Latest news with #operatingearnings
Reuters
5 days ago
- Business
- Reuters
Merck KGaA raises forex-adj profit guidance on drugs, lab gear
FRANKFURT Aug 7 (Reuters) - Germany's Merck KGaA ( opens new tab on Thursday raised its full-year operating earnings guidance, excluding the effect of harsh foreign exchange headwinds, citing a strong performance at its pharmaceuticals and lab equipment businesses. In a statement, Merck predicted organic growth in earnings before interest, tax, depreciation and amortisation, adjusted for one-off items, of 4% to 8%, where it had previously seen a range between 2% and 7%. Cost cuts were also a driver, it added. Hit by a weak U.S. dollar that is weighing on the value of Merck's overseas revenues, second-quarter adjusted EBITDA slipped 3% to 1.46 billion euros ($1.70 billion), below an analyst consensus of 1.52 billion posted on the company's website. The company, also a maker of materials for semiconductor manufacturing, narrowed its guidance range for organic sales growth to 2% to 5%, where it had previously seen a gain of 2% to 6%. Merck in April struck a deal to buy U.S. biotech company SpringWorks Therapeutics for $3.9 billion to add rare cancer therapies ahead of expected revenue losses linked to expiring drug patents. ($1 = 0.8568 euros)
Forbes
02-08-2025
- Business
- Forbes
Takeaways From Berkshire Hathaway's Second Quarter 2025 Earnings
Berkshire Hathaway (BRK/A, BRK/B) reported second-quarter earnings of almost $12.4 billion, well below the $30.3 billion in the same quarter of 2024, primarily due to a decline in stocks. Operating earnings, which remove the distortion from market changes and better reflect the firm's earnings power, fell by 4% for the quarter versus 2024. Per-share operating income decreased by 4% for the quarter, with no share repurchases over the past year. Warren Buffett leads Berkshire as CEO and Chairman with Greg Abel, Vice Chairman of Non-insurance, and Ajit Jain, Vice Chairman of Insurance. Berkshire announced an impairment to its investment in Kraft Heinz (KHC). The investment had been carried on Berkshire's books for more than its market value for some time, but some changes in circumstances caused the firm to take a pretax impairment loss of around $5.0 billion. This writedown is a non-cash charge, which reduces the 'carrying value of our investment in Kraft Heinz to fair value.' Buffett has long acknowledged that he paid too much for Kraft Heinz, especially in light of the increased competition in the branded food category. Berkshire's most significant business by operating earnings is insurance, followed by the manufacturing, service, and retailing segment. Insurance underwriting was the primary culprit behind the decline in operating earnings. Buffett noted at the annual meeting that Berkshire's insurance earnings were as good as they get in 2024, so doing less well this year is unsurprising. Other income also declined significantly, primarily due to accounting for foreign currency swings. Excluding insurance and the 'other' segment, operating earnings were 13% higher. Insurance The two most essential concepts in insurance investing are 'float' and underwriting profit. In simple terms, float is created for insurance companies because insurance premiums are paid before any claims are made by the insured. Insurance companies can invest the float, sometimes for years, before insurance losses are reimbursed. Berkshire's float at $174 billion is $3 billion higher than on December 31, 2024. In general, the value of float increases as yields rise since an insurance company can earn more when investing the cash. Float per share was $120,983, above the level at the end of 2024. Share repurchases were not an aid to the growth of float per share over the past year. The underwriting profit comparison versus the second quarter of 2024 was challenging, as Berkshire had achieved stellar insurance earnings last year. Notably, policies in force at GEICO grew in the second quarter. Berkshire has a history, unlike many insurance companies, of earning an underwriting profit, meaning that their float costs nothing and makes money in addition to allowing Berkshire to earn a profit from investing the float. Berkshire has three main insurance businesses: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. All three had a profitable underwriting quarter. An underwriting profit means the insurance premium exceeds all insurance claims and expenses. For example, GEICO had a combined ratio of 83.5% in the second quarter, which means that only 83.5 cents of every dollar in insurance premiums were spent on losses and expenses. A combined ratio over 100% indicates the insurance company has an underwriting loss. For the second quarter of 2025, investment income was 1% higher than in 2024, primarily due to lower taxes. Notably, policies in force grew relative to the first quarter of 2024. Railroad Berkshire owns one of the largest railroads in North America, the Burlington Northern Santa Fe (BNSF) railroad, which operates in the US and Canada. Railroad freight volume improved modestly, and operating earnings rose about 19% versus the same quarter last year. On a positive note, BNSF continued to see better productivity, which was the primary reason for the sharp rise in earnings. BNSF's trailing 12-month operating ratio, operating expenses divided by revenue, improved in the second quarter, which is proof of the productivity improvement. Buffett noted at the annual meeting that the 'railroad is not earning what it should,' but is' getting solved,' and the recent progress in reducing operating expenses supports his statement. Utilities and Energy BHE generally provides