Hyundai Glovis Partners with Lab021 to Deploy ‘Vessellink'
The collaboration aims to integrate Vessellink for Ship, Lab021's flagship platform, into Hyundai Glovis's maritime operations. This system automates data collection, analysis, and reporting of critical vessel metrics such as real-time voyage monitoring, carbon emissions, and operational efficiency. By digitizing these processes, Hyundai Glovis seeks to enhance operational intelligence and agility while reducing reliance on manual reporting.
This initiative is timely as the maritime industry faces increasing regulatory demands on decarbonization. The International Maritime Organization (IMO) is advancing measures targeting greenhouse gas reduction, including stricter carbon intensity standards and the introduction of a global carbon pricing mechanism expected around 2027.
In parallel, the European Union's FuelEU Maritime regulation, effective in 2025, requires vessels calling at EU ports to progressively increase the use of low-carbon fuels. Additionally, the EU Emissions Trading System (EU ETS) extended its scope to include shipping in 2024 and plans full emissions coverage by 2026.
By adopting Vessellink, Hyundai Glovis positions itself ahead of these regulatory requirements, strengthening its Environmental, Social, and Governance (ESG) commitments. The platform's detailed emissions tracking and real-time reporting improve transparency and build trust with global customers and regulators.
A Hyundai Glovis spokesperson commented, 'We are upgrading our data management to align with the maritime sector's goals for decarbonization and digital innovation. Vessellink enables compliance and streamlines our operations. We look forward to expanding our partnership with Lab021 to develop smarter, greener shipping solutions.'
Lab021 CEO Sangbong Lee added, 'Vessellink represents the future of maritime digitalization, merging precise vessel data with intelligent automation. Our partnership with Hyundai Glovis marks a key step in expanding global adoption of data-driven carbon management tools in shipping.'
This collaboration highlights Hyundai Glovis's commitment to future-proofing its maritime activities and reflects the broader industry trend where digital transformation is essential for sustainable shipping.
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12 minutes ago
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Kennedy Wilson Reports Second Quarter 2025 Results
BEVERLY HILLS, Calif.--(BUSINESS WIRE)-- Kennedy-Wilson Holdings, Inc. (NYSE: KW), a leading global real estate investment company with $30 billion in AUM across its real estate equity and debt investment portfolio, today reported results for Q2-2025: Financial Results (Amounts in millions, except per share data) Q2 YTD GAAP Results 2025 2024 2025 2024 GAAP Net (Loss) Income to Common Shareholders 1 ($6.4) ($59.1) ($47.2) ($32.2) Per Diluted Share (0.05) (0.43) (0.34) (0.23) Expand (Amounts in millions) Q2 YTD Non-GAAP Results 2025 2024 2025 2024 Adjusted EBITDA $ 147.1 $ 79.3 $ 245.3 $ 282.5 Adjusted Net Income (Loss) 34.5 (16.8 ) 33.8 53.7 Adjusted EBITDA - Key Components (at KW share) Baseline EBITDA: Property NOI, loan income, and inv. mgt fees (net of compensation and general and administrative expenses) $ 117.0 $ 104.5 $ 225.3 $ 207.6 Realized gain on the sale of real estate 54.0 1.9 52.1 110.2 Change in the fair value of the Co-investment portfolio and Carried interests (8.9 ) (20.6 ) (5.8 ) (30.7 ) Other (15.0 ) (6.5 ) (26.4 ) (4.6 ) Adjusted EBITDA $ 147.1 $ 79.3 $ 245.2 $ 282.5 1 Includes non-cash charges totaling $49.8 million, $62.9 million, $86.8 million, $116.6 million for Q2-25 and Q2-24, YTD-25, YTD-24, respectively, which primarily include depreciation and amortization and fair-value changes. Expand 'We delivered strong financial results in the second quarter, driven from the execution of our asset sale program and a continued strengthening in fundamentals across our investment portfolio," said William McMorrow, CEO of Kennedy Wilson. "Our assets under management (AUM) grew to a record $30 billion, resulting in investment management fees growing by 39% to a quarterly record of $36 million. AUM growth was fueled by accelerating originations in our credit investment platform as well as the expansion of our UK single family rental and U.S. multifamily portfolio, which now includes 40,000 rental housing units in which we have an ownership in and 28,000 units we are financing. We remain highly confident in the strength of our portfolio, platform, and growth outlook." Portfolio & Operational Update Baseline EBITDA Grows by 12% to $117 million: Baseline EBITDA grew by 12% (vs. Q2-24), driven by higher property NOI and investment management fees. Investment Management Fees Increase by 39%: Investment Management Fees totaled a quarterly record of $36 million (vs $26 million in Q2-24) driven by increasing levels of recurring base management fees and loan originations completed in Q2-25. Estimated Annual NOI of $468 million and Fee-Bearing Capital to Record $9.2 billion: Strong Multifamily Same Property Performance (1) : Improving Revenue Leads to NOI Growth Development and Lease-up Portfolio Update: Stabilized The Cornerstone, a 232-unit multifamily property in Dublin, Ireland, which added $3.7 million of Estimated Annual NOI and expands the Company's stabilized Irish apartment portfolio to over 3,500 units. The Vintage affordable housing portfolio has 1,870 multifamily units under development or in lease-up, which upon completion is currently expected to add $9.6 million to Estimated Annual NOI and grow the Vintage platform to 12,695 stabilized units. Investment Management Business and Co-Investment Portfolio Update Q2-25 Investment Management fees grew by 39% to $36 million (vs Q2-24) driven by higher levels of Fee-Bearing Capital, $1.2 billion of new construction loan originations from the Debt Investment Platform, and a $7 million development completion fee related to a previously completed development project in Camarillo, CA. Debt Investment Platform Grows to $10.1 billion in Q2-25: Q2-25 Activity Totals $1.2 Billion: Originated $1.2 billion across 13 new market-rate multifamily and student housing construction loans, completed $524 million in additional fundings on existing loans, and realized $321 million in repayments. For the year, the Company has originated $2.0 billion across 23 market-rate multifamily and student housing construction loans. Future Funding Commitments Total $5.2 billion: The Debt Investment Platform is comprised of $4.8 billion in outstanding loans ($4.6 billion of Fee-Bearing Capital) and $5.2 billion in future funding commitments, which will be added to the Company's Fee-Bearing Capital when funded. KW has an average ownership of 4% in these loans. Strong Rental Housing Origination Pipeline: Currently over $1 billion in new originations in process, all of which relate to market-rate multifamily or student-housing construction projects. There can be no assurances that these transactions will be completed. Real Estate Acquisitions Expand Co-Investment Portfolio: UK Single Family Rental Housing Platform Adds $102 million in New Sites: In Q2-25, acquired two development sites with 192 planned homes for $102 million, which grew platform to $534 million of committed investment across 1,177 planned homes. KW has a 10% interest in this platform, which currently has a target of $1.4 billion in assets. Active pipeline of opportunities totaling over 1,000 homes, with the current platform capacity to potentially reach approximately 4,000 homes at full capital deployment. U.S. Multifamily Acquisitions Total $387 Million: Acquired four multifamily communities totaling 1,181 units in the Pacific Northwest and Mountain West for $387 million. KW has a 12% weighted-average ownership interest in these acquisitions. $250 million of Cash Generated from Dispositions and Recapitalizations in Q2-25: Sale of $409 million in Consolidated Non-Core Assets: Sold two Irish office properties, an Italian office property, and other non-income producing investments for a total of $207 million. Sold a wholly-owned multifamily property in Northern California built in 1988 totaling 1,008 units, which will be converted to an affordable housing community and in which the Company's ownership was reduced from 100% to 10%. Consolidated sales generated $123 million of cash and total gains on sale of $55 million. Co-Investment Portfolio: As previously disclosed, the Company completed a hotel property recapitalization which resulted in $125 million of cash to KW. Balance Sheet and Liquidity Cash and Line of Credit: In Q2, the Company repaid $170 million on its revolving credit facility. As of June 30, 2025, Kennedy Wilson had a total of $309 million (1) in cash and cash equivalents and $102 million drawn on its $550 million revolving credit facility. Debt Profile: Kennedy Wilson's share of debt had a weighted average effective interest rate of 4.7% and a weighted average maturity of 4.6 years as of June 30, 2025. Approximately 98% of the Company's debt is either fixed (74%) or hedged with interest rate derivatives (24%). Interest Rate Hedging Update: The Company hedges its floating rate exposure through the use of interest rate caps and swaps: Interest rate hedges have a weighted-average maturity of 1.0 years and result in an 70 basis point improvement in the effective interest rate of its floating-rate