Fluence and AGL sign deal to deliver the 500 MW / 2000 MWh Tomago Battery Energy Storage System in Australia
Fluence and AGL sign deal to deliver the 500 MW / 2000 MWh Tomago Battery Energy Storage System in Australia
MELBOURNE, Australia, July 31, 2025 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. ("Fluence") (NASDAQ: FLNC), a global market leader delivering intelligent energy storage, services, and asset optimization software, today announced that Fluence has been selected by AGL to deliver the 500 MW / 2000 MWh Tomago Battery Energy Storage System (BESS) in Newcastle, New South Wales, Australia. The deal is Fluence's largest project transaction globally, one of the largest energy storage transactions by MWh in the Australian National Energy Market (NEM) to date, and marks 5 GWh of projects by Fluence in Australia.
The Tomago BESS will be the third grid-scale battery storage system Fluence will deliver for AGL, having completed the 50 MWh Broken Hill BESS and currently constructing the 1000 MWh Liddell BESS.
The Tomago BESS project will use Fluence's Gridstack Pro™, a utility-scale energy storage product with optimized design and flexibility and will provide grid-forming capability to improve grid reliability. AGL has contracted Fluence to construct the project and provide ongoing service and maintenance.
'We are honored to be selected by AGL and partner with them on the Tomago BESS project. This project strongly demonstrates our ongoing commitment to support AGL in their ambitious plan to deploy large-scale battery storage systems for a renewable energy future across Australia. Australia remains one of the most important storage markets globally, experiencing significant growth as the country accelerates its transition to renewable energy sources,' said Jan Teichmann, SVP & President, APAC.
'Our team takes great pride in continuing our partnership with AGL to meet the challenges of Australia's energy transition. The Tomago BESS is a testament to the strength of Fluence's full scope project deployment expertise in Australia and the products we offer to this market,' said Jason Beer, General Manager, Fluence Australia.
'We are pleased to continue our partnership with Fluence as the battery energy storage provider for the Tomago Battery. This project builds on the work we have done together for AGL's Broken Hill and Liddell batteries,' said AGL Chief Operating Officer, Markus Brokhof.
Fluence has a strong track record in Australia, with four storage systems currently in operation, another two expected to enter into operation in the next few months, and several BESS projects currently under construction.
About Fluence Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company's solutions and operational services are helping to create a more resilient grid and unlock the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed, and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future.
For more information, visit our website, or follow us on LinkedIn or X. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.
Cautionary Statement Regarding Forward-Looking Statements The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the anticipated operational performance of the Tomago BESS project, including output and capacity, expected impact of this project on the Australian power grid, timeline of the Tomago BESS project, and other beliefs, assumptions, prospects, plans, and objectives of management. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as "may," "possible," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "commits", "believes," "estimates," "predicts," "potential," or "continue," or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, severe weather events impacting the project, changes to the regulatory environment in Australia, general economic conditions, the potential for political, social, or economic unrest, terrorism, hostilities or war, unforeseen circumstances outside of Fluence's control which may cause the energy storage systems to not perform as anticipated, and such factors set forth under Item 1A."Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, filed with the Securities and Exchange Commission ("SEC") on November 29, 2024, and in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.
Media Contact Chaanah Crichton, Head of Marketing, APAC Email: Chaanah.crichton@fluenceenergy.com Phone: +61426584943
Analyst Contact Lexington May, Vice President of Investor Relations and Sustainability Email: investorrelations@fluenceenergy.com Phone: +1 (713) 909-5629
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8e4608ca-f135-4fd0-992e-30ea36d8517b
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Installed Building Products Reports Record Second Quarter 2025 Results; Declares Regular Quarterly Cash Dividend
COLUMBUS, Ohio--(BUSINESS WIRE)--Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights (Comparisons are to Prior Year Period) Net revenue increased 3.1% to a second quarter record of $760.3 million Installation revenue increased 2.6% to $715.6 million, including sales from IBP's recent acquisitions Other revenue, net of eliminations, which includes IBP's manufacturing and distribution operations, increased to $44.7 million from $40.3 million Net income increased 5.8% to $69.0 million Adjusted EBITDA* increased 3.2% to $134.0 million Net income per diluted share increased 9.6% to $2.52 Adjusted net income* was $80.8 million, or $2.95 per diluted share Net cash flow from operations increased 14.3% to $90.3 million At June 30, 2025, IBP had $305.2 million in cash and cash equivalents Repurchased 300,000 shares of common stock at a total cost of $49.2 million Declared second quarter dividend of $0.37 per share that was paid to shareholders on June 30, 2025 Recent Developments IBP's Board of Directors declared the third quarter regular cash dividend of $0.37 per share 'IBP continues to deliver strong financial results, demonstrating the high-value installation services we provide our homebuilding customers. Our market positioning and focus on service is especially valuable as many homebuilders rely on relationships with experienced partners to navigate today's evolving market dynamics. While we expect housing affordability to remain a challenge over the near-term, we are confident in the long-term fundamentals of the U.S. housing industry and the effectiveness of our growth-focused capital allocation strategy,' stated Jeff Edwards, Chairman and Chief Executive Officer. Mr. Edwards, added: 'As we maintain a disciplined approach to acquisitions with a focus on favorable returns on invested capital, we continue to identify opportunities to enhance operational and financial performance, while returning capital to shareholders through dividends and share repurchases.' 'Our performance thus far in 2025 reflects the dedication of our entire team and we believe IBP continues to operate from a position of strength as we take advantage of opportunities and navigate any challenges in the second half of the year,' concluded Mr. Edwards. Acquisition Update IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. To date in 2025, IBP has acquired over $10 million of annual revenue and we continue to focus on acquiring at least $100 million of annual revenue. As previously announced, during the 2025 second quarter, IBP completed the following acquisition: In May 2025, IBP acquired Pro Foamers, Inc., an installer of spray foam and air barrier products in the commercial end market based in Green Bay, Wisconsin with annual revenue of $4 million. 