which excludes restructuring expenses, disposition costs, certain other charges, interest expense, the benefit or provision for income taxes, and depreciation and amortization expense, was $106.5 million, an increase of $5.1 million, or 5 percent compared to the prior year.
Earnings per share was $1.37, compared with $0.95 in the prior year, an increase of $0.42 or 44 percent. Adjusted earnings per share was $1.53, compared with adjusted earnings per share of $1.06 in the prior year, an increase of $0.47 or 44 percent. This included a favorable income tax benefit related to shares issued for stock-based incentive compensation awards during the quarter, which is expected to be largely offset by the negative impact of nondeductible compensation within the fiscal year.
First Quarter Segment Review
Data Centers segment sales were $348.6 million, compared with $183.7 million one year ago, an increase of 90 percent. This increase was primarily driven by higher sales to hyperscale customers in North America. The segment reported gross margin of 20.2 percent, which was 960 basis points lower than the prior year. This decrease was primarily due to higher expenses related to the capacity expansion in North America combined with the temporary impact of production inefficiencies due to supply chain constraints, higher material costs, and higher warranty expense, as the prior year benefited from the favorable settlement of a warranty claim. SG&A expenses decreased as a percentage of sales due to the significant increase in revenue. The segment reported operating income of $46.3 million, a 33 percent increase from the prior year, and adjusted EBITDA of $51.7 million, an increase of 27 percent from the prior year. Commercial HVAC segment sales were $261.6 million, compared with $214.2 million one year ago, an increase of 22 percent. This increase was primarily driven by higher coil sales to data center customers and $19.7 million of incremental sales from acquired businesses. The segment reported gross margin of 24.4 percent, which was 280 basis points lower than the prior year, primarily due to unfavorable sales mix and temporary inefficiencies due to production transfers. The segment reported operating income of $31.4 million, a 2 percent decrease from the prior year, and adjusted EBITDA of $41.6 million, a 7 percent increase from the prior year. Performance Technologies segment sales were $277.8 million, compared with $285.5 million one year ago, a decrease of 3 percent. This decrease primarily resulted from lower sales to automotive and commercial vehicle customers due to market weakness, partially offset by higher sales to power generation customers. The segment reported gross margin of 17.6 percent, which was 60 basis points lower than the prior year, primarily due to higher material and tariff costs. The segment reported operating income of $27.6 million, a 4 percent increase from the prior year, and adjusted EBITDA of $36.2 million, a 3 percent decrease from the prior year. Balance Sheet & Liquidity
Net cash provided by operating activities for the quarter ended June 30, 2026, was $41.4 million, an increase of $13.7 million compared to the prior year. Free cash flow for the quarter ended June 30, 2026, was a use of $5.0 million, a decrease of $5.2 million from the prior year. This decrease was primarily due to higher capital expenditures to increase production capacity in the Data Centers segment, partially offset by favorable net changes in working capital. Cash payments for restructuring activities and disposition costs totaled $14.9 million during the quarter ended June 30, 2026.
Total debt was $528.2 million as of June 30, 2026. Cash and cash equivalents totaled $95.3 million as of June 30, 2026. Net debt was $432.9 million as of June 30, 2026, an increase of $70.1 million from the end of fiscal 2026. This increase resulted from purchases of stock in conjunction with our equity compensation plan. Under this plan, participants have the option to sell back shares of their vested equity awards to satisfy individual tax withholding obligations. These repurchased shares are held as treasury stock, which reduces the number of shares outstanding used to calculate earnings per share.
Outlook
"Our financial outlook for Fiscal 2027 remains unchanged, and we remain confident in our ability to deliver another year of record-breaking results," said Modine President and Chief Executive Officer, Neil D. Brinker. "In response to the near-term supply chain challenges in our Data Centers segment, we are taking decisive actions to resolve these bottlenecks and have already made significant progress. Demand for our products remains robust as evidenced by three consecutive quarters of record order intake leading to our backlog nearly doubling over the past year. Now we are focused on operational execution across the enterprise, which will allow us to deliver on our near- and long-term goals. Simultaneously, we are also progressing on our long-term strategic transformation. Our planned spin-off and merger of the Performance Technologies business with Gentherm remains firmly on schedule to close in the fourth calendar quarter of this year, having cleared several major milestones this past quarter."
The current full-year guidance remains unchanged and continues to reflect the Performance Technologies business for the entirety of fiscal 2027. Following the close of the transaction (expected in the fourth quarter of calendar 2026), Modine will issue an updated outlook reflecting the continuing business.
Fiscal 2027
Current Outlook
Net Sales
+20% to 35%
Adjusted EBITDA
$650 to $680 million
Conference Call and Webcast
Modine will conduct a conference call and live webcast, with a slide presentation, on Thursday, July 30, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss its first quarter fiscal year 2027 financial results. The webcast and accompanying slides will be available on the Investor Relations section of the Modine website at www.modine.com. Participants are encouraged to log on to the webcast and conference call about ten minutes prior to the start of the event. A replay of the audio and slides will be available on the Investor Relations section of the Modine website at www.modine.com on or after July 30, 2026. A call-in replay will be available through midnight on August 6, 2026, at 877-660-6853, (international replay 201-612-7415); Conference ID# 13761279. The Company will post a transcript of the call on its website on or after August 3, 2026.
About Modine
For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 13,000 employees worldwide, our businesses advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, enable cleaner running vehicles, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit www.modine.com.
Forward-Looking Statements
This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's most recent Annual Report on Form 10-K. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to geopolitical tensions and military conflicts, including the conflict between the U.S. and Iran, inflation, energy costs, government incentive or funding programs, supply chain challenges or supplier constraints, logistical disruptions, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, changes in interest rates, tightening of the credit markets, recession or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the U.S. or abroad, including those related to tax and trade, climate change, and public health threats; the overall health and pricing focus of our customers; changes or threats to the market growth prospects for our customers; our ability to successfully exit portions of our business that do not align with our strategic plans, including the various risks related to the pending Reverse Morris Trust transaction with Gentherm; our ability to realize the sales growth and return on investments anticipated in our Data Centers segment and our ability to execute on other organic growth opportunities and acquisitions; our ability to realize anticipated benefits, including improved profit margins and cash flow, from strategic initiatives and our continued application of 80/20 principles across our businesses; our ability to be at the forefront of technological advances and the impacts of any changes in the adoption rate of technologies that we expect to drive sales growth; our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses, particularly in our Data Centers segment, while also completing restructuring activities and realizing benefits thereof; our ability to fund our global liquidity requirements efficiently and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of product or program launches, unexpected volume increases or decreases, product transfers and product warranty and liability claims; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; our ability to recruit and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation and the increasing emphasis on environmental, social and corporate governance matters; our ability to realize the benefits of deferred tax assets and the impact of changes in tax regulations; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any forward-looking statements.
Non-GAAP Financial Disclosures
Adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, net debt, free cash flow, organic sales and organic sales growth (which are defined below) as used in this press release are not measures that are defined in generally accepted accounting principles (GAAP). These non-GAAP measures are used by management as performance measures to evaluate the Company's overall financial performance and liquidity. These measures are not, and should not be viewed as, substitutes for the applicable GAAP measures, and may be different from similarly titled measures used by other companies.
Definition – Adjusted EBITDA and adjusted EBITDA margin
The Company defines adjusted EBITDA as net earnings excluding interest expense, the provision or benefit for income taxes, depreciation and amortization expenses, other income and expense, restructuring expenses, impairment charges, pension termination charges, acquisition and disposition costs, and certain other gains or charges. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of net sales. The Company believes that adjusted EBITDA and adjusted EBITDA margin provide relevant measures of profitability and earnings power. The Company views these financial metrics as being useful in assessing operating performance from period to period by excluding certain items that it believes are not representative of its core business. Adjusted EBITDA, when calculated for the business segments, is defined as operating income excluding depreciation and amortization expenses, restructuring expenses, impairment charges, and certain other gains or charges.
Definition – Adjusted earnings per share
Diluted earnings per share plus restructuring expenses, impairment charges, pension termination charges, acquisition and disposition costs, and excluding changes in income tax valuation allowances and certain other gains or charges. Adjusted earnings per share is an overall performance measure, not including costs associated with restructuring, acquisitions, and dispositions and certain other gains or charges.
Definition – Net debt
The sum of debt due within one year and long-term debt, less cash and cash equivalents. Net debt is an indicator of the Company's debt position after considering on-hand cash balances.
Definition – Free cash flow
Free cash flow represents net cash provided by operating activities less expenditures for property, plant and equipment. Free cash flow presents cash generated from operations during the period that is available for strategic capital decisions.
Definition – Organic sales and organic sales growth
Net sales and net sales growth can be impacted by acquisitions, dispositions, and foreign currency exchange rate fluctuations. The Company defines organic sales as external net sales excluding the impact of acquisitions and the effects of foreign currency exchange rate fluctuations. Organic sales growth represents the percentage change of organic sales compared to prior year external net sales, excluding the impact of dispositions. The effect of exchange rate changes is calculated by using the same foreign currency exchange rates as those used to translate financial data for the prior period. The Company adjusts for acquisitions and dispositions by excluding net sales in the current and prior periods, respectively, for which there are no comparable sales in the reported periods. These sales growth measures provide a more consistent indication of our performance, without the effects of foreign currency exchange rate fluctuations or acquisitions and dispositions.
Forward-looking non-GAAP financial measure
The Company's fiscal 2027 guidance includes adjusted EBITDA, as defined above, which is a non-GAAP financial measure. The fiscal 2027 guidance includes the Company's estimates for interest expense of approximately $24 to $27 million, a provision for income taxes of approximately $130 to $140 million, and depreciation and amortization expense of approximately $87 to $92 million. The non-GAAP financial measure also excludes certain cash and non-cash expenses or gains. These expenses and gains may be significant and include items such as restructuring expenses (including severance and equipment transfer costs), impairment charges, acquisition and disposition costs, and certain other items. These expenses for the first three months of fiscal 2027 are presented on page 8. In connection with the pending Reverse Morris Trust transaction with Gentherm, the Company expects to incur approximately $25 to $35 million of additional costs during the remainder of fiscal 2027, primarily for transaction advisory, legal, accounting, tax and other professional services. Estimates of other expenses and gains for the remainder of fiscal 2027 are not available due to the low visibility and unpredictability of these items.
