GCT Semiconductor Celebrates Major Milestone with Delivery of 5G Chipsets and Modules to Customers
'We are thrilled to achieve this major milestone and now have our 5G chips in the hands of our customers,' said John Schlaefer, CEO of GCT.
'We are thrilled to achieve this major milestone and now have our 5G chips in the hands of our customers,' said John Schlaefer, CEO of GCT. 'Our chips are currently being evaluated and we're eager to receive positive feedback from our customers. Our first priority is to focus on mid-tier applications and immediate demand for the growing 5G market. This will include the development of a Verizon-certified module. We're also excited to expand sampling to all our customers in the near future.'
After the evaluation process is complete, GCT will work with customers to optimize their device performance, and to determine production demands. GCT is fully prepared to meet these demands, supported by a robust supply chain built on years of proven experience delivering high-performance solutions efficiently and reliably.
About GCT Semiconductor Holding, Inc.
GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT's market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications and smartphones, etc., for the world's top wireless carriers. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit www.gctsemi.com.
Cautionary Statement Regarding Forward-Looking Statements –
This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, statements regarding delivery of 5G chipset and completion of customer evaluation processes. Words such as 'believe,' 'project,' 'expect,' 'anticipate,' 'estimate,' 'intend,' 'strategy,' 'future,' 'opportunity,' 'plan,' 'may,' 'should,' 'will,' 'would,' 'will be,' 'will continue,' 'will likely result,' and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: the ability of the Company to develop its 5G products and generate revenue; the ability of the Company to enter into and meet the obligations under partnership and collaboration agreements; the ability of the Company to grow and manage growth profitability and retain its key employees; the Company's financial and business performance, including the Company's financial projections and business metrics; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans; the Company's inability to anticipate the future market demands and future needs of its customers; the impact of component shortages, suppliers' lack of production capacity, natural disasters or pandemics on the Company's sourcing operations and supply chain; the Company's future capital requirements and sources and uses of cash; the ability of the Company to raise sufficient capital to fund its operations; the ability to implement business plans, forecasts, and other expectations, including the growth of the 5G market; the risk that the Company may not be able to repay its debt; the risk of economic downturns that affects the Company's business operation and financial performance; the risk that the Company may not be able to develop and design its products acceptable to its customers; actual or potential conflicts of interest of the Company's management with its public stockholders; and other risks and uncertainties indicated from time to time in the Company's filings with SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and those disclosures under the "Risk Factors" section therein. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
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Trane Technologies Reports Strong Second Quarter Results; Raises Full-Year Revenue and EPS Guidance
Highlights (second-quarter 2025 versus second-quarter 2024, unless otherwise noted): Record enterprise bookings of $5.6 billion, up 5 percent; organic bookings up 4 percent Bookings strength led by Americas Commercial HVAC applied solutions up over 60 percent GAAP continuing EPS of $3.87; adjusted continuing EPS* of $3.88, up 18 percent Enterprise backlog of $7.1 billion, up 6 percent versus year-end 2024 *This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations. SWORDS, Ireland, July 30, 2025--(BUSINESS WIRE)--Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $3.87 for the second quarter of 2025. Adjusted continuing EPS was $3.88, up 18 percent. Second-Quarter 2025 Results Financial Comparisons - Second-Quarter Continuing Operations $, millions except EPS Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $5,626 $5,340 5% 4% Net Revenues $5,746 $5,307 8% 7% GAAP Operating Income $1,164 $1,034 13% GAAP Operating Margin 20.3% 19.5% 80 bps Adjusted Operating Income* $1,166 $1,027 14% Adjusted Operating Margin* 20.3% 19.4% 90 bps Adjusted EBITDA* $1,250 $1,119 12% Adjusted EBITDA Margin* 21.8% 21.1% 70 bps GAAP Continuing EPS $3.87 $3.33 16% Adjusted Continuing EPS $3.88 $3.30 18% Pre-Tax Non-GAAP Adjustments, net** $2.0 $(7.1) $9.1 **For details see table 2 and 3 of the news release. "In the second quarter, we continued our consistent track record of leading financial results with record enterprise bookings and revenue and 18 percent earnings per share growth," said Dave Regnery, chair and CEO, Trane Technologies. "Our performance continues to be led by Americas Commercial HVAC, with strong demand for our sustainable solutions across a broad base of highly complex projects. In the second quarter, orders for our bespoke applied solutions were up over 60 percent, adding to our backlog and our visibility to future equipment and services revenues. With our leading innovation, elevated backlog and strong financial position, we are confident in raising our full year revenue and EPS guidance and are well positioned to deliver differentiated shareholder value over the long term." Highlights from the Second Quarter of 2025 (all comparisons against second-quarter 2024 unless otherwise noted) Delivered strong revenue, operating income, EBITDA and EPS growth. Strong bookings of $5.6 billion, up 5 percent; organic bookings up 4 percent. Bookings strength led by Commercial HVAC up mid-teens, with a book-to bill greater than 100 percent in Commercial HVAC in all regions. Backlog of $7.1 billion was up 6 percent versus year-end 2024 and down approximately $125 million sequentially as growth in Commercial HVAC backlog was offset by declines in Residential and Transport. Enterprise reported revenues were up 8 percent; organic revenues were up 7 percent. GAAP operating margin was up 80 basis points, adjusted operating margin was up 90 basis points and adjusted EBITDA margin was up 70 basis points. Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Second-Quarter Business Review (all comparisons against second-quarter 2024 unless otherwise noted) Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, energy services and solutions, residential heating and cooling; and transport refrigeration systems and solutions. $, millions Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $4,543.5 $4,221.9 8% 7% Net Revenues $4,692.3 $4,290.9 9% 9% GAAP Operating Income $1,052.5 $912.1 15% GAAP Operating Margin 22.4% 21.3% 110 bps Adjusted Operating Income $1,052.8 $903.9 16% Adjusted Operating Margin 22.4% 21.1% 130 bps Adjusted EBITDA $1,125.3 $978.2 15% Adjusted EBITDA Margin 24.0% 22.8% 120 bps Strong bookings of $4.5 billion, up 8 percent; organic bookings up 7 percent. Bookings strength led by Americas Commercial HVAC, up over 20 percent. Reported and organic revenues were both up 9 percent. GAAP operating margin was up 110 basis points, adjusted operating margin was up 130 basis points and adjusted EBITDA margin was up 120 basis points. Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions. $, millions Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $704.7 $669.4 5% (2)% Net Revenues $707.9 $645.3 10% 3% GAAP Operating Income $122.7 $120.7 2% GAAP Operating Margin 17.3% 18.7% (140) bps Adjusted Operating Income $122.7 $121.0 1% Adjusted Operating Margin 17.3% 18.8% (150) bps Adjusted EBITDA $129.5 $131.0 (1)% Adjusted EBITDA Margin 18.3% 20.3% (200) bps Bookings were up 5 percent; organic bookings were down 2 percent. Reported revenues were up 10 percent including approximately 5 percentage points of positive foreign exchange impact and 2 percentage points related to acquisitions. Organic revenues were up 3 percent. GAAP operating margin was down 140 basis points; adjusted operating margin was down 150 basis points and adjusted EBITDA margin was down 200 basis points. Continued high levels of business reinvestment and inflation offset volume growth and productivity. Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions. $, millions Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $377.7 $448.8 (16)% (17)% Net Revenues $346.2 $371.2 (7)% (8)% GAAP Operating Income $73.7 $89.3 (17)% GAAP Operating Margin 21.3% 24.1% (280) bps Adjusted Operating Income $74.7 $89.3 (16)% Adjusted Operating Margin 21.6% 24.1% (250) bps Adjusted EBITDA $80.8 $94.8 (15)% Adjusted EBITDA Margin 23.3% 25.5% (220) bps Bookings were down 16 percent. Organic bookings were down 17 percent. Reported revenues were down 7 percent including approximately 1 percentage point of positive foreign exchange impact. Organic revenues were down 8 percent. GAAP operating margin was down 280 basis points, adjusted operating margin was down 250 basis points and adjusted EBITDA margin was down 220 basis points. Continued high levels of business reinvestment, lower volumes and inflation offset productivity. Balance Sheet and Cash Flow $, millions Q2 2025 Q2 2024 Y-O-Y Change Cash From Continuing Operating Activities Y-T-D $1,044 $959 $85 Free Cash Flow Y-T-D* $841 $810 $31 Working Capital/Revenue* 3.7% 4.2% (50 bps) Cash Balance June 30 $774 $1,326 ($552) Debt Balance June 30 $4,615 $5,268 ($653) Through June 30, 2025, cash flow from continuing operating activities was approximately $1 billion and free cash flow was $841 million. Year-to-date through July, the Company deployed or committed approximately $1.8 billion of capital including approximately $420 million for dividends, $275 million for M&A, $1 billion for share repurchases and $150 million for debt retirement. The Company expects to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time. Company Raises Full-Year 2025 Guidance The Company expects full-year 2025 reported revenue growth of approximately 9 percent, including 100 basis points related to acquisitions, and organic revenue growth of approximately 8 percent versus full-year 2024. The Company expects GAAP continuing EPS for full-year 2025 of approximately $13.30, including $0.25 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2025 of approximately $13.05. Additional information regarding the Company's 2025 guidance is included in the Company's second-quarter earnings presentation found at in the Investor Relations section. This news release includes "forward-looking" statements within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our future financial performance and targets, including revenue, EPS, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; trade protection measures such as import or export restrictions, tariffs, or quotas; changing energy prices; worldwide geopolitical conflict; financial institution disruptions; climate change and our sustainability strategies and goals; future health care emergencies on our business, our suppliers and our customers; commodity shortages; price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2024, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements. This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release. All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders. Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit # # # 7/30/2025 (See Accompanying Tables) Table 1: Condensed Consolidated Income Statement Tables 2 - 5: Reconciliation of GAAP to Non-GAAP Table 6: Condensed Consolidated Balance Sheets Table 7: Condensed Consolidated Statement of Cash Flows Table 8: Balance Sheet Metrics and Free Cash Flow *Q2 and Year-to-Date Non-GAAP measures definitions Adjusted operating income in 2025 is defined as GAAP operating income adjusted for restructuring costs, merger and acquisition transaction costs, and a non-cash adjustment for contingent consideration. Adjusted operating income in 2024 is defined as GAAP operating income adjusted for restructuring costs, merger and acquisition transaction costs, legacy legal liability, and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of the news release. Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues. Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2025 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, and a non-cash adjustment for contingent consideration. Adjusted net earnings in 2024 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, legacy legal liability, and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted continuing EPS in 2025 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, and a non-cash adjustment for contingent consideration. Adjusted continuing EPS in 2024 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, legacy legal liability, and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted EBITDA in 2025 is defined as adjusted operating income adjusted to exclude depreciation and amortization expense and include other income / (expense), net. Adjusted EBITDA in 2024 is defined as adjusted operating income adjusted to exclude depreciation and amortization expense and include other income / (expense), net. Other income / (expense), net mainly comprises interest income, foreign currency exchange gains and losses and certain components pension and postretirement benefit costs. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and 5 of the news release. Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues. Adjusted effective tax rate for 2025 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs and merger and acquisition transaction costs divided by adjusted net earnings. Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs, merger and acquisition transaction costs, and legacy legal liability divided by adjusted net earnings. This measure allows for a direct comparison of the effective tax rate between periods. Free cash flow in 2025 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs. Free cash flow in 2024 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs. Please refer to the free cash flow reconciliation on table 8 of the news release. Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q2 2025) less the prior period (e.g. Q2 2024), divided by the change in net revenues for the current period less the prior period. Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions. Organic bookings is defined as reported orders in the current period adjusted for the impact of currency and acquisitions. Working capital measures a firm's operating liquidity position and its overall effectiveness in managing the enterprise's current accounts. Working capital is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exclude short-term debt, dividend payable and income tax payables. Working capital as a percent of revenue is calculated by dividing the working capital balance (e.g. as of June 30) by the annualized revenue for the period (e.g. reported revenues for the three months ended June 30 multiplied by 4 to annualize for a full year). The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). The following schedules provide non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP. The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies. We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations. Non-GAAP financial measures assist investors with analyzing our business results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. Presentation of these non-GAAP financial measures helps investors and management to assess the operating performance of the Company. As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results. Table 1 TRANE TECHNOLOGIES PLC Condensed Consolidated Income Statement (In millions, except per share amounts) UNAUDITED For the quarter For the six months ended June 30, ended June 30, 2025 2024 2025 2024 Net revenues $ 5,746.4 $ 5,307.4 $ 10,434.9 $ 9,523.0 Cost of goods sold (3,585.8 ) (3,371.9 ) (6,596.8 ) (6,127.6 ) Selling and administrative expenses (996.4 ) (901.3 ) (1,855.0 ) (1,727.4 ) Operating income 1,164.2 1,034.2 1,983.1 1,668.0 Interest expense (57.4 ) (57.5 ) (115.5 ) (115.5 ) Other income/(expense), net (14.1 ) (4.1 ) (22.0 ) (29.2 ) Earnings before income taxes 1,092.7 972.6 1,845.6 1,523.3 Provision for income taxes (216.7 ) (205.8 ) (351.6 ) (311.3 ) Earnings from continuing operations 876.0 766.8 1,494.0 1,212.0 Discontinued operations, net of tax 2.9 (6.9 ) (6.0 ) (12.3 ) Net earnings 878.9 759.9 1,488.0 1,199.7 Less: Net earnings from continuing operations attributable to noncontrolling interests (4.1 ) (4.6 ) (8.3 ) (8.1 ) Net earnings attributable to Trane Technologies plc $ 874.8 $ 755.3 $ 1,479.7 $ 1,191.6 Amounts attributable to Trane Technologies plc ordinary shareholders: Continuing operations $ 871.9 $ 762.2 $ 1,485.7 $ 1,203.9 Discontinued operations 2.9 (6.9 ) (6.0 ) (12.3 ) Net earnings $ 874.8 $ 755.3 $ 1,479.7 $ 1,191.6 Diluted earnings (loss) per share attributable to Trane Technologies plc ordinary shareholders: Continuing operations $ 3.87 $ 3.33 $ 6.58 $ 5.25 Discontinued operations 0.02 (0.03 ) (0.03 ) (0.05 ) Net earnings $ 3.89 $ 3.30 $ 6.55 $ 5.20 Weighted-average number of common shares outstanding: Diluted 225.1 228.7 225.8 229.1 Table 2 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions, except per share amounts) UNAUDITED For the quarter ended June 30, 2025 For the six months ended June 30, 2025 As As As As Reported Adjustments Adjusted Reported Adjustments Adjusted Net revenues $ 5,746.4 $ — $ 5,746.4 $ 10,434.9 $ — $ 10,434.9 Operating income 1,164.2 2.0 (a,b) 1,166.2 1,983.1 (57.2 ) (a,b,c) 1,925.9 Operating margin 20.3 % 20.3 % 19.0 % 18.5 % Earnings from continuing operations before income taxes 1,092.7 2.0 (a,b) 1,094.7 1,845.6 (57.2 ) (a,b,c) 1,788.4 Provision for income taxes (216.7 ) (0.5 ) (d) (217.2 ) (351.6 ) (1.0 ) (d) (352.6 ) Tax rate 19.8 % 19.8 % 19.1 % 19.7 % Earnings from continuing operations attributable to Trane Technologies plc $ 871.9 $ 1.5 (e) $ 873.4 $ 1,485.7 $ (58.2 ) (e) $ 1,427.5 Diluted earnings per common share Continuing operations $ 3.87 $ 0.01 $ 3.88 $ 6.58 $ (0.26 ) $ 6.32 Weighted-average number of common shares outstanding: Diluted 225.1 — 225.1 225.8 — 225.8 Detail of Adjustments: (a) Restructuring costs (COGS & SG&A) $ 1.3 $ 1.3 (b) M&A transaction costs (SG&A) 0.7 2.7 (c) Non-cash adjustment for contingent consideration (SG&A) — (61.2 ) (d) Tax impact of adjustments (a,b) (0.5 ) (1.0 ) (e) Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc $ 1.5 $ (58.2 ) Pre-tax impact of adjustments on cost of goods sold $ 0.2 $ 0.2 Pre-tax impact of adjustments on selling & administrative expenses 1.8 (57.4 ) Pre-tax impact of adjustments on operating income $ 2.0 $ (57.2 ) Table 3 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions, except per share amounts) UNAUDITED For the quarter ended June 30, 2024 For the six months ended June 30, 2024 As As As As Reported Adjustments Adjusted Reported Adjustments Adjusted Net revenues $ 5,307.4 $ — $ 5,307.4 $ 9,523.0 $ — $ 9,523.0 Operating income 1,034.2 (7.1 ) (a,b,c,d) 1,027.1 1,668.0 (1.3 ) (a,b,c,d) 1,666.7 Operating margin 19.5 % 19.4 % 17.5 % 17.5 % Earnings from continuing operations before income taxes 972.6 (7.1 ) (a,b,c,d) 965.5 1,523.3 (1.3 ) (a,b,c,d) 1,522.0 Provision for income taxes (205.8 ) (0.3 ) (e) (206.1 ) (311.3 ) (1.7 ) (e) (313.0 ) Tax rate 21.2 % 21.3 % 20.4 % 20.6 % Earnings from continuing operations attributable to Trane Technologies plc $ 762.2 $ (7.4 ) (f) $ 754.8 $ 1,203.9 $ (3.0 ) (f) $ 1,200.9 Diluted earnings per common share Continuing operations $ 3.33 $ (0.03 ) $ 3.30 $ 5.25 $ (0.01 ) $ 5.24 Weighted-average number of common shares outstanding: Diluted 228.7 — 228.7 229.1 — 229.1 Detail of Adjustments: (a) Restructuring costs (COGS and SG&A) $ 0.8 $ 5.5 (b) Legacy legal liability (SG&A) 0.6 1.7 (c) M&A transaction costs (SG&A) 0.4 0.4 (d) Non-cash adjustment for contingent consideration (SG&A) (8.9 ) (8.9 ) (e) Tax impact of adjustments (a,b,c) (0.3 ) (1.7 ) (f) Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc $ (7.4 ) $ (3.0 ) Pre-tax impact of adjustments on cost of goods sold $ 0.6 $ 0.6 Pre-tax impact of adjustments on selling & administrative expenses (7.7 ) (1.9 ) Pre-tax impact of adjustments on operating income $ (7.1 ) $ (1.3 ) Table 4 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED For the quarter ended June 30, 2025 For the quarter ended June 30, 2024 As Reported Margin As Reported Margin Americas Net revenues $ 4,692.3 $ 4,290.9 Segment operating income $ 1,052.5 22.4 % $ 912.1 21.3 % Restructuring/Other (a) 0.3 — % (8.2 ) (0.2 )% Adjusted operating income * 1,052.8 22.4 % 903.9 21.1 % Depreciation and amortization 76.3 1.7 % 76.5 1.8 % Other income/(expense), net (3.8 ) (0.1 )% (2.2 ) (0.1 )% Adjusted EBITDA * $ 1,125.3 24.0 % $ 978.2 22.8 % Europe, Middle East & Africa Net revenues $ 707.9 $ 645.3 Segment operating income $ 122.7 17.3 % $ 120.7 18.7 % Restructuring/Other (a) — — % 0.3 0.1 % Adjusted operating income * 122.7 17.3 % 121.0 18.8 % Depreciation and amortization 12.0 1.7 % 10.7 1.7 % Other income/(expense), net (5.2 ) (0.7 )% (0.7 ) (0.2 )% Adjusted EBITDA * $ 129.5 18.3 % $ 131.0 20.3 % Asia Pacific Net revenues $ 346.2 $ 371.2 Segment operating income $ 73.7 21.3 % $ 89.3 24.1 % Restructuring/Other (a) 1.0 0.3 % — — % Adjusted operating income * 74.7 21.6 % 89.3 24.1 % Depreciation and amortization 4.6 1.3 % 4.4 1.1 % Other income/(expense), net 1.5 0.4 % 1.1 0.3 % Adjusted EBITDA * $ 80.8 23.3 % $ 94.8 25.5 % Corporate Unallocated corporate expense $ (84.7 ) $ (87.9 ) Restructuring/Other (b) 0.7 0.8 Adjusted corporate expense * (84.0 ) (87.1 ) Depreciation and amortization 5.2 4.6 Other income/(expense), net (6.6 ) (2.3 ) Adjusted EBITDA * $ (85.4 ) $ (84.8 ) Total Company Net revenues $ 5,746.4 $ 5,307.4 Operating income $ 1,164.2 20.3 % $ 1,034.2 19.5 % Restructuring/Other (a,b) 2.0 — % (7.1 ) (0.1 )% Adjusted operating income * 1,166.2 20.3 % 1,027.1 19.4 % Depreciation and amortization 98.1 1.7 % 96.2 1.8 % Other income/(expense), net (14.1 ) (0.2 )% (4.1 ) (0.1 )% Adjusted EBITDA * $ 1,250.2 21.8 % $ 1,119.2 21.1 % *Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions. (a) Restructuring/Other in 2025 and 2024 includes restructuring amounts unless specified otherwise. Restructuring/Other within Americas in 2024 includes ($8.9) million of a non-cash adjustment for contingent consideration. (b) Restructuring/Other within Corporate in 2025 