Disney uvedl, že úspěch „Toy Story 5“ za čtvrtletí končící v červnu podpořil prodej zboží s motivy značky, sledovanost Disney+ i návštěvnost parků. Tržby divize Entertainment vzrostly o 6 % na 11,3 miliardy USD.
Item 1 of 4 Tom Hanks and Woody attend the "Toy Story 5" UK launch event in London, Britain, May 28, 2026. REUTERS/Jack Taylor
[1/4]Tom Hanks and Woody attend the "Toy Story 5" UK launch event in London, Britain, May 28, 2026. REUTERS/Jack Taylor Purchase Licensing Rights, opens new tab
CompaniesLOS ANGELES, Aug 5 (Reuters) - Disney (DIS.N), opens new tab said the blockbuster success of "Toy Story 5" extended beyond the box office for the June quarter, as the hit film fueled sales of merchandise, added to engagement on the Disney+ streaming service, and attracted more visitors to its theme parks.
Shares of the company jumped 4.6% in premarket trading on Wednesday.
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CEO Josh D'Amaro, who took over in March, highlighted his strategy to invest in franchises like Toy Story to reach audiences outside the box office in a lengthy earnings letter to shareholders on Wednesday.
Separately, Disney and TikTok announced a deal on Wednesday that will allow TikTok creators to use characters and scenes from Disney movies and TV shows in short-form videos, the first agreement of its kind between the social media platform and a traditional media company.
The entertainment giant reported revenue of $25.2 billion in the quarter, up 7% from last year, but shy of Wall Street's forecasts of $25.4 billion, according to analysts surveyed by LSEG.
Disney's per-share earnings rose 28% from a year ago to an adjusted $2.06, beating forecasts of $1.86 a share.
The company said it would sell its 50% stake in A+E Global Media to co-owner Hearst Corporation, and use the estimated $1.2 billion in cash proceeds to repurchase Disney shares. This will increase the value of its fiscal 2026 share repurchases to at least $9 billion.
Disney's Parks and experiences division reported revenue of nearly $10 billion, up 10% from a year ago, fueled by a 4% increase in attendance at its theme parks, globally, and a 3% increase at its domestic parks.
Analysts had expressed concern about Disney's U.S. parks, after Comcast CMCSA.O attributed softening attendance trends at its Universal theme parks in Orlando to higher fuel prices and weaker consumer sentiment.
Operating income for the experiences segment rose to $3 billion, a 20% gain from a year ago, in part reflecting a $100 million tariff refund it received earlier in the quarter. The U.S. Treasury Department has been issuing refunds after the U.S. Supreme Court struck down President Donald Trump's global tariffs as illegal.
Disney's Entertainment group reported $11.3 billion in revenue for the quarter, a gain of 6% from a year earlier, reflecting the performance of "Toy Story" and a 15% increase in subscription fees for the company's Disney+ and Hulu streaming services. Segment operating income rose 64% to nearly $1.7 billion.
Sports reported revenue of $4.5 billion in the quarter, though income from the four-game sweeps that marked the early rounds of the NBA playoff games contributed to lower-than-anticipated operating income, which fell 17% to $858 million.
Disney said it expects fourth quarter segment operating income of $4.9 billion. This guidance reflects anticipated continued healthy growth in its parks group.
However, the weak box office performance of live-action adaptation of "Moana" would impact results for the entertainment segment.
Reporting by Dawn Chmielewski in Los Angeles; Additional reporting by Harshita Mary Varghese in Bengaluru; Editing by Raju Gopalakrishnan
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Disney ve fiskálním 3. čtvrtletí zvýšil provozní zisk o 21 % na 5,6 miliardy USD a tržby o 7 % na 25,2 miliardy USD, nad odhady trhu. Zisk ze streamingu se více než zdvojnásobil na 712 milionů USD.
Disney’s Josh D’Amaro stepped out with solid numbers and some news in his first full quarter as CEO. Toy Story 5 drove studio revenue, theme parks saw an uptick in attendance, and streaming profits more than doubled for the three months ended in June.
Total operating income for Disney’s fiscal third quarter jumped 21% $5.6 billion, beating Wall Street forecasts, as did adjusted EPS (of $2.06 a share, up from $1.61).
Revenue of $25.2 billion rose 7% from the year earlier.
The fiscal Q3 numbers follow confirmation of Disney’s planned sale of its 50% interest in A+E Global Media to an affiliate of co-owner Hearst for $1.2 billion in cash. The media giant is moving its consumer products business under Studios from the lucrative division’s longtime home in Experiences. And it unveiled a global, short form content sharing partnership with TikTok this morning.
The quarterly numbers and full-year outlook “reinforce our confidence that we are uniquely well positioned,” said D’Amaro, who took the reins from Bob Iger in March. “Decades of IP investment have built deep fan connections that translate into strong financial results. Our accelerating global guests growth at Experiences, Toy Story 5‘s theatrical and consumer products success, and strong ESPN viewership gains all helped expand our consumer reach this quarter.”
He’ll be hosting a call with analysts at 8:30 am ET.
Disney’s three sprawling divisions are led by Entertainment, which posted profit of $1.7 billion, up 64%, on revenue of $11.3 billion. The company cited the June 19 theatrical release of Toy Story 5, which has surpassed $1 billion in global box office, as well as The Devil Wears Prada 2.
Disney acknowledged that Star Wars: The Mandalorian and Grogu and live action Moana (in fiscal 4Q) underperformed at the box office but noted their other contributions to the flywheel like a new Mandalorian-themed Millennium Falcon: Smuggler’s Run at Disneyland and Walt Disney World, and retail sales.
“We expect the live-action Moana to be a strong title on Disney+, building on the success of the original film … and extending the reach of the franchise, which now includes three films, a themed area at EPCOT, and a robust global merchandise business.”
Disney doesn’t furnish streaming subscriber numbers anymore but said SVOD operating income more than doubled to $712 million from $329 million on revenue of $5.5 billion, up 11%. Subscriptions fees rose 15% (9% from more subscribers, 3% from higher rates and 1% from a favorable foreign exchange impact). Advertising nosed up 3% (impressions were higher, rates lower).
Disney also sounded a bit like Netflix as it talked up an emerging international programming slate with Rivals Season 2 on Disney+ in the U.K. and Ireland, The Perfect Crown in Korea and Dear Killer Nannies in Latin America. The company plans to triple the number of Disney+ local original series over the next three years.
“Our ambition is for Disney+ to become the digital centerpiece of the Walt Disney Company,” D’Amaro’s letter said.
“We aim to evolve Disney+ into a comprehensive membership ecosystem. By integrating high-value, always-on benefits with our storytelling, we can reach more fans, deepen engagement, and increase subscriber retention. These product enhancements will also allow us to further segment the market, increasing our addressable opportunity over time. We expect to begin introducing elements of this vision in Spring 2027.”
Disney+ Q3 churn declined worldwide and Disney said it passed an important milestone in “app unification” allowing Hulu standalone and bundle subscribers to link profiles, watch history, and manage subscriptions on Disney+.
At Experiences, profit rose 20% to over $3 billion on almost $10 billion in revenue. Global guests grew 4% and attendance at domestic parks rose 3%. WDW saw healthy core attendance increases from domestic tourists and annual passholders.Forward bookings remain robust.
That should reassure investors who were spooked by softer attendance at Universal’s domestic parks when Comcast reported earnings last month.
Theme parks average per capita ticket revenue rose 5%. Disney noted continued, but moderating, headwinds from international attendance at domestic parks. It cited strong attendance growth at Disneyland Paris following the opening of World of Frozen. Overall, it anticipates a quarter of global guest growth in the current fiscal Q4 despite consumer softness in Asia.
Q3 was the first full quarter with Disney’s two newest cruise ships, the Disney Destiny and Disney Adventure.
Disney said it recorded approximately $100 million in a tariff refund for the quarter, reversing out tariff payments earlier in the fiscal year. Apple last week reported a $2.19 billion tariff refund for the June quarter.
Sports, led by juggernaut ESPN, saw profit of $853 million, down 17% on higher programming and production costs, on $4.5 billion in revenue. Disney cited contractual rate increases, costs for new sports rights and an impact from the timing of rights costs recognition as a result of the NBA contract renewal. Contributing to the lower-than-expected operating income were four-game sweeps in early rounds of the NBA playoffs and the impact of a network carriage dispute. Disney was likely referring here to the resolution terms of a fight with YouTube TV in late 2025.
After unlocking a selection of ESPN content on Disney+ domestically in 2024 and expanding it globally since then, the letter said, the company plans to deliver a more robust subset of games for Disney+ subscribers beginning this fall anchored by additional college football simulcasts. The service will also continue simulcasting college football pregame show College GameDay.
Osisko Gold potvrdila v cíli Proserpine 7 km od ložiska Cariboo nový zlatý mineralizovaný systém s potenciálem povrchové těžby. Nejlepší průniky dosáhly 95,93 g/t Au na 4,60 m a 5,46 g/t Au na 8,60 m.
HIGHLIGHTS 6,463 m in 14 drill holes of new surface exploration drilling at the Proserpine regional exploration target, located 7 km along strike to the southeast of the Cariboo Gold depositResults confirm the presence of an emerging gold mineralized system comprising high-grade structures exhibiting similarities to those at the Cariboo Gold deposit that, together with broader zones of lower-grade mineralization, may indicate potential for open pit mining methodsHighlight intercepts include: 95.93 g/t Au over 4.60 m at 71 m vertical depth (including 873.00 g/t Au over 0.50 m), 5.46 g/t Au over 8.60 m at 77 m vertical depth, and 2.17 g/t Au over 14.45 m at 431 m vertical depthDrilling of an additional 26,500 m planned metres, initially with three rigs, is now resuming following a seasonal hiatus TORONTO, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Osisko Gold Group Inc. (NYSE: OGG, TSXV: OGG) ("Osisko Gold" or the "Company") is pleased to announce its first set of new diamond drilling results consisting of fourteen holes from the surface exploration program on the Proserpine regional greenfield target, located within the broader Cariboo Gold Project property boundary and approximately 7 kilometres ("km") from the Company's permitted, 100%-owned Cariboo Gold Project (the "Project") in central British Columbia, Canada.
Chris Lodder, President, stated, "We are encouraged by the initial results from the drill campaign at Proserpine, which highlight the potential for a significant new gold mineralized system of scale located only 7 km from the Cariboo Gold deposit. Drilling has intersected high-grade structures showing similarities to those at Cariboo, but also containing areas with broader lower grade mineralization that may indicate potential for bulk mining methods. To date, drilling has broadly tested an area measuring approximately 1.0 km x 0.5 km within a larger target of 6.0 km x 1.0 km gold-in-soil and rock anomaly. For context, the currently defined Cariboo Gold deposit extends approximately 4.0 km along strike by 0.5 km in width, underscoring the exploration potential that remains to be tested at Proserpine."
DRILL ASSAY HIGHLIGHTS
This news release contains assays from fourteen (14) diamond drillholes ("DD") totalling 6,463 meters ("m") with depths ranging from 36.0 to 734.3 m (see Table 1 and Figure 3) completed between February and May of 2026. All holes were collared in HQ (63.5 millimetre diameter) and reduced to NQ (47.6 millimetre diameter) where necessary to continue advancing. Estimated true widths of intercepts are provided in Table 1. Select highlights include:
95.93 grams per tonne ("g/t") gold ("Au") over 4.60 m at 71 m vertical depth in PSP-26-004, including: 873.00 g/t Au over 0.50 m, and3.77 g/t Au over 1.20 m 5.46 g/t Au over 8.60 m at 77 m vertical depth in PSP-26-001 (Figure 1), including: 16.05 g/t Au over 1.10 m, and12.50 g/t Au over 0.87 m, and10.25 g/t Au over 0.50 m, and5.97 g/t Au over 0.70 m, and5.21 g/t Au over 0.80 m, and3.36 g/t Au over 0.60 m, and1.50 g/t Au over 0.90 m, and1.18 g/t Au over 0.90 m 2.17 g/t Au over 14.45 m at 431 m vertical depth in PSP-26-001, including: 35.10 g/t Au over 0.65 m, and8.61 g/t Au over 0.50 m, and2.21 g/t Au over 0.50 m, and1.21 g/t Au over 0.50 m 1.46 g/t Au over 12.40 m at 295 m vertical depth in PSP-26-003, including: 15.40 g/t Au over 1.00 m, and2.02 g/t Au over 0.50 m 3.17 g/t Au over 5.45 m at 334 m vertical depth in PSP-26-009, including: 19.30 g/t Au over 0.60 m, and9.52 g/t Au over 0.50 m, and1.22 g/t Au over 0.50 m 1.30 g/t Au over 12.00 m at 27 m vertical depth in PSP-26-011, including: 9.92 g/t Au over 0.70 m, and6.19 g/t Au over 0.50 m, and3.63 g/t Au over 0.50 m, and3.75 g/t Au over 0.50 m, and1.50 g/t Au over 0.65 m 2.93 g/t Au over 5.15 m at 233 m vertical depth in PSP-26-001, including: 15.60 g/t Au over 0.95 m 4.30 g/t Au over 3.10 m at 226 m vertical depth in PSP-26-001, including: 18.75 g/t Au over 0.50 m, and7.54 g/t Au over 0.50 m 2.79 g/t Au over 4.00 m at 184 m vertical depth in PSP-26-014, including: 11.55 g/t Au over 0.90 m 2.30 g/t Au over 4.50 m at 17 m vertical depth in PSP-26-007, including: 12.25 g/t Au over 0.50 m, and5.62 g/t Au over 0.50 m, and1.73 g/t Au over 0.50 m, and1.09 g/t Au over 0.50 m Results to date have expanded the footprint of known mineralization at Proserpine to approximately 1.0 km along strike by 0.5 km in width, with mineralization remaining open in all directions. All drill holes that reached their intended target depths encountered mineralization, providing a compelling basis for systematic follow-up drilling. Mineralization was encountered from near surface to vertical depths exceeding 400 metres. In particular, hole PSP-26-001 returned several notable mineralized intercepts beginning at a vertical depth of approximately 55 metres and with the deepest at more than 400 metres from surface.
FIGURE 1: 5.46 g/t Au over 8.6 m in PSP-26-001 at approximately 77 m vertical depth.
Drilling also intersected significant intervals of the prospective siliceous sandstone unit, confirming its presence within the target area and providing additional information to refine the geologic model. Based on preliminary observations to date, the siliceous sandstone is believed to represent a more favourable host for mineralization than the calcareous sandstone (see Figure 3).
Diamond drilling at Proserpine has resumed with three active drill rigs following a brief, planned seasonal hiatus. Additional drill rigs may be mobilized as warranted as the planned drill program continues to expand the mineralized footprint and increase drillhole density at Proserpine Southeast, while initiating first-pass drilling at previously untested targets at Proserpine Northwest.
FIGURE 2: Cariboo Gold regional overview.
FIGURE 3: Plan view of Proserpine diamond drilling with select intercept highlights.
FIGURE 4: Proserpine diamond drilling select intercept highlights in long section.
TABLE 1: Select manual composite and individual sample highlights greater than or equal to 1.0 g/t Au.
Drillhole IDEasting
(UTM Zn 10N)Northing
(UTM Zn 10N)Elevation (m)Depth (m)Collar DipCollar AzimuthPSP-26-00160152558769981719603.70-45125PSP-26-00260179658766701755502.20-45125PSP-26-00360158558769041721612.00-45125PSP-26-00460188158766221750498.00-45125PSP-26-00560156358768591721657.00-45125PSP-26-00660128258769681675542.00-45125PSP-26-00760196858765711737345.00-45125PSP-26-00860206158765151717277.75-45125PSP-26-00960143658769961699525.00-45125PSP-26-0106019315876700173574.50-45125PSP-26-01160205658765191718620.80-45125PSP-26-0126016295876769172836.00-45125PSP-26-01360193258767001735435.00-45125PSP-26-01460162758767691728734.30-45125 ABOUT THE PROSERPINE PROSPECT
The Proserpine Mountain ("Proserpine") prospect area represents a roughly 4 km long post-mineralization fault-bound prospective strike length identified through detailed surface mapping and surface geochemical sampling approximately 7 km along strike to the southeast of the Company’s permitted, 100%-owned Cariboo Gold Project, located in central British Columbia. Mineralization style and controls observed at Proserpine appear to be similar to those observed in the Cariboo Gold deposit area, with high-grade gold intercepts associated with quartz-pyrite to polymetallic (pyrite+/-galena+/-arsenopyrite) quartz veins. Less than half the strike-length of the Proserpine has been drill tested to date, with the current campaign focused on following up on promising preliminary results from the 2019-2020 drilling campaigns at the central southeast limits of the prospect area (Proserpine Southeast). An aggregate total of 10,497 metres of exploration drilling was completed by the Company at the Proserpine regional prospect between 2018 and 2020, not including new drilling contained herein.
ABOUT THE CARIBOO GOLD PROJECT
The Cariboo Gold Project is a permitted, 100%-owned feasibility-stage project located in the historic Wells-Barkerville mining camp of central British Columbia, Canada. Spanning approximately 186,740 hectares, the Company's land package includes 443 mineral titles and covers an area that extends approximately 77-kilometres from northwest to southeast. In late 2024, the Project was granted the Mines Act and Environmental Management Act (British Columbia) permits, marking the successful completion of the permitting process for key approvals, solidifying the Project's shovel-ready status.
The Cariboo Gold Project hosts probable mineral reserves of 2.071 million ounces of contained Au (17,815 kt grading 3.62 g/t Au); measured mineral resources of 8,000 ounces of contained Au (47 kt grading 5.06 g/t Au); indicated mineral resources of 1.604 million ounces of contained Au (17,332 kt grading 2.88 g/t Au); and inferred mineral resources of 1.864 million ounces of contained Au (18,774 kt grading 3.09 g/t Au). Mineral resources are reported exclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The reader is cautioned that inferred mineral resources have a greater degree of uncertainty than indicated mineral resources and must not be converted to mineral reserves; it is reasonably expected, though not guaranteed, that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.
Technical Reports
Scientific and technical information relating to the Cariboo Gold Project and the 2025 feasibility study on the Cariboo Gold Project is supported by the technical report, titled "NI 43-101 Technical Report, Feasibility Study for the Cariboo Gold Project, District of Wells, British Columbia, Canada" dated June 11, 2025 (with an effective date of April 25, 2025) (the "Cariboo Technical Report").
For readers to fully understand the information in the Cariboo Technical Report, reference should be made to the full text of the Cariboo Technical Report in its entirety, including all assumptions, parameters, qualifications, limitations and methods therein. The Cariboo Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The Cariboo Technical Report was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and is available electronically on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) under Osisko Gold's issuer profile and on the Company's website at www.osiskogold.ca.
Qualified Persons
The scientific and technical information contained in this news release has been reviewed, verified and approved by Scott Smith, P. Geo., Vice President, Exploration of Osisko Gold, a "qualified person" within the meaning of NI 43-101. Verification includes core photo and three-dimensional review of logged drillhole data and assays consistent with the Company's standard procedures.
The exploration results disclosed in this news release are based on incomplete data and are preliminary in nature. There are no known drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data; however, readers are cautioned that additional drilling and sampling may result in materially different results than those presented herein.
Quality Assurance (QA) – Quality Control (QC)
HQ and NQ diameter drill core is cut (halved) on site at the Cariboo Project subsequent to QAQC checks for logging and sampling errors. Quality control (QC) samples are inserted at regular intervals in the sample stream, including blanks and reference materials with all sample shipments to monitor laboratory performance. Samples are bagged, labelled, sealed with numbered security tags, and transported to the laboratory under secure chain of custody procedures.
All drill core samples are submitted to ALS Geochemistry's analytical facility in North Vancouver, British Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays, and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed, and 250 grams is pulverized. Analysis for gold is by 50 gram fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and upper limit of 100 ppm. Samples with gold assays greater than 100 ppm are re-analyzed by fire-assay with gravimetric finish (upper limit 10,000 ppm). Select samples containing visible gold and/or cosalite are flagged during logging for an additional 1,000-gram screen metallic fire assay to ensure accurate quantification of any coarse fraction. All samples are also analyzed using a 48 multi-elemental geochemical package by a 4-acid digestion, followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) and Inductively Coupled Plasma Mass Spectroscopy (ICP-MS).
ABOUT OSISKO GOLD GROUP INC.Osisko Gold Group Inc. is a continental North American gold development company focused on past producing mining camps with district-scale potential. The Company's objective is to become an intermediate gold producer through the development of its flagship, fully permitted, 100%-owned Cariboo Gold Project, located in central British Columbia, Canada. Its project pipeline is complemented by the Tintic Project, located in the historic East Tintic mining district in Utah, U.S.A., a brownfield property with significant exploration potential, extensive historical mining data, and access to established infrastructure. Osisko Gold is focused on developing long-life mining assets in mining-friendly jurisdictions while maintaining a disciplined approach to capital allocation, development risk management, and mineral inventory growth.
For further information, visit our website at www.osiskogold.ca or contact:
Sean Roosen
Chairman and CEO
Email: [email protected]
Tel: +1 (514) 940-0685
Philip Rabenok
Vice President, Investor Relations
Email: [email protected]
Tel: +1 (437) 423-3644
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, as amended) (collectively, "forward-looking statements"). Such forward-looking statements are identified with words such as "may", "will", "would", "could", "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee", "objective", "strategy", variants of these words or the negative or comparable terminology, as well as terms usually used in the future and the conditional. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including the assumptions, qualifications, limitations or statements pertaining to: the utility and significance of the exploration drilling at the Proserpine regional target and the results and interpretation thereof; the presence and continuity of an emerging gold mineralized system at Proserpine exhibiting similarities to the Cariboo Gold deposit; the potential for open pit mining methods at Proserpine based on mineralization characteristics observed to date; the significance and interpretation of drill intercepts and the ability to expand the mineralized footprint at Proserpine; the planned resumption and continuation of the drilling program at Proserpine; the prospectivity of exploration in targets outside of currently defined mineral reserves and/or mineral resources; the assumption that a comparison of the strike length and width of the currently defined Cariboo Gold deposit to the area tested to date at the Proserpine exploration target is meaningful and indicative of exploration potential, which has not been demonstrated; the assumption that further exploration at Proserpine will yield results (if any) comparable to those at the Cariboo Gold deposit; the interpretation and accuracy of spatial geometries, geological structure and local variability modeling and assumptions; the results (if any) of further exploration work and ability of the Company to define mineral resources at Proserpine; the ability of exploration work (including drilling and sampling) to accurately predict mineralization; the ability of the Company to complete its exploration objectives in the timing contemplated and within expected costs (if at all); assumptions, qualifications and parameters underlying the Cariboo Technical Report (including, but not limited to, the mineral resources, mineral reserves, production profile, mine design and project economics); the ability of the Company to achieve the estimates outlined in the Cariboo Technical Report in the timing contemplated (if at all); the future development and operations at the Cariboo Gold Project; management's perceptions of historical trends, current conditions and expected future developments; the utility and significance of historic data, including the significance of the district hosting past producing mines; the ability to adapt to changes in gold prices, estimates of costs, estimates of planned exploration and development expenditures; the Company's strategy and objectives relating to the Cariboo Gold Project as well as its other projects; the assumptions, qualifications and limitations relating to the Cariboo Gold Project being permitted; the exploration potential and prospectivity (if any) of its properties; the Company's anticipated name change and trading of its securities under its updated stock ticker symbols (including timing thereof); regulatory framework remaining defined and understood as well as other considerations that are believed to be appropriate in the circumstances, and any other information herein that is not a historical fact may be "forward looking information". Actual results could differ materially due to a number of factors, including, without limitation: the change in the Company's trading symbols and the marketplace effective date of such changes, risks relating to third-party approvals, including the issuance of permits by governments, capital market conditions and the Company's ability to access capital on terms acceptable to the Company for the contemplated exploration and development at the Company's properties; risks related to the exploration, development and operation of the Cariboo Gold Project; risks related to geological modeling and resource estimation; health, safety and security incidents; regulatory delays or changes in regulatory framework and applicable laws; labour shortages or disputes; general economic and market conditions and business conditions in the mining industry; fluctuations in commodity and currency exchange rates; changes in regulatory framework and applicable laws, as well as those risks and factors disclosed in the Company's most recent annual information form, financial statements and management's discussion and analysis as well as other public filings on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov).
Although the Company believes the expectations conveyed by the forward-looking statements are reasonable based on information available as of the date hereof, no assurances can be given as to future results, levels of activity and achievements. The Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. Forward-looking statements are not guarantees of performance and there can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/b721d582-4327-45f9-99b0-7912b2781c4a
https://www.globenewswire.com/NewsRoom/AttachmentNg/e0bd2556-1581-43c4-9697-f627ac4a198c
https://www.globenewswire.com/NewsRoom/AttachmentNg/703af41e-b822-4f85-82b7-53a6e1821143
https://www.globenewswire.com/NewsRoom/AttachmentNg/85a67a99-e19d-4052-9c59-366164458ce5
Check-Cap nyní očekává uzavření fúze s MBody AI během příštích osmi týdnů, tedy ve 3. čtvrtletí 2026. Dokončení stále čeká na konečný souhlas Nasdaqu a další běžné podmínky.
ISFIYA, Israel and LAS VEGAS, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Check-Cap Ltd. (“Check-Cap” or the “Company”) (NASDAQ: MBAI) today updated the expected closing timeline for its proposed business combination with MBody AI Corp. (“MBody AI”), projecting completion in the third quarter of 2026. This updates the Company’s previously announced expectation of a closing in the second half of 2026. The Company publicly filed its registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the “SEC”) on July 24, 2026, and has responded to all comments received from the SEC staff. Closing remains subject to final approval by Nasdaq and the satisfaction of the remaining customary closing conditions, none of which can be assured.
Transaction Progress to Date
The following steps have been completed and are reflected in the Company’s public filings:
Shareholder approval: the merger has been approved by the shareholders of both Check-Cap and MBody AI.Annual report: Check-Cap filed its Annual Report on Form 20-F for the year ended December 31, 2025 on April 27, 2026.MBody AI financial statements: MBody AI’s audited financial statements for the year ended December 31, 2025 were furnished on Form 6-K on May 12, 2026, and updated financial statements were furnished on Form 6-K/A on June 24, 2026.Registration statement: the Company’s registration statement on Form F-1 was publicly filed with the SEC on July 24, 2026 and is available at www.sec.gov.SEC staff comments: the Company has responded to all comments received from the SEC staff on its Annual Report on Form 20-F and on the Form F-1.Nasdaq listing application: Check-Cap submitted its initial listing application on February 24, 2026. As previously reported on April 30, 2026, Nasdaq completed its initial review of the application and the Company responded to all questions in the Supplemental Information Request Form.Closing conditions: the parties have satisfied substantially all of the closing conditions within their respective control. Steps Remaining
Completion of the merger and the commencement of trading remain subject to the effectiveness of the Form F-1, final approval of the Company’s initial listing application by Nasdaq including satisfaction of all initial listing requirements, and the satisfaction of the remaining customary closing conditions. None of these matters can be assured.
Based on the status of these matters, the Company now expects the merger to close in the next eight weeks, before the end of the third quarter of 2026. Upon completion, the combined company is expected to continue trading on Nasdaq under the ticker symbol “MBAI.”
“Shareholders have asked about the status of this transaction, and the answer is in the public filings: the Form F-1 has been submitted and is available for review. We have responded to every comment we have received, and our listing application has been through Nasdaq’s initial review,” said David Lontini, Chairman and Interim Chief Executive Officer of Check-Cap Ltd. “We now expect to close in the next eight weeks, subject to the approvals that remain outstanding.”
“Throughout this process, we’ve stayed focused on building the business. We have continued signing customers, deploying robots and preparing MBody AI to operate as a public company from day one,” said John Fowler, Chief Executive Officer of MBody AI. “When this transaction closes, shareholders will own an operating business with commercial operations already underway.”
Additional investor information is available at ir.mbody.ai
About Check-Cap Ltd.
Check-Cap Ltd. (NASDAQ: MBAI) is a technology company executing a strategic transformation through its shareholder-approved merger with MBody AI Corp. Upon completion, Check-Cap expects to become a publicly traded provider of embodied artificial intelligence, delivering enterprise-grade AI orchestration for robotic systems across hospitality, gaming, and commercial real estate operations. The merger is targeted to close in the third quarter of 2026, subject to customary closing conditions.
About MBody AI Corp.
MBody AI Corp. is a hardware-agnostic enterprise robotics platform that deploys and manages autonomous robot workforces for hospitality, gaming, and commercial real estate operators. The company’s proprietary MBody AI Orchestrator™ manages diverse robot fleets across sites and use cases under long-term subscription agreements. MBody AI counts leading Fortune 500 operators among its customers. For more information, visit www.mbody.ai.
No Offer or Solicitation
This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. A registration statement relating to securities of the Company has been filed with the SEC but has not yet become effective. The securities covered by that registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. Neither the SEC nor any state securities commission has approved or disapproved of such securities or passed upon the accuracy or adequacy of the registration statement.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements made in graphics, images, headlines, and other visual elements of this release, including any references or imagery suggesting a future Nasdaq listing. All statements other than statements of historical fact are forward-looking statements, which include, among others, statements regarding the completion and timing of the merger with MBody AI, including the Company’s expectation that the merger will close in the third quarter of 2026; the expected timing of effectiveness of the Company’s registration statement on Form F-1; the completion, timing, and outcome of the SEC staff’s review processes; the status and outcome of the Company’s Nasdaq initial listing application; the anticipated Nasdaq listing and commencement of trading; the determination, ratio, timing, and implementation of any reverse share split and the Company’s ability to satisfy Nasdaq’s minimum bid price requirement; the Company’s ability to maintain continued compliance with Nasdaq listing requirements; the expected benefits of the merger; and the future operations and positioning of the combined company. These forward-looking statements are based on the Company’s current intentions, beliefs, and expectations regarding future events. Actual results may differ materially due to risks and uncertainties including, but not limited to, the satisfaction of closing conditions; the ability to complete the merger on the anticipated timeline or at all; the risk that the Form F-1 does not become effective on the anticipated timeline or at all; the risk that the SEC staff issues additional comments or requires additional amendments; the ability to receive Nasdaq approval, satisfy all initial listing requirements, and commence trading, none of which is assured; the risk that a reverse share split is not implemented, or is implemented at a ratio or on a timeline that does not achieve the intended result; market conditions; and other factors described in the Company’s filings with the U.S. Securities and Exchange Commission. There can be no assurance that the merger will close in the third quarter of 2026 or at all, that the Form F-1 will become effective on the anticipated timeline or at all, or that the Company will receive Nasdaq approval or that trading will commence. The Company undertakes no obligation to update forward-looking statements except as required by law.
Quick Facts
IssuerCheck-Cap Ltd. (NASDAQ: MBAI)Operating
businessMBody AI Corp.AnnouncementCheck-Cap now expects its merger with MBody AI to close in the third quarter of 2026, updating prior guidance of the second half of 2026Form F-1
Filing DateJuly 24, 2026
Annual Report on Form 20F
Filing DateApril 27, 2026Nasdaq initial listing
application submittedFebruary 24, 2026Shareholder
approvalObtained from shareholders of both companies
Merger statusTargeted to close in the third quarter of 2026, subject to final Nasdaq approval and remaining customary closing conditions, none of which is assured
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From Siren Solo to Global Icon In early 2011, Starbucks (NASDAQ:SBUX | SBUX Price Prediction) marked its 40th birthday by stripping the wordmark from its logo, leaving only the green siren. It was a confident branding bet, and it landed at the start of a decade of aggressive expansion into mobile ordering, loyalty, and China. The stock rode that wave for years, then stalled.
The past five years told a messier story: post-pandemic traffic softness, labor pressure, and CEO turnover. That set the stage for Brian Niccol, the former Chipotle chief, to arrive in FY2025 with his “Back to Starbucks” plan built around baristas, throughput, and in-store experience.
The Turnaround Is Showing Up in the Numbers In Q3 FY2026, reported July 29, 2026, Starbucks posted non-GAAP EPS of $0.85, beating the $0.66 estimate by 28.79%. Revenue of $9.32 billion dipped slightly due to the China retail divestiture to a Boyu Capital JV, but global comp sales jumped 7.9%, North America comps rose 8.1%, and operating margin expanded 430 bps to 14.4%. Niccol called results “the turn in our turnaround.”
What $10,000 Since the 2011 Rebrand Looks Like Shares were $12.76 on March 8, 2011, and closed at $104.97 on August 4, 2026. Here is the return arc versus the S&P 500 on a $10,000 Starbucks investment:
Period Starbucks S&P 500 Since 40th Anniversary $82,271 (722.71%) $58,178 (481.78%) 10-Year $23,168 (131.68%) $35,353 (253.53%) 5-Year $9,912 (−0.88%) $17,460 (74.60%) 1-Year $12,004 (20.04%) $12,221 (22.21%) Year-to-Date $12,620 (26.20%) $11,311 (13.11%) The arc is exactly what the setup implied: a monster winner off the 2011 rebrand, then a flat half-decade as growth engines sputtered, now re-accelerating as operational fixes land. Dividend income sweetened returns, with the Starbucks quarterly payout climbing from $0.13 in 2011 to $0.62 today (split-adjusted).
Wall Street’s Take and the Verdict Analyst sentiment on Starbucks is cautious, and the consensus price target is $111.74. Shares trade at a rich 60x trailing P/E and 35x forward P/E, so a lot of turnaround optimism is already baked in.
The bull case rests on Niccol’s fixes sticking and comps holding near the raised FY2026 guidance of $2.55 to $2.65 EPS, ~6% global comps, and 11%+ operating margin. The bear case is that the multiple leaves little cushion for a stumble in China licensing economics or U.S. traffic. Given the traffic inflection, margin expansion, and rewards momentum, the setup skews constructive, with a 12-month view more bullish than Wall Street.
If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:
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Phillips 66 ve 2. čtvrtletí téměř zčtyřnásobila čistý zisk a překonala odhady díky silným rafinérským maržím. Čistý zisk vzrostl na 3,85 miliardy USD z 877 milionů USD před rokem.
The Phillips 66 refinery in Immingham, Britain, April 10, 2025. REUTERS/Dominic Lipinski Purchase Licensing Rights, opens new tab
CompaniesAug 5 (Reuters) - Phillips 66 (PSX.N), opens new tab reported a nearly fourfold jump in second-quarter profit on Wednesday, crushing Wall Street estimates, as the Middle East conflict squeezed global fuel supplies and sent U.S. refining margins soaring.
U.S. refiners have been among the biggest beneficiaries of the Iran war, as international buyers have scrambled to secure alternative fuel supplies amid concerns over disruptions to Middle Eastern exports.
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The surge in overseas demand has helped push U.S. fuel exports to record highs, particularly for diesel and other refined products.
Phillips' refining segment reported an unprecedented jump in adjusted earnings to $3.09 billion from $392 million a year earlier.
Its realized margin in the second quarter more than doubled to $24.08 per barrel from a year earlier.
The company's net income came in at $3.85 billion, up from $877 million a year ago and marking its strongest quarterly profit since 2022, when Russia's invasion of Ukraine disrupted global supply chains and boosted refinery earnings.
Shares of Phillips 66 rose 1.3% to $208.50 in premarket trading. Last week, the company's board approved a $10 billion increase to its share repurchase program.
Quarterly adjusted earnings at Phillips 66's renewable fuel segment rose to $544 million, compared with a loss of $133 million a year earlier.
U.S. refiners are beginning to see stronger returns from renewable fuels after years of margin pressure, helped by a recent increase in biofuel blending mandates and a rise in diesel prices linked to the Middle East conflict.
Houston, Texas-based Phillips 66 reported an adjusted profit of $9.41 per share for the three months ended June 30, compared with analysts' average estimate of $7.44 per share, according to data compiled by LSEG.
Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Oracle se po nedávném propadu odrazil, když ORCL vzrostl z 114 USD na 145 USD a je stále 42 % pod letošním maximem. Zároveň jeho riziko nesplácení podle CDS vystoupalo na rekord a dluh prudce roste.
Oracle stock has rebounded in the past few days as investors have rotated to technology names as the earnings season gains steam. ORCL jumped to $145 on Tuesday, up by 27% from its lowest level this year. So, is the stock a good buy as its CDS spread jumps to a record high?
Larry Ellison’s Oracle is under pressure. Even with its recent rebound, the stock remains 42% below its highest level this year. Its market capitalization has plunged sharply during this time.
At the same time, investors are concerned about its future as its debt surges. For one, the company’s default risk has jumped to the highest level on record, surpassing where it was during the Global Financial Crisis in 2008.
The default risk is measured using the credit default swap (CDS), a financial instrument that provides protection against the risk of a debt default. A higher CDS spread is usually a sign that investors are demanding a larger premium to insure the debt.
Other measures show that investors are jittery about the company. For example, the company’s bond yields remain at an elevated level. Its 2046 bond yield has jumped to 7.50%, while the 2056 ones have moved to 7.60%. Top credit rating agencies like S&P Global have given it a junk rating.
These metrics come at a time when its debt is soaring. TradingView data shows that its total debt has jumped from $73.6 billion in 2019 to $167 billion today, and the company plans to raise over $40 billion this year. The net debt has jumped from $30.6 billion to $135 billion in the same period.
Oracle’s total debt has jumped because the company is betting it all on AI. It is a member of the Stargate project that aims to spend over $500 billion in the US.
There are signs that the emphasis on AI is paying off as its remaining performance obligations (RPO) has jumped sharply in the past few months. In the last quarter, its RPO jumped by $85 billion to $638 billion. Most of these deals are with OpenAI, xAI, and Meta Platforms.
While these are all big companies, there are concerns that they will need to slow their AI spending at some points as they focus on their profitability. OpenAI is said to consider delaying its IPO to next year.
If the AI theme works out, then there is a possibility that Oracle will be one of the biggest beneficiaries.
The most recent results showed that Oracle’s business is doing well, with its revenue soaring by 20% to $19.2 billion. Its earnings-per-share also jumped by 21% to a record $1.45.
By segment, Oracle’s cloud segment revenue jumped by 47% to $9.9 billion, with its cloud infrastructure hitting $5.8 billion.
This growth is expected to continue as it fulfils its AI obligations. As a result, analysts expect last quarter’s revenue jumped by 28% to $19.2 billion, while the annual one will soar by 325 to $89 billion.
Oracle stock chart | Source: TradingView
Wall Street analysts have a mixed outlook for the Oracle stock price. For example, Guggenheim has a target of $400, while Bernstein and TD Cowen have a target of $325 and $300, respectively. On the other hand, Piper Sandler and JPMorgan are not all that enthusiastic about the company.
The daily chart shows that the ORCL share price has rebounded in the past few days, moving from a low of $114 to the current $145. It has already jumped above the key resistance level of $134.80, its lowest level in February, March, and April this year.
Moving above that level is a sign that bulls are gaining momentum. However, before the stock jumps above the 100-day and 200-day moving averages, there is a risk that this rebound is just a dead-cat bounce.
Fundamentally, however, Oracle’s business is trading at a bargain, with the forward price-to-earnings ratio being 17.
Heinz ketchup for sale at a supermarket in Queens, New York City, U.S., September 3, 2025. REUTERS/Kylie Cooper/File Photo Purchase Licensing Rights, opens new tab
Aug 5 (Reuters) - Kraft Heinz (KHC.O), opens new tab raised its annual forecasts after beating quarterly sales estimates on Wednesday, as CEO Steve Cahillane's turnaround efforts gained traction and price hikes helped counter lower volumes in North America and other markets.
The better-than-expected results give credence to Cahillane's turnaround strategy, which has driven an uptick in marketing and innovation spends as the company leans aggressively into protein-heavy foods and electrolyte-infused drinks to attract health-conscious consumers.
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The packaged goods company said it would increase its incremental investments by $100 million to about $700 million in 2026, a cash injection Cahillane had hinted at during an interview with Reuters in June. Cahillane became Kraft Heinz's CEO in January.
The company now expects annual organic sales to fall between 0.5% and 2.0%, compared with its prior view of a 1.5% to 3.5% decline.
It also expects annual adjusted earnings per share of $2.03 to $2.09, compared with its prior forecast of $1.98 to $2.10.
While Kraft Heinz benefited from price-led growth, its volumes remained under pressure in key markets including North America. "Growth in Canada and Away From Home was offset by declines in U.S. Retail, which were primarily driven by meats," CFO Andre Maciel said in prepared remarks.
Shares of the company remained largely unchanged in volatile premarket trading. A non-cash $7.4 billion impairment charge contributed to an operating loss during the quarter, though one smaller than the company reported a year earlier.
Kraft Heinz has been navigating a challenging environment as energy and raw material costs surge amid ongoing geopolitical conflicts.
Maciel said the company was well hedged on energy and edible oils for most of 2026, but was hedged on certain resins and metals only through the middle of the third quarter.
"As those roll off, we expect greater exposure to spot prices in the fourth quarter," he said.
Kraft Heinz's quarterly sales fell 1.4% to $6.26 billion from a year earlier, compared with analysts' expectations of a 3.6% decline to $6.12 billion, according to data compiled by LSEG.
On an adjusted basis, the company reported a profit of 56 cents per share, down 18.8% from a year ago but beating analysts' estimates of 53 cents per share.
Reporting by Anuja Bharat Mistry in Bengaluru and Alexander Marrow in London; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Mezi společnostmi AstraZeneca a Bristol Myers Squibb neprobíhají žádná jednání o možné dohodě, uvedl zdroj blízký věci. Tím popřel spekulace o velké fúzi v hodnotě téměř 400 miliard USD.
A sign stands outside a Bristol Myers Squibb facility in Cambridge, Massachusetts, U.S., May 20, 2021. REUTERS/Brian Snyder/File Photo Purchase Licensing Rights, opens new tab
CompaniesAug 5 (Reuters) - There are "no discussions" ongoing between AstraZeneca (AZN.L), opens new tab and Bristol Myers Squibb (BMY.N), opens new tab over a potential deal, a senior source close to the matter told Reuters on Wednesday, quashing the prospect of a mooted mega merger between the drugmakers.
"There is no deal between AstraZeneca and BMS. There never was a deal to be done, and there are no discussions between the companies," said the source, speaking on condition of anonymity.
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AstraZeneca and Bristol Myers Squibb both declined to comment in response to emailed questions from Reuters.
On Sunday Reuters reported, citing a person familiar with the situation, that the two drugmakers had held preliminary talks about a possible deal that would create a pharmaceutical behemoth with a combined value of nearly $400 billion.
Reuters was unable to ascertain at that time if the discussions remained ongoing.
The Financial Times first reported news of the talks.
AstraZeneca shares slid around 9% after the reports of the deal talks, while Bristol Myers shares had held more steady.
Reporting by Maggie Fick and Sabrina Valle; Additional reporting by Amy-Jo Crowley; Editing by Adam Jourdan and Jan Harvey
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Maggie is a Britain-based reporter covering the European pharmaceuticals industry with a global perspective. In 2023, Maggie's coverage of Danish drugmaker Novo Nordisk and its race to increase production of its new weight-loss drug helped the Health & Pharma team win a Reuters Journalists of the Year award in the Beat Coverage of the Year category. Since November 2023, she has also been participating in Reuters coverage related to the Israel-Hamas war. Previously based in Nairobi and Cairo for Reuters and in Lagos for the Financial Times, Maggie got her start in journalism in 2010 as a freelancer for The Associated Press in South Sudan.
NY-based correspondent reporting on some of the largest deals in Healthcare and Industrials. Previously based in Houston, covering global operations of U.S. oil majors. Sabrina has a two-decade career in Business reporting, with a strong background in source-based enterprise and investigations. She previously worked at Bloomberg, Washington Post and has been based in Rio and D.C. covering large corporations, including finance, corruption and geopolitics.
Citadel v červenci výrazně posílil díky oživení rizikových aktiv a levnému nákupu portfolia Situational Awareness po jeho kolapsu. Vlajkový fond Wellington si připsal 5,9 %, což byl nejlepší měsíc od roku 2022.
Ken Griffin's Citadel posted strong gains across its major hedge funds in July, helped by a recovery in risk assets and a discounted purchase of assets from the collapse of Leopold Aschenbrenner's Situational Awareness to end the month, according to a person familiar with the firm's performance.
Citadel's flagship multistrategy Wellington fund, the firm's largest, returned 5.9% in July, marking its best monthly performance since 2022 and pushing 2026 gains to 12%, the person said. The tactical trading fund, which combines discretionary equity investing with quantitative strategies, gained 11.1% in July and is up 27% on the year. The equities fund advanced 14.2% last month, bringing 2026 return to 27%. Tactical fund and equities fund both had its best month ever. The person asked not to be identified discussing confidential performance figures.
The July gains came after Citadel acquired the bulk of the public-stock portfolio formerly held by Situational Awareness late last month, following the hedge fund's rapid unraveling after steep losses triggered margin calls and forced asset sales. Citadel purchased many of the holdings at a significant discount, positioning the firm to benefit as markets rebounded into the month-end.
Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrenner, was forced to unwind many of its positions after a sharp reversal in artificial intelligence trades left it bleeding on both sides of its book. The firm had accumulated sizable stakes in AI infrastructure companies while betting against software stocks, a strategy that backfired as software shares rallied and AI hardware names slumped.
Several of the fund's prime brokers worked to reduce positions in an orderly fashion as Situational Awareness sought to meet margin requirements. Citadel emerged as one of the largest buyers of the portfolio, taking advantage of one of the year's biggest forced liquidations.
Stocks such as Nebius and Micron that Aschenbrenner's fund owned rebounded in the final days of July following a brutal month with many traders saying the fund's near collapse and rescue move by Citadel was a clearing event that caused short sellers to take profits.
Citadel managed about $71 billion in assets as of July 1 and has often used periods of market dislocation to deploy capital into distressed or forced-selling situations.
Rockwell Automation ve 2. čtvrtletí zvýšila tržby o 9 % na 2,2 miliardy USD a EPS vzrostl o 40 % na 3,10 USD. Ouster v 1. čtvrtletí zvýšil tržby o 49 % na 48,6 milionu USD.
As breakthroughs in artificial intelligence (AI) models and chip technology evolve, robotics and automation are expanding from single-task machinery to intelligent, general-purpose systems. These advancements are expected to drive strong adoption across factories, manufacturing, food service, and healthcare settings.
According to research published by Future Market Insights, the industrial robotics market could grow from $65 billion this year to nearly $344 billion by 2036, representing an 18% compound annual growth rate (CAGR). With such strong growth projected in the coming decade, here are three robotics and automation stocks investors can consider buying in August.
Image source: Getty Images.
Rockwell's Control Systems create sticky customer relationships When it comes to industrial automation, Rockwell Automation (ROK -7.43%) is one of the biggest in the world. The company develops the "brains" of robotics, including drives, sensors, motion controls, and related software that tell robots how and when to move and what to do next. So while a factory owner could swap out old robotic arms for newer models, Rockwell's systems remain in place.
Rockwell stands out thanks to its dominant 50% market share of programmable logic controllers (through its subsidiary Allen-Bradley) in North America, giving it a robust competitive advantage as Western manufacturers look to reshore and modernize industrial automation processes. On top of this, once its architecture is in place, many factory operators don't want to switch or retrain it, and the switching costs become prohibitive.
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The company has a stellar track record and boasts gross margins of 49%, while operating margins hover around 22%, making it a highly profitable company that should benefit from the tailwinds of growing AI and automation. In the second quarter, the company reported $2.2 billion in sales, up 9%, while generally accepted accounting principles (GAAP) earnings per share (EPS) rose 40% to $3.10.
Rockwell is building on its position and is looking toward the nuclear energy market next. It was recently selected by Aalo Atomics as the control platform provider for its Aalo-X test reactor, which is part of the U.S. Department of Energy's pilot program to accelerate the development of advanced nuclear technologies. This move also positions it to be a key player in the long-term growth of small modular reactor (SMR) technologies.
Ouster manufactures the "eyes" of automation For investors seeking growth, Ouster (OUST +12.62%) is a robotics stock on the rise. If Rockwell provides the brains, then Ouster provides the eyes for robotics. The company develops digital 3D LiDAR (light detection and ranging) hardware and spatial perception software, with sensors built on a custom silicon chip architecture.
Its technology enables spatial navigation and mapping, letting mobile robots navigate complex environments, including warehouses, crop fields, or tunnels, without needing to use light or global positioning systems. Unlike many peers that went all-in on self-driving vehicles, Ouster has diversified into industrial machinery and infrastructure.
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In Q1, Ouster's revenue surged 49% to $48.6 million, while its gross profit jumped 55% to $20.8 million. The company's advantage comes from its digital chip architecture, and its recent quarter saw stellar profit margins of 43%. To be sure, the company did post a net loss of $17.4 million and recently raised $200 million by issuing 3.6 million shares of common stock, so investors must balance its rapid growth against its ongoing investments in automation technologies and the possible dilution of their ownership stake.
Looking ahead, Ouster aims to become a full-stack, high-margin physical AI perception platform by unifying stereo camera vision, 3D digital LiDAR, and edge perception software. If it succeeds, it could lock in customers across robotics and smart infrastructure and improve recurring revenue as it works toward profitability.
Symbotic is a Walmart-backed automation play in distribution centers Symbotic (SYM +3.51%) is another growing company developing AI-powered supply chain technology for automating warehouse systems. The company builds autonomous systems to help automate processes across the supply chain for retailers, including robots that operate in three dimensions. It also helps redesign traditional distribution infrastructure, enabling customers to manage higher inventory levels without increasing their physical footprint.
The company is deeply integrated into Walmart, its biggest single customer and an investor in Symbotic stock. Walmart owns 15 million Class A shares in Symbotic, giving it roughly an 11% ownership stake in the company. Walmart has a vested interest in Symbotic and is actively deploying its end-to-end system in all 42 of its U.S. regional distribution centers.
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Through the first half of Symbotic's fiscal year ended March 28, revenue surged 26% to $1.3 billion, while net income flipped from a loss of $26.7 million last year to a profit of $22.8 million.
Of course, investing in Symbotic comes with risks. For example, the company expects to spend $20 million to $25 million per quarter as it rolls out its next-generation systems, which are expected to significantly shorten installation assembly times.
Looking ahead, Symbotic plans to introduce prototype products targeting e-commerce fulfillment (SyMicro), automated pickup and delivery (APD), and cold-storage environments. For investors looking for exposure to warehouse automation backed by a retail giant, Symbotic is an intriguing growth stock to scoop up now.
CVS Health ve 2. čtvrtletí téměř ztrojnásobila čistý zisk na 2,9 miliardy USD díky nižším nákladům v Aetna. Firma zároveň zvýšila celoroční výhled upraveného zředěného EPS na 6,84 až 7,04 USD.
CVS Health Wednesday, Aug. 5, 2026 reported second quarter net income nearly tripled to $2.9 billion compared to the year-ago quarter as the company gets a better handle on rising costs in its Aetna health plans. In this photo is a monitor displays signage for CVS Health Corp. on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Oct. 27, 2017. Photographer: Michael Nagle/Bloomberg
CVS Health Wednesday reported second quarter net income nearly tripled to $2.9 billion compared to the year-ago quarter as the company gets a better handle on rising costs in its Aetna health plans.
CVS, which owns the nation’s third-largest health insurance company in Aetna, said the company’s medical benefits ratio, which is the percentage of health plan premium spent on medical care, decreased to 87.4% compared to 89.9% in the year-ago period.
The financial performance convinced CVS executives to raise its diluted earnings per share guidance range to “$6.84 to $7.04 from $6.24 to $6.44” for the full year 2026, the company said. It’s the second consecutive quarter CVS has made such a move as chief executive officer David Joyner continues to turn the diversified healthcare giant around since he was promoted into the top job nearly two years ago.
“As our businesses work together to deliver a technology-powered care engagement experience, we continue to deliver strong performance,” Joyner said in a statement accompanying the quarterly earnings report. “We uniquely enable what our customers want the most: simple, connected and convenient access to affordable, quality healthcare, where, when, and how they want it.”
CVS said the drop in the medical benefits ratio, was “primarily driven by improved underlying performance in the government business and the absence of the premium deficiency reserve recorded in the prior year.”
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Like other health insurers, CVS’ Aetna unit has been battling the rising medical expenses of its health plan members, particular among older adults covered by the company’s Medicare Advantage plans. In the third quarter of 2024, just before Joyner took over as CEO, the company’s medical benefit ratio was more than 95% largely driven by costs of enrollees in Medicare Advantage plans. Such plans contract with the federal government to provide health benefits available in traditional Medicare plus extra benefits and services to seniors including drug coverage, wellness programs and other coverage.
The industry and its analysts would prefer medical benefit ratios to be below 90% and into the mid 80s, where the industry was more than two years ago. Thus, CVS appears to have arrived as the company’s medical membership as of June 30, 2026 sat at 26 million health plan members and “remained consistent compared with March 31, 2026,” the company said.
Despite CVS’ decision last year to exit the individual health insurance business under the Affordable Care Act, also known as Obamacare, the company still grew its health care benefits segment. Total revenues in the company’s health care benefits segment grew 3.5% to $37.5 billion “driven by an increase in the government business, partially offset by a decline as a result of the company’s exit of the individual exchange business in 2026.”
The improvement helped CVS net income jump to $2.98 billion, or $2.31 per share, compared to $1.02 billion, or 80 cents per share, in the year-ago quarter. Meanwhile, second quarter total revenue grew more than 7% total revenues to $106 billion “driven by revenue growth across all operating segments.”
CVS also owns the nation’s largest drugstore chain with about 9,000 pharmacies and nearly 1,000 retail clinics and one of the nation’s largest pharmacy benefit management companies.
In the company’s health services segment, which includes the Caremark pharmacy benefit management company, total revenues increased 11.5% to $51.8 billion in the second quarter compared to the year-ago period “primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.”
And in the company’s pharmacy and consumer wellness segment,” CVS said total revenues “increased slightly” for the second quarter to $33.8 billion “primarily driven by pharmacy drug mix, increased prescription volume, including contributions from the company’s Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation.”
“These increases were largely offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure,” CVS said in its earnings report.
Royalty Pharma ve 2. čtvrtletí zvýšila Portfolio Receipts o 6 % na 773 milionů USD a Royalty Receipts o 14 % na 768 milionů USD. Zároveň zvýšila celoroční výhled na rok 2026 na 3,4 až 3,5 miliardy USD.
Portfolio Receipts growth of 6% to $773 million; Royalty Receipts growth of 14%Net cash provided by operating activities of $728 millionRaised full year 2026 guidance: Portfolio Receipts expected to be $3,400 million to $3,500 million NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the second quarter of 2026 and raised full year 2026 guidance for Portfolio Receipts.
“Royalty Pharma delivered strong second quarter results with Royalty Receipts growth of 14%,” said Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board. “Our transaction pipeline remains exciting and we continued to bolster our development-stage pipeline in recent months, bringing total Capital Deployment to over $1 billion so far in 2026. Following our acquisition of a royalty on AstraZeneca’s cliramitug, our development-stage pipeline now totals 19 potential therapies. Lastly, our strong financial performance has allowed us to raise our top-line guidance for the second time this year, driven by the strength of our diversified portfolio. The fundamental tailwinds supporting our business are compelling and we remain well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.”
Double-digit growth in Royalty Receipts in the second quarter of 2026
Royalty Receipts grew 14% to $768 million, driven by Tremfya, Voranigo, Imdelltra and Evrysdi.Portfolio Receipts increased by 6% to $773 million, reflecting lower milestones and other contractual receipts. Strong transaction activity
Acquired royalty on AstraZeneca’s cliramitug for transthyretin amyloidosis with cardiomyopathy in July 2026.Announced value of transactions of $1.7 billion and Capital Deployment of $1.1 billion as of August 4, 2026. Positive portfolio updates
Revolution Medicines’ NDA for daraxonrasib in pancreatic cancer accepted for review by FDA and the EMA has started its accelerated review; Gilead’s Trodelvy received FDA and EC approval for first-line metastatic triple-negative breast cancer; GSK’s Jideytro received FDA approval for ROS1+ non-small cell lung cancer; Amgen’s Imdelltra received EC approval for small cell lung cancer.GSK completed the acquisition of Nuvalent (Jideytro and neladalkib for lung cancer); Teva completed the acquisition of Emalex Biosciences (ecopipam for Tourette syndrome). Raising financial guidance for full year 2026 (excludes contribution from future transactions)
Royalty Pharma now expects 2026 Portfolio Receipts to be between $3,400 million and $3,500 million (previously $3,325 million to $3,450 million), representing expected Royalty Receipts growth of 7% to 10%. Financial & Liquidity Summary
Three Months Ended June 30,($ and shares in millions; unaudited)20262025ChangePortfolio Receipts7732025ChangeNet cash provided by operating activities7287276%Adjusted EBITDA (non-GAAP)*736364100%Portfolio Cash Flow (non-GAAP)*73663316%Weighted average Class A ordinary shares outstanding - diluted55764115% *See “Liquidity and Capital Resources” section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with the credit agreement.
2026 Financial Outlook
Royalty Pharma has provided guidance for full year 2026, excluding new transactions and borrowings announced after the date of this release, as follows:
Provided August 5, 2026PreviousPortfolio Receipts$3,400 million to $3,500 million$3,325 million to $3,450 millionPayments for operating and professional costs5.5% to 6.5% of Portfolio Receipts5.5% to 6.5% of Portfolio ReceiptsInterest paid$350 million to $360 million$350 million to $360 million
Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. The above Portfolio Receipts guidance provided on August 5, 2026 includes expected Royalty Receipts growth of 7% to 10% in 2026.
Royalty Pharma’s full year 2026 guidance reflects an estimated foreign exchange impact of approximately +1% to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2026.
Payments for operating and professional costs in 2026 are expected to decrease as a percentage of Portfolio Receipts, compared to 8.9% in 2025, primarily due to extinguishment of the management fee following the completion of the internalization transaction on May 16, 2025.
Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes and the quarterly interest payment schedules for the term loan assumed as part of the internalization transaction and borrowings under our revolving credit facility. In 2026, Royalty Pharma anticipates interest paid to be approximately $350 million to $360 million. Interest paid in the third quarter of 2026 is anticipated to be approximately $175 million, with a de minimis amount anticipated in the fourth quarter of 2026. These projections reflect repayment of the $380 million term loan in July 2026 and assume no additional debt financing in 2026. In the second quarter of 2026, Royalty Pharma collected interest of $5 million on its cash and cash equivalents, which partially offset interest paid.
Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release.
Portfolio Receipts Highlights Three Months Ended June 30,($ in millions; unaudited)20262025ChangeProducts:Marketers:Therapeutic Area: Cystic fibrosis franchiseVertexRare disease1941940%TysabriBiogenNeuroscience675619%TrelegyGSKRespiratory58573%TremfyaJohnson & JohnsonImmunology573753%EvrysdiRocheRare disease473342%VoranigoServierOncology462672%XtandiPfizer, AstellasOncology44426%ImbruvicaAbbVie, Johnson & JohnsonOncology3644(16)%Cabometyx/CometriqExelixis, Ipsen, TakedaOncology232012%ImdelltraAmgenOncology17—n/aTrodelvyGileadOncology141036%SpinrazaBiogenRare disease1112(11)%AmvuttraAlnylamRare disease9—n/aPromactaNovartisHematology833(75)%Other products(5)13910928%Royalty Receipts76867214%Milestones and other contractual receipts556(91)%Portfolio Receipts7737276% Amounts shown in the table may not add due to rounding.
Royalty Receipts was $768 million in the second quarter of 2026, an increase of 14% compared to $672 million in the second quarter of 2025. The increase was primarily driven by Tremfya, Voranigo, Imdelltra and Evrysdi, partially offset by declines from Promacta due to U.S. generic competition and from Imbruvica. Royalty Receipts from Evrysdi included the benefit of the additional royalties acquired in December 2025.
Portfolio Receipts was $773 million in the second quarter of 2026, an increase of 6% compared to $727 million in the second quarter of 2025, primarily driven by the same Royalty Receipts increases noted above, partially offset by lower Milestones and other contractual receipts due to a one-time distribution received in the prior year period.
Liquidity and Capital Resources
Royalty Pharma’s liquidity and capital resources are summarized below:
As of June 30, 2026, Royalty Pharma had cash and cash equivalents of $812 million and total debt with principal value of $9.2 billion. In July 2026, Royalty Pharma repaid the $380 million term loan upon maturity.
In the second quarter of 2026, Royalty Pharma paid a quarterly dividend of $0.235 per share, equating to $135 million in dividends and distributions.
Royalty Pharma repurchased approximately 0.9 million Class A ordinary shares for $45 million in the second quarter and two million Class A ordinary shares for $96 million for the first six months of 2026. The weighted-average number of diluted Class A ordinary shares outstanding for the second quarter of 2026 was 557 million, a decline of 1% as compared to 562 million for the second quarter of 2025.
Liquidity Summary
Three Months Ended June 30,($ in millions; unaudited)20262025Portfolio Receipts773727Payments for operating and professional costs(37)(94)Adjusted EBITDA (non-GAAP)736633Interest (paid)/received, net(0)8Portfolio Cash Flow (non-GAAP)736641 Amounts may not add due to rounding.
Adjusted EBITDA (non-GAAP) was $736 million in the second quarter of 2026. Payments for operating and professional costs were 4.8% of Portfolio Receipts. Adjusted EBITDA is calculated as Portfolio Receipts minus payments for operating and professional costs.Portfolio Cash Flow (non-GAAP) was $736 million in the second quarter of 2026. Portfolio Cash Flow is calculated as Adjusted EBITDA minus interest paid or received, net. This measure reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases, or utilized for other discretionary investments. Refer to Table 4 for Royalty Pharma’s reconciliation of each non-GAAP measure to the most directly comparable GAAP financial measure, net cash provided by operating activities.
Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital Deployment was $349 million in the second quarter of 2026, consisting primarily of royalty funding for daraxonrasib and R&D funding for JNJ‑4804 and litifilimab.
The table below details Capital Deployment by category:
Capital Deployment
Three Months Ended June 30,Six Months Ended June 30,($ in millions; unaudited)2026202520262025Purchases of available for sale debt securities—(75)—(75)Acquisitions of financial royalty assets(251)(1)(703)(2)Development-stage funding payments(98)(301)(123)(351)Milestone payments—(219)(50)(269)Contributions from legacy non-controlling interests - R&D—0—0Capital Deployment(349)(595)(877)(696) Amounts may not add due to rounding.
Royalty Transactions
As of August 4, 2026, Royalty Pharma has announced new transactions of up to $1.7 billion, which reflects the entire amount of potential capital committed for new transactions, including potential future milestones.
In July 2026, Royalty Pharma acquired a portion of Neurimmune AG’s royalty interest in AstraZeneca’s cliramitug for up to $425 million, including $125 million upfront. Cliramitug is a Phase 3 first-in-class transthyretin (TTR)-fibril-depleting antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy, a progressive, degenerative and fatal disease caused by misfolded proteins that accumulate in the heart. The information in this section should be read together with Royalty Pharma’s reports and documents filed with the SEC at www.sec.gov and the reader is also encouraged to review all other press releases and information available in the Investors section of Royalty Pharma’s website at www.royaltypharma.com.
Key Developments Relating to the Portfolio
The key developments related to Royalty Pharma’s royalty interests are discussed below based on disclosures from the marketers of the products.
daraxonrasibIn July 2026, Revolution Medicines announced that the U.S. Food and Drug Administration (FDA) accepted for review the company’s New Drug Application (NDA) for daraxonrasib, an oral RAS(ON) multi-selective inhibitor, for previously treated metastatic pancreatic ductal adenocarcinoma. In July 2026, Revolution Medicines announced that the European Medicines Agency (EMA) started an accelerated assessment of daraxonrasib.
In April 2026, Revolution Medicines announced positive Phase 3 results from the RASolute-302 trial evaluating daraxonrasib in patients with previously treated metastatic pancreatic cancer.
Jideytro (zidesamtinib) and neladalkib In July 2026, GSK announced that the FDA approved Jideytro (zidesamtinib), a ROS proto-oncogene 1 (ROS1)-selective inhibitor, for the treatment of adult patients with locally advanced or metastatic ROS1-positive non-small cell lung cancer who have received a prior ROS1 kinase inhibitor.In July 2026, GSK announced that it completed the acquisition of Nuvalent for approximately $10.6 billion, including Jideytro (zidesamtinib) and neladalkib, two highly selective ROS1 and anaplastic lymphoma kinase inhibitors for the treatment of non-small cell lung cancer.
In May 2026, Nuvalent announced the FDA accepted its NDA for neladalkib for filing and granted the application Priority Review with a Prescription Drug User Fee Act (PDUFA) date of November 27, 2026.
TEV-’408In July 2026, Teva Pharmaceuticals (Teva) announced plans to advance TEV-’408 into a Phase 2b study in patients with non-segmental vitiligo, following positive Phase 1b results.deucrictibantIn July 2026, Pharvaris announced that the FDA accepted its NDA for deucrictibant immediate-release for the on-demand treatment of hereditary angioedema attacks and assigned a PDUFA date of April 23, 2027.Trodelvy In June 2026, Gilead announced that the FDA approved Trodelvy for the first-line treatment of certain patients with metastatic triple-negative breast cancer.In June 2026, Gilead announced that the European Commission (EC) approved Trodelvy as a first-line treatment for certain patients with metastatic triple-negative breast cancer who are not candidates for PD-L1 inhibitors.
In June 2026, Gilead announced the discontinuation of the Phase 3 KEYNOTE-D46/EVOKE-03 study evaluating Trodelvy in combination with Keytruda for patients with previously untreated metastatic non-small cell lung cancer.
ecopipamIn June 2026, Teva announced the completion of its acquisition of Emalex Biosciences for up to $900 million, including $700 million at closing, which added ecopipam and other neuroscience therapies to its portfolio. Furthermore, Teva announced the submission of an NDA to the FDA for ecopipam for the treatment of pediatric Tourette syndrome.ImdelltraIn June 2026, the EC approved Imdelltra for the treatment of adult patients with extensive-stage small cell lung cancer.ErleadaIn May 2026, Johnson & Johnson announced that the Phase 3 PROTEUS study evaluating Erleada in combination with androgen deprivation therapy before and after radical prostatectomy, in patients with high-risk localized or locally advanced prostate cancer, met its primary endpoints.obexelimabIn May 2026, Zenas BioPharma announced the submission of a Biologics License Application (BLA) to the FDA for obexelimab for the treatment of Immunoglobulin G4-related disease.TremfyaIn May 2026, Johnson & Johnson announced that the FDA approved a supplemental BLA for Tremfya to include the inhibition of progression of structural joint damage in adults with active psoriatic arthritis.TEV-’749In May 2026, Teva announced that the EMA accepted for review its Marketing Authorization Application for TEV-’749 for the treatment of schizophrenia in adults.MyqorzoIn May 2026, Cytokinetics announced positive topline results from ACACIA-HCM, the pivotal Phase 3 clinical trial of Myqorzo in patients with non-obstructive hypertrophic cardiomyopathy. The study met both dual primary endpoints, demonstrating statistically significant improvements from baseline to week 36 versus placebo.ZiiheraIn April 2026, Jazz Pharmaceuticals announced that the FDA accepted for filing a supplemental BLA for Ziihera, in combination regimens for the first-line treatment of adult patients with human epidermal growth factor receptor 2 (HER2)-positive metastatic gastroesophageal adenocarcinoma, and granted Priority Review, with a PDUFA date of August 25, 2026.
Financial Results Call
Royalty Pharma will host a conference call and simultaneous webcast to discuss its second quarter of 2026 results today at 8:00 a.m., Eastern Time. Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company’s website for at least 30 days.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 19 development-stage product candidates.
Forward-Looking Statements
The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof.
This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth and plans for capital deployment, plus the benefits of the internalization transaction, including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law.
Certain information contained in this document relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company’s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date of this document, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this document involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been verified by any independent source.
For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov.
Portfolio Receipts
Portfolio Receipts is a key performance metric that represents Royalty Pharma’s ability to generate cash from Royalty Pharma’s portfolio investments, the primary source of capital that is deployed to make new portfolio investments. Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. Royalty Receipts includes variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are attributed to Royalty Pharma.
Milestones and other contractual receipts include sales-based or regulatory milestone payments and other fixed contractual receipts, net of contractual payments to legacy non-controlling interests, that are attributed to Royalty Pharma. Portfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not include proceeds from equity securities or proceeds from purchases and sales of marketable securities, both of which are not central to Royalty Pharma’s fundamental business strategy. 2025 Portfolio Receipts does not include the $511 million of proceeds from the sale of the MorphoSys Development Funding Bonds, as the transaction was treated as an asset sale.
Portfolio Receipts is calculated as the sum of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less Distributions to legacy non-controlling interests - Portfolio Receipts, which represent contractual distributions of Royalty Receipts, milestones and other contractual receipts to the Legacy Investors Partnerships.
Use of Non-GAAP Measures
Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP. Management believes that Adjusted EBITDA and Portfolio Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under GAAP.
The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty Pharma’s liquidity.
Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments, dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit committee and investors evaluate the company’s ability to generate liquidity from operating activities.
The company has provided reconciliations of these non-GAAP liquidity measures to the most directly comparable GAAP financial measure, being net cash provided by operating activities in Table 4.
Royalty Pharma Investor Relations and Communications
Royalty Pharma plcCondensed Consolidated Statements of Operations(7)(unaudited)Table 1 Three Months Ended June 30,($ in millions)20262025Income and other revenues Income from financial royalty assets638550Other royalty income and revenues3628Total income and other revenues674579Operating expense/(income) Provision for changes in expected cash flows from financial royalty assets268(204)Provision for credit losses on unfunded commitments1393Research and development funding expense98301General and administrative expenses (includes 107 and 91 of share-based compensation expense for the three months ended June 30, 2026 and 2025, respectively)162180Total operating expense, net541369Operating income133210Other (income)/expense Equity in earnings of equity method investees(4)(3)Interest expense9469Other (income)/expense, net(38)51Total other expense, net52117Consolidated net income before tax8193Income tax expense——Consolidated net income8193Net income attributable to non-controlling interests6460Net income attributable to Royalty Pharma plc1832 Amounts may not add due to rounding.
Royalty Pharma plcSelected Balance Sheet Data (unaudited)Table 2 ($ in millions)As of June 30, 2026As of December 31, 2025Cash and cash equivalents812619Total current and non-current financial royalty assets, net17,08217,063Total assets19,82019,621Current portion of long-term debt380380Long-term debt, net of current portion8,5828,571Total liabilities10,0349,906Total shareholders’ equity9,7869,715 Royalty Pharma plcCondensed Consolidated Statements of Cash Flows (unaudited)Table 3 Three Months Ended June 30,Six Months Ended June 30,($ in millions)2026202520262025Cash flows from operating activities: Cash collections from financial royalty assets8157271,7301,556Cash collections from intangible royalty assets0040Other royalty cash collections32246656Distributions from equity method investees21—2513Interest received591121Development-stage funding payments(98)(301)(123)(351)Payments for operating and professional costs(37)(94)(73)(196)Payments for Employee EPAs(5)(0)(14)(0)Interest paid(5)(1)(179)(140)Net cash provided by operating activities7283641,447960Cash flows from investing activities: Acquisition of businesses, net of cash acquired—(74)—(74)Distributions from equity method investees(13)632999Purchases of equity securities(5)—(28)(4)Proceeds from equity securities36—36—Purchases of available for sale debt securities—(75)—(75)Proceeds from available for sale debt securities43915Proceeds from sales of available for sale debt securities———511Acquisitions of financial royalty assets(251)(1)(703)(2)Milestone payments—(219)(50)(269)Other(0)(9)(0)(9)Net cash (used in)/provided by investing activities(230)(312)(708)192Cash flows from financing activities: Distributions to legacy non-controlling interests - Portfolio Receipts(86)(89)(164)(174)Distributions to continuing non-controlling interests(35)(39)(74)(92)Dividends to shareholders(105)(93)(209)(189)Repurchases of Class A ordinary shares(45)(292)(95)(1,000)Contributions from legacy non-controlling interests - R&D—0—0Contributions from non-controlling interests - other—5—6Debt issuance costs and other(2)—(2)—Other(0)—(1)—Net cash used in financing activities(273)(508)(546)(1,449)Net change in cash and cash equivalents226(456)193(297)Cash and cash equivalents, beginning of period5861,088619929Cash and cash equivalents, end of period812632812632 EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma plcGAAP to Non-GAAP Reconciliation (unaudited)Table 4 Three Months Ended June 30,($ in millions)20262025Net cash provided by operating activities (GAAP)728364Adjustments: Proceeds from available for sale debt securities(6)43Distributions from equity method investees(6)(13)63Interest paid/(received), net(6)0(8)Development-stage funding payments98301Distributions to legacy non-controlling interests - Portfolio Receipts(6)(86)(89)Payments for Employee EPAs50Adjusted EBITDA (non-GAAP)736633Interest (paid)/received, net(6)(0)8Portfolio Cash Flow (non-GAAP)736641 EPAs: Equity Performance Awards. Amounts may not add due to rounding.
Royalty Pharma plc
Description of Approved Indications for Select Portfolio Therapies
Table 5
Cystic fibrosis franchiseCystic fibrosisTysabriRelapsing forms of multiple sclerosisTrelegyChronic obstructive pulmonary disease and asthmaTremfyaPlaque psoriasis, psoriatic arthritis, ulcerative colitis and Crohn’s diseaseEvrysdiSpinal muscular atrophyVoranigoLow-grade gliomaXtandiProstate cancerImbruvicaHematological malignancies and chronic graft versus host diseaseCabometyx/CometriqKidney, liver and thyroid cancerImdelltraSmall cell lung cancerTrodelvyBreast cancerSpinrazaSpinal muscular atrophyAmvuttraTransthyretin amyloidosisPromactaChronic immune thrombocytopenia purpura and aplastic anemia
Notes
(1) Portfolio Receipts is defined above in the section entitled “Portfolio Receipts.”
(2) Adjusted EBITDA is defined under the credit agreement as Portfolio Receipts minus payments for operating and professional costs. Operating and professional costs reflect Payments for operating and professional costs from the GAAP condensed consolidated statements of cash flows. See GAAP to Non-GAAP reconciliation in Table 4.
(3) Portfolio Cash Flow is defined under the credit agreement as Adjusted EBITDA minus interest paid or received, net. See GAAP to Non-GAAP reconciliation in Table 4. Portfolio Cash Flow reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases or utilized for other discretionary investments.
(4) Capital Deployment is calculated as the summation of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Investments in equity method investees, Purchases of available for sale debt securities, Acquisitions of financial royalty assets, Acquisitions of other financial assets, Milestone payments, Development-stage funding payments less Contributions from legacy non-controlling interests - R&D.
(5) Other products primarily include Royalty Receipts on the following products: Crysvita, Erleada, Farxiga/Onglyza, Nesina, Niktimvo, Nurtec ODT, Orladeyo, Prevymis and distributions from the Legacy SLP Interest, which is presented as Distributions from equity method investees on the GAAP condensed consolidated statements of cash flows.
(6) The table below shows the line item for each adjustment and the direct location for such line item on the GAAP condensed consolidated statements of cash flows.
Reconciling AdjustmentStatements of Cash Flows ClassificationInterest (paid)/received, netOperating activities (Interest paid less Interest received)Distributions from equity method investeesInvesting activitiesProceeds from available for sale debt securitiesInvesting activitiesDistributions to legacy non-controlling interests - Portfolio ReceiptsFinancing activities (7) The condensed consolidated statement of operations for 2025 has been recast to reflect the adoption of ASU 2025-07 by removing the losses previously recognized on derivative.
Robinhood ve 2. čtvrtletí zvýšil tržby o 32 % na 1,3 miliardy USD, ale tržby z kryptoměn klesly o 38 % na 100 milionů USD. Akcie po růstu o více než 45 % od 52týdenního minima stále jsou draze oceněné.
Robinhood Markets (HOOD +3.51%) operates an investing platform where clients can buy and sell stocks, options, futures, cryptocurrency, and event contracts in the prediction markets. Its stock was trading at a 52-week low of $63 in March, a 57% decline from last year's record high of $154.
The sell-off was driven by weakness in Robinhood's options and crypto trading businesses, which combine to make up the bulk of its transaction-based revenue. While options activity recovered slightly during the second quarter of 2026, the crypto business remained subdued.
Robinhood stock has climbed more than 45% from its 52-week low, but here's why I'm predicting another sell-off during the next few months.
Image source: The Motley Fool.
Robinhood's clients engage in very risky behavior Robinhood generated $1.3 billion in revenue during the 2026 second quarter, an impressive 32% increase from the year-ago period. Transaction-based revenue accounted for $776 million of that total, while net interest income contributed $389 million.
Transaction-based revenue is the money Robinhood earns from its core business, which involves processing trades on behalf of its clients. Options trading was the largest contributor at $342 million, a 29% increase from the year-ago period. Crypto trading revenue, however, plummeted by 38% to just $100 million. That isn't a surprise, given that major coins including Bitcoin and Ethereum are down sharply from their all-time highs, which has kept many investors on the sidelines.
Robinhood also earned $156 million from processing trades in the prediction markets, which clients use to make bets on everything from politics to sports. Like options and crypto markets, prediction markets are extremely risky, and that brings me to a very important point.
Today's Change
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93.51
During the second quarter of 2021, which was near the height of the pandemic-related frenzy in the financial markets, Robinhood earned a whopping 88% of its transaction-based revenue from options and crypto trading alone. But just one year later, its options revenue was down 31%, while its crypto revenue had plummeted by 75%.
Most investors who engage in highly speculative trading in options, crypto, and prediction markets lose money in the long run, which is terrible for Robinhood's customer retention. In fact, in the company's latest quarterly filing with the Securities and Exchange Commission, it cites speculative "meme" trading as one of the key reasons its revenue fluctuates so erratically.