2025 Third Quarter Cash Dividend IBP's Board of Directors has approved the Company's quarterly cash dividend of $0.37 per share, payable on September 30, 2025, to stockholders of record on September 15, 2025. The third quarter regular cash dividend represents a 6% increase from last year's third quarter cash dividend payment. Share Repurchases During the three months ended June 30, 2025, IBP repurchased 300,000 shares of its common stock at a total cost of $49.2 million and 500,000 shares at a total cost of $83.5 million during the six months ended June 30, 2025. At June 30, 2025, the Company had approximately $416.5 million available under its stock repurchase program, expiring March 1, 2026. Second Quarter 2025 Results Overview For the second quarter of 2025, net revenue was a second quarter record of $760.3 million, an increase of 3.1% from $737.6 million for the second quarter of 2024. On a consolidated same branch basis, net revenue increased 0.7% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 1.1% in the quarter while commercial same branch sales within the Installation segment were up 9.3% from the prior year quarter. Gross profit increased 3.4% to $259.9 million from $251.4 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of net revenue were a record 34.2%, compared to 34.1% in the same period last year. Adjusted gross profit primarily adjusts for the Company's share-based compensation expense. Selling and administrative expense, as a percent of total revenue, was 19.6% compared to 19.1% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.8% compared to 18.5% in the prior year quarter. Net income was $69.0 million, or $2.52 per diluted share, compared to $65.2 million, or $2.30 per diluted share in the prior year quarter. Net profit margin for the second quarter was 9.1% compared to 8.8% in the prior year quarter. Adjusted net income* was $80.8 million, or $2.95 per diluted share, compared to $80.5 million, or $2.84 per diluted share in the prior year quarter. Adjusted net profit margin* for the second quarter was 10.6% compared to 10.9% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions. EBITDA* was $128.2 million, a 7.2% increase from $119.6 million in the prior year quarter. Adjusted EBITDA* was $134.0 million, a 3.2% increase from $129.8 million in the prior year quarter, representing an adjusted EBITDA margin* of 17.6% for both periods. Conference Call and Webcast The Company will host a conference call and webcast on August 7, 2025 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). The live webcast will be available at in the investor relations section. A replay of the conference call will be available through September 7, 2025 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13753926. Alternatively, participants can register for the call 15 minutes prior to the event by using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option. About Installed Building Products Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 250 branch locations. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry and economic conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; increased tariffs; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the 'Risk Factors' section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. *Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles ('GAAP'), this press release contains the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by net revenue), Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit and Adjusted Selling and Administrative expense. The reasons for the use of these measures, reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit, and Adjusted Selling and Administrative expense to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for IBP's financial results prepared in accordance with GAAP. INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions, except share and per share amounts) December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 305.2 $ 327.6 Accounts receivable (less allowance for credit losses of $12.4 and $10.7 at June 30, 2025 and December 31, 2024, respectively) 447.6 433.9 Inventories 192.0 194.6 Prepaid expenses and other current assets 72.6 98.8 Total current assets 1,017.4 1,054.9 Property and equipment, net 177.4 174.8 Operating lease right-of-use assets 100.4 95.6 Goodwill 436.9 432.6 Customer relationships, net 171.0 178.8 Other intangibles, net 88.7 91.7 Other non-current assets 28.3 31.5 Total assets $ 2,020.1 $ 2,059.9 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of long-term debt $ 33.3 $ 32.4 Current maturities of operating lease obligations 36.1 34.3 Current maturities of finance lease obligations 2.8 2.8 Accounts payable 150.1 146.6 Accrued compensation 63.5 66.4 Other current liabilities 70.8 76.5 Total current liabilities 356.6 359.0 Long-term debt 842.8 842.4 Operating lease obligations 64.2 61.0 Finance lease obligations 4.2 5.4 Deferred income taxes 23.0 26.3 Other long-term liabilities 64.8 60.5 Total liabilities 1,355.6 1,354.6 Commitments and contingencies (Note 16) Stockholders' equity Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively — — Common stock; $0.01 par value: 100,000,000 authorized, 33,835,259 and 33,713,662 issued and 27,326,871 and 27,758,491 shares outstanding at June 30, 2025 and December 31, 2024, respectively 0.3 0.3 Additional paid in capital 275.4 261.3 Retained earnings 912.5 865.5 Treasury stock; at cost: 6,508,388 and 5,955,171 shares at June 30, 2025 and December 31, 2024, respectively (549.3 ) (456.8 ) Accumulated other comprehensive income 25.6 35.0 Total stockholders' equity 664.5 705.3 Total liabilities and stockholders' equity $ 2,020.1 $ 2,059.9 Expand INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) Six months ended June 30, 2025 2024 Cash flows from operating activities Net income $ 114.4 $ 121.1 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization of property and equipment 32.7 28.0 Amortization of operating lease right-of-use assets 17.9 16.3 Amortization of intangibles 20.2 21.2 Amortization of deferred financing costs and debt discount 0.8 0.8 Provision for credit losses 4.0 3.1 Write-off of debt issuance costs — 1.1 Gain on sale of property and equipment (0.7 ) (1.2 ) Non-cash stock compensation 11.2 8.7 Asset impairment — 4.9 Other, net (5.6 ) (6.8 ) Changes in assets and liabilities, excluding effects of acquisitions Accounts receivable (16.4 ) (18.4 ) Inventories 3.0 (11.4 ) Other assets 13.1 5.1 Accounts payable 4.5 (1.6 ) Income taxes receivable/payable — (0.6 ) Other liabilities (16.6 ) (6.5 ) Net cash provided by operating activities 182.5 163.8 Cash flows from investing activities Purchases of property and equipment (35.8 ) (42.6 ) Acquisitions of businesses, net of cash acquired of $— in 2025 and 2024, respectively (11.3 ) (22.7 ) Proceeds from sale of property and equipment 1.2 1.8 Settlements with interest rate swap counterparties 6.9 9.0 Other (4.2 ) (0.7 ) Net cash used in investing activities $ (43.2 ) $ (55.2 ) Six months ended June 30, 2025 2024 Cash flows from financing activities Proceeds from Term Loan $ — $ 142.9 Payments on Term Loan (2.5 ) (134.2 ) Proceeds from vehicle and equipment notes payable 18.1 15.0 Debt issuance costs — (1.5 ) Principal payments on long-term debt (14.8 ) (15.5 ) Principal payments on finance lease obligations (1.4 ) (1.5 ) Dividends paid (67.7 ) (65.2 ) Acquisition-related obligations (1.5 ) (1.0 ) Repurchase of common stock (83.5 ) (45.7 ) Surrender of common stock awards by employees (8.4 ) (8.1 ) Net cash used in financing activities (161.7 ) (114.8 ) Net change in cash and cash equivalents (22.4 ) (6.2 ) Cash and cash equivalents at beginning of period 327.6 386.5 Cash and cash equivalents at end of period $ 305.2 $ 380.3 Supplemental disclosures of cash flow information Net cash paid during the period for: Interest $ 20.5 $ 21.9 Income taxes, net of refunds 36.6 42.7 Supplemental disclosures of non-cash activities Right-of-use assets obtained in exchange for operating lease obligations $ 22.9 $ 23.6 Property and equipment obtained in exchange for finance lease obligations 0.3 1.8 Seller obligations in connection with acquisition of businesses 1.7 2.2 Unpaid purchases of property and equipment included in accounts payable 4.2 2.7 Accrued excise tax on common stock repurchases 0.6 — Expand INSTALLED BUILDING PRODUCTS, INC. SEGMENT INFORMATION (unaudited, in millions) Information on Segments Our Company has three operating segments consisting of Installation, Distribution and Manufacturing. The Other category reported below reflects the operations of our Distribution and Manufacturing operating segments. The following tables represent our segment information for the three and six months ended June 30, 2025 and 2024 (in millions): (1) Cost of sales included in the Installation segment gross profit is exclusive of depreciation and amortization for the three and six months ended June 30, 2025 and 2024. Expand The reconciliation of Installation revenue and segment gross profit for each period as shown in the table above to consolidated net revenue and income before income taxes is as follows (in millions): (1) Other revenue and other gross profit include the remaining two operating segments, Distribution and Manufacturing before inter-segment eliminations. These operating segments are each below the quantitative thresholds for being reported as a reportable segment for the three and six months ended June 30, 2025 and 2024. Expand Reconciliation of Non-GAAP Financial Measures EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting GAAP net