Modine Manufacturing Company
Consolidated statements of operations (unaudited)
(In millions, except per share amounts)
Three months ended June 30,
2026
2025
Net sales
$
874.1
$
682.8
Cost of sales
692.1
517.4
Gross profit
182.0
165.4
Selling, general & administrative expenses
103.3
84.9
Restructuring expenses
3.9
4.8
Operating income
74.8
75.7
Interest expense
(6.4)
(5.8)
Other income (expense) – net
0.2
(4.2)
Earnings before income taxes
68.6
65.7
Benefit (provision) for income taxes
5.7
(14.0)
Net earnings
74.3
51.7
Net earnings attributable to noncontrolling interest
(0.4)
(0.5)
Net earnings attributable to Modine
$
73.9
$
51.2
Net earnings per share attributable to Modine shareholders – diluted
$
1.37
$
0.95
Weighted-average shares outstanding – diluted
54.0
53.7
Condensed consolidated balance sheets (unaudited)
(In millions)
June 30, 2026
March 31, 2026
Assets
Cash and cash equivalents
$
95.3
$
73.5
Trade receivables
659.9
731.0
Inventories
609.0
506.1
Other current assets
162.7
105.5
Total current assets
1,526.9
1,416.1
Property, plant and equipment – net
536.1
520.9
Intangible assets – net
190.2
197.0
Goodwill
290.2
292.1
Deferred income taxes
88.7
85.3
Other noncurrent assets
163.3
163.2
Total assets
$
2,795.4
$
2,674.6
Liabilities and shareholders' equity
Debt due within one year
$
52.0
$
51.4
Accounts payable
508.9
464.8
Other current liabilities
188.9
212.7
Total current liabilities
749.8
728.9
Long-term debt
476.2
384.9
Other noncurrent liabilities
359.6
358.0
Total liabilities
1,585.6
1,471.8
Total equity
1,209.8
1,202.8
Total liabilities & equity
$
2,795.4
$
2,674.6
Modine Manufacturing Company
Condensed consolidated statements of cash flows (unaudited)
(In millions)
Three months ended June 30,
2026
2025
Cash flows from operating activities:
Net earnings
$
74.3
$
51.7
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
20.7
19.0
Stock-based compensation expense
8.0
5.3
Deferred income taxes
(3.8)
0.7
Other – net
1.1
2.6
Changes in operating assets and liabilities:
Trade accounts receivable
68.3
(10.6)
Inventories
(105.4)
(61.6)
Accounts payable
58.0
46.7
Other assets and liabilities
(79.8)
(26.1)
Net cash provided by operating activities
41.4
27.7
Cash flows from investing activities:
Expenditures for property, plant and equipment
(46.4)
(27.5)
Payments for business acquisitions, net of cash acquired
—
(119.0)
Other – net
—
2.5
Net cash used for investing activities
(46.4)
(144.0)
Cash flows from financing activities:
Net increase in debt
91.9
172.0
Purchases of treasury stock
(64.6)
(5.1)
Other – net
(0.2)
—
Net cash provided by financing activities
27.1
166.9
Effect of exchange rate changes on cash
(0.3)
2.2
Net increase in cash, cash equivalents and restricted cash
21.8
52.8
Cash, cash equivalents and restricted cash – beginning of period
73.7
71.9
Cash, cash equivalents and restricted cash – end of period
$
95.5
$
124.7
Modine Manufacturing Company
Segment operating results (unaudited)
(In millions)
Three months ended June 30,
2026
2025
Net sales:
Data Centers
$
348.6
$
183.7
Commercial HVAC
261.6
214.2
Performance Technologies
277.8
285.5
Segment total
888.0
683.4
Corporate and eliminations
(13.9)
(0.6)
Net sales
$
874.1
$
682.8
Three months ended June 30,
2026
2025
$'s
% of sales
$'s
% of sales
Gross profit:
Data Centers
$
70.3
20.2
%
$
54.7
29.8
%
Commercial HVAC
63.9
24.4
%
58.2
27.2
%
Performance Technologies
48.8
17.6
%
51.9
18.2
%
Segment total
183.0
20.6
%
164.8
24.1
%
Corporate and eliminations
(1.0)
—
0.6
—
Gross profit
$
182.0
20.8
%
$
165.4
24.2
%
Three months ended June 30,
2026
2025
Operating income:
Data Centers
$
46.3
$
34.7
Commercial HVAC
31.4
32.2
Performance Technologies
27.6
26.5
Segment total
105.3
93.4
Corporate and eliminations
(30.5)
(17.7)
Operating income
$
74.8
$
75.7
Modine Manufacturing Company
Adjusted financial results (unaudited)
(In millions, except per share amounts)
Three months ended June 30,
2026
2025
Net earnings
$
74.3
$
51.7
Interest expense
6.4
5.8
(Benefit) provision for income taxes
(5.7)
14.0
Depreciation and amortization expense
20.7
19.0
Other (income) expense – net
(0.2)
4.2
Restructuring expenses (a)
3.9
4.8
Disposition costs (b)
7.1
—
Acquisition and integration costs (c)
—
1.9
Adjusted EBITDA
$
106.5
$
101.4
Net earnings per share attributable to Modine shareholders – diluted
$
1.37
$
0.95
Restructuring expenses (a)
0.06
0.08
Disposition costs (b)
0.10
—
Acquisition and integration costs (c)
—
0.03
Adjusted earnings per share
$
1.53
$
1.06
____
(a)
Restructuring expenses primarily consist of employee severance expenses and equipment transfer costs. The tax benefit related to restructuring expenses during both the first quarter of fiscal 2027 and fiscal 2026 was $0.7 million.
(b)
Disposition costs primarily relate to the pending Reverse Morris Trust transaction with Gentherm and include fees for legal, accounting, tax, and other professional services and other costs directly related to the transaction. The tax benefit related to the disposition costs during the first quarter of fiscal 2027 was $1.7 million.
(c)
Acquisition and integration costs primarily related to the Company's fiscal 2026 acquisitions, including L.B. White, AbsolutAire, and Climate by Design International. The costs primarily included fees for legal, accounting, and other professional services and costs directly associated with integration activities. In addition, the adjustment for the first quarter of fiscal 2026 includes $0.2 million for the impact of an inventory purchase accounting adjustment. The tax benefit related to the acquisition-related costs and adjustments during the first quarter of fiscal 2026 was $0.4 million.
Modine Manufacturing Company
Segment adjusted financial results (unaudited)
(In millions)
Three months ended June 30, 2026
Three months ended June 30, 2025
Data
Commercial
Performance
Corporate and
Data
Commercial
Performance
Corporate and
Centers
HVAC
Technologies
eliminations
Total
Centers
HVAC
Technologies
eliminations
Total
Operating income
$
46.3
$
31.4
$
27.6
$
(30.5)
$
74.8
$
34.7
$
32.2
$
26.5
$
(17.7)
$
75.7
Depreciation and
amortization expense
5.4
8.0
6.9
0.4
20.7
5.7
5.5
7.5
0.3
19.0
Restructuring expenses (a)
—
2.2
1.7
—
3.9
0.2
1.1
3.5
—
4.8
Disposition costs (a)
—
—
—
7.1
7.1
—
—
—
—
—
Acquisition and
integration costs (a)
—
—
—
—
—
—
—
—
1.9
1.9
Adjusted EBITDA
$
51.7
$
41.6
$
36.2
$
(23.0)
$
106.5
$
40.6
$
38.8
$
37.5
$
(15.5)
$
101.4
Net sales
$
348.6
$
261.6
$
277.8
$
(13.9)
$
874.1
$
183.7
$
214.2
$
285.5
$
(0.6)
$
682.8
Adjusted EBITDA
margin
14.8
%
15.9
%
13.0
%
12.2
%
22.1
%
18.1
%
13.1
%
14.9
%
____
(a)
See the Adjusted EBITDA reconciliations on the previous page for information on restructuring expenses and other adjustments.
Modine Manufacturing Company
Net debt (unaudited)
(In millions)
June 30, 2026
March 31, 2026
Debt due within one year
$
52.0
$
51.4
Long-term debt
476.2
384.9
Total debt
528.2
436.3
Less: cash and cash equivalents
95.3
73.5
Net debt
$
432.9
$
362.8
Free cash flow (unaudited)
(In millions)
Three months ended June 30,
2026
2025
Net cash provided by operating activities
$
41.4
$
27.7
Expenditures for property, plant and equipment
(46.4)
(27.5)
Free cash flow
$
(5.0)
$
0.2
Organic sales and organic sales growth (unaudited)
FTAI Aviation ve 2. čtvrtletí zvýšila čistý zisk připadající akcionářům na 117,6 mil. USD a schválila čtvrté po sobě jdoucí zvýšení dividendy na 0,50 USD na akcii.
July 29, 2026 16:15 ET | Source: FTAI Aviation Ltd.
NEW YORK, July 29, 2026 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the second quarter 2026. The Company’s consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release.
Financial Overview
(in thousands, except per share data) Selected Financial Results Q2’26
Net Income Attributable to Shareholders $117,585 Basic Earnings per Ordinary Share $1.15 Diluted Earnings per Ordinary Share $1.13 Adjusted EBITDA (1) $291,444 (1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.
Second Quarter 2026 Dividends
The Company’s Board of Directors (the “Board”) declared a cash dividend on its ordinary shares of $0.50 per share for the quarter ended June 30, 2026, payable on August 24, 2026 to the holders of record on August 12, 2026.
Additionally, the Board declared cash dividends on its Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares (“Series D Preferred Shares”) of $0.59375 per share, respectively, for the quarter ended June 30, 2026, payable on September 15, 2026 to the holders of record on September 1, 2026.
Business Highlights
Generated Aerospace Products revenue of $875.0 million and Adjusted EBITDA of $249.7 million in Q2 2026, increases of 78% and 51%, respectively, compared to Q2 2025 (1)FTAI Power announced a $1.465 billion customer contract, which is expected to account for a substantial portion of its 2027 delivery targetEntered into strategic partnerships with GMF Indonesia and EgyptAir, adding engine maintenance capacity and geographic coverage to support further market share expansionAnnounced a strategic collaboration with cargo-conversion leader Aeronautical Engineers, Inc. to deliver more cost-effective Boeing 737-800 freighters globally while extending the life of the CFM56 engineCompleted deployment of Strategic Capital's 2025 SPV, which is fully committed and made its first quarterly distribution on June 30, and launched the 2026 SPV, which has begun making aircraft acquisition commitmentsIntroduced Business Segment 2027 Adjusted EBITDA guidance of $2.3 billion, comprised of $1.4 billion from Aerospace Products, $450 million from FTAI Power and $450 million from Aviation Leasing (1)(2)Reaffirmed 2026 Aerospace Products Adjusted EBITDA guidance of $1,050 million and updated 2026 Aviation Leasing guidance from $575 million to $475 million reflecting our continued shift to an asset-light business model (1)(2) “FTAI delivered another strong quarter, led by record Aerospace Products performance and a landmark customer contract for FTAI Power," said Joe Adams, Chairman and CEO. "Across the business, we continued to execute on our strategic evolution — expanding our maintenance network into Indonesia and Egypt, delivering more modules to more customers worldwide and advancing Strategic Capital with the launch of the 2026 SPV. With our fourth consecutive dividend increase, we remain confident in our outlook and our ability to deliver sustained growth and long-term value for our shareholders”
(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.
