Republican Who Flip-Flopped on Energy Credits Risks Voters' Ire
Yet in the end, she cast the deciding vote in favor of the bill despite its blow to wind and solar. Now the swift elimination of those subsidies, a rollback that also remains in the Senate version of the legislation, put Kiggans at odds with many in her district — already among the most competitive in the nation — as Democrats seize any opening to take Republicans' House narrow majority next year.
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Analysis-Global power grid expansion fuels fresh copper demand surge
By Pratima Desai and Ashitha Shivaprasad (Reuters) -Copper demand is rising faster than the industry anticipated, driven by billions of dollars being invested worldwide to modernise and expand power grids for the digital and clean energy revolutions that need vast amounts of electricity. Meanwhile, supply from major producers including Chile and the Democratic Republic of Congo is constrained by a lack of investment in new mines, setting the stage for a prolonged period of high prices. Some analysts predict copper prices will hit records above $12,000 a ton before the end of the decade, an increase of 23% from current levels around $9,700 a ton. Consumers are exploring alternatives, but copper's superior conductivity, durability, and versatility has made it hard to replace. Grid investment alone is forecast to top $400 billion this year having set a record high of $390 billion in 2024, according to the International Energy Agency. "Copper is often a massively underestimated part of grid infrastructure. People recognise the need to expand the grid, but often misjudge the sheer volume of copper this will require," said Michael Finch, head of strategic initiatives at consultancy Benchmark Mineral Intelligence (BMI), pointing to investment needed in the U.S., the UK and China in particular. BMI expects copper demand for upgrading power generation and transmission networks globally to rise to 14.87 million metric tons by 2030 up from 12.52 million tons this year, in new figures given to Reuters. DATA CENTRES, ELECTRIC VEHICLES DRIVE GRID DEMAND Bank of America analyst Michael Widmer expects global copper demand to increase 10% to 30.32 million tons by 2030 from this year. Widmer expects the global copper market deficit to reach 1.84 million tons in 2030. The need for resilient grids is particularly acute in regions experiencing rapid growth of data centres powering artificial intelligence and machine learning. "Artificial Intelligence and machine learning data centres need bigger, better, faster computing," and that means more power, said Peter Charland, Global Information and Communications Technology Leader at AECOM, a global infrastructure consulting company. Consultancy CRU told Reuters it expects copper demand from data centres to reach 260,000 tons this year, up from 78,000 tons in 2020 and exceeding 650,000 tons by 2030. "Electricity grid infrastructure is a bottleneck and not limited to data centre application. It extends to onshore and offshore wind power, solar and electric vehicles," said Egest Balla, wire and cable research analyst at consultancy CRU. Electric vehicles also require significantly more copper than traditional internal combustion engine vehicles. BMI forecasts copper demand for electric vehicles will jump to 2.2 million tons in 2030, compared with 1.2 million tons in 2025, up from just 204,000 tons in 2020. "We are moving from copper demand that was cyclical to demand that is more structural," said Maria Cristina Bifulco, chief investor relations and sustainability officer at Italian cable producer Prysmian, the world's largest copper buyer. Prysmian buys 2%-3% of global refined copper production. ALUMINIUM, FIBRE OPTIC CABLING CONSIDERED Looming shortages and record high prices have triggered a wave of innovation including substitution and recycling in industries such as construction and manufacturing where copper costs are a large proportion of total production costs. While aluminium has long been considered a cheaper alternative, at roughly a third of the costs of copper, its use in data centres for wiring has been largely abandoned. "There was a period of time when copper was having issues meeting demand, some folks were taking aluminum cable and copper coating it," AECOM's Charland said. "That was very short-lived given the performance issues." Recycling could help sustainability targets as producing refined or secondary copper from scrap can use 65% less energy than primary production. Analysts estimate copper from scrap will rise to 11 million tons in 2030 from around 10 million tons this year. Copper has already been displaced in data transmission by fibre optic cables, which have superior bandwidth and efficiency and are essentially glass made out of silicon from sand. "It's a lot cheaper to produce glass than it is to mine copper," said Matt Miller, Global Networks Leader at AECOM. "Silicon is incredibly abundant, you can go down to the beach and grab as much as you want." Possible solutions seem unlikely to bridge the supply crunch for copper anytime soon, analysts say, especially for the structural projects governments are pinning their future economic growth prospects on. "You can do all the green energy stuff, but if you don't have a grid system to support, it will be a challenge." CRU's Balla said.