Transaction-based revenue from areas such as stock investing is more sustainable because buying a slice of a company isn't an all-or-nothing bet, which means clients are likely to stick around for much longer. However, this currently makes up just 17% of Robinhood's total transaction-based revenue.
Image source: Robinhood Markets.
Unfortunately, the composition of Robinhood's revenue leaves the company vulnerable to more volatility in its financial results. When the company's transaction-based revenue fell sharply after 2021, its stock suffered a decline of more than 90%, and there is a risk that history will repeat if it doesn't diversify away from risky areas such as options and event contracts.
Robinhood's lofty valuation opens the door to downside for shareholders When Robinhood stock set a new record high last October, its price-to-sales (P/S) ratio was more than 30, almost triple its long-term average of 11.9. That valuation wasn't sustainable, but even though the stock has since declined, its P/S ratio remains at an elevated level of 16.5.
HOOD PS Ratio data by YCharts
That implies Robinhood stock would have to decline by roughly 30% or more just to trade in line with its average P/S ratio of 11.9. However, it might have even more downside potential if there is a decline in the company's transaction revenue, which is a possibility if history is any guide. Lower revenue in the future would mean Robinhood stock might be even more expensive than it currently appears at face value.
A sharp decline in the stock market, rising interest rates, or a deterioration in the broader economy could reduce the disposable incomes of many retail investors who engage in highly speculative trading, thus resulting in lower transaction revenue for Robinhood. All three factors were prevalent last time the company's revenue plummeted in 2022.
Simply put, I think Robinhood's elevated valuation leaves very little room for further upside in its stock, especially considering its largest sources of revenue are on such shaky foundations.
Provozovatel e-commerce platformy Shopify zveřejnil hospodářské výsledky za druhé čtvrtletí roku 2026. Výnosy překonaly průměrný odhad analytiků, taženy silným růstem segmentu Merchant Solutions i hrubého objemu zboží (GMV) zpracovaného přes platformu.
Výsledky společnosti Shopify (SHOP) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Výnosy (mld. USD) 3,58 3,45 2,68 Čistý zisk (mld. USD) 1,50 -- 0,91 Očištěný zisk na akcii (EPS, USD/akcie) 0,42 0,41 0,35 Výsledky za čtvrtletí Výnosy meziročně vzrostly o 34 % na 3,58 mld. USD, nad odhadem 3,45 mld. USD.
Výnosy ze segmentu Merchant Solutions dosáhly 2,78 mld. USD, meziročně +37 %, nad odhadem 2,66 mld. USD. Výnosy ze segmentu Subscription Solutions dosáhly 802 mil. USD, meziročně +22 %, nad odhadem 790 mil. USD.
Měsíční opakující se výnosy (MRR) dosáhly 221 mil. USD, meziročně +19 %, nad odhadem 219,1 mil. USD.
Hrubý objem zboží (GMV) vzrostl o 32 % na 115,57 mld. USD, nad odhadem 112,12 mld. USD. Hrubý objem plateb (GPV) dosáhl ve čtvrtletí 78 mld. USD.
Provozní zisk vzrostl o 68 % na 488 mil. USD, nad odhadem 422 mil. USD. Celkové provozní náklady dosáhly 1,22 mld. USD, meziročně +21 %, v souladu s odhadem 1,22 mld. USD. Očištěné provozní náklady činily 1,09 mld. USD, mírně nad odhadem 1,08 mld. USD.
Výhled na 3Q 2026 Společnost pro třetí čtvrtletí roku 2026 očekává:
Růst výnosů meziročně v pásmu nízkých třiceti procent. Růst hrubého zisku (v dolarovém vyjádření) meziročně v pásmu středních až vysokých dvaceti procent. Provozní náklady na úrovni 33 až 34 % výnosů. Náklady na akciové odměny ve výši 150 mil. USD. Marži volného hotovostního toku v pásmu vysokých teens až nízkých dvaceti procent. Komentář vedení Harley Finkelstein, prezident Shopify, uvedl: „Bylo to famózní čtvrtletí: růst přes 30 % u GMV, výnosů, hrubého zisku i volného hotovostního toku zároveň. Poháníme každý typ podnikání, a s AI rozšiřujeme možnosti pro všechny z nich. Nikdo jiný se nám v tomto ohledu nepřibližuje.“
Jeff Hoffmeister, finanční ředitel Shopify, dodal: „Růst GMV zrychlil i navzdory už tak silnému loňskému druhému čtvrtletí, se solidními výsledky napříč všemi velikostmi obchodníků, kanály i regiony. Spolu s tímto momentem nadále zvyšujeme provozní páku, což se projevilo na 18% marži volného hotovostního toku. Široce založený, konzistentní a kumulativní růst spojený s finanční disciplínou – přesně to je model, který budujeme.“
Návrat kapitálu akcionářům Společnost během čtvrtletí odkoupila vlastní akcie v celkové hodnotě 1,42 mld. USD.
Akcie Shopify Akcie Shopify (SHOP) v předburzovní fázi obchodování rostou o 22,64 % na 151,21 USD.
Akcie Shopify Inc (SHOP) včera vzrostly o 5,4 % na 123,3 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 160,0 P/E 111,4 Vývoj za letošní rok (%) -23,4 Očekávané P/E 66,7 52týdenní minimum (USD) 94,0 Prům. cílová cena (USD) 150,1 52týdenní maximum (USD) 182,2 Dividendový výnos (%) -- Zdroj: Shopify, Bloomberg
LP Building Solutions potvrdila celoroční výhled pro Siding a čeká návrat k růstu tržeb i objemu ve 3. čtvrtletí 2026. Ve 2. čtvrtletí čistý zisk klesl na 26 mil. USD a tržby Sidingu spadly o 4 % na 441 mil. USD.
NASHVILLE, Tenn.--(BUSINESS WIRE)--Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading manufacturer of high-performance building products, today reported its financial results for the three and six months ended June 30, 2026.
“We executed our strategy, and Siding delivered revenue within our guided range despite margin pressure from raw material inflation. We anticipate Siding returning to volume and revenue growth in the third quarter.” –LP CEO Jason Ringblom
Share Second Quarter 2026 Summary, Compared to Second Quarter 2025
LP reaffirms Siding full-year guidance, anticipates Siding year-over-year growth in the third quarter of 2026 Siding net sales decreased by $19 million, or 4%, to $441 million Oriented Strand Board (OSB) net sales decreased by $68 million to $182 million Net income was $26 million, a decrease of $27 million Net income per diluted share was $0.38 per diluted share, a decrease of $0.39 per diluted share Adjusted EBITDA(1) was $79 million, a decrease of $63 million Adjusted Diluted EPS(1) was $0.40 per diluted share, a decrease of $0.67 per diluted share Cash provided by operating activities was $140 million Capital Allocation Update
Invested $59 million in capital expenditures during the second quarter of 2026 Paid $21 million in cash dividends during the second quarter of 2026 As previously announced on July 31, 2026, LP's Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on August 28, 2026, to stockholders of record on August 14, 2026. Total liquidity of approximately $1 billion as of June 30, 2026 “We executed our strategy, and Siding delivered revenue within our guided range despite margin pressure from raw material inflation,” said LP CEO Jason Ringblom. “We anticipate Siding returning to volume and revenue growth in the third quarter.”
Outlook
LP is providing financial guidance for the third quarter of 2026 and full year 2026 as set forth in the table below. Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under “Forward-Looking Statements.”
Third Quarter 2026
Full Year 2026
Siding Net Sales Year-Over-Year Growth
$460-470 million (~5% growth)
$1.65-1.67 billion (~1% decline)
Siding Adjusted EBITDA(2)
$110-120 million (~25% margin(2)(3))
$410-425 million (25-26% margin(2)(3))
OSB Adjusted EBITDA(2)(4)
$(45) million
$(120) million
Consolidated Adjusted EBITDA(2)(4)(5)
$50-60 million
$255-270 million
Capital Expenditures(6)
~$320 million
Second Quarter 2026 Highlights
Net sales for the second quarter of 2026 fell year over year by $90 million to $664 million. Siding revenue decreased by $19 million, or 4%, due to 11% lower volumes, partially offset by 7% higher prices. OSB revenue decreased by $68 million, driven by a decline in both prices and sales volumes.
Net income for the second quarter of 2026 decreased year over year by $27 million to $26 million ($0.38 per diluted share). The decline primarily reflects a $63 million decrease in Adjusted EBITDA, partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $12 million related to the reduction in tax provision, and a $8 million decrease in foreign currency loss. The year-over-year decrease in Adjusted EBITDA primarily reflects a $35 million impact from lower OSB prices, a $24 million impact from lower Siding volumes, an $11 million impact from lower OSB volumes, a $12 million impact from inflationary costs, and a $5 million impact from lower selling prices in South America. These decreases were partially offset by a $27 million benefit from higher Siding selling prices.
First Six Months of 2026 Highlights
Net sales for the first six months of 2026 decreased year over year by $240 million to $1.2 billion. Siding revenue decreased by $61 million, or 7%, due to 14% lower volumes, partially offset by 8% higher prices. OSB revenue decreased by $167 million, driven by lower prices and sales volumes.
Net income for the first six months of 2026 decreased year over year by $91 million to $53 million ($0.76 per diluted share). The decrease primarily reflects a $143 million decrease in Adjusted EBITDA, which was partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $28 million related to the reduction in tax provision, and an $16 million decrease in foreign currency loss. The year-over-year decline in Adjusted EBITDA was driven by a $101 million impact from lower OSB prices, along with additional headwinds of $59 million from lower Siding volumes, $21 million from lower OSB volumes, and $13 million from lower selling prices in South America. These decreases were partially offset by a $54 million benefit from higher Siding selling prices.
Segment Results
Siding
The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia. Our Siding is offered primed (LP® SmartSide® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®) and prefinished (LP® SmartSide® ExpertFinish® Trim & Siding) to meet the needs of builders and installers in new construction and repair and remodeling applications.
Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
% Change
2026
2025
% Change
Net sales
$
441
$
460
(4
)%
$
801
$
862
(7
)%
Adjusted EBITDA
113
125
(9
)%
214
230
(7
)%
Percent changes in average net sales prices and unit shipments in Siding for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows:
Three Months Ended June 30,
2026 versus 2025
Six Months Ended June 30, 2026 versus
2025
Average Net
Selling Price
Unit
Shipments
Average Net
Selling Price
Unit
Shipments
Siding
7
%
(11
)%
8
%
(14
)%
Siding net sales decreased for the three and six months ended June 30, 2026 due to lower volumes, partially offset by higher prices. The increase in pricing was attributable to both the annual price increase and favorable mix.
Adjusted EBITDA declined by $12 million in the quarter and $16 million year to date compared with the same periods in 2025. Net price increases contributed $27 million in the quarter and $54 million year to date, while lower volumes reduced results by $24 million and $59 million, respectively. Raw material, freight, and labor costs also increased by $10 million in the quarter and $15 million year to date, including a $4 million impact from higher crude oil costs in the second quarter.
Oriented Strand Board (OSB)
The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP® Structural Solutions (which includes LP® FlameBlock® Fire-Rated Sheathing, LP BurnGuard® FRT OSB, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier Sheathing, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring).
Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
% Change
2026
2025
% Change
Net sales
$
182
$
250
(27
)%
$
350
$
517
(32
)%
Adjusted EBITDA
(21
)
19
(213
)%
(33
)
73
(146
)%
Percent changes in average net sales prices and unit shipments in OSB for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows:
Three Months Ended June 30,
2026 versus 2025
Six Months Ended June 30, 2026 versus
2025
Average Net
Selling Price
Unit
Shipments
Average Net
Selling Price
Unit
Shipments
OSB - Structural Solutions
(10
)%
(24
)%
(16
)%
(21
)%
OSB - Commodity
(20
)%
(1
)%
(26
)%
(7
)%
For the three and six months ended June 30, 2026, OSB net sales decreased year over year by $68 million and $167 million, respectively, primarily driven by lower OSB prices and a decline in sales volumes.
Adjusted EBITDA for the same periods decreased year over year by $40 million and $106 million, respectively, reflecting the impact of lower OSB prices and a decline in sales volumes.
Other
Other operations include LP's South American business that manufactures and distributes OSB structural panels and siding products in South America and certain export markets. Other operations also include timber and timberlands as well as other products, services, and closed operations, which do not qualify as discontinued operations. Additionally, Other includes unallocated corporate expenses.
Other net sales decreased by $3 million and $12 million, for the three and six months ended June 30, 2026, respectively, primarily due to a decline in OSB selling prices in South America. Adjusted EBITDA for the same periods decreased year over year by $12 million and $20 million, respectively, driven by a decline in South America net sales along with higher costs incurred in that market.
Conference Call
LP will hold a conference call to discuss this release today at 11 a.m. Eastern Time (8 a.m. Pacific Time). Investors will have the opportunity to listen to the conference call live by going to investor.lpcorp.com. For those who cannot listen to the live broadcast, the recorded webcast and accompanying presentation will be available to the public by going to investor.lpcorp.com and clicking “Events” under the “News & Events” header.
About LP Building Solutions
As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. LP’s extensive portfolio of innovative and dependable products includes Siding (LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®), LP® Structural Solutions (LP® FlameBlock® Fire-Rated Sheathing, LP BurnGuard® FRT OSB, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier Sheathing, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring), and LP® Oriented Strand Board. In addition to product solutions, LP provides industry-leading customer service and warranties. Since its founding in 1972, LP has been Building a Better World™ by helping customers construct beautiful, durable homes while shareholders build lasting value. Headquartered in Nashville, Tennessee, LP operates over 20 manufacturing facilities across North and South America. For more information, visit LPCorp.com.
Forward-Looking Statements
This news release contains statements concerning Louisiana-Pacific Corporation’s (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the beliefs and assumptions of, and on information currently available to, our management; assumptions upon which such forward-looking statements are based are also forward-looking statements. Forward-looking statements can be identified by words such as “may,” “will,” “could,” “should,” “believe,” “expect,” “anticipate,” “assume,” “intend,” “plan,” “seek,” “estimate,” “project,” “target,” “potential,” “continue,” “likely,” or “future,” as well as similar expressions, or the negative or other variations thereof. Forward-looking statements include other statements regarding matters that are not historical facts, including without limitation, plans for product development, forecasts of future costs and expenditures, possible outcomes of legal proceedings, capacity expansion and other growth initiatives, the adequacy of reserves for loss contingencies, and any statements regarding the Company’s financial outlook. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: changes in governmental fiscal, trade, and monetary policies, including the imposition of higher or new tariffs, trade barriers, and levels of employment; changes in general and global economic conditions, including impacts from rising inflation, supply chain disruptions, or new, ongoing, or escalated geopolitical or military conflicts or tensions; the commodity nature of a segment of our products and the prices for those products, which are determined in significant part by external factors such as total industry capacity and wider industry cycles affecting supply and demand trends; changes in the cost and availability of capital; changes in the cost and availability of financing for home mortgages; changes in the level of home construction and repair and remodel activity, including as a result of labor shortages; changes in competitive conditions and prices for our products; changes in the relationship between supply of and demand for building products; changes in the financial or business conditions of third-party wholesale distributors and dealers of building products; changes in prices and the relationship between the supply of and demand for raw materials, including wood fiber and resins, used in manufacturing our products; changes in the cost and availability of energy, primarily natural gas, electricity, and diesel fuel; changes in the cost and availability of transportation, including transportation services provided by third parties; our dependence on third-party vendors and suppliers for certain goods and services critical to our business; operational and financial impacts from manufacturing our products internationally; difficulties in the development, launch or production ramp-up of new products; our ability to attract and retain qualified executives, management and other key employees; the need to formulate and implement effective succession plans from time to time for key members of our management team; impacts from public health issues (including global pandemics) on the economy, demand for our products or our operations, including the actions and recommendations of governmental authorities to contain such public health issues; our ability to identify and successfully complete and integrate acquisitions, divestitures, joint ventures, capital investments and other corporate strategic transactions; unplanned interruptions to our manufacturing operations, such as explosions, fires, inclement weather, natural disasters, accidents, equipment failures, labor shortages or disruptions, transportation interruptions, supply interruptions, public health issues (including pandemics and quarantines), riots, civil insurrection or social unrest, looting, protests, strikes, and street demonstrations; changes in global or regional climate conditions, the impacts of climate change, and potential government policies adopted in response to such conditions; changes in other significant operating expenses; changes in currency values and exchange rates between the U.S. dollar and other currencies, particularly the Canadian dollar, Brazilian real, Chilean peso, and Argentine peso; changes in, and compliance with, general and industry-specific laws and regulations, including environmental and health and safety laws and regulations, the U.S. Foreign Corrupt Practices Act and anti-bribery laws, laws related to our international business operations, and changes in building codes and standards; changes in tax laws and interpretations thereof; changes in circumstances giving rise to environmental liabilities or expenditures; warranty costs exceeding our warranty reserves; challenges to or exploitation of our intellectual property or other proprietary information by our competitors or other third parties; the resolution of existing and future product-related litigation, environmental proceedings and remediation efforts, and other legal or environmental proceedings or matters; the effect of covenants and events of default contained in our debt instruments; the amount and timing of any repurchases of our common stock and the payment of dividends on our common stock, which will depend on market and business conditions and other considerations; cybersecurity events affecting our information technology systems or those of our third-party providers and the related costs and impact of any disruption on our business; and acts of public authorities, war, political or civil unrest, natural disasters, fire, floods, earthquakes, inclement weather, and other matters beyond our control.
For additional information about factors that could cause actual results, events, and circumstances to differ materially from those described in the forward-looking statements, please refer to LP’s filings with the Securities and Exchange Commission (SEC). We urge you to consider all of the risks, uncertainties, and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this news release. We cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made today are as of the date of this news release. Except as required by law, LP undertakes no obligation to update any such forward-looking statements to reflect new information, subsequent events, or circumstances.
Use of Non-GAAP Information
When evaluating the Company's performance on a U.S. GAAP basis, management utilizes certain non-GAAP financial measures as defined by SEC Regulation G and Regulation S-K Item 10(e). These measures exclude the impact of specific costs, expenses, gains, and losses to evaluate our overall operating performance. Management believes these non-GAAP measures provide users of the financial information with additional meaningful comparison to prior periods, as they generally exclude items that are outside of the normal course of our business or beyond management's control. It is important to note that non-GAAP financial measures do not have standardized definitions and are not defined by U.S. GAAP. In this press release, Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS (as each defined below) are non-GAAP measures that are used by management and external users of our condensed consolidated financial statements such as investors, industry analysts, and lenders.
Adjusted EBITDA is defined as net income excluding interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, loss on impairment, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, other non-operating income (expense), income from discontinued operations, net of income taxes, and net income attributed to noncontrolling interest. We have included Adjusted EBITDA in this report because we view it as an important supplemental measure of our performance and believe that it is frequently used by interested persons in the evaluation of companies that have different financing and capital structures and/or tax rates.
Adjusted Income is defined as net income, excluding loss on impairment, business exit credits and charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, pension settlement charges, income from discontinued operations, net of income taxes, net income attributed to noncontrolling interest, foreign currency gains and losses, and adjusting for a normalized tax rate. Adjusted Diluted EPS is calculated as Adjusted Income divided by diluted shares outstanding, which is a non-GAAP financial measure. We believe that Adjusted Diluted EPS and Adjusted Income are useful measures for evaluating our ability to generate earnings and that providing these measures should allow interested persons to more readily compare the earnings for past and future periods.
During the first quarter of 2026, the Company updated the definition of Adjusted Income to exclude foreign currency gains and losses. These gains and losses primarily arise from the remeasurement of all monetary assets and liabilities including intercompany notes that are denominated in a different currency than the entity's functional currency. The exclusion of these items helps management compare changes in operating results between periods that might otherwise be obscured due to currency fluctuations. The Company believes this exclusion provides investors with a clearer view of underlying operating performance by removing the effects of currency fluctuations that are largely outside of the Company's control and do not reflect its core business activities. For comparability and consistency, all prior period Adjusted Income and Adjusted Diluted EPS measures have been recast to conform to the current presentation. The impact of this update for the three and six months ended June 30, 2025, was an increase to Adjusted Income of $6 million and $9 million, respectively, and an increase to Adjusted Diluted EPS of $0.08 per share and $0.14 per share, respectively.
Reconciliations of Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS to their most directly comparable U.S. GAAP financial measures, net income and net income per share of common stock - diluted, respectively, are presented below. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the U.S. GAAP measures of net income and net income per share of common stock - diluted or for any other U.S. GAAP measures of operating performance. It should be noted that other companies may present similarly titled measures differently, and therefore, as presented by us, these measures may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS have material limitations as performance measures because they exclude items that are actually incurred or experienced in connection with the operation of our business.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net sales
$
664
$
755
$
1,239
$
1,478
Cost of sales
(549
)
(577
)
(1,008
)
(1,103
)
Gross profit
116
178
231
375
Selling, general, and administrative expenses
(80
)
(79
)
(158
)
(154
)
Loss on impairment
—
(17
)
—
(17
)
Other operating credits and charges, net
(5
)
(2
)
(7
)
(4
)
Income from operations
31
80
66
200
Interest expense
(4
)
(4
)
(8
)
(7
)
Investment income
6
4
8
8
Other non-operating (expense) income
1
(7
)
4
(12
)
Income before income taxes
34
73
70
189
Provision for income taxes
(8
)
(19
)
(17
)
(45
)
Equity in unconsolidated affiliate
—
—
—
1
Net income
$
26
$
54
$
53
$
145
Net income per share of common stock:
Basic
$
0.38
$
0.77
$
0.76
$
2.08
Diluted
$
0.38
$
0.77
$
0.76
$
2.07
Average shares of common stock used to compute net income per share:
Basic
70
70
70
70
Diluted
70
70
70
70
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(AMOUNTS IN MILLIONS)
June 30, 2026
December 31, 2025
ASSETS
Cash and cash equivalents
$
228
$
292
Receivables, net
143
127
Inventories
373
363
Prepaid expenses and other current assets
28
28
Total current assets
773
809
Property, plant, and equipment, net
1,728
1,709
Timber and timberlands
9
13
Operating lease assets, net
23
23
Goodwill and intangible assets
19
22
Investments in and advances to affiliates
18
17
Other assets
26
25
Deferred tax assets
11
8
Total assets
$
2,607
$
2,627
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities
$
240
$
285
Income tax payable
—
5
Total current liabilities
240
291
Long-term debt
348
348
Deferred income taxes
195
177
Non-current operating lease liabilities
20
22
Contingency reserves
26
26
Other long-term liabilities
33
33
Total liabilities
863
896
Stockholders’ equity:
Common stock
85
85
Additional paid-in capital
515
508
Retained earnings
1,633
1,621
Treasury stock
(386
)
(385
)
Accumulated comprehensive loss
(103
)
(98
)
Total stockholders’ equity
1,744
1,731
Total liabilities and stockholders’ equity
$
2,607
$
2,627
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(AMOUNTS IN MILLIONS)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
26
$
54
$
53
$
145
Adjustments to net income:
Depreciation and amortization
39
36
77
70
Impairment of goodwill and long-lived assets
—
17
—
17
Stock-based compensation expense
5
7
12
12
Deferred taxes
3
(4
)
17
(4
)
Foreign currency remeasurement and transaction (gains) losses
(1
)
6
(6
)
7
Other adjustments, net
6
3
1
2
Changes in assets and liabilities (net of acquisitions and divestitures):
Receivables
5
—
(12
)
(37
)
Inventories
41
19
(10
)
(18
)
Prepaid expenses and other current assets
(2
)
7
1
6
Accounts payable and accrued liabilities
12
8
(21
)
4
Income taxes payable, net of receivables
7
9
(9
)
21
Net cash provided by operating activities
140
162
102
226
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant, and equipment additions
(59
)
(68
)
(120
)
(132
)
Net cash used in investing activities
(58
)
(68
)
(120
)
(132
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of cash dividends
(21
)
(19
)
(42
)
(39
)
Purchase of stock
—
—
—
(61
)
Other financing activities
3
2
(5
)
(4
)
Net cash used in financing activities
(18
)
(17
)
(47
)
(105
)
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
1
—
1
3
Net increase (decrease) in cash, cash equivalents, and restricted cash
64
77
(63
)
(7
)
Cash, cash equivalents, and restricted cash at beginning of period
164
256
292
340
Cash, cash equivalents, and restricted cash at end of period
$
228
$
333
$
228
$
333
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
The following tables present summary data relating to: (i) housing starts within the United States, (ii) our sales volumes, and (iii) our Overall Equipment Effectiveness (OEE) performance. We consider the following items to be key performance indicators for our business because LP’s management uses these metrics to evaluate our business and trends in our industry, measure our performance, and make strategic decisions. We believe that the key performance indicators presented may provide additional perspective and insights when analyzing our core operating performance. These key performance indicators should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the financial measures that were prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). These measures may not be comparable to similarly titled performance indicators used by other companies.
We monitor housing starts, which is a leading external indicator of residential construction in the United States that correlates with the demand for many of our products. We believe that this is a useful measure for evaluating our results and that providing this measure should allow interested persons to more readily compare our sales volume for past and future periods to an external indicator of product demand. Other companies may present housing start data differently, and therefore, as presented by us, our housing start data may not be comparable to similarly titled performance indicators reported by other companies.
The following table sets forth actual housing starts data reported by the U.S. Census Bureau, as published through July 17, 2026, for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Single-Family
253
264
467
493
Multi-Family
119
111
229
200
372
375
696
692
We monitor sales volumes for our products in our Siding and OSB segments, which we define as the amount of our products sold within the applicable period measured in million square feet (MMSF) on a standard 3/8" thickness basis. Evaluating sales volume by product type helps us identify and address changes in product demand, broad market factors that may affect our performance, and opportunities for future growth. It should be noted that other companies may present sales volume data differently, and therefore, as presented by us, sales volume data may not be comparable to similarly titled measures reported by other companies. We believe that sales volumes can be a useful measure for evaluating and understanding our business.
The following table sets forth sales volumes for the three and six months ended June 30, 2026 and 2025 (in MMSF):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Siding
446
500
804
935
Total Siding sales volume
446
500
804
935
OSB - Structural Solutions
342
450
669
848
OSB - Commodity
425
430
799
856
Total OSB sales volume
768
880
1,468
1,704
We measure OEE of each of our mills to track improvements in the utilization and productivity of our manufacturing assets. OEE is a composite metric that considers asset uptime (adjusted for capital project downtime and similar events), production rates, and finished product quality. We believe that when used in conjunction with other metrics, OEE can be a useful measure for evaluating our ability to generate profits, and that providing this measure should allow interested persons to monitor operational improvements. We use a best-in-class target across all LP sites that allows us to optimize capital investments, focus on maintenance and reliability improvements, and improve overall equipment efficiency. It should be noted that other companies may present OEE data differently, and therefore, as presented by us, OEE data may not be comparable to similarly titled measures reported by other companies.
OEE for the three and six months ended June 30, 2026 and 2025 for each of our reportable segments is listed below:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Siding
85
%
83
%
84
%
81
%
OSB
80
%
79
%
79
%
78
%
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(AMOUNTS IN MILLIONS)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
NET SALES
Siding
$
441
$
460
$
801
$
862
OSB
182
250
350
517
Other
41
45
87
99
Total Sales
$
664
$
755
$
1,239
$
1,478
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA, NON-GAAP ADJUSTED INCOME, AND NON-GAAP ADJUSTED DILUTED EPS
Louisiana-Pacific vykázala za čtvrtletí zisk 0,4 USD na akcii a tržby 664 milionů USD, obojí pod odhady. Zisk byl také výrazně pod 0,99 USD před rokem.
Louisiana-Pacific (LPX - Free Report) came out with quarterly earnings of $0.4 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -31.03%. A quarter ago, it was expected that this home construction supplier would post earnings of $0.09 per share when it actually produced earnings of $0.38, delivering a surprise of +322.22%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Louisiana-Pacific, which belongs to the Zacks Building Products - Wood industry, posted revenues of $664 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.48%. This compares to year-ago revenues of $755 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.
Louisiana-Pacific shares have lost about 4.9% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Louisiana-Pacific?While Louisiana-Pacific 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 Louisiana-Pacific 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 #5 (Strong 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 $0.47 on $676.65 million in revenues for the coming quarter and $1.86 on $2.55 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the top 37% 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 broader Zacks Construction sector, Argan (AGX - Free Report) , is yet to report results for the quarter ended July 2026.
This builder of energy plants is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +7.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Argan's revenues are expected to be $297.78 million, up 25.3% from the year-ago quarter.
Second quarter net sales of $2.177 billion increased 4.8% on a reported basis, 4.7% on a constant currency1 basis and 4.0% on an organic constant currency1 basis Second quarter diluted earnings per share were $1.03, an increase of 33.8%; adjusted1 diluted earnings per share were $2.07, consistent with the prior year period Company updates full-year 2026 financial guidance , /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE: ZBH) and (SIX: ZBH) today reported financial results for the quarter ended June 30, 2026. The Company reported second quarter net sales of $2.177 billion, an increase of 4.8% over the prior year period, an increase of 4.7% on a constant currency1 basis and an increase of 4.0% on an organic constant currency1 basis. Net earnings for the second quarter were $198.3 million, or $399.6 million on an adjusted1 basis.
Diluted earnings per share were $1.03 for the second quarter, an increase of 33.8%, and adjusted1 diluted earnings per share were $2.07, consistent with the prior year period. Zimmer Biomet generated $447.9 million in operating cash flow and $308.3 million of free cash flow1 in the second quarter.
1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.
"We delivered strong second quarter results with solid top- and bottom-line performance and continued progress on our key growth drivers and commercial transformation," said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet. "With a strong first half, healthy underlying markets, go-to-market changes progressing as planned and continued momentum from our innovation cycle, we are raising our revenue and adjusted EPS guidance for the year. Importantly, we continue to advance our strategic priorities and remain confident our efforts will strengthen our business, build the boldest leader in MedTech, and better position Zimmer Biomet to deliver consistent, durable growth over the long term."
Recent Highlights
Announced increase to share repurchase expectations of up to $1 billion of its common stock during fiscal year 2026. Received U.S. FDA 510(k) clearance and completed first cases of the next generation ROSA® Shoulder System, the first in the industry to support both glenoid and humeral bone preparation for anatomic and reverse techniques. Recognized as "Best Healthcare Robotics Solution" in 2026 MedTech Breakthrough Awards ROSA® Knee with OptimiZe™. Named Chintan Desai president of the company's Asia Pacific Region to replace Sang Yi, who will depart the company on Aug. 28. Named to TIME's 2026 list of America's Best Companies, demonstrating excellence across employee satisfaction, financial results and sustainability transparency. Issued 2025 Sustainability Report, highlighting meaningful progress reducing the company's environmental footprint, strengthening communities and expanding access to care. Zimmer Biomet Institute held its inaugural Sharpening Your Edge immersive, hands-on bioskills training experience, designed to deliver immediate, practice-ready impact to early career surgeons. Geographic and Product Category Sales
The following sales tables provide results by geography and product category for the three and six-month periods ended June 30, 2026, as well as the percentage change compared to the prior year periods, on both a reported basis and a constant currency basis. Percentage change is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28, Inc. ("Paragon 28").
NET SALES - THREE MONTHS ENDED JUNE 30, 2026
(in millions, unaudited)
Organic
Constant
Constant
Net
Currency
Currency
Sales
% Change
% Change
% Change
Geographic Results
United States
$
1,239.9
5.6
%
5.6
%
4.6
%
International
937.0
3.7
3.5
3.1
Total
$
2,177.0
4.8
%
4.7
%
4.0
%
Product Categories
Knees
United States
$
455.0
1.4
%
1.4
%
1.4
%
International
374.0
(0.9)
(1.5)
(1.5)
Total
828.9
0.4
0.1
0.1
Hips
United States
288.5
5.9
5.9
5.9
International
274.1
4.0
4.2
4.2
Total
562.7
5.0
5.1
5.1
S.E.T. *
586.0
6.4
6.2
3.4
Technology & Data, Bone Cement and Surgical
199.4
21.1
21.5
21.5
Total
$
2,177.0
4.8
%
4.7
%
4.0
%
* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic
NET SALES - SIX MONTHS ENDED JUNE 30, 2026
(in millions, unaudited)
Organic
Constant
Constant
Net
Currency
Currency
Sales
% Change
% Change
% Change
Geographic Results
United States
$
2,449.3
7.1
%
7.1
%
3.9
%
International
1,814.4
6.8
3.8
2.8
Total
$
4,263.7
7.0
%
5.7
%
3.4
%
Product Categories
Knees
United States
$
924.1
1.8
%
1.8
%
1.8
%
International
733.4
3.1
(0.2)
(0.2)
Total
1,657.5
2.4
0.9
0.9
Hips
United States
566.1
5.5
5.5
5.5
International
520.7
5.2
2.7
2.7
Total
1,086.8
5.3
4.2
4.2
S.E.T. *
1,148.2
12.5
11.3
2.6
Technology & Data, Bone Cement and Surgical
371.2
18.0
16.8
16.8
Total
$
4,263.7
7.0
%
5.7
%
3.4
%
* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic
Amounts reported in millions are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Percentages presented are calculated from the underlying unrounded amounts.
Financial Guidance
The Company is updating its full-year 2026 financial guidance as follows:
Projected Year Ending December 31, 2026
Previous Guidance
Updated Guidance
2026 Reported Revenue Change
2.5% - 4.5%
3.9% - 4.9%
Foreign Currency Exchange Impact
+0.5 %
+0.5 %
2026 Constant Currency Revenue Change
2.0% - 4.0%
3.4% - 4.4%
2026 Organic Constant Currency Revenue Change(1)
1.0% - 3.0%
2.25% - 3.25%
Adjusted Diluted EPS(2)
$8.40 - $8.55
$8.47 - $8.59
(1)
Excludes the impact of the Paragon 28 acquisition through the one-year anniversary of the acquisition date, which is estimated to be approximately 110bps.
(2)
This measure is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See "Forward-Looking Non-GAAP Financial Measures" below, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.
Conference Call
The Company will conduct its second quarter 2026 investor conference call today, August 5, 2026, at 8:30 a.m. ET. The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com. It will be archived for replay following the conference call.
About the Company
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.
With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.
For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.x.com/zimmerbiomet.
Website Information
We routinely post important information for investors on our website, www.zimmerbiomet.com, in the "Investor Relations" section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts.
The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document.
Note on Non-GAAP Financial Measures
This press release and our commentary in our investor conference call today include non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.
Net sales change information for the three and six-month periods ended June 30, 2026 is presented on a GAAP (reported) basis and on a constant currency basis. Net sales change for these periods is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases. Projected revenue change information for the year ending December 31, 2026, is also presented on an organic constant currency basis. In addition to excluding the projected effects of foreign currency exchange rates, projected 2026 organic constant currency revenue change also excludes the impact on net sales from the April 2025 acquisition of Paragon 28 through the one-year anniversary of the acquisition date in April 2026.
Net earnings and diluted earnings per share for the three and six-month periods ended June 30, 2026 and 2025 are presented on a GAAP (reported) basis and on an adjusted basis. These adjusted financial measures exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in the press release.
Free cash flow is an additional non-GAAP measure that is presented in this press release. Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release. This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts. These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation.
Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures. In addition, constant currency revenue change, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.
Forward-Looking Non-GAAP Financial Measures
This press release and our commentary in our investor conference call today also include certain forward-looking non-GAAP financial measures for the year ending December 31, 2026. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, we exclude the impact of restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures (other than projected 2026 organic constant currency revenue change) to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. For example, the timing of certain transactions is difficult to predict because management's plans may change. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding financial guidance, statements regarding macro pressures, including the impact of such pressures on our business, and any statements about our forecasts, expectations, plans, intentions, commitments, strategies or prospects. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; the transformation of our sales and distribution network in the U.S. and other markets; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; the risks and uncertainties relating to our ability to successfully execute on our product portfolio rationalization plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of our acquisitions, including the possibility that the expected benefits from such transactions will not be realized or will not be realized within the expected time period; the risk that acquired businesses will not be integrated successfully; the effects of business disruptions affecting us, our suppliers, customers or payors, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully integrate the operations, products, service providers, agents, employees, sales representatives and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; unplanned delays, disruptions and expenses attributable to our enterprise resource planning and other system updates; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our (or of our business partners' or other third parties') information technology systems or products, including by cyberattack, unauthorized access or theft; the outcome of government investigations; the impact of healthcare reform and cost containment measures, including efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, through reductions in reimbursement levels, repayment demands and otherwise; the effects of natural disasters, or of legal, regulatory or market measures to address natural disasters; the effects of our commitments, goals and disclosures relating to corporate responsibility matters; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; changes in tax obligations arising from examinations by tax authorities and from changes in tax laws in jurisdictions where we do business, including as a result of the "base erosion and profit shifting" project undertaken by the Organisation for Economic Co-operation and Development and otherwise; challenges to the tax-free nature of the ZimVie Inc. spinoff transaction and the subsequent liquidation of our retained interest in ZimVie Inc.; the risk of additional tax liability due to the recategorization of our independent agents and distributors to employees; changes in tariffs relating to imports to the U.S. and other countries; the risk that material impairment of the carrying value of our intangible assets, including goodwill, could negatively affect our operating results; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; changes in general industry and market conditions, including domestic and international growth, inflation and currency exchange rates; the domestic and international business impact of political, social and economic instability, tariffs, trade restrictions and embargoes, sanctions, wars, disputes and other conflicts, including on our ability to operate in, export from or collect accounts receivable in affected countries; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the U.S. Food and Drug Administration ("FDA") and other government regulators relating to medical products, healthcare fraud and abuse laws and data privacy and cybersecurity laws; the success of our quality and operational excellence initiatives; the ability to remediate matters identified in inspectional observations issued by the FDA and other regulators, while continuing to satisfy the demand for our products; product liability, intellectual property and commercial litigation losses; and the ability to obtain and maintain adequate intellectual property protection. A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the Securities and Exchange Commission (SEC). Copies of these filings are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary note is applicable to all forward-looking statements contained in this press release.
Note: Amounts reported in millions within this press release are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.
ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, except per share amounts, unaudited)
2026
2025
Net Sales
$
2,177.0
$
2,077.3
Cost of products sold, excluding intangible asset amortization
635.5
592.2
Intangible asset amortization
163.4
160.6
Research and development
104.8
113.3
Selling, general and administrative
899.3
814.8
Restructuring and other cost reduction initiatives
29.8
17.5
Acquisition, integration, divestiture and related
18.1
78.9
Operating expenses
1,850.9
1,777.3
Operating Profit
326.1
300.0
Other income, net
1.9
3.9
Interest expense, net
(72.9)
(79.3)
Earnings before income taxes
255.1
224.6
Provision for income taxes
55.5
71.2
Net Earnings
199.6
153.4
Less: Net earnings attributable to noncontrolling interest
1.3
0.6
Net Earnings of Zimmer Biomet Holdings, Inc.
$
198.3
$
152.8
Earnings Per Common Share
Basic
$
1.03
$
0.77
Diluted
$
1.03
$
0.77
Weighted Average Common Shares Outstanding
Basic
192.2
197.9
Diluted
192.8
198.3
ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, except per share amounts, unaudited)
2026
2025
Net Sales
$
4,263.7
$
3,986.4
Cost of products sold, excluding intangible asset amortization
1,211.6
1,142.0
Intangible asset amortization
325.5
311.6
Research and development
208.2
223.9
Selling, general and administrative
1,749.3
1,573.5
Restructuring and other cost reduction initiatives
36.1
53.5
Acquisition, integration, divestiture and related
33.7
89.5
Operating expenses
3,564.4
3,394.0
Operating Profit
699.2
592.3
Other (expense) income, net
(1.1)
6.9
Interest expense, net
(141.7)
(145.5)
Earnings before income taxes
556.4
453.6
Provision for income taxes
118.5
117.6
Net Earnings
437.9
336.0
Less: Net earnings attributable to noncontrolling interest
1.5
1.1
Net Earnings of Zimmer Biomet Holdings, Inc.
$
436.5
$
334.9
Earnings Per Common Share
Basic
$
2.25
$
1.69
Diluted
$
2.25
$
1.68
Weighted Average Common Shares Outstanding
Basic
193.6
198.4
Diluted
194.3
199.0
ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
June 30,
December 31,
2026
2025
Assets
Cash and cash equivalents
$
410.0
$
591.9
Receivables, net
1,769.5
1,704.4
Inventories
2,270.3
2,286.4
Other current assets
646.9
537.3
Total current assets
5,096.7
5,119.9
Property, plant and equipment, net
2,236.8
2,207.1
Goodwill
9,919.5
9,947.1
Intangible assets, net
4,461.6
4,717.3
Other assets
1,083.3
1,100.3
Total Assets
$
22,797.8
$
23,091.7
Liabilities and Stockholders' Equity
Current liabilities
$
1,812.0
$
1,996.6
Current portion of long-term debt
1,201.5
587.1
Other long-term liabilities
874.3
870.2
Long-term debt
6,277.5
6,932.0
Stockholders' equity
12,632.5
12,705.8
Total Liabilities and Stockholders' Equity
$
22,797.8
$
23,091.7
ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, unaudited)
2026
2025
Cash flows provided by (used in) operating activities
Net earnings
$
437.9
$
336.0
Depreciation and amortization
540.8
526.2
Share-based compensation
48.8
40.8
Changes in operating assets and liabilities, net of acquired assets and liabilities
Income taxes
(80.1)
(132.0)
Receivables
(24.0)
(18.6)
Inventories
(51.4)
(40.2)
Accounts payable and accrued liabilities
(91.0)
40.4
Other assets and liabilities
26.1
8.3
Net cash provided by operating activities
807.2
761.0
Cash flows provided by (used in) investing activities
Additions to instruments
(162.6)
(140.2)
Additions to other property, plant and equipment
(90.5)
(94.7)
Net investment hedge settlements
10.8
3.5
Business combination investments, net of acquired cash
-
(1,226.3)
Acquisition of intangible assets
(101.2)
(32.4)
Other investing activities
(6.3)
(0.3)
Net cash used in investing activities
(349.8)
(1,490.4)
Cash flows provided by (used in) financing activities
Net proceeds on revolving facilities
30.0
220.0
Proceeds from senior notes
-
1,748.1
Redemption of senior notes
-
(863.0)
Dividends paid to stockholders
(93.4)
(95.3)
Proceeds from employee stock compensation plans
12.4
17.1
Business combination contingent consideration payments
(69.2)
(17.4)
Debt issuance costs
(1.3)
(17.3)
Repurchase of common stock
(500.8)
(237.0)
Other financing activities
(17.9)
(16.1)
Net cash (used in) provided by financing activities
(640.3)
739.2
Effect of exchange rates on cash and cash equivalents
1.1
21.6
Change in cash and cash equivalents
(181.9)
31.4
Cash and cash equivalents, beginning of year
591.9
525.5
Cash and cash equivalents, end of period
$
410.0
$
556.9
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE
(unaudited)
For the Three Months Ended
June 30, 2026 vs. 2025
Organic
Foreign
Constant
Paragon
Constant
Exchange
Currency
28
Currency
% Change
Impact
% Change
Impact
% Change
Geographic Results
United States
5.6
%
-
%
5.6
%
1.0
%
4.6
%
International
3.7
0.2
3.5
0.4
3.1
Total
4.8
%
0.1
%
4.7
%
0.7
%
4.0
%
Product Categories
Knees
United States
1.4
%
-
%
1.4
%
-
%
1.4
%
International
(0.9)
0.6
(1.5)
-
(1.5)
Total
0.4
0.3
0.1
-
0.1
Hips
United States
5.9
-
5.9
-
5.9
International
4.0
(0.2)
4.2
-
4.2
Total
5.0
(0.1)
5.1
-
5.1
S.E.T.
6.4
0.2
6.2
2.8
3.4
Technology & Data, Bone Cement and Surgical
21.1
(0.4)
21.5
-
21.5
Total
4.8
%
0.1
%
4.7
%
0.7
%
4.0
%
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE
(unaudited)
For the Six Months Ended
June 30, 2026 vs. 2025
Organic
Foreign
Constant
Paragon
Constant
Exchange
Currency
28
Currency
% Change
Impact
% Change
Impact
% Change
Geographic Results
United States
7.1
%
-
%
7.1
%
3.2
%
3.9
%
International
6.8
3.0
3.8
1.0
2.8
Total
7.0
%
1.3
%
5.7
%
2.3
%
3.4
%
Product Categories
Knees
United States
1.8
%
-
%
1.8
%
-
%
1.8
%
International
3.1
3.3
(0.2)
-
(0.2)
Total
2.4
1.5
0.9
-
0.9
Hips
United States
5.5
-
5.5
-
5.5
International
5.2
2.5
2.7
-
2.7
Total
5.3
1.1
4.2
-
4.2
S.E.T.
12.5
1.2
11.3
8.7
2.6
Technology & Data, Bone Cement and Surgical
18.0
1.2
16.8
-
16.8
Total
7.0
%
1.3
%
5.7
%
2.3
%
3.4
%
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, except per share amounts, unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 2026
Cost of products
sold, excluding
intangible asset
amortization
Intangible asset
amortization
Selling, general
and administrative
Restructuring
and other
cost
reduction
initiatives
Acquisition,
integration,
divestiture
and related
Other
income,
net
Provision
for income
taxes
Net
Earnings of
Zimmer
Biomet
Holdings,
Inc.
Diluted
earnings
per
common
share
As Reported
$
635.5
$
163.4
$
899.3
$
29.8
$
18.1
$
1.9
$
55.5
$
198.3
$
1.03
Inventory and manufacturing-related
charges(1)
(6.0)
-
-
-
-
-
0.3
5.7
0.03
Intangible asset amortization(2)
-
(163.4)
-
-
-
-
33.9
129.5
0.67
Restructuring and other cost
reduction initiatives(3)
-
-
-
(29.8)
-
-
6.4
23.4
0.12
Acquisition, integration, divestiture
and related(4)
-
-
-
-
(18.1)
-
1.7
16.4
0.09
Litigation(5)
-
-
(12.3)
-
-
-
3.1
9.2
0.05
Other charges(6)
-
-
(4.0)
-
-
0.1
1.0
3.1
0.02
Other certain tax adjustments(7)
-
-
-
-
-
-
(14.0)
14.0
0.07
As Adjusted
$
629.5
$
-
$
883.0
$
-
$
-
$
2.0
$
87.9
$
399.6
$
2.07
FOR THE THREE MONTHS ENDED JUNE 30, 2025
Cost of
products
sold,
excluding
intangible
asset
amortization
Intangible
asset
amortization
Research
and
development
Selling,
general and
administrative
Restructuring
and other
cost
reduction
initiatives
Acquisition,
integration,
divestiture
and related
Other
income,
net
Interest
expense,
net
Provision
for
income
taxes
Net
Earnings
of
Zimmer
Biomet
Holdings,
Inc.
Diluted
earnings
per
common
share
As Reported
$
592.2
$
160.6
$
113.3
$
814.8
$
17.5
$
78.9
$
3.9
$
(79.3)
$
71.2
$
152.8
$
0.77
Inventory and manufacturing-
related charges(1)
(17.0)
-
-
-
-
-
-
-
4.7
12.3
0.06
Intangible asset amortization(2)
-
(160.6)
-
-
-
-
-
-
32.6
128.0
0.65
Restructuring and other cost
reduction initiatives(3)
-
-
-
-
(17.5)
-
-
-
3.9
13.6
0.07
Acquisition, integration,
divestiture and related(4)
-
-
-
-
-
(78.9)
-
-
13.4
65.5
0.33
European Union Medical
Device Regulation(8)
-
-
(4.3)
-
-
-
-
-
1.0
3.3
0.02
Other charges(6)
-
-
-
(0.3)
-
-
(0.5)
0.8
0.1
0.5
-
Other certain tax
adjustments(7)
-
-
-
-
-
-
-
-
(35.2)
35.2
0.18
As Adjusted
$
575.2
$
-
$
109.0
$
814.5
$
-
$
-
$
3.4
$
(78.5)
$
91.7
$
411.2
$
2.07
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED TO ADJUSTED RESULTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, except per share amounts, unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 2026
Cost of products
sold, excluding
intangible asset
amortization
Intangible
asset
amortization
Selling, general
and
administrative
Restructuring
and other
cost
reduction
initiatives
Acquisition,
integration,
divestiture
and related
Other
(expense)
income,
net
Provision
for
income
taxes
Net Earnings
of
Zimmer
Biomet
Holdings,
Inc.
Diluted
earnings per
common
share
As Reported
$
1,211.6
$
325.5
$
1,749.3
$
36.1
$
33.7
$
(1.1)
$
118.5
$
436.5
$
2.25
Inventory and manufacturing-related
charges(1)
(19.3)
-
-
-
-
-
3.9
15.4
0.08
Intangible asset amortization(2)
-
(325.5)
-
-
-
-
68.1
257.4
1.32
Restructuring and other cost reduction
initiatives(3)
-
-
-
(36.1)
-
-
7.4
28.7
0.15
Acquisition, integration, divestiture and
related(4)
-
-
-
-
(33.7)
-
3.1
30.6
0.16
Litigation(5)
-
-
(12.3)
-
-
-
3.1
9.2
0.05
Other charges(6)
-
-
(4.1)
-
-
0.9
-
1.2
3.8
0.02
Other certain tax adjustments(7)
-
-
-
-
-
-
(27.5)
27.5
0.14
As Adjusted
$
1,192.4
$
-
$
1,732.9
$
-
$
-
$
(0.2)
$
177.8
$
809.0
$
4.16
FOR THE SIX MONTHS ENDED JUNE 30, 2025
Cost of
products
sold,
excluding
intangible
asset
amortization
Intangible
asset
amortization
Research
and
development
Selling,
general and
administrative
Restructuring
and other
cost
reduction
initiatives
Acquisition,
integration,
divestiture
and related
Other
(expense)
income,
net
Interest
expense,
net
Provision
for
income
taxes
Net
Earnings
of
Zimmer
Biomet
Holdings,
Inc.
Diluted
earnings
per
common
share
As Reported
$
1,142.0
$
311.6
$
223.9
$
1,573.5
$
53.5
$
89.5
$
6.9
$
(145.5)
$
117.6
$
334.9
$
1.68
Inventory and manufacturing-related charges(1)
(23.2)
-
-
-
-
-
-
-
6.8
16.4
0.08
Intangible asset amortization(2)
-
(311.6)
-
-
-
-
-
-
60.8
250.8
1.26
Restructuring and other cost reduction
initiatives(3)
-
-
-
-
(53.5)
-
-
-
11.1
42.4
0.21
Acquisition, integration, divestiture and
related(4)
-
-
-
-
-
(89.5)
-
-
15.3
74.2
0.37
European Union Medical Device Regulation(8)
-
-
(8.7)
-
-
-
-
-
1.9
6.8
0.04
Other charges(6)
-
-
-
(0.2)
-
-
(0.5)
5.6
2.8
2.5
0.01
Other certain tax adjustments(7)
-
-
-
-
-
-
-
-
(44.3)
44.3
0.22
As Adjusted
$
1,118.8
$
-
$
215.3
$
1,573.4
$
-
$
-
$
6.4
$
(139.9)
$
172.0
$
772.3
$
3.88
(1)
Inventory and manufacturing-related charges include excess and obsolete inventory charges on certain product lines we intend to discontinue by 2032, inventory step-up expense, and other inventory and manufacturing-related charges or gains. Inventory step-up expense represents the incremental expense of inventory sold recognized at its fair value after business combination accounting is applied versus the expense that would have been recognized if sold at its cost to manufacture. Since only the inventory that existed at the business combination date was stepped-up to fair value, we believe excluding the incremental expense provides investors useful information as to what our costs may have been if we had not been required to increase the inventory's book value to fair value. The excess and obsolete inventory impacts to product lines we intend to discontinue were income of $3.9 million and expense of $3.0 million in the three-month periods ended June 30, 2026 and 2025, respectively, and were income of $2.6 million and expense of $5.6 million in the six-month periods ended June 30, 2026 and 2025, respectively. Inventory step-up expense was $12.0 million and $7.9 million in the three-month periods ended June 30, 2026 and 2025, respectively, and were $24.0 million and $7.9 million in the six-month periods ended June 30, 2026 and 2025, respectively.
(2)
We exclude intangible asset amortization as well as deferred tax rate changes on our intangible assets from our non-GAAP financial measures because we internally assess our performance against our peers without this amortization. Due to various levels of acquisitions among our peers, intangible asset amortization can vary significantly from company to company.
(3)
In December 2019, 2021 and 2023, and in February and December 2025, we initiated global restructuring programs that included a reorganization of key businesses and an overall effort to reduce costs in order to accelerate decision-making, focus the organization on priorities to drive growth and, in the case of the December 2021 program, to prepare for the spinoff of ZimVie Inc. ("ZimVie"). Restructuring and other cost reduction initiatives also include other cost reduction and optimization initiatives that have the goal of reducing costs across the organization. The costs include employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management expenses, retention period salaries and benefits and relocation costs.
(4)
The acquisition, integration, divestiture and related gains and expenses we have excluded from our non-GAAP financial measures resulted from various acquisitions, post-separation costs we have incurred related to ZimVie and gains related to a transition services agreement for services we provided to ZimVie and a transition manufacturing and supply agreement for products we supplied to ZimVie for a limited period. The expenses in each of the three and six-month periods ended June 30, 2025, include $43.4 million of compensation expense related to the discretionary accelerated vesting of Paragon 28 unvested restricted stock units as agreed upon as part of the merger agreement. In the three-month periods ended June 30, 2026 and 2025, this line item includes expense of $11.1 million and income of $9.4 million, respectively, related to changes in the estimated fair values of contingent consideration due to updated forecasts of net sales from certain acquisitions. In the six-month periods ended June 30, 2026 and 2025, this line item includes expense of $19.2 million and income of $7.7 million, respectively, related to changes in estimated fair values of contingent consideration.
(5)
We are involved in patent litigation, product liability litigation, commercial litigation and other various litigation matters. We review litigation matters from both a qualitative and quantitative perspective to determine if excluding the losses or gains will provide our investors with useful incremental information. Litigation matters can vary in their characteristics, frequency and significance to our operating results. The litigation charges and gains excluded from our non-GAAP financial measures in the periods presented relate to certain product liability litigation and claims across multiple districts and countries. Once a litigation matter has been excluded from our non-GAAP financial measures in a particular period, any additional expenses or gains from changes in estimates are also excluded, even if they are not significant, to ensure consistency in our non-GAAP financial measures from period-to-period.
(6)
We have incurred other various expenses from specific events or projects that we consider highly variable or that have a significant impact to our operating results that we have excluded from our non-GAAP measures. These include gains and losses from changes in fair value on our equity investments and impairment of instruments related to certain product lines we intend to discontinue, among other various costs. In addition, in February 2025 we issued senior notes in order to have the necessary cash-on-hand to acquire Paragon 28 once regulatory approval was received. We have excluded from our non-GAAP financial measures the interest on this debt related to the principal amount of the estimated purchase price and acquisition-related costs up through the acquisition date. Interest expense subsequent to the acquisition date has not been excluded.
(7)
Other certain tax adjustments are primarily related to significant and discrete tax adjustments. The primary adjustments include benefits of $13.1 million and $8.2 million in the three-month periods ended June 30, 2026, and 2025, respectively, and benefits of $25.2 million and $16.7 million in the six-month periods ended June 30, 2026, and 2025, respectively, related to Swiss tax reform; and benefits of $26.8 million in each of the three and six-month periods ended June 30, 2025, related to certain unremitted foreign earnings (no impact on 2026 periods).
(8)
The European Union Medical Device Regulation imposes significant additional premarket and postmarket requirements. The new regulations provided a transition period until May 2021 for previously-approved medical devices to meet the additional requirements. For certain devices, this transition period was extended until May 2024. A conditional extension of the transition period has been implemented until December 2027 and 2028 depending on the legacy medical device's risk class. We are excluding from our non-GAAP financial measures the incremental costs incurred to establish initial compliance with the regulations related to our previously-approved medical devices. The incremental costs primarily relate to temporary personnel and third-party professionals necessary to supplement our internal resources. Starting January 1, 2026, we do not expect to incur any significant incremental costs related to these new regulations.
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net cash provided by operating activities
$
447.9
$
378.2
$
807.2
$
761.0
Additions to instruments
(85.4)
(80.5)
(162.6)
(140.2)
Additions to other property, plant and equipment
(54.2)
(50.0)
(90.5)
(94.7)
Free cash flow
$
308.3
$
247.7
$
554.1
$
526.1
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF GROSS PROFIT & MARGIN
TO ADJUSTED GROSS PROFIT & MARGIN
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net Sales
$
2,177.0
$
2,077.3
$
4,263.7
$
3,986.4
Cost of products sold, excluding intangible asset amortization
635.5
592.2
1,211.6
1,142.0
Intangible asset amortization
163.4
160.6
325.5
311.6
Gross Profit
$
1,378.1
$
1,324.5
$
2,726.6
$
2,532.8
Inventory and manufacturing-related charges
6.0
17.0
19.3
23.2
Intangible asset amortization
163.4
160.6
325.5
311.6
Adjusted gross profit
$
1,547.5
$
1,502.1
$
3,071.4
$
2,867.6
Gross margin
63.3
%
63.8
%
63.9
%
63.5
%
Inventory and manufacturing-related charges
0.3
0.8
0.5
0.6
Intangible asset amortization
7.5
7.7
7.6
7.8
Adjusted gross margin
71.1
%
72.3
%
72.0
%
71.9
%
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF OPERATING PROFIT & MARGIN TO ADJUSTED OPERATING PROFIT & MARGIN
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025
(in millions, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Operating profit
$
326.1
$
300.0
$
699.2
$
592.3
Inventory and manufacturing-related charges
6.0
17.0
19.3
23.2
Intangible asset amortization
163.4
160.6
325.5
311.6
Restructuring and other cost reduction initiatives
29.8
17.5
36.1
53.5
Acquisition, integration, divestiture and related
18.1
78.9
33.7
89.5
Litigation
12.3
-
12.3
-
European Union Medical Device Regulation
-
4.3
-
8.7
Other charges
4.0
0.3
4.1
0.2
Adjusted operating profit
$
559.7
$
578.5
$
1,130.2
$
1,079.0
Operating profit margin
15.0
%
14.4
%
16.4
%
14.9
%
Inventory and manufacturing-related charges
0.3
0.8
0.5
0.6
Intangible asset amortization
7.5
7.7
7.6
7.8
Restructuring and other cost reduction initiatives
1.4
0.8
0.8
1.3
Acquisition, integration, divestiture and related
0.8
3.8
0.8
2.2
Litigation
0.6
-
0.3
-
European Union Medical Device Regulation
-
0.2
-
0.2
Other charges
0.2
-
0.1
-
Adjusted operating profit margin
25.7
%
27.8
%
26.5
%
27.1
%
ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Effective tax rate
21.8
%
31.7
%
21.3
%
25.9
%
Tax effect of adjustments made to earnings before taxes(1)
1.6
2.2
1.6
2.1
Other certain tax adjustments(2)
(5.4)
(15.7)
(4.9)
(9.8)
Adjusted effective tax rate
18.0
%
18.2
%
18.0
%
18.2
%
(1) Includes inventory and manufacturing-related charges; intangible asset amortization; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; litigation; European Union Medical Device Regulation; and other charges
(2) Other certain tax adjustments are primarily related to significant and discrete tax adjustments. The primary adjustments include benefits of $13.1 million and $8.2 million in the three-month periods ended June 30, 2026, and 2025, respectively, and benefits of $25.2 million and $16.7 million in the six-month periods ended June 30, 2026, and 2025, respectively, related to Swiss tax reform; and benefits of $26.8 million in each of the three and six-month periods ended June 30, 2025, related to certain unremitted foreign earnings (no impact on 2026 periods).
SAN JOSE, Calif.--(BUSINESS WIRE)--Rambus Inc. (NASDAQ: RMBS), a premier chip and silicon IP provider making data faster and safer, today announced that it initiated an accelerated share repurchase program with Mizuho Markets Americas LLC, through its agent Mizuho Securities USA LLC (“Dealer”) to repurchase an aggregate of approximately $100 million of its common stock.
“This accelerated share repurchase reflects our confidence in the business and reinforces our commitment to disciplined capital allocation,” said Luc Seraphin, president and chief executive officer at Rambus. “Supported by the strength of our balance sheet and continued cash generation, we remain focused on increasing stockholder value while investing in the long-term growth of the company.”
Under the accelerated share repurchase program, Rambus will pre-pay $100 million to Dealer and receive an initial delivery of approximately 796,000 shares of its common stock. The final number of shares to be repurchased will be determined based on the volume-weighted average price of Rambus common stock during the term of the transaction, less a discount. The program is expected to be completed by the end of the third quarter of 2026.
The accelerated share repurchase program is part of the broader share repurchase program previously authorized by the Rambus Board of Directors.
About Rambus Inc.
Rambus delivers industry-leading chips and silicon IP for the data center and AI infrastructure. With over three decades of advanced semiconductor experience, our products and technologies address the critical bottlenecks between memory and processing to accelerate data-intensive workloads. By enabling greater bandwidth, efficiency and security across next generation computing platforms, we make data faster and safer. For more information, visit rambus.com.
Forward-Looking Statements
This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 relating, among other things, to the terms of Rambus’ accelerated share repurchase program, including timing. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by Rambus’ management. Actual results may differ materially. The forward-looking statements contained in this press release are subject to risks and uncertainties, including those more fully described in Rambus’ Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The forward-looking statements in this press release are based on information available to Rambus as of the date hereof, and Rambus undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
Thomson Reuters ve 2. čtvrtletí zvýšil výnosy o 9 % na 1,954 miliardy USD a čistý zisk na 448 milionů USD. Firma zároveň zvedla celoroční výhled růstu výnosů na zhruba 8 %.
, /PRNewswire/ -- Thomson Reuters (TSX: TRI) (Nasdaq: TRI) today reported results for the second quarter ended June 30, 2026:
Strong revenue growth in the second quarter Total company revenues up 9% / organic revenues up 8% Organic revenues up 10% for the "Big 3" segments (Legal Professionals, Corporates and Tax, Audit & Accounting Professionals) Raised full-year 2026 total and organic revenue growth outlook to approximately 8.0% for the total company, and to a range of 9.5% to 10.0% for the "Big 3" segments Announced signing of definitive agreement with KKR to form a joint venture to operate the Global Print business, where Thomson Reuters will sell a 51% stake to capital accounts advised by KKR with Thomson Reuters receiving approximately $500 million in gross proceeds on closing Completed $605 million return of capital transaction on May 4, 2026 and reduced share count by approximately 6.5 million shares by way of share consolidation Completed $600 million share repurchase program announced on February 25, 2026 Repaid $500 million 3.35% notes in May 2026 "We saw strong momentum continue in the second quarter, underscored by 10% organic revenue growth in our "Big 3" segments," said Steve Hasker, President and CEO of Thomson Reuters. "Our priority for the second half of the year is further deepening our leadership in trusted Fiduciary-Grade AI solutions. We are very pleased with the recent release of CoCounsel Legal and the very strong evaluation results of the first production ready version of the Thomson LLM. The recently announced Global Print transaction with KKR allows us to sharpen our focus on content-powered AI solutions that provide fiduciary grade outcomes for our professional markets."
Consolidated Financial Highlights - Three Months Ended June 30
Three months ended June 30,
(Millions of U.S. dollars, except for EPS)
(unaudited)
IFRS Financial Measures(1)
2026
2025
Change
Revenues
$1,954
$1,785
9 %
Operating profit
$558
$436
28 %
Diluted earnings per share (EPS)
$1.02
$0.69
48 %
Net cash provided by operating activities
$920
$746
23 %
Non-IFRS Financial Measures(1)
2026
2025
Change
Change at
Constant
Currency
Revenue growth in constant currency
9 %
Organic revenue growth
8 %
Adjusted EBITDA
$745
$678
10 %
9 %
Adjusted EBITDA margin
38.1 %
37.8 %
30bp
20bp
Adjusted EPS
$0.99
$0.87
14 %
13 %
Free cash flow
$727
$566
29 %
(1) In addition to results reported in accordance with International Financial Reporting Standards (IFRS), the company uses certain
non-IFRS financial measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS
Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS
financial measures, including how they are defined and reconciled to the most directly comparable IFRS measures.
Revenues increased 9% due to 9% growth in recurring revenues (82% of total revenues) and 16% growth in transactions revenues, partly offset by a 3% decline in Global Print. Total company revenue growth benefited approximately 1% from foreign currency and 1% from net acquisitions and disposals.
Organic revenues increased 8% reflecting 9% growth in recurring revenues, 11% growth in transactions revenues and a 3% decline in Global Print. The company's "Big 3" segments reported organic revenue growth of 10% and collectively comprised 83% of total revenues. Operating profit increased 28%, primarily due to the net impact of higher revenues and operating expenses as well as other operating gains in the current-year period, partly offset by higher amortization of software.
Adjusted EBITDA, which excludes other operating gains, amortization of software, as well as other adjustments, increased 10% and the related margin increased to 38.1% from 37.8% in the prior-year period. Foreign currency contributed 10 basis points to the year-over-year change in adjusted EBITDA margin. Diluted EPS increased to $1.02 per share compared to $0.69 per share in the prior-year period, primarily due to higher operating profit and, to a lesser extent, a benefit from a reduction in weighted-average common shares outstanding.
Adjusted EPS increased to $0.99 per share compared to $0.87 per share in the prior-year period, primarily due to higher adjusted EBITDA and a benefit from a reduction in weighted-average common shares outstanding, partly offset by higher amortization of internally developed software. Net cash provided by operating activities increased by $174 million primarily due to higher cash benefits from the net impact of higher revenues and operating expenses and certain favorable changes in working capital.
Free cash flow increased by $161 million primarily due to higher net cash provided by operating activities, partly offset by higher capital expenditures. Highlights by Customer Segment – Three Months Ended June 30
(Millions of U.S. dollars)
(unaudited)
Three months ended
June 30,
Change
2026
2025(2)
Total
Constant
Currency(1)
Organic(1)(3)
Revenues
Legal Professionals
$772
$704
10 %
9 %
10 %
Corporates
537
480
12 %
11 %
10 %
Tax, Audit & Accounting Professionals
311
274
14 %
12 %
8 %
"Big 3" Segments Combined(1)
1,620
1,458
11 %
10 %
10 %
Reuters
229
218
5 %
5 %
4 %
Global Print
111
114
-3 %
-3 %
-3 %
Eliminations/Rounding
(6)
(5)
Total Revenues
$1,954
$1,785
9 %
9 %
8 %
Adjusted EBITDA(1)
Legal Professionals
$371
$339
10 %
9 %
Corporates
200
172
17 %
15 %
Tax, Audit & Accounting Professionals
120
110
9 %
7 %
"Big 3" Segments Combined(1)
691
621
12 %
10 %
Reuters
48
45
5 %
10 %
Global Print
42
41
2 %
1 %
Corporate costs
(36)
(29)
n/a
n/a
Total Adjusted EBITDA
$745
$678
10 %
9 %
Adjusted EBITDA Margin(1)
Legal Professionals
48.1 %
48.1 %
0bp
-10bp
Corporates
37.2 %
35.7 %
150bp
130bp
Tax, Audit & Accounting Professionals
38.7 %
38.9 %
-20bp
-40bp
"Big 3" Segments Combined(1)
42.7 %
42.3 %
40bp
30bp
Reuters
20.8 %
20.8 %
0bp
80bp
Global Print
37.7 %
36.0 %
170bp
150bp
Total Adjusted EBITDA Margin
38.1 %
37.8 %
30bp
20bp
(1) The company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial measures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue.
(2) For comparative purposes, 2025 segment results have been revised to reflect the current period presentation. For additional information, including a summary of how the changes impacted results for the three and six months ended June 30, 2025, see the "Revision to Prior-Year Segment Results" section of this news release.
(3) Computed for revenue growth only.
n/a: not applicable
Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constant currency (which excludes the impact of foreign currency) as the company believes this provides the best basis to measure performance.
Legal Professionals
Revenues increased 9% at constant currency. Organic revenue growth was 10%.
Recurring revenues increased 9% (97% of total, all organic). Organic revenue growth was primarily driven by Westlaw and CoCounsel. Transactions revenues increased 16% (3% of total, 18% organic) driven by CLEAR. Adjusted EBITDA increased 10% to $371 million.
The margin was 48.1%, unchanged from the prior-year period. Corporates
Revenues increased 11% at constant currency. Organic revenue growth was 10%.
Recurring revenues increased 9% (86% of total, all organic). Organic revenue growth was primarily driven by Westlaw, CoCounsel, Indirect Tax, Pagero, CLEAR and the segment's international businesses. Transactions revenues increased 27% (14% of total, 24% organic). Organic revenue growth was primarily driven by Confirmation, Pagero, Trust, Checkpoint, Indirect Tax and the segment's international businesses. Adjusted EBITDA increased 17% to $200 million.
The margin increased to 37.2% from 35.7% driven by operating leverage. Foreign currency benefited the year-over-year change in adjusted EBITDA margin by 20 basis points. Tax, Audit & Accounting Professionals
Revenues increased 12% at constant currency, including the acquisition impact of SafeSend in the prior-year period, which is reflected in transactions revenues. Organic revenue growth was 8%.
Recurring revenues increased 9% (67% of total, all organic). Organic revenue growth was primarily driven by tax and audit products, including GoSystem and CoCounsel, as well as Cloud Audit Suite and the segment's Latin America business. Transactions revenues increased 17% (33% of total, 6% organic). Organic revenue growth was primarily driven by SafeSend. Adjusted EBITDA increased 9% to $120 million.
The margin decreased to 38.7% from 38.9%. Foreign currency benefited the year-over-year change in adjusted EBITDA margin by 20 basis points. The Tax, Audit & Accounting Professionals segment is the company's most seasonal business with approximately 60% of full-year revenues typically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in the first and fourth quarters as costs are typically incurred in a more linear fashion throughout the year.
Reuters
Revenues increased 5% at constant currency (4% organic), primarily due to higher Agency revenues and a contractual price increase from the company's news agreement with the Data & Analytics business of London Stock Exchange Group.
Adjusted EBITDA increased 5% to $48 million and the margin was 20.8%, unchanged from the prior-year period. Foreign currency negatively impacted the year-over-year change in adjusted EBITDA margin by 80 basis points.
Global Print
Revenues decreased 3% at constant currency, all organic, driven by lower shipment volumes.
Adjusted EBITDA increased 2% to $42 million, and the margin increased to 37.7% from 36.0%, reflecting lower expenses.
Corporate Costs
Corporate costs were $36 million compared to $29 million in the prior-year period.
Consolidated Financial Highlights - Six Months Ended June 30
Six months ended June 30,
(Millions of U.S. dollars, except for EPS)
(unaudited)
IFRS Financial Measures(1)
2026
2025
Change
Revenues
$4,041
$3,685
10 %
Operating profit
$1,197
$999
20 %
Diluted EPS
$2.05
$1.65
24 %
Net cash provided by operating activities
$1,425
$1,191
19 %
Non-IFRS Financial Measures(1)
2026
2025
Change
Change at
Constant
Currency
Revenue growth in constant currency
9 %
Organic revenue growth
8 %
Adjusted EBITDA
$1,626
$1,487
9 %
9 %
Adjusted EBITDA margin
40.2 %
40.1 %
10bp
30bp
Adjusted EPS
$2.22
$2.00
11 %
11 %
Free cash flow
$1,059
$843
26 %
(1) In addition to results reported in accordance with IFRS, the company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial measures, including how they are defined and reconciled to the most directly comparable IFRS measures.
Revenues increased 10% due to 10% growth in recurring revenues (79% of total revenues) and 15% growth in transactions revenues, partly offset by a 3% decline in Global Print. Total company revenue growth benefited approximately 1% from foreign currency and 1% from net acquisitions and disposals.
Organic revenues increased 8% reflecting 8% growth in recurring revenues, 10% growth in transactions revenues and a 4% decline in Global Print. The company's "Big 3" segments reported organic revenue growth of 9% and collectively comprised 84% of total revenues. Operating profit increased 20%, primarily due to the net impact of higher revenues and operating expenses as well as other operating gains in the current-year period, partly offset by higher amortization of software.
Adjusted EBITDA, which excludes other operating gains, amortization of software, as well as other adjustments, increased 9% and the related margin increased to 40.2% from 40.1% in the prior-year period. Foreign currency negatively impacted the year-over-year change in adjusted EBITDA margin by 20 basis points. Diluted EPS increased to $2.05 per share compared to $1.65 per share in the prior-year period, primarily due to higher operating profit and, to a lesser extent, a benefit from a reduction in weighted-average common shares outstanding.
Adjusted EPS increased to $2.22 per share compared to $2.00 per share in the prior-year period, primarily due to higher adjusted EBITDA and a benefit from a reduction in weighted-average common shares outstanding, partly offset by higher amortization of internally developed software. Net cash provided by operating activities increased by $234 million primarily due to higher cash benefits from the net impact of higher revenues and operating expenses and certain favorable changes in working capital.
Free cash flow increased by $216 million primarily due to higher net cash provided by operating activities, partly offset by higher capital expenditures. Highlights by Customer Segment – Six Months Ended June 30
(Millions of U.S. dollars)
(unaudited)
Six months ended
June 30,
Change
2026
2025(2)
Total
Constant
Currency(1)
Organic(1)(3)
Revenues
Legal Professionals
$1,528
$1,392
10 %
9 %
9 %
Corporates
1,145
1,028
11 %
10 %
10 %
Tax, Audit & Accounting Professionals
721
632
14 %
13 %
9 %
"Big 3" Segments Combined(1)
3,394
3,052
11 %
10 %
9 %
Reuters
441
414
6 %
6 %
5 %
Global Print
223
230
-3 %
-4 %
-4 %
Eliminations/Rounding
(17)
(11)
Total Revenues
$4,041
$3,685
10 %
9 %
8 %
Adjusted EBITDA(1)
Legal Professionals
$736
$675
9 %
9 %
Corporates
443
387
15 %
14 %
Tax, Audit & Accounting Professionals
341
318
7 %
6 %
"Big 3" Segments Combined(1)
1,520
1,380
10 %
9 %
Reuters
82
84
-3 %
4 %
Global Print
85
85
0 %
-1 %
Corporate costs
(61)
(62)
n/a
n/a
Total Adjusted EBITDA
$1,626
$1,487
9 %
9 %
Adjusted EBITDA Margin(1)
Legal Professionals
48.2 %
48.4 %
-20bp
-20bp
Corporates
38.7 %
37.6 %
110bp
130bp
Tax, Audit & Accounting Professionals
47.3 %
48.9 %
-160bp
-140bp
"Big 3" Segments Combined(1)
44.8 %
44.9 %
-10bp
0bp
Reuters
18.6 %
20.4 %
-180bp
-50bp
Global Print
38.2 %
36.9 %
130bp
120bp
Total Adjusted EBITDA Margin
40.2 %
40.1 %
10bp
30bp
(1) The company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial measures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue.
(2) For comparative purposes, 2025 segment results have been revised to reflect the current period presentation. For additional information, including a summary of how the changes impacted results for the three and six months ended June 30, 2025, see the "Revision to Prior-Year Segment Results" section of this news release.
(3) Computed for revenue growth only.
n/a: not applicable
2026 Outlook
The company raised its 2026 full-year outlook for total and organic revenue growth for the total company and its "Big 3" segments to reflect the performance of its businesses during the first six months of the year. All other metrics are unchanged from the previous 2026 full-year outlook communicated on May 5, 2026.
The company's outlook for 2026 in the table below assumes constant currency rates and incorporates the February 2026 Noetica acquisition, but excludes the impact of any future acquisitions or dispositions that may occur during the remainder of the year. Thomson Reuters believes that this type of guidance provides useful insight into the anticipated performance of its businesses.
The company signed a definitive agreement to enter into a joint venture with KKR. As part of the transaction, Thomson Reuters will sell a 51% stake in its Global Print business to capital accounts advised by KKR. Thomson Reuters will receive approximately $500 million in gross proceeds at closing. The transaction is expected to close in the fourth quarter of 2026, subject to specified regulatory approvals and customary closing conditions. The company's full-year 2026 outlook includes the forecasted results of the Global Print segment, consistent with its prior 2026 full-year outlooks. The company will report its Global Print business as a discontinued operation when it releases its third quarter results and plans to provide an updated full-year 2026 outlook at that time.
The company's 2026 outlook is forward-looking information that is subject to risks and uncertainties (see "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions"). In particular, the company continues to operate in an uncertain macroeconomic environment, reflecting ongoing geopolitical risk, uneven economic growth, and an evolving interest rate and inflationary backdrop. Any worsening of the global economic or business environment, among other factors, could impact the company's ability to achieve its outlook.
