Amazon ukázal, že masivní investice do umělé inteligence už přinášejí výnosy: tržby ve 2. čtvrtletí vzrostly o 20 % na 200,6 miliardy USD a provozní zisk o 43 % na 27,5 miliardy USD. Tržby AWS stouply o 37 % na 42,2 miliardy USD.
After delivering strong earnings but receiving mixed initial reactions, the hyperscalers are suddenly surging. Amazon ((AMZN - Free Report) ) and Microsoft ((MSFT - Free Report) ) have rallied roughly 20%–25% from their pre-earnings levels, while Alphabet ((GOOGL - Free Report) ) and Meta Platforms ((META - Free Report) ) have recovered sharply from their post-report lows. What began as another round of anxiety over runaway AI spending has quickly turned into renewed enthusiasm for the companies building the infrastructure behind the boom.
At the beginning of earnings season, however, investors were looking at these results through a very different lens.
Alphabet delivered what was, by almost any operating measure, an exceptional quarter. Revenue increased 24%, operating income climbed 30% and Google Cloud revenue surged 82%, with Cloud operating margins expanding to 35.6%. Yet investors focused overwhelmingly on the company’s $44.9 billion of quarterly capital expenditures and the resulting $5.9 billion free-cash-flow outflow.
Meta faced a similar reaction. Revenue increased 28% year over year, supported by a 14% increase in ad impressions and a 12% increase in average ad prices. But quarterly capital expenditures reached $31.1 billion, leaving the company with just $784 million of free cash flow, down from $8.5 billion a year earlier. Investors again treated the spending as the main story, overlooking the continued strength of the underlying business.
The central question hanging over the entire AI trade was straightforward: What kind of return can these companies ultimately earn on hundreds of billions of dollars of AI investment?
Until Amazon reported, the answer remained somewhat opaque. There were signs of accelerating demand across cloud, advertising and enterprise AI, but investors lacked a clear example connecting the enormous infrastructure buildout to both rapid revenue growth and expanding profits.
Amazon provided that example.
Second-quarter revenue increased 20% to $200.6 billion, while operating income surged 43% to $27.5 billion. More importantly, AWS revenue accelerated 37% to $42.2 billion, its fastest growth in 18 quarters, while AWS operating income jumped 64% to $16.6 billion. Despite the massive investment required to support that growth, the segment produced an operating margin of 39.4%.
The results underneath those headline numbers were even more revealing. Amazon disclosed that its AI business has surpassed a $25 billion annualized revenue run rate and continues to grow at a triple-digit percentage rate. Its custom-chip business, which includes Trainium and Graviton, has also exceeded a $25 billion run rate while growing at a triple-digit pace. AWS as a whole is now operating at a $169 billion annualized revenue rate.
That is what flipped the narrative.
Amazon is still spending aggressively, and its trailing-12-month free cash flow has fallen to a $7.6 billion outflow as infrastructure investment has surged. But the spending is no longer supported only by projections about future AI demand. It is already feeding businesses generating tens of billions of dollars in revenue, growing at exceptional rates and producing substantial operating profits.
Microsoft reinforced the same conclusion. Azure revenue increased 43% during the latest quarter, while annual Azure revenue surpassed $100 billion after growing 41% for the fiscal year. Microsoft Cloud generated $59.3 billion of quarterly revenue, up 27%, and Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million a year earlier.
We still do not have a complete answer to the AI ROI question. Amazon and Microsoft have demonstrated that the hyperscalers can monetize the infrastructure layer through cloud consumption, custom silicon, software subscriptions and enterprise services. The remaining uncertainty rests more heavily with the AI labs themselves, including OpenAI, Anthropic and their competitors where the ultimate margins, pricing power and economics of training and serving increasingly capable models remain less visible.
But the burden of proof has shifted. The hyperscalers are no longer merely promising that AI investment will eventually produce attractive returns. Amazon just gave investors their clearest evidence yet that those returns are already beginning to appear.
Citi najala Rohan Sena z Bank of America, aby vedl pokrytí technologických služeb v investičním bankovnictví. Banka dál posiluje technologickou divizi.
Citi hired Rohan Sen from Bank of America to lead coverage of the technology services sector for its investment banking franchise, Reuters reported Monday (Aug. 3).
Sen was with Bank of America for 11 years and served as a managing director in its technology investment banking group, according to the report.
Citi has been strengthening its technology investment banking franchise. The bank hired veteran JPMorganChase banker Pankaj Goel as its co-head of technology investment banking alongside Mark Keene in 2025, and it hired five managing directors for that business in July alone, the report said.
Goel and Keene wrote in a memo announcing the hiring of Sen, per the report: “Rohan’s appointment is an important milestone in our ongoing strategy to expand our global technology banking franchise, of which technology service is a highly strategic focus area globally.”
It was reported in February that Citi assembled an AI Infrastructure Banking team made up of leaders from its investment banking and corporate teams, who would keep the existing titles and work with other teams across the organization to supply capital for artificial intelligence infrastructure projects.
The team is focused on helping the bank win more business advising and lending to investors and companies involved in the build-out of data centers, computing and other AI infrastructure, according to the report.
In September, it was reported that Citi expected AI infrastructure spending by Big Tech to surpass $2.8 trillion through 2029, a figure that was up from the bank’s earlier projection of $2.3 trillion.
It was reported in April that Citi increased its global AI market forecast amid rising enterprise adoption and expects that market to exceed $4.2 trillion by 2030. The bank said nearly half that total, $1.9 trillion, would be related to enterprise AI.
Citi’s earlier forecast had put the global AI market at $3.5 trillion, with around $1.2 trillion driven by enterprise AI.
The bank said that Anthropic’s annualized revenue run rate was making one of the fastest growth trajectories in the history of the tech world and that 80% of the AI company’s revenue is from its enterprise clients.
JPMorgan Chase do roku 2035 investuje 750 miliard USD do podpory dostupného bydlení a pomoci 500 000 Američanům koupit domov. Financování má vytvořit nebo zachovat 1 milion jednotek dostupného bydlení.
JPMorgan Chase says it’s investing a whopping $750 billion through 2035 to help millions of Americans buy homes as many report the economic milestone slipping further out of reach.
The nation’s largest bank said the financing will build or preserve 1 million affordable housing units and help half a million customers purchase homes as part of its “American Dream Initiative” unveiled earlier this year, which aims to support small businesses and other economic pillars.
“An affordable and resilient housing market is essential to driving economic growth and increasing opportunity,” Michelle Herrick, JPMorgan’s head of commercial real estate, said in a Monday statement.
JPMorgan Chase on Monday announced plans to invest a whopping $750 billion through 2035 to help millions of Americans buy homes. tamas – stock.adobe.com The bank said it plans to help those 500,000 customers – including 200,000 first-time homebuyers – purchase houses by ramping up mortgage lending by more than 40% and hiring 850 new Home Lending Advisors.
It has carved out funding specifically for housing projects in the San Francisco area priced within reach of middle-income households, including nearly $200 million in financing for a 342-unit building on the waterfront, according to the bank.
JPMorgan CEO Jamie Dimon, who has led the bank for two decades, has long sounded the alarm over the future of the economy — specifically housing affordability issues in cities like New York City and San Francisco.
In June, the median price of existing homes reached a staggering $440,660, while the median age of first-time homebuyers last year jumped to 40 — the highest age on record, according to the National Association of Realtors.
In the New York City metro area, the crisis is even worse, with the median age of a homebuyer hitting 58.8 years old – just a few years shy of Social Security eligibility.
“Homeownership has always been at the heart of the American Dream. Owning a home can transform lives – providing stability, helping families build wealth, and creating a sense of community,” Sean Grzebin, CEO of Chase Home Lending, said in a statement Monday.
“Our goal is to make the path to homeownership clearer and more accessible for more people, wherever they are in their financial journey.”
JPMorgan said the financing will build or preserve 1 million affordable housing units. AFP via Getty Images In May, Dimon said he had spoken to the Big Apple’s far-left Mayor Zohran Mamdani about his concerns for the city, particularly “affordable housing and child care.”
“I got to talk about affordable housing and child care. Most people want it. If you do it badly, it would be a disaster,” Dimon, a Queens native, told Fox Business Network host Maria Bartiromo. “Do it right. There are studies that can tell you how to do it right. Get people who know what they’re doing and implement proper policies.
“Good policy is free,” Dimon added. “I feel like telling the politicians, ‘Don’t try to raise more taxes or spend more money, sit down and fix policy.’”
He unveiled the bank’s American Dream Initiative in March, announcing plans to lend small businesses up to $80 billion over the next 10 years.
The multi-year effort will also focus on collaborating with states and local communities to streamline regulatory roadblocks and expand tax credit partnerships.
It will offer support to a revamped housing bill passed by Congress in June that seeks to cut red tape around environmental reviews on housing projects and remove certain building restrictions.
For the quarter ended June 2026, Exxon Mobil Holdings (XOM - Free Report) reported revenue of $116.02 billion, up 42.3% over the same period last year. EPS came in at $3.52, compared to $1.64 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $95.8 billion, representing a surprise of +21.1%. The company delivered an EPS surprise of -4.35%, with the consensus EPS estimate being $3.68.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Exxon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Oil-equivalent production per day: 4,514.00 KBOE/D versus 4,237.35 KBOE/D estimated by four analysts on average.Natural gas production available for sale per day - Europe: 274.00 Mcf/D compared to the 262.69 Mcf/D average estimate based on three analysts.Natural gas production available for sale per day - Africa: 117.00 Mcf/D versus the three-analyst average estimate of 113.79 Mcf/D.Natural gas production available for sale per day - Asia: 1,274.00 Mcf/D versus 1,147.92 Mcf/D estimated by three analysts on average.Revenues- Sales and other operating revenue- Specialty Products- Non-U.S.: $3.73 billion versus the two-analyst average estimate of $3.02 billion. The reported number represents a year-over-year change of +19.1%.Revenues- Sales and other operating revenue- Specialty Products- United States: $1.6 billion compared to the $1.66 billion average estimate based on two analysts. The reported number represents a change of +11% year over year.Revenues- Sales and other operating revenue- Upstream- United States: $8.2 billion compared to the $10.19 billion average estimate based on two analysts. The reported number represents a change of +38.1% year over year.Revenues- Sales and other operating revenue- Chemical Products- Non-U.S.: $4.34 billion versus $3.84 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +17.2% change.Revenues- Sales and other operating revenue: $114.53 billion compared to the $97.55 billion average estimate based on two analysts. The reported number represents a change of +44.1% year over year.Revenues- Other income: $595 million versus the two-analyst average estimate of $438.07 million. The reported number represents a year-over-year change of +4.9%.Revenues- Sales and other operating revenue- Specialty Products: $5.24 billion compared to the $4.68 billion average estimate based on two analysts. The reported number represents a change of +14.6% year over year.Revenues- Sales and other operating revenue- Energy Products: $89.54 billion compared to the $72.2 billion average estimate based on two analysts. The reported number represents a change of +49.3% year over year.View all Key Company Metrics for Exxon here>>>
Shares of Exxon have returned +13.4% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, invites interested parties to participate in a webcast and conference call with Jeff Ettinger, interim chief executive officer; John Ghingo, president; and Paul Kuehneman, interim chief financial officer and controller, to discuss the Company's third quarter financial results. The Company will issue its earnings release before the markets open on Thursday, Aug. 27, 2026, and will host a conference call at 8 a.m. CT (9 a.m. ET).
The live webcast, replay, and other information related to the fiscal 2026 third quarter earnings conference call will be available on the Hormel Foods investor website, investor.hormelfoods.com.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
, /PRNewswire/ -- The board of directors of Kimberly-Clark Corporation (NASDAQ: KMB) has declared a regular quarterly dividend of $1.28 per share. The dividend is payable in cash on October 2, 2026, to stockholders of record at the close of business on September 4, 2026.
Kimberly-Clark has paid a dividend for 92 consecutive years and has increased its dividend for 54 consecutive years.
About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website.
[KMB-F]
Logo - https://mma.prnewswire.com/media/648588/Kimberly_Clark_v1_Logo.jpg
Many investors would be satisfied with a dividend payout streak of 12, 20, or 30 consecutive disbursements. Keep in mind that the typical dividend is paid quarterly, so there would be a gap of several months between each payment.
Now imagine a stock that not only had a run stretching back to 1969, but one that's dispensed a dividend monthly instead of quarterly, for a hard-to-believe total of 673 distributions (including its time as a privately held business). Well, no imagination is needed because such a company exists -- veteran real estate investment trust (REIT) Realty Income (O -0.61%).
Image source: Getty Images.
Generous for good reason To be clear, Realty Income isn't constantly paying a dividend purely out of the goodness of its heart. In the U.S., since 1960, REITs have been required to distribute at least 90% of their taxable income as shareholder payouts (the requirement was raised to 95% in 1980 but returned to the original level in 2001).
This is why REITs tend to have high dividend yields, well above the current average of 1.1% for all S&P 500 index component stocks. These days, Realty Income's yield floats slightly above 5%; this crushes the S&P 500 index average and is in line with other large REITs of its type, although some specialty and distressed REITs have yields approaching or exceeding 10%.
But what investors are buying with Realty Income is a monster in the sector, with over 15,500 properties across 92 separate industries. The vast majority of these are in the company's native U.S., but at the end of the previous decade, it diversified overseas and now has assets in major European markets such as the U.K., Germany, and Spain.
The vast majority of these are rented under triple-net (NNN) lease contracts. These obligate the tenant to pay not only rent but also property taxes, insurance, and maintenance costs. Tenants are willing to accept such terms because the REIT's real estate tends to be in choice, high-traffic areas.
As a result, those tenants like to stick around. Realty Income's latest occupancy rate was a very lofty 98.9%. Not many of its properties are standing empty.
Today's Change
(
-0.61
%) $
-0.39
Current Price
$
63.48
Ever-expanding footprint With more than 15,500 revenue sources and new properties being added constantly, Realty Income is continually growing its business. In the first quarter alone, its revenue leaped 12% higher to almost $1.55 billion. Adjusted funds from operations (AFFO, widely considered to be the most accurate profitability gauge for REITs) gained 11% to $1.06 billion.
Zooming out some, thanks to growth in its legacy business and the acquisition of complementary assets, Realty Income's annual top line has nearly tripled over the past five years, from under $2.09 billion in 2021 to almost $5.76 billion last year. Not to be outdone, AFFO across that stretch advanced from $1.49 billion to $3.89 billion.
Realty Income offers the highly appealing combination of an immense, highly productive property portfolio and a dividend delivered every single month. It's more expensive on a valuation basis and has a lower yield than some other REITs, but there's a premium for size and performance. This is a very satisfying stock to own, particularly for income investors.
Palantir opět zvýšil celoroční výhled tržeb na 8,150–8,158 miliardy USD díky silné poptávce ze strany vládních i komerčních zákazníků. Akcie v obchodování po uzavření trhu vzrostly o 8 %.
The Palantir logo is seen in this illustration taken August 3, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
Aug 3 (Reuters) - Palantir Technologies (PLTR.O), opens new tab on Monday raised its annual revenue forecast again, signaling strong demand for its data analytics software from government and commercial clients, sending its shares up 8% in extended trading.
Modern warfare and geopolitical uncertainty have prompted governments to invest in advanced defense technologies such as Palantir's AI-powered battlefield software and Anduril's autonomous drones.
Learn about the latest breakthroughs in AI and tech with the Reuters Artificial Intelligencer newsletter. Sign up here.
Anduril and Palantir are working together to develop software for U.S. President Donald Trump's Golden Dome antimissile shield initiative, Reuters has reported.
"Our business is compounding at a rate and scale that we have never before witnessed," Palantir CEO Alex Karp said in a letter to shareholders.
The company, which enables government and enterprise clients to make decisions using their own data, forecast annual revenue between $8.150 billion and $8.158 billion, up from its prior range of $7.650 billion to $7.662 billion.
Palantir also raised its annual forecast for U.S. commercial revenue to more than $3.424 billion, up from its previous estimate of $3.224 billion.
"The core of our business, in the United States, continues to expand at an unrelenting and breakneck pace," Karp said.
Meanwhile, Palantir is drawing scrutiny in Europe as governments in the region grow increasingly wary about dependency on U.S. tech platforms.
The company is also challenging a decision to block a two-year, £50 million ($67.15 million) contract with the London police to use its AI systems to automate certain tasks and for evidence analysis in criminal investigations.
Palantir's third-quarter revenue forecast of between $2.160 billion and $2.164 billion was above analysts' average estimate of $2 billion, according to data compiled by LSEG.
The company reported adjusted earnings per share of 41 cents for the second quarter, beating estimates of 35 cents.
Revenue rose 93% to $1.94 billion, exceeding estimates of $1.80 billion.
($1 = 0.7446 pounds)
Reporting by Jaspreet Singh in Bengaluru and Juby Babu in Mexico City; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Palantir překonal odhady za 2. čtvrtletí v tržbách i zisku, protože poptávka po AI softwaru dál zrychluje růst. Firma zároveň zvýšila výhled na tržby, upravený provozní zisk a volný cash flow pro rok 2026.
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These 7 Stocks Are Analyst Favorites For Magnificent Earnings Growth; Google Rebounds After Sell-Off Palantir Technologies (PLTR) topped Wall Street's second-quarter earnings and revenue targets as demand for its artificial intelligence software fueled a 12th straight quarter of accelerating revenue growth. Palantir stock popped as U.S. commercial growth also reaccelerated. Further, Palantir raised 2026 guidance for revenue, adjusted operating income, and free cash flow. Heading into the Palantir earnings report, analysts mulled how big…
Alex Karp z Palantiru znovu kritizoval laboratoře zabývající se frontier AI a tvrdí, že podniky by neměly odevzdávat své duševní vlastnictví, aby mohly používat jejich modely. Palantir zároveň oznámil výnosy o 93 % vyšší než před rokem a téměř 150% růst amerického komerčního byznysu ve 2. čtvrtletí.
Palantir CEO Alex Karp doubled down on his criticism of the frontier artificial intelligence labs on Monday, arguing that enterprises shouldn't be forced to give up their intellectual property to work with model makers.
"We have people trying to drug addict us to a future they [frontier AI models] believe they control," Karp said in an exclusive interview with CNBC. "Now, I've spent a lot of time with Dario [Amodei] and the Anthropic crew. They want to tell you we have to march into a future where we own nothing, where our businesses aren't profitable, where none of us have jobs, and where our adversaries win."
Instead, Karp said, enterprises should control their own models and work with companies like Palantir that offer an application layer that sits on top of a company's stack, thereby allowing the business to keep the data in-house.
Anthropic and OpenAI have said over the last month that customer data is secure and isn't used to train their models. OpenAI went as far as to say businesses must explicitly opt in if they want their data used for model improvement.
Karp isn't buying it.
"Every enterprise we interact with, and that includes some of the biggest and most important government enterprises in the world, is saying, 'Why would we tokenmaxx [and] pay people for something that's not useful and then not control the means that allow us to advance our business while keeping the value of the business inside?" Karp said.
CNBC has reached out to Anthropic and OpenAI for comment.
Known for being outspoken and unapologetically brash, Karp was the first executive to take aim at OpenAI and Anthropic publicly in early July, blasting their token structure in viral comments on CNBC. His comments ignited a fiery debate, with many Silicon Valley and political leaders coming out in support.
"All-In" podcast co-host and tech investor Chamath Palihapitiya told "Squawk Box" in July that Karp "deserves a medal."
Read more CNBC tech newsSpaceX's post-IPO plunge sets tense backdrop for first earnings reportAmazon tops $3 trillion market cap as stock continues post-earnings surgeHugging Face CEO says China is winning the AI race and dominating on open modelsPalantir posts blowout Q2 numbers, with U.S. commercial revenue soaring nearly 150%"As Alex Karp put it, 'What the technical customers want is control over their compute, their models, their data stack, and their alpha. They want to know they own the means of production, and it's not being transferred to someone else.'" Microsoft CEO Satya Nadella wrote in a post on X on July 12. "The current regime does precisely the transfer Karp and companies fear."
JPMorgan CEO Jamie Dimon joined CNBC's "Squawk Box" on July 15 and said that while he didn't hear Karp's comments, "companies are going to be looking at how they spend their money" and looking for return on investment.
The debate has continued to rage on, and in late July, Palantir signed an open letter, alongside Nvidia, Microsoft and other companies, defending open-weight AI models as essential for national security.
Since then, investors and CEOs have shared that they are looking at ways to use open-weight and closed-source models, posing a potential threat to the large language models. Adding to that pressure is the rise of low-cost Chinese models that have been accused of distilling U.S. models.
Open-weight AI models are available for users to download, modify and run on their own infrastructure.
Karp said he doesn't see China's use of distillation to copy the U.S. models as unfair when the frontier models are basically doing the same thing.
"How do you think the models got their value? They distilled all the value of IP everywhere, including enterprise, everywhere," Karp said. "Like we're in a battle here. Those things have to work."
Karp's quest for the "global movement" of AI sovereignty as a core mission was echoed in his second-quarter letter to investors on Monday that accompanied Palantir's earnings.
"Every organization in the world is awakening to the risks of handing the creators of the language models the keys to their institutions, of letting the models loose within their homes," wrote Karp.
Palantir posted blowout earnings numbers that showed accelerating revenue growth in key areas. Overall revenue grew 93% over last year and the AI software company's U.S. commercial business jumped nearly 150% in the second quarter.
Alexandria Real Estate Equities ve 2Q26 vykázala ztrátu 0,43 USD na akcii, ale upravené FFO na akcii činilo 1,73 USD. Společnost zároveň potvrdila celoroční výhled upraveného FFO na akcii na 6,35 až 6,45 USD.
, /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the second quarter ended June 30, 2026.
KEY HIGHLIGHTS
Operating results
2Q26
2Q25
1H26
1H25
Net (loss) income attributable to Alexandria's common stockholders – diluted:
In millions
$ (73.7)
$ (109.6)
$ 286.7
$ (121.2)
Per share
$ (0.43)
$ (0.64)
$ 1.68
$ (0.71)
Funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted:
A best-in-class REIT with a high-quality and diverse tenant base, strong margins, and long lease terms
(As of or for the three months ended June 30, 2026, unless stated otherwise)
Occupancy of operating properties
86.9 %
Occupancy of operating properties, including executed leases with future occupancy
90.9 %
Percentage of annual rental revenue in effect from Megacampus platform
80 %
Percentage of annual rental revenue in effect from investment-grade or publicly
traded large cap tenants
57 %
Operating margin
69 %
Adjusted EBITDA margin
67 %
Percentage of leases containing annual rent escalations
97 %
Weighted-average remaining lease term:
Top 20 tenants
10.0
years
All tenants
7.7
years
Strong 2Q26 tenant collections(1):
2Q26 rents and receivables collected as of August 3, 2026
99.9 %
(1) Refer to "Tenant collections" under "Definitions and reconciliations" in the Supplemental Information.
Strong and flexible balance sheet with significant liquidity; top 20% credit rating ranking among all publicly traded U.S. REITs; long-duration remaining debt term (as of 6/30/26)
$21.84 billion in total market capitalization. $9.02 billion in total equity capitalization. Net debt and preferred stock to Adjusted EBITDA of 7.0x and fixed-charge coverage ratio of 3.3x for 2Q26 annualized; 4Q26 annualized targets: 5.6x–6.2x and 3.6x–4.1x, respectively. We expect improvement in our quarter-annualized net debt and preferred stock to Adjusted EBITDA ratio in 2H26 as we complete dispositions, sales of partial interests, and other capital sources. Significant liquidity of $3.60 billion and extension of our $5.0 billion unsecured senior line of credit to 2032. Only 6% of our total debt matures through 2028. 9.7-year weighted-average remaining debt term, the longest among S&P 500 REITs. Total debt and preferred stock to gross assets of 31%. Intermediate-term goal for leverage: mid-5x range. Solid 2Q26 leasing volume exceeding 1.0 million RSF
2Q26 total leasing volume surpassed 1.0 million RSF, increasing 60% from 1Q26 and exceeding the 2Q25–1Q26 quarterly average of 952,365 RSF by approximately 87,000 RSF. Includes 397,919 RSF for combined previously vacant and development and redevelopment space; second-highest amount since 2Q24, excluding the 466,598 RSF build-to-suit lease signed in 3Q25. 75% of our leasing activity during the last twelve months was generated from our existing tenant base.
Leasing Volume in RSF:
2Q26
1Q26
1H26
Leasing of development and redevelopment space
68,771
117,935
186,706
Leasing of previously vacant space
329,148
148,734
477,882
397,919
266,669
664,588
Lease renewals and re-leasing of space
640,998
380,687
1,021,685
Total leasing volume
1,038,917
647,356
1,686,273
Lease renewals and re-leasing of space:
Rental rate changes
(0.7) %
(15.0) %
(7.4) %
Rental rate changes (cash basis)
(4.3) %
(15.8) %
(9.6) %
Ongoing execution of Alexandria's capital recycling strategy
We plan to continue funding a significant portion of our capital requirements for the year ending December 31, 2026 through dispositions of land, non-core dispositions, sales of partial interests, and other capital sources.
(in millions)
Sales Price
%
Completed as of August 3, 2026
$ 170
Pending transactions subject to non-refundable deposits, signed letters of
intent, and/or sale agreement negotiations
1,159
1,329
46 %
Dispositions, sales of partial interests, and other capital sources in process
1,100
38 %
Multiple alternatives under evaluation
471
16 %
2026 guidance midpoint for dispositions, sales of partial interests, and
other capital sources
$ 2,900
We expect to allocate this capital as follows (based on guidance midpoints):
(in millions)
2026
Guidance
(Midpoint)
Construction focused on highly leased developments and lease-up of vacant space
$ 1,750
Reduction of debt to meet our leverage goal
1,675
Net cash provided by operating activities, as adjusted
(525)
$ 2,900
Occupancy and leasing progress
Operating occupancy as of March 31, 2026
87.7 %
Key changes to occupancy:
Reclassification of space at 3000 Minuteman Road from redevelopment to operating
in 2Q26, fully leased with expected occupancy in 2Q27
(0.4)
(1)
Previously disclosed 2Q26 key lease expirations with expected downtime
(0.8)
Increase in occupancy, primarily due to the commencement of leases during 2Q26
0.4
Operating occupancy as of June 30, 2026
86.9
Vacant space with executed leases and future occupancy
4.0
(2)
Operating occupancy as of June 30, 2026, including executed leases with future
occupancy
90.9 %
(1)
Refer to "Reduction of capital spend and funding needs" in this Earnings Press Release for additional details regarding the 159,947 RSF lease executed in 2Q26.
(2)
Represents executed leases aggregating 1.4 million RSF with occupancy expected upon completion of building and/or tenant improvements. The weighted-average expected occupancy date is approximately November 2026, with expected annual rental revenue of approximately $69 million. We expect 64% of the total 1.4 million RSF to be occupied by December 31, 2026. These spaces are located primarily in the Greater Boston, San Diego, and San Francisco Bay Area markets.
KEY OPERATING METRICS
Operating metrics
2Q26
1H26
Same property performance:
Net operating income changes
(10.6) %
(1)
(11.5) %
(1)
Net operating income changes (cash basis)
(8.6) %
(1)
(11.2) %
(1)
Occupancy – current-period average
87.1 %
88.2 %
Occupancy – same-period prior-year average
92.6 %
93.5 %
Refer to "Same property comparisons" and "Net operating income" under "Definitions and reconciliations" in the Supplemental Information for additional details and their respective reconciliations from the most directly comparable financial measures presented in accordance with GAAP.
(1)
The decline was due to a decrease in same property occupancy, primarily driven by previously disclosed key lease expirations with expected downtime aggregating 657,492 RSF in 1Q26 and 260,888 RSF in 2Q26, with weighted-average lease expiration dates of January 2026 and April 2026, respectively.
Reduction of capital spend and funding needs
In 2Q26, we executed a lease aggregating 159,947 RSF with an advanced technology tenant at our redevelopment project at 3000 Minuteman Road in our Greater Boston market. The lease enables us to pivot a portion of the redevelopment project from future laboratory and/or biomanufacturing use to a lower-cost advanced technology use, reducing the project's expected aggregate construction budget by approximately $80 million. We expect to deliver the 159,947 RSF of leased space in 2Q27 upon completion of building and tenant improvements. As a result, the leased space was reclassified from redevelopment to operating, reducing the redevelopment project from 431,550 RSF as of 1Q26 to 271,603 RSF as of 2Q26. We continue to evaluate the business and financial strategy for five projects aggregating 1.4 million RSF, which may allow us to further reduce future construction funding requirements within our active pipeline. As of 2Q26, we executed letters of intent aggregating 108,800 RSF for advanced technology use at our redevelopment project at 311 Arsenal Street. If we are successful in executing these potential leases, we expect to evaluate whether all or a portion of this project will be placed back into operation without the need to further redevelop for laboratory use. Non-income-producing assets for 2Q26 are 16% of gross assets, a 4% reduction since 4Q24; targeting a range of 11% to 16% by 4Q26. Alexandria's development and redevelopment pipeline delivered incremental annual net operating income of $57 million during 2Q26, with an additional $42 million anticipated to be delivered by 4Q26
During 2Q26, we placed into service one development project aggregating 426,927 RSF that is 100% occupied by Bristol Myers Squibb at 4135 Campus Point Court in our University Town Center submarket and delivered incremental annual net operating income aggregating $57 million. Annual net operating income (cash basis) from recently delivered projects is expected to increase by $40 million upon the burn-off of initial free rent, which has a weighted-average remaining period of approximately five months. 79% of the RSF in our total development and redevelopment pipeline is within our Megacampus ecosystems.
Development and Redevelopment
Projects
Incremental
Annual Net
Operating Income
RSF
Occupied/
Leased/
Negotiating
Percentage
(dollars in millions)
Placed into service in 1H26
$ 58
532,219
91 %
Expected to be placed into service:
2H26
$ 42
(1)
174,662
(2)
84 %
(3)
2027–2028
93
1,258,004
68 %
$ 135
(1)
Includes expected partial deliveries through 2026 from projects expected to stabilize in 2027–2028, including speculative future leasing that is not yet fully committed. Refer to the initial and stabilized occupancy years under "New Class A/A+ development and redevelopment properties: under construction" in the Supplemental Information for additional details.
(2)
Represents the RSF of projects expected to stabilize in 2026. Does not include RSF for partial deliveries through 2026 from projects expected to stabilize in 2027–2028.
(3)
Represents the current leased/negotiating percentage of our 174,662 RSF development project that is expected to stabilize in 4Q26.
Continued successful management of general and administrative expenses
General and administrative expenses for 2Q26 aggregated $36.9 million, an increase of $7.7 million, or 26.5%, from 2Q25, but a decrease of $7.8 million, or 17.4%, from 2Q24, reflecting the continued benefit from cost‑efficiency initiatives implemented in prior years. Some of the cost savings in 2025 were temporary, and approximately half of the cost reductions achieved in 2025 are expected to continue in 2026. Compared to 2024, we continue to expect approximately $76 million of cumulative general and administrative expense savings in 2025 and 2026 (based on the midpoint of our 2026 guidance range). For the trailing twelve months ended June 30, 2026, our general and administrative expenses represented 6.6% of net operating income, approximately half the average of other S&P 500 REITs for 2023–2025. Key capital events
In July 2026, we executed an agreement to amend our $5.0 billion unsecured senior line of credit. The amendment is expected to become effective in September 2026, upon the satisfaction of certain conditions. The amendment extends the maturity date from January 22, 2030 to January 22, 2032, including extension options that we control. In addition, the amendment reduces the applicable borrowing rate to SOFR plus 0.725% from the currently applicable SOFR plus 0.835%. In connection with the amendment, we expect to recognize a loss on early extinguishment of debt of approximately $3.3 million related to the partial write-off of unamortized loan fees in 3Q26. In April 2026, we repaid, upon maturity, $350.0 million of 3.80% unsecured senior notes payable. The repayment was funded temporarily with borrowings under our commercial paper program, which will be repaid through planned dispositions, sales of partial interests, and other capital sources included in our 2026 guidance. No gain or loss was incurred in connection with this repayment. Under our common stock repurchase program authorized in December 2025, we may repurchase up to $500.0 million of our common stock through December 31, 2026. As of June 30, 2026, no shares have been repurchased under this program and $500.0 million remains available for future share repurchases. Dividend strategy to share net cash flows from operating activities with stockholders while retaining a significant portion for reinvestment
Common stock dividend declared of $0.72 per share for 2Q26, consistent with the preceding quarter. The declared dividend per common share reflects our commitment to maintaining the strength of our balance sheet, enhancing financial flexibility, preserving liquidity, and sharing cash flows with our stockholders. Significant net cash provided by operating activities, as adjusted, retained for reinvestment aggregating $2.60 billion for the years ended December 31, 2022 through 2025 and the midpoint of our 2026 guidance range. Dividend yield of 5.4% as of June 30, 2026 and dividend payout ratio of 42% for the three months ended June 30, 2026. Investments
As of June 30, 2026: Our non-real estate investments aggregated $1.69 billion. Unrealized gains presented in our consolidated balance sheet were $223.9 million, comprising gross unrealized gains and losses aggregating $290.5 million and $66.6 million, respectively. Investment income of $133.2 million for 2Q26, presented in our consolidated statement of operations, consisted of $10.3 million of realized gains, $131.9 million of unrealized gains, and $9.0 million of impairment charges. 2026 Guidance
June 30, 2026
(Dollars in millions, except per share amounts)
Guidance for 2026 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2026. There can be no assurance that actual results will not be materially higher or lower than these expectations. Our guidance for 2026 is subject to a number of variables and uncertainties. Refer to our discussion of "forward-looking statements" in this Earnings Press Release as well as our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.
Projected 2026 Funds From Operations per Share Attributable to Alexandria's Common Stockholders – Diluted
As of 8/3/26
As of 4/27/26
Key Changes
Funds from operations per share, as adjusted(1)
$6.35 to $6.45
$6.30 to $6.50
No change to midpoint;
range narrowed by 10 cents(2)
Midpoint
$6.40
$6.40
Key Credit Metrics Targets
As of 8/3/26
As of 4/27/26
Key Changes
Net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized
5.6x to 6.2x
5.6x to 6.2x
No Change
Fixed-charge coverage ratio – 4Q26 annualized
3.6x to 4.1x
3.6x to 4.1x
As of 8/3/26
As of 4/27/26
Midpoint
Key Sources and Uses of Capital
Range
Midpoint
Certain
Completed Items
Sources of capital:
Net cash provided by operating activities, as adjusted
$ 475
$ 575
$ 525
$ 525
Dispositions, sales of partial interests, and other capital sources(3)
2,100
3,700
2,900
(3)
2,900
Total sources of capital
$ 2,575
$ 4,275
$ 3,425
$ 3,425
Uses of capital:
Construction(4)(5)
$ 1,500
$ 2,000
$ 1,750
$ 1,750
Reduction in unsecured senior debt
1,075
2,275
1,675
See below
1,675
Total uses of capital
$ 2,575
$ 4,275
$ 3,425
$ 3,425
Reduction in unsecured senior debt (included above):
Repayment of unsecured senior notes payable with 2026 maturities
$ 650
$ 650
$ 650
$
650
$ 650
Tender offers for partial principal repayments of unsecured senior notes payable
952
952
952
$
952
952
Issuance of unsecured senior notes payable
(750)
(750)
(750)
$
(750)
(750)
Unsecured senior line of credit, commercial paper, and other
223
1,423
823
823
Reduction in unsecured senior debt
$ 1,075
$ 2,275
$ 1,675
$ 1,675
Refer to "Definitions and reconciliations" in the Supplemental Information for additional details on key credit metrics.
(1)
Refer to "Funds from operations and funds from operations, as adjusted, attributable to Alexandria Real Estate Equities, Inc.'s common stockholders" under "Definitions and reconciliations" in the Supplemental Information for additional details.
(2)
Refer to "2026 and 4Q26 funds from operations per share – diluted, as adjusted" below for additional details.
(3)
For the year ending December 31, 2026, we may utilize multiple sources of capital, including land and non-core dispositions, sales of partial interests, and other capital sources, to fund (i) construction focused on highly leased developments and lease-up of vacant space, and (ii) repayment of senior unsecured debt sufficient to achieve our net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized target of 5.6x to 6.2x. We continue to evaluate available alternatives and expect to execute on varied cost-efficient sources of capital under prevailing market conditions. We do not anticipate the issuance of any common equity during the year ending December 31, 2026. As of August 3, 2026, completed dispositions aggregated $170.4 million, our share of pending dispositions and sales of partial interests subject to non-refundable deposits, signed letters of intent, or purchase and sale agreement negotiations aggregated $1.16 billion, and in-process dispositions, sales of partial interests, and other capital sources aggregated $1.10 billion, with the remaining $471.0 million representing multiple alternatives that we are currently evaluating.
(4)
We are currently evaluating our future construction spending estimates for 2027, and a number of factors could cause our preliminary estimates for 2027 to change as we refine our estimates over the next several months. As of August 3, 2026, our updated estimate of 2027 construction spending assumes a decline of $100 million to $600 million (relative to the $1.75 billion midpoint of our 2026 guidance range), resulting in an expected range of $1.15 billion to $1.65 billion, subject to market conditions. The updates to our 2027 construction spending outlook primarily reflect additional leasing activity since 1Q26, including recently executed leases and leases currently under negotiation, which has refined our expectations regarding the amount and timing of 2027 construction spending.
(5)
We expect 2027 construction spending to primarily focus on: (i) construction spending required to complete our development and redevelopment projects that are expected to stabilize through 2028 and are 71% leased, (ii) five projects under evaluation which may require significant capital to complete, and (iii) revenue- and non-revenue-enhancing capital expenditures, in order to secure leasing of vacant space and renewals and re-leasing of space at our operating properties.
As of 8/3/26
As of 4/27/26
Key Changes
to Midpoint
Key Assumptions
Low
High
Low
High
Occupancy of operating properties as of December 31, 2026
86.2 %
(1)
87.8 %
(1)
86.2 %
87.8 %
No Change
Same property performance:
Net operating income changes
(10.5) %
(1)
(8.5) %
(1)
(10.5) %
(8.5) %
Net operating income changes (cash basis)
(10.5) %
(1)
(8.5) %
(1)
(10.5) %
(8.5) %
Lease renewals and re-leasing of space:
Rental rate changes
(9.0) %
(1.0) %
(9.0) %
(1.0) %
Rental rate changes (cash basis)
(15.0) %
(7.0) %
(15.0) %
(7.0) %
Straight-line rent revenue
$ 45
$ 75
$ 55
$ 85
$10 million reduction(2)
General and administrative expenses
$ 134
$ 154
$ 134
$ 154
No Change
Capitalization of interest
$ 220
$ 260
$ 225
$ 265
$5 million reduction(3)
Interest expense
$ 260
$ 300
$ 240
$ 280
$20 million increase(4)
Realized gains on non-real estate investments(5)
$ 60
$ 90
$ 60
$ 90
No Change
(1)
Our guidance for occupancy of operating properties as of December 31, 2026, and for 2026 same property net operating income changes assumes a benefit of approximately 1% and 2%, respectively, related to a range of assets with vacancy that could potentially be sold during 2026 and/or qualify for classification as held for sale by December 31, 2026, but that had not yet met such criteria as of June 30, 2026.
(2)
Reduction driven primarily by write-offs and reserves of deferred rent related to tenant wind-downs. Our 2026 guidance continues to assume a $25 million to $30 million reduction in funds from operations related to potential tenant wind-downs, of which approximately $14 million was recognized during 1H26, including approximately $8 million recognized in 2Q26.
(3)
Reduction driven primarily by the achievement of certain milestone dates across several projects impacting 4Q26, including a potential decline related to projects for which we are evaluating business and financial strategies. Refer to the discussion of "2026 and 4Q26 funds from operations per share – diluted, as adjusted" and "Capitalization of interest" below, and "Capitalization of interest" in the Supplemental Information for additional details.
(4)
Includes: (i) an approximate $15 million increase resulting primarily from a shift of approximately six weeks in the weighted-average projected completion date of our 2026 dispositions, sales of partial interests, and other capital sources, from August 2026 to September 2026, and (ii) an approximate $5 million increase resulting primarily from the reduction in 2026 capitalization of interest in 4Q26 discussed in the footnote above.
(5)
Represents realized gains and losses included in funds from operations per share – diluted, as adjusted. Excludes unrealized gains and losses and significant gains and impairments realized on non-real estate investments, if any. Refer to "Investments" in the Supplemental Information for additional details.
2026 and 4Q26 funds from operations per share – diluted, as adjusted
On April 27, 2026, we provided a guidance range of $6.30 to $6.50 for projected 2026 funds from operations per share – diluted, as adjusted. On August 3, 2026, we narrowed this range to $6.35 to $6.45 while maintaining the midpoint of $6.40. Our outlook includes the following assumptions: The $6.40 midpoint of the guidance range for 2026 funds from operations per share – diluted, as adjusted, remains unchanged, as we expect the benefit from the later dispositions, sales of partial interests, and other capital sources to substantially offset the higher interest expense and lower capitalization of interest for 2026. The narrowed guidance range reflects additional visibility into our full-year outlook. We expect higher 3Q26 funds from operations per share – diluted, as adjusted, than previously assumed due to the approximately six-week shift in the weighted-average projected completion date of the dispositions, sales of partial interests, and other capital sources assumed at the midpoint of our 2026 guidance, from August to September 2026. During 4Q26, we expect lower capitalization of interest than previously assumed primarily driven by the achievement of certain milestone dates across several projects, including a potential decline related to projects for which we are evaluating business and financial strategies. The lower capitalized interest is expected to result in our 4Q26 funds from operations per share – diluted, as adjusted, being at the lower end of our previously provided, and now reiterated, range of $1.40 to $1.50. 1) Development-related other income
During 1H26, we recognized development fees and other related revenues of approximately $5.6 million, or $11 million annualized, most of which are expected to cease by the end of 2026 as we complete the respective projects. 2) Development and redevelopment projects under business and financial strategy evaluation
We have five development and redevelopment projects for which the business and financial strategies continue to be evaluated, including whether to continue construction of laboratory improvements, pause construction, pursue lower-investment construction alternatives (including a pivot to advanced technology use), or pursue a disposition. Refer to "New Class A/A+ development and redevelopment properties: under construction" in the Supplemental Information for additional details. If we elect to continue to pursue construction of laboratory improvements for these projects, the earliest deliveries of these projects are in 2028. If we elect to pursue lower-investment construction alternatives (including a pivot to advanced technology use), these projects could deliver earlier than 2028. The incremental capital required for alternative-use construction, and corresponding rental rates earned, are generally lower than those associated with laboratory improvements. In 2Q26, we executed a lease with an advanced technology tenant at the 3000 Minuteman Road redevelopment project in our Greater Boston market. This lease is for a lower-cost alternative use at lower rental rates and stabilized yields than our initial underwriting. Therefore, we placed one building at our 3000 Minuteman Road redevelopment project, aggregating 159,947 RSF, back into operation this quarter and included it in our operating occupancy as of June 30, 2026. Refer to the Earnings Press Release and "Leasing Activity" in the Supplemental Information for additional details. In addition, we have signed letters of intent at our 311 Arsenal Street redevelopment project for non-laboratory use, including advanced technology uses, aggregating 108,800 RSF. If we are successful in executing these potential leases for advanced technology use, we expect lower rental rates and stabilized yields than our initial underwriting. 3) Capitalization of interest
We expect average real estate basis capitalized to decline from $6.94 billion for 1H26 to an updated range of $3.4 billion to $4.9 billion for 4Q26, primarily driven by the achievement of certain milestone dates across several projects due to deliveries of development and redevelopment projects, deliveries of leased vacant space under construction, and pauses in construction and pre-construction activities, including a potential decline related to projects for which we are evaluating business and financial strategies. The updated range for 4Q26 represents a $400 million reduction (at the midpoint) from the projected range of $3.8 billion to $5.3 billion that was previously disclosed on April 27, 2026. Refer to "Capitalization of interest" in the Supplemental Information for additional details. At each milestone date, we evaluate, on an asset-by-asset basis, whether to (i) proceed with additional pre-construction and/or construction activities based on leasing demand and/or market conditions, (ii) pause future investments, or (iii) consider potential dispositions of these real estate assets. If we cease the activities necessary to prepare a project for its intended use, costs related to such project, including interest, payroll, property taxes, insurance, and other costs directly related and essential to the construction of Class A/A+ properties, are expensed as incurred. Annualized capitalized operating expenses and payroll represent approximately 2% and 1%, respectively, of the total average real estate basis subject to capitalization for 1H26. 4) 2Q26 Key lease expirations
We estimate 451 thousand RSF and 1.4 million RSF of leases expiring in 2026 and 2027 with approximately $18.1 million and $100.5 million of annual rental revenue, respectively, to have downtime after lease expiration. These 2026 and 2027 expirations have weighted-average contractual lease expiration dates of August 2026 and March 2027, respectively, and expected weighted-average downtime of 12 to 24 months. Refer to "Contractual lease expirations" in the Supplemental Information for additional details. Key Lease Expirations
RSF
Annual Rental
Revenue
Weighted-Average
Expiration Date
Weighted-Average
Downtime
2026
451,450
$18.1 million
August 2026
12 to 24 months
2027
1,377,960
$100.5 million
March 2027
12 to 24 months
5) Dispositions, sales of partial interests, and other capital sources
We may utilize multiple sources of capital, including land dispositions, non-core dispositions, sales of partial interests, and other capital sources to support the achievement of our leverage ratio targets beyond 2026, given (i) key lease expirations in 2027 with downtime and the factors previously described that could negatively impact EBITDA, (ii) construction spending required to complete our development and redevelopment projects that are expected to stabilize through 2028 and are 71% leased, and (iii) revenue- and non-revenue-enhancing capital expenditures required to secure leasing of vacant space and renewals and re-leasing of space at our operating properties. Refer to footnotes 4 and 5 under "Key sources and uses of capital" above for additional details. We expect to introduce 2027 guidance and related key assumptions, and 2027 key sources and uses of capital at our Investor Day on December 2, 2026, consistent with our historical practice.
Dispositions, Sales of Partial Interests, and Other Capital Sources
June 30, 2026
(Dollars in thousands)
Date of
Transaction
Interest
Sold
Square Footage
Capitalization
Rate
Capitalization
Rate
(Cash Basis)
Price
(Our Share)
Property
Submarket/Market
Operating
Future
Development
Completed in 2Q26 and 1H26
$ 7,350
Completed in July 2026:
Land:
3825 and 3875 Fabian Way(1)
Palo Alto/San Francisco Bay Area
7/14/26
100 %
228,000
250,000
N/A(1)
163,000
Total completed 2026 dispositions as of August 3, 2026
170,350
Our share of pending dispositions and sales of partial interests subject to non-refundable deposits,
signed letters of intent, and/or purchase and sale agreement negotiations
1,158,626
1,328,976
Dispositions, sales of partial interests, and other capital sources in process
1,100,000
Multiple alternatives under evaluation
471,024
$ 2,900,000
2026 guidance range for dispositions, sales of partial interests, and other capital sources(2)
$2,100,000 – $3,700,000
Midpoint
$ 2,900,000
Weighted-average projected completion date of 2026 dispositions, sales of partial interests, and other capital sources
September 2026
(1)
Represents one future development project aggregating 250,000 SF at 3825 Fabian Way and one operating building aggregating 228,000 RSF at 3875 Fabian Way in our Palo Alto submarket. These assets were acquired in 2019 with the intent to develop them for life science use. However, due to the project's macroeconomic outlook, the assets no longer aligned with our strategy and were sold to a residential developer. Based on 2Q26 annualized results, the assets generated approximately $6.2 million of annual net operating income.
(2)
For the year ending December 31, 2026, we may utilize multiple sources of capital, including land and non-core dispositions, sales of partial interests, and other capital sources, to fund (i) construction focused on highly leased developments and lease-up of vacant space, and (ii) repayment of senior unsecured debt sufficient to achieve our net debt and preferred stock to Adjusted EBITDA – 4Q26 annualized target of 5.6x to 6.2x. We continue to evaluate available alternatives and expect to execute on varied cost-efficient sources of capital under prevailing market conditions. We do not anticipate the issuance of any common equity during the year ending December 31, 2026.
Earnings Call Information and About the Company
June 30, 2026
We will host a conference call on Tuesday, August 4, 2026, at 2:00 p.m. Eastern Time ("ET")/11:00 a.m. Pacific Time ("PT"), which is open to the general public, to discuss our financial and operating results for the second quarter ended June 30, 2026. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 2:00 p.m. ET/11:00 a.m. PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the "For Investors" section. A replay of the call will be available for a limited time from 4:00 p.m. ET/1:00 p.m. PT on Tuesday, August 4, 2026. The replay number is (855) 669-9658 or (412) 317-0088, and the access code is 5367901.
Additionally, a copy of this Earnings Press Release and Supplemental Information for the second quarter ended June 30, 2026 is available in the "For Investors" section of our website at www.are.com or by following this link: https://www.are.com/fs/2026q2.pdf.
For any questions, please contact [email protected]; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda, chief financial officer and treasurer; or Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790.
About the Company
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus ecosystems in AAA life science and advanced technology innovation cluster locations, including Greater Boston, San Diego, the San Francisco Bay Area, Seattle, Maryland, Research Triangle, and New York City. As of June 30, 2026, Alexandria has a total market capitalization of $21.84 billion and an asset base that includes 36.0 million RSF of operating properties and 2.8 million RSF of Class A/A+ properties undergoing construction. Alexandria has a long-standing and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For more information on Alexandria, please visit www.are.com.
Forward-Looking Statements
This document includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our projected 2026 funds from operations per share, projected 2026 funds from operations per share, as adjusted, projected net operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as "forecast," "guidance," "goals," "projects," "estimates," "anticipates," "believes," "expects," "intends," "may," "plans," "seeks," "should," "targets," or "will," or the negative of those words or similar words. These forward-looking statements are based on our current expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, as well as a number of assumptions concerning future events. There can be no assurance that actual results will not be materially higher or lower than these expectations. These statements are subject to risks, uncertainties, assumptions, and other important factors that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain capital (debt, construction financing, and/or equity) or refinance debt maturities, lower than expected yields, increased interest rates and operating costs, adverse economic or real estate developments in our markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or redevelopment (including new properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to obtain LEED and other healthy building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission ("SEC"). Accordingly, you are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are made as of the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated, we assume no obligation to update this information and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.
This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a prospectus approved for that purpose. Unless otherwise indicated, the "Company," "Alexandria," "ARE," "we," "us," and "our" refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries. Alexandria®, Lighthouse Design® logo, Building the Future of Life-Changing Innovation®, That's What's in Our DNA®, Megacampus™, At the Vanguard and Heart of the Life Science Ecosystem™, Alexandria Center®, Alexandria Technology Square®, Alexandria Technology Center®, and Alexandria Innovation Center® are copyrights and trademarks of Alexandria Real Estate Equities, Inc. All other company names, trademarks, and logos referenced herein are the property of their respective owners.
Consolidated Statements of Operations
June 30, 2026
(Dollars in thousands, except per share amounts)
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
Revenues:
Income from rentals
$ 643,210
$ 653,013
$ 728,872
$ 735,849
$ 737,279
$ 1,296,223
$ 1,480,454
Other income
19,574
18,009
25,542
16,095
24,761
37,583
39,744
Total revenues
662,784
671,022
754,414
751,944
762,040
1,333,806
1,520,198
Expenses:
Rental operations
207,336
224,142
232,543
239,234
224,433
431,478
450,828
General and administrative
36,861
34,685
28,020
29,224
29,128
71,546
59,803
Interest
64,342
64,584
65,674
54,852
55,296
128,926
106,172
Depreciation and amortization
304,384
305,441
322,063
340,230
346,123
609,825
688,185
Impairment of real estate
222,470
5,499
1,717,188
323,870
129,606
227,969
161,760
Total expenses
835,393
634,351
2,365,488
987,410
784,586
1,469,744
1,466,748
Equity in earnings (losses) of unconsolidated real estate joint ventures
413
(147)
(304)
201
(9,021)
266
(9,528)
Investment income (losses)
133,227
(4,582)
(3,890)
28,161
(30,622)
128,645
(80,614)
Gain (loss) on early extinguishment of debt
—
366,435
—
(107)
—
366,435
—
Gain on sales of real estate
—
—
619,914
9,366
—
—
13,165
Net (loss) income
(38,969)
398,377
(995,354)
(197,845)
(62,189)
359,408
(23,527)
Net income attributable to noncontrolling interests
(33,814)
(36,724)
(85,521)
(34,909)
(44,813)
(70,538)
(92,414)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s
stockholders
(72,783)
361,653
(1,080,875)
(232,754)
(107,002)
288,870
(115,941)
Net income attributable to unvested restricted stock awards
(908)
(2,779)
(965)
(2,183)
(2,609)
(2,149)
(5,269)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders
$ (73,691)
$ 358,874
$ (1,081,840)
$ (234,937)
$ (109,611)
$ 286,721
$ (121,210)
Net (loss) income per share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders:
Basic
$ (0.43)
$ 2.10
$ (6.35)
$ (1.38)
$ (0.64)
$ 1.68
$ (0.71)
Diluted
$ (0.43)
$ 2.10
$ (6.35)
$ (1.38)
$ (0.64)
$ 1.68
$ (0.71)
Weighted-average shares of common stock outstanding:
Basic
170,718
170,598
170,394
170,181
170,135
170,658
170,328
Diluted
170,718
170,867
170,394
170,181
170,135
171,040
170,328
Dividends declared per share of common stock
$ 0.72
$ 0.72
$ 0.72
$ 1.32
$ 1.32
$ 1.44
$ 2.64
Consolidated Balance Sheets
June 30, 2026
(In thousands)
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
Assets
Investments in real estate
$ 29,125,895
$ 28,830,116
$ 28,689,996
$ 31,743,917
$ 32,160,600
Investments in unconsolidated real estate joint ventures
28,910
30,520
30,677
39,601
40,234
Cash and cash equivalents
470,449
418,720
549,062
579,474
520,545
Restricted cash
4,690
4,665
4,693
4,705
7,403
Tenant receivables
7,661
7,362
6,672
6,409
6,267
Deferred rent
1,209,722
1,200,047
1,179,403
1,257,378
1,232,719
Deferred leasing costs
453,761
456,405
458,311
505,241
491,074
Investments
1,685,695
1,536,419
1,501,249
1,537,638
1,476,696
Other assets
1,645,443
1,683,143
1,661,772
1,700,785
1,688,091
Total assets
$ 34,632,226
$ 34,167,397
$ 34,081,835
$ 37,375,148
$ 37,623,629
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable
$ —
$ —
$ —
$ —
$ 153,500
Unsecured senior notes payable
10,818,366
11,166,009
12,047,394
12,044,999
12,042,607
Unsecured senior line of credit and commercial paper
1,994,508
1,353,986
353,161
1,548,542
1,097,993
Accounts payable, accrued expenses, and other liabilities
2,513,526
2,154,782
2,397,073
2,432,726
2,360,840
Dividends payable
130,468
128,880
127,771
230,603
229,686
Total liabilities
15,456,868
14,803,657
14,925,399
16,256,870
15,884,626
Commitments and contingencies
Redeemable noncontrolling interests
9,119
9,234
58,788
58,662
9,612
Alexandria Real Estate Equities, Inc.'s stockholders' equity:
Common stock
1,707
1,707
1,705
1,703
1,701
Additional paid-in capital
15,585,296
15,763,321
15,497,760
16,669,802
17,200,949
Accumulated other comprehensive loss
(33,027)
(30,936)
(29,395)
(32,203)
(27,415)
Alexandria Real Estate Equities, Inc.'s stockholders' equity
15,553,976
15,734,092
15,470,070
16,639,302
17,175,235
Noncontrolling interests
3,612,263
3,620,414
3,627,578
4,420,314
4,554,156
Total equity
19,166,239
19,354,506
19,097,648
21,059,616
21,729,391
Total liabilities, noncontrolling interests, and equity
$ 34,632,226
$ 34,167,397
$ 34,081,835
$ 37,375,148
$ 37,623,629
Funds From Operations and Funds From Operations per Share
June 30, 2026
(In thousands)
The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with U.S. generally
accepted accounting principles ("GAAP"), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria's common
stockholders – diluted, and funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below:
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
Net (loss) income attributable to Alexandria's common stockholders – basic and diluted
$ (73,691)
$ 358,874
$ (1,081,840)
$ (234,937)
$ (109,611)
$ 286,721
$ (121,210)
Depreciation and amortization of real estate assets
302,238
303,296
319,865
338,182
343,729
605,534
683,110
Noncontrolling share of depreciation and amortization from consolidated real estate JVs
(31,518)
(29,473)
(39,942)
(45,327)
(36,047)
(60,991)
(69,458)
Our share of depreciation and amortization from unconsolidated real estate JVs
805
914
855
852
942
1,719
1,996
Gain on sales of real estate
—
—
(307,132)
(9,824)
—
—
(13,165)
Impairment of real estate – rental properties and land
222,470
(1)
5,499
1,439,303
323,870
131,090
227,969
131,090
Allocation to unvested restricted stock awards
(2,201)
(2,181)
(1,903)
(1,648)
(1,222)
(5,877)
(1,916)
Funds from operations attributable to Alexandria's common stockholders – diluted(2)
418,103
636,929
329,206
371,168
328,881
1,055,075
610,447
Unrealized (gains) losses on non-real estate investments
(131,933)
10,332
(98,548)
(18,515)
21,938
(121,601)
90,083
Significant realized losses on non-real estate investments
—
—
103,329
—
—
—
—
Impairment of non-real estate investments
8,998
(3)
12,448
20,181
25,139
39,216
21,446
50,396
Impairment of real estate
—
—
12,619
—
7,189
—
39,343
(Gain) loss on early extinguishment of debt
—
(366,435)
—
107
—
(366,435)
—
Acceleration of stock compensation expense due to executive officer resignation
—
—
2,455
—
—
—
—
(Decrease) increase in provision for expected credit losses on financial instruments
—
—
(341)
—
—
—
285
Allocation to unvested restricted stock awards
909
2,674
(363)
(74)
(794)
3,541
(2,116)
Funds from operations attributable to Alexandria's common stockholders – diluted, as
adjusted
$ 296,077
$ 295,948
$ 368,538
$ 377,825
$ 396,430
$ 592,026
$ 788,438
Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.
