Latest news with #NonGAAP
Globe and Mail
6 days ago
- Business
- Globe and Mail
ePlus (PLUS) Q1 Revenue Jumps 19%
Key Points GAAP revenue of $637.3 million exceeded estimates by 21.6% in Q1 FY2026, setting a new quarterly record. Non-GAAP EPS of $1.26 topped expectations by $0.20 in Q1 FY2026 and rose 24.8% year over year (non-GAAP). First-ever dividend of $0.25 per share was declared, and a new 1.5 million share buyback was authorized. These 10 stocks could mint the next wave of millionaires › ePlus (NASDAQ:PLUS), a technology solutions provider specializing in IT infrastructure, announced results for Q1 FY2026 on August 7, 2025. The company posted GAAP revenue of $637.3 million, beating analyst estimates of $523.9 million (GAAP), while delivering Non-GAAP earnings per share (EPS) of $1.26, well above the $1.06 non-GAAP expectation. Both revenue (GAAP) and EPS (non-GAAP) marked double-digit percentage growth compared to the prior year's quarter. These results also set all-time quarterly records for gross billings and net sales. In a pivotal move, ePlus initiated its first-ever quarterly dividend and launched a new share repurchase program. Overall, the quarter showed broad-based revenue expansion driven mainly by services and an enhanced capital return profile. Metric Q1 FY26(3 months ended June 30, 2025) Q1 FY26 Estimate Q1 FY25(3 months ended June 30, 2024) Y/Y Change EPS (Non-GAAP) $1.26 $1.06 $1.01 24.8% Revenue (GAAP) $637.3 million $523.9 million $535.7 million 19.0% Adjusted EBITDA $46.7 million $39.1 million 19.4% Gross Profit $148.2 million $126.9 million 16.8% Net Earnings from Continuing Operations $27.1 million N/A N/A Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report. ePlus Inc. Business Model and Key Focuses ePlus Inc. delivers a range of technology solutions, including consulting, cloud, security, managed services, and IT infrastructure products for commercial, healthcare, education, and government customers. The company forms strategic partnerships with major technology vendors like AWS, Cisco, Microsoft, and VMware, enabling it to provide multi-vendor solutions tailored to diverse customer needs. Recently, ePlus has focused on expanding and integrating its professional and managed services, with a strong emphasis on emerging technologies like cloud computing, security, and AI (artificial intelligence). The company also completed the sale of its financing business to concentrate fully on higher-growth technology solutions. Key success factors include maintaining strong vendor certifications, a diversified customer base, and adapting to rapid changes in the IT market. What Drove the Quarter: Financial and Service Results Revenue set a quarterly record as services growth accelerated, underpinned by the recent Bailiwick Services acquisition and existing core business demand. Services revenue rose 48.8% from a year before, reaching $116.3 million. Within this, professional services nearly doubled with a 92.4% increase, driven mainly by integrating Bailiwick's operations. Managed services were up 9.0%, showing continued momentum in cloud and enhanced maintenance contracts. In the product business, net sales (GAAP) rose 13.9%, led by rapid adoption in cloud and security product lines. Cloud-related net sales (GAAP) climbed 50.8% to $206.996 million, and security product sales advanced 27.3% (GAAP). Networking and collaboration products, however, declined by 7.0% and 43.7%, respectively, as customers continued to digest equipment from the prior supply chain surge. Segment margins and mix continued to evolve. Professional services gross profit increased 82.2% to $28.2 million (GAAP), but the gross margin within this category dipped to 39.2% from 41.5% in the prior year, as the newly acquired lower-margin business blended with existing operations. Managed services margin also slipped to 30.4%. The product segment gross margin softened to 20.4%, due to a lower share of third-party maintenance and services. Overall company gross margin (GAAP) narrowed to 23.3%, compared with 23.7% a year earlier. Operating expenses grew 17.4%, reflecting a 275-person headcount expansion, primarily in customer-facing roles and related compensation. Operating income from continuing operations (GAAP) was up 15.1%. Adjusted EBITDA increased 19.6% and Non-GAAP EPS increased 24.8% year-over-year. Cash provided by the sale of the financing business bolstered the balance sheet, with cash and equivalents totaling $480.2 million, up from $389.4 million as of Q4 FY2025. Customer vertical performance was mixed. Telecom, Media, and Entertainment end-market sales surged 57.4% to $184,979,000, and the "All Other" category rose 71.1% year-over-year (GAAP). In contrast, technology, healthcare, and financial services saw declines or near-flat results, indicating shifts in where IT spending occurred this quarter. Strategic actions featured prominently. The company's exit from its US financing business completed its transition to a pure technology solutions company. In a new move for shareholder returns, management declared a quarterly dividend and announced approval of a 1.5 million share repurchase program. Inventory was reduced by 16.1% compared to Q4 FY2025, while trade receivables (GAAP) increased by 35.6%. The period did not include a previously declared dividend. On the product side, ePlus's offerings range from cloud solutions (helping customers move computing workloads onto remote data centers), security products (protecting digital assets from cyber threats), networking equipment (for building large computer networks), and collaboration tools (such as video and messaging platforms). Managed services involve outsourcing IT support and monitoring, while professional services provide technical consulting, project management, and system integration. Outlook and Investor Considerations For fiscal 2026, management raised its financial outlook. It now expects net sales and gross profit both to grow in the upper single-digit percentage range over the prior fiscal year, while adjusted EBITDA should rise in the mid-teens. This is an increase from earlier projections. Leadership noted that demand in cloud, security, and data center markets remains strong. In the period ahead, investors may want to watch for further changes in business mix, especially service margins as recently acquired businesses are integrated. Receivables growth and working capital management will also be important, given the 35.6% jump in trade accounts receivable. The company's pivot to pure-play technology, enhanced capital return plans, and expanded vendor awards position it to continue benefiting from secular trends in cloud, AI, and security. PLUS does pay a dividend. The quarterly dividend was introduced at $0.25 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025