(2) This is a forward-looking statement. Please see Cautionary Note Regarding Forward-Looking Statements below.
Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Center section of the Company’s website, https://www.ftaiaviation.com/, and the Company’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein.
Conference Call
In addition, management will host a conference call on Thursday, July 30, 2026 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register-conf.media-server.com/register/BI9c65a898178b489f8ac3487fcee4b03f. Once registered, participants will receive a dial-in and unique pin to access the call.
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at https://www.ftaiaviation.com/. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.
A replay of the conference call will be available after 11:30 A.M. on Thursday, July 30, 2026 through 11:30 A.M. on Thursday, August 6, 2026 on https://ir.ftaiaviation.com/news-events/event-calendar/.
The information contained on, or accessible through, any websites included in this press release is not incorporated by reference into, and should not be considered a part of, this press release.
About FTAI Aviation Ltd.
FTAI combines advanced turbine technology and asset ownership to power the world’s most essential markets. Additional information is available at https://www.ftaiaviation.com/.
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, whether FTAI will be able to expand market share, ability to deliver more cost-effective Boeing 737-800 freighters globally while extending the life of the CFM56 engine, 2026 or 2027 Adjusted EBITDA guidance, and the ability to deliver sustained growth and long-term value for our shareholders. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company’s control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company’s website (www.ftaiaviation.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
For further information, please contact:Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414 [email protected]
FTAI AVIATION LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollar amounts in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues Aerospace products revenue $692,229 $420,686 $1,214,814 $685,111 MRE Contract revenue 182,799 69,585 404,029 170,223 Lease income 27,765 62,439 67,657 130,879 Maintenance revenue 25,793 73,104 56,392 122,711 Asset sales revenue 16,925 47,915 27,109 66,854 Other revenue (1) 7,574 2,508 13,781 2,539 Total revenues 953,085 676,237 1,783,782 1,178,317 Expenses Cost of sales 635,782 369,258 1,160,050 617,972 Operating expenses 67,567 34,328 132,554 66,766 General and administrative 2,245 2,442 4,658 5,558 Acquisition and transaction expenses 5,699 4,489 22,060 11,781 Depreciation and amortization 46,986 55,236 99,275 114,798 Total expenses 758,279 465,753 1,418,597 816,875 Other (expense) income Interest expense (64,102) (63,965) (125,509) (126,005)Equity in earnings (losses) of unconsolidated entities (2) 9,970 (5,003) 7,607 (12,617)Gain on sale to the 2025 Partnership 2,465 34,604 17,633 45,474 Other income 7,574 27,156 55,156 60,227 Total other expense (44,093) (7,208) (45,113) (32,921)Income before income taxes 150,713 203,276 320,072 328,521 Provision for income taxes 25,619 37,878 57,079 60,737 Net income 125,094 165,398 262,993 267,784 Less: Dividends on preferred shares 3,709 3,709 7,418 9,824 Less: Loss on redemption of preferred shares 3,800 — 3,800 6,327 Net income attributable to shareholders $117,585 $161,689 $251,775 $251,633 Earnings per share: Basic $1.15 $1.58 $2.45 $2.45 Diluted $1.13 $1.57 $2.42 $2.44 Weighted average shares outstanding: Basic 102,597,464 102,558,777 102,588,692 102,555,644 Diluted 104,044,113 103,147,860 104,039,259 103,144,727
(1) Includes servicing fees of $6,988 and $12,849 for the three and six months ended June 30, 2026, respectively (2025 - $2,052 and $2,600, respectively), from the 2025 Partnership.
(2) Includes the profit elimination of $(6,597) and $(16,597) for the three and six months ended June 30, 2026, respectively (2025 - $(4,935) and $(11,885), respectively), for sales to the 2025 Partnership. FTAI AVIATION LTD.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share and per share data)
(Unaudited)
June 30, 2026
December 31, 2025
Assets Current Assets Cash and cash equivalents $337,195 $300,476 Accounts receivable, net (1) 168,202 209,907 Inventory, net 1,544,592 1,193,773 Other current assets (2) 491,107 408,364 Total current assets 2,541,096 2,112,520 Leasing equipment, net 1,146,373 1,545,804 Property, plant, and equipment, net 134,742 120,068 Investments 401,803 314,156 Intangible assets, net 13,048 19,929 Goodwill 94,221 94,221 Other non-current assets 157,879 167,060 Total assets $4,489,162 $4,373,758 Liabilities Current Liabilities Accounts payable $261,671 $208,224 Accrued liabilities 100,159 90,009 Current maintenance deposits 17,926 25,439 Current security deposits 12,368 14,001 Other current liabilities 89,086 62,202 Total current liabilities 481,210 399,875 Long-term debt, net 3,453,320 3,448,891 Non-current maintenance deposits 18,815 46,237 Non-current security deposits 7,574 15,211 Other non-current liabilities 124,256 129,370 Total liabilities $4,085,175 $4,039,584 Commitments and contingencies Equity Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 102,625,424 and 102,573,283 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) $1,026 $1,026 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 2,600,000 and 6,800,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) 26 68 Additional paid in capital — 50,567 Retained earnings 402,935 282,513 Shareholders' equity 403,987 334,174 Total liabilities and equity $4,489,162 $4,373,758
(1) Includes accounts receivable from the 2025 Partnership of $25,456 as of June 30, 2026 (December 31, 2025 - $47,294).
(2) Includes receivables from the 2025 Partnership of $9,267 as of June 30, 2026 (December 31, 2025 - $20,681).
Key Performance Measures
In addition to net income (loss), the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, utilizes Adjusted EBITDA as a key performance measure. Adjusted EBITDA is not a financial measure in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). This performance measure provides the CODM with the information necessary to assess operational performance and make resource and allocation decisions. We believe Adjusted EBITDA is a useful metric for investors and analysts for similar purposes of assessing our operational performance.
Adjusted EBITDA is defined as net income (loss) attributable to shareholders, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, asset impairment charges, incentive allocations, depreciation and amortization expense, interest expense and dividends on preferred shares, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities, if any.
Reconciliations of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures are not included in this press release because the most directly comparable GAAP financial measures are not available on a forward-looking basis without unreasonable effort.
The following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:
Three Months Ended
June 30,
Change
Six Months Ended
June 30,
Change
(in thousands) 2026 2025 2026 2025 Net income attributable to shareholders $117,585 $161,689 $(44,104) $251,775 $251,633 $142 Add: Provision for income taxes 25,619 37,878 (12,259) 57,079 60,737 (3,658)Add: Equity-based compensation expense 7,332 5,515 1,817 13,679 10,404 3,275 Add: Acquisition and transaction expenses 5,699 4,489 1,210 22,060 11,781 10,279 Add: Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations 3,800 — 3,800 3,800 6,327 (2,527)Add: Asset impairment charges — — — — — — Add: Incentive allocations — — — — — — Add: Depreciation and amortization expense (1) 52,118 65,677 (13,559) 111,631 134,064 (22,433)Add: Interest expense and dividends on preferred shares 67,812 67,674 138 132,928 135,829 (2,901)Add: Internalization fee to affiliate — — — — — — Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) 28,046 4,815 23,231 48,273 4,856 43,417 Less: Equity in (earnings) losses of unconsolidated entities (3) (16,567) 68 (16,635) (24,204) 732 (24,936)Adjusted EBITDA (non-GAAP) $291,444 $347,805 $(56,361) $617,021 $616,363 $658
(1) Includes the following items for the three months ended June 30, 2026: (i) depreciation and amortization expense of $46,986 (2025 - $55,236), (ii) lease intangible amortization of $(89) (2025 - $2,153) and (iii) amortization for lease incentives of $5,221 (2025 - $8,288).
Includes the following items for the six months ended June 30, 2026: (i) depreciation and amortization expense of $99,275 (2025 - $114,798), (ii) lease intangible amortization of $248 (2025 - $5,359) and (iii) amortization for lease incentives of $12,108 (2025 - $13,907).
(2) Includes the following items for the three months ended June 30, 2026: (i) net income of $16,567 (2025 - net loss of $68), (ii) interest expense of $5,771 (2025 - $1,490), (iii) depreciation and amortization expense of $5,680 (2025 - $3,470), (iv) acquisition and transaction expenses of $0 (2025 - $(77)), and (v) tax expense of $28 (2025 - $0).
Includes the following items for the six months ended June 30, 2026: (i) net income of $24,204 (2025 - $732), (ii) interest expense of $9,267 (2025 - $1,490), (iii) depreciation and amortization expense of $14,747 (2025 - $3,628), (iv) acquisition and transaction expenses of $0 (2025 - $470), and (v) tax expense of $55 (2025 - $0).
(3) Excludes the profit elimination of $6,597 and $16,597 for the three and six months ended June 30, 2026, respectively (2025 - $4,935 and $11,885, respectively ), for sales to the 2025 Partnership.
In addition, the following table sets forth a reconciliation of net income attributable to shareholders to Adjusted EBITDA for Aerospace Products for the three and six months ended June 30, 2026 and 2025: Three Months Ended
June 30, Change
Six Months Ended
June 30, Change
(in thousands) 2026 2025 2026 2025 Net income attributable to shareholders $194,244 $133,582 $60,662 $377,979 $240,225 $137,754 Add: Provision for income taxes 49,970 25,827 24,143 83,667 45,202 38,465 Add: Equity-based compensation expense 223 168 55 250 323 (73)Add: Acquisition and transaction expenses 144 1,414 (1,270) 129 2,546 (2,417)Add: Losses on the modification or extinguishment of debt and preferred shares and capital lease obligations — — — — — — Add: Asset impairment charges — — — — — — Add: Incentive allocations — — — — — — Add: Depreciation and amortization expense 4,903 3,704 1,199 9,581 7,288 2,293 Add: Interest expense and dividends on preferred shares — — — — — — Add: Internalization fee to affiliate — — — — — — Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1) 50 883 (833) 464 1,052 (588)Less: Equity in losses (earnings) of unconsolidated entities 182 (714) 896 222 (827) 1,049 Adjusted EBITDA (non-GAAP) $249,716 $164,864 $84,852 $472,292 $295,809 $176,483
(1) Includes the following items for the three months ended June 30, 2026: (i) net loss of $182 (2025 - net income of $714), (ii) depreciation and amortization expense of $204 (2025 - $169), and (iii) tax expense of $28 (2025 - $0).
