Market Signal Briefing

COSTA MESA, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its third quarter ended September 27, 2025.

Third Quarter 2025 Recap

Net Revenue was $212.6 million, an increase of 6% over Q3 2024Gross margin of 26.6%, year-over-year growth of 40 bpsNet loss of $64.4 million or $4.30 per share, or 30.3% of revenueNon-GAAP adjusted net income of $15.2 million (increase of 2% year-over-year), or $0.99 per diluted shareAdjusted EBITDA of $34.4 million (increase of 8% year-over-year), or 16.2% of revenue, up 40 bps year-over-year “Ducommun had another excellent quarter as we continued to make solid progress towards our VISION 2027 goals with both gross margin and Adjusted EBITDA margin at record levels. Net revenue grew 6% to a new quarterly record of $212.6 million, led by strength in our defense business which offset the continued headwinds in commercial aerospace OEM demand which was previously forecasted,” said Stephen G. Oswald, chairman, president and chief executive officer. “Ducommun’s Missile franchise continued to see strong growth in the quarter along with our military rotorcraft and fixed-wing platforms. Commercial aerospace was weak across the board and destocking continued to impact revenues despite growing production rates at the OEMs, which is very encouraging. The FAA's recent decision to allow Boeing to increase production rates on the 737 MAX to 42 aircraft per month is a big positive and a faster ramp-up in production rates will certainly help burn down the inventory in the system. We were also very pleased to see the Book to Bill ratio very strong for the Company at 1.6 times which established a new record for remaining performance obligations (“RPO”) for the Company.

“Ducommun continues to make strong progress as well in its margin expansion journey with gross margins expanding 40 bps year-over-year to 26.6%, continuing the strong momentum from the first half of the year, also at 26.6%. Adjusted EBITDA exceeded $30 million for the third consecutive quarter, expanding 40 bps year-over-year from 15.8% to 16.2% and keeping us on a good pace to meet the VISION 2027 financial goal of 18% Adjusted EBITDA with nine quarters remaining.

“The tariff environment continues to evolve but we currently do not expect it to have any material impact on our financial outlook. Ducommun is largely a U.S. manufacturer with U.S. workers and our domestic facilities generate more than 95% of Ducommun’s revenue. We are also making progress in putting in plans to largely mitigate raw materials tariff exposures through either duty exemptions on military products or by passing through to our customers under the terms of our contracts.

“In summary, Q3 was another strong performance and full year 2025 is positioned to be another record year for the Company. We are very optimistic for greater revenue growth year-over-year to close out 2025 and beyond as market demand continues to strengthen in both defense and commercial aerospace.”

Third Quarter Results

Net revenue for the third quarter of 2025 was $212.6 million compared to $201.4 million for the third quarter of 2024. The year-over-year increase was primarily due to the following in the Company's key end-use markets:

$14.2 million higher revenue in the Company’s military and space end-use markets due to higher rates on selected missiles, fixed-wing aircraft, rotary-wing aircraft, and ground vehicle weapon platforms; partially offset by$8.1 million lower revenue in the Company’s commercial aerospace end-use markets due to lower rates on business jet aircraft and large aircraft platforms. In addition, revenue for the Company’s industrial end-use markets for the third quarter of 2025 increased $5.1 million compared to the third quarter of 2024 mainly due to restocking and last time buys.

Net loss for the third quarter of 2025 was $(64.4) million, or (30.3)% of revenue, or $(4.30) per share, compared to net income of $10.1 million, or 5.0% revenue, or $0.67 per diluted share, for the third quarter of 2024. This reflects higher litigation settlement and related costs, net, of $99.7 million, partially offset by lower income tax expense of $19.8 million and higher gross profit of $3.8 million.

Gross profit for the third quarter of 2025 was $56.5 million, or 26.6% of revenue, compared to gross profit of $52.7 million, or 26.2% of revenue, for the third quarter of 2024. The increase in gross profit as a percentage of net revenue year-over-year was primarily due to lower other manufacturing costs and lower restructuring charges as a result of nearing the completion of the wind down of the Monrovia performance center, partially offset by unfavorable product mix.

Operating loss for the third quarter of 2025 was $80.1 million, or 37.7% of revenue, compared to operating income of $15.3 million, or 7.6% of revenue, in the comparable period last year. The year-over-year decrease of $95.3 million was primarily due to higher litigation settlement and related costs, net, partially offset by higher gross profit and lower restructuring charges. Non-GAAP adjusted operating income for the third quarter of 2025 was $22.4 million, or 10.6% of revenue, compared to $21.1 million, or 10.5% of revenue, in the comparable period last year. The year-over-year increase was primarily due to better operating leverage from higher revenue and gross profit.

Adjusted EBITDA for the third quarter of 2025 was $34.4 million, or 16.2% of revenue, compared to $31.9 million, or 15.8% of revenue, for the comparable period in 2024.

Interest expense for the third quarter of 2025 was $2.9 million compared to $3.8 million in the comparable period of 2024. The year-over-year decrease was primarily due lower interest rates along with a lower debt balance.

During the third quarter of 2025, the net cash provided by operations was $18.1 million compared to $13.9 million during the third quarter of 2024. The higher net cash provided by operations during the third quarter of 2025 was primarily due to the litigation settlement and related costs, net, which impacted net loss but has not yet been paid, lower accounts receivable, partially offset by lower contract liabilities, higher contract assets, and lower accrued and other liabilities.

Business Segment Information

Electronic Systems

Electronic Systems segment net revenue for the quarter ended September 27, 2025 was $123.1 million, compared to $115.4 million for the third quarter of 2024. The year-over-year increase was primarily due to the following in the Company's key end-use markets:

$8.2 million higher revenue within the Company’s military and space end-use markets due to higher rates on selected missile and fixed-wing aircraft platforms, partially offset by lower rates on electronic warfare platforms; partially offset by$5.6 million lower revenue in the Company’s commercial aerospace end-use markets due to lower rates on large aircraft platforms. In addition, revenue for the Company’s industrial end-use markets for the third quarter of 2025 increased $5.1 million compared to the third quarter of 2024 mainly due to some restocking and last time buys.

Electronic Systems segment operating income for the quarter ended September 27, 2025 was $21.1 million, or 17.1% of revenue, compared to $18.9 million, or 16.4% of revenue, for the comparable quarter in 2024. The year-over-year increase of $2.2 million was primarily due to higher manufacturing volume. Non-GAAP adjusted operating income for the third quarter of 2025 was $21.5 million, or 17.5% of revenue, compared to $19.4 million, or 16.8% of revenue, in the comparable period last year.

Structural Systems

Structural Systems segment net revenue for the quarter ended September 27, 2025 was $89.5 million, compared to $86.0 million for the third quarter of 2024. The year-over-year increase was primarily due to the following:

$6.0 million higher revenue within the Company’s military and space end-use markets due to higher rates on selected rotary-wing aircraft and ground vehicle weapon platforms; partially offset by$2.5 million lower revenue within the Company’s commercial aerospace end-use markets due to lower rates on business jet aircraft platforms, partially offset by higher rates on large aircraft platforms. Structural Systems segment operating income for the quarter ended September 27, 2025 was $11.9 million, or 13.3% of revenue, compared to $8.3 million, or 9.6% of revenue, for the comparable quarter in 2024. The year-over-year increase of $3.6 million was primarily due to lower other manufacturing costs and lower restructuring charges as a result of nearing the completion of the wind down of the Monrovia performance center, partially offset by lower manufacturing volume. Non-GAAP adjusted operating income for the third quarter of 2025 was $14.3 million, or 16.0% of revenue, compared to $12.6 million, or 14.7% of revenue, in the comparable period last year.

Corporate General and Administrative (“CG&A”) Expenses

CG&A expenses for the third quarter of 2025 were $113.1 million, or 53.2% of total Company revenue, compared to $11.9 million, or 5.9% of total Company revenue, for the comparable quarter in the prior year. The year-over-year increase in CG&A expenses was primarily due to higher litigation settlement and related costs, net, of $99.7 million discussed above.

Conference Call

A teleconference hosted by Stephen G. Oswald, the Company’s chairman, president and chief executive officer, and Suman B. Mookerji, the Company’s senior vice president, chief financial officer will be held today, November 6, 2025 at 10:00 a.m. PT (1:00 p.m. ET) to review these financial results. To access the conference call, please pre-register using the following registration link:

https://register-conf.media-server.com/register/BIae514c03f41a4b62b03fc86251b6e6a4

Registrants will receive a confirmation with dial-in details. Mr. Oswald and Mr. Mookerji will be speaking on behalf of the Company and anticipate the call (including Q&A) to last approximately 45 minutes. A live webcast of the event can be accessed using the link above. A replay of the webcast will be available on the Ducommun website at Ducommun.com.

Additional information regarding Ducommun's results can be found in the Q3 2025 Earnings Presentation available at Ducommun.com.

About Ducommun Incorporated

Ducommun Incorporated delivers value-added innovative manufacturing solutions to customers in the aerospace, defense and industrial markets. Founded in 1849, the Company specializes in two core areas - Electronic Systems and Structural Systems - to produce complex products and components for commercial aircraft platforms, mission-critical military and space programs, and sophisticated industrial applications. For more information, visit Ducommun.com.

Forward Looking Statements

This press release and any attachments include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, expectations relating to growing production rates at commercial aerospace OEMs, any statements about the Company's VISION 2027 Strategy and its progress towards the financial goals stated therein, including our expectations related to year-over-year revenue growth for the remainder of 2025 and beyond, our expectations relating to the impact of the current tariff environment on the Company's financial outlook and the success of planned mitigation measures to reduce the impact thereof. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue” and similar expressions in this press release and any attachments to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: whether the anticipated pre-tax restructuring charges will be sufficient to address all anticipated restructuring costs, including related to employee separation, facilities consolidation, inventory write-down and other asset impairments; whether the expected cost savings from the restructuring will ultimately be obtained in the amount and during the period anticipated; whether the restructuring in the affected areas will be sufficient to build a more cost efficient, focused, higher margin enterprise with higher returns for the Company's shareholders; the strength of the real estate market, the duration of any lease entered into as part of any sale-leaseback transaction, the amount of commissions owed to brokers, and applicable tax rates; the impact of the Company’s debt service obligations and restrictive debt covenants; our ability to overcome headwinds relating to pending subrogation claims asserted by third-party insurers, including the carrier of the entity that provides the labor and facilities for our Guaymas performance center through an arbitration proceeding currently pending in Arizona with respect to the Guaymas performance center fire, which may become material; the Company’s end-use markets are cyclical; the Company depends upon a selected base of industries and customers; a significant portion of the Company’s business depends upon U.S. Government defense spending; risks associated with a prolonged U.S. federal government shutdown; the Company is subject to extensive regulation and audit by the Defense Contract Audit Agency; contracts with some of the Company’s customers contain provisions which give the its customers a variety of rights that are unfavorable to the Company; further consolidation in the aerospace industry could adversely affect the Company’s business and financial results; the Company’s ability to successfully make acquisitions, including its ability to successfully integrate, operate or realize the projected benefits of such businesses; the possibility of labor disruptions adversely affecting our business; the Company relies on its suppliers to meet the quality and delivery expectations of its customers; the Company uses estimates when bidding on fixed-price contracts which estimates could change and result in adverse effects on its financial results; the impact of existing and future laws and regulations; the impact of existing and future accounting standards and tax rules and regulations; environmental liabilities could adversely affect the Company’s financial results; cyber security attacks, internal system or service failures may adversely impact the Company’s business and operations; the ultimate geographic spread, duration and severity of the coronavirus (COVID-19) outbreak, and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, and other risks and uncertainties, including those detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission. You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release, November 6, 2025, or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the Securities and Exchange Commission (which are available from the SEC’s EDGAR database at www.sec.gov).

Note Regarding Non-GAAP Financial Information

This release contains non-GAAP financial measures, including Adjusted EBITDA (which excludes interest expense, income tax (benefit) expense, depreciation, amortization, stock-based compensation expense, restructuring charges, professional fees related to unsolicited non-binding acquisition offer, inventory purchase accounting adjustments, gain on sale of property and other assets, and litigation settlement and related costs, net), including as a percentage of revenue, non-GAAP operating income, including as a percentage of net revenues, non-GAAP net income, non-GAAP earnings per share, and backlog. In addition, certain other prior period amounts have been reclassified to conform to current year’s presentation.

The Company believes the presentation of these non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company’s actual and forecasted operating performance, capital resources and cash flow. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company discloses different non-GAAP financial measures in order to provide greater transparency and to help the Company’s investors to more meaningfully evaluate and compare Ducommun’s results to its previously reported results. The non-GAAP financial measures that the Company uses may not be comparable to similarly titled financial measures used by other companies.

The Company defines backlog as customer placed purchase orders and long-term agreements (“LTAs”) with firm fixed price and expected delivery dates of 24 months or less. The majority of the LTAs do not meet the definition of a contract under ASC 606 and thus, the backlog amount disclosed herein may or may not be greater than the remaining performance obligations disclosed under ASC 606. Backlog is subject to delivery delays or program cancellations, which are beyond the Company’s control. Backlog is affected by timing differences in the placement of customer orders and tends to be concentrated in some of the Company’s programs.

CONTACT:

Suman Mookerji, Senior Vice President, Chief Financial Officer, 657.335.3665

[Financial Tables Follow]