steady and growing earnings, as one would expect from what primarily consists of regulated utilities and pipeline companies. In addition, BHE typically produces significant tax credits due to its renewable electricity generation. For this reason, Berkshire focuses on after-tax earnings, which is 'how the energy businesses are managed and evaluated.' BHE was modestly negative on the headline numbers, with operating earnings falling by 2.6% over the same quarter in 2024. The lack of wildfire loss accruals in the second quarter of 2025 for the US utilities segment flattered the year-over-year comparisons. In the second quarter of 2024, BHE's US utilities group accrued $251 million for possible wildfire litigation losses. The decrease in earnings from the natural gas pipelines was primarily caused by higher interest expense, decreased margin, and lower other income. The other energy businesses saw a reduction in earnings, primarily from lower profits at Northern Powergrid. Manufacturing, Service and Retailing Pretax earnings rose by 4.7%. This segment consists of many diverse companies, so this analysis will focus on the best and worst performers and some themes when looking at this segment. Within the industrial segment, Marmon, 'which consists of more than 100 autonomous manufacturing and service businesses, internally aggregated into twelve groups, and includes equipment leasing for the rail, intermodal tank container and mobile crane industries,' saw a 6.9% increase in pretax earnings. The improvement was primarily due to 'reductions of liabilities accrued in connection with a prior business acquisition,' with operating results in the twelve groups mixed. Elsewhere in the manufacturing segment, the building and consumer products groups accounted for the decline in pretax income. Within building products, Clayton Homes had better revenues, but lower pretax income due to 'lower earnings from financial services.' Berkshire noted that their 'building products businesses are experiencing slowing customer demand and pricing pressures, attributable to prevailing general economic conditions and housing markets. The decline in consumer products earnings was primarily from Forest River, Garan, Jazwares, and Duracell. Brooks Sports and Fruit of the Loom had better earnings. The service group saw a 15.2% increase in pretax earnings for the quarter, primarily attributable to the aviation services, TTI, leasing businesses, and Charter Brokerage. The retailing group saw a turnaround in earnings growth, with a 11.9% increase in pretax earnings for the quarter. The most critical portion of the retailing segment is Berkshire Hathaway Automotive (BHA), which owns over 80 auto dealerships. BHA had 8% higher earnings compared to the second quarter of 2024. Pretax profits for the remainder of the retailing group rose by 23.9%, due primarily to 'higher earnings from Nebraska Furniture Mart and seasonality effects at See's Candies.' Pilot Travel Centers (PTC) is the largest operator of travel centers in North America, under the names Pilot and Flying J. On January 16, 2024, Berkshire acquired the final 20% and now owns 100% of the entity. PTC's pretax earnings decreased 40.2% due to 'lower gross sales margins and higher selling, general and administrative expenses.' McLane's pretax earnings were 23.9% higher thanks to 'an increase in the overall gross sales margin rate, partially offset by higher selling, general and administrative expenses.' Non-Controlled Businesses & Other This segment includes companies' profits that must be accounted for under the equity method due to the size of ownership and influence on management. The after-tax equity method earnings have Berkshire's proportionate share of profits attributable to its investments in Kraft Heinz (KHC), Occidental Petroleum (OXY), and Berkadia. Berkshire is Occidental Petroleum's largest shareholder, with a 28.1% stake. More about the reasons for the Occidental investment is here. The segment experienced a 97% decline in operating earnings for the quarter, primarily due to foreign currency exchange rate losses generated from bonds issued by Berkshire Hathaway and denominated in British Pounds, euros, and Japanese Yen. These foreign currency swings are not a concern as Berkshire has significant assets and earnings denominated in these foreign currencies. Investment gains from non-U.S. dollar investments generally offset some of these losses and vice versa, depending on currency exchange rates. Acquisition accounting expenses are also reflected in this segment. These expenses are created by amortizing intangible assets connected to companies purchased by Berkshire. Finally, the gain in other earnings includes 'Berkshire parent company investment income, corporate expenses, intercompany interest income on loans to operating subsidiaries when the related interest expense is included in earnings of the operating subsidiaries and unallocated income taxes.' Investment Portfolio Berkshire's insurance company investment portfolio is currently 52% publicly traded stocks, with 44% in cash. Berkshire was a net seller of $3 billion in publicly traded stocks in the first quarter, the eleventh straight quarter of Berkshire Hathaway's net sales of stocks. Berkshire bought $3.9 billion of stocks while selling $6.9 billion. The upcoming 13F filing on August 14 with the SEC will provide more specific buy and sell details, but some clues within the current filing point to more sales of Bank of America (BAC) and Apple (AAPL). Summary And Scorecard Berkshire's stock price outperformed the S&P 500 in the first quarter, falling by 8.8% versus a total return of +10.9% from the S&P 500. Year-to-date