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4 days ago
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- Business Wire
RCI Reports 3Q25 Results, Hosts X Spaces Call at 4:30 PM ET Today
HOUSTON--(BUSINESS WIRE)--RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2025 third quarter ended June 30, 2025. The Company also filed its Form 10-Q today. Summary Financials (in millions, except EPS) 3Q25 3Q24 9M25 9M24 Total revenues $71.1 $76.2 $208.5 $222.4 EPS $0.46 $(0.56) $1.84 $0.30 Non-GAAP EPS 1 $0.77 $1.35 $2.23 $3.11 Impairments and other charges, net $2.3 $18.3 $2.2 $26.5 Net cash provided by operating activities $13.8 $15.8 $35.7 $40.2 Free cash flow 1 $13.3 $13.8 $32.3 $35.3 Net income (loss) attributable to RCIHH common stockholders $4.1 $(5.2) $16.3 $2.8 Adjusted EBITDA 1 $15.3 $20.1 $45.2 $54.8 Weighted average shares used in computing EPS – basic and diluted 8.79 9.28 8.86 9.33 Expand 1 See 'Non-GAAP Financial Measures' below. 3Q25 Summary (Comparisons are to the year-ago period unless indicated otherwise) Eric Langan, President and CEO, said: "We continued to make solid progress with our Back to Basics 5-Year Capital Allocation Plan. Nightclubs revenues were nearly level despite tariff and tax bill related economic uncertainty. Bombshells revenues reflected the previously announced sale/divestiture of five underperformers, but increased sequentially from 2Q25. Consolidated profitability benefited from the absence of impairment charges, partially offset by other factors." Back to Basics 5-Year Capital Allocation Plan (FY25-29) 3Q25: Early April 2025 acquired Platinum West in West Columbia, SC, for $6.25 million for the club and $1.75 million for the real estate. 3Q25: Mid-June 2025 acquired Platinum Plus in Allentown, PA, for $2.0 million. 3Q25: Late June 2025 opened Rick's Cabaret and Steakhouse in Central City, CO. 3Q25: Repurchased 75,325 common shares for $3.0 million ($40.41 average per share), with 8,756,800 shares outstanding at June 30, 2025. 4Q25: Early July 2025 opened a Bombshells in Lubbock, TX. X Spaces Conference Call at 4:30 PM ET Today Hosted by RCI President and CEO Eric Langan, CFO Bradley Chhay, and Mark Moran of Equity Animal. Call link: (X log in required). Presentation link: To ask questions: Participants must join the X Space using a mobile device. To listen only: Participants can access the X Space from a computer. There will be no other types of telephone or webcast access. 3Q25 Results (Comparisons are to the year-ago period unless indicated otherwise) Nightclubs segment: Revenues of $62.3 million declined by 0.8%. Sales reflected a 3.7% decline in same-store sales and the absence of Baby Dolls Fort Worth due to fire in July 2024, mostly offset by $2.6 million from four new clubs acquired or opened in 2Q25 and 3Q25 and four rebranded/reformatted Texas clubs not in SSS. 2 By revenue type, food, merchandise and other increased 5.1%, service increased 0.3%, and alcoholic beverages declined 3.9%. Other net charges totaled $2.3 million, primarily reflecting lawsuit settlement expense and gain on insurance, compared to $7.7 million, primarily reflecting 3Q24 impairments. Operating income was $17.8 million (28.5% of segment revenues) compared to $13.6 million (21.7%). Results reflected the decline in other net charges and SSS, acquisitions not yet fully optimized, and Rick's Cabaret Central City pre-opening costs. Non-GAAP operating income, which excludes other net charges, was $20.7 million (33.2% of segment revenues) compared to $21.9 million (34.9%). Bombshells segment: Revenues of $8.6 million declined 34.5%. Sales reflected the sale/divestiture of five underperforming locations and a 13.5% decline in SSS, partially offset by two new locations not in SSS (Stafford, TX, and Denver, CO). 2 Operating income was $87,000 (1.0% of segment revenues) compared to a loss of $8.9 million (-67.8%), which included impairments of $10.3 million. Results reflected the decline in impairments, sales from open locations and Bombshells Lubbock pre-opening costs. Non-GAAP operating income, which excludes impairments, was $100,000 (1.2% of segment revenues) compared to $1.4 million (10.8%). Corporate segment: Expenses totaled $8.7 million (12.2% of total revenues) compared to $7.2 million (9.4%). Non-GAAP expenses totaled $8.3 million (11.7% of total revenues) compared to $6.4 million (8.4%). GAAP and non-GAAP expenses reflected the net addition of $1.7 million in estimated non-cash self-insurance actuarial reserves. Impairments and other charges, net within consolidated operations totaled $2.3 million compared to $18.3 million. 3Q25 primarily reflected $3.3 million lawsuit settlement expense, partially offset by a $1.1 million gain from an insurance payment related to the Baby Dolls Fort Worth fire. 3Q24 primarily reflected $17.9 million in impairments. Income tax was a $0.7 million expense compared to a $1.4 million benefit. Weighted average shares outstanding of 8.79 million declined 5.2% due to share buybacks. Debt was $241.3 million at June 30, 2025 compared to $241.5 million at March 31, 2025. Debt reflected scheduled pay downs, new acquisition related debt and construction financing for Bombshells Rowlett and Lubbock. 2 See our July 10, 2025 news release on 3Q25 sales for more details. Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the Company and helps management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows: Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income from operations and operating margin: (a) amortization of intangibles, (b) impairment of assets, (c) settlement of lawsuits, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, and (f) stock-based compensation. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations. Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share. We calculate non-GAAP net income and non-GAAP net income per diluted share by excluding or including certain items to net income or loss attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) impairment of assets, (c) settlement of lawsuits, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) stock-based compensation, (g) gains or losses on lease termination, and (h) the income tax effect of the above-described adjustments. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 17.4% and 11.7% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 2025, and 2024, respectively, and the GAAP income tax expense (benefit). We believe that excluding and including such items help management and investors better understand our operating activities. Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income or loss attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) impairment of assets, (c) income tax expense, (d) net interest expense, (e) settlement of lawsuits, (f) gains or losses on sale of businesses and assets, (g) gains or losses on insurance, (h) stock-based compensation, and (i) gains or losses on lease termination. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for our acquisitions of nightclubs. We also use certain non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy. About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @RCIHHinc) With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars-restaurants. See all our brands at Forward-Looking Statements This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, and (vi) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2024, as well as its other filings with the U.S. Securities and Exchange Commission. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 4,060 $ (5,220 ) $ 16,319 $ 2,773 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,892 3,901 11,237 11,638 Impairment of assets — 17,931 1,780 25,964 Deferred income tax benefit (958 ) (4,508 ) (2,200 ) (6,419 ) Loss (gain) on sale of businesses and assets 22 79 (1,226 ) 116 Amortization and writeoff of debt discount and issuance costs 130 150 420 462 Doubtful accounts expense on notes receivable 27 — 27 22 Gain on insurance (729 ) — (1,879 ) — Noncash lease expense 676 783 2,002 2,318 Stock-based compensation 392 471 980 1,412 Changes in operating assets and liabilities, net of business acquisitions: Receivables (443 ) 1,985 1,271 3,052 Inventories 26 (70 ) 90 (212 ) Prepaid expenses, other current, and other assets 930 2,936 400 (3,484 ) Accounts payable, accrued, and other liabilities 5,768 (2,674 ) 6,463 2,591 Net cash provided by operating activities 13,793 15,764 35,684 40,233 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of businesses and assets 1 1,950 1,086 1,950 Proceeds from insurance 743 — 1,893 — Proceeds from notes receivable 76 63 223 179 Payments for property and equipment and intangible assets (3,681 ) (6,417 ) (12,289 ) (19,219 ) Acquisition of businesses, net of cash acquired (7,000 ) — (13,000 ) — Net cash used in investing activities (9,861 ) (4,404 ) (22,087 ) (17,090 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from debt obligations 779 20,000 9,175 22,657 Payments on debt obligations (4,110 ) (6,507 ) (14,431 ) (17,137 ) Purchase of treasury stock (3,044 ) (9,173 ) (9,158 ) (12,775 ) Payment of dividends (614 ) (552 ) (1,856 ) (1,674 ) Payment of loan origination costs (9 ) (154 ) (80 ) (290 ) Net cash used in financing activities (6,998 ) 3,614 (16,350 ) (9,219 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (3,066 ) 14,974 (2,753 ) 13,924 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD 32,663 19,973 32,350 21,023 $ 29,597 $ 34,947 $ 29,597 $ 34,947 Expand RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2024 June 30, 2024 ASSETS Current assets Cash and cash equivalents $ 29,347 $ 32,350 $ 34,947 Receivables, net 4,606 5,832 7,057 Inventories 4,746 4,676 4,624 Prepaid expenses and other current assets 3,214 4,427 5,457 Assets held for sale 3,394 — — Total current assets 45,307 47,285 52,085 Property and equipment, net 282,246 280,075 283,834 Operating lease right-of-use assets, net 26,641 26,231 26,880 Notes receivable, net of current portion 3,939 4,174 4,228 Goodwill 70,236 61,911 61,911 Intangibles, net 166,942 163,461 170,709 Other assets 2,101 1,227 1,342 Total assets $ 597,412 $ 584,364 $ 600,989 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 5,406 $ 5,637 $ 5,519 Accrued liabilities 21,764 20,280 20,155 Current portion of debt obligations, net 18,623 18,871 28,889 Current portion of operating lease liabilities 3,249 3,290 3,161 Total current liabilities 49,042 48,078 57,724 Deferred tax liability, net 20,493 22,693 22,724 Debt, net of current portion and debt discount and issuance costs 222,638 219,326 216,511 Operating lease liabilities, net of current portion 28,171 30,759 32,779 Other long-term liabilities 7,765 398 318 Total liabilities 328,109 321,254 330,056 Commitments and contingencies Equity Preferred stock — — — Common stock 87 90 91 Additional paid-in capital 53,244 61,511 68,950 Retained earnings 216,216 201,759 202,143 Total RCIHH stockholders' equity 269,547 263,360 271,184 Noncontrolling interests (244 ) (250 ) (251 ) Total equity 269,303 263,110 270,933 Total liabilities and equity $ 597,412 $ 584,364 $ 600,989 Expand RCI HOSPITALITY HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (in thousands, except per share, number of shares, and percentage data) Three Months Ended Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Reconciliation of GAAP net income (loss) to Adjusted EBITDA Net income (loss) attributable to RCIHH common stockholders $ 4,058 $ (5,233 ) $ 16,313 $ 2,767 Income tax expense (benefit) 733 (1,426 ) 3,648 378 Interest expense, net 3,915 4,110 11,797 12,135 Depreciation and amortization 3,892 3,901 11,237 11,638 Impairment of assets — 17,931 1,780 25,964 Settlement of lawsuits 3,281 141 3,587 308 Loss (gain) on sale of businesses and assets 202 188 (984 ) 180 Gain on insurance (1,134 ) — (2,151 ) — Stock-based compensation 392 471 980 1,412 Gain on lease termination — — (979 ) — Adjusted EBITDA $ 15,339 $ 20,083 $ 45,228 $ 54,782 Reconciliation of GAAP net income (loss) to non-GAAP net income Net income (loss) attributable to RCIHH common stockholders $ 4,058 $ (5,233 ) $ 16,313 $ 2,767 Amortization of intangibles 576 598 1,733 1,897 Impairment of assets — 17,931 1,780 25,964 Settlement of lawsuits 3,281 141 3,587 308 Stock-based compensation 392 471 980 1,412 Loss (gain) on sale of businesses and assets 202 188 (984 ) 180 Gain on insurance (1,134 ) — (2,151 ) — Gain on lease termination — — (979 ) — Net income tax effect (562 ) (1,554 ) (515 ) (3,475 ) Non-GAAP net income $ 6,813 $ 12,542 $ 19,764 $ 29,053 Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share Diluted shares 8,793,809 9,278,921 8,859,028 9,332,249 GAAP diluted earnings (loss) per share $ 0.46 $ (0.56 ) $ 1.84 $ 0.30 Amortization of intangibles 0.07 0.06 0.20 0.20 Impairment of assets 0.00 1.93 0.20 2.78 Settlement of lawsuits 0.37 0.02 0.40 0.03 Stock-based compensation 0.04 0.05 0.11 0.15 Loss (gain) on sale of businesses and assets 0.02 0.02 (0.11 ) 0.02 Gain on insurance (0.13 ) 0.00 (0.24 ) 0.00 Gain on lease termination 0.00 0.00 (0.11 ) 0.00 Net income tax effect (0.06 ) (0.17 ) (0.06 ) (0.37 ) Non-GAAP diluted earnings per share $ 0.77 $ 1.35 $ 2.23 $ 3.11 Three Months Ended Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Reconciliation of GAAP operating income (loss) to non-GAAP operating income Income (loss) from operations $ 8,713 $ (2,536 ) $ 30,790 $ 15,286 Amortization of intangibles 576 598 1,733 1,897 Impairment of assets — 17,931 1,780 25,964 Settlement of lawsuits 3,281 141 3,587 308 Stock-based compensation 392 471 980 1,412 Loss (gain) on sale of businesses and assets 202 188 (984 ) 180 Gain on insurance (1,134 ) — (2,151 ) — Non-GAAP operating income $ 12,030 $ 16,793 $ 35,735 $ 45,047 Reconciliation of GAAP operating margin to non-GAAP operating margin GAAP operating margin 12.2 % (3.3 )% 14.8 % 6.9 % Amortization of intangibles 0.8 % 0.8 % 0.8 % 0.9 % Impairment of assets 0.0 % 23.5 % 0.9 % 11.7 % Settlement of lawsuits 4.6 % 0.2 % 1.7 % 0.1 % Stock-based compensation 0.6 % 0.6 % 0.5 % 0.6 % Loss (gain) on sale of businesses and assets 0.3 % 0.2 % (0.5 )% 0.1 % Gain on insurance (1.6 )% 0.0 % (1.0 )% 0.0 % Non-GAAP operating margin 16.9 % 22.0 % 17.1 % 20.3 % Reconciliation of net cash provided by operating activities to free cash flow Net cash provided by operating activities $ 13,793 $ 15,764 $ 35,684 $ 40,233 Less: Maintenance capital expenditures 454 1,986 3,341 4,980 Free cash flow $ 13,339 $ 13,778 $ 32,343 $ 35,253 Expand RCI HOSPITALITY HOLDINGS, INC. ($ in thousands) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 17,761 $ 87 $ (441 ) $ (8,694 ) $ 8,713 $ 13,640 $ (8,914 ) $ (108 ) $ (7,154 ) $ (2,536 ) Amortization of intangibles 572 1 — 3 576 578 16 — 4 598 Impairment of assets — — — — — 7,619 10,312 — — 17,931 Settlement of lawsuits 