includes $0.7 million of M&A transaction costs. Restructuring/Other within Corporate in 2024 includes $0.6 million and $0.4 million of legacy legal liability and M&A transaction costs, respectively. Table 5 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED For the quarter ended June 30, 2025 2024 Total Company Adjusted EBITDA * $ 1,250.2 $ 1,119.2 Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc Depreciation and amortization (98.1 ) (96.2 ) Interest expense (57.4 ) (57.5 ) Provision for income taxes (216.7 ) (205.8 ) Restructuring costs (1.3 ) (0.8 ) M&A transaction costs (0.7 ) (0.4 ) Legacy legal liability — (0.6 ) Non-cash adjustment for contingent consideration — 8.9 Discontinued operations, net of tax 2.9 (6.9 ) Net earnings from continuing operations attributable to noncontrolling interests (4.1 ) (4.6 ) Net earnings attributable to Trane Technologies plc $ 874.8 $ 755.3 *Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions. Table 6 TRANE TECHNOLOGIES PLC Condensed Consolidated Balance Sheets (In millions) UNAUDITED June 30, December 31, 2025 2024 ASSETS Cash and cash equivalents $ 774.2 $ 1,590.1 Accounts and notes receivable, net 3,607.1 3,090.2 Inventories 2,361.0 1,971.5 Other current assets 763.9 686.0 Total current assets 7,506.2 7,337.8 Property, plant and equipment, net 2,177.5 2,024.5 Goodwill 6,446.1 6,127.9 Intangible assets, net 3,308.9 3,308.2 Other noncurrent assets 1,551.8 1,348.3 Total assets $ 20,990.5 $ 20,146.7 LIABILITIES AND EQUITY Accounts payable $ 2,528.6 $ 2,148.0 Accrued expenses and other current liabilities 3,576.1 3,468.7 Short-term borrowings and current maturities of long-term debt 694.6 452.2 Total current liabilities 6,799.3 6,068.9 Long-term debt 3,920.4 4,318.1 Other noncurrent liabilities 2,415.6 2,272.8 Total equity 7,855.2 7,486.9 Total liabilities and equity $ 20,990.5 $ 20,146.7 Table 7 TRANE TECHNOLOGIES PLC Condensed Consolidated Statement of Cash Flows (In millions) UNAUDITED For the six months ended June 30, 2025 2024 Operating Activities Earnings from continuing operations $ 1,494.0 $ 1,212.0 Depreciation and amortization 197.2 187.7 Changes in assets and liabilities and other non-cash items (647.7 ) (441.1 ) Net cash provided by (used in) continuing operating activities 1,043.5 958.6 Net cash provided by (used in) discontinued operating activities (11.9 ) (15.5 ) Net cash provided by (used in) operating activities 1,031.6 943.1 Investing Activities Capital expenditures, net (208.8 ) (156.7 ) Acquisition of businesses, net of cash acquired (275.5 ) (5.2 ) Purchases of short-term investments, net — (450.0 ) Other investing activities, net (1.7 ) (14.7 ) Net cash provided by (used in) investing activities (486.0 ) (626.6 ) Financing Activities Net proceeds from (payments of) debt (157.3 ) 491.0 Dividends paid to ordinary shareholders (420.0 ) (379.4 ) Repurchase of ordinary shares (879.6 ) (624.4 ) Other financing activities, net (24.0 ) 8.5 Net cash provided by (used in) financing activities (1,480.9 ) (504.3 ) Effect of exchange rate changes on cash and cash equivalents 119.4 (32.9 ) Net increase (decrease) in cash and cash equivalents (815.9 ) (220.7 ) Cash and cash equivalents - beginning of period 1,590.1 1,095.3 Cash and cash equivalents - end of period $ 774.2 $ 874.6 Table 8 TRANE TECHNOLOGIES PLC Balance Sheet Metrics and Free Cash Flow ($ in millions) UNAUDITED June 30, June 30, December 31, 2025 2024 2024 Net Receivables $ 3,607.1 $ 3,433.3 $ 3,090.2 Days Sales Outstanding 57.3 59.0 57.9 Net Inventory $ 2,361.0 $ 2,203.5 $ 1,971.5 Inventory Turns 6.1 6.1 6.4 Accounts Payable $ 2,528.6 $ 2,180.1 $ 2,148.0 Days Payable Outstanding 64.3 59.0 62.0 ------------------------------------------------------------------------------------------------------------------------------------------------------- Six months ended Six months ended June 30, 2025 June 30, 2024 Net cash flow provided by continuing operating activities $ 1,043.5 $ 958.6 Capital expenditures (208.8 ) (156.7 ) Cash payments for restructuring 2.0 5.9 Legacy legal liability 0.6 1.7 M&A transaction costs 4.1 0.6 Free cash flow * $ 841.4 $ 810.1 *Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions. 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Business Wire
18 minutes ago
- Business Wire
Materion Corporation Reports Second-Quarter 2025 Financial Results
MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--Materion Corporation (NYSE: MTRN) today reported second-quarter 2025 financial results and affirmed full year outlook. Financial Summary Net sales were $431.7 million; value-added sales 1 were $269.0 million Net income of $25.1 million, or $1.21 per share, diluted, versus net income of $19.0 million, or $0.91 per share, in the prior year quarter; adjusted earnings of $1.37 per share versus $1.42 in the prior year quarter Operating profit of $36.8 million versus operating profit of $32.1 million in the prior year quarter; adjusted EBITDA 2 of $55.8 million, versus $57.8 million in the prior year quarter Business Highlights Delivered second-quarter record adjusted EBITDA margin of 20.8% Generated ~$36 million free cash flow 3 in the quarter Repurchased 100,000 shares during the quarter at an average of ~$78/share Completed acquisition to expand semiconductor footprint and capabilities in Asia 'Our business performed very well in the quarter, delivering record margins and strong cash flow, despite the anticipated slowdown in demand from our customers in China,' said Jugal Vijayvargiya, President & CEO of Materion. 'These results are a testament to the outstanding work our teams have done to improve the cost profile and operational performance of our company.' 'Looking ahead, we are encouraged by positive signs we are seeing in several of our end markets. As order rates start to improve and we continue to win new business, we feel confident in affirming our full year guide, despite continued uncertainty surrounding the tariff environment.' SECOND-QUARTER 2025 RESULTS Net sales for the quarter were $431.7 million, compared to $425.9 million in the prior year period. Value-added sales were $269.0 million for the quarter, down 2% organic 4 from the prior year period due to lower PMI shipments and sales into China. This decrease was partially offset by strength in aerospace & defense, energy and non-China semiconductor. Operating profit for the quarter was $36.8 million and net income was $25.1 million, or $1.21 per diluted share, compared to operating profit of $32.1 million and net income of $19.0 million, or $0.91 per share, in the prior year period. Excluding special items 5, adjusted EBITDA was $55.8 million, or 20.8% of value-added sales, a second-quarter record, compared to $57.8 million or 20.7% of value-added sales in the prior year period. This decrease was driven by lower volume, partially offset by continued strong operational performance and structural cost improvements. Adjusted net income was $28.5 million excluding acquisition amortization, or $1.37 per diluted share, compared to $1.42 per share in the prior year period. OUTLOOK The business performed well in the first half of the year, driving strong results in a volatile and uncertain macroeconomic environment. As we look to the second half, we remain focused on delivering to our customers, driving above market growth and capturing new business opportunities in several key end markets. With improving market dynamics, we expect to deliver a strong second half. With that, we are affirming our initial guide of $5.30 to $5.70 adjusted earnings per share for the full year. ADJUSTED EARNINGS GUIDANCE It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 through 9 to this press release. CONFERENCE CALL Materion Corporation will host an investor conference call with analysts at 10:00 a.m. Eastern Time, July 30, 2025. The conference call will be available via webcast through the Company's website at By phone, please dial (888) 506-0062. Calls outside the U.S. can dial (973) 528-0011; please reference participant access code of 928518. A replay of the call will be available until August 13, 2025 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 51694. The call will also be archived on the Company's website. FOOTNOTES 1 Value-added sales deducts the impact of pass-through metals from net sales 2 EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization 3 See reconciliation of operating cash flow to free cash flow in Attachment 9 4 Excludes value-added sales from the divested Albuquerque, New Mexico large area targets business sold in 2024 5 Details of the special items can be found in Attachments 4 through 9 ABOUT MATERION Materion Corporation is a global leader in advanced materials solutions for high-performance industries including semiconductor, industrial, aerospace & defense, energy and automotive. With nearly 100 years of expertise in specialty engineered alloy systems, inorganic chemicals and powders, precious and non-precious metals, beryllium and beryllium composites, and precision filters and optical coatings, Materion partners with customers to enable breakthrough solutions that move the world forward. Headquartered in Mayfield Heights, Ohio, the Company employs more than 3,000 talented people worldwide, serving customers in more than 60 countries. FORWARD-LOOKING STATEMENTS Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. These factors include, in addition to those mentioned elsewhere herein: the global economy, including inflationary pressures, potential future recessionary conditions and the impact of tariffs and trade agreements; the impact of any U.S. Federal Government shutdowns or sequestrations; the condition of the markets which we serve, whether defined geographically or by segment; changes in product mix and the financial condition of customers; our success in developing and introducing new products and new product ramp-up rates; our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values; our success in identifying acquisition candidates and in acquiring and integrating such businesses; the impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions; our success in implementing our strategic plans and the timely and successful start-up and completion of any capital projects; other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal consignment fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company's stock price on the cost of incentive compensation plans; the uncertainties related to the impact of war, terrorist activities, and acts of God; changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations, including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; the conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; the disruptions in operations from, and other effects of, catastrophic and other extraordinary events including outbreaks of infectious diseases and the conflict between Russia and Ukraine; realization of expected financial benefits expected from the Inflation Reduction Act of 2022; and the risk factors set forth in Part 1, Item 1A of the Company's 2024 Annual Report on Form 10-K. Attachment 2 Materion Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) (Thousands) June 27, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 12,591 $ 16,713 Accounts receivable, net 198,377 193,793 Inventories, net 444,637 441,299 Prepaid and other current assets 79,508 72,419 