Latest news with #ElliottInvestmentManagement
Business Insider
3 days ago
- Business
- Business Insider
Southwest CEO says changes like charging for seat bookings and checked bags will make it over $4 billion next year
Southwest Airlines expects to make over $4 billion from the array of changes it's introducing. That includes scrapping its signature policies of unassigned seating and the trademarked "Two bags fly free." At the Bernstein Strategic Decisions Conference on Thursday, CEO Bob Jordan said the airline expects an incremental EBIT contribution of $4.3 billion in 2026. "It's hugely impactful to the business and to our margins," he added. On Wednesday, Southwest started charging $35 for a first checked bag and $45 for a second one, although all loyalty members and credit card holders can get one for free. "Bag fees, credit exploration, [and] changes to the loyalty program" are expected to contribute $800 million, Jordan said. While changing the seating system is still "months away," it is expected to generate another $1.5 billion in 2026. Introducing assigned seating is designed to encourage passengers to pay to choose their seat and for premium options like extra legroom. "85% of the customers who won't choose us want assigned seating," Jordan said, adding it is also the biggest reason they don't fly with Southwest. The other $2 billion is split between cost-cutting measures and "base business changes," such as improving the airline's revenue management system. Budget airlines like Southwest have seen their profits tumble since the pandemic. Increased fuel and labor costs, plus domestic overcapacity, have made it harder to fill planes, while fliers are more interested in paying for premium options. As Jordan said on Thursday: "Let's answer the question of what do customers want? And they want segmentation of the cabin. They want a variety of product offerings. They want access to premium." Southwest has also faced pressure from the activist firm Elliott Investment Management. The new changes seem to be encouraging Wall Street. Southwest's share price has risen over 20% in the past month. Plus, Deutsche Bank analysts upgraded the stock from a Hold rating to a Buy on Thursday. "Southwest is in the middle of the largest transformation in company history and we are confident that its new board and management team will execute its transformation plan with considerable success," they wrote in a report.
Yahoo
5 days ago
- Business
- Yahoo
Honeywell, Joby, Fannie Mae & Freddie Mac: Trending Tickers
Honeywell (HON) adds Elliott Investment Management's Marc Steinberg to its board, according to the Wall Street Journal, ahead of the company's plans to split into three separate entities. Electric vertical take-off and landing — or eVTOL — developer Joby Aviation (JOBY) receives the first $250 million of Toyota's (TM, 7203.T) $500 million investment. Also watch Yahoo Finance's interview with Joby Aviation CEO JoeBen Bevirt from October 2024. President Trump says he plans to take US mortgage lenders Freddie Mac (FMCC) and Fannie Mae (FNMA) public, affirming that he will keep government guarantees. Catch Whalen Global Advisors Chairman Chris Whalen weigh in on the restructuring these two firms may need to see from the Trump administration for successful public spin-offs. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. 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
Yahoo
23-05-2025
- Business
- Yahoo
Phillips 66 and Elliott's contentious proxy battle ends in split vote over fight to break up energy giant
The barroom brawl of a boardroom fight between Phillips 66 and activist investor Elliott Investment Management to break up the massive energy company concluded May 21 with a split vote and both sides declaring victory. With four board positions up for grabs, Phillips 66 and Elliott each claimed two seats amid Elliott's campaign to force Phillips 66 to sell or spin off its petrochemical and midstream pipeline businesses and focus on its legacy refining unit. The battle pits one of the energy sector's most storied players against arguably the most influential activist fund manager in the world, led by billionaire Paul Singer. On a 14-person board chaired by CEO Mark Lashier, the future of Phillips 66 remains murky, but the vote is significant because no activist at an S&P 500 company had successfully won a board seat in at least 15 years without support of one of the big three index funds—BlackRock, Vanguard, and State Street, according to Insightia. While Elliott's campaign was backed by prominent proxy advisory firms Institutional Shareholder Services, Glass Lewis, and Egan-Jones, Phillips 66's top three passive investors—the big three index funds—all sided with the company. Elliott called the vote a clear mandate for change. 'Today's vote sends a clear message: Shareholders demand meaningful change at Phillips 66,' Elliott said in a prepared statement. On the other hand, Lashier called the vote supportive of maintaining Phillips 66's current integrated structure. 'We welcome our new directors and look forward to working constructively as a board,' Lashier said in a statement. 