(1)
Primarily reflects impairment charges to reduce the carrying amounts of the following real estate assets classified as held for sale as of 2Q26 to their respective estimated fair values less costs to sell, including (i) $64.2 million related to a land parcel in Sorrento Mesa that is expected to be sold to a residential developer, (ii) $61.6 million, including $8.9 million attributable to foreign currency translation, related to one operating property in Canada, which was classified as held for sale following our decision to sell the asset and reallocate the substantial near-term capital that its redevelopment would have required toward other projects with greater value-creation opportunities, (iii) $28.2 million related to one land parcel and five operating properties, primarily comprising non-laboratory space, in our Sorrento Valley submarket, which were 30% occupied as of 2Q26, had a weighted-average lease term of 2.4 years, and would have required significant capital investment to convert to laboratory use, and (iv) $24.8 million related to one vacant office property, aggregating 104,956 RSF, in the Cambridge submarket of our Greater Boston market, for which we elected not to pursue a conversion to laboratory space.
(2)
Calculated in accordance with standards established by the Nareit Board of Governors.
(3)
Primarily related to two non-real estate investments in privately held entities that do not report NAV.
The following table presents a reconciliation of net income (loss) per share attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria's common stockholders – diluted, and funds from operations per share attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due to rounding.
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
Net (loss) income per share attributable to Alexandria's common stockholders – diluted
$ (0.43)
$ 2.10
$ (6.35)
$ (1.38)
$ (0.64)
$ 1.68
$ (0.71)
Depreciation and amortization of real estate assets
1.59
1.61
1.65
1.73
1.81
3.19
3.61
Gain on sales of real estate
—
—
(1.80)
(0.06)
—
—
(0.08)
Impairment of real estate – rental properties and land
1.30
0.03
8.45
1.90
0.77
1.33
0.77
Allocation to unvested restricted stock awards
(0.02)
(0.01)
(0.02)
(0.01)
(0.01)
(0.03)
(0.01)
Funds from operations per share attributable to Alexandria's common stockholders –
diluted
2.44
3.73
1.93
2.18
1.93
6.17
3.58
Unrealized (gains) losses on non-real estate investments
(0.77)
0.06
(0.58)
(0.11)
0.13
(0.71)
0.53
Significant realized losses on non-real estate investments
—
—
0.61
—
—
—
—
Impairment of non-real estate investments
0.05
0.07
0.12
0.15
0.23
0.13
0.30
Impairment of real estate
—
—
0.07
—
0.04
—
0.23
(Gain) loss on early extinguishment of debt
—
(2.14)
—
—
—
(2.14)
—
Acceleration of stock compensation expense due to executive officer resignation
—
—
0.01
—
—
—
—
Allocation to unvested restricted stock awards
0.01
0.01
—
—
—
0.01
(0.01)
Funds from operations per share attributable to Alexandria's common stockholders –
diluted, as adjusted
$ 1.73
$ 1.73
$ 2.16
$ 2.22
$ 2.33
$ 3.46
$ 4.63
Weighted-average shares of common stock outstanding – diluted
Earnings per share – diluted
170,718
170,867
170,394
170,181
170,135
171,040
170,328
Funds from operations – diluted, per share
171,210
170,867
170,504
170,305
170,192
171,040
170,390
Funds from operations – diluted, as adjusted, per share
171,210
170,867
170,504
170,305
170,192
171,040
170,390
Refer to "Definitions and reconciliations" in the Supplemental Information for additional details.
SANTA MONICA, Calif.--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended June 30, 2026.
“Q2 reflects the progress we are making to strengthen our core business and build a more durable financial foundation for Snap,” said Evan Spiegel, co-founder and CEO. “We grew revenue by 19%, expanded margins, and generated positive free cash flow while improving advertising performance and rapidly growing our direct revenue business. We remain focused on serving our 971 million monthly active users, delivering measurable value for advertisers, and investing with discipline to increase free cash flow per share over time.”
Q2 2026 Financial Summary
Revenue was $1,599 million, compared to $1,345 million in the prior year, an increase of 19% year-over-year. Net loss was $164 million, compared to $263 million in the prior year. Adjusted EBITDA was $250 million, compared to $41 million in the prior year. Operating cash flow was $176 million, compared to $88 million in the prior year. Free Cash Flow was $121 million, compared to $24 million in the prior year. Common shares outstanding was 1,682 million as of June 30, 2026, compared to 1,682 million as of June 30, 2025. Three Months Ended
June 30,
Percent
Change
Six Months Ended
June 30,
Percent
Change
2026
2025
2026
2025
(Unaudited)
(dollars in thousands, except per share amounts)
Revenue
$
1,598,993
$
1,344,930
19
%
$
3,127,784
$
2,708,147
15
%
Operating loss
$
(170,721
)
$
(259,676
)
34
%
$
(245,170
)
$
(453,522
)
46
%
Net loss
$
(163,960
)
$
(262,570
)
38
%
$
(252,911
)
$
(402,157
)
37
%
Adjusted EBITDA (1)
$
249,615
$
41,270
505
%
$
482,948
$
149,695
223
%
Net cash provided by operating activities
$
176,214
$
88,494
99
%
$
502,993
$
240,104
109
%
Free Cash Flow (2)
$
120,538
$
23,793
407
%
$
406,545
$
138,189
194
%
Diluted net loss per share attributable to common stockholders
$
(0.10
)
$
(0.16
)
38
%
$
(0.15
)
$
(0.24
)
38
%
Q3 2026 Outlook
Snap Inc. will discuss its Q3 2026 outlook during its Q2 2026 Earnings Call (details below) and in its investor letter available at investor.snap.com.
Conference Call Information
Snap Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific / 5:00 p.m. Eastern today. The live audio webcast along with supplemental information will be accessible at investor.snap.com. A recording of the webcast will also be available following the conference call.
Snap Inc. uses its websites (including snap.com and investor.snap.com) as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.
Definitions
Free Cash Flow is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment.
Common shares outstanding plus shares underlying stock-based awards includes common shares outstanding, restricted stock units, restricted stock awards, and outstanding stock options.
Adjusted EBITDA is defined as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time.
Constant Currency Revenue is defined as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. We calculate the Constant Currency Revenue percentage change using current period Constant Currency Revenue and prior period GAAP revenue.
A Daily Active User (DAU) is defined as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter.
Average Revenue Per User (ARPU) is defined as quarterly revenue divided by the average DAUs.
A Monthly Active User (MAU) is defined as a registered and logged-in Snapchat user who visits Snapchat through our applications or websites at least once during the 30-day period ending on the calendar month-end. We calculate average Monthly Active Users for a particular quarter by calculating the average of the MAUs as of each calendar month-end in that quarter.
Note: For adjustments and additional information regarding the non-GAAP financial measures and other items discussed, please see “Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” and “Supplemental Financial Information and Business Metrics.”
About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. Snap contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
Snap Inc. operates Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world, and Specs Inc., a wholly-owned subsidiary dedicated to making computing more human, in addition to Bitmoji, Saturn, and other digital services. For more information, visit snap.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding guidance, our future results of operations or financial condition, future stock repurchase programs or stock dividends, business strategy and plans, user growth and engagement, product initiatives, objectives of management for future operations, and advertiser and partner offerings, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. We caution you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends, including our financial outlook, macroeconomic uncertainty, and geo-political events and conflicts, that we believe may continue to affect our business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: our financial performance; our ability to attain and sustain profitability; our ability to generate and sustain positive cash flow; our ability to attract and retain users, partners, and advertisers; competition and new market entrants; managing our growth and future expenses; compliance with new laws, regulations, and executive actions; our ability to maintain, protect, and enhance our intellectual property; our ability to succeed in existing and new market segments; our ability to attract and retain qualified team members and key personnel; our ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures, or investments; and the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in “Risk Factors” and elsewhere in our most recent periodic report filed with the U.S. Securities and Exchange Commission, or SEC, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in our periodic report that will be filed with the SEC for the period covered by this press release and other filings that we make from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, including future developments related to geo-political events and conflicts and macroeconomic conditions, except as required by law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use the non-GAAP financial measure of Free Cash Flow, which is defined as net cash provided by (used in) operating activities, reduced by purchases of property and equipment. We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business and is a key financial indicator used by management. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.
We use the non-GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss), excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; stock-based compensation expense; payroll and other tax expense related to stock-based compensation; and certain other items impacting net income (loss) from time to time. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in Adjusted EBITDA.
We use the non-GAAP financial measure of Constant Currency Revenue, which is defined as GAAP revenue in the current period translated using the prior period average monthly exchange rates for revenue transactions in currencies other than the U.S. dollar. We calculate the Constant Currency Revenue percentage change using current period Constant Currency Revenue and prior period GAAP revenue. We report revenue on a constant-currency basis in order to facilitate period-to-period comparisons of our results without regard to the impact of fluctuating foreign currency exchange rates, which we believe is helpful to investors. However, Constant Currency Revenue is a non-GAAP financial measure, may be calculated differently from similarly titled measures used by other companies, and is not meant to be considered as an alternative or substitute for comparable measures prepared in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see “Reconciliation of GAAP to Non-GAAP Financial Measures.”
Snap Inc., “Snapchat,” and our other registered and common law trade names, trademarks, and service marks are the property of Snap Inc. or our subsidiaries.
SNAP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Cash flows from operating activities
Net loss
$
(163,960
)
$
(262,570
)
$
(252,911
)
$
(402,157
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
46,945
40,023
91,641
77,738
Stock-based compensation
263,189
251,886
513,229
499,224
Amortization of debt issuance costs and debt discount (premium)
(967
)
(550
)
(1,898
)
7,092
Losses (gains) on debt and equity securities, net
(129
)
(1,208
)
716
14,592
Gain on extinguishment of debt
—
—
—
(66,939
)
Other
10,909
12,362
16,035
11,557
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance
(67,614
)
(3,088
)
107,021
191,128
Prepaid expenses and other current assets
(14,460
)
(7,058
)
(30,730
)
(29,886
)
Operating lease right-of-use assets
15,734
13,797
30,848
27,920
Other assets
159
(2,117
)
(81
)
6,893
Accounts payable
(59,745
)
(94,203
)
(37,701
)
(59,943
)
Accrued expenses and other current liabilities
155,599
147,695
87,950
(14,873
)
Operating lease liabilities
(9,011
)
(8,492
)
(21,466
)
(25,485
)
Other liabilities
(435
)
2,017
340
3,243
Net cash provided by operating activities
176,214
88,494
502,993
240,104
Cash flows from investing activities
Purchases of property and equipment
(55,676
)
(64,701
)
(96,448
)
(101,915
)
Purchases of strategic investments
—
(20,000
)
(5,934
)
(20,000
)
Cash paid for acquisitions, net of cash acquired
(25,678
)
(35,499
)
(65,048
)
(35,499
)
Purchases of marketable securities
(213,798
)
(390,866
)
(516,158
)
(626,665
)
Sales of marketable securities
55,359
425,157
287,457
437,158
Maturities of marketable securities
216,138
301,348
429,738
565,114
Other
(500
)
—
(500
)
—
Net cash provided by (used in) investing activities
(24,155
)
215,439
33,107
218,193
Cash flows from financing activities
Proceeds from issuance of notes, net of issuance costs
—
—
—
1,473,083
Repurchases of Class A non-voting common stock
(250,465
)
(243,473
)
(600,964
)
(500,573
)
Deferred payments for acquisitions
(2,642
)
(9,562
)
(2,642
)
(67,539
)
Repurchases of convertible notes
—
—
—
(1,444,626
)
Repayment of convertible notes
—
(36,240
)
—
(36,240
)
Other
(1,799
)
(1,800
)
(3,400
)
(3,699
)
Net cash used in financing activities
(254,906
)
(291,075
)
(607,006
)
(579,594
)
Change in cash, cash equivalents, and restricted cash
(102,847
)
12,858
(70,906
)
(121,297
)
Cash, cash equivalents, and restricted cash, beginning of period
1,063,338
916,079
1,031,397
1,050,234
Cash, cash equivalents, and restricted cash, end of period
$
960,491
$
928,937
$
960,491
$
928,937
SNAP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
1,598,993
$
1,344,930
$
3,127,784
$
2,708,147
Costs and expenses:
Cost of revenue
667,885
653,333
1,333,126
1,292,912
Research and development
542,092
443,325
1,020,388
867,490
Sales and marketing
298,399
257,853
537,410
515,810
General and administrative
261,338
250,095
482,030
485,457
Total costs and expenses
1,769,714
1,604,606
3,372,954
3,161,669
Operating loss
(170,721
)
(259,676
)
(245,170
)
(453,522
)
Interest income
24,672
33,199
51,131
70,217
Interest expense
(36,941
)
(27,607
)
(73,697
)
(51,006
)
Other income (expense), net
21,502
(823
)
20,488
48,246
Loss before income taxes
(161,488
)
(254,907
)
(247,248
)
(386,065
)
Income tax expense
(2,472
)
(7,663
)
(5,663
)
(16,092
)
Net loss
$
(163,960
)
$
(262,570
)
$
(252,911
)
$
(402,157
)
Net loss per share attributable to Class A, Class B, and Class C common stockholders:
Basic
$
(0.10
)
$
(0.16
)
$
(0.15
)
$
(0.24
)
Diluted
$
(0.10
)
$
(0.16
)
$
(0.15
)
$
(0.24
)
Weighted average shares used in computation of net loss per share:
Basic
1,663,449
1,674,854
1,675,483
1,685,544
Diluted
1,663,449
1,674,854
1,675,483
1,685,544
SNAP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
June 30,
2026
December 31,
2025
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
958,848
$
1,030,435
Marketable securities
1,700,910
1,910,137
Accounts receivable, net of allowance
1,237,338
1,372,237
Prepaid expenses and other current assets
309,533
272,065
Total current assets
4,206,629
4,584,874
Property and equipment, net
586,268
578,075
Operating lease right-of-use assets
562,091
506,216
Intangible assets, net
94,306
66,613
Goodwill
1,780,133
1,720,769
Other assets
240,733
221,255
Total assets
$
7,470,160
$
7,677,802
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$
177,419
$
219,793
Operating lease liabilities
47,823
48,479
Accrued expenses and other current liabilities
1,054,528
971,627
Short-term debt, net
153,159
46,969
Total current liabilities
1,432,929
1,286,868
Long-term debt, net
3,381,448
3,489,860
Operating lease liabilities, noncurrent
643,317
557,823
Other liabilities
85,378
61,756
Total liabilities
5,543,072
5,396,307
Commitments and contingencies
Stockholders’ equity
Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 1,471,658 shares issued, 1,428,131 shares outstanding at June 30, 2026, and 3,000,000 shares authorized, 1,502,073 shares issued, 1,457,403 shares outstanding at December 31, 2025.
15
15
Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 22,523 shares issued and outstanding at June 30, 2026 and December 31, 2025.
—
—
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding at June 30, 2026 and December 31, 2025.
2
2
Treasury stock, at cost. 43,527 and 44,670 shares of Class A non-voting common stock at June 30, 2026 and December 31, 2025, respectively.
(424,577
)
(435,722
)
Additional paid-in capital
17,143,598
16,637,324
Accumulated deficit
(14,800,691
)
(13,946,816
)
Accumulated other comprehensive income
8,741
26,692
Total stockholders’ equity
1,927,088
2,281,495
Total liabilities and stockholders’ equity
$
7,470,160
$
7,677,802
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Free Cash Flow reconciliation:
Net cash provided by operating activities
$
176,214
$
88,494
$
502,993
$
240,104
Less:
Purchases of property and equipment
(55,676
)
(64,701
)
(96,448
)
(101,915
)
Free Cash Flow
$
120,538
$
23,793
$
406,545
$
138,189
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Adjusted EBITDA reconciliation:
Net loss
$
(163,960
)
$
(262,570
)
$
(252,911
)
$
(402,157
)
Add (deduct):
Interest income
(24,672
)
(33,199
)
(51,131
)
(70,217
)
Interest expense
36,941
27,607
73,697
51,006
Other expense (income), net
(21,502
)
823
(20,488
)
(48,246
)
Income tax expense
2,472
7,663
5,663
16,092
Depreciation and amortization
45,599
40,023
90,295
77,738
Stock-based compensation expense
236,680
251,886
486,720
499,224
Payroll and other tax expense related to stock-based compensation
9,552
9,037
22,598
26,255
Restructuring charges (1)
128,505
—
128,505
—
Adjusted EBITDA
$
249,615
$
41,270
$
482,948
$
149,695
Total depreciation and amortization expense by function:
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Depreciation and amortization expense (1):
Cost of revenue
$
1,384
$
1,505
$
2,847
$
2,925
Research and development
32,615
24,849
60,775
47,836
Sales and marketing
7,711
5,108
14,346
9,931
General and administrative
5,235
8,561
13,673
17,046
Total
$
46,945
$
40,023
$
91,641
$
77,738
SNAP INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except per share amounts, unaudited)
Total stock-based compensation expense by function:
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Stock-based compensation expense (1):
Cost of revenue
$
2,811
$
1,656
$
4,397
$
3,090
Research and development
193,501
166,809
367,417
323,497
Sales and marketing
47,342
48,710
92,674
103,150
General and administrative
19,535
34,711
48,741
69,487
Total
$
263,189
$
251,886
$
513,229
$
499,224
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Constant Currency Revenue reconciliation:
GAAP revenue
$
1,598,993
$
1,344,930
$
3,127,784
$
2,708,147
Effect of using prior period foreign exchange rates on current period revenue
(7,941
)
(36,358
)
Constant Currency Revenue
$
1,591,052
$
3,091,426
GAAP revenue percentage change
19
%
15
%
Constant Currency Revenue percentage change
18
%
14
%
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS
(dollars and shares in thousands, except per user amounts, unaudited)
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Cash Flows and Shares
Net cash provided by (used in) operating activities
$
151,610
$
88,494
$
146,488
$
269,578
$
326,779
$
176,214
Net cash provided by (used in) operating activities - YoY (year-over-year)
72
%
514
%
26
%
17
%
116
%
99
%
Net cash provided by (used in) operating activities - TTM (trailing twelve months)
$
476,738
$
586,609
$
617,225
$
656,170
$
831,339
$
919,059
Purchases of property and equipment
$
(37,214
)
$
(64,701
)
$
(53,044
)
$
(64,022
)
$
(40,772
)
$
(55,676
)
Purchases of property and equipment - YoY
(26
)%
24
%
20
%
33
%
10
%
(14
)%
Purchases of property and equipment - TTM
$
(181,592
)
$
(194,231
)
$
(203,234
)
$
(218,981
)
$
(222,539
)
$
(213,514
)
Free Cash Flow
$
114,396
$
23,793
$
93,444
$
205,556
$
286,007
$
120,538
Free Cash Flow - YoY
202
%
132
%
30
%
13
%
150
%
407
%
Free Cash Flow - TTM
$
295,146
$
392,378
$
413,991
$
437,189
$
608,800
$
705,545
Common shares outstanding
1,686,678
1,682,350
1,710,909
1,711,554
1,697,270
1,682,281
Common shares outstanding - YoY
3
%
2
%
2
%
1
%
1
%
—
%
Shares underlying stock-based awards
136,044
144,011
150,460
168,060
189,878
198,569
Shares underlying stock-based awards - YoY
(7
)%
—
%
13
%
24
%
40
%
38
%
Total common shares outstanding plus shares underlying stock-based awards
1,822,722
1,826,361
1,861,369
1,879,614
1,887,148
1,880,850
Total common shares outstanding plus shares underlying stock-based awards - YoY
1.9
%
1.6
%
3.1
%
3.0
%
3.5
%
3.0
%
Results of Operations
Revenue
$
1,363,217
$
1,344,930
$
1,506,839
$
1,716,461
$
1,528,791
$
1,598,993
Revenue - YoY
14
%
9
%
10
%
10
%
12
%
19
%
Revenue - TTM
$
5,529,842
$
5,638,004
$
5,772,269
$
5,931,447
$
6,097,021
$
6,351,084
Constant Currency Revenue
$
1,370,500
$
1,334,606
$
1,494,999
$
1,695,488
$
1,500,374
$
1,591,052
Constant Currency Revenue - YoY
15
%
8
%
9
%
9
%
10
%
18
%
Revenue by region (1)
North America
$
831,691
$
820,600
$
897,814
$
1,025,498
$
851,253
$
942,883
North America - YoY
12
%
7
%
5
%
6
%
2
%
15
%
North America - TTM
$
3,425,815
$
3,478,855
$
3,519,048
$
3,575,603
$
3,595,165
$
3,717,448
Europe
$
224,015
$
265,343
$
297,950
$
341,134
$
323,852
$
353,806
Europe - YoY
14
%
15
%
20
%
19
%
45
%
33
%
Europe - TTM
$
989,783
$
1,025,291
$
1,074,339
$
1,128,442
$
1,228,279
$
1,316,742
Rest of World
$
307,511
$
258,987
$
311,075
$
349,829
$
353,686
$
302,304
Rest of World - YoY
20
%
8
%
17
%
16
%
15
%
17
%
Rest of World - TTM
$
1,114,244
$
1,133,858
$
1,178,882
$
1,227,402
$
1,273,577
$
1,316,894
Operating income (loss)
$
(193,846
)
$
(259,676
)
$
(128,362
)
$
49,717
$
(74,449
)
$
(170,721
)
Operating income (loss) - YoY
42
%
(2
)%
26
%
285
%
62
%
34
%
Operating income (loss) - Margin
(14
)%
(19
)%
(9
)%
3
%
(5
)%
(11
)%
Operating income (loss) - TTM
$
(647,908
)
$
(653,609
)
$
(608,761
)
$
(532,167
)
$
(412,770
)
$
(323,815
)
Net income (loss)
$
(139,587
)
$
(262,570
)
$
(103,541
)
$
45,209
$
(88,951
)
$
(163,960
)
Net income (loss) - YoY
54
%
(6
)%
32
%
397
%
36
%
38
%
Net income (loss) - Margin
(10
)%
(20
)%
(7
)%
3
%
(6
)%
(10
)%
Net income (loss) - TTM
$
(532,353
)
$
(546,303
)
$
(496,597
)
$
(460,489
)
$
(409,853
)
$
(311,243
)
Adjusted EBITDA
$
108,425
$
41,270
$
182,038
$
357,746
$
233,333
$
249,615
Adjusted EBITDA - YoY
137
%
(25
)%
38
%
30
%
115
%
505
%
Adjusted EBITDA - Margin (2)
8
%
3
%
12
%
21
%
15
%
16
%
Adjusted EBITDA - TTM
$
571,371
$
557,664
$
607,740
$
689,479
$
814,387
$
1,022,732
SNAP INC.
SUPPLEMENTAL FINANCIAL INFORMATION AND BUSINESS METRICS (continued)
(dollars and shares in thousands, except per user amounts, unaudited)
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Other
DAU (in millions) (1)
460
469
477
474
483
493
DAU - YoY
9
%
9
%
8
%
5
%
5
%
5
%
DAU by region (in millions)
North America
99
98
98
94
92
92
North America - YoY
(1
)%
(2
)%
(3
)%
(5
)%
(7
)%
(7
)%
Europe
99
100
100
98
97
98
Europe - YoY
3
%
3
%
1
%
(1
)%
(2
)%
(2
)%
Rest of World
262
271
280
282
294
303
Rest of World - YoY
16
%
15
%
15
%
11
%
12
%
12
%
MAU (in millions)
913
932
943
946
956
971
MAU - YoY
7
%
7
%
7
%
6
%
5
%
4
%
ARPU
$
2.96
$
2.87
$
3.16
$
3.62
$
3.17
$
3.25
ARPU - YoY
5
%
—
%
2
%
5
%
7
%
13
%
ARPU by region
North America
$
8.41
$
8.33
$
9.20
$
10.88
$
9.23
$
10.26
North America - YoY
13
%
9
%
8
%
12
%
10
%
23
%
Europe
$
2.26
$
2.65
$
2.99
$
3.47
$
3.34
$
3.62
Europe - YoY
11
%
13
%
19
%
20
%
48
%
36
%
Rest of World
$
1.17
$
0.96
$
1.11
$
1.24
$
1.20
$
1.00
Rest of World - YoY
4
%
(6
)%
2
%
5
%
3
%
4
%
Employees (full-time; excludes part-time, contractors, and temporary personnel)
Snap ve 2. čtvrtletí překonal odhady tržeb i zisku a pro běžné čtvrtletí nastavil výhled na tržby nad očekávání. Akcie po výsledcích v prodlouženém obchodování vzrostly asi o 8 %.
Snap reported better-than-expected revenue and earnings for the second quarter and issued a forecast for the current period that topped analysts' estimates. The stock jumped about 8% in extended trading.
Here's how the company did compared with analysts' expectations:
Loss per share: Loss of 10 cents. That figure is not comparable to analysts' estimates.Revenue: $1.6 billion vs. $1.54 billion expected, according to LSEGGlobal daily active users: 493 million vs. 487 million expected, according to StreetAccountGlobal average revenue per user, or ARPU: $3.25 vs. $3.16 expected, according to StreetAccountRevenue in the second quarter rose 19% from $1.34 billion a year earlier, Snap said in a statement. The company's net loss narrowed to $164 million from $262.6 million, or 16 cents per share, a year ago.
Adjusted earnings came in at $250 million, ahead of the $192 million estimate, according to StreetAccount.
Snap said third-quarter sales should come in between $1.7 billion to $1.74 billion, topping analyst estimates of $1.7 billion. Adjusted earnings will be between $300 million and $350 million. The midpoint of $325 million trails StreetAccount's projections of $327 million.
Snap CEO Evan Spiegel said in an investor letter that the company "saw improving momentum in our advertising business."
"After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally," he said in the letter. Spiegel added the company got a boost from spending tied to the World Cup.
During its last earnings report in May, Snap said "large advertisers in North America remained a headwind to advertising growth," but that it was "beginning to see encouraging signs that this part of the business is improving."
While the number of global daily active users increased 5% from a year earlier, North American DAU declined 7% year over year to 92 million and was flat compared with the first quarter.
On the earnings call, Spiegel cited "progress in strengthening the core communication experience" and newer products like its Spotlight short-video feature as helping with user growth.
watch now
Spiegel added that Snap is "closely monitoring the regulatory environment, including age assurance, privacy, and online safety requirements," which he said "may affect the product experiences or user growth and engagement over time."
Snap lifted its guidance for full-year infrastructure costs by $50 million to between $1.65 billion and $1.7 billion. The company said that figure accounts for "additional investment in the AI and machine learning infrastructure needed to support revenue growth."
The company's other revenue category, which includes the Snapchat+ subscription service, rose 85% year over year to $316 million in the second quarter.
Snap revealed in June its first augmented reality glasses tailored for the broader public instead of developers. The AR glasses, dubbed Specs, will cost $2,195 with a $200 refundable deposit and are expected to ship later this year.
Spiegel said on the call that with Specs, Snap is "really approaching this investment with a lot of discipline," and is currently focusing on "the customer experience, the product quality and the ecosystem development." He said he sees cutting-edge AR glasses as "a natural form factor for the future," but acknowledged that it's going to take a while before they become mainstream.
"I think it will be towards the end of the decade before we see mass-market consumer adoption," Spiegel said. "I think things, for example, like weight and cost are going to have to come down to see unit volumes really meaningfully pick up."
Wall Street was tough on Snap's fellow online ad companies last week.
Reddit reported second-quarter earnings on Thursday that beat on the top and bottom lines, but noted in an investor letter that search-referral traffic was "choppy," stroking Wall Street's concerns about user growth and sending shares tumbling.
And Meta shares dropped after the social media giant issued a weaker-than-expected sales forecast and reported dwindling free cash flow due to its hefty spending on AI-related expenditures.
Snap CEO Evan Spiegel se na výsledkové konferenci vyhnul otázkám na předobjednávky Specs. Uvedl jen, že masové přijetí může přijít spíše blíže ke konci dekády.
Snap CEO Evan Spiegel sidestepped investors’ questions about pre-order demand for the company’s long-awaited Specs smart glasses during Monday’s earnings call, just weeks before the device’s September launch event.
“What we’re hearing from folks is really that they want to try Specs,” Spiegel told investors. “It’s obviously a high consideration purchase at $2,195. Obviously, developers and folks who are familiar with the platform really understand it and understand the technical leaps we’ve made with with this generation. I think for the broader public and consumers, it’s going to be really important for folks to go hands-on. Our upcoming launch event will be an important sort of starting point for that consumer-oriented journey.”
The company unveiled Specs in June after spending more than a decade developing the device. The wearable’s $2,195 price tag is significantly higher than most Meta Ray-Ban smart glasses, which start at around $350, but lower than Apple’s Vision Pro, which starts at $3,500.
Investors also pressed Spiegel on why he believes Snap’s strategy is financially viable for a company of its size, why it chose to go it alone rather than partner with another company, and what gives him confidence that the company can compete with Apple, Meta, and Alphabet.
Spiegel responded that Snap believes the long-term opportunity to develop the next computing platform is “enormous.”
“I think what what some folks maybe don’t understand yet, especially because Specs are so new and we’re really the first mover in this this category, is how difficult the product is to to execute from a technical perspective,” Spiegel said. “When we started innovating in the social space, we were a late entrant. So, most of the the apps at the time, whether it was Facebook or Instagram or Twitter, were already in existence, and we had to really innovate to continue to grow. What’s so unique about this opportunity for us is really that we’re a first mover, and that really plays to our strengths as an innovator.”
When asked about product-market fit, Spiegel said it will likely be closer to the end of the decade before the company sees mass-market consumer adoption.
“I think things, for example, like weight and cost are going to have to come down to see you know unit volumes really meaningfully pick up.” But we do have, I think, a real advantage here in that developers have been building on the Specs platform now for several years.”
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Aisha is a consumer news reporter at TechCrunch. Prior to joining the publication in 2021, she was a telecom reporter at MobileSyrup. Aisha holds an honours bachelor’s degree from University of Toronto and a master’s degree in journalism from Western University.
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Key Takeaways Atmos Energy's fiscal Q3 EPS is expected to rise 15.52%, with revenues up 23.73% year over year. Customer additions, Texas demand and rate implementations are expected to support distribution revenues. Infrastructure spending may aid safety, reliability and earnings, while higher costs remain a risk. Atmos Energy Corporation (ATO - Free Report) ) is scheduled to release third-quarter fiscal 2026 results on Aug 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 2.97%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Fiscal Q3 Expectations for ATOThe Zacks Consensus Estimate for earnings is pegged at $1.34 per share, indicating a year-over-year increase of 15.52%.
The Zacks Consensus Estimate for revenues is pinned at $1.04 billion, implying a year-over-year improvement of 23.73%.
The Zacks Consensus Estimate for Total consolidated distribution throughput volumes in the fiscal third quarter is pegged at 78,000 MMcf, indicating a 3.5% year-over-year increase.
Key Factors Influencing ATO’s Q3 EarningsAtmos Energy's fiscal third-quarter earnings are expected to have benefited from continued customer additions, fueled by strong economic and population growth across its service territories. Expanding residential and commercial demand, particularly in Texas, is expected to have supported natural gas distribution revenues in the fiscal third quarter.
Higher natural gas demand is expected to have supported the company's fiscal third-quarter performance. Ongoing rate implementations and constructive regulatory mechanisms are also expected to have provided a tailwind to earnings.
The company's systematic capital investments in transmission and distribution infrastructure are expected to have benefited fiscal third-quarter results. These investments likely enhanced the safety and reliability of its network while supporting earnings.
However, higher operating, maintenance and compliance costs, along with commodity price volatility, remain key risks for the to-be-reported quarter.
What Our Quantitative Model Predicts for ATOOur proven model does not predict an earnings beat for Atmos Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Atmos Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderInvestors may consider the following players from the same sector, as these also have the right combination of elements to post an earnings beat this reporting cycle.
Duke Energy Corporation (DUK - Free Report) is scheduled to report second-quarter results on Aug. 4 and is likely to have registered an earnings beat. It has an Earnings ESP of +0.16% and a Zacks Rank #3 at present.
DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.29, which implies a year-over-year increase of 3.20%.
Southwest Gas (SWX - Free Report) is scheduled to report second-quarter results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.
SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47 cents, which implies a year-over-year decrease of 11.32%.
Spire (SR - Free Report) is set to report third-quarter fiscal 2026 results on Aug 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +16.67% and a Zacks Rank #3 at present.
SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $397.87 million, which suggests a year-over-year decline of 5.70%.
Best Buy logo is seen in this illustration taken, February 11, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesAug 3 (Reuters) - Best Buy (BBY.N), opens new tab on Monday named Anne Bramman as its new CFO, effective August 19, as the consumer electronics retailer undergoes a leadership transition.
Here are more details:
Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.
Bramman takes over from Matt Bilunas; Best Buy announced in June that Bilunas would step down as CFO.
She brings more than 30 years of finance experience and most recently served as chief financial officer of consumer insights and analytics firm Circana.
Bramman is set to join a new executive leadership team under Jason Bonfig, who will succeed current CEO Corie Barry.
Best Buy, which operates more than 1,000 stores across North America, has been working to revive growth by expanding online sales, services and advertising as competition intensifies across the sector.
The company beat analyst expectations for the three months ended May 3, helped by steady demand for AI-powered smartphones and gaming consoles as well as growth in its ads and marketplace channels. It forecast second-quarter sales above Wall Street estimates.
Reporting by Koyena Das in Bengaluru; Editing by Diti Pujara
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Rivian snížil výhled kapitálových výdajů na rok 2026 o 250 milionů USD na 1,7 až 1,8 miliardy USD. Firma přitom potvrdila výhled dodat 65 000 až 70 000 vozů.
Rivian Automotive (RIVN +0.89%) remains one of my favorite growth stocks on the market today. Many investors still value the company as an EV stock. In reality, however, I think the company should be valued as an AI stock.
That's because Rivian is attempting to transform its business to take maximum advantage of its biggest growth opportunities.
Building electric vehicles can be a profitable business. Just look at what Tesla accomplished despite having a fairly limited lineup. But the future of transportation will look very different than today.
McKinsey & Co. recently surveyed more than 90 industry insiders to see how quickly these experts believe fully autonomous vehicles will be deployed. On average, the panel believes that autonomous vehicles will be the norm in most major countries by 2032. Notably, however, robotaxis will precede private autonomous vehicles.
"[T]he global rollout of robo-taxis is now expected to become reality at a large scale in 2030," the consulting group revealed. "Overall, experts expect that robo-taxis will be the first commercial application for L4 in mobility -- not privately owned cars."
Last December, Rivian announced its first "AI Day," where it revealed several key initiatives. Not only will the company be fully focused on reaching full autonomy for its vehicles, but it also aims to produce its own AI chips in-house. That's how important AI and autonomy will be for the company's future.
Increased spending on AI forced Rivian to drop its 2027 profitability targets. And yet during last month's earnings call, management announced a $250 million cut to its spending guidance. Here's how investors should process the seemingly conflicting information.
Today's Change
(
0.89
%) $
0.14
Current Price
$
15.36
Here's why Rivian is cutting spending despite ambitious AI plans During its latest earnings call, Rivian announced it would cut its 2026 capital expenditure guidance by $250 million. The new expected range for full-year spending is between $1.7 billion and $1.8 billion.
While lower-than-expected spending can be categorized as a positive, investors should question the cut in light of the company's desire to increase spending on AI and autonomy efforts.
The cut doesn't seem to stem from lower production, as the company reaffirmed its delivery target of 65,000 to 70,000 vehicles. Instead, management claims that the lower spending is the result of "project efficiencies and timing of spend."
This is a fairly vague explanation. But what the company is essentially telling investors is that the $250 million spending cut came with essentially no downsides. It was simply the result of running the business more efficiently than previously expected.
Business efficiencies may also be a euphemism for staff cuts. "The company has had multiple rounds of job cuts -- including in June -- as part of the effort to get a handle on costs," observes the BBC.
Image source: Getty Images.
Ultimately, Rivian's $250 million reduction should be viewed with cautious optimism. The company is apparently keeping a close eye on costs following a recent fundraising round, with CEO RJ Scaringe telling investors that Rivian will "be thoughtful around how rapidly we ramp up our supply chain." In other words, the company is trying to keep costs down while scaling up production of its R2 SUV, Rivian's first vehicle priced under $50,000.
The market shouldn't shun unexpected cost savings. But Rivian's ability to advance its autonomy roadmap and R2 sales ramp will be more important in the long term than short-term savings.
Medifast ve 2. čtvrtletí vykázal tržby 76,4 mil. USD a čistou ztrátu 3,1 mil. USD a uvedl, že se vrací k růstu; ve 4. čtvrtletí očekává návrat k ziskovosti.
BALTIMORE--(BUSINESS WIRE)--Medifast (NYSE: MED), the health and wellness company known for its science-backed comprehensive metabolic health system, Trilivy, today reported results for the second quarter ended June 30, 2026.
Second Quarter 2026
Revenue: $76.4 million, with revenue per active earning coach of $6,529 Independent active earning coaches of 11,700 Net loss of $3.1 million or $0.28 loss per diluted share ("EPS") Cash, Cash Equivalents, and Investment Securities of $169.8 million with no debt Nick Johnson, Chief Executive Officer, commented, “In the second quarter, we continued to see signs of a turnaround in our business. Revenue remained sequentially stable, supported by steady growth in coach productivity and positive coach leadership trends. Combined with the energy and engagement demonstrated at our recent National Coach Convention, these leading indicators have historically been precursors of future growth.
“We're building on that progress by putting new tools in our coaches' hands, with our new brand, Trilivy, our new Reset Fuelings, and our new Medifast Metabolic Health Institute. Each of these is a meaningful step in our 3.0 strategy. Backed by our Metabolic Synchronization science and coach-led model, we believe we are on track to return to profitability in the fourth quarter and have created a foundation that supports our vision for consistent, long-term growth.“
Second Quarter 2026 Results
Second quarter 2026 revenue decreased 27.6% to $76.4 million from $105.6 million for the second quarter of 2025, primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 48.7% to 11,700 compared to 22,800 for the second quarter of 2025, primarily driven by continued pressure with client acquisition reflecting broader challenges in the operating environment, including rapid adoption of GLP-1 medications for weight loss. While the company continues its transformation to focus on metabolic health, it expects the number of active earning coaches to continue to decline in 2026. The average revenue per active earning coach was $6,529, compared to $4,630 for the second quarter last year, an increase of 41.0% which was driven by greater alignment of the company's network of coaches, prioritizing productive coaches and more efficient coach network structures.
Gross profit decreased 30.3% to $53.4 million from $76.6 million for the second quarter of 2025. The decrease in gross profit was due to lower sales volumes. The company's gross profit margin was 69.9% compared to 72.6% in the second quarter of 2025. The decrease in gross profit as a percentage of revenue was primarily driven by the loss of leverage on fixed costs.
Selling, general, and administrative expenses (“SG&A”) decreased 25.7% to $57.7 million compared to $77.7 million for the second quarter of 2025. The decrease in SG&A was primarily due to a $12.6 million decrease in coach compensation on lower volume and fewer active earning coaches, a $2.3 million decrease in employee salary and benefit expenses, and a $2.0 million decrease in company-led marketing costs. As a percentage of revenue, SG&A increased 200 basis points year-over-year to 75.6% of revenue, as compared to 73.6% for the second quarter of 2025. The increase in SG&A as a percentage of revenue was primarily due to approximately 290 basis points associated with the loss of leverage on fixed costs and 60 basis points associated with the launch of the company's new Trilivy Reset product line, partially offset by a 190 basis point reduction related to company-led marketing expenses. During Q2 the company launched its Catalyst program with the majority of the execution expected to take place in Q3. The Catalyst program is designed to drive additional cost savings through facility rationalization, AI-related efficiencies and other means.
The company's loss from operations for the period was $4.3 million compared to $1.1 million in the prior year comparable period. As a percentage of revenue, loss from operations was 5.7% for the second quarter of 2026 compared to 1.0% in the prior-year comparable period due to the factors described above impacting revenue and SG&A expenses.
Other income decreased $2.6 million to $1.3 million compared to $3.9 million for the second quarter of 2025 primarily due to gains on the company's investment in LifeMD, Inc. common stock in the prior year period. The company sold its investment in LifeMD during the quarter ended June 30, 2025.
Income tax expense for the period was $0.1 million, an effective rate of negative 3.6%, as compared to $0.4 million for the second quarter of 2025, an effective rate of 13.7%. Due to the existence of a full valuation allowance against its deferred tax assets recorded as of December 31, 2025, the company calculated income tax expense for the current period based on actual results for the quarter. The decrease in the effective tax rate was primarily driven by the increased loss incurred in the June 30, 2026 period and the valuation allowance on the net deferred tax assets.
In the second quarter of 2026, the company's net loss was $3.1 million, or $0.28 per share, based on approximately 11.1 million shares of common stock outstanding compared to a net income of $2.5 million, or $0.22 per share, based on approximately 11.1 million shares of common stock outstanding in the prior year comparable period.
Capital Allocation and Balance Sheet
During the second quarter of 2026, the company executed an amendment to extend the lease and reduce the square footage for the company's Havre de Grace distribution facility, and remeasured its right-of-use asset and corresponding lease liability by $12.5 million and $12.7 million, respectively. This action is in addition to the commencement of the company's new headquarters office space during the first quarter, where the company recorded an initial right-of-use asset and corresponding lease liability of $6.8 million.
The company’s balance sheet remains strong with cash, cash equivalents and investment securities of $169.8 million and no debt as of June 30, 2026, compared to $167.3 million in cash, cash equivalents and investment securities and no debt at December 31, 2025. Working capital as defined as current assets less current liabilities as of June 30, 2026 was $160.5 million, compared to $158.7 million of working capital at December 31, 2025.
Outlook
The company expects third quarter 2026 revenue to be in the range of $60 million to $80 million and third quarter 2026 loss per share to be in the range of $0.15 to $0.65. This excludes any one-time costs associated with the execution of the company's Catalyst initiatives. The company expects full year 2026 revenue to be in the range of $270 million to $300 million and full year 2026 loss per share to range from $0.25 to $1.75.
Conference Call Information
The conference call is scheduled for today, Monday, August 3, 2026 at 4:30 p.m. ET. The call will be broadcast live over the Internet, hosted on the Investor Relations section of Medifast’s website at www.MedifastInc.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1768081&tp_key=644d7ae69f and will be archived online and available through November 3, 2026. In addition, listeners may dial (201) 389-0879 to join via telephone.
A telephonic playback will be available from 8:30 p.m. ET, August 3, 2026, through August 10, 2026. Participants can dial (412) 317-6671 and enter passcode 13761321 to hear the playback.
About Medifast®:
Medifast (NYSE: MED) is the metabolic health and wellness company known for its science-backed comprehensive metabolic health system, Trilivy. Designed to help address the challenges of metabolic dysfunction, the company’s holistic approach integrates science-backed plans and products, personal 1:1 coaching, a supportive community, and behavioral science support to develop healthy habits.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that targets metabolic dysfunction through a comprehensive system focused on fat loss, lean mass preservation, and long-term health. Trilivy's comprehensive three-part metabolic health system is designed to help people reset their metabolism, refine their health, and renew their lives. By integrating science, coaching, and healthy habits into a single approach, Trilivy helps people look, feel, and live better.
Backed by more than 45 years of clinical heritage, Medifast continues to advance its mission of lifelong transformation through metabolic science and human connectionTM. For more information, visit Trilivyhealth.com and Medifastinc.com.
MED-F
Forward Looking Statements
Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share amounts & dividend data)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Revenue
$
76,384
$
105,555
$
152,428
$
221,283
Cost of sales
22,988
28,911
47,276
60,395
Gross profit
53,396
76,644
105,152
160,888
Selling, general, and administrative
57,723
77,710
112,774
163,217
Loss from operations
(4,327
)
(1,066
)
(7,622
)
(2,329
)
Other income
Interest income
1,347
1,369
2,726
2,671
Other income (expense)
(11
)
2,572
(36
)
3,059
1,336
3,941
2,690
5,730
Income (loss) before provision for income taxes
(2,991
)
2,875
(4,932
)
3,401
Provision for income taxes
109
395
290
1,693
Net income (loss)
$
(3,100
)
$
2,480
$
(5,222
)
$
1,708
Earnings (loss) per share - basic
$
(0.28
)
$
0.23
$
(0.47
)
$
0.16
Earnings (loss) per share - diluted
$
(0.28
)
$
0.22
$
(0.47
)
$
0.15
Weighted average shares outstanding
Basic
11,135
10,991
11,071
10,970
Diluted
11,135
11,060
11,071
11,045
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(U.S. dollars in thousands, except par value)
June 30,
2026
December 31,
2025
ASSETS
Current Assets
Cash and cash equivalents
$
71,910
$
89,303
Inventories, net
21,181
20,228
Investments
97,911
77,970
Income taxes, prepaid
5,258
5,116
Prepaid expenses and other current assets
5,774
9,066
Total current assets
202,034
201,683
Property, plant and equipment, net of accumulated depreciation
27,980
31,230
Right-of-use assets
24,314
7,232
Other assets
6,073
7,828
TOTAL ASSETS
$
260,401
$
247,973
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
$
36,406
$
38,359
Current lease obligations
5,158
4,603
Total current liabilities
41,564
42,962
Lease obligations, net of current lease obligations
22,460
6,091
Total liabilities
64,024
49,053
Stockholders' Equity
Common stock, par value $.001 per share: 20,000 shares authorized; 11,181 and 10,991 issued and outstanding at June 30, 2026 and December 31, 2025, respectively
EnCap Flatrock prodává M6 Midstream společnosti Williams za až 5,5 miliardy USD. Transakce podléhá schválení regulátory a dalším obvyklým podmínkám uzavření.
SAN ANTONIO--(BUSINESS WIRE)-- EnCap Flatrock Midstream (“EnCap Flatrock”) today announced the execution of definitive agreements to sell Momentum Midstream (“Momentum,” “M6,” or the “Company”), a leading independent midstream energy company of which EnCap Flatrock is a financial sponsor, to The Williams Companies, Inc. (“Williams”) (NYSE: WMB) for up to $5.5 billion.
The transaction is subject to regulatory approval and customary closing conditions. Transaction consideration consists of $3.5 billion in cash and debt consideration and roughly $2.0 billion of Williams equity.
Headquartered in Houston, M6 operates a premier, large-scale natural gas system representing the next generation of Gulf Coast infrastructure. The Company’s assets include over 4,000 miles of gathering and transmission pipelines supported by more than 1 million dedicated acres delivering critically important natural gas to key Gulf Coast regions including the Bethel, Carthage and Silsbee hubs in east Texas and the Gillis hub in southwest Louisiana. M6’s assets provide approximately 6 Bcf/d of system capacity to over 140 customers including 34 industrial end-users, 26 power plants, 16 city gates and 10 LNG facilities.
In September 2022, M6 completed the acquisition of two natural gas gathering and transmission assets, both in the Haynesville Shale. The Company also announced final investment decision (“FID”) on its New Generation Gas Gathering (“NG3”) project, which spans 255 miles providing 1.75 Bcf/d of gas deliverability to Gillis, Louisiana, an aggregation and dispatch hub for U.S. LNG demand. NG3 also includes a state-of-the-art carbon capture and sequestration program, the first of its kind, capable of handling up to 1.8 million tons per annum of CO2. In April 2025, M6 closed on its acquisition of Clearfork Midstream, completing the Company’s transformation into a leading wellhead-to-market natural gas midstream platform located in the epicenter of U.S. natural gas demand growth.
“In 2022, we set out with a strategy to build a premier natural gas gathering and transmission system to serve growing demand along the Gulf Coast, and because of the efforts of our incredible team, we’ve done just that,” said Momentum Chief Executive Officer Frank Tsuru. “This sale validates our thesis that demand for U.S. hydrocarbons domestically and abroad will continue to grow and assets like what we’ve built at M6 are critical to meet that need.”
“The sale of M6 is one of the most significant private midstream transactions in the U.S., producing strong results for our investors,” said EnCap Flatrock Founder Billy Lemmons. “This would not have been possible without the talented and professional team at Momentum. From Momentum’s executive leadership to their field personnel, their execution of the commercialization, buildout and safe operation of such a sizeable gas gathering and transmission complex was an incredible accomplishment.”
Advisors
Barclays and Jefferies LLC served as exclusive financial advisors to M6, and Kirkland & Ellis served as legal counsel to M6. Willkie Farr & Gallagher LLP acted as legal counsel to EnCap Flatrock.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with an office in Houston, the firm has raised five institutional investment funds totaling nearly $10 billion from a broad group of prestigious investors. EnCap Flatrock Midstream is currently making commitments to new management teams from its latest flagship fund, EFM V. For more information, please visit efmidstream.com.
August 03, 2026 16:15 ET | Source: Westlake Chemical Partners LP
$0.4714 per unit distribution declared payable on August 28, 2026 HOUSTON, Aug. 03, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Westlake Chemical Partners GP LLC, the general partner of Westlake Chemical Partners LP (the "Partnership") (NYSE:WLKP), has declared a distribution of $0.4714 per unit. This is the 48th quarterly distribution announced by the Partnership since its initial public offering. The distribution will be payable on August 28, 2026, to unit holders of record on August 13, 2026.
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of the Partnership’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
About Westlake Chemical Partners LP
Westlake Chemical Partners is a limited partnership formed by Westlake Corporation to operate, acquire and develop ethylene production facilities and other qualified assets. Headquartered in Houston, the Partnership owns a 22.8% interest in Westlake Chemical OpCo LP. Westlake Chemical OpCo LP’s assets include three facilities in Calvert City, Kentucky, and Lake Charles, Louisiana which process ethane and propane into ethylene, and an ethylene pipeline. For more information about Westlake Chemical Partners LP, please visit http://www.wlkpartners.com.
Contacts
Media Inquiries:
Westlake Corp.
Ben Ederington, 1-713-585-2900
or
Investor Inquiries:
Westlake Corp.
Jonathan Baksht, 1-713-585-2900
Capital Clean Energy Carriers Corp. převzala LNG/C Alcaios I do provozu po dodání a nasadila jej do 18měsíční indexované charterové smlouvy. Loď je 15. nejnovější LNG/C ve flotile CCEC.
August 03, 2026 16:05 ET | Source: Capital Clean Energy Carriers Corp.
ATHENS, Greece, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Capital Clean Energy Carriers Corp. (NASDAQ: CCEC), an international owner of ocean-going vessels (the "Company," "CCEC," "we" or "us"), today announced that it has successfully taken delivery of the Liquefied Natural Gas Carrier ("LNG/C") 'Alcaios I’ on July 31, 2026.
Following its delivery, the LNG/C Alcaios I (HD Hyundai Samho Co., Ltd., 174,000 cubic meters (“CBM”) commenced its previously announced employment under an 18-month index-linked time charter.
The acquisition of the LNG/C Alcaios I was funded with cash on hand and $170.0 million in total proceeds raised through the refinancing of two existing sale and leaseback facilities for the LNG/Cs Aristos I and Aristarchos. The vessel was added as additional security by way of mortgage under the refinanced facilities, which have a 10-year term.
Alcaios I is the 15th latest-generation LNG/C delivered to the Company. CCEC’s under-construction fleet also includes six additional latest-generation LNG/Cs, scheduled for delivery between the first quarter of 2027 and the first quarter of 2029.
About Capital Clean Energy Carriers Corp.
Capital Clean Energy Carriers Corp. (NASDAQ: CCEC), an international shipping company, is a leading platform of gas carriage solutions with a focus on energy transition. CCEC’s in-the-water fleet includes 20 high specification vessels, including 15 latest generation LNG/Cs, one legacy Neo-Panamax container vessel, two dual-fuel medium gas carriers (“MG/Cs”) and two Handy Liquefied CO2 Multi-Gas Carriers (“HMG/Cs”). In addition, CCEC’s under-construction fleet includes six additional latest generation LNG/Cs, four MG/Cs, two HMG/Cs and one LNG dual-fuel Bunkering vessel to be delivered between the third quarter of 2026 and the first quarter of 2029.