Includes the following items for the six months ended June 30, 2026: (i) net loss of $222 (2025 - net income of $827), (ii) depreciation and amortization expense of $631 (2025 - $225), and (iii) tax expense of $55 (2025 - $0).
GFL Environmental ve 2. čtvrtletí zvýšila tržby o 16,3 % na 1 947,8 mil. USD a upravený EBITDA o 14,8 % na 591,2 mil. USD. Zároveň podruhé letos zvedla celoroční výhled.
Revenue, Adjusted EBITDA1 and Adjusted Free Cash Flow1 all ahead of expectations Underlying Adjusted EBITDA margin1 expansion of 125 basis points, excluding the impacts of M&A, commodities and diesel prices 6.4% organic revenue growth, accelerating sequentially by 180 basis points Adjusted EBITDA1 of $591.2 million, increase of 14.8%; Adjusted Net Income from continuing operations1 of $67.8 million; Net loss from continuing operations of $162.6 million Year-to-date completed acquisitions generating approximately $435.0 million to $460.0 million in annualized revenue Raised full year 2026 guidance for the second time this year; now expecting mid-to-high teens growth across key financial metrics before considering significant likely upside from SECURE , /PRNewswire/ -- GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL", "we", "our", or the "Company") today announced its results for the second quarter of 2026.
"Our exceptional start to the year continued into the second quarter, driven by the hard work and commitment of our over 15,000 employees," said Patrick Dovigi, Founder and Chief Executive Officer of GFL. "We again delivered industry-leading top-line growth of 16.3%, including 6.1% from core pricing. The consistency of our execution across multiple quarters, even against a backdrop of macroeconomic uncertainty, reflects the durability of our platform and the discipline of our team. Given the continued strength in our base business, we are once again raising our full-year guidance. Our organic growth trends, pricing discipline, and the contribution from acquisitions completed to date give us confidence in the increased outlook, and we remain well positioned to build on this momentum through the balance of the year."
Mr. Dovigi continued, "On our proposed acquisition of SECURE Waste, SECURE shareholders approved the transaction in May and the transaction is now progressing through regulatory review. We are still targeting closing for the latter part of 2026. We continue to believe that the acquisition of SECURE will create significant long-term value for both GFL and SECURE shareholders as we meaningfully accelerate the multi-year financial targets outlined at our 2025 Investor Day. We look forward to providing an updated outlook as we approach closing later this year."
Mr. Dovigi concluded, "We have recently received unsolicited preliminary expressions of interest from multiple parties to take the company private, as is often the case when there is a valuation disconnect. The Board has formed a special committee of independent directors to oversee any discussions that might ensue. There can be no guarantee that any expressions of interest will result in a transaction."
Second Quarter Results
Revenue of $1,947.8 million in the second quarter of 2026, an increase of 16.3%, including 6.1% from core pricing. Adjusted EBITDA1 increased by 14.8% to $591.2 million in the second quarter of 2026, compared to $515.1 million in the second quarter of 2025. Adjusted EBITDA margin1 was 30.4% in the second quarter of 2026, compared to 30.7% in the second quarter of 2025, reflecting 125 basis points of underlying margin expansion when excluding the impacts of M&A, commodities and diesel prices. Net loss from continuing operations was $162.6 million in the second quarter of 2026, compared to net income from continuing operations of $259.7 million in the second quarter of 2025. Adjusted Free Cash Flow1 was $236.7 million in the second quarter of 2026, compared to $137.1 million in the second quarter of 2025. During the second quarter of 2026, we repurchased 300,000 subordinate voting shares under our normal course issuer bid. We intend to continue to be opportunistic on further share repurchases going forward. Year to Date Results
Revenue of $3,591.6 million for the six months ended June 30, 2026, an increase of 11.0%, including 6.5% from core pricing. Adjusted EBITDA1 increased by 13.7% to $1,069.7 million for the six months ended June 30, 2026, compared to $941.2 million for the six months ended June 30, 2025. Adjusted EBITDA margin1 was 29.8% for the six months ended June 30, 2026, compared to 29.1% for the six months ended June 30, 2025. Net loss from continuing operations was $381.8 million for the six months ended June 30, 2026, compared to net income from continuing operations of $33.1 million for the six months ended June 30, 2025. Adjusted Free Cash Flow1 was $212.4 million for the six months ended June 30, 2026, compared to $150.8 million for the six months ended June 30, 2025. Updated Full Year 2026 Guidance2
GFL also provided its updated guidance for 2026 assuming a USD/CAD exchange rate of 1.40 for the remainder of the year (compared to 1.36 provided in our original guidance on February 11, 2026).
Revenue is estimated to be approximately $7,510 million to $7,530 million, compared to the prior guidance of approximately $7,320 million to $7,340 million. Adjusted EBITDA2 is estimated to be approximately $2,290 million, compared to the prior guidance of approximately $2,230 million. Full year Adjusted EBITDA margin2 is expected to be approximately 30.5%, an increase of 10 basis points compared to the prior guidance despite incremental headwinds from diesel prices. Adjusted Free Cash Flow2 is estimated to be approximately $900 million, compared to the prior guidance of approximately $850 million. Full year net capex is expected to be approximately $850 million. Full year cash interest is expected to be approximately $445 million. Net Leverage2 is estimated to be in the mid 3s by the end of 2026. The 2026 updated guidance includes the expected contribution of acquisitions completed as of July 1, 2026, net of divestitures completed to date, but excludes any impact from acquisitions not yet completed. Implicit in forward-looking information in respect of our expectations for 2026 are certain current assumptions, including, among others, no changes to the current economic environment, including fuel and commodities. The 2026 updated guidance assumes GFL will continue to execute on our strategy of organically growing our business, leveraging our scalable network to attract and retain customers across multiple service lines, realizing operational efficiencies and extracting procurement and cost synergies. See "Forward-Looking Information".
______________________
(1)
A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
(2)
Information contained in the section titled "Updated Full Year 2026 Guidance" includes non-IFRS measures and ratios, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow and Net Leverage. Due to the uncertainty of the likelihood, amount and timing of effects of events or circumstances to be excluded from these measures, GFL does not have information available to provide a quantitative reconciliation of such projections to comparable IFRS measures. See "Non-IFRS Measures" below. See Second Quarter Results for the equivalent historical non-IFRS measure.
Q2 2026 Earnings Call
GFL will host a conference call related to our second quarter earnings on July 30, 2026 at 8:30 am Eastern Time. A live audio webcast of the conference call can be accessed by logging onto our Investors page at investors.gflenv.com or by clicking here. Listeners may access the call toll-free by dialing 1-833-769-6440 in Canada or 1-833-461-5787 in the United States (meeting ID: 884 908 323) approximately 15 minutes prior to the scheduled start time.
We encourage participants who will be dialing in to pre-register for the conference call using the following link: https://events.q4inc.com/analyst/884908323?pwd=PWAeME8n. Callers who pre-register will be given a conference access code and PIN to gain immediate access to the call and bypass the live operator on the day of the call. Participants may pre-register at any time, including up to and after the call start time. For those unable to listen live, an audio replay of the call will be available by using the following link: https://events.q4inc.com/attendee/884908323.
About GFL
GFL is the fourth largest diversified environmental services company in North America, providing comprehensive solid waste management services from its platform of facilities throughout Canada and 18 U.S. states. GFL has a workforce of more than 15,500 employees across its organization.
For more information, visit the GFL web site at gflenv.com. To subscribe for investor email alerts please visit investors.gflenv.com or click here.
Forward-Looking Information
This release includes certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable U.S. and Canadian securities laws, respectively. Forward-looking information includes all statements that do not relate solely to historical or current facts and may relate to our future outlook, financial guidance and anticipated events or results and may include statements regarding our financial performance, financial condition or results, business strategy, growth strategies, budgets, operations and services. Particularly, statements regarding our expectations of future results, performance, achievements, prospects or opportunities, the markets in which we operate or potential share repurchases are forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", although not all forward-looking information includes those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances.
Forward-looking information is based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, is subject to known and unknown risks, uncertainties, assumptions and other important 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 certain assumptions set out herein in the section titled "Updated Full Year 2026 Guidance"; our ability to obtain and maintain existing financing on acceptable terms; our ability to source and execute on acquisitions on terms acceptable to us; currency exchange and interest rates; commodity price fluctuations; our ability to implement price increases and surcharges; changes in waste volumes; labour, supply chain and transportation constraints; inflationary cost pressures; fuel supply and fuel price fluctuations; our ability to maintain a favourable working capital position; the impact of competition; the changes and trends in our industry or the global economy; changes to trade agreements, restrictions on trade, including sanctions, export controls, import duties, quotas, treaties, tariffs, trade wars, changes to trade and investment policies and other governmental actions; and changes in laws, rules, regulations, and global standards. Other important factors that could materially affect our forward-looking information can be found in the "Risk Factors" section of GFL's annual information form for the year ended December 31, 2025 and GFL's other periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Shareholders, potential investors and other readers are urged to consider these risks carefully in evaluating our forward-looking information and are cautioned not to place undue reliance on such information. There can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The forward-looking information contained in this release represents our expectations as of the date of this release (or as the date it is otherwise stated to be made), and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable U.S. or Canadian securities laws. The purpose of disclosing our financial outlook set out in this release is to provide investors with more information concerning the financial impact of our business initiatives and growth strategies. While the Company has and may from time to time in the future receive expressions of interest in relation to possible material transactions, there can be no assurance that any such expression of interest will result in an agreement to pursue any such transaction or, if any such agreements are entered into that the transactions contemplated thereby will be completed and if so on what terms and conditions; and the Company undertakes no responsibility to make any public statements or to update any prior public statements with respect thereto except as may be required by applicable law.
Non-IFRS Measures
This release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Rather, these non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.
EBITDA represents, for the applicable period, net income (loss) from continuing operations plus (a) interest and other finance costs, plus (b) depreciation and amortization of property and equipment, landfill assets and intangible assets, plus (less) (c) the provision (recovery) for income taxes, in each case to the extent deducted or added to/from net income (loss) from continuing operations. We present EBITDA to assist readers in understanding the mathematical development of Adjusted EBITDA. Management does not use EBITDA as a financial performance metric.
