Agnico Eagle nearly triples down on falling micro-cap gold stock
Fury Gold Mines is a Canadian-focused exploration company advancing a multi-million-ounce portfolio in Quebec and Nunavut
The Canadian micro-cap gold stock has given back 1.82 per cent year-over-year and 88.7 per cent since October 2020
Agnico Eagle Mines (TSX:AEM) increased its stake in micro-cap stock Fury Gold Mines (TSX:FURY) by 173 per cent, investing C$4,305,920 through a non-brokered private placement.
Fury will allocate C$3.9 million to exploration under its 2025 program at the over 1.2-million-ounce Committee Bay gold project in Nunavut – details are set to hit the wire in a few weeks – with the remaining proceeds available for general corporate purposes and other projects in the company's multi-million-ounce portfolio.
According to Tuesday's news release, Agnico Eagle's investment will grow its ownership position from 2.3 per cent to 6.3 per cent of Fury Gold's issued shares, rising to 9.9 per cent on a partially diluted basis.
The investment grants Agnico Eagle the rights to nominate one person to Fury Gold's board and increase and maintain its investment up to 9.9 per cent of issued shares.
All shares are subject to a four-month resale restriction in Canada. Leadership insights
'We are pleased to have Agnico Eagle, one of Canada's premier companies and a top global gold producer, make an additional investment that will permit Fury to advance our understanding of the exploration potential at our Committee Bay project in Nunavut,' Tim Clark, Fury Gold Mines' chief executive officer, said in a statement. 'We believe the Arctic is likely to become increasingly important for future mineral exploration, and with this in mind, we are excited to accelerate our plans to build on past drilling success. As a reminder to investors, Fury retains full ownership of this exceptional project, which spans a 300-km greenstone belt—an impressive land package that is unique for a junior exploration company.' About Fury Gold Mines
Fury Gold Mines is a Canadian-focused exploration company advancing a multi-million-ounce portfolio in Quebec and Nunavut.
Fury Gold stock (TSX:FURY) is up by 3.85 per cent on the news trading at C$0.54 as of 10:09 am ET. The stock has given back 1.82 per cent year-over-year and 88.7 per cent since October 2020.
Join the discussion: Find out what everybody's saying about this Canadian micro-cap gold stock on the Fury Gold Mines Ltd. Bullboard and check out Stockhouse's stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
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V2X (VVX) Q2 2025 Earnings Call Transcript
DATE Monday, August 4, 2025 at 8:30 p.m. ET CALL PARTICIPANTS President and Chief Executive Officer — Jeremy Wensinger Senior Vice President and Chief Financial Officer — Shawn Mural Moderator — Mike Smith Need a quote from a Motley Fool analyst? Email pr@ TAKEAWAYS Revenue: $1.08 billion for Q2 2025, reflecting new program growth and partial offset from sunsetting contracts. Adjusted EBITDA: $82 million, representing a 7.6% adjusted EBITDA margin and a 14% increase year over year, driven by the early conclusion of a nonrecurring contractual commitment. Adjusted EPS: $1.33, a 59% increase year over year in adjusted diluted EPS. Diluted EPS: $0.70 (GAAP), based on 31.9 million weighted average shares. Interest expense: $20.6 million, with cash interest expense of $19.1 million improving 29% year over year due to repricing and debt paydown. Adjusted operating cash flow: $58.3 million, highlighting strong free cash flow with low capital expenditures. Total backlog: $11.3 billion, excluding the $4.3 billion T-6 award, CENTCOM, and INDOPACOM extensions. Funded backlog: $2.3 billion, supporting 2025 commitments. Share repurchase authorization: $100 million approved as part of the capital allocation strategy. Raised adjusted EPS guidance: Guidance increased due to realized interest expense savings and tax benefits; revenue, EBITDA, and cash flow guidance reaffirmed. Three-year pipeline: Management reported a three-year pipeline valued at over $50 billion, now balanced with more fixed-price and outcome-based contracts. T-6 award: $4.3 billion, nine-year T-6 award; this contract uses commercial-based supply chain management for multi-service pilot training across more than 700 aircraft, with no impact to 2025 financials and transition period ending early 2026. Recent large awards: Army's largest warfighter training program reached full operational capability in July, and F-16 foreign military sales cited as expanding international opportunities. Hiring activity: Nearly 1,200 employees hired in the last 30 days to support major program ramps. Book to bill: 0.5, with net bookings of $517 million; management expects seasonally lumpy awards and targets trailing twelve-month (TTM) book to bill over one. SUMMARY V2X (NYSE:VVX) raised adjusted EPS guidance for 2025, citing realized interest expense savings and tax benefits, while reaffirming revenue, EBITDA, and cash flow targets. Management emphasized a shift toward a pipeline with greater fixed-price and outcome-based contract concentration, supported by the T-6 and F-16 awards. CFO Shawn Mural clarified that total backlog at the end of Q2 2025 excludes several major awards and extensions, including the $4.3 billion T-6 award and recent CENTCOM and INDOPACOM extensions, which may further strengthen reported metrics once reflected. Capital allocation priorities include strategic M&A, debt reduction, internal investment, and a newly authorized $100 million share repurchase plan, all within a targeted 2--3x net leverage ratio range. CEO Wensinger said, "Our strategy is clear, and it is evident to me that our teams are delivering on mission readiness outcomes," referring to strategic clarity and operational execution. CFO Mural explained T-6 margin contribution will begin below company average and is expected to rise to average levels over 18--24 months. The recently awarded T-6 contract was one of five billion-dollar-plus pursuits highlighted previously, indicating sequential progress on key pipeline goals. Foreign military sales and international demand, supported by the recent F-16 award, are becoming a more material source of margin enhancement and global expansion. Management confirmed that delays in the Asia Pacific region were due to contracting exercise postponements, not lost opportunities. Book to bill was below one for both Q2 2025 and year-to-date 2025, but management reiterated its expectation of reaching or exceeding a book to bill ratio of one by year-end 2025, contingent on several "binary" awards in the pipeline. Fixed-price contract concentration is increasing through both customer conversions and selective new bids, aligning with V2X's stated operational strengths. No disruptions were reported from the current government budget cycle or contract protest activity; cadence of new awards has met internal expectations to date. INDUSTRY GLOSSARY Fixed-price contract: A contract type in which the service provider agrees to deliver specified services or products at a set price, regardless of incurred costs, shifting performance and cost risk to the contractor. Outcome-based contract: An agreement structured so payment depends on achieving predefined customer outcomes or performance metrics rather than strictly on inputs or cost reimbursement. ID/IQ (Indefinite delivery, indefinite quantity): A contract that provides for an indefinite quantity of supplies or services during a fixed period, allowing for multiple task orders but with unspecified timing and amounts at contract award. Book to bill: The ratio of the value of new orders received (bookings) to revenue billed within a given period, used to assess future business momentum. FOC (Full operational capability): The point at which a program or system is fully available to consumers and can perform all intended functions as required in contracts. FMS (Foreign military sales): U.S. government program for selling defense services and equipment to allied foreign governments. Full Conference Call Transcript Mike Smith: Thank you. Good afternoon, everyone. Welcome to the V2X, Inc. Second Quarter 2025 Earnings Conference Call. Joining us today are Jeremy Wensinger, President and Chief Executive Officer, and Shawn Mural, Senior Vice President and Chief Financial Officer. Slides for today's presentation are available on the Investor Relations section of our website Please turn to slide two. During today's presentation, management will be making forward-looking statements pursuant to the safe harbor provisions of the federal securities laws. Please review our safe harbor statements in our press release and presentation materials for a description of some of the factors that may cause actual results to differ materially from the results contemplated by these forward-looking statements. The company assumes no obligation to update its forward-looking statements. In addition, in today's remarks, we will refer to certain non-GAAP financial measures because management believes such measures are useful to investors. You can find a reconciliation of these measures to the most comparable measure calculated and presented in accordance with GAAP on our slide presentation and in our earnings release filed with the SEC, both of which are available on the Investor Relations section of our website. At this time, I'd like to turn the call over to Jeremy. Jeremy Wensinger: Thank you, Mike, and good afternoon, everyone. Thank you for joining us today. I'd like to start by thanking our entire team for their hard work, dedication, and commitment to our customer's mission. Please turn to slide three. During today's call, I'm going to recap our second quarter results, talk about our strategic execution, and why we are optimistic about our future. Starting with the second quarter results, revenue is $1.08 billion. Profitability was strong with adjusted EBITDA of $82 million or 7.6% margin and adjusted net income of $42 million. Adjusted EPS was $1.33, increasing 59% year over year. Our financial performance, cash generation, and balance sheet strength are providing significant flexibility and optionality for V2X, Inc. We are now positioned to enhance value creation through an active capital