For more information about the Company, please visit: www.capitalcleanenergycarriers.com
Forward-Looking Statements
The statements in this press release that are not historical facts, including, among other things, statements related to CCEC’s delivery of strategic goals, ability to pursue growth opportunities and expectations or objectives regarding future vessel deliveries and share repurchase, charter rate and revenue expectations, are forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. For a discussion of factors that could materially affect the outcome of forward-looking statements and other risks and uncertainties, see “Risk Factors” in our annual report filed with the SEC on Form 20-F for the year ended December 31, 2025, filed on April 27, 2026. Unless required by law, CCEC expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, to conform them to actual results or otherwise. CCEC does not assume any responsibility for the accuracy and completeness of the forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements.
McKesson čeká za 1. fiskální čtvrtletí růst tržeb o 6,6 % na 104,25 miliardy USD a růst EPS o 14,5 % na 9,46 USD. Tahounem mají být specialty pharmaceuticals, onkologie a služby v oblasti biopharmy.
Key Takeaways McKesson is expected to post Q1 sales growth of 6.6% and EPS growth of 14.5%.MCK's specialty pharmaceuticals, oncology and biopharma solutions are expected to drive earnings.MCK may see AI gains offset by IRA pricing, biosimilar shifts and GLP-1 demand variability. McKesson Corporation (MCK - Free Report) is scheduled to report first-quarter fiscal 2027 results on Aug 5, after market close.
The Zacks Consensus Estimate for sales is pegged at $104.25 billion, implying 6.6% year-over-year growth. The bottom line estimate is pinned at $9.46, suggesting growth of 14.5%.
The EPS estimates have remained stable over the past seven days.
The company delivered an earnings surprise of 1.12% in the last reported quarter. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 3.09%.
What the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for McKesson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($9.34 per share) and the Zacks Consensus Estimate is -1.26% for MCK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Driven MCK’s Q1 PerformanceMcKesson is expected to report solid earnings growth for the first quarter of fiscal 2027, supported by continued momentum in specialty pharmaceuticals, oncology services and biopharma solutions, although revenue growth may have been tempered by pharmaceutical pricing dynamics. Management had previously guided fiscal 2027 adjusted EPS growth of 12-14%, supported by sustained operating leverage, expanding specialty volumes and disciplined capital deployment.
The fiscal first quarter is likely to have benefited from resilient prescription demand, continued GLP-1 adoption and productivity gains from automation and AI investments across the distribution network. However, branded pharmaceutical price reductions under the Inflation Reduction Act (IRA), ongoing biosimilar transitions and normal quarter-to-quarter variability in GLP-1 demand may have moderated revenue growth.
The North American Pharmaceutical segment is likely to have remained the primary growth driver, supported by specialty distribution, stable prescription utilization and expanding health-system demand. While GLP-1 volumes are expected to have continued growing year over year, management has cautioned that quarterly fluctuations are likely, and branded drug price declines may have weighed on sales without materially affecting profitability.
The Oncology and Multispecialty segment should have delivered another strong performance during the fiscal first quarter. The growth is likely to have been driven by the addition of new providers, higher specialty distribution volumes and continued benefits from the integration of PRISM Vision and Core Ventures acquisitions. Expansion of the U.S. Oncology Network, growing retina operations and technology initiatives such as Ambient Scribe are also expected to have supported its performance.
The Prescription Technology Solutions segment is likely to have benefited from healthy demand for access, affordability and prior-authorization services, particularly for specialty therapies. However, third-party logistics revenues might have remained uneven due to launch timing and program mix.
The Medical-Surgical Solutions segment is likely to post modest growth, with management continuing to focus on operational readiness ahead of the planned separation while balancing investments in technology and efficiency.
MCK’s operating margins are expected to have remained healthy, aided by productivity initiatives, AI-enabled supply-chain efficiencies and disciplined expense management. Strong cash generation and continued share repurchases are also likely to have supported earnings growth despite higher interest expense related to financing activities associated with the Medical-Surgical separation.
MCK Share Price PerformanceIn the year-to-date period, MCK shares have gained 4.3%, outperforming its industry’s rise of 1.7% over the same period, underscoring strong investor confidence in the company's specialty momentum and expansion in oncology segment.
MCK has also delivered mixed returns when compared to its MedTech peers. While Cencora (COR - Free Report) has decreased 7.8% year to date, Cardinal Health (CAH - Free Report) has increased 11.9%. While the stock has outperformed the broader Zacks Medical sector’s 0.1% decline, it has underperformed S&P 500 Index’s 9.5% gain.
Image Source: Zacks Investment Research
MCK’s Key Valuation MetricFrom a valuation standpoint, McKesson is trading at a forward 12-month price-to-sales (P/S) multiple of 0.23, reflecting a premium valuation relative to its MedTech peers.
The elevated multiple suggests that investors are assigning a higher valuation to the company's long-term growth prospects, particularly its specialty expansion and productivity gains from automation and AI investments.
MCK currently trades well above Cencora, which carries a forward 12-month P/S multiple of 0.17, and Cardinal Health, which is valued at 0.19X sales.
Image Source: Zacks Investment Research
MCK’s Long-Term Investment VisibilityMcKesson’s long-term investment thesis is supported by its growing presence in higher-margin specialty healthcare services and its continued evolution beyond traditional pharmaceutical distribution. Management is expanding three strategic growth platforms — Oncology and Multispecialty, Prescription Technology Solutions, and Biopharma Services.
The company is also strengthening its core North American Pharmaceutical business through automation, AI-enabled supply-chain capabilities and operational discipline. Continued expansion of the U.S. Oncology Network, integration of the PRISM Vision and Core Ventures acquisitions, and increasing provider participation are expected to enhance specialty distribution volumes and deepen McKesson’s presence in community-based care. At the same time, the planned separation of the Medical-Surgical Solutions business should sharpen strategic focus and improve capital allocation flexibility, allowing the company to concentrate resources on faster-growing, higher-return businesses.
Technology, data analytics and AI remain key long-term differentiators for McKesson. The company continues to invest in AI-driven inventory planning, automated distribution centers, and digital workflow solutions, such as Ambient Scribe, to improve operational efficiency and enhance physician productivity.
Meanwhile, its Prescription Technology Solutions platform is benefiting from rising demand for access, affordability and prior-authorization services as specialty therapies become increasingly complex. Through Ontada’s expanding real-world data capabilities and technology-enabled biopharma services, McKesson is strengthening relationships with manufacturers and healthcare providers while creating additional recurring revenue opportunities.
Combined with sustained specialty pharmaceutical growth, disciplined capital deployment and continued investments in automation and innovation, these initiatives provide strong long-term earnings visibility and position McKesson to deliver durable growth and expanding shareholder value over the coming years.
Cabot ve 3. fiskálním čtvrtletí vykázal upravený zisk na akcii (EPS) 1,67 USD a snížil výhled pro fiskální rok 2026 na 6,15 až 6,45 USD na akcii. Zároveň oznámil plánovanou změnu generálního ředitele k 1. říjnu 2026.
BOSTON, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Cabot Corporation (NYSE: CBT) today announced results for its third quarter fiscal year 2026.
Third Quarter Highlights
Third Quarter Diluted EPS of $0.12 and Adjusted EPS of $1.67Reinforcement Materials segment EBIT of $97 million and Performance Chemicals segment EBIT of $68 millionBattery Materials product line expanding global conductive additive capacity to support growing demand; reaffirming expectation of approximately $40 million of EBITDA for the full fiscal year
Awarded Platinum rating from EcoVadis for exceptional leadership in sustainability performance for the sixth consecutive year
Announced a planned leadership transition, with Erica McLaughlin elected to succeed Sean Keohane as President and CEO and a member of Cabot’s Board of Directors, all effective October 1, 2026
(In millions, except per share amounts)Three Months EndedNine Months Ended 6/30/266/30/256/30/266/30/25 Net sales and other operating revenues$982 $923 $2,735 $2,814 Net income (loss) attributable to Cabot Corporation$6 $101 $147 $288 Net earnings (loss) per share attributable to Cabot Corporation$0.12 $1.86 $2.77 $5.22 Less: Certain items after tax per share$(1.55)$(0.04)$(2.05)$(0.34)Adjusted EPS$1.67 $1.90 $4.82 $5.56 Sean Keohane, Cabot President and Chief Executive Officer, commented: “I am pleased with our strong third-quarter performance as our teams continued to execute at a high level despite a dynamic operating environment. We delivered adjusted EPS of $1.67, an increase of 4% sequentially, driven by strong performance in our Performance Chemicals segment. In Performance Chemicals, segment EBIT increased 19% year-over-year, driven by higher volumes and expanded unit margins. In Reinforcement Materials, segment EBIT declined 24% year-over-year, as higher volumes were more than offset by lower gross profit per ton. Overall, our results demonstrate the strength of our execution as we continue to navigate the current market conditions.”
Keohane continued, “During the quarter, we advanced a program to expand global conductive additive capacity in our battery materials product line, consisting of targeted investments in both the United States and China. These investments are intended to support expected growth in global battery demand and enable continued expansion of our participation with leading battery manufacturers. We are pleased with the continued momentum in battery materials this fiscal year and reaffirm our expectation of approximately $40 million of EBITDA in fiscal 2026.”
Financial Detail
For the third quarter of fiscal 2026, net income attributable to Cabot Corporation was $6 million ($0.12 per common share). Net income reflects an after-tax per share charge from certain items of $1.55, primarily related to charges for restructuring actions and the termination of employee benefit plans. Adjusted EPS for the third quarter of fiscal 2026 was $1.67 per share.
Segment Results
Reinforcement Materials – Third quarter fiscal 2026 EBIT in Reinforcement Materials decreased by $31 million compared to the third quarter of fiscal 2025. The decline in EBIT was primarily driven by lower gross profit per ton, primarily due to the outcomes of our calendar year 2026 customer agreements, partially offset by higher volumes and a more favorable regional product mix. Volumes increased by 5% in the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025 driven by higher volumes in Asia and the Americas, including higher volumes from our capacity addition in Indonesia and our acquisition in Mexico.
Global and regional volume changes for Reinforcement Materials for the third quarter of fiscal 2026 as compared to the same quarter of the prior year are set forth in the table below:
Third Quarter
Year-over-Year ChangeGlobal Reinforcement Materials Volumes5%Asia Pacific10%Europe, Middle East, Africa(4%)Americas4% Performance Chemicals – Third quarter fiscal 2026 EBIT in Performance Chemicals increased by $11 million compared to the third quarter of fiscal 2025 primarily due to increased volumes and higher gross profit per ton. Volumes increased in our battery materials and fumed metal oxides product lines in the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025. The increase in battery materials volumes was driven by higher demand for electric vehicles and battery energy storage systems and our strengthening participation with market-leading global battery manufacturers. The increase in fumed metal oxides volumes was driven by growth in electronics applications. The higher gross profit per ton was primarily due to price increases implemented ahead of rising raw material costs and a favorable product mix.
Cash Performance – The Company ended the third quarter of fiscal 2026 with a cash and cash equivalents balance of $250 million. During the third quarter of fiscal 2026, cash flows from operating activities were a source of $75 million. Uses of cash during the quarter included funding $44 million of higher net working capital due to the rapidly rising raw material costs during the quarter, $38 million in capital expenditures and $24 million for the payment of dividends. We ended the third quarter with $1.3 billion of available liquidity and a net debt to EBITDA ratio of 1.4 times as of June 30, 2026.
Taxes – During the third quarter of fiscal 2026, the Company recorded tax expense of $46 million, resulting in an effective tax rate of 79%. The provision for income taxes included a net discrete tax expense of $19 million primarily related to changes in valuation allowance as a result of the Company ceasing carbon black production at its plant in Campana, Argentina. On a year-to-date basis, the Company’s operating tax rate was 29% as of June 30, 2026, and we expect our full-year fiscal 2026 operating tax rate to be in the range of 28% to 30%.
Outlook
Commenting on the outlook for the Company, Sean Keohane said, “Given the year-to-date performance and our expectations for the fourth fiscal quarter, we are tightening our fiscal 2026 Adjusted EPS guidance range from $6.00 to $6.50 per share to $6.15 to $6.45 per share.”
Keohane continued, “While the macroeconomic and geopolitical environment remains dynamic, our teams continue to execute at a high level. We have demonstrated our ability to successfully manage through changing conditions while maintaining strong operational and financial performance, generating robust cash flow, and delivering value to our customers.”
Keohane concluded, “As I prepare to retire after nearly 25 years with Cabot and more than 10 years as President and CEO, I am incredibly proud of what the Cabot team has accomplished, and I am excited about the future of the Company. I am pleased that the Board has announced the appointment of Erica McLaughlin to succeed me as CEO. This reflects the Board’s longstanding commitment to thoughtful succession planning and positions the Company for continued success. Erica is an exceptional leader with deep knowledge of our businesses, customers, and strategy, and I am confident she will build on our strong foundation. Supported by our operating model, deep and experienced management team and robust financial position, I believe Cabot is well positioned to deliver a strong fiscal 2026 while continuing to execute on our strategy and create long-term value for shareholders.”
Earnings Call
The Company will host a conference call with industry analysts at 8:00 a.m. Eastern time on Tuesday, August 4, 2026. The call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com
About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company is a leading provider of reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed metal oxides and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com. The Company regularly posts important information on its website and encourages investors and potential investors to consult the Cabot website regularly.
Forward-Looking Statements – This earnings release contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in fiscal year 2026, including our expectations for Adjusted EPS for fiscal 2026 and EBITDA in our battery materials product line, our expectations for customer demand and growth opportunities in our battery materials product line including our participation with leading battery manufacturers and our investments to support that expected growth, our expected operating tax rate for fiscal 2026, with respect to the planned leadership transition and expectations for future performance growth and value creation for shareholders and our assumptions underlying those expectations are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward-looking statements. Important factors that could cause our results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the inherent uncertainty of management transitions and the ability of the Company to successfully execute its planned leadership transition, industry capacity utilization and competition from other specialty chemical companies; safety, health and environmental requirements and related constraints imposed on our business; regulatory and financial risks related to climate change developments; volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of Ukraine and conflict in the Middle East; a significant adverse change in a customer relationship or the failure of a customer to perform its obligations under agreements with us; failure to achieve growth expectations from new products, applications and technology developments; failure to realize benefits from acquisitions, alliances, or joint ventures or achieve our portfolio management objectives; unanticipated delays in, or increased cost of site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations, global health matters or geo-political conflicts; litigation or legal proceedings; interest rates, tax rates, currency exchange controls, tariffs and fluctuations in foreign currency rates; and the accuracy of the assumptions we used in establishing reserves for our share of liability for respirator claims. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission (“SEC”), particularly under the heading “Risk Factors” in our annual report on Form 10-K for our fiscal year ended September 30, 2025, which are filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Use of Non-GAAP Financial Measures
To supplement Cabot’s consolidated financial statements presented on a generally accepted accounting principle (“GAAP”) basis, the preceding discussion of our results and the accompanying financial tables report Adjusted EPS, Adjusted EBITDA, our operating tax rate, Free Cash Flow and Discretionary Free Cash Flow, all of which are non-GAAP financial measures. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP, and the definitions of these measures may not be comparable to those used by other companies. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow provided by (used in) operating activities, the most directly comparable GAAP financial measure, are provided in the tables titled “Cabot Corporation Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate” and “Cabot Corporation Reconciliation of Non-GAAP Financial Measures.”
Management believes these non-GAAP measures provide investors with greater transparency to the information used by Cabot management in its financial and operational decision-making, allow investors to see Cabot’s results through the eyes of management, and better enable Cabot’s investors to understand Cabot’s operating performance and financial condition.
Adjusted EPS. In calculating Adjusted EPS, we exclude from our net income (loss) attributable to Cabot Corporation items of expense and income that management does not consider representative of the Company’s business operations. Accordingly, reporting earnings on an adjusted basis supplements the GAAP measure of performance and provides additional information related to the underlying performance of the business. For example, certain of the items we exclude are items that we are required by GAAP to recognize in one period that relate to activities extending over several periods or relate to single events that management considers to be unusual and infrequent, although not necessarily non-recurring. We refer to these items as “certain items.” Management believes excluding these items facilitates operating performance comparisons from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis and evaluates the Company’s operating performance without the impact of these costs or benefits. Management also uses Adjusted EPS as a key measure in evaluating management performance for incentive compensation purposes.
The items of income and expense that we exclude from our calculations of Adjusted EPS but that are included in our GAAP net income (loss) per share, as applicable in a particular reporting period, include, but are not limited to, the following:
Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations.Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business.Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes.Employee benefit plan settlements, which consist of either charges or benefits associated with the termination of a pension planArgentina controlled currency devaluation loss related to the foreign exchange loss from government-controlled currency devaluations on our net monetary assets denominated in the Argentine peso and investment losses related to the utilization of government bond programs established for the settlement of certain foreign payables. Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.
Adjusted EBITDA. Adjusted EBITDA reflects Income (loss) from operations before income taxes and equity in earnings of affiliated companies adjusted for certain items, interest expense, depreciation and amortization, equity in earnings of affiliated companies, and unallocated corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarters expenses, plus costs related to corporate projects and initiatives.
Free Cash Flow. To calculate “Free Cash Flow” we deduct Additions to property, plant and equipment from cash flow provided by (used in) operating activities.
Discretionary Free Cash Flow. To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow provided by (used in) operating activities.
Operating Tax Rate. Our “operating tax rate” is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.
Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.
Explanation of Terms Used
Product Mix. The term “product mix” refers to the mix of types and grade of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business or segment.
Net Working Capital. The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued expenses.
Third Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
Periods ended June 30Three MonthsNine MonthsDollars in millions, except per share amounts (unaudited)2026
2025
2026
2025
Net sales and other operating revenues$982 $923 $2,735 $2,814 Cost of sales 798 679 2,130 2,094 Gross profit 184 244 605 720 Selling and administrative expenses 73 62 209 192 Research and technical expenses 13 15 40 44 Income (loss) from operations 98 167 356 484 Interest and dividend income 8 7 22 20 Interest expense (18) (19) (54) (56)Other income (expense) (30) — (28) 2 Income (loss) from operations before income taxes and equity in earnings of affiliated companies 58 155 296 450 (Provision) benefit for income taxes (46) (43) (127) (133)Equity in earnings of affiliated companies, net of tax 2 1 5 5 Net income (loss) 14 113 174 322 Net income (loss) attributable to noncontrolling interests, net of tax 8 12 27 34 Net income (loss) attributable to Cabot Corporation$6 $101 $147 $288 Weighted-average common shares outstanding Basic 51.6 53.5 52.1 53.9 Diluted 52.0 53.8 52.4 54.4 Earnings (loss) per common share: Basic$0.12 $1.87 $2.79 $5.27 Diluted$0.12 $1.86 $2.77 $5.22 Third Quarter Earnings Announcement, Fiscal 2026 CABOT CORPORATION SUMMARY RESULTS BY SEGMENT Periods ended June 30Three Months Nine MonthsDollars in millions, except per share amounts (unaudited)2026 2025 2026 2025Sales Reinforcement Materials$599 $573 $1,663 $1,778 Performance Chemicals 351 320 979 942 Segment sales 950 893 2,642 2,720 Unallocated and other (A) 32 30 93 94 Net sales and other operating revenues$982 $923 $2,735 $2,814 Segment Earnings Before Interest and Taxes (B) Reinforcement Materials$97 $128 $292 $389 Performance Chemicals 68 57 175 152 Unallocated and Other Interest expense (18) (19) (54) (56)Certain items (C) (78) (3) (94) (13)Unallocated corporate costs (14) (13) (41) (39)General unallocated income (expense) (D) 5 6 23 22 Less: Equity in earnings of affiliated companies, net of tax 2 1 5 5 Income (loss) from operations before income taxes and equity in earnings of affiliated companies 58 155 296 450 (Provision) benefit for income taxes (including tax certain items) (46) (43) (127) (133)Equity in earnings of affiliated companies, net of tax 2 1 5 5 Net income (loss) 14 113 174 322 Net income (loss) attributable to noncontrolling interests, net of tax 8 12 27 34 Net income (loss) attributable to Cabot Corporation$6 $101 $147 $288 Diluted earnings (loss) per share of common stock attributable to Cabot Corporation$0.12 $1.86 $2.77 $5.22 Adjusted earnings (loss) per share (E)$1.67 $1.90 $4.82 $5.56 Diluted weighted average common shares outstanding 52.0 53.8 52.4 54.4 (A)Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable. (B)Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable. (C)Details of Certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. (D)General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items. (E)Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. Third Quarter Earnings Announcement, Fiscal 2026 CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, September 30,Dollars in millions (unaudited)2026 2025 Current assets: Cash and cash equivalents$250 $258 Accounts and notes receivable, net of reserve for doubtful accounts of $5 and $5 731 671 Inventories: Raw materials 172 134 Finished goods 329 303 Other 65 67 Total inventories 566 504 Prepaid expenses and other current assets 118 106 Total current assets 1,665 1,539 Property, plant and equipment 4,576 4,405 Accumulated Depreciation (2,837) (2,694)Net property, plant and equipment 1,739 1,711 Goodwill 137 134 Equity affiliates 19 16 Intangible assets, net 52 55 Deferred income taxes 170 180 Other assets 193 180 Total assets$3,975 $3,815 Third Quarter Earnings Announcement, Fiscal 2026 CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, September 30,Dollars in millions, except share and per share amounts (unaudited)2026 2025 Current liabilities: Short-term borrowings$184 $14 Accounts payable and accrued liabilities 670 648 Income taxes payable 20 35 Current portion of long-term debt 261 260 Total current liabilities 1,135 957 Long-term debt 828 856 Deferred income taxes 36 39 Other liabilities 242 258 Stockholders' equity: Preferred stock: Authorized: 2,000,000 shares of $1 par value Issued and Outstanding: None and none — — Common stock: Authorized: 200,000,000 shares of $1 par value Issued: 51,745,475 and 52,962,353 shares Outstanding: 51,631,007 and 52,842,481 shares 52 53 Less cost of 114,468 and 119,872 shares of common treasury stock (3) (3)Additional paid-in capital — — Retained earnings 1,823 1,835 Accumulated other comprehensive income (loss) (267) (335)Total Cabot Corporation stockholders' equity 1,605 1,550 Noncontrolling interests 129 155 Total stockholders' equity 1,734 1,705 Total liabilities and stockholders' equity$3,975 $3,815 Third Quarter Earnings Announcement, Fiscal 2026 CABOT CORPORATION QUARTERLY RESULTS BY SEGMENT Fiscal 2025 Fiscal 2026Dollars in millions, except per share amounts (unaudited)Dec. QMar. QJune QSept. QFY Dec. QMar. QJune QSept. QFY Sales Reinforcement Materials$611 $594 $573 $563 $2,341 $520 $544 $599 $—$1,663 Performance Chemicals 311 311 320 308 1,250 300 328 351 — 979 Segment sales 922 905 893 871 3,591 820 872 950 — 2,642 Unallocated and other (A) 33 31 30 28 122 29 32 32 — 93 Net sales and other operating revenues$955 $936 $923 $899 $3,713 $849 $904 $982 $—$2,735 Segment Earnings Before Interest and Taxes (B) Reinforcement Materials$130 $131 $128 $119 $508 $102 $93 $97 $—$292 Performance Chemicals 45 50 57 42 194 48 59 68 — 175 Unallocated and Other Interest expense (18) (19) (19) (20) (76) (18) (18) (18) — (54)Certain items (C) (6) (4) (3) (17) (30) (7) (9) (78) — (94)Unallocated corporate costs (13) (13) (13) (13) (52) (12) (15) (14) — (41)General unallocated income (expense) (D) 7 9 6 6 28 6 12 5 — 23 Less: Equity in earnings of affiliated companies, net of tax 1 3 1 2 7 1 2 2 — 5 Income (loss) from operations before income taxes and equity in earnings of affiliated companies 144 151 155 115 565 118 120 58 — 296 (Provision) benefit for income taxes (including tax certain items) (41) (49) (43) (63) (196) (37) (44) (46) — (127)Equity in earnings of affiliated companies, net of tax 1 3 1 2 7 1 2 2 — 5 Net income (loss) 104 105 113 54 376 82 78 14 — 174 Net income (loss) attributable to noncontrolling interests, net of tax 11 11 12 11 45 9 10 8 — 27 Net income (loss) attributable to Cabot Corporation$93 $94 $101 $43 $331 $73 $68 $6 $—
$147 Diluted earnings (loss) per share of common stock attributable to Cabot Corporation$1.67 $1.69 $1.86 $0.79 $6.02 $1.37 $1.27 $0.12 $—$2.77 Adjusted earnings (loss) per share (E)$1.76 $1.90 $1.90 $1.70 $7.25 $1.53 $1.61 $1.67 $—$4.82 Diluted weighted average common shares outstanding 55.0 54.4 53.8 53.4 54.2 52.9 52.2 52.0 — 52.4 (A)Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable. (B)Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable. (C)Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. (D)General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items. (E)Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. Third Quarter Earnings Announcement, Fiscal 2026 CABOT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Periods ended June 30Three Months Nine MonthsDollars in millions (unaudited)2026 2025 2026 2025 Cash Flows from Operating Activities: Net income (loss)$ 14 $113 $ 174 $322 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization50 39 140 114 Other non-cash charges (gains), net78 13 74 38 Cash dividends received from equity affiliates1 1 2 13 Changes in assets and liabilities: Changes in net working capital(A)(44) 101 (58) (13)Changes in other assets and liabilities, net(24) (18) (54) (28) Cash provided by (used in) operating activities75 249 278 446 Cash Flows from Investing Activities: Additions to property, plant and equipment(38) (61) (152) (210) Acquisition of business, net of cash acquired— — (66) — Asset acquisition— — — (27) Other investing activities, net— (4) 2 (2) Cash provided by (used in) investing activities(38) (65) (216) (239) Cash Flows from Financing Activities: Change in debt, net(25) (82) 132 65 Cash dividends paid to common stockholders(24) (24) (72) (71) Other financing activities, net— (77) (148) (184) Cash provided by (used in) financing activities(49) (183) (88) (190)Effect of exchange rate changes on cash11 25 19 (1)Increase (decrease) in cash, cash equivalents and restricted cash(1) 26 (7) 16 Cash, cash equivalents and restricted cash at beginning of period252 213 258 223 Cash, cash equivalents and restricted cash at end of period (B)$ 251 $239 $ 251 $239 (A)Includes Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities. (B)Restricted cash was $1 million as of June 30, 2026. There was no restricted cash as of June 30, 2025. Third Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION CERTAIN ITEMS AND RECONCILIATION OF ADJUSTED EPS AND OPERATING TAX RATE TABLE 1: DETAIL OF CERTAIN ITEMS Periods ended June 30Three MonthsNine Months Dollars in millions, except per share amounts (unaudited)2026202520262025 Certain items before and after income taxes Global restructuring activities$(42)$(3)$(57)$(6) Employee benefit plan settlement and other charges (30) — (30) — Legal and environmental matters and reserves (5) — (5) (6) Acquisition and integration-related charges (1) — (2) — Other certain items — — — (1) Total certain items, pre-tax (78) (3) (94) (13) Non-GAAP tax adjustments(A) (4) — (14) (6) Total certain items after tax$(82)$(3)$(108)$(19) Total certain items after tax per share$(1.55)$(0.04)$(2.05)$(0.34) TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEM Periods ended June 30Three MonthsNine Months Dollars in millions, Pre-Tax (unaudited)2026202520262025 Statement of Operations Line Item (B) Cost of sales$(46)$(2)$(59)$(10) Selling and administrative expenses (2) (1) (5) (2) Research and technical expenses — — — (1) Other income (expense) (30) — (30) — Total certain items$(78)$(3)$(94)$(13) TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE Three months ended June 30 2026 2025 Dollars in millions (unaudited)(Provision) / Benefit for Income TaxesRate(Provision) / Benefit for Income TaxesRate Effective Tax Rate$(46) 79%$(43) 28% Less: Non-GAAP tax adjustments(A) (4) — Operating tax rate (C) (D)$(42) 31%$(43) 28% Nine months ended June 30 2026 2025 Dollars in millions (unaudited)(Provision) / Benefit for Income TaxesRate(Provision) / Benefit for Income TaxesRate Effective Tax Rate$(127) 43%$(133) 29% Less: Non-GAAP tax adjustments(A) (14) (6) Operating tax rate (C) (D)$(113) 29%$(127) 28% TABLE 4: RECONCILIATION OF ADJUSTED EPS BY QUARTER FOR FISCAL 2026 and FISCAL 2025 Fiscal 2026 (E)Periods ended (unaudited)Dec. QMar. QJune QSept. Q FY 2026Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation$1.37 $1.27 $0.12 $— $2.77 Less: Certain items after tax per share (0.16) (0.34) (1.55) — $(2.05)Adjusted earnings (loss) per share$1.53 $1.61 $1.67 $— $4.82 Fiscal 2025 (E)Periods ended (unaudited)Dec. QMar. QJune QSept. Q FY 2025Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation$1.67 $1.69 $1.86 $0.79 $6.02 Less: Certain items after tax per share (0.09) (0.21) (0.04) (0.91) (1.23)Adjusted earnings (loss) per share$1.76 $1.90 $1.90 $1.70 $7.25 (A)Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. (B)This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations. (C)The operating tax rate is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. (D)Our operating tax rate for fiscal 2026 is expected to be in the range of 28% to 30%. (E)Per share amounts are calculated after tax. Third Quarter Earnings Announcement, Fiscal 2026 CABOT CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Fiscal 2026 (A) Dec. QMar. QJune QSept. QFY 2026Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation$1.37 $1.27 $0.12 $— $2.77 Less: Certain items after tax per share (0.16) (0.34) (1.55) — (2.05)Adjusted earnings (loss) per share$1.53 $1.61 $1.67 $— $4.82 Fiscal 2025 (A) Dec. QMar. QJune QSept. QFY 2025Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation$1.67 $1.69 $1.86 $0.79 $6.02 Less: Certain items after tax per share (0.09) (0.21) (0.04) (0.91) (1.23)Adjusted earnings (loss) per share$1.76 $1.90 $1.90 $1.70 $7.25 (A) Per share amounts are calculated after tax. Dollars in millionsFiscal 2026 Dec. QMar. QJune QSept. QFY 2026Reconciliation of Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies Income (loss) from operations before income taxes and equity in earnings of affiliated companies$118 $120 $58 $―
$296 Interest expense 18 18 18 — 54 Certain items 7 9 78 — 94 General unallocated (income) expense (6) (12) (5) — (23)Less: Equity in earnings of affiliated companies (1) (2) (2) — (5)Depreciation and amortization 41 44 43 — 128 Adjusted EBITDA$179 $181 $194 $―
$554 Dollars in millionsDec. QMar. QJune QSept. QFY 2026Reinforcement Materials EBIT$102 $93 $97 $―
$292 Reinforcement Materials Depreciation and amortization 19 21 20 — 60 Reinforcement Materials EBITDA$121 $114 $117 $―
$352 Reinforcement Materials Sales$520 $544 $599 $― $1,663 Reinforcement Materials EBITDA Margin 23% 21% 20% —% 21% Dollars in millionsDec. QMar. QJune QSept. QFY 2026Performance Chemicals EBIT$48 $59 $68 $―
$175 Performance Chemicals Depreciation and amortization 22 23 23 — 68 Performance Chemicals EBITDA$70 $82 $91 $―
$243 Performance Chemicals Sales$300 $328 $351 $― $979 Performance Chemicals EBITDA Margin 23% 25% 26% —% 25% Dollars in millionsFiscal 2026Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activitiesDec. QMar. QJune QSept. QFY 2026Cash provided by (used in) operating activities (B)$126 $77 $75 $―
$278 Less: Additions to property, plant and equipment 69 45 38 — 152 Free cash flow$57 $32 $37 $―
$126 Plus: Additions to property, plant and equipment 69 45 38 — 152 Less: Changes in net working capital (C) 5 (19) (44) — (58)Less: Sustaining and compliance capital expenditures 50 33 28 — 111 Discretionary free cash flow$71 $63 $91 $―
$225 (B) As provided in the Condensed Consolidated Statements of Cash Flows.(C) Defined as changes in Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows.
Ameresco ve 2. čtvrtletí přidala do backlogu nové zakázky za 1,8 mld. USD, více než trojnásobek proti loňsku. Z toho 1,2 mld. USD připadlo na datová centra.
CompaniesAug 3 (Reuters) - Ameresco (AMRC.N), opens new tab said on Monday it added $1.8 billion in new awards to its project backlog in the second quarter, more than tripling from a year ago amid strong demand for energy efficiency and renewable energy programs.
The growth comes as rising demand from AI-focused data centers and rapid electrification of homes, businesses and transportation are expected to push U.S. power consumption to record highs in 2026 and 2027 after setting a second straight annual record last year, according to the Energy Information Administration.
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CEO George Sakellaris told Reuters that about $1.2 billion of the new awards booked during the quarter was tied to data center projects, while the remaining $600 million came from the company's other business lines, including industrial and commercial customers.
"We successfully advanced three new behind-the-meter data center projects, bringing the total number of data center projects in our awarded project backlog to five," Sakellaris said in a statement.
Massachusetts-based Ameresco is an energy infrastructure company that helps businesses, government agencies and others reduce energy costs, upgrade aging facilities and develop renewable and distributed energy resources.
Co-President Nicole Bulgarino said data center projects usually take 12 to 24 months to progress from development to award due to the time needed for design and permitting. She added that the company anticipates more projects reaching this stage soon.
Ameresco is currently working on projects in multiple U.S. states, with second-quarter activity primarily focused on Texas and Arizona, Bulgarino said.
The company's total project backlog rose about 32% to $6.73 billion in the quarter from a year earlier.
The company posted an adjusted profit of 20 cents per share for the quarter ended June 30, beating analysts' average estimate of 16 cents, according to data compiled by LSEG.
Reporting by Pooja Menon in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles., opens new tab
August 03, 2026 16:10 ET | Source: Brady Corporation
Global Industrial Technology Platform Delivering Identification, Safety and Productivity SolutionsExpanded Addressable Market with Comprehensive Capabilities Across VerticalsPSS is expected to contribute approximately $0.80 of incremental Adjusted Diluted Earnings Per Share* within the first year following the close of the transaction
MILWAUKEE, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification, safety and productivity solutions, today announced that effective August 3, the Company has completed its previously announced transaction with Honeywell (Nasdaq: HON) to acquire Honeywell Technologies’ Productivity Solutions and Services (“PSS”) business. The all-cash, $1.4 billion transaction was funded with cash on hand, a senior unsecured credit facility and private placement debt, preserving substantial liquidity to support ongoing operations and future growth initiatives.
The business combination establishes Brady as a leading identification, safety and productivity solutions partner for businesses globally, leveraging Brady’s strength in printers and consumables and PSS’s leadership in mobile computing, scanning, RFID and workflow software. The PSS business generated sales of approximately $1.1 billion in 2025. As a scaled industrial technology company with enhanced capabilities, comprehensive solutions, and broader end-market exposure, we believe Brady is uniquely positioned to partner with customers to address their evolving needs.
In conjunction with the acquisition, Brady will be operated with two reportable segments. The existing Brady business will be reported as Identification Solutions and the PSS business will be reported as Intelligent Productivity Solutions.
Management Commentary
“Today marks the beginning of the next chapter for Brady as a leading industrial technology company, with enhanced capabilities and greater market access. The combination of Brady and PSS’s portfolios creates an industrial technology leader with capabilities across identification, safety, connectivity, and intelligent workflow solutions. Brady now serves customers in nearly every end market, with an expanded portfolio designed to help customers improve productivity, safety and operational performance,” said Brady’s President and Chief Executive Officer, Vineet Nargolwala.
Mr. Nargolwala continued, “While this transaction significantly expands Brady's scale and capabilities, our approach and objectives remain the same: producing trusted products and services, consistent operational execution, disciplined capital allocation, and creating significant value for our teams, customers and shareholders. We welcome the over 3,000 members of the PSS team to Brady and together, we will build the next chapter of Brady.”
The combined Company provides a Comprehensive Industrial Technology Platform
Comprehensive technology portfolio: Product portfolio adds scale and extends Brady into adjacent workflows, including mobile computing, barcode scanning, RFID and workflow software, complementing Brady’s leading position in its printers and specialty adhesive materials portfolios. Expanded addressable market: Brady now has access to the $9 billion productivity solutions market, better positioning the Company to benefit from secular tailwinds across automation, digitization, and asset tracking as global companies continue to seek automation and efficiency opportunities. Increased recurring revenue opportunity: PSS’s high-margin software and service offerings provide the Company with an opportunity to increase recurring revenue, improve long-term margin profile, and strengthen customer relationships.Compelling financial platform: The PSS acquisition is expected to be immediately accretive to Adjusted Diluted Earnings per Share* (approximately $0.80 within the first twelve months following the close of the transaction) with strong cash generation to support deleveraging. Brady expects to achieve a minimum of $25 million in annual run-rate cost synergies within three years of closing through improved operational efficiency. After accounting for transaction financing, Brady expects net debt-to-EBITDA* of approximately 2.5x, anticipating that it will deleverage to below 2.0x within two years following close. Brady is committed to maintaining a strong balance sheet to support its disciplined and consistent capital allocation strategy. About Brady
Brady Corporation (NYSE: BRC) is a global industrial technology company and a leading provider of identification, safety, and productivity solutions that help organizations of all sizes to identify, connect, protect, track, and optimize what matters most. By combining trusted identification technologies with advanced data capture, enterprise mobility, software and workflow solutions, Brady’s comprehensive offerings enable its customers to improve safety, productivity, accuracy, and operational performance across their most critical functions and in the world’s most demanding environments. For more than 110 years, Brady has established trust and demonstrated its commitment to innovation, serving customers across manufacturing, logistics, healthcare, electronics, telecommunications, aerospace, construction, and other key industries, to make their work safer, smarter, and more connected. Headquartered in Milwaukee, Wisconsin, Brady employs approximately 9,400 people worldwide. Brady stock trades on the New York Stock Exchange under the symbol BRC. Learn more at www.bradyid.com.
* Adjusted Diluted EPS and the ratio of net debt to EBITDA are non-GAAP measures. We believe that these non-GAAP financial measures are useful measures for providing investors with additional information to understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses these non-GAAP measures to help us evaluate our business and forecast our future results. This additional information is not meant to be considered in isolation or as a substitute for results of operations prepared and presented in accordance with GAAP. For forward-looking non-GAAP measures as used in this press release, we do not attempt to provide a reconciliation to the equivalent GAAP measures as certain elements of these measures are dependent on future events and therefore cannot be precisely calculated without unreasonable effort or expense. The significance of these elements are indeterminable at this time. Forward-looking non-GAAP measures are estimated in a manner consistent with our historical practice.
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In this release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, statements about the success of the acquisition, including anticipated benefits and synergies of the transaction, future opportunities for the combined company, and any other statements regarding the establishment of a new reporting segment for the PSS business, the combined company’s future operations and future financial position, anticipated economic activity, business strategies, targets, future earnings, anticipated growth, market opportunities, debt levels and cash flows, competition and other expectations and estimates for future periods including plans and objectives of management for future operations.
The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond the Company’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For the Company, uncertainties arise from: the ability of the Company and the PSS business to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally; potential difficulties integrating the PSS business, or the costs of integrating the PSS business exceeding original estimates; failure of the Company to achieve the anticipated benefits and synergies of the transaction identified in this release on the timeline indicated or at all; the establishment of a new reporting segment for the PSS business; increased cost of materials, labor, material shortages and supply chain disruptions, including as a result of tariffs or other impacts of the global trade environment; decreased demand for the Company’s products; the Company’s ability to compete effectively or to successfully execute our strategy; the Company’s ability to develop technologically advanced products that meet customer demands; the Company’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting the Company’s websites, networks, and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; risks associated with the loss of key employees; litigation, including product liability claims; global climate change and environmental regulations; foreign currency fluctuations; our indebtedness, financial condition and fulfillment of obligations thereunder; the ability to service our indebtedness; changes in tax legislation and tax rates; potential write-offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in the Company’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of the Company’s Form 10-K for the year ended July 31, 2025 and the risk factor listed in the “Risk Factors” section within Item 1A of Part II of the Company’s Form 10-Q for the quarterly period ended April 30, 2026.
These uncertainties may cause the Company’s actual future results to be materially different than those expressed in its forward-looking statements. The Company does not undertake to update its forward-looking statements except as required by law.
Investor and Media Contacts
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-469-2768
Inspire Medical Systems zvýšila celoroční výhled tržeb na 835 až 875 milionů USD a oznámila plán Project Horizon, který má uvolnit asi 30 milionů USD ročně pro růst.
Generated second quarter revenue of $200.6 millionSecond quarter diluted EPS of $0.01; adjusted diluted EPS of $0.14Second quarter operating cash flow of $23.2 millionAnnounced strategic growth plan designed to unlock and redeploy $30 million for growth initiatives MINNEAPOLIS, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire, or the Company), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended June 30, 2026.
“Our second quarter results reflect the increased discipline and focus we are bringing to the business as we continue to support customers through the evolving coding and reimbursement environment and invest in the long-term adoption of Inspire therapy,” said Tim Herbert, Chairman and CEO of Inspire Medical Systems. “We are also announcing a strategic growth plan designed to generate approximately $30 million of annualized growth investment capacity, which we intend to redeploy into targeted growth initiatives. We believe these actions will strengthen our operating foundation, sharpen our focus on the highest-return opportunities, and position Inspire for sustainable growth and long-term value creation.”
Second Quarter 2026 Financial Results (Second Quarter 2026 compared to Second Quarter 2025)
Revenue decreased 7.6% to $200.6 million, primarily driven by a decline in U.S. revenue, partially offset by growth in International revenue. The U.S. decline was driven primarily by the impacts of evolving coding and reimbursement environment.Gross margin increased 150 bps to 85.5%, primarily due to increased sales mix of the Inspire V system, which has a higher gross margin than the Inspire IV system.Operating expenses decreased $13.8 million, or 7.4%, to $172.0 million, primarily driven by lower stock-based compensation costs due to accelerated stock-based compensation expenses recognized in the prior year period as well as lower marketing expenses.Operating earnings increased $2.8 million to an operating loss of $0.5 million, and operating margin of (0.3)%. Adjusted operating income was $3.2 million, and adjusted operating margin was 1.6%. Interest and dividend income, net decreased by $0.7 million, primarily due to lower average interest rates and lower average cash, cash equivalents, and investment balances.Other expense, net decreased by $3.4 million, primarily due to a $4.0 million impairment charge recognized in the prior year period, partially offset by a decrease in interest and dividend income in the current period due to lower average interest rates and lower average cash, cash equivalents, and investment balances in the current period.The effective tax rate was 89.9% compared to (54.0)%. The increase in the effective tax rate was primarily driven by tax shortfall related to stock-based compensation. For the three months ended June 30, 2025, the Company maintained a full valuation allowance against federal and state deferred tax assets, which was subsequently released at December 31, 2025.Net earnings was $0.3 million and adjusted net earnings was $4.0 million. Diluted EPS was $0.01 and adjusted diluted EPS was $0.14. Financial Condition
Net cash provided by operating activities for the three months ended June 30, 2026 was $23.2 million, compared to $2.7 million in the prior year period. The change was primarily driven by improved working capital, primarily in receivables and inventories.As of June 30, 2026, cash, cash equivalents, and investments increased $10.6 million to $415.2 million as compared to December 31, 2025. Full Year 2026 Guidance
The Company is raising its previously announced revenue outlook to be in the range of $835 million to $875 million. Additionally, the Company now expects annual adjusted operating margin to be in the range of 4% to 6%, diluted EPS to be in the range of $(0.42) to $0.17 and adjusted diluted EPS to be in the range of $1.05 to $1.45.
The Company’s outlook assumes an effective tax rate of approximately 95% to 100% and an adjusted effective tax rate of 30% to 35%, estimated weighted average diluted shares outstanding of approximately 29.4 million, and capital expenditures between $35 million to $40 million.
Strategic Growth Plan
On August 3, 2026, the Company announced a strategic growth plan, named Project Horizon, intended to create additional investment capacity to accelerate revenue growth through:
Aligning resources to revenue growth initiatives;Streamlining the organization; andOptimizing the Company’s supply chain by consolidating production to support quality, scale, and efficiency. The Company expects to incur a total of $20 million to $25 million of pre-tax restructuring charges in connection with the first phase of Project Horizon, including approximately $4 million to $5 million of employee-related costs, and $16 million to $20 million of other expenses, which will be non-cash in nature. These actions are expected to generate approximately $30 million of annualized growth investment capacity which is expected to be invested in revenue growth initiatives. The Company expects the majority of actions related to the restructuring to be completed in the third quarter and all actions to be substantially complete by the end of 2026.
Webcast and Conference Call
The Company's management will host a conference call after market close today, Monday, August 3, 2026, at 5:00 p.m. Eastern Time to discuss these results and answer questions.
To access the conference call, please preregister on https://register-conf.media-server.com/register/BI05401f2d26b24d47a1416936675b79be. Registrants will receive confirmation with dial-in details.
A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/qu4ekmuy/. A replay of the webcast will be available on https://investors.inspiresleep.com starting approximately two hours after the event and archived on the site for two weeks.
About Inspire Medical Systems
Inspire Medical Systems is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.
For additional information about Inspire, please visit www.inspiresleep.com.
Use of Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, including without limitation, adjusted operating income, adjusted operating margin, adjusted earnings before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net earnings, adjusted net earnings per diluted share ("EPS"), adjusted EBITDA, and adjusted EBITDA margin, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).
We define adjusted operating income as operating income or loss adjusted for items that are not indicative of our ongoing operations. Operating income is the most directly comparable GAAP financial measure to adjusted operating income. We define adjusted operating margin in this release as adjusted operating income divided by revenue. Operating margin is the most directly comparable GAAP financial measure to adjusted operating margin. Adjusted earnings before income taxes is defined as earnings before income taxes, adjusted for items that are not indicative of our ongoing operations. Earnings before income taxes is the most directly comparable GAAP financial measure. Adjusted income tax expense is defined as income tax expense, adjusted for items that are not indicative of our ongoing operations. Adjusted effective tax rate is adjusted income tax expense divided by adjusted earnings before income taxes. Income tax expense is the most directly comparable GAAP financial measure. Adjusted net earnings is defined as net earnings or loss, adjusted for items that are not indicative of our ongoing operations. Net earnings or loss is the most directly comparable GAAP financial measure to adjusted net earnings. Adjusted net earnings per diluted share is calculated as adjusted net earnings divided by the diluted weighted average shares outstanding. Net earnings or loss per diluted share is the most directly comparable GAAP financial measure to adjusted net earnings per diluted share. We define adjusted EBITDA as net earnings or loss, less interest and dividend income, net, plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, adjusted for items that are not indicative of our ongoing operations. Net earnings or loss is the most directly comparable GAAP financial measure to adjusted EBITDA. We define adjusted EBITDA margin in this release as adjusted EBITDA divided by revenue. Net earnings or loss margin is the most directly comparable GAAP measure to adjusted EBITDA margin. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are included in this press release.
These non-GAAP financial measures are presented because we believe they are useful indicators of our operating performance and facilitate a more meaningful trend analysis without the distortion of various adjustment items. Management uses these measures principally as measures of our underlying operating performance, trends, and for planning purposes, including the preparation of our annual operating plan and financial projections. We believe these measures are useful to investors as supplemental information and because they are frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We also believe these non-GAAP financial measures are useful to our management and investors as a measure of comparative operating performance from period to period.
These non-GAAP financial measures should not be considered as an alternative to, or superior to, the most directly comparable GAAP financial measures, as measures of financial performance or cash flows from operations, as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and they should not be construed to imply that our future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, capital expenditures, and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs, and cash costs to replace assets being depreciated and amortized. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of non-GAAP financial measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on our GAAP results in addition to using non-GAAP financial measures on a supplemental basis. These measures and their definitions are discussed in more detail below and our definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.
Forward Looking 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 facts are forward-looking statements, including, without limitation, statements regarding estimated financial and non-financial impacts from our strategic growth plan (including without limitation the expectations for pre-tax charges in connection with the growth plan, annual growth investment capacity, the extent and manner of the use of investments in revenue growth initiatives as well as the time to complete the strategic growth plan) and potential impacts to our business (including potential actions and solutions as well as timing of these impacts) associated with coding and reimbursement, and our expectations regarding our full year 2026 financial outlook (including without limitation expectations for the impacts of coding and reimbursement, revenue, expected growth, adjusted operating margin, net earnings or loss per diluted share, adjusted net earnings per diluted share, effective tax rate, adjusted effective tax rate, weighted average diluted shares outstanding and capital expenditures). In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘anticipate,’’ ‘‘could,’’ “future,” “outlook,” “guidance,” ‘‘intend,’’ ‘‘target,’’ ‘‘project,’’ ‘‘contemplate,’’ ‘‘believe,’’ ‘‘estimate,’’ ‘‘predict,’’ ‘‘potential,’’ ‘‘continue,’’ or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words.
These forward-looking statements are based on management’s current expectations and involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others: our dependency on our Inspire system for revenues; fluctuations in our financial results and the market price of our common stock; our ability to sustain or increase our profitability and our history of operating losses; commercial success and market acceptance of our Inspire therapy; our ability to achieve and maintain adequate and clear levels of coverage or reimbursement for our Inspire system or any future products we may seek to commercialize; competitive companies, technologies, and pharmaceuticals in our industry; our ability to expand our indications and develop and commercialize additional products and enhancements to our Inspire system; our ability to forecast demand and manage our inventory; our dependence on third-parties; risks related to consolidation in the healthcare industry; our ability to expand, manage, and maintain our direct sales and marketing organization, and to market and sell our Inspire system in markets outside of the United States; our ability to manage our growth; risks related to product liability claims and warranty claims; our ability to address quality issues that may arise with our Inspire system; any failure of key information technology systems, processes, or sites or damage to or inability to access our physical facilities; any violations of anti-bribery, anti-corruption, and anti-money laundering laws; future needs for additional financing; risks related to our tax assets and changes in tax laws; our ability to timely commercialize or obtain regulatory approvals or certifications for our Inspire therapy and system; U.S. Food and Drug Administration (FDA) or other United States or foreign regulatory actions affecting us or the healthcare industry generally; our ability to establish and maintain intellectual property protection for our Inspire therapy and system or avoid claims of infringement; and our strategic growth plan may not achieve our intended outcome.
Other important factors that could cause actual results, performance or achievements to differ materially from those contemplated in this press release can be found under the captions “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations“ in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website at www.inspiresleep.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by applicable law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date after the date of this press release.
Inspire Medical Systems, Inc.
Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)
Three Months Ended Six Months Ended June 30, June 30, 2026
2025
2026
2025
Revenue $200,581 $217,086 $405,164 $418,403 Cost of goods sold 29,122 34,672 56,793 65,381 Gross profit 171,459 182,414 348,371 353,022 Operating expenses: Research and development 24,698 26,209 50,524 54,012 Selling, general and administrative 147,275 159,521 299,479 303,811 Total operating expenses 171,973 185,730 350,003 357,823 Operating (loss) (514) (3,316) (1,632) (4,801)Interest and dividend (income), net (3,739) (4,482) (7,480) (9,548)Other expense, net 110 3,498 336 2920 Earnings (loss) before income taxes 3,115 (2,332) 5,512 1,827 Income tax expense 2,801 1,260 16,492 2,427 Net earnings (loss) $314 $(3,592) $(10,980) $(600)Basic earnings (loss) per share $0.01 $(0.12) $(0.38) $(0.02)Diluted earnings (loss) per share $0.01 $(0.12) $(0.38) $(0.02)Weighted average shares outstanding: Basic 28,835,058 29,506,807 28,768,163 29,604,043 Diluted 28,940,846 29,506,807 28,768,163 29,604,043 Inspire Medical Systems, Inc.
Consolidated Balance Sheets (unaudited)
(in thousands, except share and per share amounts)
June 30,
2026 December 31, 2025Assets Current assets: Cash and cash equivalents $127,761 $104,813 Investments, short-term 192,923 203,455 Accounts receivable, net of allowance for credit losses of $997 and $1,080, respectively 103,340 119,692 Inventories, net 170,451 145,293 Prepaid expenses and other current assets 14,199 10,399 Total current assets 608,674 583,652 Investments, long-term 94,480 96,330 Property and equipment, net 104,330 97,872 Operating lease right-of-use assets 22,599 23,532 Deferred tax assets 77,582 88,667 Other non-current assets 18,328 17,264 Total assets $925,993 $907,317 Liabilities and stockholders' equity Current liabilities: Accounts payable $27,102 $36,565 Accrued expenses 44,080 59,490 Total current liabilities 71,182 96,055 Operating lease liabilities, non-current portion 29,093 29,998 Other non-current liabilities 136 104 Total liabilities 100,411 126,157 Stockholders' equity: Preferred Stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding — — Common Stock, $0.001 par value; 200,000,000 shares authorized; 28,907,221 and 28,579,015 issued and outstanding at June 30, 2026 and December 31, 2025, respectively 29 29 Additional paid-in capital 983,670 927,159 Accumulated other comprehensive (loss) income (645) 464 Accumulated deficit (157,472) (146,492)Total stockholders' equity 825,582 781,160 Total liabilities and stockholders' equity $925,993 $907,317 Inspire Medical Systems, Inc.
GAAP to Non-GAAP Reconciliations (unaudited)
(in thousands, except per share amounts)
Three Months Ended June 30, 2026
Gross Profit
Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
Income Tax Expense Effective Tax Rate Net Earnings
Diluted EPS
Reported $171,459 $171,973 $(514) (0.3)% $(3,629) $3,115 $2,801 89.9% $314 $0.01 Non-GAAP adjustments: Legal fees1 — (3,697) 3,697 1.9% — 3,697 1,296 2,401 0.09 Tax impact of stock-based compensation2 — — — —% — — (1,288) 1,288 0.04 Adjusted $171,459 $168,276 $3,183 1.6% $(3,629) $6,812 $2,809 41.2% $4,003 $0.14 Three Months Ended June 30, 2025 Gross Profit
Operating Expenses Operating (Loss) Income Operating Margin Other (Income) (Loss) Earnings Before Income Taxes Income Tax Expense
Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $182,414 $185,730 $(3,316) (1.5)% $(984) $(2,332) $1,260 (54.0)% $(3,592) $(0.12)Non-GAAP adjustments: Stock-based compensation expense3 — (11,155) 11,155 5.1% — 11,155 2,770 8,385 0.28 Legal fees1 — (1,736) 1,736 0.8% — 1,736 431 1,305 0.04 Asset impairment charge4 — — — —% (4,046) 4,046 — 4,046 0.14 Adjusted $182,414 $172,839 $9,575 4.4% $(5,030) $14,605 $4,461 30.5% $10,144 $0.34 1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax expense recorded as excess tax expense for stock-based compensation.
3 Represents accelerated stock-based compensation expense for certain employees who were retirement eligible in accordance with the implementation of changes to the treatment of equity awards under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement.
4 Represents a non-cash impairment of a strategic investment.
Inspire Medical Systems, Inc.
