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LANSING, Mich.--(BUSINESS WIRE)--Jackson Financial Inc. (NYSE: JXN) (Jackson®) today announced its financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Key Highlights

Retail annuity sales1 of $5.9 billion, up 34% from the second quarter of 2025, including record registered index-linked annuity (RILA) sales of $2.3 billion, which were up 69% from the second quarter of 2025 Variable annuity (VA) sales1 of $2.7 billion were up 8% from the second quarter of 2025, primarily reflecting higher sales of products without lifetime benefits Fixed and fixed index annuity (FIA) sales of $812 million were up 73% from the second quarter of 2025, driven by our Jackson Income Assurance℠ FIA Robust sales for spread products are supported by capabilities added at PPM America, Inc. (PPM), our asset management subsidiary, to source higher yielding assets, as well as our strategic partnership with TPG Inc. (TPG). These sales, combined with a focus on growing PPM’s third-party business, contributed to a 21% increase in PPM’s assets under management (AUM) from the second quarter of 2025, to more than $100 billion. Net income attributable to Jackson Financial Inc. common shareholders of $644 million, or $9.16 per diluted share in the second quarter of 2026, compared to $168 million, or $2.34 per diluted share in the second quarter of 2025 Adjusted operating earnings2 of $513 million, or a record $7.30 per diluted share in the second quarter of 2026, compared to $350 million, or $4.87 per diluted share in the second quarter of 2025, primarily reflecting higher spread income from growth in average RILA, FIA, and Institutional AUM, higher fee income from growth in average VA AUM, and a reduced share count due to repurchases Adjusted operating earnings per diluted share excluding notable items3 of $7.68 in the second quarter of 2026, up from $4.97 in the second quarter of 2025 Robust capital position at the operating company, with total adjusted capital of $5.8 billion as of June 30, 2026, and an estimated risk-based capital (RBC) ratio at Jackson National Life Insurance Company (JNL) of 538% Jackson (Parent Company only) net cash provided by (used in) operating activities of $(27) million in the second quarter of 2026, compared to $(24) million in the second quarter of 2025 Free cash flow2 of $287 million in the second quarter of 2026 reflecting distributions from our operating company of $325 million Returned $290 million to common shareholders in the second quarter of 2026, up 34% from the second quarter of 2025, through $227 million of common share repurchases and $63 million in common dividends Cash and highly liquid securities at the holding company of nearly $1.4 billion as of June 30, 2026, which was above our updated targeted $325 million minimum liquidity buffer Laura Prieskorn, President and Chief Executive Officer of Jackson, stated, “Our second quarter results reflect the growing strength and diversification of our business. We delivered record earnings per share and 34% growth in retail annuity sales compared to the same period last year. This demonstrates our distribution reach and the momentum in our spread business, supported by the enhanced capabilities of PPM and the growth of our partnership with TPG. Our robust in-force book of business drove strong progress toward our financial targets, with more than $300 million of free capital generation in the second quarter, $290 million of capital return to common shareholders, and healthy levels of excess cash at the holding company. We believe we are well positioned for the second half of 2026 and remain committed to helping Americans achieve financial freedom for life.”

Consolidated Second Quarter 2026 Results

The Company reported net income attributable to Jackson Financial Inc. common shareholders of $644 million, or $9.16 per diluted share for the three months ended June 30, 2026, compared to $168 million, or $2.34 per diluted share for the three months ended June 30, 2025. Second quarter net income included a more favorable net hedging result versus the prior year’s second quarter, driven in part by lower volatility in the current quarter. We believe the non-GAAP measure of adjusted operating earnings better represents the underlying performance of our business as adjusted operating earnings exclude, among other things, changes in the fair value of derivative instruments and market risk benefits tied to market movements.

Adjusted operating earnings for the three months ended June 30, 2026, were $513 million, or a record $7.30 per diluted share, compared to $350 million or $4.87 per diluted share for the three months ended June 30, 2025. The current quarter per share amount reflected higher spread income from growth in average RILA, FIA, and Institutional AUM, higher fee income from growth in average VA AUM, and a reduced share count due to share repurchases.

Total common shareholders’ equity was $9.4 billion or $136.10 per diluted share as of June 30, 2026, compared to $9.4 billion or $138.17 per diluted share as of December 31, 2025. Adjusted book value attributed to common shareholders4 was $10.8 billion or $156.12 per diluted share as of June 30, 2026, compared to $10.6 billion or $155.78 per diluted share as of December 31, 2025. The per share increase was primarily driven by year-to-date adjusted operating earnings of $0.9 billion, partially offset by capital return during the first half of the year and a higher diluted share count resulting from the common equity issuance during the first quarter related to the initiation of the strategic partnership with TPG. Return on equity attributable to common shareholders for the six months ended June 30, 2026 and 2025 was 4.5% and 2.8%, respectively. Adjusted operating return on equity attributable to common shareholders4 for the six months ended June 30, 2026, was 16.5%, up from 13.1% in the first half of 2025.

Segment Results – Pretax Adjusted Operating Earnings5

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Retail Annuities

$621

$417

Institutional Products

29

19

Closed Life and Annuity Blocks

(10)

22

Corporate and Other

(22)

(52)

Total5

$618

$406

Retail Annuities

Retail Annuities reported pretax adjusted operating earnings of $621 million in the second quarter of 2026, compared to $417 million in the second quarter of 2025. The current quarter results primarily reflect higher spread income resulting from growth in average RILA and FIA AUM and higher fee income from growth in average VA AUM, partially offset by higher market related expenses.

Total retail annuity sales6 of $5.9 billion in the second quarter of 2026 were up from $4.4 billion in the second quarter of 2025. Variable annuity sales6 of $2.7 billion in the second quarter were up from $2.5 billion in the second quarter of 2025, reflecting higher sales of products without lifetime benefits. Record RILA sales of $2.3 billion in the second quarter were up from $1.4 billion in the second quarter of 2025. Fixed and fixed index annuity sales in the second quarter of $812 million were up from $470 million in the second quarter of 2025.

Institutional Products

Institutional Products reported pretax adjusted operating earnings of $29 million in the second quarter of 2026, compared to $19 million in the second quarter of 2025, driven by higher spread income resulting from higher AUM. The segment reported sales of $1.4 billion in the quarter, up significantly from $930 million in the second quarter of 2025. This healthy growth underscores our continued ability to capitalize on robust demand for spread lending, demonstrating the effectiveness of our opportunistic sales strategy and our strong market positioning. Net flows were $(13) million in the second quarter, and total account value of $11 billion was up from $10.4 billion in the second quarter of 2025.

Closed Life and Annuity Blocks

Closed Life and Annuity Blocks reported pretax adjusted operating income (loss) of $(10) million in the second quarter of 2026, compared to $22 million in the second quarter of 2025, primarily reflecting lower limited partnership income, partially offset by decreases in reserves from the runoff of in-force business.

Corporate and Other

Corporate and Other reported a pretax adjusted operating (loss) of $(22) million in the second quarter of 2026, compared to $(52) million in the second quarter of 2025, primarily reflecting higher net investment income and lower G&A expenses.

Corporate and Other also includes the results of PPM, which has experienced 21% growth in AUM from the second quarter of 2025. AUM as of June 30, 2026 was $101.1 billion, up from $83.5 billion as of June 30, 2025, driven by growth in Jackson’s general account due to sales of RILA, fixed annuities, FIA and Institutional products, and growth in third-party AUM.

Capitalization and Liquidity

Statutory TAC at JNL was $5.8 billion as of June 30, 2026, up from $5.5 billion as of March 31, 2026. TAC was supported by strong earnings on in-force business, partially offset by a $325 million distribution to JNL’s parent during the second quarter of 2026 and the related reduction in deferred tax asset admissibility. JNL’s estimated RBC ratio was 538% as of June 30, 2026, down from the first quarter of 2026 due to an increase in estimated company action level required capital. Holding company free cash flow totaled $287 million in the second quarter of 2026 reflecting the $325 million distribution from the operating company.

Cash and highly liquid securities at the holding company totaled nearly $1.4 billion as of June 30, 2026, which was above our updated targeted minimum liquidity buffer of $325 million. The holding company liquidity includes proceeds from our $750 million senior debt issuance in the second quarter of 2026, which can be used to retire, at or prior to maturity, our $400 million senior notes due 2027 and JNL’s $250 million surplus notes due 2027.

Earnings Conference Call

Jackson will host a conference call on Tuesday, August 4, 2026, at 10 a.m. ET to review the second quarter results. The live webcast is open to the public and can be accessed at https://investors.jackson.com. A replay will be available following the call.

To register for the webcast, click here.

FORWARD-LOOKING STATEMENTS

The information in this press release contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this release not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the use of forward-looking or conditional words, such as “could,” “should,” “can,” “continue,” “estimate,” “forecast,” “intend,” “look,” “may,” “expect,” “believe,” “anticipate,” “plan,” “predict,” “remain,” “future,” “confident” and “commit” or similar expressions. In particular, statements regarding plans, strategies, prospects, targets and expectations regarding the business and industry are forward-looking statements. They reflect expectations, are not guarantees of performance, and speak only as of the dates the statements are made. We caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. Other factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission (the SEC) on February 24, 2026, and elsewhere in the Company’s reports filed with the SEC. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.

Certain financial data included in this release consists of non-GAAP (Generally Accepted Accounting Principles) financial measures. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with U.S. GAAP. Although the Company believes these non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in this release. A reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure can be found in the “Non-GAAP Financial Measures” Appendix of this release.

Certain financial data included in this release consists of statutory accounting principles (“statutory”) financial measures, including “total adjusted capital.” These statutory financial measures are included in or derived from the Jackson National Life Insurance Company annual and/or quarterly statements filed with the Michigan Department of Insurance and Financial Services and are available in the investor relations section of the Company’s website at investors.jackson.com/financials/statutory-filings.

ABOUT JACKSON

Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com.

*SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2025. (Criteria used for Call Center World Class FCR Certification is 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for three consecutive months or more.)

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).

WEBSITE INFORMATION

Visit investors.jackson.com to view information regarding Jackson Financial Inc., including a supplement regarding the second quarter results. We routinely use our investor relations website as a primary channel for disclosing key information to our investors. We may use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations. Accordingly, investors should monitor our investor relations website, in addition to following our press releases, filings with the SEC, public conference calls, presentations, and webcasts. We and certain of our senior executives may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website, our social media channels, or our executives’ social media channels is not incorporated by reference into and is not part of this release.

APPENDIX

Non-GAAP Financial Measures

In addition to presenting our results of operations and financial condition in accordance with U.S. GAAP, we use and report selected non-GAAP financial measures. Management believes the use of these non-GAAP financial measures, together with relevant U.S. GAAP financial measures, provides a better understanding of our results of operations, financial condition and the underlying performance drivers of our business. These non-GAAP financial measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP financial measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.

Adjusted Operating Earnings

Adjusted Operating Earnings is an after-tax, non-GAAP financial measure, which we believe should be used to evaluate our financial performance on a consolidated basis by excluding certain items that may be highly variable from period to period due to accounting treatment under U.S. GAAP or that are non-recurring in nature, as well as certain other revenues and expenses that we do not view as driving our underlying performance. Adjusted Operating Earnings should not be used as a substitute for net income as calculated in accordance with U.S. GAAP. However, we believe the adjustments to net income are useful for gaining an understanding of our overall results of operations.

Free Cash Flow

Free cash flow is Jackson Financial Inc. (Parent Company only) net cash provided by (used in) operating activities less preferred stock dividends and capital contributions to PPM or other subsidiaries, plus the return of capital from our subsidiaries. Free cash flow should not be used as a substitute for JFI’s (Parent Company only) net cash provided by (used in) operating activities calculated in accordance with U.S. GAAP. However, we believe these adjustments are useful to gaining an understanding of our overall available cash flow at JFI for return of capital to common shareholders and other corporate initiatives.

For additional detail on the non-GAAP financial measures, please refer to the supplement relating to the second quarter ended June 30, 2026, posted on our website, https://investors.jackson.com.

The following is a reconciliation of Adjusted Operating Earnings to Net Income (loss) attributable to Jackson Financial Inc. common shareholders, the most comparable U.S. GAAP measure.

U.S. GAAP Net Income (Loss) to Adjusted Operating Earnings

Three Months Ended

(in millions, except share and per share data)

June 30, 2026

June 30, 2025

Net income (loss) attributable to Jackson Financial Inc. common shareholders

$

644

$

168

Add: dividends on preferred stock

11

11

Add: income tax expense (benefit)

5

4

Pretax income (loss) attributable to Jackson Financial Inc.

660

183

Non-operating adjustments – (income) loss:

Guaranteed benefits and hedging results:

Fees attributable to guarantee benefit reserves

(714

)

(764

)

Net (gains) losses on hedging instruments

(176

)

1,840

Market risk benefits (gains) losses, net

(2,053

)

(2,203

)

Net reserve and embedded derivative movements

2,671

1,066

Total net hedging results

(272

)

(61

)

Amortization of DAC associated with non-operating items at date of transition to LDTI1

118

127

Actuarial assumption updates and model enhancements

—

—

Net realized investment (gains) losses

27

(30

)

Net realized investment (gains) losses on funds withheld assets

297

327

Net investment income on funds withheld assets

(201

)

(227

)

Other items

(11

)

87

Total non-operating adjustments

(42

)

223

Pretax adjusted operating earnings

618

406

Less: operating income tax expense (benefit)

94

45

Adjusted operating earnings before dividends on preferred stock

524

361

Less: dividends on preferred stock

11

11

Adjusted operating earnings

$

513

$

350

Weighted Average diluted shares outstanding

70,292,020

71,938,152

Net income (loss) per diluted share

$

9.16

$

2.34

Adjusted Operating Earnings per diluted share

$

7.30

$

4.87

1LDTI - Adoption of FASB issued ASU 2018-12 “Targeted Improvements to the Accounting for Long Duration Contracts”.