DUCOMMUN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)         September 27, 
2025 December 31, 
2024Assets      Current Assets      Cash and cash equivalents $50,918  $37,139 Accounts receivable, net  111,269   109,716 Contract assets  248,402   200,584 Inventories  192,817   196,881 Production cost of contracts  5,685   6,802 Other current assets  72,259   16,959 Total Current Assets  681,350   568,081 Property and Equipment, Net  107,361   109,812 Operating Lease Right-of-Use Assets  42,173   28,611 Goodwill  244,600   244,600 Intangibles, Net  137,027   149,591 Deferred income taxes  18,172   2,239 Other Assets  17,887   23,167 Total Assets $1,248,570  $1,126,101 Liabilities and Shareholders’ Equity      Current Liabilities      Accounts payable $85,281  $75,784 Contract liabilities  34,450   34,445 Accrued and other liabilities  194,227   44,214 Operating lease liabilities  7,796   8,531 Current portion of long-term debt  12,500   12,500 Total Current Liabilities  334,254   175,474 Long-Term Debt, Less Current Portion  215,046   229,830 Non-Current Operating Lease Liabilities  36,129   21,284 Other Long-Term Liabilities  14,096   16,983 Total Liabilities  599,525   443,571 Commitments and Contingencies      Shareholders’ Equity      Common Stock  149   148 Additional Paid-In Capital  229,980   217,523 Retained Earnings  412,093   453,475 Accumulated Other Comprehensive Income  6,823   11,384 Total Shareholders’ Equity  649,045   682,530 Total Liabilities and Shareholders’ Equity $1,248,570  $1,126,101           DUCOMMUN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)       Three Months Ended Nine Months Ended  September 27, 
2025 September 28, 
2024 September 27, 
2025 September 28, 
2024Net Revenues $212,558  $201,412  $608,932  $589,259 Cost of Sales  156,083   148,736   447,122   438,401 Gross Profit  56,475   52,676   161,810   150,858 Selling, General and Administrative Expenses  36,267   35,486   106,820   104,498 Restructuring Charges  583   1,924   1,617   4,548 Litigation Settlement and Related Costs, Net  99,675   —   99,675   — Operating (Loss) Income  (80,050)  15,266   (46,302)  41,812 Interest Expense  (2,927)  (3,829)  (9,198)  (11,687)Other Income  —   —   1,746   — (Loss) Income Before Taxes  (82,977)  11,437   (53,754)  30,125 Income Tax (Benefit) Expense  (18,531)  1,289   (12,372)  5,404 Net (Loss) Income $(64,446) $10,148  $(41,382) $24,721 (Loss) Earnings Per Share        Basic (loss) earnings per share $(4.30) $0.69  $(2.77) $1.68 Diluted (loss) earnings per share $(4.30) $0.67  $(2.77) $1.65 Weighted-Average Number of Common Shares Outstanding        Basic  14,978   14,806   14,925   14,758 Diluted  14,978   15,039   14,925   14,981          Gross Profit %  26.6 %  26.2 %  26.6 %  25.6 %SG&A %  17.1 %  17.6 %  17.5 %  17.7 %Operating (Loss) Income % (37.7)%  7.6 % (7.6)%  7.1 %Net (Loss) Income % (30.3)%  5.0 % (6.8)%  4.2 %Effective Tax (Benefit) Rate (22.3)%  11.3 % (23.0)%  17.9 %              DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(Dollars in thousands)       Three Months Ended Nine Months Ended  September 27, 
2025 September 28, 
2024 September 27, 
2025 September 28, 
2024GAAP net (loss) income $(64,446) $10,148  $(41,382) $24,721 Non-GAAP Adjustments:        Interest expense  2,927   3,829   9,198   11,687 Income tax (benefit) expense  (18,531)  1,289   (12,372)  5,404 Depreciation  4,037   4,285   12,305   12,339 Amortization  4,301   4,246   12,890   12,790 Stock-based compensation expense (1)  5,808   4,467   17,511   12,753 Restructuring charges (2)  583   1,924   1,617   5,405 Professional fees related to unsolicited non-binding acquisition offer  —   1,033   —   2,407 Inventory purchase accounting adjustments  —   663   —   1,745 Gain on sale of property and other assets  —   —   (1,746)  — Litigation settlement and related costs, net  99,675   —   99,675   — Adjusted EBITDA $34,354  $31,884  $97,696  $89,251 Net (loss) income as a % of net revenues (30.3)%  5.0 % (6.8)%  4.2 %Adjusted EBITDA as a % of net revenues  16.2 %  15.8 %  16.0 %  15.1 % (1)The three and nine months ended September 27, 2025 included $0.6 million and $2.0 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended September 28, 2024 included $0.9 million and $2.8 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended September 27, 2025 included $0.1 million and $0.3 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 28, 2024 included $0.1 million and $0.3 million, respectively, of stock-based compensation expense recorded as cost of sales.
(2)The three and nine months ended September 28, 2024 included zero and $0.9 million, respectively, of restructuring charges that were recorded as cost of sales.   DUCOMMUN INCORPORATED AND SUBSIDIARIES
BUSINESS SEGMENT PERFORMANCE
(Unaudited)
(Dollars in thousands)       Three Months Ended Nine Months Ended  %
Change September 27,
2025 September 28,
2024 %
of Net  Revenues
2025 %
of Net  Revenues
2024 %
Change September 27,
2025 September 28,
2024 %
of Net  Revenues
2025 %
of Net  Revenues
2024Net Revenues                    Electronic Systems 6.6 % $123,082  $115,412  57.9 % 57.3 % 5.8 % $343,056  $324,391  56.3 % 55.1 %Structural Systems 4.0 %  89,476   86,000  42.1 % 42.7 % 0.4 %  265,876   264,868  43.7 % 44.9 %Total Net Revenues 5.5 % $212,558  $201,412  100.0 % 100.0 % 3.3 % $608,932  $589,259  100.0 % 100.0 %Segment Operating Income                    Electronic Systems   $21,098  $18,910  17.1 % 16.4 %   $60,212  $54,685  17.6 % 16.9 %Structural Systems    11,927   8,289  13.3 % 9.6 %    31,844   21,716  12.0 % 8.2 %     33,025   27,199         92,056   76,401     Corporate General and Administrative Expenses (1)    (113,075)  (11,933) (53.2)% (5.9)%    (138,358)  (34,589) (22.7)% (5.9)%Total Operating (Loss) Income   $(80,050) $15,266  (37.7)% 7.6 %   $(46,302) $41,812  (7.6)% 7.1 %Adjusted EBITDA                    Electronic Systems                    Operating Income   $21,098  $18,910        $60,212  $54,685     Depreciation and Amortization    3,553   3,575         10,694   10,869     Stock-Based Compensation Expense (2)    71   70         294   241     Restructuring Charges    71   91         242   562          24,793   22,646  20.1 % 19.6 %    71,442   66,357  20.8 % 20.5 %Structural Systems                    Operating Income    11,927   8,289         31,844   21,716     Depreciation and Amortization    4,670   4,849         14,182   14,058     Stock-Based Compensation Expense (3)    60   105         381   261     Restructuring Charges    512   1,833         1,375   4,843     Inventory Purchase Accounting Adjustments    —   663         —   1,745          17,169   15,739  19.2 % 18.3 %    47,782   42,623  18.0 % 16.1 %Corporate General and Administrative Expenses (1)                    Operating loss    (113,075)  (11,933)        (138,358)  (34,589)    Depreciation and Amortization    115   107         319   202     Stock-Based Compensation Expense (4)    5,677   4,292         16,836   12,251     Professional Fees Related to Unsolicited Non-Binding Acquisition Offer    —   1,033         —   2,407     Litigation Settlement and Related Costs, Net    99,675   —         99,675   —          (7,608)  (6,501)        (21,528)  (19,729)      Adjusted EBITDA   $34,354  $31,884  16.2 % 15.8 %   $97,696  $89,251  16.0 % 15.1 %Capital Expenditures                    Electronic Systems   $1,216  $1,011        $4,264  $2,950     Structural Systems    1,029   1,295         6,272   4,172     Corporate Administration    109   —         122   3,024       Total Capital Expenditures   $2,354  $2,306        $10,658  $10,146                                   (1)Includes costs not allocated to either the Electronic Systems or Structural Systems operating segments.(2)The three and nine months ended September 27, 2025 each included $0.1 million of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 28, 2024 each included $0.1 million of stock-based compensation expense recorded as cost of sales.(3)The three and nine months ended September 27, 2025 included $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales. The three and nine months ended September 28, 2024 included $0.1 million and $0.2 million, respectively, of stock-based compensation expense recorded as cost of sales.
(4)The three and nine months ended September 27, 2025 included $0.6 million and $2.0 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash. The three and nine months ended September 28, 2024 included $0.9 million and $2.8 million, respectively, of stock-based compensation expense for awards with both performance and market conditions that will be settled in cash.    DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP OPERATING INCOME RECONCILIATION
(Unaudited)
(Dollars in thousands)       Three Months Ended Nine Months EndedGAAP To Non-GAAP Operating Income September 27, 2025 September 28, 2024 %
of Net  Revenues
2025 %
of Net  Revenues
2024 September 27, 2025 September 28, 2024 %
of Net  Revenues
2025 %
of Net  Revenues
2024GAAP operating (loss) income $(80,050) $15,266      $(46,302) $41,812                      GAAP operating income - Electronic Systems $21,098  $18,910      $60,212  $54,685     Adjustments to GAAP operating income - Electronic Systems:                Restructuring charges  71   91       242   562     Amortization of acquisition-related intangible assets  373   373       1,120   1,120     Total adjustments to GAAP operating income - Electronic Systems  444   464       1,362   1,682     Non-GAAP adjusted operating income - Electronic Systems  21,542   19,374  17.5 % 16.8 %  61,574   56,367  17.9 % 17.4 %                 GAAP operating income - Structural Systems  11,927   8,289       31,844   21,716     Adjustments to GAAP operating income - Structural Systems:                Restructuring charges  512   1,833       1,375   4,843     Inventory purchase accounting adjustments  —   663       —   1,745     Amortization of acquisition-related intangible assets  1,859   1,859       5,578   5,578     Total adjustments to GAAP operating income - Structural Systems  2,371   4,355       6,953   12,166     Non-GAAP adjusted operating income - Structural Systems  14,298   12,644  16.0 % 14.7 %  38,797   33,882  14.6 % 12.8 %                 GAAP operating loss - Corporate  (113,075)  (11,933)      (138,358)  (34,589)    Adjustments to GAAP Operating Income - Corporate                Professional fees related to unsolicited non-binding acquisition offer  —   1,033       —   2,407     Litigation settlement and related costs, net  99,675   —       99,675   —     Total adjustments to GAAP Operating Income - Corporate  99,675   1,033       99,675   2,407     Non-GAAP adjusted operating loss - Corporate  (13,400)  (10,900)      (38,683)  (32,182)    Total non-GAAP adjustments to GAAP operating income  102,490   5,852       107,990   16,255     Non-GAAP adjusted operating income $22,440  $21,118  10.6 % 10.5 % $61,688  $58,067  10.1 % 9.9 %  DUCOMMUN INCORPORATED AND SUBSIDIARIES
GAAP TO NON-GAAP NET INCOME AND EARNINGS PER SHARE RECONCILIATION
(Unaudited)
(Dollars in thousands, except per share amounts)       Three Months Ended Nine Months EndedGAAP To Non-GAAP Net Income September 27,
2025 September 28,
2024 September 27,
2025 September 28,
2024GAAP net (loss) income $(64,446) $10,148  $(41,382) $24,721 Adjustments to GAAP net income:        Restructuring charges  583   1,924   1,617   5,405 Professional fees related to unsolicited non-binding acquisition offer  —   1,033   —   2,407 Inventory purchase accounting adjustments  —   663   —   1,745 Gain on sale of property and other assets  —   —   (1,746)  — Amortization of acquisition-related intangible assets  2,232   2,232   6,698   6,698 Litigation settlement and related costs, net  99,675   —   99,675   — Total adjustments to GAAP net income before provision for income taxes  102,490   5,852   106,244   16,255 Income tax effect on non-GAAP adjustments (1)  (22,890)  (1,170)  (23,641)  (3,251)Non-GAAP adjusted net income $15,154  $14,830  $41,221  $37,725                     Three Months Ended Nine Months EndedGAAP Earnings Per Share To Non-GAAP Earnings Per Share September 27,
2025 September 28,
2024 September 27,
2025 September 28,
2024GAAP diluted (loss) earnings per share (“EPS”) $(4.30) $0.67  $(2.77) $1.65 Adjustments to GAAP diluted EPS:        Restructuring charges  0.04   0.13   0.10   0.36 Professional fees related to unsolicited non-binding acquisition offer  —   0.07   —   0.16 Inventory purchase accounting adjustments  —   0.05   —   0.12 Gain on sale of property and other assets  —   —   (0.11)  — Amortization of acquisition-related intangible assets  0.14   0.15   0.44   0.45 Litigation settlement and related costs, net  6.49   —   6.53   — Total adjustments to GAAP diluted EPS before provision for income taxes  6.67   0.40   6.96   1.09 Income tax effect on non-GAAP adjustments (1)  (1.49)  (0.08)  (1.55)  (0.22)Non-GAAP adjusted diluted EPS (2) $0.99  $0.99  $2.70  $2.52          GAAP weighted-average shares - basic  14,978   14,806   14,925   14,758 GAAP weighted-average shares - diluted  14,978   15,039   14,925   14,981 Non-GAAP weighted-average shares - diluted (3)  15,361   15,039   15,267   14,981                   (1)Effective tax rate of 20.0% used for both 2025 and 2024 adjustments, except for litigation settlement and related costs, net which utilized the incremental tax rate of 22.4%.(2)Non-GAAP adjusted diluted EPS will not foot for the three and nine months ended September 27, 2025 as the GAAP net loss per share was calculated using the GAAP weighted-average shares - basic but the adjustments to GAAP diluted EPS and Non-GAAP adjusted diluted EPS were calculated using the Non-GAAP weighted-average shares - diluted.(3)In periods of GAAP net loss, non-GAAP weighted-average shares differs from GAAP diluted weighted-average shares due to the non-GAAP net income reported.   DUCOMMUN INCORPORATED AND SUBSIDIARIES
NON-GAAP BACKLOG* BY REPORTING SEGMENT
(Unaudited)
(Dollars in thousands)         September 27,
2025 December 31,
2024Consolidated Ducommun      Military and space $650,749  $624,785 Commercial aerospace  465,496   415,905 Industrial  19,496   20,129 Total $1,135,741  $1,060,819 Electronic Systems      Military and space $462,142  $459,546 Commercial aerospace  91,111   76,291 Industrial  19,496   20,129 Total $572,749  $555,966 Structural Systems      Military and space $188,607  $165,239 Commercial aerospace  374,385   339,614 Total $562,992  $504,853           * Under ASC 606, the Company defines performance obligations as customer placed purchase orders with firm fixed price and firm delivery dates. The remaining performance obligations disclosed under ASC 606 as of September 27, 2025 were $1,031.2 million. The Company defines backlog as customer placed purchase orders and long-term agreements (“LTAs”) with firm fixed price and expected delivery dates of 24 months or less. Backlog as of September 27, 2025 was $1,135.7 million compared to $1,060.8 million as of December 31, 2024.

Very Strong Third Quarter and Year-to-Date Performance Across the BusinessNet Income +94.1% and Adjusted EBITDA +61.6% compared to 3Q’24
Implemented Providers +13.1% and Practice Collections +27.1% compared to 3Q’24
FY’25 Guidance Raised Above High End for All Key Operating and Financial Metrics ARLINGTON, Va., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Privia Health Group, Inc. (Nasdaq: PRVA) today announced financial results for the third quarter ended September 30, 2025.

Third Quarter Performance

  For the Three Months Ended September 30,  ($ in millions, except per share amounts)  2025  2024 Change (%) fTotal revenue $580.4 $437.9 32.5%Gross profit $122.6 $99.9 22.7%Operating income $14.4 $5.8 147.8%Net income a $6.9 $3.5 94.1%Non-GAAP adjusted net income b d e $37.3 $25.1 49.1%Net income per share $0.05 $0.03 66.7%Non-GAAP adjusted net income per share b d e $0.29 $0.20 45.0%        Net income for the three months ended September 30, 2025, included $19.0 million in non-cash stock compensation expense. Net income for the three months ended September 30, 2024 included $15.1 million in non-cash stock compensation expense.Reconciliations of non-GAAP adjusted net income and other non-GAAP financial measures are presented in tables near the end of this press release.
Third Quarter 2025 highlights include:

Strong results in the Medicare Shared Savings Program (MSSP) and other value-based care arrangements for 2024 performance year;Continued strength in same-store growth and new provider additions, +13.1% versus 3Q’24;Practice Collections of $940.4 million, +27.1% versus 3Q’24;Adjusted EBITDA b d e of $38.2 million, +61.6% versus 3Q’24; andStrong sales and business development pipeline. Key Operating and Non-GAAP Financial Metrics b, d, e

  For the Three Months Ended September 30,  ($ in millions)  2025  2024 Change (%)Implemented Providers  5,250  4,642 13.1%Value-Based Care Attributed Lives  1,406,000  1,247,000 12.8%Practice Collections $940.4 $739.9 27.1%Care Margin b d $125.2 $101.4 23.5%Platform Contribution b d $70.6 $50.3 40.4%Adjusted EBITDA b d e f $38.2 $23.6 61.6%       
Nine-Month Performance

  For the Nine Months Ended September 30,  ($ in millions, except per share amounts)  2025  2024 Change (%)       Total revenue $1,581.7 $1,275.5 24.0%Gross profit $339.0 $291.6 16.3%Operating income $23.0 $11.7 95.6%Net income a $13.8 $10.0 37.9%Non-GAAP adjusted net income b d e $95.8 $71.1 34.6%Net income per share $0.11 $0.08 37.5%Non-GAAP adjusted net income per share b d e $0.75 $0.57 31.6%        Net income for the nine months ended September 30, 2025 included $55.6 million in non-cash stock compensation expense. Net income for the nine months ended September 30, 2024 included $41.4 million in non-cash stock compensation expense.Reconciliations of non-GAAP adjusted net income and other non-GAAP financial measures are presented in tables near the end of this press release.
Key Operating and Non-GAAP Financial Metrics b d e

  For the Nine Months Ended September 30,  ($ in millions)  2025  2024 Change (%)       Practice Collections $2,601.9 $2,175.6 19.6%Care Margin b d $345.7 $296.1 16.7%Platform Contribution b d $179.8 $142.4 26.2%Adjusted EBITDA b d e $94.1 $65.6 43.5%       
MSSP 2024 Performance

Privia’s Accountable Care Organizations (ACOs) delivered strong 2024 performance results for the Medicare Shared Savings Program (MSSP). The nine Privia ACOs achieved aggregate shared savings of $234.1 million, a 32.6% increase from 2023.

