Everspin Technologies Inc (MRAM) Q1 2025 Earnings Call Highlights: Surpassing Revenue ...
Non-GAAP EPS: $0.02 per diluted share.
MRAM Product Sales: $11.0 million.
Licensing, Royalty, Patent, and Other Revenue: $2.1 million, down from $3.6 million in Q1 2024.
GAAP Gross Margin: 51.4%, down from 56.5% in Q1 2024.
GAAP Operating Expenses: $8.7 million.
Non-GAAP Net Income: $0.4 million.
Cash and Cash Equivalents: $42.2 million.
Cash Flow from Operations: $1.4 million.
Q2 2025 Revenue Guidance: $12.5 million to $13.5 million.
Q2 2025 GAAP Net Loss Guidance: Between $0.05 loss and breakeven per basic share.
Q2 2025 Non-GAAP Net Income Guidance: Between breakeven and $0.05 per basic share.
Warning! GuruFocus has detected 4 Warning Signs with MRAM.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Everspin Technologies Inc (NASDAQ:MRAM) reported first-quarter revenue of $13.1 million, exceeding their guidance range.
The company achieved a non-GAAP EPS of $0.02, surpassing expectations.
Everspin continues to see strong product revenue, particularly from the PERSYST 1-gigabit STT-MRAM used in data center applications.
The company is involved in significant projects with major automotive and aerospace clients, including Lucid Motors and Blue Origin.
Everspin's balance sheet remains strong and debt-free, with cash and cash equivalents of $42.2 million.
Licensing, royalty, patent, and other revenue decreased to $2.1 million from $3.6 million in Q1 2024.
Gross margin decreased to 51.4% from 56.5% in Q1 2024 due to a lower mix of high-margin licensing revenue.
The company anticipates a non-GAAP net loss per basic share between $0.05 and breakeven for Q2 2025.
Everspin's revenue is expected to be more heavily weighted towards the second half of 2025, indicating potential short-term challenges.
There is uncertainty regarding potential tariff impacts, particularly concerning products manufactured in the US and shipped to China.
Q: Can you explain the potential impact of tariffs on your second-quarter guidance, especially concerning China? A: William Cooper, Chief Financial Officer, explained that while some wafers are sourced from GlobalFoundries in Germany and others from the US and Taiwan, direct sales to China are minimal. Therefore, the impact of tariffs is expected to be low. Most products are assembled in Taiwan, and the importer would be responsible for tariffs.
Q: Are you seeing signs of a cyclical recovery in the industrial segment of your business? A: William Cooper, Chief Financial Officer, confirmed that there are signs of improvement in backlog and traction on STT-MRAM products, indicating a potential cyclical recovery in the industrial segment.
Q: Can you provide insights into the gross margin dynamics and expectations for the rest of the year? A: William Cooper, Chief Financial Officer, noted that the gross margin was consistent between Q4 and Q1 at around 51%. He expects this consistency to continue throughout the year, maintaining a 50-plus gross margin.
Q: What factors are contributing to the expected second-half weighting of revenue in 2025? A: Sanjeev Aggarwal, President and CEO, mentioned that the backlog is building up, and there is a conversion of design wins into early production for STT products. This, along with the bottoming out of inventory correction, supports the expectation of higher revenue in the second half of 2025.
Q: How should we view operating expenses for the rest of the year? A: William Cooper, Chief Financial Officer, indicated that operating expenses are expected to remain in the same range throughout the year, with some product development work contributing to the expenses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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Business Wire
11 hours ago
- Business Wire
Packaging Corporation of America Reports Second Quarter 2025 Results
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) today reported second quarter 2025 net income of $242 million, or $2.67 per share, and net income of $224 million, or $2.48 per share, excluding special items. Second quarter net sales were $2.2 billion in 2025 and $2.1 billion in 2024. (1) For descriptions and amounts of our special items, see the schedules with this release. (2) Diluted EPS excluding Special Items is a non-GAAP financial measure. For information regarding our use of non-GAAP financial measures and descriptions and amounts of our special items, see the schedules with this release. (3) Amounts may not foot due to rounding. Expand Reported earnings in the second quarter of 2025 include special items primarily for gains from the sale of real estate in connection with the disposal of corrugated products facilities that were previously closed, partially offset by costs related to the pending Greif containerboard business acquisition. Excluding special items, the $.28 per share increase in second quarter 2025 earnings compared to the second quarter of 2024 was driven primarily by higher prices and mix in the Packaging segment $.98, lower fiber costs $.13, higher prices and mix in the Paper segment $.04 and lower tax rate $.02. These items were partially offset by higher operating costs ($.30), higher maintenance outage expense ($.21), lower production and export sales volume in the Packaging Segment ($.13), higher depreciation expense ($.10), higher fixed and other expense ($.09), lower volume in the Paper segment ($.02), higher freight expense ($.02) and higher interest expense ($.02). Results were $.07 above second quarter guidance of $2.41 per share primarily due to lower operating costs and fiber costs. Financial information by segment is summarized below and in the schedules with this release. (1) Segment operating income (loss) excluding special items and EBITDA excluding special items are non-GAAP financial measures. We provide information regarding our use of non-GAAP financial measures and reconciliations of historical non-GAAP financial measures presented in this press release to the most comparable measure reported in accordance with GAAP in the schedules to this press release. Expand In the Packaging segment, total corrugated products shipments were up 1.7% per day and flat overall compared to the second quarter of 2024, with one additional workday in 2024. Containerboard production was 1,195,000 tons, and containerboard inventory was up 38,000 tons from the end of the second quarter of 2024 and down 17,000 tons compared to the end of the first quarter of 2025. In the Paper segment, sales volume was down 5% from the second quarter of 2024 and 7% compared to the first quarter of 2025. Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, 'We operated very well during the quarter, delivering strong earnings and cash flows as well as higher margins in the Packaging segment. Pricing in the Packaging segment was consistent with expectations as we fully realized our earlier announced price increases. Despite cautious ordering patterns from customers, corrugated products volume was solid and steady throughout the quarter, with per day shipments exceeding the second quarter of 2024 and the first quarter of 2025. As expected, export containerboard sales were lower. We ran our containerboard mills to meet demand and drew down inventory to end at targeted levels. The Paper segment delivered another profitable quarter with strong margin performance, as we realized our earlier price increases. We continued to successfully manage costs across all of our operations, executing our capital projects and efficiency initiatives, which have helped offset inflation.' 'Looking ahead as we move from the second and into the third quarter,' Mr. Kowlzan added, 'while our corrugated products customers have remained cautious into July as economic uncertainty persists, we expect higher corrugated shipments, which will drive increased containerboard production. Export containerboard sales will be lower due to the effects of the global trade environment. We will build some containerboard inventory ahead of our fourth quarter maintenance outage at the DeRidder mill. We expect prices and mix in the Packaging segment to be relatively flat. We also expect flat pricing in the Paper segment and expect production and sales to increase with the International Falls mill outage completed in the second quarter and seasonal back-to-school orders. We have no scheduled maintenance outages during the third quarter and expect maintenance outage expense to be lower. Freight costs will be higher with the full effect of rail rate increases at our mills. Operating costs will be near second quarter levels and fiber costs will be slightly lower. Considering these items, we expect third quarter earnings of $2.80 per share, excluding special items. Our guidance does not include any possible impact from the pending acquisition of the Greif containerboard business, which is subject to satisfaction of certain conditions, including regulatory approval.' We present our earnings expectation for the upcoming quarter excluding special items as special items are difficult to predict and quantify and may reflect the effect of future events. We expect to incur acquisition and integration related costs for our pending acquisition of the Greif containerboard business during the third quarter; however, additional special items may arise due to third quarter events. PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates eight mills and 85 corrugated products plants and related facilities. Some of the statements in this press release are forward-looking statements. Forward-looking statements include statements about our future earnings and financial condition, expected benefits from acquisitions and restructuring activities, our industry and our business strategy. Statements that contain words such as 'will', 'should', 'anticipate', 'believe', 'expect', 'intend', 'estimate', 'hope' or similar expressions, are forward-looking statements. These forward-looking statements are based on the current expectations of PCA. Because forward-looking statements involve inherent risks and uncertainties, the plans, actions and actual results of PCA could differ materially. The factors that could cause plans, actions and results to differ materially from PCA's current expectations include the following: the impact of general economic conditions; conditions in the paper and packaging industries, including competition, product demand and product pricing; fluctuations in wood fiber and recycled fiber costs; fluctuations in purchased energy costs; the possibility of unplanned outages or interruptions at our principal facilities; and legislative or regulatory requirements, particularly concerning environmental matters, as well as those identified under Item 1A. Risk Factors in PCA's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission and available at the SEC's website at ' '. Packaging Corporation of America Consolidated Earnings Results Unaudited (dollars in millions, except per-share data) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net sales $ 2,171.3 $ 2,075.3 $ 4,312.3 $ 4,054.8 Cost of sales (1,688.3 ) (1) (1,637.6 ) (3,374.5 ) (1) (3,246.7 ) (2) Gross profit 483.0 437.7 937.8 808.1 Selling, general, and administrative expenses (153.2 ) (149.5 ) (314.6 ) (301.3 ) Other income (expense), net 3.9 (1) (12.2 ) (2) (9.2 ) (1) (34.8 ) (2) Income from operations 333.7 276.0 614.0 472.0 Non-operating pension income - 1.1 - 2.2 Interest expense, net (13.1 ) (10.4 ) (26.0 ) (19.9 ) Income before taxes 320.6 266.7 588.0 454.3 Provision for income taxes (79.1 ) (67.8 ) (142.7 ) (108.4 ) Net income $ 241.5 $ 198.9 $ 445.3 $ 345.9 Earnings per share: Basic $ 2.68 $ 2.22 $ 4.95 $ 3.86 Diluted $ 2.67 $ 2.21 $ 4.93 $ 3.84 Computation of diluted earnings per share