GAAP to Non-GAAP Reconciliations (unaudited)
(in thousands, except per share amounts)
Six Months Ended June 30, 2026 Gross Profit
Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
Income Tax Expense Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $348,371 $350,003 $(1,632) (0.4)% $(7,144) $5,512 $16,492 299.2% $(10,980) $(0.38)Non-GAAP adjustments: Legal fees1 — (5,133) 5,133 1.3% — 5,133 1,676 3,457 0.12 Tax impact of stock-based compensation2 — — — —% — — (14,375) 14,375 0.50 Adjusted $348,371 $344,870 $3,501 0.9% $(7,144) $10,645 $3,793 35.6% $6,852 $0.24 Six Months Ended June 30, 2025 Gross Profit
Operating Expenses Operating (Loss) Income Operating Margin Other (Income) Earnings Before Income Taxes
Income Tax Expense
Effective Tax Rate Net (Loss) Earnings Diluted EPSReported $353,022 $357,823 $(4,801) (1.1)% $(6,628) $1,827 $2,427 132.8% $(600) $(0.02)Non-GAAP adjustments: Stock-based compensation expense3 — (11,155) 11,155 2.6% — 11,155 2,770 8,385 0.28 Legal fees1 — (1,736) 1,736 0.4% — 1,736 431 1,305 0.04 Asset impairment charge4 — — — —% (4,046) 4,046 — 4,046 0.14 Adjusted $353,022 $344,932 $8,090 1.9% $(10,674) $18,764 $5,628 30.0% $13,136 $0.44 1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 The accounting standards codification guidance governing employee stock-based compensation requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax expense recorded as excess tax expense for stock-based compensation.
3 Represents accelerated stock-based compensation expense for certain employees who were retirement eligible in accordance with the implementation of changes to the treatment of equity awards under the Inspire Medical Systems, Inc. 2018 Incentive Award Plan upon the holder's death, disability, or retirement.
4 Represents a non-cash impairment of a strategic investment.
Reconciliation of GAAP Net Earnings (Loss) to Non-GAAP Adjusted EBITDA
Three Months Ended Six Months Ended June 30, June 30, 2026
2025
2026
2025
Net earnings (loss) $314 $(3,592) $(10,980) $(600)Interest and dividend income, net (3,739) (4,482) (7,480) (9,548)Income tax expense 2,801 1,260 16,492 2,427 Depreciation and amortization 4,597 3,414 9,707 6,458 EBITDA 3,973 (3,400) 7,739 (1,263)Stock-based compensation expense1 31,226 41,724 61,915 72,780 Legal fees2 3,697 1,736 5,133 1,736 Asset impairment charge3 — 4,046 — 4,046 Adjusted EBITDA $38,896 $44,106 $74,787 $77,299 1 Total stock-based compensation expense.
2 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
3 Represents a non-cash impairment of a strategic investment.
Reconciliation of GAAP Net Earnings (Loss) Margin and Non-GAAP Adjusted EBITDA Margin
Three Months Ended Six Months Ended June 30, June 30, 2026
2025
2026
2025
Net earnings (loss) margin1 0.2% (1.7)% (2.7)% (0.1)%Interest and dividend income, net (1.9)% (2.1)% (1.8)% (2.3)%Income tax expense 1.4% 0.6% 4.1% 0.6%Depreciation and amortization 2.3% 1.6% 2.4% 1.5%Stock-based compensation expense2 15.6% 19.2% 15.2% 17.4%Legal fees3 1.8% 0.8% 1.3% 0.4%Asset impairment charge4 —% 1.9% —% 1.0%Adjusted EBITDA margin 19.4% 20.3% 18.5% 18.5% 1 Net earnings (loss) margin is calculated as net earnings (loss) divided by total revenue.
2 Total stock-based compensation expense.
3 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
4 Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.
Full Year 2026 OutlookReconciliation of Full Year 2026 Outlook of Estimated Net Earnings per Diluted Share
to Adjusted Net Earnings per Diluted Share
Outlook Full Year 2026
Tax Rate Outlook Full Year 2026 Low Range High Range
Low Range High RangeNet earnings per diluted share $(0.42) $0.17 95.0% 100.0%Legal fees1 0.25 0.23 Restructuring charges2 0.64 0.51 Tax impact of stock-based compensation3 0.58 0.54 Adjusted net earnings per diluted share $1.05 $1.45 30.0% 35.0% 1 These costs represent legal-related expenses related to (a) a civil investigative demand from the Department of Justice, (b) a patent infringement suit that we filed against Nyxoah S.A. and its wholly-owned subsidiary, Nyxoah, Inc. ("Nyxoah"), and (c) a patent infringement suit brought against us by Nyxoah.
2 Restructuring costs related to Project Horizon.
3 Represents the estimated tax impact of permanent differences that arise between the expense recognized for financial reporting of stock-based compensation awards and the tax deduction the Company receives (tax windfall or shortfall). Accounting standards codification guidance requires that any excess or deficient tax deduction for stock-based compensation be immediately recorded within income tax expense. These amounts represent the estimated discrete tax impact for stock-based compensation during the period presented.
KING OF PRUSSIA, Pa., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), the Decision-to-Defense™ global indirect tax and compliance company, today announced financial results for its second quarter ended June 30, 2026.
“Vertex delivered solid second-quarter results, with revenue at the high end of our guidance and adjusted EBITDA exceeding our expectations,” said Christopher Young, President and Chief Executive Officer. “The quarter demonstrated the durability of our business and the earnings leverage we can generate through greater operating focus and discipline. Customer retention remained stable, and e-invoicing momentum improved as enterprises prepare for expanding global mandates and seek more comprehensive compliance solutions.”
“We are making tangible progress in the transformation of Vertex. Our “AI-First” strategy is beginning to improve the speed and efficiency of selected engineering and customer-delivery workflows, and we have strengthened our leadership team to accelerate product innovation, operational execution, and growth. While we have more work to do, we enter the second half with a stronger operating foundation and clear opportunities to create additional value for customers and stockholders.”
Second Quarter 2026 Financial Results
Total revenues of $204.0 million, up 10.5% year-over-year.Software subscription revenues of $174.8 million, up 10.7% year-over-year.Cloud revenues of $101.7 million, up 17.9% year-over-year.Annual Recurring Revenue (“ARR”) was $703.4 million, up 10.5% year-over-year.Average Annual Revenue per direct customer (“AARPC”) was $142,997 at June 30, 2026, compared to $130,934 at June 30, 2025, and $140,464 at March 31, 2026.Net Revenue Retention (“NRR”) was 105%, compared to 108% at June 30, 2025, and 105% at March 31, 2026.Gross Revenue Retention (“GRR”) was 95%, consistent with June 30, 2025 and March 31, 2026.Loss from operations of $4.4 million, compared to $3.9 million for the same period in the prior year.Non-GAAP operating income of $44.3 million, compared to $32.2 million for the same period in the prior year.Net income (loss) of $9.0 million, compared to $(1.0) million for the same period in the prior year.Net income per basic and diluted Class A and Class B shares of $0.06, compared to net loss per basic and diluted Class A and Class B shares of $0.01 for the same period in the prior year.Non-GAAP net income of $33.3 million and Non-GAAP diluted earnings per share (“EPS”) of $0.20.Adjusted EBITDA of $51.0 million, compared to $38.4 million for the same period in the prior year. Adjusted EBITDA margin of 25.0%, compared to 20.8% for the same period in the prior year. Definitions of certain key business metrics and the non-GAAP financial measures used in this press release and reconciliations of such measures to the most directly comparable GAAP financial measures are included below under the headings “Definitions of Certain Key Business Metrics” and “Use and Reconciliation of Non-GAAP Financial Measures.”
Financial Outlook
For the third quarter of 2026, the Company currently expects:
Revenues of $208.0 million to $211.0 million; andAdjusted EBITDA of $55.0 million to $57.0 million. For the full-year 2026, the Company currently expects:
Revenues of $825.0 million to $830.0 million;
Cloud revenue growth of 18%; and
Adjusted EBITDA of $206.0 million to $210.0 million. John Schwab, Chief Financial Officer added, “Our second quarter performance reflects solid execution against our strategic and financial objectives. The consistency of our first-half results and the strength of our operating model increased our confidence in the full year, allowing us to narrow our revenue guidance range while raising our adjusted EBITDA outlook. We continue to focus on balancing growth investments with operating discipline, which we expect to result in expanding profitability and stronger cash generation in the third and fourth quarters.”
The Company is unable to reconcile forward-looking Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, without unreasonable efforts because 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 net income (loss) for these periods but would not impact Adjusted EBITDA. Such items may include stock-based compensation expense, depreciation and amortization of capitalized software costs and acquired intangible assets, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, amortization of cloud computing implementation costs, severance expenses, acquisition-related retained employee compensation, transaction costs, and other items. The unavailable information could have a significant impact on the Company’s net income (loss). The foregoing forward-looking statements reflect the Company’s expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. The Company does not intend to update its financial outlook until its next quarterly results announcement.
Important disclosures in this earnings release about and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below under “Use and Reconciliation of Non-GAAP Financial Measures.”
Conference Call and Webcast Information
Vertex will host a conference call at 5:00 p.m. Eastern Time today, Monday, August 3, 2026, to discuss its second quarter 2026 financial results.
Those wishing to participate should register in advance for the live event at https://vertex-earnings-q2-2026.open-exchange.net/registration.
A live webcast of the event will also be available at the Company’s investor relations website at https://ir.vertexinc.com. An audio-only replay of the conference call will be available on the investor relations website for one year.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn.
Forward-Looking Statements
Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies, and our stock repurchase program. Forward-looking statements are based on Vertex management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: our ability to maintain and grow revenue from existing customers and new customers, and expand their usage of our solutions; our ability to maintain and expand our strategic relationships with third parties; our ability to adapt to technological change and successfully introduce new solutions or provide updates to existing solutions; risks related to failures in information technology or infrastructure; risks related to our reliance on government infrastructure to support our e-invoicing services; challenges in using and managing use of Artificial Intelligence in our business; incorrect or improper implementation, integration or use of our solutions; failure to attract and retain qualified technical and tax-content personnel; competitive pressures from other tax software and service providers and challenges of convincing businesses using native enterprise resource planning functions to switch to our software; our ability to accurately forecast our revenue and other future results of operations based on recent success; our ability to offer specific software deployment methods based on changes to customers’ and partners’ software systems; our ability to continue making significant investments in software development and equipment; our ability to sustain and expand revenues, maintain profitability, and to effectively manage our anticipated growth; our ability to successfully diversify our solutions by developing or introducing new solutions or acquiring and integrating additional businesses, products, services, or content; our ability to successfully integrate acquired businesses and to realize the anticipated benefits of such acquisitions; risks related to the fluctuations in our results of operations; risks related to our expanding international operations; our exposure to liability from errors, delays, fraud or system failures, which may not be covered by insurance; our ability to adapt to organizational changes and effectively implement strategic initiatives; risks related to our determinations of customers’ transaction tax and tax payments; risks related to changes in tax laws and regulations or their interpretation or enforcement; our ability to manage cybersecurity and data privacy risks; our involvement in material legal proceedings and audits; risks related to undetected errors, bugs or defects in our software; risks related to utilization of open-source software, business processes and information systems; our ability to effectively protect, maintain, and enhance our brand; changes in application, scope, interpretation or enforcement of laws and regulations; global economic weakness and uncertainties, including the economic uncertainty created by the changing legal, regulatory, or taxation landscape in the United States, and disruption in the capital and credit markets; business disruptions related to natural disasters, epidemic outbreaks, including a global endemic or pandemic, terrorist acts, political events, or other events outside of our control; our ability to comply with anti-corruption, anti-bribery, and similar laws; our ability to protect our intellectual property; changes in interest rates, security ratings and market perceptions of the industry in which we operate, or our ability to obtain capital on commercially reasonable terms or at all; our ability to maintain an effective system of disclosure controls and internal control over financial reporting, or ability to remediate any material weakness in our internal controls; risks related to our Class A common stock and controlled company status; risks related to our stock repurchase program; risks related to our indebtedness and adherence to the covenants under our debt instruments; our expectations regarding the effects of the Capped Call Transactions (as defined in our Form 10-K) and regarding actions of the Option Counterparties (as defined in our Form 10-K) and/or their respective affiliates; risks associated with our Value Creation Plan; and the other factors described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2026, as may be subsequently updated by our other SEC filings. Copies of such filings may be obtained from the Company or the SEC.
All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.
Definitions of Certain Key Business Metrics
Annual Recurring Revenue (“ARR”)
We derive the vast majority of our revenues from recurring software subscriptions. We believe ARR provides us with visibility to our projected software subscription revenues in order to evaluate the health of our business. Because we recognize subscription revenues ratably, we believe investors can use ARR to measure our expansion of existing customer revenues, new customer activity, and as an indicator of future software subscription revenues. ARR is based on monthly recurring revenues (“MRR”) from software subscriptions for the most recent month at period end, multiplied by twelve. MRR is calculated by dividing the software subscription price, inclusive of discounts, by the number of subscription covered months. MRR only includes direct customers with MRR at the end of the last month of the measurement period. AARPC represents average annual revenue per direct customer and is calculated by dividing ARR by the number of software subscription direct customers at the end of the respective period.
Net Revenue Retention (“NRR”)
We believe that our NRR provides insight into our ability to retain and grow revenues from our direct customers, as well as their potential long-term value to us. We also believe it demonstrates to investors our ability to expand existing customer revenues, which is one of our key growth strategies. Our NRR refers to the ARR expansion during the 12 months of a reporting period for all direct customers who were part of our customer base at the beginning of the reporting period. Our NRR calculation takes into account any revenues lost from departing direct customers or those who have downgraded or reduced usage, as well as any revenue expansion from migrations, new licenses for additional products or contractual and usage-based price changes.
Gross Revenue Retention (“GRR”)
We believe our GRR provides insight into and demonstrates to investors our ability to retain revenues from our existing direct customers. Our GRR refers to how much of our MRR we retain each month after reduction for the effects of revenues lost from departing direct customers or those who have downgraded or reduced usage. GRR does not take into account revenue expansion from migrations, new licenses for additional products or contractual and usage-based price changes. GRR does not include revenue reductions resulting from cancellations of customer subscriptions that are replaced by new subscriptions associated with customer migrations to a newer version of the related software solution.
Customer Count
The following table shows Vertex’s direct customers, as well as indirect small business customers sold and serviced through the Company’s one-to-many channel strategy.
CustomersQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026Direct4,8624,8564,8674,8954,919Indirect504516515530540Total5,3665,3725,3825,4255,459 Use and Reconciliation of Non-GAAP Financial Measures
In addition to our results determined in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and key business metrics described above, we have calculated non-GAAP cost of revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, non-GAAP selling and marketing expense, non-GAAP general and administrative expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, Adjusted EBITDA, Adjusted EBITDA margin, free cash flow and free cash flow margin, which are each non-GAAP financial measures. We have provided tabular reconciliations of each of these non-GAAP financial measures to its most directly comparable GAAP financial measure.
Management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate financial performance and liquidity. Our non-GAAP financial measures are presented as supplemental disclosure as we believe they provide useful information to investors and others in understanding and evaluating our results, prospects, and liquidity period-over-period without the impact of certain items that do not directly correlate to our operating performance and that may vary significantly from period to period for reasons unrelated to our operating performance, as well as comparing our financial results to those of other companies. Our definitions of these non-GAAP financial measures may differ from similarly titled measures presented by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, the financial information prepared in accordance with GAAP, and should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 24, 2026 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, to be filed with the SEC.
We calculate these non-GAAP financial measures as follows:
Non-GAAP cost of revenues, software subscriptions is determined by adding back to GAAP cost of revenues, software subscriptions, the stock-based compensation expense, and depreciation and amortization of capitalized software and acquired intangible assets included in cost of subscription revenues for the respective periods.Non-GAAP cost of revenues, services is determined by adding back to GAAP cost of revenues, services, the stock-based compensation expense included in cost of revenues, services for the respective periods.Non-GAAP gross profit is determined by adding back to GAAP gross profit the stock-based compensation expense, and depreciation and amortization of capitalized software and acquired intangible assets included in cost of subscription revenues for the respective periods.Non-GAAP gross margin is determined by dividing non-GAAP gross profit by total revenues for the respective periods.Non-GAAP research and development expense is determined by adding back to GAAP research and development expense the stock-based compensation expense and transaction costs related to acquired technology included in research and development expense for the respective periods.Non-GAAP selling and marketing expense is determined by adding back to GAAP selling and marketing expense the stock-based compensation expense and the amortization of acquired intangible assets included in selling and marketing expense for the respective periods.Non-GAAP general and administrative expense is determined by adding back to GAAP general and administrative expense the stock-based compensation expense, amortization of cloud computing implementation costs, severance expense, acquisition-related retained employee compensation, and transaction costs included in general and administrative expense for the respective periods.Non-GAAP operating income is determined by adding back to GAAP loss or income from operations the stock-based compensation expense, depreciation and amortization of capitalized software and acquired intangible assets, amortization of cloud computing implementation costs, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, acquisition-related retained employee compensation, and transaction costs included in GAAP loss or income from operations for the respective periods.Non-GAAP net income is determined by adding back to GAAP net income or loss income tax benefit or expense, stock-based compensation expense, depreciation and amortization of capitalized software and acquired intangible assets, amortization of cloud computing implementation costs, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, acquisition-related retained employee compensation, and transaction costs included in GAAP income or loss from operations for the respective periods, to determine non-GAAP income or loss before income taxes. Non-GAAP income or loss before income taxes is then adjusted for income taxes calculated using the respective statutory tax rates for applicable jurisdictions, which for purposes of this determination were assumed to be 25.5%.Non-GAAP net income per diluted share of Class A and Class B common stock (“Non-GAAP diluted EPS”) is determined by dividing non-GAAP net income by the weighted average shares outstanding of all classes of common stock, inclusive of the impact of dilutive common stock equivalents to purchase such common stock, including stock options, restricted stock awards, restricted stock units and employee stock purchase plan shares. Additionally, the dilutive effect of shares issuable upon conversion of the senior convertible notes is included in the calculation of Non-GAAP diluted EPS by application of the if-converted method.Adjusted EBITDA is determined by adding back to GAAP net income or loss the net interest income or expense, income tax expense or benefit, depreciation and amortization of property and equipment, depreciation and amortization of capitalized software and acquired intangible assets, amortization of cloud computing implementation costs, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, acquisition-related retained employee compensation, and transaction costs included in GAAP net income or loss for the respective periods.Adjusted EBITDA margin is determined by dividing Adjusted EBITDA by total revenues for the respective periods.Free cash flow is determined by adjusting net cash provided by (used in) operating activities by purchases of property and equipment and capitalized software additions for the respective periods.Free cash flow margin is determined by dividing free cash flow by total revenues for the respective periods. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures.
Vertex, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited) As of June 30, As of December 31,(In thousands, except per share data) 2026 2025 (unaudited) Assets Current assets: Cash and cash equivalents $ 230,489 $ 314,009 Funds held for customers 26,497 24,286 Accounts receivable, net of allowance of $12,271 and $11,466, respectively 153,432 183,446 Prepaid expenses and other current assets 81,527 38,966 Total current assets 491,945 560,707 Property and equipment, net of accumulated depreciation 220,471 209,727 Capitalized software, net of accumulated amortization 34,262 35,480 Goodwill and other intangible assets 402,734 396,006 Deferred commissions 29,166 31,907 Deferred income tax asset 127 85 Operating lease right-of-use assets 8,366 9,678 Long-term investment 15,000 15,000 Other assets 8,076 12,245 Total assets $ 1,210,147 $ 1,270,835 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 37,313 $ 37,557 Accrued expenses 34,549 43,642 Customer funds obligations 24,639 21,802 Accrued salaries and benefits 20,612 23,992 Accrued variable compensation 27,552 34,593 Deferred revenue, current 382,151 382,839 Current portion of operating lease liabilities 4,470 4,283 Current portion of finance lease liabilities 33 55 Purchase commitment and contingent consideration liabilities, current 33,100 25,900 Total current liabilities 564,419 574,663 Deferred revenue, net of current portion 4,750 5,209 Debt, net of current portion 338,605 337,477 Operating lease liabilities, net of current portion 6,776 8,903 Finance lease liabilities, net of current portion 38 54 Purchase commitment and contingent consideration liabilities, net of current portion 40,900 79,600 Deferred income tax liabilities 13,172 5,664 Deferred other liabilities 380 345 Total liabilities 969,040 1,011,915 Stockholders' equity: Preferred shares, $0.001 par value, 30,000 shares authorized; no shares issued and outstanding — — Class A voting common stock, $0.001 par value, 300,000 shares authorized; 79,414 and 77,580 shares issued and outstanding, respectively 79 77 Class B voting common stock, $0.001 par value, 150,000 shares authorized; 82,156 and 82,156 shares issued and outstanding, respectively 82 82 Treasury stock, at cost, 3,888 and 504 shares, respectively (56,696) (10,094)Additional paid in capital 347,768 316,327 Accumulated deficit (39,571) (46,104)Accumulated other comprehensive loss (10,555) (1,368)Total stockholders' equity 241,107 258,920 Total liabilities and stockholders' equity $ 1,210,147 $ 1,270,835 Vertex, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited) Three months ended Six months ended June 30, June 30, (In thousands, except per share data)2026 2025 2026 2025 (unaudited) (unaudited)Revenues: Software subscriptions$ 174,753 $ 157,844 $ 341,899 $ 308,605 Services 29,217 26,715 58,717 53,016 Total revenues 203,970 184,559 400,616 361,621 Cost of revenues: Software subscriptions 52,170 44,459 103,346 88,704 Services 20,500 18,900 41,101 38,723 Total cost of revenues 72,670 63,359 144,447 127,427 Gross profit 131,300 121,200 256,169 234,194 Operating expenses: Research and development 24,805 20,582 49,355 41,468 Selling and marketing 51,899 48,454 104,534 96,609 General and administrative 51,142 43,392 105,481 88,420 Depreciation and amortization 6,720 6,187 13,162 12,067 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400)Other operating expense, net 1,277 4,149 4,524 7,408 Total operating expenses 135,743 125,064 271,218 233,572 Income (loss) from operations (4,443) (3,864) (15,049) 622 Interest income, net (344) (1,228) (1,301) (2,767)Income (loss) before income taxes (4,099) (2,636) (13,748) 3,389 Income tax benefit (13,142) (1,675) (20,281) (6,780)Net income (loss) 9,043 (961) 6,533 10,169 Other comprehensive (income) loss: Foreign currency translation adjustments, net of tax 2,737 (29,734) 9,187 (44,839)Unrealized loss on investments, net of tax — — — 9 Total other comprehensive income (loss), net of tax 2,737 (29,734) 9,187 (44,830)Total comprehensive income (loss)$ 6,306 $ 28,773 $ (2,654) $ 54,999 Net income (loss) per share of Class A and Class B, basic$ 0.06 $ (0.01) $ 0.04 $ 0.06 Net income (loss) per share of Class A and Class B, diluted$ 0.06 $ (0.01) $ 0.04 $ 0.06 Vertex, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) Six months ended June 30,(In thousands) 2026 2025 (unaudited)Cash flows from operating activities: Net income $6,533 $10,169 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 56,177 45,694 Amortization of cloud computing implementation costs 2,395 2,024 Provision for subscription cancellations and non-renewals 629 (136)Amortization of deferred financing costs 1,361 1,361 Change in fair value of contingent consideration liabilities (5,838) (12,200)Stock-based compensation expense 32,270 33,034 Deferred income taxes 6,051 (1,641)Non-cash operating lease costs 2,226 1,595 Other 15 (71)Changes in operating assets and liabilities, net of the effects of business acquisition(s): Accounts receivable 29,887 22,320 Prepaid expenses and other current assets (44,994) (13,406)Deferred commissions 2,741 (258)Accounts payable (288) (5,886)Accrued expenses (9,185) 6,446 Accrued and deferred compensation (11,333) (29,766)Deferred revenue (812) 2,374 Operating lease liabilities (2,827) (2,057)Payments for purchase commitment and contingent consideration liabilities in excess of initial fair value — (200)Other 3,863 1,412 Net cash provided by operating activities 68,871 60,808 Cash flows from investing activities: Acquisition of businesses and assets, net of cash acquired (21,968) — Long-term investment — (15,000)Property and equipment additions (47,831) (42,906)Capitalized software additions (10,648) (10,565)Purchase of investment securities, available-for-sale — (2,398)Proceeds from sales and maturities of investment securities, available-for-sale — 11,607 Net cash used in investing activities (80,447) (59,262)Cash flows from financing activities: Net increase (decrease) in customer funds obligations 2,838 (3,493)Repurchases of shares (46,602) — Proceeds from purchases of stock under ESPP 1,807 1,782 Payments for taxes related to net share settlement of stock-based awards (7,936) (26,105)Proceeds from exercise of stock options 441 7,687 Payments for acquisition contingent cash earn-out (19,600) — Payments of finance lease liabilities (39) (28)Net cash used in financing activities (69,091) (20,157)Effect of exchange rate changes on cash, cash equivalents and restricted cash (642) 3,307 Net decrease in cash, cash equivalents and restricted cash (81,309) (15,304)Cash, cash equivalents and restricted cash, beginning of period 338,295 326,066 Cash, cash equivalents and restricted cash, end of period $256,986 $310,762 Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets, end of period: Cash and cash equivalents $230,489 $284,386 Restricted cash—funds held for customers 26,497 26,376 Total cash, cash equivalents and restricted cash, end of period $256,986 $310,762 Summary of Non-GAAP Financial Measures
(Unaudited) Three months ended Six months ended June 30, June 30, (Dollars in thousands, except per share data) 2026 2025 2026 2025 Non-GAAP cost of revenues, software subscriptions $29,205 $26,556 $58,550 $52,719 Non-GAAP cost of revenues, services $19,566 $17,876 $38,496 $36,003 Non-GAAP gross profit $155,199 $140,127 $303,570 $272,899 Non-GAAP gross margin 76.1% 75.9% 75.8% 75.5%Non-GAAP research and development expense $22,365 $18,070 $43,049 $34,604 Non-GAAP selling and marketing expense $47,080 $44,648 $93,847 $86,466 Non-GAAP general and administrative expense $34,587 $38,071 $71,631 $74,673 Non-GAAP operating income $44,295 $32,182 $81,916 $63,521 Non-GAAP net income $33,256 $24,891 $61,997 $49,385 Non-GAAP diluted EPS $0.20 $0.15 $0.37 $0.30 Adjusted EBITDA $51,015 $38,369 $95,078 $75,588 Adjusted EBITDA margin 25.0% 20.8% 23.7% 20.9%Free cash flow $2,733 $19,587 $10,392 $7,337 Free cash flow margin 1.3% 10.6% 2.6% 2.0% Vertex, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited) Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 Non-GAAP Cost of Revenues, Software Subscriptions: Cost of revenues, software subscriptions $52,170 $44,459 $103,346 $88,704 Stock-based compensation expense (1,083) (1,233) (2,828) (3,460) Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues (21,882) (16,670) (41,968) (32,525) Non-GAAP cost of revenues, software subscriptions $29,205 $26,556 $58,550 $52,719 Non-GAAP Cost of Revenues, Services: Cost of revenues, services $20,500 $18,900 $41,101 $38,723 Stock-based compensation expense (934) (1,024) (2,605) (2,720) Non-GAAP cost of revenues, services $19,566 $17,876 $38,496 $36,003 Non-GAAP Gross Profit: Gross profit $131,300 $121,200 $256,169 $234,194 Stock-based compensation expense 2,017 2,257 5,433 6,180 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Non-GAAP gross profit $155,199 $140,127 $303,570 $272,899 Non-GAAP Gross Margin: Total Revenues $203,970 $184,559 $400,616 $361,621 Non-GAAP gross margin 76.1 % 75.9 % 75.8 % 75.5 % Non-GAAP Research and Development Expense: Research and development expense $24,805 $20,582 $49,355 $41,468 Stock-based compensation expense (2,440) (2,512) (6,306) (6,864) Non-GAAP research and development expense $22,365 $18,070 $43,049 $34,604 Non-GAAP Selling and Marketing Expense: Selling and marketing expense $51,899 $48,454 $104,534 $96,609 Stock-based compensation expense (4,297) (3,235) (9,640) (9,041) Amortization of acquired intangible assets – selling and marketing expense (522) (571) (1,047) (1,102) Non-GAAP selling and marketing expense $47,080 $44,648 $93,847 $86,466 Non-GAAP General and Administrative Expense: General and administrative expense $51,142 $43,392 $105,481 $88,420 Stock-based compensation expense (5,008) (3,986) (10,891) (10,949) Severance expense(1) (2,689) (317) (10,097) (774) Acquisition-related retained employee compensation(2) (1,250) — (1,667) — Transaction costs(3) (6,250) — (8,800) — Amortization of cloud computing implementation costs – general and administrative expense (1,358) (1,018) (2,395) (2,024) Non-GAAP general and administrative expense $34,587 $38,071 $71,631 $74,673 Vertex, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited) Three months ended Six months ended June 30, June 30, (In thousands, except per share data)2026 2025 2026 2025 Non-GAAP Operating Income: Income (loss) from operations$(4,443) $(3,864) $(15,049) $622 Stock-based compensation expense 13,762 11,990 32,270 33,034 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Amortization of acquired intangible assets – selling and marketing expense 522 571 1,047 1,102 Amortization of cloud computing implementation costs – general and administrative expense 1,358 1,018 2,395 2,024 Severance expense(1) 2,689 317 10,097 774 Acquisition contingent consideration — 200 — 200 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400) Acquisition-related retained employee compensation(2) 1,250 — 1,667 — Transaction costs(3) 7,375 2,980 13,359 5,640 Non-GAAP operating income$44,295 $32,182 $81,916 $63,521 Non-GAAP Net Income: Net income (loss)$9,043 $(961) $6,533 $10,169 Income tax benefit (13,142) (1,675) (20,281) (6,780) Stock-based compensation expense 13,762 11,990 32,270 33,034 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Amortization of acquired intangible assets – selling and marketing expense 522 571 1,047 1,102 Amortization of cloud computing implementation costs – general and administrative expense 1,358 1,018 2,395 2,024 Severance expense(1) 2,689 317 10,097 774 Acquisition contingent consideration — 200 — 200 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400) Acquisition-related retained employee compensation(2) 1,250 — 1,667 — Transaction costs(3) 7,375 2,980 13,359 5,640 Non-GAAP income before income taxes 44,639 33,410 83,217 66,288 Income tax adjustment at statutory rate(4) (11,383) (8,519) (21,220) (16,903) Non-GAAP net income$33,256 $24,891 $61,997 $49,385 Non-GAAP Diluted EPS: Non-GAAP net income$33,256 $24,891 $61,997 $49,385 Interest expense (net of tax), convertible senior notes(5) 903 903 1,806 1,806 Non-GAAP net income used in dilutive per share computation$34,159 $25,794 $63,803 $51,191 Weighted average Class A and B common stock, diluted 161,392 162,589 161,337 162,656 Dilutive effect of convertible senior notes(5) 9,498 9,498 9,498 9,498 Total average Class A and B shares used in dilutive per share computation 170,890 172,087 170,835 172,154 Non-GAAP diluted EPS$0.20 $0.15 $0.37 $0.30 (1) The three and six months ended June 30, 2026 periods include $1,713 and $7,883, respectively, in severance costs related to the Value Creation Plan. (2) The acquisition-related compensation expenses recorded for the three and six months ended June 30, 2026 are related to the additional cash consideration payments of $10,000 to the sellers (the “Additional Cash Consideration”) in connection with the acquisition of Finta Inc. and its subsidiaries (“Brinta”). (3) The three and six months ended June 30, 2026 periods include $6,250 and $8,800, respectively, in costs incurred to support the execution of our Value Creation Plan, recorded in general and administrative expense. Amounts also include legal expenses associated with pending litigation related to claims the Company has made against a competitor. (4) Non-GAAP income before income taxes is adjusted for income taxes using the respective statutory tax rates for applicable jurisdictions, which for purposes of this determination were assumed to be 25.5%. (5) We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. Interest expense and additional dilutive shares related to the notes are added back to the calculation when their impact is dilutive. In periods when the impact is anti-dilutive, there is no add-back of interest expense or additional dilutive shares related to the notes. Vertex, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited) Three months ended Six months ended June 30, June 30, (Dollars in thousands)2026 2025 2026 2025 Adjusted EBITDA: Net income (loss)$9,043 $(961) $6,533 $10,169 Interest income, net (344) (1,228) (1,301) (2,767) Income tax benefit (13,142) (1,675) (20,281) (6,780) Depreciation and amortization – property and equipment 6,720 6,187 13,162 12,067 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Amortization of acquired intangible assets – selling and marketing expense 522 571 1,047 1,102 Amortization of cloud computing implementation costs – general and administrative expense 1,358 1,018 2,395 2,024 Stock-based compensation expense 13,762 11,990 32,270 33,034 Severance expense(1) 2,689 317 10,097 774 Acquisition contingent consideration — 200 — 200 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400) Acquisition-related retained employee compensation(2) 1,250 — 1,667 — Transaction costs(3) 7,375 2,980 13,359 5,640 Adjusted EBITDA$51,015 $38,369 $95,078 $75,588 Adjusted EBITDA Margin: Total revenues$203,970 $184,559 $400,616 $361,621 Adjusted EBITDA margin 25.0 % 20.8 % 23.7 % 20.9 %(1)The three and six months ended June 30, 2026 periods include $1,713 and $7,883, respectively, in severance costs related to the Value Creation Plan.(2)The acquisition-related compensation expenses recorded for the three and six months ended June 30, 2026 are related to the Additional Cash Consideration obligation associated with the acquisition of Brinta.(3)The three and six months ended June 30, 2026 periods include $6,250 and $8,800, respectively, in costs incurred to support the execution of our Value Creation Plan. Amounts also include legal expenses associated with pending litigation related to claims the Company has made against a competitor. Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 Free Cash Flow: Cash provided by operating activities $30,896 $46,003 $68,871 $60,808 Property and equipment additions (23,171) (21,512) (47,831) (42,906) Capitalized software additions (4,992) (4,904) (10,648) (10,565) Free cash flow $2,733 $19,587 $10,392 $7,337 Free Cash Flow Margin: Total revenues $203,970 $184,559 $400,616 $361,621 Free cash flow margin 1.3 % 10.6 % 2.6 % 2.0 % Investor Relations Contact:
Joe Crivelli
Vertex, Inc. [email protected]
A U.S. flag flies in front of the world headquarters of Vertex Pharmaceuticals in Boston, Massachusetts, U.S., October 23, 2019. REUTERS/Brian Snyder Purchase Licensing Rights, opens new tab
CompaniesAug 3 (Reuters) - Vertex Pharmaceuticals (VRTX.O), opens new tab on Monday raised the upper end of its annual revenue forecast, banking on robust demand for its cystic fibrosis treatments.
The company expects its annual revenue to be between $13.1 billion and $13.2 billion, compared with $12.95 billion to $13.1 billion previously. Analysts on average expect 2026 revenue of $13.07 billion, according to data compiled by LSEG.
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Vertex said its annual outlook excludes the pending Crinetics acquisition and that an updated forecast will be provided after the deal closes, which is expected in the third quarter.
Here are more details:
Vertex's $10 billion acquisition of Crinetics expands its reach beyond cystic fibrosis, adding endocrine disorders to a diversification strategy that already includes povetacicept in kidney, Casgevy in sickle cell and Journavx in pain, analysts had said.
The company's new cystic fibrosis drug, once-daily triple combination therapy Alyftrek, brought in sales of $573.6 million during the second quarter, compared with $156.8 million a year ago.
The company's older cystic fibrosis drug, combination therapy Trikafta, posted quarterly sales of $2.50 billion, missing estimates of $2.65 billion.
Cystic fibrosis is a rare and progressive genetic disorder caused by the absence of a protein regulating salt and water transport in and out of cells, leading to severe respiratory and digestive problems.
Second-quarter total revenue rose 12% to $3.33 billion from a year ago, beating estimates of $3.23 billion. The growth was driven by the continued performance of cystic fibrosis therapies, the company said.
Vertex reported quarterly profit of $4.73 per share on an adjusted basis, in line with estimates.
Reporting by Sneha S K in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Bloom Energy ve 2. čtvrtletí zvýšila tržby na něco přes 1 miliardu USD, meziročně o 166 %, a zvýšila celoroční výhled tržeb na 3,9 až 4,2 miliardy USD.
Bloom Energy (BE +6.08%) has been one of the hottest energy stocks to own over the past 12 months, rising around 500% during that stretch. Many growth investors see tremendous potential for the business given the mammoth energy needs of data centers, making it a compelling option for artificial intelligence (AI) investors seeking to profit from the tech build-out.
Shares of Bloom, however, have been coming under pressure in recent months, giving back some gains as broader market conditions are impacting many tech-related investments. On Monday, the energy stock closed at around $218 -- down 38% from its 52-week high of more than $351. Is now a good time to buy it?
Image source: Getty Images.
Bloom Energy's business is booming Last week, Bloom Energy reported its second-quarter earnings for the three-month period ending June 30. It was a tremendous performance for the energy company, whose revenue totaled just over $1 billion, representing a 166% year-over-year increase. On top of that, it raised its full-year guidance, now expecting revenue to be in the range of $3.9 billion to $4.2 billion, which, at the midpoint, translates to a 100% growth rate.
Bloom's CEO, KR Sridhar, says that demand "keeps accelerating every quarter" and that "Bloom is now a standard for AI onsite power." The company's solid oxide fuel cell systems can be relied on to deliver continuous electricity, making them extremely valuable for data centers. Bloom has been capitalizing on those needs as its business has taken off.
Today's Change
(
6.08
%) $
12.51
Current Price
$
218.32
Does the pullback in Bloom's price present a great buying opportunity for investors? Bloom's business is experiencing significant growth and is profitable, reporting $196 million in net income this past quarter, representing a solid margin of around 18%, and a big improvement from a year ago when it incurred a loss of $43 million. Its top and bottom lines have been progressing well, and if its earnings continue to improve, its valuation should look much more attractive in the future, as the big concern with Bloom is that, given its significant run-up in value, it isn't a cheap stock to own -- it trades at around 80 times its projected future earnings (based on analyst expectations).
At that kind of valuation, there's virtually no margin of safety for investors if things go awry and tech companies pull back on data center spending and investment. However, for investors willing to take on the risk and uncertainty associated with AI-related stocks, Bloom could be a compelling long-term option to consider right now.
CACI se stane technologickým partnerem společnosti Oracle pro modernizaci federálních HR systémů OPM v rámci 10leté zakázky v hodnotě téměř 400 milionů USD. Cílem je sjednotit systémy do jedné zabezpečené cloudové platformy.
, /PRNewswire/ -- CACI International Inc (NYSE: CACI) announced today that it will serve as one of Oracle's technology partners for the U.S. Office of Personnel Management's (OPM) Federal Human Resources Information Technology (HRIT) Modernization contract. Working alongside Oracle, Baker Tilly, and Deloitte on this 10-year contract worth nearly $400 million, CACI will modernize and consolidate disparate federal human resource systems into a single, secure, cloud-based platform for federal civilian employees, including HR professionals and leaders. The consolidation of federal HR systems into a single shared platform is expected to reduce taxpayer costs by more than 90 percent while improving efficiency, security, and service delivery across the government.
"Modernizing federal human resources systems at this scale requires trusted technology partners and deep implementation experience," said John Mengucci, CACI President and Chief Executive Officer. " We have already demonstrated that we can deliver complex HR modernization across the federal government. We will apply that experience to help OPM build a secure, modern platform that strengthens data quality, improves the employee experience, and provides the reliability and security federal agencies expect."
CACI will support the development, deployment, and implementation of the Oracle Fusion HCM SaaS solution, The platform will include embedded artificial intelligence, standardized data exchange, and continuously updated privacy and security protections.
The award builds on CACI and Oracle's proven success delivering large-scale federal HR modernization. Together, the companies supported the Army's Integrated Personnel and Pay System–Army (IPPS-A), the first successful modernization of the Army's personnel and pay environment after decades of unsuccessful efforts. IPPS-A now supports more than 1.1 million soldiers and established a proven model for transforming complex federal HR systems.
The OPM program represents the next step in applying that experience across a large federal HR modernization market. It also expands a long-standing CACI and Oracle partnership that includes work on the Global Combat Support System–Marine Corps (GCSS-MC) platform, the Defense Agencies Initiative (DAI), and the U.S. Air Force's Defense Enterprise Accounting and Management System (DEAMS) program.
About CACI
CACI International Inc (NYSE: CACI) is a technology-first national security company that expands the limits of national security through innovation, discipline, and operational excellence. We deliver advanced technologies that help our customers move faster, operate more efficiently, and anticipate and defeat evolving threats. Our 27,000 talented employees and strong culture drive our success and have earned CACI recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 500™, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit caci.com.
There are statements made herein which do not address historical facts and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the risk factors set forth in CACI's Annual Report on Form 10-K for the fiscal year ended June 30, 2025, and other such filings that CACI makes with the Securities and Exchange Commission from time to time. Any forward-looking statements should not be unduly relied upon and only speak as of the date hereof.
Alamo Group ve 2. čtvrtletí zvýšila čisté tržby o 7,6 % na 450,7 mil. USD a upravený zisk na akcii (EPS) na 2,82 USD. Růst táhla divize Industrial Equipment, jejíž tržby stouply o 12,8 %.
, /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today reported results for the second quarter of 2026.
Highlights:
Net sales were $450.7 million, up 7.6% compared to the second quarter of 2025 Net income was $30.9 million and adjusted net income was $34.2 million Fully diluted EPS was $2.55 per share, nearly flat compared to $2.57 per share in the second quarter of 2025 Adjusted fully diluted EPS was $2.82 per share, an increase of 7.2% compared to $2.63 per share in the second quarter of 2025 Adjusted EBITDA of $63.9 million was 14.2% of net sales, up 8.7% compared to the second quarter of 2025 Net sales in the Industrial Equipment Division were $271.6 million, up 12.8% compared to the second quarter of 2025 Net sales in the Vegetation Management Division were $179.1 million, up 0.4% compared to the second quarter of 2025 The Company renewed its credit facility in May 2026 with improved terms and preserved $602.5 million of committed capacity, including a $400.0 million revolver and $202.5 million term loan facility On June 30, 2026, cash was $195.0 million and total debt was $262.7 million Returned $19.0 million to stockholders in the first six months of 2026, including $10.8 million of share repurchases and $8.2 million of dividends Robert Hureau, Alamo Group's President and Chief Executive Officer, commented, "Our second quarter results reflect continued execution across the business, highlighted by strong sales growth in our Industrial Equipment Division, improved adjusted earnings, and solid adjusted EBITDA performance. Conditions across our end markets remain mixed, and our teams continue to focus on operational improvement, and disciplined execution of our strategic priorities."
Second Quarter Results
Net sales for the second quarter of 2026 were $450.7 million, an increase of 7.6% compared to $419.1 million for the second quarter of 2025. Net income for the second quarter of 2026 was $30.9 million, or $2.55 per fully diluted share compared to $31.1 million, or $2.57 per fully diluted share for the second quarter of 2025.
The Company also reported adjusted net income of $34.2 million, or $2.82 per fully diluted share, for the second quarter of 2026 compared to adjusted net income of $31.9 million, or $2.63 per fully diluted share for the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 was $63.9 million, or 14.2% of net sales, compared to $58.8 million, or 14.0% of net sales, for the second quarter of 2025.
Net sales in the Industrial Equipment Division were $271.6 million, an increase of 12.8% compared to $240.7 million for the second quarter of 2025. The year-over-year increase in Industrial Equipment Division sales reflected organic demand and the contribution from Petersen. Adjusted EBITDA in the Industrial Equipment Division for the second quarter of 2026 was $45.3 million, or 16.7% of net sales, compared to $40.3 million, or 16.8% of net sales, in the second quarter of 2025.
Net sales in the Vegetation Management Division were $179.1 million, an increase of 0.4% compared to $178.4 million in the second quarter of 2025. Adjusted EBITDA in the Vegetation Management Division for the second quarter of 2026 was $18.6 million, or 10.4% of net sales, compared to $18.5 million, or 10.4% of net sales, in the second quarter of 2025.
Robert Hureau, Alamo Group's President and Chief Executive Officer, commented, "Our Industrial Equipment Division delivered a strong quarter, with sales growth and solid profitability, including a meaningful contribution from Petersen following its acquisition earlier this year. In the Vegetation Management Division, sales were relatively stable compared to the prior year despite pressure in certain end markets. We are continuing to focus on improving margins through operational execution, cost discipline and targeted actions across the portfolio."
For the six months ended June 30, 2026, cash flow provided by operations was $22.7 million, investing cash outflow was $171.6 million, and financing cash inflow was $37.3 million.
In May 2026, the Company renewed its credit facility on improved terms across the facility, further strengthening its liquidity profile and financial flexibility. The successful renewal provides $602.5 million of committed capacity, including a $400.0 million revolving credit facility and a $202.5 million term loan facility, supporting ongoing capital deployment priorities, working capital needs and long-term growth initiatives. During the first six months of 2026, the Company funded the acquisition of Petersen, repurchased $10.8 million of its common stock and paid $8.2 million of dividends while maintaining a strong balance sheet. At June 30, 2026, cash was $195.0 million and total debt was $262.7 million.
Mr. Hureau added, "We ended the quarter with a strong liquidity position, supported by substantial cash balances and available borrowing capacity under our recently renewed credit facility. That flexibility allowed us to invest in organic growth, fund the Petersen acquisition and repurchase shares opportunistically during the first half of the year. We remain committed to a balanced capital allocation approach that prioritizes investment in organic growth and strategic acquisitions while returning capital to shareholders. We look forward to discussing our results and outlook in greater detail during our upcoming Earnings Conference Call."
Earnings Conference Call
The Company will host a conference call to discuss the results on Tuesday, August 4, 2026, at 10:00 a.m. ET. Hosting the call will be members of senior management. Individuals wishing to participate in the conference call should dial 1-833-816-1163 (domestic) or 1-412-317-1898 (international). For interested individuals unable to join the call, a replay will be available until Tuesday, August 11, 2026, by dialing 1-855-669-9658 (domestic) or 1-412-317-0088 (international), passcode 7509167.
The live broadcast of Alamo Group Inc.'s quarterly conference call will be available online at the Company's website, www.alamo-group.com (under "Investor Relations/Events and Presentations") on Tuesday, August 4, 2026, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call ends and will be archived on the Company's website for 60 days.
About Alamo Group
Alamo Group is a leader in the manufacture and sale of high-quality, purpose-built industrial and vegetation management equipment. We serve end-markets such as infrastructure building and maintenance, industrial construction, public works, land maintenance, agriculture and tree care. Our products are sold to independent equipment dealers and directly to contractors and municipalities. Product categories include vocational products (vacuum trucks, street sweepers, roadside safety equipment, excavators, and snow removal equipment) and light machinery (tractor mounted mowing equipment, land maintenance and recycling equipment) as well as related after-market parts and services. The Company operates two divisions: the Industrial Equipment Division and the Vegetation Management Division. Founded in 1969, the Company has approximately 3,800 employees and operates 27 manufacturing facilities in the United States, Canada, Europe, Brazil and Australia. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.
Forward Looking Statements
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade disputes, and the effects of the wars in Ukraine and the Middle East, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company's SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.
(Tables Follow)
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
6/30/2026
6/30/2025
6/30/2026
6/30/2025
Net sales:
Vegetation Management
$ 179,092
$ 178,358
$ 354,512
$ 342,248
Industrial Equipment
271,641
240,715
513,370
467,775
Total net sales
450,733
419,073
867,882
810,023
Cost of sales
339,877
310,781
652,221
598,890
Gross profit
110,856
108,292
215,661
211,133
Selling, general and administration expense
60,076
57,136
117,843
111,466
Amortization expense
5,015
4,078
9,894
8,127
Income from operations
45,765
47,078
87,924
91,540
Interest expense
(4,792)
(3,684)
(9,416)
(6,878)
Interest income
1,239
1,195
2,720
2,433
Other income (expense)
(619)
(3,183)
(587)
(3,846)
Income before income taxes
41,593
41,406
80,641
83,249
Provision for income taxes
10,653
10,300
20,517
20,343
Effective Tax Rate
25.6 %
24.9 %
25.4 %
24.4 %
Net Income
$ 30,940
$ 31,106
$ 60,124
$ 62,906
Net income per common share:
Basic
$ 2.57
$ 2.59
$ 4.99
$ 5.24
Diluted
$ 2.55
$ 2.57
$ 4.96
$ 5.21
Average common shares:
Basic
12,068
12,020
12,060
12,005
Diluted
12,122
12,083
12,112
12,066
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
June 30,
2026
June 30,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 194,995
$ 201,823
Accounts receivable, net
343,326
356,236
Inventories
432,262
372,074
Other current assets
22,114
12,461
Total current assets
992,697
942,594
Rental equipment, net
56,033
59,606
Property, plant and equipment, net
161,165
160,716
Goodwill
271,318
221,607
Intangible assets, net
212,999
145,040
Other non-current assets
29,390
28,086
Total assets
$ 1,723,602
$ 1,557,649
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable
$ 148,039
$ 111,820
Income taxes payable
3,685
3,973
Accrued liabilities
69,307
76,113
Current maturities of long-term debt
5,063
15,000
Total current liabilities
226,094
206,906
Long-term debt, net of current maturities
257,679
198,115
Long-term tax liability
470
626
Other long-term liabilities
24,127
25,975
Deferred income taxes
27,122
10,631
Total liabilities
535,492
442,253
Total stockholders' equity
1,188,110
1,115,396
Total liabilities and stockholders' equity
$ 1,723,602
$ 1,557,649
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Six Months Ended
June 30,
2026
2025
Operating Activities
Net income
$ 60,124
$ 62,906
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts
(230)
(11)
Depreciation - Property, plant and equipment
13,240
13,398
Depreciation - Rental equipment
5,927
5,819
Amortization of intangibles
9,894
8,127
Amortization of debt issuance
343
351
Stock-based compensation expense
3,613
4,670
Provision for deferred income tax expense (benefit)
3,195
(2,179)
Gain on sale of property, plant and equipment
(682)
(358)
Changes in operating assets and liabilities:
Accounts receivable
(62,851)
(37,267)
Inventories
(31,313)
(16,593)
Rental equipment
(958)
(12,263)
Prepaid expenses and other assets
814
1,923
Trade accounts payable and accrued liabilities
14,453
18,494
Income taxes payable
9,427
(9,439)
Other long-term liabilities, net
(2,339)
(667)
Net cash provided by operating activities
22,657
36,911
Investing Activities
Acquisitions, net of cash acquired
(162,933)
(17,571)
Purchase of property, plant and equipment
(10,319)
(12,971)
Proceeds from sale of property, plant and equipment
1,621
812
Net cash used in investing activities
(171,631)
(29,730)
Financing Activities
Borrowings on bank revolving credit facility
120,000
50,000
Repayments on bank revolving credit facility
(57,500)
(50,000)
Principal payments on long-term debt and finance leases
(5,016)
(7,504)
Debt issuance cost
(2,286)
—
Dividends paid
(8,201)
(7,196)
Proceeds from exercise of stock options
1,032
1,227
Common stock repurchased
(10,759)
(1,639)
Net cash provided by (used) in financing activities
37,270
(15,112)
Effect of exchange rate changes on cash and cash equivalents
(2,960)
12,480
Net change in cash and cash equivalents
(114,664)
4,549
Cash and cash equivalents at beginning of the year
309,659
197,274
Cash and cash equivalents at end of the period
$ 194,995
$ 201,823
Cash paid during the period for:
Interest
$ 9,569
$ 6,861
Income taxes
9,080
32,074
Alamo Group Inc.
Non-GAAP Financial Measures Reconciliation
From time to time, Alamo Group Inc. may disclose certain "Non-GAAP financial measures" in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States. The Securities and Exchange Commission (SEC) defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by Alamo Group are provided as additional information to investors in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.
Attachment 1 discloses non-GAAP measures such as Adjusted Operating Income, Adjusted Net Income and Adjusted Fully Diluted EPS, and adjusts for certain items that the management believes are not indicative of underlying performance. Adjusted Operating Income accounts for these impacts on a pre-tax basis and Adjusted Net Income and Adjusted Fully Diluted EPS are calculated on an after-tax basis. Management believes isolating certain items from the core operating performance improves comparability across periods, and reflects how management plans and assesses the business.
Attachment 2 shows a reconciliation of Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") and Adjusted EBITDA.
Attachment 3 reflects Division performance inclusive of non-GAAP financial measures such as Backlog, Adjusted Operating Income, Earnings Before Interest, Tax, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA.
Attachment 4 shows the net change in our total debt net of cash and discloses a non-GAAP financial presentation related to the impact of currency translation on net sales by division.
Attachment 1
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands, except per share numbers)
(Unaudited)
Non-GAAP Financial Measures
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Operating Income
$ 45,765
$ 47,078
$ 87,924
$ 91,540
CEO Transition(1)
—
229
—
451
Acquisition and Integration Expenses(2)
357
235
915
235
Restructuring Expenses(3)
3,998
605
5,940
1,367
Adjusted Operating Income
$ 50,120
$ 48,147
$ 94,779
$ 93,593
Adjusted Operating Income % net sales
11.1 %
11.5 %
10.9 %
11.6 %
Net Income
$ 30,940
$ 31,106
$ 60,124
$ 62,906
CEO Transition(1), net of tax benefit $56 and $110,
respectively
—
173
—
341
Acquisition and Integration Expenses(2), net of tax benefit
$91 and $57, $233 and $57, respectively
266
178
682
178
Restructuring Expenses(3), net of tax benefit $1,017 and
$148, $1,511 and $334, respectively
2,981
457
4,429
1,033
Adjusted Net Income
$ 34,187
$ 31,914
$ 65,235
$ 64,458
Fully Diluted EPS
$ 2.55
$ 2.57
$ 4.96
$ 5.21
CEO Transition(1)
—
0.01
—
0.03
Acquisition and Integration Expenses(2)
0.02
0.01
0.06
0.01
Restructuring Expenses(3)
0.25
0.04
0.37
0.09
Adjusted Fully Diluted EPS
$ 2.82
$ 2.63
$ 5.39
$ 5.34
Notes:
1.
CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses
2.
Acquisition and integration expenses include advisory fees and other related costs for both successful and unsuccessful deals, integration and divestiture expenses
3.
Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements
Attachment 2
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
EBITDA
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Net Income
$ 30,940
$ 31,106
$ 60,124
$ 62,906
Interest, net
3,553
2,489
6,696
4,445
Provision for income taxes
10,653
10,300
20,517
20,343
Depreciation
9,416
9,772
19,167
19,217
Amortization
5,015
4,078
9,894
8,127
EBITDA
$ 59,577
$ 57,745
$ 116,398
$ 115,038
EBITDA % net sales
13.2 %
13.8 %
13.4 %
14.2 %
Adjustments:
CEO Transition(1)
$ —
$ 229
$ —
$ 451
Acquisition and Integration Expenses(2)
357
235
915
235
Restructuring Expenses(3)
3,998
605
5,940
1,367
Adjusted EBITDA
$ 63,932
$ 58,814
$ 123,253
$ 117,091
Adjusted EBITDA % net sales
14.2 %
14.0 %
14.2 %
14.5 %
Notes:
1.
CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses
2.
Acquisition and integration expenses include advisory fees and other related costs for both successful and unsuccessful deals, integration and divestiture expenses
3.
Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements
Attachment 3
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
Industrial Equipment Division Performance
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Backlog
$ 365,286
$ 509,610
Net Sales
$ 271,641
$ 240,715
513,370
467,775
Income from Operations
36,860
34,327
68,506
65,477
Income from Operations % net sales
13.6 %
14.3 %
13.3 %
14.0 %
Adjustments:
CEO Transition(1)
$ —
$ 121
$ —
$ 240
Acquisition and Integration Expenses(2)
221
125
621
125
Restructuring Expenses(3)
1,389
—
1,709
—
Adjusted Operating Income
$ 38,470
$ 34,573
$ 70,836
$ 65,842
Adjusted Operating Income % of sales
14.2 %
14.4 %
13.8 %
14.1 %
Depreciation
5,339
5,519
10,826
10,912
Amortization
2,031
1,132
3,954
2,261
Other income (expense)
(508)
(895)
(535)
(1,255)
EBITDA
$ 43,722
$ 40,083
$ 82,751
$ 77,395
EBITDA % net Sales
16.1 %
16.7 %
16.1 %
16.5 %
Adjustments:
CEO Transition(1)
$ —
$ 121
$ —
$ 240
Acquisition and Integration Expenses(2)
221
125
621
125
Restructuring Expenses(3)
1,389
—
1,709
—
Adjusted EBITDA
$ 45,332
$ 40,329
$ 85,081
$ 77,760
Adjusted EBITDA % net sales
16.7 %
16.8 %
16.6 %
16.6 %
Notes:
1.
CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses
2.
Acquisition and integration expenses include advisory fees and other related costs for both successful and unsuccessful deals, integration and divestiture expenses
3.
Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements
Attachment 3 (Continued)
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
Vegetation Management Division Performance
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Backlog
$ 184,031
$ 177,625
Net Sales
$ 179,092
$ 178,358
354,512
342,248
Income from Operations
8,905
12,751
19,418
26,063
Income from Operations % net sales
5.0 %
7.1 %
5.5 %
7.6 %
Adjustments:
CEO Transition(1)
$ —
$ 108
$ —
$ 211
Acquisition and Integration Expenses(2)
136
110
294
110
Restructuring Expenses(3)
2,609
605
4,231
1,367
Adjusted Operating Income
$ 11,650
$ 13,574
$ 23,943
$ 27,751
Adjusted Operating Income % of sales
6.5 %
7.6 %
6.8 %
8.1 %
Depreciation
4,077
4,253
8,341
8,305
Amortization
2,984
2,946
5,940
5,866
Other income (expense)
(111)
(2,288)
(52)
(2,591)
EBITDA
$ 15,855
$ 17,662
$ 33,647
$ 37,643
EBITDA % net Sales
8.9 %
9.9 %
9.5 %
11.0 %
Adjustments:
CEO Transition(1)
$ —
$ 108
$ —
$ 211
Acquisition and Integration Expenses(2)
136
110
294
110
Restructuring Expenses(3)
2,609
605
4,231
1,367
Adjusted EBITDA
$ 18,600
$ 18,485
$ 38,172
$ 39,331
Adjusted EBITDA % net sales
10.4 %
10.4 %
10.8 %
11.5 %
Notes:
1.
CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses
2.
Acquisition and integration expenses include advisory fees and other related costs for both successful and unsuccessful deals, integration and divestiture expenses
3.
Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements
Attachment 4
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
Consolidated Net Change of Total Debt, Net of Cash
June 30, 2026
June 30, 2025
Net Change
Current maturities
$ 5,063
$ 15,000
Long-term debt, net of current
257,679
198,115
Total debt
$ 262,742
$ 213,115
Total cash
194,995
201,823
Total Debt, Net of Cash
$ 67,747
$ 11,292
$ 56,455
Impact of Currency Translation on Net Sales by Division
Robert Half schválila čtvrtletní peněžní dividendu 0,59 USD na akcii kmenových akcií. Vyplacena bude 15. září 2026 akcionářům zapsaným k 25. srpnu 2026.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Robert Half Inc. (NYSE: RHI) today announced that its board of directors declared a quarterly cash dividend of $0.59 per share on the company's common stock. The dividend is payable on September 15, 2026, to shareholders of record at the close of business on August 25, 2026.
About Robert Half
Robert Half is the world's first and largest specialized talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. We offer contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and we also provide executive search services. Robert Half is the parent company of Protiviti, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions. In the past 12 months, Robert Half has been recognized as one of America's Most Innovative Companies by Fortune and, with Protiviti, has been named as a Fortune® Most Admired Company™ and one of the 100 Best Companies to Work For®. Explore talent solutions, research and insights at roberthalf.com.
Eversource Energy ve 2. čtvrtletí vykázala zisk 87 centů na akcii, pod odhadem 88 centů, a tržby 2,90 miliardy USD také zaostaly za očekáváním. Firma potvrdila výhled EPS pro rok 2026 na 4,57–4,72 USD.
Key Takeaways Eversource Energy's Q2 earnings fell 9.4% as transmission and natural gas results weakened. Operating expenses rose 8.6%, while operating income fell 18.4% and interest costs climbed 21.3%. ES reaffirmed 2026 EPS guidance of $4.57-$4.72 and its $26.5 billion five-year utility capital plan. Eversource Energy (ES - Free Report) reported second-quarter 2026 non-GAAP earnings of 87 cents per share, missing the Zacks Consensus Estimate of 88 cents by 1.14%. Earnings declined 9.4% from 96 cents reported in the year-ago quarter, reflecting pressure in its transmission and natural gas businesses.
Total Revenues of ESRevenues of $2.90 billion missed the Zacks Consensus Estimate of $3.14 billion by 7.63%. Total revenues also increased 2.3% from the year-ago figure of $2.84 billion.
Rising Operating Costs Pressure ES’ ProfitabilityTotal operating expenses were $2.36 billion, up 8.6% year over year, including the charge associated with the Aquarion sale. The increase was primarily due to a 14.8% rise in purchased power, purchased natural gas and transmission expenses, a 2.8% increase in operations and maintenance costs, 9.9% growth in depreciation expense, a 28% jump in energy efficiency program costs and a 7.5% surge in taxes other than income taxes.
Operating income declined 18.4% year over year to $540.9 million.
Interest expenses amounted to $355.5 million, 21.3% higher than the prior-year level.
Eversource Energy Reports Mixed Segment ResultsElectric Transmission: Earnings totaled $183.7 million, down 11.7% from $208 million a year earlier. The decrease reflected the lower allowed return on equity ordered by the Federal Energy Regulatory Commission and higher interest expense, partly offset by continued transmission investment.
Electric Distribution: Earnings increased 5.5% to $170.4 million. Higher base distribution rates in Massachusetts and New Hampshire and ongoing system investments more than offset increased interest, depreciation and property-tax expenses.
Natural Gas Distribution: Earnings fell 15.9% to $29.7 million. The decline primarily reflected the absence of a prior-year benefit tied to previously expensed costs that were subsequently approved for recovery.
Water Distribution: Earnings decreased to $11.6 million from $14.4 million due to higher operating and maintenance expenses and depreciation.
Eversource Parent & Other Companies: The segment reported a loss of $66.3 million, narrower than the year-ago quarter’s reported loss of $66.5 million.
ES Reaffirms Earnings Growth & Capital Investment PlansEversource Energy expects 2026 earnings in the range of $4.57-$4.72 per share.
Management also maintained its long-term earnings growth target of 5-7% through 2030, using the adjusted 2026 guidance midpoint of $4.65 as the base. The Zacks Consensus Estimate for 2026 EPS is pegged at $4.64, slightly below the midpoint of the company's guided range.
The company expects cash from operations of $23.6-$23.9 billion during 2026-2030.
Eversource Eergy reaffirmed its five-year utility capital plan of $26.5 billion. Potential additions include part of the company's roughly $700 million share of a proposed New England transmission project and advanced-metering infrastructure investments in Connecticut. The preliminary transmission selection carries a total estimated cost of $2.2 billion and an expected 2032 in-service date.
Eversource Energy expects to fund $7.0-$7.5 billion of its capital program through debt and alternative financing solutions, including hybrid securities, while minimizing common equity issuances. The company also intends to use the $1.7 billion in net proceeds from the completed Aquarion divestiture to repay parent-company debt.
The company expects to distribute dividends of $6.7-$7.2 billion during 2026-2030.
ES’ Zacks RankEversource Energy currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Utility ReleasesEvergy (EVRG - Free Report) is scheduled to report second-quarter 2026 results on Aug. 6, before the market opens. The Zacks Consensus Estimate for sales is pegged at $1.47 billion, which suggests a year-over-year increase of 2.63%.
EVRG’s long-term (three to five years) earnings growth rate is 9.07%. The Zacks Consensus Estimate for 2026 earnings is pinned at $4.25 per share, which implies a year-over-year improvement of 10.97%.
Consolidated Edison (ED - Free Report) is slated to report second-quarter 2026 results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.
ED’s long-term earnings growth rate is 6.32%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 6.84%.
Vistra (VST - Free Report) is scheduled to report second-quarter 2026 results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.02 per share, which implies year-over-year growth of 100%.
VST's dividend yield is 0.92%. The Zacks Consensus Estimate for 2026 earnings is pinned at $9.39 per share, which implies a year-over-year improvement of 78.52%.
OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (“Paycom”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, announced today that its Board of Directors declared a cash dividend in the amount of $0.375 per share of common stock, to be paid on Sept. 8, 2026, to all stockholders of record as of the close of business on Aug. 24, 2026.
About Paycom
Paycom Software, Inc. (NYSE: PAYC) is a cloud-based human capital management software provider that allows organizations of all sizes across the U.S. and internationally to set numerous HR and payroll tasks to “automatic” through employee-first technology. Built on a truly single database, Paycom’s full-solution automation manages the entire employment life cycle, helping organizations streamline processes and improve data accuracy. With its industry-first AI engine, IWant™, Paycom provides instant access to accurate employee data without requiring users to navigate or learn the software. For over 25 years, Paycom has been repeatedly recognized by third‑party reviewers as a leading payroll and HCM solution.
Diamondback Energy ve 2. čtvrtletí poprvé v historii překročila 1 milion BOE denně, když celková produkce dosáhla 1 018 MBOE/d. Firma zároveň zvýšila celoroční výhled těžby ropy i celkové produkce.
This letter is meant to be a supplement to our earnings release and is being furnished to the Securities and Exchange Commission (SEC) and released to our stockholders simultaneously with our earnings release. Please see the information regarding forward-looking statements and non-GAAP financial information included at the end of this letter.
Macro Update
The disruption of oil flows through the Strait of Hormuz has triggered the largest supply shock in the history of the global oil market. Global oil production in May was estimated to be 13.6 million barrels per day below pre-conflict levels, with global observed inventories drawing an estimated 143 million barrels in the month1. As a result, prices spiked and volatility surged.
Diamondback responded to this price signal by leveraging our significant inventory of drilled but uncompleted wells. We were able to quickly add an additional completion crew and immediately brought incremental barrels to market, adding significant cash flow and value for our stockholders.
Today, the macro backdrop remains highly volatile. Oil flows are recovering in fits and starts with significant future uncertainty. The supply shock drove record global inventory draws, averaging an estimated 3.8 million barrels per day from the onset of the conflict and accelerating to an estimated 4.6 million barrels per day in May2. These draws will eventually have to reverse, and we believe the restocking required to rebuild global inventories has structurally raised the floor for oil prices compared to pre-conflict prices. The timing of the eventual supply normalization is impossible to predict and we therefore expect this volatility to continue. Through this volatility, our priorities remain unchanged: execute with the best capital efficiency in the industry and allocate Free Cash Flow appropriately to maximize long-term stockholder value.
1 Source: International Energy Agency, Oil Market Report – June 2026 (June 17, 2026).
2 Inventory figures reflect International Energy Agency's preliminary estimates of observed global stocks.
Second Quarter 2026 Operational Performance
Second quarter oil production averaged 525 MBO/d, 1% above what we produced in the first quarter and at the top end of our guidance range. Total production for the quarter averaged 1,018 MBOE/d, putting Diamondback’s average production above one million barrels of oil equivalent per day for the first time in our Company’s history.
We are honored to join the million barrel of oil equivalent per day “club” as an independent oil and gas company born and raised in Midland, Texas. It was just 2012 when Diamondback was barely producing 3,000 BOE/d from vertical Wolfberry wells. That same year, Diamondback launched a failed sales process. In fact, we received zero bids from eight potential suitors, forcing us to go public as our only viable strategic alternative. Those early days formed our identity and ingrained the unique culture we still have today. I, and all our employees, owe a debt of gratitude to the founders who took a chance on building this company; our success is directly attributable to the decisions they made back then.
As a result of our year-to-date volume outperformance, we are raising full-year oil production guidance to 522+ MBO/d (from 520+) and total production guidance to 1,000+ MBOE/d (from 972+). Our full-year capex guidance remains unchanged at approximately $3.90 billion.
Cash capital expenditures for the quarter were $996 million, in line with guidance. While we have not seen significant service cost inflation to date outside of fuel and fuel-adjacent costs, we expect to see inflation on fixed costs (such as casing) through the rest of this year and into 2027 as we anticipate activity levels and rig count in the Permian Basin to grow. We have a track record of offsetting inflation with efficiency gains in the field and we will challenge our teams to do so again during this cycle.
Lease operating expense declined in the second quarter to $5.96 per BOE from $6.21 in the first quarter as the team did a great job minimizing both production downtime and our backlog ratio. Additionally, cash G&A fell to $0.52 per BOE from $0.65 per BOE in the first quarter. Together these improvements brought total cash operating expense to $10.96 per BOE, down ~3% quarter over quarter.
Our operations teams delivered another strong quarter while managing a meaningful step-up in activity. The team drilled its longest well ever at a record 31,465' total depth, drilled the three lowest-cost Wolfcamp D wells in our history and executed our first six U-turn wells (3-mile laterals, 1.5 miles out and back). Completions delivered its first full quarter of continuous pumping with 21.3 hours of average pumping time per day which translated to an average of ~4,700 lateral feet completed per day. Equipment cost per well fell ~14% quarter over quarter, and our gas offload strategy contributed to an estimated ~24% reduction in flaring quarter over quarter, helping protect ~1,400 MBO of oil that would otherwise have been choked back due to takeaway constraints.
We continue to test and develop our chemical Enhanced Oil Recovery program, and the early results have us increasingly excited about the opportunity ahead. Our second batch of well tests is currently flowing back with encouraging results, building on the momentum of our pilot 50-well program that we completed in the second half of 2025. We believe improving oil recovery factors across the Permian Basin is one of the most important frontiers emerging in our industry today. Unlocking even a fraction more of the barrels in place beneath our thousands of producing wells represents one of the highest-return uses of capital available anywhere in our business. A modest uplift in recovery factor, applied across a well base of this scale, has the potential to rival the value created by the drillbit itself without adding a single new location to our inventory.
We intend to be on the front foot here: not only learning and testing new methods, but also positioning ourselves to invest behind them with conviction as the data set matures. We are building the technical foundation today to deploy capital across these opportunities at scale tomorrow. The durability and low cost of our inventory are precisely what afford us the flexibility to pursue this next leg of value creation at our own pace.
Second Quarter 2026 Financial Performance
We generated $3.6 billion in net cash from operating activities in the second quarter, which translated to $2.3 billion of Free Cash Flow and Adjusted Free Cash Flow.
Per-share growth through the commodity price cycles remains a core tenet of our value proposition, and nothing demonstrates this better than the nearly two years since closing the Endeavor merger. Comparing the second quarter of 2026 to the second quarter of 2024: net cash provided by operating activities per share has grown 49%, Free Cash Flow per share has grown 81% and oil production per share has grown 21%. These results extend a decade of compounding per-share metrics: net cash provided by operating activities per share has grown roughly nineteen-fold since 2016, oil production and reserves per share have more than quadrupled and the dividend has compounded 8.8 times since its 2018 initiation.
Gas Monetization
Second quarter gas realizations were negative $2.15/Mcf (pre-hedge), a direct consequence of insufficient takeaway capacity trapping gas in West Texas. This issue was compounded by spring pipeline maintenance that drove Waha pricing to a record low of approximately negative $10/Mcf. The basis hedges we layered on over the last couple years helped insulate us from this negative pricing complex, but we did not exit the quarter unscathed. With new takeaway capacity coming online, Waha turned positive in July and has held up since, setting up what we view as a meaningful tailwind for the coming years.
To combat the persistent gas takeaway issues in the Permian Basin, we have deliberately been building in optionality for our gas molecules. We have significantly increased our pipeline capacity via commitments to multiple long-haul pipelines to the Gulf Coast while also working to develop local paths to in-basin demand. Our additional secured takeaway capacity is expected to more than double our long-haul takeaway by the end of this year, structurally shifting our price exposure toward larger demand hubs.
We believe in the long-term thesis for gas demand growth in this country, with both LNG buildout and power generation driving this need for incremental future supply. We always talk internally that the Permian “hasn’t even tried to produce gas yet,” and we think that still holds true today. Should there ever be a price signal calling for Permian gas growth, whether it be for power needs for AI data centers, LNG demand or simply replacing supply, we are confident the Permian Basin will be able to answer that call.
Over the past few months, we have been pleased to see announcements for sizable behind-the-meter data center buildouts in the Permian Basin. We continue to firmly believe the best way to assuage the public’s concerns on data centers and their potential impact on the average American’s energy affordability is to build them where energy (through the natural gas molecule) and land are abundant. There is no better place in the country to do this today than the Permian Basin. Diamondback continues to work on bringing additional gigawatt+ scale power opportunities to West Texas on our surface acreage. We have a large, shovel-ready project that we are working to bring to fruition and will provide more detail when we have a signed long-term contract with a credible counterparty.
Capital Allocation
Last quarter, we emphasized that maximizing flexibility for the allocation of Free Cash Flow is paramount to long-term value creation in a cyclical, commodity-based business. The second quarter proved this point. By removing our prior formulaic return of capital framework, we were able to materially accelerate absolute debt reduction. We reduced consolidated total debt by approximately $1.3 billion quarter over quarter to $12.8 billion, and consolidated net debt by approximately $1.6 billion quarter over quarter to $12.3 billion. In the last 12 months, we have reduced our consolidated total debt by $2.6 billion, or ~17%, and our consolidated net debt by $2.8 billion, or ~19%. We expect to continue to prioritize debt reduction and use excess Free Cash Flow to improve the balance sheet.
Today, we also announced that our Board of Directors has approved the doubling of our share repurchase authorization to $16.0 billion. Since initiating our buyback program in 2021, we have repurchased ~43 million shares for $6.1 billion at an average price of $142.44 per share. Today’s increased authorization provides significant capacity and flexibility to opportunistically repurchase our shares when they are trading below our view of per share value at a conservative mid-cycle oil price with a rate of return above our implied cost of capital.
For example, during the second quarter, we repurchased approximately 756,000 shares for $141 million at an average price of $186.63 per share. As the share price weakened early in the third quarter, we increased our pace, repurchasing 547,716 additional shares for $100 million at an average price of approximately $182.32 per share. This is exactly how the program is set to work: maximize flexibility to step in when volatility creates opportunity.
Closing
During the second quarter, we were able to move quickly to take advantage of an elevated oil pricing environment. Our operations team demonstrated why they are the best in the business, putting us in an advantaged position to bring forward material value on our differentiated asset base. We were able to generate significant Free Cash Flow, allocate it appropriately and continue to create stockholder value for you, the owners of the Company.
As always, we are grateful for the trust you have placed in us and thank you for your interest in Diamondback Energy.
Sincerely,
Kaes Van't Hof
Chief Executive Officer and Director
This letter contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the Double Eagle acquisition and the Sitio acquisition completed by Diamondback's subsidiary, Viper Energy, Inc. (“Viper”), and other acquisitions, divestitures or reorganizations); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this letter, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: geopolitics and market conditions, including changes in supply and demand levels for oil, natural gas and natural gas liquids and the resulting impact on the price for those commodities; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers and any resulting trade tensions; actions taken by the members of OPEC and its non-OPEC allies (OPEC+) affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments; changes in general economic, business or industry conditions, including changes in foreign currency exchange rates, interest rates, inflation rates, and instability in the financial sector; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change, changing political and social perspectives on climate change and other environmental, social and governance factors, and risks from our publicly disclosed targets related to sustainability and emissions reduction initiatives; challenges in developing our existing leasehold acreage and finding, developing or acquiring additional reserves; restrictions on the use of water, including limits on the use of produced water and a moratorium on new produced water disposal well permits recently imposed by the Texas Railroad Commission in an effort to control induced seismicity in the Permian Basin; significant declines in prices for oil, natural gas, or natural gas liquids, which could require recognition of significant impairment charges; conditions in the capital, financial and credit markets, including the availability and pricing of capital for acquisitions, exploration and development operations; challenges with employee retention and an increasingly competitive labor market; changes in availability or cost of rigs, equipment, raw materials, supplies and oilfield services; changes in safety, health, environmental, tax and other regulations or requirements (including those addressing air emissions, water management, or the impact of global climate change); security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business; lack of, or disruption in, access to adequate and reliable electrical power, internet and telecommunication infrastructure, information and computer systems, transportation, processing, storage and other facilities for our oil, natural gas and natural gas liquids; failures or delays in achieving expected reserve or production levels from existing and future oil and natural gas developments, including due to operating hazards, drilling risks, or the inherent uncertainties in predicting reserve and reservoir performance; inability to keep pace with technological developments in our industry; failure to meet our obligations under our oil purchase contracts; loss of one or more customers or their inability to meet their obligations; geographical concentration of our primary operations; risks from our return of capital commitment, and uncertainties over our future dividends and share repurchases; difficulty in obtaining necessary approvals and permits; severe weather conditions and natural disasters; changes in the financial strength of counterparties to our credit facilities and hedging contracts; our substantial indebtedness and restrictions to our operating and financial flexibility; changes in our credit rating; failure to identify, complete and successfully integrate acquisitions, including Viper’s Riverbend acquisition, the Double Eagle acquisition and Viper’s Sitio acquisition; the Endeavor stockholders’ ability to significantly influence our business and potential conflicts of interest; and other risks described in Part I, Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 25, 2026, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.
In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.
Non-GAAP Financial Measures
This letter includes financial information not prepared in conformity with generally accepted accounting principles (GAAP), such as Free Cash Flow, Free Cash Flow per share, Adjusted Free Cash Flow, and net debt. The non-GAAP information should be considered by the reader in addition to, but not instead of, financial information prepared in accordance with GAAP. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in Diamondback's quarterly results, which are posted on Diamondback's website at www.diamondbackenergy.com/investors and included as Exhibit 99.1 to the Current Report on Form 8-K filed by Diamondback with the SEC that also includes this letter as Exhibit 99.2. Furthermore, this letter includes or references certain forward-looking, non-GAAP financial measures. Because Diamondback provides these measures on a forward-looking basis, it cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP financial measures, such as future impairments and future changes in working capital. Accordingly, Diamondback is unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures. Diamondback believes that these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing Diamondback's forecasted financial performance to the forecasted financial performance of other companies in the industry.
onsemi ve 2. čtvrtletí zvýšila tržby na 1,604 miliardy USD a čistý zisk na 226,8 milionu USD. Výhled na 3. čtvrtletí počítá s tržbami 1,650 až 1,750 miliardy USD.
SCOTTSDALE, Ariz., Aug. 03, 2026 (GLOBE NEWSWIRE) -- onsemi (the “Company”) (Nasdaq: ON) today announced its second quarter 2026 results with the following highlights:
Revenue of $1,604 million, increasing 9% year-over-yearGAAP gross margin of 38.4% and non-GAAP gross margin of 39.3%GAAP operating margin of 16.1% and non-GAAP operating margin 20.8%GAAP diluted earnings per share of $0.56 and non-GAAP diluted earnings per share $0.74Cash from operations increased by 150% and free cash flow of $425.4 million quadrupled year-over-yearShare repurchases of $332 million, bringing year-to-date shareholder returns to approximately 105% of free cash flow “We delivered revenue, gross margin and earnings per share above the midpoint of guidance, reflecting strengthening demand, particularly across AI-driven applications, and growing customer adoption of our differentiated solutions, including Treo and our high voltage power solutions,” said Hassane El-Khoury, President and CEO of onsemi. “AI data center remains our fastest-growing business, and we now expect revenue to more than double in 2026, demonstrating the strength of our intelligent power portfolio and growing customer adoption across the power tree.”
“Our results demonstrate the operating leverage in our business model,” said Thad Trent, EVP and CFO of onsemi. “Year-over-year earnings per share grew four times faster than revenue, driven by gross margin expansion and disciplined cost management. Free cash flow margin expanded from approximately 7% to 27% year-over-year, reflecting the strength of our operating model, and as demand continues to improve, we are increasingly confident in our ability to drive profitable growth and long-term shareholder value.”
Business Highlights:
Announced the planned acquisition of Synaptics, expanding capabilities in connected compute at accretive gross margins to support a market expansion while complementing leadership in power and sensingExpanded role in NVIDIA MGX ecosystem as AI infrastructure power demands accelerateSecured strategic AI data center platform wins with Great Wall, a leading China cloud infrastructure power supplier, expanding EliteSiC and silicon MOSFETs and controller contentLaunched GaNEXUS, onsemi's gallium nitride power portfolio spanning 40V to 650V, serving AI data centers, robotics, and industrial infrastructure applicationsExtended leadership in automotive zonal architecture and on-board charging with Rivian’s R2 platform with power solutions that enable efficient power distribution and conversion Selected financial results for the quarter are shown below with comparable periods (unaudited):
GAAP Non-GAAP(Revenue and Net Income in millions)Q2 2026
Q1 2026
Q2 2025
Q2 2026
Q1 2026
Q2 2025
Revenue$1,603.5 $1,513.3 $1,468.7 $1,603.5 $1,513.3 $1,468.7 Gross Margin 38.4% 38.5% 37.6% 39.3% 38.5% 37.6% Operating Margin 16.1% (3.5)% 13.2% 20.8% 19.1% 17.3% Net Income (loss) attributable to ON Semiconductor Corporation$226.8 ($33.4) $170.3 $293.8 $253.1 $221.3 Diluted Earnings (loss) Per Share$0.56 ($0.08) $0.41 $0.74 $0.64 $0.53 Revenue Summary
(in millions)
(Unaudited)
Quarters Ended
Business SegmentQ2 2026 Q1 2026 Q2 2025 Sequential
ChangeYear-over-
Year ChangePSG$829.0 $736.6 $698.2 13%19%AMG 545.7 540.4 555.9 1%(2)%ISG 228.8 236.3 214.6 (3)%7%Total$1,603.5 $1,513.3 $1,468.7 6%9% THIRD QUARTER 2026 OUTLOOK
The following table outlines onsemi’s projected third quarter of 2026 GAAP and non-GAAP outlook.
Total onsemi
GAAPSpecial
Items **Total onsemi
Non-GAAP***Revenue$1,650 to $1,750 million-$1,650 to $1,750 millionGross Margin39.9% to 41.9%0.1%40.0% to 42.0%Operating Expenses$318 to $333 million$15 million$303 to $318 millionOther Income and Expense (including interest), net($18 million)-($18 million)Diluted Earnings Per Share$0.79 to $0.91$0.02$0.81 to $0.93Diluted Shares Outstanding *402 million7 million395 million *Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher. **Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; restructuring-related cost of revenue charges; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook. ***We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names. TELECONFERENCE
onsemi will host a conference call for the financial community at 5 p.m. Eastern Time (ET) on August 3, 2026 to discuss this announcement and onsemi’s second quarter 2026 results. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com. The webcast replay will be available at this site approximately one hour following the live broadcast and will continue to be available for approximately 30 days following the conference call. Investors and interested parties can also access the conference call by pre-registering here.
About onsemi
onsemi (Nasdaq: ON) delivers intelligent power and sensing technologies that enable electrification, energy efficiency, safety, and automation across automotive, industrial, and AI data center end-markets. With a highly differentiated and innovative product portfolio, onsemi helps customers solve complex challenges to achieve higher efficiency, improved performance, and lower system cost, while supporting a safer, cleaner, and more energy-efficient world. onsemi is part of the S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.
Krystal HeatonParag AgarwalDirector, Head of Public RelationsVice President - Investor Relations & Corporate Developmentonsemionsemi(480) 242-6943(602) [email protected]@onsemi.com This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the third quarter of 2026. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 9, 2026 (the “2025 Form 10-K”) and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2025 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share and percentage data)
Quarters Ended Six Months Ended July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Revenue$1,603.5 $1,513.3 $1,468.7 $3,116.8 $2,914.4 Cost of revenue 987.2 930.2 916.8 1,917.4 2,068.7 Gross profit 616.3 583.1 551.9 1,199.4 845.7 Gross margin 38.4% 38.5% 37.6% 38.5% 29.0%Operating expenses: Research and development 140.8 144.3 143.8 285.1 307.9 Selling and marketing 63.3 63.0 63.3 126.3 131.6 General and administrative 101.9 89.4 91.2 191.3 175.6 Amortization of intangible assets 10.5 10.5 11.0 21.0 22.4 Restructuring, asset impairments and other, net 41.2 329.3 49.2 370.5 588.5 Total operating expenses 357.7 636.5 358.5 994.2 1,226.0 Operating income (loss) 258.6 (53.4) 193.4 205.2 (380.3)Other income (expense), net: Interest expense (13.7) (12.7) (17.9) (26.4) (35.9)Interest income 17.4 17.7 25.2 35.1 51.8 Other income 8.6 3.8 1.5 12.4 5.6 Other income (expense), net 12.3 8.8 8.8 21.1 21.5 Income (loss) before income taxes 270.9 (44.6) 202.2 226.3 (358.8)Income tax (provision) benefit (43.4) 11.7 (30.5) (31.7) 45.3 Net income (loss) 227.5 (32.9) 171.7 194.6 (313.5)Less: Net income attributable to non-controlling interest (0.7) (0.5) (1.4) (1.2) (2.3)Net income (loss) attributable to ON Semiconductor Corporation$226.8 $(33.4) $170.3 $193.4 $(315.8) Net income (loss) per share of common stock attributable to ON Semiconductor Corporation: Basic$0.58 $(0.08) $0.41 $0.49 $(0.76)Diluted$0.56 $(0.08) $0.41 $0.48 $(0.76)Weighted average common shares outstanding: Basic 390.3 394.1 414.6 392.2 418.0 Diluted 404.4 394.1 414.9 401.5 418.0 ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED BALANCE SHEETS
(in millions)
July 3, 2026 April 3, 2026 December 31, 2025Assets Cash and cash equivalents$3,514.5 $2,003.6 $2,147.6 Short-term investments 350.0 400.0 400.0 Receivables, net 897.2 862.8 908.0 Inventories 2,047.5 2,049.2 1,989.6 Assets held-for-sale 31.4 40.4 25.0 Other current assets 441.2 419.6 352.9 Total current assets 7,281.8 5,775.6 5,823.1 Property, plant and equipment, net 2,924.9 3,035.6 3,369.0 Goodwill 1,687.6 1,679.9 1,679.9 Intangible assets, net 329.4 332.2 343.9 Deferred tax assets 1,014.3 933.2 929.1 ROU financing lease assets — — 23.1 Other assets 247.1 254.3 356.0 Total assets$13,485.1 $12,010.8 $12,524.1 Liabilities and Stockholders’ Equity Accounts payable$498.3 $486.1 $572.3 Accrued expenses and other current liabilities 801.0 698.7 714.9 Current portion of financing lease liabilities 0.5 0.5 0.5 Current portion of long-term debt 802.1 — — Total current liabilities 2,101.9 1,185.3 1,287.7 Long-term debt 3,657.3 2,982.9 2,980.5 Deferred tax liabilities 46.8 46.5 41.7 Long-term financing lease liabilities 22.8 23.1 23.8 Other long-term liabilities 417.8 452.2 498.5 Total liabilities 6,246.6 4,690.0 4,832.2 ON Semiconductor Corporation stockholders’ equity: Common stock 6.3 6.3 6.2 Additional paid-in capital 5,632.8 5,582.5 5,538.6 Accumulated other comprehensive loss (67.1) (61.7) (55.5)Accumulated earnings 8,435.3 8,208.5 8,241.9 Less: Treasury stock, at cost (6,788.6) (6,433.9) (6,057.9)Total ON Semiconductor Corporation stockholders’ equity 7,218.7 7,301.7 7,673.3 Non-controlling interest 19.8 19.1 18.6 Total stockholders’ equity 7,238.5 7,320.8 7,691.9 Total liabilities and stockholders’ equity$13,485.1 $12,010.8 $12,524.1 Quarters Ended Six Months Ended July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Cash flows from operating activities: Net income (loss)$227.5 $(32.9) $171.7 $194.6 $(313.5)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 141.3 286.7 156.4 428.0 324.6 Gain on sale and disposal of fixed assets (0.3) (1.1) (5.8) (1.4) (5.8)Amortization of debt discount and issuance costs 3.8 2.9 2.8 6.7 5.7 Share-based compensation 37.4 37.3 34.4 74.7 68.3 Non-cash asset impairment charges 16.3 147.0 40.6 163.3 472.1 Change in deferred tax balances (12.8) 2.7 (18.5) (10.1) (32.2)Other 1.9 (2.2) 2.5 (0.3) 4.3 Changes in assets and liabilities 44.6 (201.3) (199.8) (156.7) 263.1 Net cash provided by operating activities 459.7 239.1 184.3 698.8 786.6 Cash flows from investing activities: Payments for acquisition of property, plant, and equipment (34.3) (21.9) (78.2) (56.2) (225.8)Proceeds from sale of property, plant and equipment 7.6 1.0 6.5 8.6 6.7 Purchase of short-term investments (350.0) (300.0) (300.0) (650.0) (550.0)Proceeds from the maturity of short-term investments 400.0 300.0 250.0 700.0 550.0 Payments for acquisition of a business, net of cash acquired (13.0) — — (13.0) (117.5)Other (3.0) 4.2 — 1.2 — Net cash provided by (used in) investing activities 7.3 (16.7) (121.7) (9.4) (336.6)Cash flows from financing activities: Proceeds for common stock issuance under the ESPP 5.3 6.7 5.3 12.0 10.6 Payment of tax withholding for RSUs (18.6) (26.9) (2.7) (45.5) (25.1)Repurchase of common stock (344.8) (345.7) (302.3) (690.5) (602.4)Issuance and borrowings under debt agreements 1,473.7 — — 1,473.7 — Reimbursement of debt issuance and other financing costs 3.4 — — 3.4 — Payment of debt issuance and other financing costs (4.2) — — (4.2) — Payment for purchase of bond hedges (351.6) — — (351.6) — Proceeds from issuance of warrants 281.0 — — 281.0 — Payment of finance lease obligations (0.1) (0.1) (0.4) (0.2) (0.8)Net cash provided by (used in) financing activities 1,044.1 (366.0) (300.1) 678.1 (617.7)Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.3) (0.3) 1.9 (0.6) 3.9 Net increase (decrease) in cash, cash equivalents and restricted cash 1,510.8 (143.9) (235.6) 1,366.9 (163.8)Beginning cash, cash equivalents and restricted cash 2,005.1 2,149.0 2,765.2 2,149.0 2,693.4 Ending cash, cash equivalents and restricted cash$3,515.9 $2,005.1 $2,529.6 $3,515.9 $2,529.6 Quarters Ended Six Months Ended July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Reconciliation of GAAP to non-GAAP gross profit: GAAP gross profit$616.3 $583.1 $551.9 $1,199.4 $845.7 Special items: a)Restructuring-related inventory and other charges 13.4 (1.0) (1.9) 12.4 281.5 b)Amortization of intangible assets 1.2 1.2 1.3 2.4 2.6 c)Amortization of fair market value step-up of inventory — — 1.2 — 1.2 Total special items 14.6 0.2 0.6 14.8 285.3 Non-GAAP gross profit$630.9 $583.3 $552.5 $1,214.2 $1,131.0 Reconciliation of GAAP to non-GAAP gross margin: GAAP gross margin 38.4% 38.5% 37.6% 38.5% 29.0% Special items: a)Restructuring-related inventory and other charges 0.8% (0.1)% (0.1)% 0.4% 9.7% b)Amortization of intangible assets 0.1% 0.1% 0.1% 0.1% 0.1% c)Amortization of fair market value step-up of inventory —% —% 0.1% —% —% Total special items 0.9% —% 0.1% 0.5% 9.8%Non-GAAP gross margin 39.3% 38.5% 37.6% 39.0% 38.8%Reconciliation of GAAP to non-GAAP operating expenses: GAAP operating expenses$357.7 $636.5 $358.5 $994.2 $1,226.0 Special items: a)Amortization of intangible assets (10.5) (10.5) (11.0) (21.0) (22.4) b)Restructuring, asset impairments and other charges, net (41.2) (329.3) (49.2) (370.5) (588.5) c)Third-party acquisition and divestiture-related costs (7.6) (1.4) (0.6) (9.0) (2.9) d)Adjustments to contingent consideration (1.6) (1.6) — (3.2) — Total special items (60.9) (342.8) (60.8) (403.7) (613.8)Non-GAAP operating expenses$296.8 $293.7 $297.7 $590.5 $612.2 Reconciliation of GAAP to non-GAAP operating income: GAAP operating income (loss)$258.6 $(53.4) $193.4 $205.2 $(380.3) Special items: a)Restructuring-related inventory and other charges 13.4 (1.0) (1.9) 12.4 281.5 b)Amortization of intangible assets 11.7 11.7 12.3 23.4 25.0 c)Restructuring, asset impairments and other charges, net 41.2 329.3 49.2 370.5 588.5 d)Third-party acquisition and divestiture-related costs 7.6 1.4 0.6 9.0 2.9 e)Amortization of fair market value step-up of inventory — — 1.2 — 1.2 f)Adjustments to contingent consideration 1.6 1.6 — 3.2 — Total special items 75.5 343.0 61.4 418.5 899.1 Non-GAAP operating income$334.1 $289.6 $254.8 $623.7 $518.8 Reconciliation of GAAP to non-GAAP operating margin(operating income / revenue): GAAP operating margin 16.1% (3.5)% 13.2% 6.6% (13.0)% Special items: a)Restructuring related inventory and other charges 0.8% (0.1)% (0.1)% 0.4% 9.7% b)Amortization of intangible assets 0.7% 0.8% 0.8% 0.8% 0.9% c)Restructuring, asset impairments and other charges, net 2.6% 21.8% 3.3% 11.9% 20.2% d)Third-party acquisition and divestiture-related costs 0.5% 0.1% —% 0.3% 0.1% e)Amortization of fair market value step-up of inventory —% —% 0.1% —% —% f)Adjustments to contingent consideration 0.1% 0.1% —% 0.1% —% Total special items 4.7% 22.7% 4.1% 13.5% 30.9%Non-GAAP operating margin 20.8% 19.1% 17.3% 20.0% 17.8%Reconciliation of GAAP to non-GAAP income before income taxes: GAAP income (loss) before income taxes$270.9 $(44.6) $202.2 $226.3 $(358.8) Special items: a)Restructuring-related inventory and other charges 13.4 (1.0) (1.9) 12.4 281.5 b)Amortization of intangible assets 11.7 11.7 12.3 23.4 25.0 c)Restructuring, asset impairments and other charges, net 41.2 329.3 49.2 370.5 588.5 d)Third-party acquisition and divestiture-related costs 7.6 1.4 0.6 9.0 2.9 e)Amortization of fair market value step-up of inventory — — 1.2 — 1.2 f)Adjustments to contingent consideration 1.6 1.6 — 3.2 — Total special items 75.5 343.0 61.4 418.5 899.1 Non-GAAP income before income taxes$346.4 $298.4 $263.6 $644.8 $540.3 Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation: GAAP net income (loss) attributable to ON Semiconductor Corporation$226.8 $(33.4) $170.3 $193.4 $(315.8) Special items: a)Restructuring-related inventory and other charges 13.4 (1.0) (1.9) 12.4 281.5 b)Amortization of intangible assets 11.7 11.7 12.3 23.4 25.0 c)Restructuring, asset impairments and other charges, net 41.2 329.3 49.2 370.5 588.5 d)Third-party acquisition and divestiture-related costs 7.6 1.4 0.6 9.0 2.9 e)Amortization of fair market value step-up of inventory — — 1.2 — 1.2 f)Adjustments to contingent consideration 1.6 1.6 — 3.2 — g)Adjustment to Income taxes (8.5) (56.5) (10.4) (65.0) (130.4) Total special items 67.0 286.5 51.0 353.5 768.7 Non-GAAP net income attributable to ON Semiconductor Corporation$293.8 $253.1 $221.3 $546.9 $452.9 Reconciliation of GAAP to non-GAAP diluted shares outstanding: GAAP diluted shares outstanding 404.4 394.1 414.9 401.5 418.0 Special items: a)Less: dilutive shares attributable to convertible notes (7.4) — — (4.9) — b)Add: dilutive shares attributable to share-based awards — 1.9 — — 0.4 Total special items (7.4) 1.9 — (4.9) 0.4 Non-GAAP diluted shares outstanding 397.0 396.0 414.9 396.6 418.4 Non-GAAP diluted earnings per share: Non-GAAP net income attributable to ON Semiconductor Corporation$293.8 $253.1 $221.3 $546.9 $452.9 Non-GAAP diluted shares outstanding 397.0 396.0 414.9 396.6 418.4 Non-GAAP diluted earnings per share$0.74 $0.64 $0.53 $1.38 $1.08 Reconciliation of net cash provided by operating activities to free cash flow: Net cash provided by operating activities$459.7 $239.1 $184.3 $698.8 $786.6 Special items: a)Payments for acquisition of property, plant and equipment (34.3) (21.9) (78.2) (56.2) (225.8) Total special items (34.3) (21.9) (78.2) (56.2) (225.8)Free cash flow$425.4 $217.2 $106.1 $642.6 $560.8 Certain of the amounts in the above tables may not total due to rounding of individual amounts.
FREE CASH FLOW
Quarters Ended October 3, 2025 December 31, 2025 April 3, 2026 July 3, 2026 Last Twelve MonthsNet cash provided by operating activities$418.7 $554.5 $239.1 $459.7 $1,672.0 Payments for acquisition of property, plant and equipment (46.3) (69.1) (21.9) (34.3) (171.6)Free cash flow$372.4 $485.4 $217.2 $425.4 $1,500.4 Revenue$1,550.9 $1,530.1 $1,513.3 $1,603.5 $6,197.8 SHARE-BASED COMPENSATION
Total share-based compensation related to restricted stock units, stock grant awards and the employee stock purchase plan was as follows:
Quarters Ended
Six Months Ended
July 3, 2026
April 3, 2026
July 4, 2025
July 3, 2026
July 4, 2025
Cost of revenue$6.8 $6.4 $6.1 $13.2 $12.1 Research and development 6.0 7.3 6.3 13.3 12.6 Selling and marketing 4.8 5.1 4.9 9.9 9.6 General and administrative 19.8 18.5 17.1 38.3 34.0 Total share-based compensation$37.4 $37.3 $34.4 $74.7 $68.3 SUPPLEMENTAL FINANCIAL DATA
Quarters Ended
Six Months Ended
July 3, 2026
April 3, 2026
July 4, 2025
July 3, 2026
July 4, 2025
Net cash provided by operating activities$459.7 $239.1 $184.3 $698.8 $786.6 Free cash flow$425.4 $217.2 $106.1 $642.6 $560.8 Cash paid for income taxes$50.8 $46.6 $65.0 $97.4 $86.5 Depreciation and amortization (1)$141.3 $286.7 $156.4 $428.0 $324.6 Less: Amortization of intangible assets 11.7 11.7 12.3 23.4 25.0 Depreciation and amortization (excl. amortization of intangible assets) (1)$129.6 $275.0 $144.1 $404.6 $299.6 (1) Accelerated depreciation and amortization related to the 2025 and 2026 Manufacturing Realignment Programs$— $136.5 $2.0 $136.5 $14.5 To supplement the consolidated financial results prepared in accordance with GAAP, onsemi uses certain non-GAAP measures, which are adjusted from the most directly comparable GAAP measures to exclude items related to the amortization of acquisition-related intangibles, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, inventory valuation adjustments, in-process research and development expenses, restructuring, asset impairments and other, net, goodwill impairment charges, gains and losses on debt prepayment, non-cash interest expense, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, tax impact of these items and certain other non-recurring items, as necessary. Management does not consider the effects of these items in evaluating the core operational activities of onsemi. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate onsemi’s current performance. In addition, the Company believes that most analysts covering onsemi use the non-GAAP measures to evaluate onsemi’s performance. Given management’s and other relevant parties’ use of these non-GAAP measures, onsemi believes these measures are important to investors in understanding onsemi’s current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in onsemi’s core business across different time periods. These non-GAAP measures are not prepared in accordance with, and should not be considered alternatives or necessarily superior to, GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.
Non-GAAP Gross Profit and Gross Margin
The use of non-GAAP gross profit and gross margin allows management to evaluate, among other things, the gross profit and gross margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, amortization of intangible assets, amortization of appraised inventory fair market value step-up, impact of business wind down and non-recurring facility costs. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.
Non-GAAP Operating Income and Operating Margin
The use of non-GAAP operating income and operating margin allows management to evaluate, among other things, the operating income and operating margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, amortization and impairments of intangible assets, third party acquisition and divestiture-related costs, restructuring charges, asset impairments and certain other special items as necessary. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.
Non-GAAP Net Income Attributable to ON Semiconductor Corporation and Non-GAAP Diluted Earnings Per Share
The use of non-GAAP net income attributable to ON Semiconductor Corporation and non-GAAP diluted earnings per share allows management to evaluate the operating results of onsemi’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally, the restructuring related cost of revenue charges, amortization and impairments of intangible assets, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, restructuring, asset impairments, gains and losses on debt prepayment, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, discrete tax items and other non-GAAP tax adjustments and certain other special items, as necessary. In addition, these measures are important components of management’s internal performance measurement and incentive and reward process, as they are used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, setting targets and forecasting future results. For our non-GAAP reporting we apply a projected, normalized non-GAAP effective tax rate of 15% for 2026 and 16% for 2025. We calculate this non-GAAP effective tax rate on an annual basis. We may update this non-GAAP effective tax rate at any time for a variety of reasons, including, but not limited to, the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Management presents these non-GAAP financial measures to enable investors and analysts to understand the results of operations of onsemi’s core businesses and, to the extent comparable, to compare our results of operations on a more consistent basis against those of other companies in our industry.
Free Cash Flow
The use of free cash flow allows management to evaluate, among other things, the ability of the Company to make interest or principal payments on its debt. Free cash flow is defined as the difference between cash flow from operating activities and capital expenditures disclosed under investing activities in the consolidated statement of cash flows. Free cash flow is not an alternative to cash flow from operating activities as a measure of liquidity. It is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our financial performance independent of the cash capital expenditures.
Non-GAAP Diluted Share Count
The use of non-GAAP diluted share count allows management to evaluate, among other things, the potential dilution due to the outstanding restricted stock units excluding the dilution from the convertible notes that is covered by hedging activity up to a certain threshold. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% Notes, the non-GAAP diluted share count includes the anti-dilutive impact of the Company’s hedge transactions issued concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding.
Matson ve 2. čtvrtletí zvýšil čistý zisk na 129,4 mil. USD, tedy 4,27 USD na akcii, a zároveň zvýšil celoroční výhled zisku. Tržby vzrostly na 969,4 mil. USD.
2Q26 EPS of $4.27 versus $2.92 in 2Q25 2Q26 Net Income of $129.4 million versus $94.7 million in 2Q25 2Q26 Consolidated Operating Income of $158.9 million versus $113.0 million in 2Q25 2Q26 EBITDA of $211.0 million versus $163.6 million in 2Q25 Repurchased approximately 0.3 million shares in 2Q26 Raises full year outlook , /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported net income of $129.4 million, or $4.27 per diluted share, for the quarter ended June 30, 2026. Net income for the quarter ended June 30, 2025 was $94.7 million, or $2.92 per diluted share. Consolidated revenue for the second quarter 2026 was $969.4 million, compared with $830.5 million for the second quarter 2025.
Matt Cox, Matson's Chairman and Chief Executive Officer, commented, "Matson had a strong second quarter with momentum in our China service carrying over from the post-Lunar New Year period. Our CLX and MAX services saw higher-than-expected freight rates and demand across e-commerce, garments and e-goods against a backdrop of tighter supply conditions in the Transpacific tradelane."
Mr. Cox added, "In our domestic ocean tradelanes, we saw lower year-over-year volumes in Hawaii and Alaska and higher year-over-year volume in Guam. In Logistics, operating income increased year-over-year primarily due to higher contributions from freight forwarding and transportation brokerage, partially offset by a lower contribution from warehousing."
"Looking ahead, we expect our China service to be at or near capacity through peak season. For the fourth quarter 2026, we expect demand to reflect a more traditional seasonality pattern compared to the elevated period of freight demand experienced in the Transpacific market in the fourth quarter 2025 following the U.S.-China trade and economic agreement announced on October 30, 2025. To date, the Iran conflict has not impacted the Company's operating performance or service levels; however, it has impacted fuel prices in all of the Company's markets. We continue to expect to fully recover our fuel costs by the end of the year. As a result, we expect Ocean Transportation operating income in the third quarter 2026 to be approximately 45 percent higher than the level achieved in the year ago period. We also expect Ocean Transportation operating income in the fourth quarter 2026 to be modestly lower than the level achieved last year. For Logistics, we expect operating income in the third and fourth quarters 2026 to be modestly higher than the levels achieved last year. For full year 2026, we expect consolidated operating income to be higher than the level achieved in full year 2025 based on our expectations of continued solid U.S. consumer demand and a stable trading environment in the Transpacific tradelane."
Second Quarter 2026 Discussion and Outlook for 2026
Ocean Transportation: The Company's container volume in the Hawaii service in the second quarter 2026 was 1.1 percent lower year-over-year primarily due to lower general demand. Hawaii's economy remains stable, supported by strong construction activity and modest growth in tourist arrivals, but continues to face headwinds from higher energy-related inflation. The Company expects volume in full year 2026 to approach the level achieved in 2025, based on the Company's expectation of similar economic conditions and stable market share.
In the China service, the Company's container volume in the second quarter 2026 increased 15.2 percent year-over-year primarily due to significantly higher demand compared to the prior year period, which included a market decline in Transpacific demand due to the tariffs imposed in April 2025. In the second quarter 2026, momentum in the China service carried over from the post-Lunar New Year period, and the Company's CLX and MAX services saw higher-than-expected freight rates and demand across e-commerce, garments and e-goods against a backdrop of tighter supply conditions in the Transpacific tradelane. The Company expects its China service to be at or near capacity through peak season. For the fourth quarter 2026, the Company expects demand to reflect a more traditional seasonality pattern compared to the elevated period of freight demand experienced in the Transpacific market in the fourth quarter 2025 following the U.S.-China trade and economic agreement announced on October 30, 2025. As such, the Company expects volume in full year 2026 to be higher than the level achieved in 2025 based on the Company's expectations of continued solid U.S. consumer demand and a stable trading environment in the Transpacific tradelane.
In the Guam service, the Company's container volume in the second quarter 2026 increased 4.4 percent year-over-year. In the near term, the Company expects Guam's economy to remain stable. For full year 2026, the Company expects volume to be comparable to the level achieved last year.
In the Alaska service, the Company's container volume in the second quarter 2026 decreased 2.3 percent year-over-year primarily due to lower export seafood volume on AAX, partially offset by one additional northbound sailing. In the near term, the Company expects Alaska's economy to remain stable supported by a low unemployment rate, steady job market and continued oil and gas exploration and production activity. For full year 2026, the Company expects volume to approach the level achieved last year.
The contribution from the Company's SSAT joint venture investment was $4.8 million in the second quarter 2026, or $2.5 million lower than second quarter 2025. The decrease was primarily due to lower lift volume and higher operating expenses. For full year 2026, the Company expects the contribution from SSAT to be lower than the $32.5 million achieved in full year 2025.
Based on the outlook trends noted above, the Company expects Ocean Transportation operating income in the third quarter 2026 to be approximately 45 percent higher than the $147.4 million achieved in the third quarter 2025. The Company also expects Ocean Transportation operating income in the fourth quarter 2026 to be modestly lower than the $136.0 million achieved in the fourth quarter 2025. For full year 2026, the Company expects Ocean Transportation operating income to be higher than the $455.6 million achieved in full year 2025.
Logistics: Operating income for the Company's Logistics segment was $14.9 million in the second quarter 2026, or $0.5 million higher compared to the level achieved in the second quarter 2025. The increase was primarily due to higher contributions from freight forwarding and transportation brokerage, partially offset by a lower contribution from warehousing. For the third and fourth quarters 2026, the Company expects Logistics operating income to be modestly higher than the $13.6 million and $7.7 million achieved in the third and fourth quarters 2025, respectively. For full year 2026, the Company expects Logistics operating income to be higher than the $44.2 million achieved in full year 2025.
Consolidated Operating Income: To date, the Iran conflict has not impacted the Company's operating performance or service levels; however, it has impacted fuel prices in all of the Company's markets. The Company continues to expect to fully recover fuel costs by the end of the year. For the third quarter 2026, the Company expects consolidated operating income to be approximately 45 percent higher than the level achieved in the third quarter 2025. For full year 2026, the Company expects consolidated operating income to be higher than the level achieved in full year 2025 based on the Company's expectations of continued solid U.S. consumer demand and a stable trading environment in the Transpacific tradelane.
Depreciation and Amortization: For full year 2026, the Company expects depreciation and amortization expense to be approximately $205 million, inclusive of dry-docking amortization of approximately $35 million.
Interest Income: The Company expects interest income for the full year 2026 to be approximately $18 million.
Interest Expense, Net: The Company expects interest expense, net for the full year 2026 to be approximately $6 million.
Other Income (Expense), Net: The Company expects full year 2026 other income (expense), net to be approximately $7 million in income, which is attributable to the amortization of certain components of net periodic benefit costs or gains related to the Company's pension and post-retirement plans.
Income Taxes: For the second quarter 2026, the Company's effective tax rate was 21.0 percent. For the full year 2026, the Company expects its effective tax rate to be approximately 21.0 percent.
Capital and Vessel Dry-docking Expenditures: For the second quarter 2026, the Company made capital expenditure payments excluding vessel construction expenditures of $25.4 million, vessel construction expenditures (including capitalized interest and owner's items) of $181.8 million, and dry-docking payments of $12.7 million. For the full year 2026, the Company expects to make capital expenditure payments, including maintenance capital expenditures, of approximately $150 to $170 million, vessel construction expenditures (including capitalized interest and owner's items) of approximately $400 million, and dry-docking payments of approximately $45 million.
Results By Segment
Ocean Transportation — Three months ended June 30, 2026 compared with 2025
Three Months Ended June 30,
(Dollars in millions)
2026
2025
Change
Ocean Transportation revenue
$
767.4
$
675.6
$
91.8
13.6
%
Operating costs and expenses
(623.4)
(577.0)
(46.4)
8.0
%
Operating income
$
144.0
$
98.6
$
45.4
46.0
%
Operating income margin
18.8
%
14.6
%
Volume by Service (Forty-foot equivalent units (FEU)) (1)
Hawaii containers
35,600
36,000
(400)
(1.1)
%
Alaska containers
21,200
21,700
(500)
(2.3)
%
China containers (2)
37,200
32,300
4,900
15.2
%
Guam containers
4,700
4,500
200
4.4
%
Other containers (3)
3,900
4,400
(500)
(11.4)
%
(1)
Approximate volume included for the period is based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)
Includes containers from China and other Asia origins.