Globe and Mail
6 days ago
- Business
- Globe and Mail
Jamf (JAMF) Q2 Revenue Jumps 15%
Key Points Jamf posted $176.5 million in GAAP revenue, surpassing analyst estimates by $7.7 million (GAAP). Non-GAAP operating income rose 42.6% to $33.5 million, with record Security ARR up 40% year-over-year to $203 million. Net loss (GAAP) widened to $20.9 million despite improved operating results and strong cash generation. These 10 stocks could mint the next wave of millionaires › Jamf (NASDAQ:JAMF), a tech firm specializing in Apple device management and enterprise security, reported results on August 7, 2025. The company delivered $176.5 million in GAAP revenue, topping GAAP expectations of $168.8 million. Non-GAAP earnings per share (EPS) reached $0.18. Non-GAAP operating income jumped to $33.5 million, up from $23.5 million in non-GAAP operating income in Q2 2024. The most notable news was steady top-line growth, as Jamf reported GAAP revenue growth of 15% year-over-year. and a 40% year-over-year boost in Security annual recurring revenue (ARR) after the recent Identity Automation acquisition. However, GAAP net losses expanded, mainly due to higher integration and transformation costs. Overall, the period showed strong underlying growth. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.18 $0.17 $0.14 28.6% Revenue (GAAP) $176.5 million $168.8 million $153.0 million 15.4% Gross Profit (Non-GAAP) $141.6 million $124.9 million 13.4% Operating Income (Non-GAAP) $33.5 million $23.5 million 42.6% Adjusted EBITDA $35.3 million $25.3 million N/A Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report. What Jamf Does and Where It's Focused Jamf provides cloud-based software to help businesses and schools manage, secure, and automate Apple devices. Its platform is designed to work seamlessly with Apple products such as iPads, iPhones, and Macs. Jamf's approach centers on providing IT departments with advanced controls for security and user experience in Apple-first environments. Jamf's current business strategy hinges on several key areas. The most important is its Apple-first approach. This means every product is built with Apple integration in mind, helping Jamf win customers who need advanced but easy-to-use management. Its main customers include large corporations, hospitals, and schools. Another focus is product innovation, especially investing in artificial intelligence (AI) and automation to stay ahead as Apple devices proliferate in the workplace. Building recurring revenue through its software-as-a-service (SaaS) model and keeping customer satisfaction high remain core to its long-term growth. Q2 2025: Revenue Growth, Security Shift, and Cost Pressures The second quarter marked a solid revenue performance as total sales (GAAP) climbed 15% year over year, surpassing management's outlook and Wall Street estimates. Subscription revenue, which makes up almost all of Jamf's sales, increased 15.6% year-over-year. International business delivered year-over-year revenue growth of 15%. Security products emerged as a key revenue engine, as Security ARR jumped 40% year-over-year to $203 million, now making up 29% of total ARR as of June 30, 2025. With the integration of Identity Automation—a recent acquisition focused on digital identity and cybersecurity—the company aims to address security and compliance needs more directly for its customers. This shift diversifies Jamf's revenue away from basic management tools toward a broader range of enterprise services. Margins improved on an operating basis, with non-GAAP gross margin at 80% and non-GAAP operating income up by $10.0 million year over year. However, some pressure appeared on non-GAAP gross margins (down from 82% in Q2 2024, now at 80%). The company also highlighted the launch of a new platform reinvestment plan designed to accelerate AI innovation and enhance go-to-market activities. Despite strong recurring revenue and higher profits before certain costs, the company's GAAP net loss widened to $20.9 million. Management cited heavier charges related to stock-based compensation totaling $27.8 million. No dividend is paid to shareholders. Looking Ahead: Guidance and Key Watch Points For Q3 2025, management is guiding for total revenue between $176.0 and $178.0 million. Non-GAAP operating income is expected in the range of $41.5 to $42.5 million, up from $33.5 million in non-GAAP operating income. For the full year, Jamf raised its outlook, projecting total revenue between $701.0 and $704.0 million and non-GAAP operating income between $153.5 and $155.5 million. The unlevered free cash flow (non-GAAP) is forecast to rise at least 75% year-over-year. Management has not provided guidance for GAAP earnings per share, citing volatility in items such as stock-based compensation and integration costs. Investors may focus on several trends going forward. First, the success of the Identity Automation integration and further expansion of security offerings could reshape Jamf's business mix. Second, continued investment in AI and automation are key to keeping Jamf's platform competitive as the enterprise software landscape shifts. Finally, monitoring net retention rates and margin trends will be important as costs rise and the company seeks to balance growth with profitability. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
07-08-2025
- Business
- Yahoo
Greenfire Resources Reports Second Quarter 2025 Results and Provides an Operational Update