allocation strategy. As part of this strategy, we recently established a $100 million share repurchase authorization, which Shawn will discuss in more detail shortly. Given our year-to-date performance, we remain confident in our ability to achieve our 2025 commitments and are seeing additional positive uplift to earnings per share. As such, we are increasing our adjusted EPS guidance and reaffirming our revenue, adjusted EBITDA, and cash flow guidance. Reflecting on our recent operational performance, we are delivering on our commitments, executing on our strategy, and bringing innovation and new approaches to rapidly deploy solutions for improved readiness. Our dedication to execution excellence was demonstrated during my recent visits with our customers. I witnessed firsthand the outcomes that our team is delivering. It is seamless support for the mission. Our customers have acknowledged our performance, and my visit reaffirms our strategy for growth. Our strategy is clear, and it is evident to me that our teams are delivering on mission readiness outcomes. The takeaway from my engagements reinforces what V2X, Inc. is bringing in performance, reliability, and mission readiness. This is also reflected in our robust pipeline, which reflects the strategy we have put in place. Finally, our recent awards are validation of our customer intimacy and the commitment by the team to the execution of our strategy. Please turn to slide four. We are making excellent progress executing our strategic growth initiative. Starting with optimizing the core, we are delivering proven performance excellence to strengthen the base. This is reflected by our ability to transition and support critical missions, such as recently reaching full operational capability on the Army's largest training program. This program will ensure the delivery of training solutions to Army warfighters worldwide by infusing cutting-edge innovations to adapt to an ever-evolving mission. Next, growth and adjacencies. This is best described as a demand pull on our customers' recognition of our ability to deliver. An exemplar of this is our growing presence in the US Space Force at Ascension Island, which is a key Space Force tracking and instrumentation station. Another example, foreign military sales continue to represent a large and growing opportunity with international customers seeking out our performance, solutions, agility, and value that V2X, Inc. is delivering for our customers. This was evidenced by the recent award of the Iraq F-16 program. Moving to extended offerings. This is demonstrated by our collaboration with Bell Helicopter to support the training of a new generation of Army aviators. This pursuit is notable as it combines our capabilities in training, operational readiness, with platform renewal. It also reflects an extension of a new customer in the aerospace domain. Lastly, strategic investments refer to the investments we are making in talent, capabilities that differentiate our offerings, and the optimization of our tools and processes to deliver on our commitments and drive growth. The combination of these initiatives was exemplified firsthand with the $4.3 billion nine-year T-6 award. This is fundamentally a V2X, Inc. approach to customer engagement and demonstration of past performance as a differentiator for our customer. The T-6 aircraft is widely used in a multi-service aviation training program that is critical to ensure new pilots are ready. This award is an example of the strategy we are executing, and it is an honor to have been selected to help ensure that every single pilot in the US Air Force, Navy, and Army will be trained and ready for their next mission. V2X, Inc. will use commercial-based approaches to provide full-spectrum supply chain management solutions to enable this essential training mission. Over 700 aircraft. Additionally, we believe the fixed-price contract will allow V2X, Inc. to leverage the power of data and decades of operational expertise to deliver enhanced readiness for our customer. In summary, we are executing these initiatives today. They are creating differentiation, driving value, and fueling opportunities in the form of a robust pipeline. Please turn to slide five. As mentioned, these initiatives on the prior page are driving significant opportunities for V2X, Inc., which is reflective in our three-year pipeline valued at over $50 billion. This pipeline reflects large franchise programs and opportunities to deliver solutions across all domains. It also reflects a greater percentage of fixed-price or outcome-based contracts, which is at the heart of the V2X, Inc. execution excellence value proposition. We see this as beneficial in proving out our operational excellence and institutional knowledge from successfully supporting global missions at scale for over seventy years. Lastly, while the pipeline of opportunity focuses on leveraging all of V2X, Inc.'s capability, it also reflects a greater balance of platform modernization and renewal capabilities. We are optimistic in our ability to capture these opportunities, which we believe is supported by the progress we have demonstrated so far in converting key pursuits into long-term programs. V2X, Inc. is capitalizing on our large and growing market opportunities while investing to be a leader in data-enabled mission solutions across all domains. Now I'd like to turn the call over to Shawn for a review of the financials. Shawn Mural: Thank you, Jeremy. Please turn to Slide six. We are exceptionally pleased with our second quarter and year-to-date results. Our results continue to demonstrate the focus on disciplined execution and the strategic positions of the business. We are proud of the accomplishments and excited about the future. Revenue in the second quarter was $1.078 billion. This reflects the expected growth in the WTRS and F5 programs as well as the sunsetting of the KC-10, T1A, and the reaction of a task order in The Middle East. Adjusted EBITDA in the quarter was $82.4 million, increasing 14% year over year and delivering a margin of 7.6%. The strong EBITDA performance was driven primarily by the conclusion of a nonrecurring contractual commitment, which was contemplated in our full-year guidance but occurred earlier than anticipated. Interest expense in the second quarter was $20.6 million. Cash interest expense was $19.1 million, improving $7.8 million or 29% year over year, driven by our successful repricing activities, debt paydown, and cash generation. Net income for the quarter was $22.4 million. Adjusted net income was $42.3 million, increasing 61% year over year. Second quarter diluted EPS was $0.70 based on 31.9 million weighted average shares. Adjusted diluted EPS in the quarter was $1.33, increasing approximately 59% from the prior year. The ability to generate strong free cash flow with low capital expenditures remains a strength of the business. This was demonstrated in the second quarter with adjusted operating cash flow of $58.3 million. Total backlog at the end of the second quarter was $11.3 billion. Funded backlog was $2.3 billion, which provides additional confidence in our ability to meet our 2025 commitments. It's important to note that at the current time, total backlog does not reflect a $4.3 billion T-6 award. It also does not include any value associated with the recent CENTCOM and INDOPACOM extensions. Please turn to slide seven, where I'll discuss our year-to-date results. Year-to-date revenue was $2.094 billion, up slightly reflecting new program starts and partially offset by sunsetting programs. Adjusted EBITDA for the first half of the year was $149.4 million, increasing approximately 6% year over year with a margin of 7.1%. Interest expense through June was $40.3 million. Cash interest expense was $37.3 million, improving approximately $15 million compared to 2024. Year-to-date net income was $30.5 million. Adjusted net income was $73.8 million, increasing 34% year over year. Diluted EPS in the first half was $0.96. Adjusted diluted EPS was $2.31, up 34% compared to last year. Year-to-date net cash used by operating activities was $66.9 million. Adjusted net cash used by operating activities was $59.8 million, reflecting our normal seasonal patterns. Please turn to Slide eight. We have made significant progress improving our balance sheet, leverage ratio, and capital structure. This successful evolution provides flexibility in how we can allocate capital and accelerate value creation. We thought it important to highlight how we are thinking about things as we move forward. Our capital allocation strategy centers on three key pillars: Generate, deploy, and maintain. As it relates to the first pillar, we believe part of our value proposition is the company's ability to deliver strong cash conversion. Our target is to generate strong adjusted net income to cash conversion that you can see in our trailing twelve-month performance. This cash generation facilitates optionality as it relates to our second component, deploy. There are four methods by which we plan to deploy capital. The first is to strategically acquire complementary capabilities, access to new channels, and solutions that accelerate our growth strategy. The second is increasing shareholder value by executing the recently authorized $100 million share repurchase plan. The third avenue consists of internal investments that would further advance our position as a differentiated provider of solutions. The Fourth Avenue is utilizing cash to further reduce debt via accelerating payments of our term loans. The deployment of capital in these areas is connected to the third component of our strategy, maintain, which is to deploy capital while maintaining a target net leverage ratio of approximately two to three times. We have started the next phase of our capital allocation journey and believe this strategy will yield strong returns for our shareholders. Please turn to Slide nine. Jeremy Wensinger: We are pleased with our performance. As such, the company is reaffirming revenue, adjusted EBITDA, and cash flow guidance for 2025 and increasing its adjusted EPS guidance due to previously executed debt refinancing and tax benefits. At the midpoint, this reflects revenue of $4.4 billion, adjusted EBITDA of $313 million, adjusted EPS of $4.8. In summary, we are continuing to execute and believe V2X, Inc. is well-positioned to meet our customers' critical mission requirements. Jeremy, I'll throw it back to you for some closing comments and thoughts. Jeremy Wensinger: Thank you, Shawn. The team's performance has me excited. We are delivering on our commitments and executing with excellence. Our robust pipeline reflects the strategy of the company going forward, and our awards are validating that strategy. Our strategic intent is nothing more than mission excellence. My team is aligned and executing to our global strategy. It is an honor to be at V2X, Inc. Now let's open it up for questions. Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, At this time, we will pause momentarily to assemble our roster. The first question today comes from Ken Herbert with RBC Capital Markets. Please go ahead. Ken Herbert: Yeah. Hey, Jeremy and Shawn and Mike. Nice quarter. Jeremy Wensinger: Thanks, Ken. Thank you, Ken. Ken Herbert: Hey, Jeremy, maybe just to kick off for Shawn, how do we think about the T-6 contract in terms of sort of incremental revenues this year and next year in particular? And how does that ramp and how does that scale up? Shawn Mural: Yeah. Hey. Thanks, Ken. Yeah. We're very excited about the award that was announced last week. We think it's a franchise that, you know, the team clearly demonstrated the execution and strategy that Jeremy has laid out for the company. From a revenue standpoint and impact, you know, so we began transition. I expect no impact to the financials this year. That transition period goes until early 2026. And then I think when we look at the historicals, the program has been somewhere between $203 million to $1 billion a year. Is kinda how we're thinking about it going forward. But, obviously, you know, that's subject to a lot of variables, funding profiles, we've gotta get through the protest period, that sort of stuff. So we'll see how things play out. Jeremy Wensinger: Kevin, hey, Jeremy. I would add to his comments just that this team did exactly what we have laid out in terms of strategy. I could not be happier with that team and what they've been able to accomplish. And I think their past performance was the driver here. And so we're excited about the opportunity to stand the program up. But, you know, it really goes down to the past performance this team has been able to demonstrate. And I think the customer recognized that, and we're just honored to be a part of it. Ken Herbert: That's great. And the full-year guide implies sort of a bit of a step down in lease off the second quarter into the second half EBITDA margins. Was there anything in particular in the second quarter? Or maybe how do we think about sort of the EBITDA margins in the second half? And maybe upward potential to the guidance? Shawn Mural: Yes. I said in the prepared remarks, there was a, you know, the conclusion of a contractual commitment that was worth about $6 million in the quarter, Ken. And so we had contemplated that previously. We did have it in the back half of the year. The team did a great job of, you know, closing on those actions and facilitating that. So that was realized in Q2. So that's really why you see the jump to the 7.6%. You know, absent that, we'd have been at 7.1%, you know, for the quarter. But, again, those things are we knew it. The team did a great job of executing it. They happen, you know, I say they're nonrecurring, but somewhat reoccurring in nature. It's just the types of contractual closeout activities, settlements, things of that nature that happen. And it happened in the second quarter. So we're really happy with being able to capture that early. Ken Herbert: No. That's great. Nice work, Shawn. I'll pass it back there. Thank you. Operator: Thank you. Next question comes from Andre Madrid with BTIG. Please go ahead. Andre Madrid: Jeremy, Shawn, Mike, good afternoon, and thanks for taking the question. Jeremy Wensinger: Yeah. Great, Andre. Andre Madrid: To stay on T-6 for a bit, I guess looking at it, was this one of the five different one billion plus opportunities that you called out for 2025 that you were bidding on? And maybe just, I guess, more broadly, a status update on how we are across those five. Jeremy Wensinger: It was. And we're honored to have the opportunity to have it awarded right now. We continue to make progress on the other ones. Again, I think the team has aligned itself around, you know, the ones I've laid out before, and they continue to the strategy. And this is just a proof point on that strategy in terms of being able to capture it. So again, I think I'm excited about, you know, what the business development team is doing. I'm really excited about what the execution team is doing to provide that past performance that customers are recognizing. So again, I think we are, we continue to be excited about the pipeline that I've shared with you. And also those major pursuits that are kinda near term in nature. Andre Madrid: Got it. Got it. And then obviously, you also called out, you know, strategic acquisitions in the cap deployment strategy. It was the top point actually, and, you know, a peer of yours did you know, it was reported that earlier this quarter or this past quarter that they were looking to possibly sell their aircraft maintenance business. I mean, how are you thinking about the legacy Vertex business? And is this something that you were looking to build out further inorganically? Would this be something of interest? Jeremy Wensinger: No. I mean, I you know, we have we love our aircraft maintenance business. I think we'll continue to look at building out the MRO and mission modernization side and renewal side of the business. Again, I think we're positioned right now. I like what we're doing. I like the awards we have. And, you know, whatever capital allocation strategy we put forward is gonna be in the best interest of the shareholder. Andre Madrid: Incubator. Shawn Mural: Andre, I you know, I think the way we view things a bit as complementary components that enable solutions for our customers. You know, I think those are the things that we would initially start to look at from an M&A and, you know, again, I think I said in the remarks, have a target ratio of staying between approximately two and three. You know, I think Jeremy's used the word optionality since he's been here. And to do things beyond that, I think constrain some of that optionality. To do other things from an investment standpoint either in the business or other things. Jeremy Wensinger: Yeah. I mean, again, I think keeping that optionality on the table is important to me. I think whatever we do is gonna be very thoughtfully done. To add to the overall value of what we're offering. Again, I'm not trying to use words that, you know, sound somewhat flowery, but you kinda get where I'm going in terms of I like having optionality on the table. I like the idea of doing, if we were to do any acquisitions that are gonna add to the value that we offer to a customer today or extend to a customer's that we desire. So, again, I look at the capital allocation strategy as one that keeps us within, as Shawn said, that two to three range, but also adds value like I said, to either what we're doing today or things that we wanna do for someone going forward. Andre Madrid: Got it. That's very helpful. I'll leave it there. You, gentlemen, for the time. Operator: The next question comes from Jonathan Sigman with Stifel. Please go ahead. Jonathan Sigman: Hey, good afternoon, Jeremy, Shawn, and Mike. Thank you for taking the question. Jeremy Wensinger: Hi. Shawn Mural: Hey, thank you. Jonathan Sigman: So just back on the T-6 contract. Congratulations. A great takeaway win. Bo Ken asked about how the revenue ramps. You talk about how you're thinking about managing the risk? It is a new program, not new type of work course. But how do margins kinda flow relative to the company as a whole? Thank you. Jeremy Wensinger: I'll let Shawn talk the margin side. I will tell you, this team does this exceptionally well. One of the things that I have come to appreciate about this company is our ability to manage the execution of programs from really cradle to grave. And they have, you know, a tremendous ability on a global basis to support these programs, whether it's supply chain, whether it's the deployment of people. You know, if you think about, you know, just what we've hired in the last, I wanna say, thirty days, we've hired almost 1,200 people in the last thirty days in terms of standing up various programs. You know, this team does an amazing job at this. And I am greatly impressed by their ability to manage the program startup, the execution of the program, and deliver on customer commitments. And that was what we were talking about with regards to the warfighter training program. You know, they went FOC in July. And, you know, that customer couldn't be any happier with that team's performance. And I think what Aileen and that team are doing is a demonstration of our ability to stand up these larger programs flawlessly. And so I'm expecting nothing less than that on the T-6 program. Shawn Mural: When we think about the margin specifically, John, so they will ramp. You know? Traditionally, what we see on a program of this nature is, you know, they will start at less than the company's composite average. And grow over time. And by time, I would bound that in eighteen to twenty-four months. And why do I say that? It takes some time to establish, and we've seen it. In a program that we set up late last year like F-5. Get on the ground, understand how the supply chains work, understand the workflow, understand the schedules to maintain aircraft availability, and that's absolutely what we're about bringing to our customers. And so it will take some time to go do those things. We expect nothing less on T-6. And I can tell you that, you know, Jeremy, myself, Roger Mason personally went down, worked with the team on that proposal and engaged, and the team's got a very good plan. That they'll begin executing, exactly like Jeremy stated. Jonathan Sigman: Excellent. Maybe if I could ask just on the budget environment. The big beautiful bill had quite