through August 1, Berkshire's price was +4.3%, while the S&P 500 had a total return of +6.9%. Short-term results are generally not meaningful for Berkshire since it is managed with a focus on increasing long-term value and not meeting quarterly hurdles. This ability to take advantage of time arbitrage has served the company and shareholders well over the years. The goal in looking at the results is to see if the segments are generally operating as expected and to consider Warren Buffett's capital allocation decisions. Previously, Buffett provided a handy blueprint for the goals of Berkshire's management. The first goal would be to 'increase operating earnings.' Secondly, success in the 'decrease shares outstanding' goal would boost operating earnings per share faster. Lastly, 'hope for an occasional big opportunity,' allowing for a sizable cash investment at an attractive expected return. This analysis will use Buffett's blueprint as a lens through which to evaluate how Berkshire is performing. Increase operating earnings: Trailing 12-month operating earnings were 8.0% higher than last year's same quarter. Buffett says that operating earnings are the 'most descriptive' way to view Berkshire since they remove the short-term volatility of market fluctuations in net earnings. Decrease shares outstanding: Particularly since 2018, a significant capital allocation decision has been made to increase share repurchases. When Berkshire Hathaway actively repurchases shares, it signals when Buffett believes its share price is below his intrinsic value estimate. If he is correct, the purchases are a value-creator for the remaining shareholders. Berkshire has stated that there would be no stock repurchases if it would cause cash levels to fall below $30 billion, so the firm's safety will not be compromised. Berkshire has not repurchased stock for the last five quarters. Until an announcement in mid-2018, Berkshire had only made repurchases when the stock traded at less than 1.2 times the price-to-book (P/B) ratio. While that constraint is now relaxed, it is still a good indicator of the general range when aggressive repurchases will likely be seen. Berkshire's price-to-book ratio remained elevated during the quarter, so share repurchases were suspended. Berkshire only intends to repurchase shares when the 'repurchase price is below Berkshire's intrinsic value, conservatively determined.' The price-to-book ratio remains a reasonable proxy for gauging Berkshire's intrinsic value. The stock repurchases in the first quarter of 2024 were likely done at around 1.4-1.5 times book value. Berkshire's stock reached almost 1.8 times book in May 2025, so a lack of repurchases in the quarter wasn't unexpected. With the recent decline in the shares, the valuation is nearing a level where repurchases might restart. Still, Warren Buffett's judgment about its intrinsic value versus other available uses of capital can differ from the simple price-to-book measure. A longer-term view of the positive impact of Berkshire's share repurchases is illuminating. Since the start of more aggressive share repurchases in 2018, Berkshire's operating earnings have grown at a 16.5% compound growth rate, while operating earnings per share have done 2.1 percentage points better at 18.6%. Eagle-eyed readers might notice that operating earnings growth oddly exceeded operating earnings per share growth over the last year. Berkshire issued some shares to purchase the remainder of Berkshire Hathaway Energy (BHE) in October 2024. Hope for an occasional big opportunity: Berkshire has a fortress balance sheet with cash and equivalents of over $339 billion. Cash as a percentage of Berkshire Hathaway's size is close to the highest on record, at 29.6%. This cash hoard provides flexibility to take advantage of opportunities, including repurchasing its stock if the price declines to attractive levels. Share repurchases had been off the table at the elevated valuations, but an additional lever for Buffett to create value might soon return. Shareholders should take comfort in knowing that the firm is well-positioned to withstand and emerge stronger from any tariff shocks, recession, or market downturn, thanks to its financial resilience, which enables it to capitalize on opportunities during a crisis. Buffett announced at the end of the annual meeting in May that he planned to step down from the CEO role at the end of the year. Greg Abel will assume the CEO role and have the 'final word on operations or capital deployment.' Notably, Buffett will remain Chairman to provide any needed guidance and intends to retain all his shares in the company. Some are attributing the relative weakness in Berkshire's share price to Buffett's announcement of leaving the CEO role, but the proximate cause likely lies elsewhere. Investors flocked to Berkshire stock as a haven when the odds of recession soared with the tariff threat. As the fear of recession receded, some investors re-allocated to other stocks, and Berkshire's valuation had become stretched in May. While Berkshire's quarterly operating earnings were down modestly year-over-year, there were some pleasant surprises in the data. Excluding insurance and the other segment, which is heavily impacted by foreign exchange volatility, operating profits grew 13% year-over-year. The BNSF railroad made significant progress in improving productivity to drive higher profits. The manufacturing, service, and retailing segment was surprisingly resilient with 12% year-over-year operating earnings growth. Lastly, one of Berkshire's crown jewels, GEICO, seems to be back in profitable growth mode with policies in force continuing to rise.