Readers are advised to review the "Non-GAAP and Other Financial Measures" section of this press release for information regarding the presentation of financial measures that do not have standardized meaning under IFRS® Accounting Standards. Readers are also advised to review the "Forward-Looking Information" section in this press release for information regarding certain forward-looking information and forward-looking statements contained in this press release. All amounts in this press release are stated in Canadian dollars unless otherwise specified. The Company holds a 75% working interest in the Hangingstone Expansion Facility (the "Expansion Asset") and a 100% working interest in the Hangingstone Demonstration Facility (the "Demo Asset" and, together with the Expansion Asset, the "Hangingstone Facilities"). Unless indicated otherwise, production volumes and per unit statistics are presented throughout this press release on a "gross" basis as determined in accordance with National Instrument 51-101 - Standards for Disclosure for Oil and Gas Activities, which is the Company's gross working interest basis before deduction of royalties. Calgary, Alberta--(Newsfile Corp. - August 6, 2025) - Greenfire Resources Ltd. (NYSE: GFR) (TSX: GFR) ("Greenfire" or the "Company"), today reported its operating and financial results thereto for the quarter ended June 30, 2025 ("Q2 2025"). The unaudited condensed interim consolidated financial statements and notes for the three and six months ended June 30, 2025 and 2024, as well as the related Management's Discussion and Analysis ("MD&A"), will be available on SEDAR+ at on EDGAR at and on Greenfire's website at Q2 2025 Highlights Bitumen production of 15,748 bbls/d Cash provided by operating activities of $17.7 million and Adjusted funds flow(1) of $33.8 million Capital expenditures(2) of $10.8 million Adjusted free cash flow(1) of $23.0 million Financial & Operating Highlights Three Months Ended ($ thousands, unless otherwise indicated)June 30,2025 June 30, 2024 March 31, 2025WTI (US$/bbl)63.74 80.57 71.42WCS differential to WTI (US$/bbl)(10.27 )(13.61 )(12.67 ) WCS Hardisty (US$/bbl)53.47 66.96 58.75Average FX Rate (C$/US$)1.3840 1.3684 1.4348Bitumen production (bbls/d)15,748 18,993 17,495Oil sales144,542 219,444 183,637Royalties(3,932 )(9,919 )(6,824 ) Realized gains (losses) on risk management contracts9,823 (13,798 )(1,101 ) Diluent expense(56,290 )(84,545 )(73,994 ) Transportation and marketing(12,415 )(13,313 )(14,185 ) Operating expenses(31,823 )(34,997 )(37,929 ) Operating netback(1)49,905 62,872 49,604Operating netback(1) ($/bbl)35.06 36.68 31.67Net income and comprehensive income48,730 30,848 16,163Cash provided by operating activities17,732 85,163 34,673Adjusted funds flow(1)33,843 47,207 31,444Capital expenditures(2)(10,840 )(23,009 )(26,299 ) Adjusted free cash flow(1)23,003 24,198 5,145Cash and cash equivalents69,980 159,977 72,238Available credit facilities(3)50,000 50,000 50,000Net debt(1)(216,001 )(283,025 )(253,111 ) Common shares ('000 of shares)70,252 69,276 69,922 (1) Non-GAAP measures without a standardized meaning under IFRS. Refer to the "Non-GAAP and Other Financial Measures" section in this press release.(2) Supplementary financial measure. Refer to the "Non-GAAP and Other Financial Measures" section of this press release.(3) The Company had $50.0 million available under the Senior Credit Facility, with no amounts drawn as at June 30, 2025, June 30, 2024, or March 31, 2025. Q2 2025 Review Greenfire's average production for Q2 2025 was 15,748 bbls/d, representing a 10% decrease from Q1 2025 and below 18,993 bbls/d reported in Q2 2024. Expansion Asset: Production in Q2 2025 was 10,105 bbls/d, reflecting a 20% decrease from the previous quarter. This reduction was primarily attributed to downtime associated with the previously disclosed failure of one of the four steam generators at the Expansion Asset. Demo Asset: Production in Q2 2025 was 5,643 bbls/d, representing a 16% increase from the previous quarter. This growth was driven by the optimization of base well performance. Hangingstone Facilities: Bitumen Production Results (bbls/d)Q2 2025 Q2 2024 Q1 2025Expansion Asset10,105 15,824 12,613Demo Asset5,643 3,169 4,882Consolidated15,748 18,993 17,495 Capital expenditures for Q2 2025 totaled $10.8 million, compared to $23.0 million in the same period of the prior year. Adjusted free cash flow was $23.0 million for Q2 2025, compared to $24.2 million in Q2 2024. Operational Update Production and Steam Generation Updates Greenfire's July 2025 corporate production was approximately 16,000 bbls/d. The Company's production continues to be affected by the previously disclosed failure of one of the four steam generators at the Expansion Asset, resulting in an estimated production impact of 1,500 to 2,250 bbls/d. Full steam capacity is expected to be restored by year-end 2025. Regulatory Engagement and Installation of Sulphur Removal Facilities Greenfire continues to engage with the Alberta Energy Regulator (the "AER") regarding previously disclosed sulphur dioxide emissions that exceed regulatory limits at the Expansion Asset. To support a timely return to compliance, Greenfire has ordered sulphur removal facilities, which are scheduled for installation and commissioning in Q4 2025. Management expects these facilities will restore emissions compliance at a total estimated cost of $11.3 million (previously $15.0 million). Progress Update on Future Development Plans During the second quarter of 2025, Greenfire refined its proposed development plan and operational strategies at the Hangingstone Facilities. The proposed development plan includes a new SAGD well pad ("Pad 7"), consisting of 13 well-pairs, located northeast of the Expansion Asset's Central Processing Facility (the "Expansion CPF") and directly adjacent to existing production (see Exhibit 1). Greenfire has secured a drilling rig, with drilling operations expected to begin in Q4 2025 and first oil production anticipated in Q4 2026. Exhibit 1: Expansion Asset - Pad 7 Development Plan- Pad 7 surface facility (orange), drainage boxes and horizonal well locations (purple) Exhibit 1 To view an enhanced version of this graphic, please visit: Greenfire continues to evaluate further development opportunities at the Hangingstone Facilities, including drilling additional well pairs southeast of the Expansion CPF and optimization opportunities at the Demo Asset to sustain current production rates. 