hedged debt. Received $5 million of cash from interest rate derivatives in Q2-25, which is not reflected as an offset to interest expense. Foreign Currency Hedging Update: Kennedy Wilson hedges its exposure to foreign currency fluctuations by borrowing in the currency in which it invests and using foreign currency hedging instruments. As of June 30, 2025, the Company has hedged approximately 91% of the carrying value of its foreign currency investments, using local currency debt and hedging instruments with a weighted average term of 1.5 years. Share Repurchases: The Company repurchased 0.4 million shares during Q2-25 at a weighted average price of $6.21. As of June 30, 2025, the Company has approximately $101 million remaining on its $500 million share repurchase authorization. Subsequent Events The Company announced a full redemption of its €300 million outstanding euro-denominated 3.25% notes due November 2025 issued by Kennedy Wilson Europe Real Estate Limited, a wholly-owned subsidiary of Kennedy Wilson. The redemption will be completed on October 3, 2025 and funded using cash proceeds from its previously announced asset sale program, existing liquidity, and/or borrowings under its revolving credit facility. On that date, the Company will pay the full redemption amount comprising the outstanding principal together with all accrued and unpaid interest. Footnotes (1) Represents consolidated cash and includes $113 million of restricted cash, which is included in cash and cash equivalents and primarily relates to lender reserves associated with consolidated mortgages that we hold on properties. These reserves typically relate to interest, tax, insurance and future capital expenditures at the properties. Additionally, we are subject to withholding taxes to the extent we repatriate cash from certain of our foreign subsidiaries. Under the KWE Notes covenants we have to maintain certain interest coverage and leverage ratios to remain in compliance (see "Indebtedness and Related Covenants" for more detail on KWE Notes in the Company's quarterly report). Due to these covenants, we evaluate the tax and covenant implications before we distribute cash, which could impact the availability of funds at the corporate level. The Company's share of cash, including unconsolidated joint ventures, totals $440 million. Expand Conference Call and Webcast Details Kennedy Wilson will hold a live conference call and webcast to discuss results at 9:00 a.m. PT/ 12:00 p.m. ET on Thursday, August 7. The direct dial-in number for the conference call is (844) 340-4761 for U.S. callers and (412) 717-9616 for international callers. A replay of the call will be available for one week beginning one hour after the live call and can be accessed by (877) 344-7529 for U.S. callers and (412) 317-0088 for international callers. The passcode for the replay is 8633071. The webcast will be available at: A replay of the webcast will be available one hour after the original webcast on the Company's investor relations web site for three months. About Kennedy Wilson Kennedy Wilson (NYSE: KW) is a leading real estate investment company with $30 billion of assets under management in high growth markets across the United States, the UK and Ireland. Drawing on decades of experience, our relationship-oriented team excels at identifying opportunities and building value through market cycles, closing more than $60 billion in total transactions across the property spectrum since going public in 2009. Kennedy Wilson owns, operates, and builds real estate within our high-quality, core real estate portfolio and through our investment management platform, where we target opportunistic equity and debt investments alongside our partners. For further information, please visit Kennedy-Wilson Holdings, Inc. Consolidated Statements of Operations (Unaudited) (Dollars in millions, except share amounts and per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue Rental $ 93.3 $ 97.8 $ 190.6 $ 195.2 Hotel — — — 9.3 Investment management fees 36.4 26.1 61.4 47.4 Loan 5.7 8.0 11.5 16.1 Other 0.3 0.1 0.5 0.4 Total revenue 135.7 132.0 264.0 268.4 (Loss) income from unconsolidated investments Principal co-investments 1.8 (5.8 ) 21.4 3.9 Carried interests (2.0 ) (12.3 ) (10.2 ) (28.7 ) Total (loss) income from unconsolidated investments (0.2 ) (18.1 ) 11.2 (24.8 ) Gain on sale of real estate, net 55.1 0.2 54.3 106.6 Expenses Rental 35.4 37.0 73.5 74.2 Hotel — — — 7.6 Compensation and related (including $6.5, $6.0, $12.8, and $11.2 of share-based compensation) 32.3 31.8 59.2 59.4 Carried interests compensation (0.6 ) (4.5 ) (3.3 ) (10.0 ) General and administrative 8.8 9.5 19.2 17.8 Depreciation and amortization 34.5 36.4 68.6 75.3 Total expenses 110.4 110.2 217.2 224.3 Interest expense (62.5 ) (63.8 ) (123.9 ) (128.5 ) Loss on early extinguishment of debt (2.1 ) (0.5 ) (2.1 ) (0.2 ) Other (loss) income (5.6 ) 0.3 (10.8 ) 7.1 Income (loss) before benefit from (provision for) income taxes 10.0 (60.1 ) (24.5 ) 4.3 (Provision for) benefit from income taxes (4.4 ) 11.8 0.5 (14.9 ) Net income (loss) 5.6 (48.3 ) (24.0 ) (10.6 ) Net (income) loss attributable to noncontrolling interests (1.1 ) 0.1 (1.4 ) 0.2 Preferred dividends (10.9 ) (10.9 ) (21.8 ) (21.8 ) Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (6.4 ) $ (59.1 ) $ (47.2 ) $ (32.2 ) Basic loss per share Loss per share $ (0.05 ) $ (0.43 ) $ (0.34 ) $ (0.23 ) Weighted average shares outstanding 138,144,013 137,588,910 137,946,790 138,142,769 Diluted loss per share Loss per share $ (0.05 ) $ (0.43 ) $ (0.34 ) $ (0.23 ) Weighted average shares outstanding 138,144,013 137,588,910 137,946,790 138,142,769 Dividends declared per common share $ 0.12 $ 0.12 $ 0.24 $ 0.36 Expand Kennedy-Wilson Holdings, Inc. Adjusted EBITDA (Unaudited) (Dollars in millions) The table below reconciles net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders to Adjusted EBITDA, using Kennedy Wilson's pro-rata share amounts for each adjustment item. Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (6.4 ) $ (59.1 ) $ (47.2 ) $ (32.2 ) Non-GAAP adjustments: Add back (Kennedy Wilson's Share) (1): Interest expense 95.2 96.5 188.1 191.7 Loss on early extinguishment of debt 2.1 0.5 2.1 0.2 Depreciation and amortization 34.4 36.3 68.2 74.7 Provision for (benefit from) income taxes 4.4 (11.8 ) (0.5 ) 15.1 Preferred dividends 10.9 10.9 21.8 21.8 Share-based compensation 6.5 6.0 12.8 11.2 Adjusted EBITDA $ 147.1 $ 79.3 $ 245.3 $ 282.5 (1) See Appendix for reconciliation of Kennedy Wilson's Share amounts. Expand Adjusted Net Income (Unaudited) (Dollars in millions, except share data) The table below reconciles net income attributable to Kennedy-Wilson Holdings, Inc. common shareholders to Adjusted Net Income, using Kennedy Wilson's pro-rata share amounts for each adjustment item. Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net loss income attributable to Kennedy-Wilson Holdings, Inc. common shareholders $ (6.4 ) $ (59.1 ) $ (47.2 ) $ (32.2 ) Non-GAAP adjustments: Add back (Kennedy Wilson's Share) (1): Depreciation and amortization 34.4 36.3 68.2 74.7 Share-based compensation 6.5 6.0 12.8 11.2 Adjusted Net Income (Loss) $ 34.5 $ (16.8 ) $ 33.8 $ 53.7 Weighted average shares outstanding for diluted 137,588,910 137,946,790 138,142,769 (1) See Appendix for reconciliation of Kennedy Wilson's Share amounts. Expand Forward-Looking Statements Statements made by us in this report and in other reports and statements released by us that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are necessarily estimates reflecting the judgment of our senior management based on our current estimates, expectations, forecasts and projections and include comments that express our current opinions about trends and factors that may impact future operating results. Disclosures that use words such as "believe," "anticipate," "estimate," "intend," "may," "could," "plan," "expect," "project" or the negative of these, as well as similar expressions, are intended to identify forward-looking statements. These statements are not guarantees of future performance, rely on a number of assumptions concerning future events, many of which are outside of our control, and involve known and unknown risks and uncertainties that could cause our actual results, performance or achievement, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties may include the factors and the risks and uncertainties described elsewhere in this report and other filings with the Securities and Exchange Commission (the "SEC"), including the Item 1A. "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024, as amended by our subsequent filings with the SEC. Any such forward-looking statements, whether made in this report or elsewhere, should be considered in the context of the various disclosures made by us about our businesses including, without limitation, the risk factors discussed in our filings with the SEC. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, changes in assumptions, or otherwise. Common Definitions 'KWH,' "KW," 'Kennedy Wilson,' the "Company," "we," "our," or "us" refers to Kennedy-Wilson Holdings, Inc. and its wholly-owned subsidiaries. 