income, EBITDA, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. We believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business. We believe the Adjusted EBITDA measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. In addition, we use various EBITDA-based measures in determining the achievement of awards under certain of our incentive compensation programs. Other companies may define Adjusted EBITDA differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted EBITDA may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility. Although we use the Adjusted EBITDA measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. Adjusted EBITDA should be considered in addition to, and not as a substitute for, GAAP net income as a measure of performance. Our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. This measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flow provided by operating activities as a measure of liquidity. You should therefore not place undue reliance on this measure or ratios calculated using this measure. We also believe the Adjusted Net Income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. To make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. Other companies may define Adjusted Net Income differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted Net Income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED NET INCOME CALCULATIONS (unaudited, in millions, except share and per share amounts) The tables below reconcile Adjusted Net Income to the most directly comparable GAAP financial measure, net income, for the periods presented therein. We have included Adjusted Net Income in this press release because it is a key measure used by our management team to understand the operating performance and profitability of our business. During the three months ended June 30, 2024, we decided to wind down the operations of a single new commercial end market-oriented branch that focused on the installation of a non-core end product, due to shifting market conditions, an unfavorable contract settlement, and sub-standard operating performance. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted Net Income (Loss), Diluted Adjusted Net Income (Loss) per Share, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below. Per share figures may reflect rounding adjustments and consequently totals may not appear to sum. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income, as reported $ 69.0 $ 65.2 $ 114.4 $ 121.1 Adjustments for adjusted net income Share-based compensation expense 5.3 4.7 11.2 8.7 Acquisition related expenses 0.5 0.6 1.0 1.1 Amortization expense (1) 10.1 10.5 20.2 21.2 Loan refinancing expenses (2) — — — 4.1 Asset impairment (3) — 4.9 — 4.9 Tax impact of adjusted items at a normalized tax rate (4) (4.1 ) (5.4 ) (8.4 ) (10.4 ) Adjusted net income $ 80.8 $ 80.5 $ 138.4 $ 150.7 Weighted average shares outstanding (diluted) 27,403,669 28,317,801 27,549,791 28,351,401 Diluted net income per share, as reported $ 2.52 $ 2.30 $ 4.15 $ 4.27 Adjustments for diluted adjusted net income, net of tax impact, per share (5) 0.43 0.54 0.87 1.05 Diluted adjusted net income per share $ 2.95 $ 2.84 $ 5.02 $ 5.32 Expand (1) Addback of all non-cash amortization resulting from business combinations. (2) Includes $1.1 million of non-cash write-off of capitalized loan expense and $3.0 million of cash paid to third parties in connection with loan refinancing for the three months ended March 31, 2024. (3) During the three and six months ended June 30, 2024, we recognize intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products. (4) Normalized effective tax rate of 26.0% applied to periods presented. (5) Includes adjustments related to the items noted above, net of tax. Expand INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED GROSS PROFIT CALCULATIONS (unaudited, in millions) The table below reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, gross profit, for the periods presented therein. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS (unaudited, in millions) The table below reconciles Adjusted Selling and Administrative to the most directly comparable GAAP financial measure, selling and administrative, for the periods presented therein. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Selling expense $ 35.7 $ 34.5 $ 71.1 $ 67.8 Administrative expense 113.1 106.7 221.5 209.3 Selling and Administrative expense, as reported 148.8 141.2 292.6 277.1 Share-based compensation expense 5.0 4.4 10.6 8.2 Acquisition related expenses 0.5 0.6 1.0 1.1 Adjusted Selling and Administrative expense $ 143.3 $ 136.2 $ 281.0 $ 267.8 Selling and Administrative expense - % Total revenue 19.6 % 19.1 % 20.2 % 19.4 % Adjusted Selling and Administrative expense - % Total revenue 18.8 % 18.5 % 19.4 % 18.7 % Expand INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES EBITDA AND ADJUSTED EBITDA CALCULATIONS (unaudited, in millions) The tables below reconcile EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted EBITDA, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income, as reported $ 69.0 $ 65.2 $ 114.4 $ 121.1 Interest expense 8.3 8.2 16.6 20.1 Provision for income tax 24.4 21.5 40.3 42.0 Depreciation and amortization 26.5 24.7 52.9 49.2 EBITDA 128.2 119.6 224.2 232.4 Acquisition related expenses 0.5 0.6 1.0 1.1 Share based compensation expense 5.3 4.7 11.2 8.7 Asset impairment (1) — 4.9 — 4.9 Adjusted EBITDA $ 134.0 $ 129.8 $ 236.4 $ 247.1 Net profit margin 9.1 % 8.8 % 7.9 % 8.5 % EBITDA margin 16.9 % 16.2 % 15.5 % 16.2 % Adjusted EBITDA margin 17.6 % 17.6 % 16.4 % 17.3 % Expand (1) During the three and six months ended June 30, 2024, we recognized intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products. Expand INSTALLED BUILDING PRODUCTS, INC. SUPPLEMENTARY TABLE (unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Period-over-period Growth Consolidated Sales Growth 3.1 % 6.6 % 1.0 % 5.9 % Consolidated Same Branch Sales Growth 0.7 % 4.8 % (1.7 )% 3.9 % Installation Sales Growth 2.6 % 7.0 % 0.7 % 6.2 % Same Branch Sales Growth 0.6 % 5.2 % (1.5 )% 4.2 % Single-Family Sales Growth 2.6 % 10.4 % 0.9 % 7.1 % Single-Family Same Branch Sales Growth (0.4 )% 7.9 % (2.3 )% 4.7 % Multi-Family Sales Growth (3.9 )% 6.2 % (4.0 )% 9.6 % Multi-Family Same Branch Sales Growth (4.0 )% 5.2 % (4.5 )% 8.8 % Residential Sales Growth 1.2 % 9.4 % (0.2 )% 7.7 % Residential Same Branch Sales Growth (1.1 )% 7.3 % (2.8 )% 5.6 % Commercial Sales Growth (1) 10.0 % (4.1 )% 3.8 % (0.7 )% Commercial Same Branch Sales Growth 9.3 % (5.3 )% 3.3 % (3.1 )% Other (2) Sales Growth 28.7 % 4.3 % 19.3 % 4.2 % Same Branch Sales Growth 20.2 % 2.4 % 8.6 % 3.2 % Same Branch Sales Growth - Installation Volume Growth (3) (1.1 )% (1.4 )% (3.3 )% (1.4 )% Price/Mix Growth (3) 0.8 % 6.4 % 1.1 % 5.1 % U.S. Housing Market (4) Total Completions Growth (13.1 )% 12.6 % (6.5 )% 9.1 % Single-Family Completions Growth (9.8 )% 8.6 % (3.4 )% 1.8 % Multi-Family Completions Growth (19.7 )% 20.7 % (12.2 )% 24.4 % Expand (1) Our commercial end market consists of heavy and light commercial projects. (2) Other business segment category includes our manufacturing and distribution businesses operating segments. (3) The heavy commercial end market is excluded from these metrics given its much larger per-job revenue compared to our average job. (4) U.S. Census Bureau data, as revised. Expand INSTALLED BUILDING PRODUCTS, INC. INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS (unaudited, in millions) Revenue Increase Three months ended June 30, Six months ended June 30, 2025 % Total 2024 % Total 2025 % Total 2024 % Total Same Branch $ 5.0 22.0 % $ 32.5 71.4 % $ (24.0 ) (163.3 )% $ 51.9 65.6 % Acquired 17.7 78.0 % 13.0 28.6 % 38.7 263.3 % 27.2 34.4 % Total $ 22.7 100.0 % $ 45.5 100.0 % $ 14.7 100.0 % $ 79.1 100.0 % Expand Adjusted EBITDA Margin Contributions * Three months ended June 30, Six months ended June 30, 2025 % Margin 2024 % Margin 2025 % Margin * 2024 % Margin Same Branch (1) $ 0.8 16.0 % $ 5.4 16.6 % $ (17.4 ) (72.5 )% $ 15.1 29.1 % Acquired 3.3 18.6 % 2.3 17.7 % 6.7 17.3 % 4.8 17.6 % Total $ 4.1 18.1 % $ 7.7 16.9 % $ (10.7 ) NMF $ 19.9 25.2 % Expand (1) Same branch adjusted EBITDA margin contribution percentage is a percentage of same branch revenue increase. * During the six months ended June 30, 2025, same branch revenue decreased and same branch and total adjusted EBITDA decreased. The negative same branch % margin result reflects a decremental margin. NMF - Not meaningful figure. Expand
Business Wire
24 minutes ago
- Business Wire
NETSCOUT Reports First Quarter Fiscal Year 2026 Financial Results