Reported Full-Year 2025 Results and Full-Year 2026 Outlook
Total Thomson Reuters
FY 2025
Reported
FY 2026
Outlook
2/5/2026
FY 2026
Outlook
5/5/2026
FY 2026
Outlook
8/5/2026
Total Revenue Growth
3%(2)
7.5% - 8.0%
Unchanged
~ 8.0%
Organic Revenue Growth(1)
7 %
7.5% - 8.0%
Unchanged
~ 8.0%
Adjusted EBITDA Margin(1)
39.2 %
+100bps vs 2025
Unchanged
Unchanged
Corporate Costs
$118 million
$115 - $125 million
Unchanged
Unchanged
Free Cash Flow(1)
$1.95 billion
~ $2.1 billion
Unchanged
Unchanged
Accrued Capex as % of Revenues(1)
8.2 %
~ 8.0%
Unchanged
Unchanged
Depreciation & Amortization of
Software
Depreciation & Amortization of
Internally Developed Software
Amortization of Acquired Software
$832 million
$626 million
$206 million
$890- $910 million
$680 - $690 million
$210 - $220 million
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Unchanged
Net Interest Expense
$143 million
$150 - $160 million
$180 - $190 million
Unchanged
Effective Tax Rate on Adjusted
Earnings(1)
18.5 %
~ 19%
Unchanged
Unchanged
"Big 3" Segments(1)
FY 2025
Reported
FY 2026
Outlook
2/5/2026
FY 2026
Outlook
5/5/2026
FY 2026
Outlook
8/5/2026
Total Revenue Growth
4%(2)
~ 9.5%
Unchanged
9.5% - 10.0%
Organic Revenue Growth
9 %
~ 9.5%
Unchanged
9.5% - 10.0%
Adjusted EBITDA Margin
43.6 %
+100bps vs 2025
Unchanged
Unchanged
(1)
Non-IFRS financial measures. See the "Non-IFRS Financial Measures" section below as well as the tables appended to this news release for more information.
(2)
Total revenue growth reflects the impact of the disposals of FindLaw and other non-core businesses in December 2024.
The company's third-quarter 2026 outlook includes the forecasted results of the Global Print segment, consistent with its prior 2026 quarterly outlooks. The company expects its third-quarter 2026 organic revenue growth to be approximately 8% and its adjusted EBITDA margin to be approximately 36%.
The information in this section is forward-looking. Actual results, which will include the impact of currency, and future acquisitions and dispositions completed during 2026 may differ materially from the company's 2026 outlook. The information in this section should also be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions."
Global Print Transaction
On July 14, 2026, Thomson Reuters announced that it signed a definitive agreement to enter into a joint venture with KKR, a leading global investment firm. As part of the transaction, Thomson Reuters will sell a 51% stake in its Global Print business to capital accounts advised by KKR and retain a 49% equity interest in the joint venture. Thomson Reuters will receive approximately $500 million in gross proceeds at closing and expects the transaction to close in the fourth quarter of 2026, subject to specified regulatory approvals and customary closing conditions. We expect to record a pre-tax gain on the transaction at the time of closing.
Thomson Reuters will also maintain intellectual property rights and full editorial control over its content portfolio. This new joint venture will hold an exclusive license to distribute the content in print and on ProView, Global Print's eBook platform, under which it will pay Thomson Reuters a royalty in return.
The transaction is not subject to any financing conditions. As part of the transaction, Thomson Reuters has agreed to provide certain financial support designed to give KKR a minimum return on its equity investment in the joint venture under certain circumstances.
The Global Print business will be classified as a discontinued operation in the third quarter of 2026 and will no longer be a reportable segment.
Return of Capital and Share Consolidation
On May 4, 2026, the company returned $605 million to its shareholders and reduced its common shares outstanding by approximately 6.5 million, in accordance with its previously announced return of capital and share consolidation transactions. The transactions consisted of a special cash distribution of $1.435518 per participating common share and a share consolidation, or "reverse stock split", which reduced the number of outstanding common shares at a ratio of 1 pre-consolidated share for 0.984560 post-consolidated shares, which was proportional to the special cash distribution.
$600 Million Share Repurchase Program and Common Shares Outstanding
In February 2026, the company announced its plan to repurchase up to $600 million of additional common shares under an amended Normal Course Issuer Bid that was approved by the TSX. In July 2026, the company completed the program, repurchasing a total of 6.2 million common shares for $600 million, consisting of 3.6 million shares for $362 million through June 30, 2026 and 2.6 million shares for $238 million in July 2026.
As of August 3, 2026, Thomson Reuters had approximately 433.2 million common shares outstanding.
Debt Repayment
In May 2026, the company repaid its $500 million 3.35% notes upon maturity with cash on hand and commercial paper borrowings.
Dividends
In February 2026, the company announced a 10% or $0.24 per share annualized increase in the dividend to $2.62 per common share, representing the 33rd consecutive year of dividend increases and the fifth consecutive 10% increase. A quarterly dividend of $0.655 per share is payable on September 10, 2026 to common shareholders of record as of August 19, 2026.
Thomson Reuters
Thomson Reuters (TSX/Nasdaq: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, audit, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit thomsonreuters.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
This news release includes certain non-IFRS financial measures, which include ratios that incorporate one or more non-IFRS financial measures, such as adjusted EBITDA (other than at the customer segment level) and the related margin, free cash flow, adjusted earnings and the effective tax rate on adjusted earnings, adjusted EPS, accrued capital expenditures expressed as a percentage of revenues, net debt and leverage ratio of net debt to adjusted EBITDA, selected measures excluding the impact of foreign currency, changes in revenues computed on an organic basis as well as all financial measures for the "Big 3" segments.
Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position as well as for internal planning purposes and the company's business outlook. Additionally, Thomson Reuters uses non-IFRS measures as the basis for management incentive programs. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables.
The company's outlook contains various non-IFRS financial measures. The company believes that providing reconciliations of forward-looking non-IFRS financial measures in its outlook would be potentially misleading and not practical due to the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, for purposes of its outlook only, the company is unable to reconcile these non-IFRS measures to the most directly comparable IFRS measures because it cannot predict, with reasonable certainty, the impacts of changes in foreign exchange rates which impact (i) the translation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related to intercompany financing arrangements. Additionally, the company cannot reasonably predict the occurrence or amount of other operating gains and losses that generally arise from business transactions that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports its results in millions of U.S. dollars, but computes percentage changes and margins using whole dollars to be more precise. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
REVISION TO PRIOR-YEAR SEGMENT RESULTS
In the first quarter of 2026, the company changed its segment reporting to reflect how it currently manages its segments. The change reflects the transfer of certain customers and their related revenues and expenses among the company's Legal Professionals, Corporates and Tax, Audit & Accounting Professionals segments. These changes impact the financial results of the company's segments, but do not change its consolidated financial results. The following summarizes the changes to the applicable segment's reported amounts.
Three months ended June 30, 2025
Legal Professionals revenues decreased $5 million to $704 million, adjusted EBITDA was unchanged at $339 million and adjusted EBITDA margin increased 30 basis points to 48.1%; Corporates revenues increased $8 million to $480 million, adjusted EBITDA increased $3 million to $172 million and adjusted EBITDA margin was unchanged at 35.7%; and Tax, Audit & Accounting Professionals revenues decreased $3 million to $274 million, adjusted EBITDA decreased $3 million to $110 million and adjusted EBITDA margin decreased 40 basis points to 38.9%. Six months ended June 30, 2025
Legal Professionals revenues decreased $10 million to $1,392 million, adjusted EBITDA was unchanged at $675 million and adjusted EBITDA margin increased 30 basis points to 48.4%; Corporates revenues increased $15 million to $1,028 million, adjusted EBITDA increased $5 million to $387 million and adjusted EBITDA margin decreased 10 basis points to 37.6%; and Tax, Audit & Accounting Professionals revenues decreased $5 million to $632 million, adjusted EBITDA decreased $5 million to $318 million and adjusted EBITDA margin decreased 20 basis points to 48.9%. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including, but not limited to, statements in Mr. Hasker's comments, the "2026 Outlook" section, and statements regarding the company's expectations with respect to the Global Print transaction including its current expectation that the transaction will close in the fourth quarter of 2026 are forward looking. The words "will", "expect", "believe", "target", "estimate", "could", "should", "intend", "predict", "project" and similar expressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-looking statements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of the other events described in any forward-looking statement will materialize. Forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from current expectations. Many of these risks, uncertainties and assumptions are beyond the company's control and the effects of them can be difficult to predict.
Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, those discussed on pages 19-32 in the "Risk Factors" section of the company's 2025 annual report. These and other risk factors are discussed in materials that Thomson Reuters from time-to-time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission (SEC). Thomson Reuters' annual and quarterly reports are also available in the "Investor Relations" section of thomsonreuters.com.
The company's 2026 business outlook is based on information currently available to the company and is based on various external and internal assumptions made by the company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the company believes are appropriate under the circumstances. Material assumptions and material risks may cause actual performance to differ from the company's expectations underlying its 2026 business outlook. In particular, the global economy has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomic backdrop and ongoing geopolitical risks. The company's 2026 business outlook assumes that uncertain macroeconomic and geopolitical conditions will continue to disrupt the economy and cause periods of volatility, however, these conditions may last substantially longer than expected and any worsening of the global economic or business environment could impact the company's ability to achieve its outlook and affect its results and other expectations. For a discussion of material assumptions and material risks related to the company's 2026 outlook see pages 16-17 of the company's first-quarter management's discussion and analysis (MD&A) for the period ended March 31, 2026. The company's quarterly MD&A and annual report were filed with, or furnished to, the Canadian securities regulatory authorities and the U.S. SEC and are also available in the "Investor Relations" section of thomsonreuters.com.
The company has provided an outlook for the purpose of presenting information about current expectations for the period presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.
Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.
CONTACTS
Thomson Reuters will webcast a discussion of its second-quarter 2026 results and its 2026 business outlook today beginning at 8:30 a.m. Eastern Daylight Time (EDT). You can access the webcast by visiting ir.thomsonreuters.com. An archive of the webcast will be available following the presentation.
Thomson Reuters Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
CONTINUING OPERATIONS
Revenues
$1,954
$1,785
$4,041
$3,685
Operating expenses
(1,211)
(1,124)
(2,414)
(2,232)
Depreciation
(27)
(28)
(55)
(55)
Amortization of software
(201)
(178)
(394)
(352)
Amortization of other identifiable intangible assets
(25)
(24)
(49)
(49)
Other operating gains, net
68
5
68
2
Operating profit
558
436
1,197
999
Finance costs, net:
Net interest expense
(47)
(35)
(86)
(65)
Other finance income (costs)
8
(48)
17
(58)
Income before tax and equity method investments
519
353
1,128
876
Share of post-tax losses in equity method investments
(4)
(4)
(11)
(10)
Tax expense
(71)
(52)
(196)
(144)
Earnings from continuing operations
444
297
921
722
Earnings (loss) from discontinued operations, net of tax
4
16
(14)
25
Net earnings
$448
$313
$907
$747
Earnings attributable to common shareholders
$448
$313
$907
$747
Earnings per share:
Basic and diluted earnings (loss) per share:
From continuing operations
$1.01
$0.66
$2.08
$1.60
From discontinued operations
0.01
0.03
(0.03)
0.05
Basic and diluted earnings per share
$1.02
$0.69
$2.05
$1.65
Basic weighted-average common shares
438,500,639
450,673,826
441,515,334
450,481,106
Diluted weighted-average common shares
438,611,374
451,204,832
441,709,328
451,025,807
Thomson Reuters Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited)
June 30,
December 31,
2026
2025
Assets
Cash and cash equivalents
$577
$511
Trade and other receivables
1,127
1,143
Other financial assets
116
94
Prepaid expenses and other current assets
449
480
Current assets
2,269
2,228
Property and equipment, net
342
361
Software, net
1,711
1,645
Other identifiable intangible assets, net
3,058
3,102
Goodwill
8,094
7,913
Equity method investments
168
202
Other financial assets
469
466
Other non-current assets
705
680
Deferred tax
1,263
1,343
Total assets
$18,079
$17,940
Liabilities and equity
Liabilities
Current indebtedness
$1,618
$795
Payables, accruals and provisions
1,014
1,090
Current tax liabilities
240
224
Deferred revenue
1,256
1,251
Other financial liabilities
318
108
Current liabilities
4,446
3,468
Long-term indebtedness
1,323
1,328
Provisions and other non-current liabilities
597
656
Other financial liabilities
206
210
Deferred tax
382
364
Total liabilities
6,954
6,026
Equity
Capital
3,031
3,597
Retained earnings
9,047
9,220
Accumulated other comprehensive loss
(953)
(903)
Total equity
11,125
11,914
Total liabilities and equity
$18,079
$17,940
Thomson Reuters Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Cash provided by (used in):
Operating activities
Earnings from continuing operations
$444
$297
$921
$722
Adjustments for:
Depreciation
27
28
55
55
Amortization of software
201
178
394
352
Amortization of other identifiable intangible assets
25
24
49
49
Share of post-tax losses in equity method investments
4
4
11
10
Deferred tax
12
(1)
48
18
Other
1
105
47
169
Changes in working capital and other items
207
107
(98)
(186)
Operating cash flows from continuing operations
921
742
1,427
1,189
Operating cash flows from discontinued operations
(1)
4
(2)
2
Net cash provided by operating activities
920
746
1,425
1,191
Investing activities
Acquisitions, net of cash acquired
(36)
(24)
(248)
(630)
Proceeds related to disposals of businesses and investments, net of
taxes
7
5
8
5
Capital expenditures
(177)
(163)
(333)
(314)
Other investing activities
-
-
-
1
Net cash used in investing activities
(206)
(182)
(573)
(938)
Financing activities
Repayments of debt
(500)
(999)
(500)
(999)
Net borrowings under short-term loan facilities
983
-
1,305
-
Payments of lease principal
(15)
(16)
(31)
(33)
Payments for return of capital on common shares
(605)
-
(605)
-
Repurchases of common shares
(100)
-
(362)
-
Dividends paid on preference shares
(1)
(1)
(2)
(2)
Dividends paid on common shares
(275)
(260)
(555)
(519)
Other financing activities
(24)
1
(35)
(10)
Net cash used in financing activities
(537)
(1,275)
(785)
(1,563)
Translation adjustments
-
4
(1)
6
Increase (decrease) in cash and cash equivalents
177
(707)
66
(1,304)
Cash and cash equivalents at beginning of period
400
1,371
511
1,968
Cash and cash equivalents at end of period
$577
$664
$577
$664
Thomson Reuters Corporation
Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA(1)
(millions of U.S. dollars)
(unaudited)
Three months ended
June 30,
Six months ended
June 30,
Year ended
December 31,
2026
2025
2026
2025
2025
Earnings from continuing operations
$444
$297
$921
$722
$1,483
Adjustments to remove:
Tax expense
71
52
196
144
423
Other finance (income) costs
(8)
48
(17)
58
55
Net interest expense
47
35
86
65
143
Amortization of other identifiable intangible assets
25
24
49
49
98
Amortization of software
201
178
394
352
721
Depreciation
27
28
55
55
111
EBITDA
$807
$662
$1,684
$1,445
$3,034
Adjustments to remove:
Share of post-tax losses in equity method investments
4
4
11
10
28
Other operating gains, net
(68)
(5)
(68)
(2)
(164)
Fair value adjustments*
2
17
(1)
34
38
Adjusted EBITDA(1)
$745
$678
$1,626
$1,487
$2,936
Adjusted EBITDA margin(1)
38.1 %
37.8 %
40.2 %
40.1 %
39.2 %
* Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.
Thomson Reuters Corporation
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow(1)
(millions of U.S. dollars)
(unaudited)
Three months ended
June 30,
Six months ended
June 30,
Year ended
December 31,
2026
2025
2026
2025
2025
Net cash provided by operating activities
$920
$746
$1,425
$1,191
$2,651
Capital expenditures
(177)
(163)
(333)
(314)
(634)
Other investing activities
-
-
-
1
1
Payments of lease principal
(15)
(16)
(31)
(33)
(64)
Dividends paid on preference shares
(1)
(1)
(2)
(2)
(4)
Free cash flow(1)
$727
$566
$1,059
$843
$1,950
Thomson Reuters Corporation
Reconciliation of Capital Expenditures to Accrued Capital Expenditures(1)
(millions of U.S. dollars)
(unaudited)
Year ended
December 31,
2025
Capital expenditures
$634
Remove: IFRS adjustment to cash basis
(18)
Accrued capital expenditures(1)
$616
Accrued capital expenditures as a percentage of revenues(1)
8.2 %
(1)
Refer to page 22 for additional information on non-IFRS financial measures.
Thomson Reuters Corporation
Reconciliation of Net Earnings to Adjusted Earnings(1)
Reconciliation of Total Change in Adjusted EPS to Change in Constant Currency(1)
(millions of U.S. dollars, except for share and per share data)
(unaudited)
Three months ended
June 30,
Six months ended
June 30,
Year ended
December 31,
2026
2025
2026
2025
2025
Net earnings
$448
$313
$907
$747
$1,502
Adjustments to remove:
Fair value adjustments*
2
17
(1)
34
38
Amortization of acquired software
60
52
116
101
206
Amortization of other identifiable intangible assets
25
24
49
49
98
Other operating gains, net
(68)
(5)
(68)
(2)
(164)
Other finance (income) costs
(8)
48
(17)
58
55
Share of post-tax losses in equity method investments
4
4
11
10
28
Tax on above items(1)
(20)
(22)
(34)
(46)
(35)
Tax items impacting comparability(1)
(3)
(21)
(4)
(20)
57
(Earnings) loss from discontinued operations, net of tax
(4)
(16)
14
(25)
(19)
Interim period effective tax rate normalization(1)
-
1
11
(4)
-
Dividends declared on preference shares
(1)
(1)
(2)
(2)
(4)
Adjusted earnings(1)
$435
$394
$982
$900
$1,762
Adjusted EPS(1)
$0.99
$0.87
$2.22
$2.00
Total change
14 %
11 %
Foreign currency
1 %
1 %
Constant currency
13 %
11 %
Diluted weighted-average common shares (millions)
438.6
451.2
441.7
451.0
Reconciliation of Full-Year Effective Tax Rate on Adjusted Earnings(1)
Year ended
December 31,
2025
Adjusted earnings
$1,762
Plus: Dividends declared on preference shares
4
Plus: Tax expense on adjusted earnings
401
Pre-tax adjusted earnings
$2,167
IFRS tax expense
$423
Remove tax related to:
Amortization of acquired software
46
Amortization of other identifiable intangible assets
23
Share of post-tax losses in equity method investments
2
Other finance costs
2
Other operating gains, net
(43)
Other items
5
Subtotal - Remove tax benefit on pre-tax items removed from adjusted earnings
35
Remove: Tax items impacting comparability
(57)
Total - Remove all items impacting comparability
(22)
Tax expense on adjusted earnings
$401
Effective tax rate on adjusted earnings
18.5 %
*Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.
(1) Refer to page 22 for additional information on non-IFRS financial measures.
Thomson Reuters Corporation
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis(1)
(millions of U.S. dollars)
(unaudited)
Three months ended
June 30,
Change
2026
2025
Total
Foreign
Currency
SUBTOTAL
Constant
Currency
Net
Acquisitions/
(Disposals)
Organic
Total Revenues
Legal Professionals
$772
$704
10 %
0 %
9 %
0 %
10 %
Corporates
537
480
12 %
1 %
11 %
0 %
10 %
Tax, Audit & Accounting Professionals
311
274
14 %
2 %
12 %
4 %
8 %
"Big 3" Segments Combined(1)
1,620
1,458
11 %
1 %
10 %
1 %
10 %
Reuters
229
218
5 %
0 %
5 %
1 %
4 %
Global Print
111
114
-3 %
0 %
-3 %
0 %
-3 %
Eliminations/Rounding
(6)
(5)
Total Revenues
$1,954
$1,785
9 %
1 %
9 %
1 %
8 %
Recurring Revenues
Legal Professionals
$748
$684
10 %
0 %
9 %
0 %
9 %
Corporates
462
421
10 %
1 %
9 %
0 %
9 %
Tax, Audit & Accounting Professionals
209
187
12 %
2 %
9 %
0 %
9 %
"Big 3" Segments Combined(1)
1,419
1,292
10 %
1 %
9 %
0 %
9 %
Reuters
188
176
7 %
0 %
6 %
1 %
6 %
Eliminations/Rounding
(6)
(5)
Total Recurring Revenues
$1,601
$1,463
9 %
1 %
9 %
0 %
9 %
Transactions Revenues
Legal Professionals
$24
$20
16 %
0 %
16 %
-2 %
18 %
Corporates
75
59
27 %
0 %
27 %
3 %
24 %
Tax, Audit & Accounting Professionals
102
87
17 %
0 %
17 %
11 %
6 %
"Big 3" Segments Combined(1)
201
166
21 %
0 %
20 %
7 %
13 %
Reuters
41
42
-2 %
-3 %
1 %
1 %
-1 %
Eliminations/Rounding
-
-
Total Transactions Revenues
$242
$208
16 %
0 %
16 %
6 %
11 %
Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
Refer to page 22 for additional information on non-IFRS financial measures.
Thomson Reuters Corporation
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis(1)
(millions of U.S. dollars)
(unaudited)
Six months ended
June 30,
Change
2026
2025
Total
Foreign
Currency
SUBTOTAL
Constant
Currency
Net
Acquisitions/
(Disposals)
Organic
Total Revenues
Legal Professionals
$1,528
$1,392
10 %
1 %
9 %
0 %
9 %
Corporates
1,145
1,028
11 %
1 %
10 %
0 %
10 %
Tax, Audit & Accounting Professionals
721
632
14 %
1 %
13 %
3 %
9 %
"Big 3" Segments Combined(1)
3,394
3,052
11 %
1 %
10 %
1 %
9 %
Reuters
441
414
6 %
0 %
6 %
1 %
5 %
Global Print
223
230
-3 %
1 %
-4 %
0 %
-4 %
Eliminations/Rounding
(17)
(11)
Total Revenues
$4,041
$3,685
10 %
1 %
9 %
1 %
8 %
Recurring Revenues
Legal Professionals
$1,487
$1,354
10 %
1 %
9 %
0 %
9 %
Corporates
911
828
10 %
1 %
8 %
0 %
8 %
Tax, Audit & Accounting Professionals
438
392
12 %
2 %
10 %
0 %
10 %
"Big 3" Segments Combined(1)
2,836
2,574
10 %
1 %
9 %
0 %
9 %
Reuters
374
351
7 %
1 %
6 %
1 %
5 %
Eliminations/Rounding
(14)
(11)
Total Recurring Revenues
$3,196
$2,914
10 %
1 %
9 %
0 %
8 %
Transactions Revenues
Legal Professionals
$41
$38
8 %
1 %
8 %
-1 %
9 %
Corporates
234
200
17 %
1 %
17 %
1 %
16 %
Tax, Audit & Accounting Professionals
283
240
18 %
0 %
18 %
9 %
9 %
"Big 3" Segments Combined(1)
558
478
17 %
0 %
17 %
5 %
12 %
Reuters
67
63
6 %
-2 %
8 %
2 %
6 %
Eliminations/Rounding
(3)
-
Total Transactions Revenues
$622
$541
15 %
0 %
15 %
4 %
10 %
Year ended
December 31,
Change
2025
2024
Total
Foreign
Currency
SUBTOTAL
Constant
Currency
Net
Acquisitions/
(Disposals)
Organic
Total Revenues
Legal Professionals
$2,843
$2,902
-2 %
0 %
-2 %
-10 %
8 %
Corporates
2,023
1,875
8 %
0 %
7 %
-1 %
9 %
Tax, Audit & Accounting Professionals
1,291
1,154
12 %
-1 %
13 %
3 %
11 %
"Big 3" Segments Combined(1)
6,157
5,931
4 %
0 %
4 %
-5 %
9 %
Reuters
853
832
3 %
1 %
2 %
1 %
1 %
Global Print
490
519
-6 %
0 %
-5 %
0 %
-5 %
Eliminations/Rounding
(24)
(24)
Total Revenues
$7,476
$7,258
3 %
0 %
3 %
-4 %
7 %
Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
Refer to page 22 for additional information on non-IFRS financial measures.
Thomson Reuters Corporation
Reconciliation of Changes in Adjusted EBITDA (1) and Related Margin(1) to Changes on a Constant Currency Basis(1)
(millions of U.S. dollars)
(unaudited)
Three months ended
June 30,
Change
2026
2025
Total
Foreign
Currency
Constant
Currency
Adjusted EBITDA(1)
Legal Professionals
$371
$339
10 %
0 %
9 %
Corporates
200
172
17 %
2 %
15 %
Tax, Audit & Accounting Professionals
120
110
9 %
2 %
7 %
"Big 3" Segments Combined(1)
691
621
12 %
1 %
10 %
Reuters
48
45
5 %
-5 %
10 %
Global Print
42
41
2 %
1 %
1 %
Corporate costs
(36)
(29)
n/a
n/a
n/a
Total Adjusted EBITDA
$745
$678
10 %
1 %
9 %
Adjusted EBITDA Margin(1)
Legal Professionals
48.1 %
48.1 %
0bp
10bp
-10bp
Corporates
37.2 %
35.7 %
150bp
20bp
130bp
Tax, Audit & Accounting Professionals
38.7 %
38.9 %
-20bp
20bp
-40bp
"Big 3" Segments Combined(1)
42.7 %
42.3 %
40bp
10bp
30bp
Reuters
20.8 %
20.8 %
0bp
-80bp
80bp
Global Print
37.7 %
36.0 %
170bp
20bp
150bp
Total Adjusted EBITDA Margin
38.1 %
37.8 %
30bp
10bp
20bp
Thomson Reuters Corporation
Reconciliation of Changes in Adjusted EBITDA (1) and Related Margin(1) to Changes on a Constant Currency Basis(1)
(millions of U.S. dollars)
(unaudited)
Six months ended
June 30,
Change
2026
2025
Total
Foreign
Currency
Constant
Currency
Adjusted EBITDA(1)
Legal Professionals
$736
$675
9 %
1 %
9 %
Corporates
443
387
15 %
1 %
14 %
Tax, Audit & Accounting Professionals
341
318
7 %
1 %
6 %
"Big 3" Segments Combined(1)
1,520
1,380
10 %
1 %
9 %
Reuters
82
84
-3 %
-7 %
4 %
Global Print
85
85
0 %
1 %
-1 %
Corporate costs
(61)
(62)
n/a
n/a
n/a
Total Adjusted EBITDA
$1,626
$1,487
9 %
0 %
9 %
Adjusted EBITDA Margin(1)
Legal Professionals
48.2 %
48.4 %
-20bp
0bp
-20bp
Corporates
38.7 %
37.6 %
110bp
-20bp
130bp
Tax, Audit & Accounting Professionals
47.3 %
48.9 %
-160bp
-20bp
-140bp
"Big 3" Segments Combined(1)
44.8 %
44.9 %
-10bp
-10bp
0bp
Reuters
18.6 %
20.4 %
-180bp
-130bp
-50bp
Global Print
38.2 %
36.9 %
130bp
10bp
120bp
Total Adjusted EBITDA Margin
40.2 %
40.1 %
10bp
-20bp
30bp
n/a: not applicable
Growth percentages and margins are computed using whole dollars. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
Refer to page 22 for additional information on non-IFRS financial measures.
Reconciliation of adjusted EBITDA margin(1)
To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue from its IFRS revenues. The charts below reconcile IFRS revenues to revenues used in the calculation of adjusted EBITDA margin, which excludes fair value adjustments related to acquired deferred revenue.
(millions of U.S. dollars)
(unaudited)
Three months ended June 30, 2026
IFRS
revenues
Remove fair
value
adjustments
to acquired
deferred
revenue
Revenues
excluding
fair value
adjustments
to acquired
deferred
revenue
Adjusted
EBITDA
Adjusted
EBITDA
Margin
Legal Professionals
$772
-
$772
$371
48.1 %
Corporates
537
-
537
200
37.2 %
Tax, Audit & Accounting Professionals
311
-
311
120
38.7 %
"Big 3" Segments Combined(1)
1,620
-
1,620
691
42.7 %
Reuters
229
-
229
48
20.8 %
Global Print
111
-
111
42
37.7 %
Eliminations/Rounding
(6)
-
(6)
-
n/a
Corporate costs
-
-
-
(36)
n/a
Consolidated totals
$1,954
-
$1,954
$745
38.1 %
Six months ended June 30, 2026
Legal Professionals
$1,528
-
$1,528
$736
48.2 %
Corporates
1,145
-
1,145
443
38.7 %
Tax, Audit & Accounting Professionals
721
-
721
341
47.3 %
"Big 3" Segments Combined(1)
3,394
-
3,394
1,520
44.8 %
Reuters
441
-
441
82
18.6 %
Global Print
223
-
223
85
38.2 %
Eliminations/Rounding
(17)
-
(17)
-
n/a
Corporate costs
-
-
-
(61)
n/a
Consolidated totals
$4,041
-
$4,041
$1,626
40.2 %
Three months ended June 30, 2025
Legal Professionals
$704
-
$704
$339
48.1 %
Corporates
480
-
480
172
35.7 %
Tax, Audit & Accounting Professionals
274
$10
284
110
38.9 %
"Big 3" Segments Combined(1)
1,458
10
1,468
621
42.3 %
Reuters
218
-
218
45
20.8 %
Global Print
114
-
114
41
36.0 %
Eliminations/Rounding
(5)
-
(5)
-
n/a
Corporate costs
-
-
-
(29)
n/a
Consolidated totals
$1,785
$10
$1,795
$678
37.8 %
Six months ended June 30, 2025
Legal Professionals
$1,392
-
$1,392
$675
48.4 %
Corporates
1,028
-
1,028
387
37.6 %
Tax, Audit & Accounting Professionals
632
$20
652
318
48.9 %
"Big 3" Segments Combined(1)
3,052
20
3,072
1,380
44.9 %
Reuters
414
-
414
84
20.4 %
Global Print
230
-
230
85
36.9 %
Eliminations/Rounding
(11)
-
(11)
-
n/a
Corporate costs
-
-
-
(62)
n/a
Consolidated totals
$3,685
$20
$3,705
$1,487
40.1 %
n/a: not applicable
Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding.
(1) Refer to page 22 for additional information on non-IFRS financial measures.
Thomson Reuters Corporation
"Big 3" Segments and Consolidated Adjusted EBITDA(1) and the Related Margins(1)
(millions of U.S. dollars)
(unaudited)
Year ended
December 31,
2025
Adjusted EBITDA(1)
Legal Professionals
$1,354
Corporates
727
Tax, Audit & Accounting Professionals
614
"Big 3" Segments Combined(1)
2,695
Reuters
174
Global Print
185
Corporate costs
(118)
Total Adjusted EBITDA
$2,936
"Big 3" Segments Combined(1)
Adjusted EBITDA
$2,695
Revenues, excluding $20 million of fair value adjustments to acquired deferred revenue
$6,177
Adjusted EBITDA margin
43.6 %
Consolidated(1)
Adjusted EBITDA
$2,936
Revenues, excluding $20 million of fair value adjustments to acquired deferred revenue
$7,496
Adjusted EBITDA margin
39.2 %
Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding.
Thomson Reuters Corporation
Reconciliation of Net Debt(1) and Leverage Ratio of Net Debt to Adjusted EBITDA(1)
(millions of U.S. dollars)
(unaudited)
June 30,
December 31,
2026
2025
Current indebtedness
$1,618
$795
Long-term indebtedness
1,323
1,328
Total debt
2,941
2,123
Swaps
23
16
Total debt after swaps
2,964
2,139
Remove fair value adjustments for hedges
(3)
(2)
Total debt after hedging arrangements
2,961
2,137
Collateral assets
(25)
(7)
Remove transaction costs, premiums or discounts, included in the carrying value of debt
28
28
Add: Lease liabilities (current and non-current)
241
249
Less: Cash and cash equivalents
(577)
(511)
Net debt
$2,628
$1,896
Leverage ratio of net debt to adjusted EBITDA
Adjusted EBITDA
$3,075
$2,936
Net debt/adjusted EBITDA
0.9:1
0.6:1
(1) Refer to page 22 for additional information on non-IFRS financial measures.
Non-IFRS Financial Measures
Definition
Why Useful to the Company and Investors
Adjusted EBITDA and the related margin
Represents earnings or losses from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of software and other identifiable intangible assets, Thomson Reuters share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges and fair value adjustments, including those related to acquired deferred revenue. The related margin is adjusted EBITDA expressed as a percentage of revenues. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue.
Provides a consistent basis to evaluate operating profitability and performance trends by excluding items that the company does not consider to be controllable activities for this purpose. Also, represents a measure commonly reported and widely used by investors as a valuation metric, as well as to assess the company's ability to incur and service debt.
Adjusted earnings and adjusted EPS
Net earnings or loss including dividends declared on preference shares but excluding the post-tax impacts of fair value adjustments, including those related to acquired deferred revenue, amortization of acquired intangible assets (attributable to other identifiable intangible assets and acquired software), other operating gains and losses, certain asset impairment charges, other finance costs or income, Thomson Reuters share of post-tax earnings or losses in equity method investments, discontinued operations and other items affecting comparability. Acquired intangible assets contribute to the generation of revenues from acquired companies, which are included in the company's computation of adjusted earnings.
The post-tax amount of each item is excluded from adjusted earnings based on the specific tax rules and tax rates associated with the nature and jurisdiction of each item.
Adjusted EPS is calculated from adjusted earnings using diluted weighted-average shares and does not represent actual earnings or loss per share attributable to shareholders.
Provides a more comparable basis to analyze earnings.
These measures are commonly used by shareholders to measure performance.
Effective tax rate on adjusted earnings
Adjusted tax expense divided by pre-tax adjusted earnings. Adjusted tax expense is computed as income tax expense or benefit plus or minus the income tax impacts of all items impacting adjusted earnings (as described above), and other tax items impacting comparability.
In interim periods, the company also makes an adjustment to reflect income taxes based on the estimated full-year effective tax rate. Earnings or losses for interim periods under IFRS reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which Thomson Reuters operates. The non-IFRS adjustment reallocates estimated full-year income taxes between interim periods but has no effect on full-year income taxes.
Provides a basis to analyze the effective tax rate associated with adjusted earnings.
The company's effective tax rate computed in accordance with IFRS may be more volatile by quarter because the geographical mix of pre-tax profits and losses in interim periods may be different from that for the full year. Therefore, the company believes that using the expected full-year effective tax rate provides more comparability among interim periods.
Free cash flow
Net cash provided by operating activities and other investing activities, less capital expenditures, payments of lease principal and dividends paid on the company's preference shares.
Helps assess the company's ability, over the long term, to create value for its shareholders as it represents cash available to repay debt, pay common dividends, fund share repurchases and acquisitions.
Changes before the impact of foreign currency or at constant currency
The changes in revenues, adjusted EBITDA and the related margin, and adjusted EPS before currency (at constant currency or excluding the effects of currency) are determined by converting the current and equivalent prior period's local currency results using the same foreign currency exchange rate.
Provides better comparability of business trends from period to period.
Changes in revenues computed on an organic basis
Represent changes in revenues of the company's existing businesses at constant currency. The metric excludes the distortive impacts of acquisitions and dispositions from not owning the business in both comparable periods.
Provides further insight into the performance of the company's existing businesses by excluding distortive impacts and serves as a better measure of the company's ability to grow its business over the long term.
Accrued capital expenditures as a percentage of revenues
Accrued capital expenditures divided by revenues, where accrued capital expenditures include amounts that remain unpaid at the end of the reporting period. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue.
Reflects the basis on which the company manages capital expenditures for internal planning purposes.
"Big 3" segments
The company's combined Legal Professionals, Corporates and Tax, Audit & Accounting Professionals segments. All measures reported for the "Big 3" segments are non-IFRS financial measures.
The "Big 3" segments comprised approximately 80% of revenues and represent the core of the company's business information service product offerings.
Net debt and leverage ratio of net debt to adjusted EBITDA
Net debt is total debt, plus related hedging instruments and collateral balances, along with lease liabilities, excluding unamortized transaction costs and any premiums or discounts on debt, minus cash and cash equivalents. We exclude specific hedging components to reflect the net cash outflow upon debt maturity.
Net debt to adjusted EBITDA is net debt divided by adjusted EBITDA for the previous twelve-month period ending with the current fiscal quarter.
Provides a commonly used measure of a company's leverage and its ability to pay its debt. Given that the company hedges some of its debt to manage risk, the company includes hedging instruments as it believes it provides a better measure of the total obligation associated with its outstanding debt. Since the company plans to hold its debt and related hedges until maturity, the net debt calculation is adjusted to reflect the net cash outflow at maturity, after deducting cash and cash equivalents.
The company's non-IFRS measure is aligned with the calculation of its internal target leverage ratio and is more conservative than the maximum ratio allowed under the contractual covenants in its credit facility.
Please refer to reconciliations for the most directly comparable IFRS financial measures.
Akamai uvedla Workforce Protector, novou bezpečnostní vrstvu pro řízení využívání AI a ochranu dat v reálném čase. Řešení funguje bez změny síťové architektury a bez dopadu na uživatelský komfort.
Secure AI acceleration: Organizations can confidently adopt and scale AI technologies safely and prevent data exposure.Zero-disruption protection: The solution secures users across existing browsers, SaaS platforms, and desktop applications, without changing the network architecture or impacting the user experience.Redefining workforce security: Akamai Workforce Protector (formerly LayerX) secures the activities of the modern AI-powered workforce — both humans and AI agents — directly at the point of interaction, in real time, with a comprehensive interaction security platform.
CAMBRIDGE, Mass., Aug. 05, 2026 (GLOBE NEWSWIRE) --
Delivering the dedicated interaction security solution for the AI era, Akamai (NASDAQ: AKAM) today announced Akamai Workforce Protector (formerly LayerX), a security layer of a platform that already secures applications, APIs, and infrastructure. The new offering delivers comprehensive visibility, AI usage control, secure enterprise browser capabilities, and real-time data loss prevention and is also natively integrated with Akamai’s global private access solution.
Akamai Workforce Protector governs how employees engage with AI, SaaS, web, and private applications, as well as enterprise data, at the exact point of interaction. This launch also introduces advanced capabilities that extend visibility into modern desktop AI applications and emerging AI workflows.
Workforce Protector enables organizations to perform critical security functions that were previously too complex or disruptive to deploy:
Real-time AI governance: Discover “shadow AI” usage, govern how employees interact with AI tools, and enforce adaptive policies directly inside browser sessions.Zero-disruption deployment: Deploy immediate controls with no user friction. Users do not have to switch browsers, and organizations do not need to redesign their network architecture.Real-time data protection: Prevent critical data loss at the precise moment of interaction, stopping sensitive data from being uploaded to unauthorized AI models or downloaded from enterprise applications to employee endpoints.
According to the Gartner® Market Guide for Secure Enterprise Browsers, by 2028, “25% of organizations will augment existing secure remote access tools by deploying at least one secure enterprise browser technology, up from approximately 10% today.”1
1 GARTNER is a trademark of Gartner, Inc. and/or its affiliates.
Why interaction security matters
Modern enterprise work is no longer confined to fixed assets or physical locations. Instead, it is a continuous stream of interactions — an employee opening a SaaS app, an AI agent calling an API, or a workload reaching across an internal network. Traditional security models designed around zones and perimeters assume assets stay still.
Interaction security flips this paradigm by ensuring security follows the work, applying protection directly at the point of interaction across three domains: the workforce, applications/APIs, and infrastructure. Organizations can now safely accelerate enterprise-wide AI adoption by mitigating data exposure and governance risks at the point of interaction.
“Work is a nonstop flow of digital connections,” said Ofer Wolf, Senior Vice President, General Manager, Enterprise Security at Akamai. “With Akamai Workforce Protector, we’re making sure security follows your people and the AI agents they use wherever they go, rather than just guarding an office building. We want to give companies the safety net they need to embrace AI confidently, without slowing down their teams or forcing anyone to change how they get things done.”
Workforce Protector complements existing security investments, addressing critical gaps left by traditional Security Service Edge (SSE), Cloud Access Security Broker (CASB), and data loss prevention (DLP) tools. It integrates seamlessly into Akamai’s broader security portfolio, allowing enterprises to manage workforce, application, and infrastructure security under a unified vision with unmatched performance and reliability. It also leverages Akamai’s vast distributed network to allow enterprises and their users to seamlessly connect to their applications and infrastructure from anywhere at any time.
To learn more about Workforce Protector and how to secure your workforce’s AI interactions, visit the Akamai Workforce Protector page.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
Akamai varuje, že 5 % vysoce rizikových zaměstnanců generuje většinu firemních AI promptů a vytváří velké mezery v přehledu o „shadow AI“. Zpráva také popisuje tři nové AI útoky, které obcházejí tradiční perimetrální obranu.
The rise of the “AI power user”: Although AI has expanded across every business function, risk is heavily concentrated. A highly active group of power users are driving the vast majority of enterprise AI exposure.The dominance of “shadow AI”: Security teams are suffering from a severe visibility gap, focusing heavily on a few approved platforms while a massive “long tail” of unmanaged apps runs silently beneath the surface.The emergence of AI-native attack vectors: The new report details three novel threat methodologies discovered by researchers in 2026 that bypass traditional perimeter defenses entirely.
CAMBRIDGE, Mass., Aug. 05, 2026 (GLOBE NEWSWIRE) --
Akamai (NASDAQ: AKAM) released a new State of the Internet (SOTI) security report today that details how rogue browser extensions and vulnerable autonomous agents are actively expanding the enterprise threat surface. The Enterprise AI Usage Risk Report 2026 reveals how decentralized shadow AI, highly active AI power users, and silent browser extensions are exposing critical corporate assets to entirely new classes of cyber risk.
The report tracks a profound shift in corporate AI adoption. What began in early 2025 as cautious experimentation has solidified into a structural mandate. However, this rapid integration has outpaced traditional security guardrails.
“AI is no longer just a productivity booster; it is a collaborative colleague with direct access to the corporate crown jewels,” said Or Eshed, Vice President, Enterprise Security Product and Engineering of Akamai. “Traditional data loss prevention tools were built for an era of file transfers and emails. Today, sensitive corporate data is being systematically fragmented across millions of fluid prompts, unmanaged personal accounts, and autonomous AI agents. Security leaders must pivot from trying to block AI to continuously governing how it operates at the interaction level.”
Emerging AI-native attack vectors
The report details three novel threat methodologies discovered by researchers in 2026 that bypass traditional perimeter defenses entirely.
Vibe hacking: Attackers covertly manipulate local markdown instruction files within a developer’s environment. This subtle modification tricks frontier coding assistants into generating insecure outputs or executing unauthorized actions — mimicking a developer’s normal workflow.CursorJacking: Rogue browser extensions exploit broad permissions to silently harvest API keys, proprietary codebases, and conversational history directly from the browser environment. This is a high-impact exploit targeting popular AI coding assistants (like Cursor).CometJacking: By embedding malicious instructions on a public web page, attackers use indirect prompt injection to manipulate the user’s local AI agent. The compromised agent can then exfiltrate local files, emails, and session credentials without the user’s knowledge. This threat targets agentic browsers like Perplexity’s Comet AI.
The 2026 CISO roadmap to secure AI
To capture the economic benefits of AI without exposing critical data, Akamai’s report outlines five core mitigation strategies for modern CISOs.
Target AI power users: Target telemetry, monitoring, and tailored coaching toward the 5% of high-risk employees who are driving the majority of interactive AI prompts.Eliminate shadow AI: Force single sign-on (SSO) federation across all platforms and continuously discover the long tail of niche AI software as a service (SaaS) tools.Inspect the interaction layer: Transition from static DLP to real-time, contextual analysis of prompts, copy/paste buffers, and document uploads.Vet browser and IDE extensions: Treat extensions as highly privileged software. Almost 75% of AI extensions demand high or critical permissions, and 16.3% contain known CVEs.Secure AI agents: Establish strict, least-privilege boundaries and behavioral monitoring for autonomous AI agents that act on behalf of employees.
Now in their 12th year, Akamai’s SOTI reports continue to offer critical insights on cybersecurity trends and web performance, drawn from attacks viewed across Akamai’s cybersecurity infrastructure, which handles a significant portion of global web traffic.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.
NRG Energy vykázala ve 2. čtvrtletí upravenou EBITDA 1,2 miliardy USD, meziročně o 34 % vyšší, a oznámila plán na 1,2GW elektrárnu v Texasu pro datové centrum cloudové a AI firmy.
Energy Vault Electrifies Market With Accelerated GrowthNRG Energy NYSE: NRG reported second-quarter 2026 adjusted EBITDA of $1.2 billion, up 34% from a year earlier, while outlining plans for a 1.2-gigawatt Texas power plant intended to support a cloud and artificial intelligence hyperscaler’s data center load.
President and Chief Executive Officer Robert Gaudette said NRG is aligned on principal commercial terms with the unnamed investment-grade customer. The project remains subject to negotiations, land-related matters and customary internal approvals, but the customer has made a financial commitment to advance development, according to the company.
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Hims, Block, and NRG Just Launched Huge Stock Buybacks The proposed combined-cycle natural gas plant would be developed, owned and operated by NRG. It is planned to serve a 1-gigawatt data center load and could eventually expand the customer relationship to as much as 2.4 GW. Commercial operation for the initial 1.2-GW facility is targeted for late 2029.
Capacity-Payment Structure Supports Proposed Texas Project Gaudette described the arrangement as NRG’s first “bring your own power” project, or BYOP, a model under which new power demand is paired with new generation supported by the customer. He said the facility is designed to add more generation to Texas than the data center is expected to require.
Best Utilities Stocks for Stability and Growth in 2025Under the contemplated structure, NRG would receive capacity payments intended to recover its invested capital and provide its targeted return, while separate payments would recover fuel and operating costs. The company said 95% of the project’s free cash flow would be supported by capacity payments independent of the data center’s utilization rate.
“We’re paid for the megawatts we build and make available, not for how much the data center runs,” Gaudette said. The customer’s obligations would be backed by an investment-grade parent guarantee.
NRG expects the 1.2-GW project to require $3.2 billion of investment, or about $2,700 per kilowatt. At full operation, management expects at least $500 million of annual adjusted EBITDA and approximately $375 million of annual free cash flow before growth. Chief Financial Officer Bruce Chung said the anticipated pre-tax unlevered internal rate of return is within NRG’s 12% to 15% target range, implying an approximately 6-times build multiple at projected run-rate EBITDA.
The initial agreement would have a term of at least 15 years from commercial operation, with potential extensions. Chung said capacity payments would begin immediately upon commercial operation rather than ramping as the data center increases usage.
NRG has secured 5.4 GW of turbine and engineering, procurement and construction capacity through 2032 via GE Vernova and Kiewit. Gaudette said the company’s development pipeline exceeds twice that capacity, with each turbine slot tied to active customer discussions. The company also cited roughly 2 GW of upgrade opportunities across its PJM fleet.
Capital Plan Shifts Funds Toward New Build NRG updated its 2026 capital allocation plan to include $721 million of expected spending on the Texas new-build project. Of that amount, $40 million was reclassified from plant and other investments, while $681 million represents incremental spending funded by reducing planned liability management.
The revised approach means less net debt reduction in 2026 than previously planned, but management said its shareholder-return plans remain unchanged. NRG continues to expect at least $1 billion of annual share repurchases and $407 million in common dividends for 2026. During the first half, the company repurchased $921 million of shares and paid $202 million in dividends.
NRG expects cumulative project investment of about $800 million through the end of 2026, including prior reservation payments, followed by $1 billion in 2027, $1.1 billion in 2028 and $300 million in 2029. About 60% of total investment relates to EPC costs, with the remainder allocated to turbine equipment and other project costs.
Chung said NRG’s base case is to fund the project through operating cash flow and balance-sheet capacity. Under that approach, reaching the company’s 3-times net leverage target would shift from 2028 to 2029. The company may also consider financial partners to improve capital efficiency, though no such arrangement has been announced.
Second-Quarter Results Reflect Acquired Assets, Texas Weakness Adjusted EBITDA rose $308 million year over year, driven primarily by the portfolio acquired from LS Power, higher PJM capacity values and Smart Home growth. Adjusted net income fell to $315 million from $339 million, while adjusted earnings per share declined to $1.49 from $1.73, as acquisition-related interest expense and depreciation and amortization offset EBITDA growth.
Free cash flow before growth was $1.025 billion, up $111 million from the prior-year quarter. Texas adjusted EBITDA declined $131 million, reflecting lower load and power prices. East adjusted EBITDA increased $370 million, primarily due to the LS Power portfolio acquisition. West adjusted EBITDA increased $27 million, aided by lower operating expenses after a facility lease expired last year. Smart Home adjusted EBITDA increased $42 million; customer count reached 2.45 million, up 8% year over year. In Texas, ERCOT Houston around-the-clock prices averaged $33 per megawatt-hour during the quarter, down 8% from a year earlier and below NRG’s $52 planning assumption for 2026. Lower prices and limited volatility reduced generation dispatch and portfolio optimization opportunities, Chung said.
In the East, legacy hedges associated with the acquired assets limited NRG’s ability to fully capture higher PJM power prices. The company also cited higher retail supply costs and an estimated $70 million of incremental 2026 costs associated with Virginia’s return to the Regional Greenhouse Gas Initiative, affecting 1.2 GW of acquired Virginia assets.
Guidance Reaffirmed NRG reaffirmed its 2026 guidance ranges, although Chung said first-half results indicate performance is tracking below the midpoint. He said the company has limited unhedged exposure for the remainder of the year and does not depend on a material recovery in commodity prices to remain within its guidance ranges.
Management said the proposed Texas project is not included in NRG’s previously issued long-term framework, which calls for adjusted EPS compound annual growth of more than 14% through 2030 from the base business. Gaudette said the company intends to maintain its return thresholds and credit protections as it evaluates additional large-load generation projects.
About NRG Energy (NYSE:NRG)NRG Energy NYSE: NRG is a U.S.-based integrated power company headquartered in Houston, Texas. The company develops, owns and operates a diversified portfolio of power generation assets and participates in wholesale and retail energy markets. NRG supplies electricity to utilities, commercial and industrial customers, and retail consumers, while also providing energy-related products and services designed to manage consumption and support reliability.
NRG's generation mix includes conventional thermal plants as well as renewable and distributed energy resources.
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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The New York Times ve 2. čtvrtletí přidala asi 280 tisíc čistých digitálních předplatitelů, méně než čekal trh. Firma zároveň zklamala výhledem tržeb z digitálního předplatného.
People walk by The New York Times building in Manhattan, New York City, U.S., September 16, 2025. REUTERS/Kylie Cooper/File Photo Purchase Licensing Rights, opens new tab
Aug 5 (Reuters) - The New York Times (NYT.N), opens new tab reported slower digital subscriber growth for the second quarter on Wednesday and issued a lackluster digital subscription revenue forecast, sending its shares down more than 8% in premarket trading.
Publishers are operating in a crowded market, where big tech firms and AI platforms impact search and referral traffic, while trust in news is shrinking.
The Reuters Inside Track newsletter is your essential guide to global sports news. Sign up here.
Media outlets such as Axios, CNN and The Verge are jostling to gain more readership in a busy news cycle, putting pressure on publishers such as NYT to gain market share.
NYT has been bundling its news offerings with lifestyle-focused products such as Wirecutter, sports website The Athletic and games including Wordle, as it looks to enhance value for subscribers.
The Times added about 280,000 net digital-only subscribers in the second quarter, compared with analysts' average estimate of 295,300, according to data compiled by Visible Alpha.
NYT had added 310,000 digital-only subscribers in the previous quarter.
The company expects digital-only subscription revenue of 12% to 15%, the mid-point of which was below the estimate of 14.2%.
Total advertising revenue rose by 11.3% to $149.1 million, beating an estimate of $146.4 million.
Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Southwest Gas Holdings oznámila za 2. čtvrtletí zisk z pokračujících činností ve výši 42,1 mil. USD a potvrdila celoroční výhled. Rozhodnutí v Kalifornii přidává asi 40 mil. USD ročních výnosů.
Great Basin Demand Raises 2028 Expansion Project CapEx and Margin Expectations
Constructive CA Rate Case Decision on Items Before Cost of Capital; Final Decision Expected in August
, /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas Holdings" or "Company") today reported results for its second quarter and six-months ended June 30, 2026. This earnings press release should be read in conjunction with the Form 10-Q and earnings slides, which are concurrently being posted at www.swgasholdings.com.
"We're encouraged by the progress our team made this quarter, advancing rate cases in all three states and securing binding commitments for our Great Basin 2028 expansion project," said Justin Brown, President and Chief Executive Officer of Southwest Gas Holdings. "The California Public Utilities Commission's recent decision on the non-cost-of-capital components of our rate case is a constructive step and reflects the kind of collaborative engagement we're working to enhance with regulators to better align cost recovery with the timing of our investments to ensure safe and reliable service to our customers across all three states. We remain focused on executing our growth and regulatory priorities while delivering long-term value creation for all stakeholders."
"We remain optimistic about the opportunity and progress we're seeing on our Great Basin expansion," added Brown. "Contracted demand for the 2028 expansion has grown to roughly 1 billion cubic feet per day, and the project continues to see strong commercial interest, including an additional 1.8 Bcf of expressions of interest which could lead to binding agreements for future phases during the 2029 to 2035 period. That growing interest points to increased capital investment opportunities and enhanced revenue potential for the initial phase of the project. Based on the contracted demand, we now estimate annual margin of $270 to $300 million once in service and a corresponding capital investment for the project of approximately $2.3 billion," added Brown.
SOUTHWEST GAS HOLDINGS, INC. SUMMARY OPERATING RESULTS
Summary Financial Results
Three Months Ended
June 30,
Six Months Ended
June 30,
(In thousands, except per share items)
2026
2025
2026
2025
Results of Consolidated Operations
Contribution to net income - natural gas distribution
$ 40,757
$ 45,646
$ 178,528
$ 188,588
Contribution to net income - corporate and administrative
1,365
(46,377)
1,968
(55,031)
Income (loss) from continuing operations, net of taxes
42,122
(731)
180,496
133,557
Loss from discontinued operations, net of taxes(1)
—
(39,423)
—
(59,841)
Net income (loss) attributable to Southwest Gas Holdings
$ 42,122
$ (40,154)
$ 180,496
$ 73,716
Non-GAAP adjustments to net income - natural gas distribution(2)
$ (9,723)
$ (11,969)
$ —
$ (11,969)
Adjusted net income - natural gas distribution
$ 31,034
$ 33,677
$ 178,528
$ 176,619
Non-GAAP adjustments to net income - continuing operations(2)
(9,723)
27,271
—
27,271
Adjusted net income - continuing operations
$ 32,399
$ 26,540
$ 180,496
$ 160,828
Consolidated earnings (loss) per diluted share
$ 0.58
$ (0.56)
$ 2.49
$ 1.02
Consolidated earnings (loss) per diluted share from continuing
operations
$ 0.58
$ (0.01)
$ 2.49
$ 1.85
Non-GAAP adjustments - continuing operations(2)
(0.13)
0.38
—
0.38
Adj. consolidated earnings per diluted share from continuing
operations
$ 0.45
$ 0.37
$ 2.49
$ 2.23
Weighted average diluted shares
72,665
72,088
72,617
72,195
(1)
Including the impacts of noncontrolling interests. All items related to the disposition of Centuri Holdings, Inc. are included in discontinued operations.
(2)
For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see the tables later in this press release.
Recent Operational and Financial Highlights
Delivered significant quarter-over-quarter growth in earnings per share from continuing operations compared with the prior-year period, reflecting constructive regulatory outcomes, continued infrastructure investment recovery, and disciplined operational execution; Maintained a strong balance sheet and financial flexibility, ending the quarter with $270.5 million of cash and cash equivalents and nearly $1.0 billion in available liquidity to support, among other items, organic growth initiatives and infrastructure investment programs; Southwest Gas Corporation ("Southwest Gas", "Utility", "Natural Gas Distribution" segment) delivered Utility return on period-end equity of 8.1% and adjusted Utility return on period-end equity of 8.0% over the 12 months ended June 30, 2026; Achieved a constructive California regulatory outcome providing approximately $40 million of incremental annual revenue, reinforcing regulatory support for infrastructure investments and enhancing earnings visibility. The decision also resulted in the recognition of approximately $9.7 million of incremental net income in the second quarter related to previously deferred first quarter revenue, which had been tracked in a previously authorized memorandum account pending the regulatory decision; remaining cost-of-capital component is proceeding with a final decision expected in August; Southwest Gas' Arizona System Integrity Mechanism rates became effective on April 1, 2026, supporting more timely recovery of eligible safety and reliability investments, subject to an annual capital investment cap of $50 million; Southwest Gas filed Nevada certification materials for the Nevada general rate case, including post-test-year plant adjustments through May 2026, supporting timely recovery of ongoing infrastructure investments and system improvements and increased Southwest Gas' requested annual revenue increase to ~$74 million; Secured approval of the Nevada Triennial Resource Plan, including prudency pre-determinations for approximately $186 million of capital investments, providing enhanced visibility into possible future rate base growth and supporting long-term natural gas infrastructure planning to serve growing customer demand and reliability needs; Continued commercial momentum for the Great Basin 2028 Expansion Project, with binding precedent agreements ("BPAs") now totaling approximately 1 Bcf per day, demonstrating strong customer demand and supporting one of the Company's most significant long-term infrastructure growth opportunities. Invested $520.0 million in infrastructure modernization and expansion during the first six months of 2026 (on an accrual basis), including approximately $115 million toward the Great Basin 2028 Expansion Project, advancing a robust capital investment program designed to drive long-term rate base growth, system reliability, and shareholder value creation; and Southwest Gas achieved gross margin of $158.4 million and operating margin of $319.7 million for the three months ended June 30, 2026. Great Basin 2028 Expansion Project Updates
During the second quarter, Great Basin executed additional BPAs now totaling approximately 1 Bcf per day of currently contracted demand for its 2028 Expansion Project. Efforts to execute additional BPAs are ongoing to convert expressions of interest of an additional ~1.8 Bcf for requested in-service dates ranging from 2029 through 2035. All additional expressions of interest remain subject to the successful negotiation of BPAs and the posting of required surety.
Based on current engineering and design assumptions, the 2028 Expansion Project is now projected to result in:
Approximately 1 Bcf per day of incremental demand; 48" designed pipe size to serve contracted demand and accommodate additional capacity demand with future compression additions; Approximately $2.3 billion of estimated capital investment. Following project in-service, potential annual incremental margin of approximately $270 million to $300 million. The Company plans to incorporate these expected increases into its long-term capital expenditure, rate base, and earnings guidance expectations in conjunction with its annual five-year planning refresh cycle that typically concludes in February. The Company does not expect 2026 capital expenditures guidance to be materially impacted by the above project estimates.
Preparations for the Federal Energy Regulatory Commission (FERC) certificate (CPCN) application, expected to be filed later in 2026, are progressing as planned, including field surveys, public outreach, and engineering and design development. The current FERC filing schedule is not expected to be impacted by the incremental demand received. Project shippers who executed BPAs are required post surety and execute minimum twenty-year Transportation Service Agreements upon FERC approval of the CPCN to maintain the planned project schedule and associated regulatory timeline.
Future demand beyond the 2028 Expansion Project, may support additional expansion opportunities with their own regulatory approvals and construction schedules.
Earnings Reconciliation Table
The table below provides a reconciliation of net income attributable to Southwest Gas Holdings for the three and six months ended June 30, 2026, from the same period in 2025 (items are in millions and are before related income tax impact unless otherwise noted):
Three Months
Six Months
Net income (loss) attributable to Southwest Gas Holdings – June 30, 2025
$ (40.2)
$ 73.7
Increase (decrease) in Southwest Gas net income:
Operating Margin(1)
25.5
40.7
Operations and maintenance expenses
3.7
1.6
Depreciation and amortization
(8.7)
(14.7)
Other income and deductions, net
(9.4)
(13.0)
Interest expense, net
0.8
(0.3)
Other (includes taxes other than income taxes)
(0.6)
(1.8)
Income tax expense
(16.2)
(22.6)
Total decrease in Southwest Gas net income
(4.9)
(10.1)
Improvement in corporate and administrative results(2)
47.8
57.1
Increase in income from continuing operations
42.9
47.0
Decrease in loss from discontinued operations(3)
39.4
59.8
Net income attributable to Southwest Gas Holdings – June 30, 2026
$ 42.1
$ 180.5
Non-GAAP Adjustments - continuing operations(1)
(9.7)
—
Adjusted net income attributable to Southwest Gas Holdings from continuing
operations – June 30, 2026
$ 32.4
$ 180.5
(1)
For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see the tables later in this press release. Non-GAAP adjustments to three months ended June 30, 2026 adjust for the retroactive impact of California rates that would have been recorded in the first quarter of 2026 had the decision not been delayed.
(2)
Corporate and Administrative improved from a net loss in the three months ended June 30, 2025 to net income in the three months ended June 30, 2026.
(3)
Including the impacts of noncontrolling interests. All items related to the disposition of Centuri are included in discontinued operations.
Southwest Gas Holdings' net income from continuing operations was $42.1 million for the three months ended June 30, 2026, and adjusted net income from continuing operations was $32.4 million for the three months ended June 30, 2026, representing a $42.9 million increase in net income from continuing operations when compared to the three months ended June 30, 2025 and a $5.9 million increase in adjusted net income from continuing operations when compared to the three months ended June 30, 2025.
Southwest Gas Holdings' net income from continuing operations was $180.5 million for the six months ended June 30, 2026, and adjusted net income from continuing operations was $180.5 million for the six months ended June 30, 2026, representing a $47.0 million increase in net income from continuing operations when compared to the six months ended June 30, 2025 and a $19.7 million increase in adjusted net income from continuing operations when compared to the six months ended June 30, 2025.
Southwest Gas / Natural Gas Distribution - Second Quarter 2026
In the three months ended June 30, 2026 compared to the same period in 2025, the decrease in net income of $4.9 million was primarily due to:
$16.2 million higher Income tax expense primarily due to a $12.0 million state income tax benefit recognized in the prior year's quarter related to a change in state apportionment rates that did not reoccur in the current quarter. The increase was also driven by higher pre-tax income differences and lower amortization of excess accumulated deferred income taxes in the current quarter. $9.4 million lower Other income, which is net of other deductions, primarily driven by lower interest income earned on money market accounts of $2.7 million, lower net periodic benefit gain related to pension non-service components of $2.2 million, lower COLI policies gains of $1.9 million largely driven by lower market performance compared to the prior year's quarter, and the absence of a prior year gain on the sale of certain miscellaneous assets of $1.6 million. Additionally, contributions to the Southwest Gas Foundation were $1.6 million higher in the current period, primarily due to timing of the contributions. These decreases were partially offset by an increase in Equity AFUDC of $0.9 million related to the commencement of the Great Basin 2028 Expansion Project. $8.7 million, or 13%, higher Depreciation and amortization expense reflecting a $726.7 million, or 7%, increase in gas plant in service since the corresponding second quarter of 2025, in addition to $4.9 million in higher amortization related to regulatory account balances noted below. The increase in plant was attributable to pipeline capacity reinforcement work, franchise requirements, scheduled pipe replacement activities, and new infrastructure. Partially offset by:
$25.5 million higher Operating margin primarily driven by updated rates that better align with Southwest Gas' cost of service and capital investments across California adding approximately $19.5 million of incremental margin, the majority of which was attributable to the revenue recognized in connection with final approval of the All-Party Settlement, before adjustments to cost of capital, associated with the California general rate case, and $1.4 million attributable to customer growth for all territories. Also contributing to the increase was $4.9 million related to the combined impacts of increases in recovery/return, offset by a comparable increase in depreciation and amortization expense in regulatory account balances noted above. $3.7 million lower Operations and maintenance expense primarily due to lower net insurance cost of $2.5 million, outside services costs of $1.7 million, and bad debt expenses. These decreases were partially offset by increases in employee-related labor costs and leak survey and line locating expense. Southwest Gas / Natural Gas Distribution - Year-To-Date 2026
In the six months ended June 30, 2026 compared to the same period in 2025, the decrease in net income of $10.1 million was primarily due to:
$22.6 million higher Income tax expense due to a $12.0 million state income tax benefit recognized in the prior year's period related to a change in state apportionment rates that did not reoccur in the current period. The increase was also driven by higher pre-tax income differences, lower amortization of excess accumulated deferred income taxes, and lower nondeductible executive compensation in the current period when compared to the prior year's period. $14.7 million, or 9%, higher Depreciation and amortization expense reflecting a $726.7 million, or 7%, increase in gas plant in service since the corresponding period of 2025, in addition to $6.0 million in higher amortization related to regulatory account balances noted below. The increase in plant was attributable to pipeline capacity reinforcement work, franchise requirements, scheduled pipe replacement activities, and new infrastructure. $13.0 million lower Other income, which is net of other deductions, primarily driven by lower interest income earned on money market accounts of $5.9 million, lower net periodic benefit gain related to pension non-service components of $4.3 million, the absence of a prior year gain on the sale of certain miscellaneous assets of $1.6 million, and higher contributions to the Southwest Gas Foundation of $1.9 million primarily due to timing differences. These decreases were partially offset by an increase in Equity AFUDC of $1.6 million related to the commencement of the Great Basin 2028 expansion project. $1.8 million higher Taxes other than income taxes due primarily to increase in property taxes across all of Southwest Gas' jurisdictions. Partially offset by:
$40.7 million higher Operating margin primarily driven by updated rates that better align with Southwest Gas' cost of service and capital investments across all territories adding approximately $32.7 million of incremental margin, approximately $20.2 million of which was attributable to the revenue recognized in connection with final approval of the All-Party Settlement, before adjustments to cost of capital, associated with the California general rate case, and $4.5 million attributable to customer growth for all territories, which is reflective of 1% net customer growth during the twelve months ended June 30, 2026. Also contributing to the increase were $4.9 million attributable to nondecoupled billed margin across Arizona and Nevada and $6.0 million related to the combined impacts of increases in recovery/return, offset by a comparable increase in depreciation and amortization expense in regulatory account balances noted above. Partially offsetting the increase is $4.7 million attributable to the absence of recovery in the current period, as recovery under the Vintage Steel Pipeline Program was concluded during the first quarter of 2025. $1.6 million lower Operations and maintenance expense primarily due to lower net insurance cost and bad debt expense. These decreases were partially offset by increases in employee-related labor costs, including incentive compensation costs and leak survey and line locating expense. Corporate and Administrative - Second Quarter 2026
In the three months ended June 30, 2026, net income improved by $47.7 million compared to a net loss in the same period in 2025; the improvement was primarily due to:
$36.7 million lower Income tax expense due to a $39.2 million state income tax expense recognized in the prior year's quarter related to a change in state apportionment rates that did not reoccur in the current quarter. The decrease was partially offset by higher pre-tax income differences in the current quarter when compared to the prior year's quarter and changes to state net operating losses to reflect expected utilization. $8.6 million lower Net interest deductions primarily driven by the repayment of the $550.0 million term loan in the summer of 2025 as well as the decrease in the balance that was previously outstanding on the revolving credit facility. $2.6 million higher Other income, which is net of other deductions, primarily driven by an increase in interest income earned on money market accounts. Corporate and Administrative - Year-To-Date 2026
In the six months ended June 30, 2026, net income improved by $57.0 million compared to a net loss in the same period in 2025; the improvement was primarily due to:
$31.1 million lower Income tax expense due to a $39.2 million state income tax expense recognized in the prior year's period related to a change in state apportionment rates that did not recur in the current period. The decrease was partially offset by higher pre-tax income differences in the current period when compared to the prior year's period and changes to state net operating losses to reflect expected utilization; $18.3 million lower Net interest deductions primarily driven by the repayment of the $550.0 million term loan in the summer of 2025 as well as the decrease in the balance that was previously outstanding on the revolving credit facility; and $8.0 million higher Other income, which is net of other deductions, primarily driven by an increase in interest income earned on money market accounts. Discontinued Operations - Second Quarter 2026
In the three months ended June 30, 2026 compared to the same period in 2025, the decrease in net loss of $39.4 million reflects the absence of Centuri's operating results in the current period following the completion of its disposition, compared to a full quarter of Centuri's results included in the prior year period.
Discontinued Operations - Year-To-Date 2026
In the six months ended June 30, 2026 compared to the same period in 2025, the decrease in net loss of $59.8 million reflects the absence of Centuri's operating results in the current period following the completion of its disposition, compared to a full six months of Centuri's results included in the prior year period.
Southwest Gas Holdings Guidance and Outlook:
The Company reaffirms the following 2026 and forward-looking guidance ranges, as follows:
(in millions, except percentages)
Reaffirmed Estimates3
2026 Earnings per share from continuing operations
$4.17 - $4.32 / share
2026 Capital expenditures(1)
~$1.25 billion
2026 - 2030 Adjusted Earnings per share from continuing operations CAGR(2)
12.0% - 14.0%
2026- 2030 Capital expenditures(1)
$6.3 billion
2026 - 2030 Rate base CAGR(2)
9.5% - 11.5%
(1)
Includes approximately $30 million and $190 million for 2026 and 2026-2030, respectively, that would be recorded in Deferred charges and other assets.
(2)
2025 compound annual growth rate ("CAGR") base year: adjusted 2025 earnings per share from continuing operations of $3.65 per share and 2025 rate base of $6.7 billion
(3)
Long-term guidance metrics are based on $1.7 billion of incremental capital related to the Great Basin 2028 Expansion Project over the five-year period and do not reflect the updated $2.3 billion capital estimate
Conference Call and Webcast
Southwest Gas Holdings will host a conference call on Tuesday, August 5, 2026, at 11:00 a.m. ET to discuss its second quarter 2026 results. The associated press release and presentation slides are available at https://investors.swgasholdings.com.
The call will be webcast live on the Company's website at www.swgasholdings.com. The telephone dial-in numbers in the U.S. and Canada are toll free: (800) 836-8184 or international (646) 357-8785. The webcast will be archived on the Southwest Gas Holdings website.
About Southwest Gas Holdings
Southwest Gas Holdings, Inc., through its primary operating subsidiary Southwest Gas Corporation, engages in the business of purchasing, distributing and transporting natural gas. Southwest Gas Corporation is a dynamic energy company committed to exceeding the expectations of over 2 million customers throughout Arizona, Nevada, and California by providing safe, reliable, and affordable service while innovating sustainable energy solutions to fuel the growth in its communities.
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, without limitation, statements regarding Southwest Gas Holdings and Southwest Gas and their expectations or intentions regarding the future and underlying assumptions. These forward-looking statements can often be identified by the use of words such as "will", "predict", "continue", "forecast", "expect", "believe", "anticipate", "outlook", "potential", "could", "target", "project", "intend", "plan", "seek", "pursue", "estimate", "should", "may" and "assume", as well as variations of such words and similar expressions referring to the future, and include (without limitation) statements regarding expectations of continuing growth in 2026 and the future, 2026 guidance and outlook, the expected timing, impact and outcome of recent and ongoing general rate cases or other regulatory proceedings, earnings per share, capital expenditure and rate base CAGR guidance, and statements regarding the Great Basin 2028 Expansion Project, including projected demand, capacity, capital expenditures, impacts and investment opportunity. In addition, the statements that are not historic constitute forward-looking statements. A number of important factors affecting the business and financial results of the Company and the Utility could cause actual results to differ materially from those stated in the forward-looking statements. These factors include, but are not limited to, the timing and amount of rate case filings, approvals and rate relief, changes in rate design, net customer growth rates, the effects of regulation/deregulation, tax reform and similar changes and related regulatory decisions, the potential for, and the impact of, a credit rating downgrade, future earnings trends, inflation, sufficiency of labor markets and similar resources, seasonal patterns, current and future litigation, regulatory approvals for the Great Basin 2028 Expansion Project along with capital construction costs, and the impacts of stock market volatility. In addition, the Company can provide no assurance that its discussions about future earnings per share from continuing operations or operating margin, operating income, COLI earnings, interest expense, and capital expenditures of the Company will occur. Likewise, the Company can provide no assurance regarding segment revenues, margin or growth rates, that projects expected to be undertaken with results as stated will occur, nor that interest expense patterns will transpire as expected. Factors that could cause actual results to differ also include (without limitation) those discussed under the heading "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosure about Market Risk" in Southwest Gas Holdings, Inc.'s most recent Annual Report on Form 10-K and in the Company's, and Southwest Gas Corporation's current and periodic reports, including its Quarterly Reports on Form 10-Q, filed from time to time with the Securities and Exchange Commission. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.
Non-GAAP Measures. This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Non-GAAP measures include (i) Southwest Gas Holdings adjusted earnings (loss) per share from continuing operations, (ii) Southwest Gas Holdings adjusted net income (loss) from continuing operations, (iii) Natural Gas Distribution segment adjusted earnings (loss) per share, and (iv) Natural Gas Distribution segment adjusted net income (loss) for the three and six months ended June 30, 2026 and June 30, 2025. Also included in this press release, Natural Gas Distribution segment adjusted ROE for the twelve-months-ended June 30, 2026. Management uses these non-GAAP measures internally to evaluate performance and in making financial and operational decisions. Management believes that its presentation of these measures provides investors greater transparency with respect to its results of operations and that these measures are useful for a period-to-period comparison of results. Management also believes that providing these non-GAAP financial measures helps investors evaluate the Company's operating performance, profitability, and business trends in a way that is consistent with how management evaluates such performance.
Management also uses the non-GAAP measure, operating margin, related to its natural gas distribution operations. Southwest Gas recognizes operating revenues from the distribution and transportation of natural gas (and related services) to customers. Gas cost is a tracked cost, which is passed through to customers without markup under purchased gas adjustment mechanisms, impacting revenues and net cost of gas sold on a dollar-for-dollar basis, thereby having no impact on Southwest Gas' profitability. Therefore, management routinely uses operating margin, defined by management as regulated operations revenues less the net cost of gas sold, in its analysis of Southwest Gas' financial performance. Operating margin also forms a basis for Southwest Gas' various regulatory decoupling mechanisms. Management believes supplying information regarding operating margin provides investors and other interested parties with useful and relevant information to analyze Southwest Gas' financial performance in a rate-regulated environment.
The tables included below provide a reconciliation for these non-GAAP measures.
We do not provide a reconciliation of forward-looking Non-GAAP Measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.
SOUTHWEST GAS HOLDINGS, INC. CONSOLIDATED EARNINGS RESULTS
(In thousands, except per share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Consolidated Operating Revenues
$ 358,154
$ 396,318
$ 943,273
$ 1,142,734
Net Income (Loss):
Continuing operations
$ 42,122
$ (731)
$ 180,496
$ 133,557
Discontinued operations(1)
—
(39,423)
—
(59,841)
Net income (loss) applicable to Southwest Gas Holdings
$ 42,122
$ (40,154)
$ 180,496
$ 73,716
Weighted Average Common Shares - Basic
72,516
72,088
72,479
72,050
Weighted Average Common Shares - Diluted
72,665
72,088
72,617
72,195
Basic earnings (loss) per share:
Continuing operations
$ 0.58
$ (0.01)
$ 2.49
$ 1.85
Discontinued operations
—
(0.55)
—
(0.83)
Net earnings (loss) per share - basic
$ 0.58
$ (0.56)
$ 2.49
$ 1.02
Diluted earnings (loss) per share:
Continuing operations
$ 0.58
$ (0.01)
$ 2.49
$ 1.85
Discontinued operations
—
(0.55)
—
(0.83)
Net earnings (loss) per share - diluted
$ 0.58
$ (0.56)
$ 2.49
$ 1.02
Reconciliation of Gross Margin to Operating Margin
(non-GAAP measure)
Utility Gross Margin
$ 158,398
$ 140,480
$ 457,288
$ 427,864
Plus:
Operations and maintenance (excluding Admin &
General) expense
83,629
84,764
162,101
165,527
Depreciation and amortization expense
77,685
68,940
177,288
162,630
Operating Margin
$ 319,712
$ 294,184
$ 796,677
$ 756,021
(1)
Including the impacts of noncontrolling interests. All items related to the disposition of Centuri are included in discontinued operations.
Reconciliation of non-GAAP financial measure of Adjusted net income (loss) and Adjusted diluted earnings (loss) per share and their comparable GAAP measure of Net income (loss) and Diluted earnings (loss) per share is presented below. Amounts in thousands, except per share amounts and percentages.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
Twelve
Months Ended
June 30,
2026
2025
2026
2025
2026
Reconciliation of Net income (loss) to non-GAAP measure of
Adjusted net income (loss)
Net income applicable to Natural Gas Distribution (GAAP)
$ 40,757
$ 45,646
$ 178,528
$ 188,588
$ 290,248
Plus:
State income tax apportionment associated with certain
one-time events(1)
—
(11,969)
—
(11,969)
(4,393)
Retroactive impact of 2025 California General Rate Case
(12,794)
—
—
—
—
Income tax effect of adjustment above
3,071
—
—
—
—
Adjusted net income applicable to Natural Gas Distribution
$ 31,034
$ 33,677
$ 178,528
$ 176,619
$ 285,855
Natural Gas Distribution Average Equity (GAAP)(2)
$ 3,577,180
Natural Gas Distribution Return on Equity (GAAP)
8.1 %
Adjusted Natural Gas Distribution Average Equity(2)
$ 3,568,955
Adjusted Natural Gas Distribution Return on Equity
8.0 %
Net loss - Corporate and administrative (GAAP)
$ 1,365
$ (46,377)
$ 1,968
$ (55,031)
Plus:
State income tax apportionment associated with certain
one-time events(1)
—
39,240
—
39,240
Adjusted net income (loss) applicable to Corporate and
administrative
$ 1,365
$ (7,137)
$ 1,968
$ (15,791)
Income (loss) from continuing operations, net of taxes (GAAP)
$ 42,122
$ (731)
$ 180,496
$ 133,557
Plus:
State income tax apportionment associated with certain
one-time events(1)
—
27,271
—
27,271
Retroactive impact of 2025 California General Rate Case
(12,794)
—
—
—
Income tax effect of adjustment above
3,071
—
—
—
Adjusted net income applicable to Southwest Gas Holdings
$ 32,399
$ 26,540
$ 180,496
$ 160,828
Weighted average shares - diluted
72,665
72,088
72,617
72,195
Earnings (loss) per share from continuing operations:
Diluted earnings (loss) per share
$ 0.58
$ (0.01)
$ 2.49
$ 1.85
Adjusted consolidated earnings per diluted share
$ 0.45
$ 0.37
$ 2.49
$ 2.23
(1) Represents the non-recurring impact of remeasuring state deferred taxes, primarily related to the tax deconsolidation of Centuri and the inclusion of the 2028 Great Basin Expansion Project.