under the two class method: Net income $ 241.5 $ 198.9 $ 445.3 $ 345.9 Less: Distributed and undistributed income available to participating securities (1.6 ) (1.4 ) (3.0 ) (2.5 ) Net income attributable to PCA shareholders $ 239.9 $ 197.5 $ 442.3 $ 343.4 Diluted weighted average shares outstanding 89.7 89.5 89.7 89.5 Diluted earnings per share $ 2.67 $ 2.21 $ 4.93 $ 3.84 Supplemental financial information: Capital spending $ 169.7 $ 245.0 $ 317.8 $ 321.7 Cash, cash equivalents, and marketable debt securities $ 955.9 $ 1,172.8 $ 955.9 $ 1,172.8 Expand (1) The three and six months ended June 30, 2025 include the following: a. $24.6 million and $18.8 million, respectively, of income related to gains on sales of corrugated products facilities, partially offset by closure costs related to corrugated products facilities. These items were recorded in 'Cost of sales' and 'Other expense, net', as appropriate. b. $1.6 million of charges related to the announced Greif, Inc. acquisition, which were recorded in 'Other expense, net.' (2) The three and six months ended June 30, 2024 include the following: a. $0.6 million of income and $9.7 million of charges, respectively, related to the announced discontinuation of production of uncoated freesheet paper grades on the No. 3 machine at the Jackson, Alabama mill associated with the permanent conversion of the machine to produce linerboard and other paper-to-containerboard conversion related activities. The costs were recorded in 'Cost of sales' and 'Other expense, net', as appropriate. b. $0.1 million of charges consisting of closure costs related to corrugated products facilities. For the six months ended June 30, 2024, these charges were completely offset by $0.1 million of income primarily related to a favorable lease buyout for a closed corrugated products facility during the first quarter of 2024. These items were recorded in "Cost of sales" and "Other expense, net", as appropriate. Expand Packaging Corporation of America Segment Information Unaudited (dollars in millions) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Segment sales Packaging $ 2,005.9 $ 1,908.3 $ 3,976.3 $ 3,706.5 Paper 145.8 150.1 300.0 313.9 Corporate and Other 19.6 16.9 36.0 34.4 $ 2,171.3 $ 2,075.3 $ 4,312.3 $ 4,054.8 Segment operating income (loss) Packaging $ 346.3 $ 279.8 $ 624.4 $ 483.6 Paper 25.8 26.7 61.4 56.4 Corporate and Other (38.4 ) (30.5 ) (71.8 ) (68.0 ) Income from operations 333.7 276.0 614.0 472.0 Non-operating pension income - 1.1 - 2.2 Interest expense, net (13.1 ) (10.4 ) (26.0 ) (19.9 ) Income before taxes $ 320.6 $ 266.7 $ 588.0 $ 454.3 Segment operating income (loss) excluding special items (1) Packaging $ 321.7 $ 279.9 $ 605.6 $ 487.5 Paper 25.8 26.1 61.4 62.2 Corporate and Other (36.8 ) (30.5 ) (70.2 ) (68.0 ) $ 310.7 $ 275.5 $ 596.8 $ 481.7 EBITDA excluding special items (1) Packaging $ 452.9 $ 400.0 $ 862.1 $ 726.2 Paper 30.3 30.6 70.5 71.2 Corporate and Other (32.4 ) (26.6 ) (60.8 ) (60.2 ) $ 450.8 $ 404.0 $ 871.8 $ 737.2 Expand (1) Income (loss) from operations excluding special items, segment operating income (loss) excluding special items, earnings before non-operating pension income, interest, income taxes, and depreciation, amortization, and depletion (EBITDA), segment EBITDA, EBITDA excluding special items, and segment EBITDA excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our segments and our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and the performance of their segments. The tables included in "Reconciliation of Non-GAAP Financial Measures" on the following pages reconcile the non-GAAP measures with the most directly comparable GAAP measures. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. Expand (1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures. Expand Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions) Net Income Excluding Special Items and EPS Excluding Special Items (1) Three Months Ended June 30, 2025 2024 Income before taxes Income Taxes Net Income Diluted EPS Income before taxes Income Taxes Net Income Diluted EPS As reported in accordance with GAAP $ 320.6 $ (79.1 ) $ 241.5 $ 2.67 $ 266.7 $ (67.8 ) $ 198.9 $ 2.21 Special items (2): Facilities closure and other (income) costs (24.6 ) 6.1 (18.5 ) (0.20 ) 0.1 - 0.1 - Acquisition and integration-related costs 1.6 (0.4 ) 1.2 0.01 - - - - Jackson mill conversion-related activities - - - - (0.6 ) 0.2 (0.4 ) - Total special items (23.0 ) 5.7 (17.3 ) (0.19 ) (0.5 ) 0.2 (0.3 ) - Excluding special items $ 297.6 $ (73.4 ) $ 224.2 $ 2.48 $ 266.2 $ (67.6 ) $ 198.6 $ 2.20 (3) Six Months Ended June 30, 2025 2024 Income before taxes Income Taxes Net Income Diluted EPS Income before taxes Income Taxes Net Income Diluted EPS As reported in accordance with GAAP $ 588.0 $ (142.7 ) $ 445.3 $ 4.93 $ 454.3 $ (108.4 ) $ 345.9 $ 3.84 Special items (2): Facilities closure and other income (18.8 ) 4.7 (14.1 ) (0.15 ) - - - - Acquisition and integration-related costs 1.6 (0.4 ) 1.2 0.01 - - - - Jackson mill conversion-related activities - - - - 9.7 (2.4 ) 7.3 0.08 Total special items (17.2 ) 4.3 (12.9 ) (0.14 ) 9.7 (2.4 ) 7.3 0.08 Excluding special items $ 570.8 $ (138.4 ) $ 432.4 $ 4.79 $ 464.0 $ (110.8 ) $ 353.2 $ 3.92 Expand (1) Net income excluding special items and earnings per share excluding special items are non-GAAP financial measures. Management excludes special items as it believes these items are not necessarily reflective of the ongoing results of operations of our business. We present these measures because they provide a means to evaluate the performance of our company on an ongoing basis using the same measures that are used by our management, because these measures assist in providing a meaningful comparison between periods presented and because these measures are frequently used by investors and other interested parties in the evaluation of companies and their performance. Any