2025 Outlook Greenfire's board of directors has approved a 2025 capital budget of $130 million, with an anticipated 2025 annual production range of 15,000 to 16,000 bbls/d. The budget is evenly allocated between sustaining and growth initiatives. Sustaining initiatives include the restoration of the steam generator and the installation of sulphur removal facilities at the Expansion Asset. Growth initiatives are focused on the development of Pad 7, with drilling operations scheduled to commence in the fourth quarter of 2025. Hedges Greenfire has WTI hedges in place for 9,450 bbls/d at approximately $100.90 per barrel through 2025. For the WCS Hardisty differential, the Company has secured hedges for 12,600 bbl/d for Q3 2025 at US$10.90/bbl and 12,600 bbl/d for Q4 2025 at US$13.50/bbl. The Company will continue to assess market conditions to identify potential additional hedging opportunities. Conference Call Details Greenfire plans to host a conference call on Thursday, August 7, 2025 at 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time), during which members of the Company's executive team will discuss its Q2 2025 results as well as host a question-and-answer session with research analysts. Date: Thursday, August 7, 2025 Time: 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time) Webcast Link: Dial In: 1-833-752-3499 or 1-647-846-7280 Participant instructions: Please ask the operator to join the Greenfire Resources Ltd. call. About Greenfire Greenfire is an oil sands producer actively developing its long-life and low-decline thermal oil assets in the Athabasca region of Alberta, Canada, with its registered offices in Calgary, Alberta. The Company plans to leverage its large resource base and significant infrastructure in place to drive meaningful, capital-efficient production growth. As part of the Company's commitment to operational excellence, safe and reliable operations remain a top priority for Greenfire. Greenfire common shares are listed on the New York Stock Exchange and Toronto Stock Exchange under the trading symbol "GFR". For more information, visit or find Greenfire on LinkedIn and X. Non-GAAP and Other Financial Measures Certain financial measures in this press release are non-GAAP financial measures or ratios. These measures do not have a standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures provided by other companies. These non-GAAP measures should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS Accounting Standards. This press release also contains supplementary financial measures. Non-GAAP financial measures and ratios include operating netback, adjusted funds flow, adjusted free cash flow, net debt and per barrel figures associated with such non-GAAP financial measures. Supplementary financial measures and ratios include gross profit, capital expenditures, and depletion. Non-GAAP Financial Measures Operating Netback (including per barrel ($/bbl)) Gross profit (loss) is the most directly comparable GAAP measure to operating netback which is a non-GAAP measure. Operating netback is further adjusted for realized gain (loss) on risk management contracts, as appropriate. Operating netback per barrel ($/bbl) is calculated by dividing operating netback by the Company's total bitumen sales volume in a specified period. When Operating netback is expressed on a per barrel basis, it is a non-GAAP ratio. Operating netback is a financial measure widely used in the oil and gas industry as a supplementary measure of a company's efficiency and ability to generate cash flow for debt repayments, capital expenditures, or other uses. The following table is a reconciliation of gross profit (loss) to operating netback: Three Months EndedJune 30, June 30, March 31, ($ thousands, unless otherwise noted)2025 2024 2025Gross profit (loss)(1)55,829 58,581 34,392Depletion(1)19,915 17,130 21,561Gain (loss) on risk management contracts(35,662 )959 (5,248 ) Operating netback, excluding realized gain (loss) on risk management contracts40,082 76,670 50,705Realized gain (loss) on risk management contracts(9,823 )(13,798 )(1,101 ) Operating netback49,905 62,872 49,604Operating netback ($/bbl)35.06 36.68 31.67 (1) Supplementary financial measure. Adjusted Funds Flow and Adjusted Free Cash Flow Cash provided by operating activities is the most directly comparable GAAP measure for adjusted funds flow, which is a non-GAAP measure. This measure is not intended to represent cash provided by operating activities calculated in accordance with IFRS Accounting Standards. The adjusted funds flow measure allows management and others to evaluate the Company's ability to fund its capital programs and meet its ongoing financial obligations using cash flow internally generated from ongoing operating related activities. We compute adjusted funds flow as cash provided by operating activities, excluding the impact of changes in non-cash working capital, less transaction costs and transactions considered non-recurring in nature or outside of normal business operations. Cash provided by operating activities is the most directly comparable GAAP measure for adjusted free cash flow, which is a non-GAAP measure. Management uses adjusted free cash flow as an indicator of the efficiency and liquidity of its business, measuring its funds after capital investment that are available to manage debt levels and return capital to shareholders. By removing the impact of current period property, plant and equipment expenditures from adjusted free cash flow, management monitors its adjusted free cash flow to inform its capital allocation decisions. We compute adjusted free cash flow as cash provided by operating activities, excluding the impact of changes in non-cash working capital, less transaction costs, transactions considered non-recurring in nature or outside of normal business operations, property, plant and equipment expenditures and acquisition costs. The following table is a reconciliation of cash provided by operating activities to adjusted funds flow and adjusted free cashflow: Three Months EndedJune 30, June 30, March 31, ($ thousands)2025 2024 2025Cash provided by operating activities17,732 85,163 34,673Non-recurring transactions(1)- - 1,853Changes in non-cash working capital16,111 (37,956 )(5,082 ) Adjusted funds flow33,843 47,207 31,444Property, plant and equipment expenditures(10,840 )(21,824 )(26,299 ) Acquisitions- (1,185 )-Adjusted free cash flow23,003 24,198 5,145 (1) Non-recurring transactions relate to a terminated shareholder rights plan and the evaluation of strategic alternatives. Net Debt The table below reconciles long-term debt to net debt. As atJune 30, June 30, March 31,($ thousands)2025 2024 2025Long-term debt(309,641 )(275,452 )(317,432 ) Current assets187,689 204,785 153,150Current liabilities(66,565 )(264,365 )(93,036 ) Current portion