Adjusted Earnings Per Share, Excluding Notables and Taxes

Three Months Ended

(in millions, except per share amounts)

June 30, 2026

June 30, 2025

Adjusted operating earnings

$

513

$

350

Add: (Out performance)/under performance from limited partnership income

26

24

Add: Impact from effective tax rate versus a 15% tax rate guidance

1

(17

)

Adjusted Operating Earnings exclude notable items and taxes

$

540

$

357

Adjusted Operating Earnings per common share (diluted), excluding notable items and taxes

$

7.68

$

4.97

The following is a reconciliation of Jackson Financial (Parent Company only) net cash provided by (used in) operating activities, the most comparable U.S. GAAP measure, to Free Cash Flow:

Three Months Ended

(in millions) June 30, 2026

June 30, 2025

Jackson Financial, Inc. (Parent Company Only) Net cash provided by (used in) operating activities

$

(27

)

$

(24

)

Adjustments from net cash provided by operating activities to free cash flow:

Capital distributions from subsidiaries

325

325

Dividends on preferred stock

(11

)

(11

)

Total adjustments

314

314

Free cash flow

$

287

$

290

Free Cash Flow Comprised of:

Capital distributions from subsidiaries

325

325

Cash distributed to JFI

325

325

Parent company expenses

(37

)

(29

)

Net investment income and other income

8

6

Other, net

(9

)

(12

)

JFI expenses and other, net

(38

)

(35

)

Free cash flow

$

287

$

290

Adjusted Book Value Attributable to Common Shareholders

Adjusted Book Value Attributable to Common Shareholders excludes Preferred Stock and Accumulated Other Comprehensive Income (Loss) (AOCI) attributable to Jackson Financial Inc (JFI), which does not include AOCI arising from investments held within the funds withheld account related to the Athene Reinsurance Transaction. We exclude AOCI attributable to JFI from Adjusted Book Value Attributable to Common Shareholders because our invested assets are generally invested to closely match the duration of our liabilities, which are longer duration in nature, and therefore we believe period-to-period fair market value fluctuations in AOCI to be inconsistent with this objective. We believe excluding AOCI attributable to JFI is more useful to investors in analyzing trends in our business because it removes those short-term fluctuations. Changes in AOCI within the funds withheld account related to the Athene Reinsurance Transaction offset the related non-operating earnings from the Athene Reinsurance Transaction resulting in a minimal net impact on the Adjusted Book Value of JFI.

(in millions)

June 30, 2026

December 31, 2025

Total shareholders’ equity

$

9,962

$

9,953

Less: Preferred equity

533

533

Total common shareholders’ equity

9,429

9,420

Adjustments to total common shareholders’ equity:

Exclude Accumulated Other Comprehensive (Income) Loss attributable to Jackson Financial Inc.

1,387

1,201

Adjusted Book Value Attributable to Common Shareholders

$

10,816

$

10,621

Condensed Consolidated Balance Sheets

June 30,

December 31,

2026

2025

(in millions, except share and per share data)

Assets

Investments:

Debt Securities, available-for-sale, net of allowance for credit losses of $24 and $11 at June 30, 2026 and December 31, 2025, respectively (amortized cost: 2026 $55,815; 2025 $50,491)

$

52,208

$

47,321

Debt Securities, at fair value under fair value option

3,534

3,470

Equity securities, at fair value

262

172

Mortgage loans, net of allowance for credit losses of $176 and $133 at June 30, 2026 and December 31, 2025, respectively

10,414

9,887

Mortgage loans, at fair value under fair value option

595

324

Policy loans (including $3,617 and $3,537 at fair value under the fair value option at June 30, 2026 and December 31, 2025, respectively)

4,484

4,426

Freestanding derivative instruments

422

448

Other invested assets

3,392

3,185

Total investments

75,311

69,233

Cash and cash equivalents

5,986

5,704

Accrued investment income

714

634

Deferred acquisition costs

11,655

11,660

Reinsurance recoverable, net of allowance for credit losses of $31 and $30 at June 30, 2026 and December 31, 2025, respectively

18,331

19,518

Reinsurance recoverable on market risk benefits, at fair value

109

118

Market risk benefit assets, at fair value

8,046

7,867

Deferred income taxes, net

609

719

Other assets

917

637

Separate account assets

245,387

236,496

Total assets

$

367,065

$

352,586

Condensed Consolidated Balance Sheets

June 30,

December 31,

2026

2025

(in millions, except share and per share data) Liabilities and Equity

Liabilities

Reserves for future policy benefits and claims payable

$

10,634

$

10,896

Other contract holder funds

73,285

67,663

Market risk benefit liabilities, at fair value

3,368

3,754

Funds withheld payable under reinsurance treaties (including $3,806 and $3,723 at fair value under the fair value option at June 30, 2026 and December 31, 2025, respectively)

14,090

14,960

Debt

2,769

2,030

Repurchase agreements and securities lending payable

477

1,036

Collateral payable for derivative instruments

14

58

Freestanding derivative instruments

657

257

Notes issued by consolidated variable interest entities, at fair value under fair value option

2,474

2,578

Other liabilities

3,436

2,516

Separate account liabilities

245,387

236,496

Total liabilities

356,591

342,244

Equity

Series A non-cumulative preferred stock and additional paid in capital, $1.00 par value per share: 24,000 shares authorized; 22,000 shares issued and outstanding at June 30, 2026 and December 31, 2025; liquidation preference $25,000 per share

533

533

Common stock; 1,000,000,000 shares authorized, $0.01 par value per share and 68,185,286 and 66,825,632 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

1

1

Additional paid-in capital

6,401

6,063

Treasury stock, at cost; 26,303,029 and 27,662,683 shares at June 30, 2026 and December 31, 2025, respectively

(1,897

)

(1,645

)

Accumulated other comprehensive income (loss), net of tax expense (benefit) of $(286) and $(377) at June 30, 2026 and December 31, 2025, respectively

(2,625

)

(2,470

)

Retained earnings

7,549

7,471

Total shareholders' equity

9,962

9,953

Noncontrolling interests

512

389

Total equity

10,474

10,342

Total liabilities and equity

367,065

352,586

Condensed Consolidated Income Statements

Three Months Ended June 30

Six Months Ended June 30,

(in millions, except per share data) 2026

2025

2026

2025

Revenues

Fee income

$

1,968

$

1,942

$

3,966

$

3,928

Premiums

38

40

66

80

Net investment income:

Net investment income excluding funds withheld assets

727

491

1,268

1,019

Net investment income on funds withheld assets

201

227

400

454

Total net investment income

928

718

1,668

1,473

Net gains (losses) on derivatives and investments:

Net gains (losses) on derivatives and investments

(2,487

)

(2,860

)

(2,204

)

(1,517

)

Net gains (losses) on funds withheld reinsurance treaties

(297

)

(327

)

(456

)

(715

)

Total net gains (losses) on derivatives and investments

(2,784

)

(3,187

)

(2,660

)

(2,232

)

Other income

18

16

30

30

Total revenues

168

(471

)

3,070

3,279

Benefits and Expenses

Death, other policy benefits and change in policy reserves, net of deferrals

221

256

479

500

(Gain) loss from updating future policy benefits cash flow assumptions, net

20

12

38

24

Market risk benefits (gains) losses, net

(2,053

)

(2,203

)

(383

)

43

Interest credited on other contract holder funds, net of deferrals and amortization

320

295

635

583

Interest expense

27

25

52

50

Operating costs and other expenses, net of deferrals

687

681

1,422

1,358

Amortization of deferred acquisition costs

281

274

562

549

Total benefits and expenses

(497

)

(660

)

2,805

3,107

Pretax income (loss)

665

189

265

172

Income tax expense (benefit)

5

4

25

5

Net income (loss)

660

185

240

167

Less: Net income (loss) attributable to noncontrolling interests

5

6

9

12

Net income (loss) attributable to Jackson Financial Inc.

655

179

231

155

Less: Dividends on preferred stock

11

11

22

22

Net income (loss) attributable to Jackson Financial Inc. common shareholders

$

644

$

168

$

209

$

133

Earnings per share

Basic

$

9.18

$

2.34

$

2.99

$

1.83

Diluted

$

9.16

$

2.34

$

2.98

$

1.83

1

Excludes certain internal exchanges

2

For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release.

3

See the appendix for a reconciliation related to notable items

4

For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release.

5

See reconciliation of Total Pretax Adjusted Operating Earnings, a non-GAAP financial measure, to net income in the Appendix to this release.

6

Excludes certain internal exchanges

More News From Jackson Financial Inc.

Net Sales of $1,566 million, up 92% year over year, including the addition of the Allison Off-Highway business unit acquired on January 1, 2026 Record quarterly net sales of $860 million for the Allison Transmission business unit  Net Income of $181 million, 12% of Net Sales Diluted EPS of $2.15, Adjusted Diluted EPS of $2.73, up 8% year over year Adjusted EBITDA of $404 million, 26% of Net Sales, up 29% year over year , /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), today reported second quarter net sales of $1,566 million with an adjusted EBITDA margin of 26 percent and net cash provided by operating activities of $312 million.

David S. Graziosi, Chair, President and Chief Executive Officer of Allison commented, "In the Allison Transmission business unit, execution of our growth initiatives in the Defense end market and continued momentum in the North American truck market led to record quarterly net sales of $860 million for the second quarter. We also saw strong year over year growth in the Allison Off-Highway business unit, particularly in the Construction & Material Handling and Mining end markets as demand continues to rebound from trough levels. The Agriculture end market, although showing signs of recovery in certain segments and regions, has yet to inflect positively."

Graziosi continued, "The successful integration of the Allison Off-Highway business unit, including capturing planned synergies and realizing the strategic benefits of the combined operations, remains a top priority. At the same time, Allison continues to execute across both business units, converting improving demand conditions into strong cash generation, reflected in record quarterly adjusted free cash flow of $281 million in the second quarter. Alongside repurchasing $46 million of our common stock and paying a quarterly dividend, we also made additional progress toward our leverage target by repaying the remaining $150 million outstanding under our revolving credit facility."

Second quarter results include segment reporting for Allison Transmission, the Company's legacy business, excluding certain costs now accounted for within the Allison Central Group, and Allison Off-Highway, the business acquired from Dana Incorporated on January 1, 2026. The Allison Central Group is a centralized cost center which includes certain functional costs that support the Company's global operations.

Allison Consolidated Second Quarter Financial Results

Net sales for the quarter were $1,566 million, including the addition of $706 million in net sales for the Allison Off-Highway business unit.

Gross profit for the quarter was $515 million, an increase of $112 million from $403 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit. Gross margin for the quarter was 33 percent.

Selling, general and administrative expenses for the quarter were $168 million, an increase of $64 million from $104 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit. Selling general and administrative expenses for the second quarter include $9 million of one-time acquisition-related expenses.

Engineering – research and development expenses for the quarter were $56 million, an increase of $13 million from $43 million for the same period in 2025. The increase was principally driven by the addition of the Allison Off-Highway business unit, partially offset by reduced product initiatives spending in the Allison Transmission business unit.

Net income for the quarter was $181 million, a decrease of $14 million from $195 million for the same period in 2025. The decrease was principally driven by increased operating costs due to the acquisition of the Allison Off-Highway business unit, including increased depreciation and amortization expense. The year over year decrease in net income was also driven by higher interest expense, net, and unrealized mark-to-market adjustments for marketable securities. The decrease in net income was partially offset by increased gross profit driven by the addition of the Allison Off-Highway business unit. Diluted EPS for the second quarter was $2.15, a year over year decrease of 6 percent.

Excluding the effect of certain non-cash, non-recurring, infrequent or unusual items, including the costs associated with the acquisition of the Allison Off-Highway business unit, adjusted net income, a non-GAAP financial measure, was $229 million for the second quarter and adjusted diluted EPS was $2.73, a year over year increase of 8 percent.

Adjusted EBITDA, a non-GAAP financial measure, was $404 million for the second quarter, an increase of $91 million from $313 million for the same period in 2025. Adjusted EBITDA margin for the quarter was 26 percent.

Net cash provided by operating activities for the quarter was $312 million, a year over year increase of 70 percent. Adjusted free cash flow, a non-GAAP financial measure, for the quarter was $281 million, a year over year increase of 84 percent.

Allison ended the second quarter with nearly $400 million of cash and cash equivalents and $995 million of available borrowing capacity under its revolving credit facility. Allison ended the second quarter with total debt of $4,114 million and net debt of $3,715 million.

During the second quarter, Allison paid a quarterly dividend of $0.29 per share and repurchased $46 million of its common stock, with $1,125 million of authorization remaining under its stock repurchase program.

Allison Transmission Second Quarter Financial Highlights

Net sales for the quarter increased 6 percent from the same period in 2025, leading to record quarterly net sales of $860 million.

Gross profit for the quarter was $397 million, a decrease of $6 million from $403 million for the same period in 2025. The decrease was principally driven by unfavorable direct material costs and higher manufacturing expense, partially offset by price increases on certain products. Gross margin for the second quarter was 46 percent.

Selling, general and administrative expenses for the quarter were $75 million, an increase of $3 million from $72 million for the same period in 2025 when adjusting for allocations of certain selling, general and administrative expenses to the Allison Central Group. The increase was principally driven by increased commercial activities spending.

Engineering – research and development expenses for the quarter were $41 million, a decrease of $2 million from $43 million for the same period in 2025. The decrease was principally driven by reduced product initiatives spending.

Segment operating profit was $281 million, or 33 percent of net sales, for the second quarter. Adjusted EBITDA, a non-GAAP financial measure, was $318 million for the second quarter. Adjusted EBITDA margin for the quarter was 37 percent.

Allison Off-Highway Second Quarter Financial Highlights

Net sales for the quarter were $706 million.

Gross profit for the quarter was $118 million, representing 17 percent of net sales.

Selling, general and administrative expenses for the quarter were $56 million. Engineering – research and development expenses for the quarter were $15 million.

Segment operating profit was $47 million, or 7 percent of net sales, for the second quarter. Adjusted EBITDA, a non-GAAP financial measure, was $104 million for the second quarter. Adjusted EBITDA margin for the quarter was 15 percent.