Yahoo
01-08-2025
- Business
- Yahoo
Dominion Energy Announces Second-Quarter Results
Second-quarter 2025 GAAP net income of $0.88 per share; operating earnings (non-GAAP) of $0.75 per share Company affirms its full-year 2025 operating EPS range of $3.28 to $3.52 per share and all financial guidance provided on its fourth quarter 2024 earnings call, including guidance related to earnings, credit, and dividend RICHMOND, Va., August 01, 2025--(BUSINESS WIRE)--Dominion Energy, Inc. (NYSE: D), today announced unaudited net income determined in accordance with Generally Accepted Accounting Principles (GAAP or reported earnings) for the three months ended June 30, 2025, of $760 million ($0.88 per share) compared with net income of $563 million ($0.64 per share) for the same period in 2024. Operating earnings (non-GAAP) for the three months ended June 30, 2025, were $649 million ($0.75 per share), compared to operating earnings of $567 million ($0.65 per share) for the same period in 2024. Differences between GAAP and operating earnings for the period include gains and losses on nuclear decommissioning trust funds, mark-to-market impact of economic hedging activities and other adjustments. Details of operating earnings as compared to prior periods, business segment results and detailed descriptions of items included in reported earnings but excluded from operating earnings can be found on Schedules 1, 2, 3, and 4 of this release. Guidance The company affirms its full-year 2025 operating earnings guidance range of $3.28 to $3.52 per share and all financial guidance provided on its fourth quarter 2024 earnings call, including guidance related to earnings, credit, and dividend. Webcast today The company will host its second-quarter 2025 earnings call at 10 a.m. ET on Friday, August 1, 2025. Management will discuss matters of interest to financial and other stakeholders including recent financial results. A live webcast of the conference call, including accompanying slides and other financial information, will be available on the investor information pages at For individuals who prefer to join via telephone, domestic callers should dial 1-800-343-5172 and international callers should dial 1-203-518-9856. The conference ID for the telephonic earnings call is DOMINION. Participants should dial in 10 to 15 minutes prior to the scheduled start time. A replay of the webcast will be available on the investor information pages by the end of the day August 1. A telephonic replay of the earnings call will be available beginning at about 1 p.m. ET on August 1. Domestic callers may access the recording by dialing 1-800-839-9409. International callers should dial 1-402-220-6088. The passcode for the replay is 17292. Important note to investors regarding operating, reported earnings Dominion Energy uses operating earnings (non-GAAP) as the primary performance measurement of its results for public communications with analysts and investors. Operating earnings are defined as reported earnings adjusted for certain items. Dominion Energy also uses operating earnings internally for budgeting, for reporting to the Board of Directors, for the company's incentive compensation plans, and for its targeted dividend payouts and other purposes. Dominion Energy management believes operating earnings provide a more meaningful representation of the company's fundamental earnings power. In providing its operating earnings guidance, the company notes that there could be differences between expected reported earnings and estimated operating earnings for matters such as, but not limited to, the mark-to-market impact of economic hedging activities, gains and losses on nuclear decommissioning trust funds, market-related impacts on pension and other postretirement benefit plans, acquisitions, divestitures, or extreme weather events and other natural disasters. At this time, Dominion Energy management is not able to estimate the aggregate impact of these items on future period reported earnings. Accordingly, Dominion Energy is not able to provide a corresponding GAAP equivalent for its operating earnings guidance. About Dominion Energy Dominion Energy (NYSE: D), headquartered in Richmond, Va., provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. The company is one of the nation's leading developers and operators of regulated offshore wind and solar power and the largest producer of carbon-free electricity in New England. The company's mission is to provide the reliable, affordable, and increasingly clean energy that powers its customers every day. Please visit to learn more. This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to various risks and uncertainties. Factors that could cause actual results to differ include, but are not limited to: unusual weather conditions and their effect on energy sales to customers and energy commodity prices; extreme weather events and other natural disasters; extraordinary external events, such as the pandemic health event resulting from COVID-19; federal, state and local legislative and regulatory developments; changes in or interpretations of federal and state tax laws and regulations; changes to regulated rates collected by Dominion Energy; risks associated with entities in which Dominion Energy shares ownership with third parties, such as a 50% noncontrolling interest in the Coastal Virginia Offshore Wind (CVOW) commercial project, including risks that result from lack of sole decision making authority, disputes that may arise between Dominion Energy and third-party participants