a few things that seemed right online with readiness and areas that you could benefit from. Just any comments on that. And we're hearing some other companies in the space talk about some frictions around contracting actions, anything like that. Is there anything that you're seeing pause in the environment that you would flag for us? Thank you very much. Jeremy Wensinger: No. Thank you. It's a great question. I think what we have talked about, which is our focus on readiness, whether it's aircraft or whether it's, you know, mission support side that we do, we have seen that what we have as a strategy and what we have is capability aligns well with this administration's goal on readiness. We're excited on T-6. Look. We deliver some of the best readiness rates in the industry. We're excited to deliver those readiness rates to this customer. And so we think this budget aligns well with what we do. We have not seen friction, to date. On what we do. Because, again, what we do aligns exceptionally well to this administration's goal. And we're all aligned with it. Thank you. Jonathan Sigman: Thanks, John. Operator: The next question comes from Peter Arment with Baird. Please go ahead. Peter, your line is open. You may ask your question. Peter Arment: Do you have me now? Jeremy Wensinger: Yep. We got you here. Got you, Peter. Peter Arment: Okay. Hey, Mung. Hey, Jeremy, Shawn, Mike, nice results. Good to chat with you. Hey. So just to follow-up on John's kinda comment around the budget. Jeremy, you've made it a kind of a point to bid on a lot more, and you've kind of highlighted that on a much bigger pipeline. Maybe you and T-6 is a great example. But what else are you seeing that's kind of that you think is in V2X, Inc.'s wheelhouse? Are you getting a lot more opportunities? Jeremy Wensinger: Well, I think we're seeing very good demand for and we referenced it in the comments in the earnings call, from FMS. We're seeing customers want us to deliver what we do for the US government to them. And so we're seeing nice demand pull there. I think we're seeing good demand pull from renewal and modernization. I think those are areas where we are, you know, from a budgetary standpoint, we're a good value proposition. You know, we're extending the life of these assets. We are giving them optionality on the extension of these assets. And I think that is something that has resonated well with the customers. So, again, when I look at the overall portfolio, we are well-positioned, but I am seeing certain customers that are, like I said, on the FMS side, wanting more of what we do for the, you know, in terms of, hey. You're delivering these type of readiness rates. You're delivering this type of capability. We see that, and we want that. And so they're pulling that, you know, through us. And, again, I think on the renewal and modernization front, this is just something that extends the life of assets and gives them modernization of those assets. And better lethality. So, again, I think everything we're doing is aligned very well with this administration. To give them value for the dollars they're spending and giving them better, you know, outcomes as a result of that. Peter Arment: Know, past history of the way customers are buying from you? Shawn Mural: Yeah. I'd say Peter Arment: Got it. That's helpful. And then is or should we think of FMS as a margin enhancer, or are we and you're still dealing with kind of Shawn Mural: Know, it's a little bit of both. The recent award for the F-16 that we announced earlier, you know, is an example of, again, that pull that Jeremy mentioned from customers. There are opportunities for margin enhancement. Absolutely. We think it's a big lever for us going forward from the, like, a global capability and that stickiness of, you know, kinda land and expand, Peter. There. And this is, again, a great demonstrated capability for the team that leverages CLS support for a platform as well as base support. You're seeing the breadth of capability that is V2X, Inc. brought to these customers and the ability to deliver. We think it's a good economic case for the company. As well as for the customers. Jeremy Wensinger: And Shawn makes a good point. They're not pulling one side of this business. They're pulling the entire company. So the entire company was on that F-16 award. And so I think it's important to realize that doesn't happen unless V2X, Inc. is who it is today. We are bringing the entire solution to the customer, and the customers recognize that and are asking for that. Peter Arment: Terrific to hear. I'll jump back in the queue. Thanks, guys. Jeremy Wensinger: Nice part. Thank you, Peter. Operator: The next question comes from Tobey Sommer with Truist. Please go ahead. Tobey Sommer: Thanks. Could you speak to your expectations for a seasonally strong contract award quarter in calendar 3Q from here? And I understand we've already got the T-6 award, so I kinda mean above and beyond that. Do you think we're in store for a strong seasonal quarter? Or are there puts and takes? Jeremy Wensinger: You know, our awards tend to be fairly episodic. Again, we're thrilled T-6 came out when it did. But, again, in terms of the other ones that we're pursuing, you know, we're always gonna be a little lumpy when it comes to our book to bill. Just because of the episodic nature of these awards. We'll always have a steady flow of on-contract growth and, you know, some smaller awards. But, again, as we pursue these larger and, you know, more franchise-based programs, they're gonna be more episodic. And so I don't worry about the current order book to bill. I look more at the TTM because I think that's a better reflection of who we are and the type of business we're in. So I hope that's helpful because, again, in any given quarter, we may see very, very limited amount of new awards that are of any size. And then, again, you get something like T-6 and some other awards that come through any given quarter. That make a quarter kinda pop. But, again, I think on a TTM basis, that's the way I kinda look at the business. Tobey Sommer: Thanks. It's nice to see the Army training contract ramp. But, clearly, there are some headwinds, some sunsetting, and a task order reduction that you cited. Are there any known incremental drags to '26 revenue growth? Just kinda wanna get your sense now for what those other things on the other side of the ledger might look like. Shawn Mural: Yeah. Great question. The yeah. A couple of call it, headwinds sunsetting. Know, I'll remind folks, we do participate in, you know, contingency support operations. Those things can be episodic in nature. That's exactly what we have today in The Middle East. You will have noticed The Middle East is down slightly, you know, year over year. Beyond that, the headwinds that we've previously talked about, KC-10, T-1A, you know, there's a modest amount of that in the remaining of this year. For next year, you know, we just kicked off the planning cycle, you know, where we're going through those details. There's nothing that gives me tremendous, you know, pause or concern right now about 26. I think there's better visibility in light of the T-6 award, the F-16 award, how those things will play out. We're going through the planning phases because they are just now obviously ramping up and award notifications within the last thirty days. Tobey Sommer: Thank you. And if I could sneak two in, you mentioned a shift to fixed price. How is that occurring? Because it could happen because the customer is converting the cost plus to a fixed price or could simply be bidding on different kind of work that's contracted differently. Or maybe a blend of the two. And then with respect to your share repurchase, do you anticipate that being open market, or would the company participate should there be any future secondary offerings? Shawn Mural: I'll start with the fixed price question. So it's a little bit of both, right? We have said previously and the team continues to put what are today cost-type contracts in front of customers to convert to fixed price. We get mixed reactions to that. I'm encouraged by some of the things that I'm hearing, but it hasn't resulted in contractual actions yet. And then I think to Jeremy's point on the, you know, that he made in the prepared remarks on that pipeline, I think we're seeing more of a shift of the programs that we are pursuing that are fixed price in nature. Jeremy Wensinger: You do a great job of that. Shawn Mural: Absolutely. And, again, we welcome it. I've said that, you know, before. I have the utmost confidence in our team's ability to deliver. And I think when you get to outcome-based contracts, this is what this company does best. We love contracts where it is entirely outcome-based. Because our performance demonstrates to a customer that they can trust us, they can rely on us, and we'll deliver. Shawn Mural: And then your question on the share repurchase, I think it could be both. You know, we'll see. We'll do, again, what's in the best interest of the shareholders. Very happy to have the plan placed. You know, we talk about these things regularly. We think it's the next evolution for the company. And, again, we think we're extremely well-positioned. We're very excited about the growth, and, you know, we'll take advantage of what we can. Tobey Sommer: Thank you. Operator: The next question comes from Joe Gomes with Noble Capital. Please go ahead. Joe Gomes: Good afternoon. Congrats on the quarter. Jeremy Wensinger: Thanks, Joe. Shawn Mural: Joe, thank you. Joe Gomes: First question is, looking at the release, it looked like revenues in the Asia Pacific sector declined about 10%, a little over 9%, I guess, in the quarter. Just wondering, is that due to an absence of exercises, or is there something else going on there? Shawn Mural: No. I'd say there's been some delays in some of those exercises. So, you know, when we think about the contractual, the contracting environment, you know, there have been some delays in initiating some actions on the part of our customers. The team has wonderful opportunity sets in front of us. Not all of them have been acted on. I think they will be at some point, but we have seen you're exactly right. A little bit of decline. I'm not worried about