Adjusted EBITDA is a supplemental measure used by management and other users of our financial statements including, our lenders and investors, to assess the financial performance of our business without regard to financing methods or capital structure. Adjusted EBITDA is also a key metric that management uses prior to execution of any strategic investing or financing opportunity. For example, management uses Adjusted EBITDA as a measure in determining the value of acquisitions, expansion opportunities, and dispositions. In addition, Adjusted EBITDA is utilized by financial institutions to measure borrowing capacity. Adjusted EBITDA is calculated by adding and deducting, as applicable from EBITDA, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) (gain) loss on foreign exchange, (b) (gain) loss on sale of property and equipment, (c) change in value on Call Option, (d) share of net (income) loss of investments accounted for using the equity method, (e) share-based payments, (f) transaction costs, (g) acquisition, rebranding and other integration costs (included in cost of sales related to acquisition activity), (h) Founder/CEO remuneration and (i) other. For the three and six months ended June 30, 2026, change in value on Call Option has been added back to EBITDA. We use Adjusted EBITDA to facilitate a comparison of our operating performance on a consistent basis reflecting factors and trends affecting our business. As we continue to grow our business, we may be faced with new events or circumstances that are not indicative of our underlying business performance or that impact the ability to assess our operating performance.
Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue. Management and other users of our financial statements including our lenders and investors use Adjusted EBITDA margin to facilitate a comparison of the operating performance of each of our operating segments on a consistent basis reflecting factors and trends affecting our business.
Acquisition EBITDA represents, for the applicable period, management's estimates of the annual Adjusted EBITDA of an acquired business, based on its most recently available historical financial information at the time of acquisition, as adjusted to give effect to (a) the elimination of expenses related to the prior owners and certain other costs and expenses that are not indicative of the underlying business performance, if any, as if such business had been acquired on the first day of such period and (b) contract and acquisition annualization for contracts entered into and acquisitions completed by such acquired business prior to our acquisition (collectively, "Acquisition EBITDA Adjustments"). Further adjustments are made to such annual Adjusted EBITDA to reflect estimated operating cost savings and synergies, if any, anticipated to be realized upon acquisition and integration of the business into our operations. Acquisition EBITDA is calculated net of divestitures. We use Acquisition EBITDA for the acquired businesses to adjust our Adjusted EBITDA to include a proportional amount of the Acquisition EBITDA of the acquired businesses based upon the respective number of months of operation for such period prior to the date of our acquisition of each such business.
Adjusted Cash Flows from Operating Activities represents cash flows from operating activities adjusted for (a) operating cash flows from discontinued operations, (b) transaction costs, (c) acquisition, rebranding and other integration costs, (d) Founder/CEO remuneration, (e) cash payments related to GFL Environmental Services transition services agreement, (f) cash interest paid on early termination of long-term debt, (g) distribution received from joint ventures and (h) other. Adjusted Cash Flows from Operating Activities is a supplemental measure used by investors as a valuation and liquidity measure in our industry. For the three and six months ended June 30, 2026, cash payments related to GFL Environmental Services transition services agreement and other have been added back to Adjusted Cash Flows from Operating Activities. These amounts were not paid in the prior period. Adjusted Cash Flows from Operating Activities is a supplemental measure used by management to evaluate and monitor liquidity and the ongoing financial performance of GFL.
Adjusted Free Cash Flow represents Adjusted Cash Flows from Operating Activities adjusted for (a) proceeds on disposal of assets and other, (b) purchase of property and equipment and (c) incremental growth investments. Adjusted Free Cash Flow is a supplemental measure used by investors as a valuation and liquidity measure in our industry. Adjusted Free Cash Flow is a supplemental measure used by management to evaluate and monitor liquidity and the ongoing financial performance of GFL.
Adjusted Net Income (Loss) from continuing operations represents net income (loss) from continuing operations adjusted for (a) amortization of intangible assets, (b) amortization of deferred financing costs, (c) (gain) loss on foreign exchange, (d) change in value on Call Option, (e) share of net (income) loss of investments accounted for using the equity method, (f) loss on termination of hedged arrangements, (g) transaction costs, (h) acquisition, rebranding and other integration costs, (i) Founder/CEO remuneration, (j) other and (k) the tax impact of the foregoing. Adjusted income (loss) per share from continuing operations is defined as Adjusted Net Income (Loss) from continuing operations divided by the weighted average shares in the period. For the three and six months ended June 30, 2026, change in value on Call Option has been added back to net income (loss) from continuing operations. We believe that Adjusted income (loss) per share from continuing operations provides a meaningful comparison of current results to prior periods' results by excluding items that GFL does not believe reflect its fundamental business performance.
Net Leverage is a supplemental measure used by management to evaluate borrowing capacity and capital allocation strategies. Net Leverage is equal to our total long-term debt, as adjusted for fair value, deferred financings and other adjustments and reduced by our cash, divided by Run-Rate EBITDA.
Run-Rate EBITDA represents Adjusted EBITDA for the applicable period as adjusted to give effect to management's estimates of (a) Acquisition EBITDA Adjustments (as defined above) and (b) the impact of annualization of certain new municipal and disposal contracts and cost savings initiatives, entered into, commenced or implemented, as applicable, in such period, as if such contracts or costs savings initiatives had been entered into, commenced or implemented, as applicable, on the first day of such period ((a) and (b), collectively, "Run-Rate EBITDA Adjustments"). Run-Rate EBITDA has not been adjusted to take into account the impact of the cancellation of contracts and cost increases associated with these contracts. These adjustments reflect monthly allocations of Acquisition EBITDA for the acquired businesses based on straight line proration. As a result, these estimates do not take into account the seasonality of a particular acquired business. While we do not believe the seasonality of any one acquired business is material when aggregated with other acquired businesses, the estimates may result in a higher or lower adjustment to our Run-Rate EBITDA than would have resulted had we adjusted for the actual results of each of the acquired businesses for the period prior to our acquisition. We primarily use Run-Rate EBITDA to show how GFL would have performed if each of the acquired businesses had been consummated at the start of the period as well as to show the impact of the annualization of certain new municipal and disposal contracts and cost savings initiatives. We also believe that Run-Rate EBITDA is useful to investors and creditors to monitor and evaluate our borrowing capacity and compliance with certain of our debt covenants. Run-Rate EBITDA as presented herein is calculated in accordance with the terms of our revolving credit agreement.
All references to "$" in this press release are to Canadian dollars, unless otherwise noted.
For further information:
Patrick Dovigi, Founder and Chief Executive Officer
+1 905-326-0101
[email protected]
GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income
(In millions of dollars except per share amounts)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Revenue
$ 1,947.8
$ 1,675.2
$ 3,591.6
$ 3,235.3
Expenses
Cost of sales
1,562.0
1,303.2
2,906.0
2,575.8
Selling, general and administrative expenses
276.3
223.2
542.1
509.4
Interest and other finance costs
163.9
121.1
303.5
331.5
(Gain) loss on sale of property and equipment
(0.3)
(2.8)
(3.9)
0.4
Loss (gain) on foreign exchange
98.3
(266.4)
192.0
(272.1)
Change in value on Call Option
20.0
—
30.0
—
Other
0.9
(24.4)
11.9
(16.4)
2,121.1
1,353.9
3,981.6
3,128.6
Share of net loss of investments accounted for using the equity method(1)
(10.7)
(38.4)
(66.2)
(107.0)
(Loss) income before income taxes
(184.0)
282.9
(456.2)
(0.3)
Current income tax expense
8.0
30.9
44.5
64.1
Deferred tax recovery(1)
(29.4)
(7.7)
(118.9)
(97.5)
Income tax (recovery) expense
(21.4)
23.2
(74.4)
(33.4)
Net (loss) income from continuing operations
(162.6)
259.7
(381.8)
33.1
Net income from discontinued operations
—
—
—
3,620.8
Net (loss) income
(162.6)
259.7
(381.8)
3,653.9
Less: Net loss attributable to non-controlling interests
(2.8)
(2.1)
(6.3)
(4.8)
Net (loss) income attributable to GFL Environmental Inc.
$ (159.8)
$ 261.8
$ (375.5)
$ 3,658.7
Items that may be subsequently reclassified to net (loss) income
Currency translation adjustment
180.8
(442.5)
344.5
(452.9)
Reclassification to net (loss) income of fair value movements on cash flow
hedges, net of tax
1.2
1.0
2.4
7.0
Fair value movements on cash flow hedges, net of tax
(13.1)
16.0
(15.3)
23.3
Share of other comprehensive loss of investments accounted for using the
equity method, net of tax(1)
(8.6)
(21.0)
(11.5)
(23.1)
Other comprehensive income (loss)
160.3
(446.5)
320.1
(445.7)
Comprehensive loss from continuing operations
(2.3)
(186.8)
(61.7)
(412.6)
Comprehensive income from discontinued operations
—
—
—
3,444.3
Total comprehensive (loss) income
(2.3)
(186.8)
(61.7)
3,031.7
Less: Total comprehensive income (loss) attributable to non-controlling
interests
0.6
(14.4)
0.1
(17.3)
Total comprehensive (loss) income attributable to GFL Environmental Inc.
$ (2.9)
$ (172.4)
$ (61.8)
$ 3,049.0
Basic (loss) income per share(1)(2)
Continuing operations
$ (0.47)
$ 0.68
$ (1.11)
$ 0.03
Discontinued operations
—
—
—
9.57
Total operations
$ (0.47)
$ 0.68
$ (1.11)
$ 9.60
Diluted (loss) income per share(1)(2)
Continuing operations
$ (0.47)
$ 0.66
$ (1.11)
$ 0.03
Discontinued operations
—
—
—
9.34
Total operations
$ (0.47)
$ 0.66
$ (1.11)
$ 9.37
Weighted average number of shares outstanding
361,371,647
365,815,712
359,940,151
378,517,656
Diluted weighted average number of shares outstanding
361,371,647
383,211,513
359,940,151
387,599,076
______________________
(1)
Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in the associate. Accordingly, comparative amounts have been revised for the three and six months ended June 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
(2)
Basic and diluted (loss) income per share is calculated on net (loss) income attributable to GFL Environmental Inc. adjusted for amounts attributable to preferred shareholders. Refer to Note 9 in our Unaudited Interim Financial Statements.
GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Financial Position
(In millions of dollars)
June 30, 2026
December 31, 2025
Assets
Cash
$ 192.1
$ 85.6
Trade and other receivables, net
983.3
802.0
Income taxes recoverable
61.8
96.0
Prepaid expenses and other assets
214.6
180.6
Current assets
1,451.8
1,164.2
Property and equipment, net
8,124.4
7,324.3
Intangible assets, net
2,178.4
1,757.0
Investments accounted for using the equity method(1)
1,793.7
1,805.3
Other long-term assets
282.0
256.8
Goodwill
7,698.6
6,894.9
Non-current assets
20,077.1
18,038.3
Total assets
$ 21,528.9
$ 19,202.5
Liabilities
Accounts payable and accrued liabilities
1,797.1
1,888.3
Income taxes payable
7.1
5.7
Lease obligations
74.5
59.9
Landfill closure and post-closure obligations
50.2
44.0
Current liabilities
1,928.9
1,997.9
Long-term debt
9,599.2
7,422.6
Lease obligations
468.6
450.6
Other long-term liabilities
37.1
34.5
Deferred income tax liabilities(1)
703.2
756.7
Landfill closure and post-closure obligations
1,250.5
1,126.5
Non-current liabilities
12,058.6
9,790.9
Total liabilities
13,987.5
11,788.8
Shareholders' equity
Share capital
7,188.8
7,008.4
Contributed surplus
230.6
205.7
(Deficit) earnings(1)
(218.5)
172.9
Accumulated other comprehensive income (loss)(1)
157.8
(155.9)
Total GFL Environmental Inc.'s shareholders' equity
7,358.7
7,231.1
Non-controlling interests
182.7
182.6
Total shareholders' equity
7,541.4
7,413.7
Total liabilities and shareholders' equity
$ 21,528.9
$ 19,202.5
_____________________________
(1)
Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in the associate. Accordingly, comparative amounts have been revised. Refer to Note 3 in our Unaudited Interim Financial Statements.
GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(In millions of dollars)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Operating activities
Net (loss) income(1)
$ (162.6)
$ 259.7
$ (381.8)
$ 3,653.9
Adjustments for non-cash items
Depreciation of property and equipment
309.5
262.1
583.2
520.0
Amortization of intangible assets
79.0
60.8
151.6
122.2
Share of net loss of investments accounted for using the equity method(1)
10.7
38.4
66.2
107.0
Gain on divestiture
—
—
—
(4,466.8)
Other
(0.4)
(24.4)
3.5
(16.4)
Interest and other finance costs
163.9
121.1
303.5
333.1
Share-based payments
25.6
16.7
63.2
76.4
Loss (gain) on unrealized foreign exchange
98.2
(265.5)
192.4
(272.1)
(Gain) loss on sale of property and equipment
(0.3)
(2.8)
(3.9)
1.6
Change in value on Call Option
20.0
—
30.0
—
Current income tax expense
8.0
30.9
44.5
87.6
Deferred tax (recovery) expense(1)
(29.4)
(7.7)
(118.9)
753.1
Interest paid in cash
(80.3)
(64.3)
(199.2)
(253.0)
Income taxes paid in cash, net
(5.1)
(0.9)
(8.8)
(5.5)
Changes in non-cash working capital items
(14.4)
(112.3)
(131.6)
(153.8)
Landfill closure and post-closure expenditures
(5.1)
(5.7)
(8.8)
(7.7)
417.3
306.1
585.1
479.6
Investing activities
Purchase of property and equipment
(287.6)
(289.0)
(673.8)
(603.6)
Proceeds on disposal of assets and other
9.4
9.4
14.7
13.1
(Payments) proceeds from divestitures
—
(109.1)
—
5,820.5
Business acquisitions and investments, net of cash acquired
(1,340.2)
(44.9)
(1,484.5)
(285.9)
Distribution received from associates and joint ventures
—
1.7
4.5
5.3
(1,618.4)
(431.9)
(2,139.1)
4,949.4
Financing activities
Repayment of lease obligations
(27.3)
(30.4)
(52.8)
(56.0)
Issuance of long-term debt
1,340.3
162.3
4,357.0
869.2
Repayment of long-term debt
(1,295.1)
(95.2)
(2,503.6)
(3,819.0)
Proceeds from termination of hedged arrangements
—
—
—
28.0
Payment for termination of hedged arrangements
(1.1)
(1.1)
(1.1)
(1.1)
Payment of contingent purchase consideration and holdbacks
(16.7)
(0.2)
(31.1)
(2.6)
Repurchase of subordinate voting shares, inclusive of tax
(14.0)
(277.6)
(71.0)
(2,412.2)
Dividends issued and paid
(8.4)
(8.0)
(15.9)
(15.9)
Payment of financing costs
(7.9)
(5.5)
(21.7)
(5.6)
Repayment of loan to related party
—
—
—
(2.9)
(30.2)
(255.7)
1,659.8
(5,418.1)
(Decrease) increase in cash
(1,231.3)
(381.5)
105.8
10.9
Changes due to foreign exchange revaluation of cash
(12.8)
(16.0)
0.7
(5.0)
Cash, beginning of period
1,436.2
537.2
85.6
133.8
Cash, end of period
$ 192.1
$ 139.7
$ 192.1
$ 139.7
____________________________
(1)
Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in the associate. Accordingly, comparative amounts have been revised for the three and six months ended June 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
SUPPLEMENTAL DATA
You should read the following information in conjunction with our audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2025, as well as our Unaudited Interim Financial Statements and notes thereto for the three and six months ended June 30, 2026.
Revenue Growth
The following tables summarize the revenue growth in our segments for the periods indicated:
Three months ended June 30, 2026
Contribution
from
Acquisitions
Organic
Growth
Foreign
Exchange
Revenue
Growth
Canada
1.4 %
8.0 %
— %
9.4 %
USA
14.1
5.6
—
19.7
Total
9.9 %
6.4 %
— %
16.3 %
Six months ended June 30, 2026
Contribution
from
Acquisitions
Organic
Growth
Foreign
Exchange
Revenue
Growth
Canada
1.4 %
7.6 %
— %
9.0 %
USA
9.7
4.5
(2.2)
12.0
Total
7.0 %
5.5 %
(1.5) %
11.0 %
Detail of Organic Growth
The following table summarizes the components of our organic growth for the periods indicated:
Three months ended
June 30, 2026
Six months ended
June 30, 2026
Price
6.1 %
6.5 %
Surcharges
1.1
0.3
Volume
(0.6)
(0.9)
Commodity price
(0.2)
(0.4)
Total organic growth
6.4 %
5.5 %
Operating Segment Results
The following tables summarize our operating segment results for the periods indicated:
Three months ended
June 30, 2026
Three months ended
June 30, 2025
($ millions)
Revenue
Adjusted
EBITDA(1)
Adjusted
EBITDA
Margin(2)
Revenue
Adjusted
EBITDA(1)
Adjusted
EBITDA
Margin(2)
Canada
$ 609.2
$ 206.9
34.0 %
$ 556.7
$ 188.0
33.8 %
USA
1,338.6
445.7
33.3
1,118.5
393.8
35.2
Solid Waste
1,947.8
652.6
33.5
1,675.2
581.8
34.7
Corporate
—
(61.4)
—
—
(66.7)
—
Total
$ 1,947.8
$ 591.2
30.4 %
$ 1,675.2
$ 515.1
30.7 %
Six months ended
June 30, 2026
Six months ended
June 30, 2025
($ millions)
Revenue
Adjusted
EBITDA(1)
Adjusted
EBITDA
Margin(2)
Revenue
Adjusted
EBITDA(1)
Adjusted
EBITDA
Margin(2)
Canada
$ 1,145.1
$ 374.7
32.7 %
$ 1,050.7
$ 325.7
31.0 %
USA
2,446.5
818.9
33.5
2,184.6
754.0
34.5
Solid Waste
3,591.6
1,193.6
33.2
3,235.3
1,079.7
33.4
Corporate
—
(123.9)
—
—
(138.5)
—
Total
$ 3,591.6
$ 1,069.7
29.8 %
$ 3,235.3
$ 941.2
29.1 %
_______________________________
(1)
A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
(2)
See "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
Net Leverage
The following table presents the calculation of Net Leverage as at the dates indicated:
($ millions)
June 30, 2026
December 31, 2025
Total long-term debt, net of derivative asset(1)
$ 9,525.3
$ 7,401.6
Deferred finance costs and other adjustments
(78.9)
(25.1)
Total long-term debt excluding deferred finance costs and other adjustments
$ 9,604.2
$ 7,426.7
Less: cash
(192.1)
(85.6)
9,412.1
7,341.1
Trailing twelve months Adjusted EBITDA(2)
2,113.4
1,985.0
Run-Rate EBITDA Adjustments(3)
242.0
172.6
Run-Rate EBITDA(3)
$ 2,355.4
$ 2,157.6
Net Leverage(2)
4.0x
3.4x
Net Leverage(2) at Q2 Guidance Exchange Rate(4)
3.9x
_________________________________
(1)
Total long-term debt includes derivative asset reclassified for financial statement presentation purposes to other long-term assets, refer to Note 7 in our Unaudited Interim Financial Statements.
(2)
A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
(3)
See "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures and ratios.
(4)
Quarterly guidance for the second quarter of 2026 was based on a USD to CAD exchange rate of 1.37 (the "Q2 Guidance Exchange Rate"). Net Leverage at Q2 Guidance Exchange Rate has been calculated as Total long-term debt excluding deferred finance costs and other adjustments, less cash, translated from USD to CAD using the Q2 Guidance Exchange Rate, divided by Run-Rate EBITDA of $2,345.0 million, which is what Run-Rate EBITDA would have been assuming contributions for the three months ended June 30, 2026 were translated from USD to CAD at the Q2 Guidance Exchange Rate.