and difficulties in exiting these arrangements; timing and receipt of regulatory approvals necessary for planned construction or expansion projects and compliance with conditions associated with such regulatory approvals; the inability to complete planned construction projects within time frames initially anticipated; risks and uncertainties that may impact the ability to construct the CVOW commercial project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers; risks and uncertainties associated with the timely receipt of future capital contributions, including optional capital contributions, if any, from the noncontrolling financing partner associated with the construction of the CVOW commercial project; changes to federal, state, and local environmental laws and regulations, including those related to climate change; cost of environmental strategy and compliance, including cost related to climate change; changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities; changes in operating, maintenance and construction costs; the availability of nuclear fuel, natural gas, purchased power or other materials utilized by Dominion Energy to provide electric generation, transmission and distribution and/or gas distribution services; additional competition in Dominion Energy's industries; changes in demand for Dominion Energy's services; risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers primarily in Loudoun County, Va., and the ability to obtain regulatory approvals, environmental and other permits to construct new facilities in a timely manner; the technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen, and/or other clean energy technologies; receipt of approvals for, and timing of, closing dates for acquisitions and divestitures; impacts of acquisitions, divestitures, transfers of assets by Dominion Energy to joint ventures, and retirements of assets based on asset portfolio reviews; adverse outcomes in litigation matters or regulatory proceedings; fluctuations in interest rates; changes in rating agency requirements or credit ratings and their effect on availability and cost of capital; and capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms; political and economic conditions, including tariffs, inflation and deflation. Other risk factors are detailed from time to time in Dominion Energy's quarterly reports on Form 10-Q and most recent annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. News Category: Corporate & Financial Consolidated Statements of Income (GAAP) Dominion Energy, Inc. Consolidated Statements of Income * Unaudited (GAAP Based) Three Months Ended Six Months Ended June 30, June 30, (millions, except per share amounts) 2025 2024 2025 2024 Operating Revenue $ 3,810 $ 3,486 $ 7,886 $ 7,118 Operating Expenses Electric fuel and other energy-related purchases 946 918 1,908 1,877 Purchased electric capacity 18 21 27 33 Purchased gas 43 44 190 164 Other operations and maintenance(1) 933 907 1,877 1,792 Depreciation and amortization 580 621 1,162 1,242 Other taxes 194 170 403 372 Total operating expenses 2,714 2,681 5,567 5,480 Income (loss) from operations 1,096 805 2,319 1,638 Other income (expense) 442 243 452 366 Interest and related charges 505 470 986 1,045 Income (loss) from continuing operations includingnoncontrolling interests before income tax expense (benefit) 1,033 578 1,785 959 Income tax expense (benefit) 220 112 260 208 Net Income (loss) from continuing operations 813 466 1,525 751 Net Income (loss) from discontinued operations 1 97 - 215 Net Income (loss) including noncontrolling interests 814 563 1,525 966 Noncontrolling interests 54 - 100 - Net Income (loss) attributable to Dominion Energy $ 760 $ 563 $ 1,425 $ 966 Amounts attributable to Dominion Energy Net Income (loss) from continuing operations $ 759 $ 466 $ 1,425 $ 751 Net Income (loss) from discontinued operations $ 1 $ 97 - 215 Net Income (loss) attributable to Dominion Energy $ 760 $ 563 $ 1,425 $ 966 Reported Income (loss) per common share from continuingoperations - diluted $ 0.88 $ 0.52 $ 1.65 $ 0.84 Reported Income (loss) per common share from discontinuedoperations - diluted - 0.12 - 0.26 Reported Income (loss) per common share - diluted $ 0.88 $ 0.64 $ 1.65 $ 1.10 Average shares outstanding, diluted 853.2 838.3 852.7 838.0 (1) Includes impairment of assets and other charges (benefits). *The notes contained in Dominion Energy's most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements. Amounts for 2024 through Q1 2025 reflect an immaterial revision related to income taxes on the Companies' nuclear decommissioning trusts. See 2nd quarter Form 10-Q for more information. Schedule 1 - Segment Reported and Operating EarningsUnaudited Three Months Ended June 30, Six Months Ended June 30, (millions, except per share amounts) 2025 2024 Change 2025 2024 Change REPORTED EARNINGS(1) $ 760 $ 563 $ 197 $ 1,425 $ 966 $ 459 Pre-tax loss (income)(2) (217 ) 35 (252 ) - 85 (85 ) Income tax(2) 106 (31 ) 137 27 1 26 Adjustments to reported earnings (111 ) 4 (115 ) 27 86 (59 ) OPERATING EARNINGS (non-GAAP) $ 649 $ 567 $ 82 $ 1,452 $ 1,052 $ 400 By segment: Dominion Energy Virginia $ 549 $ 485 $ 64 1,110 909 201 Dominion Energy South Carolina 109 69 40 261 149 112 Contracted Energy 47 100 (53 ) 156 222 (66 ) Corporate and Other (56 ) (87 ) 31 (75 ) (228 ) 153 $ 649 $ 567 $ 82 $ 1,452 $ 1,052 $ 400 Earnings Per Share (EPS)(3): REPORTED EARNINGS(1) $ 0.88 $ 0.64 $ 0.24 $ 1.65 $ 1.10 $ 0.55 Adjustments to reported earnings (after-tax) (0.13 ) 0.01 (0.14 ) 0.03 0.11 (0.08 ) OPERATING