Full Year 2026 Guidance Update

Given our second quarter results and improving conditions across our end markets, we are increasing our full year 2026 guidance provided to the market on May 4, 2026. Allison expects:

Consolidated net sales in the range of $5,800 to $6,000 million Consolidated net income in the range of $600 to $700 million, subject to the completion of purchase price accounting associated with the acquisition of the Allison Off-Highway business unit Net income guidance includes approximately $140 million of one-time, pre-tax expenses associated with the separation, integration and restructuring of the Allison Off-Highway business unit, including approximately $75 million of expenses related to the stepped-up basis in inventory. Net income guidance also includes $50 million of additional depreciation. Including one-time costs, the Allison Off-Highway acquisition is expected to be accretive to net income and diluted EPS in 2026 Consolidated adjusted EBITDA in the range of $1,465 to $1,575 million Consolidated net cash provided by operating activities in the range of $1,025 to $1,125 million, including approximately $55 million of one-time cash outlays associated with the acquisition of the Allison Off-Highway business unit Consolidated capital expenditures in the range of $260 to $280 million, including one-time separation and integration capital expenditures of approximately $30 million Consolidated adjusted free cash flow in the range of $745 to $865 million Conference Call and Webcast

The Company will host a conference call at 5:00 p.m. EDT on Monday, August 3, 2026 to discuss its second quarter 2026 results. The dial-in phone number for the conference call is +1-877-425-9470 and the international dial-in number is +1-201-389-0878. A live webcast of the conference call will also be available online at https://ir.allisontransmission.com. 

For those unable to participate in the conference call, a replay will be available from 9:00 p.m. EDT on August 3 until 11:59 p.m. EDT on August 17. The replay dial-in phone number is +1-844-512-2921 and the international replay dial-in number is +1-412-317-6671. The replay passcode is 13761420.

About Allison
Allison (NYSE: ALSN) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world. For more information, visit https://allisontransmission.com. 

Forward-Looking Statements
This press release contains forward-looking statements. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: the significant costs we are expected to incur in connection with the integration of the Off-Highway Drive & Motion Systems business of Dana Incorporated (now referred to as the "Allison Off-Highway Business"); our ability to successfully integrate the Allison Off-Highway Business and its operations in the expected time frame; our ability to realize all of the anticipated benefits from the integration of the Allison Off-Highway Business and its operations and to effectively manage our expanded operations; our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, natural disasters, extreme weather events, wars and public health crises such as pandemics; global economic volatility; general economic and industry conditions, including the risk of prolonged inflation and recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these customers; cybersecurity risks to our operational systems, security systems or infrastructure owned by us or our third-party vendors and suppliers; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including acts of war and increased trade protectionism and tariffs; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; and risks related to our indebtedness.

Use of Non-GAAP Financial Measures
This press release contains information about Allison's financial results and forward-looking estimates of financial results that are not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their most directly comparable GAAP financial measures at the end of this press release. Non-GAAP financial measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.

We use adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") and adjusted EBITDA as a percent of net sales ("adjusted EBITDA margin") to measure our operating profitability. We believe that adjusted EBITDA and adjusted EBITDA margin provide management, investors and creditors with useful measures of the operational results of our business and increase the period-to-period comparability of our operating profitability. Adjusted EBITDA margin is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to adjusted EBITDA and adjusted EBITDA margin is net income or segment operating profit (loss) in the case of our segments and net income as a percent of net sales ("net income margin") or segment operating profit (loss) as a percent of net sales in the case of our segments, respectively. Adjusted EBITDA is calculated as earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019, as amended, governing Allison Transmission, Inc.'s term loans and revolving credit facility. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net sales.

In addition, we believe adjusted net income, adjusted basic earnings per share attributable to common stockholders ("adjusted basic EPS") and adjusted diluted earnings per share attributable to common stockholders ("adjusted diluted EPS") provide management, investors and creditors with useful measures of our core business performance and trends and increase the period-to-period comparability of our results of operations. The most directly comparable GAAP measure to adjusted net income, adjusted basic EPS and adjusted diluted EPS is net income, basic earnings per share attributable to common stockholders ("basic EPS") and diluted earnings per share attributable to common stockholders ("diluted EPS"), respectively. Adjusted net income is calculated as net income excluding the effect of certain non-cash, non-recurring, infrequent or unusual items such as: amortization related to acquired intangible assets, depreciation of the stepped-up basis in property, plant and equipment related to acquired assets, stepped-up basis in acquired inventory, stock-based compensation expense, acquisition-related expenses, impairment charges, other one-off adjustments and the tax effect of the adjustments. Adjusted basic EPS is calculated by dividing adjusted net income by the weighted average shares of common stock outstanding and adjusted diluted EPS is calculated by dividing adjusted net income by the diluted weighted average shares of common stock outstanding.

We use adjusted free cash flow to evaluate the amount of cash generated by our business that, after the capital investment needed to maintain and grow our business and certain mandatory debt service requirements, can be used for repayment of debt, stockholder distributions and strategic opportunities, including investing in our business. We believe that adjusted free cash flow enhances the understanding of the cash flows of our business for management, investors and creditors. Adjusted free cash flow is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to adjusted free cash flow is net cash provided by operating activities. Adjusted free cash flow is calculated as net cash provided by operating activities after cash used for additions of long-lived assets.

Attachments

Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Reconciliations of GAAP to Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance Allison Transmission Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, dollars in millions, except per share data)

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Three months ended June 30, 

 Three months ended June 30, 

 Three months ended June 30, 

 Three months ended June 30, 

2026

2025

2026

2025

2026

2025

2026

2025

Net sales

$                      860

$                      814

$                      706

$                         -

$                      -

$                      -

$                   1,566

$                      814

Cost of sales

463

411

588

-

-

-

1,051

411

Gross profit

397

403

118

-

-

-

515

403

Selling, general and administrative

75

72

56

-

37

32

168

104

Engineering - research and development

41

43

15

-

-

-

56

43

Operating income (loss)

$                      281

$                      288

$                        47

$                         -

$                    (37)

$                    (32)

291

256

Interest expense, net

2

(21)

-

-

(63)

-

(54)

(22)

Other (expense) income, net

(7)

5

4

-

-

-

(9)

8

Income before income taxes

$                      276

$                      272

$                        51

$                         -

$                 (100)

$                    (32)

228

242

Income tax expense

(47)

(47)

Net income

$                      181

$                      195

Basic earnings per share attributable to common stockholders

$                     2.18

$                     2.32

Diluted earnings per share attributable to common stockholders

$                     2.15

$                     2.29

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Six months ended June 30, 

Six months ended June 30, 

Six months ended June 30, 

 Six months ended June 30, 

2026

2025

2026

2025

2026

2025

2026

2025

Net sales

$                   1,593

$                   1,580

$                   1,379

$                         -

$                      -

$                      -

$                   2,972

$                   1,580

Cost of sales

840

799

1,211

-

-

-

2,051

799

Gross profit

753

781

168

-

-

-

921

781

Selling, general and administrative

140

137

112

-

73

54

325

191

Engineering - research and development

80

85

30

-

-

-

110

85

Operating income (loss)

$                      533

$                      559

$                        26

$                         -

$                    (73)

$                    (54)

486

505

Interest expense, net

2

(21)

-

-

(63)

-

(115)

(43)

Other (expense) income, net

(7)

5

4

-

-

-

(11)

13

Income before income taxes

$                      528

$                      543

$                        30

$                         -

$                 (136)

$                    (54)

360

475

Income tax expense

(67)

(88)

Net income

$                      293

$                      387

Basic earnings per share attributable to common stockholders

$                     3.53

$                     4.55

Diluted earnings per share attributable to common stockholders

$                     3.49

$                     4.50

Allison Transmission Holdings, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, dollars in millions)

 June 30, 

 December 31, 

2026

2025

ASSETS

Current Assets

    Cash and cash equivalents

$                   399

$            1,495

    Accounts receivable, net

911

333

    Inventories

840

316

    Other current assets

239

89

Total Current Assets

2,389

2,233

Property, plant and equipment, net

1,660

862

Intangible assets, net

1,607

794

Goodwill

2,812

2,075

Other non-current assets

249

118

TOTAL ASSETS

$                8,717

$            6,082

LIABILITIES

Current Liabilities

    Accounts payable

$                   806

$                190

    Product warranty liability

65

34

    Current portion of long-term debt 

20

5

    Deferred revenue

73

34

    Other current liabilities

358

197

Total Current Liabilities

1,322

460

Product warranty liability

63

50

Deferred revenue

105

103

Long-term debt

4,094

2,885

Deferred income taxes

839

557

Other non-current liabilities

315

160

TOTAL LIABILITIES

6,738

4,215

TOTAL STOCKHOLDERS' EQUITY

1,979

1,867

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$                8,717

$            6,082

Allison Transmission Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, dollars in millions)

 Three months ended June 30, 

 Six months ended June 30, 

2026

2025

2026

2025

Net cash provided by operating activities

$                   312

$                   184

$                   468

$                   365

Net cash used for investing activities (a) (b)

-

(33)

(2,616)

(59)

Net cash (used for) provided by financing activities

(224)

(132)

1,056

(316)

Effect of exchange rate changes on cash

-

6

(4)

7

Net increase (decrease) in cash and cash equivalents

88

25

(1,096)

(3)

Cash and cash equivalents at beginning of period

311

753

1,495

781

Cash and cash equivalents at end of period

$                   399

$                   778

$                   399

$                   778

Supplemental disclosures:

          Interest paid

$                    (66)

$                    (33)

$                  (107)

$                    (60)

          Income taxes paid

$                    (84)

$                    (93)

$                    (95)

$                    (95)

          Interest received from interest rate swaps

$                        -

$                        2

$                        -

$                        4

(a)  Business acquisition, net of cash acquired

$                      34

$                        -

$               (2,529)

-

(b)  Additions of long-lived assets

$                    (31)

$                    (31)

$                    (84)

$                    (57)

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Three months ended 

 Six months ended 

 June 30, 

 June 30, 

2026

2025

2026

2025

Net income (GAAP)

$          181

$          195

$          293

$          387

plus:

    Interest expense, net

54

22

115

43

    Depreciation of property, plant and equipment

46

29

90

57

    Income tax expense

47

47

67

88

    Amortization expense

21

1

44

3

    Recognition of the stepped-up basis in inventory (a)

-

-

63

-

    Depreciation of the stepped up basis in property, plant and equipment (b) 

18

-

31

-

    Acquisition-related expenses (c)

9

15

26

24

    Stock-based compensation expense (d)

10

8

17

14

    Unrealized loss (gain) on marketable securities (e)

12

(5)

9

(8)

    Unrealized loss on foreign exchange (f)

-

1

3

1

    Loss associated with impairment of long-lived assets (g)

2

-

2

-

    Other (h)

4

-

6

-

Adjusted EBITDA (Non-GAAP)

$          404

$          313

$          766

$          609

Net sales (GAAP)

$       1,566

$          814

$       2,972

$       1,580

Net income as a percent of Net sales (GAAP)

11.6 %

24.0 %

9.9 %

24.5 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

25.8 %

38.5 %

25.8 %

38.5 %

Net cash provided by operating activities (GAAP)

$          312

$          184

$          468

$          365

Deductions to reconcile to Adjusted free cash flow:

    Additions of long-lived assets

(31)

(31)

(84)

(57)

Adjusted free cash flow (Non-GAAP)

$          281

$          153

$          384

$          308

(a)

Represents the recognition of the stepped-up basis in inventory related to our acquisition of the Dana Off-Highway business (the "Acquisition") (recorded in Cost of sales).

(b)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(c)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

Represents unrealized losses (gains) (recorded in Other (expense) income, net) related to an investment in the common stock of Jing-Jin Electric Technologies Co. Ltd.

(f)

Represents losses (recorded in Other (expense) income, net) on intercompany financing transactions for our facility in Chennai, India.

(g)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(h)

Represents other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019 as amended.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Three months ended 

 Three months ended 

 Three months ended 

 Three months ended 

 June 30, 

 June 30, 

 June 30, 

 June 30, 

2026

2026

2026

2026

2025

Segment Operating Profit/(Loss) (GAAP)

$                                    281

$                                      47

$                                     (37)

$                      291

$                      256

plus:

    Depreciation of property, plant and equipment

31

15

-

46

29

    Amortization expense

-

21

-

21

1

    Acquisition-related expenses (a)

-

-

9

9

15

    Depreciation of the stepped up basis in property, plant and equipment (b) 

-

18

-

18

-

    Stock-based compensation expense (c)

-

-

10

10

8

    Loss associated with the impariment of long-lived assets (d)

2

-

-

2

-

    Other (e)

4

3

-

7

4

Adjusted EBITDA (Non-GAAP)

$                                    318

$                                    104

$                                     (18)

$                      404

$                      313

Net sales (GAAP)

$                                    860

$                                    706

$                                         -

$                   1,566

$                      814

Segment Operating Profit/(Loss) as a percent of Net sales (GAAP)

32.7 %

6.7 %

-

18.6 %

31.4 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

37.0 %

14.7 %

-

25.8 %

38.5 %

(a)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(b)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(c)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(d)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(e) 

Represents gains and losses (recorded in Other (expense) income, net) to reconcile to Adjusted EBITDA.