Total current assets 735,113 724,224 Deferred income taxes 3,055 2,964 Property, plant, and equipment 1,357,772 1,315,586 Less allowances for depreciation, depletion, and amortization (825,175 ) (804,781 ) Property, plant, and equipment—net 532,597 510,805 Operating lease, right-of-use assets 75,363 64,449 Intangible assets, net 107,627 109,312 Other assets 21,757 22,140 Goodwill 265,695 263,738 Total Assets $ 1,741,207 $ 1,697,632 Liabilities and Shareholders' Equity Current liabilities Short-term debt $ 19,880 $ 34,274 Accounts payable 132,338 105,901 Salaries and wages 15,890 20,939 Other liabilities and accrued items 43,658 47,523 Income taxes 3,236 4,906 Unearned revenue 16,899 13,191 Total current liabilities 231,901 226,734 Other long-term liabilities 12,541 12,013 Operating lease liabilities 72,165 62,626 Finance lease liabilities 13,612 12,404 Retirement and post-employment benefits 27,185 26,411 Unearned income 61,642 75,769 Long-term income taxes 2,449 1,818 Deferred income taxes 3,370 3,242 Long-term debt 405,697 407,734 Shareholders' equity 910,645 868,881 Total Liabilities and Shareholders' Equity $ 1,741,207 $ 1,697,632 Expand Attachment 3 Materion Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Six Months Ended (Thousands) June 28, 2024 Cash flows from operating activities: Net income $ 42,838 $ 32,445 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization 34,047 32,698 Amortization of deferred financing costs in interest expense 1,412 857 Stock-based compensation expense (non-cash) 5,437 5,334 Deferred income tax expense (benefit) (25 ) 926 Changes in assets and liabilities: Accounts receivable (949 ) 5,274 Inventory 94 (24,312 ) Prepaid and other current assets (3,029 ) (12,494 ) Accounts payable and accrued expenses 4,193 (20,863 ) Unearned revenue (8,525 ) (10,340 ) Interest and taxes payable (1,230 ) (3,906 ) Other-net (8,821 ) 858 Net cash provided by operating activities 65,442 6,477 Cash flows from investing activities: Payments for purchase of property, plant, and equipment (25,003 ) (38,412 ) Payments for mine development (10,175 ) (10,375 ) Proceeds from sale of property, plant, and equipment 266 527 Net cash used in investing activities (34,912 ) (48,260 ) Cash flows from financing activities: Proceeds from borrowings under credit facilities, net (2,219 ) 73,649 Repayment of long-term debt (15,111 ) (15,172 ) Principal payments under finance lease obligations (306 ) (382 ) Cash dividends paid (5,705 ) (5,493 ) Deferred financing costs (2,856 ) — Repurchase of common stock (7,843 ) — Payments of withholding taxes for stock-based compensation awards (2,337 ) (6,402 ) Net cash provided by/(used in) financing activities (36,377 ) 46,200 Effects of exchange rate changes 1,725 (613 ) Net change in cash and cash equivalents (4,122 ) 3,804 Cash and cash equivalents at beginning of period 16,713 13,294 Cash and cash equivalents at end of period $ 12,591 $ 17,098 Expand Attachment 4 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net Sales Performance Materials $ 182.8 $ 187.5 $ 356.8 $ 356.2 Electronic Materials 224.4 212.7 449.2 404.7 Precision Optics 24.5 25.7 46.0 50.3 Other — — — — Total $ 431.7 $ 425.9 $ 852.0 $ 811.2 Less: Pass-through Metal Cost Performance Materials $ 14.3 $ 14.4 $ 28.3 $ 27.5 Electronic Materials 148.3 131.6 295.3 245.9 Precision Optics 0.1 0.1 0.1 0.1 Other — — — — Total $ 162.7 $ 146.1 $ 323.7 $ 273.5 Value-added Sales (non-GAAP) Performance Materials $ 168.5 $ 173.1 $ 328.5 $ 328.7 Electronic Materials 76.1 81.1 153.9 158.8 Precision Optics 24.4 25.6 45.9 50.2 Other — — — — Total $ 269.0 $ 279.8 $ 528.3 $ 537.7 Gross Margin Performance Materials (1) $ 48.9 $ 48.7 $ 97.1 $ 88.8 Electronic Materials (1) 27.2 25.2 51.0 50.2 Precision Optics (1) 6.5 7.0 10.7 13.1 Other — — — — Total $ 82.6 $ 80.9 $ 158.8 $ 152.1 (1) See reconciliation of gross margin to adjusted gross margin in Attachment 8 Note: Quarterly information presented within this document and previously disclosed quarterly information may not equal the total computed for the year due to rounding Expand Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Operating Profit Performance Materials $ 31.0 $ 31.9 $ 62.3 $ 54.5 Electronic Materials 13.3 8.9 20.1 18.7 Precision Optics (0.6 ) (1.4 ) (4.7 ) (4.7 ) Other (6.9 ) (7.3 ) (13.7 ) (14.2 ) Total $ 36.8 $ 32.1 $ 64.0 $ 54.3 Non-Operating (Income)/Expense Performance Materials $ 0.1 $ 0.2 $ 0.1 $ 0.3 Electronic Materials (0.1 ) — (0.1 ) — Precision Optics (0.1 ) (0.2 ) (0.4 ) (0.3 ) Other (0.5 ) (0.6 ) (0.9 ) (1.3 ) Total $ (0.6 ) $ (0.6 ) $ (1.3 ) $ (1.3 ) Depreciation, Depletion, and Amortization Performance Materials $ 10.2 $ 8.7 $ 19.6 $ 16.9 Electronic Materials 4.2 4.5 8.5 9.1 Precision Optics 2.6 2.8 4.9 5.7 Other 0.5 0.5 1.0 1.0 Total $ 17.5 $ 16.5 $ 34.0 $ 32.7 Segment EBITDA Performance Materials $ 41.1 $ 40.4 $ 81.8 $ 71.1 Electronic Materials 17.6 13.4 28.7 27.8 Precision Optics 2.1 1.6 0.6 1.3 Other (5.9 ) (6.2 ) (11.8 ) (11.9 ) Total $ 54.9 $ 49.2 $ 99.3 $ 88.3 Special Items (2) Performance Materials $ 0.4 $ 2.7 $ 0.6 $ 7.7 Electronic Materials 0.2 3.7 2.4 3.8 Precision Optics 0.1 0.5 1.5 1.2 Other 0.2 1.7 0.7 2.0 Total $ 0.9 $ 8.6 $ 5.2 $ 14.7 Adjusted EBITDA Excluding Special Items Performance Materials $ 41.5 $ 43.1 $ 82.4 $ 78.8 Electronic Materials 17.8 17.1 31.1 31.6 Precision Optics 2.2 2.1 2.1 2.5 Other (5.7 ) (4.5 ) (11.1 ) (9.9 ) Total $ 55.8 $ 57.8 $ 104.5 $ 103.0 Expand The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium, rhodium, rhenium, and osmium is passed through to customers and, therefore, the trends and comparisons of net sales are affected by movements in the market price of these metals. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through market metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales. The Company's pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company's results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company's intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals. Expand Attachment 5 Materion Corporation and Subsidiaries (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 431.7 $ 425.9 $ 852.0 $ 811.2 Pass-through metal cost 162.7 146.1 323.7 273.5 Value-added sales $ 269.0 $ 279.8 $ 528.3 $ 537.7 Net income $ 25.1 $ 19.0 $ 42.8 $ 32.4 Income tax expense 4.0 4.9 7.3 6.1 Interest expense - net 8.3 8.8 15.2 17.1 Depreciation, depletion and amortization 17.5 16.5 34.0 32.7 Consolidated EBITDA $ 54.9 $ 49.2 $ 99.3 $ 88.3 Net Income as a % of Net sales 5.8 % 4.5 % 5.0 % 4.0 % Net Income as a % of Value-added sales 9.3 % 6.8 % 8.1 % 6.0 % EBITDA as a % of Net sales 12.7 % 11.6 % 11.7 % 10.9 % EBITDA as a % of Value-added sales 20.4 % 17.6 % 18.8 % 16.4 % Special items Restructuring and cost reduction $ 0.5 $ 6.7 $ 2.6 $ 9.1 Additional start up resources and scrap — 1.2 — 4.9 Merger, acquisition and divestiture related costs 0.2 0.7 2.3 0.7 Business transformation costs 0.2 — 0.3 — Total special items 0.9 8.6 5.2 14.7 Adjusted EBITDA $ 55.8 $ 57.8 $ 104.5 $ 103.0 Adjusted EBITDA as a % of Net sales 12.9 % 13.6 % 12.3 % 12.7 % Adjusted EBITDA as a % of Value-added sales 20.8 % 20.7 % 19.8 % 19.2 % In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 6, we have adjusted the results for certain special items, including the following: Restructuring and cost reduction – Costs include restructuring charges, costs associated with temporarily idled facilities as a result of decreased demand and costs associated with disposal of assets associated with obsolete products. Additional start up resources and scrap – Represents incremental resource, consulting and specialists costs incurred related to the ramp of the precision clad strip facility and scrap related to product qualifications. Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals. Business transformation costs – Represents project management and implementation expenses related to the Company's automation and transformation initiatives. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations. Expand Attachment 6 Second Quarter Ended Six Months Ended (Millions) June 27, 2025 Diluted EPS June 28, 2024 Diluted EPS June 27, 2025 Diluted EPS June 28, 2024 Diluted EPS Net income and EPS $ 25.1 $ 1.21 $ 19.0 $ 0.91 $ 42.8 $ 2.05 $ 32.4 $ 1.55 Special items Restructuring and cost reduction $ 0.5 $ 6.7 $ 2.6 $ 9.1 Additional start up resources and scrap — 1.2 — 4.9 Merger, acquisition and divestiture related costs 0.2 0.7 2.3 0.7 Business transformation costs 0.2 — 0.3 — Debt extinguishment costs (1) 0.5 — 0.5 — Provision for income taxes (2) (0.2 ) (0.3 ) (0.7 ) (2.2 ) Total special items 1.2 0.05 8.3 0.40 5.0 0.24 12.5 0.60 Adjusted net income and adjusted EPS $ 26.3 $ 1.26 $ 27.3 $ 1.31 $ 47.8 $ 2.29 $ 44.9 $ 2.15 Acquisition amortization (net of tax) 2.2 0.11 2.4 0.11 4.4 0.21 4.9 0.23 Adjusted net income and adjusted EPS excl. amortization $ 28.5 $ 1.37 $ 29.7 $ 1.42 $ 52.2 $ 2.50 $ 49.8 $ 2.38 (1) Debt extinguishment costs - Represents debt extinguishment costs incurred in connection with the amendment of the Company's Credit Agreement in June 2025. (2) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of certain discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. Expand Attachment 7 Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA (Unaudited) Performance Materials Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 182.8 $ 187.5 $ 356.8 $ 356.2 Pass-through metal cost 14.3 14.4 28.3 27.5 Value-added sales $ 168.5 $ 173.1 $ 328.5 $ 328.7 EBITDA $ 41.1 $ 40.4 $ 81.8 $ 71.1 Restructuring and cost reduction 0.3 1.5 0.5 2.8 Business transformation costs 0.1 — 0.1 — Additional start up resources and scrap — 1.2 — 4.9 Adjusted EBITDA $ 41.5 $ 43.1 $ 82.4 $ 78.8 EBITDA as a % of Net sales 22.5 % 21.5 % 22.9 % 20.0 % EBITDA as a % of Value-added sales 24.4 % 23.3 % 24.9 % 21.6 % Adjusted EBITDA as a % of Net sales 22.7 % 23.0 % 23.1 % 22.1 % Adjusted EBITDA as a % of Value-added sales 24.6 % 24.9 % 25.1 % 24.0 % Electronic Materials Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 224.4 $ 212.7 $ 449.2 $ 404.7 Pass-through metal cost 148.3 131.6 295.3 245.9 Value-added sales $ 76.1 $ 81.1 $ 153.9 $ 158.8 EBITDA $ 17.6 $ 13.4 $ 28.7 $ 27.8 Restructuring and cost reduction 0.1 3.7 0.6 3.8 Merger, acquisition and divestiture related costs 0.1 — 1.8 — Adjusted EBITDA $ 17.8 $ 17.1 $ 31.1 $ 31.6 EBITDA as a % of Net sales 7.8 % 6.3 % 6.4 % 6.9 % EBITDA as a % of Value-added sales 23.1 % 16.5 % 18.6 % 17.5 % Adjusted EBITDA as a % of Net sales 7.9 % 8.0 % 6.9 % 7.8 % Adjusted EBITDA as a % of Value-added sales 23.4 % 21.1 % 20.2 % 19.9 % Precision Optics Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 24.5 $ 25.7 $ 46.0 $ 50.3 Pass-through metal cost 0.1 0.1 0.1 0.1 Value-added sales $ 24.4 $ 25.6 $ 45.9 $ 50.2 EBITDA $ 2.1 $ 1.6 $ 0.6 $ 1.3 Restructuring and cost reduction 0.1 0.5 1.5 1.2 Adjusted EBITDA $ 2.2 $ 2.1 $ 2.1 $ 2.5 EBITDA as a % of Net sales 8.6 % 6.2 % 1.3 % 2.6 % EBITDA as a % of Value-added sales 8.6 % 6.3 % 1.3 % 2.6 % Adjusted EBITDA as a % of Net sales 9.0 % 8.2 % 4.6 % 5.0 % Adjusted EBITDA as a % of Value-added sales 9.0 % 8.2 % 4.6 % 5.0 % Other Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 EBITDA $ (5.9 ) $ (6.2 ) $ (11.8 ) $ (11.9 ) Restructuring and cost reduction — 1.0 — 1.3 Business transformation costs 0.1 — 0.2 — Merger, acquisition and divestiture related costs 0.1 0.7 0.5 0.7 Adjusted EBITDA $ (5.7 ) $ (4.5 ) $ (11.1 ) $ (9.9 ) Expand Attachment 8 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Gross Margin Performance Materials $ 48.9 $ 48.7 $ 97.1 $ 88.8 Electronic Materials 27.2 25.2 51.0 50.2 Precision Optics 6.5 7.0 10.7 13.1 Other — — — — Total $ 82.6 $ 80.9 $ 158.8 $ 152.1 Special Items (1) Performance Materials $ — $ 2.0 $ — $ 6.2 Electronic Materials — 2.0 — 2.0 Precision Optics — 0.1 — 0.2 Other — — — — Total $ — $ 4.1 $ — $ 8.4 Adjusted Gross Margin Performance Materials $ 48.9 $ 50.7 $ 97.1 $ 95.0 Electronic Materials 27.2 27.2 51.0 52.2 Precision Optics 6.5 7.1 10.7 13.3 Other — — — — Total $ 82.6 $ 85.0 $ 158.8 $ 160.5 (1) Special items impacting gross margin represent restructuring and cost reduction and additional start up resources and scrap in 2024. Expand Attachment 9 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Operating Cash Flow to Free Cash Flow (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net cash provided by (used in) operating activities $ 49.9 $ 20.3 $ 65.4 $ 6.5 Payments for purchase of property, plant and equipment (12.7 ) (17.1 ) (25.0 ) (38.4 ) Payments for mine development (1.5 ) (5.1 ) (10.2 ) (10.4 ) Free cash flow (FCF) $ 35.7 $ (1.9 ) $ 30.2 $ (42.3 ) Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures and mine development costs. Management believes FCF is an important performance measure of the business. FCF is not a measure calculated in accordance with GAAP, and it should not be considered a substitute for operating cash flow or any other measure of financial performance presented in accordance with GAAP. Expand