'Adjusted EBITDA' represents net (loss) income before interest expense, loss (gain) on early extinguishment of debt, our share of interest expense included in unconsolidated investments, depreciation and amortization, our share of depreciation and amortization included in unconsolidated investments, preferred dividends, provision for (benefit from) income taxes, our share of taxes included in unconsolidated investments, share-based compensation expense for the Company, and EBITDA attributable to noncontrolling interests. Please also see the reconciliation to GAAP in the Company's supplemental financial information included in this release and also available at Our management uses Adjusted EBITDA to analyze our business because it adjusts net income for items we believe do not accurately reflect the nature of our business going forward or that relate to non-cash compensation expense or noncontrolling interests. Such items may vary for different companies for reasons unrelated to overall operating performance. Additionally, we believe Adjusted EBITDA is useful to investors to assist them in getting a more accurate picture of our results from operations. However, Adjusted EBITDA is not a recognized measurement under GAAP and when analyzing our operating performance, readers should use Adjusted EBITDA in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, Adjusted EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not remove all non-cash items or consider certain cash requirements such as tax and debt service payments. The amount shown for Adjusted EBITDA also differs from the amount calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges and are used to determine compliance with financial covenants and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments. "Adjusted Fees" refers to Kennedy Wilson's gross investment management and property services fees adjusted to include Kennedy Wilson's share of fees eliminated in consolidation, and performance fees included in unconsolidated investments. Our management uses Adjusted Fees to analyze our investment management and business because the measure removes required eliminations under GAAP for properties in which the Company provides services but also has an ownership interest. These eliminations understate the economic value of the investment management and property services fees and makes the Company comparable to other real estate companies that provide investment management but do not have an ownership interest in the properties they manage. Our management believes that adjusting GAAP fees to reflect these amounts eliminated in consolidation presents a more holistic measure of the scope of our investment management and real estate services business. "Adjusted Net Income" represents net income (loss) before depreciation and amortization, Kennedy Wilson's share of depreciation and amortization included in unconsolidated investments, share-based compensation, and excluding net income attributable to noncontrolling interests, before depreciation and amortization. Please also see the reconciliation to GAAP in the Company's supplemental financial information included in this release and also available at "Baseline EBITDA" is a non-GAAP measure representing net (loss) income less total income from unconsolidated investments, gain (loss) on sale of real estate, net, other income (loss) and non-controlling interest, plus share-based compensation, carried interest compensation, depreciation and amortization, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes, NOI from unconsolidated investments (at KW's share) and fees eliminated in consolidation. "Cap rate" represents the net operating income of an investment for the year preceding its acquisition or disposition, as applicable, divided by the purchase or sale price, as applicable. Capitalization ("Cap") rates discussed in this report only include data from income-producing properties. The Company calculates cap rates based on information that is supplied to it during the acquisition diligence process. This information is not audited or reviewed by independent accountants and may be presented in a manner that is different from similar information included in the Company's financial statements prepared in accordance with GAAP. In addition, cap rates represent historical performance and are not a guarantee of future net operating income ("NOI"). Properties for which a cap rate is discussed may not continue to perform at that cap rate. "Carried interests' refers to amounts that are allocated to the Company under Funds and the Co-Investment investments based on the cumulative performance of such venture and are subject to preferred return thresholds of the partners of such venture. In the case of Funds, carried interests represent an allocation relating to the performance of investment management services, whereas in the case of a Co-Investment, carried interests represent returns for the performance of the underlying investments in the Co-Investment investments structures subject to collaborative decision-making. "Carried interests compensation' refers to any carried interests earned by certain commingled funds and separate account investments to be allocated to certain non-NEO employees of the Company, as approved by the compensation committee of the Company's board of directors. "Equity partners" refers to non-wholly-owned subsidiaries that we consolidate in our financial statements under U.S. GAAP and third-party equity providers. "Estimated Annual NOI" is a property-level non-GAAP measure representing the estimated annual net operating income from each property as of the date shown, inclusive of rent abatements (if applicable). The calculation excludes depreciation and amortization expense, and does not capture the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements, and leasing commissions necessary to maintain the operating performance of our properties. For assets wholly-owned and fully occupied by KW, the Company provides an estimated NOI for valuation purposes of $4.4 million, which includes an assumption for applicable market rents. Any of the enumerated items above could have a material effect on the performance of our properties. Also, where specifically noted, for properties purchased in 2025, the NOI represents estimated Year 1 NOI from our original underwriting. Estimated year 1 NOI for properties purchased in 2025 may not be indicative of the actual results for those properties. Estimated annual NOI is not an indicator of the actual annual net operating income that the Company will or expects to realize in any period. Please also see the definition of "Net operating income" below. Please also see the reconciliation to GAAP in the Company's supplemental financial information included in this release and also available at "Fee-Bearing Capital" represents total third-party committed or invested capital that we manage in our joint-ventures, commingled funds, and debt platform that entitle us to earn fees, including without limitation, asset management fees, construction management fees, acquisition and disposition fees and/or promoted interest, if applicable. "Gross Asset Value' refers to the gross carrying value of assets, before debt, depreciation and amortization, and net of noncontrolling interests. "Net operating income" or "NOI' is a non-GAAP measure representing the income produced by a property calculated by deducting certain property expenses from property revenues. Our management uses net operating income to assess and compare the performance of our properties and to estimate their fair value. Net operating income does not include the effects of depreciation or amortization or gains or losses from the sale of properties because the effects of those items do not necessarily represent the actual change in the value of our properties resulting from our value-add initiatives or changing market conditions. Our management believes that net operating income reflects the core revenues and costs of operating our properties and is better suited to evaluate trends in occupancy and lease rates. Please also see the reconciliation to GAAP in the Company's supplemental financial information included in this release and also available at "Noncontrolling interests" represents the portion of equity ownership in a consolidated subsidiary not attributable to Kennedy Wilson. "Principal co-investments' consists of the Company's share of income or loss earned on investments in which the Company can exercise significant influence but does not have control. Income from unconsolidated investments includes income from ordinary course operations of the underlying investment, gains on sale, fair value gains and losses. "Pro-Rata" represents Kennedy Wilson's share calculated by using our proportionate economic ownership of each asset in our portfolio. Please also refer to the pro-rata financial data in our supplemental financial information. "Property NOI" or "Property-level NOI" is a non-GAAP measure calculated by deducting the Company's Pro-Rata share of rental and hotel property expenses from the Company's Pro-Rata rental, hotel and loans and other revenues. Please also see the reconciliation to GAAP in the Company's supplemental financial information included in this release and also available at "Real Estate Assets under Management" ("AUM") generally refers to the properties and other assets with respect to which the Company provides (or participates in) oversight, investment management services and other advice, and which generally consist of real estate properties or loans, and investments in joint ventures. AUM is principally intended to reflect the extent of