EARNINGS (non-GAAP) $ 0.75 $ 0.65 $ 0.10 $ 1.68 $ 1.21 $ 0.47 By segment: Dominion Energy Virginia $ 0.64 $ 0.58 $ 0.06 1.30 1.09 0.21 Dominion Energy South Carolina 0.13 0.08 0.05 0.31 0.18 0.13 Contracted Energy 0.05 0.12 (0.07 ) 0.18 0.26 (0.08 ) Corporate and Other (0.07 ) (0.13 ) 0.06 (0.11 ) (0.32 ) 0.21 $ 0.75 $ 0.65 $ 0.10 $ 1.68 $ 1.21 $ 0.47 Common Shares Outstanding (average, diluted) 853.2 838.3 852.7 838.0 (1) Determined in accordance with Generally Accepted Accounting Principles (GAAP). (2) Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings. Refer to Schedules 2 and 3 for details or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion Energy's website at (3) The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued, reflected in the Corporate and Other segment. The calculation of operating earnings per share for the three and six months ended June 30, 2024 excludes a deemed dividend of $9 million associated with the Company's repurchase of certain Series B preferred stock in June 2024. During each quarter of 2025 and 2024, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with Series C preferred stock of $11 million. Reported and operating earnings per share for the three and six months ended June 30, 2024 also includes the impact of preferred dividends associated with Series B preferred stock of $8 million and $17 million, respectively. See Forms 10-Q and 10-K for additional information. Amounts for 2024 through Q1 2025 reflect an immaterial revision related to income taxes on the Companies' nuclear decommissioning trusts. See 2nd quarter Form 10-Q for more information. Schedule 2 - Reconciliation of 2025 Reported Earnings to Operating Earnings2025 Earnings (Six Months Ended June 30, 2025) The adjustments included in 2025 reported earnings, but excluded from operating earnings, is primarily related to the following item: $157 million net market benefit primarily associated with $156 million from nuclear decommissioning trusts (NDT). (millions, except per share amounts) 1Q25 2Q25 3Q25 4Q25 YTD 2025(4) Reported earnings $ 665 $ 760 $ 1,425 Adjustments to reported earnings(1): Pre-tax loss (income) 217 (217 ) - Income tax (benefit) (79 ) 106 27 138 (111 ) - - 27 Operating earnings (non-GAAP) $ 803 $ 649 $ - $ - $ 1,452 Common shares outstanding (average, diluted) 852.2 853.2 852.7 Reported earnings per share(2) $ 0.77 $ 0.88 $ 1.65 Adjustments to reported earnings per share(2) 0.16 (0.13 ) 0.03 Operating earnings (non-GAAP) per share(2) $ 0.93 $ 0.75 $ - $ - $ 1.68 (1) Adjustments to reported earnings are reflected in the following table: 1Q25 2Q25 3Q25 4Q25 YTD 2025 ... Pre-tax loss (income): Net loss (gain) on NDT funds $ 133 $ (289 ) $ (156 ) Mark-to-market impact of economic hedging activities (22 ) 21 (1 ) Discontinued operations 1 2 3 DEV severe weather impacts 82 24 106 Regulated asset retirements and other charges 23 25 48 $ 217 $ (217 ) $ - $ - $ - Income tax expense (benefit): Tax effect of above adjustments to reported earnings(3) (79 ) 106 27 $ (79 ) $ 106 $ - $ - $ 27 (2) The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued, reflected in the Corporate and Other segment. During each quarter of 2025, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with Series C preferred stock of $11 million. See Forms 10-Q and 10-K for additional information. (3) Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, calculation of such amounts may be adjusted in connection with the calculation of the Company's year-to-date income tax provision based on its estimated annual effective tax rate. (4) YTD EPS may not equal sum of quarters due to share count difference. Amounts for 2024 through Q1 2025 reflect an immaterial revision related to income taxes on the Companies' nuclear decommissioning trusts. See 2nd quarter Form 10-Q for more information. Schedule 3 - Reconciliation of 2024 Reported Earnings to Operating Earnings2024 Earnings (Twelve months ended December 31, 2024) The $416 million pre-tax net loss of the adjustments included in 2024 reported earnings, but excluded from operating earnings, is primarily related to the following items: $11 million net market loss primarily associated with $372 million on pension and other postretirement benefit (OPEB) plans and $198 million in economic hedging activities offset by $559 million from nuclear decommissioning trusts (NDT). $228 million of net benefit from discontinued operations primarily related to a $247 million benefit associated with gas distribution operations (inclusive of a $130 million net loss on sales related to the East Ohio, Questar Gas and PSNC Transactions). $276 million of regulated asset retirements and other charges primarily associated with a $103 million charge for Virginia Power's share of costs not expected to be recovered from customers on the Coastal Virginia Offshore Wind (CVOW) Commercial project, a $58 million charge from the South Carolina electric rate case, $40 million in demolition and decommissioning costs at Virginia Power and a $30 million write off of certain early stage development costs for potential electric generation projects in Virginia no longer under consideration. $229 million of nonregulated asset impairments and other charges related to a $122 million ARO revision at Millstone nuclear power station, $60 million of impairment charges associated with certain nonregulated renewable natural gas facilities and a $47 million charge in connection with the settlement of an agreement. (millions, except per share amounts) 1Q24 2Q24 3Q24 4Q24 YTD 2024(5) Reported