(2) Natural Gas Distribution Equity represents a trailing five quarter average.
FINANCIAL STATISTICS
Market value to book value per share at quarter end
156 %
Twelve months to date return on equity
-- gas segment
8.1 %
Twelve months to date adjusted return on equity(1)
-- gas segment
8.0 %
Common stock dividend yield at quarter end
2.9 %
Customer to employee ratio at quarter end (gas segment)
942 to 1
(1)
For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see the tables earlier in this press release.
GAS DISTRIBUTION SEGMENT
Authorized Rate Base
(In thousands)
Authorized Rate of
Return
Authorized Return on
Common Equity
Rate Jurisdiction
Arizona(1)
$ 3,175,484
7.03 %
9.84 %
Southern Nevada(2)
1,780,757
7.02
9.50
Northern Nevada(3)
227,060
7.01
9.50
Southern California(4)
285,691
8.02
11.16
Northern California(4)
92,983
7.91
11.16
South Lake Tahoe(4)
56,818
7.91
11.16
Great Basin Gas Transmission Company(5)
190,988
8.17
11.95
Total/Weighted Average
$ 5,809,781
7.14 %
9.89 %
(1)
Effective March 2025.
(2)
Effective July 2025.
(3)
Effective April 2024.
(4)
Authorized returns updated effective January 1, 2024, due to an Automatic Rate of Return Trigger Mechanism.
(5)
Estimated amounts based on 2024 rate case settlement.
, /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter of 2026.
Second Quarter 2026 Highlights:
Quarterly GAAP revenues of $95.6 million, consistent with the second quarter of 2025. Quarterly revenues from consumables and service of $22.3 million, an increase of 13% compared to the second quarter of 2025. GAAP operating income of $12.3 million and *non-GAAP operating income of $16.0 million. Total cash position of $501.1 million as of June 30, 2026, including cash and cash equivalents, marketable securities and short-term bank deposits. Completed the repurchase of 6.38 million ordinary shares for an aggregate purchase price of $87.8 million through the previously announced share repurchase program. U.S. GAAP Results
(U.S. dollars in thousands, except for per share data)
Q2 2026
Q2 2025
$95,589
$95,602
75 %
80 %
13 %
24 %
$17,064
$26,742
$0.29
$0.42
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
Q2 2026
Q2 2025
75 %
80 %
17 %
28 %
$20,812
$30,139
$0.35
$0.47
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.
Management Comments
"Overall revenue was consistent with the prior-year period, and we saw continued stability in our U.S. capital equipment business, reflecting steady customer demand. This performance is consistent with the stabilization we anticipate will continue through the remainder of the year. We remain focused on investing in opportunities that support long-term growth," said Moshik Itzkovich, Chief Financial Officer of InMode.
Second Quarter 2026 Financial Results
Total GAAP revenues for the second quarter of 2026 were $95.6 million, consistent with the second quarter of 2025. Revenue from Asia reached a quarterly record, reflecting continued strength across key markets in the region. Quarterly revenues from consumables and service grew 13% compared to the second quarter of 2025, to $22.3 million, derived primarily from international sales.
GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025.
*Non-GAAP gross margin for the second quarter of 2026 was 75%, compared to 80% for the second quarter of 2025.
GAAP operating margin for the second quarter of 2026 was 13%, compared to 24% for the second quarter of 2025. *Non-GAAP operating margin for the second quarter of 2026 was 17%, compared to 28% for the second quarter of 2025. These decreases were primarily attributable to higher cost of goods sold, product mix, the restructuring of the North America sales team implemented toward the end of 2025, additional marketing and sales investments to retain talent and maintain market share, and higher general and administrative expenses driven by increased professional services costs. We expect these trends to continue for the foreseeable future.
InMode reported GAAP net income of $17.1 million, or $0.29 per diluted share, in the second quarter of 2026, compared to $26.7 million, or $0.42 per diluted share, in the second quarter of 2025. On a *non-GAAP basis, InMode reported net income of $20.8 million, or $0.35 per diluted share, in the second quarter of 2026, compared to $30.1 million, or $0.47 per diluted share, in the second quarter of 2025.
As of June 30, 2026, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $501.1 million.
Appointed New Chief Financial Officer and New Board Director
On May 20, 2026, the Company announced the appointment of Dr. Shlomo Nass as its new Chairman of the Company's Board of Directors, effective May 19, 2026. The Company also announced the appointment of Moshe (Moshik) Itzkovich as the Company's new Chief Financial Officer, effective May 19, 2026, while former Chief Financial Officer Yair Malca continues to be engaged with the Company as a consultant.
2026 Financial Outlook
Management provided an outlook for the full fiscal year ending December 31, 2026. Based on current estimates, management expects:
Revenues between $365 million and $375 million *Non-GAAP gross margin between 74% and 76% *Non-GAAP income from operations to be between $68 million and $73 million *Non-GAAP earnings per diluted share between $1.29 and $1.34 However, these expectations are based on management's current estimates, which may be updated.
This outlook is not a guarantee of future performance, and shareholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation, expenses related to independent transaction committee review (representing non-recurring cost) and related income tax adjustments where applicable.
Conference Call and Webcast Update
As previously announced, while the Company's Special Committee continues its evaluation of unsolicited proposals, the Company will not host an investor conference call or webcast in connection with this earnings release and will not be conducting investor meetings at this time.
The Current Situation in Israel
The scope and severity of ongoing conflicts in Gaza, Northern Israel, Lebanon, Iran, and the broader region are unpredictable and could escalate at any time. To date, our operations have not been materially affected. We continue to monitor political and military developments closely and examine the consequences for our operations and assets.
Use of Non-GAAP Financial Measures
In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP gross margin and non-GAAP income from operations. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency into its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release. Reconciliations of non-GAAP gross margin, non-GAAP income from operations, and non-GAAP earnings per diluted share for management's projections of such non-GAAP financials for the 2026 fiscal year are not available without unreasonable effort due to the variability, complexity and limited visibility of certain reconciling items. These reconciling items could have a significant and unpredictable impact on our future GAAP results.
About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the actual amount of share repurchases made by the Company, if any. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2026, and our subsequent public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.
Company Contact:
Moshik Itzkovich
Chief Financial Officer
Email: [email protected]
Reinforces Ongoing Commitment to Delivering Value to Stockholders
VERNON HILLS, Ill.--(BUSINESS WIRE)--CDW Corporation (Nasdaq: CDW) announced today that its Board of Directors declared a quarterly cash dividend of $0.630 per common share to be paid on September 10, 2026, to all stockholders of record as of the close of business on August 25, 2026.
"Dividends represent an important component of our capital allocation priorities, along with share repurchases, strategic M&A, and managing our capital structure," said Albert J. Miralles, chief financial officer, CDW. "Since our IPO in June 2013, our dividend has increased nearly fifteen-fold, with twelve consecutive years of increases, and we have returned approximately $8.8 billion to stockholders through share repurchases and dividends. Our capital allocation strategy has enabled us to deliver value to our stockholders, just as we have delivered value to our customers and partners for over 40 years."
Future dividends and share repurchase authorizations will be at the discretion of and subject to approval by CDW's Board of Directors. The payment of any future dividends will be at the discretion of our Board of Directors and will depend upon our results of operations, financial condition, business prospects, capital requirements, contractual restrictions (including in current or future agreements governing our indebtedness), restrictions imposed by applicable law, tax considerations, and other factors that our Board of Directors deems relevant. Share repurchases under the program will be made from time to time in private transactions, open market purchases, or other transactions as permitted by securities laws and other legal requirements. The timing and amounts of any purchases will be based on market conditions and other factors including but not limited to price, regulatory requirements, and capital availability. The program does not require the purchase of any minimum dollar amount or number of shares and the program may be modified, suspended, or discontinued at any time. As of June 30, 2026, the Company has approximately $1,138 million remaining under the program.
About CDW
CDW Corporation (Nasdaq: CDW) is a leading multi-brand provider of information technology solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. CDW helps its customers to navigate an increasingly complex IT market and maximize return on their technology investments. For more information about CDW, please visit www.CDW.com.
Forward-Looking Statements
Statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future dividends, share repurchases, earnings growth, capital allocation, leverage ratio, stockholder returns, and other strategic plans of CDW. These forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW believes that its plans, intentions, and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions, or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Forward-Looking Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K for the year ended December 31, 2025, and in CDW's subsequent filings with the Securities and Exchange Commission. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
CMC schválila navýšení programu zpětného odkupu akcií o 600 milionů USD na zhruba 717 milionů USD. Od října 2021 už v rámci programu odkoupila akcie za asi 733 milionů USD.
, /PRNewswire/ -- CMC (NYSE: CMC) (the "Company" or "CMC") today announced that its Board of Directors has authorized a $600.0 million increase in the Company's existing common stock repurchase program, bringing the total current capacity of the program to approximately $717.0 million. Approximately $733.0 million of the Company's common stock has been repurchased under the existing program since its authorization in October 2021.
"This share repurchase authorization reflects our confidence in the strength of our business, our long-term growth strategy, and our ability to continue generating strong cash flow", said Peter R. Matt, President and Chief Executive Officer. "We remain committed to a disciplined capital allocation approach that balances investment in our business, returning capital to shareholders, and maintaining a strong balance sheet."
CMC intends to repurchase shares from time to time for cash in open market transactions or in privately-negotiated transactions in accordance with applicable federal securities laws, including Rule 10b5-1 programs. The timing and the amount of repurchases, if any, will be determined by the Company's management based on its evaluation of market conditions, capital allocation alternatives and other factors. The share repurchase program does not require the Company to acquire any dollar amount or number of shares of CMC common stock and may be modified, suspended, extended or terminated by the Company's Board of Directors at any time without prior notice.
About CMC
CMC is a Fortune 500 company headquartered in Irving, Texas, and a leading provider of early-stage construction solutions that support the foundational phases of modern infrastructure and building projects. Founded in 1915, CMC has grown from a single-site recycling operation to one of the largest U.S. manufacturers of steel reinforcing bar, a leading producer of subgrade soil stabilization and foundation enhancement solutions and a major supplier of concrete pipe and precast products.
Through an extensive manufacturing network primarily located in the United States and Central Europe, with strategic operations in the United Kingdom, Europe and Asia, CMC serves infrastructure, non-residential, residential, industrial and energy markets. While often unseen, CMC's products are essential to highways, bridges, airports, commercial buildings and other critical structures that support everyday life.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws with respect to the Company's capital allocation strategy and plans to repurchase shares of common stock under the authorized share repurchase program. The statements in this release that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "future," "intends," "may," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases, as well as by discussions of strategy, plans or intentions.
The Company's forward-looking statements are based on management's expectations and beliefs as of the time this news release was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2025, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of downstream contracts within our vertically integrated steel operations due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of additional steelmaking capacity expected to come online from a number of ongoing electric arc furnace projects in the U.S.; the impact of geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war on the global economy, inflation, energy supplies and raw materials; increased attention to environmental, social and governance ("ESG") matters, including any targets or other ESG, environmental justice or regulatory initiatives; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; impacts from global public health crises on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third-party consents and approvals; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite-lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks, including those related to the Pacific Steel Group litigation and other legal proceedings; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.
Hagerty zvýšila celoroční výhled na rok 2026: růst pojistného předepsaného čeká na 16 % až 17 % a Adjusted EBITDA na 270 až 280 milionů USD. Za první pololetí vzrostlo pojistné předepsané o 19 % na 713 milionů USD.
Strong underlying operational performance with record growth in members, written premium, and earned premium First half 2026 Written Premium grew 19% year-over-year to $713 million Added a record 279,000 new members in the first half of 2026, with policy in force growth of 19% year-over-year to 1.9 million members First half 2026 Earned Premium increased 42% to $492 million Transition to Markel Fronting Arrangement on January 1, 2026 resulted in decrease to reported revenue as previously disclosed First half 2026 Net Loss of $5 million, including $153 million of pre-tax Markel Fronting Arrangement transitional costs, compared to Net Income of $74 million in the prior year period First half 2026 Adjusted EBITDA (a non-GAAP measure) increased 32% to $160 million, compared to $121 million in the prior year period First half 2026 Cash Flow from Operating Activities increased 91% to $186 million Increased 2026 Outlook — Written Premium growth of 16% to 17%, Net Income of $18 to $30 million, and Adjusted EBITDA of $270 to $280 million , /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY) makes it easier and more enjoyable for car enthusiasts to drive and celebrate the vehicles they love — through specialty vehicle insurance, live and digital auctions, engaging media and events, and the Hagerty Drivers Club, the world's largest membership community of car lovers. Today the company announced financial results for the three and six months ended June 30, 2026.
"The first half of 2026 has been the best in Hagerty's history, and our results give us the confidence to significantly increase our full year outlook. We delivered year-to-date written premium growth of 19% and Adjusted EBITDA gains of 32%, reflecting the compounding power of our model as we now control 100% of the economics on our U.S. book. This is what forty years of building trust — one member, one partner, one car at a time — looks like when the flywheel hits its stride," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.
"Our momentum is showing up across every part of the Hagerty ecosystem, including crossing three million insured vehicles. Broad Arrow delivered first half revenue growth of 17%, with a 91% auction sell-through rate and demand from buyers on multiple continents. And in the third quarter, we will welcome the team and members of Bennetts, the United Kingdom's second largest specialty motorcycle insurance broker to the Hagerty family, tripling our scale in that market," added Mr. Hagerty.
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS
Second quarter 2026 Written Premium increased 19% year-over-year to $425 million, and year-to-date 2026 Written Premium increased 19% year-over-year to $713 million Second quarter 2026 Hagerty Re Earned Premium increased 42% year-over-year to $252 million, and year-to-date 2026 Earned Premium increased 42% year-over-year to $492 million Driven by the Markel Fronting Arrangement which increased Hagerty Re's U.S. quota share from 80% to 100% including in-force policies written in 2025, as well as growth in subject premiums written by our MGA subsidiaries Policies in Force Retention was 88.2% as of June 30, 2026 compared to 88.7% in the prior year period, and policies in force count increased 19% year-over-year to 1.9 million Second quarter 2026 MGA+ reporting unit Commission and fee revenue increased 17% to $167 million, and year-to-date 2026 MGA+ reporting unit Commission and fee revenue increased 18% year-over-year to $287 million, reflecting organic growth in the Essentia and State Farm books of business Assuming control of the Essentia book through the Markel Fronting Arrangement in the first quarter of 2026 requires the elimination of $144 million of Commission and fee revenue in the second quarter of 2026 and $247 million in the first half of 2026 in the Condensed Consolidated Statements of Operations On a consolidated basis, second quarter 2026 Commission and fee revenue decreased 83% year-over-year to $24 million, and year-to-date 2026 Commission and fee revenue decreased 84% year-over-year to $40 million Second quarter 2026 Marketplace revenue increased 48% year-over-year to $40 million, and year-to-date 2026 Marketplace revenue increased 17% year-over-year to $65 million Strong sales growth at live auctions and increased financing revenue which was enabled by the upsized BAC Credit Facility Second quarter 2026 Membership and other revenue increased 3% year-over-year to $21 million, and year-to-date 2026 Membership and other revenue increased 5% year-over-year to $43 million Hagerty Drivers Club (HDC) paid members increased 6% year-over-year to over 962,000 Second quarter 2026 Net investment income increased 17% year-over-year to $11 million, and year-to-date 2026 Net investment income increased 15% year-over-year to $21 million Second quarter 2026 Total Revenue decreased 6% year-over-year to $355 million, and year-to-date 2026 Total Revenue decreased 6% year-over-year to $667 million, reflecting the transition to the Markel Fronting Arrangement Second quarter 2026 Hagerty Re Loss Ratio was 42.7% compared to 42.3% in the prior year period, and year-to-date 2026 Hagerty Re Loss Ratio was 40.6% compared to 42.2% in the prior year period Second quarter 2026 Hagerty Re Combined Ratio was 89.6% compared to 89.6% in the prior year period, and year-to-date 2026 Hagerty Re Combined Ratio was 88.1% compared to 89.1% in the prior year period Second quarter 2026 Policy acquisition costs, net increased 1% to $84 million, and year-to-date 2026 Policy acquisition costs, net increased 16% to $186 million. The year-to-date increase is primarily due to the transition of our business under the Markel Fronting Arrangement, which resulted in incremental ceding commission expense for in-force policies written in 2025 and assumed at 100% on January 1, 2026, as well as an increase in earned premium The transition to the Markel Fronting Arrangement and adoption of Article 7 reporting standards for insurance companies reclassified certain costs among expense captions on the Condensed Consolidated Statements of Operations, reducing period-over-period comparability of individual captions without affecting total expenses. Beginning in 2026, following our assumption of control over the Essentia book of business, operating costs incurred by our U.S. MGA subsidiary in support of risk-taking activities are classified within Underwriting and other insurance expenses, versus Selling, general, and administrative expenses Together, second quarter 2026 Underwriting and other insurance expenses and Selling, general, and administrative expenses within the Insurance segment decreased 11% to $119 million, and year-to-date 2026 decreased 10% to $225 million. This decrease was primarily a result of the deferral of costs incurred by our MGA subsidiary for the successful acquisition or renewal of insurance policies issued under the Markel Fronting Arrangement. In 2025, these costs were expensed as incurred Second quarter 2026 Income before taxes of $2 million, including $64 million of Markel Fronting Arrangement transitional costs, and year-to-date 2026 Loss before taxes of $19 million, including $153 million of Markel Fronting Arrangement transitional costs Second quarter 2026 Net Income of $8 million, including $64 million of pre-tax Markel Fronting Arrangement transitional costs, compared to Net Income of $47 million in the prior year period, and year-to-date 2026 Net Loss of $5 million, compared to Net Income of $74 million in the prior year period, including $153 million of pre-tax Markel Fronting Arrangement transitional costs Second quarter 2026 Adjusted EBITDA (a non-GAAP measure) increased 3% year-over-year to $75 million, compared to $73 million in the prior year period, and year-to-date 2026 Adjusted EBITDA increased 32% year-over-year to $160 million, compared to $121 million in the prior year period Second quarter 2026 Basic and Diluted Loss Per Share were $(0.02), and year-to-date 2026 Basic and Diluted Loss Per Share were $(0.08) Second quarter 2026 Adjusted Diluted Loss Per Share (a non-GAAP measure) was $(0.02), and year-to-date 2026 Adjusted Diluted Loss Per Share was $(0.05) First half 2026 Cash Flow from Operating Activities increased 91% to $186 million The Company had $298 million of unrestricted cash and $216 million of total debt, $88 million of which was back leverage for Broad Arrow Capital's portfolio of loans collateralized by collector cars The definitions and reconciliations of non-GAAP financial measures are provided under the heading Key Performance Indicators and Non-GAAP Financial Measures at the end of this press release.
INCREASED 2026 OUTLOOK - COMPOUNDING GROWTH
We believe 2026 is on track to be another great year of underlying profit growth for Hagerty as our team executes on our long-term plan to deliver compounding premium growth through investing in our long-term competitive advantages with our member-centric approach. As of January 1, 2026, we moved to a 100% quota share arrangement with our long-term partner, Markel, where we retain 100% of the premium and risk from our high-quality, historically low volatility underwriting. We also remain focused on delivering this growth more efficiently through the benefits of scale, continued cost discipline, and investments in our technology platform.
For full year 2026, Hagerty anticipates: Written Premium growth of 16% to 17% Total Revenue change of (9)% to (8)%, as Markel-related commission revenue is eliminated under the Markel Fronting Arrangement1 Net Income of $18 million to $30 million, including ~$199 million of Markel Fronting Arrangement transitional costs2 Adjusted EBITDA of $270 million to $280 million
Prior 2026 Outlook1 ($)
Revised 2026 Outlook ($)
in thousands
2025 Results
Low End
High End
Low End
High End
Total Written Premium
$1,193,548
$1,373,000
$1,385,000
$1,385,000
$1,397,000
Total Revenue2
$1,456,389
$1,280,000
$1,300,000
$1,325,000
$1,340,000
Net Income3, 4
$149,225
$(51,000)
$(41,000)
$18,000
$30,000
Adjusted EBITDA5
$236,791
$236,000
$247,000
$270,000
$280,000
1
Prior 2026 Outlook shared on the Company's first quarter earnings call on May 6th, 2026.
2
Revenue guidance reflects the accounting impact of the Markel Fronting Arrangement. Beginning in 2026, we now control the Essentia book of business with the benefit of our MGA services received by Hagerty Re and not Essentia. As a result, commission revenue and the associated ceding commission expense for policies issued through the Markel Fronting Arrangement are now eliminated in consolidation. Although we expect the arrangement to result in increased profitability (as reflected in Adjusted EBITDA), reported commission revenue and ceding commission expense will be significantly lower than prior periods, affecting period-to-period comparability. 2025 commission revenue associated with our alliance agreement with Markel was $437 million and 2025 ceding commission expense related to the Company's reinsurance quota share agreement with Markel was $344 million.
3
The projected Net Income includes approximately $199 million of pre-tax transitional costs related to the Markel Fronting Arrangement representing deferred ceding commissions paid to Markel for policies written prior to January 1, 2026, which will be fully amortized ratably over the remaining term of those policies throughout 2026. This amortization will decline to $37 million in Q3 2026 and approximately $9 million in Q4 2026 as 2025 policies expire. Excluding these transitional costs, we expect 2026 to reflect underlying profitability improvement.
4
Full year 2025 Net Income includes (i) the benefit from the $42 million release of a portion of our valuation allowance, partially offset by a $32 million loss related to the change in value of the TRA liability; and (ii) a $21 million reduction in reserves in the fourth quarter, primarily related to favorable development for the 2024 accident year and improvement in current accident year experience.
5
See section "Key Performance Indicators and Non-GAAP Financial Measures" below for additional information regarding this non-GAAP financial measure.
Conference Call Details
Hagerty will hold a conference call to discuss the financial results on Wednesday, August 5, 2026 10:00 am Eastern Time. A webcast of the conference call, including its Investor Presentation highlighting second quarter 2026 financial results, will be available on Hagerty's investor relations website at investor.hagerty.com. The dial-in for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at investor.hagerty.com following the call.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, including those regarding Hagerty's future operating results and financial position, Hagerty's business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and Hagerty's objectives for future operations. The words "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "ongoing," "contemplate," and similar expressions, and the negatives of these expressions, are intended to identify forward-looking statements.
Hagerty has based these forward-looking statements largely on current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in forward-looking statements. These factors include, among other things, Hagerty's ability to: (i) compete effectively within Hagerty's industry and attract and retain insurance policyholders and paid Hagerty Drivers Club ("HDC") subscribers; (ii) maintain key strategic relationships with Hagerty's insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages, or other issues with Hagerty's technology platforms or use of third-party services; (v) accelerate the adoption of Hagerty's membership and marketplace products and services, as well as any new insurance programs and products offered; (vi) successfully implement the fronting arrangement consummated with Markel and realize the anticipated benefits while also managing the increased exposure to underwriting volatility, catastrophes, reinsurance counterparty risk, and legal, compliance, and regulatory risks resulting from the shift to Hagerty Re assuming 100% of the risk for policies written through this arrangement; (vii) underwrite and price new products, including Enthusiast+, consistent with expected loss ratios and risk tolerances; (viii) execute Broad Arrow's private sale, auction, and financing strategies; (ix) complete the acquisition of Bennetts Motorcycling Services Limited ("Bennetts") on the expected terms or timeline, or at all, or realize the anticipated benefits of the Bennetts acquisition, including expected earnings enhancements and synergies; (x) achieve Hagerty's investment objectives and avoid losses in the investment portfolio; (xi) manage the cyclical nature of the insurance business and broader macroeconomic conditions, including inflation, interest rates, and potential recessionary pressures; (xii) address unexpected increases in the frequency or severity of claims, including catastrophe losses; and (xiii) comply with numerous laws and regulations applicable to Hagerty's business, including without limitation state, federal, and foreign laws relating to insurance and rate increases, privacy and cybersecurity, marketing and advertising, digital services, accounting matters, tax, anti-money laundering, and economic sanctions.
The forward-looking statements in this release represent Hagerty's views as of the date hereof. You should not rely on forward-looking statements as predictions of future events. We operate in a very competitive and rapidly changing environment and new risks emerge from time to time. This presentation should be read in conjunction with the information included in filings with the SEC and press releases. Understanding the information contained in these filings is important in order to fully understand Hagerty's reported financial results and business outlook for future periods. In addition, this press release contains certain "non-GAAP financial measures". The non-GAAP measures are presented for supplemental informational purposes only. These financial measures are not recognized measures under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided in the appendix to this press release.
About Hagerty, Inc. (NYSE: HGTY)
Hagerty is a company built by drivers for drivers, protecting 3.0 million vehicles in the United States, Canada and the UK. We make it easier and more enjoyable for car enthusiasts to drive and celebrate the vehicles they love through innovative vehicle insurance products, live and digital auctions, engaging media and events, and the Hagerty Drivers Club, the world's largest membership community of car lovers.
For more information, please visit www.hagerty.com or www.newsroom.hagerty.com. Never Stop Driving®.
Category: Financial
Source: Hagerty
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Three months ended June 30,
2026
2025
$ Change
% Change
REVENUES:
in thousands (except percentages and per share amounts)
Earned premium, net
$ 251,956
$ 177,785
$ 74,171
41.7 %
Commission and fee revenue
23,665
143,287
(119,622)
(83.5) %
Marketplace revenue
39,658
26,886
12,772
47.5 %
Membership and other revenue
21,361
20,741
620
3.0 %
Net investment income
11,003
9,416
1,587
16.9 %
Net investment gains
7,179
1,194
5,985
N/M
Total revenue
354,822
379,309
(24,487)
(6.5) %
EXPENSES:
Losses and loss adjustment expenses, net
110,709
75,213
35,496
47.2 %
Policy acquisition costs, net
83,641
82,938
703
0.8 %
Underwriting and other insurance expenses
62,947
1,222
61,725
N/M
Selling, general, and administrative expenses
95,265
161,627
(66,362)
(41.1) %
Interest expense and other, net
28
4,946
(4,918)
(99.4) %
Total expenses
352,590
325,946
26,644
8.2 %
INCOME BEFORE TAXES
2,232
53,363
(51,131)
(95.8) %
Income tax (expense) benefit
5,809
(6,161)
11,970
194.3 %
NET INCOME
8,041
47,202
(39,161)
(83.0) %
Net income attributable to non-controlling interest
(7,761)
(36,229)
28,468
78.6 %
Accretion of Series A Convertible Preferred Stock
(1,948)
(1,875)
73
3.9 %
NET INCOME (LOSS) ATTRIBUTABLE TO CLASS A
COMMON STOCKHOLDERS
$ (1,668)
$ 9,098
$ (10,766)
(118.3) %
Earnings (loss) per share of Class A Common Stock:
Basic
$ (0.02)
$ 0.09
Diluted
$ (0.02)
$ 0.09
Weighted average shares of Class A Common Stock
outstanding:
Basic
101,797
90,698
Diluted
101,797
90,698
____________________
N/M = Not meaningful
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Six months ended June 30,
2026
2025
$ Change
% Change
REVENUES:
in thousands (except percentages and per share amounts)
Earned premium, net
$ 491,598
$ 347,140
$ 144,458
41.6 %
Commission and fee revenue
40,100
243,574
(203,474)
(83.5) %
Marketplace revenue
65,310
55,972
9,338
16.7 %
Membership and other revenue
43,488
41,606
1,882
4.5 %
Net investment income
21,266
18,474
2,792
15.1 %
Net investment gains
4,890
879
4,011
N/M
Total revenue
666,652
707,645
(40,993)
(5.8) %
EXPENSES:
Losses and loss adjustment expenses, net
208,628
146,343
62,285
42.6 %
Policy acquisition costs, net
185,563
160,271
25,292
15.8 %
Underwriting and other insurance expenses
122,535
2,579
119,956
N/M
Selling, general, and administrative expenses
167,681
305,672
(137,991)
(45.1) %
Interest expense and other, net
950
6,635
(5,685)
(85.7) %
Total expenses
685,357
621,500
63,857
10.3 %
INCOME (LOSS) BEFORE TAXES
(18,705)
86,145
(104,850)
(121.7) %
Income tax (expense) benefit
14,001
(11,650)
25,651
N/M
NET INCOME (LOSS)
(4,704)
74,495
(79,199)
(106.3) %
Net (income) loss attributable to non-controlling interest
493
(55,151)
55,644
100.9 %
Accretion of Series A Convertible Preferred Stock
(3,978)
(3,750)
228
6.1 %
NET INCOME (LOSS) ATTRIBUTABLE TO CLASS A
COMMON STOCKHOLDERS
$ (8,189)
$ 15,594
$ (23,783)
(152.5) %
Earnings (loss) per share of Class A Common Stock:
Basic
$ (0.08)
$ 0.16
Diluted
$ (0.08)
$ 0.16
Weighted average shares of Class A Common Stock
outstanding:
Basic
101,418
90,374
Diluted
101,418
91,247
____________________
N/M = Not meaningful
Hagerty, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
June 30,
December 31,
2026
2025
ASSETS
in thousands (except share amounts)
Fixed maturity securities available-for-sale, at fair value (amortized cost: $702,483 and $687,813
as of June 30, 2026 and December 31, 2025, respectively)
$ 701,561
$ 696,271
Equity securities, at fair value
54,945
34,871
Total investments
756,506
731,142
Cash and cash equivalents
298,302
160,177
Restricted cash and cash equivalents
169,333
138,823
Accounts receivable
27,313
98,872
Premiums receivable
120,382
180,529
Deferred acquisition costs, net
100,196
179,224
Reinsurance recoverables
12,346
15,296
Prepaid reinsurance premiums
49,846
21,950
Notes receivable
153,302
113,887
Intangible assets, net
89,315
88,915
Goodwill
114,134
114,164
Deferred tax assets
48,021
43,011
Other assets
209,435
207,986
TOTAL ASSETS
$ 2,148,431
$ 2,093,976
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$ 89,829
$ 111,947
Advance premiums
50,108
28,287
Due to insurers
27,100
94,930
Losses payable and reserves for unpaid losses and loss adjustment expenses
241,705
264,204
Unearned premiums
598,217
412,058
Ceding commissions payable
6,133
86,165
Debt, net
215,951
177,907
Contract liabilities
50,841
46,450
Deferred tax liability
244
23,489
Tax receivable agreement liability
38,284
39,829
Other liabilities
95,213
61,684
TOTAL LIABILITIES
1,413,625
1,346,950
Commitments and Contingencies
—
—
TEMPORARY EQUITY
Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A
Convertible Preferred Stock issued and outstanding as of June 30, 2026 and December 31, 2025) 1
84,996
86,618
STOCKHOLDERS' EQUITY
Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 101,804,938 and
100,706,893 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)
10
10
Class V Common Stock, $0.0001 par value (300,000,000 authorized, 241,552,156 shares
issued and outstanding as of June 30, 2026 and December 31, 2025)
24
24
Additional paid-in capital
623,664
623,013
Accumulated earnings (deficit)
(407,171)
(402,960)
Accumulated other comprehensive income (loss)
(1,068)
1,229
Total stockholders' equity
215,459
221,316
Non-controlling interest
434,351
439,092
Total equity
649,810
660,408
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
$ 2,148,431
$ 2,093,976
____________________
1 The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features.
Hagerty, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Six months ended June 30,
2026
2025
OPERATING ACTIVITIES:
in thousands
Net income (loss)
$ (4,704)
$ 74,495
Adjustments to reconcile net income (loss) to net cash from operating activities:
Loss on disposals of equipment, software, and other assets
241
1,211
Change in TRA Liability
—
3,078
Depreciation and amortization
19,422
18,321
Provision for deferred taxes
(26,199)
2,061
Share-based compensation expense
9,710
9,538
Non-cash lease expense
4,174
4,226
Net investment gains
(4,890)
(879)
(Accretion) amortization of discount and premium, net
(1,377)
(2,316)
Amortization of gain on loss portfolio transfer
(2,940)
—
Other
795
355
Changes in assets and liabilities:
Accounts and premiums receivable
128,383
(142,560)
Deferred acquisition costs, net
79,028
(21,964)
Reinsurance recoverables
2,950
(10,390)
Prepaid reinsurance premiums
(27,896)
(7,325)
Advance premiums
21,920
10,590
Due to insurers
(67,278)
68,256
Losses payable and reserves for unpaid losses and loss adjustment expenses
(22,499)
(7,828)
Unearned premiums
186,159
52,957
Ceding commissions payable
(80,032)
35,691
Other assets and liabilities, net
(28,810)
10,197
Net Cash Provided by Operating Activities
186,157
97,714
INVESTING ACTIVITIES:
Capital expenditures
(15,954)
(11,549)
Issuance of notes receivable
(92,151)
(26,617)
Collection of notes receivable
55,261
8,091
Purchases of fixed maturity securities
(228,418)
(98,455)
Purchases of equity securities
(51,041)
(347)
Proceeds from maturities and sales of fixed maturity securities
214,809
96,811
Proceeds from sales of equity securities
35,405
378
Other investing activities
(613)
(151)
Net Cash Used in Investing Activities
(82,702)
(31,839)
FINANCING ACTIVITIES:
Repayments of debt
(61,806)
(124,493)
Proceeds from debt, net of issuance costs
100,825
192,339
Proceeds from loss portfolio transfer
50,500
—
Claims payments made from loss portfolio transfer
(13,259)
—
Distributions paid to non-controlling interest unit holders
(837)
(30,380)
Payment of Series A Convertible Preferred Stock dividends
(5,600)
(5,600)
Funding of TRA Liability payments
(1,545)
(223)
Funding of employee tax obligations upon vesting of share-based payments
(3,251)
(2,452)
Other financing activities
309
289
Net Cash Provided by Financing Activities
65,336
29,480
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents
(156)
2,386
Change in cash and cash equivalents and restricted cash and cash equivalents
168,635
97,741
Beginning cash and cash equivalents and restricted cash and cash equivalents
299,000
232,845
Ending cash and cash equivalents and restricted cash and cash equivalents
$ 467,635
$ 330,586
Key Performance Indicators and Non-GAAP Financial Measures
Key Performance Indicators
The tables below present a summary of our Key Performance Indicators, which include important operational metrics, as well as certain financial measures prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures. We use these Key Performance Indicators to evaluate our business, measure our performance, identify trends against planned initiatives, prepare financial projections, and make strategic decisions. We believe these Key Performance Indicators are useful in evaluating our performance when read together with our Condensed Consolidated Financial Statements prepared in accordance with GAAP.
Three months ended June 30,
2026
2025
Change
GAAP Financial Measures
dollars in thousands (except per share amounts)
Total revenue 1
$ 354,822
$ 379,309
$ (24,487)
(6.5) %
Income before taxes
$ 2,232
$ 53,363
$ (51,131)
(95.8) %
Net income
$ 8,041
$ 47,202
$ (39,161)
(83.0) %
Net income (loss) attributable to Class A Common
Stockholders
$ (1,668)
$ 9,098
$ (10,766)
(118.3) %
Basic earnings (loss) per share ("EPS")
$ (0.02)
$ 0.09
$ (0.11)
(122.2) %
Diluted EPS
$ (0.02)
$ 0.09
$ (0.11)
(122.2) %
Non-GAAP Financial Measures
Adjusted EBITDA
$ 74,505
$ 72,645
$ 1,860
2.6 %
Adjusted Net Income (Loss)
$ (6,188)
$ 43,450
$ (49,638)
(114.2) %
Adjusted Diluted EPS
$ (0.02)
$ 0.12
$ (0.14)
(116.7) %
Insurance Operational Metrics
Total Written Premium
$ 424,502
$ 355,985
$ 68,517
19.2 %
Net Assumed Premium
$ 333,152
$ 236,603
$ 96,549
40.8 %
Hagerty Re Loss Ratio
42.7 %
42.3 %
0.4 %
N/M
Hagerty Re Combined Ratio
89.6 %
89.6 %
— %
N/M
New Business Count — Insurance
166,951
87,872
79,079
90.0 %
Marketplace Operational Metrics
Aggregate Auction Sales
$ 104,446
$ 49,408
$ 55,038
111.4 %
Net Auction Sales
$ 94,374
$ 44,837
$ 49,537
110.5 %
Private Sales
$ 44,136
$ 114,776
$ (70,640)
(61.5) %
BAC Average Loan Portfolio
$ 146,363
$ 81,233
$ 65,130
80.2 %
____________________
N/M = Not meaningful
1
Total Revenue for the three months ended June 30, 2025 has been recast to include "Net investment income" and "Net investment gains" as components of revenue in accordance with the Article 7 reporting standards adopted in 2025. Total revenue as previously presented in accordance with Article 5 was $369 million for the three months ended June 30, 2025.
Six months ended June 30,
2026
2025
Change
GAAP Financial Measures
dollars in thousands (except per share amounts)
Total revenue 1
$ 666,652
$ 707,645
$ (40,993)
(5.8) %
Income (loss) before taxes
$ (18,705)
$ 86,145
$ (104,850)
(121.7) %
Net income (loss)
$ (4,704)
$ 74,495
$ (79,199)
(106.3) %
Net income (loss) attributable to Class A Common
Stockholders
$ (8,189)
$ 15,594
$ (23,783)
(152.5) %
Basic EPS
$ (0.08)
$ 0.16
$ (0.24)
(150.0) %
Diluted EPS
$ (0.08)
$ 0.16
$ (0.24)
(150.0) %
Non-GAAP Financial Measures
Adjusted EBITDA
$ 159,690
$ 120,796
$ 38,894
32.2 %
Adjusted Net Income (Loss)
$ (19,332)
$ 68,802
$ (88,134)
(128.1) %
Adjusted Diluted EPS
$ (0.05)
$ 0.19
$ (0.24)
(126.3) %
Insurance Operational Metrics
Total Written Premium
$ 713,448
$ 600,312
$ 113,136
18.8 %
Net Assumed Premium
$ 650,498
$ 392,254
$ 258,244
65.8 %
Hagerty Re Loss Ratio
40.6 %
42.2 %
(1.6) %
N/M
Hagerty Re Combined Ratio
88.1 %
89.1 %
(1.0) %
N/M
New Business Count — Insurance
278,847
143,181
135,666
94.8 %
Marketplace Operational Metrics
Aggregate Auction Sales
$ 239,825
$ 124,744
$ 115,081
92.3 %
Net Auction Sales
$ 217,810
$ 113,050
$ 104,760
92.7 %
Private Sales
$ 80,966
$ 168,445
$ (87,479)
(51.9) %
BAC Average Loan Portfolio
$ 141,472
$ 72,009
$ 69,463
96.5 %
____________________
N/M = Not meaningful
1
Total Revenue for the six months ended June 30, 2025 has been recast to include "Net investment income" and "Net investment gains" as components of revenue in accordance with the Article 7 reporting standards adopted in 2025. Total revenue as previously presented in accordance with Article 5 was $688 million for the six months ended June 30, 2025.
June 30,
2026
2025
Change
Insurance Operational Metrics
dollars in thousands
Policies in Force
1,855,649
1,559,798
295,851
19.0 %
Policies in Force Retention
88.2 %
88.7 %
(0.5) %
N/M
Vehicles in Force
3,031,566
2,664,611
366,955
13.8 %
HDC Paid Member Count
961,929
907,963
53,966
5.9 %
Marketplace Operational Metrics
BAC Loan Portfolio Balance
$ 146,550
$ 84,515
$ 62,035
73.4 %
____________________
N/M = Not meaningful
Adjusted EBITDA
We define EBITDA as consolidated Net income (loss), excluding Interest expense and other, net, Income tax expense (benefit), and Depreciation and amortization. We define Adjusted EBITDA as EBITDA, further adjusted to (i) exclude net investment gains and losses; (ii) deduct interest expense related to the State Farm Term Loan; (iii) exclude share-based compensation expense; and when applicable, exclude (iv) restructuring, impairment and related charges; (v) gains, losses and impairments related to divestitures; and (vi) certain other unusual items, such as Markel Fronting Arrangement transitional costs during the three and six months ended June 30, 2026.
How This Measure is Useful
When used in conjunction with GAAP financial measures, Adjusted EBITDA is a supplemental measure of operating performance that we believe is a useful measure to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted EBITDA to evaluate our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations. We believe the presentation of Adjusted EBITDA provides securities analysts, investors, and other interested parties with a supplemental view of our operating performance that enhances their understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
Limitations of the Usefulness of This Measure
Adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. Presentation of Adjusted EBITDA should not be considered in isolation or a substitute for, or superior to, the financial information prepared in accordance with GAAP. A reconciliation of Adjusted EBITDA to Net income (loss), the most directly comparable GAAP measure, is presented below.
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
in thousands
Net income (loss)
$ 8,041
$ 47,202
$ (4,704)
$ 74,495
Interest expense and other, net 1
28
4,946
950
6,635
Income tax expense (benefit)
(5,809)
6,161
(14,001)
11,650
Depreciation and amortization
9,716
8,833
19,422
18,321
EBITDA
11,976
67,142
1,667
111,101
Net investment gains
(7,179)
(1,194)
(4,890)
(879)
Interest expense related to State Farm Term Loan 2
(515)
(515)
(1,030)
(1,030)
Share-based compensation expense
5,093
5,146
9,710
9,538
Markel Fronting Arrangement transitional costs 3
64,111
—
153,069
—
Other unusual items 4
1,019
2,066
1,164
2,066
Adjusted EBITDA
$ 74,505
$ 72,645
$ 159,690
$ 120,796
____________________
1
Excludes interest expense related to the BAC Credit Facility, which is recorded within "Selling, general, and administrative expenses" in the Condensed Consolidated Statements of Operations.
2
Interest expense related to the State Farm Term Loan is charged against Adjusted EBITDA as it is directly attributable to the operations of Hagerty Re.
3
Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. The amortization of these deferred ceding commissions was $89 million in the first quarter of 2026, $64 million in the second quarter of 2026, and we expect it to decline to approximately $37 million in the third quarter of 2026 and approximately $9 million in the fourth quarter of 2026 as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement.
4
For the three months ended June 30, 2026, other unusual items includes professional fees related to the pending acquisition of Bennetts. For the six months ended June 30, 2026, other unusual items includes professional fees related to the pending acquisition of Bennetts and additional severance expenses associated with the actions taken in the fourth quarter of 2025. For the three and six months ended June 30, 2025, other unusual items includes certain legal settlement expenses, professional fees associated with the THG Unit Exchange and related secondary offering, and certain material severance expenses.
As a result of our transition to Article 7 reporting standards, Net investment income is reported as a component of revenue and is no longer an adjustment in our reconciliation from Net income (loss) to Adjusted EBITDA. In addition, interest expense related to the State Farm Term Loan is now deducted from Adjusted EBITDA as it is directly attributable to Hagerty Re, which generates a significant portion of our net investment income. The following table presents a reconciliation of Adjusted EBITDA as presented in the prior period in accordance with Article 5, to the current presentation in accordance with Article 7:
Three months ended
Six months ended
June 30, 2025
June 30, 2025
in thousands
Prior presentation of Adjusted EBITDA
$ 63,744
$ 103,352
Net investment income
9,416
18,474
Interest expense related to State Farm Term Loan
(515)
(1,030)
Current presentation of Adjusted EBITDA
$ 72,645
$ 120,796
The following table reconciles Adjusted EBITDA for the year ended December 31, 2026 Outlook to the most directly comparable GAAP measure, which is Net income:
2026 Low
2026 High
in thousands
Net income
$ 18,000
$ 30,000
Interest expense and other, net 1
5,000
5,000
Income tax benefit
(11,000)
(13,000)
Depreciation and amortization
40,000
40,000
Share-based compensation expense
19,000
19,000
Markel Fronting Arrangement transitional costs 2
199,000
199,000
Adjusted EBITDA
$ 270,000
$ 280,000
____________________
1
Excludes interest expense related to the BAC Credit Facility, which is recorded within "Selling, general, and administrative expenses" in the Condensed Consolidated Statements of Operations.
2
Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. The amortization of these deferred ceding commissions was $89 million in the first quarter of 2026, $64 million in the second quarter of 2026, and we expect it to decline to approximately $37 million in the third quarter of 2026 and approximately $9 million in the fourth quarter of 2026 as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement.
Adjusted Net Income (Loss) and Adjusted Diluted EPS
Adjusted Net Income (Loss) represents Net income (loss) attributable to Class A Common Stockholders, assuming the full exchange of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, adjusted to exclude (i) net investment gains and losses; and when applicable, (ii) changes in the TRA Liability; (iii) gains and losses related to divestitures; and (iv) certain other unusual items. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted average shares of Class A Common Stock outstanding, assuming the full exchange of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, Adjusted Net Income (Loss) and Adjusted Diluted EPS are supplemental measures of operating performance that we believe are useful measures to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted Net Income (Loss) and Adjusted Diluted EPS to evaluate our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations. We believe these measures provide securities analysts, investors, and other interested parties with a supplemental view of our operating performance that enhances their understanding of our business and results of operations that may not otherwise be apparent when relying solely on GAAP measures. By assuming the full exchange of all outstanding THG units and Series A Convertible Preferred Stock, we believe these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income (loss) attributable to Class A Common Stockholders driven by increases in Hagerty, Inc.'s ownership in THG, which is unrelated to our operating performance, and excludes items that are unusual or may not be indicative of our ongoing performance.
Limitations of the Usefulness of These Measures
Adjusted Net Income (Loss) and Adjusted Diluted EPS may differ from similarly titled measures used by other companies due to different methods of calculation, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. Presentation of Adjusted Net Income (Loss) and Adjusted Diluted EPS should not be considered in isolation or a substitute for, or superior to, the financial information prepared in accordance with GAAP. While these measures are useful in evaluating our performance, they assume the full exchange of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, which has not occurred and may not occur. Further, the adjustments made to arrive at Adjusted Net Income (Loss) exclude certain expenses and income that may recur in the future. Adjusted Net Income (Loss) and Adjusted Diluted EPS should be evaluated in conjunction with our GAAP financial results. A reconciliation of Adjusted Net Income (Loss) to Net income (loss) attributable to Class A Common Stockholders, the most directly comparable GAAP measure, and the computation of Adjusted Diluted EPS are presented below.
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Numerator:
in thousands (except per share amounts)
Net income (loss) attributable to Class A Common
Stockholders
$ (1,668)
$ 9,098
$ (8,189)
$ 15,594
Adjustments:
Accretion of Series A Convertible Preferred Stock
1,948
1,875
3,978
3,750
Net income (loss) attributable to non-controlling interest
7,761
36,229
(493)
55,151
Net investment gains
(7,179)
(1,194)
(4,890)
(879)
Change in TRA Liability
—
3,078
—
3,078
Other unusual items 1
1,019
2,066
1,164
2,066
Tax impact of above adjustments 2
(8,069)
(7,702)
(10,902)
(9,958)
Adjusted Net Income (Loss)
$ (6,188)
$ 43,450
$ (19,332)
$ 68,802
Denominator:
Weighted average shares of Class A Common Stock
outstanding — Diluted
101,797
90,698
101,418
91,247
Adjustments:
Assumed exchange of non-controlling interest THG units
for shares of Class A Common Stock
245,001
255,105
245,051
255,138
Assumed conversion of shares of Series A Convertible
Preferred Stock into shares of Class A Common Stock
6,785
6,785
6,785
6,785
Assumed vesting of share-based compensation awards
7,951
8,580
7,979
7,404
Adjusted weighted average shares of Class A Common Stock
outstanding — Diluted
361,534
361,168
361,233
360,574
Adjusted Diluted EPS
$ (0.02)
$ 0.12
$ (0.05)
$ 0.19
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Diluted EPS
$ (0.02)
$ 0.09
$ (0.08)
$ 0.16
Impact of assumed exchange, conversion, or vesting of
remaining potentially dilutive securities 3
0.04
0.04
0.07
0.05
Non-GAAP adjustments 4
(0.04)
(0.01)
(0.04)
(0.02)
Adjusted Diluted EPS
$ (0.02)
$ 0.12
$ (0.05)
$ 0.19
____________________
1
For the three months ended June 30, 2026, other unusual items includes professional fees related to the pending acquisition of Bennetts. For the six months ended June 30, 2026, other unusual items includes professional fees related to the pending acquisition of Bennetts and additional severance expenses associated with the actions taken in the fourth quarter of 2025. For the three and six months ended June 30, 2025, other unusual items includes certain legal settlement expenses, professional fees associated with the THG Unit Exchange and related secondary offering, and certain material severance expenses.
2
Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an estimated effective tax rate of (58.0)% and 24.2% for the three months ended June 30, 2026 and 2025, respectively, and 13.8% and 23.9% for the six months ended June 30, 2026 and 2025, respectively, which considers the U.S. federal statutory rate of 21%, a combined state income tax rate of approximately 5% (net of federal benefits and required valuation allowances), and certain material permanent items.
3
Assumes the exchange of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards for shares of Class A Common Stock, resulting in the elimination of the non-controlling interest and recognition of the Net income (loss) attributable to non-controlling interest, as well as elimination of the accretion of Series A Convertible Preferred Stock.
4
Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation above for additional information.
Comparability Bridge
Due to the expanded underwriting and claims authority granted to us under the Markel Fronting Arrangement, we now control the Essentia book of business. While our U.S. MGA subsidiary and Hagerty Re continue to operate in the same manner they have historically, beginning on January 1, 2026, the benefit of our MGA services is being received by Hagerty Re and not Essentia. As a result, effective in the first quarter of 2026, we are no longer recognizing commission revenue or the associated ceding commission expense for Essentia-originated policies in our Condensed Consolidated Financial Statements. However, ceding commission expense associated with Essentia policies issued in 2025 will continue to be recognized ratably over the remaining term of those policies throughout 2026. In addition, policy acquisition costs incurred by our U.S. MGA subsidiary for Essentia policies issued in 2026 are being deferred and amortized over the policy term. Accordingly, our entry into the Markel Fronting Arrangement has reduced the period‑to‑period comparability of our Condensed Consolidated Financial Statements.
The following table provides a reconciliation of the standalone results of operations for our Hagerty Re and MGA+ reporting units for the three months ended June 30, 2026, which reflect the continuing operations of those businesses, to total insurance segment results of operations included in our Condensed Consolidated Statements of Operations:
Three months ended June 30, 2026
Hagerty Re:
Essentia
Policy Year
2025 (a)
Hagerty Re:
Essentia
Policy Year
2026 & Other
Carriers (b)
Hagerty Re
Total
MGA+ (c)
Consolidation
Entries
Insurance
Segment
REVENUES:
in thousands
Earned premium, net
$ 157,365
$ 94,591
$ 251,956
$ —
$ —
$ 251,956
Commission and fee revenue
—
167,213
(143,548)
(e)
23,665
Membership and other revenue
—
21,361
—
21,361
Net investment income
9,694
1,037
—
10,731
Net investment gains
7,179
—
—
7,179
Total revenue
268,829
189,611
(143,548)
314,892
EXPENSES:
Losses and loss adjustment expenses, net
107,522
3,187
(d)
—
110,709
Policy acquisition costs, net:
Ceding commission expense
71,614
38,959
110,573
—
(43,647)
(e)
66,926
Other policy acquisition costs
4,560
—
12,155
(f)
16,715
Underwriting and other insurance expenses
2,990
92,037
(d)
(32,080)
(f)
62,947
Selling, general, and administrative expenses
—
55,931
—
55,931
Interest expense and other, net
(1,118)
15
—
(1,103)
Total expenses
224,527
151,170
(63,572)
312,125
INCOME BEFORE TAXES
$ 44,302
$ 38,441
$ (79,976)
$ 2,767
(g)
____________________
(a)
Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2025.
(b)
Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2026 and through other carriers.
(c)
The MGA+ reporting unit includes our MGA operations, as well as our membership, events, and media activities.
(d)
Our MGA subsidiaries incur costs to fulfill certain underwriting and claims handling functions on behalf of Hagerty Re, for which they are compensated through an intercompany commission paid by Hagerty Re. These costs are reflected within the standalone results of our MGA+ reporting unit within "Losses and loss adjustment expenses, net" and "Underwriting and other insurance expenses".
(e)
These consolidation entries are made to eliminate intercompany commission revenue and ceding commission expense between the Hagerty Re and MGA+ reporting units.
(f)
These consolidation entries are made to defer $32.1 million in policy acquisition costs incurred by the MGA+ reporting unit in their standalone results of operations, which are then amortized over the underlying policy term in our Condensed Consolidated Statements of Operations. For the three months ended June 30, 2026, the amortization of such deferred policy acquisition costs totaled $12.2 million.
(g)
This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes.
The following table provides a reconciliation of the standalone results of operations for our Hagerty Re and MGA+ reporting units for the six months ended June 30, 2026, which reflect the continuing operations of those businesses, to our Condensed Consolidated Statements of Operations. This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes.
Six months ended June 30, 2026
Hagerty Re:
Essentia
Policy Year
2025 (a)
Hagerty Re:
Essentia
Policy Year
2026 & Other
Carriers (b)
Hagerty Re
Total
MGA+ (c)
Consolidation
Entries
Insurance
Segment
REVENUES:
in thousands
Earned premium, net
$ 375,638
$ 115,960
$ 491,598
$ —
$ —
$ 491,598
Commission and fee revenue
—
287,449
(247,349)
(e)
40,100
Membership and other revenue
—
43,488
—
43,488
Net investment income
18,926
1,819
—
20,745
Net investment gains
4,890
—
—
4,890
Total revenue
515,414
332,756
(247,349)
600,821
EXPENSES:
Losses and loss adjustment
expenses, net
199,487
9,141
(d)
—
208,628
Policy acquisition costs, net:
Ceding commission expense
170,971
47,700
218,671
—
(55,188)
(e)
163,483
Other policy acquisition costs
5,787
—
16,293
(f)
22,080
Underwriting and other
insurance expenses
9,040
170,740
(d)
(57,245)
(f)
122,535
Selling, general, and
administrative expenses
—
102,797
—
102,797
Interest expense and other, net
(1,911)
792
—
(1,119)
Total expenses
431,074
283,470
(96,140)
618,404
INCOME (LOSS) BEFORE TAXES
$ 84,340
$ 49,286
$ (151,209)
$ (17,583)
(g)
____________________
(a)
Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2025.
(b)
Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2026 and through other carriers.
(c)
The MGA+ reporting unit includes our MGA operations, as well as our membership, events, and media activities.
(d)
Our MGA subsidiaries incur costs to fulfill certain underwriting and claims handling functions on behalf of Hagerty Re, for which they are compensated through an intercompany commission paid by Hagerty Re. These costs are reflected within the standalone results of our MGA+ reporting unit within "Losses and loss adjustment expenses, net" and "Underwriting and other insurance expenses".
(e)
These consolidation entries are made to eliminate intercompany commission revenue and ceding commission expense between the Hagerty Re and MGA+ reporting units.
(f)
These consolidation entries are made to defer $57.2 million in policy acquisition costs incurred by the MGA+ reporting unit in their standalone results of operations, which are then amortized over the underlying policy term in our Condensed Consolidated Statements of Operations. For the six months ended June 30, 2026, the amortization of such deferred policy acquisition costs totaled $16.3 million.
(g)
This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes.
Clear Secure ve 2. čtvrtletí zvýšila tržby na 277,8 mil. USD a čistý zisk na 72,3 mil. USD. Společnost zároveň zvedla celoroční odhad volného cash flow na nejméně 480 mil. USD.
, /PRNewswire/ -- Clear Secure, Inc. (NYSE: YOU), the secure identity company, has released financial results for the second quarter 2026 on its Investor Relations website at https://ir.clearme.com.
Second Quarter Financial Highlights
(percentage change is expressed as year-over-year, unless otherwise specified)
Revenue of $277.8 million was up 26.6%; Total Bookings of $295.9 million increased 32.8% Operating income of $83.0 million, representing a 29.9% operating income margin Net income of $72.3 million, representing a 26.0% net income margin Adjusted EBITDA of $101.1 million, representing a 36.4% Adjusted EBITDA margin and 900 basis points of year-over-year margin expansion, exceeding long-term Adjusted EBITDA margin target of 35% Earnings per Common Share Basic and Diluted of $0.50 and $0.49, respectively Net cash provided by operating activities of $201.2 million; Free Cash Flow of $189.0 million Operational Achievements
Total CLEAR Members grew to 43.5 million, up 30.0% year-over-year and Active CLEAR+ Members grew to 8.3 million, up 15.2% year-over-year, as of June 30, 2026 62 CLEAR+ airports, including second quarter launches of Northwest Arkansas (Bentonville) and Indianapolis, and 280 retail locations with TSA PreCheck® Enrollment Provided by CLEAR as of June 30, 2026 eGates launched across 50 airports as of today; on track for network wide rollout in 2026 CLEAR Concierge, a premium, personalized on-demand airport service now offered at 39 airports Continued strong momentum in CLEAR1 across core verticals Capital Allocation Activities
Approximately $22.2 million returned to shareholders in the second quarter of 2026, related to our regular quarterly dividend of $0.15 per share and distributions Clear Secure, Inc. announced today that its Board of Directors has declared a quarterly cash dividend of $0.15 per share, payable on September 24, 2026 to shareholders of record of Class A Common Stock as of the close of business on September 10, 2026 Third Quarter and Full Year 2026 Guidance
Third quarter 2026 Revenue of $284-287 million, representing 24.6% year-over-year growth at the midpoint Third quarter 2026 Total Bookings of $311-316 million, representing 20.5% year-over-year growth at the midpoint Full Year 2026 Free Cash Flow guidance increased from at least $465 million to at least $480 million, representing at least 39.9% year-over-year growth "Identity has become critical infrastructure and CLEAR has firmly established itself as the trusted, secure identity company. Our second quarter results demonstrate the strength we are seeing across CLEAR Travel and CLEAR1, and we have never been better positioned for what's ahead," said Caryn Seidman Becker, CLEAR's CEO.
Conference Call Details
CLEAR will host a conference call to discuss these results at 8:00 AM (ET) today. Investors and analysts can access the live teleconference call by dialing toll-free 877-407-3089 for U.S. participants and +1-215-268-9854 for international participants. Listeners can access the live webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=NTtHOW8v. A webcast replay will be available after the event on the investor relations website at https://ir.clearme.com.
About CLEAR
The mission of CLEAR, the secure identity company, is to strengthen security and create frictionless experiences. With over 43 million Members and a growing network of partners across the world, CLEAR's secure identity platform is transforming the way people live, work, and travel. Whether you are traveling, at the stadium, or on your phone, CLEAR connects you to the things that make you, you—making everyday experiences easier, more secure, and friction-free. CLEAR is committed to privacy done right. Members are always in control of their own information, and we do not sell biometric or sensitive personal data. For more information, visit clearme.com.
Key Performance Indicators
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Total Bookings (in millions)
$ 222.9
$ 260.1
$ 287.1
$ 291.7
$ 295.9
Total CLEAR Members (in thousands)
33,472
35,751
37,998
40,986
43,501
Active CLEAR+ Members (in thousands)
7,227
7,399
7,616
8,167
8,329
Definitions of Key Performance Indicators
To evaluate performance of the business, we utilize a variety of other non-GAAP financial reporting and performance measures. These key measures include Total Bookings, Total CLEAR Members, and Active CLEAR+ Members.
Total Bookings
Total Bookings represent our total revenue plus the change in deferred revenue during the period. Total Bookings in any particular period reflect sales to new and renewing CLEAR+ subscribers plus any accrued billings to partners. Management believes that Total Bookings is an important measure of the current health and growth of the business and views it as a leading indicator.
Total CLEAR Members
We define Total CLEAR Members as the cumulative number of Members that have registered for the CLEAR platform since inception as of the end of the period. This includes Members who have enrolled through CLEAR+, trials, single-use product purchases, other non-paid uses of the CLEAR platform, and associated family accounts. Total CLEAR Members exclude members who are solely marketing opt-ins and purged accounts, and are adjusted to remove identified duplicate non-paid accounts. Management views this metric as an important tool to analyze the efficacy of our growth and marketing initiatives as new Members are potentially a current and leading indicator of revenues.
Active CLEAR+ Members
We define Active CLEAR+ Members as the number of members with an active CLEAR+ subscription as of the end of the period. This includes CLEAR+ members who have an activated payment method, plus associated family accounts and is inclusive of Members who are in a trial or in a billing grace period. Management views this as an important tool to measure the growth of its CLEAR+ product.
Prior period Active CLEAR+ Members have been recast to reflect the removal of certain lapsed accounts identified in connection with a billing system transformation project undertaken during 2025. This recast had no impact on our consolidated financial statements or non-GAAP financial measures. There has been no other change in the calculation of Active CLEAR+ Members.
CLEAR SECURE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(dollars in thousands, except share and per share data)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 128,228
$ 85,734
Marketable securities
831,040
614,439
Accounts receivable
1,263
1,925
Prepaid revenue share fee
31,347
29,679
Prepaid expenses and other current assets
31,656
32,837
Total current assets
1,023,534
764,614
Property and equipment, net
62,714
59,331
Right of use asset, net
97,215
100,048
Intangible assets, net
2,528
2,753
Goodwill
62,684
62,684
Restricted cash
2,852
2,764
Other assets
326,805
311,198
Total assets
$ 1,578,332
$ 1,303,392
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$ 6,175
$ 7,156
Accrued liabilities
404,692
236,543
Deferred revenue
572,989
516,201
Total current liabilities
983,856
759,900
Other long term liabilities
351,313
339,107
Total liabilities
1,335,169
1,099,007
Commitments and contingencies
Class A Common Stock, $0.00001 par value - 1,000,000,000 shares authorized; 101,961,485 and
101,940,628 shares issued and outstanding, respectively, as of June 30, 2026 and 97,988,039 and
97,986,631 shares issued and outstanding as of December 31, 2025
1
1
Class B Common Stock, $0.00001 par value - 100,000,000 shares authorized; 151,787 shares issued
and outstanding as of June 30, 2026 and 351,787 shares issued and outstanding as of December 31, 2025
—
—
Class C Common Stock, $0.00001 par value - 200,000,000 shares authorized; 14,246,787 shares
issued and outstanding as of June 30, 2026 and 15,745,891 shares issued and outstanding as of
December 31, 2025
—
—
Class D Common Stock, $0.00001 par value - 100,000,000 shares authorized; 18,380,246 shares
issued and outstanding as of June 30, 2026 and 19,130,246 shares issued and outstanding as of
December 31, 2025
—
—
Accumulated other comprehensive (loss) income
(753)
840
Treasury stock at cost, 0 shares as of June 30, 2026 and December 31, 2025
—
—
Retained earnings
158,350
119,791
Additional paid-in capital
48,645
57,102
Total stockholders' equity attributable to Clear Secure, Inc.
206,243
177,734
Non-controlling interests
36,920
26,651
Total stockholders' equity
243,163
204,385
Total liabilities and stockholders' equity
$ 1,578,332
$ 1,303,392
CLEAR SECURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(dollars in thousands, except share and per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$ 277,757
$ 219,467
$ 530,760
$ 430,835
Operating expenses:
Cost of revenue share fee
39,289
31,198
76,167
60,765
Cost of direct salaries and benefits
47,997
47,699
96,249
98,441
Research and development
17,772
18,229
37,223
37,228
Sales and marketing
17,152
14,485
33,106
27,871
General and administrative
65,934
58,532
129,571
113,270
Depreciation and amortization
6,661
6,768
13,491
13,300
Operating income
82,952
42,556
144,953
79,960
Other income (expense):
Interest income, net
7,932
5,805
14,693
11,958
Other income (expense), net
471
(4,055)
2,454
(3,607)
Income before tax
91,355
44,306
162,100
88,311
Income tax expense
(19,045)
(6,431)
(33,406)
(11,853)
Net income
72,310
37,875
128,694
76,458
Less: net income attributable to non-controlling interests
22,260
13,153
39,849
26,331
Net income attributable to Clear Secure, Inc.
$ 50,050
$ 24,722
$ 88,845
$ 50,127
Net income per share of Class A Common Stock and Class B
Common Stock
Net income per common share basic, Class A
$ 0.50
$ 0.26
$ 0.89
$ 0.53
Net income per common share basic, Class B
$ 0.50
$ 0.26
$ 0.89
$ 0.53
Net income per common share diluted, Class A
$ 0.49
$ 0.26
$ 0.87
$ 0.52
Net income per common share diluted, Class B
$ 0.49
$ 0.26
$ 0.87
$ 0.52
Weighted-average shares of Class A Common Stock outstanding, basic
100,694,482
92,990,661
99,954,645
94,150,710
Weighted-average shares of Class B Common Stock outstanding, basic
151,787
612,443
229,135
644,659
Weighted-average shares of Class A Common Stock outstanding, diluted
102,768,573
94,418,159
102,037,728
95,667,917
Weighted-average shares of Class B Common Stock outstanding, diluted
151,787
612,443
229,135
644,659
CLEAR SECURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(dollars in thousands)
Six Months Ended June 30,
2026
2025
Operating activities:
Net income
$ 128,694
$ 76,458
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation of property and equipment
13,266
11,142
Amortization of intangible assets
225
2,158
Noncash lease expense
3,161
3,219
Impairment of strategic investment
—
4,719
Equity-based compensation
22,399
18,091
Deferred income tax
18,296
934
Amortization of revolver loan costs
66
66
Gain on divestiture of a business
—
(635)
Premium amortization and (discount accretion), net on marketable securities
(873)
(85)
Changes in operating assets and liabilities:
Accounts receivable
662
(708)
Prepaid expenses and other assets
2,096
6,683
Prepaid revenue share fee
(1,668)
795
Accounts payable
(702)
(6,871)
Accrued and other long term liabilities
151,999
112,439
Deferred revenue
56,788
(824)
Operating lease liabilities
(2,885)
(6,250)
Net cash provided by operating activities
$ 391,524
$ 221,331
Investing activities:
Purchases of marketable securities
(568,346)
(242,914)
Sales of marketable securities
349,894
269,466
Proceeds from divestiture
—
2,700
Purchase of strategic investment
—
(514)
Purchases of property and equipment
(17,059)
(12,147)
Net cash (used in) provided by investing activities
$ (235,511)
$ 16,591
Financing activities:
Repurchase of Class A Common Stock
(1,238)
(126,345)
Payment of dividend
(30,181)
(23,502)
Payment of special dividend
(20,105)
(25,316)
Distributions to members
(9,875)
(9,839)
Tax distribution to members
(17,229)
(25,986)
Payment of taxes on net settled stock-based awards
(20,303)
(4,939)
Debt issuance costs
(325)
—
Payments under tax receivable agreements
(14,254)
(334)
Net cash used in financing activities
$ (113,510)
$ (216,261)
Net increase (decrease) in cash, cash equivalents, and restricted cash
42,503
21,661
Cash, cash equivalents, and restricted cash, beginning of period
88,498
70,348
Exchange rate effect on cash and cash equivalents, and restricted cash
79
70
Cash, cash equivalents, and restricted cash, end of period
$ 131,080
$ 92,079
Non-GAAP Financial Measures
In addition to our results as determined in accordance with GAAP, we disclose Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow as non-GAAP financial measures that management believes provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, net income margin, net cash provided by (used in) operating activities or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Our Non-GAAP financial measures are expressed in thousands, unless otherwise indicated. We periodically reassess the components of our Non-GAAP adjustments for changes in how we evaluate our performance and changes in how we make financial and operational decisions to ensure the adjustments remain relevant and meaningful.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as net income adjusted for income taxes, interest (income), net, depreciation and amortization, impairment and losses on asset disposals, equity-based compensation expense, net other (income) expense excluding sublease rental income, acquisition-related costs and changes in fair value of contingent consideration. We define Adjusted EBITDA Margin as Adjusted EBITDA expressed as percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are important financial measures used by management and our board of directors ("Board") to evaluate business performance. We believe Adjusted EBITDA and Adjusted EBITDA Margin assist investors in evaluating the performance of the Company's core operations by excluding certain items that impact the comparability of results from period to period.
Free Cash Flow
We define Free Cash Flow as net cash (used in) provided by operating activities adjusted for purchases of property. We believe Free Cash Flow provides useful information to management and investors about the Company's liquidity and cash flow trends. With regards to our CLEAR+ subscription service, we generally collect cash from our Members upfront for annual subscriptions. As a result, when the business is growing Free Cash Flow can be a real time indicator of the current trajectory of the business.
See below for reconciliations of these non-GAAP financial measures to their most comparable GAAP measures.
This release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding the Company's financial position, capital structure, business strategy and plans and objectives of management for future operations, as well as statements regarding business momentum, growth, anticipated demand for our products and services and our business prospects during 2026, as well as expected impacts from our pricing actions, and our guidance for the third quarter and full year 2026. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "guidance," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions, although not all forward-looking statements contain these identifying words.
The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on the Company. Investors are cautioned that any and such forward looking statement are not guarantees of future performance or results and involve risks and uncertainties (some of which are beyond the Company's control), and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including but not limited to: risks relating to adding and retaining Members and partners, including Active CLEAR+ Members, or failing to increase the utilization of our platform; our inability to meet stakeholder expectations or maintain the value and reputation of our brand; failure to successfully compete, and the highly competitive market in which we operate; risks associated with the increased adoption of new technological solutions and services, including first-party identity verification solutions and credential authentication solutions; public confidence in, and acceptance of, identity platforms and biometrics generally, and our platform specifically; failure to successfully implement strategies to increase adoption of our platform or expand into new verticals; risks associated with our commercial agreements and strategic alliances, as well as potential indemnification obligations and certain of our agreements with first parties; risks related to the dependence of portions of our business and results of operations on concessionaire agreements; risks associated with our growth and ability to develop and introduce platform features and offerings, and the need for adequate research and development resources; risks associated with any decline or disruption in the travel industry or a general economic downturn; risks related to our need for additional capital to support our business growth and objectives, and risks that this capital may not be available to us on reasonable terms (or at all) and may result in shareholder dilution; risks associated with acquisitions and other strategic transactions; the need for high-quality personnel; risks associated with the complexity of our platform, including the negative impacts of any errors, system failures or the successful implementation of upgrades or new technology; the risk that our marketing efforts may not be effective; risks associated with changes in the Internet browsers and mobile device accessibility of Members; the ability to maintain our corporate culture; risks associated with payment processing; risks relating to prospective public private partnerships in airports; potential adverse impacts of climate change; our limited experience operating outside of the United States and risks associated with international operations; risks associated with breaches of our information technology systems or those of first parties upon which we rely, protection of our intellectual property, technology and confidential information and failures by first-party technology and devices on which our business relies; our reliance on first-party technology and information systems and our ability to find alternatives if such technology and information systems fail; potential liability due to the infringement on first-party intellectual property by technologies that we incorporate into our products; our ability to meet the standards set for our airport operations by governmental stakeholders; the risk that we may be sued by first parties for alleged infringement, misappropriation or other violations of intellectual property and other proprietary rights; risks associated with the actual or perceived failure to comply with applicable biometrics, artificial intelligence, health information and data privacy laws; failure to comply with the constantly evolving laws and regulations that we are or may become subject to; potential legal proceedings, regulatory disputes and governmental inquiries; coverage afforded under our insurance policies may be inadequate; risks associated with the use of "open source" software; limitations of the SAFETY Act's liability protections; risks associated with our financial performance, including the risk of increased expenses and net losses in the near term and our ability to achieve or sustain profitability in the future; the failure of our estimates or judgments relating to our critical accounting policies; the risk that our focus on delivering a safe, reliable, predictable and frictionless Member experience may not maximize short-term financial results, which may yield results that conflict with the market's expectations and could result in our stock price being negatively affected; risks associated with our structure as a holding company, and our reliance on Alclear Holdings, LLC for certain distributions; risks associated with dividend payments and share repurchases; risks associated with our organizational structure, including those related to our Tax Receivable Agreement; the control of the Company by our co-founder, whose interests in our business may be different than those of our other stockholders; restrictions under our Credit Agreement; the unpredictable nature of tax attributes that will impact our tax treatment; substantial future sales of shares of our Class A Common Stock could cause our stock price to fall; failure to maintain adequate internal controls; the risk that provisions in our charter documents and certain rules imposed by regulatory authorities may delay or prevent our acquisition by a first party; the volatility of our stock price; risks related to the founder performance-based restricted stock unit awards granted at the time of our initial public offering; future issuances of securities, including preferred securities, the terms of which could adversely affect the voting power or value of our Common Stock; and other risks and uncertainties indicated in the Company's Securities and Exchange Commission (the "SEC") common stock reports or documents filed or to be filed with the SEC. Forward-looking statements included in this release speak only as of the date of this release or any earlier date specified for such statements. The Company disclaims any obligation to update any forward looking statements contained herein. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on the Company's behalf may be qualified in their entirety by this Cautionary Note Concerning Forward-Looking Statements .
Reconciliation of Net Income to Adjusted EBITDA and Net Income Margin to Adjusted EBITDA Margin:
Three Months Ended June 30,
Six Months Ended June 30,
(In thousands)
2026
2025
2026
2025
Net income
$ 72,310
$ 37,875
$ 128,694
$ 76,458
Income tax expense
19,045
6,431
33,406
11,853
Interest (income), net
(7,932)
(5,805)
(14,693)
(11,958)
Other (income) expense, net
(26)
4,499
(1,564)
4,504
Depreciation and amortization
6,661
6,768
13,491
13,300
Equity-based compensation expense
11,088
10,292
22,399
18,091
Adjusted EBITDA
$ 101,146
$ 60,060
$ 181,733
$ 112,248
Revenue
$ 277,757
$ 219,467
$ 530,760
$ 430,835
Net income Margin
26.0 %
17.3 %
24.2 %
17.7 %
Adjusted EBITDA Margin
36.4 %
27.4 %
34.2 %
26.1 %
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Progressive uvedla, že její majetkové pojištění je po několikaleté přeměně „podstatně hotové“ a firma dál cílí na růst v balíčcích pojištění auto a home. Zároveň překročila 40 milionů pojistek v platnosti.
Travelers Stock Surges 10% as Earnings Beat Reveals Underwriting DisciplineProgressive NYSE: PGR used its second-quarter investor event to outline its strategy for expanding in bundled auto and home insurance, emphasizing improvements in its property business and the growth potential among “Robinsons,” its term for consistently insured households that bundle auto and home coverage.
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Chief Executive Officer Tricia Griffith also announced a leadership transition in personal lines. Pat Callahan, Personal Lines President, will retire in January after nearly 24 years at the company. Lori Niederst has assumed the newly created role of Chief Personal Lines Officer, overseeing both Personal Lines and CRM.
Allstate’s Comeback Is Turning Into a Profit Machine“Our ability to move people around the company to expand their experience and deepen their skillset is what helps us build an extremely strong bench,” Griffith said, describing Niederst’s appointment as a reflection of the company’s succession planning.
Focus on bundled households Niederst said Progressive’s operating objective remains to grow as quickly as possible while maintaining a combined ratio at or below 96%, alongside high-quality customer service. She said the insurer’s segmentation and rate-to-risk capabilities have enabled it to grow twice as fast as the private-passenger auto industry over the past decade while maintaining a combined ratio seven points lower.
Buffett Spent 60 Years Ignoring Tech and the Bill Is Coming DueCallahan said Progressive recently became the largest U.S. personal auto writer on a trailing-12-month basis, measured by direct premiums written. The company captured approximately 75% of total industry premium growth during 2025, he said.
However, Progressive sees substantial opportunity among Robinson households, which account for nearly 35% of the U.S. auto market. The company has historically been more focused on other customer segments, including inconsistently insured customers, continuously insured non-homeowners and customers with unbundled auto and home policies.
Progressive’s share and policy-in-force growth among Robinsons remains in the single digits, Callahan said, particularly in agency distribution. He noted that Robinson households produce approximately 70% more lifetime premium than unbundled auto-and-home customers and roughly five times the lifetime premium of inconsistently insured customers.
“A key area of focus in agency is having a broadly available, competitively priced property offering,” Callahan said.
Property turnaround moves toward growth phase John Curtis, National Property Leader, said Progressive’s property turnaround is “substantially complete” after a multiyear effort to improve profitability, reduce catastrophe exposure and build underwriting capabilities. The company is focused primarily on owner-occupied homes bundled with Progressive auto policies.
Progressive’s property direct written premium has increased 3.7 times since 2015, and the insurer is now a top-12 property carrier, Curtis said. But the company intentionally slowed property growth after weather losses and profitability pressures weighed on results.
The property business reported a 75% combined ratio in 2025 and a 78% year-to-date combined ratio in 2026. Curtis said the 2025 result benefited from a mild catastrophe season and favorable prior-year development, though underlying profitability was in line with the company’s targets after considering those factors.
High-weather-risk states declined by 23% as a share of total insured value from 2022 through 2025. Total insured value rose 30% during that period, while modeled one-in-100-year probable maximum loss declined nearly 33%. The number of states classified as healthy and positioned for growth increased to 41 in June 2026 from 18 in May 2025. Those 41 states represent 82% of the property insurance market, compared with 40% previously. Curtis said the company reduced Florida exposure through non-renewals focused on higher-risk coastal properties and homes not compliant with recommended building codes. Progressive also managed growth in states with severe convective storm and wildfire risk, while growing faster in lower-risk markets.
Its property initiatives have included by-peril pricing, updated product models, a countrywide risk model, higher wind and hail deductibles where permitted, roof-payment schedules, exposure-management actions and distribution changes. As of June, 93% of Progressive homes premium was written on product model 5.0 or newer, while wildfire and wind-pool non-renewals were 73% complete.
Direct and agency strategies differ Niederst said the company’s Robinson opportunity differs by channel. Direct policy-in-force growth for bundled households has remained positive, supported by HomeQuote Explorer, Progressive’s platform that allows customers to compare property insurance options from affiliated and unaffiliated carriers.