Yahoo
2 minutes ago
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BlueLinx Holdings Inc (BXC) Q2 2025 Earnings Call Highlights: Navigating Market Challenges with ...
Net Sales: $780 million, up 2% year over year. Adjusted EBITDA: $26.8 million, representing a 3.4% adjusted EBITDA margin. Adjusted Net Income: $5.6 million or $0.70 per share. Gross Margin: 15.3%, down 60 basis points from the prior period. Specialty Products Net Sales: $543 million, up 1% year over year. Specialty Products Gross Margin: 18.5%, down 80 basis points from last year. Structural Products Net Sales: $237 million, up 3.4% compared to the prior year period. Structural Products Gross Margin: 8.2%, up 30 basis points from the same period last year. Cash on Hand: $387 million at the end of the quarter. Total Debt: $376 million, with a net debt of negative $11 million. Operating Cash Flow: Negative $27 million for the quarter. Free Cash Flow: Negative $36 million for the quarter. Share Repurchase: $20 million repurchased in Q2, with a new $50 million authorization approved. Warning! GuruFocus has detected 3 Warning Signs with BXC. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points BlueLinx Holdings Inc (NYSE:BXC) reported solid gross margins for both specialty and structural products, with net sales and volumes increasing despite challenging market conditions. The company successfully executed its product and channel strategies, resulting in market share gains and strong demand creation efforts, particularly in the multi-family segment. BlueLinx Holdings Inc (NYSE:BXC) returned capital to shareholders by repurchasing $20 million of shares in Q2 and authorized a new $50 million share repurchase program. The company's digital transformation efforts are on track, with advancements in Oracle transportation management and e-commerce transactions, enhancing operational efficiencies. BlueLinx Holdings Inc (NYSE:BXC) maintained a strong financial position with significant liquidity, allowing flexibility in strategic initiatives and capital allocation. Negative Points Market-driven price deflation continues to impact profitability, particularly in certain product categories, despite volume growth. The housing market remains soft, with high mortgage rates and economic uncertainty affecting the building materials and distribution sector. The multi-family segment, while growing, leads to longer inventory holding periods and lower gross margins due to direct sales dynamics. Competitive pressures in the market require BlueLinx Holdings Inc (NYSE:BXC) to work harder to maintain and grow its business. The company's free cash flow was negative in Q2, primarily due to lower net income, seasonal working capital changes, and increased capital expenditures. Q & A Highlights Q: How did specialty volumes trend throughout the quarter, given the slower than expected builder spring selling season? A: Shyamsundar Reddy, CEO, explained that despite a 10% year-over-year decline in housing starts, BlueLinx's strategy to create demand through multi-family and builder pull-through efforts is working. They focused on engineered wood products (EWP), millwork, and structural product categories to drive growth, supporting customers and suppliers in achieving their growth objectives. Q: Can you provide more color on the primary drivers of the strong multi-family growth and the runway for continued share gains? A: Shyamsundar Reddy, CEO, noted that early investments in multi-family projects have paid off, providing a seasonal catalyst. BlueLinx has made both operational and capital investments to support the complexity of multi-family projects, working closely with key customers to win business. They leverage their team and services to support customers, offering creative program structures that benefit suppliers, customers, and BlueLinx. Q: Has the success of the Portland Greenfield accelerated the timeline for future greenfields, especially in key Western markets? A: Shyamsundar Reddy, CEO, stated that while the success of the Portland Greenfield accelerates their ability to have successful future greenfields, the main constraint is finding the right real estate. BlueLinx has an active greenfield market pipeline and is committed to opening more greenfields, working with real estate professionals to identify sites. Q: Are there any recent changes in broader industry conditions or competition? A: Shyamsundar Reddy, CEO, mentioned that while there is more certainty regarding tariffs, which could unlock pent-up demand, there are no significant changes beyond public information. Competition remains intense, but BlueLinx is controlling the narrative by driving demand through investments in new channel focus areas. Q: How does BlueLinx manage the risk of commodity volatility in multi-family projects? A: Shyamsundar Reddy, CEO, explained that BlueLinx has built a robust system for managing structural wood products, leveraging consigned and cash-on-hand inventory. They maintain strong planning and relationships with customers to manage volatility, focusing on turn days for committed inventory and evolving arrangements to ensure win-win scenarios for customers, suppliers, and BlueLinx. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
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2 minutes ago
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Apollo Commercial Real Estate Finance Inc (ARI) Q2 2025 Earnings Call Highlights: Strong Loan ...