Shares Outstanding
The following table presents the total shares outstanding as at the date indicated:
June 30, 2026
Subordinate voting shares
349,077,362
Multiple voting shares
11,812,964
Basic shares outstanding
360,890,326
Effect of dilutive instruments
13,241,330
Series A Preferred Shares (as converted)
6,055,493
Series B Preferred Shares (as converted)
8,966,023
Diluted shares outstanding
389,153,172
NON-IFRS RECONCILIATION SCHEDULE
Adjusted EBITDA
The following tables provide a reconciliation of our net (loss) income from continuing operations to EBITDA and Adjusted EBITDA for the periods indicated:
($ millions)
Three months ended
June 30, 2026
Three months ended
June 30, 2025
Net (loss) income from continuing operations(1)
$ (162.6)
$ 259.7
Add:
Interest and other finance costs
163.9
121.1
Depreciation of property and equipment
309.5
262.1
Amortization of intangible assets
79.0
60.8
Income tax (recovery) expense(1)
(21.4)
23.2
EBITDA
368.4
726.9
Add:
Loss (gain) on foreign exchange(2)
98.3
(266.4)
Gain on sale of property and equipment
(0.3)
(2.8)
Change in value on Call Option
20.0
—
Share of net loss of investments accounted for using the equity method(1)(3)
15.7
42.5
Share-based payments(4)
25.6
16.7
Transaction costs(5)
14.3
9.2
Acquisition, rebranding and other integration costs(6)
10.5
2.4
Founder/CEO remuneration(7)
37.8
11.0
Other
0.9
(24.4)
Adjusted EBITDA
$ 591.2
$ 515.1
($ millions)
Six months ended
June 30, 2026
Six months ended
June 30, 2025
Net (loss) income from continuing operations(1)
$ (381.8)
$ 33.1
Add:
Interest and other finance costs
303.5
331.5
Depreciation of property and equipment
583.2
520.0
Amortization of intangible assets
151.6
122.2
Income tax recovery(1)
(74.4)
(33.4)
EBITDA
582.1
973.4
Add:
Loss (gain) on foreign exchange(2)
192.0
(272.1)
(Gain) loss on sale of property and equipment
(3.9)
0.4
Change in value on Call Option
30.0
—
Share of net loss of investments accounted for using the equity method(1)(3)
76.4
114.7
Share-based payments(4)
63.2
75.1
Transaction costs(5)
24.1
30.4
Acquisition, rebranding and other integration costs(6)
19.7
3.9
Founder/CEO remuneration(7)
74.2
31.8
Other
11.9
(16.4)
Adjusted EBITDA
$ 1,069.7
$ 941.2
_____________________________
(1)
Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in the associate. Accordingly, comparative amounts have been revised for the three and six months ended June 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
(2)
Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt instruments and (ii) gains and losses attributable to foreign exchange rate fluctuations.
(3)
Excludes share of Adjusted EBITDA of investments accounted for using the equity method for RNG projects.
(4)
This is a non-cash item and consists of the amortization of the estimated fair value of share-based payments granted to certain members of management under share-based payment plans.
(5)
Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable period. We expect to incur similar costs in connection with other acquisitions in the future and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is part of SG&A.
(6)
Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost of sales.
(7)
Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
Adjusted Net Income from Continuing Operations
The following tables provide a reconciliation of our net (loss) income from continuing operations to Adjusted Net Income from continuing operations for the periods indicated:
($ millions)
Three months ended
June 30, 2026
Three months ended
June 30, 2025
Net (loss) income from continuing operations(1)
$ (162.6)
$ 259.7
Add:
Amortization of intangible assets(2)
79.0
60.8
Amortization of deferred financing costs
3.1
3.5
Loss (gain) on foreign exchange(3)
98.3
(266.4)
Change in value on Call Option
20.0
—
Share of net loss of investments accounted for using the equity method(1)(4)
15.7
42.5
Transaction costs(6)
14.3
9.2
Acquisition, rebranding and other integration costs(7)
10.5
2.4
Founder/CEO remuneration(8)
37.8
11.0
Other
0.9
(24.4)
Tax effect(1)(9)
(49.2)
3.2
Adjusted Net Income from continuing operations
$ 67.8
$ 101.5
Adjusted income per share from continuing operations, basic
$ 0.19
$ 0.28
Adjusted income per share from continuing operations, diluted
$ 0.19
$ 0.26
($ millions)
Six months ended
June 30, 2026
Six months ended
June 30, 2025
Net (loss) income from continuing operations(1)
$ (381.8)
$ 33.1
Add:
Amortization of intangible assets(2)
151.6
122.2
Amortization of deferred financing costs
5.8
26.9
Loss (gain) on foreign exchange(3)
192.0
(272.1)
Change in value on Call Option
30.0
—
Share of net loss of investments accounted for using the equity method(1)(4)
76.4
114.7
Loss on termination of hedged arrangements(5)
—
30.5
Transaction costs(6)
24.1
30.4
Acquisition, rebranding and other integration costs(7)
19.7
3.9
Founder/CEO remuneration(8)
74.2
31.8
Other
11.9
(16.4)
Tax effect(1)(9)
(106.6)
(38.0)
Adjusted Net Income from continuing operations
$ 97.3
$ 67.0
Adjusted income per share from continuing operations, basic
$ 0.27
$ 0.18
Adjusted income per share from continuing operations, diluted
$ 0.27
$ 0.17
_____________________________
(1)
Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in the associate. Accordingly, comparative amounts have been revised for the three and six months ended June 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
(2)
This is a non-cash item and consists of the amortization of intangible assets such as customer lists, municipal contracts, non-compete agreements, trade name and other licenses.
(3)
Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt instruments and (ii) gains and losses attributable to foreign exchange rate fluctuations.
(4)
Excludes share of Adjusted EBITDA of investments accounted for using the equity method for RNG projects.
(5)
Consists of gains and losses on the termination of hedged arrangements associated with the 3.750% 2025 Secured Notes, the 5.125% 2026 Secured Notes, the 4.250% 2025 Secured Notes and the 4.750% 2029 Notes.
(6)
Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable period. We expect to incur similar costs in connection with other acquisitions in the future and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is part of SG&A.
(7)
Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost of sales.
(8)
Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
(9)
Consists of the tax effect of the adjustments to net (loss) income from continuing operations.
Adjusted Cash Flows from Operating Activities and Adjusted Free Cash Flow
The following tables provide a reconciliation of our cash flows from operating activities to Adjusted Cash Flows from Operating Activities and Adjusted Free Cash Flow for the periods indicated:
($ millions)
Three months ended
June 30, 2026
Three months ended
June 30, 2025
Cash flows from operating activities
$ 417.3
$ 306.1
Add:
Transaction costs(2)
14.3
9.2
Acquisition, rebranding and other integration costs(3)
10.5
2.4
Founder/CEO remuneration(4)
37.8
11.0
Cash payments related to GFL Environmental Services transition services
Consists of operating cash flows from discontinued operations. GFL Environmental Services was presented as discontinued operations. Refer to Note 17 in our Unaudited Interim Financial Statements.
(2)
Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable period. We expect to incur similar costs in connection with other acquisitions in the future, and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is part of SG&A.
(3)
Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost of sales.
(4)
Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
(5)
Consists of cash payments to GFL for services provided to GFL Environmental Services based on the transition services agreement, which was satisfied in full on March 3, 2025 in connection with our divestiture of GFL Environmental Services.
(6)
Consists of interest and related fees on early repayment of revolving credit facility, Term Loan B Facility, 3.75% 2025 Secured Notes and 5.125% 2026 Secured Notes.
(7)
Consists of incremental sustainability related capital projects, primarily related to recycling.
Preformed Line Products oznámila rekordní výsledky za 2. čtvrtletí 2026: tržby dosáhly 212,7 mil. USD a zředěný EPS činil 4,49 USD. Čistý zisk vzrostl na 21,5 mil. USD.
, /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported record financial results for its second quarter of 2026.
Q2 2026 highlights:
Record quarterly net sales of $212.7 million, an increase of 25% from Q2 2025 and 21% from Q1 2026. Record quarterly USA sales, with growth of 32% from Q2 2025 and 12% from Q1 2026, driven by robust demand in energy markets, with communications markets also providing increases. Gross profit margin of 34.3%, up 160 basis points from Q2 2025 and 300 basis points from Q1 2026. Record quarterly diluted EPS of $4.49 per share, up 75% from Q2 2025 and more than doubling from Q1 2026. Net sales in the second quarter of 2026 were $212.7 million compared to $169.6 million in the second quarter of 2025, a 25% increase. PLP-USA continued its strong 2026 performance driven primarily by growth in energy sales. All International segments also contributed, with each segment increasing sales from Q2 2025. The Americas segment also benefited from the acquisition of Delta Star Conetores Electricos Ltda ("Delta Star") in May 2026. Foreign currency translation increased second-quarter 2026 net sales by $6.0 million.
Net income for the quarter ended June 30, 2026, was $21.5 million, or $4.49 per diluted share, compared to $12.7 million, or $2.56 per diluted share, for the comparable period in 2025. The increase in net income was primarily driven by higher sales volumes, favorable product mix, fixed cost leverage and the benefit of price increases enacted in 2025. This increase was partially offset by increases in selling costs and investments in personnel supporting strategic market growth in our core product offerings, primarily for sales, sales support and engineering resources. Tariff headwinds also continued to impact net income. Foreign currency translation had a favorable impact of $0.5 million on the second quarter of 2026 net income.
Net sales increased 22% to $389.0 million for the first six months of 2026 compared to $318.1 million for the first six months of 2025. All segments realized a year-over-year increase in net sales due to higher volumes of energy and communications sales, driven most significantly by PLP-USA with a 29% net sales growth. Foreign currency translation rates increased net sales by $13.2 million for the six months ended June 30, 2026.
Net income for the six months ended June 30, 2026, was $32.0 million, or $6.62 per diluted share, compared to $24.2 million, or $4.89 per diluted share, for the comparable period in 2025. The increase in net income was due to higher sales volumes and the benefit of price increases enacted in 2025, partially offset by higher personnel and selling costs, tariff expenses and a higher effective tax rate for the six-month period. Foreign currency translation had a favorable impact of $0.7 million on six-month 2026 net income.
"What a quarter! I am so proud of our global team's execution, which delivered record second-quarter and first-half results," said Rob Ruhlman, Executive Chairman. "Our quarterly net sales and EPS, the highest in the Company's history, reflect the strength of demand in our core energy and communications markets and the resilience of our global operations. Our steadfast commitment to domestic manufacturing continues to provide a strategic advantage, with PLP-USA delivering exceptional 32% sales growth in the quarter. Our international segments continued to provide strong contributions, with each segment providing sales increases. In a very challenging operating environment, I am most encouraged by our 300-basis-point improvement in gross profit margin in Q2 2026 compared to Q1 2026, reflecting the effectiveness of our pricing strategies, supply chain discipline, and ongoing investment in operational efficiency. Our balance sheet remains a source of strength, providing flexibility to pursue strategic growth opportunities while continuing to invest in our people and facilities. In the second quarter, we welcomed Delta Star, located in Salto, Brazil, to the PLP family. Delta Star provides significant operational support to accelerate growth in our U.S. substation business while also expanding our substation portfolio in the South American region."
"While we celebrate a record second quarter, we remain vigilant in monitoring the evolving tariff and geopolitical landscape, and I believe our significant U.S. manufacturing footprint, diversified global operations, and financially sound position make us well-equipped to navigate these challenges and continue investing in our business. Our focus is unchanged: provide our customers with the high-quality products and superior customer service they have come to expect from PLP."