analysis of non-GAAP financial measures should be done only in conjunction with results presented in accordance with GAAP. The non-GAAP measures are not intended to be substitutes for GAAP financial measures and should not be used as such. (2) Pre-tax special items are tax-effected at a combined federal and state income tax rate in effect for the period the special items were recorded and this rate is adjusted for each subsequent quarter to be consistent with the estimated annual effective tax rate, in accordance with ASC 270, Interim Reporting, and ASC 740-270, Income Taxes – Intra Period Tax Allocation. For all periods presented, income taxes on pre-tax special items represent the current amount of tax. For more information related to these items, see the footnotes to the Consolidated Earnings Results on page 1. (3) Amount may not foot due to rounding. Expand Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions) EBITDA and EBITDA Excluding Special Items (1) EBITDA represents income before non-operating pension income, interest, income taxes, and depreciation, amortization, and depletion. The following table reconciles net income to EBITDA and EBITDA excluding special items: Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net income $ 241.5 $ 198.9 $ 445.3 $ 345.9 Non-operating pension income - (1.1 ) - (2.2 ) Interest expense, net 13.1 10.4 26.0 19.9 Provision for income taxes 79.1 67.8 142.7 108.4 Depreciation, amortization, and depletion 140.7 128.5 278.6 256.9 EBITDA (1) $ 474.4 $ 404.5 $ 892.6 $ 728.9 Special items: Facilities closure and other (income) costs (25.2 ) 0.1 (22.4 ) - Acquisition and integration-related costs 1.6 - 1.6 - Jackson mill conversion-related activities - (0.6 ) - 8.3 EBITDA excluding special items (1) $ 450.8 $ 404.0 $ 871.8 $ 737.2 Expand (1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures. Expand Packaging Corporation of America Reconciliation of Non-GAAP Financial Measures Unaudited (dollars in millions) The following table reconciles segment operating income (loss) to segment EBITDA and segment EBITDA excluding special items: Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Packaging Segment operating income $ 346.3 $ 279.8 $ 624.4 $ 483.6 Depreciation, amortization, and depletion 131.8 120.1 260.1 238.6 EBITDA (1) 478.1 399.9 884.5 722.2 Facilities closure and other (income) costs (25.2 ) 0.1 (22.4 ) - Jackson mill conversion-related activities - - - 4.0 EBITDA excluding special items (1) $ 452.9 $ 400.0 $ 862.1 $ 726.2 Paper Segment operating income $ 25.8 $ 26.7 $ 61.4 $ 56.4 Depreciation, amortization, and depletion 4.5 4.5 9.1 10.5 EBITDA (1) 30.3 31.2 70.5 66.9 Jackson mill conversion-related activities - (0.6 ) - 4.3 EBITDA excluding special items (1) $ 30.3 $ 30.6 $ 70.5 $ 71.2 Corporate and Other Segment operating loss $ (38.4 ) $ (30.5 ) $ (71.8 ) $ (68.0 ) Depreciation, amortization, and depletion 4.4 3.9 9.4 7.8 EBITDA (1) (34.0 ) (26.6 ) (62.4 ) (60.2 ) Acquisition and integration-related costs 1.6 - 1.6 - EBITDA excluding special items (1) $ (32.4 ) $ (26.6 ) $ (60.8 ) $ (60.2 ) EBITDA excluding special items (1) $ 450.8 $ 404.0 $ 871.8 $ 737.2 Expand (1) See footnote (1) on page 2, for a discussion of non-GAAP financial measures. Expand
Business Wire
11 hours ago
- Business Wire
Mid Penn Bancorp, Inc. Reports Second Quarter Earnings and Declares 59th Consecutive Quarterly Dividend
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Loan growth for the second quarter of 2025 was $341.7 million, or 30.5% (annualized). Total loans increased $468.3 million, or 10.7%, to $4.8 billion at June 30, 2025, compared to $4.4 billion at June 30, 2024. Excluding the William Penn acquisition loans of $431.4 million, the organic loan portfolio for the quarter ended June 30, 2025 declined $89.6 million or 2.0% from the first quarter of 2025. This decline was primarily driven by elevated payoffs as commercial real estate construction loans stabilized and obtained non-recourse permanent financing. Deposits increased $717.5 million, or 60.8% (annualized), during the second quarter of 2025, compared to an increase of $42.3 million, or 3.7% (annualized), during the first quarter of 2025. This increase was driven by a $397.5 million increase in interest-bearing transaction accounts, a $68.8 million increase in noninterest-bearing accounts, and a $251.2 million increase in time deposits. Total deposits increased $952.7 million or 21.18% to $5.4 billion at June 30, 2025, compared to $4.5 billion at June 30, 2024. Organic deposit growth for the quarter ended June 30, 2025 was $96.2 million or 8.2%, annualized (excluding William Penn acquisition deposits of $621.3 million), from the first quarter of 2025. The core efficiency ratio (1) improved to 62.56% in the second quarter of 2025, compared to 62.79% in the first quarter of 2025, and 63.65% in the second quarter of 2024. Book value per common share declined to $33.85 as of June 30, 2025, compared to $34.50 as of March 31, 2025, and improved compared to $33.76 as of June 30, 2024. Tangible book value per common share (1) was $27.22 as of June 30, 2025, compared to $27.58 and $25.75 as of March 31, 2025 and June 30, 2024, respectively. The decline in book value primarily reflects the impact of the William Penn acquisition, including the issuance of additional common shares and the addition of acquisition related goodwill and other intangibles. As a result of the foregoing, the Board of Directors declared a cash dividend of $0.20 per common share, payable August 25, 2025, to shareholders of record as of August 8, 2025. Chair, President and CEO Rory G. Ritrievi provided the following statement: "The second quarter of 2025 for Mid Penn was virtually in line with what we expected. While our GAAP earnings were impacted by the completion of the William Penn acquisition within the quarter, excluding those one-time expenses