3,281 — — — 3,281 141 — — — 141 Stock-based compensation — — — 392 392 — — — 471 471 Loss (gain) on sale of businesses and assets 191 12 — (1 ) 202 (76 ) 6 — 258 188 Gain on insurance (1,134 ) — — — (1,134 ) — — — — — Non-GAAP operating income (loss) $ 20,671 $ 100 $ (441 ) $ (8,300 ) $ 12,030 $ 21,902 $ 1,420 $ (108 ) $ (6,421 ) $ 16,793 GAAP operating margin 28.5 % 1.0 % (220.5 )% (12.2 )% 12.2 % 21.7 % (67.8 )% (49.5 )% (9.4 )% (3.3 )% Non-GAAP operating margin 33.2 % 1.2 % (220.5 )% (11.7 )% 16.9 % 34.9 % 10.8 % (49.5 )% (8.4 )% 22.0 % Nine Months Ended June 30, 2025 Nine Months Ended June 30, 2024 Nightclubs Bombshells Other Corporate Total Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 53,246 $ 1,831 $ (1,292 ) $ (22,995 ) $ 30,790 $ 45,030 $ (8,129 ) $ (581 ) $ (21,034 ) $ 15,286 Amortization of intangibles 1,718 3 — 12 1,733 1,758 126 — 13 1,897 Impairment of assets 1,780 — — — 1,780 15,652 10,312 — — 25,964 Settlement of lawsuits 3,557 30 — — 3,587 308 — — — 308 Stock-based compensation — — — 980 980 — — — 1,412 1,412 Loss (gain) on sale of businesses and assets 300 (1,189 ) — (95 ) (984 ) (70 ) 10 — 240 180 Gain on insurance (2,151 ) — — — (2,151 ) — — — — — Non-GAAP operating income (loss) $ 58,450 $ 675 $ (1,292 ) $ (22,098 ) $ 35,735 $ 62,678 $ 2,319 $ (581 ) $ (19,369 ) $ 45,047 GAAP operating margin 29.3 % 6.9 % (270.3 )% (11.0 )% 14.8 % 24.6 % (21.0 )% (116.0 )% (9.5 )% 6.9 % Non-GAAP operating margin 32.2 % 2.6 % (270.3 )% (10.6 )% 17.1 % 34.2 % 6.0 % (116.0 )% (8.7 )% 20.3 % Expand
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31-07-2025
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Veolia Environnement: H1 2025 Results
Strong Growth in First Half Results Continuation of Dynamic Capital Allocation Policy With €2.2BN of Net Investments in Boosters 2025 and Greenup Objectives Fully Confirmed Solid H1 2025, in line with our annual guidance Sustained Revenue growth, in line with first quarter, of +3.8%(1) to €22,048M Solid operating performance, with an organic growth of EBITDA of +5.5%(2) to €3,367M, fueled by revenue growth, operational efficiency and synergies in line with targets Current net income(3) - Group share of €762M, up +4.3%(4) and +12.5%(4) excluding 2024 net financial capital gains (o/w Sade) Dynamic capital allocation policy creating value, with €2.2bn of net financial investments, including notably acquisitions in Water Technologies and Hazardous Waste in the second quarter Leading to Net financial debt(3) well under control at €20,764M and a leverage ratio of 3.0x, in line with our trajectory 2025 guidance and GreenUp plan fully confirmed PARIS, July 31, 2025--(BUSINESS WIRE)--Regulatory News: Veolia Environnement (PARIS:VIE): Estelle Brachlianoff, CEO of the Group, stated: "The excellent results recorded in the first half confirm the relevance of the GreenUp plan's growth priorities. In an uncertain economic and geopolitical context, the challenges related to health, resilience, competitiveness, and sovereignty are all the more crucial and confirm the sustained demand for our services. Thus, in the first half of the year, our booster(5) activities were up almost +9%(6), and we registered €2bn bookings in water technologies. "Our unique ability to demonstrate agility in a constantly evolving environment enables us to maximize value creation for our stakeholders by combining resilience and growth. The EBITDA growth of +5.5%(2) in the first half, in line with our expectations, thus reflects our operational excellence. "This growth is supported by a dynamic and successful capital allocation policy, with €2.2bn invested in the first half, including the buyout of CDPQ's 30% stake in Water Technologies Services, giving us full ownership and enabling us to accelerate value creation, as well as nearly 300 million euros in targeted acquisitions in hazardous waste treatment in the United States, Brazil, and Japan. "The strong performance in the first half of 2025 makes us fully confident in achieving our objectives for the year." (1) At constant scope and forex and excluding energy prices(2) At constant scope and forex(3) Before Suez PPA(4) At constant forex(5) Boosters: water technologies, hazardous waste, bioenergies, flexibility and energy efficiency(6) At constant scope and forex and excluding energy prices, including our new hazardous waste and flexibility assets __________________________ Sustained Revenue growth of +3.8%(1) to €22,048M: Strong growth in Water (+3.4%(2)) and Waste (+2.4%(2)). Revenue increase in Energy (+5.5%(1)) while maintaining a very high level of profitability Including the impact of lower energy prices, total Group Revenue is up by +2.0%(2) Solid Operational Performance: EBITDA of €3,367M, an organic growth of +5.5%(2), in the target range of +5% to +6%(2), and margin increase of +50bps: €191M of efficiency gains, in line with the annual target of €350M €47M of synergies, i.e. a cumulative amount of €482M at the end of June 2025, in line with revised target of €530M by the end of 2025 Current EBIT(3) up +8.1 %(2), to €1,834M. Current net income Group share of €762M(3), up +4.3 %(4) and up +12.5%(4) excluding 2024 net financial capital gains (Sade notably). Annual target of c.+9%(4) growth fully confirmed. Net income Group share of €657M. Dynamic capital allocation policy leading to value creation with €2.2bn net financial investments in the first half, incl. notably closing in Q2 of: Acquisition of CDPQ 30% minority interests in WTS for €1.5bn, unlocking €90M of additional cost synergies by 2027, and reinforcing our financial ambitions in Water technologies Acquisition of 5 Hazardous Waste assets for €0.3bn, in the US, Brazil and Japan Net financial debt(3) under control at €20,764M, with year-end leverage ratio expected below 3x. 2025 guidance and GreenUp Plan 2024-27 fully confirmed. __________________________ Key figures H1 2025 In €M H1 2024 H1 2025 Variation Revenue 22,141 22,048 +2.0% at constant scope and forex +3.8% and excluding energy prices EBITDA 3,266 3,367 +5.5% at constant scope and forex EBITDA margin 14.8% 15.3% +50bps Current EBIT(3) 1,730 1,834 +8.1% at constant scope and forex Current net income group share(3) 731 762 +4.3% at constant forex(5) Net income group share 651 657 +0.9%(6) Net capex 1,722 1,747 Net Financial Debt(3) 19,891 20,764 __________________________ Detailed results at 30 June 2025 Group consolidated revenue amounted to 22,048 million euros at June 30, 2025. It increased by +2.0% on a like-for-like basis, and by +3.8% excluding the impact of energy prices, which mainly affected Europe excluding France. Revenue growth by effect breaks down as follows: The currency effect was -196 million euros (-0.9%), mainly reflecting depreciation of Argentinian, Australian, US and Brazilian currencies, partially offset by improvement in Polish and UK currencies(7). The perimeter effect of -334 million euros (-1.5%) mainly includes the impact of the disposals of SADE (France and Special Waste Europe) on February 29, 2024, of RGS (North America) on August 1st, 2024 and of Lydec on September 4th, 2024, partly offset by the acquisition of power flexibility assets in Hungary on January 6th, 2025. The commodity price effect (corresponding to changes in energy and recyclate prices) amounted to -369 million euros (-1.7%), due to lower energy prices (-395 million euros), mainly in Central and Eastern Europe, slightly attenuated