Since online quoting launched in 2017, HomeQuote Explorer quote starts have grown at a 27% compound annual rate to more than 6 million from less than 1 million. The platform now offers 26 product options across 19 carriers, compared with one carrier in 2007, Niederst said.
In the independent-agent channel, Progressive estimates that more than 40,000 agencies representing over 90,000 storefronts sell its products. The company is investing in easier bundled quoting, improved property workflows, agency appointments and agent compensation through its Platinum program.
Progressive has created nearly 500,000 Robinson households through cross-selling since 2023, Niederst said. The company also is using products such as embedded renters coverage, umbrella insurance and vehicle protection to build broader household relationships over time.
Growth, capital and market conditions Management said auto growth has moderated from the elevated levels seen in 2024 and 2025 but remains positive. Progressive surpassed 40 million companywide policies in force, including 2.2 million additional private-passenger auto policies in force, Griffith said.
Personal-lines policies in force increased 8%, including 8% growth in agency auto and 10% growth in direct auto. During the second quarter, Progressive reduced auto rates in 16 states representing 37% of countrywide net written premium, Niederst said. The company reported $1.4 billion in advertising expense for the quarter, up 16% from a year earlier, while saying cost per sale remained below its target acquisition cost.
Chief Financial Officer Andrew Quigg said Progressive continues to work toward a 3.5-to-1 premium-to-surplus ratio for most eligible insurance entities by year-end 2026. He said the company’s capital priorities are reinvesting in underwriting growth and returning excess capital to shareholders when growth opportunities do not require it.
On property reinsurance, Risk and Reinsurance Business Leader Brandon Hopkins said Progressive has kept overall reinsurance capacity relatively stable in recent years despite lower exposures. He said the company is positioned to grow into its existing program while remaining within group risk-appetite and property-business financial constraints.
About Progressive (NYSE:PGR)Progressive Corporation is a large U.S.-based property and casualty insurer that primarily underwrites personal auto insurance along with a broad suite of related products. Its offerings include coverage for private passenger automobiles, commercial auto fleets, motorcycles, boats and recreational vehicles, as well as homeowners, renters, umbrella and other specialty P&C products. Progressive also provides claims handling, risk management and related services to individual and commercial policyholders.
The company distributes its products through a mix of direct channels—online and by phone—and an extensive independent agent network.
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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NiSource vykázala za 2. čtvrtletí čistý zisk 45,5 mil. USD, tedy 0,09 USD na akcii, oproti 102,2 mil. USD a 0,22 USD před rokem. Zároveň potvrdila celoroční upravený EPS 2,02–2,07 USD.
MERRILLVILLE, Ind.--(BUSINESS WIRE)--NiSource Inc. (NYSE: NI) today announced, on a GAAP basis, net income available to common shareholders for the quarter ended June 30, 2026 of $45.5 million, or $0.09 of earnings per diluted share, compared to net income available to common shareholders of $102.2 million, or $0.22 of earnings per diluted share, for the same period of 2025. For the six months ended June 30, 2026, on a GAAP basis, NiSource's net income available to common shareholders was $556.2 million, or $1.15 diluted earnings per share, compared to net income available to common shareholders of $577.0 million, or $1.22 diluted earnings per share, for the same period of 2025.
NiSource also reported second quarter 2026 non-GAAP adjusted net income available to common shareholders of $77.6 million, or $0.16 of consolidated adjusted EPS, compared to non-GAAP adjusted net income available to common shareholders of $101.9 million, or $0.22 of consolidated adjusted EPS, for the same period of 2025. For the six months ended June 30, 2026, NiSource's non-GAAP adjusted net income available to common shareholders was $587.2 million, or $1.22 of consolidated adjusted EPS, compared to non-GAAP adjusted net income available to common shareholders of $564.2 million, or $1.19 of consolidated adjusted EPS, for the same period of 2025. Schedule 1 of this press release contains a complete reconciliation of GAAP measures to non-GAAP measures. **
NiSource is reaffirming its 2026 non‑GAAP consolidated adjusted EPS guidance of $2.02-$2.07 and its compound annual growth rate (CAGR) with respect to non-GAAP consolidated adjusted EPS of 9%-10% from 2026-2033. The company’s 2026-2030 consolidated capital investment plan of $28.6 billion, including $21.0 billion of base capital investments and $7.6 billion of strategic data center infrastructure investments, is expected to support 9%-11% consolidated rate base growth from 2026-2033.
"Our teams continue to deliver a strong value proposition for our utility customers by providing safe and reliable service across a range of weather conditions," said President and CEO Lloyd Yates. "I want to thank our employees and partners for the dedication they demonstrated serving customers during the elevated storm activity we experienced this season. We also advanced our data center strategy with regulatory approvals of our Amazon and Alphabet special contracts, important proof points that demonstrate our ability to support economic growth while creating value for customers. As we enter the second half of the year, we remain confident in our plan, supported by disciplined execution of our efficiency initiatives and regulatory mechanisms that provide visibility into cost recovery."
**Non-GAAP Disclosure Statement
This press release includes financial results and guidance for NiSource with respect to adjusted net income available to common shareholders, base plan adjusted EPS and consolidated adjusted EPS, which are non-GAAP financial measures as defined by the SEC. Commencing in 2026, the company began to present base plan adjusted EPS and consolidated adjusted EPS. As presented, guidance with respect to base plan adjusted EPS, including annual base plan adjusted EPS growth, excludes, in addition to the items historically excluded from adjusted EPS, the impact of data center operations and development activities relating to provision of electric service to current and future data center or other large load customers. The company provides guidance regarding base plan adjusted EPS because it expects that the earnings from its data center operations and development activities will experience a different growth profile compared to the base plan adjusted EPS growth. Providing guidance with respect to base plan adjusted EPS growth, together with guidance regarding consolidated adjusted EPS growth, provides investors with the same information that management considers to evaluate the company’s ongoing business performance and provide greater transparency into the performance of different aspects of our business that are impacted by distinct trends and factors. Consolidated adjusted EPS represents base plan adjusted EPS together with adjusted EPS from our data center operations and development activities. The company includes these measures because management believes they permit investors to view the company’s performance using the same tools that management uses and to better evaluate the company’s ongoing business performance. With respect to guidance on base plan adjusted EPS and consolidated adjusted EPS, NiSource reminds investors that it does not provide a GAAP equivalent of its guidance on base plan adjusted EPS or consolidated adjusted EPS due to the impact of unpredictable factors such as fluctuations in weather, impact of asset sales and impairments and other unusual or infrequent items included in the comparable GAAP measures, which may be material. The company is not able to estimate the impact of such factors on the comparable GAAP measures and, as such, the company is not able to provide a reconciliation of its non-GAAP base plan adjusted EPS guidance or its non-GAAP consolidated adjusted EPS guidance to the comparable GAAP equivalents without unreasonable efforts.
Additional Information
Additional information for the quarter ended June 30, 2026, is available on the Investors section of www.nisource.com and includes segment and financial information and a presentation. The company alerts investors that it intends to use the Investors section of its website, www.nisource.com, and the company’s social media channels to disseminate important information about the company to its investors. Investors are advised to look at NiSource’s website and social media channels for future important information about the company.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability - North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity. Learn more about NiSource’s record of leadership in sustainability, investments in the communities it serves and how we live our vision to be an innovative and trusted energy partner at www.NiSource.com.
The content of our website is not incorporated by reference into this document or any other report or document NiSource files with the Securities and Exchange Commission (“SEC”).
NI-F
Forward-Looking Statements
This Press Release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements in this press release include, but are not limited to, statements concerning our guidance on base and consolidated adjusted EPS, plans, strategies, objectives, expected performance, planned expenditures, recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are not statements of historical fact. Expressions of future goals and expectations and similar expressions reflecting something other than historical fact, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Investors and prospective investors should understand that many factors impact whether any forward-looking statement contained herein will or can be realized. Any one of those factors could cause actual results to differ materially from those projected.
Factors that could cause actual results to differ materially from those projected in any forward-looking statement discussed in this Press Release include, among other things: our ability to execute our business plan or growth strategy, including utility infrastructure investments, or business opportunities; our ability to manage data center growth in our service territories; potential incidents and other operating risks associated with our business; our ability to work successfully with our JV partners; our ability to construct, develop and place into service the generation or transmission assets we develop to support our customers under our current and any future data center contracts on time or at all and consistent with initial cost estimates, as well as the performance of such assets once constructed and placed into service; our ability to obtain the significant additional financing required to construct such generation or transmission assets we develop to support data center contracts on favorable terms, if at all; our ability to recover our investments and realize our expected return under our current and any future data center contracts that we enter into; our ability to maintain our investment grade credit ratings as we finance and pursue our data center strategy, including our performance under our current and any future data center contracts that we enter into; performance by our customers under our current and any future data center contracts; any decision by our current data center customers and any future data center customers to terminate our current or any future data center contracts or reduce the committed capacity thereunder; potential changes in the MISO accreditation treatment of capacity resources; our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in related laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand; our ability to attract, retain or re-skill a qualified workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the performance and quality of third-party suppliers and service providers; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal, including any future associated impact from business opportunities such as data center development as those opportunities evolve; regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; any damage to our reputation; the impacts of natural disasters, acts of terrorism, acts of war or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our debt obligations; any changes to our credit ratings or the credit ratings of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; the actions of activist stockholders; economic conditions in certain industries; the ability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and matters set forth in our subsequent Quarterly Reports on Form 10-Q, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.
All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statement to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to expected results over time or otherwise, except as required by law.
Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to Adjusted Net Income Available to Common Shareholders (Non-GAAP) and Consolidated Adjusted Earnings Per Share (Non-GAAP) (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions, except per share amounts)
2026
2025
2026
2025
GAAP Net Income Available to Common Shareholders
$
45.5
$
102.2
$
556.2
$
577.0
Adjustments to Operating Income:
Operating Revenues:
Weather - compared to normal(1)
16.0
(0.3
)
19.7
(17.1
)
Operating Expenses:
Workplace continuity(2)
21.4
—
21.4
—
Value Captured initiative(3)
5.4
—
5.4
—
Total adjustments to operating income
42.8
(0.3
)
46.5
(17.1
)
Income Taxes:
Tax effect of above items(4)
(10.7
)
—
(11.9
)
4.3
Preferred Dividends:
Preferred dividends redemption premium(5)
—
—
(3.6
)
—
Total adjustments to net income
32.1
(0.3
)
31.0
(12.8
)
Adjusted Net Income Available to Common Shareholders (Non-GAAP)
$
77.6
$
101.9
$
587.2
$
564.2
Diluted Average Common Shares
481.2
472.1
481.0
472.3
GAAP Diluted Earnings Per Share(6)
$
0.09
$
0.22
$
1.15
$
1.22
Adjustments to diluted earnings per share
0.07
—
0.07
(0.03
)
Consolidated Adjusted Earnings Per Share (Non-GAAP)
$
0.16
$
0.22
$
1.22
$
1.19
(1)Represents the estimated impact of actual weather during the period compared to expected normal weather.
(2)Represents incremental costs to support our NIPSCO work continuity plans during the April 2026 lockout period. Costs include external contractors, security and administrative costs, net of any internal labor savings, that would not been incurred had a lockout been avoided.
(3)Represents non-recurring third-party consulting costs and incremental severance incurred in connection with the Value Captured initiative.
(4)Represents income tax expense associated with adjustments to GAAP amounts calculated using the applicable statutory tax rates.
(5)Represents the excise tax refund from the 2023 preferred stock redemption premium.
(6)GAAP Diluted Earnings Per Share includes the effects of income allocated to participating securities. Please refer to Note 5, "Earnings Per Share," within the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2026.
Regal Rexnord ve 2Q zvýšil výnosy na 1 558,4 mil. USD a čistý zisk na 116,8 mil. USD. Firma zároveň zúžila celoroční odhad upraveného EPS na 10,35 až 10,85 USD.
Daily Orders Up 8.8% Versus PY Sales Of $1,558.4 Million, Up 4.2% Versus PY, Up 3.3% On An Organic Basis GAAP Net Income Of $116.8 Million Versus PY Of $79.6 Million, Up $37.2 Million Or 46.7% Versus PY Adjusted EBITDA Of $366.6 Million Versus PY Of $329.7 Million, Up $36.9 Million Or 11.2% Versus PY 2Q 2026 Adjusted EBITDA Includes IEEPA Tariff Refund Benefit Of $32.0 Million Diluted EPS Of $1.74, Up 46.2% Versus PY; Adjusted Diluted EPS Of $2.99, Up 20.6% Versus PY 2Q 2026 Adjusted Diluted EPS Includes IEEPA Tariff Refund Benefit Of $0.39 Cash From Operating Activities of $176.6 Million; Free Cash Flow Of $154.1 Million Net Debt To Adjusted EBITDA (Including Synergies) Ended 2Q At 3.06x; Expect To Be Below 3.0x In The Second Half Of 2026 2026 GAAP EPS Guidance Range Narrowed To $5.42 To $5.92 2026 Adjusted EPS Guidance Range Narrowed To $10.35 To $10.85, Inclusive Of IEEPA Tariff Refund Benefits Worth $0.57 Per Share; Midpoint Remains $10.60 CEO Aamir Paul commented, "I am honored to serve as Regal Rexnord's sixth CEO and excited about the opportunities in front of us. I joined the Company because I believe Regal Rexnord is uniquely positioned to leverage its technology leadership, manufacturing scale, and deep customer relationships to address relevant needs across many attractive end markets. In particular, the development of solutions in eVTOL, robotics and data center are exciting frontiers where Regal Rexnord can play a meaningful role. To start, I am spending my time learning the business. Ultimately, the goal is to create a sustainable platform for growth, while also delivering predictable results along the way."
CFO Rob Rehard commented: "Regal Rexnord delivered solid second-quarter performance. Our mid-term sales growth outlook strengthened further, with enterprise daily orders increasing 8.8% year over year, led by 17.1% daily orders growth in AMC. This momentum reflects improving end markets and continued traction on our growth initiatives. Organic sales growth also accelerated, to 3.3%, despite greater-than-expected headwinds in Resi-HVAC, pool, mining and agriculture markets. Excluding IEEPA refunds, enterprise adjusted EBITDA margins were in line with expectations, despite incremental inflationary pressures, aided in part by incremental synergies; AMC margins improved sequentially and year over year; and adjusted diluted EPS increased versus the prior year."
Rehard concluded, "Looking forward, our top line outlook remains unchanged. We are holding our adjusted EPS outlook range mid-point, including refunds. Our outlook also now reflects a longer timeline to realize planned productivity gains, in some cases to prioritize service levels. Additionally, we are experiencing a lag in price realization relative to a faster pace of inflation, and modestly unfavorable segment mix impacts. Importantly, these factors do not change our view of a strong and broad-based underlying demand environment. We continue to see positive order momentum across the business."
Guidance Update
We are narrowing our 2026 GAAP EPS guidance to a range of $5.42 to $5.92. We are also narrowing our 2026 Adjusted Diluted EPS guidance range to $10.35 to $10.85, which now includes expected IEEPA tariff refund benefits worth $0.57 per share. Our Adjusted Diluted EPS guidance range mid-point remains $10.60.
Segment Performance
Segment results for the second quarter of 2026 versus the same period of the prior year are summarized below:
Automation & Motion Control (AMC) net sales were $477.7 million, an increase of 16.2%, or an increase of 15.6% on an organic basis. Growth was broad-based, but with particular strength in the data center, discrete automation, and aerospace & defense markets. Adjusted EBITDA margin was 21.1% of net sales or 19.9% excluding refunds. Industrial Powertrain Solutions (IPS) net sales were $669.4 million, an increase of 3.0%, or an increase of 2.0% on an organic basis. Growth was strongest in the energy market. Adjusted EBITDA margin was 27.1% of net sales or 25.9% excluding refunds. Power Efficiency Solutions (PES) net sales were $411.3 million, a decrease of 5.5%, or a decrease of 6.6% on an organic basis due to weakness in the residential HVAC and pool markets, which was partially offset by strength in the commercial HVAC market. Adjusted EBITDA margin was 20.5% of net sales or 16.2% excluding refunds. Conference Call
Regal Rexnord will hold a conference call to discuss this earnings release at 9:00 AM CT (10:00 AM ET) on Wednesday, August 5, 2026. To listen to the live audio and view the presentation during the call, please visit Regal Rexnord's Investor website: https://investors.regalrexnord.com. To listen by phone or to ask the presenters a question, dial 1-877-264-6786 (U.S. callers) or 1-412-317-5177 (international callers) and enter 6542343# when prompted. Participants on the call will include Aamir Paul, CEO, and Rob Rehard, EVP & CFO.
A webcast replay will be available at the link above, and a telephone replay will be available at 1-855-669-9658 (U.S. callers) or 1-412-317-0088 (international callers), using a replay access code of 1638161#. Both replays will be accessible for three months after the earnings call.
Supplemental Materials
Supplemental materials and additional information for the quarter ended June 30, 2026 will be accessible before the conference call on August 5, 2026 on Regal Rexnord's Investor website: https://investors.regalrexnord.com. The Company intends to disseminate important information about the Company to its investors on the Investors section of its website: https://investors.regalrexnord.com. Investors are advised to look at Regal Rexnord's website for future important information about the Company. The content of the Company's website is not incorporated by reference into this document or any other report or document Regal Rexnord files with the Securities and Exchange Commission.
About Regal Rexnord
Regal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications.
The Company's end markets benefit from meaningful secular demand tailwinds, and include discrete automation, food & beverage, aerospace & defense, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining.
Regal Rexnord is comprised of three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. Regal Rexnord is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, including a copy of our Sustainability Report, visit RegalRexnord.com.
Forward Looking Statements
All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "plan," "may," "will," "project," "forecast," "would," "could," "should," and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans, and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this communication include, without limitation: the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses in 2024 and the acquisition of Altra Industrial Motion Corp. in 2023 ("Altra Transaction") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra"); the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility; the Company's ability to achieve its objectives on reducing its indebtedness on the desired timeline; dependence on key suppliers and the potential effects of supply disruptions; fluctuations in commodity prices and raw material costs; any unforeseen changes to or the effects on liabilities, future capital expenditures, revenue, expenses, synergies, indebtedness, financial condition, losses and future prospects; unanticipated operating costs, customer loss and business disruption or the Company's inability to forecast customer needs; the Company's ability to retain key executives and employees and risks associated with the transition of our new CEO; uncertainties regarding our ability to execute restructuring plans within expected costs and timing or at all; challenges to the tax treatment that was elected with respect to the merger with the Rexnord PMC business and related transactions; actions taken by competitors and our ability to effectively compete in the increasingly competitive global industries and markets; our ability to develop new products based on technological innovation and marketplace acceptance of new and existing products; our ability to keep pace with rapidly evolving technological developments related to advances in artificial intelligence; dependence on significant customers and distributors; risks that customers may make changes and adjustments to their orders which could result in actual revenue recognized being lower or higher than disclosed order values; risks associated with climate change, including unexpected weather events in markets in which we do business, and uncertainty regarding our ability to deliver on our sustainability commitments and/or to meet related investor, customer and other third party expectations relating to our sustainability efforts and rapidly evolving sustainability regulations; changes to and uncertainty in trade policy, including tariffs on imports into the US from Canada, Mexico, China, and other countries, and retaliatory tariffs and import/export restrictions, including Chinese export restrictions on certain rare earth minerals, or other trade restrictions imposed by the US or other governments; risks associated with global manufacturing, including risks associated with public health crises and political, societal or economic instability, including instability caused by ongoing geopolitical conflicts; issues and costs arising from the integration of acquired companies and businesses; prolonged declines in one or more markets, including disruptions caused by labor disputes or other labor activities, natural disasters, terrorism, acts of war, international conflicts, pandemics and political and government actions; risks associated with excess or obsolete inventory charges including related write-offs or write-downs; economic changes in global markets, such as reduced demand for products, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, tariffs, import/export regulations, immigration, customs, border actions and the like, and other external factors that the Company cannot control; product liability, asbestos and other litigation, or claims by end users, government agencies or others that products or customers' applications failed to perform as anticipated; the Company's ability to identify and execute on future mergers and acquisitions ("M&A") opportunities or other strategic transactions; the impact of any such M&A transactions on the Company's results, operations and financial condition, including the impact from costs to execute and finance any such transactions; unanticipated costs or expenses that may be incurred related to product warranty issues; infringement of intellectual property by third parties, challenges to intellectual property, and claims of infringement on third party technologies; risks related to foreign currency fluctuations or changes in global commodity prices or interest rates; effects on earnings of any significant impairment of goodwill; losses from failures, breaches, attacks or disclosures involving information technology infrastructure and data; costs and unanticipated liabilities arising from rapidly evolving laws and regulations, including data privacy laws, labor and employment laws, environmental laws and regulations, and tax laws and regulations; risks associated with stock price volatility; and other factors that can be found in our filings with the SEC, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Measures
(Unaudited)
(Dollars in Millions, Except per Share Data)
We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor presentations and similar events that may be considered "non-GAAP" financial measures. This additional information is not meant to be considered in isolation or as a substitute for our results of operations prepared and presented in accordance with GAAP.
In this release, we disclose the following non-GAAP financial measures, and we reconcile these measures in the tables below to the most directly comparable GAAP financial measures: adjusted diluted earnings per share, adjusted income from operations, adjusted operating margin, adjusted net sales, adjusted gross margin, net debt, EBITDA, adjusted EBITDA, adjusted EBITDA (including synergies), interest coverage ratio, interest coverage ratio (including synergies), adjusted EBITDA margin, gross debt/adjusted EBITDA, net debt/adjusted EBITDA, net debt/adjusted EBITDA (including synergies), free cash flow, adjusted income before taxes, adjusted provision for income taxes, and adjusted effective tax rate. We believe that these non-GAAP financial measures are useful measures for providing investors with additional information regarding our results of operations and for helping investors understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses adjusted income from operations and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while the other non-GAAP measures disclosed are primarily used to help us evaluate our business and forecast our future results. Accordingly, we believe disclosing and reconciling each of these measures helps investors evaluate our business in the same manner as management. This release also includes non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of this forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of this non-GAAP financial measure would require the Company to predict the timing and likelihood of future restructurings and other charges. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measure is not provided.
In addition to these non-GAAP measures, we use the term "organic sales growth" to refer to the increase in our sales between periods that is attributable to organic sales. "Organic sales" refers to GAAP sales from existing operations excluding any sales from acquired businesses recorded prior to the first anniversary of the acquisition and excluding any sales from business divested/to be exited recorded prior to the first anniversary of the exit and excluding the impact of foreign currency translation. The impact of foreign currency translation is determined by translating the respective period's organic sales using the currency exchange rates that were in effect during the prior year periods.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
(Dollars in Millions, Except per Share Data)
Three Months Ended
Six Months Ended
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Net Sales
$ 1,558.4
$ 1,496.1
$ 3,037.5
$ 2,914.2
Cost of Sales
946.8
931.4
1,876.0
1,821.9
Gross Profit
611.6
564.7
1,161.5
1,092.3
Operating Expenses
396.4
382.4
793.7
750.3
Income from Operations
215.2
182.3
367.8
342.0
Interest Expense
77.4
85.3
158.0
175.5
Interest Income
(6.2)
(5.1)
(10.9)
(9.3)
Other Expense, Net
0.3
0.9
0.5
1.6
Income before Taxes
143.7
101.2
220.2
174.2
Provision for Income Taxes
26.9
21.6
39.0
37.1
Net Income
116.8
79.6
181.2
137.1
Less: Net Income Attributable to Noncontrolling Interests
0.2
0.4
0.2
0.6
Net Income Attributable to Regal Rexnord Corporation
$ 116.6
$ 79.2
$ 181.0
$ 136.5
Earnings Per Share Attributable to Regal Rexnord Corporation:
Basic
$ 1.75
$ 1.19
$ 2.72
$ 2.06
Assuming Dilution
$ 1.74
$ 1.19
$ 2.71
$ 2.05
Cash Dividends Declared Per Share
$ 0.35
$ 0.35
$ 0.70
$ 0.70
Weighted Average Number of Shares Outstanding:
Basic
66.6
66.3
66.5
66.3
Assuming Dilution
66.9
66.5
66.8
66.5
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(Dollars in Millions)
Jun 30, 2026
Dec 31, 2025
ASSETS
Current Assets:
Cash and Cash Equivalents
$ 441.6
$ 521.7
Trade Receivables, Less Allowances of $10.9 Million and $10.5 Million as of June 30, 2026 and
December 31, 2025, Respectively
580.0
524.2
Inventories
1,377.9
1,321.7
Prepaid Expenses and Other Current Assets
422.4
344.7
Total Current Assets
2,821.9
2,712.3
Net Property, Plant and Equipment
868.7
911.8
Operating Lease Assets
146.0
145.2
Goodwill
6,575.8
6,611.3
Intangible Assets, Net of Amortization
3,230.7
3,418.4
Deferred Income Tax Benefits
37.2
36.2
Other Noncurrent Assets
71.5
85.8
Total Assets
$ 13,751.8
$ 13,921.0
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable
$ 642.4
$ 607.3
Dividends Payable
23.3
23.2
Accrued Compensation and Benefits
204.0
205.5
Accrued Interest
60.1
84.0
Other Accrued Expenses
245.1
281.7
Current Operating Lease Liabilities
40.7
38.5
Current Maturities of Long-Term Debt
24.2
24.1
Total Current Liabilities
1,239.8
1,264.3
Long-Term Debt
4,587.6
4,764.6
Deferred Income Taxes
718.2
752.6
Pension and Other Post Retirement Benefits
99.6
106.0
Noncurrent Operating Lease Liabilities
113.9
114.0
Other Noncurrent Liabilities
69.1
66.2
Equity:
Regal Rexnord Corporation Shareholders' Equity:
Common Stock, $0.01 Par Value, 150.0 Million Shares Authorized, 66.6 Million and 66.4 Million
Shares Issued and Outstanding as of June 30, 2026 and December 31, 2025, Respectively
0.7
0.7
Additional Paid-In Capital
4,687.8
4,688.5
Retained Earnings
2,364.7
2,230.3
Accumulated Other Comprehensive Loss
(137.7)
(75.4)
Total Regal Rexnord Corporation Shareholders' Equity
6,915.5
6,844.1
Noncontrolling Interests
8.1
9.2
Total Equity
6,923.6
6,853.3
Total Liabilities and Equity
$ 13,751.8
$ 13,921.0
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Unaudited
(Dollars in Millions)
Three Months Ended
Six Months Ended
Jun 30, 2026
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income
$ 116.8
$ 79.6
$ 181.2
$ 137.1
Adjustments to Reconcile Net Income to Net Cash Provided by Operating
Activities (Net of Acquisitions and Divestitures):
Depreciation
38.5
35.5
75.8
75.6
Amortization
86.4
86.8
173.0
172.2
Noncash Lease Expense
11.8
10.9
23.5
21.8
Share-Based Compensation Expense
2.3
10.3
10.4
19.8
Financing Fee Expense
2.0
4.0
4.4
7.3
Loss (Gain) on Sale of Assets
2.4
(2.3)
2.9
(8.3)
Benefit from Deferred Income Taxes
(16.6)
(24.6)
(30.8)
(43.1)
Other Non-Cash Changes
(1.3)
1.6
(0.6)
2.3
Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures
Receivables
(2.1)
319.2
(60.5)
318.6
Inventories
1.9
(48.0)
(61.5)
(89.8)
Accounts Payable
11.6
15.4
34.6
57.0
Other Assets and Liabilities
(77.1)
34.8
(160.8)
(45.0)
Net Cash Provided by Operating Activities
176.6
523.2
191.6
625.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant and Equipment
(22.5)
(30.2)
(39.9)
(47.0)
Proceeds Received from Sales of Property, Plant and Equipment
2.8
4.5
2.8
14.8
Proceeds Received from Sale of Businesses, Net of Cash Transferred
—
—
—
3.0
Net Cash Used in Investing Activities
(19.7)
(25.7)
(37.1)
(29.2)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings Under Revolving Credit Facility
625.6
448.3
1,184.0
859.8
Repayments Under Revolving Credit Facility
(720.9)
(487.1)
(1,111.5)
(876.8)
Proceeds from Long-Term Borrowings
—
—
850.0
—
Repayments of Long-Term Borrowings
(1.3)
(431.0)
(1,102.6)
(616.9)
Dividends Paid to Shareholders
(23.2)
(23.4)
(46.6)
(46.6)
Shares Surrendered for Taxes
(0.5)
(1.5)
(15.4)
(7.1)
Proceeds from the Exercise of Stock Options
0.3
1.0
6.7
1.4
Net Cash Used in Financing Activities
(120.0)
(493.7)
(235.4)
(686.2)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
Includes $0.39 of benefit related to IEEPA tariff refunds for the three and six months ended June 30, 2026.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
Includes $0.57 of benefit related to IEEPA tariff refunds.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)
Primarily relates to integration costs associated with the Altra Transaction.
ORGANIC SALES GROWTH
Unaudited
(Dollars in Millions)
Three Months Ended
June 30, 2026
Automation &
Motion Control
Industrial
Powertrain
Solutions
Power
Efficiency
Solutions
Total Regal
Rexnord
Net Sales Three Months Ended Jun 30, 2026
$ 477.7
$ 669.4
$ 411.3
$ 1,558.4
Impact from Foreign Currency Exchange Rates
(2.4)
(7.5)
(4.8)
(14.7)
Organic Sales Three Months Ended Jun 30, 2026
$ 475.3
$ 661.9
$ 406.5
$ 1,543.7
Net Sales Three Months Ended Jun 30, 2025
$ 411.1
$ 649.8
$ 435.2
$ 1,496.1
Net Sales from Businesses Divested
—
(0.9)
—
(0.9)
Adjusted Net Sales Three Months Ended Jun 30, 2025
$ 411.1
$ 648.9
$ 435.2
$ 1,495.2
Three Months Ended Jun 30, 2026 Net Sales Growth %
16.2 %
3.0 %
(5.5) %
4.2 %
Three Months Ended Jun 30, 2026 Foreign Currency Impact %
0.6 %
1.1 %
1.1 %
1.0 %
Three Months Ended Jun 30, 2026 Divestitures %
— %
(0.1) %
— %
(0.1) %
Three Months Ended Jun 30, 2026 Organic Sales Growth %
15.6 %
2.0 %
(6.6) %
3.3 %
ORGANIC SALES GROWTH
Unaudited
(Dollars in Millions)
Six Months Ended
June 30, 2026
Automation &
Motion Control
Industrial
Powertrain
Solutions
Power
Efficiency
Solutions
Total Regal
Rexnord
Net Sales Six Months Ended Jun 30, 2026
$ 934.8
$ 1,317.7
$ 785.0
$ 3,037.5
Impact from Foreign Currency Exchange Rates
(15.2)
(26.7)
(11.7)
(53.6)
Organic Sales Six Months Ended Jun 30, 2026
$ 919.6
$ 1,291.0
$ 773.3
$ 2,983.9
Net Sales Six Months Ended Jun 30, 2025
$ 807.4
$ 1,262.5
$ 844.3
$ 2,914.2
Net Sales from Businesses Divested
—
(1.5)
—
(1.5)
Adjusted Net Sales Six Months Ended Jun 30, 2025
$ 807.4
$ 1,261.0
$ 844.3
$ 2,912.7
Six Months Ended Jun 30, 2026 Net Sales Growth %
15.8 %
4.4 %
(7.0) %
4.2 %
Six Months Ended Jun 30, 2026 Foreign Currency Impact %
1.9 %
2.1 %
1.4 %
1.8 %
Six Months Ended Jun 30, 2026 Divestitures %
— %
(0.1) %
— %
(0.1) %
Six Months Ended Jun 30, 2026 Organic Sales Growth %
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the three months ended June 30, 2026.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)
Primarily relates to integration costs associated with the Altra Transaction.
(d)
Represents charges associated with the Securitization Facility.
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the six months ended June 30, 2026.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
(d)
Represents charges associated with the Securitization Facility.
ADJUSTED GROSS MARGIN
Unaudited
(Dollars in Millions)
Three Months Ended
Automation &
Motion Control
Industrial
Powertrain
Solutions
Power
Efficiency
Solutions
Total Regal
Rexnord
Jun 30, 2026
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
Gross Margin(a)
$ 183.3
$ 154.6
$ 286.9
$ 280.4
$ 141.4
$ 129.7
$ 611.6
$ 564.7
Restructuring and Related Costs(b)
0.6
1.6
4.3
4.0
1.7
0.9
6.6
6.5
Operating Lease Asset Step Up
—
—
0.2
0.2
—
—
0.2
0.2
Loss on Sale of Assets
—
—
2.4
—
—
—
2.4
—
Adjusted Gross Margin(a)
$ 183.9
$ 156.2
$ 293.8
$ 284.6
$ 143.1
$ 130.6
$ 620.8
$ 571.4
Gross Margin %
38.4 %
37.6 %
42.9 %
43.2 %
34.4 %
29.8 %
39.2 %
37.7 %
Adjusted Gross Margin %
38.5 %
38.0 %
43.9 %
43.8 %
34.8 %
30.0 %
39.8 %
38.2 %
(a)
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the three months ended June 30, 2026.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
ADJUSTED GROSS MARGIN
Unaudited
(Dollars in Millions)
Six Months Ended
Automation &
Motion Control
Industrial
Powertrain
Solutions
Power
Efficiency
Solutions
Total Regal
Rexnord
Jun 30, 2026
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
Gross Margin(a)
$ 345.1
$ 312.7
$ 561.6
$ 537.9
$ 254.8
$ 241.7
$ 1,161.5
$ 1,092.3
Restructuring and Related Costs(b)
0.8
2.2
8.5
12.8
4.9
1.5
14.2
16.5
Operating Lease Asset Step Up
—
—
0.4
0.4
—
—
0.4
0.4
Loss on Sale of Assets
—
—
2.4
—
—
—
2.4
—
Adjusted Gross Margin(a)
$ 345.9
$ 314.9
$ 572.9
$ 551.1
$ 259.7
$ 243.2
$ 1,178.5
$ 1,109.2
Gross Margin %
36.9 %
38.7 %
42.6 %
42.6 %
32.5 %
28.6 %
38.2 %
37.5 %
Adjusted Gross Margin %
37.0 %
39.0 %
43.5 %
43.7 %
33.1 %
28.8 %
38.8 %
38.1 %
(a)
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the six months ended June 30, 2026.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
NET INCOME TO ADJUSTED EBITDA
Unaudited
(Dollars in Millions)
Three Months Ended
Six Months Ended
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Net Income
$ 116.8
$ 79.6
$ 181.2
$ 137.1
Plus: Income Taxes
26.9
21.6
39.0
37.1
Plus: Interest Expense
77.4
85.3
158.0
175.5
Less: Interest Income
(6.2)
(5.1)
(10.9)
(9.3)
Plus: Depreciation
38.5
35.4
75.8
74.5
Plus: Amortization
86.4
86.8
173.0
172.2
EBITDA(a)
$ 339.8
$ 303.6
$ 616.1
$ 587.1
Plus: Restructuring and Related Costs(b)
9.4
10.6
19.8
26.0
Plus: Share-Based Compensation Expense
2.3
10.3
10.4
19.8
Plus: Transaction and Integration Related Costs(c)
Includes a benefit of $32.0 million related to IEEPA tariff refunds for the three and six months ended June 30, 2026.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
(d)
Represents charges associated with the Securitization Facility.
DEBT TO EBITDA
Unaudited
(Dollars in Millions)
Last Twelve Months
Jun 30, 2026
Net Income
$ 324.9
Plus: Income Taxes
73.7
Plus: Interest Expense
331.6
Less: Interest Income
(25.2)
Plus: Depreciation
154.7
Plus: Amortization
346.9
EBITDA(a)
$ 1,206.6
Plus: Restructuring and Related Costs(b)
40.6
Plus: Share-Based Compensation Expense
27.9
Plus: Transaction and Integration Related Costs(c)
Includes a benefit of $32.0 million related to IEEPA tariff refunds.
(b)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)
Primarily relates to integration costs associated with the Altra Transaction.
(d)
Represents charges associated with the Securitization Facility.
(e)
Synergies expected to be realized in the future are included in the calculation of EBITDA that serves as the basis for financial covenant compliance for certain of the Company's debt. The impact of the synergies the Company expects to realize within 18 months is as follows:
Adjusted EBITDA
$ 1,338.9
Synergies to be Realized Within 18 Months
25.0
Adjusted EBITDA (including synergies)
$ 1,363.9
Net Debt/Adjusted EBITDA (including synergies)
3.06
Interest Expense
$ 331.6
Interest Income
(25.2)
Net Interest Expense
$ 306.4
Interest Coverage Ratio (including synergies)(1)
4.45
(1) Computed as Adjusted EBITDA (including synergies)/Net Interest Expense
Tax Effect of Transaction and Integration Related Costs
1.3
1.7
2.5
3.3
Tax Effect of CEO Transition Costs
0.5
—
0.5
—
Tax Effect of Accounts Receivable Securitization Transaction Costs
0.2
0.2
0.2
0.2
Tax Effect of Operating Lease Asset Step Up
—
0.1
0.1
0.1
Tax Effect of Loss (Gain) on Sale of Assets
0.6
(0.7)
0.7
(2.1)
Discrete Tax Items
(0.1)
0.4
(0.2)
0.5
Adjusted Provision for Income Taxes
$ 52.7
$ 48.4
$ 95.2
$ 89.8
Adjusted Effective Tax Rate
20.8 %
22.6 %
21.7 %
22.5 %
(a)
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(b)
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
Brink’s ve 2. čtvrtletí zvýšil tržby o 7 % na 1,392 mld. USD a upravený EBITDA o 11 %. Firma zároveň zrychluje akvizici NCR Atleos a nyní čeká na uzavření na začátku 1. čtvrtletí 2027.
Revenue growth of 7% reflects the 14th consecutive quarter of mid-teens or greater AMS/DRS organic growth
Net Income increased 2% with Adjusted EBITDA up 11%
GAAP EPS of $1.07 increased 4% with non-GAAP EPS of $2.13 up 18%
NCR Atleos acquisition timeline accelerating behind regulatory momentum
RICHMOND, Va., Aug. 05, 2026 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions ("DRS"), and ATM managed services ("AMS"), today announced second-quarter results.
Mark Eubanks, President and CEO, said: “Our strong second quarter shows continued progress against our AMS/DRS strategy with another quarter of mid-teens or better organic revenue growth. We closed several key customer wins late in the second and early in the third quarter that support continued growth momentum into the second half of the year. The margin accretion power of AMS/DRS is evident in our profitability with record second quarter operating profit and Adjusted EBITDA margin performance. Supported by underlying operational productivity and revenue mix benefits, Adjusted EBITDA margins expanded year-over-year in every segment in the second quarter. We continue to deliver sustainable improvements in cash generation with trailing-twelve-month free cash flow up $32 million dollars to $468 million reflecting conversion of 46 percent. Combined with NCR Atleos' strong second quarter results, released earlier this morning, both companies have now delivered first-half performance ahead of expectations. With increasing visibility into our second half performance and a favorable AMS/DRS growth trajectory, we remain confident in our financial outlook and our ability to fully realize the value creation potential of the acquisition."
"With the shareholder vote now behind us, we continue to make meaningful progress towards closing the NCR Atleos acquisition. Having secured clearance in key jurisdictions, including the United States, Brazil, and India, and with all remaining regulatory reviews well underway, we have line of sight to an accelerated timeline now estimated to be early in the first quarter of 20271. Our dedicated integration management teams continue to advance detailed planning that position us to realize approximately $200 million in run-rate synergies. I remain confident this combination will deliver innovative new solutions for our customers, create opportunities for our employees, and accelerate long-term value creation for our shareholders."
____________________
1 Subject to satisfaction of customary closing conditions, including the receipt of required regulatory approvals and other conditions set forth in the merger agreement.
Second-quarter results are summarized in the following table:
(In millions, except for per share amounts)Second-Quarter 2026 (vs. 2025) GAAP Change Non-GAAP Change Constant Currency Change(b)Revenue$1,392 7% $1,392 7% 4%Operating Profit$133 —% $190 15% 14%Operating Profit Margin 9.6% (70 bps) 13.6% 100 bps 120 bpsNet Income / Adjusted EBITDA(a)$44 2% $257 11% 9%EPS$1.07 4% $2.13 18% 15% (a) The non-GAAP financial metric, adjusted EBITDA, is presented with its corresponding GAAP metric, net income attributable to Brink's.
(b) Constant currency represents 2026 Non-GAAP results at 2025 exchange rates.
2026 Non-GAAP Framework and Q3 2026 Non-GAAP Guidance (Unaudited)
(In millions, except for percentages and per share amounts)
In 2026, management has included additional guidance to better help investors understand currency impacts on our results. Management believes organic revenue growth, adjusted EBITDA margin expansion and free cash flow conversion performance, provided in our 2026 framework, gives investors better visibility into the performance of our business. In addition to our full-year 2026 framework, we have added quarterly guidance for revenue, adjusted EBITDA and non-GAAP EPS in 2026 to clarify the expected impact of near-term currency trends and volatile economic conditions on our results. When, and if, currency volatility lessens, management may return to the previous annual guidance methodology. Revenue guidance is presented in accordance with GAAP.
2026 Non-GAAP FrameworkOrganic Revenue GrowthMid-Single Digits AMS/DRS Organic Revenue GrowthMid-to-High Teens Adjusted EBITDA Margin Expansion30-50bps Free Cash Flow Conversion40-45% Q3 2026
GuidanceRevenue$1,365 - $1,415 Non-GAAP Adjusted EBITDA$263 - $283 Non-GAAP EPS$2.23 - $2.63 The Q3 2026 non-GAAP guidance cannot be reconciled to GAAP without unreasonable effort, as we are unable to accurately forecast certain amounts that are necessary for reconciliation, including the impact of highly inflationary accounting on our Argentina operations, expenses relating to M&A transactions that may or may not occur in the quarter, and other potential non-GAAP adjusting items for which the timing and amounts are uncertain. The Q3 2026 non-GAAP guidance assumes the continuation of current economic trends and reflects management's current assumptions regarding variables that are difficult to accurately forecast, including those discussed in the Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission.
Conference Call
Brink’s will host a conference call on Wednesday, August 5, 2026, at 9:00 a.m. (EDT) to review second-quarter financial results. The conference call can be accessed by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international). Participants should join at least five minutes prior to the start of the call. Participants can pre-register at https://dpregister.com/sreg/10210013/1044abca2fb to receive a direct dial-in number for the call. The call will also be accessible at https://event.choruscall.com/mediaframe/webcast.html?webcastid=tA72Sjv5. A replay of the call will be available through August 12, 2026, at (855) 669-9658 (in the U.S.) or (412) 317-0088 (international). The conference access code is 4560221. An archived version of the webcast will also be available on our website at http://investors.brinks.com.
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Condensed Consolidated Balance Sheets December 31, 2025 June 30, 2026Assets Current assets: Cash and cash equivalents$1,725.9 1,658.2 Restricted cash 541.0 489.7 Accounts receivable, net 766.0 865.7 Prepaid expenses and other 296.1 353.9 Total current assets 3,329.0 3,367.5 Right-of-use assets, net 388.7 391.5 Property and equipment, net 1,130.5 1,091.3 Goodwill 1,515.3 1,505.0 Other intangibles, net 385.2 353.6 Deferred tax assets, net 237.3 240.3 Other 353.2 382.1 Total assets$7,339.2 7,331.3 Liabilities and Equity Current liabilities: Short-term borrowings 241.1 248.8 Current maturities of long-term debt 163.1 98.4 Accounts payable 319.3 330.1 Accrued liabilities 1,180.2 1,180.9 Restricted cash held for customers 294.2 220.0 Total current liabilities 2,197.9 2,078.2 Long-term debt 3,810.1 3,895.1 Accrued pension costs 147.8 149.7 Retirement benefits other than pensions 120.4 125.0 Lease liabilities 310.2 313.3 Deferred tax liabilities 66.5 65.6 Other 279.0 262.0 Total liabilities 6,931.9 6,888.9 Equity: The Brink's Company ("Brink's") shareholders: Common stock, par value $1 per share: Shares authorized: 100.0 Shares issued and outstanding: 2026 - 41.2; 2025 - 41.1 41.1 41.2 Capital in excess of par value 632.1 627.5 Retained earnings 270.1 299.4 Accumulated other comprehensive income (loss) (665.6) (657.6)Brink's shareholders 277.7 310.5 Noncontrolling interests 129.6 131.9 Total equity 407.3 442.4 Total liabilities and equity$7,339.2 7,331.3 The Brink’s Company and subsidiaries
(In millions) (Unaudited)
Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2025
2026
Cash flows from operating activities: Net income$101.3 82.1 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Loss from discontinued operations, net of tax 0.2 0.1 Depreciation and amortization 130.5 158.8 Share-based compensation expense 13.7 15.0 Deferred income taxes 0.1 (5.2)(Gain) loss on marketable securities, sale of property and equipment and derivatives 17.9 (3.3)Impairment losses 2.0 1.3 Retirement benefit funding (more) less than expense: Pension (1.1) 2.7 Other than pension (5.6) 3.3 Unrealized foreign currency (gains) losses (1.2) 10.1 Other operating 1.7 3.8 Changes in operating assets and liabilities, net of effects of acquisitions: Increase in accounts receivable and income taxes receivable (64.8) (106.3)Decrease in accounts payable, income taxes payable and accrued liabilities (84.8) (19.9)Increase (decrease) in restricted cash held for customers 31.3 (66.3)Increase in customer obligations 24.0 40.5 Increase in prepaid and other current assets (11.4) (28.6)Other (10.0) (22.9)Net cash provided by operating activities 143.8 65.2 Cash flows from investing activities: Capital expenditures (110.7) (74.9)Acquisitions, net of cash acquired (5.3) — Marketable securities: Purchases (92.9) (33.6)Sales 64.8 31.7 Cash proceeds from sale of property and equipment 9.8 5.6 Net change in loans held for investment 3.3 2.8 Net change in economic hedges (17.2) 3.1 Other (9.4) 1.1 Net cash used in investing activities (157.6) (64.2) Cash flows from financing activities: Borrowings (repayments) of debt: Short-term borrowings 19.8 8.6 Long-term revolving credit facilities: Borrowings 7,943.5 9,879.5 Repayments (7,757.5) (9,853.6)Other long-term debt: Borrowings 12.2 10.6 Repayments (77.3) (53.4)Acquisition of noncontrolling interest (6.6) — Cash paid for acquisition related settlements and obligations — (1.1)Debt financing costs (1.0) (22.7)Repurchase shares of Brink's common stock (130.0) (30.2)Dividends to: Shareholders of Brink’s (21.1) (21.0)Noncontrolling interests in subsidiaries (0.7) (2.2)Proceeds from exercise of stock options — 0.2 Tax withholdings associated with share-based compensation (17.8) (18.3)Other (1.6) (1.6)Net cash used in financing activities (38.1) (105.2) Effect of exchange rate changes on cash 113.6 (14.8)Cash, cash equivalents and restricted cash: (Decrease) increase 61.7 (119.0)Balance at beginning of period 1,840.4 2,266.9 Balance at end of period$1,902.1 2,147.9 Supplemental Cash Flow InformationSix Months Ended June 30, 2025
2026
Cash paid for income taxes, net$(56.5) (61.3)Cash paid for interest (132.8) (135.4)Proceeds from lessor debt financing 12.0 5.6 The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Second-Quarter 2026 vs. 2025 Impact of
% Change GAAP Organic Acquisitions /
Currency Organic 2Q'25 Change(a) Dispositions(b)
Effect(c) 2Q'26 Total
Growth(a) Revenues: North America$434 10 — — 445 2 2 Latin America 319 7 1 25 352 10 2 Europe 358 8 — 11 377 5 2 Rest of World 189 29 — 2 219 16 15 Segment revenues$1,301 54 1 37 1,392 7 4 Revenues$1,301 54 1 37 1,392 7 4 Operating profit: North America$62 7 — — 70 12 12 Latin America 55 2 — 4 61 10 4 Europe 42 8 — 1 52 21 18 Rest of World 38 14 — — 52 36 36 Segment operating profit 198 31 — 5 234 18 16 Corporate expenses(d) (34) (8) — (3) (44) 31 24 Other items not allocated to segments(d) (31) (31) 10 (5) (56) 84 101 Operating profit$134 (8) 10 (3) 133 — (6) Amounts may not add due to rounding.
(a) Organic change and organic growth are supplemental financial measures that are not required by, or presented in accordance with, GAAP, and are described in more detail on page 13.
(b) Amounts include the impact of prior year comparable period results for acquired and disposed businesses. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 13.
(c) The amounts in the “Currency” column consist of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 13.
(d) See pages 11-12 for further information, where these items are discussed in more detail.
About The Brink’s Company
The Brink’s Company (NYSE:BCO) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our network of operations in 51 countries serves customers in more than 100 countries. For more information, please visit our website at www.brinks.com or call 804-289-9709.
The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)
Six Months Ended June 30, 2026 vs. 2025 Impact of
% Change GAAP Organic Acquisitions /
Currency Organic 2025
Change(a) Dispositions(b)
Effect(c) 2026
Total Growth(a) Revenues: North America$852 31 — 2 884 4 4 Latin America 627 18 1 49 695 11 3 Europe 677 19 1 46 743 10 3 Rest of World 391 42 — 12 445 14 11 Segment revenues$2,547 110 2 109 2,767 9 4 Revenues$2,547 110 2 109 2,767 9 4 Operating profit: North America$115 15 — — 131 13 13 Latin America 109 3 — 6 118 8 3 Europe 71 15 1 5 91 30 22 Rest of World 86 20 — 2 107 25 23 Segment operating profit 380 53 — 13 447 17 14 Corporate expenses(d) (65) (19) — (4) (89) 36 30 Other items not allocated to segments(d) (62) (61) 14 (5) (115) 85 98 Operating profit$253 (27) 14 4 244 (4) (11) Amounts may not add due to rounding.
See page 6 for footnote explanations.
Forward-Looking Statements
This release contains forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target,” "project," "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking information. Forward-looking information in this release includes, but is not limited to: statements made in Mr. Eubanks' quote; second quarter 2026 outlook, including revenue, adjusted EBITDA, and non-GAAP earnings per share (and drivers thereof); full-year 2026 guidance framework, including organic revenue growth, AMS/DRS organic revenue growth, adjusted EBITDA margin expansion, free cash flow conversion and shareholder returns (and the drivers thereof); capital allocation priorities; the impact of U.S. and global macroeconomic conditions; the impact of tariffs and foreign inflation; expected impact from deployment of technology-enabled solutions, including AMS and DRS; the effect of pending legal matters, including the Chile antitrust matter; the impacts of the operating environment in Argentina; the proposed acquisition of NCR Atleos, Inc. ("NCR Atleos"), including: the expected timing and conditions to closing (including receipt of regulatory approvals), the anticipated benefits and synergies of the transaction, the expected financing thereof and the related indebtedness expected to be incurred in connection with the transaction and the ability to service and repay such indebtedness; and strategic priorities and initiatives, including the Brink’s Business System and technology and systems investments.
Forward-looking information in this document is subject to known and unknown risks, uncertainties and contingencies, which are difficult to predict or quantify, and which could cause actual results, performance or achievements to differ materially from those that are anticipated. These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to: our ability to improve profitability and execute further cost and operational improvement and efficiencies in our core businesses; our ability to improve service levels and quality in our core businesses; market volatility and commodity price fluctuations; general economic issues, including supply chain disruptions, fuel price increases, new or increased international tariffs and/or trade barriers, inflation, recessionary conditions and changes in interest rates; seasonality, pricing and other competitive industry factors; investment in information technology (“IT”) and its impact on revenue and profit growth; risks associated with the usage of artificial intelligence (“AI”) technologies; our ability to maintain an effective IT infrastructure and safeguard confidential information and risks related to a failure of our IT systems and networks, including cloud-based applications, and risks associated with current and emerging technology threats, and damage from computer viruses, unauthorized access and cyber and ransomware attacks, including increasingly sophisticated cyber attacks incorporating the use of AI and other similar disruptions; our ability to effectively develop and implement solutions for our customers; risks associated with operating in foreign countries, including changing political, labor and economic conditions (including political conflict or unrest), regulatory issues (including the imposition of international sanctions, including by the U.S. government), military conflicts (including but not limited to the conflict in Israel, Iran and surrounding areas, as well as the possible expansion of such conflicts and potential geopolitical consequences), currency restrictions and devaluations, restrictions on and cost of repatriating earnings and capital, impact on the Company’s financial results as a result of jurisdictions' higher-than-expected inflation and those determined to be highly inflationary, and restrictive government actions, including nationalization; risks related to changes in control over, or economic interest in, foreign subsidiaries, including the anticipated deconsolidation of the Malaysia business, the final determination of the appropriate accounting treatment under U.S. GAAP, and the timing and magnitude of the related impact on the Company's revenue and adjusted EBITDA; labor issues, including labor shortages, negotiations with organized labor and work stoppages; pandemics, acts of terrorism, strikes or other extraordinary events that negatively affect global or regional cash commerce; anticipated cash needs in light of our current liquidity position; the strength of the U.S. dollar relative to foreign currencies and foreign currency exchange rates; our ability to identify, evaluate and complete acquisitions and other strategic transactions and to successfully integrate acquired companies; risks related to the proposed acquisition of NCR Atleos, including: the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; the inability to complete the proposed transaction due to the failure to obtain regulatory or shareholder approval or the failure to satisfy other conditions to closing; risks that the proposed transaction disrupts current plans and operations; the focus of management's time and attention on the transaction and other disruptions arising from the proposed transaction; the ability to recognize the anticipated benefits and synergies of the proposed transaction; the amount of the costs, fees, expenses, and charges related to the proposed transaction and financing obtained in connection with the proposed transaction; the ability to obtain regulatory approvals on the terms expected or anticipated schedule; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain customers, retain and hire key personnel and maintain relationships with suppliers, customers and other business relationships and on operating results and business generally; the risk of litigation and/or regulatory actions related to the proposed transaction; costs related to dispositions and product or market exits; our ability to obtain appropriate insurance coverage, positions taken by insurers relative to claims and the financial condition of insurers; safety and security performance and loss experience; employee, environmental and other liabilities in connection with former coal operations, including black lung claims; the impact of the American Rescue Plan Act and Patient Protection and Affordable Care Act on legacy liabilities and ongoing operations; funding requirements, accounting treatment, and investment performance of our pension plans, the VEBA and other employee benefits; changes to estimated liabilities and assets in actuarial assumptions; the nature of hedging relationships and counterparty risk; access to the capital and credit markets; our ability to realize deferred tax assets; the impact of foreign tax credit regulations; the impact of the One Big Beautiful Bill Act; the outcome of pending and future claims, litigation, and administrative proceedings; our ability to comply with regulatory compliance obligations; public perception of our business, reputation and brand; our ability to identify, recruit and retain key employees; changes in estimates and assumptions underlying our critical accounting policies; and the promulgation and adoption of new accounting standards, new government regulations and interpretation of existing standards and regulations.
This list of risks, uncertainties and contingencies is not intended to be exhaustive. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2025, and in the registration statement on Form S-4 filed in connection with the proposed acquisition of NCR Atleos, and in related disclosures in our other public filings with the Securities and Exchange Commission. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements in this document are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our business or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this document. The forward-looking information included in this document is representative only as of the date of this document and The Brink's Company undertakes no obligation to update, revise or clarify any information contained in this document or forward-looking statements that may be made from time to time on our behalf, whether as a result of new information, future events or otherwise, except as required by law.
The Brink’s Company and subsidiaries
Segment Results: 2025 and 2026 (Unaudited)
(In millions, except for percentages)
Revenues 2025
2026
1Q 2Q 3Q 4Q Full Year 1Q 2Q Six MonthsRevenues: North America$417.6 434.3 434.8 455.9 1,742.6 $439.6 444.5 884.1 Latin America 307.6 319.4 326.8 335.8 1,289.6 343.8 351.6 695.4 Europe 319.0 358.0 375.3 377.2 1,429.5 365.9 377.0 742.9 Rest of World 202.5 188.8 198.1 210.1 799.5 225.8 219.2 445.0 Segment revenues$1,246.7 1,300.5 1,335.0 1,379.0 5,261.2 $1,375.1 1,392.3 2,767.4 Operating Profit 2025
2026
1Q 2Q 3Q 4Q Full Year 1Q 2Q Six MonthsOperating profit: North America$53.1 62.3 56.8 74.5 246.7 $60.9 69.6 130.5 Latin America 53.9 55.0 65.9 69.1 243.9 57.4 60.5 117.9 Europe 28.1 42.4 49.9 56.8 177.2 39.9 51.5 91.4 Rest of World 47.2 38.3 44.1 48.6 178.2 55.0 52.0 107.0 Segment operating profit 182.3 198.0 216.7 249.0 846.0 213.2 233.6 446.8 Corporate expenses(a) (31.7) (33.5) (28.5) (42.4) (136.1) (44.8) (43.9) (88.7)Other items not allocated to segments(a) Reorganization and Restructuring (0.5) (0.2) (0.3) (0.4) (1.4) — — — Acquisitions and dispositions (18.5) (25.8) (17.8) (16.4) (78.5) (15.6) (15.3) (30.9)Argentina highly inflationary impact (6.3) 1.9 (4.7) (1.1) (10.2) 0.5 (3.3) (2.8)NCR Atleos acquisition and transformation initiatives (5.1) (5.4) (8.1) (7.4) (26.0) (38.9) (36.4) (75.3)Non-routine legal matters — — — — — (2.8) (0.1) (2.9)DOJ/FinCEN investigations (0.9) (0.9) (3.7) (1.0) (6.5) (1.2) (0.9) (2.1)Chile antitrust matter (0.2) (0.2) (0.2) (0.2) (0.8) (0.2) (0.4) (0.6)Non-routine auto loss matter — — (1.0) — (1.0) — — — Operating profit$119.1 133.9 152.4 180.1 585.5 $110.2 133.3 243.5 Operating Margin Percentage 2025
2026
1Q 2Q 3Q 4Q Full Year 1Q 2Q Six MonthsOperating margin percentage: North America 12.7 14.3 13.1 16.3 14.2 13.9 15.7 14.8 Latin America 17.5 17.2 20.2 20.6 18.9 16.7 17.2 17.0 Europe 8.8 11.8 13.3 15.1 12.4 10.9 13.7 12.3 Rest of World 23.3 20.3 22.3 23.1 22.3 24.4 23.7 24.0 Segment operating margin percentage 14.6 15.2 16.2 18.1 16.1 15.5 16.8 16.1 Corporate expenses and Other items not allocated to segments(a) (5.0) (4.9) (4.8) (5.0) (5.0) (7.5) (7.2) (7.3)Total operating margin percentage 9.6 10.3 11.4 13.1 11.1 8.0 9.6 8.8 (a) See explanation of items on pages 11-12.
The Brink’s Company and subsidiaries
Other Items Not Allocated To Segments (Unaudited)
(In millions)
Income and expenses not allocated to segments are reported either as “Corporate Expenses” or “Other Items not Allocated to Segments.”
Corporate Expenses include costs to manage the global business and perform activities required by public companies as well as other items that are considered part of the Company's operations and revenue generating activities but are not considered when the chief operating decision maker ("CODM") evaluates segment results. Examples include corporate staff compensation, corporate headquarters costs, regional management costs, share-based compensation, and currency transaction gains and losses.
Other Items not Allocated to Segments include income and expenses that are not necessary to operate our business in the ordinary course and are not considered when the CODM evaluates segment results. These include non-recurring as well as certain recurring costs and gains which are not considered to be part of the Company's operations and revenue generating activities. Each of the items in the “Other Items Not Allocated to Segments” category is excluded from non-GAAP measures.
See below for a summary of the other items not allocated to segments.
Reorganization and Restructuring
Costs associated with certain reorganization and restructuring actions were excluded from reported non-GAAP results. These items included primarily severance charges and asset impairment losses. These costs related to global restructuring initiatives, completed in prior years, mainly to mitigate the impact of external economic conditions in light of the COVID-19 pandemic. Due to the unusual nature of the underlying events that led to these actions, the charges are not considered part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
Acquisitions and dispositions
Certain acquisition and disposition items are not part of the Company's operations and revenue generating activities. These items include non-cash amortization expense for acquisition-related intangible assets, as well as integration, transaction, restructuring and certain compensation costs. All of the items are significantly impacted by the timing and nature of our acquisitions and dispositions, and many are inconsistent in amount and frequency. Management has excluded these amounts when evaluating internal performance. Therefore, we have not allocated these amounts to segment or Corporate results and have excluded these amounts from non-GAAP results.
These items are described below:
2026 Acquisitions and Dispositions
Amortization expense for acquisition-related intangible assets was $29.3 million in the first six months of 2026. 2025 Acquisitions and Dispositions
Amortization expense for acquisition-related intangible assets was $58.9 million in 2025.Restructuring costs related to acquisitions were $11.8 million in 2025.Net charges of $2.2 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.We incurred $3.8 million in integration costs in 2025.Transaction costs related to business acquisitions were $2.7 million in 2025. Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. In 2025, we recognized $10.2 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $17.0 million. In the first six months of 2026, we recognized $2.8 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $0.8 million. Highly inflationary adjustments also impact gains and losses on marketable securities due to the change in exchange rates. These non-cash charges are not part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
NCR Atleos acquisition and transformation initiatives On February 26, 2026, we entered into a definitive agreement to acquire NCR Atleos. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and other customary closing conditions. This acquisition represents a significant strategic step for Brink’s, expanding the scale of the combined company and supporting continued growth in our AMS and DRS offerings, which reflect an increasing portion of our business mix.
During 2023, we initiated a multi-year program intended to accelerate growth and drive margin expansion through transformation of our business model. The program is designed to help us standardize and streamline our commercial and operational systems and processes, as well as back-office functions, including finance and information technology. The efforts will drive continuous improvement and achieve operational excellence.
Accordingly, we incurred $26.0 million of expense in 2025, which primarily included third-party professional services, project management charges, and severance. During the first six months of 2026, we incurred $75.3 million of related costs, including severance costs; fees to attorneys, accountants and other professional advisors related to the NCR Atleos acquisition; as well as third-party professional services. Because these expenses are associated with discrete transformation initiatives, they are not reflective of our ongoing operating cost structure and are not indicative of our core operating expenses or normal activities. Accordingly, management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
Non-routine legal matters In the first six months of 2026, we recognized $2.9 million of probable losses and related legal costs in connection with non-routine legal matters. These costs relate to fact-specific matters that management does not believe are indicative of the Company's underlying operational performance for the period. Additionally, the nature of these amounts and the underlying claims are such that they are not reasonably likely to recur based on the Company's historical experience within two years, nor were there similar charges for such matters within the prior two years. Management has excluded these amounts when evaluating internal operating performance, and accordingly, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
DOJ/FinCEN investigations During 2025, we accrued $6.5 million in connection with the U.S. Department of Justice ("DOJ") and U.S. Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN") investigations, which represents third-party legal costs associated with these matters, including upfront expenses that are directly attributable to establishing compliance programs. In the first six months of 2026, we accrued $2.1 million in connection with the DOJ and FinCEN investigations, which represents third-party legal costs associated with these matters. In the first quarter of 2025, we reached resolutions with both the DOJ and FinCEN. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts and the underlying investigations are such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021 and recognized additional amounts in subsequent years (which were primarily related to changes in currency rates). Overall, these charges related to a potential fine associated with an investigation by the Chilean Fiscalía Nacional Económica or "FNE" (the Chilean antitrust agency). The investigation is related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including the estimated loss and associated third-party costs, is such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years of the underlying event. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
Non-routine auto loss matter In 2023, a Brink’s employee was involved in a motor vehicle accident with unique circumstances that resulted in the death of a third party and, in connection with the ensuing litigation, Brink’s recognized a $10.0 million charge. Due to the unusual nature of the matter, including the unique circumstances of the claim, potential magnitude of remedy, and variation from our ordinary-course litigation strategy, we consider the litigation as separate and distinct from routine legal matters. Management does not believe that similar litigation will likely recur within the next two years, and there have been no similar matters within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
The Brink’s Company and subsidiaries
Non-GAAP Measures and Reconciliations to GAAP Measures (Unaudited)
(In millions, except for percentages and per share amounts)
Non-GAAP measures described below and included in this press release are financial measures that are not required by or presented in accordance with GAAP. The purpose of the disclosure of these non-GAAP measures is to report financial information from the primary operations of our business by excluding the effects of certain income and expenses that do not reflect the ordinary earnings of our operations.
These non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as such measures allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. The reconciliations in the tables below include adjustments that we do not consider reflective of our operating performance as they result from events and circumstances that are not a part of our core business. Additionally, certain non-GAAP results, including non-GAAP operating profit and free cash flow before dividends, are utilized as performance measures in certain management incentive compensation plans.
Non-GAAP results should not be considered as an alternative to results determined in accordance with GAAP and should be read in conjunction with their GAAP counterparts. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.
The items excluded from non-GAAP measures are considered by us to be nonrecurring, infrequent or unusual costs and gains as well as other items not considered part of our operations and revenue generating activities. Non-recurring and infrequent items are items that are not reasonably expected to recur in the following two years.
In addition to the rationale described above, we believe the following non-GAAP metrics are helpful to investors in assessing results of operations consistent with how our management evaluates performance:
Non-GAAP operating profit and Non-GAAP operating profit margin: Non-GAAP operating profit equals GAAP operating profit excluding Other Items not Allocated to Segments. Non-GAAP operating margin equals non-GAAP operating profit divided by revenues.Non-GAAP income from continuing operations attributable to Brink's: This measure equals GAAP income from continuing operations attributable to Brink's excluding Other Items not Allocated to Segments as well as certain retirement plan expenses/gains, taxes on return of capital, impairment of certain debt securities, and unusual adjustments to deferred tax asset valuation allowances.Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA: EBITDA is calculated by starting with net income attributable to Brink's and adding back the amounts for interest expense, income taxes, depreciation and amortization. Adjusted EBITDA equals EBITDA excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains, taxes on return of capital, impairment of certain debt securities, unusual adjustments to deferred tax asset valuation allowances, income tax rate adjustments, share-based compensation and marketable securities (gain) loss.Non-GAAP diluted EPS from continuing operations attributable to Brink's common shareholders: This measure equals non-GAAP income from continuing operations attributable to Brink's divided by diluted shares.Organic change and organic growth: Organic change represents the change in revenues or operating profit between the current and prior period excluding the effect of acquisitions and dispositions for one year after the transaction and changes in currency exchange rates. Organic growth is the percentage change of organic growth versus the prior year amount.Impact of acquisitions/dispositions: This measure represents the impact of acquisitions or dispositions without a full year of reported results in either comparable period.Currency effect: This measure consists of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of changes in foreign currency rates from the prior year period.Non-GAAP pre-tax income, Non-GAAP income tax and Non-GAAP effective income tax rate: Non-GAAP pre-tax income and non-GAAP income tax equal their GAAP counterparts excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains. Non-GAAP effective income tax rate equals non-GAAP income tax divided by non-GAAP pre-tax income. In addition to the rationale described above, we believe the following non-GAAP metrics are helpful in assessing cash flow and financial leverage consistent with how our management evaluates performance:
Free cash flow before dividends: Free cash flow before dividends is a non-GAAP financial measure that represents management’s calculation of cash flows that are available for capital and investing activities such as paying dividends, share repurchases, debt, acquisition and other investments. We define free cash flow before dividends as net cash provided by (used in) operating activities, adjusted to exclude certain operating activities related to cash that is not available for corporate purposes, including the impact of cash flows from restricted cash held for customers, as well as cash received and processed in certain of our secure cash management services operations. The resulting amount is further adjusted to include the impact of cash flows related to property and equipment used to operate our business, including capital expenditures, cash proceeds from the sale of property and equipment, as well as lessor debt financing. Free cash flow before dividends also excludes the cash impact of transaction costs related to the NCR Atleos acquisition. Reconciliations of Non-GAAP to GAAP Measures
Non-GAAP measures are reconciled to comparable GAAP measures in the tables below. Amounts reported for prior periods have been updated in this press release to present information consistently for all periods presented. Most of the reconciling adjustments are described in Other Items Not Allocated to Segments above on pages 11-12. Additional reconciling items include the following:
Retirement plans We incur costs, such as interest expense and amortization of actuarial gains and losses, associated with certain retirement plans that have been frozen to new entrants. Furthermore, we also incur non-cash settlement charges and curtailment gains related to all of our retirement plans. These costs and gains are not considered to be part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. Therefore, they are excluded from non-GAAP results.
Valuation allowance on tax credits Gains and charges related to major tax law changes are not considered to be part of the Company's operations and revenue generating activities. As a result of the One Big Beautiful Bill Act, we increased a valuation allowance on deferred tax assets and recorded a significant income tax expense in the third quarter of 2025. Management has excluded these amounts when evaluating internal performance. Therefore, they are excluded from non-GAAP results.
Tax on return of capital As a result of lifted foreign exchange controls and the official and unofficial foreign exchange rates convergence in Argentina, we were able to make an unusual and infrequent return of capital. Due to Argentinian tax law, a withholding tax was imposed on the return of capital. This withholding tax is not considered to be part of the Company’s operations and revenue generating activities. Management has excluded this amount when evaluating internal performance. Therefore, it is excluded from non-GAAP results.
Change in restricted cash held for customers Restricted cash held for customers is not available for general corporate purposes such as payroll, vendor invoice payments, debt repayment, or capital expenditures. Because the cash is not available to support the Company's operations and revenue generating activities, management excludes the changes in the restricted cash held for customers balance when assessing cash flows from operations. We believe that the exclusion of the change in restricted cash held for customers from our non-GAAP operating cash flows measure is helpful to users of the financial statements as it presents this financial measure consistent with how management assesses this liquidity measure.
Change in certain customer obligations The title to cash received and processed in certain of our secure cash management services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and is thus not available for general corporate purposes. Because the cash is not available to support our operations and revenue generating activities, management excludes the changes in this specific cash balance when assessing cash flows from operations. We believe that the exclusion of the change in this cash balance from our non-GAAP operating cash flows measure is helpful to the users of our financial statements as it presents this financial measure consistent with how our management assesses this liquidity measure.
NCR Atleos acquisition cash flows This represents the cash outflows during the period related to NCR Atleos acquisition-related transaction costs, such as fees to attorneys, accountants and other professional advisors.
Non-GAAP Results Reconciled to GAAP
Six months ended June 30, 2025 Six months ended June 30, 2026 Pre-tax income(a) Income tax Effective income tax rate(a) Pre-tax income(a)
Income tax
Effective income tax rate(a) GAAP$144.3 42.8 29.7% $113.7 31.5 27.7%Reorganization and Restructuring(c) 0.7 0.1 — — Acquisitions and dispositions(c) 46.5 13.5 30.5 6.4 Argentina highly inflationary impact(c) 9.1 0.1 4.4 — NCR Atleos acquisition and transformation initiatives(c) 10.5 0.2 75.3 11.6 Non-routine legal matters(c) — — 2.9 0.7 DOJ/FinCEN investigations(c) 1.8 — 2.1 0.5 Chile antitrust matter(c) 0.4 0.1 0.6 0.2 Retirement plans(b) (3.1) (0.7) 2.7 0.6 Income tax rate adjustment(d) — 1.7 — 11.9 Non-GAAP$210.2 57.8 27.5% $232.2 63.4 27.3% Amounts may not add due to rounding.
(a) From continuing operations.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 14 for details.
(c) See “Other Items Not Allocated To Segments” on pages 11-12 for details.
(d) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 27.3% for 2026 and was 27.5% for 2025.
The Brink’s Company and subsidiaries
Non-GAAP Results Reconciled to GAAP (Unaudited) - continued
(In millions, except for percentages and per share amounts)
(a) See “Other Items Not Allocated To Segments” on pages 11-12 for details.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 14 for details.
(c) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 27.3% for 2026 and was 27.5% for 2025.
(d) Due to the impact of transformation-related equity awards, there was a $0.2 million non-GAAP adjustment to share-based compensation in the second quarter of 2026. There is no difference between GAAP and non-GAAP share-based compensation amounts for the other periods presented.
(e) Due to the impact of Argentina highly inflationary accounting, there was a $1.0 million non-GAAP adjustment for a loss in the first quarter of 2025, a $3.7 million non-GAAP adjustment for a loss in the second quarter of 2025, a $0.9 million non-GAAP adjustment for a loss in the third quarter of 2025, a $6.9 million non-GAAP adjustment for a loss in the fourth quarter of 2025, and a $1.6 million non-GAAP adjustment for a loss in the first quarter of 2026. In the second quarter of 2026, there were no non-GAAP adjustments for marketable securities gains or losses due to Argentina highly inflationary accounting.
(f) Related to the impairment of specific debt securities in Argentina in 2025.
Full Year Six Months
Ended June 30, 2025
2025
2026
Cash flows provided from operating activities - GAAP$639.5 $143.8 $65.2 (Increase) decrease in restricted cash held for customers(a) (46.1) (31.3) 66.3 Increase in certain customer obligations(a) (16.5) (24.0) (40.5)Capital expenditures (203.1) (110.7) (74.9)Cash proceeds from sale of property and equipment 18.5 9.8 5.6 Proceeds from lessor debt financing 43.2 12.0 5.6 Subtotal$435.5 (0.4) 27.3 NCR Atleos acquisition cash flows(a) — — 4.7 Free cash flow before dividends(a)$435.5 (0.4) 32.0 (a) Free cash flow before dividends is a supplemental financial measure that is not required by, or presented in accordance with, GAAP. See page 13 for further information on this non-GAAP measure, and see page 14 for descriptions of the adjustments.
Gibraltar Industries ve 2. čtvrtletí zvýšila tržby z pokračujících operací o 64,6 % na 509,5 mil. USD a upravený zisk na akcii činil 1,11 USD. Firma zároveň potvrdila celoroční výhled na rok 2026.
BUFFALO, N.Y.--(BUSINESS WIRE)--Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the residential, agtech, and infrastructure markets, today reported its financial results for the three-month and six-month period ended June 30, 2026.
As a reminder, Gibraltar reclassified its Renewables business as discontinued operations on June 30, 2025. Subsequently, the electrical balance-of-systems (eBOS) and racking and foundations businesses were sold on February 20, and July 15, 2026, respectively, completing Gibraltar’s divestiture of Renewables.
“We delivered solid second quarter results with our Residential business driving good organic growth and participation gains in a flat-to-down market. Our building products business grew 12.7% organically - if you assume we owned OmniMax in Q2 2025, the combined business actually grew 15.5%, showing the strength of this combination in the marketplace. In line with our long-term strategic plan, our Residential business overall continues to become a larger part of our portfolio and represented 83% of total revenue in the quarter, with segment EBITDA margin improving sequentially 340 basis points to 19.0%. OmniMax integration continues to accelerate as our leadership team and integration management office drive our top 11 critical workstreams and synergy capture. We are also excited to announce we were recently awarded an additional 630 locations now making us the supplier of trims and flashings to more than 1,700 locations across the country for one of our customers – validating our ability to support our customers locally on a national basis with a value proposition that makes sense for them. We believe the addition of OmniMax to our product portfolio was instrumental in receiving this award,” stated Chairman and CEO Bill Bosway.
“Including a full quarter of OmniMax, total Gibraltar net sales increased 64.6% on organic growth of 5%, adjusted EBITDA increased 59.7%, and we delivered adjusted EPS of $1.11. As expected, we generated cash in our continuing operations during the quarter.”
Second Quarter 2026 Results from Continuing Operations
Three Months Ended June 30,
2026
2025
Change
Net Sales
$509.5
$309.5
64.6%
Net Income
$27.3
$29.4
(7.1)%
Adjusted Net Income
$33.0
$33.6
(1.8)%
Adjusted EBITDA
$88.0
$55.1
59.7%
GAAP Earnings Per Share – Diluted
$0.92
$0.99
(7.1)%
Adjusted EPS – Diluted
$1.11
$1.13
(1.8)%
Net Sales
Driven primarily by the OmniMax acquisition as well as by organic growth in Residential and Agtech segments GAAP Income / EPS
Includes pretax expenses of $5.8 million, or $0.15 per share, related to OmniMax acquisition integration and restructuring costs Adjusted Net Income / EPS
$33.0 million, or $1.11 per share, including the interest expense impact of $20.6 million Price management actions and participation gains offset ongoing commodity and fuel inflation primarily related to ongoing geopolitical issues Adjusted measures are further described in the appended reconciliation of adjusted financial measures.
Second Quarter Segment Results
Residential
($Millions) Three Months Ended June 30,
2026 GAAP
2025 GAAP
Change
2026 Adjusted
2025 Adjusted
Change
Net Sales
$425.9
$230.3
84.9%
$425.9
$230.3
84.9%
Operating Income
$60.5
$43.6
38.8%
$63.6
$45.0
41.3%
Operating Margin
14.2%
18.9%
(470) bps
14.9%
19.5%
(460) bps
EBITDA
N/A
N/A
N/A
$80.9
$48.8
65.8%
EBITDA Margin
N/A
N/A
N/A
19.0%
21.2%
(220) bps
Net Sales
OmniMax and metal roofing acquisitions contributed $184 million offset by slowness in mail and package Building Products organic revenue increased 12.7% - if assumed OmniMax was owned in Q2 2025, the combined business grew 15.5% Driven by price/mix and participation gains that more than offset a flat-to-down market with new business in the Midwest, Northeast and Texas. Operating Income / EBITDA
Adjusted EBITDA margin expanded 340 basis points sequentially Executed price actions to offset ongoing commodity and fuel inflation OmniMax Integration
Integration management office executing 11 critical workstreams to drive integration and synergies Completed Phase 2 of organization optimization Raised synergy commitment an additional $3.2 million to $29.4 million with $17.0 million anticipated to be realized in full-year 2026 Awarded national agreement to supply trims and flashings to over 600 locations – starting in Q4 – additional participation gains in Midwest, Northeast and Texas – demonstrating the power of a combined Gibraltar and OmniMax Agtech
($Millions) Three Months Ended June 30,
2026 GAAP
2025 GAAP
Change
2026 Adjusted
2025 Adjusted
Change
Net Sales
$58.8
$54.1
8.7%
$58.8
$54.1
8.7%
Operating Income
$5.9
$(0.5)
NMF
$5.9
$3.0
96.7%
Operating Margin
10.0%
(0.9)%
NMF
10.1%
5.6%
450 bps
EBITDA
N/A
N/A
N/A
$8.1
$5.1
58.8%
EBITDA Margin
N/A
N/A
N/A
13.8%
9.5%
430 bps
Net sales were driven by strength in structures and commercial greenhouse applications. Solid backlog of $66.2 million is down 34% with timing of projects later in the year compared to prior year. Strong quoting activity continues across end markets.