establishes non-GAAP earnings of $0.70 per share, slightly in excess of the consensus estimate of $0.69 per share. Organic loan growth for the second quarter was negative by $89.6 million, or 2%, and since year end 2024, it is negative $42 million, or 1%. Throughout the first six months of 2025, we have had significant commercial real estate construction projects that reached completion and/or stabilization and, therefore, were refinanced out of a bank loan that significantly increased our natural principal runoff. At the same time, we have experienced the softest loan demand we have seen in many years. We attribute that soft demand to concerns over tariffs, interest rates, and the overall state of the economy. We are optimistic that loan pipelines will begin to improve through the rest of the year, and fully expect that we will hit the bottom end of our original loan growth target range by the end of the year. Organic deposit growth for the second quarter was $96 million, or 2%, and since the start of 2025, is $138 million, or almost 3%. With competition for deposits at an all-time high, I think those six-month growth numbers are solid. As with loan growth, I fully expect that we will reach the mid-point of our original target range on deposit growth by the end of the year. Throughout the quarter, we had improvements in net interest margin, cost of deposits, yields on loans, noninterest income and efficiency ratio, along with another solid quarter in asset quality, leading us to the consensus beat, notwithstanding the pullback in loans outstanding. We are encouraged by the results for the quarter while successfully completing the William Penn acquisition, and we are cautiously optimistic about what to anticipate for the remainder of 2025. It is our pleasure to announce that the Board has authorized its 59th consecutive quarterly dividend, a cash dividend of $0.20 per share of common stock, which was declared at its meeting on July 23, 2025, payable on August 25, 2025, to shareholders of record as of August 8, 2025." Net Interest Income For the three months ended June 30, 2025, net interest income was $48.2 million, compared to net interest income of $42.5 million for the three months ended March 31, 2025, and $38.8 million for the three months ended June 30, 2024. Interest income for the second quarter of 2025 includes $910 thousand of purchase accounting loan accretion related to the William Penn acquisition. This accretion reflects the recognition of fair value marks on acquired loans, which are accreted into interest income over the expected life of the assets. The tax-equivalent net interest margin for the three months ended June 30, 2025 was 3.44% compared to 3.37% and 3.12% for the first quarter of 2025 and second quarter of 2024, respectively, representing a 7 bp increase from the first quarter of 2025, and a 32 bp increase compared to the same period in 2024. The yield on interest-earning assets increased to 5.69% for the quarter ended June 30, 2025, from 5.65% for the three months ended March 31, 2025, and remained flat at 5.69% for the three months ended June 30, 2024. The increase from the first quarter of 2025 was primarily due to an increase in interest income on loans, and an increase in the average balance of Federal Funds Sold. For the six months ended June 30, 2025, net interest income increased 20.6% to $90.7 million compared to net interest income of $75.2 million for the same period of 2024. The increase was primarily driven by a $9.7 million increase in interest income on loans, a $2.3 million increase in Fed Funds Sold, partially offset by a $4.5 million increase in interest expense on deposits, and a $7.4 million decrease in the interest paid on short term borrowings, compared to the same period of 2024. Average Balances Average balances were significantly impacted by the William Penn acquisition given that the acquisition closed on April 30, 2025. Day one increases in loans, total assets, deposits, and total liabilities were $431.4 million, $757.3 million, $621.3 million, and $635.0 million, respectively. Average loans increased $265.0 million to $4.7 billion for the quarter ended June 30, 2025, compared to $4.5 billion for the quarter ended March 31, 2025, and increased $371.3 million compared to $4.4 billion for the quarter ended June 30, 2024. Average deposits were $5.2 billion for the second quarter of 2025, reflecting an increase of $478.0 million, or 10.2%, compared to total average deposits of $4.7 billion in the first quarter of 2025, and an increase of $708.1 million, or 15.9%, compared to total average deposits of $4.5 billion for the second quarter of 2024, primarily due to the William Penn acquisition and organic growth. The average cost of deposits was 2.41% for the second quarter of 2025, representing a 2 bp decrease and an 18 bp decrease from the first quarter of 2025 and the second quarter of 2024, respectively. Cost of funds decreased to 2.44%, compared to 2.48% for the first quarter of 2025. Despite a higher total interest expense, cost of funds declined during the quarter, primarily due to the growth in average interest-bearing liabilities, driven in part by the addition of lower-cost deposits acquired in the William Penn acquisition. These deposits helped dilute the overall cost of funding, contributing to the decline. Asset Quality The total provision for credit losses, including provision for credit losses on off-balance sheet credit exposures, was $2.3 million for the three months ended June 30, 2025, an increase of $2.0 million compared to the provision for credit losses of $301 thousand for the three months ended March 31, 2025, and a $665 thousand increase compared to the provision for credit losses of $1.6 million for the three months ended June 30, 2024. The increase in provision was primarily driven by a $2.3 million reserve established for non-PCD (Purchased Credit Deteriorated) loans acquired in the William Penn acquisition, offset by an $866 thousand decrease in reserve required for individually analyzed loans. Net charge offs for the three months ended June 30, 2025, were $811 thousand or less than 0.02% of total average loans. The provision for credit losses on loans was $2.6 million for the six months ended June 30, 2025, an increase of $1.4 million compared to the provision for credit losses of $1.2 million for the six months ended June 30, 2024. This increase for the six months ended June 30, 2025 was primarily due to a $2.3 million reserve on non-PCD loans acquired through the William Penn acquisition. The provision for credit losses on off-balance sheet credit exposures was $23 thousand and $3 thousand for the three and six months ended June 30, 2025, respectively. The increase was primarily driven by new participations in construction loans originated in the second quarter. Allowance for credit losses - loans was 0.78%, 0.80%, and 0.81% of loans, net of unearned income at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Total nonperforming assets were $28.0 million at June 30, 2025, compared to nonperforming assets of $25.4 million and $10.4 million at March 31, 2025 and June 30, 2024, respectively. The increase during the second quarter of 2025 primarily related to $2.6 million of non-accrual loans acquired from William Penn, partially offset by reductions to other non-accrual loans. Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.58% at June 30, 2025, compared to 0.50% and 0.57% as of March 31, 2025 and June 30, 2024, respectively. Capital Shareholders' equity increased $120.7 million, or 18.4%, from $655.0 million as of December 31, 2024, to $775.7 million as of June 30, 2025. Retained earnings increased $105 thousand, or 0.1%, from $191.5 million as of March 31, 2025 to $191.6 million as of June 30, 2025. The increase was primarily due to the William Penn acquisition. Regulatory capital ratios for both Mid Penn and the Bank indicate regulatory capital levels in excess of both the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at June 30, 2025. Additionally, Mid Penn declared $4.7 million in dividends during the second quarter of 2025. On April 23, 2025, Mid Penn's Board of Directors reauthorized its treasury stock repurchase program ("The Program") effective through April 30, 2026. The Program authorizes the repurchase of up to $15.0 million of Mid Penn's outstanding common stock. During the three months ended June 30, 2025, Mid Penn repurchased 48,064 shares of common stock at an average price of $28.36. No shares were repurchased in the first quarter for 2025. As of June 30, 2025, Mid Penn repurchased a total of 488,786 shares of common stock at an average price of $23.33 per share under the Program. The Program had approximately $3.6 million remaining available for repurchase as of June 30, 2025. Noninterest Income For the three months ended June 30, 2025, noninterest income totaled $6.1 million, an increase of $904 thousand, or 17.3%, compared to noninterest income of $5.2 million for the first quarter of 2025. The increase is primarily due to a $266 thousand increase in fiduciary and wealth management, a $217 thousand increase in earnings from the cash surrender value of life insurance as a result of policies assumed during the William Penn acquisition, and a $199 thousand increase in other noninterest income. The William Penn acquisition provides an opportunity for continued expansion into the Philadelphia markets, enabling the development of new wealth management and insurance customer relationships, which will help strengthen noninterest income. For the six months ended June 30, 2025, noninterest income totaled $11.4 million, an increase of $216 thousand, or 1.9%, compared to noninterest income of $11.2 million for the six months ended June 30, 2024. The increase in noninterest income is primarily driven by a $285 thousand increase in fiduciary and wealth management, a $215 thousand increase in mortgage banking income, and a $180 thousand increase in earnings from the cash surrender value of life insurance as a result of policies assumed during the William Penn acquisition, offset by a $512 thousand decrease in other miscellaneous noninterest income, driven by a $1.9 million decrease in Bank-owned life insurance benefits received, partially offset by a $568 thousand increase in loan level swap fees. Noninterest Expense For the three months ended June 30, 2025, noninterest expense totaled $47.8 million, an increase of $17.2 million, or 55.99%, compared to noninterest expense of $30.6 million in the first quarter of 2025. Merger and acquisition expenses increased $10.7 million, which includes $10.5 million of merger related expenses related to the William Penn acquisition and $164 thousand related to the Charis Insurance Group acquisition. Salaries and benefits increased $4.4 million for the three months ended June 30, 2025 compared to the first quarter of 2025. The increase is attributable to (i) equity-based compensation expense for stock options and restricted stock awards totaling $2.0 million that were recognized during the second quarter of 2025. (Future expected compensation expense related to these awards is approximately $753 thousand for the third quarter of 2025 and $2.2 million over the remaining vesting periods); (ii) the retail staff additions at the twelve retail locations added through the William Penn acquisition; and (iii) the retention of various William Penn team members through the completion of systems integration, which occurred on June 20, 2025. Software licensing and utilization costs increased $698 thousand compared to the first quarter of 2025. The increase reflects additional costs to (i) license the additional William Penn branches; and (ii) upgrades to internal systems, including network