the Company's presence in the real estate market, not the basis for determining management fees. AUM consists of the total estimated fair value of the real estate properties, total loan commitments made through out debt investment platform, inclusive of both currently outstanding loan amounts and contractual future fundings, and other real estate-related assets either owned by third parties, wholly-owned by the Company or held by joint ventures and other entities in which its sponsored funds or investment vehicles and client accounts have invested. The estimated value of development properties is included at estimated completion cost. The accuracy of estimating fair value for investments cannot be determined with precision and cannot be substantiated by comparison to quoted prices in active markets and may not be realized in a current sale or immediate settlement of the asset or liability (particularly given the ongoing macroeconomic conditions such as, but not limited to recent adverse developments affecting regional banks and other financial institutions, and ongoing military conflicts around the world and uncertainty with respect to fluctuating interest rates continue to fuel recessionary fears and create volatility in Kennedy Wilson's business results and operations). Recently, there has also been a lack of liquidity in the capital markets as well as limited transactions which has had an impact on the inputs associated with fair values. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including capitalization rates, discount rates, liquidity risks, and estimates of future cash flows could significantly affect the fair value measurement amounts. All valuations of real estate involve subjective judgments. "Same property" refers to stabilized consolidated and unconsolidated properties in which Kennedy Wilson has an ownership interest during the entire span of both periods being compared. This analysis excludes properties that during the comparable periods (i) were acquired, (ii) were sold, (iii) are either under development or undergoing lease up or major repositioning as part of the Company's asset management strategy, (iv) were investments in which the Company holds a minority ownership position, and (v) certain non-recurring income and expenses. The analysis only includes Office, Multifamily and Hotel properties, where applicable. To derive an appropriate measure of operating performance across the comparable periods, the Company removes the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S. dollar, for both periods. Amounts are calculated using Kennedy Wilson's ownership share in the Company's consolidated and unconsolidated properties. Management evaluates the performance of the operating properties the Company owns and manages using a 'same property' analysis because the population of properties in this analysis is consistent from period to period, which allows management and investors to analyze (i) the Company's ongoing business operations and (ii) the revenues and expenses directly associated with owning and operating the Company's properties and the impact to operations from trends in occupancy rates, rental rates and operating costs. Same property metrics are widely recognized measures in the real estate industry, however, other publicly-traded real estate companies may not calculate and report same property results in the same manner as the Company. Please also see 'Management's Discussion and Analysis of Financial Condition and Results of Operations - Certain Non-GAAP Measures and Reconciliations' for a reconciliation of 'same property' results to the most comparable measure reported under GAAP. Note about Non-GAAP and certain other financial information included in this presentation In addition to the results reported in accordance with U.S. generally accepted accounting principles ("GAAP") included within this presentation, Kennedy Wilson has provided certain information, which includes non-GAAP financial measures (including Adjusted EBITDA, Adjusted Net Income, Net Operating Income, and Adjusted Fees, as defined above). Such information is reconciled to its closest GAAP measure in accordance with the rules of the SEC, and such reconciliations are included within this presentation. These measures may contain cash and non-cash acquisition-related gains and expenses and gains and losses from the sale of real-estate related investments. Consolidated non-GAAP measures discussed throughout this report contain income or losses attributable to non-controlling interests. Management believes that these non-GAAP financial measures are useful to both management and Kennedy Wilson's shareholders in their analysis of the business and operating performance of the Company. Management also uses this information for operational planning and decision-making purposes. Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measures. Additionally, non-GAAP financial measures as presented by Kennedy Wilson may not be comparable to similarly titled measures reported by other companies. Annualized figures used throughout this release and supplemental financial information, and our estimated annual net operating income metrics, are not an indicator of the actual net operating income that the Company will or expects to realize in any period. KW-IR
Business Wire
12 minutes ago
- Business Wire
Niagen Bioscience, Inc. Reports Second Quarter 2025 Financial Results and Increases Full Year Outlook
LOS ANGELES--(BUSINESS WIRE)--Niagen Bioscience, Inc. (NASDAQ:NAGE) today announced financial results for the second quarter of 2025. Niagen Bioscience, Inc. Reports Second Quarter 2025 Financial Results and Increases Full Year Outlook Share Second Quarter 2025 Financial Highlights Compared to Prior Year Period Total net sales increased 37% to $31.1 million, with Tru Niagen® sales reaching $22.7 million, growing 22%. Niagen® ingredient sales increased 135% to $7.4 million including food-grade and pharmaceutical-grade. Gross margin increased 480 basis points to 65.0%. Sales and marketing expense as a percentage of net sales was 26.4%, an improvement of 420 basis points. Net income of $3.6 million or $0.05 earnings per share, up from breakeven in prior year quarter. Adjusted EBITDA, a non-GAAP measure, increased 221% to $5.0 million. Total cash provided by operations of $9.1 million during the six months ended June 30, 2025, ending the quarter with $60.5 million in cash. Increased full year 2025 outlook: Net sales growth expected between 22%–27% (previously between 20%–25%), reflecting continued execution and leadership in the expanding NAD+ market. Recent Operational Highlights On June 9, 2025, the Company announced the publication of the first peer-reviewed clinical study of Niagen® in individuals with Werner syndrome, a rare premature aging disorder in Aging Cell. The 52-week randomized trial showed Niagen® significantly increased NAD+ levels and improved clinical markers of cardiovascular and skin health, supporting further investigation in rare, age-related diseases. On July 8, 2025, the Company entered into a worldwide exclusive license agreement with Haukeland University Hospital in Bergen, Norway, securing proprietary rights to develop and commercialize its patented nicotinamide riboside (Niagen®) as a potential pharmaceutical therapy for Parkinson's disease (PD). This agreement includes access to extensive clinical data, including from the Phase III NOPARK trial, and supports the Company's broader efforts to advance regulated therapeutic applications for neurodegenerative conditions. During June 2025, patient dosing the Phase III NOPARK trial was completed, the largest and most comprehensive clinical study of NAD+ augmentation in persons with early PD to date. NOPARK is a randomized, double-blind, placebo-controlled phase III clinical trial featuring 400 individuals with early-stage PD across 12 sites in Norway. Randomized to receive either 500 mg of nicotinamide riboside (Niagen) twice daily or placebo for 52 weeks, participants had follow-up assessments at five time points in a one-year period. The primary endpoint is the MDS-UPDRS total score, a gold standard measure of PD progression. Data analysis is underway and the data from this phase 3 trial is expected to be published in 2026. On July 14, 2025, the Company announced the launch of Tru Niagen® as an exclusive in-room amenity, and introduced Niagen IV at The Spa by Equinox Hotel New York through NutriDrip, marking Niagen Bioscience's entry into luxury hospitality. While featured at a single location, Equinox's sole hotel property, the launch aligns with a premium, health-conscious demographic and serves as a potential model for broader hospitality partnerships. As of August 2025, Niagen Plus products, including Niagen IV and injectables, are available in over 800 leading wellness clinics in the U.S., up from more than 475 clinics in December 2024. This growth reflects accelerating adoption by clinics and rising demand for clinically administered NAD+ solutions. Niagen Plus products are compounded and distributed through U.S. FDA-registered 503B outsourcing facilities and offered exclusively by prescription through participating wellness clinics. 'We delivered an excellent second quarter, with $31.1 million in net sales, up 37% year-over-year, and $3.6 million in net income,' said Niagen Bioscience CEO Rob Fried. 