 Allison Transmission 

 Allison Off-Highway 

 Central Group Function 

 Consolidated 

 Six months ended 

 Six months ended 

 Six months ended 

 Six months ended 

 June 30, 

 June 30, 

 June 30, 

 June 30, 

2026

2026

2026

2026

2025

Segment Operating Profit/(Loss) (GAAP)

$                            533

$                             26

$                                     (73)

$                      486

$                      505

plus:

    Depreciation of property, plant and equipment

61

29

-

90

57

    Amortization expense

1

43

-

44

3

    Recognition of the stepped-up basis in inventory (a)

-

63

-

63

-

    Acquisition-related expenses (b)

-

-

26

26

24

    Depreciation of the stepped up basis in property, plant and equipment (c) 

-

31

-

31

-

    Stock-based compensation expense (d)

-

-

17

17

14

    Loss associated with the impariment of long-lived assets (e)

2

-

-

2

-

    Other (f)

(3)

10

-

7

6

Adjusted EBITDA (Non-GAAP)

$                          594

$                          202

$                                 (30)

$                    766

$                    609

Net sales (GAAP)

$                       1,593

$                       1,379

$                                     -

$                 2,972

$                 1,580

Segment Operating Profit/(Loss) as a percent of Net sales (GAAP)

33.5 %

1.9 %

-

16.4 %

32.0 %

Adjusted EBITDA as a percent of Net sales (Non-GAAP)

37.3 %

14.6 %

-

25.8 %

38.5 %

(a)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(b)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(c)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(f) 

Represents gains and losses (recorded in Other (expense) income, net) to reconcile to Adjusted EBITDA.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited, dollars in millions)

 Three months ended 

 Six months ended 

 June 30, 

 June 30, 

2026

2025

2026

2025

Net income (GAAP)

$          181

$          195

$          293

$          387

plus:

    Recognition of the stepped-up basis in inventory (a)

-

-

63

-

    Amortization expense

21

1

44

3

    Depreciation of the stepped up basis in property, plant and equipment (b) 

18

-

31

-

    Acquisition-related expenses (c)

9

15

26

24

    Stock-based compensation expense (d)

10

8

17

14

    Loss associated with impairment of long-lived assets (e)

2

-

2

-

    Income tax effect on adjustments (f)

(12)

(5)

(31)

(8)

Adjusted net income (Non-GAAP)

$          229

$          214

$          445

$          420

Basic EPS (GAAP)

$         2.18

$         2.32

$         3.53

$         4.55

Diluted EPS (GAAP)

$         2.15

$         2.29

$         3.49

$         4.50

Adjusted basic EPS (Non-GAAP) (g)

$         2.76

$         2.55

$         5.36

$         4.94

Adjusted diluted EPS (Non-GAAP) (g)

$         2.73

$         2.52

$         5.30

$         4.88

(a)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(b)

Represents depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(c)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition.

(d)

Represents stock-based compensation expense (recorded in Selling, general and administrative).

(e)

Represents a charge associated with the impairment of long-lived assets related to the production of certain electrified products.

(f)

Represents the income tax effect on the adjustments calculated by applying our effective tax rate.

(g)

Adjusted basic EPS and Adjusted diluted EPS are Non‑GAAP financial measures and are defined as Adjusted net income divided by the weighted average common shares outstanding and diluted weighted average shares outstanding, respectively, for the period. The weighted-average common shares outstanding and diluted weighted-average common shares outstanding are the same as those used in calculating the comparable GAAP measures.

Allison Transmission Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance

(Unaudited, dollars in millions)

Guidance

Year Ending December 31, 2026

Low

High

Net income (GAAP)

$                 600

$                 700

plus:

Income tax expense

135

185

Depreciation of property, plant and equipment (a)

255

245

Interest expense, net

220

210

Amortization of intangible assets

80

80

Recognition of the stepped-up basis in inventory (b)

75

75

Acquisition-related expenses  (c)

45

35

Stock-based compensation expense  (d)

30

30

Unrealized gain on marketable securities  (e)

(10)

(10)

Restructuring & One-Time expenses (f)

30

20

Other (g)

5

5

Adjusted EBITDA (Non-GAAP)

$             1,465

$             1,575

Net cash provided by Operating activities (GAAP)

$             1,025

$             1,125

Deductions to reconcile to Adjusted free cash flow:

    Additions of long-lived assets (h)

$               (280)

$               (260)

Adjusted free cash flow (Non-GAAP)

$                 745

$                 865

(a)

Includes depreciation of the stepped-up basis in property, plant and equipment related to the Acquisition (recorded in Cost of sales).

(b)

Represents the recognition of the stepped-up basis in inventory related to the Acquisition (recorded in Cost of sales).

(c)

Represents expenses (recorded in Selling, general and administrative), primarily consulting and legal fees, related to the Acquisition. 

(d)

Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development).

(e)

Represents gains (recorded in Other (expense) income, net) related to an investment in common stock of Jing-Jin Electric Technologies Co. Ltd.

(f)

Includes one-time restructuring costs, minority interest and one-time employee retention costs.

(g)

Represents other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019 as amended.

(h)

Includes one-time Acquisition-related investments.

SOURCE Allison Transmission Holdings Inc.

Joby Aviation (JOBY +3.22%) is slated to report second-quarter earnings after the bell on Aug. 5, 2026. And, boy oh boy, is the timing tense.

So far in 2026, Joby stock has plummeted about 50%. Investors, while mostly bullish on electric vertical takeoff and landing (eVTOL) stocks in 2025, have seemingly lost interest.

Today's Change

(

3.22

%) $

0.23

Current Price

$

7.38

Part of that is because Joby’s fundamental challenge hasn’t changed: It still needs FAA type certification before it can scale its eVTOL business. The financial consequence of that delayed commercialization will probably show up again in its second-quarter results, with Wall Street expecting a loss of roughly $0.21 per share.

Anyone who has invested in Joby is probably aware of the company’s cash-burning problems. What could send the stock plummeting after the bell on Aug. 5, however, would be related to FAA type certification progress, or lack thereof.

If Joby’s progress appears stalled -- or its pace appears decelerated -- the money-losing eVTOL start-up could be in for a difficult second-half of 2026.

Image source: The Motley Fool.

Joby cannot afford a vague certification update.  Joby is flying into its second-quarter earnings with a market cap of about $7 billion despite lacking an FAA-certified eVTOL and generating little revenue from its core business.

Announcement-wise, Joby’s second quarter has seemed pretty solid. In late April, Joby flew an eVTOL from JFK airport to heliports in Manhattan in under 10 minutes, completing the first-ever point-to-point eVTOL flight in the Big Apple. In June, Joby and its long-term manufacturing partner, Toyota, (TM -1.49%) announced a formal joint effort called the Joby Toyota Aero Manufacturing Preparation Company (JTAMPC), aimed at scaling production of Joby’s S4 electric taxis.

Finally, in July, Joby finalized a definitive agreement with Virgin Atlantic to bring Joby’s air-taxi services to the United Kingdom. Under the agreement, Virgin Atlantic users will be able to book Joby air taxis through the airline’s mobile app and website, adding another big name to Joby’s commercial partnership list, which includes Delta (DAL +4.75%) and Uber (UBER +1.78%).

This has all been great. But none of it answers the question that matters most for its valuation right now: When will Joby break the regulatory dam holding back its highly anticipated commercial launch? Is the company moving quickly enough through the FAA type certification process, and, if so, when should investors expect eVTOL commercialization?

Anything short of specific, concrete language around FAA testing -- not vague, evasive wording -- could be read as a disappointment, especially since none of the company’s biggest second-quarter announcements moved the needle on Joby stock.

It’s worth noting that Joby reported an earnings beat in Q1 that led to a roughly 21% one-day surge. Shares of Joby were trading at roughly $10.50 the day after reporting first-quarter earnings on May 5, and that winning streak continued until they rose north of $12 at the end of May, after which shares began to slide. The stock currently trades at about $7.50.

Given what investors know going into second-quarter earnings, a meaningful certification or commercialization milestone would be the reason for a surge on the same level as last quarter’s. Without one, however, Joby’s second-quarter report could send the stock into another tailspin.

Key Takeaways Host Hotels is poised for Q2 revenue and AFFO growth, supported by higher RevPAR.HST's RevPAR is expected to rise as group demand recovers and travel remains stable.Higher interest expenses and lower occupancy may temper bottom-line growth in Q2. Host Hotels & Resorts, Inc. (HST - Free Report) is scheduled to release second-quarter 2026 earnings results on Aug. 5, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues and adjusted funds from operations (AFFO) per share.

In the previous quarter, this Bethesda, MD-based lodging real estate investment trust (REIT) reported an AFFO per share of 67 cents, which surpassed the Zacks Consensus Estimate of 63 cents. The results reflected higher revenues, driven by year-over-year comparable hotel RevPAR growth.

Over the trailing four quarters, Host Hotels’ AFFO per share surpassed estimates on all occasions, the average surprise being 8.66%. The graph below depicts this surprising history:

HST’s Upcoming ResultsHost Hotels & Resorts benefits from a portfolio of luxury and upper-upscale hotels across key U.S. markets, including gateway cities and resort destinations. The company’s properties are strategically positioned in high-demand locations, which continue to support steady room pricing.

The continued recovery in group demand, along with stable transient and leisure travel, is likely to have supported revenue per available room (RevPAR) growth in the to-be-reported quarter.

Host Hotels’ disciplined capital allocation strategy and ongoing reinvestment in its portfolio are likely to have enhanced asset quality and strengthened its competitive positioning. This, along with rate-led growth, is expected to have aided EBITDA growth and modest margin expansion, even in a rising cost environment.

However, elevated interest expenses are expected to have acted as a headwind to the bottom-line growth during the second quarter.

Q2 Estimates for HSTThe Zacks Consensus Estimate for HST’s quarterly revenues is presently pegged at $1.62 billion, implying growth of 2.2% from the prior-year period’s reported figure.

The Zacks Consensus Estimate for quarterly RevPAR is pinned at $244.77, indicating an increase from $239.64 reported in the year-ago quarter.

The company’s activities during the to-be-reported quarter were adequate to garner analysts’ confidence. The Zacks Consensus Estimate for AFFO per share has moved northward to 62 cents over the past month. The figure implies a 6.90% rise from the year-ago reported number.

However, the consensus mark for the average occupancy rate in the second quarter is pegged at 72.09%, implying a decrease from the prior-year quarter’s reported figure of 73.80%.

We expect second-quarter 2026 interest expenses to rise 3.8% year over year.

What Our Quantitative Model Predicts for HSTOur proven model predicts a likely surprise in terms of AFFO per share for Host Hotels this 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 AFFO beat, which is the case here.

Host Hotels currently has an Earnings ESP of +1.48% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a LookHere are two stocks from the broader REIT industry — Ryman Hospitality Properties (RHP - Free Report) and Lamar Advertising (LAMR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

RHP, scheduled to report quarterly numbers on Aug. 6, has an Earnings ESP of +0.25% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lamar Advertising is slated to report quarterly numbers on Aug. 6. LAMR has an Earnings ESP of +0.22% and a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

August 03, 2026 17:00 ET  | Source: Apollo Global Management, Inc.

NEW YORK and HOUSTON, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that Apollo-managed funds (“Apollo Funds”) have acquired Maverick Water Group (“Maverick” or the “Company”), a Houston-based developer, owner and operator of alternative non-potable water systems that serve communities across Texas, from funds managed by Crosstimbers Capital Group (“Crosstimbers”). Maverick’s management team retains a minority stake and continues to operate the Company.

Founded in 2018, Maverick develops alternative water system assets, purpose-built in partnership with real estate development and industrial customers to support reliable non-potable water supply. With Apollo Funds’ support, the Company plans to continue scaling its platform and its significant near-term pipeline to meet accelerating demand for efficient, sustainable water infrastructure.  

“Maverick has built a differentiated platform delivering long-term water solutions across some of the country’s fastest-growing markets,” said Jon Levinson, Managing Director, in Apollo’s Infrastructure Group. “Bringing to bear the scale of our infrastructure platform and deep industry expertise, we look forward to partnering with Maverick's highly experienced team to support the Company and its customers through this next phase of growth.”  

“We built Maverick to deliver reliable water solutions in regions where they are increasingly important, and we’re proud of the platform and the reputation our team has established,” said Dustin Kinder, Chief Executive Officer of Maverick Water Group. “Apollo shares our long-term vision for the business, and its partnership will enable us to continue investing in the innovative solutions our customers have come to expect from us. We're excited about what we can accomplish together in this next chapter, and we're grateful to the Crosstimbers team for all their support.”

“Resilient infrastructure, innovation, and stronger alignment with companies are all important elements of flourishing communities. That’s the belief we founded Maverick on,” said Trevor Brock, Co-founder and Managing Partner of Crosstimbers. “Dustin, Ben, and the team have built an exceptional business around it, with a culture to match. We’re grateful for their partnership and excited to watch Maverick continue to grow with Apollo.”

Apollo Funds have deployed more than $130 billion1 across infrastructure and infrastructure-related investments over the past five years, as the Global Industrial Renaissance continues to drive demand for modern and resilient physical infrastructure.

Guggenheim Securities acted as financial advisor to Maverick in connection with the transaction. Latham & Watkins LLP served as legal counsel to Crosstimbers on the transaction. Vinson & Elkins LLP served as legal counsel to Apollo Funds on the transaction.

1 The deployment, commitment, or arrangement of capital into infrastructure investments is commensurate with Apollo’s proprietary Infrastructure Investment Classification Framework and Calculation Methodology (the “Methodology”). The Methodology, which is subject to change at any time without notice, sets forth certain categories of investments classified by Apollo as infrastructure investments. Only investments determined to be aligned with one or more categories of infrastructure investment in accordance with the Methodology are counted toward the deployment, commitment, or arrangement of capital. Under the Methodology, Apollo uses different calculation methodologies for different types of asset classes. For additional details on the Methodology, please refer to our website.

About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of March 31, 2026, Apollo had approximately $1.03 trillion of assets under management. To learn more, please visit www.apollo.com.

About Maverick Water Group
Founded in 2018 and headquartered in Houston, Texas, Maverick Water Group develops, owns and operates alternative water systems that deliver non-potable water to communities and data centers, industrial, energy and real estate customers across Texas. Through purpose-built, long-term contracted infrastructure, Maverick helps reduce costs and preserve scarce potable water supply in the nation’s fastest-growing regions.

About Crosstimbers Capital Group
Based in Houston, Texas, Crosstimbers Capital Group provides formation capital to scalable platform companies that acquire, develop, and operate hard assets. For more information, visit www.crosstimbers.com.

Contacts

Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
[email protected]

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
[email protected]

, /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 26, 2026.