Privia Health to Expand VBC Footprint with Acquisition of ACO Business

On September 23, 2025, the Company signed a definitive agreement to acquire an ACO business from Evolent Health, Inc., which cares for over 120,000 attributed lives through the MSSP as well as various commercial and Medicare Advantage programs. With this transaction, Privia Health will serve more than 1.5 million attributed lives in value-based care (VBC) arrangements across commercial, Medicare, Medicare Advantage and Medicaid. This strategic transaction will increase VBC attributed lives in existing Privia states, add lives in new states, and also offer a compelling synergy opportunity for the ACO-participating providers to join Privia’s Medical Groups for a full suite of services and technology platform.

The transaction is expected to close in the fourth quarter of 2025 subject to applicable regulatory approvals and other customary closing conditions, and is expected to positively contribute to Adjusted EBITDA in 2026. Privia Health will pay $100 million in cash at closing from its balance sheet, and up to an additional $13 million subject to final MSSP performance for 2025.

Capital Resources

The Company's balance sheet at September 30, 2025, included cash and cash equivalents of $441.4 million and no debt. Privia Health’s cash balance does not include approximately $68.5 million in cash received in October 2025 from the Centers for Medicare & Medicaid Services (CMS) as payment for Privia Health’s portion of the shared savings generated for the 2024 performance year of MSSP. Pro forma for the net cash receipt from CMS, and the expected payment to Evolent Health of $100 million for the acquisition of its ACO business, the Company’s cash balance would be $409.9 million.

Updated FY’25 Guidance c d e f

Privia Health raised its full-year 2025 outlook as follows:

 FY 2024 Initial FY 2025 Guidance at 2.27.25 c Updated FY 2025
($ in millions)Actual Low High Guidance at 11.6.25
Implemented Providers 4,789  5,200  5,300 5,300 - 5,350Attributed Lives 1,256,000  1,300,000  1,400,000 1,400,000 - 1,425,000Practice Collections$2,968.0 $3,150 $3,250 $3,450 - $3,500GAAP Revenue$1,736.4 $1,800 $1,900 $2,050 - $2,100Care Margin c d$403.9 $435 $445 $455 - $460Platform Contribution c d$195.6 $208 $218 $230 - $235Adjusted EBITDA c d e$90.5 $105 $110 $118 - $121 Guidance does not assume any impact from pending Evolent ACO business transactionMore than 80% of Adjusted EBITDA expected to convert to free cash flow in full-year 2025Expect to end FY’25 with at least $410 million in cash and equivalents pro forma for ACO transaction c.Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures of gross margin, operating income and net income. This is because the Company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions that are not within our control as well as certain legal or advisory costs, tax costs or other costs that may arise. For these reasons, management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures.  d.See “Key Metrics and Non-GAAP Financial Measures” for more information as to how the Company defines and calculates Implemented Providers, Attributed Lives, Practice Collections, Care Margin, Platform Contribution, and Adjusted EBITDA, and for a reconciliation of the most comparable GAAP measures to Care Margin, Platform Contribution, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income Per Share.  e.Certain non-recurring or non-cash and other expenses will be treated as an add back in the reconciliation of Net Income to Adjusted EBITDA, and the reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share, the details of which can be found in the Reconciliation schedules near the end of this and in future quarterly press releases.  f.Any slight variations in totals due to rounding.
Webcast and Conference Call Information

The Company will host a conference call on November 6, 2025, at 8:00 am ET to discuss these results and management’s outlook for future financial and operational performance. You can visit ir.priviahealth.com/news-and-events/events-and-presentations to listen to the call via webcast. The webcast will be archived and available for replay for on-demand listening shortly after the completion of the call under the same link. If you wish to participate in the live conference call, then please dial 888-596-4144 (or 646-968-2525 for international callers) and provide Conference ID 5704885.

This news release and the financial statements contained herein, and the slide presentation for the webcast, are also available on the Privia Health Investor Relations website at ir.priviahealth.com.

About Privia Health

Privia Health™ is one of the largest physician enablement companies in the United States with a presence in 15 states and the District of Columbia. Privia builds scaled provider networks with primary-care centric medical groups, risk-bearing entities, a physician-led governance structure, and the Privia Platform comprising an extensive suite of technology and service solutions. Privia collaborates with medical groups, health plans and health systems to optimize 1,340+ physician practices, improve the patient experience for 5.6+ million patients, and reward 5,200+ physicians and advanced practitioners for delivering high-value care.

Privia’s mission is to transform healthcare delivery to achieve better outcomes, lower costs, and improve the health of communities and the well-being of providers. For more information, visit priviahealth.com and connect with us on LinkedIn.

Non-GAAP Financial Measures

The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States ("GAAP"). From time to time, in press releases, financial presentations, earnings conference calls or otherwise, the Company may disclose certain non-GAAP financial measures. The non-GAAP financial measures presented in this press release should not be viewed as alternatives or substitutes for the Company's reported GAAP results. A reconciliation to the most directly comparable GAAP financial measure is set forth in the tables that accompany this release.

The Company believes that each of the non-GAAP financial measures presented in this press release are relevant and provide useful information to the Company's management, investors, and other interested parties about the Company's operating performance because the measures allow them to understand and compare the Company's actual and expected operating results during the prior, current and future periods in a more consistent manner. The non-GAAP measures presented in this press release may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of the results of operations and trends affecting the Company's business. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to financial measures calculated in accordance with GAAP.

Safe Harbor Statement

The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Form 10-Q is filed with the Securities and Exchange Commission (“SEC”). This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such statements relate to our current expectations, projections and assumptions about our business, the economy and future events or conditions. They do not relate strictly to historical or current facts. Forward-looking statements can be identified by words such as “aims,” “anticipates,” "assumes," “believes,” “estimates,” “expects,” “forecasts,” “future,” “intends,” “likely,” “may,” “outlook,” “plans,” “potential,” “projects,” “seeks,” “strategy,” “targets,” “trends,” “will,” “would,” “could,” “should,” and variations of such terms and similar expressions and references to guidance, although some forward-looking statements may be expressed differently. In particular, these include statements relating to, among other things: our future actions, business plans, objectives and prospects; and our future operating or financial performance and projections, including our full-year guidance for 2025. Factors or events that could cause actual results to differ may emerge from time to time and are difficult to predict. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results may differ materially from past results and those anticipated, estimated or projected. We caution you not to place undue reliance upon any of these forward-looking statements.

Factors related to these risks and uncertainties include, but are not limited to: the heavily regulated industry in which we operate, and any failure by us or our medical groups to comply with the extensive applicable healthcare laws and government regulations; the complexity of the legal framework governing our relationships with Medical Groups, some of which we do not own, and Privia providers, and the impact of legal challenges or shifting interpretations of applicable laws; the execution of our growth strategy, which may not prove viable and we may not realize expected results; difficulties timely implementing our proprietary end-to-end, cloud-based technology solution for Privia physicians and new medical groups; the high level of competition in our industry; challenges in successfully establishing a presence in new geographic markets; the impact of failures by or service disruptions at key third-party vendors, such as our primary electronic medical record vendor, athenahealth, Inc.; potential decreases in reimbursement rates by governmental and third-party payers, changes to payment terms or challenges negotiating and retaining favorable contracts with private third-party payers, and changes impacting our patient population; the financial and operational impact of our compliance with various complex and changing federal and state privacy and security laws and regulations related to our use, disclosure, and other processing of personal information and protected health information, including the Health Insurance Portability and Accountability Act of 1996; the impact of actual and potential security threats, cybersecurity incidents or privacy or other forms of data breaches involving us, our vendors or other third parties; the continued availability of qualified workforce, including staff at our medical groups, and the continued upward pressure on compensation for such workforce; and other risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s subsequent Quarterly Reports on Form 10-Q. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information unless required by law.

Contact:Robert BorchertSVP, Investor & Corporate [email protected] Privia Health Group, Inc.
Condensed Consolidated Statements of Operations(g)
(unaudited)
(in thousands, except share and per share data)

 For the Three Months Ended September 30, For the Nine Months Ended September 30,  2025  2024  2025  2024Revenue$580,419 $437,921 $1,581,669 $1,275,490        Operating expenses:       Provider expense 455,209  336,501  1,236,010  979,373Cost of platform 61,440  56,068  185,884  167,231Sales and marketing 6,960  7,047  20,687  19,984General and administrative 39,641  30,695  108,881  91,732Depreciation and amortization 2,766  1,797  7,250  5,436Total operating expenses 566,016  432,108  1,558,712  1,263,756Operating income 14,403  5,813  22,957  11,734Interest income, net 2,271  2,164  7,610  8,114Income before provision for income taxes 16,674  7,977  30,567  19,848Provision for income taxes 6,867  3,999  11,426  8,171Net income 9,807  3,978  19,141  11,677Less: Net income attributable to non-controlling interests 2,946  443  5,373  1,691Net income attributable to Privia Health Group, Inc.$6,861 $3,535 $13,768 $9,986Net income per share attributable to Privia Health Group, Inc. stockholders – basic$0.06 $0.03 $0.11 $0.08Net income per share attributable to Privia Health Group, Inc. stockholders – diluted$0.05 $0.03 $0.11 $0.08Weighted average common shares outstanding – basic 122,768,890  119,658,574  121,840,638  119,156,368Weighted average common shares outstanding – diluted 128,776,684  125,751,006  128,392,315  125,457,540 (g) Any slight variations in totals due to rounding.

Privia Health Group, Inc. 
Condensed Consolidated Balance Sheets(h)
(in thousands)

 September 30, 2025 December 31, 2024Assets(unaudited)  Current assets:   Cash and cash equivalents$441,352  $491,149 Accounts receivable 499,041   316,179 Prepaid expenses and other current assets 30,533   27,495 Total current assets 970,926   834,823 Non-current assets:   Property and equipment, net 662   1,242 Operating right-of-use asset 5,671   4,828 Intangible assets, net 167,539   109,807 Goodwill 172,215   141,615 Deferred tax asset 17,046   26,383 Other non-current assets 16,928   17,085 Total non-current assets 380,061   300,960 Total assets$1,350,987  $1,135,783     Liabilities and stockholders’ equity   Current liabilities:   Accounts payable and accrued expenses$84,668  $81,986 Provider liability 495,683   364,607 Operating lease liabilities, current 2,563   2,553 Total current liabilities 582,914   449,146 Non-current liabilities:   Operating lease liabilities, non-current 3,672   3,037 Other non-current liabilities 1,640   153 Total non-current liabilities 5,312   3,190 Total liabilities 588,226   452,336 Commitments and contingencies   Stockholders’ equity:   Common stock 1,229   1,203 Additional paid-in capital 873,356   813,209 Accumulated deficit (165,461)  (179,229)Total Privia Health Group, Inc. stockholders’ equity 709,124   635,183 Non-controlling interest 53,637   48,264 Total stockholders’ equity 762,761   683,447 Total liabilities and stockholders’ equity$1,350,987  $1,135,783  (h) Any slight variations in totals are due to rounding.

Privia Health Group, Inc.
Condensed Consolidated Statements of Cash Flows(i)
(unaudited)
(in thousands)

 For the Nine Months Ended September 30,  2025   2024 Cash flows from operating activities   Net income$19,141  $11,677 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation 580   876 Amortization of intangibles 6,670   4,560 Stock-based compensation 55,616   41,401 Deferred tax expense 9,337   7,631 Changes in asset and liabilities:   Accounts receivable (176,544)  (118,191)Prepaid expenses and other current assets (3,038)  (4,272)Other non-current assets and right-of-use asset 2,345   (70)Accounts payable and accrued expenses 2,682   7,810 Provider liability 118,815   85,174 Operating lease liabilities (1,187)  (2,112)Other long-term liabilities 1,487   — Net cash provided by operating activities 35,904   34,484 Cash from investing activities   Business acquisitions, net of cash acquired (89,058)  (707)Other (1,200)  (5,006)Net cash used in investing activities (90,258)  (5,713)Cash flows from financing activities   Proceeds from exercised stock options 4,557   2,062 Proceeds from non-controlling interest —   1,653 Net cash provided by financing activities 4,557   3,715 Net (decrease) increase in cash and cash equivalents (49,797)  32,486 Cash and cash equivalents at beginning of period 491,149   389,511 Cash and cash equivalents at end of period$441,352  $421,997     Supplemental disclosure of cash flow information:   Interest paid$188  $222 Income taxes paid, net of refunds$5,771  $3,525     Supplemental disclosure of non-cash operating activities:   Lease liabilities obtained in exchange for right-of-use assets$1,832  $—  (i) Any slight variations in totals are due to rounding.

Additional Financial Information

Revenues disaggregated by source:

 For the Three Months Ended September 30, For the Nine Months Ended September 30,(Dollars in Thousands) 2025  2024  2025  2024FFS-patient care$352,604 $283,278 $995,829 $833,862FFS-administrative services 33,616  30,697  100,986  91,906Capitated revenue 90,906  53,393  237,108  161,135Shared savings 79,994  47,438  187,927  134,720Care management fees (PMPM) 20,992  21,060  53,113  47,826Other revenue 2,307  2,055  6,706  6,041Total Revenue$580,419 $437,921 $1,581,669 $1,275,490
The Company’s liabilities for unpaid medical claims under at-risk capitation arrangements:

  September 30,(Dollars in Thousands)  2025   2024 Balance, beginning of period $66,355  $67,138 Incurred health care costs:    Current year  228,352   156,899 Prior years  (9,349)  1,384 Total claims incurred $219,003  $158,283 Claims paid:    Current year  (159,911)  (97,883)Prior year  (49,013)  (52,461)Total claims paid $(208,924) $(150,344)Balance, end of period $76,434  $75,077 
Key Metrics and Non-GAAP Financial Measures

Privia Health reviews a number of operating and financial metrics, including the following key metrics and non-GAAP financial measures, to evaluate the Company’s business, measure performance, identify trends affecting the Company’s business, formulate business plans, and make strategic decisions.