'As the pioneers of this blossoming NAD+ market, we continue to invest in the future while maintaining our focus on profitable growth." Results of operations for the three months ended June 30, 2025 compared to the prior year quarter Net Sales for Niagen Bioscience increased 37%, or $8.4 million, to $31.1 million. The growth in net sales was driven by combined growth in Tru Niagen® sales and Niagen® ingredient sales, including strong e-commerce channel performance, stronger demand for food-grade Niagen® and the ramp-up of pharmaceutical-grade Niagen® sales, which were not sold in the prior year quarter. Gross Margin improved 480 basis points to 65.0% primarily due to changes in product mix, business mix, the use of lower-cost inventory purchases, and improvements in labor and overhead utilization rates with higher sales. These gross margin improvements may not be indicative of future performance and certain drivers, such as lower-cost inventory purchases, are likely to be temporary in nature. Gross margins are expected to normalize in future periods. Operating Expense increased 22%, or $3.1 million, to $17.0 million reflecting investments for business growth and brand awareness. Selling and marketing expense increased $1.2 million, and improved 420 basis points as a percentage of net sales to 26.4% of net sales, reflecting improved sales efficiency and disciplined investment. The increase in expenses primarily reflects higher investments to support brand growth in our consumer products segment. General and administrative expense increased $1.6 million, or 28%, primarily driven by higher employee-related expenses, share-based compensation, and professional and consulting fees. Research and development expenses increased $0.3 million due to higher professional and consulting fees, as well as higher employee-related expenses. Net Income was $3.6 million, or $0.05 per share, compared to approximately break-even net loss and loss per share for the second quarter of 2024. Adjusted EBITDA, a non-GAAP measure, was $5.0 million, up from $1.6 million for the second quarter of 2024. See 'Reconciliation of Non-GAAP Financial Measures' for a reconciliation of non-GAAP Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure. Cash Flows from Operating Activities had a net cash inflow of $9.1 million for the six months ended June 30, 2025 compared to approximately break-even cash flows in the prior year. The approximately $9.1 million increase in cash provided by operating activities was primarily driven by improvements in net income (loss), relatively higher collections on trade receivables, and a relative increase in accounts payable. These increases were partially offset by a decrease in credit loss expense due to a recovery of previously written-off amounts and higher inventory purchases associated with scaling our inventory reserves. 2025 Full Year Outlook Looking forward, for the full year, the Company is revising its revenue growth expectation from 20% to 25% year-over-year to 22% to 27%. This outlook reflects anticipated continued expansion of the Company's e-commerce business as well as growth through new and established partnerships. Gross margin is expected to improve slightly year-over-year compared to 61.8% in 2024, driven by ongoing supply chain optimization efforts, cost savings initiatives, and overall business scale. The Company is also updating its outlook for sales and marketing expenses. These costs are now expected to increase in absolute dollars compared to $29.5 million in 2024, but decrease as a percentage of net sales compared to 29.6% of net sales in 2024. This compares to the prior guidance of an increase in absolute dollars with a stable percentage of net sales year over year. The updated projection reflects the Company's continued strategic investments to enhance and strengthen brand awareness and support its various business channels while enhancing efficiencies. The Company remains committed to maintaining steady investments in research and development throughout 2025, with spending expected to align closely with fiscal year 2024 levels ($6.0 million), to continue driving future innovation. General and administrative expenses are expected to increase by approximately $7.0 to $8.0 million, primarily due to share-based compensation and investments in business growth and the absence of a $3.5 million royalty expense reversal that occurred in 2024. Investor Conference Call A live webcast will be held Wednesday, August 6, 2025 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss Niagen Bioscience's second-quarter financial results and provide a general business update. To listen to the webcast, or to view the earnings press release and its accompanying financial exhibits, please visit the Investors Relations section of Niagen Bioscience's website at The toll-free dial-in information for this call is 1-888-596-4144 with Conference ID: 8584242. The webcast will be recorded, and will be available for replay via the website from 7:30 p.m. Eastern time on August 6, 2025 through 11:59 p.m. Eastern time on August 13, 2025. The replay of the call can also be accessed by dialing 1-800-770-2030, using the Replay ID: 8584242. Important Note on Forward Looking Statements: This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as 'expects,' 'anticipates,' 'intends' 'estimates,' 'plans,' 'potential,' 'possible,' 'probable,' 'believes' 'seeks,' 'may,' 'will,' 'should,' 'could,' 'predicts,' 'projects,' 'continue,' 'would' or the negative of such terms or other similar expressions. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the quotation from Niagen Bioscience's Chief Executive Officer, statements related to the Company's 2025 financial outlook including but not limited to revenue growth, gross margin, expenses, investment plans, and the statements regarding Niagen Plus. Risks that contribute to the uncertain nature of the forward-looking statements include: inflationary conditions and adverse economic conditions; our history of operating losses; the growth and profitability of our product sales; our ability to maintain and grow sales, marketing and distribution capabilities; changing consumer perceptions of our products; our reliance on a single or limited number of third-party suppliers; risks of conducting business in China; including unanticipated developments in and risks related to the Company's ability to secure adequate quantities of pharmaceutical-grade Niagen in a timely manner; the Company's ability to obtain appropriate contracts and arrangements with U.S. FDA-registered 503B outsourcing facilities required to compound and distribute pharmaceutical-grade Niagen to clinics; the Company's ability to remain on the U.S. FDA Bulk Drug Substances Nominated for Use in Compounding Under Section 503B of the Federal Food, Drug, and Cosmetic Act Category 1 list; the Company's ability to maintain and enforce the Company's existing intellectual property and obtain new patents; whether the potential benefits of NRC can be further supported; further research and development and the results of clinical trials possibly being unsuccessful or insufficient to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials; determinations made by the FDA and other governmental authorities; economic and market instability, including as a result of tariffs or trade conflicts; and the risks and uncertainties associated with our business and financial condition in general, described in our filings with the Securities and Exchange Commission (SEC), including, without limitation, our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q as filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and actual results may differ materially from those suggested by these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and Niagen Bioscience undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof. About Niagen Bioscience, Inc.: Niagen Bioscience is a global bioscience company dedicated to healthy aging. The Niagen Bioscience team, which includes world-renowned scientists, is pioneering research on nicotinamide adenine dinucleotide (NAD+), an essential coenzyme that is a key regulator of cellular metabolism and is found in every cell of the human body. NAD+ levels in humans have been shown to decline with age, among other factors, and may be increased through supplementation with NAD+ precursors. Niagen Bioscience is the innovator behind the NAD+ precursor nicotinamide riboside chloride ('NRC' commonly referred to as 'NR'), commercialized as the flagship ingredient Niagen®, available in both food and pharmaceutical grades. Nicotinamide riboside chloride and other NAD+ precursors are protected by Niagen Bioscience's patent portfolio. The Company delivers Niagen® as the sole or principal dietary ingredient in its consumer product line Tru Niagen® available at and through partnerships with global retailers and distributors. The Company also develops and commercializes proprietary-based ingredient technologies, including food-grade Niagen® and pharmaceutical-grade Niagen®, and supplies these ingredients as raw materials to the manufacturers of consumer products and U.S. FDA-registered 503B outsourcing facilities, respectively. The Company further offers natural product fine chemicals, known as phytochemicals, and related research and development services. Follow us on X (formerly Twitter) @NiagenBio and Instagram @TruNiagen and @NiagenPlus and subscribe to our latest news via our website