earnings $ 403 $ 563 $ 934 $ 134 $ 2,034 Adjustments to reported earnings(1): Pre-tax loss (income) 50 35 (150 ) 481 416 Income tax (benefit) 32 (31 ) 52 (111 ) (58 ) 82 4 (98 ) 370 358 Operating earnings (non-GAAP) $ 485 $ 567 $ 836 $ 504 $ 2,392 Common shares outstanding (average, diluted) 837.6 838.3 839.3 842.2 839.4 Reported earnings per share(2) $ 0.46 $ 0.64 $ 1.09 $ 0.14 $ 2.33 Adjustments to reported earnings per share(2) 0.09 0.01 (0.11 ) 0.44 0.44 Operating earnings (non-GAAP) per share(2) $ 0.55 $ 0.65 $ 0.98 $ 0.58 $ 2.77 (1) Adjustments to reported earnings are reflected in the following table: 1Q24 2Q24 3Q24 4Q24 YTD 2024 Pre-tax loss (income): Net loss (gain) on NDT funds $ (265 ) $ (83 ) $ (167 ) $ (44 ) $ (559 ) Mark-to-market impact of economic hedging activities 108 104 (137 ) 123 198 Mark-to-market of pension and OPEB plans 320 16 (6 ) 42 372 Discontinued operations (172 ) (83 ) 24 3 (228 ) Business review costs 29 15 7 54 105 Net loss (gain) on real estate dispositions - 17 1 5 23 Regulated asset retirements and other charges (17 ) 16 101 176 276 Nonregulated asset impairments and other charges 47 33 27 122 229 $ 50 $ 35 $ (150 ) $ 481 $ 416 Income tax expense (benefit): Tax effect of above adjustments to reported earnings(3) 541 (55 ) 402 (111 ) 777 Deferred taxes associated with sale of gas distributionoperations(4) (509 ) 24 (350 ) - (835 ) $ 32 $ (31 ) $ 52 $ (111 ) $ (58 ) (2) The calculation of reported and operating earnings per share on a consolidated basis utilizes shares outstanding on a diluted basis with all dilutive impacts, primarily consisting of potential shares which had not yet been issued, reflected in the Corporate and Other segment. The calculation of operating earnings per share for the three months ended June 30, 2024 and for the three and twelve months ended December 31, 2024 excludes a deemed dividend of $9 million, $1 million and $10 million, respectively, associated with the Company's repurchase of certain Series B preferred stock. During each quarter of 2024, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with Series B preferred stock of $9 million, $8 million, $4 million and $3 million, respectively. During each quarter of 2024, the calculation of reported and operating earnings per share includes the impact of preferred dividends associated with Series C preferred stock of $11 million. See Forms 10-Q and 10-K for additional information. (3) Excludes a $578 million tax benefit on non-deductible goodwill associated with the sale of gas distribution operations. Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. For interim reporting purposes, calculation of such amounts may be adjusted in connection with the calculation of the Company's year-to-date income tax provision based on its estimated annual effective tax rate. (4) Represents the reversal of previously established deferred taxes related to the basis in the stock of the gas distribution operations. (5) YTD EPS may not equal sum of quarters due to share count differences. Amounts for 2024 through Q1 2025 reflect an immaterial revision related to income taxes on the Companies' nuclear decommissioning trusts. See 2nd quarter Form 10-Q for more information. Schedule 4 - Reconciliation of 2Q25 Earnings to 2Q24Preliminary, Unaudited Three Months Ended Six Months Ended June 30, June 30, 2025 vs. 2024 2025 vs. 2024 (millions, except per share amounts) Increase / (Decrease) Increase / (Decrease) Reconciling Items Amount EPS Amount EPS Change in reported earnings (GAAP) $ 197 $ 0.24 $ 459 $ 0.55 Change in Pre-tax loss (income)(1) (252 ) (0.30 ) (85 ) (0.11 ) Change in Income tax(1) 137 0.16 26 0.03 Adjustments to reported earnings $ (115 ) $ (0.14 ) $ (59 ) $ (0.08 ) Change in consolidated operating earnings (non-GAAP) $ 82 $ 0.10 $ 400 $ 0.47 Dominion Energy Virginia Weather $ (12 ) $ (0.01 ) $ 42 $ 0.05 Customer usage and other factors 52 0.06 77 0.09 Customer-elected rate impacts - - (7 ) (0.01 ) Rider equity return 143 0.17 276 0.33 Storm damage and restoration costs (2 ) - 6 0.01 Planned outage costs (2 ) - 4 - Nuclear production tax credit 2 - 19 0.02 Sale of noncontrolling interest (80 ) (0.10 ) (148 ) (0.18 ) Depreciation and amortization (7 ) (0.01 ) (12 ) (0.01 ) Interest expense, net (28 ) (0.03 ) (40 ) (0.05 ) Other (2 ) (0.01 ) (16 ) (0.02 ) Share dilution - (0.01 ) - (0.02 ) Change in contribution to operating earnings $ 64 $ 0.06 $ 201 $ 0.21 Dominion Energy South Carolina Weather $ (3 ) $ - $ 17 $ 0.02 Customer usage and other factors 11 0.01 15 0.02 Customer-elected rate impacts 2 - 7 0.01 Base & RSA rate case impacts 40 0.05 84 0.10 Depreciation and amortization (4 ) - (8 ) (0.01 ) Interest expense, net (2 ) - (4 ) - Other (4 ) - 1 - Share dilution - (0.01 ) - (0.01 ) Change in contribution to operating earnings $ 40 $ 0.05 $ 112 $ 0.13 Contracted Energy Margin $ 8 $ 0.01 $ (4 ) $ - Planned Millstone outages(2) (62 ) (0.07 ) (64 ) (0.08 ) Unplanned Millstone outages(2) (2 ) - 10 0.01 Depreciation and amortization (2 ) - (5 ) - Interest expense, net 3 - 3 - Other 2 (0.01 ) (6 ) (0.01 ) Share dilution - - - - Change in contribution to operating earnings $ (53 ) $ (0.07 ) $ (66 ) $ (0.08 ) Corporate and Other Interest expense, net $ 23 $ 0.03 $ 94 $ 0.11 Equity method investments - - (5 ) (0.01 ) Pension and other postretirement benefit plans (15 ) (0.02 ) (23 ) (0.03 ) Corporate service company costs 14 0.02 27 0.03 Other 9 0.02 60 0.09 Share dilution - 0.01 - 0.02 Change in contribution to operating earnings $ 31 $ 0.06 $ 153 $ 0.21 Change in consolidated operating