Key Metrics(j)

  For the Three Months Ended September 30, For the Nine Months Ended September 30,(unaudited; $ in millions)  2025  2024  2025  2024Implemented Providers (as of end of period) (1)  5,250  4,642  5,250  4,642Attributed Lives (as of end of period) (2)  1,406,000  1,247,000  1,406,000  1,247,000Practice Collections (3) $940.4 $739.9 $2,601.9 $2,175.6         (1) Implemented Providers is defined as the total of all service professionals on Privia Health’s platform at the end of a given period who are credentialed by Privia Health and billed for medical services, in both Owned and Non-Owned Medical Groups during that period.(2) Attributed Lives are defined as any patient that a payer deems attributed to Privia to deliver care as part of a value-based care arrangement through a provider of primary care services as of the end of a particular period.(3) Practice Collections are defined as the total collections from all practices in all markets and all sources of reimbursement that the Company receives for delivering care and providing Privia Health’s platform and associated services. Practice Collections differ from revenue by including collections from Non-Owned Medical Groups.(j) Any slight variations in totals are due to rounding.
Non-GAAP Financial Measures (4)(k)

  For the Three Months Ended September 30, For the Nine Months Ended September 30,(unaudited; $ in thousands)  2025  2024  2025  2024Care Margin $125,210 $101,420 $345,659 $296,117Platform Contribution $70,555 $50,257 $179,754 $142,388Platform Contribution Margin  56.3%  49.6%  52.0%  48.1%Adjusted EBITDA $38,187 $23,624 $94,093 $65,568Adjusted EBITDA Margin  30.5%  23.3%  27.2%  22.1%         (4) In addition to results reported in accordance with GAAP, Privia Health discloses Care Margin, Platform Contribution, Platform Contribution margin, Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. Each are defined as follows: Care Margin is Gross Profit excluding amortization of intangible assets.Platform Contribution is Gross Profit, excluding amortization of intangible assets, less Cost of platform and excluding stock-based compensation expense included in Cost of platform.Platform Contribution margin is Platform Contribution divided by Care Margin.Adjusted EBITDA is net income attributable to Privia Health Group, Inc. shareholders and subsidiaries excluding non-controlling interests, provision for income taxes, interest income, interest expense, depreciation and amortization, stock-based compensation, employer taxes on equity vesting/exercises, severance charges and other non-recurring expenses.Adjusted EBITDA Margin is Adjusted EBITDA divided by Care Margin. (k) Any slight variations in totals are due to rounding.
Reconciliation of Gross Profit to Care Margin(l)

  For the Three Months Ended September 30, For the Nine Months Ended September 30,(unaudited; $ in thousands)  2025   2024   2025   2024 Revenue $580,419  $437,921  $1,581,669  $1,275,490 Provider expense  (455,209)  (336,501)  (1,236,010)  (979,373)Amortization of intangible assets  (2,601)  (1,506)  (6,670)  (4,560)Gross Profit $122,609  $99,914  $338,989  $291,557 Amortization of intangibles assets  2,601   1,506   6,670   4,560 Care margin $125,210  $101,420  $345,659  $296,117 (l) Any slight variations in totals are due to rounding.
Reconciliation of Gross Profit to Platform Contribution(m)

  For the Three Months Ended September 30, For the Nine Months Ended September 30,(unaudited; $ in thousands)  2025   2024   2025   2024 Revenue $580,419  $437,921  $1,581,669  $1,275,490 Provider expense  (455,209)  (336,501)  (1,236,010)  (979,373)Amortization of intangibles assets  (2,601)  (1,506)  (6,670)  (4,560)Gross Profit $122,609  $99,914  $338,989  $291,557 Amortization of intangibles assets  2,601   1,506   6,670   4,560 Cost of platform  (61,440)  (56,068)  (185,884)  (167,231)Stock-based compensation(5)  6,785   4,905   19,979   13,502 Platform Contribution $70,555  $50,257  $179,754  $142,388 (m) Any slight variations in totals are due to rounding.(5) Amount represents stock-based compensation expense included in Cost of Platform.
Reconciliation of Net Income to Adjusted EBITDA(n)

  For the Three Months Ended September 30, For the Nine Months Ended September 30,(unaudited; $ in thousands)  2025   2024   2025   2024 Net income attributable to Privia Health Group, Inc. $6,861  $3,535  $13,768  $9,986 Net income attributable to non-controlling interests  2,946   443   5,373   1,691 Provision for income taxes  6,867   3,999   11,426   8,171 Interest income, net  (2,271)  (2,164)  (7,610)  (8,114)Depreciation and amortization  2,766   1,797   7,250   5,436 Stock-based compensation  18,977   15,106   55,616   41,401 Other expenses(6)  2,041   908   8,270   6,997 Adjusted EBITDA $38,187  $23,624  $94,093  $65,568          (n) Any slight variations in totals are due to rounding.(6) Other expenses include employer taxes on equity vesting/exercises, severance and certain non-recurring costs.
Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share(o)

 For the Three Months Ended September 30, For the Nine Months Ended September 30,(unaudited; $ in thousands) 2025  2024  2025  2024Net income$6,861 $3,535 $13,768 $9,986Stock-based compensation 18,977  15,106  55,616  41,401Intangible amortization expense 2,601  1,506  6,670  4,560Provision for income tax 6,867  3,999  11,426  8,171Other expenses(7) 2,041  908  8,270  6,997Adjusted net income$37,347 $25,054 $95,750 $71,115Adjusted net income per share attributable to Privia Health Group, Inc. stockholders – basic$0.30 $0.21 $0.79 $0.60Adjusted net income per share attributable to Privia Health Group, Inc. stockholders – diluted$0.29 $0.20 $0.75 $0.57Weighted average common shares outstanding – basic 122,768,890  119,658,574  121,840,638  119,156,368Weighted average common shares outstanding – diluted 128,776,684  125,751,006  128,392,315  125,457,540(o) Any slight variations in totals due to rounding.(7) Other expenses include employer taxes on equity vesting/exercises, severance and certain non-recurring costs.

HIGHLIGHTS:  Koné project comprises 7 mineralised trends hosting 52 identified targets with mineralization confirmed at all 23 targets drill-tested so far in 2024 and 2025, whilst scout drilling continues to identify more targets This year's ongoing 120,000-meter drill programme has focused on the Gbongogo–Koroutou and Sissédougou trends, representing respectively 45% and 27% of the 87,595 meters already drilled in YTD-2025 The Sissédougou trend is emerging as another highly prospective area, in addition to the recently announced success on the Gbongogo–Koroutou trend where 5 satellite deposits were already delineated with a further 19 targets identified The Sissédougou trend, extending over 10km in strike length, hosts the ANV deposit and other prospective targets Indicated and Inferred Resources have both more than doubled to respectively 129koz at 1.06 g/t Au and 85koz at 1.1 g/t Au, with further growth expected as mineralisation remains open at depth and along strike over two parallel trends High grade mineralisation has been intercepted at the Kagon Main, Kagon NE, ANIII and ANV West targets Intensive target definition programme is underway, specifically targeting the multiple gold-in-saprolite anomalies that have been identified over an approximately 5 km2 area north of the ANV deposit Indicated and Inferred Resources for Koné satellite deposits now stand at respectively 996koz at 1.29 g/t Au and 194koz at 1.09 g/t Au, with further updates across existing and new deposits expected to be published in the coming months Koné project construction continues to rapidly progress on-budget and well on-schedule ABIDJAN, Côte d'Ivoire, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Montage Gold Corp. (“Montage” or the “Company”) (TSX: MAU, OTCQX: MAUTF) is pleased to report that ongoing exploration at its Koné Project in Côte d'Ivoire demonstrates that the Sissédougou trend is emerging as another highly prospective area, as the resource for the ANV deposit has more than doubled since the starter resource was defined earlier this year, while several additional targets along the trend are advancing towards a maiden resource. The Koné project comprises 7 mineralised trends hosting 52 identified targets with mineralization confirmed at all 23 targets drill-tested so far.

Despite strong third-quarter revenue, ​Palantir (NASDAQ: PLTR) shares fell sharply this week, dropping from $207.51 on Monday, November 3, to $187.90 on Wednesday, November 5.

The crash put an end to a parabolic multi-month rally and came after ‘Big Short’ investor Michael Burry bet nearly $1 billion against the software leader, triggering a wave of profit-taking in a market increasingly characterized by valuation concerns.

As the price was still falling in pre-market on Thursday, November 6, Finbold turned to its AI prediction agent to see what price the stock might trade at by the end of the month. According to the forecast, PLTR shares will climb back to $198.61, suggesting a gain of 5.79% from today’s price of $187.74, but still far from the record highs recorded on Monday. 

PLTR forecast. Source: Finbold’s AI prediction agent
To generate its price target, Finbold’s AI leveraged three large language models (LLM): GPT-4o, Claude Sonnet 4, and Gemini 2.5 Flash. Combining their outputs, the tool generated an average figure to provide a more objective view of the market. 

Claude Sonnet 4 was the most bullish, suggesting the stock could climb all the way to $205.50 (+9.46%). GPT-4o was the least optimistic, but it still proposed that the price is likely to improve and hit $194.50 (+3.6%). Gemini was somewhere in the middle, with a price target of $195.82 (+4.31%).

Palantir stock price action 
Technically, Palantir’s surge stalled at the upper boundary of a two-year ascending price channel and now hovers near the 20-day exponential moving average (EMA) at $187.80, a level that has repeatedly acted as dynamic support this year. 

Further drops below this level could expose the 50-day EMA at $178.46, overlapping with September’s breakout zone. Further weakness below that area could mark a truly significant trend shift and bring the 100-day EMA near $164 into focus.

As mentioned, investors are mostly focused on Palantir’s lofty valuation. Indeed, with roughly 250x forward earnings, it trades well above the likes of Nvidia (NASDAQ: NVDA) at 33x.

Still, momentum remains strong. Retail traders continue to pour in, averaging roughly $302 million in daily turnover. What’s more, several Wall Street analysts, including DA Davidson, Goldman Sachs, and Baird, have boosted their PLTR price targets this week, citing the company’s ninth consecutive quarter of successful revenue.

Featured image via Shutterstock

Key Takeaways

<2-Year Payback at Best Sites
The new Hydromat hydroelectric system targets fast ROI by slashing build complexity and upfront costs at high-quality locations.
Multi-Axis, Small-Blade Design Cuts Costs
A lattice tower with multiple shafts uses many smaller blades—reducing materials (vs. single large rotors), vibration, and custom engineering.
Higher RPM, Off-the-Shelf, Longer Life
Smaller components enable higher RPM with lower gear ratios, standard parts sourcing, vibration isolation bushings, and extended bearing/structure life.

WORCESTER, MA, November 6, 2025 – PRISM MediaWire (Press Release Service – Press Release Distribution) – Mass Megawatts (OTC: MMMW) announces a new hydroelectric technology with a quick financial payback.  Mass Megawatts had spent a considerable amount of funds and research related to similar technology over the past 25 years.  The Company believes that the energy marketplace will have substantially less barriers to market entry than its related products that Mass Megawatts developed over the years.

A new low-cost Hydroelectric Power System that can pay for itself in less than two years at the best locations. The new product can reduce costs by utilizing substantially less than fifty percent material and much less initial engineering requirements for a given rated power output than traditional hydropower plants.

The Hydro Multiaxis Turbosystem (ie Hydromat) is a tower structure comprising large lattice like tower sections with many smaller blades that are connected to each axis or shaft of the unit comprised of many shafts with gearboxes and generators. Unlike the Multiaxis Turbosystem, the wind version of the Hydromat, water has 800 times more density and power for any given same velocity for both air and water. The use of stainless steel or any number of composites to support the powerful water velocity could be used as material and still be very cost competitive. 

The tower structure supports the shafts as a whole.  The new cost cutting product was developed to simplify the blades cost by reducing their size by avoiding larger blades which require an expensive construction cost. Using many smaller blades is a more cost-effective approach than using a large and complex one toward a given power generation unit. The Hydromat has a different approach of positioning the blades for gathering the mechanical power and directing it toward the generator for producing electricity.

 Traditionally, hydroelectric turbines are a single row of large turbine blades leading to additional engineering cost to overcome a multitude of vibration and frequency related problems.  In larger turbines, the blades were large and therefore limited in their design and the material.  Additionally, the amount of material used to achieve the same power output is substantially less when using many smaller blades than one larger blade since the weight of the blade changes as cube of the length. In other words, when the length of the blade doubles, weight increases by the power of three whereas the power increases only by the square of the length. This is a simplified calculation, and the exact ratio would depend on the specific materials and engineering requirements for each blade design. The comparison of power output to weight in the blade length differences of a 5-foot blade vs a 50-foot blade would be substantial.  It is important for taking advantage of any opportunities to reduce costs.

The new hydroelectric approach has other important advantages. One such manufacturing advantage includes the cost reduction of using smaller components instead of larger and more expensive components. Other advantages of higher RPM smaller blades include a reduction of gear ratios and high ratio gearbox requirements that avoid both higher cost and less gear related efficiency issues. Other advantages include providing a longer life for the bearings by reducing structural and mechanical stress with its vibration reduction innovations and decentralization of mechanical forces. The Hydromultiaxis is also easier to construct and uses standard off-the-shelf items which avoid the need for custom-made parts except for the mass-produced blades. Several suppliers can supply the power plant components to avoid supplier backlog problems. The Hydromultiaxis enhances structural support with a tower support system using less material for structural strength with oversized lattice tower sections. A low cost and lower structurally required solid wall perpendicular to the water flow can provide additional structural support. The blades can be placed at different positions or angles along the axis for reducing torque ripples. With less vibrations, cheaper material can be utilized in the hydro system. In one noted benefit, the structure could be like a four-legged table unlike a one tower support system of other turbines. This can be compared to the concept behind the lighter but stronger Rolm tower or lattice-like structure. Therefore, it requires less material for the stability needed. In an additional feature, the Hydromat could use an off the shelf bushing of concentric sleeves with rubber, polyurethane or other isolator, absorber and /or damper securely bonded between the structure and the moving parts. The object of this bushing would be to isolate or dampen the vibrations of the moving blades from the steel structure. The bushings will be placed between the shaft and bearings. The sleeve structure is designed to take up torsional movements as well as axial and radial loads. The design of avoiding one central blade area allows this “divide and conquer” approach of isolating the vibrations in a cost-effective manner. More importantly, reduced vibrations and a stronger tower structure should add years to the useful life of the new product.

As an example of the advantages of the new hydroelectric technology, large power plants help explain the technical aspects of the new product that are previously mentioned. For example, when generating large amounts of power at traditional power plants of both fossil fuel and renewable sources, conventional turbines had large rotors to generate enough energy to make it worthwhile for having a generator to produce electricity. Unfortunately, the large rotors are expensive because the stress on the rotors increase dramatically as the diameter increases. Conventional turbines had to increase the diameter of the blades to capture more energy by increasing the area which is impacting on the blades. This increase in the diameter of blades for producing substantial power can increase the cost of other items in the turbine other than the blades. Large blades which have not been properly produced can create structural stress and fatigue problems for the gearbox and shaft system.

With traditional technology, the swept area of the turbine has a low aspect ratio due to construction limitations. The aspect ratio, the swept area length or height to diameter, is preferred to be high for better efficiency. This occurs when a low rotor diameter maintains a large swept area and a high RPM which is made possible with the Hydromat technology using several blades on a single axis.  As a result, the amount of inertia is reduced, and less energy is spent on its own motion. It is another advantage in providing a more efficient turbine with reductions in the moment of inertia and easier self-starting capability. Still yet another advantage is to provide a more durable blade design by overcoming imbalance problem of using one blade per shaft with the use of many small blades per shaft. Other advantages include the use of stiffer and more rigid blades by making them smaller and at the same time with less material for a given power output than building similar larger ones without the added rigid features.

Forward-Looking Statements

This press release contains forward-looking statements that could be affected by risks and uncertainties. Among the factors that could cause actual events to differ materially from those indicated herein are: the failure of Mass Megawatts Wind Power (MMMW), also known as Mass Megawatts Windpower, to achieve or maintain necessary zoning approvals with respect to the location of its power developments; the ability to remain competitive; to finance the marketing and sales of its electricity; general economic conditions; and other risk factors detailed in periodic reports filed by Mass Megawatts Wind Power (MMMW).

Contact:

[email protected]

www.massmegawatts.com

Source: Mass Megawatts 

Baltimore-based Brown Capital Management reported a sale of 376,359 Glaukos Corporation shares for an estimated $34.6 million in the third quarter, according to an SEC filing.

What HappenedBrown Capital Management disclosed in an SEC filing on Tuesday that it reduced its holding in Glaukos Corporation (GKOS 1.86%) by 376,359 shares in the third quarter. The estimated value of the transaction was $34.6 million based on the average closing price during the quarter. At quarter-end, the firm held 762,760 shares worth $62.2 million.

What Else to KnowThe sale lowered Glaukos Corporation’s weight in Brown Capital Management’s portfolio to 2.6% of 13F assets.

Top holdings after the filing:

NASDAQ:CYBR: $197.3 million (8.1% of AUM)NASDAQ:CAMT: $121.2 million (5% of AUM)NYSE:VEEV: $108.4 million (4.5% of AUM)NASDAQ:DDOG: $101.4 million (4.2% of AUM)NYSE:GWRE: $95.2 million (3.9% of AUM)As of Wednesday's market close, Glaukos shares were priced at $84.35, down approximately 34% over the past year and well underperforming the S&P 500, which is up nearly 15% over the past year.

Company OverviewMetricValueRevenue (TTM)$433 millionNet Income (TTM)($92.8 million)Price (as of market close Wednesday)$84.35Market capitalization$4.8 billionCompany SnapshotGlaukos Corporation is a leading ophthalmic medical technology company specializing in innovative micro-scale devices and pharmaceutical solutions for glaucoma and related eye disorders. The company's strategy centers on expanding its product portfolio and leveraging proprietary technology platforms to address unmet clinical needs in ophthalmology. It generates revenue through the direct sale and distribution of proprietary micro-scale implantable devices and pharmaceutical therapies for ophthalmic conditions. Glaukos's competitive edge is driven by its focus on minimally invasive therapies and a robust pipeline targeting multiple ophthalmic indications.