accessible at to which Niagen Bioscience regularly posts copies of its press releases as well as additional updates and financial information about the Company. Niagen Bioscience, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (In thousands except par values, unless otherwise indicated) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents, including restricted cash of $152 for both periods presented $ 60,474 $ 44,660 Trade receivables, net of allowances of $199 and $95, respectively 9,656 7,768 Inventories 14,406 9,192 Prepaid expenses and other assets 2,143 2,482 Total current assets 86,679 64,102 Leasehold improvements and equipment, net 1,632 1,719 Intangible assets, net 284 359 Right-of-use assets 2,525 1,730 Other long-term assets 405 368 Total assets $ 91,525 $ 68,278 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 13,680 $ 8,526 Accrued expenses 7,381 7,817 Current maturities of operating lease obligations 957 982 Current maturities of finance lease obligations 6 12 Customer deposits 303 611 Total current liabilities 22,327 17,948 Deferred revenue 2,674 2,579 Operating lease obligations, less current maturities 2,329 1,657 Total stockholders' equity 64,195 46,094 Total liabilities and stockholders' equity $ 91,525 $ 68,278 Expand Niagen Bioscience, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, (In thousands) 2025 2024 Net cash provided by / (used in): Operating activities $ 9,133 $ 31 Investing activities (167 ) (53 ) Financing activities 6,848 582 Net increase in cash and cash equivalents 15,814 560 Cash and cash equivalents beginning of period 44,660 27,325 Cash and cash equivalents at end of period $ 60,474 $ 27,885 Expand Niagen Bioscience, Inc. and Subsidiaries Unaudited Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Income (Loss) to Adjusted EBITDA (In thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net income (loss), as reported $ 3,609 $ 5,063 $ 7,179 $ 1,878 $ (15 ) Adjustments: Interest income, net (552 ) (459 ) (373 ) (276 ) (241 ) Provision for income taxes 128 168 305 — — Depreciation 158 158 151 164 170 Amortization of intangibles 38 37 38 38 37 Noncash lease expense 159 173 169 164 163 Share-based compensation 1,488 1,075 752 735 1,185 Severance and restructuring 21 4 (4 ) 185 276 Reversal of previously accrued royalties and license maintenance fees (1) — — (3,521 ) — — Recovery of credit losses related to legal settlement (2) — (1,325 ) (1,325 ) — — Adjusted EBITDA $ 5,049 $ 4,894 $ 3,371 $ 2,888 $ 1,575 Expand (1) The reversal of previously accrued royalties and license maintenance fees related to a supplemental agreement with Dartmouth, which waived certain obligations under the exclusive license agreements. (2) The recovery of credit losses relates to the 2024 legal settlement with Elysium Health, LLC, paid in two installments, reversing a bad debt write-off from 2019. Expand Non-GAAP Financial Information: To supplement Niagen Bioscience's unaudited financial data presented in accordance with generally accepted accounting principles (GAAP), the Company has presented Adjusted EBITDA, a non-GAAP financial measure. Niagen Bioscience believes the presentation of this non-GAAP financial measure provides important supplemental information to management and investors and enhances the overall understanding of the Company's historical and current financial operating performance. The Company believes disclosure of the non-GAAP financial measure has substance because the excluded expenses are infrequent in nature, are variable in nature or do not represent current cash expenditures. Further, such non-GAAP financial measure is among the indicators the Company uses as a basis for evaluating the Company's financial performance as well as for planning and forecasting purposes. Accordingly, disclosure of this non-GAAP financial measure provides investors with the same information that management uses to understand the Company's economic performance year-over-year. Adjusted EBITDA is defined as net income (loss) before (a) interest, (b) provision for income taxes, (c) depreciation, (d) amortization, (e) non-cash share-based compensation costs, (f) severance and restructuring expense and (g) other infrequent items, including the reversal of previously accrued royalties and license maintenance fees, and the recovery of previously recognized credit losses from a legal settlement. While Niagen Bioscience believes that this non-GAAP financial measure provides useful supplemental information to investors, there are limitations associated with the use of such measure. This measure is not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the method of calculation. Management compensates for these limitations by relying primarily on the Company's GAAP results and by using Adjusted EBITDA only supplementally and by reviewing the reconciliation of the non-GAAP financial measure to its most comparable GAAP financial measure. Non-GAAP financial measures are not prepared in accordance with, or an alternative for, generally accepted accounting principles in the United States. The Company's non-GAAP financial measure is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
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Universal Corporation Reports First Quarter Fiscal Year 2026 Results
RICHMOND, Va.--(BUSINESS WIRE)--Universal Corporation (NYSE:UVV) ('Universal' or the 'Company'), a global business-to-business agriproducts company, today announced financial results for the quarter ended June 30, 2025. Preston D. Wigner, Chairman, President, and Chief Executive Officer of Universal, stated, 'We are pleased with our good start for fiscal year 2026. Our Tobacco Operations segment's improved quarterly performance was driven primarily by a favorable product mix in the first quarter, despite lower carryover crop sales. The reduction in carryover crop sales in the quarter resulted from significant shipment volumes earlier in the prior fiscal year. Current flue-cured and burley tobacco crop sizes have increased significantly, and we are seeing more typical tobacco buying patterns with green tobacco purchases largely completed in Brazil and Africa. Customer demand remains firm, following several years of short tobacco supply, and our uncommitted tobacco inventory levels were low, at about 11%, as of June 30, 2025. Mr. Wigner continued, 'Our Ingredients Operations segment maintained positive momentum, achieving higher sales volumes in the quarter. Segment results for the quarter were impacted by a less favorable product mix, some curtailed demand due to tariff uncertainty, and higher fixed costs as we work to fill our recently expanded production facility. We are continuing to see interest in our new value-added products and capabilities. Supported by a foundational customer for our expanded Universal Ingredients facility, we are diligently working on converting interest from existing and new customers into increased volumes for that facility. Our focus for a successful fiscal year 2026 is growing Universal Ingredients organically, while also maximizing and optimizing our tobacco business and strengthening our organization.' *See Reconciliation of Certain non-GAAP Financial Measures in Other Items below Expand First Quarter 2026 Highlights Consolidated Results Revenues down $3 million to $594 million on lower tobacco sales volumes. Operating income up $17 million to $34 million on favorable product mix in the Tobacco Operations segment. Tobacco Operations Segment Revenues down $7 million and segment operating income up $21 million. Quarter results reflected seasonal patterns with lower tobacco sales and higher working capital outlays for tobacco purchases. Tobacco sales volumes down 8% on lower consolidated sales of carryover crop tobacco. Tobacco sales prices up 2% on product mix. Operating income up on a favorable product mix in Asia. Low uncommitted tobacco inventory levels at about 11% at quarter end. Outlook Flue-cured and burley tobacco crop sizes (excluding China) are expected to increase by about 25% and 45%, respectively, in fiscal year 2026. Tobacco is expected to move to a more balanced position during fiscal year 2026. However, given current expected crop sizes, we believe it is likely that flue-cured and burley tobacco will be in oversupply positions by the end of the fiscal year. Ingredients Operations Segment Higher revenues on increased sales volumes. Lower operating income reflected a less favorable product mix, some curtailed demand due to tariff uncertainty, and higher fixed costs, including additional depreciation, from our recently expanded production facility. Continued high level of interest in value-added products. Focus on organic growth. Select Balance Sheet Items, Liquidity, and Debt Increased working capital usage on seasonal tobacco purchases during the quarter. Cash balance of $178.4 million, up $76.7 million quarter-over-quarter. Total debt up $40.7 million quarter-over-quarter. Net debt down $47.1 million quarter-over-quarter. Approximately $355 million available under revolving credit facility as of quarter end. Additional Items Restructuring and impairment costs of $1.1 million primarily related to previously announced consolidation of the Company's European sheet operations. Sustainability Update Mr. Wigner stated, 'Sustainability is an important part of our business strategy, and we are taking deliberate steps to reduce our environmental impact.' As part of its broader environmental mitigation strategy, Universal recently completed its annual third-party assessment and verification of Scope 1, 2, and relevant Scope 3 emissions data. This important assessment ensures alignment with established standards and provides transparency into Universal's emission reduction efforts. A demonstration of how the Company is aligning operations with global sustainability standards is the recently commissioned biomass boiler in Zimbabwe. The new boiler, once operational, will reduce coal use over time and contribute to long-term emissions reduction. 