(3)
Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.
Ocean Transportation revenue increased $91.8 million, or 13.6 percent, during the three months ended June 30, 2026, compared with the three months ended June 30, 2025. The increase was primarily due to higher volume and freight rates in the China service.
On a year-over-year FEU basis, Hawaii service container volume decreased 1.1 percent primarily due to lower general demand; Alaska service volume decreased 2.3 percent primarily due to lower export seafood volume on AAX, partially offset by one additional northbound sailing; China service volume increased 15.2 percent primarily due to significantly higher demand compared to the prior year period, which included a market decline in Transpacific demand due to the tariffs imposed in April 2025; Guam service volume increased 4.4 percent; and Other containers volume decreased 11.4 percent.
Ocean Transportation operating income increased $45.4 million, or 46.0 percent, during the three months ended June 30, 2026, compared with the three months ended June 30, 2025. The increase was primarily due to a higher contribution from the China service, partially offset by higher vessel operating expense primarily due to higher fuel-related costs.
The Company's SSAT terminal joint venture investment contributed $4.8 million during the three months ended June 30, 2026, compared to $7.3 million during the three months ended June 30, 2025. The decrease was primarily due to lower lift volume and higher operating expenses.
Ocean Transportation — Six months ended June 30, 2026 compared with 2025
Six Months Ended June 30,
(Dollars in millions)
2026
2025
Change
Ocean Transportation revenue
$
1,373.9
$
1,313.0
$
60.9
4.6
%
Operating costs and expenses
(1,175.3)
(1,140.8)
(34.5)
3.0
%
Operating income
$
198.6
$
172.2
$
26.4
15.3
%
Operating income margin
14.5
%
13.1
%
Volume by Service (Forty-foot equivalent units (FEU)) (1)
Hawaii containers
69,300
71,700
(2,400)
(3.3)
%
Alaska containers
40,500
41,400
(900)
(2.2)
%
China containers (2)
63,000
60,800
2,200
3.6
%
Guam containers
8,900
8,700
200
2.3
%
Other containers (3)
7,200
7,800
(600)
(7.7)
%
(1)
Approximate volume included for the period is based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)
Includes containers from China and other Asia origins.
(3)
Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.
Ocean Transportation revenue increased $60.9 million, or 4.6 percent, during the six months ended June 30, 2026, compared with the six months ended June 30, 2025. The increase was primarily due to higher freight rates and volume in the China service.
On a year-over-year FEU basis, Hawaii service container volume decreased 3.3 percent primarily due to lower general demand; Alaska service volume decreased 2.2 percent primarily due to lower general demand; China service volume increased 3.6 percent primarily due to significantly higher demand in the second quarter 2026 compared to the second quarter 2025, which included a market decline in Transpacific demand due to the tariffs imposed in April 2025; Guam service volume increased 2.3 percent; and Other containers volume decreased 7.7 percent.
Ocean Transportation operating income increased $26.4 million, or 15.3 percent, during the six months ended June 30, 2026, compared with the six months ended June 30, 2025. The increase was primarily due to a higher contribution from the China service, partially offset by higher vessel operating expense primarily due to higher fuel-related costs.
The Company's SSAT terminal joint venture investment contributed $9.8 million during the six months ended June 30, 2026, compared to $13.9 million during the six months ended June 30, 2025. The decrease was primarily due to lower lift volume.
Logistics — Three months ended June 30, 2026 compared with 2025
Three Months Ended June 30,
(Dollars in millions)
2026
2025
Change
Logistics revenue
$
202.0
$
154.9
$
47.1
30.4
%
Operating costs and expenses
(187.1)
(140.5)
(46.6)
33.2
%
Operating income
$
14.9
$
14.4
$
0.5
3.5
%
Operating income margin
7.4
%
9.3
%
Logistics revenue increased $47.1 million, or 30.4 percent, during the three months ended June 30, 2026, compared with the three months ended June 30, 2025. The increase was primarily due to higher revenue in transportation brokerage.
Logistics operating income increased $0.5 million, or 3.5 percent, during the three months ended June 30, 2026, compared with the three months ended June 30, 2025. The increase was primarily due to higher contributions from freight forwarding and transportation brokerage, partially offset by a lower contribution from warehousing.
Logistics — Six months ended June 30, 2026 compared with 2025
Six Months Ended June 30,
(Dollars in millions)
2026
2025
Change
Logistics revenue
$
353.3
$
299.5
$
53.8
18.0
%
Operating costs and expenses
(331.6)
(276.6)
(55.0)
19.9
%
Operating income
$
21.7
$
22.9
$
(1.2)
(5.2)
%
Operating income margin
6.1
%
7.6
%
Logistics revenue increased $53.8 million, or 18.0 percent, during the six months ended June 30, 2026, compared with the six months ended June 30, 2025. The increase was primarily due to higher revenue in transportation brokerage.
Logistics operating income decreased $1.2 million, or 5.2 percent, during the six months ended June 30, 2026, compared with the six months ended June 30, 2025. The decrease was primarily due to a lower contribution from warehousing, partially offset by a higher contribution from freight forwarding.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents decreased by $22.6 million from $141.9 million at December 31, 2025 to $119.3 million at June 30, 2026. As of June 30, 2026, there was $345.8 million of cash and cash equivalents and investments in fixed-rate U.S. Treasuries in the Capital Construction Fund. Matson generated net cash from operating activities of $231.6 million during the six months ended June 30, 2026, compared to $194.6 million during the six months ended June 30, 2025. Capital expenditures (including capitalized vessel construction expenditures) totaled $255.5 million for the six months ended June 30, 2026, compared with $175.5 million for the six months ended June 30, 2025. Total debt decreased by $19.9 million during the six months to $341.3 million as of June 30, 2026, of which $301.6 million was classified as long-term debt.1 As of June 30, 2026, Matson had available borrowings under its revolving credit facility of $544.2 million.
During the second quarter 2026, Matson repurchased approximately 0.3 million shares for a total cost of $67.8 million.2 On April 23, 2026, Matson's Board of Directors approved an additional 3.0 million shares of common stock to be added to the Company's existing share repurchase program and extended the program to December 31, 2029. As of June 30, 2026, there were approximately 3.4 million shares remaining in the Company's share repurchase program. On June 25, 2026, Matson's Board of Directors also declared a cash dividend of $0.38 per share payable on September 3, 2026 to all shareholders of record as of the close of business on August 6, 2026.
1 Total debt is presented before any reduction for deferred loan fees as required by GAAP.
2 Includes stock repurchased during the quarter but not settled and taxes on share repurchases that will be paid after the quarter end.
Teleconference and Webcast
A conference call is scheduled on August 3, 2026 at 4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief Financial Officer, will discuss Matson's second quarter results.
Date of Conference Call:
Monday, August 3, 2026
Scheduled Time:
4:30 p.m. ET / 1:30 p.m. PT / 10:30 a.m. HT
The conference call will be broadcast live along with an additional slide presentation on the Company's website at www.matson.com, under Investors.
Participants may register for the conference call at:
Registered participants will receive the conference call dial-in number and a unique PIN code to access the live event. While not required, it is recommended you join 10 minutes prior to the event starting time. A replay of the conference call will be available approximately two hours after the event by accessing the webcast link at www.matson.com, under Investors.
About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia. Matson also operates premium, expedited services from China to Long Beach, California, which includes cargo from other Asia origins, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia. The Company's fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and barges. Matson Logistics, established in 1987, extends the geographic reach of Matson's transportation network throughout North America and Asia. Its integrated logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, supply chain management, and freight forwarding to Alaska. Additional information about the Company is available at www.matson.com.
GAAP to Non-GAAP Reconciliation
This press release, the Form 8-K and the information to be discussed in the conference call include non-GAAP measures. While Matson reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period. These non-GAAP measures include, but are not limited to, Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA").
Forward-Looking Statements
Statements in this news release that are not historical facts are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation those statements regarding outlook; operating income; depreciation and amortization, including dry-docking amortization; interest income; interest expense, net; other income (expense), net; tax rate; maintenance and other capital expenditures; capital and vessel dry-docking expenditures; volume; traditional seasonality patterns; capacity through peak season; impacts from the Iran conflict and tariffs; timing to recover fuel costs; freight demand; consumer demand and spending; trading environment; growth in Southeast Asia; geopolitical uncertainty; economic growth and drivers in Hawaii, Alaska and Guam; tourism levels; unemployment rates; construction activity; steady job market; energy-related inflation; oil and gas exploration and production activity; market share; contribution from SSAT; refleeting initiatives; timing and amount of milestone payments and related costs; delivery dates for new vessels; and the timing, manner and volume of repurchases of common stock pursuant to the repurchase program. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement, including but not limited to risks and uncertainties relating to repeal, invalidation, substantial amendment or waiver of the Jones Act or changes in its application, or the Company were determined not to be a United States citizen under the Jones Act; changes in macroeconomic conditions, geopolitical developments, or governmental policies; our ability to offer a differentiated service in China for which customers are willing to pay a significant premium; new or increased competition; loss of or damage to key customer relationships; agreements with key vendors and third parties; fuel prices, our ability to collect fuel-related surcharges and/or the cost or limited availability of required fuels; evolving regulations and stakeholder expectations related to sustainability matters; timely or successful completion of fleet upgrade initiatives; performance under the Company's vessel construction agreements with Hanwha Philly Shipyard; the occurrence of weather, natural disasters, maritime accidents, spill events and other physical and operating risks; transitional and other risks arising from climate change; actual or threatened health epidemics, outbreaks of disease, pandemics or other major health crises; significant operating agreements and leases that may not be renewed/replaced on favorable or acceptable terms; any unexpected dry-docking or repair costs; joint venture relationships; conducting business in foreign markets, including the imposition of tariffs or a change in international trade policies; modernization of terminals in Hawaii and Alaska; heightened security measures, war, actual or threatened terrorist attacks, efforts to combat terrorism and other acts of violence; consummating and integrating acquisitions; work stoppages or other labor disruptions caused by our unionized workers and other workers or their unions in related industries; loss of key personnel or failure to adequately manage human capital; the use of our information technology and communication systems; cybersecurity attacks; changes in our credit profile, disruptions of the credit markets or higher interest rates; our ability to access the debt capital markets; periodic revisions to the Company's effective income tax rate; changes in the value of pension assets; exposure under multi-employer pension and post-retirement plans; continuation of the Title XI and CCF programs; costs to comply with and liability related to numerous safety, environmental, and other laws and regulations; and disputes, legal and other proceedings and government inquiries or investigations. These forward-looking statements are not guarantees of future performance. This release should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 and our other filings with the SEC through the date of this release, which identify important factors that could affect the forward-looking statements in this release. We do not undertake any obligation to update our forward-looking statements.
MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
(In millions, except per share amounts)
2026
2025
2026
2025
Operating Revenue:
Ocean Transportation
$
767.4
$
675.6
$
1,373.9
$
1,313.0
Logistics
202.0
154.9
353.3
299.5
Total Operating Revenue
969.4
830.5
1,727.2
1,612.5
Costs and Expenses:
Operating costs
(737.3)
(650.4)
(1,361.2)
(1,281.5)
Income from SSAT
4.8
7.3
9.8
13.9
General and administrative
(78.0)
(74.4)
(155.5)
(149.8)
Total Costs and Expenses
(810.5)
(717.5)
(1,506.9)
(1,417.4)
Operating Income
158.9
113.0
220.3
195.1
Interest income
5.0
8.0
11.1
17.4
Interest expense, net
(1.6)
(1.7)
(3.2)
(3.4)
Other income (expense), net
1.6
2.4
3.6
4.8
Income before Taxes
163.9
121.7
231.8
213.9
Income taxes
(34.5)
(27.0)
(45.8)
(46.9)
Net Income
$
129.4
$
94.7
$
186.0
$
167.0
Basic Earnings Per Share
$
4.30
$
2.95
$
6.16
$
5.14
Diluted Earnings Per Share
$
4.27
$
2.92
$
6.10
$
5.09
Weighted Average Number of Shares Outstanding:
Basic
30.1
32.1
30.2
32.5
Diluted
30.3
32.4
30.5
32.8
MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
December 31,
(In millions)
2026
2025
ASSETS
Current Assets:
Cash and cash equivalents
$
119.3
$
141.9
Other current assets
416.7
330.0
Total current assets
536.0
471.9
Long-term Assets:
Investment in SSAT
106.2
96.2
Property and equipment, net
2,680.3
2,499.4
Goodwill
327.8
327.8
Intangible assets, net
140.3
146.6
Capital Construction Fund
345.8
532.7
Other long-term assets
577.1
561.0
Total long-term assets
4,177.5
4,163.7
Total assets
$
4,713.5
$
4,635.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of debt
$
39.7
$
39.7
Other current liabilities
564.1
487.7
Total current liabilities
603.8
527.4
Long-term Liabilities:
Long-term debt, net of deferred loan fees
292.7
312.1
Deferred income taxes, net
704.4
701.9
Other long-term liabilities
339.5
335.2
Total long-term liabilities
1,336.6
1,349.2
Total shareholders' equity
2,773.1
2,759.0
Total liabilities and shareholders' equity
$
4,713.5
$
4,635.6
MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
(In millions)
2026
2025
Cash Flows From Operating Activities:
Net income
$
186.0
$
167.0
Reconciling adjustments:
Depreciation and amortization
84.3
81.8
Amortization of operating lease right-of-use assets
68.8
66.9
Deferred income taxes, net
2.5
0.3
Share-based compensation expense
11.7
11.7
Income from SSAT
(9.8)
(13.9)
Other
(0.1)
(4.7)
Changes in assets and liabilities:
Accounts receivable, net
(78.6)
(19.7)
Deferred dry-docking payments
(24.6)
(23.8)
Deferred dry-docking amortization
16.1
13.6
Prepaid expenses and other assets
(9.2)
(10.6)
Accounts payable, accruals and other liabilities
50.3
(3.0)
Operating lease assets and liabilities, net
(63.6)
(67.8)
Other long-term liabilities
(2.2)
(3.2)
Net cash provided by operating activities
231.6
194.6
Cash Flows From Investing Activities:
Vessel construction expenditures
(199.8)
(104.1)
Capital expenditures (excluding vessel construction expenditures)
(55.7)
(71.4)
Proceeds from disposal of property and equipment, net
(0.1)
0.5
Cash and interest deposited into the Capital Construction Fund
(9.5)
(109.1)
Withdrawals from Capital Construction Fund
197.7
100.7
Net cash used in investing activities
(67.4)
(183.4)
Cash Flows From Financing Activities:
Repayments of debt
(19.9)
(19.9)
Dividends paid
(22.0)
(22.3)
Repurchase of Matson common stock
(119.8)
(160.4)
Tax withholding related to net share settlements of restricted stock units
(25.1)
(16.3)
Net cash used in financing activities
(186.8)
(218.9)
Net Decrease in Cash and Cash Equivalents
(22.6)
(207.7)
Cash and Cash Equivalents, Beginning of the Period
141.9
266.8
Cash and Cash Equivalents, End of the Period
$
119.3
$
59.1
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest
$
2.5
$
2.7
Income taxes paid, net of income tax refunds
$
31.7
$
40.7
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities
$
3.8
$
4.0
Accrued dividends
$
11.4
$
11.4
MATSON, INC. AND SUBSIDIARIES
Net Income to EBITDA Reconciliations
(Unaudited)
Three Months Ended
June 30,
Last Twelve
(In millions)
2026
2025
Change
Months
Net Income
$
129.4
$
94.7
$
34.7
$
463.8
Subtract:
Interest income
(5.0)
(8.0)
3.0
(25.4)
Add:
Interest expense, net
1.6
1.7
(0.1)
6.6
Add:
Income taxes
34.5
27.0
7.5
87.9
Add:
Depreciation and amortization
42.1
41.2
0.9
169.4
Add:
Deferred dry-docking amortization
8.4
7.0
1.4
31.4
EBITDA (1)
$
211.0
$
163.6
$
47.4
$
733.7
Six Months Ended
June 30,
(In millions)
2026
2025
Change
Net Income
$
186.0
$
167.0
$
19.0
Subtract:
Interest income
(11.1)
(17.4)
6.3
Add:
Interest expense, net
3.2
3.4
(0.2)
Add:
Income taxes
45.8
46.9
(1.1)
Add:
Depreciation and amortization
84.3
81.8
2.5
Add:
Deferred dry-docking amortization
16.1
13.6
2.5
EBITDA (1)
$
324.3
$
295.3
$
29.0
(1)
EBITDA is defined as earnings before interest, income taxes, depreciation and amortization (including deferred dry-docking amortization). EBITDA should not be considered as an alternative to net income (as determined in accordance with GAAP), as an indicator of our operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity. Our calculation of EBITDA may not be comparable to EBITDA as calculated by other companies, nor is this calculation identical to the EBITDA used by our lenders to determine financial covenant compliance.
Kahn Swick & Foti prověřuje navrhovaný prodej MarketAxess Holdings Inc. společnosti Intercontinental Exchange za 167,00 USD za akcii. Firma posuzuje, zda je cena i proces dostatečné.
NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of MarketAxess Holdings Inc. (NasdaqGS: MKTX) to Intercontinental Exchange, Inc. (NYSE: ICE). Under the terms of the proposed transaction, shareholders of MarketAxess will receive $167.00 in cash for each share of MarketAxess that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at (833) 538-3612, or visit https://www.ksfcounsel.com/cases/nasdaqgs-mktx/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
JBT Marel ve 2. čtvrtletí zvýšil tržby o 5 % na 981 milionů USD a upravený EBITDA vzrostl na 168 milionů USD. Firma potvrdila celoroční výhled tržeb i marže upraveného EBITDA.
CHICAGO--(BUSINESS WIRE)--JBT Marel Corporation (NYSE and Nasdaq Iceland: JBTM), a leading global technology solutions provider to high-value segments of the food & beverage industry, today reported financial results for the second quarter of 2026.
"We are extremely pleased with the continued orders strength, which was led by robust demand in our Prepared Food and Beverage Solutions segment with strong customer investment in downstream, further processing technology," said Brian Deck, Chief Executive Officer. "While we experienced some operational inefficiencies and logistics constraints in the Prepared Food and Beverage Solutions segment in the second quarter, our record backlog, coupled with the fundamental benefits of the JBT Marel combination and ongoing operational improvement initiatives, provide visibility into our second half 2026 outlook and further our confidence in achieving our full year revenue and adjusted EBITDA guidance."
Comparisons in this news release are to the comparable period of the prior year, unless otherwise noted. An earnings presentation with supplemental information is available on the Company's Investor Relations website at https://ir.jbtmarel.com/events/presentations.
JBT Marel Second Quarter 2026 Consolidated Results
"We continue to execute on our integration and cost synergy initiatives, which we expect will enable $60 million of in-year realized savings for 2026," said Matt Meister, Chief Financial Officer. "At the same time, we are navigating a dynamic operating environment with higher inflationary costs. While these factors create near-term headwinds, our focus remains on disciplined execution, pricing actions, and operational improvements to mitigate the impact."
Second quarter 2026 consolidated revenue of $981 million increased 5 percent with approximately 2 percent benefit from foreign exchange translation. Net income of $28 million increased $25 million, and net income margin of 2.9 percent improved 250 basis points. Included in net income was a $33 million non-cash, non-recurring impairment charge related to a 2021 acquisition.
During the second quarter 2026, JBT Marel operated in a dynamic economic and trade environment and experienced a few discrete items, the effects of which will be discussed during the upcoming earnings call.
Second quarter 2026 consolidated adjusted EBITDA of $168 million increased $12 million, and adjusted EBITDA margin of 17.1 percent improved 40 basis points. Diluted earnings per share (EPS) was $0.54 compared to $0.07. Adjusted EPS was $1.95 compared to $1.49. Orders totaled $1.03 billion, inclusive of approximately $16 million in a year-over-year benefit from foreign exchange translation, and quarter-ending backlog was $1.54 billion.
Year to date 2026 operating cash flow was $221 million, and free cash flow was $179 million. As of June 30, 2026, the Company's net debt to trailing twelve months adjusted EBITDA was 2.47x.
As previously announced, JBT Marel's Board of Directors authorized a share repurchase program for the purchase of up to $200 million of the Company’s common stock, effective from May 18, 2026, through May 31, 2029. During the second quarter 2026, the Company repurchased approximately 200,000 shares of common stock for $26 million.
JBT Marel Second Quarter 2026 Segment Results
Three Months Ended June 30, 2026
In millions except margin
Protein Solutions
Prepared Food and
Beverage Solutions
Segment revenue
$
467
$
514
Segment adjusted EBITDA
$
112
$
90
Segment adjusted EBITDA margin
24.0 %
17.5 %
Second quarter 2026 Protein Solutions segment revenue increased 11 percent, inclusive of approximately 3 percent year-over-year benefit from foreign exchange translation. Segment adjusted EBITDA margin improved 350 basis points.
Second quarter 2026 Prepared Food and Beverage Solutions segment results were below Company expectations primarily due to the timing of backlog-to-revenue conversion resulting from logistics constraints and certain productivity inefficiencies in connection with optimizing supply chain and manufacturing operations. Segment revenue was flat, inclusive of approximately 2 percent year-over-year benefit from foreign exchange translation. Segment adjusted EBITDA margin declined 70 basis points.
JBT Marel Outlook
JBT Marel is reiterating its full year 2026 guidance for revenue and adjusted EBITDA margin. It has refined its guidance for adjusted EPS to reflect updated assumptions for depreciation and amortization expense and the effective tax rate. The Company also updated its full year 2026 net income margin and GAAP EPS guidance primarily to reflect the non-cash, non-recurring impairment charge incurred in the second quarter. The below table reflects consolidated guidance.
Guidance
In millions except EPS and margin
FY 2026
Revenue
$3,990 - $4,065
Net income margin
5.5% - 6.0%
Adjusted EBITDA margin(1)
17.0% - 17.5%
GAAP diluted EPS
$4.20 - $4.70
Adjusted EPS(1)
$7.85 - $8.35
(1) Non-GAAP figure. Please see supplemental schedules for adjustments and reconciliations.
For the full year 2026, JBT Marel still expects year-over-year consolidated revenue growth of 5 - 7 percent, which is inclusive of approximately 1.5 percent foreign exchange translation benefit.
For the full year 2026, JBT Marel expects to incur certain one-time and acquisition related costs for previously completed transactions, which are included in net income margin and GAAP diluted EPS guidance and excluded from adjusted EPS and adjusted EBITDA margin guidance. These include approximately $167 million in acquisition related amortization and depreciation, $32 million in M&A related costs, $20 million in restructuring costs, and $33 million in non-cash impairment expense incurred in the second quarter.
Full year 2026 total depreciation and amortization is expected to be approximately $263 million. Interest expense is estimated to be approximately $47 million, and other financing income is expected to be approximately $7 million. The full year tax rate is estimated to be approximately 24 percent.
Earnings Conference Call
A conference call is scheduled for 10:00 a.m. ET / 14:00 GMT on Tuesday, August 4, 2026, to discuss second quarter 2026 results. A simultaneous webcast and audio replay of the call will be available on the Company’s Investor Relations website at https://ir.jbtmarel.com/events/ir-calendar.
About JBT Marel Corporation
JBT Marel Corporation (NYSE and Nasdaq Iceland: JBTM) is a leading global technology solutions provider to high-value segments of the food & beverage industry. JBT Marel’s unique solutions of integrated equipment, service, software, and application expertise enables customers to optimize food yield and efficiency, improve food safety and quality, and enhance uptime and proactive maintenance, all while reducing waste and resource use across the global food supply chain. JBT Marel operates more than 50 manufacturing and distribution facilities globally. For more information, please visit www.jbtmarel.com.
Non-GAAP Measures and Reconciliations to GAAP Measures
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted income, Adjusted diluted earnings per share (“Adjusted EPS”), and Free cash flow are non-GAAP financial measures. JBT Marel provides non-GAAP financial measures in order to increase transparency in our operating results and trends. These non-GAAP measures eliminate certain costs or benefits from, or change the calculation of, a measure as calculated under U.S. GAAP. By eliminating these items, JBT Marel provides a more meaningful comparison of our ongoing operating results, consistent with how management evaluates performance. Management uses these non-GAAP measures in financial and operational evaluation, planning and forecasting. These calculations may differ from similarly-titled measures used by other companies. The non-GAAP financial measures disclosed are not intended to be used as a substitute for, nor should they be considered in isolation of, financial measures prepared in accordance with U.S. GAAP. Reconciliations of non-GAAP financial measures can be found in the supplemental schedules to this release.
Presentation of Percentage Calculations
Effective in 2026, percentage amounts presented in this press release have been calculated using rounded figures. In prior periods, percentage amounts were calculated using the unrounded underlying values rather than the rounded figures presented. As a result, certain percentage amounts in this section may differ slightly from percentages calculated using the figures presented in the Company’s Consolidated Financial Statements or the accompanying narrative.
Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT Marel's ability to control. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. These forward-looking statements include, among others, statements relating to our business and our results of operations, our strategic plans, our restructuring plans and expected cost savings from those plans and our liquidity. The factors that could cause our actual results to differ materially from expectations include, but are not limited to, the following factors: fluctuations in our financial results; termination or loss of major customer contracts and risks associated with fixed-price contracts, particularly during periods of high inflation; catastrophic loss at any of our facilities and business continuity of our information systems; loss of key management and other personnel; our ability to remediate the material weaknesses relating to the Marel financial statements; deterioration of economic conditions, including impacts from supply chain delays and reduced material or component availability; unanticipated delays or acceleration in our sales cycles; inflationary pressures, including increases in energy, raw material, freight, and labor costs; changes in food consumption patterns; weather conditions and natural disasters; impacts of pandemic illnesses, food borne illnesses and diseases to various agricultural products; work stoppages; customer sourcing initiatives; competition and innovation in our industries; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; changes to tariffs, trade regulations, quotas, or duties; potential liability arising out of the installation or use of our systems; the impact of climate change and environmental protection initiatives; our ability to comply with U.S. and international laws governing our operations and industries; increases in tax liabilities; risks related to acquisitions, such as our ability to integrate the acquisitions we have consummated, including the integration of the legacy businesses of JBT and Marel; our ability to develop and introduce new or enhanced products and services and keep pace with technological developments; difficulty in developing, preserving and protecting our intellectual property or defending claims of infringement; cybersecurity risks such as network intrusion or ransomware schemes; our convertible note hedge and warrant transactions; the maintenance of two stock exchange listings; fluctuations in currency exchange rates and interest rates; our level of indebtedness; availability of and access to financial and other resources; and the factors described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K and any future Quarterly Report on Form 10-Q.
If one or more of those or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Consequently, actual events and results may vary significantly from those included in or contemplated or implied by our forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement made by us or on our behalf, whether as a result of new information, future developments, subsequent events or changes in circumstances or otherwise.
JBT MAREL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited and in millions, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
981
$
935
$
1,917
$
1,789
Cost of sales
622
600
1,229
1,162
Gross profit
359
335
688
627
Gross profit margin
36.6 %
35.8 %
35.9 %
35.0 %
Selling, general and administrative expense
313
287
574
612
Operating income (loss)
46
48
114
15
Operating income margin
4.7 %
5.1 %
5.9 %
0.8 %
Pension expense, other than service cost
—
—
—
147
Loss on investment
—
11
—
11
Interest expense, net
13
29
23
70
Other income
(2)
(3)
(4)
(5)
Income (loss) before income taxes
35
11
95
(208)
Income tax provision (benefit)
7
8
22
(38)
Net income (loss)
$
28
$
3
$
73
$
(170)
Earnings (loss) per share:
Basic
$
0.54
$
0.07
$
1.40
$
(3.27)
Diluted
$
0.54
$
0.07
$
1.40
$
(3.27)
Weighted average shares outstanding:
Basic
52.1
52.1
52.1
51.9
Diluted
52.2
52.2
52.3
51.9
Other business information from operations:
Inbound orders
$
1,030
$
938
$
2,100
$
1,854
Orders backlog
$
1,536
$
1,394
JBT MAREL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF DILUTED EARNINGS PER SHARE TO ADJUSTED DILUTED EARNINGS PER SHARE
(Unaudited and in millions, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net income (loss)
$
28
$
3
$
73
$
(170)
Non-GAAP adjustments
Restructuring and related costs, net (1)
12
6
10
17
M&A related costs (2)
11
20
19
94
Impairment of intangible assets (3)
33
—
33
—
Acquisition related amortization and depreciation (4)
42
58
87
100
Loss on investment
—
11
—
11
Amortization of bridge financing debt issuance cost
—
—
—
12
Impact from tax provision on Non-GAAP adjustments (5)
(24)
(20)
(37)
(51)
Recognition of non-cash pension plan related settlement costs
—
—
—
147
Impact on tax provision from non-cash pension plan related settlement costs
—
—
—
(37)
Discrete tax adjustment from M&A activity
—
—
—
5
Adjusted income
$
102
$
78
$
185
$
128
Net income (loss)
$
28
$
3
$
73
$
(170)
Total shares and dilutive securities
52.2
52.2
52.3
51.9
Diluted earnings (loss) per share
$
0.54
$
0.07
$
1.40
$
(3.27)
Adjusted income
$
102
$
78
$
185
$
128
Total shares and dilutive securities
52.2
52.2
52.3
52.0
Adjusted diluted earnings per share
$
1.95
$
1.49
$
3.54
$
2.46
(1) Costs associated with restructuring actions, primarily consisting of severance and related employee costs. These costs are not considered reflective of our ongoing operating performance.
(2) Advisory, strategy, integration, and other costs associated with completed M&A transactions. These costs are directly attributable to the integration of acquired businesses and are not considered indicative of our ongoing operating performance.
(3) Non-cash impairment charge related to acquired intangible assets recorded in the second quarter of 2026. This charge is not considered reflective of our ongoing operating performance.
(4) Amortization and depreciation resulting from the fair value adjustments recorded in connection with acquisitions. These expenses are not considered indicative of our ongoing operating performance and are directly attributable to acquired businesses.
(5) Impact on tax provision was calculated using the enacted rate for the relevant jurisdiction for each period shown.
The above table reports adjusted income and adjusted diluted earnings per share, which are non-GAAP financial measures. We use these measures internally to make operating decisions and for the planning and forecasting of future periods, and therefore provide this information to investors because we believe it allows more meaningful period-to-period comparisons of our ongoing operating results, without the fluctuations in the amount of certain costs that do not reflect our underlying operating results.
JBT MAREL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Unaudited and in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net income (loss)
$
28
$
3
$
73
$
(170)
Income tax provision (benefit)
7
8
22
(38)
Interest expense, net
13
29
23
70
Other financing income (1)
(2)
(3)
(4)
(5)
Restructuring and related costs, net (2)
12
6
10
17
M&A and related costs (3)
11
20
19
94
Impairment of intangible assets (4)
33
—
33
—
Loss on investment
—
11
—
11
Pension expense, other than service cost (5)
—
—
—
147
Depreciation and amortization (6)
66
82
134
143
Adjusted EBITDA
$
168
$
156
$
310
$
268
Total revenue
$
981
$
935
$
1,917
$
1,789
Net income (loss) margin
2.9 %
0.4 %
3.8 %
(9.5) %
Adjusted EBITDA margin
17.1 %
16.7 %
16.2 %
15.0 %
(1) Other financing income represents transaction gains from fair value hedges on our foreign currency denominated debt, which are considered non-operating as they relate to the cost of borrowing on debt.
(2) Costs associated with restructuring actions, primarily consisting of severance and related employee costs. These costs are not considered reflective of our ongoing operating performance.
(3) Advisory, strategy, integration, and other costs associated with completed M&A transactions that are not considered indicative of our ongoing operating performance and are directly attributable to the integration of acquired businesses.
(4) Non-cash impairment charge related to acquired intangible assets recorded in the second quarter of 2026. This charge is not considered reflective of our ongoing operating performance.
(5) Pension expense, other than service cost, is excluded as it represents all non service-related pension expense, which consists of non-cash interest cost, expected return on plan assets, amortization of actuarial gains and losses, and settlement charges.
(6) Depreciation and amortization, including acquisition related amortization and depreciation expense, is excluded to determine EBITDA.
The above table reports Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. We use Adjusted EBITDA and Adjusted EBITDA margin internally to make operating decisions and believe that Adjusted EBITDA is useful to investors as a measure of the Company’s operational performance and a way to evaluate and compare operating performance against peers in the Company's industry.
JBT MAREL CORPORATION
SEGMENT RESULTS
(Unaudited and in millions)
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
(In millions)
Protein
Solutions
Prepared
Food and
Beverage
Solutions
Total
Protein
Solutions
Prepared
Food and
Beverage
Solutions
Total
Revenue
$
467
$
514
$
421
$
514
Less:
Cost of sales
282
340
270
330
Research and development
11
6
21
10
Other segment items (1)
95
107
87
112
Add:
Depreciation and amortization
33
29
43
32
Segment Adjusted EBITDA
$
112
$
90
$
202
$
86
$
94
$
180
Less:
Interest expense, net
13
29
Other income
(2)
(3)
Restructuring and related costs, net
12
6
M&A related costs
11
20
Impairment of intangible assets
33
—
Loss on investment
—
11
Depreciation and amortization
66
82
Unallocated amounts:
Corporate expense (2)
34
24
Income before income taxes
$
35
$
11
(1) Other segment items for each reportable segment include operating expenses, which primarily consist of selling, general and administrative expenses and corporate and shared service expenses allocated to each segment based upon benefits received. Other segment items exclude the impact of restructuring, M&A and other one-time related costs as they do not reflect the ongoing operations of the underlying business.
(2) Corporate expense is primarily comprised of unallocated selling, general and administrative expenses and activity that does not meet the criteria of a reportable segment. Corporate expense excludes the impact of depreciation and amortization, restructuring, M&A and other one-time related and non-operating costs shown separately in the table above.
JBT MAREL CORPORATION
SEGMENT RESULTS
(Unaudited and in millions)
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
(In millions)
Protein
Solutions
Prepared
Food and
Beverage
Solutions
Total
Protein
Solutions
Prepared
Food and
Beverage
Solutions
Total
Revenue
$
927
$
990
$
799
$
990
Less:
Cost of sales
571
658
517
644
Research and development
22
13
41
20
Other segment items (1)
189
219
163
213
Add:
Depreciation and amortization
67
60
71
59
Segment Adjusted EBITDA
$
212
$
160
$
372
$
149
$
172
$
321
Less:
Interest expense, net
23
70
Other income
(4)
(5)
Restructuring and related costs, net
10
17
M&A related costs
19
94
Impairment of intangible assets
33
—
Loss on investment
—
11
Pension expense, other than service cost
—
147
Depreciation and amortization
134
$
143
Unallocated amounts:
Corporate expense (2)
62
52
Income before income taxes
$
95
$
(208)
(1) Other segment items for each reportable segment include operating expenses, which primarily consist of selling, general and administrative expenses and corporate and shared service expenses allocated to each segment based upon benefits received. Other segment items exclude the impact of restructuring, M&A and other one-time related costs as they do not reflect the ongoing operations of the underlying business.
(2) Corporate expense is primarily comprised of unallocated selling, general and administrative expenses and activity that does not meet the criteria of a reportable segment. Corporate expense excludes the impact of depreciation and amortization, restructuring, M&A and other one-time related and non-operating costs shown separately in the table above.
JBT MAREL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in millions)
June 30, 2026
December 31, 2025
Assets
Cash and cash equivalents
$
93
$
168
Restricted cash
19
19
Trade receivables, net of allowances
443
443
Contract assets
144
119
Inventories
700
644
Other current assets
215
190
Total current assets
1,614
1,583
Property, plant and equipment, net
773
793
Goodwill
3,385
3,428
Intangible assets, net
1,972
2,122
Other assets
262
265
Total Assets
$
8,006
$
8,191
Liabilities and Stockholders' Equity
Short-term debt
$
9
$
412
Accounts payable, trade and other
300
262
Advance and progress payments
561
518
Accrued payroll
157
170
Other current liabilities
276
260
Total current liabilities
1,303
1,622
Long-term debt, less current portion
1,670
1,470
Deferred tax liabilities
356
383
Other liabilities
205
252
Common stock and additional paid-in capital
2,701
2,718
Retained earnings
1,527
1,465
Accumulated other comprehensive income
244
281
Total stockholders' equity
4,472
4,464
Total liabilities and stockholders' equity
$
8,006
$
8,191
JBT MAREL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in millions)
Six Months Ended June 30,
2026
2025
Cash flows from operating activities:
Net income (loss)
$
73
$
(170)
Adjustments to reconcile income (loss) to cash provided by operating activities:
Depreciation and amortization
134
143
Stock-based compensation
19
9
Impairment of intangible assets
33
—
Pension and other post-retirement benefits expense
—
148
Other, net
5
49
Changes in operating assets and liabilities
Trade accounts receivable, net
(29)
31
Inventories
(60)
(65)
Accounts payable, trade and other
45
14
Advance and progress payments
51
27
Other assets and liabilities, net
(50)
(49)
Cash provided by operating activities
221
137
Cash flows from investing activities:
Acquisitions, net of cash acquired
—
(1,746)
Capital expenditures
(51)
(39)
Proceeds from disposal of assets
9
5
Cash required by investing activities
(42)
(1,780)
Cash flows from financing activities
Net proceeds (repayments of) domestic credit facilities, net of debt issuance costs
398
(254)
Net (repayments of) proceeds from Term loan B, net of debt issuance costs
(202)
896
Repayment of 2026 Notes
(403)
—
Settlement of deal contingent hedge
—
(43)
Dividends
(11)
(11)
Common stock repurchases
(26)
—
Other, net
(10)
(45)
Cash (required) provided by financing activities
(254)
543
Net (decrease) increase in cash, cash equivalents and restricted cash
(75)
(1,100)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
—
2
Net (decrease) increase in cash, cash equivalents and restricted cash
$
(75)
$
(1,098)
Cash and cash equivalents from operations, beginning of period
187
1,228
Add: Net (decrease) increase in cash and cash equivalents
(75)
(1,098)
Cash, cash equivalents and restricted cash from operations, end of period
$
112
$
130
JBT MAREL CORPORATION
NON-GAAP FINANCIAL MEASURES
FREE CASH FLOW
(Unaudited and in millions)
Six Months Ended June 30,
2026
2025
Cash provided by operating activities
$
221
$
137
Less: capital expenditures
51
39
Plus: proceeds from disposal of assets
9
5
Plus: pension contributions
—
3
Free cash flow (FCF)
$
179
$
106
The above table reports free cash flow, which is a non-GAAP financial measure. We use free cash flow internally as a key indicator of our liquidity and ability to service debt, invest in business combinations, and return money to shareholders and believe this information is useful to investors because it provides an understanding of the cash available to fund these initiatives.
JBT MAREL CORPORATION
NET DEBT CALCULATION
(Unaudited and in millions)
As of Quarter Ended
Change From
Q2 2026
Q4 2025
Q2 2025
Prior Year-
End
Prior Year
Total debt
$
1,679
$
1,882
$
1,922
$
(203)
$
(243)
Less: cash and marketable securities
93
168
112
(75)
(19)
Net debt
$
1,586
$
1,714
$
1,810
$
(128)
$
(224)
JBT MAREL CORPORATION
BANK TOTAL NET LEVERAGE RATIO CALCULATION
(Unaudited and in millions)
Q2 2026
Total debt
$
1,679
Less: cash and marketable securities
93
Net debt
1,586
Other items considered debt under the credit agreement
45
Consolidated total indebtedness(1)
$
1,631
Trailing twelve months adjusted EBITDA
643
Other adjustments net to earnings under the credit agreement
38
Consolidated EBITDA(1)
$
681
Bank total net leverage ratio (Consolidated total indebtedness / Consolidated EBITDA)
2.40
Total net debt to trailing twelve months adjusted EBITDA
2.47
(1) As defined in the credit agreement.
JBT MAREL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF DILUTED EARNINGS PER SHARE
TO ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE
(Unaudited and in cents)
Guidance
Full Year 2026
Diluted earnings per share
$4.20 - $4.70
Non-GAAP adjustments:
Restructuring related costs(1)
~ 0.38
M&A related costs(2)
~ 0.61
Impairment of intangible assets(3)
~ 0.63
Acquisition related amortization and depreciation(4)
~ 3.21
Impact on tax provision from Non-GAAP adjustments(5)
~ (1.16)
Adjusted diluted earnings per share
$7.85 - $8.35
(1) Restructuring and related costs are estimated to be approximately $20 million for the full year 2026. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share.
(2) M&A related costs are estimated to be approximately $32 million for the full year 2026. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share.
(3) Non-cash impairment charge related to acquired intangible assets is $33M in the second quarter of 2026. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share.
(4) Acquisition related amortization and depreciation is expected to be approximately $167 million for the full year 2026. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share.
(5) Impact on tax provision for 2026 tax provision on non-GAAP adjustments was calculated using a tax rate of approximately 24% based on an estimate of the tax rate of the country in which the non-GAAP adjustments are originating.
JBT MAREL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA GUIDANCE
New Jersey Resources ve 3. čtvrtletí fiskálního roku 2026 vykázala čistý zisk 9,7 mil. USD oproti ztrátě 15,1 mil. USD před rokem. Zároveň upravila výhled NFEPS na 3,52 až 3,62 USD.
WALL, N.J.--(BUSINESS WIRE)--New Jersey Resources Corporation (NYSE: NJR) today reported financial and operating results for its fiscal 2026 third quarter and year-to-date period ended June 30, 2026.
Financial Highlights
Fiscal 2026 third-quarter consolidated net income of $9.7 million, or $0.10 per share, compared with net loss of $(15.1) million, or $(0.15) per share, in the third quarter of fiscal 2025 Fiscal 2026 third-quarter consolidated net financial earnings (NFE), a non-GAAP financial measure, of $11.3 million, or $0.11 per share, compared with $6.2 million, or $0.06 per share, in the third quarter of fiscal 2025 Fiscal 2026 year-to-date net income totaled $351.1 million, or $3.48 per share, compared with $320.6 million, or $3.20 per share, for the same period in fiscal 2025 Fiscal 2026 year-to-date NFE totaled $350.9 million, or $3.48 per share, compared with $313.4 million, or $3.13 per share, for the same period in fiscal 2025 Fiscal 2026 and Long-Term Outlook
Tightens fiscal 2026 net financial earnings per share (NFEPS) guidance to a range of $3.52 to $3.62, from its previous range of $3.48 to $3.63 Maintains 7 to 9 percent long-term NFEPS growth target, starting from a fiscal 2025 base of $2.83 per share* Management Commentary
Steve Westhoven, President and CEO of New Jersey Resources, stated, “Our year-to-date performance reflects the continued strength of our diversified business model, supported by solid execution across our operations. We are pleased to raise the lower end of our fiscal 2026 NFEPS guidance, as we remain focused on delivering reliable, affordable energy and long-term value for our shareowners.”
Fiscal 2026 NFEPS Guidance and Expected NFE Contributions by Segment
NJR is tightening its fiscal 2026 NFEPS guidance to a range of $3.52 to $3.62 from $3.48 to $3.63, subject to the risks and uncertainties identified below under "Forward-Looking Statements."
The following chart represents NJR’s current expected NFE contributions from its business segments for fiscal 2026:
Segment
Expected fiscal 2026
net financial earnings contribution
New Jersey Natural Gas
59 to 62 percent
Clean Energy Ventures
10 to 13 percent
Storage and Transportation
8 to 11 percent
Energy Services
21 to 23 percent
Home Services and Other
0 to 1 percent
In providing fiscal 2026 NFE guidance, management is aware that there could be differences between reported GAAP net income and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.
Financial Metrics
Three Months Ended
Nine Months Ended
June 30,
June 30,
($ in Thousands, except per share data)
2026
2025
2026
2025
Net income (loss)
$
9,689
$
(15,051
)
$
351,091
$
320,555
Basic EPS
$
0.10
$
(0.15
)
$
3.48
$
3.20
Net financial earnings*
$
11,304
$
6,198
$
350,940
$
313,388
Basic net financial earnings per share*
$
0.11
$
0.06
$
3.48
$
3.13
*A reconciliation of net income to NFE for the three and nine months ended June 30, 2026 and 2025, respectively is provided in the financial statements below.
Net Financial Earnings (Loss) by Business Segment
Three Months Ended
Nine Months Ended
June 30,
June 30,
($ in Thousands)
2026
2025
2026
2025
New Jersey Natural Gas
$
6,087
$
10,079
$
238,429
$
221,518
Clean Energy Ventures
(312
)
(6,857
)
4,055
37,315
Storage and Transportation
8,762
5,898
23,833
13,905
Energy Services
(4,035
)
(3,734
)
84,531
39,400
Home Services and Other
579
481
839
418
Subtotal
11,081
5,867
351,687
312,556
Eliminations
223
331
(747
)
832
Total
$
11,304
$
6,198
$
350,940
$
313,388
New Jersey Natural Gas (NJNG)
NJNG reported fiscal 2026 third-quarter NFE of $6.1 million, compared to NFE of $10.1 million during the same period in fiscal 2025. The decrease in NFE for the period was driven primarily by higher depreciation expense as a result of additional utility plant being placed into service, partially offset by higher utility gross margin.
Fiscal 2026 year-to-date NFE totaled $238.4 million, compared with NFE of $221.5 million for the same period in fiscal 2025. The increase in NFE for the period was due to higher base rates in October and November of fiscal 2026 compared to the same period of fiscal 2025 (new rates were effective November 21, 2024) as well as continued customer growth and higher Basic Gas Supply Service (BGSS) incentives.
Customers:
At June 30, 2026, NJNG serviced approximately 595,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties, compared to approximately 589,000 customers as of September 30, 2025. Regulatory Filings:
On June 1, 2026, NJNG submitted its annual Basic Gas Supply Service (BGSS), Conservation Incentive Program (CIP) and Energy-Efficiency filings to the New Jersey Board of Public Utilities (BPU) that, taken together, would provide customers with an 8.9% reduction in customer bills in advance of the 2026-2027 winter season – a $158 annual savings for the average residential customer – and bill stability while seeking recovery for investments in the continued delivery of safe, reliable natural gas service, which is the most affordable energy to heat homes and businesses. Also, on June 1, 2026, NJNG filed a base rate case with the BPU, seeking a $157.6 million increase to its base rates. The filing is based on an overall rate of return on rate base of 7.60 percent with a return on common equity of 10.10 percent. The proposed increase reflects a 55.50 percent common equity component. Once all filings are implemented, NJNG anticipates that the overall net result will leave NJNG annualized average customer bills nearly flat compared to today’s rates. Unless otherwise noted, NJNG cannot predict the outcome or ultimate resolution for open regulatory matters. BGSS Incentive Programs1:
BGSS incentive programs contributed $20.4 million to utility gross margin during the first nine months of fiscal 2026, compared with $14.5 million for the same period in fiscal 2025. This increase was primarily driven by increased margins from off-system sales and capacity release due to market volatility as a result of colder weather. For more information on utility gross margin, please see "Non-GAAP Financial Information" below.
Energy-Efficiency Programs:
SAVEGREEN® invested $78.8 million in the first nine months of fiscal 2026 in energy-efficiency upgrades for customers' homes and businesses. Investments in SAVEGREEN® are incremental to rate base and earn near-real time returns through an annual recovery mechanism. More than 115,000 customers have taken part in SAVEGREEN® to date, with those utilizing our whole home offerings realizing bill savings of up to 30%. Clean Energy Ventures (CEV)
CEV reported fiscal 2026 third-quarter net financial loss of $(0.3) million, compared with $(6.9) million during the third quarter of fiscal 2025, reflecting higher revenue, partially offset by higher depreciation and interest expense associated with capital invested over the past year.
Fiscal 2026 year-to-date NFE totaled $4.1 million, compared with NFE of $37.3 million for the same period in fiscal 2025. The decrease was primarily due to a gain from the sale of CEV's residential solar portfolio assets that was recognized in the prior year period.
Solar Investment Update:
During the first nine months of fiscal 2026, CEV placed eight commercial projects into service, adding 57.8 megawatts (MW)* to installed capacity. As of June 30, 2026, CEV had approximately 537MW of commercial solar capacity in service across New Jersey, New York, Connecticut, Pennsylvania, Rhode Island, Indiana, and Michigan. Storage and Transportation (S&T)
S&T reported fiscal 2026 third-quarter NFE of $8.8 million, compared with NFE of $5.9 million during the same period in fiscal 2025. Fiscal 2026 year-to-date NFE totaled $23.8 million, compared with NFE of $13.9 million for the same period in fiscal 2025.
NFE increased during both periods mainly due to higher operating income at Adelphia Gateway (Adelphia) primarily due to the impact of its Section 4 rate case settlement and higher firm storage rates at Leaf River.
Energy Services (ES)
ES reported fiscal 2026 third-quarter net financial loss of $(4.0) million, remaining largely flat compared with net financial loss of $(3.7) million for the same period in fiscal 2025.
Fiscal 2026 year-to-date NFE totaled $84.5 million, compared with NFE of $39.4 million for the same period in fiscal 2025. The increase in NFE was primarily due to higher natural gas price volatility that allowed ES to capture additional financial margin.
Home Services and Other Operations
Home Services and Other Operations reported fiscal 2026 third-quarter NFE of $0.6 million, compared with $0.5 million for the same period in fiscal 2025.
Fiscal 2026 year-to-date NFE totaled $0.8 million, compared with NFE of $0.4 million for the same period in fiscal 2025.
Capital Expenditures and Cash Flows:
During the first nine months of fiscal 2026, capital expenditures were $553.0 million, including accruals, compared with $456.8 million during the same period in fiscal 2025. The increase in capital expenditures was primarily due to higher expenditures at NJNG and CEV. NJR expects to deploy between $4.8 billion and $5.2 billion in capital expenditures through 2030, with utility spending at NJNG representing over 60% of the investment, all planned CEV capital expenditures safe-harbored to preserve tax credit eligibility, and strategic growth opportunities at S&T supporting long-term value creation. During the first nine months of fiscal 2026, cash flows from operations increased to $577.8 million, compared to cash flows from operations of $385.2 million in the same period in fiscal 2025, due primarily to an increase in financial margin at ES and higher base rates at NJNG. Conference Call to be Webcast on August 4, 2026
New Jersey Resources will host a live webcast of its fiscal 2026 third quarter financial results on Tuesday, August 4, 2026, at 10 a.m. ET. A few minutes prior to the webcast, visit www.njresources.com and select “Investor Relations.” Scroll down and click the webcast link under “Latest Events” on the right side of the page.
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a diversified energy infrastructure and energy services company headquartered in Wall, New Jersey.
NJR is composed of five primary businesses:
New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties. Clean Energy Ventures invests in, owns and operates solar projects, providing customers with low-carbon solutions. Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America. Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility. Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as SAVEGREEN®.
For more information about NJR:
www.njresources.com.
Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
Forward-Looking Statements:
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability to control or estimate precisely, such as expectations regarding future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management. Forward-looking statements in this earnings release include, but are not limited to, statements regarding NJR’s NFEPS guidance for fiscal 2026, projected NFEPS growth rates and our guidance range, forecasted contributions of business segments to NJR’s NFE for fiscal 2026, our capital plan through 2030, including our capital expenditure projections through 2030, infrastructure programs and investments, future decarbonization opportunities including IIP, Energy Efficiency programs; the outcome or timing of our Base Rate Case and other filings with the BPU, and other legal and regulatory expectations and statements that include other projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.
Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with the U.S. Securities and Exchange Commission (SEC), including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s website, http://www.sec.gov. Information included in this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.
NFE and financial margin exclude unrealized gains or losses on derivative instruments related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at ES, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization expenses as well as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is calculated for NFE purposes and any necessary quarterly tax adjustment is applied to ES.
NJNG’s utility gross margin is defined as operating revenues less natural gas purchases, sales tax, and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on utility gross margin.
Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Annual Report on Form 10-K, Item 7.
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
(Thousands, except per share data)
2026
2025
2026
2025
OPERATING REVENUES
Utility
$
200,869
$
204,790
$
1,251,692
$
1,156,558
Nonutility
148,311
94,156
641,743
543,776
Total operating revenues
349,180
298,946
1,893,435
1,700,334
OPERATING EXPENSES
Gas purchases
Utility
64,255
73,321
508,306
473,975
Nonutility
82,200
67,852
308,164
287,277
Related parties
1,280
1,268
3,799
4,652
Operation and maintenance
105,574
100,133
304,751
299,806
Regulatory rider expenses
10,434
10,979
103,038
81,956
Depreciation and amortization
53,545
47,000
153,250
140,296
Gain on sale of assets
—
(545
)
—
(56,092
)
Total operating expenses
317,288
300,008
1,381,308
1,231,870
OPERATING INCOME (LOSS)
31,892
(1,062
)
512,127
468,464
Other income, net
14,772
11,040
42,427
39,663
Interest expense, net of capitalized interest
35,199
31,694
105,850
98,112
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
11,465
(21,716
)
448,704
410,015
Income tax provision (benefit)
3,353
(5,142
)
103,754
93,835
Equity in earnings of affiliates
1,577
1,523
6,141
4,375
NET INCOME (LOSS)
$
9,689
$
(15,051
)
$
351,091
$
320,555
EARNINGS (LOSS) PER COMMON SHARE
Basic
$
0.10
$
(0.15
)
$
3.48
$
3.20
Diluted
$
0.10
$
(0.15
)
$
3.46
$
3.18
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic
101,092
100,373
100,881
100,173
Diluted
101,780
100,373
101,526
100,813
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
(Thousands)
2026
2025
2026
2025
NEW JERSEY RESOURCES
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net income (loss)
$
9,689
$
(15,051
)
$
351,091
$
320,555
Add:
Unrealized loss (gain) on derivative instruments and related transactions
2,749
10,766
4,460
(10,072
)
Tax effect
(653
)
(2,559
)
(1,060
)
2,394
Effects of economic hedging related to natural gas inventory
(654
)
16,924
(4,657
)
747
Tax effect
156
(4,022
)
1,107
(178
)
NFE tax adjustment
17
140
(1
)
(58
)
Net financial earnings
$
11,304
$
6,198
$
350,940
$
313,388
Weighted Average Shares Outstanding
Basic
101,092
100,373
100,881
100,173
Diluted
101,780
100,373
101,526
100,813
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
Basic earnings (loss) per share
$
0.10
$
(0.15
)
$
3.48
$
3.20
Add:
Unrealized loss (gain) on derivative instruments and related transactions
0.02
0.11
0.04
(0.10
)
Tax effect
—
(0.03
)
(0.01
)
0.02
Effects of economic hedging related to natural gas inventory
(0.01
)
0.17
(0.04
)
0.01
Tax effect
—
(0.04
)
0.01
—
Basic net financial earnings per share
$
0.11
$
0.06
$
3.48
$
3.13
NFE is a measure of earnings based on the elimination of timing differences surrounding the recognition of certain gains or losses to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminate the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, future or other derivatives to hedge natural gas transactions and forecasted SREC production, the resulting unrealized gains and losses are also eliminated from NFE. ES economically hedges its natural gas inventory with financial derivative instruments and calculates the related tax effect based on the statutory rate. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
(Thousands)
2026
2025
2026
2025
NATURAL GAS DISTRIBUTION
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
Operating revenues
$
201,107
$
205,029
$
1,252,405
$
1,157,439
Less:
Natural gas purchases
65,875
74,941
513,166
480,244
Operating and maintenance (1)
36,854
34,719
96,463
90,238
Regulatory rider expense
10,434
10,979
103,038
81,956
Depreciation and amortization
40,385
35,987
114,854
103,784
Gross margin
47,559
48,403
424,884
401,217
Add:
Operating and maintenance (1)
36,854
34,719
96,463
90,238
Depreciation and amortization
40,385
35,987
114,854
103,784
Utility gross margin
$
124,798
$
119,109
$
636,201
$
595,239
(1) Excludes selling, general and administrative expenses of $27.8 million and $27.1 million for the three months ended June 30, 2026 and 2025, respectively, and $82.9 million and $85.0 million for the nine months ended June 30, 2026 and 2025, respectively.