"UCT delivered second quarter results above the top end of our guided range reflecting strong operational execution and increasing customer demand," said James Xiao, CEO. "The long-term outlook for semiconductor manufacturing remains compelling as AI continues to drive investment across the industry. Our priority is executing UCT 3.0 by expanding our global manufacturing capacity, enhancing engineering and operational capabilities, and accelerating digital transformation. Together, these initiatives position us to support our customers with greater speed, agility, and scale while delivering sustainable, profitable growth and creating long-term value for our shareholders."

Second Quarter 2026 GAAP Financial Results
Total revenue was $644.9 million. Products contributed $572.7 million and Services added $72.2 million. Total gross margin was 16.1%, operating margin was 4.6%, and net income was $8.7 million or $0.19 per diluted share. This compares to total revenue of  $533.7 million, gross margin of 15.8%, operating margin of 2.1%, and net loss of $(17.9) million or $(0.40) per diluted share, in the prior quarter.

Second Quarter 2026 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was 16.7%, operating margin was 7.0%, and net income was $32.3 million or $0.70 per diluted share. This compares to gross margin of 16.5%, operating margin of 5.1%, and net income of $14.5 million or $0.31 per diluted share in the prior quarter.

Third Quarter 2026 Outlook
The Company expects revenue in the range of $700 million to $750 million. The Company expects GAAP diluted net income per share to be between $0.67 and $0.87 and non-GAAP diluted net income per share to be between $0.83 and $1.03.

Conference Call
The call will take place at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 68934#. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/.

About Ultra Clean Holdings, Inc. 
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.

Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company's operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.

The Company defines non-GAAP net income as net loss before amortization of intangible assets, stock-based compensation, restructuring charges, debt refinancing costs, legal-related costs, unrealized loss (gain) on foreign exchange, and the tax effects of the foregoing adjustments.

A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.

Safe Harbor Statement 
The foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our annual report on Form 10-K for the year ended December 26, 2025, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.

Contact:
Rhonda Bennetto
SVP Investor Relations
[email protected]

 ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share data)

Three Months Ended

Six Months Ended

June 26,
2026

June 27,
2025

June 26,
2026

June 27,
2025

Revenues:

Products

$       572.7

$       454.9

$     1,038.4

$       911.9

Services

72.2

63.9

140.2

125.5

Total revenues

644.9

518.8

1,178.6

1,037.4

Cost of revenues:

Products

488.8

393.3

889.5

783.5

Services

52.4

46.0

101.0

90.4

Total cost revenues

541.2

439.3

990.5

873.9

Gross margin

103.7

79.5

188.1

163.5

Operating expenses:

Research and development

8.8

7.8

17.4

15.4

Sales and marketing

16.4

15.5

31.9

30.5

General and administrative

49.0

46.9

98.0

95.4

Impairment of goodwill

—

151.1

—

151.1

Total operating expenses

74.2

221.3

147.3

292.4

Income (loss) from operations

29.5

(141.8)

40.8

(128.9)

Interest income

1.0

0.8

2.4

1.9

Interest expense

(1.1)

(10.1)

(8.3)

(20.0)

Other income (expense), net

0.6

(2.2)

(0.7)

(1.3)

Income (loss) before provision for income taxes

30.0

(153.3)

34.2

(148.3)

Provision for income taxes

18.1

7.2

37.2

14.6

Net income (loss)

11.9

(160.5)

(3.0)

(162.9)

Less: Net income attributable to noncontrolling
interests

3.2

1.5

6.2

4.1

Net income (loss) attributable to UCT

$          8.7

$      (162.0)

$         (9.2)

$      (167.0)

Net income (loss) per share attributable to UCT common stockholders:

Basic

$         0.19

$       (3.58)

$       (0.20)

$       (3.70)

Diluted

$         0.19

$       (3.58)

$       (0.20)

$       (3.70)

Shares used in computing net income (loss) per share:

Basic

45.1

45.2

45.2

45.2

Diluted

46.1

45.2

45.2

45.2

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)

June 26,
2026

December 26,
2025

ASSETS

Current assets:

Cash and cash equivalents

$         255.9

$         311.8

Accounts receivable, net of allowance for credit losses

208.0

208.8

Inventories

629.9

390.9

Prepaid expenses and other current assets

66.7

48.2

Total current assets

1,160.5

959.7

Property, plant and equipment, net

323.7

324.6

Goodwill

114.2

114.2

Intangible assets, net

143.2

156.8

Deferred tax assets, net

4.4

3.5

Operating lease right-of-use assets

158.1

157.2

Other non-current assets

14.0

13.0

Total assets

$      1,918.1

$       1,729.0

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$             —

$            9.9

Accounts payable

300.6

194.9

Accrued compensation and related benefits

62.4

51.1

Operating lease liabilities

21.5

20.2

Other current liabilities

40.2

24.6

Total current liabilities

424.7

300.7

Long-term debt

599.4

467.0

Deferred tax liabilities

14.1

13.8

Operating lease liabilities

155.0

156.6

Other liabilities

7.8

6.8

Total liabilities

1,201.0

944.9

Equity:

UCT stockholders' equity:

Common stock

0.1

0.1

Additional paid-in capital

560.8

578.7

Common shares held in treasury

(88.7)

(48.4)

Retained earnings

180.0

189.2

Accumulated other comprehensive loss

(12.4)

(8.6)

Total UCT stockholders' equity

639.8

711.0

Noncontrolling interests

77.3

73.1

Total equity

717.1

784.1

Total liabilities and equity

$      1,918.1

$       1,729.0

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

Six Months Ended

June 26,
2026

June 27,
2025

(In millions) 

Cash flows from operating activities:

Net loss

$            (3.0)

$         (162.9)

Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:

Depreciation and amortization

24.8

23.4

Amortization of intangible assets

13.7

14.3

Stock-based compensation

9.6

10.0

Amortization of debt issuance costs

1.6

1.1

Impairment of goodwill

—

151.1

Loss on extinguishment of debt

3.4

—

Loss on disposal of property, plant and equipment

1.2

0.1

Change in the fair value of financial instruments

—

(0.1)

Deferred income taxes

(0.5)

0.6

Changes in assets and liabilities:

Accounts receivable

0.8

34.3

Inventories

(238.9)

5.4

Prepaid expenses and other current assets

(13.8)

(7.8)

Other non-current assets

0.9

(0.5)

Accounts payable

104.4

(11.9)

Accrued compensation and related benefits

11.3

(2.6)

Income taxes payable

(2.5)

(4.2)

Operating lease right-of-use assets and operating lease liabilities

(1.2)

11.1

Other liabilities

13.8

(4.0)

Net cash provided by (used in) operating activities

(74.4)

57.4

Cash flows from investing activities:

Purchases of property, plant and equipment

(25.8)

(29.2)

Proceeds from sale of equipment

0.1

0.1

Net cash used in investing activities

(25.7)

(29.1)

Cash flows from financing activities:

Proceeds from the issuance of convertible notes

600.0

—

Borrowings on revolving credit facility

15.0

—

Proceeds from issuance of common stock

1.1

1.1

Payment of debt issuance costs

(17.4)

(0.6)

Repurchase of common stock

(40.0)

(3.4)

Payment for capped call transactions

(25.1)

—

Principal payments on bank borrowings

(481.5)

(15.1)

Employees' taxes paid upon vesting of restricted stock units

(3.5)

(0.7)

Payments of dividends to a joint venture shareholder

(0.1)

(0.1)

Net cash provided by (used in) financing activities

48.5

(18.8)

Effect of exchange rate changes on cash and cash equivalents

(4.3)

4.0

Net increase (decrease) in cash and cash equivalents

(55.9)

13.5

Cash and cash equivalents at beginning of period

311.8

313.9

Cash and cash equivalents at end of period

$          255.9

$          327.4

ULTRA CLEAN HOLDINGS, INC.

REPORTABLE SEGMENTS

GAAP TO NON-GAAP RECONCILIATION

(Unaudited; dollars in millions)

GAAP

Non-GAAP

Three Months Ended

Three Months Ended

June 26, 2026

June 26, 2026

Products

Services

Consolidated

Products

Services

Consolidated

Revenues

$   572.7

$   72.2

$         644.9

$     572.7

$       72.2

$         644.9

Gross profit

$     83.9

$   19.8

$         103.7

$       86.7

$       20.9

$         107.6

Gross margin

14.6 %

27.4 %

16.1 %

15.1 %

28.9 %

16.7 %

Income from operations

$     24.8

$     4.7

$           29.5

$       37.0

$         8.1

$           45.1

Operating margin

4.3 %

6.6 %

4.6 %

6.5 %

11.2 %

7.0 %

Three Months Ended

June 26, 2026

Products

Services

Consolidated

Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)

Reported gross profit on a GAAP basis

$      83.9

$       19.8

$     103.7

Amortization of intangible assets (1)

1.3

1.0

2.3

Stock-based compensation expense (2)

1.5

—

1.5

Restructuring charges (3)

—

0.1

0.1

Non-GAAP gross profit

$      86.7

$       20.9

$     107.6

Reconciliation of GAAP Gross margin to Non-GAAP Gross margin

Reported gross margin on a GAAP basis

14.6 %

27.4 %

16.1 %

Amortization of intangible assets (1)

0.2 %

1.4 %

0.4 %

Stock-based compensation expense (2)

0.3 %

— %

0.2 %

Restructuring charges (3)

— %

0.1 %

— %

Non-GAAP gross margin

15.1 %

28.9 %

16.7 %

Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)

Reported income from operations on a GAAP basis

$      24.8

$        4.7

$       29.5

Amortization of intangible assets (1)

3.9

2.9

6.8

Stock-based compensation expense (2)

7.6

0.5

8.1

Restructuring charges (3)

0.7

—

0.7

Non-GAAP income from operations

$      37.0

$        8.1

$       45.1

Reconciliation of GAAP Operating margin to Non-GAAP Operating margin

Reported operating margin on a GAAP basis

4.3 %

6.6 %

4.6 %

Amortization of intangible assets (1)

0.7 %

4.0 %

1.0 %

Stock-based compensation expense (2)

1.3 %

0.6 %

1.3 %

Restructuring charges (3)

0.1 %

— %

0.1 %

Non-GAAP operating margin

6.5 %

11.2 %

7.0 %

1    Amortization of intangible assets related to the Company's business acquisitions

2    Represents compensation expense for stock granted to employees and directors

3    Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures

ULTRA CLEAN HOLDINGS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS

Three Months Ended

June 26,
2026

June 27,
2025

March 27,
2026

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions)

Reported net income (loss) attributable to UCT on a GAAP basis

$        8.7

$    (162.0)

$     (17.9)

Amortization of intangible assets (1)

6.8

7.0

6.9

Stock-based compensation expense (2)

8.1

7.1

4.0

Restructuring charges (3)

0.7

4.8

4.8

Debt refinancing costs expensed (4)

0.7

—

3.0

Legal-related costs (5)

—

0.3

—

Unrealized loss (gain) on foreign exchange (6)

(1.9)

3.7

(1.1)

Impairment of goodwill (7)

—

151.1

—

Income tax effect of non-GAAP adjustments (8)

(2.9)

(34.9)

(3.5)

Income tax effect of valuation allowance (9)

12.1

37.9

18.3

Non-GAAP net income attributable to UCT

$       32.3

$       15.0

$       14.5

Reconciliation of GAAP Income (Loss) from operations to Non-GAAP Income from operations (in millions)

Reported income (loss) from operations on a GAAP basis

$       29.5

$    (141.8)

$       11.4

Amortization of intangible assets (1)

6.8

7.0

6.9

Stock-based compensation expense (2)

8.1

7.1

4.0

Restructuring charges (3)

0.7

4.8

4.8

Legal-related costs (5)

—

0.3

—

Impairment of goodwill (7)

—

151.1

—

Non-GAAP income from operations

$       45.1

$       28.5

$       27.1

Reconciliation of GAAP Operating margin to Non-GAAP Operating margin

Reported operating margin on a GAAP basis

4.6 %

(27.3) %

2.1 %

Amortization of intangible assets (1)

1.0 %

1.3 %

1.3 %

Stock-based compensation expense (2)

1.3 %

1.4 %

0.8 %

Restructuring charges (3)

0.1 %

0.9 %

0.9 %

Legal-related costs (5)

— %

0.1 %

— %

Impairment of goodwill (7)

— %

29.1 %

— %

Non-GAAP operating margin

7.0 %

5.5 %

5.1 %

Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)

Reported gross profit on a GAAP basis

$     103.7

$       79.5

$       84.4

Amortization of intangible assets (1)

2.3

2.3

2.3

Stock-based compensation expense (2)

1.5

0.4

1.2

Restructuring charges (3)

0.1

2.4

0.3

Non-GAAP gross profit

$     107.6

$       84.6

$       88.2

Reconciliation of GAAP Gross margin to Non-GAAP Gross margin

Reported gross margin on a GAAP basis

16.1 %

15.3 %

15.8 %

Amortization of intangible assets (1)

0.4 %

0.4 %

0.4 %

Stock-based compensation expense (2)

0.2 %

0.1 %

0.2 %

Restructuring charges (3)

— %

0.5 %

0.1 %

Non-GAAP gross margin

16.7 %

16.3 %

16.5 %

Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions)

Reported Other income (expense), net on a GAAP basis

$        0.6

$       (2.2)

$       (1.3)

Debt refinancing costs expensed (4)

0.7

—

3.0

Unrealized loss (gain) on foreign exchange (6)

(1.9)

3.7

(1.1)

Non-GAAP Other income (expense), net

$       (0.6)

$        1.5

$        0.6

Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share

Reported net income (loss) on a GAAP basis

$       0.19

$     (3.58)

$     (0.40)

Amortization of intangible assets (1)

0.15

0.15

0.15

Stock-based compensation expense (2)

0.18

0.16

0.09

Restructuring charges (3)

0.01

0.10

0.10

Debt refinancing costs expensed (4)

0.01

—

0.06

Legal-related costs (5)