by the positive effect of recyclate prices (+26 million euros). The climate effect amounted to +169 million euros (+0.8%), mainly in Central and Eastern Europe, due to a colder winter this beginning of the year compared to 2024. The Commerce / Volumes / Works effect amounted to +315 million euros (+1.4%), driven by good commercial momentum, healthy water volumes and resilient waste volumes, as well as construction work progress. Favorable price effects amounted to +320 million euros (+1.4%), mainly due to tariff indexations and price increases in water and waste activities. __________________________ The organic growth of revenues by operating segments was as follows: In €M H1 2024 H1 2025 Variationat constant scope and forex France and Special Waste Europe 4,531 4,371 +0.1% Europe excluding France 9,252 9,733 +1.6%/+5.6% excluding energy prices Rest of the world 5,956 5,533 +3.7% Water Technologies 2,398 2,409 +2.8% TOTAL 22,141 22,048 +2.0%/+3.8% excluding energy prices Revenues in France and Special Waste Europe amounted to 4,371 million euros and showed organic growth of +0.1% compared to June 30, 2024. Water France sales of 1,507 million euros were up +1.6% on a like-for-like basis, mainly fueled by business development following contract awards. Sales of Waste France amounted to 1,411 million euros. It decreased by -4.8% on a like-for-like basis due to lower landfill volumes and a decrease in electrical turnover, partially offset by favorable price effect. Special Waste Europe sales reached 1 187 million euros, up +5.8% on a like-for-like basis. This performance was mainly driven by the tariff revaluation in the hazardous waste treatment segment, as well as by the favorable dynamics of storage and incineration activities. Revenues in Europe excluding France reached 9,733 million euros at June 30, 2025, an organic variation of +1.6%, due to lower energy prices than in 2024. Excluding the effect of energy prices, revenues rose by +5.6%. In Central and Eastern Europe, sales stood at 5,642 million euros, slightly down -0.8% on a like-for-like basis. This evolution mainly reflected the impact of lower energy prices, partially offset by a favorable climate effect in the first half. Waste activity in Germany maintained its positive momentum, driven by the favorable evolution of recycled materials prices. In Northern Europe, revenues of 2,154 million euros rose by +1.9% on a like-for-like basis. This increase was attributable to good performance in Belux and in the United Kingdom, in the Energy and Waste activities, which benefited from tariff indexation and from excellent incineration plant availability. In Iberia, sales stood at 1,435 million euros, up +9.1% on a like-for-like basis. This positive trend was mainly explained by the strong performance of the Water activities, which benefited from a dual improvement: a favorable revision of tariffs and an increase in consumption. Energy activities also contributed to this growth thanks to the gain of new contracts and the completion of project works. Italy generated revenues of 502 million euros, up +7.3% on a like-for-like basis, mainly due to lower energy prices, relying particularly on a strong commercial activity in Energy. Revenues in the Rest of the world reached 5,533 million euros, an organic growth of +3.7%, up in all geographies. Latin America Revenue stood at 948 million euros in, up +10.5% on a like-for-like basis. This growth was driven by the good performances of Colombia, Brazil and Argentina. In Africa Middle-East, revenues totaled 847 million euros, up +4.8% on a like-for-like basis, thanks to the solid performance in Morocco and the development of energy services in the Middle East. In North America, revenues reached 1,535 million euros, up +2.6% on a like-for-like basis. This evolution was mainly driven by the Hazardous Waste activity, supported by a good commercial momentum with price increases, as well as the Regulated Water activity with favorable price increases. Sales in Asia amounted to 1,208 million euros, up +1.0% on a like-for-like basis. This growth was driven by performance in Japan's municipal Water, strong activity in Hong Kong thanks to landfill operations, as well as promising developments in Taiwan, particularly related to the modernization of incineration facilities. In the Pacific region, sales amounted to 995 million euros, up +0.9% on a like-for-like basis. This progress was mainly driven by Water activity thanks to increased volumes, projects and favorable contract renegotiations, while Waste activity remained stable. The Water Technologies activity reported sales of 2,409 million euros, up +2.8% on a like-for-like basis versus 2024. This change is mainly explained by the rebound in activity in Q2 of 2025, thanks to strong commercial performance, after a stable Q1 due to high comparison basis. __________________________ The organic growth of revenues by business was as follows: In €M H1 2024 H1 2025 Variationat constant scope and forex Water 8,798 8,545 +3.4% Municipal Water 6,400 6,135 +3.6% Water Technologies 2,398 2,409 +2.8% Waste 7,728 7,672 +2.4% Solid Waste 5,579 5,597 +1.5% Hazardous Waste 2,149 2,075 +4.9% Energy 5,615 5,831 -0.9%/+5.5% excluding energy prices District Heating and Cooling Networks 3,904 3,770 -4.0%/+5.1% excluding energy prices Bioenergies, Flexibility and Energy Efficiency 1,711 2,061 +6.2%/+6.6% excluding energy prices TOTAL 22,141 22,048 +2.0%/+3.8% excluding energy prices Sales in the Water activity rose by +3.4% on a like-for-like basis, driven by price increases of +2.0%, volume growth and good commercial momentum of +1.4%. Sales of stronghold Municipal Water grew by +3.6% on a like-for-like basis, with tariff increases in most geographies (particularly in Spain, Central and Eastern Europe and North America) and a favorable commercial effect. Sales in the Water Technology and New Solutions booster business were up +2.8% on a like-for-like basis. Sales for Waste activity revenues increased by +2.4 % on a like-for-like basis, thanks to favorable price revisions (+2.1%), slightly higher recyclate prices (+0.3%) and a positive Commerce/Volume/Works effect (+0.4%). Sales in the stronghold Solid Waste Management core business were up +1.5% on a like-for-like basis. This growth was mainly driven by a positive commercial momentum in Germany and in Asia, notably in Hong Kong. The activity also benefited from favorable price revisions, particularly in the UK and Australia. Sales by the Hazardous Waste treatment booster rose by +4.9% on a like-for-like basis, driven mainly by France and Special Waste Europe and North America. Energy sales were down -0.9% on a like-for-like basis, but up +5.5% excluding the impact of energy prices. The unfavorable energy price effect of -6.4% was partially offset by a favorable climate impact of +3.0% and by the commerce/volume effect of +2.8%. Sales in the stronghold District Heating and Cooling Networks, mainly located in Central and Eastern Europe, rose by +5.1% on a like-for-like basis after eliminating the impact of energy prices. This growth was driven by good volumes combined with a favorable climate effect. Revenue of the Bioenergies, Flexibility and Energy Efficiency booster business grew by +6.6% on a like-for-like basis, excluding the impact of energy prices, thanks to strong sales momentum in Italy, Hungary, Spain, Belgium and the Middle