'This vote reflects a belief in our integrated strategy and a recognition that our early results do not yet reflect the full potential of our plan or the value inherent in this business.' Elliott owns a nearly 6% stake in Phillips 66 and has pushed for major change, arguing that Phillips 66 has performed below peers such as Marathon Petroleum and Valero Energy. Likewise, Chevron has expressed an interest in buying out Phillips 66's stake in its Chevron Phillips Chemical joint venture, which Lashier has resisted to this point. Breaking up the company runs counter to Phillips 66's strategy of late to grow its midstream pipeline business, especially in natural gas liquids (NGLs), such as propane, butane, and ethane—the primary petrochemical feedstock, which Phillips 66 sees as its largest growth potential. Lashier argues Phillips 66 is in the early stages of its transformation strategy with refining improvements already demonstrated and that it needs to stay the course. The two Elliott nominees elected were Sigmund 'Sig' Cornelius, who recently retired as the president of Freeport LNG, and Michael Heim, an operating partner with Stonepeak who also was a founder and president of the Targa Resources midstream pipeline giant. Elliott said Cornelius and Heim will aim to 'improve operational execution and share-price performance, enhance corporate governance and help set a strategic course that can unlock Phillips 66's full value-creation potential.' On the Phillips 66 candidate slate, Robert Pease was reelected, and Harbour Energy Chief Operating Officer Nigel Hearne was added to the board. Pease's reelection stands out because he was originally backed by Elliott before being opposed this year. Elliott first reached out to Phillips 66 in late September 2023. They reached a deal and détente—after Elliott privately threatened to start a proxy fight with six board nominees—naming Pease, former CEO of refiner Motiva Enterprises, to the board in mid-February 2024. But Elliott alleged Pease flipflopped and supported Lashier as chairman when Elliott wanted a non-executive chair. With Pease's seat up for grabs, Elliott took aim at his as well when the proxy fight escalated earlier this year. Phillips 66 is making some divestments though, even if they were ones the company expressed a willingness to make last year. Just last week, Phillips 66 agreed to sell 65% stakes in its Germany and Austria retail fueling business to a consortium led by Energy Equation Partners and Stonepeak that will bring in $1.6 billion in pre-tax cash proceeds, giving the businesses a total enterprise value of $2.8 billion. The deal includes 970 retail fueling sites, of which 843 are JET-branded stores. Phillips 66 said the proceeds will go toward debt reduction and shareholder returns. Last fall, Phillips 66 also sold off its Switzerland and Lichtenstein businesses. This story was originally featured on
Yahoo
22-05-2025
- Business
- Yahoo
Why Phillips 66 (PSX) Crashed Today
We recently published a list of . In this article, we are going to take a look at where Phillips 66 (NYSE:PSX) stands against other firms that are drenched in red today. Ten companies pulled back on Wednesday, booking hefty losses during the trading session, with investor sentiment weighed down by a flurry of government policies and dismal earnings performance in the last quarter of the year. Meanwhile, the Dow Jones fell by 1.91 percent, the S&P 500 declined by 1.61 percent, and the tech-heavy Nasdaq dropped 1.41 percent. In this article, let us take a look at the 10 companies that led a poor performance during the day and explore the reasons behind their drop. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume. A refinery manager walking through an array of pipes and pumping systems, recognizing the company's vast refining power. Oil refiner Phillips 66 dropped its share prices for a third consecutive day on Wednesday, shedding 7.54 percent to close at $111.78 apiece as investor sentiment was dampened by an ongoing battle within its corporate boardroom. At an annual stockholders' meeting on the same day, Phillips 66 (NYSE:PSX) and activist investor Elliott Investment Management each won two seats, following months of dispute over the company's asset sales and performance. 'This vote reflects a belief in our integrated strategy and a recognition that our early results do not yet reflect the full potential of our plan or the value inherent in this business,' Phillips 66 (NYSE:PSX) CEO Mark Lashier said in a statement. For its part, Elliott said that being one of the largest investors of Phillips 66 (NYSE:PSX), it will 'continue to actively engage with the Company while holding management and the Board accountable for delivering on their commitment to improve shareholder value.' Overall, PSX ranks 10th on our list of firms that are drenched in red today. While we acknowledge the potential of PSX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PSX but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
20-05-2025
- Business
- Bloomberg
Elliott Faces First-Ever US Proxy Vote in Phillips 66 Battle
After more than a hundred campaigns targeting US companies, Elliott Investment Management is heading into its first ever proxy vote on home ground. The activist investor will face off with Phillips 66 Wednesday, as it battles to get four of its board nominees elected at the US refiner's annual shareholder meeting.