'These milestones and initiatives demonstrate Universal's continued progress toward our climate goals and focus on integrating sustainability into operational decision-making.' Other Items Reconciliation of Certain Non-GAAP Financial Measures References to adjusted operating income (loss), adjusted net income (loss) attributable to Universal Corporation, adjusted diluted earnings (loss) per share, and the total for segment operating income (loss) are references to non-GAAP financial measures. These measures are not financial measures calculated in accordance with generally accepted accounting principles ("GAAP") and should not be considered as substitutes for operating income (loss), net income (loss) attributable to Universal Corporation, diluted earnings (loss) per share, cash from operating activities or any other operating or financial performance measure calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of adjusted operating income (loss) to consolidated operating (income), adjusted net income (loss) attributable to Universal Corporation to consolidated net income (loss) attributable to Universal Corporation and adjusted diluted earnings (loss) per share to diluted earnings (loss) per share are provided below. In addition, a reconciliation of the total for segment operating income (loss) to consolidated operating income (loss) is provided in Note 3. "Segment Information" to the consolidated financial statements. Management evaluates the consolidated Company and segment performance excluding certain significant charges or credits. Management believes these non-GAAP financial measures, which exclude items that it believes are not indicative of its core operating results, can provide investors with important information that is useful in understanding its business results and trends. References to net debt, net capitalization, and net debt to net capitalization ratio are also references to non-GAAP financial measures. These measures are not financial measures calculated in accordance with GAAP and should not be considered substitutes for total debt, total capitalization, total debt to total capitalization ratio, or any other operating or financial performance measures calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of net debt to total debt and net capitalization to total capitalization are provided below. Management believes these non-GAAP measures are meaningful indicators of liquidity and financial position. The following tables set forth certain non-recurring items included in reported results to reconcile adjusted operating income to consolidated operating income and adjusted net income to net income attributable to Universal Corporation: (1) Restructuring and impairment costs are included in Consolidated operating income in the consolidated statements of income, but excluded for purposes of Adjusted operating income, Adjusted net income available to Universal Corporation, and Adjusted diluted earnings per share. (2) The income tax effect of non-GAAP adjustments was determined based on the timing and nature of the specific non-GAAP adjustments and their relevant jurisdictional income tax rates (foreign, state, and local) and the applicable U.S. federal income tax rates. The Company considers current and deferred income tax rates to calculate the impact to income taxes for the non-GAAP adjustments. Expand The following table reconciles total debt to net debt and net capitalization: Investor Conference Call At 10:00 a.m. (Eastern Time) on August 7, 2025, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting at that time. A replay of the webcast will be available at that site through November 7, 2025. A taped replay of the call will also be available through August 21, 2025, by dialing (800) 770-2030 (Playback ID: 5786366#). About Universal Corporation Universal Corporation (NYSE: UVV) is a global agricultural company with over 100 years of experience supplying products and innovative solutions to meet our customers' evolving needs and precise specifications. Through our diverse network of farmers and partners across more than 30 countries on five continents, we are a trusted provider of high-quality, traceable products. We leverage our extensive supply chain expertise, global reach, integrated processing capabilities, and commitment to sustainability to provide a range of products and services designed to drive efficiency and deliver value to our customers. For more information, visit CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION This release includes 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Among other things, these statements include statements made in Mr. Wigner's quotations, statements regarding expectations with respect to our fiscal year 2026 performance, our strategic plans, ingredients business, tobacco business, including expectations with respect to size, shipments and sales and purchases of tobacco crops. These forward-looking statements are generally identified by the use of words such as we 'expect,' 'believe,' 'anticipate,' 'could,' 'should,' 'may,' 'plan,' 'will,' 'predict,' 'estimate,' and similar expressions or words of similar import. These forward-looking statements are based upon management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results, performance, or achievements to be materially different from any anticipated results, prospects, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: product purchased not meeting quality and quantity requirements; reliance on a few large customers; anticipated levels of demand for and supply of our products and services; tobacco growing conditions and customer requirements; major shifts in customer requirements for leaf tobacco; higher inflation rates, tariffs and other pressures on costs; weather and other conditions; exposure to certain legal, regulatory and financial risks related to climate change; industry-specific risks related to our plant-based ingredients businesses; disruption of our supply chain for our plant-based ingredients; success in pursuing strategic investments or acquisitions and integration of new businesses and the impact of these new businesses on future results; our ability to maintain effective information technology systems and safeguard confidential information; our inability to attract, develop, retain, motivate, and maintain good relationships with our workforce; our dependence on a seasonal workforce; epidemics, pandemics or similar widespread public health concerns; government efforts to regulate the production and consumption of tobacco products; government actions on the sourcing of leaf tobacco; economic and political conditions in the countries in which we and our customers operate, including the ongoing impacts from international conflicts; sustainability considerations from governments and other stakeholders; changes in tax laws in the countries where we do business; material weaknesses in our internal control over financial reporting; our inability to use a Form S-3 registration statement; failure of our customers or suppliers to repay extensions of credit; changes in exchange rates; changes in interest rates; and low investment performance by our defined benefit pension plan assets and changes in pension plan valuation assumptions. Please also refer to the risks and uncertainties as discussed in Part I, Item 1A. 'Risk Factors' of Universal's Annual Report on Form 10-K for the fiscal year ended March 31, 2025, and related disclosures in other filings that Universal files with the Securities and Exchange Commission (the "SEC") and are available on the SEC's website at All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. Universal cautions investors not to place undue reliance on any forward-looking statements as these statements speak only as of the date when made, and it undertakes no obligation to update any forward-looking statements made, except as required by law. See accompanying notes. Expand UNIVERSAL CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of dollars) June 30, June 30, March 31, 2025 2024 2025 (Unaudited) (Unaudited) ASSETS Current assets Cash and cash equivalents $ 178,435 $ 101,700 $ 260,115 Accounts receivable, net 424,157 435,941 625,876 Advances to suppliers, net 79,154 100,451 169,385 Accounts receivable—unconsolidated affiliates 127,701 60,991 7,143 Inventories—at lower of cost or net realizable value: Tobacco 1,219,769 1,202,341 806,332 Other 205,036 187,743 189,610 Prepaid income taxes 22,715 23,576 19,595 Other current assets 89,360 85,712 78,041 Total current assets 2,346,327 2,198,455 2,156,097 Property, plant and equipment Land 26,266 25,926 26,113 Buildings 337,290 326,988 333,398 Machinery and equipment 739,899 702,153 723,935 1,103,455 1,055,067 1,083,446 Less accumulated depreciation (728,180 ) (680,011 ) (710,472 ) 375,275 375,056 372,974 Other