—

0.01

—

Unrealized loss (gain) on foreign exchange (6)

(0.04)

0.08

(0.02)

Impairment of goodwill (7)

—

3.34

—

Income tax effect of non-GAAP adjustments (8)

(0.06)

(0.77)

(0.08)

Income tax effect of valuation allowance (9)

0.26

0.84

0.40

Impact of dilutive shares

—

—

0.01

Non-GAAP net earnings

$       0.70

$       0.33

$       0.31

Weighted average number of diluted shares (in millions) on a
non-GAAP basis (10)

46.0

45.3

46.3

ULTRA CLEAN HOLDINGS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE

Three Months Ended

June 26,
2026

June 27,
2025

March 27,
2026

Provision for income taxes on a GAAP basis

$       18.1

$         7.2

$       19.2

Income tax effect of non-GAAP adjustments (8)

2.9

34.9

3.5

Income tax effect of valuation allowance (9)

(12.1)

(37.9)

(18.3)

Non-GAAP provision for income taxes

$         8.9

$         4.2

$         4.4

Income before income taxes on a GAAP basis

$       30.0

$    (153.3)

$         4.2

Amortization of intangible assets (1)

6.8

7.0

6.9

Stock-based compensation expense (2)

8.1

7.1

4.0

Restructuring charges (3)

0.7

4.8

4.8

Debt refinancing costs expensed (4)

0.7

—

3.0

Legal-related costs (5)

—

0.3

—

Unrealized loss (gain) on foreign exchange (6)

(1.9)

3.7

(1.1)

Impairment of goodwill (7)

—

151.1

—

Non-GAAP income before income taxes

$       44.4

$       20.7

$       21.8

Effective income tax rate on a GAAP basis

60.3 %

(4.7) %

457.1 %

Non-GAAP effective income tax rate

20.0 %

20.3 %

20.0 %

1

Amortization of intangible assets related to the Company's business acquisitions

2

Represents compensation expense for stock granted to employees and directors

3

Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures

4

Represents certain third party transaction costs related to the amended credit agreement and the previously capitalized costs of extinguished debt

5

Represents estimated costs related to certain legal proceedings

6

Represents unrealized foreign exchange gains and losses arising from the remeasurement of monetary assets and liabilities

7

 Represents non-cash charges related to the impairment of goodwill

8

Tax effect of items (1) through (7) above based on the non-GAAP tax rate

9

The Company's GAAP tax expense is generally higher than the Company's non-GAAP tax expense, primarily due to losses in the U.S. with full federal and state valuation allowances. The Company's non-GAAP tax rate and resulting non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position in effect

10

Non-GAAP diluted weighted-average common shares are adjusted to reflect the dilutive impact of our convertible note based on the higher note hedge strike price instead of the initial conversion price

SOURCE Ultra Clean Holdings, Inc.

ROCK HILL, S.C., Aug. 03, 2026 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE:DDD) announced today its financial results for the second quarter ended June 30, 2026.

Q2 2026 revenue of $94.6 million, down 0.3% year-over-year, but up 1.4% excluding divestitures, driven by continued acceleration of new printer sales, with double-digit growth in both metal and polymer hardware printer systems.Net loss was $(12.9) million for the quarter, while Adjusted EBITDA improved to a loss of $(0.8) million, reflecting benefits from previous cost reduction initiatives. For the first half of 2026, the Company reported a net loss of $(17.3) million and positive Adjusted EBITDA of $1.3 million.Healthcare continued as the Company's largest segment in the quarter, with revenue increasing 6.8% year-over-year, supported by over 20% growth in Med Tech and 3% growth in Dental.Industrial revenue declined 6.7% year-over year, or 3.7% excluding divestitures, while increasing 2.4% sequentially, driven by higher product sales and over 20% growth in Aerospace & Defense, our largest Industrial market, and Data Center Infrastructure.We remain focused on our four priority markets which all delivered more than 20% growth in the first half of 2026: Med Tech, Dental, Aerospace & Defense, and Data Center Infrastructure.  Summary of Financial Results
(Unaudited)
     Three Months Ended Six Months Ended(in millions, except per share data)June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025Revenue$94.6  $94.8  $190.1  $189.4 Gross profit 34.5   36.2   68.8   68.8 Gross profit margin 36.4%  38.1%  36.2%  36.4%Operating expense 45.1   51.5   86.1   121.0 Operating loss (10.6)  (15.4)  (17.3)  (52.1)Net (loss) income attributable to 3D Systems Corporation (12.9)  104.4   (17.3)  67.5 Diluted (loss) income per share (0.09)  0.57   (0.12)  0.37         Non-GAAP measures, excluding divestitures for year-over-year comparisons       Non-GAAP revenue 94.6   93.3   190.1   179.3 Non-GAAP gross profit margin 36.7%  38.2%  36.4%  34.3%Non-GAAP operating expense 39.5   44.6   76.1   101.2 Adjusted EBITDA (0.8)  (4.7)  1.3   (30.8)Non-GAAP diluted loss per share$(0.04) $(0.06) $(0.05) $(0.23)                 Summary Comments on Results

Dr. Jeffrey Graves, President and Chief Executive Officer of 3D Systems, said, “We are pleased with our second-quarter and first-half performance on both the top and bottom line. Revenue growth was driven by strength in our four key markets: Med Tech and Dental in Healthcare, and Aerospace & Defense and Data Center Infrastructure in Industrial. Data Center Infrastructure is an emerging focus area for us and includes applications in chip manufacturing equipment and high-performance computing. Customers in these markets continue to adopt 3D printing as a core manufacturing technology and are expanding the range of applications they deploy. This performance highlights the market-leading breadth of our additive manufacturing portfolio, spanning direct metal printing and all five major polymer technologies, combined with our deep expertise in advanced applications. Of particular note is the growing impact of metal 3D printing, where design flexibility combined with cost-effective production is enabling higher-performance components and systems.”

Dr. Graves concluded, “As the additive manufacturing industry continues to emerge from a multi-year downturn, our sustained investments in research and development are now enabling us to introduce a broad portfolio of new products that are gaining increasing customer traction. While the global economic environment remains uncertain, we are optimistic that, as capital investment activity strengthens, we are well positioned to benefit from the resulting expansion in global manufacturing capacity.”

“Adjusting for divestitures completed in 2025, total revenue increased 1.4% year over year and 6% for the first half of 2026, demonstrating continued core revenue growth in the year” said Phyllis Nordstrom, Chief Financial Officer of 3D Systems. “Strong growth in our key markets along with accelerated growth in new printer launches contributed to our success in the quarter. We continue to focus on refreshing our installed base as well as expanding our parts manufacturing capabilities to drive greater margin expansion and profitability as we look ahead.”

Second Quarter 2026 Results

Total revenue decreased 0.3% to $94.6 million compared to the prior year period. Adjusting for software divestitures completed in 2025, including Geomagic, 3DXpert and Oqton, total revenue increased by 1.4%.

Healthcare Solutions revenue increased approximately 6.8% to $48.1 million compared to the prior year period. Revenue growth was primarily driven by higher sales of new printer systems in Med Tech and continued growth in Personalized Healthcare Services.

Industrial Solutions revenue decreased approximately 6.7% to $46.5 million compared to the prior year period. Adjusting for divestitures, Industrial Solutions revenue decreased 3.7% year over year. The decline was primarily driven by the absence of revenue from a non-core product offering exited in the prior year and lower hardware services revenue.

Gross profit margin decreased to 36.4% compared to 38.1% in the prior year period. Non-GAAP gross profit margin decreased to 36.7% compared to 39.2% in the prior year period. Adjusting for software divestitures, non-GAAP gross profit margin decreased by 150 basis points. Gross profit was impacted by product mix, reflecting higher printer sales and select pricing impacts, partially offset by approximately $2.6 million of tariff refunds recovered in the quarter.

Net income attributable to 3D Systems Corporation decreased by $117.3 million to a loss of $(12.9) million compared to the prior year period. The decrease was primarily related to the gain on the sale of Geomagic and the gain on debt extinguishment recorded in the prior-year period, partially offset by improved operating margins and a lower income tax provision in the current period.

Adjusted EBITDA improved by $4.6 million, to $(0.8) million compared to the prior year period, driven primarily by the impact of prior cost reduction initiatives and the impact of tariff refunds recovered in the quarter. Adjusting for software divestitures, Adjusted EBITDA improved $3.9 million.

Financial Liquidity

During the second quarter 2026, the Company issued 18.9 million shares of common stock, par value $0.001 per share, for $53.2 million in cash, net of offering costs. At June 30, 2026, the Company had total cash of $129.0 million, which included cash and cash equivalents of $128.0 million and restricted cash of $1.0 million. A total of $3.9 million in principal amount of debt is scheduled to mature in the fourth quarter of 2026, with the remaining $92.0 million principal maturing in 2030.

Third Quarter 2026 Outlook

Revenue:$96 - $99 million  Adjusted EBITDA: ($3) million - ($1) million   3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The Company is unable to provide a quantitative reconciliation of forward-looking Adjusted EBITDA to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including litigation expenses, acquisition expenses, stock-based compensation expense, intangible amortization expense, restructuring expenses, and goodwill impairment, are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the Company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.

Second Quarter 2026 Conference Call and Webcast

The Company will host a conference call and simultaneous webcast to discuss these results on August 4, 2026, which may be accessed as follows:

Date: Tuesday, August 4, 2026
Time: 8:30 a.m. Eastern Time
Listen via webcast: www.3dsystems.com/investor
Participate via telephone: 877-407-8291 or 201-689-8345

A replay of the webcast will be available approximately two hours after the live presentation at www.3dsystems.com/investor.

Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding the timing of product launches, regulatory approvals, market opportunities, expected revenue impact, and shareholder value. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward-looking statements can be identified by terms such as "believes," "belief," "expects," "may," "will," "estimates," "intends," "anticipates" or "plans" or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions, and current expectations and may include comments as to the Company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the Company. The factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as of the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.

About 3D Systems

Nearly 40 years ago, Chuck Hull’s curiosity and desire to improve the way products were designed and manufactured gave birth to 3D printing, 3D Systems, and the additive manufacturing industry. Since then, that same spark continues to ignite the 3D Systems team as we work side-by-side with our customers to change the way industries innovate. As a full-service solutions partner, we deliver industry-leading 3D printing technologies, materials and software to high-value markets such as medical and dental; aerospace, space and defense; transportation and motorsports; AI infrastructure; and durable goods. Each application-specific solution is powered by the expertise and passion of our employees who endeavor to achieve our shared goal of Transforming Manufacturing for a Better Future. More information on the Company is available at www.3dsystems.com.