East. __________________________ EBITDA growth to €3,367M compared with €3,266M at June 30, 2025, i.e. +5.5% organic growth EBITDA benefited from organic revenue growth of +3.8% excluding energy prices, from operational efficiency (191 million euros of gains generated), and from Suez synergies (47 million euros). The currency impact on EBITDA amounted to -24 million euros (-0.7%). This mainly reflects the depreciation of Australian, Argentinian, Chilean, Australian, US and Brazilian currencies, partially offset by improvement in Polish and UK currencies(8). The perimeter impact of -53 million euros (-1.6 %) mainly includes the impact of the disposals of SADE on February 29, 2024, of RGS (North America) on August 1st, 2024 and of Lydec on September 4th, 2024, partly offset by the acquisition of power flexibility assets in Hungary on January 6th, 2025. Changes in commodity prices (energy and recycled materials) had a net unfavorable impact on EBITDA of -19 million euros (-0.6%), mainly due to lower energy prices (-32 million euros), partially offset by an increase in recycled materials prices. The climate impact was +31 million euros (+1.0%), mainly in Central and Eastern Europe, due to a colder winter in the first half of 2025. The Commerce/Volumes/Works effect was favorable at +46 million euros (+1.4%). Efficiency net of gains shared with customers, contract renegotiations and time lag effects on the passing on of costs generated 74 million euros (+2.3%) in additional EBITDA. This represents a retention rate of 39% out of 191 million euros generated by the Group as part of its efficiency plan in the first half of 2025, in line with the annual target of 350 million euros. Synergies generated by the integration of Suez amounted to 47 million euros in the first half of 2025, thanks in particular to optimization in purchasing and in the Water technologies activities. These new synergies, together with those already realized in 2022 to 2024, amounted to 482 million euros. This performance is perfectly in line with the objective of cumulated synergies raised to 530 million euros by the end of 2025. It is worth noting that these synergies do not include those related to WTS minority buy-back, which are expected to start in the second half of 2025. __________________________ The organic EBITDA growth by operating segments was as follows: In €M H1 2024 H1 2025 Variationat constant scope and forex France and Special Waste Europe 657 653 -0.2% Europe excluding France 1,361 1,457 +4.1% Rest of the world 926 894 +8.3% Water Technologies 279 299 +9.0% TOTAL inc. others 3,266 3,367 +5.5% __________________________ Current EBIT(9) growth of +8.1% at €1,834M, at constant scope and forex The increase in current EBIT(8) compared with June 30, 2024 at constant scope and forex amounted to +139 million euros (+8.1%), and was mainly due to: a strong growth in EBITDA (+179 million euros at constant scope and forex); a rise in amortization(8), including the repayment of operating financial assets (-26 millions euros on a like-for-like basis); a slight decrease of "provisions net of capital gains on disposals, and others" (-3 million euros at constant scope and forex). The currency effect on current EBIT(8) was negative by -13 million euros, mainly due to depreciation of Argentinian peso (-5 million euros), Chilean peso (-4 million euros), US dollar (-3 million euros) and Australian dollar (-3 million euros). __________________________ Current net income group share(8) reached €762M June 30th, 2025, up +4.3% at constant forex and +12.5% at constant forex, excluding 2024 net financial capital gains. Financial result was -485 million euros at June 30, 2025, up -31 million euros vs June 30, 2024. It includes the cost of net financial debt, stable at -330 million euros. Excluding IFRS 16 impact, the Group's borrowing rate was 3.79% at June 30, 2025, compared with 3.83% at June 30, 2024. Other financial income and expenses amounted to -151 million euros, compared with -177 million euros at June 30, 2024, thanks to favorable forex impacts. Gains and losses on financial disposals amounted to -4 million euros, compared with +53 million euros at June 30, 2024. In 2024, it mainly included the gain on the disposal of the SADE group in February 2024. Current taxes totaled -341 million euros at June 30, 2025, compared with -321 million euros at June 30, 2024. The current tax rate was 26.2%, same as in the first half of 2024. Minority interests amounted to -246 million euros vs. -223 million euros at June 30, 2024. They followed variation in net result of Group activities, in particular in Central and Eastern Europe and in Spain. __________________________ Net income group share was €657M. __________________________ Net Financial debt(9) at €20,764M at June 30th, 2025. Net financial debt(9) stood at 20,764 million euros, compared with 17,819 million euros at December 31st, 2024. Compared with December 31st, 2024, the change in net financial debt is mainly due to: Net Free cash-flow at -451 million euros. The change in net free cash flow is explained by: The increase in EBITDA, of +101 million euros, driven by organic growth and the gains generated by the operational and commercial efficiency plans, as well as by synergies; Net capital expenditure of -1,747 million euros, up -25 million euros compared with June 30, 2024 (+2.2% at current exchange rates). These include the decarbonization projects currently under way in Central and Eastern Europe, as well as investments in hazardous waste projects and PFAS; The -1,171 million euros change in operating working capital. Financial investments net of disposals of -2,150 million euros following significant acquisitions in the first half, including the purchase of WTS minority interests in June 2025, investments in Hazardous Waste projects in the US, Brazil and Japan in May and June 2025, as well as the acquisition of power flexibility asset in Hungary in January 2025; Issuance of the first green hybrid bond for a net amount of 497 million euros; The payment of dividends approved by the Combined General Meeting of 24 April 2025 for an amount of -1,023 million euros. Net financial debt(10) was also impacted by a favorable exchange rate effect and changes in fair value adjustment of +399 million euros at June 30, 2025. __________________________ Guidance 2025 fully confirmed Solid organic growth of revenue(1) (2) Organic growth(1) of EBITDA between +5% and +6% Efficiency gains above €350M complemented by synergies for a cumulated amount raised to €530M end 2025 Growth of current net income Group share(3) of around +9%(4) Leverage ratio expected below 3x(3) Dividend growth in line with Current EPS Group share(3) growth (1) At constant scope and forex / (2) Excluding energy prices / (3) Before Suez PPA / (4) At constant forex GreenUp 2024-2027 targets fully confirmed Solid revenue growth(1) Over €8bn of EBITDA in 2027 €350M savings per year ~ 10%(2) annual growth in current net income Group share(3) over 2023-2027 Leverage ratio ≤ 3x(3) Dividend growth in line with current EPS Group share(3) (1) Excluding energy prices / (2) At constant forex / (3) Before Suez PPA __________________________ Agenda 6 November 2025: 9M 2025 Key figures 25 November 2025: Energy - Inauguration of Poznan cogeneration facility in Poland 26 February 2026: FY 2025 Results Spring 2026: Presentation on Innovation, Technologies and AI __________________________ This press release presents the results for the first half of 2025. The consolidated financial statements and the operating and financial review, as approved by the Board of Directors, in its meeting held on 30 July 2025, are available on Veolia's website at __________________________ ABOUT VEOLIA Veolia group aims to become the benchmark company for ecological transformation. Present on five continents with 215,000 employees, the Group designs and deploys useful, practical solutions for the management of water, waste and energy that are contributing to a radical turnaround of the current situation. Through its three complementary activities, Veolia helps to develop access to resources, to preserve available resources and to renew them. In 2024, the Veolia group provided 111 million inhabitants with drinking water and 98 million with sanitation, produced 42 million megawatt hours of energy and treated 65 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated revenue of 44.7 billion euros in 2024. __________________________ IMPORTANT DISCLAIMER Veolia Environnement is a corporation listed on the Euronext Paris. This press release contains "forward-looking statements'' within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to: the risk of suffering reduced profits or losses as a result of intense competition, the risk that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that governmental authorities could terminate or modify some of Veolia Environnement's contracts, the risk that acquisitions may not provide the benefits that Veolia Environnement hopes to achieve, the risks related to customary provisions of divestiture transactions, the risk that Veolia Environnement's compliance with environmental laws may become more costly in the future, the risk that currency exchange rate fluctuations may negatively affect Veolia Environnement's financial results and the price of its shares, the risk that Veolia Environnement may incur environmental liability in connection with its past, present and future operations, as well as the other risks described in the documents Veolia Environnement has filed with the Autorité des Marchés Financiers (French securities regulator). Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain from Veolia Environnement a free copy of documents it filed ( with the Autorités des marchés financiers. This document contains "non‐GAAP financial measures". These "non‐GAAP financial measures" might be defined differently from similar financial measures made public by other groups and should not replace GAAP financial measures prepared pursuant to IFRS standards. __________________________ 1 At constant scope and forex and excluding energy prices2 At constant scope and forex3 Before Suez PPA4 At constant forex5 12.5% at constant forex excluding 2024 net financial capital gains6 9.8% excluding 2024 net financial capital gains7 Main currency impacts: Argentinian peso (-55 million euros), Australian dollar (-50 million euros), US dollar (-28 million euros) and Brazilian real (-27 million euros), partially offset by Polish zloty (+31 million euros) and British pound (+22 million euros).8 Main currency impacts: Australian dollar (-6 million euros), Argentinian peso (-6 million euros), Chilean peso (-5 million euros), US dollar (-5 million euros) and Brazilian real (-4 million euros), partially offset by Polish zloty (+5 million euros) and British pound (+3 million euros).9 Before Suez PPA10 Before Suez PPA View source version on Contacts MEDIA RELATION Laurent Obadia - Evgeniya Mazalova Charline Bouchereau - Anna Beaubatie Aurélien Sarrosquy Tel.+ 33 (0) 1 85 57 86 INVESTORS RELATIONS Selma Bekhechi - Ariane de Lamaze Tel. + 33 (0) 1 85 57 84 76 / 84 80investor-relations@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
25-07-2025
- Business
- Forbes
How AI Can Be A Force Multiplier For Limited Partner Investors
Hank Boughner is the CEO of Dynamo Software, an end-to-end cloud platform for the alternatives investing ecosystem. Capital allocation has always been a high-stakes endeavor. But in today's environment, several market realities are forcing a reckoning for limited partner (LP) investors: outdated processes have become a risk of their own. A rapidly expanding investment landscape, shifting economic dynamics and soaring talent costs are pushing endowments, pensions and family offices to modernize so they can do more with less. Some of the modernization forces LPs are exploring include restructuring teams, evolving capital deployment strategies and streamlining operational workflows. But even as early efforts are having an impact, many LPs are seeking faster return on investment (ROI) and higher multiples on invested capital (MOICs). In essence, they're searching for a force multiplier to accelerate modernization, and AI has the potential to be that force multiplier. The Hunt For A Force Multiplier Ends With AI Most LPs feel their tech stack urgently needs a boost. A 2024 private markets survey by my company, Dynamo Software, in partnership with Northfield Information Services, revealed that 57% of LPs planned to increase their technology budgets over the next 12 months, up 8 points from the previous year. The report surveyed more than 100 global LPs and asset allocators between July and August of last year, 80% of whom were located in the U.S. and Canada. The top two tech priorities cited by LP respondents tell an interesting story. 'Creating efficiencies and optimizing workflows' ranked first, followed by 'empowering teams to leverage technology.' Apparently, LPs aren't focused solely on operational improvements. They also see tech as a valuable partner to their people. This is among the greatest strengths of AI—augmenting human capabilities. Indeed, a core benefit of AI is surfacing insights that account for many more variables than humans ever could. This is a crucial capability for LPs, who are inundated with high volumes of financial reports and market data. Every deal generates vast amounts of unstructured data from diverse sources and formats, flooding inboxes with can't-miss information. While Outlook, Excel and PowerPoint have been powerful organizers, they require manual effort that simply can't keep up with today's private markets. Another key dynamic for LPs is the human cost of manual processes. Jeff Bezos famously believes people in high-pressure jobs need to carve out time for critical thinking. Transformative thinking requires protected time, which can be next to impossible when talent is buried in low-value, brain-draining work. AI—and the automation it enables—unlocks the value of those hours. How AI Is Already Delivering Results The good news is that AI adoption in private markets is well underway, and its impact is rapidly becoming visible among early adopters. AI and automation are transforming workflows in meaningful ways. With the assistance of these technologies, LPs can reposition their internal efforts toward value-added activities. Among the results is improved alpha. In a separate survey of 100 LPs and general partner (GP) participants that took place between August and September of last year, 47% of those using AI reported improved portfolio performance. Beyond a performance optimizer, LPs are also considering AI as an enabler of beating others to a deal. By widening the gap between users and non-users, AI helps LPs capture top-tier deals sooner