Business Wire
18 minutes ago
- Business Wire
Evercore Reports Second Quarter 2025 Results; Quarterly Dividend of $0.84 Per Share
NEW YORK--(BUSINESS WIRE)--Evercore Inc. (NYSE: EVR): Second Quarter Results Year to Date Results U.S. GAAP Adjusted U.S. GAAP Adjusted Q2 2025 Q2 2024 Q2 2025 Q2 2024 YTD 2025 YTD 2024 YTD 2025 YTD 2024 Net Revenues ($ mm) $ 833.8 $ 689.2 $ 838.9 $ 695.3 $ 1,528.7 $ 1,270.0 $ 1,538.8 $ 1,282.6 Operating Income ($ mm) $ 150.4 $ 108.2 $ 157.1 $ 114.3 $ 261.6 $ 192.4 $ 273.3 $ 204.9 Net Income Attributable to Evercore Inc. ($ mm) $ 97.2 $ 73.8 $ 105.4 $ 78.7 $ 243.4 $ 159.5 $ 260.2 $ 171.6 Diluted Earnings Per Share $ 2.36 $ 1.81 $ 2.42 $ 1.81 $ 5.85 $ 3.89 $ 5.92 $ 3.94 Compensation Ratio 65.8 % 66.6 % 65.4 % 66.0 % 66.0 % 66.7 % 65.5 % 66.0 % Operating Margin 18.0 % 15.7 % 18.7 % 16.4 % 17.1 % 15.1 % 17.8 % 16.0 % Expand Business and Financial Highlights ◼ Record Second Quarter and First Half Net Revenues were $833.8 million and $1.5 billion, respectively, on a U.S. GAAP basis and $838.9 million and $1.5 billion, respectively, on an Adjusted basis. Second Quarter and First Half 2025 Net Revenues increased 21% and 20%, respectively, on both a U.S. GAAP basis and an Adjusted basis versus 2024 ◼ Second Quarter Operating Income of $150.4 million and $157.1 million on a U.S. GAAP and an Adjusted basis, respectively, increased 39% and 37%, respectively, versus 2024; Second Quarter Operating Margins of 18.0% and 18.7% on a U.S. GAAP and an Adjusted basis, respectively, increased 233 and 228 basis points, respectively, versus 2024 ◼ Evercore today announced that it has entered into an agreement to acquire Robey Warshaw, a highly successful independent advisory firm headquartered in the United Kingdom ◼ Our Advisory business had record second quarter and first half revenues, advising on 4 of the 10 largest transactions year-to-date, including the following transactions in the second quarter: ◼ Cox Communications' merger with Charter Communications, valuing Cox Communications at $34.5 billion ◼ Warner Bros. Discovery on its separation into two leading media companies ◼ The sale of Foot Locker to DICK'S Sporting Goods for $2.5 billion ◼ We have continued to experience strong momentum in July: ◼ Advising Becton Dickinson on the combination of its Biosciences and Diagnostic Solutions business with Waters in a $17.5 billion Reverse Morris Trust transaction ◼ Advising Huntington Bancshares on its acquisition of Veritex Holdings for $1.9 billion ◼ Our leading Private Capital Advisory business had record second quarter and first half results ◼ Evercore was named 'North America's Best Bank for Independent Advisory' for Euromoney's Awards for Excellence Talent ◼ Year-to-date, nine Investment Banking Senior Managing Directors (SMDs) and one Senior Advisor have started at the Firm or will be joining later in the year ◼ Four Investment Banking Senior Managing Directors joined Evercore since the last earnings call; Mike Addeo in Private Capital Advisory, Bennett Blau in the Healthcare Investment Banking Group, Jon Josephs in the Industrials Investment Banking Group and Luigi de Vecchi in our European Advisory practice in Italy ◼ Since our last earnings call, three Investment Banking Senior Managing Directors committed to join Evercore later this year; two focused on logistics and transportation and one focused on ratings advisory ◼ In the quarter, Evercore Wealth Management expanded its San Francisco office with four new hires, including two partners Capital Return ◼ Quarterly dividend of $0.84 per share ◼ Returned $532.1 million to shareholders during the first six months of 2025 through dividends and repurchases of 1.7 million shares at an average price of $258.50 Expand Evercore Inc. (NYSE: EVR) today announced its results for the second quarter ended June 30, 2025. LEADERSHIP COMMENTARY John S. Weinberg, Chairman and Chief Executive Officer, "We are pleased with our forward momentum and remain focused on our client coverage, the quality of our execution, and our longer term strategy." Roger C. Altman, Founder and Senior Chairman, "We delivered the strongest second quarter and first half revenues in our history, and are entering the second half of the year with meaningful momentum." Evercore's quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned, as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time. Business Segments: Evercore's business results are categorized into two segments: Investment Banking & Equities and Investment Management. Investment Banking & Equities includes providing advice to clients on mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, as well as advising third-party investors through affiliates. See pages A-2 to A-9 for further information and reconciliations of these segment results to our U.S. GAAP consolidated results. Non-GAAP Measures: Throughout this release certain information is presented on an adjusted basis, which is a non-GAAP measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and then those results are adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units into Class A shares. Evercore believes that the disclosed adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. Evercore uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Acquisition and Transition Costs have been excluded from Adjusted Net Income Attributable to Evercore Inc. These charges in 2025 relate to professional fees incurred related to transitioning acquisitions or divestitures. Evercore's Adjusted Diluted Shares Outstanding for the three and six months ended June 30, 2025 were higher than U.S. GAAP as a result of the inclusion of certain Evercore LP Units and Unvested Restricted Stock Units. Further details of these adjustments, as well as an explanation of similar amounts for the three and six months ended June 30, 2024 are included in pages A-2 to A-9. Reclassifications: During the second quarter of 2025, the Company changed its U.S. GAAP and Adjusted presentation such that "Communications and Information Services" was renamed to "Technology and Information Services." Technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." The Company has reclassified prior periods to conform to the current presentation in this release. There was no impact on previously reported U.S. GAAP or Adjusted Operating Income, Net Income or Earnings Per Share. The prior period reclassifications from "Professional Fees" to "Technology and Information Services" are as follows: Q1 2025: $10.2 million; Q1 2024: $9.0 million; Q2 2024: $9.9 million; Q3 2024: $10.4 million; Q4 2024: $10.2 million; Q1 2023: $8.6 million; Q2 2023: $8.2 million; Q3 2023: $9.2 million; Q4 2023: $9.1 million. Further details of these reclassifications, as well as a revised presentation for the quarterly results for Q1 2025 and quarterly and full year results for 2024, 2023 and 2022 are available on the Investor Relations section of Evercore's website at Selected Financial Data – U.S. GAAP Results The following is a discussion of Evercore's consolidated results on a U.S. GAAP basis. See pages A-5 to A-7 for our business segment results. Net Revenues U.S. GAAP Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 % Change June 30, 2025 June 30, 2024 % Change (dollars in thousands) Investment Banking & Equities: Advisory Fees $ 697,744 $ 568,231 23 % $ 1,255,093 $ 998,069 26 % Underwriting Fees 32,206 30,999 4 % 86,461 86,534 — % Commissions and Related Revenue 58,272 53,199 10 % 113,382 101,437 12 % Investment Management: Asset Management and Administration Fees 20,684 19,200 8 % 41,667 37,899 10 % Other Revenue, net 24,924 17,595 42 % 32,056 46,100 (30 %) Net Revenues $ 833,830 $ 689,224 21 % $ 1,528,659 $ 1,270,039 20 % Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 % Change June 30, 2025 June 30, 2024 % Change Total Number of Fees from Advisory and Underwriting Client Transactions(1) 245 244 — % 386 381 1 % Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions(1) 111 95 17 % 206 186 11 % Total Number of Underwriting Transactions(1) 13 17 (24 %) 27 36 (25 %) Total Number of Underwriting Transactions as a Bookrunner(1) 13 14 (7 %) 25 30 (17 %) 1. Includes Equity and Debt Underwriting Transactions. Expand As of June 30, 2025 2024 % Change Assets Under Management ($ mm)(1) $ 14,478 $ 13,160 10 % 1. Assets Under Management reflect end of period amounts from our consolidated Wealth Management business. Expand Advisory Fees – Second quarter Advisory Fees increased $129.5 million, or 23%, year-over-year, and year-to-date Advisory Fees increased $257.0 million, or 26%, year-over-year, reflecting an increase in revenue earned from large transactions during 2025. Underwriting Fees – Second quarter Underwriting Fees increased $1.2 million, or 4%, year-over-year, reflecting an increase in the average fee size of the transactions we participated in during the second quarter of 2025. Year-to-date Underwriting Fees were flat year-over-year. Commissions and Related Revenue – Second quarter Commissions and Related Revenue increased $5.1 million, or 10%, year-over-year, and year-to-date Commissions and Related Revenue increased $11.9 million, or 12%, year-over-year, primarily reflecting higher trading commissions driven by increased trading volume during 2025. Asset Management and Administration Fees – Second quarter Asset Management and Administration Fees increased $1.5 million, or 8%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 10%, primarily from market appreciation. Year-to-date Asset Management and Administration Fees increased $3.8 million, or 10%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 10%, primarily from market appreciation. Other Revenue – Second quarter Other Revenue, net, increased $7.3 million, or 42%, year-over-year, primarily