assets Operating lease right-of-use assets 38,428 30,582 34,260 Goodwill, net 213,864 213,810 213,840 Other intangibles, net 55,237 66,074 57,836 Investments in unconsolidated affiliates 87,988 75,531 79,317 Deferred income taxes 20,461 18,287 16,539 Pension asset 13,006 12,075 12,819 Other noncurrent assets 38,721 43,098 45,870 467,705 459,457 460,481 Total assets $ 3,189,307 $ 3,032,968 $ 2,989,552 Expand See accompanying notes. Expand UNIVERSAL CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of dollars) June 30, June 30, March 31, 2025 2024 2025 (Unaudited) (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Notes payable and overdrafts $ 621,275 $ 581,087 $ 455,039 Accounts payable 119,803 79,747 98,036 Accounts payable—unconsolidated affiliates 76 — 1,999 Customer advances and deposits 4,557 15,660 3,763 Accrued compensation 22,577 20,903 44,646 Income taxes payable 15,528 10,766 12,586 Current portion of operating lease liabilities 11,233 9,588 10,742 Accrued expenses and other current liabilities 147,639 128,305 123,350 Current portion of long-term debt — — — Total current liabilities 942,688 846,056 750,161 Long-term debt 618,057 617,502 617,918 Pensions and other postretirement benefits 36,307 43,386 35,336 Long-term operating lease liabilities 24,945 17,457 20,608 Other long-term liabilities 26,032 27,167 22,901 Deferred income taxes 41,689 37,901 42,090 Total liabilities 1,689,718 1,589,469 1,489,014 Shareholders' equity Universal Corporation: Preferred stock: Series A Junior Participating Preferred Stock, no par value, 500,000 shares authorized, none issued or outstanding — — — Common stock, no par value, 100,000,000 shares authorized 24,807,613 shares issued and outstanding at June 30, 2025 (24,675,988 at June 30, 2024 and 24,715,625 at March 31, 2025) 355,498 347,152 351,626 Retained earnings 1,174,758 1,153,026 1,186,981 Accumulated other comprehensive loss (71,339 ) (86,721 ) (80,051 ) Total Universal Corporation shareholders' equity 1,458,917 1,413,457 1,458,556 Noncontrolling interests in subsidiaries 40,672 30,042 41,982 Total shareholders' equity 1,499,589 1,443,499 1,500,538 Total liabilities and shareholders' equity $ 3,189,307 $ 3,032,968 $ 2,989,552 Expand See accompanying notes. Expand UNIVERSAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of dollars) Three Months Ended June 30, 2025 2024 (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 14,367 $ (2,824 ) Adjustments to reconcile net income (loss) to net cash used by operating activities: Depreciation and amortization 13,582 14,564 Net provision for losses (recoveries) on advances to suppliers 52 (751 ) Inventory writedowns 1,469 4,371 Stock-based compensation expense 7,575 4,641 Foreign currency remeasurement (gain) loss, net (2,362 ) 7,171 Foreign currency exchange contracts (6,162 ) (1,340 ) Deferred income taxes (3,259 ) (3,983 ) Equity in net loss (income) of unconsolidated affiliates, net of dividends (1,943 ) (154 ) Restructuring and impairment costs 1,122 — Restructuring payments (2,669 ) (253 ) Other, net (43 ) 644 Changes in operating assets and liabilities, net: (226,832 ) (84,530 ) Net cash used by operating activities (205,103 ) (62,444 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (12,053 ) (22,749 ) Proceeds from sale of property, plant and equipment 143 867 Net cash used by investing activities (11,910 ) (21,882 ) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of short-term debt, net 165,861 162,140 Dividends paid to noncontrolling interests (7,203 ) (8,330 ) Dividends paid on common stock (20,020 ) (19,659 ) Other (4,016 ) (3,397 ) Net cash provided by financing activities 134,622 130,754 Effect of exchange rate changes on cash, restricted cash and cash equivalents 711 (321 ) Net increase (decrease) in cash, restricted cash and cash equivalents (81,680 ) 46,107 Cash, restricted cash and cash equivalents at beginning of year 260,115 55,593 Cash, restricted cash and cash equivalents at end of period $ 178,435 $ 101,700 Expand See accompanying notes. Expand NOTE 1. BASIS OF PRESENTATION Universal Corporation, which together with its subsidiaries is referred to herein as 'Universal' or the 'Company,' is a global business-to-business agri-products supplier to consumer product manufacturers. The Company is the leading global leaf tobacco supplier and provides high-quality plant-based ingredients to food and beverage end markets. Because of the seasonal nature of the Company's business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025. The following table sets forth the computation of basic and diluted earnings per share: NOTE 3. SEGMENT INFORMATION Management regularly evaluates the Company's global business activities, including product and service offerings to its customers, as well as senior management's operational and financial responsibilities. Assessments include an analysis of how its Chief Operating Decision Maker ('CODM') measures business performance and allocates resources. As a result of this analysis, senior management has determined the Company conducts operations across two reportable operating segments, Tobacco Operations and Ingredients Operations. The Tobacco Operations segment activities involve contracting, procuring, processing, packing, storing, and shipping leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. Through various operating subsidiaries located in tobacco-growing countries around the world and significant ownership interests in unconsolidated affiliates, the Company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes, and dark air-cured tobaccos are used mainly in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. Some of these tobacco types are also used in the manufacture of next generation tobacco products that are intended to provide consumers with an alternative to traditional combustible products. The Tobacco Operations segment also provides physical and chemical product testing for tobacco customers. A substantial portion of the Company's Tobacco Operations' revenues are derived from sales to a limited number of large, multinational cigarette and cigar manufacturers. The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption. The Ingredients Operations segment utilizes a variety of value-added manufacturing processes converting raw materials into a wide spectrum of fruit and vegetable juices, concentrates, dehydrated products, botanical extracts, and flavorings. Customers for the Ingredients Operations segment include large multinational food and beverage companies, smaller independent manufacturers, and retail organizations. FruitSmart, Inc. ('FruitSmart'), Silva International, Inc. ('Silva'), and Shank's Extracts, LLC d/b/a Universal Ingredients–Shank's ('Universal Ingredients–Shank's') are the primary operations for the Ingredients Operations segment. FruitSmart supplies a broad set of juices, concentrates, pomaces, purees, fruit fibers, seeds, seed powders, and other value-added products to food, beverage, and flavor companies throughout the United States and internationally. Silva procures dehydrated vegetables, fruits, and herbs from around the world and specializes in processing natural materials into custom designed dehydrated vegetable and fruit-based ingredients for a variety of end products. Universal Ingredients–Shank's offers a diversified portfolio of botanical extracts, distillates, natural flavors, and color for industrial and private label customers worldwide, and is known for their significant vanilla expertise. Universal Ingredients–Shank's is also equipped to offer customers custom bottling and packaging for their products. Universal incurs corporate overhead expenses related to senior management, sales, finance, legal, and other functions that are centralized at its corporate headquarters, as well as functions performed at several sales and administrative offices around the world. These overhead expenses are currently allocated to the reportable operating segments, generally on the basis of projected annual financial and operational performance, including volumes planned to be purchased and/or processed. Management believes this method of allocation is currently representative of the value of the related services provided to the operating segments. The CODM, which has been identified as a group comprised of the Company's Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer, currently evaluates the performance of the operating segments based on operating income after allocated overhead expenses, plus equity in the pretax earnings of unconsolidated affiliates ('Segment Operating Income'). The CODM also uses Segment Operating Income for planning, forecasting, and allocating capital and other resources to the operating segments. Reportable segment data as of, or for, each period presented in the consolidated statements of income and comprehensive income, the consolidated balance sheets, and the consolidated statements of cash flows is as follows: (1) Equity in pretax earnings (loss) of unconsolidated affiliates is included in segment operating income (Tobacco Operations), but is reported below consolidated operating income and excluded from that total in the consolidated statements of income and comprehensive income. (2) Restructuring and impairment costs are excluded from segment operating income, but are included in consolidated operating income in the consolidated statements of income and comprehensive income. Expand