storage, cybersecurity, and data security enhancements in response to the Bank's larger size and increased IT complexity. For the six months ended June 30, 2025, noninterest expense totaled $78.4 million, an increase of $21.7 million, or 38.2%, compared to noninterest expense of $56.7 million for the six months ended June 30, 2024. Merger and acquisition expenses increased $11.3 million for the six months ended June 30, 2025, which includes $11.2 million of merger related expenses related to the William Penn acquisition and $164 thousand related to the Charis Insurance Group acquisition. Salaries and benefits increased $6.1 million for the six months ended June 30, 2025, compared to the same period in 2024, largely driven by the same Q2 items noted above, including $2.0 million in equity compensation, staff additions from the William Penn acquisition, and retention of key personnel through integration. Software licensing and utilization costs increased $1.5 million for the six months ended June 30, 2025, compared to the same period in 2024, reflecting the same Q2 drivers noted above. These include the onboarding of newly acquired William Penn branches, investments in IT infrastructure and cybersecurity. Occupancy expenses increased $796 thousand for the six months ended June 30, 2025, compared to the same period in 2024. The increase was driven by the facility operating costs of the additional retail locations added through the William Penn acquisition. The core efficiency ratio (1) was 62.6% in the second quarter of 2025, compared to 62.8% in the first quarter of 2025 and 63.7% in the second quarter of 2024. The change in the core efficiency ratio during the second quarter of 2025 compared to the first quarter of 2025 was the result of higher net interest income and higher noninterest income, partially offset by higher noninterest expense. Mid Penn continues to evaluate levels of noninterest expense for opportunities to reduce operating costs throughout the organization. William Penn Acquisition On April 30, 2025, Mid Penn completed its acquisition of William Penn through the merger of William Penn with and into Mid Penn. Each share of William Penn common stock issued and outstanding as of April 30, 2025, was converted into 0.426 shares of Mid Penn common stock. As a result of the acquisition, Mid Penn issued approximately 3,506,795 shares of Mid Penn common stock, plus up to an additional 538,447 shares of Mid Penn common stock issuable upon the exercise of former William Penn stock options, for a purchase price of $103.2 million. Mid Penn also recorded Goodwill of $6.2 million, and a core deposit intangible asset of $245 thousand as a result of this acquisition. Charis Insurance Group Acquisition On May 12, 2025, Mid Penn acquired the insurance business and related accounts of Charis Insurance Group, which provides business, home and auto insurance throughout central and southern Pennsylvania, for a purchase price of $4.0 million at closing. Mid Penn recorded Goodwill of $1.6 million, as a result of this acquisition. The assets and liabilities assumed in these transactions were recorded at their estimated fair values as of the respective date of acquisition and may be adjusted for up to one year subsequent to legal closing. (1) Non-GAAP financial measure. Refer to the calculation in the section titled 'Reconciliation of Non-GAAP Measures (Unaudited)' at the end of this document. Non-GAAP financial measure. Expand Subsequent Events Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company's consolidated financial statements when filed with the Securities and Exchange Commission ("SEC"). Accordingly, the financial information in this announcement is subject to change. The statements are valid only as of the date hereof and Mid Penn disclaims any obligation to update this information. This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn's portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; results of the regulatory examination and supervision process and oversight, including changes in monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; the availability of financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank's future businesses; material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn's initial expectations, including the full realization of anticipated cost savings and revenue enhancements; the possibility that the anticipated benefits of a transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in legacy Mid Penn and target markets; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of a transaction; the ability to complete the integration of Mid Penn and its target successfully; the dilution caused by Mid Penn's issuance of additional shares of its capital stock in connection with a transaction; and other factors that may affect the future results of Mid Penn. For a more detailed description of these and other factors which would affect our results, please see Mid Penn's filings with the SEC, including those risk factors identified in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the SEC. The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events, except as required by law. (Dollars in thousands, except per share data) Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Ending Balances: Investment securities $ 769,211 $ 634,044 $ 643,352 $ 642,291 $ 601,683 Loans, net of unearned income 4,832,898 4,491,167 4,443,070 4,431,704 4,364,561 Total assets 6,354,543 5,546,026 5,470,936 5,527,025 5,391,749 Total deposits 5,449,664 4,732,202 4,689,927 4,706,764 4,497,011 Shareholders' equity 775,708 667,933 655,018 573,059 559,686 Average Balances: Investment securities 652,105 639,580 633,409 610,586 608,173 Loans, net of unearned income 4,724,638 4,459,679 4,441,436 4,405,969 4,353,360 Total assets 6,036,045 5,491,763 5,481,473 5,470,641 5,378,897 Total deposits 5,159,754 