reflecting higher performance of our investment funds portfolio, partially offset by lower returns on our fixed income investment portfolios, which primarily consist of U.S. treasury bills. Year-to-date Other Revenue, net, decreased $14.0 million, or 30%, year-over-year, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program. Expenses U.S. GAAP Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 % Change June 30, 2025 June 30, 2024 % Change (dollars in thousands) Employee Compensation and Benefits $ 548,611 $ 458,935 20 % $ 1,008,436 $ 846,640 19 % Compensation Ratio 65.8 % 66.6 % 66.0 % 66.7 % Non-Compensation Costs $ 134,830 $ 122,046 10 % $ 258,650 $ 231,036 12 % Non-Compensation Ratio 16.2 % 17.7 % 16.9 % 18.2 % Expand Employee Compensation and Benefits – Second quarter Employee Compensation and Benefits increased $89.7 million, or 20%, year-over-year, reflecting a compensation ratio of 65.8% for the second quarter of 2025 versus 66.6% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date Employee Compensation and Benefits increased $161.8 million, or 19%, year-over-year, reflecting a year-to-date compensation ratio of 66.0% versus 66.7% for the prior year period. The increase in Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information. Non-Compensation Costs – Second quarter Non-Compensation Costs increased $12.8 million, or 10%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services and license fees in the second quarter of 2025, an increase in occupancy and equipment rental expense, primarily related to an increase in office space, and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The second quarter Non-Compensation ratio of 16.2% decreased from 17.7% for the prior year period. The Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date Non-Compensation Costs increased $27.6 million, or 12%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services, consulting costs and license fees, an increase in occupancy and equipment rental expense, primarily related to an increase in office space, and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The year-to-date Non-Compensation ratio of 16.9% decreased from 18.2% for the prior year period. The Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Effective Tax Rate The second quarter effective tax rate was 29.3% versus 25.8% for the prior year period, principally reflecting an increase in non-deductible expenses and state and local apportionment adjustments. The year-to-date effective tax rate was 1.0% versus 11.0% for the prior year period, principally reflecting the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price, partially offset by an increase in non-deductible expenses and state and local apportionment adjustments. Selected Financial Data – Adjusted Results The following is a discussion of Evercore's consolidated results on an Adjusted basis. See pages 3 and A-2 to A-9 for further information and reconciliations of these metrics to our U.S. GAAP results. See pages A-5 to A-7 for our business segment results. Adjusted Net Revenues Adjusted Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 % Change June 30, 2025 June 30, 2024 % Change (dollars in thousands) Investment Banking & Equities: Advisory Fees(1) $ 697,755 $ 568,378 23 % $ 1,255,066 $ 998,904 26 % Underwriting Fees 32,206 30,999 4 % 86,461 86,534 — % Commissions and Related Revenue 58,272 53,199 10 % 113,382 101,437 12 % Investment Management: Asset Management and Administration Fees(2) 21,488 20,910 3 % 43,388 41,246 5 % Other Revenue, net 29,134 21,784 34 % 40,459 54,477 (26 %) Net Revenues $ 838,855 $ 695,270 21 % $ 1,538,756 $ 1,282,598 20 % Advisory Fees on an Adjusted basis reflect the reclassification of earnings (losses) related to our equity method investment in Seneca Evercore and our former equity method investment in Luminis (through September 2024) of $0.01 million and ($0.03) million for the three and six months ended June 30, 2025, respectively, and $0.1 million and $0.8 million for the three and six months ended June 30, 2024, respectively. Asset Management and Administration Fees on an Adjusted basis reflect the reclassification of earnings related to our equity method investment in Atalanta Sosnoff and our former equity method investment in ABS (through July 2024) of $0.8 million and $1.7 million for the three and six months ended June 30, 2025, respectively, and $1.7 million and $3.3 million for the three and six months ended June 30, 2024, respectively. Expand See page 5 for additional business metrics. Advisory Fees – Second quarter adjusted Advisory Fees increased $129.4 million, or 23%, year-over-year, and year-to-date adjusted Advisory Fees increased $256.2 million, or 26%, year-over-year, reflecting an increase in revenue earned from large transactions during 2025. Underwriting Fees – Second quarter Underwriting Fees increased $1.2 million, or 4%, year-over-year, reflecting an increase in average fee size of the transactions we participated in during the second quarter of 2025. Year-to-date Underwriting Fees were flat year-over-year. Commissions and Related Revenue – Second quarter Commissions and Related Revenue increased $5.1 million, or 10%, year-over-year, and year-to-date Commissions and Related Revenue increased $11.9 million, or 12%, year-over-year, primarily reflecting higher trading commissions driven by increased trading volume during 2025. Asset Management and Administration Fees – Second quarter adjusted Asset Management and Administration Fees increased $0.6 million, or 3%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 10%, primarily from market appreciation. The increase was partially offset by a 53% decrease in equity in earnings of affiliates, reflecting the sale of the remaining portion of our interest in ABS during the third quarter of 2024. Year-to-date adjusted Asset Management and Administration Fees increased $2.1 million, or 5%, year-over-year, driven by an increase in fees from Wealth Management clients, as associated AUM increased 10%, primarily from market appreciation. The increase was partially offset by a 49% decrease in equity in earnings of affiliates, reflecting the sale of the remaining portion of our interest in ABS during the third quarter of 2024. Other Revenue – Second quarter adjusted Other Revenue, net, increased $7.4 million, or 34%, year-over-year, primarily reflecting higher performance of our investment funds portfolio, partially offset by lower returns on our fixed income investment portfolios, which primarily consist of U.S. treasury bills. Year-to-date adjusted Other Revenue, net, decreased $14.0 million, or 26%, year-over-year, primarily reflecting lower performance of our investment funds portfolio, as well as lower returns on our fixed income investment portfolios, which primarily consist of U.S. treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program. Adjusted Expenses Adjusted Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 % Change June 30, 2025 June 30, 2024 % Change (dollars in thousands) Employee Compensation and Benefits $ 548,611 $ 458,935 20 % $ 1,008,436 $ 846,640 19 % Compensation Ratio 65.4 % 66.0 % 65.5 % 66.0 % Non-Compensation Costs $ 133,193 $ 122,046 9 % $ 257,013 $ 231,036 11 % Non-Compensation Ratio 15.9 % 17.6 % 16.7 % 18.0 % Expand Employee Compensation and Benefits – Second quarter adjusted Employee Compensation and Benefits increased $89.7 million, or 20%, year-over-year, reflecting an adjusted compensation ratio of 65.4% for the second quarter of 2025 versus 66.0% for the prior year period. The increase in adjusted Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The adjusted Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date adjusted Employee Compensation and Benefits increased $161.8 million, or 19%, year-over-year, reflecting a year-to-date adjusted compensation ratio of 65.5% versus 66.0% for the prior year period. The increase in adjusted Employee Compensation and Benefits compared to the prior year period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. The adjusted Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. See "Deferred Compensation" for more information. Non-Compensation Costs – Second quarter adjusted Non-Compensation Costs increased $11.1 million, or 9%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services and license fees in the second quarter of 2025, an increase in occupancy and equipment rental expense, primarily related to an increase in office space, and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The second quarter adjusted Non-Compensation ratio of 15.9% decreased from 17.6% for the prior year period. The adjusted Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Year-to-date adjusted Non-Compensation Costs increased $26.0 million, or 11%, year-over-year, primarily driven by an increase in technology and information services, principally reflecting higher expenses associated with research services, consulting costs and license fees, an increase in occupancy and equipment rental expense, primarily related to an increase in office space, and an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount. The year-to-date adjusted Non-Compensation ratio of 16.7% decreased from 18.0% for the prior year period. The adjusted Non-Compensation Ratio was also impacted by higher net revenues, as described above, during the current year period compared to the prior year period. Adjusted Effective Tax Rate The second quarter adjusted effective tax rate was 30.0% versus 26.9% for the prior year period, principally reflecting an increase in non-deductible expenses and state and local apportionment adjustments. The year-to-date adjusted effective tax rate was 0.5% versus 11.0% for the prior year period, principally reflecting the deduction associated with the appreciation in the Firm's share price upon vesting of employee share-based awards above the original grant price, partially offset by an increase in non-deductible expenses and state and local apportionment adjustments. Liquidity The Company continues to maintain a strong balance sheet. As of June 30, 2025, cash and cash equivalents were $617.3 million, investment securities and certificates of deposit were $1.1 billion and current assets exceeded current liabilities by $1.6 billion. Amounts due related to the Notes Payable were $377.2 million at June 30, 2025. Headcount As of June 30, 2025 and 2024, the Company employed approximately 2,455 and 2,330 people, respectively, worldwide. As of June 30, 2025 and 2024, the Company employed 197(1) and 184(2) total Investment Banking & Equities Senior Managing Directors, respectively, of which 159(1) and 143(2), respectively, were Investment Banking Senior Managing Directors. (1) Senior Managing Director headcount as of June 30, 2025, adjusted to include five additional Investment Banking Senior Managing Directors committed to join in 2025 and to exclude for known departures of two Investment Banking Senior Managing Directors. (2) Senior Managing Director headcount as of June 30, 2024, adjusted to include three additional Investment Banking Senior Managing Directors that joined in the third and fourth quarters of 2024. Deferred Compensation Year-to-date, the Company granted to certain employees 1.7 million unvested restricted stock units ("RSUs") (of which 1.6 million were granted in conjunction with the 2024 