WESTFORD, Mass.--(BUSINESS WIRE)--NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a leading provider of enterprise performance management, carrier service assurance, cybersecurity, and DDoS protection solutions, today announced financial results for its first quarter ended June 30, 2025. Remarks by Anil Singhal, NETSCOUT's President & Chief Executive Officer: 'We delivered a solid start to fiscal year 2026, with Q1 performance reflecting strong execution and positive momentum across both our top- and bottom-lines. Growth in our Cybersecurity and Service Assurance product lines supported these results as we continue to position NETSCOUT for long-term success in the market. 'Looking ahead, we remain cautiously optimistic amid ongoing macroeconomic uncertainty. Our focus remains firmly on driving product innovation, returning to annual revenue growth and enhancing margins through disciplined cost management. Over the long term, we are committed to empowering our customers to meet the demands of today's connected, complex digital landscape by delivering mission-critical solutions that address performance, ensure availability and safeguard security.' Q1 FY26 Financial Results Total revenue for the first quarter of fiscal year 2026 increased to $186.7 million, compared with $174.6 million in the first quarter of fiscal year 2025. Product revenue for the first quarter of fiscal year 2026 was $73.0 million, or approximately 39% of total revenue in the period. This compares with product revenue of $61.2 million, or approximately 35% of total revenue in the first quarter of fiscal year 2025. As of June 30, 2025, NETSCOUT had a total product backlog of $30.9 million, which includes $23.3 million of fulfillable backlog, $7.1 million related to a multi-year enterprise license commitment, and $0.5 million of radio frequency propagation modeling projects. This compares to $15.3 million on June 30, 2024, consisting of $10.9 million of fulfillable backlog and $4.4 million of radio frequency propagation modeling projects. Service revenue for the first quarter of fiscal year 2026 was $113.8 million, or approximately 61% of total revenue in the period. This compares with service revenue of $113.4 million, or approximately 65% in the first quarter of fiscal year 2025. NETSCOUT's GAAP loss from operations was $6.6 million in the first quarter of fiscal year 2026, which included an executive transition charge of $1.0 million and a restructuring charge of $0.5 million. This compares with a GAAP loss from operations of $463.3 million in the first quarter of fiscal year 2025, which included a non-cash goodwill impairment charge of $427.0 million and a restructuring charge of $16.6 million. The Company's GAAP operating margin was negative 3.5% in the first quarter of fiscal year 2026, versus negative 265.4% in the same period of fiscal year 2025. Non-GAAP income from operations was $26.6 million with a non-GAAP operating margin of 14.2% in the first quarter of fiscal year 2026. This compares to non-GAAP income from operations of $14.0 million and a non-GAAP operating margin of 8.0% in the first quarter of fiscal year 2025. Non-GAAP EBITDA from operations in the first quarter of fiscal year 2026 was $29.3 million, or 15.7% of quarterly revenue for the period. This compares to non-GAAP EBITDA from operations of $17.8 million in the first quarter of fiscal year 2025, or 10.2% of quarterly revenue for the period. Net loss (GAAP) for the first quarter of fiscal year 2026 was $3.7 million, or $0.05 per share (diluted), which included the executive transition and restructuring charges mentioned above and an unrealized gain on a foreign investment, versus a GAAP net loss of $443.4 million, or $6.20 per share (diluted), for the first quarter of fiscal year 2025, which included the previously mentioned non-cash goodwill impairment and restructuring charges as well as an unrealized gain on foreign investment. Non-GAAP net income was $24.7 million or $0.34 per share (diluted) for the first quarter of fiscal year 2026, compared with $20.6 million, or $0.28 per share (diluted), for the first quarter of fiscal year 2025. Both periods included the impact of an unrealized gain on a foreign investment referenced previously. As of June 30, 2025, cash, cash equivalents, short and long-term marketable securities and investments were $543.5 million, compared with $492.5 million as of March 31, 2025. During the first quarter of fiscal year 2026, NETSCOUT repurchased a total of 761,249 shares of its common stock at an average price of $19.72 per share for an aggregate purchase price of approximately $15.0 million. As of June 30, 2025, the Company had no debt outstanding under its $600 million revolving credit facility, which expires in October 2029. Financial Outlook Reaffirmed The Company's outlook for fiscal year 2026 remains as follows: Revenue expectations remain in the range of $825 million to $865 million. GAAP net income per share (diluted) remains in the range of $1.07 to $1.22. Non-GAAP net income per share (diluted) remains in the range of $2.25 to $2.40. A reconciliation between GAAP and non-GAAP numbers for NETSCOUT's fiscal year 2026 outlook is included in the financial tables below. On August 4, 2025, NETSCOUT completed the sale of its entire previously disclosed foreign investment for the equivalent of approximately $12 million. The transaction is expected to have a relatively neutral impact on the Company's fiscal year 2026 financial outlook. Recent Developments and Highlights In late July, NetScout announced new AI-backed enhancements to its NETSCOUT Arbor Edge Defense and NETSCOUT Arbor Enterprise Manager Adaptive Distributed Denial of Services (DDoS) solutions to help customers further automate operations, enhance defense, and improve reporting. These powerful enhancements leverage AI and the ATLAS Intelligence Feed to intelligently automate defenses against an expanding array of attack vectors, enabling customers to mitigate up to 80% of all DDoS attacks without the need for further analysis. In late July, NETSCOUT announced how its Omnis Cyber Intelligence solutions align with National Institute of Standards and Technology (NIST) initiatives designed to help U.S. federal agencies adopt standards and best practices tied to zero-trust security frameworks that aim to protect data and resources across hybrid environments. NETSCOUT's Omnis Cyber Intelligence helps government agencies achieve zero-trust maturity through a highly scalable and cost-effective network detection and response (NDR) solution. The solution provides comprehensive network visibility into north-south and east-west traffic, enhances threat detection and investigation workflows, improves collaboration between NetOps and SecOps, and enables faster incident detection and response. In mid-July, NETSCOUT announced Adaptive Threat Analytics, a new enhancement to its Omnis Cyber Intelligence Network Detection and Response (NDR) solution, designed to improve incident response and reduce risk. Utilizing continuous network packet capture and local storage of metadata, Adaptive Threat Analytics enables more rapid threat investigation and proactive hunting providing SOC analysts with the specific knowledge needed to determine and execute the proper response more efficiently. In early July, NETSCOUT announced its recent participation in TM Forum's NeuroNOC Catalyst event that explored how AI agents, closed-loop automation, and high-quality network data can enable self-healing operations across telecom environments. NETSCOUT deployed its Omnis AI Insights Solution at the event, consisting of Omnis AI Sensor and Omnis AI Streamer, to deliver 5G Standalone Radio Access Network (SA RAN) and Packet Core high-fidelity telemetry essential for effective AI-driven operations. The solution enabled network operations center engineers to identify subscriber registration issues, pinpoint the root cause via a curated large language model, and execute remediation steps with minimal manual effort. The key takeaway was strong empirical validation of the need for high-quality curated data to drive effective AI solutions. Conference Call Instructions: NETSCOUT will host a conference call to discuss its first-quarter fiscal year 2026 financial results and financial outlook today at 8:30 a.m. ET. This call will be webcast live through NETSCOUT's website at Alternatively, investors can listen to the call by dialing (203) 518-9783. The conference call ID is NTCTQ126. A replay of the call will be available after 12:00 p.m. ET today, for approximately one week. The number for the replay is (800) 839-4992 for U.S./Canada and (402) 220-2686 for international callers. Use of Non-GAAP Financial Information: To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and non-GAAP earnings before interest and other expense, income taxes, depreciation, and amortization (Non-GAAP EBITDA) from operations. Non-GAAP gross profit removes expenses related to the amortization of acquired intangible assets, share-based compensation expense, and acquisition-related depreciation expense. Non-GAAP income from operations includes the aforementioned adjustments related to non-GAAP gross profit and also removes goodwill impairment charges, executive transition costs, and restructuring charges. Non-GAAP operating margin includes the foregoing adjustments related to non-GAAP income from operations. Non-GAAP net income includes the foregoing adjustments related to non-GAAP income from operations, and also removes the income tax effects of such adjustments. Non-GAAP diluted net income per share includes the foregoing adjustments related to non-GAAP net income. Non-GAAP EBITDA from operations includes the aforementioned adjustments related to non-GAAP income from operations and also removes non-acquisition related depreciation expense. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures included in the attached tables within this press release. These non-GAAP measures are not in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all NETSCOUT's results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NETSCOUT's results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be considered superior to, in isolation from, or as a substitute for results prepared in accordance with GAAP. NETSCOUT believes these non-GAAP financial measures will enhance the reader's overall understanding of NETSCOUT's current financial performance and NETSCOUT's prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its own business. NETSCOUT believes that providing these non-GAAP measures affords investors a view of NETSCOUT's operating results that may be more easily compared to peer companies and also enables investors to consider NETSCOUT's operating results on both a GAAP and non-GAAP basis during and following the integration period of NETSCOUT's acquisitions. Presenting the GAAP measures on their own, without the supplemental non-GAAP disclosures, might not be indicative of NETSCOUT's core operating results. Furthermore, NETSCOUT believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to management and investors regarding present and future business trends relating to its financial condition and results of operations. NETSCOUT management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions. These non-GAAP measures are among the primary factors that management uses in planning and forecasting. About NETSCOUT SYSTEMS, INC. NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through the company's unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. NETSCOUT serves the world's largest enterprises, service providers, and public sector organizations. Learn more at or follow @NETSCOUT on LinkedIn, Twitter, or Facebook. Safe Harbor Certain information provided in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Examples of forward-looking statements include statements regarding our future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as 'may,' 'will,' 'anticipate,' 'expect,' 'believe,' 'estimate,' 'intend,' 'plan,' 'should,' 'seek,' or other comparable terms. Investors are cautioned that such forward-looking statements in this press release include, without limitation, statements regarding NETSCOUT's financial results, its financial outlook and expectations, that it continues to position the Company for long-term success in the market, that it remains cautiously optimistic amid ongoing macroeconomic uncertainty, that its focus remains firmly on driving product innovation, returning to annual revenue growth and enhancing margins through disciplined cost management, that over the long term, it is committed to empowering its customers to meet the demands of today's connected, complex digital landscape by delivering mission-critical solutions that address performance, ensure availability and safeguard security, and statements relating to the potential benefit of a market for the Company's products and regarding product releases, updates, and functionality all constitute forward looking statements that involve risks and uncertainties. Actual results could differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the market for advanced networks, service assurance and cybersecurity solutions specifically; the volatile foreign exchange environment; liquidity concerns at, and failures of, banks and other financial institutions; the Company's relationships with strategic partners and resellers; dependence upon broad-based acceptance of the Company's network performance management solutions; the presence of competitors with greater financial resources than the Company has, and their strategic response to the Company's products; the Company's ability to retain key executives and employees; the Company's ability to realize the anticipated savings from recent restructuring actions and other expense management programs; lower than expected demand for the Company's products and services; and the timing and magnitude of stock buyback activity based on market conditions, corporate considerations, debt agreements, and regulatory requirements. The risks included above are not exhaustive. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. We undertake no responsibility to update or revise any forward-looking statements, except as required by law. For a more detailed description of the risk factors associated with the Company, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the Securities and Exchange Commission on May 15, 2025. NETSCOUT assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein. ©2025 NETSCOUT SYSTEMS, INC. All rights reserved. NETSCOUT and the NETSCOUT logo are registered trademarks or trademarks of NETSCOUT SYSTEMS, INC. and/or its subsidiaries and/or affiliates in the USA and/or other countries. NETSCOUT SYSTEMS, INC. Consolidated Balance Sheets (In thousands) June 30, March 31, 2025 2025 (Unaudited) Assets Current assets: Cash, cash equivalents, marketable securities and investments $ 532,509 $ 491,473 Accounts receivable and unbilled costs, net 92,200 163,654 Inventories and deferred costs 13,047 12,891 Prepaid expenses and other current assets 46,159 45,166 Total current assets 683,915 713,184 Fixed assets, net 21,494 21,529 Operating lease right-of-use assets 36,226 37,717 Goodwill and intangible assets, net 1,320,057 1,335,073 Long-term marketable securities 10,997 1,004 Other assets 84,737 78,071 Total assets $ 2,157,426 $ 2,186,578 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 14,016 $ 18,208 Accrued compensation 46,978 56,696 Accrued other 21,194 20,280 Deferred revenue and customer deposits 293,911 301,753 Current portion of operating lease liabilities 10,883 10,995 Total current liabilities 386,982 407,932 Other long-term liabilities 8,132 8,210 Deferred tax liability 2,851 2,643 Accrued long-term retirement benefits 29,418 27,379 Long-term deferred revenue and customer deposits 151,842 147,510 Operating lease liabilities, net of current portion 30,650 32,509 Long-term debt — — Total liabilities 609,875 626,183 Stockholders' equity: Common stock 135 134 Additional paid-in capital 3,274,682 3,255,333 Accumulated other comprehensive income 4,337 4,073 Treasury stock, at cost (1,683,481 ) (1,654,702 ) (Accumulated deficit) (48,122 ) (44,443 ) Total stockholders' equity 1,547,551 1,560,395 Total liabilities and stockholders' equity $ 2,157,426 $ 2,186,578 Expand NETSCOUT SYSTEMS, INC. (In thousands, except for per share data) (Unaudited) Three Months Ended Three Months Ended June 30, March 31, 2025 2024 2025 Revenue $ 186,747 $ 174,565 $ 204,987 Gross Profit (GAAP) $ 143,325 $ 130,196 $ 159,290 Share-based compensation expense (1) 3,160 3,320 2,090 Amortization of acquired intangible assets (2) 550 995 993 Acquisition related depreciation expense (3) 2 2 1 Non-GAAP Gross Profit $ 147,037 $ 134,513 $ 162,374 Income (Loss) from Operations (GAAP) $ (6,564 ) $ (463,324 ) $ 19,886 GAAP Operating Margin (3.5 )% (265.4 )% 9.7 % Share-based compensation expense (1) 19,959 21,198 14,199 Amortization of acquired intangible assets (2) 11,669 12,609 12,576 Restructuring charges 529 16,563 605 Goodwill impairment — 426,967 — Acquisition related depreciation