 3D SYSTEMS CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)    (in thousands, except par value)June 30, 2026 December 31, 2025ASSETS   Current assets:   Cash and cash equivalents$127,951  $95,635 Accounts receivable, net of reserves — $5,719 and $3,608 80,174   83,806 Inventories 121,847   127,496 Prepaid expenses and other current assets 35,639   39,770 Total current assets 365,611   346,707 Property and equipment, net 49,697   49,249 Intangible assets, net 15,646   16,614 Goodwill 15,404   15,575 Operating lease right-of-use assets 41,170   45,364 Finance lease right-of-use assets 7,160   7,774 Long-term deferred income tax assets 2,443   2,787 Other assets 38,113   37,658 Total assets$535,244  $521,728 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY   Current liabilities:   Current portion of long-term debt, net of deferred financing costs$3,944  $3,944 Current operating lease liabilities 9,266   11,583 Accounts payable 32,425   41,017 Accrued and other liabilities 39,781   46,656 Customer deposits and deferred revenue 22,182   17,423 Total current liabilities 107,598   120,623 Long-term debt, net of deferred financing costs 87,240   86,394 Long-term operating lease liabilities 41,238   45,420 Long-term deferred income tax liabilities 2,818   2,740 Other liabilities 22,787   24,000 Total liabilities 261,681   279,177 Commitments and contingencies   Redeemable non-controlling interest —   2,193 Stockholders’ equity:   Preferred stock, 5,000 shares authorized; $0.001 par value; no shares issued and outstanding as of June 30, 2026 and December 31, 2025 —   — Common stock, $0.001 par value, authorized 220,000 shares; shares issued 166,149 and 145,581 as of June 30, 2026 and December 31, 2025, respectively 166   146 Additional paid-in capital 1,677,775   1,620,399 Accumulated deficit (1,349,645)  (1,332,360)Accumulated other comprehensive loss (54,733)  (47,827)Total stockholders’ equity 273,563   240,358 Total liabilities, redeemable non-controlling interest and stockholders’ equity$535,244  $521,728           3D SYSTEMS CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
     Three Months Ended Six Months Ended(in thousands, except per share amounts)June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025Revenue:       Products$54,842  $53,801  $112,610  $108,524 Services 39,737   41,037   77,507   80,854 Total revenue 94,579   94,838   190,117   189,378 Cost of sales:       Products 35,845   32,274   71,932   69,639 Services 24,272   26,414   49,380   50,900 Total cost of sales 60,117   58,688   121,312   120,539 Gross profit 34,462   36,150   68,805   68,839 Operating expenses:       Selling, general and administrative 35,135   34,139   66,483   83,908 Research and development 9,972   17,361   19,607   37,044 Total operating expenses 45,107   51,500   86,090   120,952 Loss from operations (10,645)  (15,350)  (17,285)  (52,113)Non-operating (loss) income:       Foreign exchange gain (loss), net 1,464   (1,591)  4,102   (452)Interest income 575   1,717   1,159   2,670 Interest expense (2,155)  (697)  (4,319)  (1,278)Gain on disposition —   125,681   —   125,681 Other (loss) income, net (839)  7,020   2,689   6,860 Total non-operating (loss) income (955)  132,130   3,631   133,481 Net (loss) income before income taxes (11,600)  116,780   (13,654)  81,368 Provision for income taxes (354)  (11,018)  (1,837)  (11,689)Loss on equity method investments, net of income taxes (907)  (1,326)  (1,953)  (2,229)Net (loss) income before redeemable non-controlling interest (12,861)  104,436   (17,444)  67,450 Less: net loss attributable to redeemable non-controlling interest —   —   (159)  — Net (loss) income attributable to 3D Systems Corporation$(12,861) $104,436  $(17,285) $67,450         Net (loss) income per common share:       Basic$(0.09) $0.79  $(0.12) $0.51 Diluted$(0.09) $0.57  $(0.12) $0.37         Weighted average shares outstanding:       Basic 148,968   132,280   146,130   132,370 Diluted 148,968   182,716   146,130   183,237                   3D SYSTEMS CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
   Six Months Ended(in thousands)June 30, 2026 June 30, 2025OPERATING ACTIVITIES   Net (loss) income before redeemable non-controlling interest$(17,444) $67,450 Adjustments to reconcile net (loss) income to net cash used in operating activities:   Depreciation and amortization 10,186   10,907 Amortization of debt issuance costs 1,023   652 Stock-based compensation 4,615   607 Non-cash operating lease expense 6,105   2,371 Provision for inventory obsolescence 4,453   2,130 Provision for bad debts 2,348   1,622 Gain on the disposition of businesses, property, equipment and other assets (95)  (125,825)Gain on debt extinguishment —   (8,203)Provision for deferred income taxes and reserve adjustments 714   (3,124)Gain on disposal of investment (2,576)  — Loss on equity method investment, net of taxes 1,953   2,229 Changes in operating accounts:   Accounts receivable (2,966)  9,394 Inventories (2,588)  (11,137)Prepaid expenses and other current assets 3,161   (6,362)Accounts payable (8,761)  (8,142)Deferred revenue and customer deposits 8,285   7,094 Accrued and other liabilities (9,521)  5,009 All other operating activities (12,998)  (6,302)Net cash used in operating activities (14,106)  (59,630)INVESTING ACTIVITIES   Purchases of property and equipment (5,890)  (5,743)Proceeds from sale of assets and businesses, net of cash sold 100   119,400 Acquisitions and other investments, net of cash acquired —   (900)Other investing activities (80)  174 Net cash (used in) provided by investing activities (5,870)  112,931 FINANCING ACTIVITIES   Proceeds from equity offering 53,825   — Equity issuance costs (127)  — Proceeds from borrowings and long-term debt —   92,030 Repayment of borrowings and long-term debt —   (169,987)Debt issuance costs —   (3,425)Stock repurchases —   (14,960)Purchase of non-controlling interests (498)  — Taxes paid related to net-share settlement of equity awards (434)  (605)Other financing activities (824)  (393)Net cash provided by (used in) financing activities 51,942   (97,340)Effect of exchange rate changes on cash, cash equivalents and restricted cash (71)  5,104 Net increase (decrease) in cash, cash equivalents and restricted cash 31,895   (38,935)Cash, cash equivalents and restricted cash at the beginning of the year 97,100   172,883 Cash, cash equivalents and restricted cash at the end of the period$128,995  $133,948           3D SYSTEMS CORPORATION
Segment Information
(Unaudited)
       Three Months Ended
 Six Months Ended
(in millions)June 30, 2026
 June 30, 2025
 June 30, 2026
 June 30, 2025
Revenue:           Healthcare Solutions$48.1  $45.0  $98.2  $86.3 Industrial Solutions 46.5   49.8   91.9   103.0 Total$94.6  $94.8  $190.1  $189.4                   3D SYSTEMS CORPORATION
Reconciliations of GAAP to Non-GAAP Measures  Presentation of Information in this Press Release

3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: adjusted revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, non-GAAP operating expense and Adjusted EBITDA. These non-GAAP measures exclude certain items that management does not view as part of 3D Systems’ core results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide meaningful information regarding the comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems’ non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated in the same manner as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.

To calculate the non-GAAP measures, 3D Systems excludes the impact of the following items:

amortization of intangible assets, a non-cash expense, as 3D Systems’ intangible assets were primarily acquired in connection with business combinations;costs incurred in connection with acquisitions and divestitures, such as legal, consulting and advisory fees;stock-based compensation expenses, a non-cash expense;charges related to restructuring and cost optimization plans, impairment charges, including goodwill, and divestiture gains or losses;the impact of software divestitures, which were previously included in our Industrial Solutions segment, for pre-divestiture periods in 2025; andcosts, including legal fees, related to significant or unusual litigation matters. Amortization of intangibles and acquisition and divestiture-related costs are excluded from non-GAAP measures as the timing and magnitude of business combination transactions are not predictable, can vary significantly from period to period and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition. Amortization of intangible assets will recur in future periods until such intangible assets have been fully amortized. While intangible assets contribute to the company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the company’s products or services. Additionally, intangible assets amortization expense typically fluctuates based on the size and timing of the company’s acquisition activity. Accordingly, the company believes excluding the amortization of intangible assets enhances the company’s and investors’ ability to compare the company’s past financial performance with its current performance and to analyze underlying business performance and trends. Although stock-based compensation is a key incentive offered to certain of our employees, the expense is non-cash in nature, and we continue to evaluate our business performance excluding stock-based compensation; therefore, it is excluded from non-GAAP measures. Stock-based compensation expenses will recur in future periods. Charges related to restructuring and cost optimization plans, impairment charges, including goodwill, divestiture gains or losses, and the costs, including legal fees, related to significant or unusual litigation matters are excluded from non-GAAP measures as the frequency and magnitude of these activities may vary widely from period to period. Additionally, impairment charges, including goodwill, are non-cash. Furthermore, the company believes the costs, including legal fees, related to significant or unusual litigation matters are not indicative of our core business' operations.

The matters discussed above are tax effected, as applicable, in calculating non-GAAP diluted income (loss) per share.

Adjusted EBITDA, defined as net (loss) income, plus income tax (provision) benefit, interest and other income (expense), net, stock-based compensation expense, amortization of intangible assets, depreciation expense, and other non-GAAP adjustments, all as described above, is used by management to evaluate performance and helps measure financial performance period-over-period.

Furthermore, in this press release, 3D Systems reports certain non-GAAP financial measures further adjusted to remove the operating activity related to (i) Geomagic, which the Company divested on April 1, 2025, for $119.4 million in cash, and (ii) 3DXpert and Oqton, which the Company divested on October 31, 2025, for $3.3 million in cash plus a revenue-based royalty of up to $12.9 million (together with Geomagic, the "Software Divestitures"), for periods non-comparable on a year over year basis. The Company believes excluding non-comparable periods allows it to include the operating activity related to Software Divestitures only to the extent that results are comparable year over year.

A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules.

Certain columns may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in thousands.

3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The Company is unable to provide a quantitative reconciliation of forward-looking Adjusted EBITDA to the most directly comparable forward-looking GAAP measure without unreasonable effort because certain items, including litigation costs, acquisition expenses, stock-based compensation expense, intangible assets amortization expense, restructuring expenses, and goodwill impairment charges, are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the Company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.

Non-GAAP Revenue (Unaudited)

 Three Months Ended Six Months Ended(in millions)June 30, 2026
 June 30, 2025 June 30, 2026
 June 30, 2025Revenue$94.6  $94.8  $190.1  $189.4 Software divestitures —   (1.5)  —   (10.1)Revenue excluding software divestitures (Non-GAAP)$94.6  $93.3  $190.1  $179.3                  Non-GAAP Industrial Revenue (Unaudited)

 Three Months Ended Six Months Ended(in millions)June 30, 2026
 June 30, 2025 June 30, 2026
 June 30, 2025Industrial Revenue$46.5  $49.8  $91.9  $103.0 Software divestitures —   (1.5)  —   (10.1)Industrial Revenue excluding software divestitures (Non-GAAP)$46.5  $48.3  $91.9  $93.0                  Non-GAAP Gross Profit and Gross Profit Margin (Unaudited)

 Three Months Ended(in millions)June 30, 2026 June 30, 2025 Gross Profit
 Gross Profit Margin(1) Gross Profit Gross Profit Margin(1)Gross profit (GAAP)$34.5  36.4% $36.2  38.1%Amortization expense 0.2  0.2%  0.2  0.2%Restructuring expense —  —%  0.8  0.9%Gross profit (Non-GAAP)$34.7  36.7% $37.2  39.2%Software divestitures —  —%  (1.6) (1.0)%Gross profit excluding software divestitures (Non-GAAP)$34.7  36.7% $35.7  38.2%               (1) Calculated as non-GAAP gross profit as a percentage of total revenue.

 Six Months Ended(in millions)June 30, 2026 June 30, 2025 Gross Profit
 Gross Profit Margin(1) Gross Profit Gross Profit Margin(1)Gross profit (GAAP)$68.8  36.2% $68.8  36.4%Amortization expense 0.3  0.2%  0.4  0.2%Restructuring expense —  —%  1.0  0.5%Gross profit (Non-GAAP)$69.1  36.4% $70.2  37.1%Software divestitures —  —%  (8.7) (2.8)%Gross profit excluding software divestitures (Non-GAAP)$69.1  36.4% $61.5  34.3%               (1) Calculated as non-GAAP gross profit as a percentage of total revenue.

Non-GAAP Operating Expense (Unaudited)

 Three Months Ended Six Months Ended(in millions)June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025Operating expense (GAAP)$45.1  $51.5  $86.1  $121.0 Amortization expense (0.8)  (0.7)  (1.4)  (1.6)Stock-based compensation expense (2.3)  3.6   (4.6)  (0.6)Acquisition and divestiture-related expense —   (0.2)  (0.2)  (1.1)Legal and other expense (2.4)  (3.0)  (3.5)  (4.2)Restructuring expense —   (4.3)  (0.2)  (5.1)Non-GAAP operating expense$39.5  $46.8  $76.1  $108.4 Software divestitures —   (2.2)  —   (7.2)Non-GAAP operating expenses excluding software divestitures$39.5  $44.6  $76.1  $101.2                  Net (Loss) Income Attributable to 3D Systems Corporation to Adjusted EBITDA (Unaudited)

 Three Months Ended Six Months Ended(in millions)June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025Net (loss) income attributable to 3D Systems Corporation (GAAP)$(12.9) $104.4  $(17.3) $67.5 Interest expense (income), net 1.6   (1.0)  3.2   (1.4)Provision for income taxes 0.4   11.0   1.8   11.7 Depreciation expense 4.1   4.3   8.3   8.9 Amortization expense 1.0   0.9   1.7   2.0 EBITDA (Non-GAAP) (5.8)  119.6   (2.3)  88.7 Stock-based compensation expense 2.3   (3.6)  4.6   0.6 Acquisition and divestiture-related expense —   0.2   0.2   1.1 Legal and other expense 2.4   3.1   3.5   4.2 Restructuring expense —   5.1   0.2   6.1 Net loss attributable to redeemable non-controlling interest —   —   (0.2)  — Loss on equity method investment, net of tax 0.9   1.3   2.0   2.2 Gain on repurchase of debt —   (8.2)  —   (8.2)Gain on disposal of investment —   —   (2.6)  — Gain on disposition —   (125.7)  —   (125.7)Other non-operating income (0.6)  2.8   (4.2)  1.8 Adjusted EBITDA (Non-GAAP)$(0.8) $(5.3) $1.3  $(29.3)Software divestitures —   0.7   —   (1.6)Adjusted EBITDA (Non-GAAP) excluding software divestitures$(0.8) $(4.7) $1.3  $(30.8)                 Diluted Loss per Share (Unaudited)

 Three Months Ended Six Months Ended(in dollars)June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025Diluted (loss) income per share (GAAP)$(0.09) $0.57  $(0.12) $0.37 Amortization expense 0.01   0.01   0.01   0.01 Stock-based compensation expense 0.02   (0.02)  0.03   — Acquisition and divestiture-related expense —   —   —   0.01 Legal and other expense 0.02   0.02   0.02   0.02 Restructuring expense —   0.03   —   0.03 Gain on repurchase of debt —   (0.04)  —   (0.04)Gain on disposal of investment —   —   (0.02)  — Gain on disposition —   (0.69)  —   (0.69)Loss on equity method investment and other 0.01   0.01   0.01   0.02 Tax effect of the adjustments reflected above —   0.05   —   0.05 Non-GAAP diluted loss per share$(0.04) $(0.07) $(0.05) $(0.22)Software divestitures —   0.01   —   (0.01)Non-GAAP diluted loss per share excluding software divestitures$(0.04) $(0.06) $(0.05) $(0.23)                

August 03, 2026 16:05 ET  | Source: Powell Industries, Inc.

HOUSTON, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Powell Industries, Inc. (NASDAQ: POWL) (“Powell” or the “Company”), a leading supplier of custom-engineered solutions for the management, control and distribution of electrical energy, today announced results for the third quarter Fiscal 2026 ended June 30, 2026. All comparisons are to the third quarter of Fiscal 2025, unless otherwise noted.

Key Highlights: 

Revenues of $312 million increased 9%;Gross profit of $95 million, or 30.6% of revenue, increased 8%;Net income of $52 million, or $1.42 per diluted share(1), increased 8%;New orders(2) totaled $934 million, an increase of 158%;Backlog(3) as of June 30, 2026 totaled $2.4 billion, an increase of 69%;Cash and short-term investments as of June 30, 2026 totaled $634 million;Powell was awarded three mega(4) orders during the fiscal third quarter, including the previously announced data center order with a value exceeding $400 million, as well as orders in the Petrochemical market and the LNG end market. Brett A. Cope, Powell’s Chairman and Chief Executive Officer, stated, “Commercial momentum across our key end markets continues to accelerate as Powell was awarded a record $934 million of new orders(2) in the quarter and reported a book-to-bill ratio of 3.0x. Activity levels across Oil and Gas, Electric Utility and Commercial and Industrial end markets have remained very robust, highlighted in this most recent quarter by our previously announced mega(4) data center order with a value in excess of $400 million, as well as two additional mega(4) orders; one within the LNG end market that approximated $60 million and the other a Petrochemical order for roughly $75 million. The Powell team also continues to focus on strong project execution as we deliver our record backlog(3), demonstrated by a strong gross margin performance of 30.6%.”