bonus awards) with a grant date fair value of $435.2 million. In addition, year-to-date, the Company granted $83.0 million of deferred cash awards to certain employees, related to our deferred cash compensation program, principally pursuant to 2024 bonus awards. The Company recognized compensation expense related to RSUs and our deferred cash compensation program of $141.8 million and $263.9 million for the three and six months ended June 30, 2025, respectively, and $128.4 million and $246.4 million for the three and six months ended June 30, 2024, respectively. As of June 30, 2025, the Company had 4.7 million unvested RSUs with an aggregate grant date fair value of $899.3 million. RSUs are expensed over the service period of the award, subject to retirement eligibility, and generally vest over four years. As of June 30, 2025, the Company expects to pay an aggregate of $340.9 million related to our deferred cash compensation program at various dates through 2029, subject to certain vesting events. Amounts due pursuant to this program are expensed over the service period of the award, subject to retirement eligibility, and are reflected in Accrued Compensation and Benefits, a component of current liabilities. In addition, from time to time, the Company also grants cash and equity-based performance awards to certain employees, the settlement of which is dependent on the performance criteria being achieved. Capital Return Transactions On July 29, 2025, the Board of Directors of Evercore declared a quarterly dividend of $0.84 per share to be paid on September 12, 2025 to common stockholders of record on August 29, 2025. During the second quarter, the Company repurchased 13 thousand shares from employees for the net settlement of stock-based compensation awards at an average price per share of $213.30, and 0.2 million shares at an average price per share of $237.79 pursuant to the Company's share repurchase program. The aggregate 0.2 million shares were acquired at an average price per share of $236.05. Year-to-date, the Company repurchased 0.9 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $283.64, and 0.8 million shares at an average price per share of $229.62 pursuant to the Company's share repurchase program. The aggregate 1.7 million shares were acquired at an average price per share of $258.50. Conference Call Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, July 30, 2025, accessible via telephone and webcast. Investors and analysts may participate in the live conference call by dialing (800) 274-8461 (toll-free domestic) or (203) 518-9814 (international); passcode: EVRQ225. Please register at least 10 minutes before the conference call begins. A live audio webcast of the conference call will be available on the Investor Relations section of Evercore's website at The webcast will be archived on Evercore's website for 30 days. About Evercore Evercore (NYSE: EVR) is a premier global independent investment banking advisory firm. We are dedicated to helping our clients achieve superior results through trusted independent and innovative advice on matters of strategic significance to boards of directors, management teams and shareholders, including mergers and acquisitions, strategic shareholder advisory, restructurings, and capital structure. Evercore also assists clients in raising public and private capital and delivers equity research and equity sales and agency trading execution, in addition to providing wealth and investment management services to high net worth and institutional investors. Founded in 1995, the Firm is headquartered in New York and maintains offices and affiliate offices in major financial centers in the Americas, Europe, the Middle East and Asia. For more information, please visit Basis of Alternative Financial Statement Presentation Our Adjusted results are a non-GAAP measure. As discussed further under "Non-GAAP Measures", Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and better reflects how management views its operating results. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our U.S. GAAP results to Adjusted results is presented in the tables included in the following pages. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore's operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "backlog," "believes," "expects," "potential," "probable," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. All statements, other than statements of historical fact, included in this release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in Evercore's business. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Evercore believes these factors include, but are not limited to, those described under "Risk Factors" discussed in Evercore's Annual Report on Form 10-K for the year ended December 31, 2024, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and Registration Statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Evercore to predict all risks and uncertainties, nor can Evercore assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and Evercore does not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Evercore undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. EVERCORE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (dollars in thousands, except per share data) (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues Investment Banking & Equities: Advisory Fees $ 697,744 $ 568,231 $ 1,255,093 $ 998,069 Underwriting Fees 32,206 30,999 86,461 86,534 Commissions and Related Revenue 58,272 53,199 113,382 101,437 Asset Management and Administration Fees 20,684 19,200 41,667 37,899 Other Revenue, Including Interest and Investments 29,134 21,784 40,459 54,477 Total Revenues 838,040 693,413 1,537,062 1,278,416 Interest Expense(1) 4,210 4,189 8,403 8,377 Net Revenues 833,830 689,224 1,528,659 1,270,039 Expenses Employee Compensation and Benefits 548,611 458,935 1,008,436 846,640 Occupancy and Equipment Rental 26,914 21,801 52,645 43,745 Professional Fees(2) 23,133 24,437 45,523 46,647 Travel and Related Expenses 23,984 21,384 46,002 40,606 Technology and Information Services(2) 36,587 29,437 69,954 57,613 Depreciation and Amortization 6,450 6,439 12,426 12,732 Execution, Clearing and Custody Fees 3,180 3,051 6,526 6,392 Acquisition and Transition Costs 1,637 — 1,637 — Other Operating Expenses 12,945 15,497 23,937 23,301 Total Expenses 683,441 580,981 1,267,086 1,077,676 Income Before Income from Equity Method Investments and Income Taxes 150,389 108,243 261,573 192,363 Income from Equity Method Investments 815 1,857 1,694 4,182 Income Before Income Taxes 151,204 110,100 263,267 196,545 Provision for Income Taxes 44,265 28,367 2,538 21,688 Net Income 106,939 81,733 260,729 174,857 Net Income Attributable to Noncontrolling Interest 9,738 7,975 17,344 15,406 Net Income Attributable to Evercore Inc. $ 97,201 $ 73,758 $ 243,385 $ 159,451 Net Income Attributable to Evercore Inc. Common Shareholders $ 97,201 $ 73,758 $ 243,385 $ 159,451 Weighted Average Shares of Class A Common Stock Outstanding: Basic 38,715 38,502 38,717 38,470 Diluted 41,213 40,857 41,636 40,969 Net Income Per Share Attributable to Evercore Inc. Common Shareholders: Basic $ 2.51 $ 1.92 $ 6.29 $ 4.14 Diluted $ 2.36 $ 1.81 $ 5.85 $ 3.89 Expand (1) Includes interest expense on long-term debt. (2) Certain balances in the prior period were reclassified to conform to their current presentation in this release. "Communications and Information Services" has been renamed to "Technology and Information Services" and technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." For the three and six months ended June 30, 2024, this resulted in a reclassification of $9.9 million and $18.9 million, respectively, from "Professional Fees" to "Technology and Information Services." There was no impact on previously reported U.S. GAAP Operating Income, Net Income or Earnings Per Share. See pages A-2 to A-3 for further information. Expand Adjusted Results Throughout the discussion of Evercore's business and elsewhere in this release, information is presented on an Adjusted basis, which is a non-generally accepted accounting principles ("non-GAAP") measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), adjusted to exclude certain items and reflect the conversion of certain Evercore LP Units and Unvested Restricted Stock Units into Class A shares. Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. The Company uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These Adjusted amounts are allocated to the Company's two business segments: Investment Banking & Equities and Investment Management. The differences between the Adjusted and U.S. GAAP results are as follows: Assumed Exchange of Evercore LP Units into Class A Shares. The Adjusted results assume substantially all Evercore LP Units have been exchanged for Class A shares. Accordingly, the noncontrolling interest related to these units is converted to a controlling interest. The Company's management believes that it is useful to provide the per-share effect associated with the assumed conversion of substantially all of these previously granted equity interests and IPO related restricted stock units, and thus the Adjusted results reflect their exchange into Class A shares. Adjustments Associated with Business Combinations and Divestitures. The following charges resulting from business combinations and divestitures have been excluded from the Adjusted results as the Company's Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges: Acquisition and Transition Costs. Primarily professional fees incurred related to transitioning acquisitions or divestitures. Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company's income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP's noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly. Presentation of Interest Expense. The Adjusted results present Adjusted Investment Banking & Equities Operating Income before interest expense on debt, which is included in interest expense on a U.S. GAAP basis. Presentation of Income from Equity Method Investments. The Adjusted results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a useful presentation. Reclassifications: During the second quarter of 2025, the Company changed its U.S. GAAP and Adjusted presentation such that "Communications and Information Services" was renamed to "Technology and Information Services." Technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." The Company has reclassified prior periods to conform to the current presentation in this release. There was no impact on previously reported U.S. GAAP or Adjusted Operating Income, Net Income or Earnings Per Share. The prior period reclassifications from "Professional Fees" to "Technology and Information Services" are as follows: Q1 2025: $10.2 million; Q1 2024: $9.0 million; Q2 2024: $9.9 million; Q3 2024: $10.4 million; Q4 2024: $10.2 million; Q1 2023: $8.6 million; Q2 2023: $8.2 million; Q3 2023: $9.2 million; Q4 2023: $9.1 million. Further details of these reclassifications, as well as a revised presentation for the quarterly results for Q1 2025 and quarterly and full year results for 2024, 2023 and 2022 are available on the Investor Relations section of Evercore's website at EVERCORE INC. U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS (dollars in thousands, except per share