expense (3) 12 12 11 Executive Transition Costs (4) 959 — — Non-GAAP Income from Operations $ 26,564 $ 14,025 $ 47,277 Non-GAAP Operating Margin 14.2 % 8.0 % 23.1 % Net Income (Loss) (GAAP) $ (3,679 ) $ (443,376 ) $ 18,617 Share-based compensation expense (1) 19,959 21,198 14,199 Amortization of acquired intangible assets (2) 11,669 12,609 12,576 Restructuring charges 529 16,563 605 Goodwill impairment — 426,967 — Acquisition related depreciation expense (3) 12 12 11 Executive Transition Costs (4) 959 — — Income tax adjustments (5) (4,712 ) (13,395 ) (8,004 ) Non-GAAP Net Income $ 24,737 $ 20,578 $ 38,004 Diluted Net Income (Loss) Per Share (GAAP) $ (0.05 ) $ (6.20 ) $ 0.25 Share impact of non-GAAP adjustments identified above 0.39 6.48 0.27 $ 0.34 $ 0.28 $ 0.52 Expand NETSCOUT SYSTEMS, INC. (In thousands) (Unaudited) Three Months Ended Three Months Ended June 30, March 31, 2025 2024 2025 (1 ) Share-based compensation expense included in these amounts is as follows: Cost of product revenue $ 413 $ 431 $ 283 Cost of service revenue 2,747 2,889 1,807 Research and development 5,532 5,886 4,062 Sales and marketing 6,889 7,504 4,915 General and administrative 4,378 4,488 3,132 Total share-based compensation expense $ 19,959 $ 21,198 $ 14,199 (2 ) Amortization expense related to acquired software and product technology, tradenames, customer relationships included in these amounts is as follows: Cost of product revenue $ 550 $ 995 $ 993 Operating expenses 11,119 11,614 11,583 Total amortization expense $ 11,669 $ 12,609 $ 12,576 (3 ) Acquisition related depreciation expense included in these amounts is as follows: Cost of product revenue $ 2 $ 2 $ 1 Cost of service revenue — — — Research and development 8 8 8 Sales and marketing 2 2 2 General and administrative — — — Total acquisition related depreciation expense $ 12 $ 12 $ 11 (4 ) Executive transition costs included in these amounts is as follows: General and administrative $ 959 $ — $ — $ 959 $ — $ — (5 ) Total income tax adjustment included in this amount is as follows: Tax effect of non-GAAP adjustments above $ (4,712 ) $ (13,395 ) $ (8,004 ) Total income tax adjustments $ (4,712 ) $ (13,395 ) $ (8,004 ) Expand NETSCOUT SYSTEMS, INC. Non-GAAP EBITDA from Operations (Dollars in thousands) (Unaudited) Three Months Ended Three Months Ended June 30, March 31, (Loss) income from operations (GAAP) $ (6,564 ) $ (463,324 ) $ 19,886 (Loss) income from operations (GAAP) as a % of revenue (3.5 )% (265.4 )% 9.7 % Previous adjustments to determine non-GAAP income from operations 33,128 477,349 27,391 Non-GAAP Income from operations $ 26,564 $ 14,025 $ 47,277 Depreciation excluding acquisition related-depreciation expense 2,776 3,784 3,009 Non-GAAP EBITDA from operations $ 29,340 $ 17,809 $ 50,286 Non-GAAP EBITDA from operations as a % of revenue 15.7 % 10.2 % 24.5 % Expand NETSCOUT SYSTEMS, INC. (Unaudited) (In millions, except for net income per share - diluted) FY'25 FY'26 Revenue $ 822.7 ~ $825 to ~$865 FY'25 FY'26 GAAP net income (loss) $ (366.9 ) ~$79 to ~$90 Amortization of intangible assets $ 50.4 ~$47 Share-based compensation expenses $ 64.8 ~$62 Acquisition related depreciation expense $ — — Executive transition costs $ — ~ $1 Restructuring charges $ 20.5 ~$1 Loss on Debt Extinguishment $ 1.1 — Goodwill impairment $ 427.0 — Total adjustments $ 563.8 ~$111 Related impact of adjustments on income tax $ (36.5 ) (~$23) Non-GAAP net income $ 160.4 ~$167 to ~$178 GAAP net income (loss) per share (diluted) $ (5.12 ) ~$1.07 to ~$1.22 Non-GAAP net income per share (diluted) $ 2.22 ~$2.25 to ~$2.40 Average weighted shares outstanding (diluted GAAP) 71.6 ~74 Average weighted shares outstanding (diluted Non-GAAP) 72.2 ~74 *Figures in table may not total due to rounding Expand
Business Wire
24 minutes ago
- Business Wire
Cheniere Reports Second Quarter 2025 Results and Updates Full Year 2025 Financial Guidance
HOUSTON--(BUSINESS WIRE)--Cheniere Energy, Inc. ('Cheniere') (NYSE: LNG) today announced its financial results for the second quarter 2025. SECOND QUARTER 2025 SUMMARY FINANCIAL RESULTS 2025 FULL YEAR FINANCIAL GUIDANCE (in billions) 2025 Previous 2025 Revised Consolidated Adjusted EBITDA 2 $6.5 - $7.0 $6.6 - $7.0 Distributable Cash Flow 2 $4.1 - $4.6 $4.4 - $4.8 Expand RECENT HIGHLIGHTS Financial During the three and six months ended June 30, 2025, Cheniere generated revenues of approximately $4.6 billion and $10.1 billion, net income 1 of approximately $1.6 billion and $2.0 billion, Consolidated Adjusted EBITDA 2 of approximately $1.4 billion and $3.3 billion, and Distributable Cash Flow 2 of approximately $0.9 billion and $2.2 billion, respectively. Tightening full year 2025 Consolidated Adjusted EBITDA 2 guidance from $6.5 billion - $7.0 billion to $6.6 billion - $7.0 billion and raising and tightening full year 2025 Distributable Cash Flow 2 guidance from $4.1 billion - $4.6 billion to $4.4 billion - $4.8 billion. Capital Allocation Pursuant to Cheniere's comprehensive capital allocation plan, Cheniere deployed approximately $1.3 billion and $2.6 billion towards accretive growth, balance sheet management and shareholder returns in the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2025, Cheniere repurchased an aggregate of approximately 1.4 million and 3.0 million shares of common stock for approximately $306 million and $656 million, respectively, paid quarterly dividends of $0.500 and $1.000 per share of common stock, totaling approximately $111 million and $223 million, respectively, and in the six months ended June 30, 2025, Cheniere repaid $300 million of consolidated long-term indebtedness. In June 2025, Cheniere announced updates to its long-term company outlook, including an over 10% increase to its run-rate liquefied natural gas ('LNG') production forecast, inclusive of the CCL Midscale Trains 8 & 9 Project (defined below) and debottlenecking. Cheniere also increased and extended its committed capital allocation targets, designed to maintain investment grade credit metrics through cycles, further return capital to shareholders, and continue to invest in accretive growth, as the Company expects to generate over $25 billion of available cash 3 through 2030 to reach over $25 per share of run-rate Distributable Cash Flow 2. In June 2025, Cheniere declared a dividend with respect to the second quarter 2025 of $0.500 per share of common stock, which is payable on August 18, 2025. In June 2025, Cheniere announced, subject to declaration by its Board of Directors, an increase to its quarterly dividend by over 10% from $2.00 to $2.22 per common share annualized, commencing with the third quarter of 2025. Growth In June 2025, Cheniere made a positive Final Investment Decision ('FID') with respect to the CCL Midscale Trains 8 & 9 Project and issued full notice to proceed to Bechtel Energy, Inc. ('Bechtel') effective June 18, 2025. In June 2025, LNG was produced for the first time from the second train ('Train 2') of the CCL Stage 3 Project (defined below), and on August 6, 2025, substantial completion of Train 2 was achieved. In June 2025, certain subsidiaries of Cheniere Energy Partners, L.P. ('Cheniere Partners') (NYSE: CQP) updated the SPL Expansion Project's (defined below) application with the Federal Energy Regulatory Commission ('FERC') to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 million tonnes per annum ('mtpa') of LNG, inclusive of estimated debottlenecking opportunities. In July 2025, certain subsidiaries of Cheniere initiated the pre-filing review process with the FERC under the National Environmental Policy Act ('NEPA') for the CCL Stage 4 Expansion Project (defined below). Commercial In May 2025, Cheniere Marketing, LLC ('Cheniere Marketing') entered into a long-term Integrated Production Marketing ('IPM') gas supply agreement with a subsidiary of Canadian Natural Resources Limited to purchase 140,000 MMBtu per day of natural gas at a price based on the Platts Japan Korea Marker ('JKM') less fixed LNG shipping costs and a fixed liquefaction fee for a term of 15 years, which is expected to commence in 2030. The LNG associated with this gas supply, approximately 0.85 mtpa, will be marketed by Cheniere Marketing. In August 2025, Cheniere Marketing entered into a long-term LNG sale and purchase agreement ('SPA') with JERA Co., Inc. ('JERA'), under which JERA has agreed to purchase approximately 1.0 mtpa of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. CEO COMMENT 'The second quarter of 2025 marked another outstanding quarter for Cheniere, as our team demonstrated its ability to execute safely, reliably and strategically throughout our business, highlighted by the positive FID of the CCL Midscale Trains 8 & 9 Project and the successful completion of our large-scale planned maintenance turnaround at Sabine Pass,' said Jack Fusco, Cheniere's President and Chief Executive Officer. 