ENERGY SERVICES
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
Operating revenues
$
79,962
$
38,850
$
443,224
$
371,548
Less:
Natural Gas purchases
82,091
67,781
307,803
287,496
Operation and maintenance (1)
2,841
1,020
15,316
13,482
Depreciation and amortization
41
30
125
139
Gross margin
(5,011
)
(29,981
)
119,980
70,431
Add:
Operation and maintenance (1)
2,841
1,020
15,316
13,482
Depreciation and amortization
41
30
125
139
Unrealized loss (gain) on derivative instruments and related transactions
2,749
10,766
4,460
(10,072
)
Effects of economic hedging related to natural gas inventory
(654
)
16,924
(4,657
)
747
Financial margin
$
(34
)
$
(1,241
)
$
135,224
$
74,727
(1) Excludes selling, general and administrative expenses of $0.2 million and $0.3 million during the three months ended June 30, 2026 and 2025, respectively, and $0.7 million and $0.9 million during the nine months ended June 30, 2026 and 2025, respectively.
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
Net (loss) income
$
(5,650
)
$
(24,983
)
$
84,682
$
46,567
Add:
Unrealized loss (gain) on derivative instruments and related transactions
2,749
10,766
4,460
(10,072
)
Tax effect
(653
)
(2,559
)
(1,060
)
2,394
Effects of economic hedging related to natural gas
(654
)
16,924
(4,657
)
747
Tax effect
156
(4,022
)
1,107
(178
)
NFE tax adjustment
17
140
(1
)
(58
)
Net financial (loss) earnings
$
(4,035
)
$
(3,734
)
$
84,531
$
39,400
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
(Thousands, except per share data)
2026
2025
2026
2025
NEW JERSEY RESOURCES
Operating Revenues
Natural Gas Distribution
$
201,107
$
205,029
$
1,252,405
$
1,157,439
Clean Energy Ventures
19,178
12,030
60,870
46,403
Energy Services
79,962
38,850
443,224
371,548
Storage and Transportation
31,388
27,129
88,902
79,064
Home Services and Other
17,758
16,177
48,722
47,089
Sub-total
349,393
299,214
1,894,123
1,701,543
Eliminations
(213
)
(268
)
(688
)
(1,209
)
Total
$
349,180
$
298,946
$
1,893,435
$
1,700,334
Operating Income (Loss)
Natural Gas Distribution
$
19,731
$
21,273
$
341,962
$
316,255
Clean Energy Ventures
1,156
(4,353
)
8,806
52,368
Energy Services
(5,229
)
(30,240
)
119,282
69,561
Storage and Transportation
14,356
10,544
37,913
26,113
Home Services and Other
1,219
1,065
2,198
1,667
Sub-total
31,233
(1,711
)
510,161
465,964
Eliminations
659
649
1,966
2,500
Total
$
31,892
$
(1,062
)
$
512,127
$
468,464
Equity in Earnings of Affiliates
Storage and Transportation
$
1,039
$
908
$
4,561
$
3,030
Eliminations
538
615
1,580
1,345
Total
$
1,577
$
1,523
$
6,141
$
4,375
Net Income (Loss)
Natural Gas Distribution
$
6,087
$
10,079
$
238,429
$
221,518
Clean Energy Ventures
(312
)
(6,857
)
4,055
37,315
Energy Services
(5,650
)
(24,983
)
84,682
46,567
Storage and Transportation
8,762
5,898
23,833
13,905
Home Services and Other
579
481
839
418
Sub-total
9,466
(15,382
)
351,838
319,723
Eliminations
223
331
(747
)
832
Total
$
9,689
$
(15,051
)
$
351,091
$
320,555
Net Financial Earnings (Loss)
Natural Gas Distribution
$
6,087
$
10,079
$
238,429
$
221,518
Clean Energy Ventures
(312
)
(6,857
)
4,055
37,315
Energy Services
(4,035
)
(3,734
)
84,531
39,400
Storage and Transportation
8,762
5,898
23,833
13,905
Home Services and Other
579
481
839
418
Sub-total
11,081
5,867
351,687
312,556
Eliminations
223
331
(747
)
832
Total
$
11,304
$
6,198
$
350,940
$
313,388
Throughput (Bcf)
NJNG, Core Customers
14.6
19.2
86.1
82.1
NJNG, Off System/Capacity Management
10.7
15.1
60.3
51.6
Energy Services Fuel Mgmt. and Wholesale Sales
25.7
18.6
82.7
82.1
Total
51.0
52.9
229.1
215.8
Common Stock Data
Yield at June 30,
3.4
%
4.0
%
3.4
%
4.0
%
Market Price at June 30,
$
56.04
$
44.82
$
56.04
$
44.82
Shares Out. at June 30,
101,411
100,378
101,411
100,378
Market Cap. at June 30,
$
5,683,070
$
4,498,953
$
5,683,070
$
4,498,953
Three Months Ended
Nine Months Ended
(Unaudited)
June 30,
June 30,
(Thousands, except customer and weather data)
2026
2025
2026
2025
NATURAL GAS DISTRIBUTION
Utility Gross Margin
Operating revenues
$
201,107
$
205,029
$
1,252,405
$
1,157,439
Less:
Natural gas purchases
65,875
74,941
513,166
480,244
Operating and maintenance (1)
36,854
34,719
96,463
90,238
Regulatory rider expense
10,434
10,979
103,038
81,956
Depreciation and amortization
40,385
35,987
114,854
103,784
Gross margin
47,559
48,403
424,884
401,217
Add:
Operating and maintenance (1)
36,854
34,719
96,463
90,238
Depreciation and amortization
40,385
35,987
114,854
103,784
Total Utility Gross Margin
$
124,798
$
119,109
$
636,201
$
595,239
(1) Excludes selling, general and administrative expenses of $27.8 million and $27.1 million for the three months ended June 30, 2026 and 2025, respectively, and $82.9 million and $85.0 million for the nine months ended June 30, 2026 and 2025, respectively.
Utility Gross Margin, Operating Income and Net Income
Residential
$
76,156
$
74,131
$
441,829
$
419,817
Commercial, Industrial & Other
19,945
19,924
85,144
80,901
Firm Transportation
24,386
19,666
85,977
76,750
Total Firm Margin
120,487
113,721
612,950
577,468
Interruptible
1,223
1,462
2,884
3,236
Total System Margin
121,710
115,183
615,834
580,704
Basic Gas Supply Service Incentive
3,088
3,926
20,367
14,535
Total Utility Gross Margin
124,798
119,109
636,201
595,239
Operation and maintenance expense
64,682
61,849
179,385
175,200
Depreciation and amortization
40,385
35,987
114,854
103,784
Operating Income
$
19,731
$
21,273
$
341,962
$
316,255
Net Income
$
6,087
$
10,079
$
238,429
$
221,518
Net Financial Earnings
$
6,087
$
10,079
$
238,429
$
221,518
Throughput (Bcf)
Residential
6.1
6.2
48.6
44.3
Commercial, Industrial & Other
1.2
1.2
9.0
8.3
Firm Transportation
1.8
1.9
10.9
10.3
Total Firm Throughput
9.1
9.3
68.5
62.9
Interruptible
5.5
9.9
17.6
19.2
Total System Throughput
14.6
19.2
86.1
82.1
Off System/Capacity Management
10.7
15.1
60.3
51.6
Total Throughput
25.3
34.3
146.4
133.7
Customers
Residential
540,569
534,561
540,569
534,561
Commercial, Industrial & Other
33,174
32,464
33,174
32,464
Firm Transportation
20,847
21,163
20,847
21,163
Total Firm Customers
594,590
588,188
594,590
588,188
Interruptible
31
87
31
87
Total System Customers
594,621
588,275
594,621
588,275
Off System/Capacity Management*
25
30
25
30
Total Customers
594,646
588,305
594,646
588,305
*The number of customers represents those active during the last month of the period.
Degree Days
Actual
437
373
4,587
4,147
Normal
452
454
4,347
4,361
Percent of Normal
96.7
%
82.2
%
105.5
%
95.1
%
Three Months Ended
Nine Months Ended
(Unaudited)
June 30,
June 30,
(Thousands, except customer, RECs and megawatt data)
2026
2025
2026
2025
CLEAN ENERGY VENTURES
Operating Revenues
SREC sales
$
154
$
179
$
23,611
$
17,997
TREC sales
7,278
4,522
13,407
9,581
SREC II sales
1,190
442
2,178
1,145
Merchant Power
4,497
3,360
9,706
7,709
PPA / Other
6,059
3,527
11,968
8,101
Residential solar portfolio
—
—
—
1,870
Total Operating Revenues
$
19,178
$
12,030
$
60,870
$
46,403
Depreciation and Amortization
$
7,664
$
5,772
$
21,817
$
17,701
Operating Income (Loss)
$
1,156
$
(4,353
)
$
8,806
$
52,368
Income Tax (Benefit) Provision
$
(31
)
$
(2,068
)
$
879
$
10,994
Net (Loss) Income
$
(312
)
$
(6,857
)
$
4,055
$
37,315
Net Financial (Loss) Earnings
$
(312
)
$
(6,857
)
$
4,055
$
37,315
Solar Renewable Energy Certificates Generated
93,879
92,508
203,201
231,877
Solar Renewable Energy Certificates Sold
996
1,155
122,119
87,657
Transition Renewable Energy Certificates Generated
Driven Brands jednomyslně odmítla nevyžádanou nabídku ADW Capital na převzetí za 18 USD za akcii. Považuje ji za podmíněnou a výrazně podhodnocující společnost.
Proposal Significantly Undervalues the Company and Is Not in the Best Interest of Driven Brands and its Shareholders
CHARLOTTE, N.C.--(BUSINESS WIRE)--Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”), North America's largest automotive services company, today announced that its Board of Directors has unanimously rejected ADW Capital Management, LLC’s (“ADW Capital”) non-binding, highly conditional and unsolicited proposal to acquire Driven Brands for $18.00 per share in cash.
Consistent with its fiduciary duties and in consultation with its financial and legal advisors, the Board carefully reviewed and evaluated ADW Capital’s proposal. Following its review, the Driven Brands Board unanimously determined that ADW Capital’s proposal is highly conditional and does not provide a credible basis on which the Company could proceed. Additionally, the Board concluded that ADW Capital’s proposal significantly undervalues the Company in light of its long-term value creation opportunities and is therefore not in the best interest of Driven Brands and its shareholders.
The Driven Brands Board and leadership team remain confident in the Company’s strategy, long-term value creation opportunities and disciplined execution. The Board remains committed to acting in the best interests of all shareholders and to evaluating opportunities to maximize shareholder value.
About Driven Brands
Driven Brands™, headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including oil change, paint, collision, glass, vehicle repair, and maintenance. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. As of the end of fiscal year 2025, Driven Brands had over 4,200 locations across the U.S. and Canada, and services tens of millions of vehicles annually. Driven Brands’ network generated approximately $1.9 billion in annual revenue from approximately $6.1 billion in system-wide sales.
Monolithic Power Systems byla zvýšena na Buy a cílová cena je 1 925 USD po přehodnocení růstu Enterprise Data. Ve 2Q tržby činily 981 mil. USD a překonaly výhled o 8 %.
SummaryMonolithic Power Systems is upgraded to Buy, with a new price target of $1,925, reflecting a significant Enterprise Data growth reset.Q2 revenue of $981M beat guidance by 8%, driven by broad-based power management adoption and strong Communications and Enterprise Data segment growth.MPWR is expanding TAM with >30% CPU server share, entry into building automation ($40B-$50B SAM), and new high-speed analog products.Valuation premium is justified by 48% YoY growth, 55.6% gross margin, and multiple SAM expansion vectors, though risks include execution, data center concentration, and China exposure. denisik11/iStock via Getty Images
Introduction Back in May 2026, we issued a Hold call for Monolithic Power Systems, Inc. (MPWR) after the Q1 earnings, with fair value near $1,570. Q2 has changed the setup, we think. Revenue of $981M landed roughly 8% above the
1.15K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
HOUSTON--(BUSINESS WIRE)--Crescent Energy Company (NYSE: CRGY) (“Crescent” or the “Company”) today announced financial and operating results for the second quarter of 2026. Crescent’s earnings release and supplemental earnings presentation can be found at www.crescentenergyco.com.
The Company’s second quarter 2026 conference call is planned for 10 a.m. CT (11 a.m. ET) on Tuesday, August 4, 2026.
About Crescent Energy Company
Crescent is a differentiated energy company committed to delivering value through a disciplined, returns-driven growth through acquisition strategy and consistent return of capital. Our long-life, balanced portfolio combines significant cash flow from stable production with deep, high-quality development inventory. Our activities are focused in the Eagle Ford, Permian and Uinta Basins, and we own minerals and royalty interests across premier U.S. oil and natural gas basins, primarily operated by large, well-capitalized companies, with a core focus in the Eagle Ford. For additional information, please visit www.crescentenergyco.com.
Fluence Energy potvrdila výhled na fiskální rok 2026 a podpořila ho rekordním backlogem asi 5,6 mld. USD. Firma také podepsala smlouvy s dvěma velkými hyperscalery pro datová centra s AI.
Key Takeaways Fluence Energy's record $5.6B backlog supports reaffirmed fiscal 2026 guidance and revenue visibility. FLNC signed hyperscaler supply agreements as AI data-center demand expands its growth pipeline. Fluence Energy trades below industry price-to-sales levels after a steep six-month share decline. Shares of Fluence Energy (FLNC - Free Report) have declined 52% over the past six months, underperforming the Zacks Alternate Energy - Other industry, as well as fellow industry players FuelCell Energy (FCEL - Free Report) and GE Vernova (GEV - Free Report) .
6- Month Stock Price ComparisonImage Source: Zacks Investment Research
Shares of Fluence Energy have declined this year due to headwinds like battery oversupply fears, periodic execution delays and macroeconomic pressures. Despite the recent drop, Fluence Energy’s robust fundamentals can’t be ignored.
The pullback over the past six months might be an opportune moment for long-term investors to buy FLNC’s shares. Currently priced at $13.93, the stock is 56% below its 52-week high, leaving ample room for growth.
Reasons Why We Remain Bullish on FLNC StockGrowing Utility-Scale Energy Storage Demand: Fluence Energy stands to benefit from the accelerating global adoption of battery energy storage systems, driven by the rapid expansion of renewable energy generation and increasing electricity demand. As utilities integrate more solar and wind capacity into the grid, the need for large-scale storage solutions to balance intermittent power generation and maintain grid reliability continues to rise.
Strong Backlog Position: The company is already witnessing these favorable trends in its business. Management noted that accelerating utility demand, industrial electrification and data-center growth have expanded its sales pipeline. In the second-quarter fiscal 2026 conference call, management stated that the data center pipeline expanded 30% compared with the fiscal first quarter. Moreover, backlog climbed to record levels of approximately $5.6 billion.
Fluence Energy reaffirmed its fiscal 2026 guidance. The fiscal 2026 guidance is covered by backlog, providing strong revenue visibility. Management expects annual recurring revenues to reach approximately $180 million by the end of fiscal 2026, up from $148 million in fiscal 2025. Adjusted EBITDA is still expected in the range of $40-$60 million for fiscal 2026.
AI Data Centers Boosting Growth Potential: The rapid build-out of AI data centers is emerging as another powerful tailwind for Fluence. AI facilities require highly reliable, flexible power systems capable of handling sudden fluctuations in electricity demand. Battery energy storage systems help stabilize voltage and frequency, reduce peak demand and support uninterrupted operations, making them an increasingly essential component of next-generation AI infrastructure.
The company has recently signed master supply agreements with two major hyperscale data-center operators and expects initial orders to follow shortly. These MSAs established Fluence as a qualified supplier, positioning us to build on expected near-term data center projects for both hyperscalers. The company’s Smartstack platform has been developed to address AI-related power requirements.
Decent Earnings Surprise History: The company surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters, missing once and reporting in-line earnings on the other occasion. The average beat is 18.1%.
Fluence Energy’s Shares Are Cheap: The stock is undervalued compared with its industry. It is currently trading at a price-to-sales multiple of 0.61, lower than the industry levels. FuelCell Energy and GE Vernova trade at much higher levels. FuelCell Energy has a Value Score of F, while Fluence Energy and GE Vernova each have a value score of D.
Valuation PictureImage Source: Zacks Investment Research
FLNC Is Still a Solid PickBased on the abovementioned tailwinds, investors should consider parking their cash in FLNC despite the recent price weakness. The company currently carries a Zacks Rank #2 (Buy).
The Wall Street average target price of $18.89 for FLNC stock suggests an upside of more than 35% from the current levels.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hillman Solutions Corp. uzavřela dohodu o koupi společnosti Kanebridge za 315 milionů USD. Akvizice má rozšířit její průmyslový adresovatelný trh o 1 miliardu USD na 3 miliardy USD.
Strategic Acquisition of Fastener Distributor Advances Hillman's Presence in Untapped Industrial Market
Increases Industrial Total Addressable Market to $3 Billion while Diversifying Customer and End-Market Exposure
Unique Digital and Operational Platform Primed for Future Growth Opportunities
CINCINNATI, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (Nasdaq: HLMN) (the "Company", “Hillman Group”, or "Hillman"), a leading provider of hardware products and merchandising solutions, has entered into a definitive agreement to acquire Kanebridge Corporation ("Kanebridge"), a leading master distributor of industrial fasteners for a purchase price of $315 million, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses.
Kanebridge supplies more than 44,000 commercial and military-grade fastener SKUs to distributors throughout the U.S. and Canada from its warehouses in Illinois and California, selling exclusively to distributors in commercial and industrial channels. Kanebridge prides itself on maintaining industry-leading fill rates, its proprietary digital ordering platform, FasNet™, which enables same-day shipping, and its long-standing relationships with industrial and specialty distributors. These capabilities have made Kanebridge a critical partner for its customers for over 50 years.
Consistent with Hillman's disciplined acquisition framework, the transaction is expected to be accretive to Hillman's margins and earnings. Hillman anticipates cost synergies from Hillman’s sourcing and distribution expertise, sales synergies coming from cross-selling opportunities, and material tax benefits from the transaction.
Jon Michael Adinolfi, President and Chief Executive Officer of Hillman, commented: "Kanebridge gives us an immediate and credible foothold in the industrial channel, which we've identified as one of our biggest growth opportunities. Their master distributor model, capabilities-driven platform, and long-standing distributor relationships make it a great fit for us. This acquisition follows the same disciplined, accretive approach to M&A that has built Hillman over the past 60 years, and we're looking forward to welcoming the Kanebridge team to Hillman."
Following completion of the acquisition, Kanebridge will operate as part of Hillman's commercial & industrial business, led by Chris Martin, EVP, Commercial & Industrial.
Martin added: “Like Hillman, Kanebridge has decades of expertise taking great care of customers, maintaining strong fill rates, and providing a long tail of specialty fastener SKUs. Kanebridge's focus on the U.S. industrial market complements Hillman's existing industrial presence in Canada, broadening our combined reach across North America. The Kanebridge platform makes a great addition to our Commercial & Industrial business.”
The acquisition advances Hillman's Industrial growth strategy, outlined at its recent Investor Day. The acquisition expands Hillman’s addressable market opportunity in industrial by $1 billion, bringing the total TAM to $3 billion. Kanebridge's master distributor model will leverage Hillman's global "dual faucet" sourcing expertise and extensive breadth of SKUs. Kanebridge gives Hillman an immediate, scaled platform to serve long-tail, high-specification fastener requirements across industrial and specialty distribution channels, while creating new cross-sell opportunities across Hillman's existing C&I, Pro and DIY customer base.
The transaction has been approved by the boards of directors of both companies and is subject to regulatory approval and customary closing conditions. The Company expects to fund the transaction with a combination of cash from the balance sheet, borrowings under its existing asset-based revolving credit facility, and an add-on to its existing First Lien Term Loan, which the Company intends to raise through the capital markets.
Advisors
Jefferies LLC is acting as financial advisor and Thompson Hine LLP is acting as legal counsel to Hillman. Piper Sandler is acting as financial advisor and Koley Jessen P.C., L.L.O. is acting as legal counsel to Kanebridge.
About Hillman Solutions Corp.
Founded in 1964 and headquartered in Cincinnati, Hillman is a leading provider of hardware and related products serving retail, pro distribution, and industrial customers. Over the last 60-plus years, Hillman has built a legacy of service and growth by forming strategic partnerships with North America's leading home improvement, hardware, and farm and fleet retailers. Hillman differentiates itself from the competition with its dedicated field sales team of 1,200+ associates, direct-to-store distribution capabilities, and world class global sourcing and supply chain expertise. The company offers an extensive product portfolio of more than 111,000 SKUs, including fasteners (power screws, nuts, bolts), hardware (builder's hardware, door hardware, rope & chain, accessories), project gear & supplies (gloves, work gear, paint & cleaning sundries), and key and engraving services (key duplication, auto keys, and engraving). Hillman is committed to delivering exceptional customer service, innovative products, and dependable solutions to its customers and regularly earns vendor of the year recognition from top customers. For more information on Hillman, visit www.hillman.com.
About Kanebridge Corporation
Kanebridge Corporation is a leading U.S. master distributor of commercial and military-grade fasteners, serving distributors nationwide for more than 50 years. With more than 44,000 SKUs available for same-day shipment from warehouses in Illinois and California, Kanebridge is known for its product depth, fill-rate reliability, and specification expertise across inch and metric fastener categories. For more information, visit [www.kanebridge.com].
Forward-Looking Statements
All statements made in this press release that are considered to be forward-looking are made in good faith by the Company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," “target”, “goal”, "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance and statements relating to the Transaction, which may not be consummated on the terms described in this press release, or at all. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the failure to obtain required regulatory approvals for the transaction or the receipt of such approvals on unfavorable terms; (2) the failure to satisfy other closing conditions for the transaction; (3) delays in consummating the transaction; (4) the possibility that the transaction may not be completed or not completed in a timely manner; (5) the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement; and (6) risks relating to the integration of the acquired business and the realization of anticipated synergies and other benefits may not be fully realized or may take longer to realize than expected; (7) unfavorable economic conditions that may affect our and our customers’, suppliers’ and other business partners’ operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (8) increased supply chain costs, including tariffs, raw materials, sourcing, transportation and energy; (9) the highly competitive nature of the markets that we serve; (10) the ability to continue to innovate with new products and services; (11) seasonality; (12) large customer concentration; (13) the ability to recruit and retain qualified employees; (14) the outcome of any legal proceedings that may be instituted against the Company; (15) adverse changes in currency exchange rates; or (16) regulatory changes and potential legislation that could adversely impact financial results. The foregoing list of factors is not exclusive, and readers should also refer to those risks that are included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Annual Report on Form 10-K filed on February 17, 2026. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements.
Except as required by applicable law, the Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this communication to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Contact:
Michael Koehler
Vice President – Corporate Development, Investor Relations, Treasury
513-826-5495 [email protected]
Cencora má za fiskální 3Q vykázat tržby 84,89 miliardy USD, tedy o 5,2 % více, a EPS 4,37 USD, což je meziročně o 9,3 % výše. Zisk podpoří speciality pharmaceuticals a onkologické služby.
Key Takeaways Cencora is expected to post 5.2% revenue growth and 9.3% higher EPS in fiscal Q3.COR's specialty pharmaceuticals and oncology services are expected to support operating income.COR may see margin expansion despite pricing changes, biosimilar conversions and higher interest expense. Cencora (COR - Free Report) is slated to report third-quarter fiscal 2026 results on Aug. 5, before market open.
In the last reported quarter, the company delivered a negative earnings surprise of 1.04%. COR’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 1.59%.
Cencora’s Q3 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $84.89 billion, up 5.2% from the prior-year quarter’s level. The consensus mark for earnings is pinned at $4.37 per share, indicating an improvement of 9.3% from the prior-year quarter’s figure.
So far this year, COR’s shares have lost 7.8% compared with the industry’s decline of 1.1%. The S&P Index has gained 9.5% in the same period.
Image Source: Zacks Investment Research
Factors to Consider Before COR’s Q3 ResultsCencora appears well positioned to deliver another quarter of healthy earnings growth when it reports its results soon. Revenue momentum is likely to have remained constrained by industry-specific pricing dynamics and customer mix changes. Management reiterated confidence in its long-term pharmaceutical-centric strategy, highlighting continued strength in specialty pharmaceuticals, digital transformation initiatives and improving contributions from recently acquired physician management service organizations (MSOs).
Operating performance is expected to have been supported by resilient demand for specialty drugs, expanding oncology services through OneOncology and Regional Cancer Care Associates (RCA), and ongoing productivity initiatives, even as revenue growth faces pressure from manufacturer price reductions, branded-to-biosimilar conversions and moderating GLP-1 sales growth.
Within the U.S. Healthcare Solutions segment, specialty pharmaceutical distribution is likely to have remained the primary growth driver. Continued volume growth from health systems and physician practices, together with increasing contributions from OneOncology, should have boosted operating income. However, revenue growth is likely to have been tempered by manufacturer list-price reductions, lower-margin branded drug conversions at a large mail-order pharmacy customer and slower GLP-1 growth.
The International Healthcare Solutions segment is expected to have maintained healthy momentum, supported by strong European pharmaceutical distribution and the ongoing turnaround in the global specialty logistics business. Contract wins in cell and gene therapies, laboratory logistics and productivity improvements should have continued to boost segment performance. Meanwhile, World Courier’s improving profitability and volume trends are likely to have remained positive contributors.
COR’s operating margins are likely to have continued their expansion, although modest, aided by the higher-margin MSO business, portfolio optimization initiatives and disciplined expense management. Higher interest expense from the OneOncology acquisition and industry pricing changes may have presented modest headwinds. Cencora’s focus on specialty pharmaceuticals, oncology expansion and capital deployment — including resumed share repurchases — should have supported another quarter of solid earnings growth and reinforced confidence in its long-term operating income outlook.
Earnings Beat LikelyOur proven model predicts an earnings beat for COR this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (earnings of $4.43 per share) and the Zacks Consensus Estimate, is +1.37%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Key picksHere are some other stocks from the broader medical space, which you may also consider for your portfolio, as these have the right combination of elements to post an earnings beat this reporting cycle.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +0.21% and a Zacks Rank #2 at present. The company is set to release fourth-quarter fiscal 2026 results on Aug. 11. You can see the complete list of today’s Zacks #1 Rankstocks here.
CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS indicates an improvement of 16.4% from the year-ago reported figure.
Alcon (ALC - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3 at present. The company is scheduled to release second-quarter 2026 results on Aug. 10.
ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.66%. The Zacks Consensus Estimate for ALC’s second-quarter EPS implies an improvement of 1.3% from the year-ago reported figure.
Agilent Technologies (A - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present.
A’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.61%. The Zacks Consensus Estimate for A’s third-quarter fiscal 2026 EPS calls for an improvement of 8% from the year-ago reported figure.
Viper Energy zvýšila od 3. čtvrtletí 2026 základní dividendu o 32 % na 2,00 USD na akcii ročně. Současně zvýšila výhled produkce na celý rok 2026 na 66 000 až 67 250 bo/d (132 500 až 135 000 boe/d).
MIDLAND, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ:VNOM) (“Viper,” “we,” “our” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced financial and operating results for the second quarter ended June 30, 2026.
The Company today also announced that effective Q3 2026 the Board of Directors of Viper has approved a 32% increase to its base dividend, or an amount equal to $2.00 per Class A share annually. This increased base dividend, which would imply a 4.5% annualized yield at today’s stock price, is expected to be fully protected down to approximately $30 per barrel WTI and will represent approximately 50% of cash available for distribution at $70 per barrel WTI. With today’s announced increase to the base dividend and a further commitment to prioritize steady growth of the dividend, the Company additionally announced that it will be removing its quarterly commitment to return at least 75% of cash available for distribution. Increased flexibility in this revised return of capital framework is expected to allow the Company to continue to focus on opportunistic share repurchases while also supporting the further execution on accretive M&A.
SECOND QUARTER HIGHLIGHTS
Q2 2026 average production of 65,077 bo/d (134,363 boe/d)Q2 2026 lease bonus income of $15 millionQ2 2026 consolidated net income (including non-controlling interest) of $331 million; net income attributable to Viper of $142 million, or $0.73 per Class A common share; consolidated adjusted net income of $345 million, or $1.78 per Class A common shareQ2 2026 cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $262 million, or $1.37 per Class A common shareDeclared Q2 2026 base cash dividend of $0.38 per Class A common share; implies a 3.4% annualized yield based on the July 31, 2026 Class A common share closing price of $44.61Declared Q2 2026 variable cash dividend of $0.29 per Class A common share; total base-plus-variable dividend of $0.67 per Class A common share implies a 6.0% annualized yield based on the July 31, 2026 Class A common share closing price of $44.61During Q2 2026, repurchased approximately 3.0 million shares of the Company’s Class A common stock for an aggregate purchase price of approximately $132 million, excluding excise tax (average price of $44.34 per share)Total Q2 2026 return of capital to Class A stockholders of $197 million, or $1.03 per Class A common share, represents 75% of cash available for distribution691 total gross (19.8 net 100% royalty interest) horizontal wells, normalized to lateral length of 10,000 feet, turned to production on Viper’s Permian Basin acreage during Q2 2026 RECENT EVENTS AND FORWARD OUTLOOK
As previously announced, on July 1, 2026, completed the acquisition of all of the equity interests of Riverbend Oil & Gas IX, L.L.C., an entity owning certain mineral and royalty interests, from Riverbend Oil & Gas IX (AIV), L.L.C. and ROG IX, L.L.C. (the “Riverbend Acquisition”)On August 3, 2026, the Company’s subsidiary Viper Energy Partners LP entered into a definitive agreement to acquire certain mineral and royalty interests representing approximately 933 net royalty acres from Diamondback and related subsidiaries in exchange for approximately 3.7 million units in the Company’s operating subsidiary, VNOM Holding Company LLC (“OpCo Units”) (along with an accompanying equal amount of Class B common stock of the Company); acquisition is expected to close late Q3 2026 and is subject to customary closing conditionsAs of July 1, 2026, giving effect to the Riverbend Acquisition, there were approximately 1,798 gross horizontal wells, normalized to lateral length of 10,000 feet, in the process of active development on Viper’s acreage in which Viper expects to own an average 2.2% net royalty interest (39.1 net 100% royalty interest wells)Giving effect to the Riverbend Acquisition, approximately 1,589 gross (32.9 net 100% royalty interest) line-of-sight wells, normalized to lateral length of 10,000 feet, on Viper’s acreage that are not currently in the process of development, but for which Viper has visibility to the potential of future development in coming quarters, based on Diamondback’s current planned drilling schedule and third-party operators’ permitsInitiating average daily production guidance for Q3 2026 of 67,500 to 68,500 bo/d (133,500 to 135,500 boe/d)Increasing average daily production guidance for full year 2026 to 66,000 to 67,250 bo/d (132,500 to 135,000 boe/d)During Q3 2026 through July 31, 2026, repurchased approximately 0.7 million shares of the Company’s Class A common stock for an aggregate purchase price of approximately $29 million, excluding excise tax (average price of $42.82 per Class A Common share) “The second quarter continued the trend of strong execution for Viper, highlighted by steady development activity from both Diamondback and our third-party operators across our high-quality asset base, as well as a continuation of our differentiated acquisition strategy. Reflecting this momentum, we are increasing our full year 2026 production guidance while initiating third quarter guidance that implies continued growth in oil production per share driven by both organic and inorganic growth,” said Kaes Van’t Hof, Chief Executive Officer of Viper.
Mr. Van’t Hof continued, “Separately, today we announced an important evolution of our return of capital strategy. Our Board approved a 32% increase to our base dividend to $2.00 per Class A share annually, a level we expect to be fully protected down to approximately $30 per barrel WTI and which represents approximately 50% of cash available for distribution at $70 per barrel WTI. With this increase, and a commitment to grow the base dividend steadily over time, we are moving away from our commitment to return at least 75% of cash available for distribution each quarter. We believe a single, durable and growing base dividend, rather than a variable payout that fluctuates with commodity prices, best showcases what differentiates Viper: an industry-leading, low-breakeven yield paired with consistent per-share growth. The flexibility created by retaining excess cash flow will allow us to continue to opportunistically repurchase shares, reduce debt and pursue a disciplined M&A strategy, all of which we expect to compound value for our stockholders over the long term.”
FINANCIAL UPDATE
Viper’s second quarter 2026 average unhedged realized prices were $98.28 per barrel of oil, $0.05 per Mcf of natural gas and $23.83 per barrel of natural gas liquids, resulting in a total equivalent realized price of $53.82/boe.
Viper’s second quarter 2026 average hedged realized prices were $96.42 per barrel of oil, $1.48 per Mcf of natural gas and $23.83 per barrel of natural gas liquids, resulting in a total equivalent realized price of $55.12/boe.
During the second quarter of 2026, the Company recorded total operating income of $677 million and consolidated net income (including non-controlling interest) of $331 million.
As of June 30, 2026, the Company had a cash balance of $77 million and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $1.7 billion, resulting in net debt (as defined and reconciled below) of $1.6 billion. Viper’s outstanding long-term debt as of June 30, 2026 consisted of $500 million in aggregate principal amount of its 4.900% Senior Notes due 2030, $1.1 billion in aggregate principal amount of its 5.700% Senior Notes due 2035 and $95 million of borrowings on its revolving credit facility, leaving approximately $1.9 billion available for future borrowings and approximately $2.0 billion of total liquidity.
SECOND QUARTER 2026 CASH DIVIDEND & CAPITAL RETURN PROGRAM
Viper announced today that the Company’s Board of Directors (the “Board”) declared a base cash dividend of $0.38 per Class A common share for the second quarter of 2026, payable on August 20, 2026 to Class A common stockholders of record at the close of business on August 13, 2026.
The Board also declared a variable cash dividend of $0.29 per Class A common share for the second quarter of 2026, payable on August 20, 2026 to Class A common stockholders of record at the close of business on August 13, 2026.
During the second quarter of 2026, Viper repurchased approximately 3.0 million shares of the Company’s Class A common stock for an aggregate purchase price of approximately $132 million, excluding excise tax (average price of $44.34 per share).
In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through July 31, 2026, the Company has repurchased approximately 24.3 million shares of common stock (including both Class A shares and Class B shares paired with OpCo Units) for an aggregate purchase price of approximately $766 million, excluding excise tax (average price of $31.50 per share) and has approximately $984 million remaining on its share buyback authorization. Future cash dividends and stock repurchases are at the discretion of the Board and are subject to a number of factors discussed in Viper’s reports filed with the U.S. Securities and Exchange Commission (“SEC”).
OPERATIONS UPDATE
During the second quarter of 2026, Viper estimates that 691 gross (19.8 net 100% royalty interest) horizontal wells, normalized to lateral length of 10,000 feet, with an average royalty interest of 2.9% were turned to production on its acreage position. Of these 691 gross wells, Diamondback is the operator of 146 gross wells, with an average royalty interest of 7.0%, and the remaining 545 gross wells, with an average royalty interest of 1.8%, are operated by third parties.
As of July 1, 2026, after giving effect to the Riverbend Acquisition, Viper’s footprint of mineral and royalty interests was approximately 90,212 net royalty acres.
Our gross well information as of July 1, 2026, after giving effect to the Riverbend Acquisition:
Diamondback Operated Third-Party Operated TotalQ2 2026 horizontal wells turned to production(1): Gross wells146 545 691Net 100% royalty interest wells10.2 9.6 19.8Average percent net royalty interest7.0% 1.8% 2.9% Horizontal producing well count(1): Gross wells4,485 21,075 25,560Net 100% royalty interest wells277.7 322.9 600.6Average percent net royalty interest6.2% 1.5% 2.3% Horizontal active development well count(1): Gross wells333 1,465 1,798Net 100% royalty interest wells21.9 17.2 39.1Average percent net royalty interest6.6% 1.2% 2.2% Line of sight wells(1): Gross wells282 1,307 1,589Net 100% royalty interest wells16.3 16.6 32.9Average percent net royalty interest5.8% 1.3% 2.1% (1) Average lateral length normalized to 10,000 feet.
The 1,798 gross wells currently in the process of active development are those wells that have been spud and are expected to be turned to production within approximately the next six to eight months. Further in regard to the active development on Viper’s asset base, there are currently 106 gross rigs operating on Viper’s acreage, 12 of which are operated by Diamondback. The 1,589 line-of-sight wells are those that are not currently in the process of active development, but for which Viper has reason to believe that they will be turned to production within approximately the next 15 to 18 months. The expected timing of these line-of-sight wells is based primarily on permitting by third-party operators or Diamondback’s current expected completion schedule. Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.
GUIDANCE UPDATE
Below is Viper’s guidance for the full year 2026, as well as average production guidance for Q3 2026. This guidance gives effect to the Riverbend Acquisition that closed on July 1, 2026.
Viper Energy, Inc. Q3 2026 Net Production - Mbo/d67.50 - 68.50Q3 2026 Net Production - Mboe/d133.50 - 135.50Full Year 2026 Net Production - Mbo/d66.00 - 67.25Full Year 2026 Net Production - Mboe/d132.50 - 135.00 Unit costs ($/boe) Depreciation, Depletion and Amortization$14.75 - $17.25Cash G&A$0.70 - $0.90Non-Cash Share-Based Compensation$0.10 - $0.20Net Interest Expense$1.90 - $2.40 Production and Ad Valorem Taxes (% of Revenue)~7%Cash Tax Rate (% of Pre-Tax Income Attributable to the Company)(1)27% - 30% (1) Pre-tax income attributable to the Company is a non-GAAP measure. We are not able to forecast the most directly comparable GAAP measure – Income (loss) before income taxes – due to the high variability and difficulty in predicting certain items that affect Income (loss) before income taxes, such as future commodity prices, pace of development and production of our mineral interests, and factors impacting the Company’s ownership of the net assets of VNOM Holding Company LLC such as repurchases of our Class A common shares, Class B common shares or VNOM Holding Company LLC’s units (OpCo Units), or conversions of our Class B common shares and/or OpCo Units to Class A common shares.
CONFERENCE CALL
Viper will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2026 on Tuesday, August 4, 2026 at 10:00 a.m. CT. Access to the live audio-only webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Viper’s website at www.viperenergy.com under the “Investor Relations” section of the site.
About Viper Energy, Inc.
Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin in West Texas. For more information, please visit www.viperenergy.com.
Investors and others should note that Viper announces material financial and operational information to our investors using our investor relations website (https://www.viperenergy.com/investors/overview), press releases, SEC filings and public conference calls and webcasts. The information we post through our investor relations website may be deemed material. Accordingly, investors should monitor our investor relations website in addition to following our press releases, SEC filings and public conference calls and webcasts.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions that could cause the results to differ materially from such statements. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; the anticipated benefits from the Sitio Acquisition or other strategic transactions (including the Riverbend Acquisition, 2025 Drop Down, the Non-Permian Divestiture or any other acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas and natural gas liquids and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and its non-OPEC allies (OPEC+) affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments; changes in general economic, business or industry conditions, including changes in foreign currency exchange rates, interest rates, inflation rates, or instability in the financial sector; regional supply and demand factors, including delays, curtailment delays or interruptions of production on our mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change and changing political and social perspectives on climate change and other environmental, social and governance factors; risks from our cash dividend policy and uncertainties over our future dividends; restrictions on the use of water, including limits on the use of produced water by our operators and a moratorium on new produced water well permits imposed by the Texas Railroad Commission in an effort to control induced seismicity in the Permian Basin; significant declines in prices for oil, natural gas, or natural gas liquids, which could require recognition of significant impairment charges; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers and any resulting trade tensions; conditions in the capital, financial and credit markets, including the availability and pricing of capital for drilling and development by our limited number of operators and our ability to replace operators in time of bankruptcy or default; changes in availability or cost of rigs, equipment, raw materials, supplies and oilfield services impacting our operators; the inherent uncertainties over our estimated reserves, the development of our proved undeveloped reserves or the yield from project areas on our properties; the geographical concentration of our producing properties and reserves in the Permian Basin and in a small number of producing horizons; changes in safety, health, environmental, tax and other regulations or requirements impacting us or our operators (including those addressing air emissions, water management, or the impact of global climate change); security threats, including cybersecurity threats and disruptions to our business from breaches of Diamondback’s information technology systems, or from breaches of information technology systems of our operators or third parties with whom we transact business; lack of, or disruption in, access to adequate and reliable electrical power, internet and telecommunication infrastructure, information and computer systems, transportation, processing, storage and other facilities impacting our operators; severe weather conditions and natural disasters; geopolitics, regional conflicts, acts of war or terrorist acts and the governmental or military response thereto; changes in the financial strength of counterparties to the revolving credit facility and hedging contracts of our operating subsidiary; our substantial indebtedness and changes in our credit rating; failure to develop or acquire additional reserves and identify, complete or integrate acquisitions; our operational dependence on, and control by, Diamondback and potential conflicts of interest thereof; and other risks and factors discussed in Viper’s Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent periodic filings with the SEC, including its Forms 10-K, 10-Q and 8-K, and other filings Viper makes with the SEC, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.
In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.
Viper Energy, Inc.Condensed Consolidated Statements of Operations(unaudited, in millions, except per share amounts, shares in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating income: Oil income$582 $241 $1,010 $442 Natural gas income 1 10 17 25 Natural gas liquids income 75 36 127 64 Royalty income 658 287 1,154 531 Lease bonus income 11 10 25 11 Lease bonus income—related party 4 — 5 — Other operating income 4 — 4 — Total operating income 677 297 1,188 542 Costs and expenses: Production and ad valorem taxes 43 21 78 38 Depreciation, depletion, and amortization 195 124 401 191 General and administrative expenses 5 4 13 6 General and administrative expenses—related party 6 3 11 7 Other operating expenses — 10 4 10 Total costs and expenses 249 162 507 252 Income (loss) from operations 428 135 681 290 Other income (expense): Interest expense, net (24) (15) (51) (28)Gain (loss) on derivative instruments, net — (29) 18 3 Other income (expense), net (1) — (2) — Total other income (expense), net (25) (44) (35) (25)Income (loss) before income taxes 403 91 646 265 Provision for (benefit from) income taxes 72 7 100 28 Net income (loss) 331 84 546 237 Net income (loss) attributable to non-controlling interest 189 47 307 125 Net income (loss) attributable to Viper Energy, Inc.$142 $37 $239 $112 Net income (loss) attributable to common shares: Basic$0.73 $0.28 $1.27 $0.89 Diluted$0.73 $0.28 $1.27 $0.89 Weighted average number of common shares outstanding: Basic 193,733 131,107 187,553 126,045 Diluted 193,733 131,156 187,553 126,160 Viper Energy, Inc.Condensed Consolidated Balance Sheets(unaudited, in millions, except par values and share data) June 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents$77 $13 Royalty income receivable (net of allowance for credit losses) 461 262 Royalty income receivable—related party 27 88 Prepaid expenses and other current assets 15 50 Total current assets 580 413 Property: Oil and natural gas properties: Proved properties 9,608 9,746 Unproved properties 4,545 4,910 Other property, equipment and land 8 8 Accumulated depletion, depreciation, amortization and impairment (2,856) (2,455)Property, net 11,305 12,209 Deferred income taxes (net of allowances) 124 33 Other assets 46 16 Total assets$12,055 $12,671 Liabilities and Stockholders’ Equity Current liabilities: Accrued liabilities$66 $107 Other current liabilities 25 4 Total current liabilities 91 111 Long-term debt, net 1,678 2,186 Other long-term liabilities 4 11 Total liabilities 1,773 2,308 Stockholders’ equity: Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 191,382,620 shares issued and outstanding at June 30, 2026, and 170,942,687 shares issued and outstanding at December 31, 2025 — — Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 164,789,844 shares issued and outstanding at June 30, 2026, and 187,023,698 shares issued and outstanding at December 31, 2025 — — Additional paid-in capital 5,308 4,726 Retained earnings (accumulated deficit) (273) (278)Total Viper Energy, Inc. stockholders’ equity 5,035 4,448 Non-controlling interest 5,247 5,915 Total equity 10,282 10,363 Total liabilities and stockholders’ equity$12,055 $12,671 Viper Energy, Inc.Condensed Consolidated Statements of Cash Flows(unaudited, in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash flows from operating activities: Net income (loss)$331 $84 $546 $237 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Provision for (benefit from) deferred income taxes 8 (5) (5) (6)Depreciation, depletion, and amortization 195 124 401 191 (Gain) loss on derivative instruments, net — 29 (18) (3)Net cash receipts (payments) on derivatives 16 3 36 12 Other 4 3 6 4 Changes in operating assets and liabilities: Royalty income receivable (78) (57) (199) (54)Royalty income receivable—related party (10) 2 61 (8)Accrued liabilities 30 (3) (41) (7)Other (9) (8) 28 7 Net cash provided by (used in) operating activities 487 172 815 373 Cash flows from investing activities: Acquisitions of oil and natural gas properties (103) (16) (121) (279)Acquisitions of oil and natural gas properties—related party — (758) (12) (981)Proceeds from sale of oil and natural gas properties — — 611 — Net cash provided by (used in) investing activities (103) (774) 478 (1,260)Cash flows from financing activities: Proceeds from debt 345 445 520 740 Repayments of debt (270) (170) (1,030) (726)Net proceeds from public offering — — — 1,232 Repurchases of shares of Class A Common Stock as part of the repurchase program (132) (10) (182) (10)Repurchases of OpCo Units as part of the repurchase program — — (46) — Dividends to stockholders (133) (75) (233) (160)Dividends to Diamondback (122) (109) (215) (168)Dividends to other non-controlling interest (25) (8) (45) (17)Other 2 (3) 2 (3)Net cash provided by (used in) financing activities (335) 70 (1,229) 888 Net increase (decrease) in cash and cash equivalents 49 (532) 64 1 Cash and cash equivalents at beginning of period 28 560 13 27 Cash and cash equivalents at end of period$77 $28 $77 $28 Viper Energy, Inc.Selected Operating Data(unaudited) Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025Production Data: Oil (MBbls) 5,922 5,850 3,787Natural gas (MMcf) 18,949 18,088 10,132Natural gas liquids (MBbls) 3,147 2,899 1,739Combined volumes (Mboe)(1) 12,227 11,764 7,215 Average daily oil volumes (bo/d) 65,077 65,000 41,615Average daily combined volumes (boe/d) 134,363 130,711 79,286 Average sales prices: Oil ($/Bbl)$98.28 $73.16 $63.64Natural gas ($/Mcf)$0.05 $0.88 $0.99Natural gas liquids ($/Bbl)$23.83 $17.94 $20.70Combined ($/boe)(2)$53.82 $42.16 $39.78 Oil, hedged ($/Bbl)(3)$96.42 $72.31 $62.85Natural gas, hedged ($/Mcf)(3)$1.48 $2.27 $1.58Natural gas liquids ($/Bbl)(3)$23.83 $17.94 $20.70Combined price, hedged ($/boe)(3)$55.12 $43.86 $41.03 Average Costs ($/boe): Production and ad valorem taxes$3.52 $2.98 $2.91General and administrative - cash component 0.65 0.94 0.69Total operating expense - cash$4.17 $3.92 $3.60 General and administrative - non-cash stock compensation expense$0.25 $0.17 $0.28Interest expense, net$1.96 $2.30 $2.08Depreciation, depletion, and amortization$15.95 $17.51 $17.19 (1) Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
(2) Realized price net of all deducts for gathering, transportation and processing.
(3) Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is a supplemental non-GAAP (as defined below) financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to the Company, plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before interest expense, net, non-cash share-based compensation expense, depreciation, depletion and amortization, non-cash (gain) loss on derivative instruments, provision for (benefit from) income taxes and other non-cash or non-recurring operating expenses. Adjusted EBITDA is not a measure of net income as determined by United States’ generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because it allows them to evaluate Viper’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income, royalty income, cash flow from operating activities or any other measure of financial performance or liquidity presented as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA.
Viper defines cash available for distribution to the Company’s stockholders generally as an amount equal to its Adjusted EBITDA for the applicable period less cash needed for income taxes payable by Viper for the current period, debt service, contractual obligations, fixed charges and reserves for future operating or capital needs that the Board may deem appropriate, lease bonus income, net of tax, dividend equivalent rights payments, if any, preferred dividends, if any, and further adjusted for the tax impact from divestitures. Management believes cash available for distribution is useful because it allows them to more effectively evaluate Viper’s ability to return capital to stockholders by excluding the impact of non-cash financial items and short-term changes in working capital. Viper’s computations of Adjusted EBITDA and cash available for distribution may not be comparable to other similarly titled measures of other companies or to such measure in its credit facility or any of its other contracts. Through the payment of the dividend for the second quarter of 2026, Viper’s dividend policy also requires the Company to distribute, as variable dividends, at least seventy-five percent (75%) of cash available for distribution less base dividends declared and repurchased shares as part of its share buyback program for the applicable quarter.
The following tables present a reconciliation of the GAAP financial measure of net income (loss) to the non-GAAP financial measures of Adjusted EBITDA and cash available for distribution:
Viper Energy, Inc.(unaudited, in millions, except per share amounts, shares in thousands) Three Months Ended June 30, 2026Net income (loss) attributable to Viper Energy, Inc.$142 Net income (loss) attributable to non-controlling interest 189 Net income (loss) 331 Interest expense, net 24 Non-cash share-based compensation expense 3 Depreciation, depletion, and amortization 195 Non-cash (gain) loss on derivative instruments 16 Provision for (benefit from) income taxes 72 Other non-cash or non-recurring expenses 1 Consolidated Adjusted EBITDA 642 Less: Adjusted EBITDA attributable to non-controlling interest 303 Adjusted EBITDA attributable to Viper Energy, Inc.$339 Adjustments to reconcile Adjusted EBITDA to cash available for distribution: Income taxes payable by Viper Energy, Inc. for the current period$(65)Debt service, contractual obligations, fixed charges and reserves (14)Lease bonus income, net of tax (6)Tax impact of divestiture 8 Cash available for distribution to Viper Energy, Inc. stockholders$262 Three Months Ended June 30, 2026 Amounts Amounts Per Common ShareReturn of Capital Reconciliation: Cash available for distribution to Viper Energy, Inc. stockholders$262 $1.37 Base dividend$73 $0.38 Repurchased common stock and OpCo Units as part of repurchase program(1) 70 0.36 Variable dividend 54 0.29 Return of Capital$197 $1.03 Percent return of capital 75% Class A common stock outstanding 191,383 (1) Reflects amounts attributable to the common stockholders’ ownership interest in Viper Energy, Inc.
The following table presents a reconciliation of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of pre-tax income attributable to the Company. Management believes this measure is useful to investors given it provides the basis for income taxes payable by Viper, which is an adjustment to reconcile Adjusted EBITDA to cash available for distribution to holders of the Company’s Class A common stock.
Viper Energy, Inc.Pre-tax income attributable to Viper Energy, Inc.(unaudited, in millions) Three Months Ended June 30, 2026 Income (loss) before income taxes$403 Less: Net income (loss) attributable to non-controlling interest 189 Pre-tax income (loss) attributable to Viper Energy, Inc.$214 Income taxes payable by Viper Energy, Inc. for the current period$65 Effective cash tax rate attributable to Viper Energy, Inc. 30.4% Adjusted net income (loss) is a non-GAAP financial measure equal to net income (loss) attributable to the Company plus net income (loss) attributable to non-controlling interest, further adjusted for non-cash (gain) loss on derivative instruments, net, other non-cash or non-recurring operating expenses, if any, and related income tax adjustments. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.
The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to the Company to the non-GAAP financial measure of adjusted net income (loss):
Viper Energy, Inc.Adjusted Net Income (Loss)(unaudited, in millions, except per share amounts, shares in thousands) Three Months Ended June 30, 2026 Amounts Amounts Per Diluted ShareNet income (loss) attributable to Viper Energy, Inc.(1)$142 $0.73 Net income (loss) attributable to non-controlling interest 189 0.97 Net income (loss)(1) 331 1.70 Non-cash (gain) loss on derivative instruments, net 16 0.08 Other non-cash or non-recurring expenses 1 0.01 Adjusted income excluding above items(1) 348 1.79 Income tax adjustment for above items (3) (0.01)Adjusted net income (loss)(1) 345 1.78 Less: Adjusted net income (loss) attributed to non-controlling interests 197 1.02 Adjusted net income (loss) attributable to Viper Energy, Inc.(1)$148 $0.76 Weighted average number of common shares outstanding: Basic 193,733 Diluted 193,733 (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of Class A common shares and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to the Company, (ii) less reallocation of earnings attributable to participating securities, if any, and (iii) divided by diluted weighted average Class A common shares outstanding.
NET DEBT
The Company defines the non-GAAP measure of net debt as debt (excluding debt issuance costs, discounts and premiums) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.
June 30, 2026 Net Q2Principal Borrowings/(Repayments) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 (in millions)Total debt(1)$1,695 $75 $1,620 $2,205 $2,640 $1,105 Cash and cash equivalents (77) (28) (13) (443) (28)Net debt$1,618 $1,592 $2,192 $2,197 $1,077 (1) Excludes debt issuance costs, discounts & premiums.
Derivatives
As of the date of this news release, the Company had the following outstanding derivative contracts. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent. When aggregating multiple contracts, the weighted average contract price is disclosed.
Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027Deferred Premium Puts - WTI (Cushing)(1) 55,000 45,000 40,000 20,000 10,000 Strike$53.86 $50.00 $50.00 $50.00 $50.00 Premium$(1.11) $(1.34) $(1.39) $(1.40) $(1.44)Deferred Premium Puts - WTI / Brent Basis 30,000 30,000 — — — Strike$(45.00) $(45.00) — — — Premium$(1.30) $(1.48) — — — Roll Swaps - WTI (Cushing) 15,000 15,000 — — — Swap Price$3.97 $3.97 — — — (1) Q3 2026 Deferred Premium Put Options include the impact of 15,000 Bbl/d of WTI put spreads with a floor price of $50 per Bbl and short put price of $55 per Bbl.
ONEOK oznámil ve 2. čtvrtletí vyšší čistý zisk na 967 mil. USD a upravený EBITDA na 2,12 mld. USD. Zároveň zvýšil celoroční výhled zisku na akcii i upraveného EBITDA pro rok 2026.
TULSA, Okla., Aug. 03, 2026 (GLOBE NEWSWIRE) -- ONEOK, Inc. (NYSE: OKE) today announced higher second-quarter 2026 results and increased 2026 financial guidance. Unless otherwise noted, all results are compared with the same period in 2025.