it. Really for, you know, when I think longer term and as I think about 2026. But this quarter, we did experience a modest amount of reduction. Joe Gomes: Okay. Thanks for that. And then on the backlog, I wonder if you could just, you know, kinda provide some more color here. So, you know, in the first quarter backlog was approximately $12 billion. That did not include log cap, Ascension Island, or the full value of the training. I think you mentioned this quarter, it's $11.3 billion. It does not include log cap, but you didn't mention Ascension or the full value of training. So I just wonder if you could kinda walk me through that would be a fairly substantial decline in the backlog quarter over quarter. Shawn Mural: Sure. Yes. So for Q2, the net bookings were $517 million for the quarter. That's a book to bill of 0.5 and the backlog, as you rightly point out, at 11.3. Ascension Island is in that, you know, bookings number. And the award for the next, you know, year of WTRS will fall into the order for that will fall into Q3. So, you know, not really, I'll say, surprised where we are when we think about the bookings for the year. It's played out almost exactly to where we thought it would. You know, in terms of its weight distribution, kinda seventy-thirty, back half first half. So, yeah, there's plenty of things that are not in it as we pointed out. But, you know, I think we'll see that pick up here in the back half of the year. Joe Gomes: K. Great. Thanks for that. Again, congrats. Shawn Mural: Great. Thank you. Operator: The next question comes from Mariana Perez Mora with Bank of America. Please go ahead. Samantha Styro: Hi. Good afternoon. This is Samantha Styro on for Mariana today. I was wondering if you could talk about the protest environment a little more broadly with the 45-55, one half, two half split we discussed last quarter. How do we think about the risks of new awards being pushed to the and slipping into 2026? Jeremy Wensinger: Well, it's always a risk. Right? We manage those risks quite well. But, again, we don't control the outcome of those protests. But, again, we follow the process. We support our customers. Again, I'm, you know, I'm not surprised by protests when they happen. But I think the team does a very good job in supporting protests as they get adjudicated. But, again, it's the nature of this business, and, like I said, I think the team does a good job in terms of supporting whatever is required in support of those protests. Shawn Mural: You know, what's encouraging is the cadence of the new awards that we expected has held. From a timing standpoint. Which has been very encouraging, you know, in terms of when you would expect to see new awards itself, whether or not, you know, folks protest. I don't know. They'll make their own decisions, you know, on those things. We think our offerings stand on their own and believe we offer great value to our customers. Samantha Styro: Thank you. And then switching gears a little bit, you highlighted using more of a commercial-based approach on this latest T-6 award. Can you kind of dive into that and what that looks like? Jeremy Wensinger: Well, I mean, the supply chain side of this business is a fairly significant part of the overall business that we run. I think the procurement team, again, I don't wanna overemphasize the commercial aspect of it as much as it is commercial by nature. You know, what they procure on a global basis and their ability to deliver those goods and services on a global basis, you know, I'll stand up against anybody. So when I look at what we have in front of us on T-6 and the number of aircraft that we need to continue to fly, it will just leverage what we do best already, which is a commercial-based approach to procurement. Operator: The next question comes from Christine Liwag with Morgan Stanley. Please go ahead. Christine Liwag: Hey. Good afternoon, everyone. You know, a quick follow-on question on the T-6. So, I mean, this is an IDIQ award. You gave the revenue waterfall earlier. But I was wondering, with the IDIQ, like, what's a sure revenue waterfall versus where could you potentially see plus-ups or downside risk to the numbers that you gave? Shawn Mural: Yeah. So think of it as a, it's listed as an IDIQ. A lot of it will be dependent on funding availability. Right? So, obviously, Jeremy mentioned the fleet, 700. You know, there are always things to go do on these platforms to maintain readiness. I think it will come down to the funding availability. It is, you know, we are the only contractor that has been selected to execute this. So it's not like you're competing for task orders or things of that nature. It will be, you know, due to customers having the funding to improve availability, maintain it, that's what this will be. I only go off of what, you know, what the program has historically executed. We'll see what the priorities are in a more defined budget. And once we get beyond the transition, which was, you know, announced last week. Jeremy Wensinger: Yeah. I kind of view it the way if you think about the warfighter training, that was a single award IDIQ. There are dozens and dozens of task orders that we bid. It has to do with individual tasks that you go after in terms of supporting various, you know, aspects of the program. I would envision this one to be the same way. And I think Shawn's right. You know, they're spending between $200 to $300 million a year on this program today. I would envision that those same task orders would manifest itself, again, in the new award. Christine Liwag: Great. That's really helpful. And maybe following on what you guys said about the contract, award pace, it seems to be progressing as you had expected. But if we look at book to bill, book to bill was 0.4 in 1Q and 0.5 this quarter. And, you know, this is taking aside, you know, the T-6 order. But it seems like outside of T-6, the book to bill, you know, continues to be below one. Can you provide some context regarding what your expectations are for book to bill for the second half of the year? And if there are holdups, in those contract structures, where are those? And does the big beautiful bill, you know, address some of those uncertainties? Ultimately, when we look at your full-year outlook for revenue and EBITDA, they didn't change for the full year even though you've had a very strong second quarter. So just want to understand the movers and shakers for your full-year outlook. Thanks. Jeremy Wensinger: I think publishing the, you know, the pipeline, I'll give you a line sight on, you know, the size of things that we are pursuing, which is, you know, pretty impressive. I think when I look at, like I said, book to bill, I look at the TTM on book to bill because the episodic nature of our awards. I don't think any one quarter is truly reflective of the business as much as it is on a twelve-month basis. You know, our goal is to be obviously well over one. In a book to bill in any twelve-month period. And, you know, that's what we're tracking to. And when I look at the number of, you know, major pursuits that I have in front of me, it supports that. So, again, I think a quarter is interesting, but I think the TTM is much more reflective of a business like this. Shawn Mural: Think, you know, you mentioned I'll call it a muted environment from a book to bill in the first two quarters. It's not dissimilar to what we thought when we came into the year, to be very candid with you. You know, we forecast bookings, revenue, profitability, all those things. You know, and it's played out, you know, kinda in line with what we thought. As Jeremy said, you know, by the end of this year, at or above one, there's lots of variables that will go into that. But we're not seeing anything as we sit here right now, I think, that changes our perspective on being there at the end of the year. Christine Liwag: Great. And to get to that or above one for the full year, you'd have to have a pretty chunky order activity in the second half. Are there particular programs we should monitor or milestones we should track? Jeremy Wensinger: Well, I've, you know, I mean, one obviously was the T-6, how that plays out. That is what I would consider kind of a binary event, right, when we think about that. We'll see how it plays out and what that would look like. The other one that, you know, I mentioned earlier that would happen here in the quarter would be the WTRS next year. Or the second year of it. And, you know, we're off in that transition. So I would expect something there as well. And there's some other ones that, obviously, we wouldn't share because they're competitive sensitive. But are some other awards that we're expecting in the second half of the year. But, again, when I look at the business on a twelve-month basis, it is performing exactly where I would expect it to be. Christine Liwag: Thank you very much. Operator: The next question comes from Noah Poponak with Goldman Sachs. Please go ahead. Noah Poponak: Hey. Good evening, everyone. Maybe just staying on that, I think you said you expected the booking split first half, second half to be 30%, 70%. And I guess the specific math on that would imply $2 billion of bookings in the back half, which would keep the book to bill below one. Is that more of a very directional statement? And as you mentioned, there's some sort of binary-ish things that could make it better than that. I guess to have book to bill at one for the year, it has to be one and a half in the back half. Jeremy Wensinger: Yeah. Yes. It was more of a directional comment, Noah, but I think we have line of sight to a book to bill that is greater than one. Between now and the end of the year. There are some variables that will come into play. That I would consider, you know, somewhat binary. But again, we have line of sight into those things. I think the back half of the year will play out such that we end at or above one. Noah Poponak: Okay. Well, will the T-6 award likely have a protest, or is there a scenario where that goes clean without a protest? Shawn Mural: You know, I don't think we know. You know, like I said, we were awarded. The team's begun transition. And that transition ends in January 2026. So we'll see how some things play out. Noah Poponak: Okay. Can