of risk management contracts(31,940 )26,315 (6,101 ) Current portion of warrant liability4,456 25,692 10,308Net debt(216,001 )(283,025 )(253,111 ) Net debt is a non-GAAP measure. Long-term debt is a GAAP measure that is the most directly comparable financial statement measure to net debt. Net debt is comprised of long-term debt, adjusted for current assets and current liabilities on the Company's balance sheet, and excludes the current portions of risk management contracts and warranty liability. Management uses net debt to monitor the Company's current financial position and to evaluate existing sources of liquidity. Net debt is used to estimate future liquidity and whether additional sources of capital are required to fund planned operations. Supplementary Financial Measures Depletion The term "depletion" or "depletion expense" is the portion of depletion and depreciation expense reflecting the cost of development and extraction of the Company's bitumen reserves. Gross Profit (Loss) Gross profit (loss) is a supplementary financial measure prepared on a consistent basis with IFRS Accounting Standards. Greenfire uses gross profit (loss) to assess its core operating performance before considering other expenses such as general and administrative costs, financing costs, and income taxes. Gross profit (loss) is calculated as oil sales, net of royalties, plus gains on risk management contracts, less losses on risk management contracts, diluent expense, operating expense, depletion expense on the Company's operating assets, transportation expenses and marketing expenses. Management believes that gross profit (loss) provides investors, analysts, and other stakeholders with useful insight into the Company's ability to generate profitability from its core operations before non-operating expenses. Three Months EndedJune 30, June 30, March 31, ($ thousands)2025 2024 2025Oil sales, net of royalties140,610 209,525 176,813Gain (loss) on risk management contracts35,662 (959 )5,248176,272 208,566 182,061Diluent expense(56,290 )(84,545 )(73,994 ) Transportation and marketing(12,415 )(13,313 )(14,185 ) Operating expenses(31,823 )(34,997 )(37,929 ) Depletion(19,915 )(17,130 )(21,561 ) Gross profit (loss)55,829 58,581 34,392 Capital Expenditures Capital expenditures is a supplementary financial measure prepared on a consistent basis with IFRS Accounting Standards. Greenfire uses capital expenditures to monitor the cash flows it invests into property, plant and equipment. Capital expenditures is derived from the statement of cash flows and includes property, plant and equipment expenditures and acquisitions. Management believes that capital expenditures provides investors, analysts and other stakeholders with a useful insight into the Company's investments into property, plant and equipment. Three Months EndedJune 30, June 30, March 31, ($ thousands)2025 2024 2025Property, plant and equipment expenditures10,840 28,124 26,299Acquisitions- 1,185 -Capital expenditures10,840 23,009 26,299 Forward-Looking Information This press release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. The forward-looking information in this press release is based on Greenfire's current internal expectations, estimates, projections, assumptions, and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon. The use of any of the words "expect", "target", "anticipate", "intend", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the expected timing for the restoration of full steam capacity at the Expansion Asset; Greenfire's discussions with the AER regarding previously disclosed sulphur dioxide emissions exceedance, including the expected timing of installation and commissioning of a sulphur recovery unit and that this initiative will effectively restore compliance with sulphur dioxide emissions requirements at the Expansion Asset; Greenfire's plans including development and construction around the Expansion CPF and the anticipated timing and costs thereof; the 2025 Outlook, including the Company's capital budget and the anticipated allocation thereof, and the Company's production guidance; development plans for a new SAGD pad; development plans, capital expenditures and operational strategies for the Expansion Asset and the Demo Asset; that the Company will continue to assess market conditions to identify potential additional hedging opportunities; and statements relating to the business and future activities of the Company after the date of this press release. Management approved the capital budget and production guidance contained herein as of the date of this press release. The purpose of the capital budget and production guidance is to assist readers in understanding the Company's expected and targeted financial position and performance, and this information may not be appropriate for other purposes. Forward-looking information in this press release relating to oil and gas exploration, development and production, and management's general expectations relating to the oil and gas industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of the industry which management believes to be reasonable. Although generally indicative of relative market positions, market shares and performance characteristics, this data is inherently imprecise. Management is not aware of any misstatements regarding any industry data presented in press release. All forward-looking information reflects Greenfire's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of the Company's current expectations with respect to such matters as: the success of Greenfire's operations and growth and expansion projects; expectations regarding production growth, future well production rates and reserves volumes; expectations regarding Greenfire's capital program; the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; prevailing and future royalty regimes and tax laws; expectations regarding differentials and realized prices; future well production rates and reserves volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Greenfire's assets; decommissioning obligations; Greenfire's ability to comply with its financial covenants; Greenfire's ability to comply with applicable regulations, including those related to various emissions; Greenfire's ability to obtain all applicable regulatory approvals in connection with the operation of its business; and the governmental, regulatory and legal environment. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, Greenfire cannot assure readers that these expectations will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking information, including, without limitation: changes in oil and gas prices and differentials; changes in the demand for or supply of Greenfire's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing war in Eastern Europe and the conflict in the Middle East, and other heightened geopolitical risks, including imposition of tariffs or other trade barriers, and the ability of the Company to carry on operations as contemplated in light of the foregoing; determinations by OPEC and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change regulations, royalty rates or other regulatory matters; changes in Greenfire's operating and development plans; reliability of Company owned and third party facilities, infrastructure and pipelines required for Greenfire's operations and production; competition for, among other things, capital, acquisitions of reserves and resources, undeveloped lands, access to services, third party processing capacity and skilled personnel; inability to retain drilling rigs and other services; severe weather conditions, including wildfires, impacting Greenfire's operations and third party infrastructure; availability of diluent, natural gas and power to operate Greenfire's facilities; failure to realize the anticipated benefits of the Company's acquisitions; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Greenfire's bitumen reserves volumes; limited, unfavourable or a lack of access to capital markets or other sources of capital; increased costs; failure to comply with applicable regulations, including relating to the Company's air emissions, and potentially significant penalties and orders associated therewith and associated significant effect on the Company's business, operations, production, reserves estimates and financial condition; a lack of adequate insurance coverage; and other factors discussed under the "Risk Factors" section in Greenfire's Management's Discussion & Analysis for the interim period ended June 30, 2025 and Annual Information Form dated March 17, 2025, and from time to time in Greenfire's public disclosure documents, which are available on the Company's SEDAR+ profile at and in the Company's annual report on Form 40-F filed with the SEC, which is available on the Company's EDGAR profile at The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Greenfire does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement. Contact Information Greenfire Resources Ltd.205 5th Avenue SWSuite 1900Calgary, AB T2P 2V7 investors@ To view the source version of this press release, please visit 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
06-08-2025
- Business
- Yahoo
Veeco Reports Second Quarter 2025 Financial Results
Second Quarter 2025 Highlights: Revenue of $166.1 million, compared with $175.9 million in the same period last year GAAP net income of $11.7 million, or $0.20 per diluted share, compared with $14.9 million, or $0.25 per diluted share in the same period last year Non-GAAP net income of $21.5 million, or $0.36 per diluted share, compared with $25.4 million, or $0.42 per diluted share in the same period last year PLAINVIEW, N.Y., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its second quarter ended June 30, 2025. Results are reported in accordance with U.S. generally accepted accounting principles ('GAAP') and are also reported adjusting for certain items ('Non-GAAP'). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release. U.S. Dollars in millions, except per share data GAAP Results Q2 '25 Q2 '24 Revenue $ 166.1 $ 175.9 Net income $ 11.7 $ 14.9 Diluted earnings per share $ 0.20 $ 0.25 Non-GAAP Results Q2 '25 Q2 '24 Operating income $ 23.1 $ 28.3 Net income $ 21.5 $ 25.4 Diluted earnings per share $ 0.36 $ 0.42 'Veeco delivered strong financial results this quarter, fueled by rapid expansion of High-Performance Computing and AI technologies,' said Bill Miller, Ph.D., Veeco's Chief Executive Officer. 'This performance was driven by shipments of our wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks.' Guidance and Outlook The following guidance is provided for Veeco's third quarter 2025: Revenue is expected in the range of $150 million to $170 million GAAP diluted earnings per share are expected in the range of $0.04 to $0.22 Non-GAAP diluted earnings per share are expected in the range of $0.20 to $0.35 Conference Call Information A conference call reviewing these results has been scheduled for today, August 6, 2025 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call. About Veeco Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco's systems and service offerings, visit Forward-looking Statements This press release contains 'forward-looking statements', within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management's expectations, estimates, projections and assumptions. Words such as 'expects,' 'anticipates,' 'plans,' 'believes,' 'scheduled,' 'estimates' and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management's expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release. -financial tables attached- Veeco Contacts: Investors: Anthony Pappone (516) 500-8798 apappone@ Media: Brenden Wright (410) 984-2610 bwright@ Instruments Inc. and SubsidiariesCondensed Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net sales $ 166,104 $ 175,879 $ 333,396 $ 350,363 Cost of sales 97,377 100,489 196,202 199,554 Gross profit 68,727 75,390 137,194 150,809 Operating expenses, net: Research and development 31,560 31,696 60,074 61,338 Selling, general, and administrative 23,927 24,595 48,955 49,295 Amortization of intangible assets 821 1,825 1,642 3,716 Other operating expense (income), net 49 552 5 (2,307 ) Total operating expenses, net 56,357 58,668 110,676 112,042 Operating income 12,370 16,722 26,518 38,767 Interest income (expense), net 905 349 1,741 1,054 Other income (expense), net (653 ) — (653 ) — Income before income taxes 12,622 17,071 27,606 39,821 Income tax expense 889 2,127 3,926 3,023 Net income $ 11,733 $ 14,944 $ 23,680 $ 36,798 Income per common share: Basic $ 0.20 $ 0.27 $ 0.41 $ 0.66 Diluted $ 0.20 $ 0.25 $ 0.40 $ 0.61 Weighted average number of shares: Basic 59,076 56,277 58,434 56,160 Diluted 60,237 62,535 60,072 61,733 Veeco