Adjusted operating and EBITDA margin driven by volume, business mix, and 80/20 operating initiatives.
Infrastructure
($Millions) Three Months Ended June 30,
2026 GAAP
2025 GAAP
Change
2026 Adjusted
2025 Adjusted
Change
Net Sales
$24.9
$25.2
(1.2)%
$24.9
$25.2
(1.2)%
Operating Income
$5.8
$7.1
(18.3)%
$5.8
$7.1
(18.3)%
Operating Margin
23.5%
28.1%
(460) bps
23.5%
28.1%
(460) bps
EBITDA
N/A
N/A
N/A
$6.3
$7.9
(20.3) %
EBITDA Margin
N/A
N/A
N/A
25.4%
31.2%
(580) bps
Sales decreased $0.3 million related to customer project timing. Order backlog increased 2% with strong engineering bid / quoting activity. Margin was impacted by lower volume and product mix.
Balance Sheet and Cash Flow
Gibraltar’s policy with respect to cash allocation will be to keep a minimum amount of cash on hand, use the revolver as needed to fund seasonal working capital and pay down debt with excess cash flow.
During the quarter, Gibraltar generated $44.5 million from continuing operations; discontinued operations used $40.8 million in cash. Net debt on the balance sheet was $1.2 billion and revolving credit facility availability was $470 million at quarter-end.
Reiterating 2026 Outlook Range for Continuing Operations
Mr. Bosway added, “Despite the impact of the current macroeconomic and geopolitical environment and a slow Residential end market, we reiterate our full year 2026 outlook. We will continue to execute our 11 integration workstreams, implement synergy initiatives, and focus on participation gains with customers in our Residential business as we drive towards Residential representing an even larger part of the portfolio. The additional business we were recently awarded in our Residential segment demonstrates the power of a combined Gibraltar and OmniMax in the marketplace. We also expect Agtech and Infrastructure to deliver their respective plans for the second half of the year.”
For the Twelve Months Ended December 31,
2026
2025
Net Sales (in billions)
$1.76
-
$1.83
$1.14
Adjusted EBITDA (in millions)
$310
-
$326
$185
Adjusted EBITDA Margin
17.6%
-
17.8%
16.3%
GAAP EPS – Diluted
$2.40
-
$2.80
$3.25
Adjusted EPS – Diluted
$3.65
-
$4.05
$3.92
Second Quarter 2026 Conference Call Details
Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2026. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call also may be accessed by dialing (877) 407-3088 or (201) 389-0927. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.
About Gibraltar
Gibraltar is a leading manufacturer and provider of products and services for the residential, agtech, and infrastructure markets. Gibraltar’s mission, to make life better for people and the planet, is fueled by advancing the disciplines of engineering, science, and technology. Gibraltar is innovating to reshape critical markets in comfortable living and productive growing throughout North America. For more please visit www.gibraltar1.com.
Forward-Looking Statements
Certain information set forth in this news release, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, the ability of Gibraltar to successfully integrate OmniMax and/or to achieve expected cost and operational synergies from the OmniMax transaction; tariffs and retaliatory tariffs imposed by the United States or other countries on imported goods, including raw materials used in the manufacturing of the Company’s products; changes to economic conditions and customer demand for the Company’s products; the availability and pricing of principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, the loss of any key customers, adverse effects of inflation, the ability to continue to improve operating margins, the ability to generate order flow and sales and increase backlog; the ability to translate backlog into net sales, other general economic conditions and conditions in the particular markets in which we operate, changes in spending due to laws and government incentives, such as the Infrastructure Investment and Jobs Act, changes in customer demand and capital spending, competitive factors and pricing pressures, the ability to develop and launch new products in a cost-effective manner, the ability to realize synergies from newly acquired businesses, disruptions to IT systems, the impact of trade and regulation, rebates, credits and incentives and variations in government spending and ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding the company, we strongly advise you to read the section entitled “Risk Factors” in the most recent annual report on Form 10-K which can be accessed under the “SEC Filings” link of the “Investor Info” page of the website at www.Gibraltar1.com. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.
Adjusted Financial Measures
To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release and its quarterly conference call, including adjusted net sales, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), free cash flow and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Adjusted EBITDA margin, each a non-GAAP financial measure. Unless otherwise indicated, the consolidated financial statements, disclosures and related information disclosed herein relate to the Company's continuing operations, which exclude its Renewables business which was classified as a discontinued operation as of June 30, 2025. The Company has recast prior period amounts to reflect discontinued operations. Adjusted net income, operating income and margin exclude special charges consisting of restructuring costs (primarily comprised of exit activities costs and impairment of assets associated with 80/20 simplification, lean initiatives and / or discontinued products), acquisition related costs (legal and consulting fees, and integration costs for recent business acquisitions), and portfolio management. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA and Adjusted EBITDA margin further excludes interest, taxes, depreciation, amortization and stock compensation expense. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. Free cash flow is operating cash flow less capital expenditures and the related margin is free cash flow divided by net sales. The Company believes that the presentation of adjusted measures and free cash flow provides meaningful supplemental data to investors, as well as management, that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Adjusted EBITDA and free cash flow are also useful measures of the Company’s ability to service debt and adjusted EBITDA is one of the measures used for determining the Company’s debt covenant compliance.
Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures provided in the supplemental financial schedules that accompany this news release. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results and may be different than adjusted measures used by other companies and the Company’s presentation of non-GAAP financial measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items.
Reconciliations of non-GAAP measures related to full-year 2026 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net sales
$
509,547
$
309,517
$
865,834
$
555,874
Cost of sales
377,470
221,682
654,886
398,186
Gross profit
132,077
87,835
210,948
157,688
Selling, general, and administrative expense
72,258
48,329
155,585
89,527
Operating income
59,819
39,506
55,363
68,161
Interest expense (income), net
20,965
354
33,989
(1,283
)
Other expense (income), net
895
(105
)
81
(29
)
Income before taxes from continuing operations
37,959
39,257
21,293
69,473
Provision for income taxes
10,626
9,819
6,012
16,920
Income from continuing operations
27,333
29,438
15,281
52,553
Discontinued operations:
Loss before taxes from discontinued operations
(22,582
)
(5,381
)
(82,453
)
(8,544
)
Benefit of income taxes from discontinued operations
(3,439
)
(1,947
)
(7,892
)
(3,114
)
Loss from discontinued operations
(19,143
)
(3,434
)
(74,561
)
(5,430
)
Net income (loss)
$
8,190
$
26,004
$
(59,280
)
$
47,123
Net earnings per share – Basic:
Income from continuing operations
$
0.92
$
0.99
$
0.51
$
1.75
Loss from discontinued operations
(0.64
)
(0.12
)
(2.50
)
(0.18
)
Net income (loss)
$
0.28
$
0.87
$
(1.99
)
$
1.57
Weighted average shares outstanding – Basic
29,770
29,717
29,781
30,027
Net earnings per share – Diluted:
Income from continuing operations
$
0.92
$
0.99
$
0.51
$
1.74
Loss from discontinued operations
(0.64
)
(0.12
)
(2.50
)
(0.18
)
Net income (loss)
$
0.28
$
0.87
$
(1.99
)
$
1.56
Weighted average shares outstanding – Diluted
29,809
29,806
29,835
30,133
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30,
2026
December 31,
2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
15,147
$
115,724
Trade receivables, net of allowance of $3,004 and $2,558, respectively
259,987
120,327
Costs in excess of billings, net
23,772
26,799
Inventories, net
268,010
116,770
Prepaid expenses and other current assets
74,430
56,904
Assets of discontinued operations
71,098
192,362
Total current assets
712,444
628,886
Property, plant, and equipment, net
190,518
130,456
Operating lease assets
164,046
55,355
Goodwill
939,052
415,032
Customer relationships, net
620,097
109,092
Other intangibles, net
140,721
34,464
Other assets
19,407
20,318
$
2,786,285
$
1,393,603
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
210,672
$
108,216
Accrued expenses
199,671
155,807
Billings in excess of costs
6,328
8,879
Liabilities of discontinued operations
72,304
93,120
Total current liabilities
488,975
366,022
Long-term debt
1,218,076
—
Deferred income taxes
12,936
5,116
Non-current operating lease liabilities
151,202
46,199
Other non-current liabilities
24,344
25,868
Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding
—
—
Common stock, $0.01 par value; authorized 100,000 shares; 34,698 and 34,482 shares issued and outstanding, respectively
347
345
Additional paid-in capital
358,365
353,018
Retained earnings
772,183
831,463
Accumulated other comprehensive loss
(5,952
)
(3,683
)
Treasury stock, at cost; 5,015 and 4,935 shares, respectively
(234,191
)
(230,745
)
Total stockholders’ equity
890,752
950,398
$
2,786,285
$
1,393,603
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
June 30,
2026
2025
Cash Flows from Operating Activities
Net (loss) income
$
(59,280
)
$
47,123
Loss from discontinued operations
(74,561
)
(5,430
)
Income from continuing operations
15,281
52,553
Adjustments to reconcile income from continuing operations to net cash (used in) provided by operating activities:
Depreciation and amortization
35,718
16,100
Stock compensation expense
5,147
6,237
Provision for deferred income taxes
921
—
Other, net
4,071
442
Changes in operating assets and liabilities net of effects from acquisitions:
Trade receivables and costs in excess of billings
(90,134
)
(25,240
)
Inventories
(23,500
)
(12,864
)
Other current assets and other assets
(10,027
)
(6,168
)
Accounts payable
75,232
18,281
Accrued expenses and other non-current liabilities
(2,714
)
(711
)
Net cash provided by operating activities of continuing operations
9,995
48,630
Net cash (used in) provided by operating activities of discontinued operations
(47,397
)
9,928
Net cash (used in) provided by operating activities
(37,402
)
58,558
Cash Flows from Investing Activities
Acquisitions, net of cash acquired
(1,339,657
)
(192,946
)
Purchases of property, plant, and equipment, net
(11,193
)
(28,960
)
Net proceeds from sale of business
—
352
Net cash used in investing activities of continuing operations
(1,350,850
)
(221,554
)
Net cash provided by (used in) investing activities of discontinued operations
74,944
(974
)
Net cash used in investing activities
(1,275,906
)
(222,528
)
Cash Flows from Financing Activities
Proceeds from long-term debt
1,321,000
—
Long-term debt payments
(75,000
)
—
Payment of debt issuance costs
(29,311
)
—
Purchase of common stock at market prices
(3,928
)
(62,499
)
Net cash provided by (used in) financing activities
1,212,761
(62,499
)
Effect of exchange rate changes on cash
(30
)
280
Net decrease in cash and cash equivalents
(100,577
)
(226,189
)
Cash and cash equivalents at beginning of year
115,724
269,480
Cash and cash equivalents at end of period
$
15,147
$
43,291
GIBRALTAR INDUSTRIES, INC.
Reconciliation of GAAP and Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2026
Income before taxes
Provision for income taxes
Net income from continuing operations
Net income from continuing operations per share - diluted
As Reported in GAAP Statements
$
37,959
$
10,626
$
27,333
$
0.92
Restructuring Charges (1)
2,268
624
1,644
0.06
Acquisition Related Costs (2)
3,902
(147
)
4,049
0.13
Adjusted Financial Measures
$
44,129
$
11,103
$
33,026
$
1.11
Residential
Agtech
Infrastructure
Corporate
Consolidated
Operating Margin
14.2
%
10.0
%
23.5
%
n/a
11.7
%
Restructuring Charges (1)
0.5
%
—
%
—
%
n/a
0.4
%
Acquisition Related Costs (2)
0.2
%
—
%
—
%
n/a
0.8
%
Adjusted Operating Margin
14.9
%
10.1
%
23.5
%
n/a
13.0
%
Income from Operations
$
60,503
$
5,907
$
5,847
$
(12,438
)
$
59,819
Restructuring Charges (1)
1,979
24
—
265
2,268
Acquisition Related Costs (2)
1,102
—
—
2,800
3,902
Adjusted Income from Operations
$
63,584
$
5,931
$
5,847
$
(9,373
)
$
65,989
Net Sales
$
425,852
$
58,832
$
24,863
$
—
$
509,547
GIBRALTAR INDUSTRIES, INC.
Reconciliation of GAAP and Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2025
Income before taxes
Provision for income taxes
Net income from continuing operations
Net income from continuing operations per share - diluted
As Reported in GAAP Statements
$
39,257
$
9,819
$
29,438
$
0.99
Restructuring Charges (1)
1,582
337
1,245
0.04
Acquisition Related Costs (2)
3,849
893
2,956
0.10
Adjusted Financial Measures
$
44,688
$
11,049
$
33,639
$
1.13
Residential
Agtech
Infrastructure
Corporate
Consolidated
Operating Margin
18.9
%
(0.9
)%
28.1
%
n/a
12.8
%
Restructuring Charges (1)
0.5
%
0.7
%
—
%
n/a
0.5
%
Acquisition Related Costs (2)
—
%
5.9
%
—
%
n/a
1.2
%
Adjusted Operating Margin
19.5
%
5.6
%
28.1
%
n/a
14.5
%
Income from Operations
$
43,611
$
(494
)
$
7,083
$
(10,694
)
$
39,506
Restructuring Charges (1)
1,218
364
—
—
1,582
Acquisition Related Costs (2)
132
3,170
—
547
3,849
Adjusted Income from Operations
$
44,961
$
3,040
$
7,083
$
(10,147
)
$
44,937
Net Sales
$
230,258
$
54,092
$
25,167
$
—
$
309,517
GIBRALTAR INDUSTRIES, INC.
Reconciliation of GAAP and Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2026
Income before taxes
Provision for income taxes
Net income from continuing operations
Net income from continuing operations per share - diluted
As Reported in GAAP Statements
$
21,293
$
6,012
$
15,281
$
0.51
Restructuring Charges (1)
4,578
1,259
3,319
0.11
Acquisition Related Costs (2)
36,543
8,619
27,924
0.94
Adjusted Financial Measures
$
62,414
$
15,890
$
46,524
$
1.56
Residential
Agtech
Infrastructure
Corporate
Consolidated
Operating Margin
11.4
%
8.1
%
21.7
%
n/a
6.4
%
Restructuring Charges (1)
0.6
%
0.1
%
—
%
n/a
0.5
%
Acquisition Related Costs (2)
1.3
%
0.1
%
—
%
n/a
4.2
%
Adjusted Operating Margin
13.4
%
8.3
%
21.7
%
n/a
11.2
%
Income from Operations
$
80,749
$
9,234
$
9,564
$
(44,184
)
$
55,363
Restructuring Charges (1)
4,218
79
—
281
4,578
Acquisition Related Costs (2)
9,630
149
—
26,868
36,647
Adjusted Income from Operations
$
94,597
$
9,462
$
9,564
$
(17,035
)
$
96,588
Net Sales
$
707,287
$
114,462
$
44,085
$
—
$
865,834
GIBRALTAR INDUSTRIES, INC.
Reconciliation of GAAP and Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2025
Income before taxes
Provision for income taxes
Net income from continuing operations
Net income from continuing operations per share - diluted
As Reported in GAAP Statements
$
69,473
$
16,920
$
52,553
$
1.74
Restructuring Charges (1)
2,818
637
2,181
0.07
Acquisition Related Costs (2)
8,104
1,891
6,213
0.21
Adjusted Financial Measures
$
80,395
$
19,448
$
60,947
$
2.02
Residential
Agtech
Infrastructure
Corporate
Consolidated
Operating Margin
18.3
%
2.9
%
26.5
%
n/a
12.3
%
Restructuring Charges (1)
0.6
%
0.4
%
—
%
n/a
0.5
%
Acquisition Related Costs (2)
—
%
4.6
%
—
%
n/a
1.4
%
Adjusted Operating Margin
18.9
%
8.0
%
26.5
%
n/a
14.2
%
Income from Operations
$
74,871
$
2,891
$
12,341
$
(21,942
)
$
68,161
Restructuring Charges (1)
2,355
432
—
31
2,818
Acquisition Related Costs (2)
132
4,589
—
3,394
8,115
Adjusted Income from Operations
$
77,358
$
7,912
$
12,341
$
(18,517
)
$
79,094
Net Sales
$
410,252
$
99,132
$
46,490
$
—
$
555,874
GIBRALTAR INDUSTRIES, INC.
Reconciliation of GAAP and Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Year Ended December 31, 2025
Income before taxes
Provision for income taxes
Net income from continuing operations
Net income from continuing operations per share - diluted
As Reported in GAAP Statements
$
126,576
$
29,020
$
97,556
$
3.25
Restructuring Charges (1)
8,318
1,988
6,330
0.22
Acquisition Related Costs (2) (3)
17,544
3,836
13,708
0.45
Adjusted Financial Measures
$
152,438
$
34,844
$
117,594
$
3.92
Residential
Agtech
Infrastructure
Corporate
Consolidated
Operating Margin
16.6
%
4.5
%
23.9
%
n/a
10.8
%
Restructuring Charges (1)
0.9
%
0.6
%
—
%
n/a
0.7
%
Acquisition Related Costs (2)
—
%
2.1
%
—
%
n/a
1.6
%
Adjusted Operating Margin
17.6
%
7.1
%
23.9
%
n/a
13.3
%
Income from Operations
$
137,195
$
9,804
$
22,042
$
(46,290
)
$
122,751
Restructuring Charges (1)
7,034
1,253
—
31
8,318
Acquisition Related Costs (2)
669
4,580
—
14,521
19,770
Adjusted Income from Operations
$
144,898
$
15,637
$
22,042
$
(31,738
)
$
150,839
Net Sales
$
824,079
$
219,301
$
92,121
$
—
$
1,135,501
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Three Months Ended June 30, 2026
Consolidated
Residential
Agtech
Infrastructure
Net Sales
$
509,547
$
425,852
$
58,832
$
24,863
Net Income from Continuing Operations
27,333
Provision for Income Taxes
10,626
Interest Expense
20,965
Other Expense
895
Operating Profit
59,819
60,503
5,907
5,847
Adjusted Measures*
6,170
3,081
24
—
Adjusted Operating Profit
65,989
63,584
5,931
5,847
Adjusted Operating Margin
13.0
%
14.9
%
10.1
%
23.5
%
Adjusted Other Expense
895
—
—
—
Depreciation & Amortization
19,815
16,456
1,996
389
Stock Compensation Expense
3,288
1,005
207
73
Less: SLT Related Stock Compensation Expense
(206
)
(172
)
—
—
Adjusted Stock Compensation Expense
3,082
833
207
73
Adjusted EBITDA
$
87,991
$
80,873
$
8,134
$
6,309
Adjusted EBITDA Margin
17.3
%
19.0
%
13.8
%
25.4
%
Cash Flow - Operating Activities
44,548
Purchase of PPE, Net
(5,196
)
Free Cash Flow
39,352
Free Cash Flow - % of Net Sales
7.7
%
*Adjusted Measures details are presented on the corresponding Reconciliation of GAAP and Adjusted Financial Measures
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Three Months Ended June 30, 2025
Consolidated
Residential
Agtech
Infrastructure
Net Sales
$
309,517
$
230,258
$
54,092
$
25,167
Net Income from Continuing Operations
29,438
Provision for Income Taxes
9,819
Interest Expense
354
Other Income
(105
)
Operating Profit
39,506
43,611
(494
)
7,083
Adjusted Measures*
5,431
1,350
3,534
—
Adjusted Operating Profit
44,937
44,961
3,040
7,083
Adjusted Operating Margin
14.5
%
19.5
%
5.6
%
28.1
%
Adjusted Other Income
(105
)
—
—
—
Depreciation & Amortization
9,294
3,239
4,539
699
Less: Acquisition-related amortization
(2,650
)
—
(2,650
)
—
Adjusted Depreciation & Amortization
6,644
3,239
1,889
699
Adjusted Stock Compensation Expense
3,377
621
187
76
Adjusted EBITDA
$
55,063
$
48,821
$
5,116
$
7,858
Adjusted EBITDA Margin
17.8
%
21.2
%
9.5
%
31.2
%
Cash Flow - Operating Activities
43,545
Purchase of PPE, Net
(18,203
)
Free Cash Flow
25,342
Free Cash Flow - % of Net Sales
8.2
%
*Adjusted Measures details are presented on the corresponding Reconciliation of GAAP and Adjusted Financial Measures
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Six Months Ended June 30, 2026
Consolidated
Residential
Agtech
Infrastructure
Net Sales
$
865,834
$
707,287
$
114,462
$
44,085
Net Income from Continuing Operations
15,281
Provision for Income Taxes
6,012
Interest Expense
33,989
Other Expense
81
Operating Profit
55,363
80,749
9,234
9,564
Adjusted Measures*
41,225
13,848
228
—
Adjusted Operating Profit
96,588
94,597
9,462
9,564
Adjusted Operating Margin
11.2
%
13.4
%
8.3
%
21.7
%
Adjusted Other Expense
227
—
—
—
Depreciation & Amortization
35,718
28,585
4,084
1,102
Stock Compensation Expense
5,147
1,652
415
128
Less: SLT Related Stock Compensation Expense
(206
)
(172
)
—
—
Adjusted Stock Compensation Expense
4,941
1,480
415
128
Adjusted EBITDA
$
137,020
$
124,662
$
13,961
$
10,794
Adjusted EBITDA Margin
15.8
%
17.6
%
12.2
%
24.5
%
Cash Flow - Operating Activities
9,995
Purchase of PPE, Net
(11,193
)
Free Cash Flow
(1,198
)
Free Cash Flow - % of Adjusted Net Sales
(0.1
)%
*Adjusted Measures details are presented on the corresponding Reconciliation of GAAP and Adjusted Financial Measures
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Six Months Ended June 30, 2025
Consolidated
Residential
Agtech
Infrastructure
Net Sales
$
555,874
$
410,252
$
99,132
$
46,490
Net Income from Continuing Operations
52,553
Provision for Income Taxes
16,920
Interest Income
(1,283
)
Other Income
(29
)
Operating Profit
68,161
74,871
2,891
12,341
Adjusted Measures*
10,933
2,487
5,021
—
Adjusted Operating Profit
79,094
77,358
7,912
12,341
Adjusted Operating Margin
14.2
%
18.9
%
8.0
%
26.5
%
Adjusted Other Income
(18
)
—
—
—
Depreciation & Amortization
16,100
5,766
7,299
1,400
Less: Acquisition-related amortization
(4,069
)
—
(4,069
)
—
Adjusted Depreciation & Amortization
12,031
5,766
3,230
1,400
Stock Compensation Expense
6,237
1,073
322
139
Less: SLT Related Stock Compensation Expense
(82
)
—
—
—
Adjusted Stock Compensation Expense
6,155
1,073
322
139
Adjusted EBITDA
$
97,298
$
84,197
$
11,464
$
13,880
Adjusted EBITDA Margin
17.5
%
20.5
%
11.6
%
29.9
%
Cash Flow - Operating Activities
48,630
Purchase of PPE, Net
(28,960
)
Free Cash Flow
19,670
Free Cash Flow - % of Net Sales
3.5
%
*Adjusted Measures details are presented on the corresponding Reconciliation of GAAP and Adjusted Financial Measures
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Year Ended December 31, 2025
Consolidated
Residential
Agtech
Infrastructure
Net Sales
$
1,135,501
$
824,079
$
219,301
$
92,121
Net Income from Continuing Operations
97,556
Provision for Income Taxes
29,020
Interest Income
(1,747
)
Other Income
(2,078
)
Operating Profit
122,751
137,195
9,804
22,042
Adjusted Measures*
28,088
7,703
5,833
—
Adjusted Operating Profit
150,839
144,898
15,637
22,042
Adjusted Operating Margin
13.3
%
17.6
%
7.1
%
23.9
%
Adjusted Other Expense
148
—
—
—
Depreciation & Amortization
29,849
13,351
10,368
2,845
Less: Acquisition-related amortization
(3,500
)
—
(3,500
)
—
Adjusted Depreciation & Amortization
26,349
13,351
6,868
2,845
Stock Compensation Expense
8,339
2,591
729
274
Less: SLT Related Stock Compensation Expense
(82
)
—
—
—
Adjusted Stock Compensation Expense
8,257
2,591
729
274
Adjusted EBITDA
$
185,297
$
160,840
$
23,234
$
25,161
Adjusted EBITDA Margin
16.3
%
19.5
%
10.6
%
27.3
%
Cash Flow - Operating Activities
137,107
Purchase of PPE, Net
(46,130
)
Free Cash Flow
90,977
Free Cash Flow - % of Net Sales
8.0
%
*Adjusted Measures details are presented on the corresponding Reconciliation of GAAP and Adjusted Financial Measures
Valvoline ve 3. čtvrtletí zvýšila tržby o 24 % na 545 mil. USD a zisk z pokračujících činností o 14 % na 65 mil. USD. Zároveň zvedla celoroční výhled tržeb a upravila očekávání růstu srovnatelných tržeb.
LEXINGTON, Ky.--(BUSINESS WIRE)--Valvoline Inc. (NYSE: VVV), the quick, easy, trusted leader in preventive automotive maintenance, today reported financial results for its third quarter ended June 30, 2026. All comparisons in this press release are made to the same prior-year period unless otherwise noted.
“We delivered another strong quarter, with sales and profit growth in line with our expectations,” said Lori Flees, President & CEO. “Top-line sales grew 24%, with system-wide same-store sales growth of 8.0%, benefiting from pricing actions taken in the quarter. We generated healthy profit growth, solid margins and improved SG&A leverage. The team continues to manage the business effectively through the changing supply and macro environment. Our results demonstrate the strength, resilience, and growth in our business.”
Continuing Operations - Operating Results
Sales of $545 million grew 24% and system-wide store sales increased 19% to $1.05 billion System-wide same-store sales (SSS) growth of 8.0% Reported income from continuing operations of $65 million grew 14% and diluted earnings per share (EPS) of $0.51 increased 16% Adjusted EBITDA of $162 million increased 25% and adjusted EPS of $0.57 increased 21% System-wide net store additions in the quarter totaled 47 (25 franchise and 22 company-operated additions) Balance Sheet and Cash Flow
Cash and cash equivalents balance of $84 million; total debt of $1.6 billion, reflecting a $50 million voluntary prepayment on the Term Loan A Year-to-date operating cash flow from continuing operations of $285 million and free cash flow of $112 million, an improvement of $93 million over the prior year Outlook
Flees added, “We are operating in a period of meaningful change on the cost side of our business. Our team is focused on mitigating the impact of increased finished lubricant costs with pricing actions and ongoing operational discipline. We remain confident in the underlying strength of our business and our team's execution. As a result, we are narrowing our guidance ranges and raising full-year system-wide same-store sales expectations.”
Information regarding the Company’s outlook for fiscal 2026 is provided in the table below:
Updated Outlook
Prior Outlook
System-wide SSS growth1
7.5% - 8%
5% - 6.5%
System-wide store additions1
no change
330 - 360
Net revenues
$2.05 - $2.1 billion
$2.0 - $2.1 billion
Adjusted EBITDA1
$550 - $560 million
$540 - $560 million
Adjusted EPS1
$1.70 - $1.75
$1.65 - $1.75
Capital expenditures
$240 - $260 million
$250 - $280 million
1 Refer to the Key Business Measures and Use of Non-GAAP Measures sections herein for further information regarding management’s use of these measures.
Valvoline’s outlook for adjusted EBITDA and adjusted EPS are non-GAAP financial measures that are expected to be impacted by items affecting comparability. Valvoline is unable to reconcile these forward-looking non-GAAP financial measures to the comparable GAAP measures estimated for fiscal 2026 without unreasonable efforts, as the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact these GAAP measures in fiscal 2026 but would not impact non-GAAP adjusted results.
Third Quarter Operating Results
(In millions, except per share amounts and store counts)
Q3 results
YoY growth
Net revenues
$
544.6
24
%
Operating income (a)
$
112.2
18
%
Income from continuing operations (a)
$
65.0
14
%
EPS (a)
$
0.51
16
%
Adjusted EPS (b)
$
0.57
21
%
Adjusted EBITDA (b)
$
162.4
25
%
System-wide store sales (b)
$
1,053.9
19
%
Q3 results
Quarter change
System-wide stores (b)
2,456
+47
Company-operated stores (c)
1,232
+22
Franchised stores (b) (c)
1,224
+25
Q3 - YoY growth
System-wide SSS (b)
8.0 %
Conference Call Webcast
Valvoline will host a live audio webcast of its third quarter fiscal 2026 conference call today, August 5, 2026, at 9 a.m. ET. The webcast and supporting materials will be accessible through Valvoline's website at http://investors.valvoline.com. Following the live event, an archived version of the webcast and supporting materials will be available.
Key Business Measures
Valvoline tracks its operating performance and manages its business using certain key measures, including system-wide, company-operated and franchised store counts and system-wide SSS and store sales. Management believes these measures are useful to evaluating and understanding Valvoline's operating performance and should be considered as supplements to, not substitutes for, Valvoline's net revenues and operating income, as determined in accordance with U.S. GAAP.
Net revenues are influenced by the number of service center stores and the business performance of those stores. Stores are considered open upon acquisition or opening for business. Temporary store closings remain in the respective store counts with only permanent store closures reflected in the activity and end of period store counts. SSS is defined as net revenues of U.S. Valvoline Instant Oil ChangeSM (VIOCSM) system-wide stores that have been in operation for at least 12 full months within the system, and beginning in fiscal 2026, mobile service net revenues in markets that leverage store marketing channels.
Net revenues are limited to sales at company-operated stores, in addition to royalties and other fees from independent franchised and Express Care stores. Although Valvoline does not recognize store-level sales from franchised stores as net revenues in its Statements of Condensed Consolidated Income, management believes system-wide and franchised SSS comparisons, store counts, and total system-wide store sales are useful to assess market position relative to competitors and overall store and operating performance.
Use of Non-GAAP Measures
The following non-GAAP measures are included herein: EBITDA, adjusted EBITDA, and adjusted EBITDA margin; adjusted net income and adjusted diluted earnings per share; and free cash flow and free cash flow excluding growth capital expenditures. Refer to the tables herein for management's definition of each non-GAAP measure and reconciliation to the most comparable U.S. GAAP measure.
Non-GAAP measures include adjustments from results based on U.S. GAAP that management believes enables comparison of certain financial trends and results between periods and provides a useful supplemental presentation of Valvoline's operating performance that allows for transparency with respect to key metrics used by management in operating the business and measuring performance. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation from, an alternative to, or more meaningful than, the financial results presented in accordance with U.S. GAAP. The financial results presented in accordance with U.S. GAAP and the reconciliations of non-GAAP measures should be carefully evaluated. The manner used to compute the non-GAAP information used by management may differ from the methods used by other companies and may not be comparable.
Refer to the Appendix at the end of this release for descriptions of the adjustments that depart from the computations in accordance with U.S. GAAP.
About Valvoline Inc.
Valvoline Inc. (NYSE: VVV) delivers quick, easy, trusted service at approximately 2,500 franchised and company-operated service centers across the United States and Canada. The Company completes more than 30 million services annually system-wide, from about 15-minute stay-in-your-car oil changes to a variety of manufacturer-recommended maintenance services such as wiper replacements and tire rotations. At Valvoline Inc., it all starts with our people, including the over 13,500 team members who are working to drive the full potential of our core business, deliver sustainable network growth and innovate to meet the evolving needs of our customers and the car parc. For more information, visit vioc.com.
Forward-Looking Statements
Certain statements herein, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about the acquisition of Breeze Autocare, including its Oil Changers stores, and the integration of the Breeze Autocare business and the anticipated benefits and synergies of the acquisition; executing on the growth strategy to create shareholder value by driving the full potential in Valvoline’s core business, delivering sustainable network growth and innovating to meet the changing needs of customers and the car parc; realizing the benefits from acquisitions and refranchising transactions; and future opportunities for the stand-alone retail business; and any other statements regarding Valvoline's future operations, financial or operating results, capital allocation, debt leverage ratio, anticipated business levels, dividend policy, anticipated growth, market opportunities, strategies, competition, and other expectations and targets for future periods. Valvoline has identified some of these forward-looking statements with words such as “anticipates,” “believes,” “expects,” “estimates,” “is likely,” “predicts,” “projects,” “forecasts,” “may,” “will,” “should,” and “intends,” and the negative of these words or other comparable terminology. These forward-looking statements are based on Valvoline’s current expectations, estimates, projections, and assumptions as of the date such statements are made and are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. Additional information regarding these risks and uncertainties are described in Valvoline’s filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Quantitative and Qualitative Disclosures about Market Risk” sections of Valvoline’s most recently filed periodic reports on Forms 10-K and 10-Q, which are available on Valvoline’s website at http://investors.valvoline.com/sec-filings or on the SEC’s website at http://www.sec.gov. Valvoline assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, unless required by law.
TM Trademark, Valvoline Inc., or its subsidiaries, registered in various countries
SM Service mark, Valvoline Inc., or its subsidiaries, registered in various countries
Valvoline Inc. and Consolidated Subsidiaries
Table 1
Statements of Consolidated Income
(In millions, except per share amounts - preliminary and unaudited)
Three months ended
June 30
Nine months ended
June 30
2026
2025
2026
2025
Net revenues
$
544.6
$
439.0
$
1,510.2
$
1,256.5
Cost of sales
329.7
261.4
935.8
775.5
Gross profit
214.9
177.6
574.4
481.0
Selling, general and administrative expenses
103.0
82.8
308.5
246.8
Net legacy and separation-related expenses
0.1
0.4
6.2
1.6
Other (income) loss, net
(0.4
)
(0.3
)
43.2
(72.8
)
Operating income
112.2
94.7
216.5
305.4
Net pension and other postretirement plan income
(1.3
)
(0.9
)
(3.7
)
(2.7
)
Net interest and other financing expenses
27.9
18.6
81.1
53.0
Income before income taxes
85.6
77.0
139.1
255.1
Income tax expense
20.6
20.0
61.0
65.9
Income from continuing operations
65.0
57.0
78.1
189.2
Loss from discontinued operations, net of tax
(0.5
)
(0.5
)
(1.6
)
(3.5
)
Net income
$
64.5
$
56.5
$
76.5
$
185.7
Net earnings per share
Basic earnings (loss) per share
Continuing operations
$
0.51
$
0.45
$
0.61
$
1.48
Discontinued operations
—
(0.01
)
(0.01
)
(0.03
)
Basic earnings per share
$
0.51
$
0.44
$
0.60
$
1.45
Diluted earnings (loss) per share
Continuing operations
$
0.51
$
0.44
$
0.61
$
1.47
Discontinued operations
—
—
(0.01
)
(0.03
)
Diluted earnings per share
$
0.51
$
0.44
$
0.60
$
1.44
Weighted average common shares outstanding
Basic
127.8
127.6
127.8
128.0
Diluted
128.4
128.2
128.3
128.7
Valvoline Inc. and Consolidated Subsidiaries
Table 2
Condensed Consolidated Balance Sheets
(In millions - preliminary and unaudited)
June 30
September 30
2026
2025
Assets
Current assets
Cash and cash equivalents
$
84.2
$
51.6
Receivables, net
102.8
89.6
Inventories, net
50.4
42.6
Prepaid expenses and other current assets
47.0
59.9
Total current assets
284.4
243.7
Noncurrent assets
Property, plant and equipment, net
1,280.7
1,134.6
Operating lease assets
401.4
331.8
Goodwill and intangibles, net
1,283.3
740.5
Other noncurrent assets
231.8
219.8
Total assets
$
3,481.6
$
2,670.4
Liabilities and Stockholders' Equity
Current liabilities
Current portion of long-term debt
$
31.1
$
23.8
Trade and other payables
119.8
118.9
Accrued expenses and other liabilities
254.5
204.7
Total current liabilities
405.4
347.4
Noncurrent liabilities
Long-term debt
1,570.9
1,050.2
Employee benefit obligations
178.9
187.5
Operating lease liabilities
377.3
315.3
Other noncurrent liabilities
532.4
431.5
Total noncurrent liabilities
2,659.5
1,984.5
Stockholders' equity
416.7
338.5
Total liabilities and stockholders' equity
$
3,481.6
$
2,670.4
Valvoline Inc. and Consolidated Subsidiaries
Table 3
Condensed Consolidated Statements of Cash Flows
(In millions - preliminary and unaudited)
Nine months ended
June 30
2026
2025
Cash flows from operating activities
Net income
$
76.5
$
185.7
Adjustments to reconcile net income to cash flows from operating activities:
Loss from discontinued operations
1.6
3.5
Loss (gain) on sale of operations
43.6
(71.6
)
Depreciation and amortization
109.3
86.6
Stock-based compensation expense
9.3
7.4
Other, net
6.1
1.5
Change in operating assets and liabilities
38.2
(33.1
)
Operating cash flows from continuing operations
284.6
180.0
Operating cash flows from discontinued operations
—
(4.7
)
Total cash provided by operating activities
284.6
175.3
Cash flows from investing activities
Additions to property, plant and equipment
(172.3
)
(160.3
)
Acquisitions, net of cash acquired
(652.5
)
(32.1
)
Proceeds from sale of operations
63.6
121.0
Issuances of notes receivable
(16.3
)
(17.3
)
Repayments of notes receivable
17.7
11.7
Other investing activities, net
(1.5
)
5.1
Total cash used in investing activities
(761.3
)
(71.9
)
Cash flows from financing activities
Proceeds from borrowings
755.0
85.0
Payments of debt issuance costs and discounts
(14.5
)
(2.0
)
Repayments on borrowings
(214.7
)
(97.8
)
Repurchases of common stock, including excise taxes of $16.4 in 2025
—
(76.8
)
Other financing activities, net
(16.3
)
(12.0
)
Total cash provided by (used in) financing activities
509.5
(103.6
)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash
(0.2
)
(0.2
)
Increase (decrease) in cash, cash equivalents and restricted cash
32.6
(0.4
)
Cash, cash equivalents and restricted cash - beginning of period
51.6
68.7
Cash, cash equivalents and restricted cash - end of period
$
84.2
$
68.3
Valvoline Inc. and Consolidated Subsidiaries
Table 4
Retail Stores Operating Information
(Preliminary and unaudited)
Three months ended
June 30
Nine months ended
June 30
2026
2025
2026
2025
Sales information
Store sales - in millions
Company-operated
$
481.0
$
382.6
$
1,340.0
$
1,100.6
Franchised (a)
572.9
507.0
1,624.1
1,434.8
System-wide store sales (a)
$
1,053.9
$
889.6
$
2,964.1
$
2,535.4
Year-over-year growth (a)
18.5
%
10.0
%
16.9
%
11.3
%
System-wide same-store sales growth (a)(b)
8.0
%
4.9
%
7.4
%
6.2
%
Number of stores at end of period
Third Quarter
2026
Second Quarter
2026
First Quarter
2026
Fourth Quarter
2025
Third Quarter
2025
Company-operated
1,232
1,210
1,196
1,016
983
Franchised (a)
1,224
1,199
1,184
1,164
1,141
As of June 30
2026
2025
System-wide store count (a)
2,456
2,124
Year-over-year growth (a)
15.6
%
8.3
%
(a)
Measures include Valvoline franchisees, which are independent legal entities. Valvoline does not consolidate the results of operations of its franchisees.
(b)
Valvoline determines SSS growth as the year-over-year change in net revenues of U.S. VIOC system-wide same stores with same stores defined as those that have been in operation within the system for at least 12 full months, and beginning in fiscal 2026, mobile service net revenues in markets that leverage store marketing channels.
Valvoline Inc. and Consolidated Subsidiaries
Table 5
System-wide Retail Stores
(Preliminary and unaudited)
Company-operated
Third Quarter
2026
Second Quarter
2026
First Quarter
2026
Fourth Quarter
2025
Third Quarter
2025
Beginning of period
1,210
1,196
1,016
983
950
Opened
15
8
26
26
19
Acquired
5
3
210
8
8
Divested (a)
—
—
(45
)
—
—
Net conversions between company-operated and franchised
3
4
(10
)
—
6
Closed
(1
)
(1
)
(1
)
(1
)
—
End of period
1,232
1,210
1,196
1,016
983
Franchised (b)
Third Quarter
2026
Second Quarter
2026
First Quarter
2026
Fourth Quarter
2025
Third Quarter
2025
Beginning of period
1,199
1,184
1,164
1,141
1,128
Opened
26
20
13
24
19
Acquired (c)
—
—
—
—
—
Net conversions between company-operated and franchised
—
(4
)
10
—
(6
)
Closed
(1
)
(1
)
(3
)
(1
)
—
End of period
1,224
1,199
1,184
1,164
1,141
Total system-wide stores (b)
2,456
2,409
2,380
2,180
2,124
(a) Divested stores represent those acquired in connection with the Breeze Autocare acquisition and immediately divested as required by the Federal Trade Commission.
(b) Measures include Valvoline franchisees, which are independent legal entities. Valvoline does not consolidate the results of operations of its franchisees.
(c) Represents the acquisition of franchise stores that are new to the Valvoline retail store system by Valvoline Inc.
Valvoline Inc. and Consolidated Subsidiaries
Table 6
Non-GAAP Reconciliation - Income from Continuing Operations and Diluted Earnings per Share
(In millions, except per share amounts - preliminary and unaudited)
Three months ended
June 30
Nine months ended
June 30
2026
2025
2026
2025
Reported income from continuing operations
$
65.0
$
57.0
$
78.1
$
189.2
Adjustments:
Net pension and other postretirement plan income
(1.3
)
(0.9
)
(3.7
)
(2.7
)
Net legacy and separation-related expenses
0.1
0.4
6.2
1.6
Information technology transition and material weakness remediation costs
7.0
2.1
12.8
8.5
Debt extinguishment and modification costs
0.8
—
0.8
—
Investment and divestiture-related costs (income) (a)
5.8
3.5
75.3
(64.0
)
Total adjustments, pre-tax
12.4
5.1
91.4
(56.6
)
Income tax (benefit) expense of adjustments
(2.8
)
(1.3
)
1.3
14.3
Income tax adjustments (b)
(1.7
)
—
1.7
—
Total adjustments, after tax
7.9
3.8
94.4
(42.3
)
Adjusted income from continuing operations (c) (d)
$
72.9
$
60.8
$
172.5
$
146.9
Reported diluted earnings per share from continuing operations
$
0.51
$
0.44
$
0.61
$
1.47
Adjusted diluted earnings per share from continuing operations (d) (e)
$
0.57
$
0.47
$
1.34
$
1.14
Weighted average diluted common shares outstanding
128.4
128.2
128.3
128.7
(a) Includes certain pre-tax key item activity within amortization and net interest and other financing expenses that do not impact EBITDA but impact pre-tax adjusted earnings.
(b) Income tax adjustments include the effects associated with investment and divestiture-related activity, which is further described in the Appendix.
(c) Adjusted income from continuing operations is defined as income from continuing operations adjusted for the effects of key items.
(d) Represents a non-GAAP measure. Refer to “Use of Non-GAAP Measures” and the Appendix for additional details.
(e) Adjusted diluted earnings per share from continuing operations is defined as diluted earnings per share calculated using adjusted income from continuing operations.
Valvoline Inc. and Consolidated Subsidiaries
Table 7
Non-GAAP Reconciliation - Net Revenues and EBITDA from Continuing Operations
(In millions - preliminary and unaudited)
Three months ended
June 30
Nine months ended
June 30
2026
2025
2026
2025
Reported net revenues (a)
$
544.6
$
439.0
$
1,510.2
$
1,256.5
Income from continuing operations
$
65.0
$
57.0
$
78.1
$
189.2
Add:
Income tax expense
20.6
20.0
61.0
65.9
Net interest and other financing expenses
27.9
18.6
81.1
53.0
Depreciation and amortization
38.2
30.2
109.3
86.6
EBITDA from continuing operations (b) (c)
151.7
125.8
329.5
394.7
Key items:
Net pension and other postretirement plan income
(1.3
)
(0.9
)
(3.7
)
(2.7
)
Net legacy and separation-related expenses
0.1
0.4
6.2
1.6
Information technology transition and material weakness remediation costs
7.0
2.1
12.8
8.5
Investment and divestiture-related costs (income) (d)
4.9
2.1
68.6
(65.4
)
Key items - subtotal
10.7
3.7
83.9
(58.0
)
Adjusted EBITDA from continuing operations (b) (c)
$
162.4
$
129.5
$
413.4
$
336.7
Net profit margin (e)
11.9
%
13.0
%
5.2
%
15.1
%
Adjusted EBITDA margin (b) (f)
29.8
%
29.5
%
27.4
%
26.8
%
(a)
Net revenues do not have any key item adjustments in the periods presented herein; therefore, GAAP net revenues and Adjusted net revenues are the same.
(b)
Represents a non-GAAP measure. Refer to “Use of Non-GAAP Measures” and the Appendix for additional details.
(c)
EBITDA from continuing operations is defined as income from continuing operations, plus income tax expense, net interest and other financing expenses, and depreciation and amortization attributable to continuing operations. Adjusted EBITDA from continuing operations is EBITDA adjusted for key items attributable to continuing operations.
(d)
Includes certain pre-tax key item activity within amortization and net interest and other financing expenses that do not impact Adjusted EBITDA but impact pre-tax adjusted earnings.
(e)
Net profit margin is defined as reported income from continuing operations divided by reported net revenues.
(f)
Adjusted EBITDA margin is defined as Adjusted EBITDA from continuing operations divided by adjusted net revenues.
Valvoline Inc. and Consolidated Subsidiaries
Table 8
Non-GAAP Reconciliation - Free Cash Flows from Continuing Operations
(In millions - preliminary and unaudited)
Free cash flow (a)
Nine months ended
June 30
2026
2025
Operating cash flows from continuing operations
$
284.6
$
180.0
Adjustments:
Additions to property, plant and equipment
(172.3
)
(160.3
)
Free cash flow from continuing operations (b)
$
112.3
$
19.7
Free cash flow excluding growth capital expenditures (c)
Nine months ended
June 30
2026
2025
Operating cash flows from continuing operations
$
284.6
$
180.0
Adjustments:
Maintenance additions to property, plant and equipment
(43.3
)
(35.1
)
Free cash flow excluding growth capital expenditures (b)
$
241.3
$
144.9
Valvoline Inc. and Consolidated Subsidiaries
Appendix - Description of Non-GAAP Measures and Adjustments
EBITDA measures
Management believes EBITDA measures provide a meaningful supplemental presentation of Valvoline’s operating performance between periods on a comparable basis due to the depreciable assets associated with the nature of the Company’s operations, as well as income tax and interest costs related to Valvoline’s tax and capital structures, respectively.
Free cash flow measures
Management uses free cash flow and free cash flow excluding growth capital expenditures as additional non-GAAP metrics of cash flow generation. By including capital expenditures, management is able to provide an indication of the ongoing cash being generated that is ultimately available for both debt and equity holders as well as other investment opportunities. Free cash flow includes the impact of capital expenditures, providing a supplemental view of cash generation. Free cash flow excluding growth capital expenditures includes maintenance capital expenditures, which are uses of cash that are necessary to maintain the Company's existing business operations, including its retail service center store network, service portfolio, and support functions. Free cash flow excluding growth capital expenditures provides a supplemental view of cash flow generation before investments in growth capital, which expand future business operations, including the opening or expansion of retail service center stores and service capabilities. Free cash flow and free cash flow excluding growth capital expenditures have certain limitations, including that they do not reflect adjustments for certain non-discretionary cash expenditures, such as mandatory debt repayments.
Adjusted profitability measures
Adjusted profitability measures (i.e., adjusted net income, diluted earnings per share and EBITDA) enable the comparison of financial trends and results between periods where certain items may not be reflective of the Company’s underlying and ongoing operational performance or vary independent of business performance.
Key items
The non-GAAP measures used by management exclude the impact of certain unusual, infrequent or non-operational activity not directly attributable to the underlying business, which management believes impacts the comparability of operational results between periods (“key items”). Key items are often related to legacy matters or market-driven events considered by management to not be reflective of the ongoing operating performance. Key items may consist of adjustments related to: legacy businesses, including the separation from Valvoline's former parent company, the sale of the former Global Products reportable segment, and the associated impacts of related activity and indemnities; non-service pension and other postretirement plan activity; restructuring-related matters, including organizational restructuring plans, significant acquisitions or divestitures, debt extinguishment and modification, and tax reform legislation; in addition to other matters that management considers non-operational, infrequent or unusual in nature.
Refer to the following for descriptions of the key items that comprise the adjustments which depart from the computations in accordance with U.S. GAAP:
Net pension and other postretirement plan income: Includes several elements impacted by changes in plan assets and obligations that are primarily driven by the debt and equity markets, including remeasurement gains and losses, when applicable; and recurring non-service pension and other postretirement net periodic activity, which consists of interest cost, expected return on plan assets and amortization of prior service credits. Management considers these elements are more reflective of changes in current conditions in global markets (in particular, interest rates), outside the operational performance of the business, and are also legacy amounts that are not directly related to the underlying business and do not have an impact on the compensation and benefits provided to eligible employees for current service.
Net legacy and separation-related expenses: Activity associated with legacy businesses, including the separation from Valvoline’s former parent company and its former Global Products reportable segment. This activity includes the recognition of and adjustments to indemnity obligations to its former parent company; certain legal, financial, professional advisory and consulting fees; and other expenses incurred by the continuing operations in connection with and directly related to these separation transactions and legacy matters. This incremental activity directly attributable to legacy matters and separation transactions is not considered reflective of the underlying operating performance of the Company’s continuing operations.
Information technology transition and material weakness remediation costs: Consists of expenses incurred directly related to the Company’s information technology transitions, primarily efforts related to implementing stand-alone enterprise resource planning and human resource information systems that generally began in fiscal 2023 following the sale of the former Global Products reportable segment. These expenses include data conversion, training, redundant expenses incurred from duplicative technology platforms, and temporary support, which includes consulting fees and professional services to support certain enhanced manual procedures and material weakness remediation efforts, including costs resulting from process changes implemented in remediating the material weakness. These incremental costs are directly associated with technology transitions and material weakness remediation efforts and are not considered to be reflective of the ongoing expenses of operating the Company’s technology platforms and control environment once the material weakness is remediated.
Investment and divestiture-related costs (income): Consists of activity directly associated with specific significant acquisitions, investments and divestitures, including professional and consulting fees for legal and advisory services, in addition to gains or losses recognized upon disposition, temporary financing costs directly associated with transactions, certain acquisition-related incentive compensation costs, amortization of Breeze acquired intangible assets, and expense recognized to adjust the carrying values of related assets determined to be impaired. This activity is not considered to be reflective of the underlying operating performance of the Company’s ongoing continuing operations.
Debt extinguishment and modification costs: Consists of fees paid to creditors and accelerated amortization of previously capitalized debt issuance costs as well as third-party fees expensed in connection with amendments to the Company’s debt facilities. These expenses are not considered to be indicative of the future servicing costs of the Company's ongoing debt facilities.
Natera podala v Japonsku u PMDA žádost o schválení testu Signatera jako doprovodné diagnostiky pro svalově invazivní rakovinu močového měchýře. Žádost navazuje na nedávné schválení v USA pro MIBC a v Japonsku pro kolorektální karcinom.
Follows Signatera’s recent U.S. FDA approval in MIBC and Japanese PMDA approval in CRC
AUSTIN, Texas--(BUSINESS WIRE)--Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and precision medicine, today announced that it has submitted an application to Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) for approval of the Signatera test in muscle-invasive bladder cancer (MIBC) as a companion diagnostic (CDx).
The submission advances Natera’s growing presence in Japan, where Signatera received PMDA approval in colorectal cancer in June, becoming the country’s first PMDA-approved molecular residual disease (MRD) test.
The MIBC application is supported by data from IMvigor011, a randomized, double-blind Phase 3 clinical trial. It also builds on recent milestones for Signatera in MIBC: the U.S. FDA’s approval of Signatera™ CDx as a companion diagnostic for adjuvant atezolizumab (Tecentriq®); and a Category 1 recommendation for Signatera MRD-guided adjuvant atezolizumab in the National Comprehensive Cancer Network® (NCCN®) Clinical Practice Guidelines for Bladder Cancer.
Bladder cancer affects more than 34,000 people in Japan each year.1 Globally, approximately 20–25% of newly diagnosed bladder cancers are muscle-invasive.2 MIBC is a more aggressive form of the disease, associated with higher recurrence risk and treatment complexity.
“Signatera is a proven tool in bladder cancer management, and this submission reflects our commitment to bringing precision diagnostics to patients in Japan,” said Alexey Aleshin, M.D., corporate chief medical officer and general manager of oncology at Natera. “We look forward to engaging with the PMDA and to improving outcomes for patients around the world.”
Notes
Tecentriq® (atezolizumab) is a registered trademark of Genentech, a member of the Roche Group.
References
World Cancer Research Fund International. Bladder cancer statistics. Accessed June 26, 2026. https://www.wcrf.org/preventing-cancer/cancer-statistics/bladder-cancer-statistics/ Gakis G. Management of Muscle-invasive Bladder Cancer in the 2020s: Challenges and Perspectives. Eur. Urol. Focus. 2020;6(4):632-638. About Natera
Natera is a global leader in cell-free DNA and precision medicine, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard-of-care to protect health and inform earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are supported by more than 400 peer-reviewed publications that demonstrate excellent performance. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas, and San Carlos, California, and through Foresight Diagnostics, its subsidiary, operates an ISO 27001-certified and CAP-accredited laboratory certified under CLIA in Boulder, Colorado. For more information, visit www.natera.com.
Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are forward-looking statements and are not a representation that Natera’s plans, estimates, or expectations will be achieved. These forward-looking statements represent Natera’s expectations as of the date of this press release, and Natera disclaims any obligation to update the forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including with respect to our efforts to develop and commercialize new product offerings, whether the results of clinical or other studies will support the use of our product offerings, the impact of results of such studies, our expectations of the reliability, accuracy, and performance of our tests, or of the benefits of our tests and product offerings to patients, providers, and payers. Additional risks and uncertainties are discussed in greater detail in "Risk Factors" in Natera’s recent filings on Forms 10-K and 10-Q, and in other filings Natera makes with the SEC from time to time. These documents are available at www.natera.com/investors and www.sec.gov.
MALVERN, Pa., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal second quarter ended July 4, 2026.
Highlights
2Q 2026 GAAP revenues of $888.6 million; adjusted revenues of $918.6 millionGAAP revenues reduced by $30.0 million of tariff refunds passed through to customers, with no impact on gross profitGross margin was 23.3%; adjusted gross margin was 22.6%Operating margin was 6.0%; adjusted operating margin was 5.8%2Q 2026 diluted EPS of $0.192Q 2026 book-to-bill of 1.32 with book-to-bill of 1.23 for semiconductors and 1.40 for passive componentsBacklog at quarter end was 6.1 months
“For the second quarter, Vishay delivered 9.5% sequential growth to adjusted revenue of $919 million, exceeding the top end of our revenue guidance and representing continued strengthening demand across all end markets, channels and regions,” said Joel Smejkel, president and CEO. “Executing as a new company, Vishay 3.0 is focused on supplying our increasing customer count and taking full advantage of the upcycle, outpacing industry growth, while laying the foundation to leverage multi-year demand across all end markets for sustained growth, expanded margins and enhanced stockholder returns.”
3Q 2026 Outlook
For the third quarter of 2026, management expects revenues in the range of $945 million and $975 million and a gross profit margin in the range of 24.0% +/- 50 basis points.
Conference Call
A conference call to discuss Vishay’s second quarter financial results is scheduled for Wednesday, August 5, 2026, at 9:00 a.m. ET. To participate in the live conference call, please pre-register here. Upon registering, you will be emailed a dial-in number, and unique PIN.
A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.
There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.
About Vishay
Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and healthcare markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.
This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted net revenues; adjusted gross margin; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted net revenues, adjusted gross margin, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results and financial trends of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted net revenues, adjusted gross margin, adjusted operating margin, and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay's revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company’s financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.
Statements contained herein that relate to the Company's future performance, including forecasted revenues and margins, capacity expansion, multi-year customer demand, stockholder returns, and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as “will,” “expect,” “going forward” or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand; delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; volatility in prices for metals and materials; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The DNA of tech® is a trademark of Vishay Intertechnology.
Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Executive Vice President, Corporate Development
+1-610-644-1300
VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Fiscal quarters ended July 4, 2026 April 4, 2026 June 28, 2025 Net revenues(a) $888,575 $839,242 $762,250 Costs of products sold(b) 681,193 662,630 613,567 Gross profit 207,382 176,612 148,683 Gross margin 23.3% 21.0% 19.5% Selling, general, and administrative expenses(c) 153,856 154,488 126,565 Operating income 53,526 22,124 22,118 Operating margin 6.0% 2.6% 2.9% Other income (expense): Interest expense (10,333) (9,973) (10,588) Other (794) 701 747 Total other income (expense) - net (11,127) (9,272) (9,841) Income before taxes 42,399 12,852 12,277 Income tax expense 14,275 5,688 10,273 Net earnings $28,124 $7,164 $2,004 Basic earnings per share $0.21 $0.05 $0.01 Diluted earnings per share $0.19 $0.05 $0.01 Weighted average shares outstanding - basic 136,824 136,045 135,702 Weighted average shares outstanding - diluted 147,901 137,471 136,167 Cash dividends per share $0.10 $0.10 $0.10 (a) Net revenues for the fiscal quarter ended July 4, 2026 are reduced by ($30,008) for tariff refunds passed through to customers, with no impact on gross profit.(b) Costs of product sold for the fiscal quarter ended July 4, 2026 are reduced by ($30,008) for tariff refunds received from the U.S. government, with no impact on gross profit.(c) Selling, general, and administrative expenses for the fiscal quarter ended June 28, 2025 include a ($11,293) benefit recognized upon the favorable resolution of a contingency. VISHAY INTERTECHNOLOGY, INC. Summary of Operations (Unaudited - In thousands, except per share amounts) Six fiscal months ended July 4, 2026 June 28, 2025 Net revenues(d) $1,727,817 $1,477,486 Costs of products sold(e) 1,343,823 1,193,249 Gross profit 383,994 284,237 Gross margin 22.2% 19.2% Selling, general, and administrative expenses(f) 308,344 261,304 Operating income 75,650 22,933 Operating margin 4.4% 1.6% Other income (expense): Interest expense (20,306) (19,378)Other (93) 4,494 Total other income (expense) - net (20,399) (14,884) Income before taxes 55,251 8,049 Income tax expense 19,963 10,137 Net earnings (loss) $35,288 $(2,088) Basic earnings (loss) per share attributable to Vishay stockholders $0.26 $(0.02) Diluted earnings (loss) per share attributable to Vishay stockholders $0.25 $(0.02) Weighted average shares outstanding - basic 136,428 135,750 Weighted average shares outstanding - diluted 142,680 135,750 Cash dividends per share $0.20 $0.20 (d) Net revenues for the six fiscal months ended July 4, 2026 are reduced by ($30,008) for tariff refunds passed through to customers, with no impact on gross profit.(e) Costs of product sold for the six fiscal months ended July 4, 2026 are reduced by ($30,008) for tariff refunds received from the U.S. government, with no impact on gross profit.(f) Selling, general, and administrative expenses for the six fiscal months ended June 28, 2025 include a ($11,293) benefit recognized upon the favorable resolution of a contingency. VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (Unaudited - In thousands) July 4, 2026 December
31, 2025 Assets Current assets: Cash and cash equivalents $1,297,309 $514,966 Short-term investments 5,263 265 Accounts receivable, net 393,373 381,802 Inventories: Finished goods 184,960 182,444 Work in process 360,965 331,347 Raw materials 261,186 245,412 Total inventories 807,111 759,203 Prepaid expenses and other current assets 221,811 231,004 Total current assets 2,724,867 1,887,240 Property and equipment, at cost: Land 85,711 86,399 Buildings and improvements 841,294 839,856 Machinery and equipment 3,505,644 3,477,884 Construction in progress 558,131 464,475 Allowance for depreciation (3,241,135) (3,195,455) 1,749,645 1,673,159 Right of use assets 122,630 119,746 Deferred income taxes 190,381 183,016 Goodwill 180,027 180,390 Other intangible assets, net 71,266 78,487 Other assets 117,550 112,122 Total assets $5,156,366 $4,234,160 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Balance Sheets (continued) (Unaudited - In thousands) July 4, 2026 December
31, 2025 Liabilities and equity Current liabilities: Trade accounts payable $237,482 $214,984 Payroll and related expenses 179,479 164,114 Lease liabilities 28,241 26,546 Other accrued expenses 310,238 300,031 Income taxes 18,757 14,751 Current portion of long-term debt 737,744 - Total current liabilities 1,511,941 720,426 Long-term debt less current portion 234,543 950,893 Deferred income taxes 97,488 96,818 Long-term lease liabilities 96,583 95,799 Other liabilities 136,668 109,228 Accrued pension and other postretirement costs 166,246 172,723 Total liabilities 2,243,469 2,145,887 Equity: Vishay stockholders' equity Common stock 14,129 12,351 Class B convertible common stock 1,210 1,210 Capital in excess of par value 1,945,629 1,101,086 Retained earnings 900,268 892,232 Accumulated other comprehensive income 51,661 81,394 Total equity 2,912,897 2,088,273 Total liabilities and equity $5,156,366 $4,234,160 VISHAY INTERTECHNOLOGY, INC. Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands) Six fiscal months ended July 4, 2026 June 28,
2025 Operating activities Net earnings (loss) $35,288 $(2,088)Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation and amortization 114,328 109,743 Loss on disposal of property and equipment 24 73 Inventory write-offs for obsolescence 21,883 17,456 Deferred income taxes (6,069) (6,034)Stock compensation expense 20,056 11,736 Other 79 (3,606)Change in U.S. transition tax liability - (47,027)Change in repatriation tax liability (2,000) (9,375)Changes in operating assets and liabilities (14,561) (63,571)Net cash provided by operating activities 169,028 7,307 Investing activities Capital expenditures (205,862) (126,167)Proceeds from sale of property and equipment 221 494 Purchase of short-term investments (5,260) (28,481)Maturity of short-term investments 262 39,400 Other investing activities (381) (661)Net cash used in investing activities (211,020) (115,415) Financing activities Proceeds from follow-on public offering, net of underwriting discounts and issuance costs 830,250 - Principal payments on long-term debt - (41,911)Net proceeds on revolving credit facility 19,000 49,000 Dividends paid to common stockholders (24,805) (24,700)Dividends paid to Class B common stockholders (2,419) (2,419)Repurchase of common stock - (12,538)Cash withholding taxes paid when shares withheld for vested equity awards (4,013) (3,957)Other financing activities 10,000 10,078 Net cash provided by (used in) financing activities 828,013 (26,447)Effect of exchange rate changes on cash and cash equivalents (3,678) 18,129 Net increase (decrease) in cash and cash equivalents 782,343 (116,426) Cash and cash equivalents at beginning of period 514,966 590,286 Cash and cash equivalents at end of period $1,297,309 $473,860 VISHAY INTERTECHNOLOGY, INC. Schedule of Adjusted Revenue, Gross Profit, and Gross Margin (Unaudited - In thousands) Fiscal quarter ended Six fiscal months ended July 4, 2026 July 4, 2026 GAAP Adjusted(g) GAAP Adjusted(g) Net revenues $888,575 $918,583 $1,727,817 $1,757,825 Gross profit 207,382 207,382 383,994 383,994 Gross margin 23.3% 22.6% 22.2% 21.8% (g) Adjusted net revenues for the fiscal quarter and six fiscal months ended July 4, 2026 exclude $30,008 for tariff refunds passed through to customers, with no impact on gross profit. The tariff refunds are recognized as a reduction of Net revenues and Costs of products sold in the GAAP results. Adjusted gross margin is calculated using adjusted net revenues. VISHAY INTERTECHNOLOGY, INC. Reconciliation of Adjusted Earnings Per Share (Unaudited - In thousands, except per share amounts) Fiscal quarters ended Six fiscal months ended July 4, 2026 April 4,
2026 June 28,
2025 July 4, 2026 June 28,
2025 Net earnings (loss) $28,124 $7,164 $2,004 $35,288 $(2,088) Reconciling items affecting net revenues: Tariff refunds passed through to customers 30,008 - - 30,008 - Other reconciling items affecting gross profit: Tariff refunds received from U.S. government (30,008) - - (30,008) - Other reconciling items affecting operating income: Favorable resolution of contingency - - (11,293) - (11,293) Adjusted net earnings (loss) $28,124 $7,164 $(9,289) $35,288 $(13,381) Adjusted weighted average diluted shares outstanding 147,901 137,471 135,702 142,680 135,750 Adjusted earnings (loss) per diluted share $0.19 $0.05 $(0.07) $0.25 $(0.10) VISHAY INTERTECHNOLOGY, INC. Reconciliation of Free Cash (Unaudited - In thousands) Fiscal quarters ended Six fiscal months ended July 4, 2026 April 4,
2026 June 28,
2025 July 4, 2026 June 28,
2025 Net cash provided by (used in) operating activities $105,359 $63,669 $(8,791) $169,028 $7,307 Proceeds from sale of property and equipment 155 66 215 221 494 Less: Capital expenditures (95,201) (110,661) (64,598) (205,862) (126,167)Free cash $10,313 $(46,926) $(73,174) $(36,613) $(118,366) VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA (Unaudited - In thousands) Fiscal quarters ended Six fiscal months ended July 4, 2026 April 4,
2026 June 28,
2025 July 4, 2026 June 28,
2025 Net earnings (loss) $28,124 $7,164 $2,004 $35,288 $(2,088) Interest expense 10,333 9,973 10,588 20,306 19,378 Interest income (4,088) (3,038) (4,023) (7,126) (7,900)Income taxes 14,275 5,688 10,273 19,963 10,137 Depreciation and amortization 56,117 58,211 55,970 114,328 109,743 EBITDA $104,761 $77,998 $74,812 $182,759 $129,270 Reconciling items Tariff refunds passed through to customers 30,008 - - 30,008 - Tariff refunds received from U.S. government (30,008) - - (30,008) - Favorable resolution of contingency - - (11,293) - (11,293) Adjusted EBITDA $104,761 $77,998 $63,519 $182,759 $117,977 Adjusted EBITDA margin(h) 11.4% 9.3% 8.3% 10.4% 8.0% (h) Adjusted EBITDA as a percentage of adjusted net revenues
FORT WORTH, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended June 30, 2026. Revenues for the quarter were $260 million, an increase from $235 million in the June quarter of 2025. Earnings per share for the quarter were $0.63, compared to $0.52 in the same quarter of the prior year.
First Quarter Fiscal Year 2027 Highlights
Revenue increased 11% to $260 million, compared to first quarter of fiscal year 2026.Gross profit increased 19% to $67.8 million, at 26% gross margin, compared to first quarter of fiscal year 2026 gross profit of $56.8 million.Diluted earnings per share increased 21% to $0.63, compared to first quarter of fiscal year 2026 diluted earnings per share of $0.52.The Company exited the quarter with $256 million of cash, cash equivalents, and no borrowings.The Company repurchased $21.8 million of common stock during the quarter.
During the quarter, CorVel marked the 35th anniversary of its Nasdaq listing by ringing the opening bell with members of its executive leadership team. The milestone reflects the Company's long-standing commitment to disciplined execution, prudent capital management, and sustained investment in innovation, all of which have supported more than three decades of consistent growth and long-term value creation for clients and shareholders
In addition, the Company expanded its support for workers’ compensation and liability clients through the introduction of Executive Advisory Services. By combining operational expertise, analytics, benchmarking, and technology, the offering provides clients with actionable insights to reduce costs, improve program performance, and achieve better outcomes while strengthening long-term strategic partnerships.
CERIS broadened its payment integrity capabilities through new client implementations and targeted investments designed to improve payment accuracy and help health plans address increasing cost and regulatory pressures. Across both Patient Management and Network Solutions, CorVel remains focused on delivering measurable value by combining deep operational expertise with advanced technology and data-driven insights.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company, management’s beliefs, and certain assumptions made by the Company, and events beyond the Company’s control, all of which are subject to change. Such forward-looking statements include, but are not limited to, improved payment accuracy and reducing costs, improving program performance and achieving better outcomes with operational expertise combined with advanced technology. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company’s actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties referred to above include but are not limited to factors described in this press release and the Company’s filings with the Securities and Exchange Commission, including but not limited to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, and the Company’s Quarterly Report on Form 10-Q for the quarters ended June 30, 2025, September 30, 2025, and December 31, 2025. The forward-looking statements in this press release speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
CorVel Corporation
Quarterly Results – Income Statement
Quarters Ended June 30, 2026 (unaudited) and June 30, 2025 (unaudited)
Quarter Ended June 30, 2026 June 30, 2025 Revenues $259,925,000 $234,711,000 Cost of revenues 192,131,000 177,950,000 Gross profit 67,794,000 56,761,000 General and administrative 24,453,000 21,478,000 Income from operations 43,341,000 35,283,000 Income tax provision 11,116,000 8,048,000 Net income $32,225,000 $27,235,000 Earnings Per Share: Basic $0.63 $0.53 Diluted $0.63 $0.52 Weighted Shares Basic 50,804,000 51,352,000 Diluted 50,928,000 51,912,000 CorVel Corporation
Quarterly Results – Condensed Balance Sheet
June 30, 2026 (unaudited) and March 31, 2026
June 30, 2026 March 31, 2026 Cash $255,883,000 $233,072,000 Customer deposits 127,050,000 115,706,000 Accounts receivable, net 110,997,000 101,313,000 Prepaid taxes and expenses 10,851,000 12,206,000 Property, net 121,764,000 117,906,000 Goodwill and other assets 42,467,000 41,619,000 Right-of-use asset, net 20,723,000 21,146,000 Total $689,735,000 $642,968,000 Accounts and taxes payable $30,086,000 $24,550,000 Accrued liabilities 229,970,000 203,518,000 Long-term lease liabilities 20,787,000 20,687,000 Paid-in capital 272,922,000 268,518,000 Treasury stock (909,684,000) (887,716,000)Retained earnings 1,045,654,000 1,013,429,000 Total $689,735,000 $642,986,000
Kyndryl za 1. fiskální čtvrtletí vykázal tržby 3,6 mld. USD, čistou ztrátu 55 mil. USD a potvrdil výhled pro fiskální rok 2027. Firma zároveň oznámila 152 mil. USD nákladů na restrukturalizaci pracovní síly.
Revenues for the quarter ended June 30, 2026 total $3.6 billion, pretax loss is $69 million, and net loss is $55 million Adjusted EBITDA is $512 million, adjusted pretax loss is $37 million, and adjusted net loss is $26 million Actions to streamline operations resulted in $152 million of workforce rebalancing charges, which are included in reported and adjusted results Company reaffirms fiscal 2027 outlook for revenue, earnings and free cash flow , /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released financial results for the quarter ended June 30, 2026, the first quarter of its 2027 fiscal year.
"Our first quarter results reflected strong momentum in signings, supported by strength in Kyndryl Consult and hyperscalers, with an increasing demand for AI-led modernization solutions," said Chairman and Chief Executive Officer Martin Schroeter. "We're encouraged by the progress we're making to improve business fundamentals and remain focused on driving consistent execution and delivering our fiscal 2027 and multi-year objectives."
Results for the Fiscal First Quarter Ended June 30, 2026
For the first quarter, Kyndryl reported revenues of $3.6 billion, down 3% year-over-year on a reported basis and down 3% in constant currency. The Company reported a pretax loss of $69 million, compared to pretax income of $92 million in the prior-year period. Net loss was $55 million, or ($0.25) per diluted share, in the quarter, compared to net income of $56 million, or $0.23 per diluted share, in the prior-year period. The first quarter 2027 results include workforce rebalancing charges of $152 million. Cash used from operations was $310 million, compared to $124 million in the prior-year period, primarily due to timing of working capital, including higher software payments and lower billings and collections, partially offset by lower incentive compensation payments.
Adjusted pretax loss was $37 million, compared to adjusted pretax income of $128 million in the prior-year period. Adjusted net loss was $26 million, or ($0.12) per diluted share, compared to adjusted net income of $90 million, or $0.37 per diluted share, in the prior-year period. Adjusted EBITDA was $512 million compared to $647 million in the prior-year period. The first quarter 2027 results include workforce rebalancing charges of $152 million. Free cash flow was a use of $401 million in the quarter, compared to a use of $222 million in the prior year, consistent with drivers of cash used from operations as described above. See "Non-GAAP Metric Definitions and Reconciliations."
Highlights
Signings – In the trailing twelve months signings were $14.2 billion, including $3.9 billion signed in the first quarter, supported by strength in the United States segment. Kyndryl signed 40 customer contracts exceeding $50 million each in the last twelve months, of which 10 were signed in the first quarter. Kyndryl Consult revenue – In the first quarter, Kyndryl Consult revenues grew 10% year-over-year. Over the last twelve months, Kyndryl Consult revenues were $3.6 billion, a 14% increase year-over-year. Kyndryl Consult signings were $4.4 billion over the last twelve months, an 8% increase year-over-year. Hyperscaler-related revenue – In the first quarter, hyperscaler-related revenues of more than $530 million grew 34% year-over-year, exiting the quarter at an annualized revenue run-rate of more than $2.1 billion. AI-led modernization – During the quarter, Kyndryl expanded its AI capabilities to support AI-led modernization with the launch of Kyndryl AI Orchestration for Business and a patented agentic AI capability in Kyndryl Bridge. Kyndryl also released its People Readiness Report, which found that 57% of enterprises have embedded AI in core business processes, but only 32% have achieved their AI goals, underscoring the opportunity to help enterprises realize greater value from their AI investments. Actions to streamline operations – In the first quarter, Kyndryl incurred $152 million of charges related to workforce-rebalancing actions. The Company continues to expect approximately $200 million of charges in fiscal 2027. These workforce rebalancing efforts, once completed, are expected to result in annualized run-rate operating expense savings of approximately $400 to $500 million in the Company's fiscal year 2028. Share repurchases – In the first quarter, the Company repurchased 5.0 million shares of its common stock at a cost of $64 million. Since the authorization of its share repurchase program in November 2024, the Company has bought back 19.3 million shares for $462 million, or 8% of its shares outstanding. Reaffirms Fiscal Year 2027 Outlook
Kyndryl reaffirms its outlook for its fiscal 2027, which runs from April 2026 to March 2027:
Adjusted pretax income of $600 to $700 million Consistent with our definition of adjusted pretax income since fiscal 2025, this includes workforce rebalancing charges Free cash flow of $400 to $500 million Constant-currency revenue flat to down 2% See "Non-GAAP Metric Definitions and Reconciliations."
Earnings Webcast
Kyndryl's earnings call for the first fiscal quarter is scheduled to begin at 8:30 a.m. ET on August 5, 2026. The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl's investor relations website. A slide presentation will be made available on Kyndryl's investor relations website before the call on August 5, 2026. Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are based on the Company's current assumptions and beliefs regarding future business and financial performance.
The Company's actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell services to customers; failure to meet growth and productivity objectives and maintain our capital allocation strategy; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, geopolitical, public health and other conditions; damage to the Company's reputation and impact on the Company and our stock price resulting from negative publicity; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company's ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; the Company's ability to refinance maturing debt on favorable terms in a timely manner, or at all, and risks related to the Company's access to capital and credit markets; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements and changes in laws, regulations and policies in the U.S. and countries where the Company and its customers do business, including with respect to tariffs, taxes and other controls on imports or exports; adverse effects from tax matters; risks related to legal and regulatory claims, suits, investigations, proceedings and other matters, and consequences relating thereto; the Company's ability to remediate, and the timing and costs related to the remediation of, material weaknesses in internal control over financial reporting, as well as the Company's ability to maintain effective controls in the future; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; and risks related to the Company's common stock and the securities market.
Additional risks and uncertainties include, among others, those risks and uncertainties described in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026, as such factors may be updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date on which it is made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts. Forecasted amounts are based on currency exchange rates as of July 2026.
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income (loss), adjusted net income (loss), adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt and free cash flow. Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them. The Company's non-GAAP metrics may not be comparable to similarly titled metrics used by other companies. Definitions and additional information about our calculation of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.
A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP.