'Our strong financial and operational results year-to-date, coupled with our constructive outlook and visibility for the remainder of the year, have enabled us to tighten our full year 2025 Consolidated Adjusted EBITDA and Distributable Cash Flow guidance ranges. For the remainder of the year, we are focused on growing our brownfield platform, bringing online new capacity at Corpus Christi ahead of schedule and on budget, and delivering results within our upwardly revised guidance ranges.' Net income 1 increased approximately $746 million and $597 million for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily attributable to approximately $873 million and $596 million of favorable variances related to changes in fair value of our derivative instruments, including the impact of derivative instruments related to our long-term Integrated Production Marketing ('IPM') agreements (before tax and non-controlling interests) for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were partially offset by higher provisions for income tax during both periods. Consolidated Adjusted EBITDA 2 increased approximately $94 million and $193 million for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily due to higher total margins per MMBtu of LNG delivered during the 2025 periods as compared to the corresponding 2024 periods. The increases were partially offset by higher operating expenses related to planned maintenance activities at both the SPL Project (defined below) and CCL Project (defined below), as well as new capacity from the CCL Stage 3 Project, during the three months ended June 30, 2025, in addition to lower contributions from certain optimization activities related to our vessel charter portfolio during both periods. Share-based compensation expenses included in net income totaled $49 million and $105 million for the three and six months ended June 30, 2025, respectively, compared to $52 million and $92 million for the corresponding 2024 periods. Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners as of June 30, 2025 consisted of 100% ownership of the general partner and a 48.6% limited partner interest. BALANCE SHEET MANAGEMENT Capital Resources The table below provides a summary of our available liquidity (in millions) as of June 30, 2025: (1) $108 million of cash and cash equivalents was held by our consolidated variable interest entities ('VIEs'). (2) $40 million of restricted cash and cash equivalents was held by our consolidated VIEs. Expand Recent Key Financial Transactions and Updates In July 2025, Cheniere Partners issued $1.0 billion aggregate principal amount of 5.550% Senior Notes due 2035, and the net proceeds, together with cash on hand, were used to redeem $1.0 billion of the aggregate principal amount of SPL's 5.875% Senior Secured Notes due 2026. In August 2025, the $1.25 billion Cheniere Revolving Credit Facility was amended and restated to extend its maturity into 2030, reduce the rate of interest and commitment fees applicable thereunder, and make certain other changes to its terms and conditions. During the six months ended June 30, 2025, SPL repaid the remaining $300 million in principal amount of its 5.625% Senior Secured Notes due 2025 with cash on hand. LIQUEFACTION PROJECTS OVERVIEW SPL Project Through Cheniere Partners, we operate liquefaction and export facilities with a total production capacity of over 30 mtpa of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the 'SPL Project'). SPL Expansion Project Through Cheniere Partners, we are developing an expansion adjacent to the SPL Project with an expected total peak production capacity of up to approximately 20 mtpa of LNG (the 'SPL Expansion Project'), inclusive of estimated debottlenecking opportunities. In February 2024, certain subsidiaries of Cheniere Partners submitted an application to the FERC for authorization to site, construct, and operate the SPL Expansion Project, as well as an application to the Department of Energy ('DOE') requesting authorization to export LNG to Free-Trade Agreement ('FTA') and non-FTA countries, both of which applications exclude debottlenecking. In October 2024, we received authorization from the DOE to export LNG to FTA countries. In June 2025, the SPL Expansion Project's FERC application was updated to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities. CCL Project We operate liquefaction and export facilities with a total production capacity of over 18 mtpa of LNG at the Corpus Christi LNG terminal near Corpus Christi, Texas (the 'CCL Project'), inclusive of Trains 1 and 2 of the CCL Stage 3 Project. CCL Stage 3 Project We are constructing an expansion adjacent to the CCL Project consisting of seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG (the 'CCL Stage 3 Project'), including approximately 3 mtpa in operation and over 7 mtpa under construction. Substantial Completion was achieved for the first train of the CCL Stage 3 Project in March 2025, and substantial completion of Train 2 was achieved in August 2025. CCL Stage 3 Project Progress as of June 30, 2025: (1) Engineering 98.9% complete, procurement 99.8% complete, subcontract work 91.6% complete and construction 64.9% complete. Expand CCL Midscale Trains 8 & 9 Project We are constructing an expansion adjacent to the CCL Stage 3 Project consisting of two additional midscale Trains with an expected total production capacity of approximately 5 mtpa of LNG (the 'CCL Midscale Trains 8 & 9 Project'), inclusive of estimated debottlenecking opportunities. In June 2025, our Board of Directors made a positive FID with respect to the CCL Midscale Trains 8 & 9 Project and debottlenecking, and full notice to proceed was issued to Bechtel effective June 18, 2025. CCL Stage 4 Expansion Project We are developing an expansion adjacent to the CCL Project with an expected total peak production capacity of up to approximately 24 mtpa of LNG, inclusive of estimated debottlenecking opportunities (the 'CCL Stage 4 Expansion Project'). In July 2025, certain of our subsidiaries initiated the pre-filing review process with the FERC with respect to the CCL Stage 4 Expansion Project. INVESTOR CONFERENCE CALL AND WEBCAST We will host a conference call to discuss our financial and operating results for the second quarter 2025 on Thursday, August 7, 2025, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at Following the call, an archived recording will be made available on our website. About Cheniere Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with a total combined production capacity of approximately 49 mtpa of LNG in operation and an additional over 12 mtpa of expected production capacity under construction, inclusive of estimated debottlenecking opportunities. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, Dubai and Washington, D.C. For additional information, please refer to the Cheniere website at and Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. Use of Non-GAAP Financial Measures In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of our results as reported under GAAP and should be evaluated only on a supplementary basis. Forward-Looking Statements This press release contains certain statements that may include 'forward-looking statements' within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are 'forward-looking statements.' Included among 'forward-looking statements' are, among other things, (i) statements regarding Cheniere's financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere's capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements. (Financial Tables and Supplementary Information Follow) LNG VOLUME SUMMARY As of August 1, 2025, approximately 4,220 cumulative LNG cargoes totaling approximately 290 million tonnes of LNG have been produced, loaded and exported from our liquefaction projects. During the three and six months ended June 30, 2025, we exported 550 and 1,159 TBtu, respectively, of LNG from our liquefaction projects. 