Third Quarter Fiscal 2026 Results
Revenues totaled $312 million, an increase of 9% compared to $286.3 million in the prior year, and a sequential increase of 5% compared to $296.6 million in the second quarter of Fiscal 2026. The growth compared to the prior year was driven by higher revenue levels from the Commercial & Other Industrial market, which grew 54%, as well as from the Electric Utility market, which grew 18%. This was partially offset by lower revenue within the Petrochemical market, which declined 49%.

Gross profit of $95.3 million, or 30.6% of revenue, increased 8% compared to $87.9 million, or 30.7% of revenue, in the prior year and increased sequentially by 8% compared to $87.9 million, or 29.6% of revenue in the second quarter of Fiscal 2026. The increases in gross profit were primarily driven by higher volume levels and a continued strong and stable pricing environment.

New orders(2) totaled $934 million compared to $362 million in the prior year and $490 million in the second quarter of Fiscal 2026. The increases were driven by improved bookings predominantly within the Commercial & Other Industrial, Oil & Gas, and Petrochemical markets. During the quarter, the Company was awarded three mega(4) orders; one for a data center with a value exceeding $400 million related to a behind-the-meter design of on-site generation assets, a Petrochemical order with a value of approximately $75 million in the fertilizer industry, and a LNG order with a value of approximately $60 million to support the liquefaction and export of LNG along the U.S. Gulf Coast.

 Backlog(3) totaled $2.4 billion as of June 30, 2026, an increase of 69% compared to $1.4 billion as of June 30, 2025, and a sequential increase of 35% compared to $1.8 billion as of March 31, 2026.

Net income of $52.2 million, or $1.42 per diluted share(1), increased 8% compared to $48.2 million, or $1.32 per diluted share(1) in the prior year. The increase was the result of higher revenues coupled with strong gross margins during the quarter. Net income in the quarter increased sequentially by 14% compared to $45.9 million, or $1.25 per diluted share(1) in the second quarter of Fiscal 2026.

 On April 2, 2026, Powell effected a three-for-one forward split of our common stock and proportionately increased the number of authorized common stock from 30,000,000 to 90,000,000. Each shareholder of record as of the close of trading on March 20, 2026 (the “Record Date”) received, after the close of trading on April 2, 2026, two additional shares for every one share held on the Record Date. Trading began on a split-adjusted basis at market open on April 6, 2026.

OUTLOOK
Commenting on the Company’s expectations for the remainder of Fiscal 2026, Cope added, “The outlook for each of our core end markets are highly favorable, supported by durable and diverse demand drivers, including the continuation of U.S. LNG in the global energy landscape, growth in utility generation coupled with ongoing grid strengthening initiatives, as well as increasing demand to support data centers and related AI capacity demand. We anticipate activity across each of our core markets will remain robust. Our near-to-midterm focus remains on ensuring that Powell is adequately positioned to address these thematic, secular tailwinds driving the growing demand for electrical distribution equipment and custom, engineered-to-order solutions.”

Michael Metcalf, Powell’s Chief Financial Officer, commented, “Our strong project execution levels, combined with our growing backlog(3) and its overall composition across our core end markets, make us confident that Powell will deliver another very strong year of financial results as we close out Fiscal 2026 and look ahead to Fiscal 2027. We expect that gross margins will maintain levels consistent to the trailing twelve months, while prudently adding capacity to support the acceleration in our backlog(3). The expansion of our Jacintoport fabrication yard is expected to be completed by the close of Fiscal 2026, and we anticipate production to ramp up as we leverage this additional capacity to support recent core industrial project awards. We are also evaluating greenfield capacity expansions incremental to our added leased capacity in Houston and Ohio, while prioritizing adequate returns and ensuring the optimal manufacturing footprint for Powell over the long term.”

CONFERENCE CALL
Powell Industries has scheduled a conference call for Tuesday, August 4, 2026 at 11:00 a.m. Eastern time. To participate in the conference call, dial 1-833-953-2431 (domestic) or 1-412-317-5760 (international) at least 10 minutes before the call begins and ask for the Powell Industries conference call. A telephonic replay of the conference call will be available through August 11, 2026 and may be accessed by calling 1-855-669-9658 (domestic) or 1-412-317-0088 (international) and using passcode 3105582#.

 Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting powellind.com. To listen to the live call on the web, please visit the website at least 15 minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately twelve months at powellind.com.

About Powell Industries
Powell Industries, Inc., headquartered in Houston, Texas, develops, designs, manufactures and services custom-engineered equipment and systems that distribute, control and monitor the flow of electrical energy and provide protection to motors, transformers and other electrically powered equipment. Powell Industries, Inc. primarily serves the oil and gas and petrochemical markets, the electric utility market, and commercial and other industrial markets. Beyond these major markets, we also provide products and services to the light rail traction power market and other markets that include universities and government entities. We are continuously developing new channels to electrical markets through original equipment manufacturers and distribution market channels. For more information, please visit powellind.com.

Any forward-looking statements in the preceding paragraphs of this release, including those related to our outlook, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials, the impact of tariffs and execution of business strategy. In addition, our backlog(3) may not be indicative of future operating results as orders may be cancelled or modified by our customers and associated backlog may not be recognized as revenue on the timeline we expect or at all. For further information, please refer to the Company’s filings with the Securities and Exchange Commission (the “SEC”), copies of which are available from the Company without charge. 

Investors should note that we announce material financial information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, we may use the Investors section of our website to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated to, this release.

POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     Three Months Ended
June 30, Nine Months Ended
June 30, 2026 2025 2026 2025(In thousands, except per share data)        (Unaudited)        Revenues$311,740  $286,273  $859,539  $806,335 Cost of goods sold216,441  198,374  604,886  575,480 Gross profit95,299 87,899 254,653 230,855        Selling, general and administrative expenses26,702  25,116  77,703  68,359 Research and development expenses4,300  2,659  11,856  7,881 Amortization of intangible assets221  —  666  — Operating income64,076  60,124  164,428  154,615         Other expenses (income):       Interest income, net(5,047) (3,977) (13,515) (11,397)Income before income taxes69,123  64,101  177,943  166,012 Income tax provision16,963  15,867  38,506  36,685 Net income$52,160  $48,234  $139,437  $129,327         Earnings per share(1):       Basic$1.43  $1.33  $3.83  $3.57 Diluted$1.42  $1.32  $3.81  $3.54         Weighted average shares(1):       Basic36,432  36,212  36,396  36,176 Diluted36,604  36,525  36,566  36,497                 SELECTED FINANCIAL DATA:               Depreciation and Amortization$2,165  $1,742  $6,496  $5,215 Capital Expenditures$6,525  $5,117  $10,386  $11,380 Dividends Paid$3,279  $3,228  $9,792  $9,640  POWELL INDUSTRIES, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS     June 30, 2026 September 30, 2025(In thousands)  (Unaudited)  Assets:       Cash, cash equivalents and short-term investments$633,561  $475,527     All other current assets597,610  456,189     Property, plant and equipment, net118,634  111,049     Long-term assets56,893  66,219     Total assets$1,406,698  $1,108,984         Liabilities and equity:       Current liabilities$624,650  $446,387     Deferred and other long-term liabilities................................25,864 21,827    Stockholders’ equity.756,184  640,770     Total liabilities and stockholders’ equity$1,406,698  $1,108,984     SELECTED FINANCIAL DATA:       Working capital(5)$606,521  $485,329  (1) On April 2, 2026, the Company effected a three-for-one forward split of its common stock (the “Stock Split”). Share and per-share amounts disclosed for all periods have been retroactively adjusted to reflect the effect of the Stock Split.(2) New orders (bookings) represent the estimated value of contracts added to existing backlog (unsatisfied performance obligations).(3) The amounts recorded in backlog may not be a reliable indicator of our future operating results and may not be indicative of continuing revenue performance over future fiscal quarters or years primarily due to unexpected contract adjustments, cancellations or scope reductions.(4) A mega order is defined as an order with a contract value exceeding $50 million.(5) Working capital is equal to current assets (including cash and short-term investments) minus current liabilities.    Contacts:Michael W. Metcalf, CFO Powell Industries, Inc. 713-947-4422   Robert Winters Alpha IR Group [email protected] 312-445-2870

One of the most controversial aspects of Space Exploration Technologies Corp (SPCX +5.62%), more commonly known as SpaceX, is the significant ownership and voting control held by CEO Elon Musk. With 42% ownership stake and more than 80% of the voting power, Musk doesn't have to worry about shareholders potentially removing him, even if they disagree with the company's performance. The power Musk yields with the company has been one of the more striking and controversial features of the stock.

For Musk, however, the reason for this type of structure is simple. He says it's to ensure that he can remain focused on the long term.

Image source: Getty Images.

Musk's vision could take considerable time to play out Musk sees considerable opportunities for SpaceX in the future, not only in space but also in artificial intelligence. Putting data centers into space and helping humans get to Mars one day are extremely lofty goals, which will likely take several years, even under ideal conditions. Thus, getting bogged down by shareholder expectations and needing to please Wall Street can be challenging while still focusing on the space's company's long-term goals.

In a recent interview with The Economist, Musk clarified why so much control for him is necessary. "I really just need to make sure that I can focus on long term," Musk said, believing that will give him sufficient power to control the path of the company. And by long term, he clarified he was referring to a time frame of five to 10 years.

Today's Change

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5.62

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6.09

Current Price

$

114.46

SpaceX's opportunities are significant, but the stock carries plenty of risk In SpaceX's S-1 filing, the company outlined a massive total addressable market of $28.5 trillion, and that growth potential was a big reason investors were bullish about the stock when it first went public in June. The growth story was so compelling that even at a market cap of around $2 trillion, investors wanted to take a chance on the business.

However, SpaceX stock has proven to be volatile since then. On Friday, it closed below $109 and was down more than 50% from the highs it hit in June, when euphoria sent it to more than $225. This type of volatility may be inevitable around a company with such a high valuation and so much uncertainty around its future. With SpaceX unprofitable and needing significant cash infusions to grow in the long run, investors will need to be incredibly patient with the stock, as it may take a long time for the company to realize its goals.

Meta Platforms (META +6.02%) stock jumped 6.6% through 1:15 p.m. ET Monday after Morgan Stanley analysts reassured investors about the company's prospects amid record investment in AI infrastructure.

Image source: The Motley Fool.

Meta Q2 earnings Meta disappointed investors last week, reporting only a $6.18 per share profit where analysts had expected $7.17 -- despite beating on revenue. Meta stock sold off after the report, so why is it bouncing back so quickly today?

Investors didn't like it when Meta confirmed plans to spend as much as $145 billion on capital investment this year, especially not after seeing Meta's investments take such a big bite out of profits in the quarter.

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What Morgan Stanley said about Meta's spending But Morgan Stanley says it's OK for Meta to keep spending -- because everyone else is... and it's paying off for them.

All four of the big AI hyperscalers are spending gobs of money on AI investment right now, with Alphabet (GOOG +4.44%) announcing plans to spend $195 billion to $205 billion, Amazon (AMZN +4.58%) a bit more at $220 billion from $200 billion, and Microsoft (MSFT +4.93%) a bit less at about $190 billion.

Total cloud capital expenditure could exceed $1.2 trillion in 2027, says MS. However, "strong operating cash flow, equity and debt financing, leasing strategies, custom chips, and infrastructure efficiencies are helping fund capex while easing free cash flow pressure." Indeed, despite all the spending, Meta has generated $41 billion in positive FCF over the past 12 months.

The bad news: By the end of this year, most analysts expect Meta's free cash flow will turn negative -- and remain negative through 2027, as cash burn accelerates. How long they can keep that up, and whether investors will forgive them for it, remains to be seen.

Rich Smith has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

Results land on Tuesday after-hours with data centre revenue expected to double and the sector in retreat

Advanced Micro Devices Inc's (NASDAQ:AMD, XETRA:AMD) second-quarter print is the official set-piece since a sharp reversal in sentiment towards semiconductor stocks.

The Philadelphia Semiconductor index has fallen roughly 20% from its late-June peak, wiping more than $1 trillion from the value of chipmakers worldwide, even though it remains up around 90% over 12 months.

The retreat has been driven by doubts about whether hyperscalers can sustain their current rate of spending on artificial intelligence infrastructure, rather than by any deterioration in demand.

Fresh worries about Chinese competition in memory chips, and about the circular financing arrangements linking chip suppliers to their largest customers, have compounded the mood.

AMD shares closed at $476.15 on Friday, having been quoted above $550 a fortnight ago, though they remain up sharply over the past year.

The numbers themselves are expected to be striking.

Analysts forecast earnings of about $1.62 a share on revenue of $11.3 billion, against $0.48 and $7.6 billion in the same quarter last year.

The company had guided to $11.2 billion, give or take $300 million, with a non-GAAP gross margin near 56%.

Data centre revenue is expected to have more than doubled to roughly $6.5 billion from $3.2 billion, with server processor sales growing more than 70%.

The client division, which supplies chips for personal computers, is forecast to bring in around $3 billion, up 20%, while gaming is expected to fall 30% to $781 million.

Rising memory prices are squeezing the PC market, a headwind for both AMD and Intel in the coming quarters.

Attention will focus less on the quarter just gone than on execution of the Helios rack-scale system, which AMD says entered full production last month.

Helios packs 72 of the company's MI455X accelerators alongside its Venice server processors and Pensando networking, priced at roughly $5 million to $5.5 million a rack, and is pitched directly against Nvidia's rival systems.

Lisa Su, chief executive, has claimed the rack delivers 15% more compute performance than Nvidia's Vera Rubin, 50% more high-bandwidth memory and 30% more output per dollar spent.

First customer shipments are due late in the third quarter, meaning meaningful revenue will not arrive until the fourth.

AMD has commitments from OpenAI for up to six gigawatts of capacity and from Anthropic for up to two, alongside deployments at Microsoft.

The constraint is HBM4 memory, the scarcest component in the AI supply chain, and one AMD does not control.