Investor Contact:
[email protected]
Media Contact:
[email protected]
Table 1
CONSOLIDATED INCOME STATEMENT
(in millions, except per share amounts)
Three Months Ended June 30,
2026
2025
Revenues
$
3,618
$
3,743
Cost of services
$
2,842
$
2,947
Selling, general and administrative expenses
668
646
Workforce rebalancing charges
152
25
Transaction-related costs (benefits)
(38)
—
Impairment expense
38
—
Interest expense
34
19
Other expense (income)
(10)
13
Total costs and expenses
$
3,687
$
3,651
Income (loss) before income taxes
$
(69)
$
92
Provision for income taxes
(14)
36
Net income (loss)
$
(55)
$
56
Earnings (loss) per share data
Basic earnings (loss) per share
$
(0.25)
$
0.24
Diluted earnings (loss) per share
(0.25)
0.23
Weighted-average basic shares outstanding
220.6
230.2
Weighted-average diluted shares outstanding
220.6
239.1
Table 2
SEGMENT RESULTS
AND SELECTED BALANCE SHEET INFORMATION
(dollars in millions)
Three Months Ended June 30,
Year-over-Year Growth
As
Constant
Segment Results
2026
2025
Reported
Currency
Revenue
United States
$
954
$
911
5 %
5 %
Japan
534
578
(8 %)
2 %
Principal Markets
1,262
1,356
(7 %)
(8 %)
Strategic Markets
868
898
(3 %)
(8 %)
Total revenue
$
3,618
$
3,743
(3 %)
(3 %)
Adjusted EBITDA
United States
$
220
$
196
Japan
109
115
Principal Markets
151
197
Strategic Markets
62
163
Corporate and other
(30)
(26)
Total adjusted EBITDA
$
512
$
647
June 30,
March 31,
Balance Sheet Data
2026
2026
Cash and equivalents
$
2,104
$
2,623
Debt (short-term and long-term)
4,070
4,089
Table 3
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in millions)
Three Months Ended June 30,
2026
2025
Cash flows from operating activities:
Net income (loss)
$
(55)
$
56
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
Depreciation of property, equipment and capitalized software
183
191
Depreciation of right-of-use assets
68
73
Amortization of transition costs and prepaid software
331
308
Amortization of capitalized contract costs
94
106
Amortization of acquisition-related intangible assets
6
7
Stock-based compensation
21
24
Deferred taxes
(50)
(10)
Net (gain) loss on asset sales and other
6
—
Change in operating assets and liabilities:
Right-of-use assets and liabilities (excluding depreciation)
(81)
(88)
Workforce rebalancing liabilities
132
3
Current accounts receivable
18
114
Lease and other receivables
(51)
(67)
Accounts payable
(320)
(269)
Taxes
(32)
27
Deferred transition costs and prepaid software (excluding amortization)1
Net cash provided by (used in) operating activities
$
(310)
$
(124)
Cash flows from investing activities:
Capital expenditures
$
(149)
$
(143)
Proceeds from disposition of property and equipment
58
45
Acquisitions and divestitures, net of cash acquired
31
1
Other investing activities, net
11
22
Net cash used in investing activities
$
(49)
$
(74)
Cash flows from financing activities:
Debt repayments
$
(52)
$
(36)
Common stock repurchases
(64)
(62)
Common stock repurchases for tax withholdings
(13)
(67)
Other financing activities, net
(23)
(5)
Net cash used in financing activities
$
(152)
$
(170)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
$
(4)
$
46
Net change in cash, cash equivalents and restricted cash
$
(515)
$
(323)
Cash, cash equivalents and restricted cash at beginning of period
$
2,626
$
1,789
Cash, cash equivalents and restricted cash at end of period
$
2,111
$
1,466
Supplemental data
Income taxes paid, net of refunds received
$
76
$
67
Interest paid on debt
$
50
$
39
_______________
1
Includes $925 million non-cash offsetting increases in deferred costs and other liabilities related to an extended and amended multiyear software license in the three months ended June 30, 2025.
Table 4
DEFINITIONS AND NON-GAAP RECONCILIATIONS
(dollars in millions, except signings)
Non-GAAP Metrics
We report our financial results in accordance with GAAP. We also present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward. Moreover, we use certain of these non-GAAP financial metrics in measuring performance under our executive compensation plans.
Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We define constant-currency revenues as total revenues excluding the impact of foreign exchange rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis. Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period exchange rates.
Adjusted pretax income (loss) is defined as pretax income (loss) excluding transaction-related costs and benefits, charges related to ceasing to use leased / fixed assets, charges related to lease terminations, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisitionrelated intangible assets, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted pretax margin is calculated by dividing adjusted pretax income (loss) by revenue.
Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased / fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
Adjusted net income (loss) is defined as adjusted pretax income (loss) less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income (loss), and excluding exceptional items impacting the reported provision for income taxes. Adjusted net margin is calculated by dividing adjusted net income (loss) by revenue.
Adjusted earnings (loss) per share (EPS) is defined as adjusted net income (loss) divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income (loss). The weighted average common shares outstanding used to calculate adjusted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an antidilutive effect for one calculation but not for the other.
Free cash flow is defined as cash flows from operating activities (GAAP), less net capital expenditures. Management uses free cash flow as a measure to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt. We believe this metric is useful supplemental financial measures to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt. Free cash flow is a financial measure that is not recognized under U.S. GAAP and should not be considered as an alternative to cash flows from operations or liquidity derived in accordance with U.S. GAAP. As part of the Company's ongoing cash and commercial management strategy with customers and suppliers and as previously disclosed, the Company's standard practice since the time of the Company's spin-off from International Business Machines Corporation is to actively manage the Company's working capital, including accounts receivables and accounts payables. This includes optimizing payment terms and conditions, accelerating certain cash receipts and delaying certain cash payments (including deferring vendor payments quarter to quarter), and undertaking other discretionary cash and working capital management initiatives. The magnitude of these practices (including deferrals) has varied from quarter to quarter and impacted the Company's cash flows, including positively in certain periods. The effects of these practices have been and are reflected in the Company's accounts payable, accounts receivable and cash flow balance, which are accounted for in accordance with GAAP. The Company's working capital and cash flows have also reflected the impact of accrued contract costs in certain periods due to the timing of vendor billings. The Company may, from time to time, revise or adapt the Company's cash and working capital management practices as it deems appropriate. Free cash flow for the three months ended June 30, 2026 and 2025, as well as the free cash flow guidance included in this press release or the Company's other earnings materials, reflect the historical and expected application of these practices.
Other Metrics
Signings are defined by Kyndryl as an initial estimate of the value of a customer's commitment under a contract. The calculation involves estimates and judgments to gauge the extent of a customer's commitment. We calculate this based on various considerations including the type and duration of the agreement as well as the presence of termination charges or wind-down costs. Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value. Signings can vary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts. Signings should not be considered a comprehensive measure of future revenue, and the conversion of signings into revenue may vary based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events. Management uses signings to monitor the performance of the business, as a measure of customer engagement and our ability to drive growth.
Hyperscaler-related annualized revenue run-rate is a metric that we define as revenue for the most recently completed fiscal quarter multiplied by four. Management believes this metric provides investors with an additional perspective regarding the current revenue-generating capacity based on recent operating performance and to assess business momentum over time. Hyperscaler-related annualized revenue run-rate is not a forecast, projection, or prediction of future revenue and should not be viewed as an indication of expected revenue for any future period.
Reconciliation of net income (loss)
to adjusted pretax income (loss),
adjusted EBITDA, adjusted net
income (loss) and adjusted EPS
Three Months Ended June 30,
(in millions, except per share amounts)
2026
2025
Net income (loss) (GAAP)
$
(55)
$
56
Provision for income taxes
(14)
36
Pretax income (loss) (GAAP)
$
(69)
$
92
Transaction-related costs (benefits)1
(38)
—
Stock-based compensation expense
21
24
Amortization of acquisition-related intangible assets
6
7
Impairment expense2
38
—
Other adjustments3
5
5
Adjusted pretax income (loss) (non-GAAP)
$
(37)
$
128
Interest expense
34
19
Depreciation of property, equipment and capitalized software
183
191
Amortization of transition costs and prepaid software
331
308
Adjusted EBITDA (non-GAAP)
$
512
$
647
Net income (loss) margin
(1.5) %
1.5 %
Adjusted EBITDA margin
14.2 %
17.3 %
Adjusted pretax income (loss) (non-GAAP)
$
(37)
$
128
Provision for income taxes (GAAP)
14
(36)
Tax effect of non-GAAP adjustments
(4)
(3)
Adjusted net income (loss) (non-GAAP)
$
(26)
$
90
Diluted weighted average shares outstanding for calculating adjusted EPS
220.6
239.1
Diluted earnings (loss) per share (GAAP)
$
(0.25)
$
0.23
Adjusted earnings (loss) per share (non-GAAP)
$
(0.12)
$
0.37
_______________
1
Kyndryl's reported results for the three months ended June 30, 2026 include a transaction-related gain of $40 million from the sale of a digital solutions subsidiary in the Principal Markets segment.
2
Kyndryl's reported results for the three months ended June 30, 2026 include an impairment expense for the sale of a facility in the United States.
3
Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries.
Reconciliation of cash flows from operations
Three Months Ended June 30,
to free cash flow (in millions)
2026
2025
Cash flows from operating activities (GAAP)
$
(310)
$
(124)
Less: Net capital expenditures1
(91)
(97)
Free cash flow (non-GAAP)2
$
(401)
$
(222)
_______________
1
Net capital expenditures consists of capital expenditures less proceeds from dispositions of property and equipment.
2
Free cash flow for the three months ended June 30, 2026 includes transaction-related payments of $1 million and significant litigation payments of $11 million. See "Non-GAAP Metric Definitions and Reconciliations" for more information about our calculation of free cash flow.
Three Months Ended June 30,
Last Twelve Months Ended June 30,
Signings (in billions)
2026
2025
2026
2025
Signings1
$
3.9
$
3.2
$
14.2
$
18.3
_______________
1
Currency movements did not have a material impact on the year-over-year change in the three-month period ended June 30, 2026. Currency movements favorably impacted the year‑over‑year change by approximately 2 points in the twelve‑month period ended June 30, 2026.
Q2 Diluted EPS of $0.37 and Q2 Adjusted Diluted EPS of $0.39
Raises Full-Year Diluted and Adjusted Diluted EPS Guidance
TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the second quarter 2026 (“Q2 2026”) compared to the second quarter 2025 (“Q2 2025”).
CEO Comments
“I am pleased with our financial results in the second quarter and our continued progress on the Outback Turnaround, which has led us to raise our full year earnings guidance,” said Mike Spanos, CEO. “We remain focused on consistency of execution across food, service, experience, and affordability to deliver a great guest experience.”
Diluted EPS and Adjusted Diluted EPS
The following table reconciles Diluted earnings per share from continuing operations to Adjusted diluted earnings per share from continuing operations for the periods indicated (unaudited):
Q2
2026
2025
CHANGE
Diluted earnings per share:
$
0.37
$
0.29
$
0.08
Adjustments (1)
0.02
0.03
(0.01
)
Adjusted diluted earnings per share (1)
$
0.39
$
0.32
$
0.07
_______________
(1) Adjustments for Q2 2026 and Q2 2025 primarily relate to costs in connection with transformational and restructuring initiatives. Q2 2025 also includes costs associated with the foreign currency forward contracts. See non-GAAP Measures later in this release. Also see Tables Five and Six for further details regarding the nature of diluted earnings per share adjustments for the periods presented. Second Quarter Financial Results
(dollars in millions, unaudited)
Q2 2026
Q2 2025
CHANGE
Total revenues
$
1,015.8
$
1,002.4
1.3
%
GAAP operating income margin
3.8
%
3.0
%
0.8
%
Adjusted operating income margin (1)
4.0
%
3.5
%
0.5
%
Restaurant-level operating margin (1)
12.4
%
12.0
%
0.4
%
_______________
(1) See non-GAAP Measures later in this release. Also see Tables Four and Five for details regarding the nature of restaurant-level operating margin and operating income margin adjustments, respectively. The increase in Total revenues was primarily due to higher comparable restaurant sales partially offset by the net impact of restaurant closures and openings. GAAP operating income margin increased from Q2 2025 primarily due to an increase in restaurant-level operating margin, as detailed below, and lower costs in connection with transformational and restructuring initiatives. These impacts were partially offset by higher impairment and closing costs. Restaurant-level operating margin increased from Q2 2025 primarily due to: (i) higher average check per person, primarily due to pricing, (ii) productivity initiatives and (iii) lower pre-opening costs and health insurance expense. These impacts were partially offset by higher commodity, labor and operating costs, mainly due to inflation, and higher advertising expense. Adjusted operating income margin primarily excludes: (i) accelerated depreciation in Q2 2026 associated with equipment upgrades in connection with the turnaround strategy, (ii) Q2 2025 severance and other costs incurred as a result of transformational and restructuring initiatives and (iii) Q2 2025 costs associated with foreign currency forward contracts. Second Quarter Comparable Restaurant Sales
THIRTEEN WEEKS ENDED JUNE 28, 2026
COMPANY-OWNED
Comparable restaurant sales (stores open 18 months or more):
U.S.
Outback Steakhouse
1.4
%
Carrabba’s Italian Grill
1.7
%
Bonefish Grill
8.1
%
Fleming’s Prime Steakhouse & Wine Bar
1.6
%
Combined U.S.
2.3
%
Fiscal 2026 Financial Outlook
The table below presents our updated expectations for selected 2026 financial operating results. We are reaffirming all other aspects of our full-year financial guidance as previously communicated.
Financial Results:
Prior Outlook
Current Outlook
U.S. comparable restaurant sales
0.5% to 2.5%
1.0% to 2.0%
Diluted earnings per share (1)
$0.70 to $0.85
$0.85 to $0.95
Adjusted diluted earnings per share (1)
$0.75 to $0.90
$0.90 to $1.00
_______________
(1) Assumes diluted weighted average shares of approximately 86 million.
Q3 2026 Financial Outlook
The table below presents our expectations for selected fiscal Q3 2026 financial operating results.
Financial Results:
Q3 2026 Outlook
U.S. comparable restaurant sales
1.0% to 2.0%
Diluted earnings per share (1)
($0.28) to ($0.23)
Adjusted diluted earnings per share (1)
($0.27) to ($0.22)
_______________
(1) Assumes diluted weighted average shares of approximately 86 million.
Conference Call
The Company will host a conference call today, August 5, 2026 at 8:00 AM EDT. The conference call will be webcast live from the Company’s website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company’s website after the call.
About Bloomin’ Brands, Inc.
Bloomin’ Brands, Inc. is one of the largest full-service dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company’s restaurant portfolio includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. The Company owns, operates and franchises more than 1,440 restaurants in 46 states, Guam and 12 countries. For more information, please visit www.bloominbrands.com.
Non-GAAP Measures
In addition to the results provided in accordance with GAAP, this press release and related tables include certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include: (i) Restaurant-level operating income and the corresponding margin, (ii) Adjusted income from operations and the corresponding margin, (iii) Adjusted segment income from operations and the corresponding margin, (iv) Adjusted net income and (v) Adjusted diluted earnings per share.
Restaurant-level operating margin is a non-GAAP financial measure widely regarded in the industry as a useful metric to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations, and we use it for these purposes.
We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board of Directors evaluate our operating performance, allocate resources and administer employee incentive plans.
These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. We maintain internal guidelines with respect to the types of adjustments we include in our non-GAAP measures. These guidelines endeavor to differentiate between types of gains and expenses that are reflective of our core operations in a period, and those that may vary from period to period without correlation to our core performance in that period. However, implementation of these guidelines necessarily involves the application of judgment, and the treatment of any items not directly addressed by, or changes to, our guidelines will be considered by our disclosure committee. You should refer to the reconciliations of non-GAAP measures in Tables Four, Five and Six included later in this release for descriptions of the actual adjustments made in the current period and the corresponding prior period.
Forward-Looking Statements
Certain statements contained herein, including statements under the headings “CEO Comments”, “Fiscal 2026 Financial Outlook” and “Q3 2026 Financial Outlook” are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as “guidance,” “believes,” “estimates,” “anticipates,” “expects,” “on track,” “feels,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to execute and achieve the expected benefits of our actions to focus on operational priorities, including our turnaround plans and cost-saving initiatives to fund such plans; consumer reaction to public health and food safety issues; increases in labor costs and fluctuations in the availability of employees and our ability to attract, train, and retain key personnel; increases in unemployment rates and taxes; competition; interruption or breach of our systems or loss of consumer or employee information; price and availability of commodities and other impacts of inflation and tariffs; our dependence on a limited number of suppliers and distributors; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; the impacts of our operations in Brazil as a minority investor and franchisor; our ability to address corporate citizenship and sustainability matters and investor expectations; local, regional, national and international economic conditions; changes in patterns of consumer traffic, consumer tastes and dietary habits; the effects of changes in tax laws; costs, diversion of management attention and reputational damage from any claims or litigation; government actions and policies, including the impact of U.S. government shutdowns; challenges associated with our remodeling, relocation and expansion plans; our ability to preserve the value of and grow our brands, including due to our limited control with respect to and the challenges facing the operations of our franchisees; consumer confidence and spending patterns; the effects of a health pandemic, weather, acts of God and other disasters and the ability or success in executing related business continuity plans; the Company’s ability to make debt payments and planned investments and the Company’s compliance with debt covenants; the cost and availability of credit; interest rate changes; and any impairments in the carrying value of goodwill and other assets. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Note: Numerical figures included in this release have been subject to rounding adjustments.
TABLE ONE
BLOOMIN’ BRANDS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(in thousands, except per share data)
JUNE 28, 2026
JUNE 29, 2025
JUNE 28, 2026
JUNE 29, 2025
Revenues
Restaurant sales
$
997,957
$
984,771
$
2,039,783
$
2,014,288
Franchise and other revenues
17,852
17,595
35,699
37,672
Total revenues
1,015,809
1,002,366
2,075,482
2,051,960
Costs and expenses
Food and beverage
306,397
298,332
623,810
611,636
Labor and other related
312,670
315,494
632,879
630,744
Other restaurant operating
254,833
253,225
513,647
511,360
Depreciation and amortization
46,010
44,598
92,306
88,545
General and administrative
53,664
59,527
105,970
120,904
Provision for impaired assets and restaurant closings
3,972
1,540
9,504
1,890
Total costs and expenses
977,546
972,716
1,978,116
1,965,079
Income from operations
38,263
29,650
97,366
86,881
Interest expense, net
(11,141
)
(10,699
)
(23,553
)
(21,886
)
Income before benefit for income taxes
27,122
18,951
73,813
64,995
Benefit for income taxes
(6,672
)
(8,748
)
(16,963
)
(7,845
)
Loss from equity method investment, net of tax
(864
)
(1,806
)
(1,042
)
(3,097
)
Net income from continuing operations
32,930
25,893
89,734
69,743
(Loss) income from discontinued operations, net of tax
(350
)
779
82
525
Net income
32,580
26,672
89,816
70,268
Less: net income attributable to noncontrolling interests
1,236
1,253
2,818
2,697
Net income attributable to Bloomin’ Brands
$
31,344
$
25,419
$
86,998
$
67,571
Basic earnings per share (1):
Continuing operations
$
0.37
$
0.29
$
1.02
$
0.79
Discontinued operations
(*
)
0.01
*
0.01
Net basic earnings per share
$
0.37
$
0.30
$
1.02
$
0.80
Diluted earnings per share (1):
Continuing operations
$
0.37
$
0.29
$
1.01
$
0.79
Discontinued operations
(*
)
0.01
*
0.01
Net diluted earnings per share
$
0.36
$
0.30
$
1.01
$
0.79
Weighted average common shares outstanding:
Basic
85,559
85,041
85,418
84,971
Diluted
86,223
85,140
85,987
85,135
_______________
(1) Amounts may not add due to rounding.
* Represents less than $0.01.
TABLE TWO
BLOOMIN’ BRANDS, INC.
SEGMENT RESULTS
(UNAUDITED)
(dollars in thousands)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
U.S. Segment
JUNE 28, 2026
JUNE 29, 2025
JUNE 28, 2026
JUNE 29, 2025
Revenues
Restaurant sales
$
988,385
$
975,295
$
2,020,576
$
1,995,425
Franchise and other revenues
10,247
10,533
20,509
21,306
Total U.S. segment revenues
998,632
985,828
2,041,085
2,016,731
International Franchise Segment
Franchise revenues (1)
7,593
7,051
15,163
16,334
Reconciliation
All other revenues (2)
9,584
9,487
19,234
18,895
Total revenues
$
1,015,809
$
1,002,366
$
2,075,482
$
2,051,960
Reconciliation of Segment Operating Income to Total Operating Income
Segment income from operations
U.S.
$
67,599
$
68,461
$
155,615
$
156,131
International Franchise
7,409
6,838
14,745
15,842
Total segment income from operations
75,008
75,299
170,360
171,973
Unallocated corporate operating expense
(37,385
)
(46,422
)
(74,113
)
(86,190
)
Other income from operations (2)
640
773
1,119
1,098
Total income from operations
$
38,263
$
29,650
$
97,366
$
86,881
_______________
(1) The twenty-six weeks ended June 29, 2025 includes one month of pre-Brazil Sale Transaction intercompany royalties.
(2) Primarily includes revenues and income from operations related to its Hong Kong subsidiary.
TABLE THREE
BLOOMIN’ BRANDS, INC.
SUPPLEMENTAL BALANCE SHEET INFORMATION
JUNE 28, 2026
DECEMBER 28, 2025
(dollars in thousands)
(UNAUDITED)
Cash and cash equivalents
$
66,613
$
59,461
Net working capital (deficit) (1)
$
(614,443
)
$
(609,008
)
Total assets
$
3,118,055
$
3,171,907
Total debt
$
702,788
$
787,425
Total stockholders’ equity
$
435,068
$
337,165
_______________
(1) We have, and in the future may continue to have, negative working capital balances (as is common for many restaurant companies). We operate successfully with negative working capital because cash collected on restaurant sales is typically received before payment is due on our current liabilities, and our inventory turnover rates require relatively low investment in inventories. Additionally, ongoing cash flows from restaurant operations and gift card sales are typically used to service debt obligations and to make capital expenditures.
TABLE FOUR
BLOOMIN’ BRANDS, INC.
RESTAURANT-LEVEL OPERATING INCOME AND MARGIN NON-GAAP RECONCILIATIONS
(UNAUDITED)
Consolidated
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JUNE 28, 2026
JUNE 29, 2025
JUNE 28, 2026
JUNE 29, 2025
Income from operations
$
38,263
$
29,650
$
97,366
$
86,881
Operating income margin
3.8
%
3.0
%
4.7
%
4.2
%
Less:
Franchise and other revenues
17,852
17,595
35,699
37,672
Plus:
Depreciation and amortization
46,010
44,598
92,306
88,545
General and administrative
53,664
59,527
105,970
120,904
Provision for impaired assets and restaurant closings
3,972
1,540
9,504
1,890
Restaurant-level operating income (1)
$
124,057
$
117,720
$
269,447
$
260,548
Restaurant-level operating margin
12.4
%
12.0
%
13.2
%
12.9
%
_______________
(1) The following categories of revenue and operating expenses are not included in restaurant-level operating income and the corresponding margin because we do not consider them reflective of operating performance at the restaurant-level within a period:
(a) Franchise and other revenues, which are earned primarily from franchise royalties and other non-food and beverage revenue streams, such as rental and sublease income. (b) Depreciation and amortization, which, although substantially all of which is related to restaurant-level assets, represent historical sunk costs rather than cash outlays for the restaurants. (c) General and administrative expense, which includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate office. (d) Asset impairment charges and restaurant closing costs. TABLE FIVE
BLOOMIN’ BRANDS, INC.
ADJUSTED INCOME FROM OPERATIONS AND MARGIN NON-GAAP RECONCILIATIONS
(UNAUDITED)
(dollars in thousands)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
Consolidated
JUNE 28, 2026
JUNE 29, 2025
JUNE 28, 2026
JUNE 29, 2025
Income from operations
$
38,263
$
29,650
$
97,366
$
86,881
Operating income margin
3.8
%
3.0
%
4.7
%
4.2
%
Adjustments:
Severance and other transformational costs (1)
2,865
3,542
6,246
9,600
Foreign currency forward contract costs (2)
—
2,233
—
4,561
Asset impairments and closure-related charges (3)
—
—
—
(1,929
)
Total income from operations adjustments
2,865
5,775
6,246
12,232
Adjusted income from operations
$
41,128
$
35,425
$
103,612
$
99,113
Adjusted operating income margin
4.0
%
3.5
%
5.0
%
4.8
%
U.S. Segment
Income from operations
$
67,599
$
68,461
$
155,615
$
156,131
Operating income margin
6.8
%
6.9
%
7.6
%
7.7
%
Adjustments:
Severance and other transformational costs (1)
2,865
—
6,246
—
Asset impairments and closure-related charges (3)
—
—
—
(1,710
)
Total income from operations adjustments
2,865
—
6,246
(1,710
)
Adjusted income from operations
$
70,464
$
68,461
$
161,861
$
154,421
Adjusted operating income margin
7.1
%
6.9
%
7.9
%
7.7
%
International Franchise Segment
Income from operations
$
7,409
$
6,838
$
14,745
$
15,842
_______________
(1) Costs for the thirteen and twenty-six weeks ended June 28, 2026 relate to accelerated depreciation associated with equipment upgrades in connection with the turnaround strategy. Costs for the thirteen and twenty-six weeks ended June 29, 2025 include severance, professional fees and other costs incurred as a result of transformational and restructuring activities.
(2) Represents costs in connection with the foreign currency forward contracts that mostly offset foreign currency exchange risk associated with installment payments from the Brazil Sale Transaction.
(3) Primarily includes gains from certain lease terminations.
TABLE SIX
BLOOMIN’ BRANDS, INC.
ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE NON-GAAP RECONCILIATIONS
(UNAUDITED)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(in thousands, except per share data)
JUNE 28, 2026
JUNE 29, 2025
JUNE 28, 2026
JUNE 29, 2025
Net income from continuing operations
$
32,930
$
25,893
$
89,734
$
69,743
Less: net income attributable to noncontrolling interests
1,236
1,253
2,818
2,697
Net income attributable to Bloomin’ Brands from continuing operations
31,694
24,640
86,916
67,046
Adjustments:
Income from operations adjustments (1)
2,865
5,775
6,246
12,232
Total adjustments, before income taxes
2,865
5,775
6,246
12,232
Tax effect of adjustments (2)
(504
)
(3,125
)
(1,750
)
(1,995
)
Net adjustments, continuing operations
2,361
2,650
4,496
10,237
Adjusted net income, continuing operations
$
34,055
$
27,290
$
91,412
$
77,283
Diluted earnings per share - continuing operations
$
0.37
$
0.29
$
1.01
$
0.79
Adjusted diluted earnings per share - continuing operations
$
0.39
$
0.32
$
1.06
$
0.91
Diluted weighted average common shares outstanding
86,223
85,140
85,987
85,135
_______________
(1) See Table Five Adjusted Income from Operations and Margin Non-GAAP Reconciliations above for details regarding income from operations adjustments.
(2) The tax effect of non-GAAP adjustments is determined by recomputing the Benefit for income taxes on an adjusted basis. The difference between the recomputed Benefit for income taxes and the GAAP Benefit for income taxes represents the tax effect of non-GAAP adjustments. The thirteen and twenty-six weeks ended June 29, 2025 also include an adjustment to Benefit for income taxes related to foreign currency gains on the Brazil Sale Transaction installment receivable.
Following is a summary of the financial statement line item classification of the net income adjustments from continuing operations:
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
(dollars in thousands)
JUNE 28, 2026
JUNE 29, 2025
JUNE 28, 2026
JUNE 29, 2025
Depreciation and amortization
$
2,865
$
—
$
6,246
$
—
General and administrative
—
5,775
—
14,243
Provision for impaired assets and restaurant closings
—
—
—
(2,011
)
Provision for income taxes
(504
)
(3,125
)
(1,750
)
(1,995
)
Net adjustments
$
2,361
$
2,650
$
4,496
$
10,237
TABLE SEVEN
BLOOMIN’ BRANDS, INC.
COMPARATIVE RESTAURANT INFORMATION
(UNAUDITED)
Number of restaurants:
MARCH 29, 2026
OPENINGS
CLOSURES
JUNE 28, 2026
U.S.
Outback Steakhouse
Company-owned
546
1
(3
)
544
Franchised
116
—
(1
)
115
Total
662
1
(4
)
659
Carrabba’s Italian Grill
Company-owned
186
—
—
186
Franchised
17
—
—
17
Total
203
—
—
203
Bonefish Grill
Company-owned
155
—
—
155
Franchised
2
—
—
2
Total
157
—
—
157
Fleming’s Prime Steakhouse & Wine Bar
Company-owned
65
—
(1
)
64
Other
Franchised
1
—
—
1
U.S. total
1,088
1
(5
)
1,084
International Franchise
Outback Steakhouse - Brazil
188
4
—
192
Outback Steakhouse - South Korea
101
—
(1
)
100
Other
65
—
(3
)
62
International Franchise total
354
4
(4
)
354
International - Company-owned
Outback Steakhouse - Hong Kong
10
—
—
10
System-wide total
1,452
5
(9
)
1,448
System-wide total - Company-owned
962
1
(4
)
959
System-wide total - Franchised
490
4
(5
)
489
TABLE EIGHT
BLOOMIN’ BRANDS, INC.
COMPARABLE RESTAURANT SALES, TRAFFIC AND AVERAGE CHECK PER PERSON INFORMATION
(UNAUDITED)
THIRTEEN WEEKS ENDED
TWENTY-SIX WEEKS ENDED
JUNE 28, 2026
JUNE 29, 2025
JUNE 28, 2026
JUNE 29, 2025
Year over year percentage change:
Comparable restaurant sales (restaurants open 18 months or more):
U.S. (1)
Outback Steakhouse
1.4
%
(0.6
)%
0.5
%
(0.9
)%
Carrabba’s Italian Grill
1.7
%
3.9
%
1.5
%
2.6
%
Bonefish Grill
8.1
%
(5.8
)%
7.0
%
(4.9
)%
Fleming’s Prime Steakhouse & Wine Bar
1.6
%
3.8
%
1.1
%
4.5
%
Combined U.S.
2.3
%
(0.1
)%
1.6
%
(0.3
)%
Traffic:
U.S.
Outback Steakhouse
(2.8
)%
(1.0
)%
(2.6
)%
(2.6
)%
Carrabba’s Italian Grill
(2.5
)%
0.7
%
(2.6
)%
0.2
%
Bonefish Grill
4.5
%
(11.4
)%
3.7
%
(10.4
)%
Fleming’s Prime Steakhouse & Wine Bar
(2.8
)%
(0.6
)%
(2.9
)%
(0.5
)%
Combined U.S.
(1.9
)%
(2.0
)%
(1.8
)%
(3.0
)%
Average check per person (2):
U.S.
Outback Steakhouse
4.2
%
0.4
%
3.1
%
1.7
%
Carrabba’s Italian Grill
4.2
%
3.2
%
4.1
%
2.4
%
Bonefish Grill
3.6
%
5.6
%
3.3
%
5.5
%
Fleming’s Prime Steakhouse & Wine Bar
4.4
%
4.4
%
4.0
%
5.0
%
Combined U.S.
4.2
%
1.9
%
3.4
%
2.7
%
_______________
(1) Relocated restaurants closed more than 60 days are excluded from comparable restaurant sales until at least 18 months after reopening.
(2) Includes the impact of menu pricing changes, product mix and discounts.
Raising Full Year Outlook and Innovation Target, Improving Year-End Net Leverage Ratio Target
Second Quarter 2026 Financial Results: Revenue of $1,368 million, an increase of 10% year-over-year; 8% organic constant currency growth Reported Net Income of $54 million, Adjusted Net Income of $174 million Adjusted EBITDA of $288 million; Adjusted EBITDA Margin of 21.2% Reported EPS of $0.11, Adjusted EPS of $0.34 Net leverage ratio of 3.1x Adjusted EBITDA Full Year 2026 Guidance: Raising innovation revenue target to $1.25 billion Raising revenue guidance to $5.09 billion to $5.14 billion, or 6% to 7% organic constant currency growth Raising Adjusted EBITDA to $1.01 billion to $1.035 billion, a year-over-year increase of 13% at midpoint Raising Adjusted EPS to $1.10 to $1.16, a year-over-year increase of 20% at midpoint Improving year-end net leverage ratio target to approximately 3.0x Adjusted EBITDA , /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the second quarter of 2026, provided guidance for the third quarter of 2026, and updated guidance for the full year 2026.
"Elanco's second quarter results demonstrate our momentum and leadership in the attractive animal health industry," stated Jeff Simmons, President and CEO of Elanco. "Organic constant currency revenue growth of 8% was led by U.S. Pet Health and U.S. Farm Animal each up 11%. We saw strong contributions from both price and volume, as consumer demand for our basket of innovation drove market share gains and stabilized our base business. Zenrelia — our newest blockbuster — was the single largest contributor to global Elanco growth, closely followed by Credelio Quattro. As we are raising our top- and bottom-line full-year outlook, including faster than planned margin expansion and net debt deleverage, our consistent delivery demonstrates our Innovation Portfolio Productivity (IPP) strategy is working. We also continue to expect a sustainable mid-single digit CAGR in animal health through the global drivers that matter most in pets and protein. Elanco is well positioned through our differentiated innovation, our comprehensive portfolio, our diverse go-to-market model, and our commercial execution, creating durable value for our customers, our shareholders, and the industry."
Select Business Highlights Since the Last Earnings Call
Zenrelia™ achieved blockbuster status July YTD; efficacy driving use in approximately 18,000 U.S. clinics; U.S. JAK market share up 9 points year-over-year with gains versus Q1**; up to 40%+ JAK market share in key European markets, outperforming the competitive entrant*** Credelio Quattro™ accelerated dollar share gains of broad-spectrum sales out U.S. vet clinics in Q2, up 4 points versus Q1**; penetrated over 50% of the U.S. clinic base, up approximately 3,000 clinics representing 10 points versus Q1; launched in Australia, Canada, and Japan to date Befrena™ shipped to nearly 1,400 U.S. clinics to date; ramping capacity to meet high customer demand 2x above expectations, with weekly increases in supply Global ruminants was Elanco's fastest growing species, up 12% in the quarter on an organic constant currency basis or 17% including AHV International and FX, as innovation fortified the company's beef and dairy portfolio The company released its 2025 Impact Report, celebrating Elanco's leadership with purpose, and culture of 'Going Beyond' for animals, customers, society, and its people **Per Kynetec data
***Internal estimates based on multiple data sources
Financial Results
Second Quarter Results
(dollars in millions, except per share amounts)
2026
2025
Change (%)
Organic CC
Growth (1) (%)
Pet Health
$718
$643
12 %
11 %
Farm Animal
$633
$583
9 %
5 %
Cattle
$313
$268
17 %
12 %
Poultry
$223
$215
4 %
2 %
Swine
$97
$100
(3) %
(4) %
Contract Manufacturing and Other (2)
$17
$15
13 %
Total Revenue
$1,368
$1,241
10 %
8 %
Gross Profit
$798
$713
12 %
Reported Net Income
$54
$11
391 %
Adjusted EBITDA
$288
$238
21 %
Reported EPS
$0.11
$0.02
450 %
Adjusted EPS
$0.34
$0.26
31 %
(1)
Organic CC Growth represents revenue growth excluding royalty revenue that was sold to a third party, the impact of foreign exchange rates, and revenue attributable to AHV International B.V., which was acquired on April 30, 2026.
(2)
Primarily represents revenue from arrangements in which we manufacture products on behalf of a third party and royalty revenue. Royalty revenue sold to a third party, to which we are no longer entitled but is still required to be recognized as revenue under GAAP, totaled $9 million and $4 million for the three months ended June 30, 2026 and 2025, respectively.
In the second quarter of 2026, revenue was $1,368 million, an increase of 10% on a reported basis, or 8% on an organic constant currency basis, compared to the second quarter of 2025.
Pet Health revenue was $718 million, an increase of 12% on a reported basis, or 11% on an organic constant currency basis. The year-over-year volume increase of 9% in the second quarter was primarily driven by strong demand for Zenrelia and Credelio Quattro. The 2% increase from price was in line with the company's expectation. The Advantage® Family of products and Seresto® contributed revenue of $154 million and $117 million, respectively.
Farm Animal revenue was $633 million, an increase of 9% on a reported basis, or 5% on an organic constant currency basis. Second quarter volumes were up 3%, primarily driven by strong demand across our global ruminant portfolio. Farm animal organic constant currency revenue growth included a 2% increase from price, compared to the second quarter of 2025.
Gross profit was $798 million and gross margin percentage was 58.3% in the second quarter of 2026, an increase of 80 basis points compared to the second quarter of 2025. On an adjusted basis, gross profit was $789 million and gross margin percentage was 58.1% in the second quarter of 2026, an increase of 80 basis points compared to the second quarter of 2025. The increase in gross margin percentage on both a reported and adjusted basis, which was ahead of the company's expectations, was primarily driven by favorable mix from the strong performance in U.S. Pet Health as well as increased pricing, partially offset by the flow through of higher inventory costs due to inflation.
Total operating expenses were $541 million for the second quarter of 2026, an increase of 10% compared to the second quarter of 2025. Marketing, selling and administrative expenses increased 12% to $449 million, driven by strategic investments in the global launches of new products and higher compensation expense. Research and development expenses remained flat at $92 million.
Asset impairment, restructuring and other special charges were $9 million in the second quarter of 2026, compared to $1 million in the second quarter of 2025. Charges recorded in the second quarter of 2026 primarily related to the company's 2025 restructuring plan ($3 million) as well as costs associated with our acquisition of AHV ($2 million).
Reported net interest expense was $59 million in the second quarter of 2026, an increase of $11 million compared to the second quarter of 2025. The increase was principally due to imputed interest on our liability for sale of future revenue of $15 million, as well as interest expense related to the company's corporate headquarters finance lease, partially offset by lower average debt balances. Adjusted net interest expense, which excludes this imputed interest, was $44 million in the second quarter of 2026, an increase of $6 million compared to the second quarter of 2025.
The reported effective tax rate was 3.3% in the second quarter of 2026 compared to 55.4% in the second quarter of 2025. This decrease was primarily due to a more favorable jurisdictional mix of earnings and the absence of prior-year discrete tax changes. These factors were partially offset by the impact of current quarter international tax rate changes. The adjusted effective tax rate was 17.8% in the second quarter of 2026 compared to 21.7% in the second quarter of 2025.
Net income for the second quarter of 2026 was $54 million, or $0.11 per diluted share on a reported basis, compared with net income of $11 million, or $0.02 per diluted share, for the same period in 2025. On an adjusted basis, net income for the second quarter of 2026 was $174 million, or $0.34 per diluted share, a 31% increase compared with the same period in 2025.
Adjusted EBITDA was $288 million in the second quarter of 2026, a 21% increase compared to the second quarter of 2025. Adjusted EBITDA margin was 21.2% compared with 19.2% for the second quarter of 2025.
Working Capital and Balance Sheet
Cash provided by operations was $277 million in the second quarter of 2026, compared to cash provided by operations of $237 million in the second quarter of 2025.
As of June 30, 2026, Elanco's net leverage ratio was 3.1x adjusted EBITDA, a decrease of 0.5x compared to December 31, 2025.
Financial Guidance
Elanco is updating financial guidance for the full year 2026, summarized in the following table.
2026 Full Year
(dollars in millions, except per share amounts)
May
Guidance
August
Guidance
Revenue (1)
$5,010
to
$5,085
$5,090
to
$5,140
Adjusted EBITDA
$975
to
$1,005
$1,010
to
$1,035
Adjusted Earnings per Share
$1.03
to
$1.09
$1.10
to
$1.16
(1)
Revenue guidance excludes royalty revenue that was sold to a third party.
"Our strong second quarter performance allows us to both raise our full-year outlook and continue to invest in our innovation products, driving market share gains while expanding the total animal health industry," said Bob VanHimbergen, Executive Vice President and CFO of Elanco Animal Health. "Our faster than expected margin expansion includes good early progress on our Elanco Ascend productivity initiatives, on track to $200 million to $250 million in adjusted EBITDA net savings by 2030. With a net leverage ratio of 3.1x at quarter-end, also faster than expected, we are closing in on our target of reaching below 3x next year, a key milestone that will unlock greater capital allocation flexibility."
The company anticipates a tailwind to revenue of approximately $60 million from the favorable impact of foreign exchange rates compared to prior year. Excluding the impacts of foreign exchange rates, the AHV International acquisition that closed in April 2026, and royalty revenue sold to a third party, the company now expects revenue growth of 6% to 7% versus 5% to 7% previously. The company continues to expect an accelerating contribution from price versus 2025.
Elanco expects adjusted gross margin of 55.2% to 55.6%, an increase of 50 basis points versus 2025 and compared to the prior expectation of 40 basis points of improvement. Adjusted EBITDA guidance reflects savings from the Elanco Ascend initiative as well as incremental strategic investments in the global launches of the company's innovation portfolio and the advancement of the R&D pipeline.
Additionally, the company is providing guidance for the third quarter of 2026, as summarized in the following table:
2026 Third Quarter
(dollars in millions, except per share amounts)
Guidance
Revenue (1)
$1,195
to
$1,220
Adjusted EBITDA
$200
to
$215
Adjusted Earnings per Share
$0.19
to
$0.22
(1)
Revenue guidance excludes royalty revenue that was sold to a third party.
In the third quarter, the company anticipates a neutral impact from foreign exchange rates compared to prior year. Excluding the impacts of foreign exchange rates, the AHV International acquisition that closed in April 2026, and royalty revenue sold to a third party, the company expects 5% to 7% revenue growth. The company expects operating expenses up approximately 10% year-over-year in constant currency with incremental support for innovation products.
The 2026 full year and third quarter financial guidance reflects foreign exchange rates as of the end of July. Further details on guidance, including GAAP reported to non-GAAP adjusted reconciliations, are included in the financial tables of this press release and will be discussed on the company's conference call this morning.
WEBCAST & CONFERENCE CALL DETAILS
Elanco will host a webcast and conference call at 8:00 a.m. Eastern Time today, during which company executives will review second quarter financial and operational results, discuss third quarter and full year 2026 financial guidance, and respond to questions from analysts. Investors, analysts, members of the media and the public may access the live webcast and accompanying slides by visiting the Elanco website at https://investor.elanco.com and selecting Events and Presentations. A replay of the webcast will be archived and made available a few hours after the event on the company's website, at https://investor.elanco.com/events-and-presentations/default.aspx#module-event-upcoming.
ABOUT ELANCO
Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With more than 70 years of animal health heritage, we are committed to breaking boundaries and going beyond to help our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our purpose – to Go Beyond for Animals, Customers, Society and Our People. Learn more at www.elanco.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning product launches and revenue from such products, our 2026 full year and third quarter guidance and long-term expectations, our expectations regarding debt levels, and expectations regarding our industry and our operations, performance and financial condition, and including, in particular, statements relating to our business, growth strategies, distribution strategies, product development efforts and future expenses.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important risk factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including but not limited to the following:
operating in a highly competitive industry; the success of our research and development (R&D), regulatory approval and licensing efforts; the impact of disruptive innovations and advances in veterinary medical practices, animal health technologies and alternatives to animal-derived protein; competition from generic products that may be viewed as more cost-effective; changes in regulatory restrictions on the use of antibiotics in farm animals; an outbreak of infectious disease carried by farm animals; risks related to the evaluation of animals; consolidation of our customers and distributors; an increased use of alternative distribution channels or changes within existing distribution channels; our dependence on the success of our top products; our ability to complete acquisitions and divestitures and to successfully integrate the businesses we acquire; our ability to implement our business strategies or achieve targeted cost efficiencies and gross margin improvements; manufacturing problems and capacity imbalances, including at our contract manufacturers; fluctuations in inventory levels in our distribution channels; risks related to the use of artificial intelligence in our business; our dependence on sophisticated information technology systems and infrastructure, including the use of third-party, cloud-based technologies, and the impact of outages or breaches of the information technology systems and infrastructure we rely on; the impact of weather conditions, including those related to climate change, and the availability of natural resources; demand, supply and operational challenges associated with the effects of a human disease outbreak, epidemic, pandemic or other widespread public health concern; the loss of key personnel or highly skilled employees; adverse effects of labor disputes, strikes and/or work stoppages; the effect of our substantial indebtedness on our business, including restrictions in our debt agreements that limit our operating flexibility and changes in our credit ratings that lead to higher borrowing expenses and restrict access to credit; changes in interest rates that adversely affect our earnings and cash flows; risks related to the write-down of goodwill or identifiable intangible assets; the lack of availability or significant increases in the cost of raw materials; risks related to foreign and domestic economic, political, legal and business environments; risks related to foreign currency exchange rate fluctuations; risks related to underfunded pension plan liabilities; our current plan not to pay dividends and restrictions on our ability to pay dividends; the potential impact that actions by activist shareholders could have on the pursuit of our business strategies; risks related to tax expense or exposures; actions by regulatory bodies, including as a result of their interpretation of studies on product safety; the possible slowing or cessation of acceptance and/or adoption of our farm animal sustainability initiatives; the impact of increased regulation or decreased governmental financial support related to the raising, processing or consumption of farm animals; risks related to tariffs, trade protection measures or other modifications of foreign trade policy; the impact of litigation, regulatory investigations and other legal matters, including the risk to our reputation and the risk that our insurance policies may be insufficient to protect us from the impact of such matters; challenges to our intellectual property rights or our alleged violation of rights of others; misuse, off-label or counterfeiting use of our products; unanticipated safety, quality or efficacy concerns and the impact of identified concerns associated with our products; insufficient insurance coverage against hazards and claims; compliance with privacy laws and security of information; risks related to environmental, health and safety laws and regulations; and inability to achieve our aspirations or meet the expectations of stakeholders with respect to environmental, social and governance matters. For additional information about the factors that could cause actual results to differ materially from forward-looking statements, please see the company's latest Form 10-K and Form 10-Qs filed with the Securities and Exchange Commission. Although we have attempted to identify important risk factors, there may be other risk factors not presently known to us or that we presently believe are not material that could cause actual results and developments to differ materially from those made in or suggested by the forward-looking statements contained in this press release. If any of these risks materialize, or if any of the above assumptions underlying forward-looking statements prove incorrect, actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this press release. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Any forward-looking statement made by us in this press release speaks only as of the date thereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should be viewed as historical data.
Use of Non-GAAP Financial Measures:
We use non-GAAP financial measures, such as revenue growth excluding the impact of acquisitions and divestitures, foreign exchange rate effects, royalty revenue sold to third party, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted EPS, adjusted gross profit, adjusted gross margin, net debt and net debt leverage to assess and analyze our operational results and trends as explained in more detail in the reconciliation tables later in this release.
We believe these non-GAAP financial measures are useful to investors because they provide greater transparency regarding our operating performance. Reconciliation of non-GAAP financial measures and reported U.S. generally accepted accounting principles (GAAP) financial measures are included in the tables accompanying this press release and are posted on our website at www.elanco.com. The primary material limitations associated with the use of such non-GAAP measures as compared to GAAP results include the following: (i) they may not be comparable to similarly titled measures used by other companies, including those in our industry, (ii) they exclude financial information and events, such as the effects of an acquisition or divestiture or amortization of intangible assets, that some may consider important in evaluating our performance, value or prospects for the future, (iii) they exclude items or types of items that may continue to occur from period to period in the future and (iv) they may not exclude all unusual or non-recurring items, which could increase or decrease these measures, which investors may consider to be unrelated to our long-term operations. These non-GAAP measures are not, and should not, be viewed as substitutes for GAAP reported measures. We encourage investors to review our unaudited consolidated financial statements in their entirety and caution investors to use GAAP measures as the primary means of evaluating our performance, value and prospects for the future, and non-GAAP measures as supplemental measures.
Availability of Certain Information
We use our website to disclose important company information to investors, customers, employees and others interested in Elanco. We encourage investors to consult our website regularly for important information about Elanco, including an Investor Overview presentation containing a general overview of the business, which can be found in the Events and Presentations page of our website.
Additional Information
We define innovation revenue as revenue from new products, lifecycle management and certain geographic expansions and business development transactions that is incremental in reference to product revenue in 2020 and does not include the expected impact of cannibalization on the base portfolio.
We define organic constant currency revenue growth as revenue growth excluding royalty revenue that was sold to a third party, the impact of foreign exchange rates, and revenue attributable to AHV International B.V., which was acquired on April 30, 2026.
Elanco Animal Health Incorporated
Unaudited Condensed Consolidated Statements of Operations
(Dollars and shares in millions, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$ 1,368
$ 1,241
$ 2,739
$ 2,434
Cost of sales
570
528
1,156
1,037
Gross profit
798
713
1,583
1,397
Research and development
92
92
189
186
Marketing, selling and administrative
449
400
830
741
Amortization of intangible assets
139
136
277
264
Asset impairment, restructuring and other special charges
9
1
25
10
Interest expense, net of capitalized interest
59
48
116
88
Other (income) expense, net
(6)
11
3
23
Income before income taxes
56
25
143
85
Income tax expense
2
14
32
7
Net income
$ 54
$ 11
$ 111
$ 78
Earnings per share:
Basic
$ 0.11
$ 0.02
$ 0.22
$ 0.16
Diluted
$ 0.11
$ 0.02
$ 0.22
$ 0.16
Weighted-average shares outstanding:
Basic
499.5
496.6
498.6
495.9
Diluted
505.9
500.1
505.9
499.6
Elanco Animal Health Incorporated
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information
(Unaudited)
(Dollars and shares in millions, except per share data)
We use non-GAAP financial measures, such as organic constant currency revenue growth, adjusted gross profit, adjusted gross margin percentage, adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA and adjusted EBITDA margin and net debt and net debt leverage, that differ from financial measures reported in conformity with GAAP. The company believes these non-GAAP measures provide useful information to investors. Among other things, they may help investors assess and analyze our operational results and trends of our ongoing operations. Management also uses these non-GAAP measures internally to evaluate the performance of the business and in making resource allocation decisions. Investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliation of non-GAAP financial measures and reported GAAP financial measures are included in the tables below.
Adjusted Gross Profit and Gross Margin Percentage
We define gross profit as total revenue less cost of sales. We define adjusted gross profit as gross profit less royalty revenue sold to a third party, less cost of sales adjustments. We define adjusted gross margin percentage as adjusted gross profit divided by total revenue, less royalty revenue sold to a third party. The following is a reconciliation of GAAP reported gross profit for the three and six months ended June 30, 2026 and 2025, to adjusted gross profit and adjusted gross margin percentage:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
GAAP reported gross profit
$ 798
$ 713
$ 1,583
$ 1,397
Sold royalty revenue
(9)
(4)
(18)
(4)
Cost of sales adjustments
—
—
—
1
Adjusted gross profit
$ 789
$ 709
$ 1,565
$ 1,394
Adjusted gross margin percentage
58.1 %
57.3 %
57.5 %
57.4 %
Adjusted Net Income and Earnings Per Share
We define adjusted net income as net income excluding amortization of intangible assets, purchase accounting adjustments to inventory, acquisition and divestiture-related charges, including integration and separation costs, severance, goodwill and other asset impairments, gains on sales of assets and related costs, facility exit costs, the impacts from sales of future revenues, gains and losses on mark-to-market adjustments on equity securities, tax valuation allowances, certain litigation-related settlements that we consider to be unusual or infrequent and significant, and other specified significant items, such as unusual or non-recurring items that are unrelated to our long-term operations adjusted for income tax expense associated with the excluded financial items. We define adjusted earnings per share as adjusted net income divided by the number of weighted-average diluted shares outstanding for the applicable period. The following is a reconciliation of GAAP reported net income and EPS for the three months ended June 30, 2026 and 2025, to adjusted net income and EPS:
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
Net income (a)
EPS
Net income (a)
EPS
GAAP reported net income and EPS
$ 54
$ 0.11
$ 11
$ 0.02
Amortization of intangible assets
139
0.27
136
0.27
Asset impairment, restructuring and other special charges (1)
9
0.02
1
0.00
Sold royalty revenue
(9)
(0.02)
(4)
(0.01)
Interest expense, net of capitalized interest (2)
15
0.03
10
0.02
Other (income) expense, net
2
0.00
(1)
0.00
Income tax expense (3)
(36)
(0.07)
(22)
(0.04)
Adjusted net income and EPS
$ 174
$ 0.34
$ 131
$ 0.26
(a)
Adjustments to GAAP reported net income to arrive at adjusted net income for the three months ended June 30, 2026 and 2025, included the following:
(1)
Adjustments of $9 million for the three months ended June 30, 2026, primarily related to our 2025 restructuring plan ($3 million) as well as costs associated with our acquisition of AHV ($2 million).
(2)
Adjustments of $15 million and $10 million for the three months ended June 30, 2026 and 2025, respectively, related to imputed interest expense on our liability for sale of future revenue.
(3)
Adjustments of $36 million for the three months ended June 30, 2026, primarily represented the income tax expense associated with the adjusted items discussed above. Adjustments of $22 million for the three months ended June 30, 2025, primarily represented the income tax expense associated with the adjusted items discussed above and the discrete tax impact from the remeasurement of certain deferred tax positions due to a foreign tax rate change.
The following is a reconciliation of GAAP reported net income and EPS for the six months ended June 30, 2026 and 2025, to adjusted net income and EPS:
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
Net income (a)
EPS
Net income (a)
EPS
GAAP reported net income and EPS
$ 111
$ 0.22
$ 78
$ 0.16
Cost of sales
—
—
1
0.00
Amortization of intangible assets
277
0.55
264
0.53
Asset impairment, restructuring and other special charges (1)
25
0.05
10
0.02
Sold royalty revenue
(18)
(0.04)
(4)
(0.01)
Interest expense, net of capitalized interest (2)
29
0.06
10
0.02
Other expense, net (3)
15
0.03
4
0.01
Income tax expense (4)
(61)
(0.12)
(48)
(0.10)
Adjusted net income and EPS
$ 378
$ 0.75
$ 315
$ 0.63
(a)
Adjustments to GAAP reported net income to arrive at adjusted net income for the six months ended June 30, 2026 and 2025, included the following:
(1)
Adjustments of $25 million for the six months ended June 30, 2026, primarily related to $18 million of restructuring charges ($15 million of which was non-cash shut-down costs for the animal studies portion of our R&D facilities in Monheim, Germany) associated with our 2025 Restructuring Plan, as well as costs associated with our acquisition of AHV ($2 million). Adjustments of $10 million for the six months ended June 30, 2025, primarily included $7 million of upfront payments made in relation to new licensing arrangements.
(2)
Adjustments of $29 million and $10 million for the six months ended June 30, 2026 and 2025, respectively, related to imputed interest expense on our liability for sale of future revenue.
(3)
Adjustments of $15 million for the six months ended June 30, 2026, primarily related to currency translation losses reclassified from accumulated other comprehensive loss in conjunction with the substantial liquidation of a dormant legal entity, a litigation settlement, and mark-to-market adjustments on equity investments.
(4)
Adjustments of $61 million for the six months ended June 30, 2026, primarily represented the income tax expense associated with the adjusted items discussed above. Adjustments of $48 million for the six months ended June 30, 2025, primarily represented the income tax expense associated with the adjusted items discussed above and the discrete tax impact from the remeasurement of certain deferred tax positions due to a foreign tax rate change, partially offset by a $35 million benefit related to a discrete tax item recognized during the first quarter of 2025.
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as net income (loss) adjusted for interest expense (income), which includes debt financing charges and imputed interest on our liability for sale of future revenue, income tax expense (benefit) and depreciation and amortization, further adjusted to exclude purchase accounting adjustments to inventory, acquisition and divestiture-related charges, including integration and separation costs, severance, goodwill and other asset impairments, gains on sales of assets and related costs, facility exit costs, revenue sold to a third party, gains and losses on mark-to-market adjustments on equity securities, certain litigation-related settlements which we consider to be unusual or infrequent and significant, and other specified significant items, such as unusual or non-recurring items that are unrelated to our long-term operations.
For the periods presented, we have not made adjustments for all items that may be considered unrelated to our long-term operations. We believe adjusted EBITDA, when used in conjunction with our results presented in accordance with GAAP and its reconciliation to net income (loss), enhances investors' understanding of our performance, valuation and prospects for the future. We also believe adjusted EBITDA is a measure used in the animal health industry by analysts as a valuable performance metric for investors. The following is a reconciliation of GAAP reported net income for the three and six months ended June 30, 2026 and 2025, to EBITDA, adjusted EBITDA and adjusted EBITDA margin, which we define as adjusted EBITDA divided by total revenue, less royalty revenue sold to a third party, for the respective periods:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
GAAP reported net income
$ 54
$ 11
$ 111
$ 78
Net interest expense
59
48
116
88
Income tax expense
2
14
32
7
Depreciation and amortization
171
169
341
330
EBITDA
$ 286
$ 242
$ 600
$ 503
Non-GAAP adjustments:
Cost of sales
$ —
$ —
$ —
$ 1
Asset impairment, restructuring and other special charges
9
1
25
10
Sold royalty revenue
(9)
(4)
(18)
(4)
Other (income) expense, net
2
(1)
15
4
Adjusted EBITDA
$ 288
$ 238
$ 622
$ 514
Adjusted EBITDA margin
21.2 %
19.2 %
22.9 %
21.2 %
Numbers may not add due to rounding.
Gross and Net Debt and Net Leverage Ratio
We define gross debt as the sum of the current portion of long-term debt and long-term debt excluding unamortized debt issuance costs. We define net debt as gross debt less cash and cash equivalents and finance lease liabilities on the balance sheet. We define our net leverage ratio as net debt divided by our trailing twelve month adjusted EBITDA. We believe our net debt and net leverage ratio are important measures to monitor our financial flexibility, liquidity and capital structure and may enhance investors' understanding of our ability to meet future financial obligations. In addition, a net leverage ratio is a financial measure that is frequently used by investors and creditors. The below calculations do not include covenant-related adjustments that reduce our net leverage ratio. The following is a reconciliation of gross debt to net debt as of June 30, 2026:
Long-term debt
$ 3,845
Current portion of long-term debt
73
Less: Unamortized debt issuance costs
(26)
Total gross debt
3,944
Less: Cash and cash equivalents
530
Less: Finance lease liabilities
255
Net debt
$ 3,159
The following table presents a calculation of our net leverage ratio as of June 30, 2026:
Net debt
$ 3,159
Trailing twelve month adjusted EBITDA
1,008
Net leverage ratio
3.1
Investor Contact: Tiffany Kanaga (765) 740-0314 or [email protected]
Media Contact: Colleen Parr Dekker (317) 989-7011 or [email protected]
Choice Hotels ve 2. čtvrtletí zvýšila upravené EBITDA o 6 % na 175 mil. USD a upravený zisk na akcii o 5 % na 2,02 USD. Zároveň zvýšila celoroční výhled upravených EBITDA.
U.S. Net Rooms Growth Improved for the Second Consecutive Quarter, Supporting 2.6% Global Net Rooms Growth
, /PRNewswire/ -- Choice Hotels International, Inc. ("Choice" or "the Company") (NYSE: CHH), a leading global lodging franchisor with an asset-light model, today reported results for the second quarter ended June 30, 2026.
Highlights include:
Net income was $64 million, or $1.41 per diluted share, for the second quarter.
Adjusted EBITDA totaled $175 million, and adjusted diluted EPS reached $2.02 for the second quarter.
U.S. room openings increased 27% in the second quarter compared to the same period of 2025, as the Company opened approximately 6,400 U.S. rooms—the highest second-quarter level since 2019, while exits declined to their lowest second-quarter level since 2020, supporting continued improvement in U.S. net rooms growth.
Global net rooms grew 2.6% compared to June 30, 2025, driven by 3.6% growth in the higher revenue extended stay, midscale, and upscale brands.
U.S. RevPAR increased 1.3% in the second quarter, compared to the same period of 2025, reflecting improvements in both occupancy and rate.
U.S. franchise agreements awarded increased 30% in the second quarter compared to the same period of 2025, representing approximately 9,400 new U.S. rooms for development.
The Company's U.S. conversion rooms pipeline grew 24% to 24,100 rooms, compared to June 30, 2025, and 6% sequentially from March 31, 2026.
The U.S. royalty rate expanded 11 basis points to 5.2% in the second quarter, compared to the same period of 2025.
The Company returned $139 million to shareholders through dividends and share repurchases year-to-date through June 30, 2026.
The Company raised several full-year 2026 guidance ranges. "Our second quarter results reflect encouraging progress across our key priorities, with U.S. net rooms growth improving for the second consecutive quarter to its strongest first-half performance since 2021 and U.S. RevPAR trends strengthening," said Dom Dragisich, Interim Chief Executive Officer. "Over the past several years, we've built a stronger commercial engine and technology platform, and we continue to invest in both. Our biggest opportunity now is sharpening execution—leveraging those capabilities to further enhance franchisee economics by increasing the number and quality of the guests we deliver while lowering operating costs. While we still have work to do, this business has significantly more potential, and I'm confident we can realize it. The progress we delivered this quarter reinforces that confidence."
Financial Performance
($ in millions, except per-share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Total revenues
$441
$426
$781
$759
Revenue excl. revenue for reimbursable costs from
franchised and managed properties1
$277
$259
$494
$469
Net income
$64
$82
$85
$126
Adjusted net income
$92
$90
$142
$153
Diluted EPS
$1.41
$1.75
$1.84
$2.68
Adjusted diluted EPS
$2.02
$1.92
$3.09
$3.25
Adjusted EBITDA
$175
$165
$301
$295
Net income was $64 million for the second quarter, a 21% decline compared to the same period of 2025. The year-over-year decrease primarily reflected a higher net reimbursable deficit from franchised and managed properties related to investments in franchisee-related tools and guest delivery capabilities, timing of SG&A expenses, and increased depreciation and amortization associated with owned hotels and the prior year acquisition of Choice Hotels Canada. These items were partially offset by higher franchise and management fees.2
Adjusted EBITDA increased 6%, and adjusted diluted EPS increased 5% compared to the same period of 2025.
Franchise and management fees increased 6% to $188 million for the second quarter, compared to the same period of 2025, reflecting higher international royalty fees, higher franchisee programs and services revenue, along with U.S. RevPAR and U.S. royalty rate improvement.
Partnership services and fees increased 6% to $29 million for the second quarter, compared to the same period of 2025, primarily reflecting growth in procurement services revenue. __________________________
1 Calculated as total revenues excluding reimbursable revenues. Reimbursable revenues totaled $163 million and $167 million for second quarter 2026 and 2025, respectively, and $287 million and $291 million year-to-date through June 30, 2026 and June 30, 2025, respectively.
2 Selling, general and administrative expenses for the three months ended June 30, 2026 included $0.2 million of expense related to the post-employment benefits announced on May 20, 2026. The Company expects to recognize approximately $2.7 million of total post-employment benefits through August 31, 2026.
RevPAR
(% change on a currency-neutral basis)
Change vs. Prior Year Period
Three months ended
June 30, 2026
U.S.
1.3 %
International
2.1 %
Global
1.7 %
U.S. RevPAR increased 1.3% in the second quarter, compared to the same period of 2025, driven by a 0.7% increase in rate and a 40-basis-point increase in occupancy, primarily reflecting strength in the East North Central, Middle Atlantic, and West South Central regions.
International RevPAR increased 2.1% on a currency-neutral basis in the second quarter, compared to the same period of 2025, led by the Caribbean and Latin America and further supported by continued strength in Canada and Asia Pacific. System Size and Development
(Rooms)
June 30,
2026
June 30,
2025
Change
U.S.
499,226
500,562
-0.3 %
U.S. upscale, extended stay, and midscale
442,676
439,744
0.7 %
International
161,863
143,838
12.5 %
Global
661,089
644,400
2.6 %
Global upscale, extended stay, and midscale
599,207
578,226
3.6 %
Global room openings increased 16% in the second quarter of 2026 compared to the same period of 2025, as the Company opened approximately 8,300 global rooms.
Extended stay remained a core growth engine, supported by strong unit economics and continued developer demand, with U.S. extended stay net rooms growing 13.0% compared to June 30, 2025, marking the 12th consecutive quarter of double-digit growth.
International net rooms grew 12.5% compared to June 30, 2025, led by double-digit growth in Asia Pacific and EMEA, with continued growth in Canada.
Global franchise agreements awarded increased 20% in the second quarter compared to the same period of 2025, representing 11,200 new global rooms for development and reflecting continued demand for conversion-led brands.
The Company's global pipeline totaled approximately 77,300 rooms as of June 30, 2026, with 96% concentrated in extended stay, midscale, and upscale brands. The pipeline included: 71,100 U.S. rooms and 6,200 international rooms. 29,900 extended stay rooms, representing 39% of the total pipeline. 26,400 conversion rooms and 50,900 new-construction rooms. Balance Sheet and Liquidity
As of June 30, 2026, Choice had total available liquidity of $475 million, comprised of cash and cash equivalents and available borrowing capacity. The Company's net debt-to-adjusted EBITDA ratio was 3.1x for the trailing twelve months ended June 30, 2026, within the Company's target range of 3.0x to 4.0x.
During the six months ended June 30, 2026, the Company generated $67 million in cash flows from operating activities, compared to $116 million in the prior-year period, primarily reflecting higher franchise agreement acquisition costs associated with a 27% increase in U.S. room openings and higher marketing and reservation system reimbursable expenses.
During the six months ended June 30, 2026, net capital outlays for hotel development and lending activities declined 80% to $15 million, from $76 million in the prior-year period.3
The Company expects to enter the next phase of its asset-light strategy by recycling capital from its owned hotel portfolio. As of August 5, 2026, the Company owned 19 operating hotels, with one additional hotel under construction. The Company expects the first asset sales to occur during the first half of 2027, subject to market conditions.
Shareholder Returns
During the six months ended June 30, 2026, the Company returned $26 million to shareholders through dividends and $113 million in share repurchases.4
As of June 30, 2026, 1.8 million shares of common stock remained available under the Company's current share repurchase authorization.
Outlook
The Company is updating certain aspects of its full-year 2026 outlook. The following outlook includes forward-looking non-GAAP measures used by management to assess expected performance. Adjusted metrics exclude the net surplus or deficit from reimbursable revenue from franchised and managed properties, due diligence and transition costs, and other items.
Full-Year 2026
Prior Outlook
Net income
$230 to $241 million
$265 to $275 million
Adjusted net income
$312 to $323 million
$320 to $330 million
Adjusted EBITDA
$635 to $650 million
$632 to $647 million
Adjusted SG&A
Mid-single digits
Mid-single digits
Diluted EPS
$5.07 to $5.31
$5.72 to $5.94
Adjusted diluted EPS
$6.86 to $7.10
$6.92 to $7.14
Effective tax rate
26 %
25 %
Full-Year 2026 vs. 2025
Full-Year 2026 vs. 2025
Global RevPAR growth
0% to 1%
-2% to 1%
U.S. RevPAR growth
0% to 1.25%
-2% to 1%
U.S. royalty rate growth
7 bps to 9 bps
Mid-single digits
Global net system rooms growth
Approximately 1.5%
Approximately 1%
The net income guidance range has been revised from the Company's prior outlook primarily to reflect higher expected marketing and reservation system reimbursable expenses, driven by increased investment in franchisee-facing tools and guest delivery capabilities, as well as higher interest expense and a higher effective tax rate.
The adjusted net income guidance range has been revised from the Company's prior outlook primarily to reflect higher expected interest expense and a higher effective tax rate.
Adjusted EBITDA guidance has been raised from the Company's prior outlook, primarily reflecting improvement in U.S. RevPAR, global net rooms growth, and U.S. royalty rate.
Net capital outlays for hotel development-related activities are expected to decline from $103.4 million in 2025 to a range of $20 million to $45 million in 2026.3
__________________________
3 Net capital outlays include investments in owned hotel properties, investments in affiliates, notes receivable issued, net of collections, proceeds from asset sales, and distributions from sales of affiliates.
4 Share repurchases include repurchases under the Company's stock repurchase program and repurchases from employees in connection with tax withholding and option exercises relating to awards under the Company's equity incentive plans.
Webcast and Conference Call
Choice will host a conference call to discuss second quarter 2026 results on August 5, 2026, at 10:00 a.m. ET. A live webcast will be available on the Company's Investor Relations website at www.investor.choicehotels.com/events-and-presentations. Participants may also dial (833) 461-5787 (U.S.) or (585) 542-9983 (international) and reference conference ID 558894687. A replay and transcript will be available within 24 hours on the Company's Investor Relations website.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with over 7,500 hotels, representing more than 650,000 rooms, in 49 countries and territories. A wide-ranging portfolio of 22 brands that includes full-service upper upscale, midscale, extended stay, and economy properties enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
Forward-Looking Statements
Information set forth herein includes "forward-looking statements." Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "expect," "estimate," "believe," "anticipate," "should," "will," "forecast," "plan," "project," "assume," or similar words of futurity. All statements other than historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of Choice's revenue, expenses, adjusted EBITDA, earnings, debt levels, ability to repay outstanding indebtedness, payment of dividends, net surplus or deficit, repurchases of common stock and other financial and operational measures, including occupancy, room openings and open hotels, RevPAR, royalty rate, strategic investment and acquisition performance, international expansion performance, macroeconomic backdrop and Choice's liquidity, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties, and other factors.
Several factors could cause our actual results, performance or achievements to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, U.S. and foreign economic conditions, including access to liquidity and capital; changes in consumer demand and confidence, including consumer discretionary spending and the demand for travel, transient and group business; the timing and amount of future dividends and share repurchases; future U.S. or global outbreaks of epidemics, pandemics or contagious diseases or fear of such outbreaks, and the related impact on the global hospitality industry, particularly but not exclusively the U.S. travel market; changes in law and regulation applicable to the travel, lodging or franchising industries, including with respect to the status of our relationship with employees of our franchisees; the potential impact of changes in laws and regulations generally, or the interpretation thereof, including, without limitation, those relating to taxes, wages, labor and immigration; foreign currency fluctuations; changes in global interest rates and rate differentials; variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; governmental action or inaction relating to the federal budget, including funding lapses and government shutdowns; impairments or declines in the value of our assets; our assumptions underlying our critical accounting estimates; operating risks common in the travel, lodging or franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology utilized for our marketing and reservation systems and other operating systems; our ability to grow our franchise system; exposure to risks related to our hotel development, financing, franchise agreement acquisition costs and ownership activities; exposures to risks associated with our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses relating to acquired businesses; the level of acceptance of alternative growth strategies we may implement; the impact of inflation; information technology, cyber security and data breach risks; introduction and integration of artificial intelligence technologies; climate change; our sustainability strategy; ownership and financing activities; hotel closures or financial difficulties of our franchisees; operating risks associated with our international operations; political instability, geopolitical conflicts and terrorism; labor shortages; the outcome of litigation; and our ability to effectively manage our indebtedness and secure our indebtedness.
These and other risk factors are discussed in detail in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measurements and Other Definitions
The company evaluates its operations utilizing the performance metrics of adjusted EBITDA, adjusted selling, general and administrative (SG&A) expenses, adjusted net income, and adjusted diluted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP measures in Exhibits 6 and 7, should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by GAAP, such as SG&A, net income and EPS. The company's calculation of these measurements may be different from the calculations used by other companies and comparability may therefore be limited. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. We further discuss management's reasons for reporting these non-GAAP measures and how each non-GAAP measure is calculated below.
In addition to the specific adjustments noted below with respect to each measure, the non-GAAP measures presented herein also exclude restructuring of the company's operations including employee severance benefit, income taxes and legal costs, acquisition related to business combination, due diligence and transition (recoveries) costs, and global ERP system implementation and related costs to allow for period-over-period comparison of ongoing core operations before the impact of these discrete and infrequent charges.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization: Adjusted EBITDA, presented herein, is calculated as net income excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, amortization of cloud computing arrangements, impairments and gains on sale of business, joint ventures and assets, other (gains) and losses, equity in net income (loss) of unconsolidated affiliates and (gain) loss on extinguishment of debt, further adjusted to exclude certain items, including, franchisee agreement acquisition cost amortization and charges, mark-to-market adjustments on non-qualified retirement plan investments, share based compensation expense (benefit) and surplus or deficits generated by reimbursable revenue from franchised and managed properties. We consider adjusted EBITDA to be an indicator of operating performance because it measures our ability to service debt, fund capital expenditures, and expand our business. We also use these measures, as do analysts, lenders, investors, and others, to evaluate companies because they exclude certain items that can vary widely across industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings, and share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of interest expense and share based compensation expense (benefit) on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. These measures also exclude depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets or amortizing franchise-agreement acquisition costs. These differences can result in considerable variability in the relative asset costs and estimated lives and, therefore, the depreciation and amortization expense among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are excluded from adjusted EBITDA, as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income. Surpluses and deficits generated from reimbursable revenues from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise and management agreements require these revenues to be used exclusively for expenses associated with providing franchise and management services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from these activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance.
Adjusted Net Income and Adjusted Diluted Earnings Per Share: Adjusted net income and adjusted diluted EPS exclude the impact of surpluses or deficits generated from reimbursable revenue from franchised and managed properties, impairments, formation costs and gains on sale of business, joint ventures and assets and gains on extinguishment of debt. Surpluses and deficits generated from reimbursable revenue from franchised and managed properties are excluded, as the company does not operate these programs to generate a profit and has the contractual rights to adjust future collections or assess additional fees to recover prior period expenditures. The company's franchise agreements require these revenues to be used exclusively for expenses associated with providing franchised and managed services, such as central reservation systems, hotel employee and operating costs, reservation delivery and national marketing and media advertising. Franchised and managed property owners are required to reimburse the company for any deficits generated from activities and the company is required to spend any surpluses generated in future periods. The reimbursement for franchise and management services is typically billed and collected monthly, based on the underlying hotel's sales or usage, while the associated costs are recognized as incurred by the company, creating timing differences with the net effect impacting net income in the reporting period. These timing differences are due to our discretion to spend in excess of the revenues earned or less than the revenues earned in a single period to ensure that the programs are operated in the best long-term interests of our franchised and managed properties. Since these activities will be managed to break-even over time, quarterly or annual surpluses and deficits have been excluded from the measurements utilized to assess the company's operating performance. We consider adjusted net income and adjusted diluted EPS to be indicators of operating performance because excluding these items allows for period-over-period comparisons of our ongoing operations.
Adjusted SG&A: Adjusted SG&A reflects SG&A excluding the impact of mark-to-market adjustments on non-qualified retirement plan investments, amortization of cloud computing arrangements and share based compensation expense. We use this measure, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across industries or among companies within the same industry. For example, share based compensation expense (benefit) is dependent on the design of compensation plans in place and the usage of them. Accordingly, the impact of share-based compensation expense (benefit) on earnings can vary significantly among companies. Mark-to-market adjustments on non-qualified retirement-plan investments recorded in SG&A expenses are also excluded as the company accounts for these investments in accordance with accounting for deferred-compensation arrangements when investments are held in a rabbi trust and invested. Changes in the fair value of the investments are recognized as both compensation expense in SG&A and other gains and losses. As a result, the changes in the fair value of the investments do not have a material impact on the company's net income.
Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. The company calculates occupancy based on information as reported by its franchisees. To accurately reflect occupancy, the company may revise its prior years' operating statistics for the most current information provided.
Average Daily Rate (ADR): ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and management uses ADR to assess pricing levels that the company is able to generate. The company calculates ADR based on information as reported by its franchisees. To accurately reflect ADR, the company may revise its prior years' operating statistics for the most current information provided.
Revenue Per Available Room (RevPAR): RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of hotel performance and therefore company royalty and system revenues as it provides a metric correlated to the two key drivers of operations at a hotel: occupancy and ADR. The company calculates RevPAR based on information as reported by its franchisees. To accurately reflect RevPAR, the company may revise its prior years' operating statistics for the most current information provided. RevPAR is also a useful indicator in measuring performance over comparable periods.
Pipeline: Pipeline is defined as hotels awaiting conversion, under construction or approved for development, and master development agreements committing owners to future franchise development.
Delek Logistics ve 2. čtvrtletí zvýšil upravenou EBITDA na 143,461 mil. USD a potvrdil celoroční výhled EBITDA 520 až 560 mil. USD. Čistý zisk ale klesl na 28,9 mil. USD z 44,6 mil. USD před rokem.
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the second quarter 2026.
“Delek Logistics delivered another strong quarter in 2026, underscoring the durability of our integrated crude, gas, and water platform and the growing contribution from third-party cash flows. As we continue positioning Delek Logistics for long-term success, we are pleased to announce that Mark Hobbs has transitioned into the role of Executive Vice President of DKL, and that Kris Kindrick has joined Delek Logistics Partners as Senior Vice President, Commercial. These changes reflect our ongoing investment in commercial leadership and the expertise needed to support our growth strategy,” said Avigal Soreq, President of Delek Logistics’ general partner.
“With the near completion of the integrated sour gas system at the Libby Complex and growing demand for our sour gas treating and acid gas injection capabilities, DKL is increasingly positioned as a differentiated Delaware Basin midstream platform with a clear path to long-term value creation.”
“We are reaffirming our 2026 EBITDA guidance of $520 to $560 million, supported by a more diversified cash flow profile, disciplined management of liquidity and leverage, and the strategic progress made to enhance DKL’s standalone financial profile. As we enter the second half of the year, we remain focused on executing against our growth opportunities, optimizing our asset base, and continuing to deliver attractive returns to unitholders," Mr. Soreq continued.
Delek Logistics reported second quarter 2026 net income of $28.9 million or $0.54 per diluted common limited partner unit. This compares to net income of $44.6 million, or $0.83 per diluted common limited partner unit, in the second quarter 2025. Net cash provided by operating activities was $71.2 million in the second quarter 2026 compared to $107.4 million in the second quarter 2025. Distributable cash flow, as adjusted was $80.5 million in the second quarter 2026, compared to $72.5 million in the second quarter 2025.
For the second quarter 2026, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $120.0 million compared to $96.6 million in the second quarter 2025. The increase was primarily driven by performance from the DPG business which was associated with the prior year dropdown from Delek. The second quarter 2026 EBITDA included $0.1 million of transaction costs and $24.0 million of sales-type lease accounting impacts. For the second quarter 2026, Adjusted EBITDA was $143.5 million compared to $127.4 million in the second quarter 2025.
Distribution and Liquidity
On July 22, 2026, Delek Logistics declared a quarterly cash distribution of $1.135 per common limited partner unit for the second quarter 2026. This distribution will be paid on August 10, 2026 to unitholders of record on August 3, 2026. This represents a 1.8% increase over Delek Logistics’ second quarter 2025 distribution of $1.115 per common limited partner unit.