32 TBtu of LNG exported from our liquefaction projects and sold on a delivered basis was in transit as of June 30, 2025, none of which was related to commissioning activities. The following table summarizes the volumes of LNG that were loaded from our liquefaction projects and for which the financial impact was recognized on our Consolidated Financial Statements during the three and six months ended June 30, 2025: In addition, during the three and six months ended June 30, 2025, we recognized 8 and 15 TBtu, respectively, of LNG on our Consolidated Financial Statements related to LNG cargoes sourced from third-parties. ________________ (1) Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. (2) Cost of sales includes approximately $1.4 billion and $0.7 billion of gains from changes in the fair value of commodity derivatives prior to contractual delivery or termination during the three and six months ended June 30, 2025, respectively, as compared to $0.7 billion and $0.4 billion of gains in the corresponding 2024 periods, respectively. Expand Cheniere Energy, Inc. Consolidated Balance Sheets (in millions, except share data) (1)(2) (unaudited) June 30, December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 1,648 $ 2,638 Restricted cash and cash equivalents 369 552 Trade and other receivables, net of current expected credit losses 761 727 Inventory 482 501 Current derivative assets 147 155 Margin deposits 150 128 Other current assets, net 147 100 Total current assets 3,704 4,801 Property, plant and equipment, net of accumulated depreciation 34,829 33,552 Operating lease assets 2,776 2,684 Derivative assets 2,236 1,903 Deferred tax assets 18 19 Other non-current assets, net 1,015 899 Total assets $ 44,578 $ 43,858 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 161 $ 171 Accrued liabilities 1,492 2,179 Current debt, net of unamortized discount and debt issuance costs 609 351 Deferred revenue 145 163 Current operating lease liabilities 562 592 Current derivative liabilities 706 902 Other current liabilities 100 83 Total current liabilities 3,775 4,441 Long-term debt, net of unamortized discount and debt issuance costs 22,012 22,554 Operating lease liabilities 2,216 2,090 Derivative liabilities 1,621 1,865 Deferred tax liabilities 2,307 1,856 Other non-current liabilities 1,338 992 Total liabilities 33,269 33,798 Redeemable non-controlling interest 58 7 Stockholders' equity Preferred stock: $0.0001 par value, 5.0 million shares authorized, none issued — — Common stock: $0.003 par value, 480.0 million shares authorized; 279.2 million shares and 278.7 million shares issued at June 30, 2025 and December 31, 2024, respectively 1 1 Treasury stock: 57.7 million shares and 54.7 million shares at June 30, 2025 and December 31, 2024, respectively, at cost (6,798 ) (6,136 ) Additional paid-in-capital 4,483 4,452 Retained earnings 9,021 7,382 Total Cheniere stockholders' equity 6,707 5,699 Non-controlling interests 4,544 4,354 Total stockholders' equity 11,251 10,053 Total liabilities, redeemable non-controlling interest and stockholders' equity $ 44,578 $ 43,858 Expand ________________ (1) Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. (2) Amounts presented include balances held by our consolidated VIEs, substantially all of which are related to Cheniere Partners. As of June 30, 2025, total assets and liabilities of our VIEs, which are included in our Consolidated Balance Sheets, were $16.7 billion and $17.2 billion, respectively, including $108 million of cash and cash equivalents and $40 million of restricted cash and cash equivalents. Expand Reconciliation of Non-GAAP Measures Regulation G Reconciliations Consolidated Adjusted EBITDA The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and six months ended June 30, 2025 and 2024 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to Cheniere $ 1,626 $ 880 $ 1,979 $ 1,382 Net income attributable to non-controlling interests 271 282 586 619 Income tax provision 426 210 547 319 Interest expense, net of capitalized interest 237 257 466 523 Loss on modification or extinguishment of debt — 9 — 9 Interest and dividend income (31 ) (47 ) (68 ) (108 ) Other expense (income), net 1 (3 ) (19 ) (2 ) Income from operations $ 2,530 $ 1,588 $ 3,491 $ 2,742 Adjustments to reconcile income from operations to Consolidated Adjusted EBITDA: Depreciation, amortization and accretion expense 329 304 641 606 Gain from changes in fair value of commodity and foreign exchange ('FX') derivatives, net (1) (1,479 ) (606 ) (917 ) (321 ) Total non-cash compensation expense 35 33 72 65 Other operating costs and expenses 1 3 1 3 Consolidated Adjusted EBITDA $ 1,416 $ 1,322 $ 3,288 $ 3,095 Expand ________________ (1) Change in fair value of commodity and FX derivatives prior to contractual delivery or termination Expand Consolidated Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Consolidated Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies. We believe Consolidated Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of financial and operating performance. Consolidated Adjusted EBITDA is calculated by taking net income attributable to Cheniere before net income attributable to non-controlling interests, interest expense, net of capitalized interest, taxes, depreciation, amortization and accretion expense, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, gain or loss on disposal of assets, changes in the fair value of our commodity and FX derivatives prior to contractual delivery or termination, and non-cash compensation expense. The change in fair value of commodity and FX derivatives is considered in determining Consolidated Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance. Consolidated Adjusted EBITDA and Distributable Cash Flow The following table reconciles our actual Consolidated Adjusted EBITDA and Distributable Cash Flow to Net income attributable to Cheniere for the three and six months ended June 30, 2025 and forecast amounts for full year 2025 (in billions): ________________ Note: Totals may not sum due to rounding. (1) Our cash tax payments are subject to commodity and market volatility, regulatory changes and other factors which could significantly impact both the timing and amount of our future cash tax payments. Our 2025 full year Distributable Cash Flow guidance reflects current tax law and does not consider any prospective changes to local, domestic or international tax laws and regulations, or their interpretation and application. Our actual results could differ materially from our guidance due to such risks, uncertainties and other factors, including those set forth in Risk Factors or as disclosed under Operating Cash Flows in Sources and Uses of Cash within Liquidity and Capital Resources of the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025 and Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission. Expand Distributable Cash Flow is defined as cash generated from the operations of Cheniere and its subsidiaries and adjusted for non-controlling interests. The Distributable Cash Flow of Cheniere's subsidiaries is calculated by taking the subsidiaries' EBITDA less interest expense, net of capitalized interest, taxes, maintenance capital expenditures and other non-operating income or expense items, and adjusting for the effect of certain non-cash items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, amortization of debt issue costs, premiums or discounts, impairment of equity method investment and deferred taxes. Cheniere's Distributable Cash Flow includes 100% of the Distributable Cash Flow of Cheniere's wholly-owned subsidiaries. For subsidiaries with non-controlling investors, our share of Distributable Cash Flow is calculated as the Distributable Cash Flow of the subsidiary reduced by the economic interest of the non-controlling investors as if 100% of the Distributable Cash Flow were distributed in order to reflect our ownership interests and our incentive distribution rights, if applicable. The Distributable Cash Flow attributable to non-controlling interests is calculated in the same method as Distributions to non-controlling interests as presented on our Consolidated Statements of Stockholders' Equity (Deficit) in our Forms 10-Q and Forms 10-K filed with the Securities and Exchange Commission. This amount may differ from the actual distributions paid to non-controlling investors by the subsidiary for a particular period. We believe Distributable Cash Flow is a useful performance measure for management, investors and other users of our financial information to evaluate our performance and to measure and estimate the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be considered for deployment by our Board of Directors pursuant to our capital allocation plan, such as by way of common stock dividends, stock repurchases, retirement of debt, or expansion capital expenditures 1. Distributable Cash Flow is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