Instruments Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands) June 30, December 31, 2025 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 188,902 $ 145,595 Restricted cash 87 224 Short-term investments 165,890 198,719 Accounts receivable, net 106,524 96,834 Contract assets 36,475 37,109 Inventories 258,984 246,735 Prepaid expenses and other current assets 35,030 39,316 Total current assets 791,892 764,532 Property, plant and equipment, net 111,098 113,789 Operating lease right-of-use assets 25,877 26,503 Intangible assets, net 7,189 8,832 Goodwill 214,964 214,964 Deferred income taxes 119,936 120,191 Other assets 3,749 2,766 Total assets $ 1,274,705 $ 1,251,577 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 49,529 $ 43,519 Accrued expenses and other current liabilities 47,412 55,195 Contract liabilities 57,675 64,986 Income taxes payable 622 2,086 Current portion of long-term debt — 26,496 Total current liabilities 155,238 192,282 Deferred income taxes 646 689 Long-term debt 225,441 249,702 Long-term operating lease liabilities 33,413 34,318 Other liabilities 3,771 3,816 Total liabilities 418,509 480,807 Total stockholders' equity 856,196 770,770 Total liabilities and stockholders' equity $ 1,274,705 $ 1,251,577 Note on Reconciliation Tables The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles ('GAAP'). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs. These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors' operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures. Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025)(in thousands)(unaudited) Non-GAAP Adjustments Share-Based Three months ended June 30, 2025 GAAP Compensation Amortization Other Non-GAAP Net sales $ 166,104 $ 166,104 Gross profit 68,727 1,991 70,718 Gross margin 41.4 % 42.6 % Operating expenses 56,357 (7,660 ) (821 ) (255 ) 47,621 Operating income 12,370 9,651 821 255 ^ 23,097 Net income 11,733 9,651 821 (670 ) ^ 21,535 _____________________________^ - See table below for additional details. Other Non-GAAP Adjustments (Q2 2025)(in thousands)(unaudited) Three months ended June 30, 2025 Other $ 255 Subtotal 255 Non-cash interest expense 292 Other (income) expense, net 653 Non-GAAP tax adjustment * (1,870 ) Total Other $ (670 ) _____________________________* - The 'with or without' method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q2 2025)(in thousands, except per share amounts)(unaudited) Three months ended June 30, 2025 GAAP Non-GAAP Numerator: Net income $ 11,733 $ 21,535 Interest expense associated with 2027 Convertible Senior Notes 125 113 Net income available to common shareholders $ 11,858 $ 21,648 Denominator: Basic weighted average shares outstanding 59,076 59,076 Effect of potentially dilutive share-based awards 257 257 Dilutive effect of 2027 Convertible Senior Notes (1) 904 685 Diluted weighted average shares outstanding 60,237 60,018 Net income per common share: Basic $ 0.20 $ 0.36 Diluted $ 0.20 $ 0.36 _____________________________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company's capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company's capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2024)(in thousands)(unaudited) Non-GAAP Adjustments Share-based Three months ended June 30, 2024 GAAP Compensation Amortization Other Non-GAAP Net sales $ 175,879 $ 175,879 Gross profit 75,390 1,445 76,835 Gross margin 42.9 % 43.7 % Operating expenses 58,668 (7,788 ) (1,825 ) (494 ) 48,561 Operating income 16,722 9,233 1,825 494 ^ 28,274 Net income 14,944 9,233 1,825 (570 ) ^ 25,432 _____________________________^ - See table below for additional details. Other Non-GAAP Adjustments (Q2 2024)(in thousands)(unaudited) Three months ended June 30, 2024 Changes in contingent consideration $ 494 Subtotal 494 Non-cash interest expense 316 Non-GAAP tax adjustment * (1,380 ) Total Other $ (570 ) _____________________________* - The 'with or without' method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q2 2024)(in thousands, except per share amounts)(unaudited) Three months ended June 30, 2024 GAAP Non-GAAP Numerator: Net income $ 14,944 $ 25,432 Interest expense associated with 2025 and 2027 Convertible Senior Notes 512 466 Net income available to common shareholders $ 15,456 $ 25,898 Denominator: Basic weighted average shares outstanding 56,277 56,277 Effect of potentially dilutive share-based awards 1,316 1,316 Dilutive effect of 2025 Convertible Senior Notes 1,104 1,104 Dilutive effect of 2027 Convertible Senior Notes (1) 1,788 1,354 Dilutive effect of 2029 Convertible Senior Notes 2,050 2,050 Diluted weighted average shares outstanding 62,535 62,101 Net income per common share: Basic $ 0.27 $ 0.45 Diluted $ 0.25 $ 0.42 _____________________________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company's capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company's capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025 and 2024)(in thousands)(unaudited) Three months ended Three months ended June 30, 2025 June 30, 2024 GAAP Net income $ 11,733 $ 14,944 Share-based compensation 9,651 9,233 Amortization 821 1,825 Changes in contingent consideration — 494 Interest (income) expense, net (905 ) (349 ) Other 908 — Income tax expense (benefit) 889 2,127 Non-GAAP Operating income $ 23,097 $ 28,274 Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2025)(in millions, except per share amounts)(unaudited) Non-GAAP Adjustments Guidance for the three months ending Share-based September 30, 2025 GAAP Compensation Amortization Other Non-GAAP Net sales $ 150 - $ 170 $ 150 - $ 170 Gross profit 59 - 70 2 — — 61 - 72 Gross margin 39 % - 41 % 40 % - 42 % Operating expenses 57 - 58 (8 ) (1 ) — 48 - 49 Operating income 2 - 12 10 1 — 13 - 24 Net income $ 3 - $ 13 10 1 (2 ) $ 12 - $ 21 Income per diluted common share $ 0.04 - $ 0.22 $ 0.20 - $ 0.35 Weighted average number of shares 60 60 60 60 Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q3 2025)(in millions)(unaudited) Guidance for the three months ending September 30, 2025 GAAP Net income $ 3 - $ 13 Share-based compensation 10 - 10 Amortization 1 - 1 Income tax expense (benefit) (1 ) - 1 Non-GAAP Operating income $ 13 - $ 24 Note: Amounts may not calculate precisely due to in to access your portfolio
Yahoo
06-08-2025
- Business
- Yahoo
Public Service Enterprise Group Inc (PEG) Q2 2025 Earnings Call Highlights: Strong Financial ...