data) (UNAUDITED) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net Revenues - U.S. GAAP $ 833,830 $ 689,224 $ 1,528,659 $ 1,270,039 Income from Equity Method Investments (1) 815 1,857 1,694 4,182 Interest Expense on Debt (2) 4,210 4,189 8,403 8,377 Net Revenues - Adjusted $ 838,855 $ 695,270 $ 1,538,756 $ 1,282,598 Other Revenue, net - U.S. GAAP $ 24,924 $ 17,595 $ 32,056 $ 46,100 Interest Expense on Debt (2) 4,210 4,189 8,403 8,377 Other Revenue, net - Adjusted $ 29,134 $ 21,784 $ 40,459 $ 54,477 Operating Income - U.S. GAAP $ 150,389 $ 108,243 $ 261,573 $ 192,363 Income from Equity Method Investments (1) 815 1,857 1,694 4,182 Pre-Tax Income - U.S. GAAP 151,204 110,100 263,267 196,545 Acquisition and Transition Costs (3) 1,637 — 1,637 — Pre-Tax Income - Adjusted 152,841 110,100 264,904 196,545 Interest Expense on Debt (2) 4,210 4,189 8,403 8,377 Operating Income - Adjusted $ 157,051 $ 114,289 $ 273,307 $ 204,922 Provision for Income Taxes - U.S. GAAP $ 44,265 $ 28,367 $ 2,538 $ 21,688 Income Taxes (4) 1,615 1,261 (1,197 ) (69 ) Provision for Income Taxes - Adjusted $ 45,880 $ 29,628 $ 1,341 $ 21,619 Net Income Attributable to Evercore Inc. - U.S. GAAP $ 97,201 $ 73,758 $ 243,385 $ 159,451 Acquisition and Transition Costs (3) 1,637 — 1,637 — Income Taxes (4) (1,615 ) (1,261 ) 1,197 69 Noncontrolling Interest (5) 8,147 6,236 13,954 12,080 Net Income Attributable to Evercore Inc. - Adjusted $ 105,370 $ 78,733 $ 260,173 $ 171,600 Diluted Shares Outstanding - U.S. GAAP 41,213 40,857 41,636 40,969 LP Units (6) 2,321 2,558 2,323 2,583 Unvested Restricted Stock Units - Event Based (6) 12 12 12 12 Diluted Shares Outstanding - Adjusted 43,546 43,427 43,971 43,564 Key Metrics: (a) Diluted Earnings Per Share - U.S. GAAP $ 2.36 $ 1.81 $ 5.85 $ 3.89 Diluted Earnings Per Share - Adjusted $ 2.42 $ 1.81 $ 5.92 $ 3.94 Operating Margin - U.S. GAAP 18.0 % 15.7 % 17.1 % 15.1 % Operating Margin - Adjusted 18.7 % 16.4 % 17.8 % 16.0 % Effective Tax Rate - U.S. GAAP 29.3 % 25.8 % 1.0 % 11.0 % Effective Tax Rate - Adjusted 30.0 % 26.9 % 0.5 % 11.0 % (a) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above. Expand EVERCORE INC. U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 (dollars in thousands) (UNAUDITED) Investment Banking & Equities Segment Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis Net Revenues: Investment Banking & Equities: Advisory Fees $ 697,744 $ 11 (1) $ 697,755 $ 1,255,093 $ (27 ) (1) $ 1,255,066 Underwriting Fees 32,206 — 32,206 86,461 — 86,461 Commissions and Related Revenue 58,272 — 58,272 113,382 — 113,382 Other Revenue, net 23,949 4,210 (2) 28,159 31,767 8,403 (2) 40,170 Net Revenues 812,171 4,221 816,392 1,486,703 8,376 1,495,079 Expenses: Employee Compensation and Benefits 535,447 — 535,447 983,476 — 983,476 Non-Compensation Costs 130,773 (1,637 ) (3) 129,136 250,547 (1,637 ) (3) 248,910 Total Expenses 666,220 (1,637 ) 664,583 1,234,023 (1,637 ) 1,232,386 Operating Income (a) $ 145,951 $ 5,858 $ 151,809 $ 252,680 $ 10,013 $ 262,693 Compensation Ratio (b) 65.9 % 65.6 % 66.2 % 65.8 % Operating Margin (b) 18.0 % 18.6 % 17.0 % 17.6 % Investment Management Segment Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis Net Revenues: Asset Management and Administration Fees $ 20,684 $ 804 (1) $ 21,488 $ 41,667 $ 1,721 (1) $ 43,388 Other Revenue, net 975 — 975 289 — 289 Net Revenues 21,659 804 22,463 41,956 1,721 43,677 Expenses: Employee Compensation and Benefits 13,164 — 13,164 24,960 — 24,960 Non-Compensation Costs 4,057 — 4,057 8,103 — 8,103 Total Expenses 17,221 — 17,221 33,063 — 33,063 Operating Income (a) $ 4,438 $ 804 $ 5,242 $ 8,893 $ 1,721 $ 10,614 Compensation Ratio (b) 60.8 % 58.6 % 59.5 % 57.1 % Operating Margin (b) 20.5 % 23.3 % 21.2 % 24.3 % (a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments. (b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above. Expand EVERCORE INC. U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 (dollars in thousands) (UNAUDITED) Investment Banking & Equities Segment Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis Net Revenues: Investment Banking & Equities: Advisory Fees $ 568,231 $ 147 (1) $ 568,378 $ 998,069 $ 835 (1) $ 998,904 Underwriting Fees 30,999 — 30,999 86,534 — 86,534 Commissions and Related Revenue 53,199 — 53,199 101,437 — 101,437 Other Revenue, net 17,581 4,189 (2) 21,770 45,698 8,377 (2) 54,075 Net Revenues 670,010 4,336 674,346 1,231,738 9,212 1,240,950 Expenses: Employee Compensation and Benefits 448,064 — 448,064 825,351 — 825,351 Non-Compensation Costs 118,304 — 118,304 223,855 — 223,855 Total Expenses 566,368 — 566,368 1,049,206 — 1,049,206 Operating Income (a) $ 103,642 $ 4,336 $ 107,978 $ 182,532 $ 9,212 $ 191,744 Compensation Ratio (b) 66.9 % 66.4 % 67.0 % 66.5 % Operating Margin (b) 15.5 % 16.0 % 14.8 % 15.5 % Investment Management Segment Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis U.S. GAAP Basis Adjustments Non-GAAP Adjusted Basis Net Revenues: Asset Management and Administration Fees $ 19,200 $ 1,710 (1) $ 20,910 $ 37,899 $ 3,347 (1) $ 41,246 Other Revenue, net 14 — 14 402 — 402 Net Revenues 19,214 1,710 20,924 38,301 3,347 41,648 Expenses: Employee Compensation and Benefits 10,871 — 10,871 21,289 — 21,289 Non-Compensation Costs 3,742 — 3,742 7,181 — 7,181 Total Expenses 14,613 — 14,613 28,470 — 28,470 Operating Income (a) $ 4,601 $ 1,710 $ 6,311 $ 9,831 $ 3,347 $ 13,178 Compensation Ratio (b) 56.6 % 52.0 % 55.6 % 51.1 % Operating Margin (b) 23.9 % 30.2 % 25.7 % 31.6 % (a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments. (b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above. Expand EVERCORE INC. U.S. GAAP SEGMENT AND CONSOLIDATED RESULTS (dollars in thousands) (UNAUDITED) U.S. GAAP Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Investment Banking & Equities Net Revenues: Investment Banking & Equities: Advisory Fees $ 697,744 $ 568,231 $ 1,255,093 $ 998,069 Underwriting Fees 32,206 30,999 86,461 86,534 Commissions and Related Revenue 58,272 53,199 113,382 101,437 Other Revenue, net 23,949 17,581 31,767 45,698 Net Revenues 812,171 670,010 1,486,703 1,231,738 Expenses: Employee Compensation and Benefits 535,447 448,064 983,476 825,351 Non-Compensation Costs 130,773 118,304 250,547 223,855 Total Expenses 666,220 566,368 1,234,023 1,049,206 Operating Income (a) $ 145,951 $ 103,642 $ 252,680 $ 182,532 Investment Management Net Revenues: Asset Management and Administration Fees $ 20,684 $ 19,200 $ 41,667 $ 37,899 Other Revenue, net 975 14 289 402 Net Revenues 21,659 19,214 41,956 38,301 Expenses: Employee Compensation and Benefits 13,164 10,871 24,960 21,289 Non-Compensation Costs 4,057 3,742 8,103 7,181 Total Expenses 17,221 14,613 33,063 28,470 Operating Income (a) $ 4,438 $ 4,601 $ 8,893 $ 9,831 Total Net Revenues: Investment Banking & Equities: Advisory Fees $ 697,744 $ 568,231 $ 1,255,093 $ 998,069 Underwriting Fees 32,206 30,999 86,461 86,534 Commissions and Related Revenue 58,272 53,199 113,382 101,437 Asset Management and Administration Fees 20,684 19,200 41,667 37,899 Other Revenue, net 24,924 17,595 32,056 46,100 Net Revenues 833,830 689,224 1,528,659 1,270,039 Expenses: Employee Compensation and Benefits 548,611 458,935 1,008,436 846,640 Non-Compensation Costs 134,830 122,046 258,650 231,036 Total Expenses 683,441 580,981 1,267,086 1,077,676 Operating Income (a) $ 150,389 $ 108,243 $ 261,573 $ 192,363 (a) Operating Income excludes Income (Loss) from Equity Method Investments. Expand EVERCORE INC. U.S. GAAP RECONCILIATION TO ADJUSTED NON-COMPENSATION COSTS (dollars in thousands) (UNAUDITED) Three Months Ended June 30, 2025 U.S. GAAP Adjustments Adjusted (dollars in thousands) Occupancy and Equipment Rental $ 26,914 $ — $ 26,914 Professional Fees 23,133 — 23,133 Travel and Related Expenses 23,984 — 23,984 Technology and Information Services 36,587 — 36,587 Depreciation and Amortization 6,450 — 6,450 Execution, Clearing and Custody Fees 3,180 — 3,180 Acquisition and Transition Costs 1,637 (1,637 ) (3) — Other Operating Expenses 12,945 — 12,945 Total Non-Compensation Costs $ 134,830 $ (1,637 ) $ 133,193 Three Months Ended June 30, 2024 U.S. GAAP Adjustments Adjusted (dollars in thousands) Occupancy and Equipment Rental $ 21,801 $ — $ 21,801 Professional Fees(1) 24,437 — 24,437 Travel and Related Expenses 21,384 — 21,384 Technology and Information Services(1) 29,437 — 29,437 Depreciation and Amortization 6,439 — 6,439 Execution, Clearing and Custody Fees 3,051 — 3,051 Other Operating Expenses 15,497 — 15,497 Total Non-Compensation Costs $ 122,046 $ — $ 122,046 Six Months Ended June 30, 2025 U.S. GAAP Adjustments Adjusted (dollars in thousands) Occupancy and Equipment Rental $ 52,645 $ — $ 52,645 Professional Fees 45,523 — 45,523 Travel and Related Expenses 46,002 — 46,002 Technology and Information Services 69,954 — 69,954 Depreciation and Amortization 12,426 — 12,426 Execution, Clearing and Custody Fees 6,526 — 6,526 Acquisition and Transition Costs 1,637 (1,637 ) (3) — Other Operating Expenses 23,937 — 23,937 Total Non-Compensation Costs $ 258,650 $ (1,637 ) $ 257,013 Six Months Ended June 30, 2024 U.S. GAAP Adjustments Adjusted (dollars in thousands) Occupancy and Equipment Rental $ 43,745 $ — $ 43,745 Professional Fees(1) 46,647 — 46,647 Travel and Related Expenses 40,606 — 40,606 Technology and Information Services(1) 57,613 — 57,613 Depreciation and Amortization 12,732 — 12,732 Execution, Clearing and Custody Fees 6,392 — 6,392 Other Operating Expenses 23,301 — 23,301 Total Non-Compensation Costs $ 231,036 $ — $ 231,036 Expand (1) Certain balances in the prior period were reclassified to conform to their current presentation in this release. "Communications and Information Services" has been renamed to "Technology and Information Services" and technology and related expenses have been reclassified from "Professional Fees" to "Technology and Information Services." For the three and six months ended June 30, 2024, this resulted in a reclassification of $9.9 million and $18.9 million, respectively, from "Professional Fees" to "Technology and Information Services." There was no impact on previously reported U.S. GAAP or Adjusted Operating Income, Net Income or Earnings Per Share. See pages A-2 to A-3 for further information. Expand Notes to Unaudited Condensed Consolidated Adjusted Financial Data For further information on these adjustments, see pages A-2 to A-3. (1) Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation. (2) Interest Expense on Debt is excluded from Net Revenues and presented below Operating Income in the Adjusted results and is included in Interest Expense on a U.S. GAAP basis. (3) Professional fees incurred related to transitioning acquisitions or divestitures are excluded from the Adjusted presentation. (4) Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company's income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP's noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly. (5) Reflects an adjustment to eliminate noncontrolling interest related to substantially all Evercore LP partnership units which are assumed to be converted to Class A common stock in the Adjusted presentation. (6) Assumes the exchange into Class A shares of substantially all Evercore LP Units and IPO related restricted stock unit awards in the Adjusted presentation. In the computation of outstanding common stock equivalents for U.S. GAAP net income per share, the Evercore LP Units are anti-dilutive. Expand