As of June 30, 2026, Delek Logistics had total debt of approximately $2.4 billion and cash of $13.7 million and a leverage ratio of approximately 4.23x. Additional borrowing capacity under the $1.3 billion third party revolving credit facility increased to $1.1 billion.
Consolidated Operating Results
Adjusted EBITDA in the second quarter 2026 was $143.5 million compared to $127.4 million in the second quarter 2025. The $16.1 million increase in Adjusted EBITDA reflects higher margins and increased interest income related to sales-type leases.
Gathering and Processing Segment
Adjusted EBITDA in the second quarter 2026 was $104.1 million compared with $78.0 million in the second quarter 2025. The increase was primarily due to increased margins.
Wholesale Marketing and Terminalling Segment
Adjusted EBITDA in the second quarter 2026 was $12.6 million, compared with second quarter 2025 Adjusted EBITDA of $23.3 million. The decrease was primarily due to the termination of the East Texas marketing agreement with Delek Holdings and a decrease in wholesale margins.
Storage and Transportation Segment
Adjusted EBITDA in the second quarter 2026 was $16.3 million, compared with $16.9 million in the second quarter 2025. The decrease was primarily due to decreased income from sales-type leases.
Investments in Pipeline Joint Ventures Segment
During the second quarter 2026, Adjusted EBITDA from equity method investments was $20.7 million compared to $17.0 million in the second quarter 2025. The increase was primarily due to increase in income from W2W, partially offset by a decrease in income from our investments in our other joint ventures.
Corporate
Adjusted EBITDA in the second quarter 2026 was a loss of $10.1 million compared to a loss of $7.9 million in the second quarter 2025.
Second Quarter 2026 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its second quarter 2026 results on Wednesday, August 5, 2026 at 11:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.
About Delek Logistics Partners, LP
Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services. Delek US Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer.
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense. Forward-looking statements include, but are not limited to, anticipated performance and financial position; statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory; projected benefits of the Delaware Gathering, Permian Gathering, H2O Midstream and Gravity Water Midstream acquisitions; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth.
Investors are cautioned that the following important factors, including among others, may affect these forward-looking statements: the fact that a significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' business risks; political or regulatory developments, including tariffs, taxes and changes in governmental policies relating to crude oil, natural gas, refined products or renewables; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; Delek Logistics' ability to realize cost reductions; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties with respect to the possible benefits of the Delaware Gathering, Permian Gathering, H2O Midstream and Gravity transactions, as well as from integration post-closing; risks related to exposure to Permian Basin crude oil, such as supply, pricing, gathering, production and transportation capacity; uncertainties regarding actions by OPEC and non-OPEC oil producing countries impacting crude oil production and pricing; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; projected capital expenditures; scheduled turnaround activity; the results of our investments in joint ventures; and other risks as disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved.
Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation.
Non-GAAP Disclosures
Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:
Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before interest, income taxes, depreciation and amortization and proportional interest, taxes, depreciation and amortization of equity method investments. Adjusted EBITDA - EBITDA adjusted for throughput and storage fees associated with the lease component of commercial agreements subject to sales-type lease accounting and certain identified infrequently occurring items, non-cash items, and items that are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends. Distributable cash flow - calculated as net cash flow from operating activities adjusted for changes in assets and liabilities, maintenance capital expenditures net of reimbursements, sales-type lease receipts, net of income recognized and other adjustments. Distributable cash flow, as adjusted - calculated as distributable cash flow adjusted to exclude significant, infrequently occurring transaction costs. Our EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted, measures are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA and Adjusted EBITDA, financing methods; the ability of our assets to generate sufficient cash flow to make distributions to our unitholders on a current and on-going basis; Delek Logistics' ability to incur and service debt and fund capital expenditures; and the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. We believe that the presentation of these non-GAAP measures provide information useful to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance and liquidity for current and comparative periods. Non-GAAP measures should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings, net cash provided by operating activities and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. Additionally, because EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted may be defined differently by other partnerships in our industry, our definitions may not be comparable to similarly titled measures of other partnerships, thereby diminishing their utility. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures. However, due to the inherent difficulty and impracticability of estimating certain amounts required by U.S. GAAP with a reasonable degree of certainty at this time without unreasonable effort and imprecision, we have not provided a reconciliation of forward-looking Adjusted EBITDA guidance.
Delek Logistics Partners, LP
Consolidated Balance Sheets (Unaudited)
(In thousands, except unit data)
June 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
13,705
$
10,892
Accounts receivable
134,869
114,544
Accounts receivable from related parties
259,578
216,641
Lease receivable - affiliate
33,158
36,362
Inventory
23,708
17,913
Other current assets
5,129
4,416
Total current assets
470,147
400,768
Property, plant and equipment:
Property, plant and equipment
1,936,429
1,827,530
Less: accumulated depreciation
(460,068
)
(403,523
)
Property, plant and equipment, net
1,476,361
1,424,007
Equity method investments
335,690
340,070
Customer relationship intangibles, net
221,923
233,022
Other intangibles, net
145,700
137,439
Goodwill
12,203
12,203
Operating lease right-of-use assets
8,957
11,683
Finance lease right-of-use assets
29,256
27,802
Net investment in leases - affiliate
156,426
185,656
Other non-current assets
13,801
6,618
Total assets
$
2,870,464
$
2,779,268
LIABILITIES AND PARTNERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable
$
427,051
$
292,908
Interest payable
24,356
30,557
Excise and other taxes payable
21,194
16,569
Current portion of operating lease liabilities
2,170
3,027
Current portion of finance lease liabilities
9,834
8,310
Accrued expenses and other current liabilities
4,690
5,122
Total current liabilities
489,295
356,493
Non-current liabilities:
Long-term debt, net of current portion
2,372,717
2,344,420
Operating lease liabilities, net of current portion
2,582
3,551
Finance lease liabilities, net of current portion
20,494
20,289
Asset retirement obligations
26,157
24,278
Other non-current liabilities
28,510
24,123
Total non-current liabilities
2,450,460
2,416,661
Total liabilities
2,939,755
2,773,154
Partners' (deficit) equity:
Common unitholders - public; 19,688,283 units issued and outstanding at June 30, 2026 (19,643,923 at December 31, 2025)
488,877
510,376
Common unitholders - Delek Holdings; 33,508,831 units issued and outstanding at June 30, 2026, exclusive of 359,372 issued units held by the Partnership in Treasury (33,868,203 issued and outstanding at December 31, 2025)
(558,168
)
(504,262
)
Total partners' (deficit) equity
(69,291
)
6,114
Total liabilities and partners' (deficit) equity
$
2,870,464
$
2,779,268
Delek Logistics Partners, LP
Consolidated Statement of Income and Comprehensive Income (Unaudited)
(In thousands, except unit and per unit data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net revenues:
Affiliate
$
204,764
$
114,083
$
371,454
$
240,404
Third party
179,996
132,267
310,772
255,876
Net revenues
384,760
246,350
682,226
496,280
Cost of sales:
Cost of materials and other - affiliate
148,955
84,411
257,140
174,377
Cost of materials and other - third party
90,007
34,950
150,433
74,036
Operating expenses (excluding depreciation and amortization presented below)
42,794
37,525
89,390
78,155
Depreciation and amortization
36,914
25,879
72,267
52,377
Total cost of sales
318,670
182,765
569,230
378,945
Operating expenses related to wholesale business (excluding depreciation and amortization presented below)
543
549
992
904
General and administrative expenses
3,280
8,944
7,554
17,808
Depreciation and amortization
491
1,218
1,639
2,436
Other operating expense (income), net
(120
)
438
906
(3,848
)
Total operating costs and expenses
322,864
193,914
580,321
396,245
Operating income
61,896
52,436
101,905
100,035
Interest income
(22,545
)
(23,538
)
(54,830
)
(46,085
)
Interest expense
70,090
41,711
121,682
82,812
Income from equity method investments
(14,491
)
(10,536
)
(26,114
)
(20,686
)
Other income, net
(29
)
(20
)
(56
)
(41
)
Total non-operating expenses, net
33,025
7,617
40,682
16,000
Income before income taxes
28,871
44,819
61,223
84,035
Income tax expense
—
245
—
427
Net income
28,871
44,574
61,223
83,608
Comprehensive income
28,871
44,574
$
61,223
$
83,608
Net income per unit:
Basic
$
0.54
$
0.83
$
1.15
$
1.56
Diluted
$
0.54
$
0.83
$
1.15
$
1.56
Weighted average common units outstanding:
Basic
53,175,413
53,445,803
53,343,964
53,524,792
Diluted
53,240,181
53,473,271
53,430,114
53,553,227
Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
(Unaudited)
2026
2025
2026
2025
Cash flows from operating activities
Net cash provided by operating activities
$
71,198
$
107,423
$
241,574
$
138,973
Cash flows from investing activities
Net cash used in investing activities
(59,793
)
(112,916
)
(109,091
)
(347,683
)
Cash flows from financing activities
Net cash (used in) provided by financing activities
(7,607
)
4,822
(129,670
)
204,762
Net decrease in cash and cash equivalents
3,798
(671
)
2,813
(3,948
)
Cash and cash equivalents at the beginning of the period
9,907
2,107
10,892
5,384
Cash and cash equivalents at the end of the period
$
13,705
$
1,436
$
13,705
$
1,436
Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited)
(In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Reconciliation of Net Income to EBITDA:
Net income
$
28,871
$
44,574
$
61,223
$
83,608
Add:
Income tax expense
—
245
—
427
Depreciation and amortization
37,405
27,097
73,906
54,813
Proportional interest, taxes, depreciation and amortization from equity-method investments
6,219
6,505
12,915
13,170
Interest expense, net
47,545
18,173
66,852
36,727
EBITDA
120,040
96,594
214,896
188,745
Throughput and storage fees for sales-type leases
24,033
27,406
59,414
55,112
DPG Inventory Impact
(34
)
900
265
900
Transaction costs
138
2,496
1,299
5,845
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements
$
(716
)
$
—
(129
)
—
Adjusted EBITDA
$
143,461
$
127,396
$
275,745
$
250,602
Reconciliation of net cash from operating activities to distributable cash flow:
Net cash provided by operating activities
$
71,198
$
107,423
$
241,574
$
138,973
Changes in assets and liabilities
14,744
(37,602
)
(79,488
)
(5,522
)
Non-cash lease expense
(1,747
)
(1,352
)
(2,848
)
(3,619
)
Net distributions from equity method investments in investing activities
3,064
3,443
8,089
5,570
Regulatory and sustaining capital expenditures not distributable
(9,552
)
(4,598
)
(13,628
)
(5,243
)
Reimbursement from Delek Holdings for capital expenditures
10
10
22
19
Sales-type lease receipts, net of income recognized
1,488
3,868
4,584
9,027
Other non-cash adjustments
1,164
(1,154
)
297
2,538
Distributable Cash Flow
80,369
70,038
158,602
141,743
Transaction costs
138
2,496
1,299
5,845
Distributable Cash Flow, as adjusted (1)
$
80,507
$
72,534
$
159,901
$
147,588
Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation (Unaudited)
(In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Distributions to partners of Delek Logistics, LP
$
60,379
$
59,612
$
120,459
$
118,932
Distributable cash flow
$
80,369
$
70,038
$
158,602
$
141,743
Distributable cash flow coverage ratio (1)
1.33x
1.17x
1.32x
1.19x
Distributable cash flow, as adjusted
80,507
72,534
$
159,901
$
147,588
Distributable cash flow coverage ratio, as adjusted (2)
1.33x
1.22x
1.33x
1.24x
Delek Logistics Partners, LP
Segment Data (Unaudited)
(In thousands)
Three Months Ended June 30, 2026
Gathering and
Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in
Pipeline Joint
Ventures
Corporate and
Other
Consolidated
Net revenues:
Affiliate
$
63,137
$
115,853
$
25,774
$
—
$
—
$
204,764
Third party
132,002
46,875
1,119
—
—
179,996
Total revenue
$
195,139
$
162,728
$
26,893
$
—
$
—
$
384,760
Adjusted EBITDA
$
104,058
$
12,552
$
16,280
$
20,710
$
(10,139
)
$
143,461
Transaction costs
—
—
—
—
138
138
DPG Inventory Impact
(34
)
—
—
—
—
(34
)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements
(716
)
—
—
—
—
(716
)
Throughput and storage fees for sales-type leases
11,422
3,942
8,669
—
—
24,033
Segment EBITDA
$
93,386
$
8,610
$
7,611
$
20,710
$
(10,277
)
120,040
Depreciation and amortization
$
33,870
$
762
$
2,000
$
—
$
773
37,405
Proportional interest, taxes, depreciation and amortization from equity-method investments
$
—
$
—
$
—
$
6,219
$
—
6,219
Interest income
$
(10,004
)
$
(4,089
)
$
(8,452
)
$
—
$
—
(22,545
)
Interest expense
$
—
$
—
$
—
$
—
$
70,090
70,090
Income tax expense
—
Net income
$
28,871
Six Months Ended June 30, 2026
Gathering and
Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in
Pipeline Joint
Ventures
Corporate and
Other
Consolidated
Net revenues:
Affiliate
$
112,383
$
209,779
$
49,292
$
—
$
—
$
371,454
Third party
237,432
70,745
2,595
—
—
310,772
Total revenue
$
349,815
$
280,524
$
51,887
$
—
$
—
$
682,226
Adjusted EBITDA
$
186,986
$
26,866
$
41,442
$
39,029
$
(18,578
)
$
275,745
Transaction costs
—
—
—
—
1,299
1,299
DPG Inventory Impact
265
—
—
—
—
265
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements
(129
)
—
—
—
—
(129
)
Throughput and storage fees for sales-type leases
22,844
8,494
28,076
—
—
59,414
Segment EBITDA
$
164,006
$
18,372
$
13,366
$
39,029
$
(19,877
)
214,896
Depreciation and amortization
67,111
1,530
3,725
—
1,540
73,906
Proportional interest, taxes, depreciation and amortization from equity-method investments
—
—
—
12,915
—
12,915
Interest income
(20,162
)
(8,106
)
(26,562
)
—
—
(54,830
)
Interest expense
—
—
—
—
121,682
121,682
Income tax expense
—
Net income
$
61,223
Three Months Ended June 30, 2025
Gathering and Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in
Pipeline Joint
Ventures
Corporate and Other
Consolidated
Net revenues:
Affiliate
$
39,098
$
52,367
$
22,618
$
—
$
—
$
114,083
Third party
78,669
52,248
1,350
—
—
132,267
Total revenue
$
117,767
$
104,615
$
23,968
$
—
$
—
$
246,350
Adjusted EBITDA
$
77,984
$
23,307
$
16,928
$
17,041
$
(7,864
)
$
127,396
Transaction costs
—
—
—
—
2,496
2,496
DPG Inventory Impact
900
—
—
—
—
900
Throughput and storage fees not included in revenue
13,137
4,368
9,901
—
—
27,406
Segment EBITDA
$
63,947
$
18,939
$
7,027
$
17,041
$
(10,360
)
96,594
Depreciation and amortization
$
24,085
$
952
$
1,301
$
—
$
759
27,097
Proportional interest, taxes, depreciation and amortization from equity-method investments
$
—
$
—
$
—
$
6,505
$
—
6,505
Interest income
(11,113
)
(4,109
)
(8,316
)
—
—
(23,538
)
Interest expense
$
—
$
—
$
—
$
—
$
41,711
41,711
Income tax expense
245
Net income
$
44,574
Six Months Ended June 30, 2025
Gathering and
Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in
Pipeline Joint
Ventures
Corporate and
Other
Consolidated
Net revenues:
Affiliate
$
77,665
$
117,075
$
45,664
$
—
$
—
$
240,404
Third party
158,705
94,239
2,932
—
—
255,876
Total revenue
$
236,370
$
211,314
$
48,596
$
—
$
—
$
496,280
Adjusted EBITDA
$
159,059
$
41,057
$
31,399
$
33,856
$
(14,769
)
$
250,602
Transaction costs
—
—
—
—
5,845
5,845
DPG Inventory Impact
900
—
—
—
—
900
Throughput and storage fees not included in revenue
26,273
8,881
19,958
—
—
55,112
Segment EBITDA
$
131,886
$
32,176
$
11,441
$
33,856
$
(20,614
)
188,745
Depreciation and amortization
$
48,808
$
1,904
$
2,582
$
—
$
1,519
54,813
Proportional interest, taxes, depreciation and amortization from equity-method investments
$
—
$
—
$
—
$
13,170
$
—
13,170
Interest income
(22,478
)
(8,270
)
(15,337
)
—
—
(46,085
)
Interest expense
$
—
$
—
$
—
$
—
$
82,812
82,812
Income tax expense
427
Net income
$
83,608
Delek Logistics Partners, LP
Segment Capital Spending
(In thousands)
Three Months Ended June 30,
Six Months Ended June 30, 2026
Gathering and Processing
2026
2025
2026
2025
Regulatory capital spending
$
1,987
$
—
$
2,875
$
—
Sustaining capital spending
6,686
2,627
9,602
2,640
Growth capital spending
50,950
114,591
96,665
185,889
Segment capital spending
59,623
117,218
109,142
188,529
Wholesale Marketing and Terminalling
Regulatory capital spending
10
—
74
11
Sustaining capital spending
67
65
80
144
Growth capital spending
373
—
407
—
Segment capital spending
450
65
561
155
Storage and Transportation
Regulatory capital spending
15
799
13
1,020
Sustaining capital spending
786
1,107
983
1,428
Segment capital spending
801
1,906
996
2,448
Consolidated
Regulatory capital spending
2,012
799
2,962
1,031
Sustaining capital spending
7,539
3,799
10,665
4,212
Growth capital spending
51,323
114,591
97,072
185,889
Total capital spending
$
60,874
$
119,189
$
110,699
$
191,132
Delek Logistics Partners, LP
Segment Operating Data (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Gathering and Processing Segment:
Throughputs (average bpd)
El Dorado Assets:
Crude pipelines (non-gathered)
74,197
71,220
68,068
66,580
Refined products pipelines to Enterprise Systems
52,059
53,597
48,379
54,797
El Dorado Gathering System
9,737
9,983
9,485
10,151
East Texas Crude Logistics System
34,259
33,101
30,791
30,027
Midland Gathering System
209,957
207,183
214,057
209,059
Plains Connection System
176,680
158,881
194,421
169,004
Delaware Gathering Assets:
Natural Gas Gathering and Processing (Mcfd(1))
80,715
60,940
72,355
60,378
Crude Oil Gathering (average bpd)
157,156
137,167
143,380
129,737
Water Disposal and Recycling (average bpd)
105,396
116,504
108,269
122,468
Midland Water Gathering System:
Water Disposal and Recycling (average bpd) (3)
701,435
600,891
679,223
613,817
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd) (2)
Amundi grew its stake in shares of Elastic N.V. (NYSE:ESTC – Free Report) by 37.2% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 296,604 shares of the company’s stock after acquiring an additional 80,441 shares during the quarter. Amundi owned about 0.29% of Elastic worth $14,827,000 at the end of the most recent quarter.
Several other large investors have also modified their holdings of ESTC. Sound Income Strategies LLC acquired a new position in Elastic during the 4th quarter worth approximately $25,000. Bessemer Group Inc. acquired a new stake in Elastic during the first quarter valued at approximately $25,000. Geneos Wealth Management Inc. acquired a new stake in Elastic during the second quarter valued at approximately $31,000. Activest Wealth Management lifted its holdings in Elastic by 3,181.2% during the 4th quarter. Activest Wealth Management now owns 525 shares of the company’s stock worth $40,000 after buying an additional 509 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd grew its position in shares of Elastic by 206.1% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock worth $42,000 after acquiring an additional 371 shares in the last quarter. 97.03% of the stock is currently owned by hedge funds and other institutional investors.
Elastic Stock Up 3.5% Shares of Elastic stock opened at $71.14 on Wednesday. The stock has a 50-day moving average price of $60.94 and a 200 day moving average price of $57.25. The company has a market cap of $7.39 billion, a P/E ratio of 20.33, a P/E/G ratio of 15.56 and a beta of 0.98. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.45. Elastic N.V. has a 1 year low of $42.05 and a 1 year high of $96.07.
Elastic (NYSE:ESTC – Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The company reported $0.61 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.05. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The firm had revenue of $450.68 million for the quarter, compared to the consensus estimate of $446.66 million. During the same period in the previous year, the firm posted $0.47 earnings per share. The firm’s revenue was up 16.0% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. As a group, analysts expect that Elastic N.V. will post 0.26 EPS for the current fiscal year.
Insider Transactions at Elastic In related news, insider Carolyn Herzog sold 9,485 shares of Elastic stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $574,885.85. Following the transaction, the insider owned 128,439 shares in the company, valued at $7,784,687.79. This trade represents a 6.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ashutosh Kulkarni sold 40,373 shares of the company’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $2,447,007.53. Following the sale, the chief executive officer owned 628,752 shares of the company’s stock, valued at $38,108,658.72. This trade represents a 6.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 110,099 shares of company stock worth $6,673,100. Corporate insiders own 12.70% of the company’s stock.
Analysts Set New Price Targets Several analysts recently weighed in on ESTC shares. Wolfe Research set a $55.00 price objective on shares of Elastic in a research report on Friday, May 29th. Rothschild & Co Redburn assumed coverage on shares of Elastic in a research note on Thursday, April 23rd. They issued a “neutral” rating and a $49.00 price target on the stock. Barclays cut their price target on Elastic from $76.00 to $68.00 and set an “overweight” rating on the stock in a report on Friday, May 29th. Canaccord Genuity Group reduced their price objective on Elastic from $90.00 to $80.00 and set a “buy” rating for the company in a research report on Friday, May 29th. Finally, Weiss Ratings raised Elastic from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, July 15th. Seventeen research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $78.78.
View Our Latest Stock Analysis on Elastic
About Elastic (Free Report)
Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.
The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.
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Amundi boosted its holdings in Landstar System, Inc. (NASDAQ:LSTR – Free Report) by 2,254.2% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 79,173 shares of the transportation company’s stock after purchasing an additional 75,810 shares during the quarter. Amundi owned about 0.23% of Landstar System worth $12,692,000 at the end of the most recent quarter.
A number of other large investors have also recently bought and sold shares of the business. M&T Bank Corp raised its position in shares of Landstar System by 151,424.4% during the 4th quarter. M&T Bank Corp now owns 6,294,325 shares of the transportation company’s stock worth $904,495,000 after purchasing an additional 6,290,171 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Landstar System by 185.5% in the fourth quarter. AQR Capital Management LLC now owns 987,087 shares of the transportation company’s stock valued at $141,844,000 after purchasing an additional 641,319 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of Landstar System by 910.2% in the fourth quarter. Millennium Management LLC now owns 541,880 shares of the transportation company’s stock valued at $77,868,000 after purchasing an additional 488,238 shares in the last quarter. Bank of Montreal Can boosted its position in shares of Landstar System by 5,643.4% during the fourth quarter. Bank of Montreal Can now owns 386,758 shares of the transportation company’s stock worth $55,577,000 after buying an additional 380,024 shares during the period. Finally, Corient Private Wealth LLC boosted its position in shares of Landstar System by 99.5% during the fourth quarter. Corient Private Wealth LLC now owns 742,215 shares of the transportation company’s stock worth $105,877,000 after buying an additional 370,253 shares during the period. Institutional investors and hedge funds own 97.95% of the company’s stock.
Analyst Upgrades and Downgrades Several research firms have commented on LSTR. Wall Street Zen upgraded Landstar System from a “hold” rating to a “buy” rating in a research note on Saturday, July 4th. UBS Group reaffirmed a “neutral” rating and set a $195.00 price target on shares of Landstar System in a research note on Wednesday, July 29th. Wells Fargo & Company lifted their price objective on shares of Landstar System from $200.00 to $240.00 and gave the company an “overweight” rating in a report on Friday, June 5th. Wolfe Research raised shares of Landstar System from a “peer perform” rating to an “outperform” rating and set a $214.00 price objective on the stock in a research report on Tuesday. Finally, Weiss Ratings upgraded shares of Landstar System from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $196.00.
View Our Latest Analysis on LSTR
Landstar System Trading Up 2.7% LSTR opened at $181.62 on Wednesday. Landstar System, Inc. has a twelve month low of $119.32 and a twelve month high of $228.46. The company has a fifty day moving average of $206.69 and a 200-day moving average of $178.59. The stock has a market cap of $6.16 billion, a PE ratio of 47.05 and a beta of 0.90. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.05.
Landstar System (NASDAQ:LSTR – Get Free Report) last issued its earnings results on Tuesday, July 28th. The transportation company reported $1.44 earnings per share for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.05). The business had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.34 billion. Landstar System had a return on equity of 20.84% and a net margin of 2.64%.The company’s revenue for the quarter was up 18.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.20 earnings per share. On average, sell-side analysts predict that Landstar System, Inc. will post 5.8 EPS for the current year.
Landstar System Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Tuesday, August 18th will be issued a $0.44 dividend. This is a boost from Landstar System’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $1.76 annualized dividend and a yield of 1.0%. Landstar System’s payout ratio is 41.45%.
Landstar System announced that its Board of Directors has initiated a share repurchase program on Tuesday, April 28th that authorizes the company to buyback 1,115,195,000,000 outstanding shares. This buyback authorization authorizes the transportation company to buy up to 3.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.
Insider Buying and Selling In other Landstar System news, CFO James P. Todd sold 1,200 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $218.17, for a total transaction of $261,804.00. Following the sale, the chief financial officer owned 15,122 shares in the company, valued at $3,299,166.74. This represents a 7.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Diana M. Murphy sold 11,246 shares of the firm’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $221.28, for a total value of $2,488,514.88. Following the completion of the transaction, the director directly owned 18,853 shares of the company’s stock, valued at $4,171,791.84. The trade was a 37.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.74% of the stock is currently owned by insiders.
Landstar System Profile (Free Report)
Landstar System, Inc provides integrated transportation management solutions through a network of independent agents and third-party capacity providers. The company specializes in truckload brokerage, intermodal, air and ocean freight, expedited and heavy-haul services, along with value-added offerings such as cargo insurance, customs brokerage and supply chain management. Landstar’s proprietary technology platform enables real-time load matching, shipment tracking and data analytics to optimize fleet utilization and improve customer service.
Founded in 1968 and headquartered in Jacksonville, Florida, Landstar pioneered an asset-light brokerage model that has evolved into a global logistics operation.
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Lodestar Metals oznámila, že první vrty na projektu Gold Run v Nevadě potvrdily několik typů mineralizace zlata a stříbra a silný potenciál pro velkoobjemovou těžbu. Nejlepší průnik v LSRC04 dosáhl 16,8 m s 6,1 g/t Au a 41,1 g/t Ag.
Vancouver, British Columbia--(Newsfile Corp. - August 5, 2026) - Lodestar Metals Corp. (TSXV: LSTR) (OTCQB: SVTNF) (FSE: PR90) ("Lodestar" or the "Company"), an exploration company focused on unlocking world-class gold potential, reports assay results from the first six reverse-circulation ("RC") holes of its maiden 2,680m drill program at the flagship Gold Run project in Nevada. The initial 1,143 m of drilling at the Robbers Knob target identified multiple gold-silver mineralisation styles and strong bulk-tonnage potential.
oxide Au-AgLSRC02161.5176.815.20.3716.00.270.40Au-Ag polymetallicNote: Assay intervals presented above are hole lengths; true widths are estimated to be 85-95%.
Three mineralisation styles demonstrated at Robbers Knob: broad, near-surface oxide gold-silver intercepts over 30-70 m, comparable to grades exploited in large open-pit, heap-leach operations in northern Nevada; high-grade gold-silver shoots/veins; and a deeper gold-silver polymetallic zone. Detailed magnetics and IP data defined untested chargeability anomalies and northwest-trending structures that provide clear vectors for follow-up drilling.Assays pending for 12 additional RC holes (1,537 m) across three priority targets: Gomes, Black Diamond and Crown North. "These initial results from Robbers Knob validate our geological model and confirm a robust gold-silver system with both bulk-tonnage oxide mineralisation and structurally controlled higher-grade zones," said Lowell Kamin, President & CEO of Lodestar Metals. "We are particularly encouraged by the consistency across multiple holes and the clear vectors for potential expansion highlighted by our geophysical data. With additional assays pending across several targets, we believe this program marks an important step in defining the broader scale potential of the Gold Run project."
5mm
Figure 1. UAV Magnetics map (TMIRTP) showing structural interpretation, maximum gold assays from previous drilling and highlighting assay results from the 2026 drilling at Robbers Knob
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/307930_681bee36248c0803_003full.jpg
The maiden RC drill program tested four high-priority gold-silver targets across Gold Run and comprised 18 holes totaling 2,680 m. Final assays have now been received for the first six holes at Robbers Knob, while results are pending for the remaining 12 holes testing Gomes, Black Diamond and Crown North.
Robbers Knob Drill Results
Drilling at Robbers Knob has confirmed three mineralisation styles with clear expansion potential: a shallow bulk-tonnage oxide gold-silver system, a higher-grade structurally controlled gold-silver zone, and a deeper gold-silver polymetallic zone. Figure 1 highlights the structural setting and shows how current drilling aligns with interpreted northwest-trending faults and nearby geophysical targets.
Bulk-Tonnage Gold-Silver Oxide
Broad oxide gold-silver mineralisation was intersected in four holes across the main southern section of Robbers Knob, primarily within a weathered zone at depths of approximately 40 m to 150 m. Key intercepts include 62.5 m grading 0.6 g/t Au and 7.0 g/t Ag from 97.5 m in LSRC03, 36.6 m grading 0.3 g/t Au and 6.0 g/t Ag from 50.3 m in LSRC02, 30.5 m grading 0.3 g/t Au and 6.8 g/t Ag from 51.8 m in LSRC01, and 36.6 m grading 0.2 g/t Au and 3.7 g/t Ag from 137.2 m in LSRC05.
Figure 2. Southern cross section at Robbers Knob showing the geology, oxidation and significant intercepts from LSRC-01, 2, 3 and 5.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/307930_681bee36248c0803_004full.jpg
Figure 2 illustrates the continuity of the shallow oxide system across the southern section of Robbers Knob. These results support the interpretation of a broad oxide gold-silver target with characteristics comparable to bulk-tonnage, heap-leach style mineralisation seen elsewhere in northern Nevada held by adjacent mining companies Nevada Gold Mines and SSR Mining.
High Grade Gold-Silver Shoots/Veins
Infill hole LSRC04 confirmed the presence of higher-grade gold-silver mineralisation within the broader Robbers Knob system. The hole returned 16.8 m grading 6.1 g/t Au and 41.1 g/t Ag from 132.6 m, including 3.0 m grading 31.9 g/t Au and 181.6 g/t Ag. These results support the interpretation of structurally controlled higher-grade zones that could be repeated along northwest-oriented faults identified in magnetics and mapping (Figure 1).
Figure 3. Northern cross section at Robbers Knob showing the geology, oxidation and significant intercepts from LSRC-04.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/307930_681bee36248c0803_005full.jpg
Figure 3 highlights the higher-grade zone intersected in LSRC04 and supports the interpretation that structurally controlled shoots or veins occur within the broader mineralised system. Future exploration may prove that these higher-grade zones provide an important complementary upside to the shallow bulk-tonnage oxide mineralisation.
Deeper Gold-Silver Polymetallic Zone
Deeper drilling also intersected a style of mineralisation not previously recognized in historical drilling at Robbers Knob. Beginning at 161.5 m in LSRC02, the Company intersected 15.2 m of polymetallic mineralisation grading 0.37 g/t Au, 16 g/t Ag, 0.40% Zn, and 0.27% Pb, associated with black manganese oxide and sulphide in fresh rock.
This deeper polymetallic zone represents an additional target horizon beneath the shallow oxide system. Follow-up drilling is expected to test the scale and continuity of this deeper mineralisation.
Expansion Targets
Recent DDIP and drone-supported magnetic surveys have strengthened the Company's targeting model at Robbers Knob. The geophysical data define chargeability anomalies immediately west and north of the current drilling (Figure 4), while magnetics indicate northwest-trending structures that may control higher-grade mineralisation (Figure 1).
Figure 4. 3D view looking north and down of the DDIP showing the new drill results and other Lodestar holes with outstanding assays
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/307930_681bee36248c0803_006full.jpg
Figure 4 shows the Robbers West and Robbers North anomalies, which extend beyond the current drill footprint and may represent deeper sulphide mineralisation underlying the shallow oxide system. These anomalies, together with the structural interpretation shown in Figure 1, provide clear targets for follow-up drilling.
Pending Assays
Assays are pending for 12 additional holes totaling 1,537 m from three priority targets across Gold Run. These include Gomes, where drilling targeted historical gold-silver mineralisation and an IP anomaly; Black Diamond, where drilling tested high-grade silver-gold mineralisation and two chargeability IP anomalies; and Crown North, where drilling tested the projected northern extension of the Adelaide Crown epithermal gold deposit held by Nevada Gold Mines.
Sampling Procedures and QA/QC
RC holes were drilled by HD Drilling using a 5.5″ hammer with a 5¼″ M40CC hammer bit and reverse circulation methods to minimize contamination and maximise sample size. In some deeper sections of certain RC holes, a 5″ hammer was used to achieve greater depth penetration.
Reverse circulation (RC) drilling was used to obtain representative drill cuttings for geological logging and laboratory assaying. Samples were collected at 5 ft (1.52 m) intervals. Drill cuttings from each interval passed through the cyclone and were split using a rig-mounted rotary splitter. A representative split of approximately 4-9 kg was collected into cloth sample bags for assay. RC drilling was conducted dry where practicable. Where wet RC drilling was required to maintain drilling performance in some deeper or more difficult sections, samples were collected at the same 5 ft intervals using a rotary wet splitter, and recorded by the project manager on the sampling cut sheet for later reference. The drilling contractor cleaned the rig-mounted rotary cone splitter at regular intervals and as required to minimize contamination between samples. RC samples were collected from 5 ft bulk samples using the A-chute of the splitter attached directly to the cyclone. Overall, the drilling and sampling procedures were designed to maximise sample recovery, reduce fines loss, and maintain representative RC samples for geological logging and assay. Cloth bags were marked by the program manager with the drill hole ID and sample interval/footage to maintain sample identification and traceability. All 5 ft split samples were submitted to the laboratory for analysis. All samples are transported in large bags sealed with numbered security tags. The sample bags are picked up by a service contracted by Bureau Veritas to transport the samples directly from site to their facility in Reno, Nevada. The sampling approach is considered appropriate for RC drilling and for the style of mineralisation being tested.
The QA/QC procedure adopted is approximately 3 blank samples per 100 samples, 2 standard samples of known gold and silver grades per 100 samples and 3 field duplicates per 100 samples. All QA/QC samples were within expected tolerances.
RC samples were prepared by Bureau Veritas located in Sparks, Nevada USA using preparation code WGHT. This procedure involved crushing samples to 70% passing 2 mm and pulverising the entire sample to 85% passing 75 µm. Gold analyses were completed in Bureau Veritas located in Vancouver, Canada on a 30 g charge using lead collection fire assay with an atomic absorption spectroscopy (AAS) finish (method FA430). Samples returning over-limit gold values were re-analyzed using a gravimetric finish (method FA530). Multi-element analyses were completed were completed in Bureau Veritas located in Vancouver, Canada following four-acid digestion with inductively coupled plasma optical emission spectroscopy (ICP-ES) using method MA300, which provides analyses for a broad suite of exploration elements. Bureau Veritas applies internal laboratory QA/QC procedures as part of its analytical process. Final analytical results were reported in certified laboratory assay certificates provided to the Company's management and technical team. Bureau Veritas Minerals laboratories operate under an ISO/IEC 17025:2017 accredited quality management system for the relevant mineral analytical methods. The sample preparation and analytical methods are considered appropriate for RC drill-chip samples and for the style of gold and polymetallic mineralisation being tested. True widths of the assay intervals are estimated to be 85-95% of the reported drill hole lengths.
Additional Information
1 A summary of drill targets and intercepts and supporting technical data was provided in the Company's December 2, 2025 news release.
2 The Company has identified historical drill intercepts interpreted from the Property's historical database, which was acquired. The Company has not previously verified the intercepts, and limited information is available regarding sampling methodologies, analytical procedures, and associated QA/QC protocols. The historical intercepts are considered relevant for the purposes of exploration targeting, which is intended to validate and assess the continuity and reliability of the reported mineralisation. Readers are cautioned that the historical information should not be relied upon until it has been independently verified.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Mr. Leo Horn, who is the Qualified Person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Horn is a consulting director to the Company and is a member of the Australasian Institute of Geoscientists (MAIG). Mr. Horn has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activities being undertaken, to qualify as a Qualified Person as defined by NI 43-101. Mr. Horn has reviewed and verified the technical information contained in this news release and consents to the disclosure of such information in the form and context in which it appears. The Company is not aware of any new information or data that materially affects the scientific or technical information disclosed in this news release.
ABOUT LODESTAR METALS
Lodestar Metals Corp. is a Canadian gold exploration company focused on advancing the Gold Run Project in Nevada, strategically located on a major Carlin-type gold trend and adjacent to some of the largest gold deposits in North America. With decades of combined geological and capital markets expertise, Lodestar follows a disciplined, step-by-step approach to discovery. The Company's strategy is clear: focus capital on high-value targets, move quickly on known mineralisation, and build a compliant gold resource that delivers lasting shareholder value. For more information, please visit www.lodestarmetals.ca.
Forward-Looking Statements
The information set forth in this news release contains forward-looking statements based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not guarantees of future performance. Lodestar cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by several material factors, many of which are beyond Lodestar's control. Such factors include, among other things, risks and uncertainties relating to Lodestar's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Table 1: Drilling details for the first 6 holes of Lodestar's recent RC Drill Program at Robbers Knob
Hole_IDX(NAD83)Y (NAD 83)Elevation (m)Final Depth (m)AzimuthDipLSRC-0145510945188701894.8147.864.7-44.5LSRC-0245507445188801891.8213.489.8-44.7LSRC-0345503745188841889.816085.9-49.4LSRC-0445496845189471872.8201.288.0-44.8LSRC-0545500245188801889.0217.991.2-59.8LSRC-0645513545190101861.7202.7102.1-49.3Table 2: Composite assay results for the first 6 holes of Lodestar's recent RC Drill Program at Robbers Knob
HoleIDFromToInterval(m)Au g/tAg g/tPb %Zn %Cut-off Au g/tLSRC0151.882.330.50.336.8
BorgWarner ve 2. čtvrtletí zvýšil upravený zisk na akcii o 17,4 % na 1,42 USD a zvedl celoroční výhled upraveného zisku na akcii na 5,05 až 5,30 USD. Zároveň schválil navýšení programu zpětného odkupu akcií o 1 miliardu USD.
, /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today reported second quarter results for 2026.
Second Quarter Results and Business Update
BorgWarner's (the "Company") U.S. GAAP net sales increased approximately 0.3%, while organic net sales decreased approximately 1.2%, year-over-year compared with the second quarter of 2025. Excluding the decline in Battery Energy Systems segment sales of approximately $60 million, the Company's organic net sales were up modestly year-over-year. The Company achieved a U.S. GAAP operating margin of 10.1% during the second quarter of 2026, or an increase of 220 basis points, compared with the second quarter of 2025. The Company achieved an adjusted operating margin of 11.3%, or an increase of 100 basis points, compared with the second quarter of 2025. The Company's continued focus on cost controls allowed it to deliver strong performance despite a lower industry production environment. The Company repurchased approximately $100 million of its outstanding shares and paid a $34 million cash dividend to its shareholders during the second quarter of 2026. The Company's Board of Directors authorized an increase to its share repurchase program of $1 billion, bringing the Company's total authorization to approximately $1.35 billion, which is intended to allow management to repurchase the Company's outstanding shares through 2029. The Company continued to make progress in its product readiness across its portfolio offerings for the data center and industrial markets. The Company plans to increase 2026 R&D spending to accelerate these future growth opportunities. New Business Awards Across Portfolio
The Company secured multiple new business awards that are expected to support its long-term profitable growth, including the following:
New eTurbo award with a major European OEM for an advanced hybrid passenger car application. Production is expected to begin in 2029. Torque-on-demand with mechanical lock transfer case award with a Chinese OEM for a newly developed, full-size SUV. Production is expected to begin in the fourth quarter of 2026. Two variable cam timing awards. These include a conquest award with a major Chinese OEM and a program life extension award with a leading European premium OEM. Production is expected to begin in 2026 and 2027, respectively. Integrated Drive Modules (iDM) award with a global OEM. This program utilizes the Company's next-generation iDM technology, setting a new benchmark in performance, efficiency and system integration. Production is expected to begin in 2027. Two high-volume inverter extension awards with a major European OEM for plug-in hybrid and 800V battery-electric vehicles. Production is expected to begin in 2029. Second Quarter Highlights:
U.S. GAAP net sales of $3,648 million, an increase of approximately 0.3% compared with the second quarter of 2025. Excluding the impact of foreign currencies, organic net sales decreased 1.2% compared with the second quarter of 2025. U.S. GAAP net earnings of $1.34 per diluted share. Excluding $0.08 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.42 per diluted share, an increase of 17.4% compared with the second quarter of 2025. U.S. GAAP operating income of $370 million, or 10.1% of net sales. Excluding $43 million of pretax expenses related to non-comparable items, adjusted operating income was $413 million, or 11.3% of net sales. Net cash provided by operating activities of $586 million. Free cash flow of $492 million. Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Earnings per diluted share
$ 1.34
$ 1.03
$ 2.50
$ 1.75
Non-comparable items:
Restructuring expense
0.07
0.06
0.13
0.17
Accelerated depreciation
0.03
0.08
0.03
0.08
Adjustments associated with Spin-Off related balances
Net sales were $3,648 million for the second quarter of 2026, an increase of approximately 0.3% compared with the second quarter of 2025. This increase was due to stronger foreign currencies compared to the U.S. dollar, partially offset by declining market production volumes and lower Battery Energy Systems segment sales. Net earnings for the second quarter of 2026 were $277 million, compared with net earnings of $224 million for the second quarter of 2025. Net earnings per share for the second quarter of 2026 were $1.34 per diluted share, up 30.1% from $1.03 per diluted share for the second quarter of 2025. Adjusted net earnings per diluted share for the second quarter of 2026 were $1.42, up 17.4% from adjusted net earnings per diluted share of $1.21 for the second quarter of 2025. Adjusted net earnings for the second quarter of 2026 excluded net non-comparable items of $(0.08) per diluted share, while adjusted net earnings for the second quarter of 2025 excluded net non-comparable items of $(0.18) per diluted share. These and other non-comparable items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings per diluted share was primarily due to higher adjusted operating income and the impact of a lower share count as a result of 2025 and 2026 share repurchases.
Full Year 2026 Guidance Update: The Company increased its 2026 full year adjusted earnings per share guidance, while maintaining its sales, adjusted operating margin and cash flow expectations.
At the mid-point of its 2026 guidance, the Company expects to deliver another year of adjusted operating margin improvement and adjusted earnings per share growth despite the Company's expectation that its weighted light vehicle markets will be down 3% to approximately flat and a decline in the Company's Battery Energy Systems segment sales. Net sales are expected to be in the range of $14.0 billion to $14.3 billion in 2026, compared with 2025 net sales of approximately $14.3 billion. The Company's net sales guidance implies a year-over-year change in organic net sales of down 3.5% to down 1.5%. The Company's net sales guidance includes an expected year-over-year sales decline of approximately $250 million in the Company's Battery Energy Systems segment, which represents approximately a 1.7% headwind to organic net sales growth in 2026. Foreign currencies are expected to result in a year-over-year increase in sales of approximately $175 million primarily due to the strengthening of the Euro and Chinese Renminbi against the U.S. dollar.
U.S. GAAP operating margin is expected to be in the range of 9.6% to 9.8% in 2026. Excluding the impact of non-comparable items and the add back of intangible asset amortization expense, adjusted operating margin is expected to be in the range of 10.7% to 10.9%. U.S. GAAP net earnings are expected to be within the range of $4.72 to $4.94 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be in the range of $5.05 to $5.30 per diluted share, compared to the Company's previous adjusted net earnings range of $5.00 to $5.20 per diluted share. The increase is due to the impact of the Company's share repurchases during the first half of 2026. Full year operating cash flow is expected to be in the range of $1,600 million to $1,700 million, while free cash flow is expected to be in the range of $900 million to $1,100 million.
At 9:30 a.m. ET today, a brief conference call concerning second quarter 2026 results and full year guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.
Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, including our guidance for full year 2026, our business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and profitable growth of our business and operations, plans, references to future success, including the anticipated benefits of increased investments in research and development, our new business awards and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the success of our portfolio strategy; supply disruptions impacting us or our customers, commodity availability and pricing and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended tax benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs (and any potential refund recovery of tariffs imposed under the International Emergency Economic Powers Act) and export restrictions and their impact on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A. "Risk Factors" in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.
BorgWarner Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in millions, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net sales
$ 3,648
$ 3,638
$ 7,181
$ 7,153
Cost of sales
2,927
2,998
5,783
5,874
Gross profit
721
640
1,398
1,279
Gross margin
19.8 %
17.6 %
19.5 %
17.9 %
Selling, general and administrative expenses
331
317
659
632
Restructuring expense
21
17
39
48
Other operating (income) expense, net
(1)
14
(6)
31
Impairment charges
—
3
—
42
Operating income
370
289
706
526
Equity in affiliates' earnings, net of tax
(10)
(8)
(16)
(18)
Unrealized gain on equity securities
(4)
(1)
(3)
(1)
Interest expense, net
10
12
21
24
Other postretirement expense
2
2
4
5
Earnings before income taxes and noncontrolling interest
372
284
700
516
Provision for income taxes
81
52
154
113
Net earnings
291
232
546
403
Net earnings attributable to noncontrolling interest
14
8
27
22
Net earnings attributable to BorgWarner Inc.
$ 277
$ 224
$ 519
$ 381
Earnings per share attributable to BorgWarner Inc. — diluted
$ 1.34
$ 1.03
$ 2.50
$ 1.75
Weighted average shares outstanding:
Basic
203.0
216.3
204.2
216.7
Diluted
206.3
218.2
207.3
218.1
BorgWarner Inc.
Net Sales by Reportable Segment (Unaudited)
(in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Turbos & Thermal Technologies
$ 1,442
$ 1,481
$ 2,875
$ 2,935
Drivetrain & Morse Systems
1,455
1,429
2,877
2,790
PowerDrive Systems
665
581
1,252
1,142
Battery Energy Systems
100
159
202
309
Inter-segment eliminations
(14)
(12)
(25)
(23)
Net sales
$ 3,648
$ 3,638
$ 7,181
$ 7,153
Segment Adjusted Operating Income (Loss) (Unaudited)
(in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Turbos & Thermal Technologies
$ 225
$ 227
$ 439
$ 462
Drivetrain & Morse Systems
277
260
537
503
PowerDrive Systems
(29)
(33)
(65)
(76)
Battery Energy Systems
(2)
(12)
(4)
(34)
Segment Adjusted Operating Income
471
442
907
855
Corporate, including stock-based compensation
58
69
122
130
Restructuring expense
21
17
39
48
Intangible asset amortization expense
14
16
30
33
Accelerated depreciation
7
21
9
21
Adjustments associated with Spin-Off related balances
Earnings before income taxes and noncontrolling interest
$ 372
$ 284
$ 700
$ 516
Provision for income taxes
81
52
154
113
Net earnings
291
232
546
403
Net earnings attributable to noncontrolling interest
14
8
27
22
Net earnings attributable to BorgWarner Inc.
$ 277
$ 224
$ 519
$ 381
BorgWarner Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(in millions)
June 30,
2026
December 31,
2025
ASSETS
Cash and cash equivalents
$ 2,448
$ 2,313
Receivables, net
3,056
2,962
Inventories
1,232
1,207
Prepayments and other current assets
352
313
Total current assets
7,088
6,795
Property, plant and equipment, net
3,220
3,330
Other non-current assets
3,626
3,644
Total assets
$ 13,934
$ 13,769
LIABILITIES AND EQUITY
Short-term debt
$ 5
$ 5
Accounts payable
2,138
1,996
Other current liabilities
1,190
1,281
Total current liabilities
3,333
3,282
Long-term debt
3,863
3,894
Other non-current liabilities:
940
979
Total liabilities
8,136
8,155
Total BorgWarner Inc. stockholders' equity
5,621
5,442
Noncontrolling interest
177
172
Total equity
5,798
5,614
Total liabilities and equity
$ 13,934
$ 13,769
BorgWarner Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
Six Months Ended June 30,
2026
2025
OPERATING ACTIVITIES
Net cash provided by operating activities
$ 738
$ 661
INVESTING ACTIVITIES
Capital expenditures, including tooling outlays
(239)
(196)
Customer advances related to capital expenditures
6
7
Proceeds from settlement of net investment hedges, net
9
8
Payments for investments in equity securities
(2)
—
Proceeds from the sale of business, net
—
7
Proceeds from asset disposals and other, net
1
16
Net cash used in investing activities
(225)
(158)
FINANCING ACTIVITIES
Payments of notes payable
—
(5)
Repayments of debt, including current portion
(3)
(403)
Payments for purchase of treasury stock
(250)
(108)
Payments for excise tax on purchase of treasury stock
(5)
—
Payments for stock-based compensation items
(28)
(18)
Payment for business acquired, net of cash acquired
(3)
—
Payments for contingent consideration
—
(4)
Dividends paid to BorgWarner stockholders
(69)
(48)
Dividends paid to noncontrolling stockholders
(10)
(20)
Net cash used in financing activities
(368)
(606)
Effect of exchange rate changes on cash
(10)
50
Net increase (decrease) in cash and cash equivalents
135
(53)
Cash and cash equivalents at beginning of year
2,313
2,094
Cash, cash equivalents and restricted cash at end of period
$ 2,448
$ 2,041
Supplemental Information (Unaudited)
(in millions)
Six Months Ended June 30,
2026
2025
Depreciation and tooling amortization
$ 264
$ 301
Intangible asset amortization
$ 30
$ 33
Non-GAAP Financial Measures
This press release contains information about the Company's financial results that is not presented in accordance with U.S. GAAP. Such non-GAAP financial measures are reconciled to their closest U.S. GAAP financial measures below and in the Financial Results table above. The provision of these comparable U.S. GAAP financial measures for 2026 is not intended to indicate that the Company is explicitly or implicitly providing projections on those U.S. GAAP financial measures and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.
Management believes that these non-GAAP financial measures are useful to management, investors and banking institutions in their analyses of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute for any U.S. GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by the Company may not be comparable to similarly titled measures reported by other companies.
Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.
Adjusted Net Earnings
The Company defines adjusted net earnings as net earnings attributable to the Company, adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted net earnings.
Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.
Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, net of customer advances related to capital expenditures. The Company believes this measure is useful to both management and investors in evaluating the Company's ability to service and repay its debt.
Organic Net Sales Change
The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange ("FX") and net mergers, acquisitions and divestitures.
Adjusted Operating Income and Adjusted Operating Margin (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2026
2025
2026
2025
Net sales
$ 3,648
$ 3,638
$ 7,181
$ 7,153
Operating income
$ 370
$ 289
$ 706
$ 526
Operating margin
10.1 %
7.9 %
9.8 %
7.4 %
Non-comparable items:
Restructuring expense
$ 21
$ 17
$ 39
$ 48
Intangible asset amortization expense
14
16
30
33
Accelerated depreciation
7
21
9
21
Adjustments associated with Spin-Off related balances
TOLEDO, Ohio--(BUSINESS WIRE)--Owens Corning (NYSE: OC), a branded building products leader, today reported second-quarter 2026 results.
Reported Net Sales from Continuing Operations of $2.8 Billion, In Line with Prior Year Generated Net Earnings Margin from Continuing Operations of 11% and Adjusted EBITDA Margin from Continuing Operations of 24% Delivered Diluted EPS from Continuing Operations of $3.84 and Adjusted Diluted EPS from Continuing Operations of $3.93 Produced Operating Cash Flow of $398 Million and Free Cash Flow of $199 Million Returned $264 Million to Shareholders through Dividends and Share Repurchases “These outstanding second-quarter results demonstrate the strength of our reshaped company. Our performance is a direct result of our strategic pivot to build a large-scale, residential-focused building products company with unique and unifying competitive advantages across market-leading businesses,” said Chair and Chief Executive Officer Brian Chambers. “Through our strategic choices, disciplined execution, and continued investment, we have created multiple paths to deliver revenue, earnings, and cash flow growth. As we look ahead, we remain focused on executing our growth agenda and creating long-term value for our customers and shareholders.”
Enterprise Performance from Continuing Operations
($ in millions, except per share amounts)
Second-Quarter
Six Months
2026
2025
Change
2026
2025
Change
Net Sales
$2,756
$2,747
$9
—%
$5,021
$5,277
$(256)
(5)%
Net Earnings Attributable to OC
310
334
(24)
(7)%
348
589
(241)
(41)%
As a Percent of Net Sales
11%
12%
N/A
N/A
7%
11%
N/A
N/A
Adjusted EBITDA
660
703
(43)
(6)%
1,029
1,268
(239)
(19)%
As a Percent of Net Sales
24%
26%
N/A
N/A
20%
24%
N/A
N/A
Diluted EPS
3.84
3.91
(0.07)
(2)%
4.31
6.86
(2.55)
(37)%
Adjusted Diluted EPS
3.93
4.21
(0.28)
(7)%
5.15
7.17
(2.02)
(28)%
Operating Cash Flow1
398
327
71
22%
244
278
(34)
(12)%
Free Cash Flow1
199
129
70
54%
(188)
(123)
(65)
(53)%
1 Reflects full company performance inclusive of discontinued operations.
Enterprise Strategy Updates
In the second quarter, Owens Corning maintained a high level of safety performance with a recordable incident rate (RIR) of 0.75. Owens Corning completed the sale of its glass reinforcements business on April 30, 2026, advancing the company’s strategy to operate as a residential-focused building products leader in North America and Europe and enhancing its capital efficiency. The sale positions the company to deliver higher, more resilient margins and cash flows in support of its growth and capital allocation strategy. On July 29, Owens Corning announced the appointment of Jonathan Collins as Executive Vice President and Chief Financial Officer, effective August 10, 2026. Collins is a seasoned finance executive with strong operational expertise and a proven background in scaling rapidly evolving businesses. He succeeds Todd Fister who will assume the role of President and Chief Operating Officer and will lead the execution of key enterprise initiatives to drive growth and performance, leveraging the company’s unique OC Advantages™ to further integrate its go-to-market strategy and simplify and standardize work across the enterprise. By applying Owens Corning's proven commercial and operational playbook to unlock value for the Doors business, the company has achieved $135 million of enterprise run-rate cost synergies — exceeding its commitment to deliver $125 million by mid-2026. The company is also on track to deliver an additional $75 million of structural cost improvements through network optimization and operational efficiencies. Cash Returned to Shareholders
Owens Corning remains committed to returning $2 billion of cash to shareholders over 2025 and 2026 through dividends and share repurchases. In the second quarter, the company returned $264 million to shareholders. The company repurchased 1.7 million shares of common stock for $200 million and paid a quarterly cash dividend of $64 million. At the end of the quarter, 10.8 million shares were available for repurchase under the current authorizations. “Our second-quarter performance was driven by the disciplined commercial work of our teams and the execution of company-specific initiatives to grow our revenue and improve productivity. We continue to demonstrate our ability to perform across cycles while positioning Owens Corning for even greater success as market conditions improve,” said Executive Vice President and Chief Financial and Operating Officer Todd Fister. “In the second half of the year, we are committed to maintaining our healthy balance sheet, investing in capital projects to grow our future earnings power, and returning significant cash to shareholders. We are also excited to welcome Jonathan Collins to Owens Corning to partner with our executive team to accelerate organic growth and performance."
Other Notable Highlights
Owens Corning was named to the Fortune 500 for the 72nd consecutive year. This annual list ranks the largest U.S. companies based on revenue. Owens Corning has appeared on the list every year since its inception. In May, Owens Corning published its 2025 Sustainability Report, Built to Sustain, which outlined the company’s ongoing commitment to sustainability and innovation in support of its business objectives and meeting customer needs. This marks the 20th annual sustainability report from Owens Corning. Second-Quarter Business Performance from Continuing Operations
Owens Corning reported resilient earnings in the current demand environment, with an enterprise adjusted EBITDA margin of 24%. Second-quarter results were supported by demand for the company’s high-performing branded building products, reflecting the strength of its market-leading positions and differentiated commercial capabilities. Segment Results ($ in millions)
Net Sales
EBITDA
EBITDA Margin
Q2 2026
Q2 2025
Q2 2026
Q2 2025
Q2 2026
Q2 2025
Roofing
$1,313
$1,303
$441
$457
34%
35%
Insulation
971
934
213
225
22%
24%
Doors
513
554
57
75
11%
14%
Third-Quarter Outlook
The key economic factors that impact the company’s business are residential repair activity, residential remodeling activity, U.S. housing starts, and commercial construction activity. Owens Corning expects discretionary remodeling activity and residential new construction to remain under some pressure. In roofing, the company expects seasonal storm demand to be in line with historical averages, while heavier second-quarter inventory stocking is expected to impact third-quarter distributor purchases. Non-residential construction activity in North America is expected to remain stable, and conditions in the company's core European markets are anticipated to gradually improve. Owens Corning anticipates inflationary impact from the Iran conflict to result in incremental costs of approximately $40 million in the third quarter. For the third-quarter 2026, Owens Corning expects to continue delivering strong financial performance based on structural improvements made to the company and its market-leading positions. Revenue is expected to be approximately $2.6 billion to $2.7 billion, slightly below the prior year. The company expects to generate enterprise adjusted EBITDA margin of approximately 20% to 22%. Current 2026 Financial Outlook
General Corporate EBITDA Expenses
$245 million to $255 million
Interest Expense
$255 million to $265 million
Effective Tax Rate on Adjusted Earnings
24% to 26%*
Capital Additions
Approximately $800 million
Depreciation and Amortization
Approximately $680 million
* Cash taxes are anticipated to be lower.
Second-Quarter 2026 Conference Call and Presentation
Wednesday, August 5, 2026
9 a.m. Eastern Time
All Callers
Live dial-in telephone number: U.S. and Canada 1.833.461.5787; and other international locations +1.585.542.9983 Meeting code: 845257538 (Please dial in 10-15 minutes before conference call start time) Live webcast: https://events.q4inc.com/attendee/845257538 Webcast replay will be available for one year using the above link. About Owens Corning
Owens Corning is a branded building products leader with three complementary market‑leading businesses providing roofing, insulation, and doors primarily for residential markets in North America and Europe. The company operates with an integrated go‑to‑market strategy and a unique set of OC Advantages™ – including its iconic brand, unparalleled commercial strength, leading technology, and winning cost position – to help customers win and grow in the market. Owens Corning is committed to helping build better and achieve more through winning partnerships, leading performance, and engaging people. Founded in 1938 and headquartered in Toledo, Ohio, Owens Corning is listed on the New York Stock Exchange (NYSE: OC). For more information, visit www.owenscorning.com.
Use of Non-GAAP Measures
Owens Corning uses non-GAAP measures in its earnings press release that are intended to supplement investors' understanding of the company's financial information. These non-GAAP measures include EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share attributable to Owens Corning common stockholders ("adjusted EPS") from continuing operations and free cash flow. When used to report historical financial information, reconciliations of these non-GAAP measures to the corresponding GAAP measures are included in the financial tables of this press release. Specifically, see Table 2 for adjusted EBITDA from continuing operations, Table 3 for adjusted earnings from continuing operations and adjusted EPS from continuing operations, and Table 8 for free cash flow.
For purposes of internal review of Owens Corning's year-over-year operational performance, management excludes from net earnings attributable to Owens Corning certain items it believes are not representative of ongoing operations. The non-GAAP financial measures resulting from these adjustments (including adjusted EBITDA from continuing operations, adjusted earnings from continuing operations and adjusted EPS from continuing operations) are used internally by Owens Corning for various purposes, including reporting results of operations to the Board of Directors, analysis of performance, and related employee compensation measures. Management believes that these adjustments result in a measure that provides a useful representation of its operational performance; however, the adjusted measures should not be considered in isolation or as a substitute for net earnings attributable to Owens Corning as prepared in accordance with GAAP.
Free cash flow is a non-GAAP liquidity measure used by investors, financial analysts and management to help evaluate the company's ability to generate cash to pursue opportunities that enhance shareholder value. The company defines free cash flow as net cash flow provided by operating activities, less cash paid for property, plant and equipment. Free cash flow is not a measure of residual cash flow available for discretionary expenditures due to the company's mandatory debt service requirements. Free cash flow is used internally by the company for various purposes, including reporting results of operations to the Board of Directors of the company and analysis of performance.
Management believes that these measures provide a useful representation of our operational performance and liquidity; however, the measures should not be considered in isolation or as a substitute for net cash flow provided by operating activities or net earnings attributable to Owens Corning as prepared in accordance with GAAP.
When the company provides forward-looking expectations for non-GAAP measures, the most comparable GAAP measures and a reconciliation between the non-GAAP expectations and the corresponding GAAP measures are generally not available without unreasonable effort due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP measures in future periods. The variability in timing and amount of adjusting items could have significant and unpredictable effect on our future GAAP results.
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. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements. These risks, uncertainties and other factors include, without limitation: levels of residential and non-residential construction activity; demand for our products; industry and economic conditions including, but not limited to, supply chain disruptions, recessionary conditions, inflationary pressures, and interest rate and financial markets volatility; additional changes to tariff, trade or investment policies or laws by the United States, or similar actions, including reciprocal actions, by foreign governments; availability and cost of energy and raw materials; competitive and pricing factors; relationships with key customers and customer concentration in certain areas; our ability to achieve expected synergies, cost reductions and/or productivity improvements; issues related to acquisitions, divestitures and joint ventures or expansions; climate change, weather conditions and storm activity; legislation and related regulations or interpretations in the United States or elsewhere; domestic and international economic and political conditions, policies or other governmental actions, as well as war and civil disturbance; uninsured losses or major manufacturing disruptions, including those from natural disasters, catastrophes, pandemics, theft or sabotage; environmental, product-related or other legal and regulatory liabilities, proceedings or actions; research and development activities and intellectual property protection; issues involving implementation and protection of information technology systems; foreign exchange and commodity price fluctuations; our level of indebtedness; our liquidity and the availability and cost of credit; the level of fixed costs required to run our business; levels of goodwill or other indefinite-lived intangible assets; loss of key employees and labor disputes or shortages; defined benefit plan funding obligations; and factors detailed from time to time in the company’s filings with the U.S. Securities and Exchange Commission. This information speaks as of August 5, 2026, and is subject to change. The company does 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 federal securities laws. Any distribution of this news release after that date is not intended and should not be construed as updating or confirming such information.
Owens Corning Company News / Owens Corning Investor Relations News
Table 1
Owens Corning and Subsidiaries
Consolidated Statements of Earnings
(unaudited)
(in millions, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
NET SALES
$
2,756
$
2,747
$
5,021
$
5,277
COST OF SALES
1,963
1,889
3,718
3,694
Gross margin
793
858
1,303
1,583
OPERATING EXPENSES
Marketing and administrative expenses
252
263
510
524
Science and technology expenses
35
37
72
72
Loss on sale of business
—
24
—
26
Other expense, net
24
29
119
49
Total operating expenses
311
353
701
671
OPERATING INCOME
482
505
602
912
Non-operating income
—
—
—
—
EARNINGS FROM CONTINUING OPERATIONS BEFORE INTEREST AND TAXES
482
505
602
912
Interest expense, net
69
63
135
127
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
413
442
467
785
Income tax expense
102
110
117
198
Equity in net earnings of affiliates
—
1
—
1
NET EARNINGS FROM CONTINUING OPERATIONS
311
333
350
588
Net (loss) earnings from discontinued operations attributable to Owens Corning, net of tax
(84
)
29
(227
)
(319
)
NET EARNINGS
$
227
$
362
$
123
$
269
NET EARNINGS FROM CONTINUING OPERATIONS
$
311
$
333
$
350
$
588
Net earnings (loss) attributable to noncontrolling interests
1
(1
)
2
(1
)
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO OWENS CORNING
310
334
348
589
Net (loss) earnings from discontinued operations attributable to Owens Corning, net of tax
(84
)
29
(227
)
(319
)
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING
$
226
$
363
$
121
$
270
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
Basic - continuing operations
$
3.86
$
3.93
$
4.32
$
6.90
Basic - discontinued operations
$
(1.05
)
$
0.34
$
(2.82
)
$
(3.74
)
Basic
$
2.81
$
4.27
$
1.50
$
3.16
Diluted - continuing operations
$
3.84
$
3.91
$
4.31
$
6.86
Diluted - discontinued operations
$
(1.04
)
$
0.34
$
(2.81
)
$
(3.71
)
Diluted
$
2.80
$
4.25
$
1.50
$
3.15
Table 2
Owens Corning and Subsidiaries
EBITDA Reconciliation Schedules
(unaudited)
Adjusting (expense) income items to EBITDA are shown in the table below:
(a) This gain relates to the sale of a site that was part of a previous restructuring action in the Roofing segment.
The reconciliation from Net earnings from continuing operations attributable to Owens Corning to Adjusted EBITDA from continuing operations is shown in the table below:
Three Months Ended June 30,
Six Months Ended June 30,
(In millions)
2026
2025
2026
2025
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO OWENS CORNING
$
310
$
334
$
348
$
589
Net earnings (loss) attributable to noncontrolling interests
1
(1
)
2
(1
)
NET EARNINGS FROM CONTINUING OPERATIONS
311
333
350
588
Equity in net earnings of affiliates
—
1
—
1
Income tax expense
102
110
117
198
EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES
413
442
467
785
Interest expense, net
69
63
135
127
EARNINGS FROM CONTINUING OPERATIONS BEFORE INTEREST AND TAXES
482
505
602
912
Less: Adjusting items from above
(3
)
(26
)
(78
)
(25
)
Depreciation & Amortization
175
172
349
331
ADJUSTED EBITDA FROM CONTINUING OPERATIONS
$
660
$
703
$
1,029
$
1,268
Net sales
$
2,756
$
2,747
$
5,021
$
5,277
ADJUSTED EBITDA as a % of Net sales
24
%
26
%
20
%
24
%
Table 3
Owens Corning and Subsidiaries
EPS Reconciliation Schedules
(unaudited)
(in millions, except per share data)
A reconciliation from Net earnings from continuing operations attributable to Owens Corning to adjusted earnings from continuing operations and a reconciliation from diluted earnings from continuing operations per share to adjusted diluted earnings from continuing operations per share are shown in the tables below:
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
RECONCILIATION TO ADJUSTED EARNINGS FROM CONTINUING OPERATIONS
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO OWENS CORNING
$
310
$
334
$
348
$
589
Adjustment to remove adjusting items and other adjustments (a)
3
26
78
25
Adjustment to remove adjusting items for depreciation and amortization (b)
7
9
12
9
Adjustment to remove tax (benefit)/expense on adjusting items and other adjustments (c)
(5
)
(8
)
(23
)
(8
)
Adjustment to tax expense/(benefit) to reflect pro forma tax rate (d)
2
(1
)
1
1
ADJUSTED EARNINGS FROM CONTINUING OPERATIONS
$
317
$
360
$
416
$
616
RECONCILIATION TO ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS FROM CONTINUING OPERATIONS
DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
$
3.84
$
3.91
$
4.31
$
6.86
Adjustment to remove adjusting items and other adjustments (a)
0.04
0.30
0.96
0.29
Adjustment to remove adjusting items for depreciation and amortization (b)
0.09
0.11
0.15
0.10
Adjustment to remove tax (benefit)/expense on adjusting items and other adjustments (c)
(0.06
)
(0.09
)
(0.28
)
(0.09
)
Adjustment to tax expense/(benefit) to reflect pro forma tax rate (d)
0.02
(0.02
)
0.01
0.01
ADJUSTED DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS FROM CONTINUING OPERATIONS
$
3.93
$
4.21
$
5.15
$
7.17
RECONCILIATION TO DILUTED SHARES OUTSTANDING
Weighted average shares outstanding used for basic earnings per share
80.3
85.0
80.5
85.4
Unvested restricted shares and performance shares
0.3
0.5
0.3
0.5
Diluted shares outstanding
80.6
85.5
80.8
85.9
Table 4
Owens Corning and Subsidiaries
Consolidated Balance Sheets
(unaudited)
(in millions, except per share data)
June 30,
December 31,
ASSETS
2026
2025
CURRENT ASSETS
Cash and cash equivalents
$
271
$
345
Receivables, less allowance of $4 at June 30, 2026 and $4 at December 31, 2025
1,508
937
Inventories
1,455
1,472
Other current assets
208
165
Current assets of discontinued operations
—
426
Total current assets
3,442
3,345
Property, plant and equipment, net
4,153
4,170
Operating lease right-of-use assets
507
507
Goodwill
1,658
1,679
Intangible assets, net
2,460
2,535
Deferred income taxes
15
10
Other non-current assets
496
480
Non-current assets of discontinued operations
—
254
TOTAL ASSETS
$
12,731
$
12,980
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
$
1,350
$
1,257
Current operating lease liabilities
85
83
Short-term debt
65
50
Long-term debt - current portion
937
435
Other current liabilities
531
613
Current liabilities of discontinued operations
—
222
Total current liabilities
2,968
2,660
Long-term debt, net of current portion
4,188
4,687
Pension plan liability
36
38
Other employee benefits liability
93
96
Non-current operating lease liabilities
454
450
Deferred income taxes
857
737
Other liabilities
324
323
Non-current liabilities of discontinued operations
—
96
Total liabilities
8,920
9,087
OWENS CORNING STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.01 per share (a)
—
—
Common stock, par value $0.01 per share (b)
1
1
Additional paid-in capital
4,253
4,256
Accumulated earnings
4,456
4,463
Accumulated other comprehensive deficit
(340
)
(437
)
Cost of common stock in treasury (c)
(4,598
)
(4,430
)
Total Owens Corning stockholders’ equity
3,772
3,853
Noncontrolling interests
39
40
Total equity
3,811
3,893
TOTAL LIABILITIES AND EQUITY
$
12,731
$
12,980
(a) 10 shares authorized; none issued or outstanding at June 30, 2026 and December 31, 2025
(b) 400 shares authorized; 135.5 issued and 79.0 outstanding at June 30, 2026; 135.5 issued and 80.2 outstanding at December 31, 2025
(c) 56.5 shares at June 30, 2026 and 55.3 shares at December 31, 2025
Table 5
Owens Corning and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Six Months Ended June 30,
2026
2025
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES
Net earnings
$
123
$
269
Adjustments to reconcile net earnings to cash provided by operating activities:
Loss on discontinued operations
175
381
Depreciation and amortization
349
331
Loss on sale of business
—
26
Deferred income taxes
93
4
Stock-based compensation expense
35
39
Gains on sale of certain precious metals
(22
)
(21
)
Other adjustments to reconcile net earnings to cash from operating activities
(7
)
(21
)
Change in operating assets and liabilities
(489
)
(707
)
Pension fund contribution
(3
)
(3
)
Payments for other employee benefits liabilities
(6
)
(5
)
Other
(4
)
(15
)
Net cash flow provided by operating activities
244
278
NET CASH FLOW PROVIDED BY (USED FOR) INVESTING ACTIVITIES
Cash paid for property, plant and equipment
(432
)
(401
)
Proceeds from sale of assets or affiliates
69
62
Proceeds from sale of Glass Reinforcements business, net of cash divested
370
—
Other
—
(8
)
Net cash flow provided by (used for) investing activities
7
(347
)
NET CASH FLOW USED FOR FINANCING ACTIVITIES
Proceeds from senior revolving credit and receivables securitization facilities
—
329
Payments on senior revolving credit and receivables securitization facilities
—
(329
)
Net proceeds from commercial paper
15
420
Payments on long-term debt
—
(29
)
Dividends paid
(127
)
(118
)
Purchases of treasury stock
(230
)
(363
)
Finance lease payments
(24
)
(22
)
Net cash flow used for financing activities
(366
)
(112
)
Effect of exchange rate changes on cash
(13
)
85
Net decrease in cash, cash equivalents and restricted cash
(128
)
(96
)
Cash, cash equivalents and restricted cash, beginning of period
407
369
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD
$
279
$
273
Table 6
Owens Corning and Subsidiaries
Segment Information
(unaudited)
Roofing
The table below provides a summary of net sales and EBITDA for the Roofing segment:
Three Months Ended June 30,
Six Months Ended June 30,
(In millions)
2026
2025
2026
2025
Net sales
$
1,313
$
1,303
$
2,273
$
2,423
% change from prior year
1
%
4
%
-6
%
3
%
EBITDA
$
441
$
457
$
672
$
789
EBITDA as a % of net sales
34
%
35
%
30
%
33
%
Insulation
The table below provides a summary of net sales and EBITDA for the Insulation segment:
Three Months Ended June 30,
Six Months Ended June 30,
(In millions)
2026
2025
2026
2025
Net sales
$
971
$
934
$
1,838
$
1,843
% change from prior year
4
%
-4
%
—
%
-5
%
EBITDA
$
213
$
225
$
380
$
450
EBITDA as a % of net sales
22
%
24
%
21
%
24
%
Doors
The table below provides a summary of net sales and EBITDA for the Doors segment:
Three Months Ended June 30,
Six Months Ended June 30,
(In millions)
2026
2025
2026
2025
Net sales
$
513
$
554
$
988
$
1,094
% change from prior year
-7
%
N/A
-10
%
N/A
EBITDA
$
57
$
75
$
91
$
143
EBITDA as a % of net sales
11
%
14
%
9
%
13
%
Table 7
Owens Corning and Subsidiaries
Corporate, Other and Eliminations
(unaudited)
Corporate, Other and Eliminations
The table below provides a summary of EBITDA for the Corporate, Other and Eliminations category:
Twilio (NYSE:TWLO – Get Free Report) is expected to be posting its Q2 2026 results after the market closes on Thursday, August 6th. Analysts expect the company to announce earnings of $1.32 per share and revenue of $1.4310 billion for the quarter. Investors may review the information on the company’s upcoming Q2 2026 earning summary page for the latest details on the call scheduled for Thursday, August 6, 2026 at 5:00 PM ET.
Twilio Price Performance Shares of NYSE TWLO opened at $193.85 on Wednesday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 4.66 and a current ratio of 4.66. The firm has a fifty day moving average of $202.37 and a 200 day moving average of $160.04. The firm has a market cap of $29.42 billion, a PE ratio of 302.89, a PEG ratio of 3.91 and a beta of 1.37. Twilio has a one year low of $91.84 and a one year high of $238.48.
Analyst Ratings Changes Several research analysts recently weighed in on the stock. Morgan Stanley restated an “overweight” rating and set a $200.00 price target on shares of Twilio in a research report on Friday, May 1st. Oppenheimer increased their target price on Twilio from $200.00 to $235.00 and gave the company an “outperform” rating in a report on Monday, May 18th. Bank of America raised Twilio from an “underperform” rating to a “buy” rating and lifted their price target for the stock from $110.00 to $190.00 in a research note on Wednesday, April 22nd. BTIG Research boosted their price target on Twilio from $215.00 to $245.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings upgraded Twilio from a “sell (d+)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. Four equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $220.59.
Get Our Latest Report on TWLO
Insider Buying and Selling In related news, CFO Aidan Viggiano sold 8,528 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $205.43, for a total value of $1,751,907.04. Following the completion of the sale, the chief financial officer owned 109,724 shares of the company’s stock, valued at approximately $22,540,601.32. This trade represents a 7.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erika Rottenberg sold 2,000 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $199.01, for a total value of $398,020.00. Following the completion of the sale, the director directly owned 30,995 shares of the company’s stock, valued at $6,168,314.95. This trade represents a 6.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,802,480 shares of company stock valued at $341,620,487 over the last ninety days. 0.21% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Twilio A number of institutional investors have recently made changes to their positions in the stock. State Street Corp lifted its stake in Twilio by 47.8% during the third quarter. State Street Corp now owns 5,879,395 shares of the technology company’s stock worth $588,469,000 after purchasing an additional 1,900,551 shares in the last quarter. Invesco Ltd. boosted its holdings in Twilio by 56.9% during the 4th quarter. Invesco Ltd. now owns 3,151,546 shares of the technology company’s stock valued at $448,276,000 after acquiring an additional 1,142,309 shares during the period. Royal Bank of Canada grew its position in Twilio by 3.9% in the 4th quarter. Royal Bank of Canada now owns 2,944,377 shares of the technology company’s stock valued at $418,808,000 after acquiring an additional 110,941 shares in the last quarter. Alyeska Investment Group L.P. grew its position in Twilio by 39.7% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,643,859 shares of the technology company’s stock valued at $264,624,000 after acquiring an additional 750,951 shares in the last quarter. Finally, SRS Investment Management LLC purchased a new stake in Twilio during the fourth quarter worth about $257,494,000. 84.27% of the stock is currently owned by institutional investors and hedge funds.
About Twilio (Get Free Report)
Twilio Inc (NYSE: TWLO) is a cloud communications platform-as-a-service (CPaaS) company that enables developers and enterprises to embed communications into web and mobile applications. Its core offering is a suite of programmable APIs that handle messaging (SMS, MMS, and chat), voice calling, video, and user authentication. Twilio’s platform is designed to help businesses build customer engagement and communication workflows without managing telecommunications infrastructure directly.
The company’s product portfolio includes programmable voice and messaging APIs, Twilio Video for real‑time video applications, and Twilio Authy for multi‑factor authentication.
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