Foolish TakeBrown Capital Management’s partial exit from Glaukos Corporation last quarter could represent a cautious recalibration after a volatile year for the ophthalmic-device maker. The Baltimore-based fund sold 376,359 shares, an estimated $34.6 million reduction, according to its latest SEC filing. But despite the sale, Glaukos remains a mid-sized position for Brown, accounting for 2.6% of reportable assets.

Shares have fallen 34% over the past year, with much of the decline following the company’s February 20 earnings report, which showed 28% year-over-year revenue growth to $105.5 million but disappointed investors with larger-than-expected losses and rising expenses. Management said it expects 2025 sales between $475 million and $485 million but acknowledged headwinds related to currency exchange and market entry.

Ultimately, the decision to remain invested in Glaukos despite the stock’s sell-off may represent some remaining conviction around the high-risk, high-reward opportunity—especially if the company's disruptive glaucoma implants and sustained-release pharmaceuticals gain wider adoption.

Glossary13F assets: Securities reported by institutional investment managers in quarterly SEC Form 13F filings, representing their managed holdings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Portfolio weight: The percentage of a portfolio's total value allocated to a specific investment or holding.
Fund downsizing: A reduction in the total assets or number of holdings managed by an investment fund.
Position: The amount of a particular security or asset held in a portfolio.
Ophthalmic: Relating to the eyes or the medical specialty of eye care.
Proprietary technology platforms: Unique, company-owned systems or methods used to develop and deliver products or services.
Pipeline products: New products or therapies in development but not yet commercially available.
Minimally invasive therapies: Medical treatments designed to reduce physical intrusion, often resulting in faster recovery and fewer complications.
Indications: Specific diseases or conditions for which a medical product or treatment is intended.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Veeva Systems. The Motley Fool has a disclosure policy.

A notebook with the logo of Deutsche Boerse Group (German stock exchange) is pictured in Eschborn, outside Frankfurt, Germany, January 25, 2016. REUTERS/Kai Pfaffenbach Purchase Licensing Rights, opens new tab

LONDON, Nov 6 (Reuters) - The European Central Bank will join Eurex's centrally-cleared repo market from the first quarter of 2026, the Deutsche Boerse

(DB1Gn.DE), opens new tab derivatives exchange said on Thursday.

The ECB and national euro zone central banks already lend securities to market participants. The move will shift some of that activity to centrally cleared transactions, which reduce counterparty risk in trades.

Sign up here.

Repo markets, where lenders and borrowers exchange cash and collateral -- often high-quality bonds -- in overnight trades, are crucial to the functioning of the financial system.

Activity in the euro zone repo market has risen sharply since the European Central Bank raised rates into positive territory and started reducing its bond holdings. Total outstanding volumes on Eurex's platform are up around 50% since the end of last year.

Other central banks, including Germany's, are already members of Eurex's repo market.

Reporting by Yoruk Bahceli; Editing by Amanda Cooper

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, Nov. 6:

Fox Corporation (FOXA - Free Report) : This news, sports, and entertainment company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days.

Fox has a PEG ratio of 1.46 compared with 1.93 for the industry. The company possesses a  Growth Score of B.

Grupo Cibest S.A. (CIB - Free Report) : This company that provides banking services and products carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.3% over the last 60 days.

Grupo Cibest has a PEG ratio of 1.14 compared with 2.66 for the industry. The company possesses a Growth Score of B.

Futu Holdings Limited (FUTU - Free Report) : This online brokerage and wealth management platform carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.2% over the last 60 days.

Futu has a PEG ratio of 0.64 compared with 0.98 for the industry. The company possesses a Growth Score of B.

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RGCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

If you are deeply worried about Berkshire Hathaway without Buffett, Markel Group could be a good home for you.

The final countdown has begun as investors await the retirement of Warren Buffett from the CEO position at Berkshire Hathaway (BRK.A +0.69%)(BRK.B +0.38%). It is a big deal, though maybe not as big as some investors are worried it could be. That said, there's another company that is less well-known but that uses the same basic business model as Berkshire Hathaway.

Could Markel Group (MKL +0.76%) be a good alternative to Berkshire Hathaway?

What's Markel's business model?
Warren Buffett blazed the path for the business model that both Berkshire Hathaway and Markel use. The big-picture story is fairly simple. Both companies act as investment vehicles for the management teams that run them. They each have a sizable number of operating businesses that act largely independently and also make investments in publicly traded companies. In some ways, they are run kind of like mutual funds.

Image source: The Motley Fool.

With Berkshire Hathaway, you are, effectively, giving your money to Warren Buffett and his team to invest on your behalf. With Markel, you are doing the same thing, but instead, you are giving the cash to Tom Gayner and his team. This is where an important difference comes up. You've probably heard of Warren Buffett and might even know a little bit about Buffett's investment approach. But you've likely never heard of Tom Gayner.

Markel Group, despite a $24 billion market capitalization, largely flies under Wall Street's radar screen. By comparison, Berkshire Hathaway has a $1 trillion market cap, and investors hang on every word that comes out of Buffett's mouth. Given the long-term success of Berkshire's stock, that's understandable. But Markel's stock actually has an even better long-term track record!

Data by YCharts.

Things are changing for both companies
That long-term graph makes Markel appear like the real winner, but over the past 10 years, it hasn't done nearly as well as Berkshire Hathaway. And Markel has been shaking things up a little bit as a business, trying to fine-tune its model. That's not a bad thing, noting that it continues to use the same basic approach. This is a refinement, not a change of plans. Notably, however, over the past year, Markel has strongly outperformed Berkshire.

Today's Change

(

0.76

%) $

15.11

Current Price

$

1996.92

The reason for the recent performance disparity is most likely the planned retirement of Buffett as CEO at the end of 2025. He is handing the CEO spot off to key lieutenant Greg Abel. That has some investors worried that the company will be operated differently in the future than it has been in the past.

Since Abel is not Buffett, Berkshire Hathaway will be different in the future. But Buffett is going to stay around as the chairman of the board of directors. He's still Abel's boss. And Buffett has trained Abel for decades, so he's steeped in Buffett's ways. It is unlikely Abel is going to throw away a process that works.

Today's Change

(

0.38

%) $

1.85

Current Price

$

489.51

Meanwhile, there's a risk in switching from the larger Berkshire Hathaway to jump aboard Markel. Simply put, Markel lacks the portfolio diversification that Berkshire has and thus, it is likely to expose investors to more risk. Of course, you have to juxtapose that with the opportunity the smaller company has to grow. Berkshire is so large that it is much harder to move the top and bottom lines.

Which is better for you?
First off, if you are looking to get out of Berkshire Hathaway because Buffett is retiring, you might want to hold off. Things aren't likely to change as much as you may fear. Greg Abel probably deserves the chance to prove his ability before you jump ship.

That said, if you are concerned by the massive scale of the Berkshire business, you might want to consider stepping into Markel. Just go in with the understanding that the smaller company may be able to grow faster, but the ride could be a lot bumpier.

, /PRNewswire/ -- Dear Shareholders,

November 2025 marks a pivotal milestone in Cango's history: the one-year anniversary of our strategic transformation.

Our long-term goal has always been to build energy-secured high-performance computing (HPC) services. What began as an exploration of new energy opportunities early last year led us to a practical on‑ramp: Bitcoin mining as a first step to secure energy access, develop operational expertise, and create site optionality that can later support our energy and HPC goals.

While we began as an automotive transaction service platform in China, we embarked one year ago on a bold strategic transformation into the Bitcoin mining industry, not as an endpoint but as the foundation of our expansion into energy and HPC. This sequencing—Bitcoin mining, energy access, operational depth, then HPC—has guided every decision we made.

One year on, we have built a 50 EH/s global platform and begun acquiring selective energy infrastructure, positioning us for the next phase to transition from hosted hashpower to energy and HPC over time.

Today, in this letter, we are proud to showcase the remarkable progress we have made on our journey so far and how we will bridge Bitcoin mining into energy and HPC going forward.

Story of the Past Year: A Rapid and Creative Entry into Bitcoin Mining

Through a series of decisive actions over the past year, we executed an asset‑light entry that balanced speed with discipline. We acquired on‑rack machines to accelerate time‑to‑hash, deployed a treasury approach that preserved Bitcoin while funding operations, onboarded a new management team, and divested our legacy business.

Our entry into the Bitcoin mining sector was both swift and strategic. We began our transformation in November 2024 by acquiring on-rack second-hand mining machines with an aggregate hashrate of 32 EH/s. This was then followed by a subsequent acquisition of 18 EH/s in June 2025, allowing us to scale to 50 EH/s within eight months.

Then, we divested all our China-based assets by May 2025, in a decisive move which freed us to concentrate all our financial and operational capabilities on our Bitcoin mining business.

We also strengthened our company with a new Board of Directors and senior management team with deep expertise in digital-asset infrastructure, finance, and energy investments, giving us the right mix of skills to execute our next phase of growth. The financial impact of our transformation didn't take long to manifest. For the second quarter of 2025, our first full quarter following our strategic transformation, we reported:

Revenue totaling US$139.8 million, demonstrating the strong underlying performance of our core Bitcoin mining business.
Adjusted EBITDA of US$99.1 million, excluding a non-cash impairment item and the one-off loss from discontinued operations, underscoring the robust progress of our business transformation and the tangible positive impact on our operations.
US$117.8 million in cash and cash equivalents, supported by our asset-light model which concentrates opex in hosting and power costs while preserving capital for future capex on strategic initiatives. 

In only eight months, we established a new, highly competitive core business, and a scaled global footprint across the U.S., Oman, Ethiopia, and Paraguay. And this was just the beginning.

New Momentum: Recent Expansion Milestones

With our strong second quarter results and Bitcoin mining foundation already in place, it was time to take the next steps to realize our global vision.

Our strategy for the second half of 2025 is simple: strengthen operational excellence in Bitcoin mining while leveraging that foundation to expand globally into energy and HPC. To date, we've taken several steps to advance this goal:

Acquiring a fully operational 50 MW mining facility in the U.S. state of Georgia for a total cash consideration of US$19.5 million in August 2025. This acquisition was a critical first step towards strengthening our operational expertise, shifting capacity to better power terms, and building a proprietary portfolio of energy infrastructure essential for our future HPC ambitions.
Increasing our average hashrate efficiency to over 90% while growing our Bitcoin holdings to a total of just over 6,400 BTC as of October 31, 2025, as part of our disciplined HODL strategy that creatively preserves Bitcoin for optionality and cash for future strategic initiatives. 
Terminating our ADR program and transitioning to a direct listing on the NYSE, approved by our Board of Directors in October and expected to go live when market opens on Monday, November 17, 2025. This transition was designed to optimize our capital structure, enhance corporate transparency, and align Cango with the global institutional investors required to support the next phase of growth.

By strengthening our core business and optimizing our financial structure for the long term, we have built an even more powerful platform for sustainable growth.

The Next Phase: Executing Our Energy and HPC Vision

The global Bitcoin mining platform, operational expertise, and global footprint we have established serve as the launchpad for a dual-track expansion into energy infrastructure and HPC. Our forward strategy will focus on:

Executing a phased expansion governed by strict financial discipline, scaling new initiatives from small pilots to full operations that are tied to clear technical and IRR gates to build credibility step by step across both verticals.
Pursue a targeted entry into the AI HPC market, leveraging the company's global footprint of mining sites and its capabilities in computational infrastructure operations, together with energy project resources.
Continue to acquire and develop dual-purpose energy infrastructure, ensuring assets serve immediate Bitcoin mining needs while being architected to support future, higher-value HPC deployments.
Maintain a relentless focus on optimizing our core Bitcoin mining business over expansion by improving uptime, lowering joules per terahash, refreshing roughly 6 EH/s, and shifting capacity toward better power and terms to strengthen unit economics.

We are standing at the threshold of a new technological frontier, where the convergence of energy and HPC will power the next era of compute. With the resilient foundation we have built, a world-class team, and a clear, disciplined strategy, we are confident in our ability to not only navigate this future but to help shape it, creating lasting value for our shareholders and partners.

Thank you for your continued trust. We are excited to have you with us.

Paul Yu

Chief Executive Officer, Cango Inc.

View original content: https://ir-image.cangoonline.com/ir-documents/Cango%20Shareholder%20Letter%20202511.pdf

About Cango Inc.
Cango Inc. (NYSE: CANG) is primarily engaged in the Bitcoin mining business, with operations strategically deployed across North America, the Middle East, South America, and East Africa. The Company entered the crypto asset space in November 2024, driven by advancements in blockchain technology, the growing adoption of digital assets, and its commitment to diversifying its business portfolio. In parallel, Cango continues to operate an online international used car export business through AutoCango.com, making it easier for global customers to access high-quality vehicle inventory from China.

For more information, please visit: www.cangoonline.com.

Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the completion, amendment or reversal of any transactions entered into, proposed or considered by Cango; Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; Cango's expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact
Juliet YE, Head of Communications
Cango Inc. Email: [email protected] 

Christensen Advisory
Tel: +852 2117 0861
Email: [email protected]

SOURCE Cango Inc.

November 06, 2025 5:00 AM EST | Source: Canadian Natural Resources Limited
Calgary, Alberta--(Newsfile Corp. - November 6, 2025) - Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) announces that its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.5875 (fifty-eight and three quarter cents). The dividend will be payable on January 6, 2026 to shareholders of record at the close of business on December 12, 2025.

Canadian Natural's growing and sustainable dividend demonstrates the confidence that the Board of Directors has in the sustainability of our business model, our strong balance sheet and the strength of our diverse, long life low decline reserves and asset base. The Company's leading track record of growing and sustainable dividend continues, with 2025 being the 25th consecutive year of dividend increases with a compound annual growth rate ("CAGR") of 21% over that time.

Canadian Natural is a senior crude oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore Africa.

CANADIAN NATURAL RESOURCES LIMITED
T (403) 517-6700 F (403) 517-7350 E [email protected]
2100, 855 - 2 Street S.W. Calgary, Alberta, T2P 4J8
www.cnrl.com
_________________________________________________________

SCOTT G. STAUTH
President

VICTOR C. DAREL
Chief Financial Officer

LANCE J. CASSON
Manager, Investor Relations

Trading Symbol - CNQ
Toronto Stock Exchange
New York Stock Exchange

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The Company does not undertake to update forward-looking statements except as required by applicable securities laws. Refer to our website for detailed forward-looking statements and notes regarding Non-GAAP and Other Financial Measures at www.cnrl.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273344

November 06, 2025 5:00 AM EST | Source: Canadian Natural Resources Limited
Calgary, Alberta--(Newsfile Corp. - November 6, 2025) - Canadian Natural's (TSX: CNQ) (NYSE: CNQ) President, Scott Stauth, commented on the Company's third quarter results, "Operations were strong in Q3/25 as we achieved record quarterly production volumes totaling approximately 1,620 MBOE/d, including records for both liquids and natural gas at 1,176 Mbbl/d and 2,668 MMcf/d respectively. We increased total corporate production by 19% or approximately 257,000 BOE/d from Q3/24 levels, reflecting both accretive acquisitions and organic growth achieved across our asset base over the last 12 months.

Our world class Oil Sands Mining and Upgrading assets continue to achieve strong operational performance as Q3/25 production averaged approximately 581,000 bbl/d of SCO, with strong utilization of 104% and industry leading operating costs of approximately $21 per barrel.

Subsequent to quarter end, we closed the AOSP swap with Shell Canada Limited and affiliates ("Shell") on November 1, 2025, with an effective date of March 1, 2025. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves and retains a non-operated 80% interest in the Scotford Upgrader and Quest facilities. This generates additional cash flow and adds approximately 31,000 bbl/d of annual, zero decline bitumen production to our portfolio, driving long-term value creation for our shareholders. This swap also enhances our ability to integrate equipment and services across our mining operations, unlocking additional value through continuous improvement initiatives.

Additionally, we increased our annual 2025 corporate production guidance range to 1,560 MBOE/d to 1,580 MBOE/d, while our 2025 operating capital forecast remains unchanged at approximately $5.9 billion while executing additional activity on our increased asset base size."