earnings (non-GAAP) $ 82 $ 0.10 $ 400 $ 0.47 Change in adjustments included in reported earnings(1) $ 115 $ 0.14 $ 59 $ 0.08 Change in consolidated reported earnings $ 197 $ 0.24 $ 459 $ 0.55 (1) Adjustments to reported earnings are included in Corporate and Other segment reported GAAP earnings. Refer to Schedules 2 and 3 for details, or find "GAAP Reconciliation" in the Earnings Release Kit on Dominion Energy's website at (2) Includes earnings impact from outage costs and lower energy margins. NOTE: Figures may not sum due to rounding. Amounts for 2024 through Q1 2025 reflect an immaterial revision related to income taxes on the Companies' nuclear decommissioning trusts. See 2nd quarter Form 10-Q for more information. View source version on Contacts For further information: Media: Ryan Frazier, (804) 836-2083 or Investor Relations: David McFarland, (804) 819-2438 or 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
Globe and Mail
23-07-2025
- Business
- Globe and Mail
General Dynamics' Q2 Earnings & Revenues Beat Estimates, Improve Y/Y
General Dynamics Corporation GD reported second-quarter 2025 earnings per share (EPS) of $3.74, which beat the Zacks Consensus Estimate of $3.59 by 4.2%. The bottom line also increased 14.7% from $3.26 recorded in the year-ago quarter. The year-over-year bottom-line appreciation can be attributed to revenue growth as well as an improvement in operating earnings. Total Revenues of GD Revenues of $13.04 billion beat the Zacks Consensus Estimate of $12.35 billion by 5.6%. The top line also improved 8.9% from the prior-year figure. The year-over-year improvement can be attributed to increased revenues from all of GD's business segments, except Combat Systems. GD's Segmental Performance Aerospace: The segment reported revenues of $3.06 billion, up 4.1% year over year. Operating earnings of $403 million improved 26.3% year over year. Marine Systems: This segment's revenues surged 22.2% from the year-ago quarter's level to $4.22 billion. Operating earnings of $291 million improved 18.8% year over year. Technologies: Revenues from this segment improved 5.5% year over year to $3.48 billion. Operating earnings totaled $332 million, which improved 3.8% year over year. Combat Systems: The segmental top line of $2.28 billion slipped 0.2% from the year-ago quarter's level. Operating earnings improved 3.54% year over year to $324 million. Operational Highlights of GD Operating earnings totaled $1.31 billion, up 12.9% from the year-ago quarter's $1.04 billion. Operating costs and expenses increased 8.5% year over year to $11.74 billion. Interest expenses increased 4.8% year over year to $88 million. GD's Backlog General Dynamics recorded a total backlog of $103.68 billion, much higher than the first-quarter 2025 level of $88.66 billion. The funded backlog at the end of the quarter was $83.88 billion. Our model projected a backlog of $88.28 billion for the second quarter. Financial Condition of GD As of June 29, 2025, cash and cash equivalents totaled $1.52 billion compared with $1.70 billion as of Dec. 31, 2024. The long-term debt as of the same date was $7.51 billion, higher than the 2024-end debt level of $7.26 billion. During the first six months of 2025, cash generated by operating activities totaled $1.45 billion compared with $0.54 billion in the year-ago period. GD's Zacks Rank General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Recent Defense Releases Lockheed Martin Corporation LMT reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11. Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion in the year-ago quarter. Northrop Grumman Corporation NOC reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%. NOC's total sales of $10.35 billion beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% from $10.22 billion reported in the year-ago quarter. RTX Corporation 's RTX second-quarter 2025 adjusted earnings per share (EPS) of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter's level of $1.41, driven by growth in adjusted operating profit. RTX's second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis Report
Reuters
18-07-2025
- Automotive
- Reuters
Nokian Tyres profit grows more than expected, as price hikes offset costs
July 18 (Reuters) - Finland's Nokian Tyres ( opens new tab reported better than expected operating earnings for the second quarter on Friday, aided by lower supply chain costs, and sent its shares soaring 13% in early afternoon trading. The tyre maker's comparable operating profit rose 31% year-on-year to 26.3 million euros ($30.6 million) in the April-June quarter, while analysts polled by it had forecast 23 million euros on average. In April, Nokian said it would review its cost base after it booked a much wider than expected operating loss for the first three months of 2025. "It is encouraging to see early positive results from these actions", CEO Paolo Pompei said in Friday's earnings statement, adding that Nokian had adjusted its prices to offset increased raw material costs. The group's net sales rose 6.9% to 343.7 million euros in the quarter. That lagged analysts' mean forecast of 354.2 million. Uncertainty over U.S. tariffs coupled with weak car demand and increasing competition from Chinese automakers has put a brake on the European auto industry, resulting in cost reductions and supply chain adjustments across the board. Earlier in July, German auto part maker Continental ( opens new tab warned about a tariff impact to its second-quarter sales, having cut its forecast for its core tyre business.