Net Income: $1.17 per share for Q2 2025, up from $0.87 per share in Q2 2024. Non-GAAP Operating Earnings: $0.77 per share for Q2 2025, up from $0.63 per share in Q2 2024. PSE&G Net Income and Non-GAAP Operating Earnings: $332 million for Q2 2025, up from $302 million in Q2 2024. PSE&G Year-to-Date Net Income and Non-GAAP Operating Earnings: $878 million for the first half of 2025, up from $790 million in 2024. PSEG Power & Other Net Income: $253 million for Q2 2025, up from $132 million in Q2 2024. PSEG Power & Other Non-GAAP Operating Earnings: $52 million for Q2 2025, up from $11 million in Q2 2024. Nuclear Fleet Output: 7.5 terawatt hours for Q2 2025, up by 0.5 terawatt hours from Q2 2024. Liquidity: Total available liquidity of $3.6 billion as of June 30, 2025. Capital Investment Plan: $3.8 billion for 2025, with a 5-year plan of $21 billion to $24 billion through 2029. Non-GAAP Operating Earnings Guidance for 2025: $3.94 to $4.06 per share. 5-Year Capital Spending Plan: $22.5 billion to $26 billion, supporting a 5% to 7% non-GAAP operating earnings CAGR through 2029. Warning! GuruFocus has detected 9 Warning Signs with PEG. Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Public Service Enterprise Group Inc (NYSE:PEG) reported a significant increase in net income for the second quarter of 2025, with earnings per share rising to $1.17 from $0.87 in 2024. The company successfully executed a $3.8 billion regulated investment program, maintaining reliability and benefiting from regulatory recovery of over $3 billion of previously invested capital. Higher output from the nuclear generating fleet contributed positively, with the absence of a refueling outage at Hope Creek boosting performance. PSEG's infrastructure resilience and storm restoration efforts proved effective during intense weather conditions, restoring service to 99% of customers within 24 hours during a heat storm. The company reiterated its 5-year capital spending program of $21 billion to $24 billion, supporting a rate base CAGR of 6% to 7.5% through 2029, without the need to issue new equity or sell assets. Negative Points Higher electricity usage due to warmer-than-normal summer temperatures is expected to result in increased customer bills. The impact of last year's PJM capacity auction is translating into higher summer utility bills for customers. PSEG faces challenges with resource adequacy in New Jersey and across the PJM region, with growing demand and slow new supply response. The company anticipates higher distribution O&M costs for the full year compared to the prior year. Interest expenses rose due to higher levels of depreciable plant investment and long-term debt at higher interest rates. Q & A Highlights Q: Can you provide an update on the New Jersey Resource Adequacy conference and the future of generation build in New Jersey? A: The discussions are ongoing, and there hasn't been a significant legislative change yet. We are advocating for decisions on forecasts, reliability, affordability, and environmental policy goals. We aim to partner with the state to find solutions that align with these priorities. Q: With the increase in data center pipeline, can you update us on nuclear plant opportunities and data center interest? A: New Jersey continues to attract data centers and technology companies. There is ongoing interest in our assets in New Jersey and Pennsylvania, and discussions are continuing. The timing will depend on how these discussions progress. Q: How do you see the need for new generation in New Jersey impacting your ability to move forward with a multiyear contract by the end of this year? A: We aim to do something with the current administration, but we won't rush into a deal just for the sake of timing. The resource adequacy conversation recognizes the impact of decisions made by neighboring states, and it's a broader PJM issue, not just a New Jersey one. Q: What are the options if the New Jersey bill doesn't move forward, and would you consider a joint venture outside the regulated construct? A: We are not interested in returning to the merchant generation business. If the state doesn't take more control, we will rely on the PJM process, which currently isn't attracting new generation. The last baseload generation built in New Jersey was by our former merchant generation business. Q: Could you provide more details on the benefits of the recent federal tax legislation, particularly regarding bonus depreciation and the new tax credit on the uprate? A: The legislation preserved the nuclear production tax credit and introduced permanent bonus depreciation for qualified business property, which will improve cash flow. However, the bonus depreciation mainly affects the unregulated part of our business and is a marginal benefit. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