Canadian Natural's Chief Financial Officer, Victor Darel, added, "Our business model is robust and sustainable, underpinned by a strong balance sheet that provides flexibility through significant liquidity, totaling approximately $4.3 billion as at September 30, 2025. We closed accretive and opportunistic acquisitions in the quarter and remained at similar net debt levels when compared to Q2/25. These are excellent results, highlighting the free cash flow generating capability of our top tier asset base.

In Q3/25, we generated adjusted net earnings of $1.8 billion or $0.86 per share, and adjusted funds flow of $3.9 billion or $1.88 per share. We returned approximately $1.5 billion to our shareholders in the quarter, including $1.2 billion in dividends and $0.3 billion in share repurchases as we continue to execute on our free cash flow allocation policy."

THIRD QUARTER HIGHLIGHTS

Generated net earnings of approximately $0.6 billion and adjusted net earnings from operations of approximately $1.8 billion.

Generated adjusted funds flow of approximately $3.9 billion.

 Returns to shareholders totaled approximately $1.5 billion, comprised of $1.2 billion in dividends and $0.3 billion in share repurchases.

Year to date, up to and including November 5, 2025, the Company has returned a total of approximately $6.2 billion directly to shareholders through $4.9 billion in dividends and $1.3 billion in share repurchases.

25 consecutive years of dividend growth with a CAGR of 21% over that time.

Subsequent to quarter end, declared a quarterly cash dividend on its common shares of $0.5875 per common share.

Record quarterly corporate production of 1,620,261 BOE/d.

Significant total BOE production growth of approximately 257,000 BOE/d or 19% from Q3/24 levels reflects accretive acquisitions and organic growth achieved over the last 12 months.

Record quarterly liquids production of 1,175,604 bbl/d was achieved, an increase of approximately 154,000 bbl/d or 15% from Q3/24 levels.

Oil Sands Mining and Upgrading production was strong, averaging 581,136 bbl/d of SCO with upgrader utilization of 104% and industry leading operating costs of $21.29/bbl (US$15.46/bbl) in Q3/25.

Canadian Natural continues to maintain a strong balance sheet and financial flexibility, with approximately $4.3 billion in liquidity(1) as at September 30, 2025. During Q3/25, the Company:

Repaid US$600 million of US dollar debt securities due in July 2025.

Received a new long-term investment grade credit rating of BBB+ from Fitch Ratings.

Subsequent to quarter end, on November 1, 2025, Canadian Natural closed the AOSP swap with Shell. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves and retains a non-operated 80% interest in the Scotford Upgrader and Quest facilities.

The transaction adds approximately 31,000 bbl/d of annual, zero decline bitumen production, providing additional cash flow and enabling more effective and efficient operations between the Horizon and Albian mines.

The swap did not include any cash consideration, with the exception of regular closing adjustments to reflect the effective date of March 1, 2025.

Following the close, Canadian Natural updated its 2025 capital and production guidance as follows:

2025 production guidance range of 1,560 MBOE/d to 1,580 MBOE/d.

2025 operating capital forecast remains unchanged at approximately $5.9 billion, following the $100 million reduction previously announced in May 2025.

As a result of strong operational execution and capital discipline, additional activity on a larger asset base, following opportunistic acquisitions in the year, has been executed with no incremental capital required.

(1) Non-GAAP Financial Measure. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for the three and nine months ended September 30, 2025 dated November 5, 2025 ("MD&A").

Three Months Ended

Nine Months Ended
($ millions, except per common share amounts)
Sep 30
2025

Jun 30
2025

Sep 30
2024

Sep 30
2025

Sep 30
2024 Net earnings $600
$2,459
$2,266
$5,517
$4,968
Per common share- basic $0.29
$1.17
$1.07
$2.64
$2.33

- diluted $0.29
$1.17
$1.06
$2.63
$2.31
Adjusted net earnings from operations (1) $1,801
$1,496
$2,071
$5,733
$5,437
Per common share- basic (2) $0.86
$0.71
$0.98
$2.74
$2.55

- diluted (2) $0.86
$0.71
$0.97
$2.73
$2.53
Cash flows from operating activities $3,940
$3,114
$3,002
$11,338
$9,954
Adjusted funds flow (1) $3,920
$3,262
$3,921
$11,712
$10,673
Per common share- basic (2) $1.88
$1.56
$1.85
$5.59
$5.01

- diluted (2) $1.87
$1.55
$1.84
$5.57
$4.97
Cash flows used in investing activities $2,234
$1,941
$1,274
$5,487
$3,681
Net capital expenditures (3) $2,124
$1,915
$1,349
$5,342
$4,083
Net capital expenditures (3), excluding net acquisition costs $1,318
$1,691
$1,261
$4,312
$3,996
Abandonment expenditures $189
$193
$204
$570
$495
Daily production, before royalties
 

 

 

 

 
Natural gas (MMcf/d)
2,668

2,407

2,049

2,510

2,102
Crude oil and NGLs (bbl/d)
1,175,604

1,019,149

1,021,572

1,122,859

977,265
Equivalent production (BOE/d) (4)
1,620,261

1,420,358

1,363,086

1,541,127

1,327,593
(1) Non-GAAP Financial Measure. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A.
(2) Non-GAAP Ratio. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A.
(3) Non-GAAP Financial Measure. The composition of this measure was updated in the fourth quarter of 2024. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A.
(4) A barrel of oil equivalent ("BOE") is derived by converting six thousand cubic feet ("Mcf") of natural gas to one barrel ("bbl") of crude oil (6 Mcf:1 bbl). This conversion may be misleading, particularly if used in isolation, or to compare the value ratio using current crude oil and natural gas prices since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.Net earnings of $0.6 billion in Q3/25 reflected a non-cash recoverability charge of approximately $0.7 billion related to an increase in the estimate for future abandonment costs for the Ninian field and T-Block assets in the North Sea. Adjusted net earnings from operations, excluding the impact of the recoverability charge and unrealized foreign exchange and risk management activities, was strong at $1.8 billion in the quarter.RETURNS TO SHAREHOLDERS

 Canadian Natural has a strong history of 25 consecutive years of growing its sustainable dividend with a CAGR of 21% over that time, demonstrating the sustainability of our business model, our strong balance sheet and the strength of our diverse, long life low decline reserves and asset base.

 Returns to shareholders in Q3/25 were strong, totaling approximately $1.5 billion, comprised of $1.2 billion of dividends and $0.3 billion through the repurchase and cancellation of approximately 7.2 million common shares at a weighted average price of $43.12 per share.

Year to date, up to and including November 5, 2025, the Company has returned a total of approximately $6.2 billion directly to shareholders through $4.9 billion in dividends and $1.3 billion through the repurchase and cancellation of approximately 29.6 million common shares at a weighted average price of $42.92 per share.

Subsequent to quarter end, Canadian Natural declared a quarterly cash dividend on its common shares of $0.5875 per common share. The quarterly dividend will be payable on January 6, 2026 to shareholders of record at the close of business on December 12, 2025.

CORPORATE UPDATE

Canadian Natural is pleased to announce the appointment of Ms. Shelley A.M. Brown, CM, FCPA, FCA, ICD.D, O.C., to the Board of Directors of the Company and to the Audit Committee effective November 4, 2025. Ms. Brown is a Chartered Accountant who retired as a Senior Audit Partner with Deloitte after more than 35 years in public accounting. Ms. Brown has extensive experience working with public companies in the mining and manufacturing sectors and has over 30 years of experience working with both non-profit and public company boards including in the role of audit committee chair. Ms. Brown holds a Bachelor of Commerce from the University of Saskatchewan and is a Fellow of the Institutes of Chartered Accountants of Alberta, Saskatchewan, British Columbia and Ontario.

OPERATIONS REVIEW

North America Oil Sands Mining and Upgrading

Three Months Ended

Nine Months Ended

Sep 30
2025

Jun 30
2025

Sep 30
2024

Sep 30
2025

Sep 30
2024
Synthetic crude oil production (bbl/d) (1)(2)
581,136

463,808

497,656

546,635

451,298
(1) SCO production before royalties and excludes production volumes consumed internally as diesel.
(2) Consists of heavy and light synthetic crude oil products.Oil Sands Mining and Upgrading production averaged 581,136 bbl/d of SCO in Q3/25, an increase of 17% from Q3/24 levels, reflecting the additional working interest in AOSP acquired in December 2024 combined with effective and efficient operations.

Oil Sands Mining and Upgrading achieved strong upgrader utilization in Q3/25 of 104%.

Oil Sands Mining and Upgrading operating costs are industry leading, averaging $21.29/bbl (US$15.46/bbl) of SCO in Q3/25.

Subsequent to quarter end, Canadian Natural closed the AOSP swap with Shell on November 1, 2025, with an effective date of March 1, 2025. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves and retains a non-operated 80% interest in the Scotford Upgrader and Quest Carbon Capture and Storage facilities.

The transaction adds approximately 31,000 bbl/d of annual, zero decline bitumen production, providing additional cash flow and enabling more effective and efficient operations between the Horizon and Albian mines.

At Horizon, the Company is progressing its Naphtha Recovery Unit Tailings Treatment ("NRUTT") project which targets incremental production of approximately 6,300 bbl/d of SCO, following mechanical completion in Q3/27.

North America Exploration and Production

Thermal In Situ Oil Sands

Three Months Ended

Nine Months Ended

Sep 30
2025

Jun 30
2025

Sep 30
2024

Sep 30
2025

Sep 30
2024
Bitumen production (bbl/d)
274,752

274,789

271,551

278,046

269,258
Net bitumen wells drilled
11

24

25

53

78
Net successful bitumen wells drilled
11

24

25

53

78
Success rate
100 %

100 %

100 %

100 %

100 %
Thermal in situ production averaged 274,752 bbl/d in Q3/25, comparable to Q3/24 levels.

Thermal in situ operating costs remain strong, averaging $10.35/bbl (US$7.52/bbl) in Q3/25, a decrease of 2% from Q3/24 levels of $10.52/bbl.

Canadian Natural has significant thermal in situ facility processing capacity of 340,000 bbl/d, resulting in approximately 70,000 bbl/d of annual available capacity. The Company has decades of strong capital efficient drill to fill growth opportunities on its long life low decline thermal in situ assets, which we continue to develop in a disciplined manner to deliver safe and reliable thermal in situ production.

At Primrose, the Company began drilling a Cyclic Steam Stimulation ("CSS") pad in Q3/25 with production targeted to come on in the second half of 2026.

At Jackfish, the Company brought a Steam Assisted Gravity Drainage ("SAGD") pad on production in July 2025 as planned.

At Kirby, the Company brought a five well-pair SAGD pad on production in late October 2025 as planned.

At Pike, the Company tied the two recently drilled SAGD pads into the Jackfish facilities. These two SAGD pads are targeted to keep the Jackfish facilities at full capacity with the first pad targeted to come on production in January 2026 and the second pad targeted to come on production in Q2/26.

Canadian Natural has been piloting solvent enhanced oil recovery technology on certain thermal in situ assets with an objective to increase bitumen production while reducing the Steam to Oil Ratio ("SOR") and optimizing solvent recovery. This technology has the potential for application throughout the Company's extensive thermal in situ asset base.

At the commercial scale solvent SAGD pad at Kirby North, current SOR reductions and solvent recoveries are meeting expectations following recent workovers and optimizations.

At Primrose, the Company is continuing to operate its solvent enhanced oil recovery pilot in the steam flood area to optimize solvent efficiency and to further evaluate this commercial development opportunity.

Crude oil and NGLs - excluding Thermal In Situ Oil Sands

Three Months Ended

Nine Months Ended

Sep 30
2025

Jun 30
2025

Sep 30
2024

Sep 30
2025

Sep 30
2024
Crude oil and NGLs production (bbl/d)
309,873

271,022

228,221

285,931

234,537
Net crude oil wells drilled
78

57

59

192

130
Net successful crude oil wells drilled
78

57

58

191

129
Success rate
100 %

100 %

98 %

99 %

99 %
North America E&P liquids production, excluding thermal in situ, averaged 309,873 bbl/d in Q3/25, an increase of 36% or approximately 82,000 bbl/d from Q3/24 levels, reflecting opportunistic acquisitions and strong organic growth from heavy crude oil multilaterals, liquids-rich natural gas and light crude oil, partially offset by natural field declines.

Primary heavy crude oil production averaged 87,705 bbl/d in Q3/25, an increase of 14% from Q3/24 levels, reflecting strong drilling results from the Company's multilateral wells, partially offset by natural field declines.

Canadian Natural's highly successful multilateral drilling program continues to unlock opportunity on our approximately 3 million net acres of high quality land throughout our primary heavy crude oil assets.

Operating costs in the Company's primary heavy crude oil operations averaged $16.46/bbl (US$11.95/‍bbl) in Q3/25, a decrease of 12% from Q3/24 levels, primarily as a result of higher production volumes and the increasing proportion of lower operating cost multilateral production.

Pelican Lake production averaged 42,070 bbl/d in Q3/25 a decrease of 7% from Q3/24 levels, reflecting planned maintenance in Q3/25 and the low natural field declines from this long life low decline asset.

Operating costs at Pelican Lake averaged $9.00/bbl (US$6.54/bbl) in Q3/25, an increase of 3% Q3/24 levels.

North America light crude oil and NGLs production averaged 180,098 bbl/d in Q3/25, an increase of 69% or approximately 74,000 bbl/d from Q3/24 levels, primarily reflecting production volumes from the acquisition of liquids-‍rich Duvernay assets in Q4/24, light crude oil Palliser Block assets in Q2/25 and the liquids-rich Montney assets in the Grande Prairie area in Q3/25.

Operating costs in the Company's North America light crude oil and NGLs operations averaged $12.91/‍bbl (US$9.38/bbl) in Q3/25, a decrease of 6% from Q3/24 levels of $13.73/bbl, primarily reflecting higher production volumes.

As previously announced, on July 2, 2025, Canadian Natural closed an acquisition of liquids-rich Montney assets located in the Grande Prairie area for approximately $750 million, which included production of approximately 32,000 BOE/d, including 12,500 bbl/d of NGLs.

North America Natural Gas

Three Months Ended

Nine Months Ended

Sep 30
2025

Jun 30
2025

Sep 30
2024

Sep 30
2025

Sep 30
2024
Natural gas production (MMcf/d)
2,658

2,398

2,039

2,498

2,091
Net natural gas wells drilled
17

22

24

58

65
Net successful natural gas wells drilled
17

22

24

58

64
Success rate
100 %

100 %

100 %

100 %

98 %
 North America natural gas production averaged 2,658 MMcf/d in Q3/25, an increase of 30% from Q3/24 levels, primarily reflecting opportunistic acquisitions and strong drilling results in the Company's liquids-rich natural gas assets, partially offset by natural field declines.

North America natural gas operating costs averaged $1.14/Mcf in Q3/25, a decrease of 7% from Q3/24 levels of $1.23/Mcf, primarily reflecting higher production volumes and cost efficiencies.

International Exploration and Production

Three Months Ended

Nine Months Ended

Sep 30
2025

Jun 30
2025

Sep 30
2024

Sep 30
2025

Sep 30
2024
Crude oil production (bbl/d)
9,843

9,530

24,144

12,247

24,293
Natural gas production (MMcf/d)
10

9

10

12

11
International E&P crude oil production volumes averaged 9,843 bbl/d in Q3/25, a decrease of 59% compared to Q3/24 levels. The decrease reflects temporary suspension of production at Baobab in Offshore Africa due to the planned refurbishment on its floating production storage and offloading ("FPSO") vessel, both planned and unplanned maintenance and planned decommissioning activities in the North Sea and natural field declines.

The annual production impact in 2025 from the planned Baobab FPSO refurbishment is targeted to be approximately 7,800 bbl/d, with production targeted to resume in Q2/26.