Highlights:
Higher second-quarter 2026 results: 13% increase in net income to $967 million, resulting in $1.53 per diluted share7% increase in adjusted EBITDA to $2.12 billion Volume highlights: 8% increase in refined products volumes shipped7% increase in NGL raw feed throughput volumes, including a 15% increase in the Gulf Coast/Permian region2% increase in natural gas volumes processed Greater Denver refined products pipeline expansion mechanically complete early August 2026 Guidance Increase:
Net income increased to a midpoint of $3.6 billionEarnings per diluted share increased to a midpoint of $5.68Adjusted EBITDA increased to a midpoint of $8.35 billion The increase in financial guidance reflects continued strong business segment performance and strategic opportunities across ONEOK’s system supported by a constructive market environment.
ONEOK increased 2026 net income guidance to a range of $3.41 billion to $3.79 billion. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) guidance increased to a range of $8.2 billion to $8.5 billion.
Total 2026 capital expenditure guidance remains unchanged at approximately $2.7 billion to $3.2 billion.
"Higher volumes across ONEOK's businesses, including record NGL volumes, drove another consecutive quarter of earnings growth,” said Pierce H. Norton II, ONEOK president and CEO. “These results reflect the strength of our integrated system, the dedication of our employees and our ability to optimize our network and capture opportunities across the value chain.”
"Several strategic growth projects across our footprint are nearing completion, expanding connectivity across key markets and strengthening our ability to serve customers and communities," added Norton. "Combined with strong market fundamentals across our business, these investments build momentum into the second half of 2026, support our second guidance increase this year and reinforce our ability to deliver long-term value to stakeholders."
SECOND-QUARTER 2026 FINANCIAL HIGHLIGHTS:
Three Months EndedSix Months Ended June 30,June 30, 2026 2025 2026 2025 (Millions of dollars, except per share amounts)Net income (a) (b)$967$853$1,743$1,544Net income attributable to ONEOK (a) (b)$966$841$1,740$1,477Diluted earnings per common share (a)$1.53$1.34$2.75$2.38Adjusted EBITDA (c)$2,121$1,981$4,118$3,756Operating income$1,593$1,431$3,021$2,651Operating costs$823$706$1,569$1,458Depreciation and amortization$387$368$765$748Equity in net earnings from investments$103$81$192$189Maintenance capital$101$126$229$200Capital expenditures (includes maintenance)$613$749$1,477$1,378(a) Amounts for the six months ended June 30, 2026, include a pretax noncash charge of $60 million related to the impairment of a joint-venture (JV) investment in the Refined Products and Crude segment.
(b) Amounts for the three and six months ended June 30, 2025, include pretax impacts of $22 million and $64 million, respectively, of transaction costs.
(c) Amounts for the three and six months ended June 30, 2025, include $21 million and $52 million, respectively, of transaction costs. Transaction costs of $1 million and $12 million, respectively, were noncash and not included in adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure used in this release and is explained in greater detail in the Non-GAAP Financial Measures section.
Second-Quarter 2026 Financial Performance:
ONEOK reported second-quarter 2026 net income and adjusted EBITDA of $967 million and $2.12 billion, respectively.
Results benefited from record quarterly natural gas liquids (NGLs) volumes and higher natural gas processing and refined products volumes across ONEOK’s system. Increased optimization and marketing activity in the Natural Gas Pipelines, Refined Products and Crude and Natural Gas Liquids segments also benefited second-quarter results.
In July 2026, ONEOK declared a quarterly dividend of $1.07 per share, or $4.28 per share annualized.
BUSINESS SEGMENT RESULTS:
Natural Gas Liquids Segment
Three Months EndedSix Months Ended June 30,June 30,Natural Gas Liquids Segment 2026 2025 2026 2025 (Millions of dollars)Adjusted EBITDA$659$673$1,365$1,308Capital expenditures$202$135$512$306
The decrease in second-quarter 2026 adjusted EBITDA, compared with second quarter 2025, primarily reflects:
An $18 million increase in operating costs due primarily to $9 million from higher employee-related costs and $8 million from higher outside services associated with the growth of ONEOK’s operations; andA $6 million decrease in transportation and storage due primarily to lower volumes; offset byAn $11 million increase in optimization and marketing due primarily to higher earnings on sales of purity NGLs held in inventory; andA $2 million increase in exchange services due primarily to: $28 million from higher volumes across ONEOK’s system;$12 million from higher transportation and fractionation costs;$11 million due primarily to fewer product price differentials captured. The increase in adjusted EBITDA for the six-month 2026 period, compared with the same period last year, primarily reflects:
A $53 million increase in optimization and marketing due primarily to higher earnings on sales of purity NGLs held in inventory; andA $26 million increase in exchange services due primarily to: $119 million from higher volumes across ONEOK’s system;$71 million from lower average fee rates and narrower product price differentials in the Gulf Coast/Permian and Mid-Continent regions;$23 million of higher transportation and fractionation costs; A $14 million increase in operating costs due primarily to the growth of ONEOK’s operations; andA $6 million decrease in transportation and storage due primarily to lower volumes. Refined Products and Crude Segment
Three Months EndedSix Months Ended June 30,June 30,Refined Products and Crude Segment 2026 2025 2026 2025 (Millions of dollars)Adjusted EBITDA$627$557$1,119$1,028Capital expenditures$191$184$371$325
The increase in second-quarter 2026 adjusted EBITDA, compared with second quarter 2025, primarily reflects:
A $79 million increase in transportation and storage due primarily to higher refined products volumes and rates; andA $40 million increase in optimization and marketing due primarily to $48 million from higher crude marketing earnings, offset partially by $8 million from lower liquids blending earnings; offset byA $48 million increase in operating costs due primarily to: $14 million from higher outside services related to the timing of projects;$13 million from higher employee-related costs associated with the growth of ONEOK’s operations;$9 million from higher property taxes associated with the growth of ONEOK’s operations. The increase in adjusted EBITDA for the six-month 2026 period, compared with the same period last year, primarily reflects:
A $108 million increase in transportation and storage due primarily to higher refined products volumes and rates; andA $64 million increase in optimization and marketing due primarily to $81 million from higher crude marketing earnings, offset partially by $17 million from lower liquids blending earnings; offset byA $51 million increase in operating costs due primarily to: $17 million from higher employee-related costs associated with the growth of ONEOK’s operations;$16 million from higher outside services related to the timing of projects;$10 million from higher property taxes associated with the growth of ONEOK’s operations; and A $23 million decrease in adjusted EBITDA from unconsolidated affiliates due primarily to losses on Powder Springs Logistics, a 50% owned joint venture. Natural Gas Gathering and Processing Segment
Three Months EndedSix Months Ended June 30,June 30,Natural Gas Gathering and Processing Segment 2026 2025 2026 2025 (Millions of dollars)Adjusted EBITDA$546$540$1,013$1,031Capital expenditures$185$341$502$582
The increase in second-quarter 2026 adjusted EBITDA, compared with second quarter 2025, primarily reflects:
A $20 million increase from higher volumes due to increased production in all regions; and
A $13 million increase due primarily to higher realized condensate prices, net of hedging, offset partially by lower realized NGL prices, net of hedging; offset by
A $22 million increase in operating costs due primarily to a $13 million methane fee accrual reversal in 2025 and $11 million from higher outside services related to the timing of projects. The decrease in adjusted EBITDA for the six-month 2026 period, compared with the same period last year, primarily reflects:
A $53 million decrease due primarily to lower realized NGL and natural gas prices, net of hedging, offset partially by higher realized condensate prices, net of hedging; andAn $8 million increase in operating costs due primarily to the growth of ONEOK’s operations; offset byA $49 million increase from higher volumes due to increased production in all regions. Natural Gas Pipelines Segment
Three Months EndedSix Months Ended June 30,June 30,Natural Gas Pipelines Segment 2026 2025 2026 2025 (Millions of dollars)Adjusted EBITDA$297$188$636$400Capital expenditures$15$52$61$114
The increase in second-quarter 2026 adjusted EBITDA, compared with second quarter 2025, primarily reflects:
A $77 million increase in optimization and marketing activity due primarily to favorable price differentials between the Waha Hub and Katy, Texas, markets;A $19 million increase in transportation services due primarily to higher firm transportation revenue; andA $17 million increase in adjusted EBITDA from unconsolidated affiliates due primarily to higher earnings on Northern Border Pipeline and Matterhorn Express Pipeline. The increase in adjusted EBITDA for the six-month 2026 period, compared with the same period last year, primarily reflects:
A $169 million increase in optimization and marketing activity due primarily to favorable price differentials between the Waha Hub and Katy, Texas, markets;A $42 million increase in transportation services due primarily to higher firm transportation revenue; andA $34 million increase in adjusted EBITDA from unconsolidated affiliates due primarily to higher earnings on Northern Border Pipeline and Matterhorn Express Pipeline. EARNINGS CONFERENCE CALL AND WEBCAST:
Members of ONEOK’s management team will participate in a conference call at 11 a.m. Eastern (10 a.m. Central) on Aug. 4, 2026. The call will also be webcast.
To participate in the conference call, dial 800-330-6710 and use confirmation code: 3334626, or log on to the webcast at www.oneok.com.
If you are unable to participate in the conference call or the webcast, a recording will be available at www.oneok.com for one year.
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), a non-GAAP financial metric used to measure the company’s financial performance. Adjusted EBITDA is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, and other noncash items; and includes adjusted EBITDA from the company’s unconsolidated affiliates using the same recognition and measurement methods used to record equity in net earnings from investments. Adjusted EBITDA from unconsolidated affiliates is calculated consistently with the definition above and excludes items such as interest expense, depreciation and amortization, income taxes and other noncash items.
Adjusted EBITDA is useful to investors because it and similar measures are used by many companies in the industry as a measure of financial performance and is commonly employed by financial analysts and others to evaluate ONEOK’s financial performance and to compare the company’s financial performance with the performance of other companies within the industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
This non-GAAP financial measure excludes some, but not all, items that affect net income. Additionally, this calculation may not be comparable with similarly titled measures of other companies. A reconciliation of net income to adjusted EBITDA is included in the tables available on ONEOK’s website.
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Through our approximately 60,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest integrated energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.
ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plans,” “potential,” “projects,” “scheduled,” “should,” “target,” “will,” “would,” and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
the impact on drilling and production by factors beyond our control, including the demand for natural gas, NGLs, Refined Products and crude oil; producers’ desire and ability to drill and obtain necessary permits; regulatory compliance; reserve performance; and capacity constraints and/or shut downs on the pipelines that transport crude oil, natural gas, NGLs, and Refined Products from producing areas and our facilities;the impact of unfavorable economic and market conditions, inflationary pressures, which may increase our capital expenditures and operating costs, raise the cost of capital or depress economic growth;the economic or other impact of announced or future tariffs, including inflationary impacts;the impact of the volatility of natural gas, NGL, Refined Products and crude oil prices on our earnings and cash flows, which is impacted by a variety of factors beyond our control, including international terrorism and conflicts and geopolitical instability (including instability in the Middle East and Venezuela);the impact of reduced volatility in energy prices or new government regulations that could discourage our storage customers from holding positions in Refined Products, crude oil and natural gas;our dependence on producers, gathering systems, refineries and pipelines owned and operated by others and the impact of any closures, interruptions or reduced activity levels at these facilities;the impact of scrutiny and conflicting stakeholder expectations regarding ESG issues, including climate change, and risks associated with the physical and financial impacts of climate change;risks associated with operational hazards and unforeseen interruptions at our operations;the inability of insurance proceeds to cover all liabilities or incurred costs and losses, or lost earnings, resulting from a loss;the risk of increased costs for insurance premiums or less favorable coverage;demand for our services and products in the proximity of our facilities;risks associated with our ability to hedge against commodity price risks or interest rate risks;a breach of information security, including a cybersecurity attack, or failure of one or more key information technology or operational systems, and terrorist attacks, including cyber sabotage;exposure to construction risk and supply risks if adequate natural gas, NGL, Refined Products and crude oil supply is unavailable upon completion of facilities;the accuracy of estimates of hydrocarbon reserves, which could result in lower than anticipated volumes;our lack of ownership over all of the land on which our property is located and certain of our facilities and equipment;the impact of changes in estimation, type of commodity and other factors on our measurement adjustments;excess capacity on our pipelines, processing, fractionation, terminal and storage assets;risks associated with the period of time our assets have been in service;our partial reliance on cash distributions from our unconsolidated affiliates on our operating cash flows;our ability to cause our joint ventures to take or not take certain actions unless some or all of our joint-venture participants agree;our reliance on others to construct and/or operate certain joint-venture assets and to provide other services;our ability to use net operating losses and certain tax attributes;increased regulation of exploration and production activities, including hydraulic fracturing, well setbacks and disposal of wastewater;impacts of regulatory oversight and potential penalties on our business;risks associated with the rate regulation, challenges or changes, which may reduce the amount of cash we generate;the impact of our gas liquids blending activities, which subject us to federal regulations that govern renewable fuel requirements in the U.S.;incurrence of significant costs to comply with the regulation of greenhouse gas emissions;the impact of federal and state laws and regulations relating to the protection of the environment, public health and safety on our operations, as well as increased litigation and activism challenging oil and gas development as well as changes to and/or increased penalties from the enforcement of laws, regulations and policies;the impact of unforeseen changes in interest rates, debt and equity markets and other external factors over which we have no control;actions by rating agencies concerning our credit;our indebtedness and guarantee obligations could cause adverse consequences, including making us vulnerable to general adverse economic and industry conditions, limiting our ability to borrow additional funds and placing us at competitive disadvantages compared with our competitors that have less debt;an event of default may require us to offer to repurchase certain of our or ONEOK Partners’ senior notes or may impair our ability to access capital;the right to receive payments on our outstanding debt securities and subsidiary guarantees is unsecured and effectively subordinated to any future secured indebtedness and any existing and future indebtedness of our subsidiaries that do not guarantee the senior notes;use by a court of fraudulent conveyance to avoid or subordinate the cross guarantees of our or ONEOK Partners’ indebtedness;the risks associated with pending or possible acquisitions and dispositions, including our ability to finance or integrate any such acquisitions and any regulatory delay or conditions imposed by regulatory bodies in connection with any such acquisitions and dispositions;our ability to effectively manage our expanded operations following closing of recent and potential future acquisitions;our ability to pay dividends;our exposure to the credit risk of our customers or counterparties;a shortage of skilled labor;misconduct or other improper activities engaged in by our employees;the impact of potential impairment charges;the impact of the changing cost of providing pension and health care benefits, including postretirement health care benefits, to eligible employees and qualified retirees;our ability to maintain an effective system of internal controls; andthe risk factors listed in the reports we have filed and may file with the SEC. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Other than as required under securities laws, ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
Whirlpool ve 2. čtvrtletí zvýšil hrubou marži díky cenovým akcím a novým produktům; GAAP EPS byl 1,15 USD a tržby klesly na 3,517 mld. USD. Zároveň potvrdil celoroční výhled tržeb i marže.
Q2 performance in line with expectations, delivering sequential margin improvement Successfully executed previously announced pricing actions in North America, with the support of successful new product launches; announced price increases in Latin America Completed the transition to a $2 billion asset based lending facility and issued $2 billion in secured bonds, clearing debt maturities until 2028 and creating financial flexibility Q2 GAAP net earnings margin of 2.1%; GAAP earnings per diluted share of $1.15 Q2 ongoing (non-GAAP) EBIT margin(2) of 1.8%; ongoing earnings (loss) per diluted share(3) of $(0.21) Full year 2026 revenue and margin outlook is unchanged 2026 updated EPS outlook includes full-year GAAP earnings per diluted share of $2.25 to $2.75, and ongoing earnings per diluted share(3)of $2.50 to $3.00, reflecting new interest expense outlook 2026 cash flow outlook includes cash provided by operating activities of approximately $700 million and free cash flow(4) of over $300 million , /PRNewswire/ -- Whirlpool Corporation (NYSE: WHR), today reported second-quarter financial results.
"We are encouraged by the sequential margin expansion achieved in Q2, driven by price increase execution, progress with our cost take-out program and key product innovation. These decisive actions position our business for sustained performance improvement."
MARC BITZER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Earnings Results
Second Quarter Results
2026
2025*
Change
Net sales ($M)
$3,517
$3,773
(6.8) %
Organic net sales ($M)(1)
$3,437
$3,496
(1.7) %
GAAP net earnings available to Whirlpool common shareholders ($M)
$75
$65
14.2 %
Ongoing EBIT(2) ($M)
$62
$200
(69.1) %
GAAP net earnings margin
2.1 %
1.7 %
0.4pts
Ongoing EBIT margin(2)
1.8 %
5.3 %
(3.5pts)
GAAP earnings per diluted share
$1.15
$1.17
(1.7) %
Ongoing earnings (loss) per diluted share(3)
$(0.21)
$1.34
nm
*Includes results from our previously-owned India business
Free Cash Flow
2026
2025
Change
Cash provided by (used in) operating activities ($M)
$(947)
$(702)
$(245)
Free cash flow(4) ($M)
$(1,108)
$(856)
$(252)
"We have taken proactive steps to strengthen our balance sheet and optimize our capital structure. By completing the $2B ABL facility and successfully issuing $2B in secured bonds, we have significantly extended our debt maturity profile and created financial flexibility to support our strategic priorities."
ROXANNE WARNER, CHIEF FINANCIAL OFFICER
SEGMENT REVIEW
SEGMENT INFORMATION ($M)
Q2 2026
Q2 2025
YoY
Change
MDA North America
Net Sales
$2,408
$2,446
(1.5) %
EBIT
$64
$144
(55.4) %
% of sales
2.7 %
5.9 %
(3.2pts)
MDA Latin America
Net Sales
$868
$806
7.8 %
EBIT
$26
$48
(45.7) %
% of sales
3.0 %
6.0 %
(3.0pts)
SDA Global
Net Sales
$202
$201
0.5 %
EBIT
$24
$35
(30.8) %
% of sales
11.9 %
17.3 %
(5.4pts)
MDA: Major Domestic Appliances; SDA: Small Domestic Appliances
MDA NORTH AMERICA
Strong sequential net sales growth of 8% with EBIT margin improvement of 240 bps, primarily driven by successful execution of previously announced pricing actions Excluding currency, net sales decreased 1.5% year-over-year driven by lower volume resulting from industry decline, partially offset by favorable price/mix EBIT margin(5) decreased year-over-year, pressured by volume decline and the unfavorable impact of tariff, raw material inflation and fuel costs, partially offset by favorable price/mix MDA LATIN AMERICA
Excluding currency, net sales decreased 1.7% year-over-year due to negative price mix in Brazil, despite volume increase EBIT margin(5) impacted by unfavorable price/mix, partially supported by favorable Brazil tax-case related gain Announced price increase and structural cost actions to restore margins in Brazil SDA GLOBAL
Excluding currency, net sales decreased 1.2% year-over-year driven by lower retailer inventory despite strong sell-out EBIT margin(5) in line with expectations, impacted by planned marketing investments and supported by new product launches and direct-to-consumer expansion Underlying demand is positive, with strong sell-out and share gains globally FULL-YEAR 2026 OUTLOOK
Guidance Summary
2025
Reported
2026
Guidance
Net sales ($B)
$15.5
~$15.0
Cash provided by (used in) operating activities
($M)
$470
~$700
Free cash flow ($M)(4)
$81
$300+
GAAP net earnings margin (loss) (%)
2.2 %
~1.0%
Ongoing EBIT margin (%)(2)
4.7 %
~4.0%
GAAP earnings (loss) per diluted share
$5.66
$2.25 - $2.75
Ongoing earnings (loss) per diluted share(3)
$6.23
$2.50 - $3.00
GAAP tax rate
27.5 %
~20.0%
Adjusted (non-GAAP) tax rate
3.5 %
~25.0%
On a full year basis in 2026, our operational outlook is unchanged. EPS is revised to reflect the new interest expense. We expect:
Net sales of approximately $15.0 billion; approximately 1.5% growth vs. 2025 like-for-like(6) net sales of approximately $14.7 billion GAAP net earnings margin of 1.0% and ongoing (non-GAAP) EBIT margin of approximately 4.0%, driven by our largest price increase in over a decade Structural cost take out to deliver over $150 million or 100 basis points of margin expansion GAAP earnings per diluted share of $2.25 to $2.75 and full-year ongoing earnings per diluted share(3) of $2.50 to $3.00 2026 GAAP tax rate of approximately 20% and adjusted (non-GAAP) tax rate of 25% Cash provided by operating activities of approximately $700 million and free cash flow(4) of over $300 million Net debt below $5.0 billion at year end (1)
A reconciliation of organic net sales, a non-GAAP financial measure, to reported net sales and other important information, appears below.
(2)
A reconciliation of earnings before interest and taxes (EBIT) and ongoing EBIT, non-GAAP financial measures, to reported net earnings (loss) available to Whirlpool, and a reconciliation of EBIT margin and ongoing EBIT margin, non-GAAP financial measures, to net earnings (loss) margin and other important information, appears below.
(3)
A reconciliation of ongoing earnings per diluted share, a non-GAAP financial measure, to reported net earnings (loss) per diluted share available to Whirlpool and other important information, appears below.
(4)
A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by (used in) operating activities and other important information, appears below.
(5)
Segment EBIT represents our consolidated EBIT broken down by the Company's reportable segments and are metrics used by the chief operating decision maker in accordance with ASC 280. Consolidated EBIT also includes corporate "Other" of $39 million and $(36) million for the second quarters of 2026 and 2025, respectively.
(6)
Like-for-like refers to pro forma results for 2025, which exclude the results of Whirlpool of India from January to November, providing a comparative baseline for 2026 guidance. The like-for-like GAAP net earnings margin and corresponding reconciliation cannot be provided without unreasonable effort or expense. Please see below for a reconciliation of ongoing EBIT for the full year to GAAP net earnings.
ABOUT WHIRLPOOL CORPORATION
Whirlpool Corporation (NYSE: WHR) is a leading home appliance company, in constant pursuit of improving life at home. As the only major U.S.-based manufacturer of kitchen and laundry appliances, the company is driving meaningful innovation to meet the evolving needs of consumers through its iconic brand portfolio, including Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator. In 2025, the company reported approximately $16 billion in annual net sales - close to 90% of which were in the Americas - 41,000 employees and 35 manufacturing and technology research centers. Additional information about the company can be found at WhirlpoolCorp.com.
WEBSITE DISCLOSURE
We routinely post important information for investors on our website, WhirlpoolCorp.com, in the "Investors" section. We also intend to update the "Hot Topics Q&A" portion of this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the "Investors" 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 webpage is not incorporated by reference into, and is not a part of, this document.
WHIRLPOOL ADDITIONAL INFORMATION
This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Whirlpool intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with those safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements regarding future financial results, long-term value creation goals, restructuring expectations, productivity, raw material prices and related costs, supply chain, portfolio transformation expectations, India transaction expectations, asset impairment, new product introduction benefits, trade and tariffs, litigation, ESG efforts, debt repayment and dividend expectations, share position, trade customer inventory expectations, cost take-out, manufacturing investment benefits, and the impact of housing recovery-related benefits on our operations are forward-looking statements and should be evaluated as such. Such statements can be identified by the use of terminology such as "may," "could," "will," "should," "possible," "plan," "predict," "forecast," "potential," "anticipate," "estimate," "expect," "project," "intend," "believe," "may impact," "on track," "margin lift," and similar words or expressions. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool's forward-looking statements. Whirlpool disclaims any obligation to update these statements. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool's forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry, and the impact of the changing retail environment, including direct-to-consumer sales; (2) Whirlpool's ability to maintain or increase sales to significant trade customers and builders; (3) Whirlpool's ability to maintain its reputation and brand image; (4) Whirlpool's ability to achieve its business objectives and successfully manage its strategic portfolio transformation and outsourced business unit service model; (5) Whirlpool's ability to understand consumer preferences and successfully develop new products; (6) Whirlpool's ability to obtain and protect intellectual property rights; (7) acquisition, divestiture, and investment-related risks, including risks associated with our past transactions; (8) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (9) risks related to Whirlpool's international operations; (10) Whirlpool's ability to respond to unanticipated social, political and/or economic events, including epidemics/pandemics; (11) information technology system and cloud failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks; (12) product liability and product recall costs; (13) Whirlpool's ability to attract, develop and retain executives and other qualified employees; (14) the impact of labor relations; (15) fluctuations in the cost of key materials (including steel, resins, and base metals) and components and the ability of Whirlpool to offset cost increases; (16) Whirlpool's ability to manage foreign currency fluctuations; (17) impacts from goodwill, intangible asset and/or inventory impairment charges; (18) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and postretirement benefit plans; (19) impacts from credit rating agency downgrades; (20) litigation, tax, and legal compliance risk and costs; (21) the effects and costs of governmental investigations or related actions by third parties; (22) changes in the legal and regulatory environment including environmental, health and safety regulations, data privacy, taxes and AI; (23) the impacts of changes in foreign trade policies, including tariffs; (24) Whirlpool's ability to respond to the impact of climate change and climate change or other environmental regulation; (25) the uncertain global economy and changes in economic conditions; (26) financing and liquidity uncertainty including payment of dividends on our Mandatory Convertible Preferred Stock; (27) the dilutive effect of conversion and potential dividend payments in common stock for our Mandatory Convertible Preferred Stock; (28) the liquidation preference of our Mandatory Convertible Preferred Stock above our common stock; (29) reduced operational flexibility under our Senior Secured Second Lien Notes due 2031 and 2034; and (30) reduced operational flexibility and liquidity availability under our Asset-Based loan facility.
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars, except per share data)
Three Months Ended
Six Months Ended
2026
2025
2026
2025
Net sales
$ 3,517
$ 3,773
$ 6,790
$ 7,393
Expenses
Cost of products sold
3,075
3,162
5,933
6,176
Gross margin
442
610
857
1,217
Selling, general and administrative
371
397
730
803
Intangible amortization
6
7
12
13
Restructuring costs
41
2
73
11
Loss (gain) on sale and disposal of businesses
(139)
—
(139)
—
Operating profit
163
204
181
389
Other (income) expense
Interest and sundry (income) expense
5
(4)
(3)
(36)
Interest expense
63
86
140
164
Earnings (loss) before income taxes
96
121
45
260
Income tax expense (benefit)
3
29
17
72
Equity method investment income (loss), net of tax
(5)
(18)
(22)
(35)
Net earnings (loss)
88
75
6
153
Less: Net earnings (loss) available to noncontrolling interests
—
9
—
17
Net earnings (loss) available to Whirlpool shareholders
$ 88
$ 65
$ 6
$ 137
Less: Mandatory convertible preferred stock dividends
accumulated during the period
13
—
17
—
Net earnings (loss) available to Whirlpool common shareholders
$ 75
$ 65
$ (11)
$ 137
Per share of common stock
Basic net earnings (loss) available to Whirlpool
$ 1.15
$ 1.17
$ (0.17)
$ 2.46
Diluted net earnings (loss) available to Whirlpool
Accounts receivable, net of allowance of $59 and $56, respectively
1,237
1,276
Inventories
2,219
2,307
Prepaid and other current assets
1,012
654
Assets held for sale
49
17
Total current assets
5,756
4,924
Property, net of accumulated depreciation of $5,675 and $5,547,
respectively
2,230
2,194
Right of use assets
1,085
796
Goodwill
3,103
3,103
Investment in affiliated companies
836
827
Other intangibles, net of accumulated amortization of $475 and $464,
respectively
2,552
2,563
Deferred income taxes
1,349
1,327
Other noncurrent assets
416
266
Total assets
$ 17,326
$ 16,001
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$ 3,250
$ 3,704
Accrued expenses
387
448
Accrued advertising and promotions
391
755
Employee compensation
177
208
Notes payable
16
351
Current maturities of long-term debt
212
586
Other current liabilities
577
460
Total current liabilities
5,009
6,513
Noncurrent liabilities
Long-term debt
6,840
5,583
Pension benefits
90
64
Postretirement benefits
92
92
Lease liabilities
989
669
Other noncurrent liabilities
382
365
Total noncurrent liabilities
8,393
6,773
Stockholders' equity
Mandatory convertible preferred stock, 8.50% Series A, $1 par
value, 10 million shares authorized; 575 thousand issued and
outstanding as of June 30, 2026; none issued and outstanding as
of December 31, 2025; aggregate liquidation preference $575
1
—
Common stock, $1 par value, 250 million shares authorized, 73
million and 65 million shares issued, respectively, and 65 million
and 56 million shares outstanding, respectively
73
65
Additional paid-in capital
4,566
3,485
Retained earnings
1,262
1,330
Accumulated other comprehensive loss
(1,476)
(1,624)
Treasury stock, 8 million and 9 million shares, respectively
(492)
(530)
Total Whirlpool stockholders' equity
3,933
2,726
Noncontrolling interests
(11)
(11)
Total stockholders' equity
3,923
2,715
Total liabilities and stockholders' equity
$ 17,326
$ 16,001
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars)
Six Months Ended
2026
2025
Operating activities
Net earnings (loss)
$ 6
$ 153
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization
185
163
Loss (gain) on sale and disposal of businesses
(139)
—
Equity method investment (income) loss, net of tax
22
35
Share based compensation and other
50
86
Changes in assets and liabilities:
Accounts receivable
(17)
(21)
Inventories
108
(527)
Accounts payable
(515)
(134)
Accrued advertising and promotions
(368)
(284)
Accrued expenses and current liabilities
(61)
(29)
Taxes deferred and payable, net
(60)
(16)
Accrued pension and postretirement benefits
11
(1)
Employee compensation
(37)
(31)
Other
(132)
(96)
Cash provided by (used in) operating activities
(947)
(702)
Investing activities
Capital expenditures
(162)
(154)
Purchase of previously leased assets
(157)
—
Proceeds from sale of assets and businesses
195
—
Cash provided by (used in) investing activities
(123)
(154)
Financing activities
Net proceeds from borrowings of long-term debt
1,972
1,200
Net repayments of long-term debt
(1,053)
(1,550)
Net proceeds (repayments) from short-term borrowings
(334)
1,142
Dividends paid
(68)
(194)
Common stock issuance, net of issuance costs
524
—
Mandatory convertible preferred stock issuance, net of issuance costs
557
—
Other
12
(15)
Cash provided by (used in) financing activities
1,610
583
Effect of exchange rate changes on cash and cash equivalents
30
67
Increase (decrease) in cash and cash equivalents
570
(207)
Cash and cash equivalents at beginning of year
669
1,275
Cash and cash equivalents at end of period (1)
$ 1,239
$ 1,068
(1) Cash and cash equivalents at the end of period include $212 million which was restricted to execute a debt payment which occurred on July 1, 2026.
SUPPLEMENTAL INFORMATION - CONSOLIDATED FINANCIAL STATEMENTS RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Millions of dollars except per share data) (Unaudited)
We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, some of which we refer to as "ongoing" measures. These measures may include earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, ongoing EBIT margin, ongoing earnings per diluted share, ongoing EBITDA, adjusted effective tax rate, organic net sales, net debt leverage (Net Debt/Ongoing EBITDA), return on invested capital (ROIC) and free cash flow.
Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses.
Sales excluding foreign currency: Current period net sales translated in functional currency, to U.S. dollars using the applicable prior period's exchange rate compared to the applicable prior period net sales. Management believes that sales excluding foreign currency provides stockholders with a clearer basis to assess our results over time, excluding the impact of exchange rate fluctuations.
Organic net sales: Sales excluding the impact of certain acquisitions or divestitures, and foreign currency. Management believes that organic net sales provides stockholders with a clearer basis to assess our results over time, excluding the impact of exchange rate fluctuations and certain acquisitions and/or divestitures.
Ongoing EBIT margin: Ongoing earnings before interest and taxes divided by net sales. Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses.
Ongoing earnings per diluted share: Diluted net earnings per share from continuing operations, adjusted to exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations. Ongoing measures provide a better baseline for analyzing trends in our underlying businesses.
Ongoing EBITDA: Ongoing earnings before interest, taxes, depreciation and amortization. Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses.
Net debt leverage: Net debt to ongoing earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is net debt outstanding, including long-term debt, current maturities of long-term debt, and notes payable, less cash and cash equivalents, divided by ongoing EBITDA. Management believes that net debt leverage provides stockholders with a view of our ability to generate earnings sufficient to service our debt.
Return on invested capital: Ongoing EBIT after taxes divided by total invested capital, defined as total assets less non-interest bearing current liabilities (NIBCLS). NIBCLS is defined as current liabilities less current maturities of long-term debt and notes payable. This ROIC definition may differ from other companies' methods and therefore may not be comparable to those used by other companies. Management believes that ROIC provides stockholders with a view of capital efficiency, a key driver of stockholder value creation.
Adjusted effective tax rate: Effective tax rate, excluding pre-tax income and tax effect of certain unique items. Management believes that adjusted tax rate provides stockholders with a meaningful, consistent comparison of the Company's effective tax rate, excluding the pre-tax income and tax effect of certain unique items.
Free cash flow: Cash provided by (used in) operating activities less capital expenditures. Management believes that free cash flow provides stockholders with a relevant measure of liquidity and a useful basis for assessing the Company's ability to fund its activities and obligations.
Whirlpool does not provide a non-GAAP reconciliation for its forward-looking long-term value creation goals, such as EBIT, free cash flow conversion, ROIC and net debt leverage, as these long-term management goals are not annual guidance, and the reconciliation of these long-term measures would rely on market factors and certain other conditions and assumptions that are outside of the Company's control.
We believe that these non-GAAP measures provide meaningful information to assist investors and stockholders in understanding our financial results and assessing our prospects for future performance, and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP financial measures, provide a more complete understanding of our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These ongoing non-GAAP financial measures should not be considered in isolation or as a substitute for reported net earnings available to Whirlpool per diluted share, net earnings, net earnings available to Whirlpool, net earnings margin, return on assets, net sales, effective GAAP tax rate and cash provided by (used in) operating activities, the most directly comparable GAAP financial measures.
We also disclose segment EBIT as an important financial metric used by the Company's Chief Operating Decision Maker to evaluate performance and allocate resources in accordance with ASC 280 - Segment Reporting.
GAAP net earnings available to Whirlpool per basic or diluted share (as applicable) and ongoing earnings per diluted share are presented net of tax, while individual adjustments in each reconciliation are presented on a pre-tax basis; the income tax impact line item aggregates the tax impact for these adjustments. The tax impact of individual line item adjustments may not foot precisely to the aggregate income tax impact amount, as each line item adjustment may include non-taxable components. Historical quarterly earnings per share amounts are presented based on a normalized tax rate adjustment to reconcile quarterly tax rates to full-year tax rate expectations. We strongly encourage investors and stockholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
SECOND-QUARTER 2026 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool common shareholders and net earnings (loss) per diluted share available to Whirlpool common shareholders, for the three months ended June 30, 2026. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool common shareholders by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our second-quarter GAAP tax rate was 3.5%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our second-quarter adjusted tax rate (non-GAAP) of 25.0%.
Three Months Ended
Earnings Before Interest & Taxes Reconciliation:
June 30, 2026
Net earnings (loss) available to Whirlpool common shareholders
$ 75
Mandatory convertible preferred stock dividends accumulated during
the period
13
Net earnings (loss) available to noncontrolling interests
—
Income tax expense (benefit)
3
Interest expense
63
Earnings before interest & taxes
$ 154
Net sales
$ 3,517
Net earnings (loss) margin
2.1 %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 154
$ 1.15
Restructuring expense (a)
Restructuring costs
41
0.63
Impact of M&A
transactions (c)
Selling, general and
administrative &
(Gain) loss on sale and
disposal of business
(133)
(2.04)
Income tax impact
0.35
Normalized tax rate
adjustment (f)
(0.30)
Ongoing measure
$ 62
$ (0.21)
Net sales
$ 3,517
Ongoing EBIT margin
1.8 %
Note: Numbers may not reconcile due to rounding.
SECOND-QUARTER 2025 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the three months ended June 30, 2025. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our second-quarter GAAP tax rate was 23.9%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our second-quarter adjusted tax rate (non-GAAP) of 22.5%.
Three Months Ended
Earnings Before Interest & Taxes Reconciliation:
June 30, 2025
Net earnings (loss) available to Whirlpool
$ 65
Net earnings (loss) available to noncontrolling interests
9
Income tax expense (benefit)
29
Interest expense
86
Earnings before interest & taxes
$ 190
Net sales
$ 3,773
Net earnings (loss) margin
1.7 %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 190
$ 1.17
Restructuring expense (a)
Restructuring costs
2
0.03
Impact of M&A
transactions (c)
Selling, general and
administrative
8
0.15
Income tax impact
(0.04)
Normalized tax rate
adjustment (f)
0.03
Ongoing measure
$ 200
$ 1.34
Net sales
$ 3,773
Ongoing EBIT margin
5.3 %
Note: Numbers may not reconcile due to rounding.
FIRST-QUARTER 2026 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool common shareholders and net earnings (loss) per diluted share available to Whirlpool common shareholders, for the three months ended March 31, 2026. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool common shareholders by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our first-quarter GAAP tax rate was (26.9)%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our first-quarter adjusted tax rate (non-GAAP) of 25.0%.
Three Months Ended
Earnings Before Interest & Taxes Reconciliation:
March 31, 2026
Net earnings (loss) available to Whirlpool common shareholders
$ (85)
Mandatory convertible preferred stock dividends accumulated during
the period
4
Net earnings (loss) available to noncontrolling interests
—
Income tax expense (benefit)
14
Interest expense
77
Earnings before interest & taxes
$ 9
Net sales
$ 3,273
Net earnings (loss) margin
(2.6) %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 9
$ (1.43)
Restructuring expense (a)
Restructuring costs
32
0.54
Impact of M&A
transactions (c)
Selling, general and
administrative
2
0.04
Income tax impact
(0.15)
Normalized tax rate
adjustment (f)
0.44
Ongoing measure
$ 44
$ (0.56)
Net sales
$ 3,273
Ongoing EBIT margin
1.3 %
Note: Numbers may not reconcile due to rounding.
FULL-YEAR 2025 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the twelve months ended December 31, 2025. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our full-year GAAP tax rate was 27.5%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our full-year adjusted tax (non-GAAP) rate of 3.5%.
Twelve Months
Ended
Earnings Before Interest & Taxes Reconciliation:
December 31, 2025
Net earnings (loss) available to Whirlpool
$ 318
Net earnings (loss) available to noncontrolling interests
23
Income tax expense (benefit)
142
Interest expense
341
Earnings before interest & taxes
$ 824
Net sales
$ 15,524
Net earnings (loss) margin
2.2 %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 824
$ 5.66
Restructuring expense (a)
Restructuring costs
63
1.12
Impairment of goodwill, intangibles and other
assets (b)
Impairment of goodwill
and other intangibles
106
1.89
Impact of M&A
transactions (c)
(Gain) loss on sale and
disposal of businesses &
Selling, general and
administrative
Interest and sundry
(income) expense
Equity method investment
income (loss), net of tax*
(15)
(0.26)
Total income tax impact
0.06
Normalized tax rate adjustment (f)
2.19
Ongoing measure
$ 729
$ 6.23
Net Sales
$ 15,524
Ongoing EBIT Margin
4.7 %
Note: Numbers may not reconcile due to rounding.
*Equity method investment in the Earnings before interest & taxes column is presented as (income) loss
FULL-YEAR 2024 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the twelve months ended December 31, 2024. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our full-year GAAP tax rate was (5.5)%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our full-year adjusted tax (non-GAAP) rate of (28.6)%.
Twelve Months
Ended
Earnings Before Interest & Taxes Reconciliation:
December 31, 2024
Net earnings (loss) available to Whirlpool
$ (323)
Net earnings (loss) available to noncontrolling interests
18
Income tax expense (benefit)
10
Interest expense
358
Earnings before interest & taxes
$ 63
Net sales
$ 16,607
Net earnings (loss) margin
(1.9) %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 63
$ (5.87)
Restructuring expense (a)
Restructuring costs
79
1.44
Impairment of goodwill, intangibles and other
assets (b)
Impairment of goodwill
and other intangibles
381
6.92
Impact of M&A
transactions (c)
(Gain) loss on sale and
disposal of businesses &
Selling, general and
administrative
Equity method investment
income (loss), net of tax*
74
1.34
Total income tax impact
4.28
Normalized tax rate adjustment (f)
(1.16)
Ongoing measure
$ 887
$ 12.21
Net Sales
$ 16,607
Ongoing EBIT Margin
5.3 %
Note: Numbers may not reconcile due to rounding.
*Equity method investment in the Earnings before interest & taxes column is presented as (income) loss
FULL-YEAR 2026 OUTLOOK FOR ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool common shareholders and net earnings per diluted share available to Whirlpool common shareholders, for the twelve months ending December 31, 2026. Net earnings margin is calculated by dividing net earnings available to Whirlpool common shareholders by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our anticipated full-year GAAP tax rate is approximately 20.0%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our anticipated full-year adjusted tax (non-GAAP) rate of approximately 25.0%.
Twelve Months Ending
Earnings Before Interest & Taxes Reconciliation:
December 31, 2026
Net earnings (loss) available to Whirlpool common shareholders
~$150
Mandatory convertible preferred stock dividends accumulated during
the period
~40
Net earnings available to noncontrolling interests
—
Income tax expense (benefit)
~50
Interest expense
~350
Earnings before interest & taxes
~$590
Net sales
~$15,000
Net earnings margin
~1.0 %
Twelve Months Ending
December 31, 2026
Results classification
Earnings before
interest & taxes*
Earnings per
diluted share
Reported measure
~$590
$2.25 - $2.75
Restructuring Expense
Restructuring Costs
~175
~2.70
Impact of M&A
transactions(1)
Selling, general and
administrative &
(Gain) loss on sale and
disposal of business
(135)
(2.10)
Total income tax impact
(0.15)
Normalized tax rate
adjustment (f)
(0.20)
Ongoing measure
~$630
$2.50 - $3.00
Net Sales
~$15,000
Ongoing EBIT Margin
~4.0 %
Note: Numbers may not reconcile due to rounding.
FOOTNOTES
a.
RESTRUCTURING EXPENSE - On July 1, 2026, the Company announced restructuring actions related to the closure of its Supsa manufacturing facility in Apodaca, Mexico which is expected to cease production by the second quarter of 2027. The company incurred $33 million in related expenses in the second quarter of 2026.
In March 2026, the Company committed to workforce reduction plans and multi-region footprint optimization plans in the United States and globally, in an effort to reduce complexity and simplify our organization. The plan includes severance and impairment charges. Total costs for these actions in the second quarter of 2026 were $3 million.
In the second quarter of 2026, the company incurred an additional $5 million in other restructuring for previously approved restructuring actions.
In the first and third quarters of 2025, restructuring actions were announced related to organizational simplification efforts. In Q4, we incurred $46 million in costs related to multi-region footprint optimization with full-year costs totaling $63 million.
In March 2024, the Company committed to workforce reduction plans in the United States and globally, in an effort to reduce complexity and simplify our organizational model after the European major domestic appliance transaction. The workforce reduction plans included involuntary severance actions as of the end of the first quarter of 2024. Total costs for these actions were $21 million, of which we incurred $14 million in employee termination costs and $7 million in other associated costs.
During the second quarter of 2024, the Company evaluated additional restructuring actions as part of the Company's organizational simplification efforts. Total costs for these actions were $58 million, which were primarily employee termination costs.
b.
IMPAIRMENT OF GOODWILL, INTANGIBLES AND OTHER ASSETS - During the fourth quarter of 2025, we determined the carrying value of the JennAir trademark exceeded its fair value, resulting in an impairment charge of $106 million.
During the fourth quarter of 2024, we determined that the carrying value of the Maytag trademark exceeded its fair value, resulting in an impairment charge of $381 million.
c.
IMPACT OF M&A TRANSACTIONS - In June 2026, we reached an agreement with Arcelik to sell Whirlpool's remaining 25% stake in Beko to Beko BV (a subsidiary of Arcelik), accelerate and terminate certain deferred rights related to the August 2022 divestiture of our Russian business, and simplify and eliminate certain long-term obligations and liabilities between Whirlpool and Arcelik. Furthermore, Whirlpool received cash consideration and acquired a ~2.9% equity stake in Arcelik under the terms of the agreement. In connection with the transaction, we received net cash proceeds of $84 million and recorded a gain of $139 million for the three months ended June 30, 2026. The total transaction amount includes $82 million from the sale of our Beko stake, $46 million from the termination of the Russia agreement, and $11 million from the release of previously accrued indemnities and other comprehensive income.
In the fourth quarter of 2025, we sold an 11% stake in our India business and deconsolidated, resulting in a gain of $251 million. In the second quarter of 2026 we incurred $2 million in related M&A transaction costs. In addition, in the first through third quarter of 2025, we incurred $15 million in related M&A transaction costs that are recorded in Selling, General and Administrative expenses on our Consolidated Condensed Statements of Comprehensive Income (Loss).
Additionally, the Company incurred other unique transaction related costs related to portfolio transformation for $4 million for the three months ended June 30, 2026. These transaction costs are recorded in Selling, General and Administrative expenses on our Consolidated Condensed Statements of Comprehensive Income (Loss).
The Company incurred unique transaction related costs related to portfolio transformation for a total of $5 million for the three months ended March 31, 2025.
Additionally, in the third quarter of 2025, we released a $30 million reserve related to an indemnity that is no longer considered probable. This gain is recorded in Loss (Gain) on Sale and Disposal of Businesses on our Consolidated Condensed Statements of Comprehensive Income (Loss).
On January 16, 2023, the Company signed a contribution agreement to contribute our European major domestic appliance business into a newly formed entity with Arcelik. In connection with the transaction, which closed on April 1, 2024, the Company recorded a loss on disposal of $298 million for the twelve months ended December 31, 2024.
The Company incurred other unique transaction related costs related to portfolio transformation for $28 million for the twelve months ended December 31, 2024. These transaction costs are recorded in Selling, General and Administrative expenses on our Consolidated Condensed Statements of Comprehensive Income (Loss).
In the third quarter of 2024, we recorded a gain of $34 million related to the sale of the Company's Brastemp-branded water filtration subscription business related to our portfolio transformation
d.
LEGACY EMEA LEGAL MATTERS - During the second quarter of 2025 and fourth quarter of 2024 we recorded immaterial amounts related to legacy matters of our European major domestic appliance business.
e.
EQUITY METHOD INVESTEE - RESTRUCTURING CHARGES - During the fourth quarter of 2024, we recorded our proportionate share of restructuring charges related to certain previously announced restructuring actions by our European equity method investee. During the fourth quarter of 2025, we reversed $15 million of this provision.
f.
NORMALIZED TAX RATE ADJUSTMENT - During the second quarter of 2026, the Company calculated a GAAP tax rate of 3.5%. Ongoing earnings per share was calculated using an adjusted tax rate of 25.0%, which excludes the tax impacts related to M&A transaction costs and restructuring actions.
For the full year 2025, the Company calculated a GAAP tax rate of 27.5%. Ongoing earnings per share was calculated using an adjusted tax rate of 3.5%, which excludes the tax impacts related to M&A transactions, the JennAir intangible impairment charge, and restructuring actions.
For the full year 2024, the Company calculated a GAAP tax rate of (5.5)%. Ongoing earnings per share was calculated using an adjusted tax rate of (28.6)%, which excludes the tax impacts related to M&A transactions, the Maytag intangible impairment charge, and certain other tax impacts related to the Europe transaction.
Additionally, in the full-year 2026 outlook, the Company calculated ongoing earnings per share using a full-year adjusted tax (non-GAAP) rate of approximately 25.0%.
NET SALES AND ONGOING EBIT EXCLUDING MDA INDIA 2025
The reconciliation provided below reconciles the impact of removing MDA India from our net sales and ongoing EBIT for the twelve months ended December 31, 2025 for the Whirlpool business. Please see elsewhere in this Supplemental Information section for a reconciliation of Ongoing EBIT to GAAP reported net earnings (loss) available to Whirlpool.
2025 As
Reported
MDA India*
2025
Like-for-Like
Net Sales (in billions)
$15.5
$0.8
~$14.7
Ongoing EBIT (in millions)
$729
$41
~$688
Ongoing EBIT Margin
4.7 %
5.0 %
~4.7 %
Note: Numbers may not reconcile due to rounding.
*2025 India financial data (unaudited).
NET SALES AND ONGOING EBIT EXCLUDING MDA EUROPE 2024 FIRST QUARTER AND MDA INDIA 2024 DECEMBER
The reconciliation provided below reconciles the impact of removing Q1 MDA Europe from our net sales and ongoing EBIT for the twelve months ended December 31, 2024 for the Whirlpool business. Please see elsewhere in this Supplemental Information section for a reconciliation of Ongoing EBIT to GAAP reported net earnings (loss) available to Whirlpool.
2024 As
Reported
Q1 2024
MDA Europe*
2024 MDA
India**
2024
Like-for-Like
Net Sales (in billions)
$16.6
$0.8
$0.9
~$14.9
Ongoing EBIT (in millions)
$887
($9)
$32
~$864
Ongoing EBIT Margin
5.3 %
(1.1) %
3.6 %
~5.8 %
Note: Numbers may not reconcile due to rounding.
*Q1 historical segment financial data (unaudited).
**India financial data (unaudited).
Net Sales Year Over Year Change Walk
The reconciliation provided below reconciles the year over year change in net sales percentage utilizing like-for-like net sales figures.
Net Sales
Twelve Months Ended December 31,
(Approximate impact in
billions of dollars)
2024 Like-for-Like
$14.9
2025 Like-for-Like
$14.7
YoY Change
(1.4) %
2025 Like-for-Like
$14.7
2026 Outlook
$15.0
YoY Change
1.5 %
Note: Numbers may not reconcile due to rounding.
FREE CASH FLOW
Free cash flow is cash provided by (used in) operating activities after capital expenditures. The reconciliation provided below reconciles six months ended June 30, 2026 and 2025 and 2026 full-year free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. Free cash flow as a percentage of net sales is calculated by dividing free cash flow by net sales.
Six Months Ended
June 30,
(millions of dollars)
2026
2025
2026 Outlook
Cash provided by (used in) operating activities
$ (947)
$ (702)
~$700
Capital expenditures
(162)
(154)
(~400)
Free cash flow
$ (1,108)
$ (856)
$300+
Cash provided by (used in) investing activities*
$ (123)
$ (154)
Cash provided by (used in) financing activities*
$ 1,610
$ 583
*Financial guidance on a GAAP basis for cash provided by (used in) financing activities and cash provided by (used in) investing activities has not been provided because in order to prepare any such estimate or projection, the Company would need to rely on market factors and certain other conditions and assumptions that are outside of its control.
EQUITY METHOD INVESTMENT INCOME (LOSS), NET OF TAX
The reconciliation provided below reconciles the non-GAAP financial measure ongoing equity method investment income (loss), net of tax to GAAP reported equity method investment income (loss), net of tax, for the three months ended June 30, 2025 and 2026 for the Whirlpool business.
Three Months Ended
June 30,
2026
2025
Equity method investment income (loss), net of tax
$ (5)
$ (18)
Equity method investee - M&A charges
4
—
Ongoing Measure
$ (1)
$ (18)
Note: Numbers may not reconcile due to rounding.
ORGANIC NET SALES
The reconciliation provided below reconciles the non-GAAP financial measure organic net sales to GAAP reported net sales, for three months ended June 30, 2025 and 2026 for the Whirlpool business.
EVgo a Brixmor rozšiřují partnerství o více než 500 nových rychlonabíjecích stanic v USA. Po dokončení bude EVgo přítomno v nejméně 90 nákupních centrech Brixmor.
LOS ANGELES, Aug. 03, 2026 (GLOBE NEWSWIRE) -- EVgo Inc. (NASDAQ: EVGO) (“EVgo” or the “Company”), one of the nation’s largest public fast charging networks for electric vehicles (EVs), and Brixmor Property Group Inc. (NYSE: BRX) are expanding their partnership to add more than 500 new EVgo fast charging stalls in the U.S. Once complete, at least 90 Brixmor shopping centers — more than 25% of their portfolio — will feature EVgo fast chargers, building upon the companies’ long-standing partnership.
New locations for the EVgo chargers include Florida, Illinois, Minnesota, New Jersey, Pennsylvania, and Texas. Deployment will begin later this year with the first site of the expanded partnership expected in Barn Plaza, a Philadelphia suburb.
“Drivers across the U.S. want infrastructure options that integrate seamlessly into their routines, and shopping centers are an ideal place to get groceries, grab a bite or shop while charging,” said Scott Levitan, Executive Vice President, Growth at EVgo. “Expanding our partnership with Brixmor will help make EV charging even more accessible for drivers across the country while supporting the growing demand for public charging in everyday, convenient locations.”
The new Brixmor sites will feature up to 12 high-power EVgo chargers, an ideal fit for grocery store locations that the average American household visits 2-3 times per week.1 Installing EV infrastructure not only provides convenience for drivers, but it also directly benefits nearby businesses by delivering increased foot traffic and customer spending.2
“At Brixmor, we're committed to ensuring our shopping centers continue to meet the evolving needs of our customers and communities,” said Laura McLaughlin, VP, Specialty Leasing, Brixmor Property Group. “Expanding EV charging infrastructure across our portfolio enhances convenience, supports growing consumer demand and reinforces our focus on creating vibrant destinations where people can seamlessly shop, dine and access everyday services.”
EVgo deployed its first charger with Brixmor in 2016 at a shopping center in Pleasanton, California.
1 FMI
2 Consumer Reports
About EVgo
EVgo (NASDAQ: EVGO) is one of the nation’s leading public fast charging providers. With more than 1,200 fast charging stations across 47 states, EVgo strategically deploys localized and accessible charging infrastructure by partnering with leading businesses across the U.S., including retailers, grocery stores, restaurants, shopping centers, gas stations, rideshare operators and autonomous vehicle companies. At its dedicated Innovation Lab, EVgo performs extensive interoperability testing and has ongoing technical collaborations with leading automakers and industry partners to advance the EV charging industry and deliver a seamless charging experience.
Forward Looking Statement
This press release contains forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to: EVgo’s plans, projections, and expectations regarding its partnership with Brixmor; EVgo’s product capabilities, features, availability, performance, and expected benefits, including for EVgo’s customers; and the speed and scope of EVgo’s infrastructure deployment at Brixmor properties. Forward-looking statements are based on EVgo’s management’s current assumptions, expectations, and beliefs and are not guarantees of future performance. These statements are subject to a number of risks, uncertainties, and assumptions, including those described under the heading “Risk Factors” and elsewhere in our most recent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K filed with the Securities and Exchange Commission. In light of these risks, uncertainties, and assumptions, actual results could differ materially and adversely from those anticipated or implied by the forward-looking statements. You should not rely on forward-looking statements as predictors of future results. Any forward-looking statements in this release are based on the limited information currently available to EVgo as of the date hereof, which is subject to change, and EVgo does not undertake any obligation to update these statements, even if new information becomes available in the future.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e94cf205-dc07-437c-8aa5-f659e7c0f2c0
EVgo and Brixmor Expand Partnership to Provide More Fast Charging Choices for American Shoppers More than 500 new EVgo stalls to be added at Brixmor shopping centers across the U.S.