you remind us the drivers behind the pickup in the top-line organic revenue growth in the back half versus the first half? Shawn Mural: Sure. So F-5, the contract that we had a year ago, has some modest, had some modest growth. Think of that as $2,020,000,000 ish or so. The WTRS award from a year ago, think of that as, you know, a $140,125 in that range depending on how some things go. So those are some of the big ones. And the F-16 award that we had. That we mentioned earlier. So those are some of the bigger awards here in the back half of the year. That, you know, we're under contract. We're executing. And we expect to deliver. And I think now that of note, which I highlighted earlier, you know, you we hired about almost 1,200 people in the last thirty days. In support of those programs. So, you know, we're off and running on those programs. Noah Poponak: Okay. Excellent. And then last one, what are the mechanics behind raising the EPS guidance but not the EBITDA or cash flow? Just it didn't look like interest expense or tax rate or the normal below the operating line things were unusual year to date. Shawn Mural: Yeah. It's the interest expense from earlier the year when we did some refinancing. It's about 15¢. That contributed there in a very modest, maybe a penny or so of tax benefit. So that was the basis for the raise from some refinancing that we did kinda back in Q1. That we now flow through to the total year. Noah Poponak: Okay. Got it. Thank you. Shawn Mural: Sure. Operator: This concludes our question and answer session. I would like to turn the conference back over for any closing remarks. Jeremy Wensinger: Great quarter. Thank you for your support. Thank you for taking the time to take the call. We're excited about the second half of the year, and we look forward to talking to you further. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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 1,019%* — a market-crushing outperformance compared to 178% 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 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. 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Cision Canada
an hour ago
- Cision Canada
BTB Announces Resilient Q2 Operational Results with Growth in the Rental Renewal Spread, Reaching 4.8% Français
MONTRÉAL, Aug. 4, 2025 /CNW/ - BTB Real Estate Investment Trust (TSX: (" BTB", the " REIT" or the " Trust") announced today its financial results for the second quarter of 2025 ended June 30, 2025 (the " Second Quarter"). "BTB's performance in the second quarter of 2025 highlights our leasing efforts, improved cash flow, and strengthened financial metrics. The quality of our assets underpins our steady progress" says Michel Léonard, President and CEO of BTB. "Our rental revenue totaled $30.5M for the quarter, a decrease of $1.7M or 5.3% compared to the same quarter last year, primarily due to two non-cash straight-line rent adjustments totaling $1.8M. Cash net operating income (Cash NOI) 1 continues to show growth, totaling $19.5M for the quarter, an increase of 0.5% compared to the same quarter last year. For the six-month period, the Cash NOI 1 reached $39.7M, an increase of $1.7M or 4.4% compared to the same period in 2024. Our AFFO adjusted 1 was 9.5¢ per unit, up slightly from 9.4¢ a year ago, and 19.8¢ per unit for the six-month period, representing an increase of 1.5¢ from the comparable period in 2024. Leasing momentum continues as we completed 122,815 square feet of lease renewals and secured 49,809 square feet of new leases during the quarter. The occupancy rate at the end of the quarter stood at 91.2%, still reflecting the impact of the announced industrial tenant bankruptcy in 2024. When factoring in the post-quarter sale of our property located at 1170 Lebourgneuf Blvd. in Quebec City, occupancy improved to 92.0%, representing an increase of 80 basis points. The increase in the average rent renewal rate was 4.7% this quarter and 4.8% over the first six-month period of the year, mainly supported by the necessity-based retail and suburban office segments, which accounted for 58% and 38% of lease renewals respectively. We continue to show positive momentum." SUMMARY OF SIGNIFICANT ITEMS AS AT JUNE 30, 2025 Total number of properties: 74 Total leasable area: 6.1 million square feet Total asset value: $1.3 billion Market capitalization: $321 million (unit trading price of $3.64 as at June 30, 2025) OPERATIONAL HIGHLIGHTS Periods ended June 30 Qua rter 2025 2024 Occupancy – committed (%) 91.2 % 94.6 % Signed new leases (in 49,809 40,080 Renewed leases at term (in 81,622 158,445 Renewal rate (%) 46.1 % 88.7 % Early lease renewals (in 41,193 58,160 Increase in adverage lease renewal rate 4.7 % 5.7 % BTB completed lease renewals totaling 122,815 square feet and new leases totaling 49,809 square feet. The increase in the average rent renewal rate for the current quarter was 4.7%. For the six-month period, the increase in the average rent renewal rate was 4.8%. The occupancy rate stood at 91.2%, a 130 basis points decrease compared to the prior quarter and a 340 basis points decrease compared to the same period in 2024. The decrease in the occupancy rate is primarily due to the bankruptcy of a previously reported tenant. Taking into account the post-quarter sale of the office property located at 1170 Lebourgneuf Blvd., in Quebec City, the occupancy rate of the portfolio would be 92.0%, or an increase of 80 basis points. FINANCIAL RESULTS HIGHLIGHTS Periods ended June 30 Qua rter (in thousands of dollars, except for ratios and per unit data) 2025 2024 $ $ Rental revenue 30,513 32,218 Net operating income (NOI) 17,129 18,856 Cash net operating income (Cash NOI) (1) 19,465 19,377 Net income and comprehensive income 6,194 7,272 Adjusted net income (1) 5,751 7,897 Cash NOI from the same-property portfolio (1) 19,177 19,465 FFO Adjusted (1) 7,365 9,149 FFO adjusted payout ratio 90.6 % 72.2 % AFFO Adjusted (1) 8,423 8,230 AFFO adjusted payout ratio 79.2 % 80.2 % Weighted average number of units and Class B LP units outstanding (000) 88,946 88,032 FINANCIAL RESULTS PER UNIT Net income and comprehensive income 7.0¢ 8.3¢ Adjusted net income (1) 6.5¢ 9.0¢ Distributions 7.5¢ 7.5¢ FFO Adjusted (1) 8.3¢ 10.4¢ AFFO Adjusted (1) 9.5¢ 9.4¢ Rental revenue: Stood at $30.5 million for the quarter, which represents a decrease of $1.7 million or 5.3% compared to the same quarter of 2024. The decrease is driven by non-cash straight-line lease adjustments totalling $1.8 million namely : (1) following the purchase by a group of investors of Lion Electric, the trust negotiated a lease amendment for a term of two (2) years, causing a non-cash straight-line lease adjustment of the property of $1.6 million and, (2) the Trust recorded the early departure of an industrial tenant, Big Rig Trailers, in Edmonton causing a non cash straight-line lease adjustment of the property of $0.2 million, which property was rapidly entirely re-leased to XCMG Canada Ltd, with a long-term lease. For the six-month period, rental revenue totalled $64.9 million, representing an increase of $0.1 million or 0.1% compared to the same period in 2024. Excluding the above mentioned two non-cash straight-line lease adjustments, rental revenue for the quarter would have totalled $32.3 million, an increase of $0.1 million or 0.3% and for the six-month period, it would have totalled $66.7 million, representing an increase of $1.9 million or 2.9%. Net operating income (NOI): Totalled $17.1 million for the quarter, which represents a decrease of 9.2% compared to the same quarter of 2024. For the six-month period, the NOI totalled $37.0 million which represents a decrease of 0.7% compared to the same period in 2024. Both decreases are caused by the above-mentioned non-cash straight-line lease adjustments. Cash net operating income (Cash NOI) (1): Totalled $19.5 million for the quarter, which represents an increase of $0.1 million or 0.5% compared to the same quarter of 2024. For the six-month period, the Cash NOI totalled $39.7 million, which represents an increase of $1.7 million or 4.4% compared to the same period in 2024. The increase is driven by (1) a partial lease cancellation payment of $1.0 million received from a tenant leasing space in the suburban office segment, which space has already been re-leased by the Trust; (2) operating improvements, higher rent renewal rates, and increases in rental spreads for in-place leases representing an increase of $0.3 million; and (3) the previously announced lease with Winners/HomeSense which began to produce income as of February 25, 2025 ($0.4 million). Net income and comprehensive income: Totalled $6.2 million for the quarter, which represents a decrease of 14.8% or $1.1 million. For the six-month period, net income and comprehensive income totalled $13.8 million, representing a decrease of 4.3% or $0.6 million. Cash Same-Property NOI (1): For the quarter, the cash same-property NOI decreased by 1.5% compared to the same period in 2024. For the six-month period, the cash same-property NOI increased by 3.0%. FFO adjusted per unit (1): Was 8.3¢ per unit for the quarter compared to 10.4¢ per unit for the same period in 2024, representing a decrease of 2.1¢ per unit. For the six-month period, the FFO adjusted was 19.4¢ per unit compared to 20.6¢ per unit for the same period in 2024, representing a decrease of 1.2¢ per unit. The decrease is driven by the previously outlined 2 non-cash straight-line lease adjustments of $1.8 million. AFFO adjusted per unit (1): Was 9.5¢ per unit for the quarter compared to 9.4¢ per unit for the same period in 2024, representing an increase of 0.1¢ per unit or 1.1%. For the six-month period, the AFFO adjusted per unit was 19.8¢ per unit compared to 18.3¢ per unit for the same period in 2024, representing an increase of 1.5¢ per unit or 8.2%. The six-month period increase is explained by (1) the previously outlined $1.7 million increase in Cash NOI, (2) a $0.2 million decrease in administrative expenses and, (3) stability in the net financial expenses before non-monetary items. AFFO adjusted payout ratio (1): Was 79.2% for the current quarter compared to 80.2% for the same period in 2024. For the six-month period, the AFFO adjusted payout ratio was 75.8% compared