Drilling Activity
Nine Months Ended

September 30, 2025

September 30, 2024
(number of wells)
Gross

Net

Gross

Net
Crude oil (1)
252

244

212

207
Natural gas
73

58

77

64
Dry
1

1

2

2
Subtotal
326

303

291

273
Stratigraphic test / service wells
516

493

460

394
Total
842

796

751

667
Success rate (excluding stratigraphic test / service wells)
 

99 %

 

99 %
(1) Includes bitumen wells.Canadian Natural drilled a total of 303 net crude oil and natural gas wells in the first nine months of 2025, 30 more than in the first nine months of 2024.MARKETING

Three Months Ended

Nine Months Ended

Sep 30
2025

Jun 30
2025

Sep 30
2024

Sep 30
2025

Sep 30
2024
Benchmark Commodity Prices

WTI benchmark price (US$/bbl) (1) $64.95
$63.71
$75.16
$66.67
$77.55
WCS heavy differential (discount) to WTI (US$/bbl) (1) $(10.36)$(10.19)$(13.51) $(11.07)$(15.46)WCS heavy differential as a percentage of WTI (%) (1)
16 %

16 %

18 %

17 %

20 %
Condensate benchmark price (US$/bbl) $63.12
$63.42
$71.24
$65.45
$73.71
SCO price (US$/bbl) (1) $66.26
$64.69
$76.51
$66.66
$76.42
SCO premium (discount) to WTI (US$/bbl) (1) $1.31
$0.98
$1.35
$(0.01)$(1.13)AECO benchmark price (C$/GJ) $0.94
$1.97
$0.77
$1.61
$1.35
Realized Prices
 

 

 

 

 
Exploration & Production liquids realized price
(C$/bbl) (2)(3)(4)(5) $72.57
$69.58
$79.15
$74.06
$78.67
SCO realized price (C$/bbl) (1)(3)(4)(5) $87.85
$87.22
$100.93
$90.45
$99.19
Natural gas realized price (C$/Mcf) (4) $1.49
$2.58
$1.25
$2.37
$1.80
(1) West Texas Intermediate ("WTI"); Western Canadian Select ("WCS"); Synthetic Crude Oil ("SCO").
(2) Exploration & Production crude oil and NGLs average realized price excludes SCO.
(3) Pricing is net of blending and feedstock costs.
(4) Excludes risk management activities.
(5) Non-GAAP ratio. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A. Canadian Natural has a balanced and diverse product mix of SCO, light crude oil, NGLs, heavy crude oil, bitumen and natural gas, complemented with a balanced and diverse marketing strategy.

Canadian Natural has total contracted crude oil transportation capacity of 256,500 bbl/d, with committed volumes to Canada's west coast and to the United States Gulf Coast, being approximately‍ ‌22% of 2025 forecasted liquids production. The egress supports Canadian Natural's long-term sales strategy by targeting expanded refining markets, driving stronger netbacks while also reducing exposure to egress constraints.

The North West Redwater refinery primarily utilizes bitumen as feedstock, with production of ultra-low sulphur diesel and other refined products averaging 38,434 bbl/d in Q3/25, reflecting the successful completion of the planned turnaround during the quarter.

Canadian Natural has a diversified natural gas marketing strategy with the Company targeting in 2025 to use the equivalent of approximately 31% of forecasted natural gas production in its Oil Sands Mining and Upgrading and thermal operations, with approximately 38% targeted to be sold at AECO/Station 2 pricing, and approximately 31% targeted to be exported to other North American and international markets capturing higher natural gas prices, maximizing value.

Canadian Natural has entered into a long-term natural gas supply agreement with Cheniere Energy, Inc. ("Cheniere") where the Company has agreed to sell 140,000 MMBtu/d of natural gas to Cheniere for a term of 15 years, with delivery anticipated to begin in 2030, subject to a number of conditions precedent including a positive final investment decision of the Sabine Pass Liquefaction Expansion Project by Cheniere.

Under the terms of the agreement, Canadian Natural will deliver natural gas to Cheniere in Chicago and receive a Japan Korea Marker ("JKM") index price less deductions for transportation and liquefaction.

ADVISORY

Special Note Regarding Forward-Looking Statements

Certain statements relating to Canadian Natural Resources Limited (the "Company") in this document or documents incorporated herein by reference constitute forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements can be identified by the words "believe", "anticipate", "expect", "plan", "estimate", "target", "focus", "continue", "could", "intend", "may", "potential", "predict", "should", "will", "objective", "project", "forecast", "goal", "guidance", "outlook", "effort", "seeks", "schedule", "proposed", "aspiration", or expressions of a similar nature suggesting future outcome or statements regarding an outlook. Disclosure related to the Company's strategy or strategic focus, capital budget, expected future commodity pricing, forecast or anticipated production volumes, royalties, production expenses, capital expenditures, forecast and anticipated abandonment expenditures, income tax expenses, and other targets provided throughout this Management's Discussion and Analysis ("MD&A") of the financial condition and results of operations of the Company, including the strength of the Company's balance sheet, the sources and adequacy of the Company's liquidity, and the flexibility of the Company's capital structure, constitute forward-looking statements. Disclosure of plans relating to and expected results of existing and future developments, including, without limitation, those in relation to: the Company's assets at Horizon Oil Sands ("Horizon"), the Athabasca Oil Sands Project ("AOSP"), the Primrose thermal oil projects ("Primrose"), the Pelican Lake water and polymer flood projects ("Pelican Lake"), the Kirby thermal oil sands project ("Kirby"), the Jackfish thermal oil sands project ("Jackfish") and the North West Redwater bitumen upgrader and refinery; construction by third parties of new, or expansion of existing, pipeline capacity or other means of transportation of bitumen, crude oil, natural gas, natural gas liquids ("NGLs"), or synthetic crude oil ("SCO") that the Company may be reliant upon to transport its products to market; the maintenance of the Company's facilities and any expected return to service dates; the construction, expansion, or maintenance of third-party facilities that process the Company's products; the abandonment and decommissioning of certain assets and the timing thereof; the development and deployment of technology and technological innovations; the financial capacity of the Company to complete its growth projects and responsibly and sustainably grow in the long-term; and the materiality of the impact of tax interpretations and litigation on the Company's results, also constitute forward-looking statements. These forward-looking statements are based on annual budgets and multi-year forecasts and are reviewed and revised throughout the year as necessary in the context of targeted financial ratios, project returns, product pricing expectations, and balance in project risk and time horizons. These statements are not guarantees of future performance and are subject to certain risks. The reader should not place undue reliance on these forward-looking statements as there can be no assurances that the plans, initiatives, or expectations upon which they are based will occur. In addition, statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves described can be profitably produced in the future. There are numerous uncertainties inherent in estimating quantities of proved and proved plus probable crude oil, natural gas, and NGLs reserves and in projecting future rates of production and the timing of development expenditures. The total amount or timing of actual future production may vary significantly from reserves and production estimates.

The forward-looking statements are based on current expectations, estimates, and projections about the Company and the industry in which the Company operates, which speak only as of the earlier of the date such statements were made or as of the date of the report or document in which they are contained, and are subject to known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions (including as a result of the actions of the Organization of the Petroleum Exporting Countries Plus ("OPEC+"), the impact of conflicts in the Middle East and in Ukraine, increased inflation, and the risk of decreased economic activity resulting from a global recession) which may impact, among other things, demand and supply for and market prices of the Company's products, and the availability and cost of resources required by the Company's operations; volatility of and assumptions regarding crude oil, natural gas and NGLs prices; fluctuations in currency and interest rates; assumptions on which the Company's current targets are based; economic conditions in the countries and regions in which the Company conducts business; changes and uncertainties in the international trade environment, including with respect to tariffs, export restrictions, embargoes, and key trade agreements (including uncertainties around US imposed tariffs, and actual or potential Canadian countermeasures, both of which continue to evolve and may be continued, suspended, increased, decreased, or expanded); uncertainty in the regulatory framework governing greenhouse gas emissions including, among other things, financial and other support from various levels of government for climate related initiatives and potential emissions or production caps; civil unrest and political uncertainty, including changes in government, actions of or against terrorists, insurgent groups, or other conflict including conflict between states; the ability of the Company to prevent and recover from a cyberattack, other cyber-related crime, and other cyber-related incidents; industry capacity; ability of the Company to implement its business strategy, including exploration and development activities; the impact of competition; the Company's defense of lawsuits; availability and cost of seismic, drilling, and other equipment; ability of the Company to complete capital programs; the Company's ability to secure adequate transportation for its products; unexpected disruptions or delays in the mining, extracting, or upgrading of the Company's bitumen products; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; ability of the Company to attract the necessary labour required to build, maintain, and operate its thermal and oil sands mining projects; operating hazards and other difficulties inherent in the exploration for and production and sale of crude oil and natural gas and in the mining, extracting, or upgrading the Company's bitumen products; availability and cost of financing; the Company's success of exploration and development activities and its ability to replace and expand crude oil and natural gas reserves; the Company's ability to meet its targeted production levels; timing and success of integrating the business and operations of acquired companies and assets; production levels; imprecision of reserves estimates and estimates of recoverable quantities of crude oil, natural gas and NGLs not currently classified as proved; changes to future abandonment and decommissioning costs, actions by governmental authorities; government regulations and the expenditures required to comply with them (especially safety, competition, environmental laws and regulations, and the impact of climate change initiatives on capital expenditures and production expenses); interpretations of applicable tax and competition laws and regulations; asset retirement obligations; the sufficiency of the Company's liquidity to support its growth strategy and to sustain its operations in the short-, medium-, and long-term; the strength of the Company's balance sheet; the flexibility of the Company's capital structure; the adequacy of the Company's provision for taxes; the impact of legal proceedings to which the Company is party; and other circumstances affecting revenues and expenses.

The Company's operations have been, and in the future may be, affected by political developments and by national, federal, provincial, state, and local laws and regulations such as restrictions on production, the imposition of tariffs, embargoes, or export restrictions on the Company's products (including uncertainties around US imposed tariffs, and actual or potential Canadian countermeasures, both of which continue to evolve and may be continued, suspended, increased, decreased, or expanded), changes in taxes, royalties and other amounts payable to governments or governmental agencies, price or gathering rate controls and environmental protection regulations. Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors, and the Company's course of action would depend upon its assessment of the future considering all information then available.

Readers are cautioned that the foregoing list of factors is not exhaustive. Unpredictable or unknown factors not discussed in this document could also have adverse effects on forward-looking statements. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be given as to future results, levels of activity, and achievements. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Except as required by applicable law, the Company assumes no obligation to update forward-looking statements in this document, whether as a result of new information, future events or other factors, or the foregoing factors affecting this information, should circumstances or the Company's estimates or opinions change.

Special Note Regarding Common Share Split and Comparative Figures

At the Company's Annual and Special Meeting held on May 2, 2024, shareholders passed a Special Resolution approving a two for one common share split effective for shareholders of record as of market close on June 3, 2024. On June 10, 2024, shareholders of record received one additional share for every one common share held, with common shares trading on a split-adjusted basis beginning June 11, 2024. Common share, per common share, dividend, and stock option amounts for periods prior to the two for one common share split have been updated to reflect the common share split.

Special Note Regarding Amendments to the Competition Act (Canada)

On June 20, 2024, amendments to the Competition Act (Canada) came into force with the adoption of Bill C-59, An Act to Implement Certain Provisions of the Fall Economic Statement which impact environmental and climate disclosures by businesses. As a result of these amendments, certain public representations by a business regarding the benefits of the work it is doing to protect or restore the environment or mitigate the environmental and ecological causes or effects of climate change may violate the Competition Act's deceptive marketing practices provisions. These amendments include substantial financial penalties and, effective June 20, 2025, a private right of action which permits private parties to seek an order from the Competition Tribunal under the deceptive marketing practices provisions. Uncertainty surrounding the interpretation and enforcement of this legislation may expose the Company to increased litigation and financial penalties, the outcome and impacts of which can be difficult to assess or quantify and may have a material adverse effect on the Company's business, reputation, financial condition, and results.

Special Note Regarding Currency, Financial Information and Production

This document should be read in conjunction with the Company's MD&A and unaudited interim consolidated financial statements (the "financial statements") for the three and nine months ended September 30, 2025, and the Company's MD&A and audited consolidated financial statements for the year ended December 31, 2024. All dollar amounts are referenced in millions of Canadian dollars, except where noted otherwise. The Company's MD&A and financial statements for the three and nine months ended September 30, 2025 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

Production volumes and per unit statistics are presented throughout this document on a "before royalties" or "company gross" basis, and realized prices are net of blending and feedstock costs and exclude the effect of risk management activities. In addition, reference is made to crude oil and natural gas in common units called barrel of oil equivalent ("BOE"). A BOE is derived by converting six thousand cubic feet ("Mcf") of natural gas to one barrel ("bbl") of crude oil (6 Mcf: 1 bbl). This conversion may be misleading, particularly if used in isolation, since the 6 Mcf: 1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In comparing the value ratio using current crude oil prices relative to natural gas prices, the 6 Mcf: 1 bbl conversion ratio may be misleading as an indication of value. In addition, for the purposes of this document, crude oil is defined to include the following commodities: light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and SCO. Production on an "after royalties" or "company net" basis is also presented for information purposes only.

Additional information relating to the Company, including its Annual Information Form for the year ended December 31, 2024, is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov. Information in such Annual Information Form and on the Company's website does not form part of and is not incorporated by reference in the Company's MD&A, dated November 5, 2025.

ADVISORY

Special Note Regarding Non-GAAP and Other Financial Measures

This document includes references to Non-GAAP and Other Financial Measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). These financial measures are used by the Company to evaluate its financial performance, financial position, and cash flow and include non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary financial measures. These financial measures are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures. The non-GAAP and other financial measures used by the Company may not be comparable to similar measures presented by other companies and should not be considered an alternative to, or more meaningful than, the most directly comparable financial measure presented in the financial statements, as applicable, as an indication of the Company's performance. Descriptions of the Company's non-GAAP and other financial measures included in this this document and the Company's MD&A and reconciliations to the most directly comparable GAAP measure, as applicable, are provided below as well as in the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for the three and nine months ended September 30, 2025 dated November 5, 2025.

Free Cash Flow Allocation Policy

Free cash flow is a non-GAAP financial measure. The Company considers free cash flow a key measure in demonstrating the Company's ability to generate cash flow to fund future growth through capital investment, pay returns to shareholders and to repay or maintain net debt levels, pursuant to the free cash flow allocation policy.

The Company's free cash flow is used to determine the targeted amount of shareholder returns after dividends. The amount allocated to shareholders varies depending on the Company's net debt position.

Free cash flow is calculated as adjusted funds flow less dividends on common shares, net capital expenditures and abandonment expenditures. The Company targets to manage the allocation of free cash flow on a forward looking annual basis, while managing working capital and cash management as required.

Up to October 2024, before the announcement of the Chevron acquisition, the Company was targeting to allocate 100% of its free cash flow in 2024 to shareholder returns.

In October 2024, with the announcement of the Chevron acquisition, the Board of Directors adjusted the allocation of free cash flow as follows:

60% of free cash flow to shareholder returns and 40% to the balance sheet until net debt reaches $15 billion.

When net debt is between $12 billion and $15 billion, free cash flow allocation will be 75% to shareholder returns and 25% to the balance sheet.

When net debt is at or below $12 billion, free cash flow allocation will be 100% to shareholder returns.

The Company's free cash flow for the three months ended September 30, 2025 and comparable periods is shown below:

Three Months Ended
($ millions)
Sep 30
2025

Jun 30
2025

Sep 30
2024
Adjusted funds flow (1) $3,920
$3,262
$3,921
Less: Dividends on common shares
1,228

1,233

1,118
Net capital expenditures(2)
2,124

1,915

1,349
Abandonment expenditures
189

193

204
Free cash flow $379
$(79)$1,250
(1) Refer to the descriptions and reconciliations to the most directly comparable GAAP measure, which are provided in the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for the three and nine months ended September 30, 2025 dated November 5, 2025.
(2) Non-GAAP Financial Measure. The composition of this measure was updated in the fourth quarter of 2024. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for the three and nine months ended September 30, 2025 dated November 5, 2025.Long-term Debt, net

Long-term debt, net (also referred to as net debt) is a capital management measure that is calculated as current and long-term debt less cash and cash equivalents.