and deploy capital faster. Improving Processes Where LPs Need It Most Crucial to realizing measurable success with AI is deploying it in places where LPs need it most. For now, there are plenty of low-hanging fruit tasks to tackle, including email logging, data gathering and spreadsheet management. Two forms of AI in particular, machine learning (ML) and large language models (LLMs), are well-suited to streamlining tasks without losing nuance and context. ML is effective at using pattern recognition for managing rule-based tasks. Over decades of iteration, the technology has become superior at probability-driven analysis, using statistical frameworks to do things like capturing key details from an email and adding them to just the right spot in a customer relationship management (CRM) platform. For their part, LLMs are great at extracting information from unstructured documents, like PDFs, and importing the information into databases. Once data is in a structured format, teams are empowered with expanded functionality and opportunities for analysis. New LP use cases for AI are developing daily, as private-market players are only getting started with the technology. The private markets survey revealed that 60% of LPs and GPs are just beginning to explore AI. That said, a growing number of firms are building on early AI deployments. Twenty percent have incorporated AI into some of their standard processes, and 7% are using AI extensively. Best Practices For Implementing AI In The Investment Process Integrating AI is not always simple, but the need for the automation it enables is undeniable. For the third year in a row, automating manual processes was named as a top challenge for the LPs who participated in a Dynamo Software survey. Based on my experience walking alongside LPs enhancing their tech stacks with AI and automation, I've observed several best practices: • Create a data automation/AI team that meets regularly. AI is developing rapidly, and frequent team meetings ensure that technology ROI is being evaluated in real time. Discussion of quick wins (singles and doubles are a great place to start) is critical. • Use APIs to bridge cross-system gaps. LPs enhance data analysis by adding API-capable platforms, mapping their tech stack and addressing high-friction handoffs. This allows vendors to recommend integrations and configure endpoints aligned with workflows. • Prioritize security. Automated workflows can pose cybersecurity risks, especially when sensitive data is at play. Partnering with trusted vendors ensures safer data collection, analysis and sharing. Properly managing data deletion, particularly personally identifiable information (PII), is critical. • Focus on change management. Investment teams often resist change. Applying change management principles, like gaining early buy-in, offering dedicated support and providing proper training, can turn hesitation into enthusiasm and drive successful transformation. A Call To Adapt And Lead Success in today's private markets requires smart, talented people making fast, but informed, investment decisions. AI and automation are redefining the playbook, accelerating insights with streamlined data and operational workflows. For those ready to adapt and who understand how to do so effectively, the rewards can be significant. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
National Post
15-07-2025
- Business
- National Post
Newmont Announces Monetization of Equity Received Through Successful Divestiture Program
Article content Expected to Generate ~$470 million in Net Proceeds, Reflecting Strong Equity Appreciation Article content Newmont Remains on Track to Deliver on its 2025 Guidance and Capital Allocation Priorities Article content Article content DENVER — Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) ('Newmont' or the 'Company') is pleased to announce that it has executed agreements for the sale of shares in Greatland Resources Limited ('Greatland') and Discovery Silver Corp ('Discovery') for aggregate cash consideration of approximately $470 million, net of taxes and commissions. Article content In February 2024, Newmont announced its intent to divest certain high-quality non-core assets, building an unparalleled portfolio of world class gold and copper operations and projects. The monetization of the Greatland and Discovery shares further streamlines Newmont's equity portfolio, while generating cash for the business. Article content Newmont remains on track to deliver on its 2025 guidance, while continuing to generate strong free cash flow from the Company's world class portfolio of high-quality, long-life assets. With today's announcement, Newmont now expects to generate $3.0 billion in after-tax cash proceeds from its divestiture program in 2025 to support Newmont's capital allocation priorities, which include strengthening our balance sheet and returning capital to shareholders. Article content Sale of Greatland Shares Article content Working in conjunction with Greatland, Newmont agreed to divest half of its shares in June 2025. The Greatland shares sold were received as part of the consideration for the divestment of the Telfer operation and Newmont's 70% interest in the Havieron gold-copper project to Greatland in 2024 (the 'Telfer-Havieron Transaction'). The sale reflects an approximately 230% return relative to the value announced at the time of the Telfer-Havieron Transaction. Following the sale of the shares, Newmont's remaining equity stake in Greatland is approximately 9.9%. Article content Sale of Discovery Shares Article content Working in conjunction with Discovery, Newmont agreed to divest 100% of its shares in May 2025 and July 2025. The Discovery shares sold were received as part of the consideration for the divestment of the Porcupine mine to Discovery in 2025 (the 'Porcupine Transaction'). The sales reflect an approximately 200% return relative to the value announced at the time of the Porcupine Transaction. To facilitate the sales, Discovery agreed to waive certain provisions of the Investor Rights Agreement entered into between the parties with respect to the Porcupine Transaction. Following the settlement of the July 2025 sales 1, Newmont will not be a shareholder of Discovery. Article content About Newmont Article content Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The Company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925. Article content At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont's sustainability strategy and initiatives, go to Article content Cautionary Statement Regarding Forward-Looking Statements Article content This news release contains '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, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward-looking statements in this news release include, without limitation, expectations regarding divestment of non-core asset and completion of the most recent July agreements for the sale of Discovery shares, including expectations regarding net proceeds. Such statements remain subject to risk and uncertainties, and are based upon assumptions, including, without limitation, final settlement of the share sale transaction, which has not yet occurred as of the date of this release. Forward-looking statements may also include expectations regarding 2025 guidance, including free cash flow generation, capital allocation priorities, future financial performance and portfolio strength. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Estimates or expectations of guidance or future financial performance are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of operations and projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions being approximately consistent with current levels; (v) certain price assumptions for gold, copper, silver, zinc, lead and oil; (vi) prices for key supplies; (vii) the accuracy of current mineral reserve, mineral resource and mineralized material estimates; and (viii) other planning assumptions. Uncertainties include those relating to general macroeconomic uncertainty and changing market conditions, changing restrictions on the mining industry in the jurisdictions in which we operate, impacts to supply chain, including price, availability of goods, ability to receive supplies and fuel, and impacts of changes in interest rates. Uncertainties in geopolitical conditions could impact certain planning assumptions, including, but not limited to commodity and currency prices, costs and supply chain availabilities. The Company does not undertake any obligation to release publicly revisions to any 'forward-looking statement,' including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued 'forward-looking statement' constitutes a reaffirmation of that statement. Article content This announcement does not constitute or form part of any offer or invitation or inducement to sell, or any solicitation of any offer to purchase, any securities of Greatland or Discovery nor shall there be any sale of these securities, in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Article content Article content Article content Article content Contacts
Yahoo
15-07-2025
- Business
- Yahoo
Newmont Announces Monetization of Equity Received Through Successful Divestiture Program
Expected to Generate ~$470 million in Net Proceeds, Reflecting Strong Equity Appreciation Newmont Remains on Track to Deliver on its 2025 Guidance and Capital Allocation Priorities DENVER, July 15, 2025--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) ("Newmont" or the "Company") is pleased to announce that it has executed agreements for the sale of shares in Greatland Resources Limited ("Greatland") and Discovery Silver Corp ("Discovery") for aggregate cash consideration of approximately $470 million, net of taxes and commissions. In February 2024, Newmont announced its intent to divest certain high-quality non-core assets, building an unparalleled portfolio of world class gold and copper operations and projects. The monetization of the Greatland and Discovery shares further streamlines Newmont's equity portfolio, while generating cash for the business. Newmont remains on track to deliver on its 2025 guidance, while continuing to generate strong free cash flow from the Company's world class portfolio of high-quality, long-life assets. With today's announcement, Newmont now expects to generate $3.0 billion in after-tax cash proceeds from its divestiture program in 2025 to support Newmont's capital allocation priorities, which include strengthening our balance sheet and returning capital to shareholders. Sale of Greatland Shares Working in conjunction with Greatland, Newmont agreed to divest half of its shares in June 2025. The Greatland shares sold were received as part of the consideration for the divestment of the Telfer operation and Newmont's 70% interest in the Havieron gold-copper project to Greatland in 2024 (the "Telfer-Havieron Transaction"). The sale reflects an approximately 230% return relative to the value announced at the time of the Telfer-Havieron Transaction. Following the sale of the shares, Newmont's remaining equity stake in Greatland is approximately 9.9%. Sale of Discovery Shares Working in conjunction with Discovery, Newmont agreed to divest 100% of its shares in May 2025 and July 2025. The Discovery shares sold were received as part of the consideration for the divestment of the Porcupine mine to Discovery in 2025 (the "Porcupine Transaction"). The sales reflect an approximately 200% return relative to the value announced at the time of the Porcupine Transaction. To facilitate the sales, Discovery agreed to waive certain provisions of the Investor Rights Agreement entered into between the parties with respect to the Porcupine Transaction. Following the settlement of the July 2025 sales1, Newmont will not be a shareholder of Discovery. About Newmont Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The Company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925. At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont's sustainability strategy and initiatives, go to Cautionary Statement Regarding Forward-Looking Statements This news release contains "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, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward-looking statements in this news release include, without limitation, expectations regarding divestment of non-core asset and completion of the most recent July agreements for the sale of Discovery shares, including expectations regarding net proceeds. Such statements remain subject to risk and uncertainties, and are based upon assumptions, including, without limitation, final settlement of the share sale transaction, which has not yet occurred as of the date of this release. Forward-looking statements may also include expectations regarding 2025 guidance, including free cash flow generation, capital allocation priorities, future financial performance and portfolio strength. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Estimates or expectations of guidance or future financial performance are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of operations and projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions being approximately consistent with current levels; (v) certain price assumptions for gold, copper, silver, zinc, lead and oil; (vi) prices for key supplies; (vii) the accuracy of current mineral reserve, mineral resource and mineralized material estimates; and (viii) other planning assumptions. Uncertainties include those relating to general macroeconomic uncertainty and changing market conditions, changing restrictions on the mining industry in the jurisdictions in which we operate, impacts to supply chain, including price, availability of goods, ability to receive supplies and fuel, and impacts of changes in interest rates. Uncertainties in geopolitical conditions could impact certain planning assumptions, including, but not limited to commodity and currency prices, costs and supply chain availabilities. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. This announcement does not constitute or form part of any offer or invitation or inducement to sell, or any solicitation of any offer to purchase, any securities of Greatland or Discovery nor shall there be any sale of these securities, in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 1 The sales of Discovery shares in July 2025 are subject to final settlement, currently anticipated to be in late-July 2025. View source version on Contacts Investor Contact – GlobalNeil Investor Contact – Asia PacificNatalie Media Contact – GlobalShannon Brusheglobalcommunications@ Media Contact – Australia and AsiaRosalie Cobaiaustraliacommunications@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