A presentation on second-quarter results will also be available on PLP's website at www.plp.com/investor-relations.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the uncertainty in global business conditions and the economy due to factors such as inflation, rising interest rates, tariffs, labor disruptions, military conflict, international hostilities, political instability, exchange rates, natural disasters and health epidemics, the strength of demand and availability of funding for the Company's products (including in light of price increases) and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products and customer demand, opportunities for business growth through acquisitions and the ability to successfully integrate any acquired businesses, changes in regulations and tax rates, security breaches, litigation and claims and the Company's ability to continue to develop proprietary technology and maintain high-quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2025 Annual Report on Form 10-K filed with the SEC on March 5, 2026 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
ABOUT PLP
PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.
PREFORMED LINE PRODUCTS COMPANY (PLPC)
CONSOLIDATED BALANCE SHEET
June 30, 2026
December 31, 2025
(Thousands of dollars, except share and per share data)
(Unaudited)
ASSETS
Cash, cash equivalents and restricted cash
$ 76,212
$ 83,389
Accounts receivable, net
151,180
113,175
Inventories, net
147,815
148,730
Prepaid expenses
13,579
12,961
Other current assets
7,730
5,206
TOTAL CURRENT ASSETS
396,516
363,461
Property, plant and equipment, net
227,558
222,781
Goodwill
36,419
30,684
Other intangible assets, net
9,458
10,140
Deferred income taxes
7,205
7,481
Other assets
20,333
19,074
TOTAL ASSETS
$ 697,489
$ 653,621
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable
$ 55,916
$ 49,520
Notes payable to banks
1,793
1,213
Current portion of long-term debt
5,065
5,392
Accrued compensation and other benefits
28,619
29,207
Accrued expenses and other liabilities
41,141
29,378
TOTAL CURRENT LIABILITIES
132,534
114,710
Long-term debt, less current portion
35,919
32,860
Other noncurrent liabilities and deferred income taxes
34,435
30,500
SHAREHOLDERS' EQUITY
Common shares $2 par value per share, 15,000,000 shares
authorized, 4,880,701 and 4,907,787 issued and outstanding, at
June 30, 2026 and December 31, 2025
13,893
13,860
Common shares issued to rabbi trust, 222,506 and 222,506 shares at
June 30, 2026 and December 31, 2025, respectively
(9,586)
(9,586)
Deferred compensation liability
9,586
9,586
Paid-in capital
68,604
67,217
Retained earnings
614,326
584,360
Treasury shares, at cost, 2,065,490 and 2,021,940 shares at June 30,
2026 and December 31, 2025, respectively
(148,777)
(136,554)
Accumulated other comprehensive loss
(53,503)
(53,365)
TOTAL PLPC SHAREHOLDERS' EQUITY
494,543
475,518
Noncontrolling interest
58
33
TOTAL SHAREHOLDERS' EQUITY
494,601
475,551
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 697,489
$ 653,621
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(Thousands, except per share data)
(Unaudited)
(Unaudited)
Net sales
$ 212,681
$ 169,601
$ 388,959
$ 318,142
Cost of products sold
139,669
114,202
260,727
214,072
GROSS PROFIT
73,012
55,399
128,232
104,070
Costs and expenses
Selling
15,388
13,092
29,157
25,273
General and administrative
21,529
18,665
42,582
36,291
Research and engineering
7,155
5,695
13,891
11,174
Other operating expense, net
1,038
823
984
1,078
45,110
38,275
86,614
73,816
OPERATING INCOME
27,902
17,124
41,618
30,254
Other income (expense)
Interest income
634
384
1,411
894
Interest expense
(239)
(318)
(471)
(694)
Other income, net
149
116
218
523
544
182
1,158
723
INCOME BEFORE INCOME TAXES
28,446
17,306
42,776
30,977
Income tax expense
6,938
4,606
10,719
6,724
NET INCOME
$ 21,508
$ 12,700
$ 32,057
$ 24,253
Net loss (income) attributable to noncontrolling
interests
—
5
(25)
(31)
NET INCOME ATTRIBUTABLE TO PLPC
SHAREHOLDERS
$ 21,508
$ 12,705
$ 32,032
$ 24,222
AVERAGE NUMBER OF SHARES OF COMMON
STOCK OUTSTANDING:
Basic
4,774
4,932
4,815
4,930
Diluted
4,794
4,955
4,838
4,955
EARNINGS PER SHARE OF COMMON STOCK
ATTRIBUTABLE TO PLPC SHAREHOLDERS:
CLS těží z rostoucí poptávky po AI sítích, cloudové infrastruktuře a vysokovýkonném computingu. Celestica hlásí silnou poptávku po 800G sítích, 1,6-terabitových programech a AI compute nasazeních.
Key Takeaways CLS is benefiting from rising AI networking, cloud infrastructure and high-performance compute demand.Celestica is expanding engineering, manufacturing and integrated technology solutions for AI platforms.CLS expects Connectivity & Cloud Solutions growth as AI deployments and networking upgrades scale. AI infrastructure spending is reshaping the electronics manufacturing landscape as cloud providers and enterprises expand data center capacity. Demand for advanced networking, storage and compute platforms is creating new opportunities for manufacturers with deep engineering and production capabilities.
Celestica Inc. (CLS - Free Report) illustrates this shift through its growing exposure to cloud infrastructure and high-performance networking. As customers accelerate AI deployments, the company continues to broaden its portfolio while scaling production for next-generation platforms.
Celestica Benefits From AI Infrastructure SpendingEnterprise networking, cloud infrastructure, high-bandwidth switching, storage systems and data center products have become increasingly important growth drivers for Celestica. Management said demand across AI networking and compute platforms remains strong, supported by multiyear customer capacity planning and expanding program ramps.
Recent quarterly result highlighted continued momentum in 800G networking, the launch of 1.6-terabit programs and expanding artificial intelligence compute deployments. These trends reinforce the industry's broader investment cycle as hyperscale customers continue building AI infrastructure.
CLS Expands High-Value Technology SolutionsCelestica continues investing in engineering expertise, advanced manufacturing capabilities and product innovation to strengthen its position in higher-value markets. Long-standing customer relationships also support participation in complex infrastructure programs that require scale and operational execution.
The company's strategy increasingly centers on integrated technology solutions rather than traditional manufacturing alone. That approach positions Celestica to pursue emerging opportunities across networking, storage and custom AI platforms while expanding margins over time.
Celestica Cloud Business Gains ScaleConnectivity & Cloud Solutions has become Celestica's primary growth engine as customer demand accelerates across communications and enterprise markets. Higher production volumes have also improved operating leverage, allowing the segment to contribute a growing share of company revenue.
Management expects continued expansion as networking upgrades, AI compute deployments and new customer programs move into production. Companies such as Flex Ltd. (FLEX - Free Report) and Jabil Inc. (JBL - Free Report) are also pursuing opportunities tied to AI infrastructure, underscoring the industry's broad-based investment cycle.
CLS Industry Trends Still Carry RisksDespite favorable demand trends, risks remain. Customer concentration, competitive pricing, geopolitical uncertainty and the cyclical nature of semiconductor spending could affect future results. Supply-chain constraints also require careful execution as production volumes increase.
Advanced Technology Solutions continues to improve, but performance across portions of that business remains tied to end-market conditions and customer spending patterns. Those factors could create periodic volatility even as AI-related demand stays healthy.
Why CLS' Rating Signals Reflect Industry MomentumThe broader industry backdrop remains constructive, and Celestica appears well positioned to benefit if AI infrastructure investment continues expanding. Even so, investors should continue monitoring execution, competitive dynamics and customer demand.
Celestica currently carries a Zacks Rank #1 (Strong Buy), along with a Growth Score of A and a VGM Score of A. Those measures suggest favorable earnings estimate revisions and strong growth characteristics. More modest Value and Momentum Scores indicate that while valuation and price trends may be less compelling than growth, the stock continues to align with the positive industry backdrop rather than serving as a guarantee of future performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta ve 2. čtvrtletí nesplnila odhad zisku kvůli vyšším nákladům a právním poplatkům, i když tržby vzrostly o 28 % na 60,8 miliardy USD. Akcie po výsledcích v after-hours klesly asi o 6,7 %.
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) missed second-quarter profit estimates on Wednesday, weighed down by a jump in costs including legal charges, even as revenue grew faster than expected.
The social media giant reported earnings per share of $6.18, down 13% year-over-year and well below the $7.22 analysts had expected. Revenue came in at $60.8 billion, up 28% from a year earlier and ahead of the $60.17 billion consensus estimate.
Operating income fell 8% to $18.8 billion, missing the $21.5 billion estimate, as costs and expenses jumped 55% to $42 billion. Operating margin contracted 1,200 basis points to 31%. Net income dropped 14% to $15.8 billion. The results included $2.40 billion of legal proceeding charges recognized in the quarter.
Daily active people came in at 3.6 billion, up 3% year-over-year but just shy of the 3.61 billion estimate.
Advertising revenue rose 27% to $59.4 billion, topping the $59.01 billion estimate, driven by a 14% increase in ad impressions and a 12% rise in average price per ad. Family of Apps revenue climbed 28% to $60.4 billion, with operating income of $23.4 billion for the segment.
Reality Labs revenue was $431 million, below the $441.5 million estimate, while the unit posted an operating loss of $4.62 billion, narrower than the roughly $5 billion loss analysts had forecast.
Meta raised its full-year 2026 capital expenditure guidance to a range of $130 billion to $145 billion, up from a prior forecast of $125 billion to $145 billion. Capital expenditure in the quarter totaled $31.08 billion, below the roughly $33.7 billion estimate.
For the third quarter, Meta guided revenue of $61 billion to $64 billion, versus a $63.15 billion estimate. Full-year 2026 expenses are now expected to be $165 billion to $169 billion, raised to account for the second-quarter legal charges. The company said full-year operating income would remain above the 2025 level, and raised its expected remaining tax rate for the year to a range of 15% to 17%, from a prior 13% to 16%.
Headcount stood at 75,472, down 1% year-over-year.
Operating cash flow was $31.9 billion and free cash flow was $784 million. The company paid $1.35 billion in dividends and equivalents during the quarter and held $90.26 billion in cash, equivalents and marketable securities. Long-term debt stood at $83.66 billion.
"AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities," said Meta CEO Mark Zuckerberg. "The results are already showing, and I'm optimistic about the potential ahead."
Shares of Meta fell around 6.7% in after-hours trading following the results.