($ millions)
Sep 30
2025

Jun 30
2025

Dec 31
2024

Sep 30
2024
Long-term debt$17,268
$17,081
$18,819
$10,029
Less: cash and cash equivalents
113

102

131

721
Long-term debt, net$17,155
$16,979
$18,688
$9,308
Breakeven WTI Price

The breakeven WTI price is a supplementary financial measure that represents the equivalent US dollar WTI price per barrel where the Company's adjusted funds flow is equal to the sum of maintenance capital and dividends. The Company considers the breakeven WTI price a key measure in evaluating its performance, as it demonstrates the efficiency and profitability of the Company's activities. The breakeven WTI price incorporates the non-GAAP financial measure adjusted funds flow as reconciled in the "Non-GAAP and Other Financial Measures" section of the Company's MD&A. Maintenance capital is a supplementary financial measure that represents the capital required to maintain annual production at prior period levels.

Capital Budget

Capital budget is a forward-looking non-GAAP financial measure. The capital budget is based on net capital expenditures (non-GAAP financial measure) and includes acquisition capital related to a number of acquisitions for which agreements between parties have been reached as at the time of the Company's 2025 budget press release on January 9, 2025. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for more details on net capital expenditures.

The 2025 capital forecast reflects forecasted net capital expenditures, before abandonment expenditures related to the execution of the Company's abandonment and reclamation programs in North America and the North Sea. The Company currently carries an Asset Retirement Obligation ("ARO") liability on its balance sheet for these forecasted future expenditures. Abandonment expenditures are reported before the impact of current income tax recoveries in Canada and the UK portion of the North Sea. The Company is eligible to recover interest on related to tax recoveries in the North Sea.

Capital Efficiency

Capital efficiency is a supplementary financial measure that represents the capital spent to add new or incremental production divided by the current rate of the new or incremental production. It is expressed as a dollar amount per flowing volume of a product ($‍/‍bbl/‍‍d or $/‍BOE‍/‍d). The Company considers capital efficiency a key measure in evaluating its performance, as it demonstrates the efficiency of the Company's capital investments.

CONFERENCE CALL

Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) will be issuing its 2025 Third Quarter Earnings Results on Thursday, November 6, 2025 before market open.

A conference call will be held at 9:00 a.m. MDT / 11:00 a.m. EDT on Thursday, November 6, 2025.

Dial-in to the live event:

North America 1-800-717-1738 / International 001-289-514-5100.

Listen to the audio webcast:

Access the audio webcast on the home page of our website, www.cnrl.com.

Conference call playback:

North America 1-888-660-6264 / International 001-289-819-1325 (Passcode: 56299#)

Canadian Natural is a senior crude oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore Africa.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273369

SINGAPORE, SG / ACCESS Newswire / November 6, 2025 / Ryde Group Ltd (NYSE American: RYDE) ("Ryde" or the "Company"), a leading technology platform for mobility and quick commerce in Singapore, today announced a new collaboration with Kris+, the lifestyle rewards app of Singapore Airlines, enabling KrisFlyer members to redeem their miles for RydeCoins at exclusive discounted rates via the Kris+ app. Through this collaboration, members can now enjoy greater flexibility and value from their miles, whether commuting to work, heading to the airport, or travelling across the city.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TGB over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

SummaryDXP Enterprises (DXPE) remains a Strong Buy ahead of Q3 earnings. I expect EPS growth of 8%-15% and modest revenue upside.IPS segment backlog is at an all-time high, driving margin expansion and profitability; recent M&A activity adds incremental revenue tailwinds.Service Centers provide stability while SCS is expected to show sequential margin improvement as a large contract turned profitable in July.The setup is favorable: backlog strength, disciplined execution, and ongoing M&A support both near-term results and longer-term multiple expansion.Analyst’s Disclosure:I/we have a beneficial long position in the shares of DXPE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

EDP Renováveis, S.A. (OTCPK:EDRVY) Q3 2025 Earnings Call November 6, 2025 3:00 AM EST

Company Participants

Miguel Viana - Head of Investor Relations & Sustainability
Miguel de Andrade - Chairman of the Executive Board of Directors & CEO
Rui Manuel Rodrigues Teixeira - CFO & Member of the Executive Board of Directors

Presentation

Operator

Good morning. We welcome you to the EDP and EDP Renewables 9 Months 2025 Results Presentation. [Operator Instructions]

I now hand the conference over to Mr. Miguel Viana, Head of IR and ESG. Please go ahead, sir.

Miguel Viana
Head of Investor Relations & Sustainability

Good morning. Welcome to EDP and EDPR 9 Months 2025 Results Conference Call. We have with us today our CEO, Miguel Stilwell d' Andrade; and our CFO, Rui Teixeira, that will present you the main highlights of EDP and EDPR financial performance in the first 9 months of 2025.

The presentation will be followed by a Q&A session in which we'll be receiving just written questions that you can insert from now onwards in the text box available in the webcast. As we'll have just later on at 10:00 a.m. London time, our Capital Markets Day presentation. So the Q&A session will be focused on teams around the 9 months financial performance.

I'll pass now the floor to our CEO, Miguel Stilwell d' Andrade.

Miguel de Andrade
Chairman of the Executive Board of Directors & CEO

Thank you, Miguel, and good morning, everyone. So thank you for attending our 9 months 2025 results conference call. As Miguel said, we'll be doing the EDP results and then the EDPR, so really a 2-in-1 call, but for the reasons that Miguel has already mentioned. And so I'll go straight into the EDP overall numbers.

If we go to Slide 3, we'll see the recurring net

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Key Takeaways
Quantum computing stocks have rallied even more dramatically than AI stocks in the past year as investors increased their bets on the technology.Technological breakthroughs from tech giants like Google have increased quantum's visibility and potentially expedited the technology's commercialization.Still, the stocks are susceptible to dramatic swings driven by the slightest shifts in sentiment.

Move over, AI.

Quantum computing stocks—those representing a technology that teases vast computing power—have soared in the past year, making even the artificial-intelligence rally look tame. Shares of D-Wave Quantum (QBTS) and Rigetti Computing (RGTI) have soared 2,700% and 3,100%, respectively, over that period. Quantum Computing (QUBT) is up 1,100%. IonQ (IONQ), up 250%, is the laggard of the bunch. 

Only a few of Wall Street’s favorite AI stocks have posted comparable gains in the past 12 months. Software companies Palantir (PLTR) and Applovin (APP), lauded for their AI-driven growth, have risen roughly 300% in the past year. Nvidia (NVDA), the poster child of the AI boom, has gained about 44%.

Rallies typically slow with age, so it's understandable that the fresher theme has more momentum behind it—particularly at a time when investors have been willing to lean into speculative concepts and companies. But compare quantum stocks over the past year and AI stocks in the year after ChatGPT was released, and quantum still dramatically outpaces AI: Nvidia shares rose 206% in the 12 months starting Nov. 30, 2022, while server maker Super Micro Computer (SMCI) soared 212%.

Why This Is Important
Everyday investors often fear they're missing out when they see asset prices skyrocketing the way quantum computing stocks have. That fear can drive investors to make risky bets on poorly understood stocks that they panic sell at a loss when the rally hits a rough patch.

Granted, Wall Street didn’t immediately grasp how significant ChatGPT would be for Nvidia, and the chipmaker’s stock gains accelerated in 2023. But even in the yearlong period that Nvidia rose the fastest—between March 2023 and March 2024—its approximately 300% return still pales in comparison to most quantum stocks in the last 12 months.

What's Driving the Quantum Craze?
A string of technological breakthroughs and Big Tech investments has raised quantum computing’s visibility on Wall Street over the past year. 

Last December, Google (GOOG) unveiled Willow, a quantum chip that it claims can solve a problem in 5 minutes that would take the world’s fastest supercomputer 10 septillion years to complete. (That’s 714 trillion times the estimated age of the universe.) Microsoft (MSFT) debuted its own quantum chip in February, and Nvidia last month unveiled hardware designed specifically to connect quantum computers and the accelerated computing chips that power AI.

As with the early days of the AI rally, quantum investors are betting the nascent technology will have profound implications for the economy and business. Quantum computing is expected to drive advancements in drug discovery, advanced manufacturing, cybersecurity, financial modeling, and logistics, to name just a few of its possible commercial applications. 

Due to the speculative nature of quantum investments, the stocks swing dramatically on the slightest shift in sentiment. Shares of Rigetti plummeted 45% one day in January when Nvidia CEO Jensen Huang said he believed a “very useful” quantum computer was still about 20 years out.

Quantum stocks, despite their recent run-up, are relatively small compared with AI darlings. The four aforementioned companies have market capitalizations ranging from $2.5 billion (D-Wave Quantum) to $18.5 billion (IonQ)—valuations that are by no means small, but which are dwarfed by Nvidia's $5 trillion market cap.

Another factor driving the stocks higher in recent months: the Trump administration's hands-on approach to public-private partnerships. The Wall Street Journal recently reported the White House was in talks to invest in several quantum computing companies. The Trump administration, which has struck similar deals with chipmaker Intel (INTC) and rare earths miners, denied the reports, but that didn't stop quantum stocks from soaring.

What's the Path To Commercialization?
Huang’s 20-year quantum timeline may be one of the most pessimistic forecasts out there, but the technology does face hurdles to commercialization. Quantum computers are too error-prone to achieve “quantum advantage"—the point at which a quantum computer can solve a real-world problem faster than a classical computer—according to a recent Bank of America report.

Last month, IonQ announced it had achieved fidelity—a measure of computational accuracy—of 99.99%, a record for quantum computers that essentially means the computer would make one mistake for every 10,000 computations. But the binary computers we use today boast much higher fidelity, making a mistake in one out of every 10 quintillion computations, according to BofA. To achieve “quantum advantage,” BofA estimates quantum will need to reach fidelity of 99.9999%. 

And it may be difficult to integrate quantum computers with existing digital infrastructure like data centers and software, according to BofA.

Nonetheless, consulting firm McKinsey estimates the quantum computing market could reach $97 billion by 2035, and nearly $200 billion by 2040. And monetization by leading technology companies may not be that far off: Bank of America analysts in a note last month said they expect quantum computing to have a material impact on computing pioneer IBM’s (IBM) results by 2030.

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Investors may have bit off more than they can chew with Wall Street's artificial intelligence (AI) darlings.

Over the last three years, nothing has captivated the attention and pocketbooks of investors quite like the evolution of artificial intelligence (AI). The capacity for software and systems to make split-second decisions without human intervention, and to potentially grow more efficient at their assigned tasks over time, is a game-change for most industries.

The pie-in-the-sky addressable market for AI -- $15.7 trillion by 2030, according to a report from PwC -- has sent shares of AI data-mining specialist Palantir Technologies (PLTR 1.54%) and graphics processing unit (GPU) kingpin Nvidia (NVDA 1.71%) soaring. Since the end of 2022, Palantir shares have skyrocketed 2,870%, while Nvidia stock has rallied 1,260% and crested the $5 trillion market cap plateau.

Image source: Getty Images.

While it's plainly evident that professional and everyday investors are excited about the growth potential and real-world utility of AI, Palantir's latest operating results revealed an undeniable weakness for Wall Street's AI darlings that should become apparent when Nvidia unveils its quarterly operating results on Nov. 19.

Palantir's biggest flaw was just exposed
Make no mistake about it, Palantir's stock has gone parabolic for a reason. It's a company with well-defined competitive advantages that's made a recent habit of leaping over the consensus revenue and profit expectations of Wall Street analysts.

The true beauty of Palantir's operating model is that no large-scale competitors for its two core operating systems (Gotham and Foundry) exist.

Gotham is the company's breadwinner, at the moment. It's a cloud-based, AI-driven, software-as-a-service platform that helps the U.S. military and its allies plan and oversee missions, as well as collect and analyze data. Palantir typically secures four- or five-year contracts from federal governments, which have sustained double-digit sales growth, pushed the company into recurring profitability, and has made forecasting its operating cash flow highly predictable.

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The other core segment is Foundry, which is a subscription service that helps businesses make sense of their data. It can streamline their operations by improving manufacturing efficiency, tightening up supply chains, and automating certain tasks.

The lack of large-scale competition was evident for Palantir during the September-ended quarter. Its $1.18 billion in quarterly sales topped expectations by a cool $90 million. The company also guided for $1.33 billion in fourth-quarter revenue, which was $140 million above the consensus.

But on Nov. 4, the day after Palantir unveiled its operating results following the closing bell, shares of the company tumbled more than $16, or close to 8%. In terms of market cap, we're talking about a loss of $39 billion.

PLTR PS Ratio data by YCharts. PS Ratio = price-to-sales ratio.

What this sizable move lower in Palantir stock showed was that no earnings or revenue beat would have been sufficient to justify its premium valuation.

As of the closing bell on Nov. 3 (i.e., in the minutes leading up to Palantir's earnings release), shares of the company were valued at a price-to-sales (P/S) ratio of 152! To put this figure into perspective, the internet companies leading the charge prior to the dot-com bubble bursting in early 2000 peaked at P/S ratios ranging from 31 to 43. Consistently, this range has served as a ceiling for hyped megacap stocks on the cutting edge of a next-big-thing trend. Palantir entered its earnings report at four to five times this historical ceiling.

Whereas Wall Street analysts are known for setting the bar conservatively when establishing sales and profit expectations, there was simply no beat that would have justified Palantir's P/S ratio.

Image source: Nvidia.

Palantir's tumble foreshadows one of the biggest issues with Nvidia
However, an outlandish valuation isn't an issue exclusive to Palantir. It's a problem that's somewhat pervasive among AI stocks, including the stock market's largest publicly traded company, Nvidia.

Similar to Palantir, Nvidia's well-defined competitive advantages have lifted its valuation to new heights. Though estimates are all over the board, some analysts view Nvidia's share of GPUs deployed in AI-accelerated data centers at 90% or above. Demand for Nvidia's three generations of AI chips (Hopper, Blackwell, and Blackwell Ultra) have been backlogged.

Nvidia CEO Jensen Huang is ensuring that his company won't cede its spot at the head of the AI hardware table anytime soon. He's overseeing the development and launch of a new advanced GPU on an annual basis. Following the ramp up of Blackwell Ultra is Vera Rubin and Vera Rubin Ultra, which should make their commercial debuts in the latter-halves of 2026 and 2027. None of Nvidia's external competitors have been particularly close to matching the compute capabilities of Hopper, Blackwell, or Blackwell Ultra.

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The other core advantage of Nvidia is its CUDA software platform, which is the toolkit developers use to maximize the compute capabilities of their AI-GPUs, as well as to build and train large language models. CUDA is sort of an unsung hero for Nvidia in that it keeps customers loyal to the company's ecosystem of products and services.

When Nvidia reports is fiscal third-quarter operating results after the closing bell on Nov. 19, there's a very good probability it's going to handily surpass Wall Street's expectations. But similar to Palantir, I wouldn't expect this beat to be anywhere near enough to justify its current valuation.

Although Nvidia has pulled back from a peak P/S ratio of a little over 42, which was reached during the summer of 2023, it did end the Nov. 3 trading session at a P/S ratio of 31. It's right back in the range that history tells us isn't sustainable and is typically a marker for bubbles.

NVDA PS Ratio data by YCharts.

Speaking of bubbles, did you know that we haven't had a game-changing investment trend in over 30 years avoid an early stage bubble-bursting event? Starting with and including the internet, we've watched bubbles form and burst with genome decoding, nanotechnology, China stocks, 3D printing, blockchain technology, cannabis, and the metaverse. Nothing suggests artificial intelligence will be the exception to this unwritten rule.

If investors have, once again, overshot with their expectations for early stage AI adoption and utility, Nvidia would be among the hardest-hit companies. It's trending toward generating 90% of its revenue from its data center segment.

Furthermore, Nvidia isn't shielded from competitive pressures. Though it's run circles around external GPU developers, many of its largest customers by net sales have been internally developing AI-GPUs for their data centers. These internally developed chips are much cheaper and more readily accessible than Nvidia's hardware. Despite not matching Nvidia's chips on a compute basis, these GPUs can reduce the AI-GPU scarcity that's fueled Nvidia's pricing power and gross margin.

Palantir exposed Nvidia's biggest weakness -- its historically unsustainable valuation premium -- and it'll be on full display come Nov. 19.