Distributable Earnings: $36 million or $0.26 per share for the second quarter. GAAP Net Income: $18 million or $0.12 per diluted share. Loan Portfolio Carrying Value: $8.6 billion, up from $7.7 billion in Q1. Weighted Average Unlevered Yield: 7.8%. New Loan Originations: $1.4 billion in commitments for the quarter. Add-on Fundings: $394 million for previously closed loans. Repayments and Sales: $631 million during the quarter. General CECL Allowance Increase: $3.1 million. Total Liquidity: $208 million at quarter end. Book Value Per Share: $12.59, excluding general CECL allowance and depreciation. Warning! GuruFocus has detected 9 Warning Signs with ARI. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Apollo Commercial Real Estate Finance Inc (NYSE:ARI) delivered strong performance in Q2 2025, with significant progress in loan originations, portfolio management, and balance sheet optimization. ARI committed to $1.4 billion in new loans during the quarter, with year-to-date commitments reaching $2 billion, showcasing robust capital redeployment. The company benefits from Apollo's real estate credit platform, allowing access to a diverse transaction flow and eliminating cash drag. Approximately 2/3 of residential loans in ARI's portfolio have been originated in the past 24 months, benefiting from a valuation reset and enhanced credit quality. ARI successfully refinanced its Term Loan B facilities, extending corporate debt maturity to June 2029, highlighting market confidence in the company. Negative Points The carrying value of ARI's portfolio increased by 12% from the prior quarter, but the book value per share decreased slightly to $12.59. Despite progress, some assets like the Brook are still non-earning, with plans to monetize them not expected until early next year. The general CECL allowance increased by $3.1 million due to portfolio growth, indicating potential risk exposure. Leverage remains around 4 times, with significant non-earning assets, raising concerns about future leverage management. The office sector remains challenging, with ARI avoiding new office deals due to market conditions and portfolio concentration concerns. Q & A Highlights Q: How is the progress at the Brook, and what is the timeline for generating cash flow and potentially moving on from the asset? A: The Brook is a 500-plus unit development, with 70% market rate and 30% affordable units. Leasing has started on the market rate side, and the asset is expected to become cash flow positive early next year. A decision on whether to sell outright or bring in a partner is anticipated between the first and second quarter of next year. The ultimate plan is to monetize and move on. - Stuart Rothstein, CEO Q: Can you provide more details on the potential upside from the land parcels associated with the Brook? A: There is a small parcel referred to as the Western parcel, and discussions are ongoing about acquiring air rights or the assets outright to increase density. If successful, this could provide upside for ARI shareholders, but it is too early to predict the outcome. - Stuart Rothstein, CEO Q: What are your expectations for the commercial real estate transaction market through the end of the year, and how does it affect ARI's plans? A: Activity has picked up, and there is more capital and deal flow. We are confident in finding opportunities that fit ARI's goals. The market is expected to remain robust, providing enough opportunities for ARI to achieve its objectives. - Stuart Rothstein, CEO Q: How are you approaching the current cross currents in the commercial real estate market, and where do you see the best opportunities? A: We remain constructive on all forms of housing, including senior housing and student housing. We are cautious with office deals and focus on opportunities in the UK, Europe, and the US. We avoid ground-up development except for long-term lease data centers. - Scott Weiner, CIO Q: Is there any expectation for changes in the dividend policy, and what factors could prevent a dividend increase? A: There are no material tax protections against rising earnings, and the goal is to distribute as much of the earnings as possible as dividends. The policy is reviewed quarterly, and the aim is to maintain stability without frequent special dividends. - Stuart Rothstein, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