to 82.0% for the same period in 2024, a decrease of 6.2%. Dispositions: On June 16, 2025, the Trust disposed of a small industrial property located at 3911 Millar Avenue, in Saskatoon, Saskatchewan, for total proceeds of $6.1 million, excluding transaction costs and adjustments. Subsequent to the quarter, more specifically on July 11, 2025, the Trust disposed of an office property located at 1170 Lebourgneuf Blvd., in Quebec City, for total proceeds of $10.5 million, excluding transaction costs and adjustments. In order to conclude the transaction, the Trust granted to the purchaser a balance of sale of $1.0 million, maturing on March 24, 2027, at an interest rate of 5%. BALANCE SHEET AND LIQUIDITY HIGHLIGHTS Periods ended June 30 Quarters (in thousands of dollars, except for ratios and per unit data) 2025 2024 $ $ Total assets 1,262,584 1,235,935 Total debt ratio (1) 57.1 % 58.1 % Mortgage debt ratio (2) 51.7 % 51.4 % Weighted average interest rate on mortgage debt 4.36 % 4.57 % Market capitalization 321,298 273,813 NAV per unit (1) 5.62 5.50 Debt metrics: BTB ended the quarter with a total debt ratio (1) of 57.1%, recording a decrease of 80 basis points compared to December 31, 2024. The Trust ended the quarter with a mortgage debt ratio (2) of 51.7%, a decrease of 110 basis points compared to December 31, 2024. Liquidity position: The Trust held $5.7 million of cash at the end of the quarter and $28.5 million is available under its credit facilities (3). _______________________________________ (1) Non-IFRS financial measure. See Appendix 1. The referred non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and these measures cannot be compared to similar measures used by other issuers. (2) This is a non-IFRS financial measure. The mortgage debt ratio is calculated by dividing the mortgage loans outstanding by the total gross value of the assets of the Trust less cash and cash equivalents. (3) Credit facilities is a term used that reconciles with the bank loans as presented and defined in the Trust's consolidated financial statements and accompanying notes. QUARTERLY CALL INFORMATION Management will hold a conference call on Tuesday, August 5, 2025, at 9 a.m., Eastern Time, to present BTB's financial results and performance for the second quarter of 2025. Interested parties are invited to access the call at least 5 minutes prior to the scheduled start of the call. Note that the call will be in listening mode only. Conference call operators will coordinate the question-and-answer period (from analysts only) and will instruct participants regarding the procedures during the call. The audio recording of the conference call will be available via playback until August 12, 2025, by dialing (+1) 289-819-1450 (local) or 1-888-660-6345 (toll-free) and by entering the following access code: 05333 # ABOUT BTB BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB invests in industrial, suburban office and necessity-based retail properties across Canada for the benefit of their investors. As of today, BTB owns and manages 73 properties, representing a total leasable area of approximately 6.1 million square feet. People and their stories are at the heart of our success. For more detailed information, visit BTB's website at FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements with respect to BTB. These statements generally can be identified by the use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of BTB could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulation, and the factors described from time to time in the documents filed by BTB with the securities regulators in Canada. The cautionary statements qualify all forward-looking statements attributable to BTB and persons acting on their behalf. Unless otherwise stated or required by applicable law, all forward-looking statements speak only as of the date of this press release. APPENDIX 1: RECONCILIATION OF NON-IFRS MEASURES Non-IFRS Financial Measures Certain terms used in this press release are listed and defined in the table hereafter, including any per unit information if applicable, are not measures recognized by International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. Such measures may differ from similar computations as reported by similar entities and, accordingly, may not be comparable to similar measures. Explanations on how these non-IFRS financial measures provide useful information to investors and additional purposes, if any, for which the Trust uses these non- IFRS financial measures, are also included in the table hereafter. Securities regulations require that non-IFRS financial measures be clearly defined and that they not be assigned greater weight than IFRS measures. The referred non-IFRS financial measures, which are reconciled to the most similar IFRS measure in the table thereafter if applicable, do not have a standardized meaning prescribed by IFRS and these measures cannot be compared to similar measures used by other issuers. NON-IFRS MEASURE DEFINITION Cash Net Operating Income Cash net operating income ("NOI") is a non-IFRS financial measure defined as net operating income less: (i) lease incentive amortization; and (ii) straight-line lease adjustment. Cash NOI is reconciled to NOI, which is the most directly comparable IFRS measure. The Trust considers this to be a useful measure of operating performance and the profitability of it's portfolio by excluding non-cash items. Cash Same-Property NOI Cash same-property NOI is a non-IFRS financial measure defined as Cash net operating income ("NOI") for the properties that the Trust owned and operated for the entire duration of both the current year and the previous year. The most directly comparable IFRS measure to same-property Cash NOI is Operating Income. The Trust believes this is a useful measure as Cash NOI growth can be assessed on its portfolio by excluding the impact of property acquisitions and dispositions of both the current year and previous year. The Trust uses the Cash same-property NOI to indicate the profitability of its existing portfolio operations and the Trust's ability to increase its revenues, reduce its operating costs and generate organic growth. NON-IFRS MEASURE DEFINITION Funds from Operations ("FFO") and FFO Adjusted FFO is a non-IFRS financial measure used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its January 2022 White Paper ("White Paper"). FFO is defined as net income and comprehensive income less certain adjustments, on a proportionate basis, including: (i) fair value adjustments on investment properties, class B LP units and derivative financial instruments; (ii) amortization of lease incentives; (iii) incremental leasing costs; and (iv) distribution on class B LP units. FFO is reconciled to net income and comprehensive income, which is the most directly comparable IFRS measure. FFO is also reconciled with the cash flows from operating activities, which is an IFRS measure. FFO Adjusted is also a non-IFRS financial measure that starts with FFO and remove the impact of non-recurring items such as transaction cost on acquisitions and dispositions of investment properties and early repayment fees. The Trust believes FFO and FFO Adjusted are key measures of operating performance and allow the investors to compare its historical performance. Adjusted Funds from Operations ("AFFO") and AFFO Adjusted AFFO is a non-IFRS financial measure used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its White Paper. AFFO is defined as FFO less: (i) straight- line rental revenue adjustment; (ii) accretion of effective interest; (iii) amortization of other property and equipment; (iv) unit-based compensation expenses; (v) provision for non-recoverable capital expenditures; and (vi) provision for unrecovered rental fees (related to regular leasing expenditures). AFFO is reconciled to net income and comprehensive income, which is the most directly comparable IFRS measure. AFFO is also reconciled with the cash flows from operating activities, which is an IFRS measure. AFFO Adjusted is also a non-IFRS financial measure that starts with AFFO and removes the impact of non-recurring items such as transaction costs on acquisitions and dispositions of investment properties and early repayment fees. The Trust considers AFFO and AFFO Adjusted to be useful measures of recurring economic earnings and relevant in understanding its ability to service its debt, fund capital expenditures and provide distributions to unitholders. NON-IFRS MEASURE DEFINITION FFO and AFFO per unit and FFO adjusted and AFFO adjusted per unit FFO and AFFO per unit and FFO adjusted and AFFO adjusted per unit are non-IFRS financial measures used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its White Paper. These ratios are calculated by dividing the FFO, AFFO, FFO adjusted and AFFO adjusted by the Weighted average number of units and Class B LP units outstanding. The Trust believes these metrics to be key measures of operating performances allowing the investors to compare its historical performance in relation to an individual per unit investment in the Trust. FFO and AFFO payout ratios and FFO Adjusted and AFFO Adjusted payout ratios FFO and AFFO payout ratios and FFO Adjusted and AFFO Adjusted payout ratios are non-IFRS financial measures used by most Canadian real estate investment trusts based on a standardized definition established by REALPAC in its White Paper. These payout ratios are calculated by dividing the actual distributions per unit by FFO, AFFO and FFO Adjusted and AFFO Adjusted per unit in each period. The Trust considers these metrics a useful way to evaluate its distribution paying capacity. Total Debt Ratio Total debt ratio is a non-IFRS financial measure of the Trust financial leverage, which is calculated by taking the total long-term debt less cash divided by total gross value of the assets of the Trust less cash. The Trust considers this metric useful as it indicates its ability to meet its debt obligations and its capacity for future additional acquisitions. Total Mortgage Debt Ratio Mortgage debt ratio is a non-IFRS financial measure of the Trust financial leverage, which is calculated by taking the total mortgage debt less cash divided by total gross value of the assets of the Trust less cash. The Trust considers this metric useful as it indicates its ability to meet its mortgage debt obligations and its capacity for future additional acquisitions. NON-IFRS MEASURE DEFINITION Interest Coverage Ratio Interest coverage ratio is a non-IFRS financial measure which is calculated by taking the Adjusted EBITDA divided by interest expenses net of financial income (interest expenses exclude early repayment fees, accretion of effective interest, distribution on Class B LP units, accretion of non-derivative liability component of convertible debentures and the fair value adjustment on derivative financial instruments and Class B LP units). The Trust considers this metric useful as it indicates its ability to meet its interest cost obligations for a given period. Debt Service Coverage Ratio Debt service coverage ratio is a non-IFRS financial measure which is calculated by taking the Adjusted EBITDA divided by the Debt Service Requirements, which consists of principal repayments and interest expenses net of financial income (interest expenses exclude early repayment fees, accretion of effective interest, distribution on Class B LP units, accretion of non-derivative liability component of convertible debentures and the fair value adjustment on derivative financial instruments and Class B LP units). The Trust considers this metric useful as it indicates its ability to meet its interest cost obligations for a given period. APPENDIX 2: NON-IFRS FINANCIAL MEASURES – QUARTERLY RECONCILIATION Funds from Operations (FFO) (1) The following table provides a reconciliation of net income and comprehensive income established in accordance with IFRS and FFO (1) for the last eight quarters: 2025 2025 2024 2024 2024 2024 2023 2023 Q-2 Q-1 Q-4 Q-3 Q-2 Q-1 Q-4 Q-3 (in thousands of dollars, except for per unit) $ $ $ $ $ $ $ $ Net income and comprehensive income (IFRS) 6,194 7,608 18,847 5,470 7,272 7,153 1,734 15,216 Fair value adjustment on investment properties (700) - (9,975) (283) - (6) 4,480 (6,481) Fair value adjustment on Class B LP units 167 28 (174) 335 (21) 160 (42) (159) Amortization of lease incentives 836 797 966 807 704 690 641 664 Fair value adjustment on derivative financial instruments (176) 868 (760) 2,168 379 (325) 2,396 (584) Leasing payroll expenses 525 466 739 535 433 591 401 359 Distributions – Class B LP units 52 52 52 52 53 52 52 56 Unit-based compensation (Unit price remeasurement) 201 61 (39) 342 63 409 (11) (87) FFO (1) 7,099 9,880 9,656 9,426 8,883 8,724 9,651 8,984 Transaction costs on disposition of investment properties and mortgage early repayment fees 266 - - - 266 201 37 46 FFO Adjusted (1) 7,365 9,880 9,656 9,426 9,149 8,925 9,688 9,030 FFO per unit (1) (2) (3) 8.0¢ 11.1¢ 10.9¢ 10.7¢ 10.1¢ 10.0¢ 11.1¢ 10.3¢ FFO Adjusted per unit (1) (2) (4) 8.3¢ 11.1¢ 10.9¢ 10.7¢ 10.4¢ 10.2¢ 11.1¢ 10.4¢ FFO payout ratio (1) 94.0 % 67.4 % 68.8 % 70.0 % 74.3 % 75.2 % 67.5 % 72.9 % FFO Adjusted payout ratio (1) 90.6 % 67.4 % 68.8 % 70.3 % 72.2 % 73.5 % 67.2 % 72.5 % (1) This is a non-IFRS financial measure, refer to appendix 1. (2) Including Class B LP units. (3) The FFO per unit ratio is calculated by dividing the FFO (1) by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period). (4) The FFO Adjusted per unit ratio is calculated by dividing the FFO Adjusted (1) by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period). Adjusted Funds from Operations (AFFO) (1) The following table provides a reconciliation of FFO (1) and AFFO (1) for the last eight quarters: 2025 2025 2024 2024 2024 2024 2023 2023 Q-2 Q-1 Q-4 Q-3 Q-2 Q-1 Q-4 Q-3 (in thousands of dollars, except for per unit) $ $ $ $ $ $ $ $ FFO (1) 7,099 9,880 9,656 9,426 8,883 8,724 9,651 8,984 Straight-line rental revenue adjustment 1,500 (381) (374) (247) (183) (394) (197) (842) Accretion of effective interest 367 580 402 391 361 308 310 271 Amortization of other property and equipment 17 18 21 17 17 17 20 33 Unit-based compensation expenses 159 133 247 19 (95) (9) 159 184 Provision for non-recoverable capital expenditures (1) (610) (688) (654) (650) (644) (653) (639) (626) Provision for unrecovered rental fees (1) (375) (375) (375) (375) (375) (375) (375) (375) AFFO (1) 8,157 9,167 8,923 8,581 7,964 7,618 8,929 7,629 Transaction costs on disposition of investment properties and mortgage early repayment fees 266 - - - 267 201 37 46 AFFO Adjusted (1) 8,423 9,167 8,923 8,581 8,231 7,819 8,966 7,675 AFFO per unit (1) (2) (3) 9.2¢ 10.3¢ 10.1¢ 9.7¢ 9.1¢ 8.7¢ 10.2¢ 8.8¢ AFFO Adjusted per unit (1) (2) (4) 9.5¢ 10.3¢ 10.1¢ 9.7¢ 9.4¢ 8.9¢ 10.3¢ 8.8¢ AFFO payout ratio (1) 81.8 % 72.7 % 74.5 % 76.8 % 82.9 % 86.2 % 72.9 % 85.8 % AFFO Adjusted payout ratio (1) 79.2 % 72.7 % 74.5 % 77.2 % 80.2 % 83.9 % 72.6 % 85.3 % (1) This is a non-IFRS financial measure, refer to appendix 1. (2) Including Class B LP units. (3) The AFFO per unit ratio is calculated by dividing the AFFO (1) by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period). (4) The AFFO Adjusted per unit ratio is calculated by dividing the AFFO Adjusted (1) by the Trust's unit outstanding at the end of the period (including the Class B LP units at outstanding at the end of the period). APPENDIX 3: NON-IFRS FINANCIAL MEASURES – DEBT RATIOS Debt Ratios The following table summarizes the Trust's debt ratios as at June 30 2024 and 2025 and December 31, 2024: (in thousands of dollars) June 30, 2025 December 31, 2024 June 30, 2024 $ $ $ Cash and cash equivalents (5,677) (2,471) (857) Mortgage loans outstanding (1) 659,094 665,607 636,492 Convertible debentures (1) 36,816 19,576 43,375 Credit facilities 30,951 44,298 39,606 Total long-term debt less cash and cash equivalents (2) (3) 721,184 727,010 718,616 Total gross value of the assets of the Trust less cash and cash equivalents (2) (4) 1,263,906 1,254,818 1,236,326 Mortgage debt ratio (excluding convertible debentures and credit facilities) (2) (5) 51.7 % 52.8 % 51.4 % Debt ratio – convertible debentures (2) (6) 2.9 % 1.6 % 3.5 % Debt ratio – credit facilities (2) (7) 2.4 % 3.5 % 3.2 % Total debt ratio (2) 57.1 % 57.9 % 58.1 % (1) Before unamortized financing expenses and fair value assumption adjustments. (2) This is a non-IFRS financial measure, refer to appendix 1 (3) Long-term debt less free cash flow is a non-IFRS financial measure, calculated as total of: (i) fixed rate mortgage loans payable; (ii) floating rate mortgage loans payable; (iii) Series I debenture capital adjusted with non-derivative component less conversion options exercised by holders; and (iv) credit facilities, less cash and cash equivalents. The most directly comparable IFRS measure to net debt is debt. (4) Gross value of the assets of the Trust less cash and cash equivalent ("GVALC") is a non-IFRS financial measure defined as the Trust total assets adding the cumulated amortization property and equipment and removing the cash and cash equivalent. The most directly comparable IFRS measure to GVALC is total assets. (5) Mortgage debt ratio is calculated by dividing the mortgage loans outstanding by the GVALC. (6) Debt ratio – convertible debentures is calculated by dividing the convertible debentures by GVALC. (7) Debt ratio – credit facilities is calculated by dividing the credit facilities by the GVALC. SOURCE BTB Real Estate Investment Trust
Montreal Gazette
an hour ago
- Montreal Gazette
Montreal's GardaWorld green lit to bid up to US$138M on ‘Alligator Alcatraz' ICE contracts
A U.S. subsidiary of GardaWorld, the Montreal-based security giant reportedly helping staff the Florida detention site known as 'Alligator Alcatraz,' has been cleared to bid up to US$138 million on ICE contracts. GardaWorld Federal Services, a Virginia-based arm of GardaWorld, was among dozens of companies shortlisted by ICE (U.S. Immigration and Customs Enforcement) under an emergency procurement programme, government records show. ICE's agreement with GardaWorld's U.S. subsidiary sets a limit of US$138 million (CAN$190 million) on the value of contracts the company can compete for, The Gazette has confirmed. It was first reported by The Globe and Mail. The contracts are part of a sweeping effort by U.S. President Donald Trump to expand detention capacity across the country. GardaWorld was already contracted to provide security and correctional staff at 'Alligator Alcatraz, ' a remote facility in Ochopee, Florida. It is expected to house up to 3,000 detainees. The site has drawn growing criticism from rights groups, who warn of poor oversight, overcrowding and unsafe conditions. It gained notoriety after Trump visited in July and jokingly referred to its swampy surroundings by saying there were 'a lot of police officers in the form of alligators.' Homeland Security Secretary Kristi Noem said Monday that 'Alligator Alcatraz' would serve as a model for future state-run migrant detention centres. She also said she hopes to launch similar facilities in the coming months, including in airports and jails. According to the Miami Herald, GardaWorld was awarded a separate contract worth US$8 million to provide staffing for the Florida facility. In July, The Gazette reported that GardaWorld was seeking armed guards for 'a remote part of southern central Florida,' offering US$25 per hour, plus travel, meals and accommodation. The posting outlined strict requirements for applicants: candidates were required to hold Florida gun and security licences, have at least one year of armed experience, and legally own a registered semi-automatic handgun. GardaWorld provides a wide range of private security services in Canada and abroad, including airport screening, cash transport and personal protection. The company was founded by Stephan Crétier in Montreal, where he used a $30,000 mortgage on his house to launch the business. Today, it remains headquartered in Montreal, though Cretier is now based in Dubai. He is worth nearly $4 billion, according to The Gazette's Rich List. In 2022, Quebec's provincial investment agency, Investissement Québec, invested $300 million in GardaWorld. A provincial spokesperson has previously said the investment was unrelated to the company's U.S. contracts. Twelve people have died in ICE custody so far this year, including Canadian Johnny Noviello, who died at a Miami detention facility in June. This story was originally published