4,681,708 4,687,880 4,597,686 4,451,678 Shareholders' equity 670,491 660,964 623,670 565,300 553,675 Three Months Ended Income Statement: Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Net interest income $ 48,206 $ 42,509 $ 41,280 $ 40,169 $ 38,766 Provision for credit losses (4) 2,269 301 333 516 1,604 Noninterest income 6,143 5,239 6,149 5,178 5,329 Noninterest expense 47,798 30,642 30,913 29,959 28,224 Income before provision for income taxes 4,282 16,805 16,183 14,872 14,267 (Benefit)/Provision for income taxes (480 ) 3,063 2,951 2,571 2,496 Net income available to shareholders 4,762 13,742 13,232 12,301 11,771 Net income excluding non-recurring income and expenses (1) 15,074 13,907 12,961 12,383 11,284 Per Share: Basic earnings per common share $ 0.22 $ 0.71 $ 0.72 $ 0.74 $ 0.71 Diluted earnings per common share 0.22 0.71 0.72 0.74 0.71 Cash dividends declared 0.20 0.20 0.20 0.20 0.20 Book value per common share 33.85 34.50 33.84 34.48 33.76 Tangible book value per common share (1) 27.22 27.58 26.90 26.36 25.75 Asset Quality: Net charge-offs/(recoveries) to average loans (3) 0.069 % (0.0003 %) 0.037 % 0.031 % 0.002 % Non-performing loans to total loans 0.38 0.54 0.51 0.39 0.23 Non-performing asset to total loans and other real estate 0.58 0.57 0.51 0.40 0.24 Non-performing asset to total assets 0.44 0.46 0.41 0.32 0.19 ACL on loans to total loans 0.78 0.80 0.80 0.80 0.81 ACL on loans to nonperforming loans 206.49 149.05 157.07 204.61 352.92 Profitability: Return on average assets (3) 0.32 % 1.01 % 0.96 % 0.89 % 0.88 % Return on average equity (3) 2.85 8.43 8.44 8.66 8.55 Return on average tangible common equity (1) (3) 4.05 10.84 11.07 11.69 11.57 Tax-equivalent net interest margin 3.44 3.37 3.21 3.13 3.12 Core Efficiency ratio (1) 62.56 62.79 63.94 64.89 63.65 Capital Ratios: Tier 1 Capital (to Average Assets) (2) 10.6 % 10.2 % 10.0 % 8.4 % 8.4 % Common Tier 1 Capital (to Risk Weighted Assets) (2) 12.0 12.0 12.1 10.1 9.9 Tier 1 Capital (to Risk Weighted Assets) (2) 12.0 12.0 12.1 10.1 9.9 Total Capital (to Risk Weighted Assets) (2) 13.3 13.8 14.0 11.9 11.8 Expand (1) Non-GAAP financial measure. Refer to the calculation in the section titled 'Reconciliation of Non-GAAP Measures (Unaudited)' at the end of this document. (2) Regulatory capital ratios as of June 30, 2025 are preliminary and prior periods are actual. (3) Annualized ratio (4) Includes $2.3 million related to non-PCD loans acquired in the William Penn transaction Expand CONSOLIDATED BALANCE SHEETS (Unaudited): (In thousands, except share data) Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 ASSETS Cash and due from banks $ 52,671 $ 47,688 $ 37,002 $ 57,518 $ 36,948 Interest-bearing balances with other financial institutions 22,828 16,880 14,490 19,323 25,585 Federal funds sold 261,353 42,686 19,072 67,554 43,193 Total cash and cash equivalents 336,852 107,254 70,564 144,395 105,726 Investment Securities: Held to maturity, at amortized cost 364,029 375,115 382,447 386,618 393,320 Available for sale, at fair value 404,745 258,493 260,477 255,227 207,936 Equity securities available for sale, at fair value 437 436 428 446 427 Loans held for sale 6,101 6,851 7,064 7,919 8,420 Loans, net of unearned income 4,832,898 4,491,167 4,443,070 4,431,704 4,364,561 Less: Allowance for credit losses (1) (37,615 ) (35,838 ) (35,514 ) (35,562 ) (35,288 ) Net loans 4,795,283 4,455,329 4,407,556 4,396,142 4,329,273 Premises and equipment, net 47,732 40,328 38,806 33,765 34,344 Operating lease right of use asset 15,026 9,402 7,699 7,390 7,925 Finance lease right of use asset 2,458 2,503 2,548 2,593 2,638 Cash surrender value of life insurance 94,770 51,351 51,521 53,135 53,298 Restricted investment in bank stocks 7,110 6,660 7,461 10,589 13,930 Accrued interest receivable 28,546 27,263 26,846 27,286 27,381 Deferred income taxes 35,333 21,800 22,747 23,197 24,520 Goodwill 135,473 128,160 128,160 128,160 127,031 Core deposit and other intangibles, net 16,531 5,814 6,242 6,713 5,626 Foreclosed assets held for sale 9,816 1,402 44 281 441 Other assets 54,301 47,865 50,326 43,169 49,513 LIABILITIES & SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 857,072 $ 788,316 $ 759,169 $ 791,980 $ 766,014 Interest-bearing transaction accounts 2,772,739 2,375,205 2,319,753 2,288,783 2,194,948 Time 1,819,853 1,568,681 1,611,005 1,626,001 1,536,049 Total Deposits 5,449,664 4,732,202 4,689,927 4,706,764 4,497,011 Short-term borrowings — 25,000 2,000 114,097 200,000 Long-term debt 23,374 23,489 23,603 23,716 23,827 Subordinated debt and trust preferred securities 37,303 45,587 45,741 45,894 46,047 Operating lease liability 15,342 9,765 8,092 7,778 8,344 Accrued interest payable 13,421 12,900 13,484 18,995 18,139 Other liabilities 39,731 29,150 33,071 36,722 38,695 Total Liabilities 5,578,835 4,878,093 4,815,918 4,953,966 4,832,063 Shareholders' Equity: Common stock, par value $1.00 per share; 40.0 million shares authorized 23,419 19,803 19,797 17,061 17,051 Additional paid-in capital 584,291 480,866 480,491 406,922 406,544 Retained earnings 191,574 191,469 181,597 172,234 163,256 Accumulated other comprehensive loss (11,756 ) (14,163 ) (16,825 ) (13,116 ) (17,123 ) Treasury stock (11,820 ) (10,042 ) (10,042 ) (10,042 ) (10,042 ) Total Shareholders' Equity 775,708 667,933 655,018 573,059 559,686 Total Liabilities and Shareholders' Equity $ 6,354,543 $ 5,546,026 $ 5,470,936 $ 5,527,025 $ 5,391,749 Expand (1) Includes $2.3 million related to non-PCD loans acquired in the William Penn transaction Expand CONSOLIDATED STATEMENTS OF INCOME (Unaudited): Three Months Ended (Dollars in thousands, except per share data) Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 INTEREST INCOME Loans, including fees $ 72,469 $ 66,537 $ 68,110 $ 68,080 $ 66,096 Investment securities: Taxable 4,637 4,460 4,223 4,136 4,143 Tax-exempt 344 348 358 359 371 Other interest-bearing balances 142 138 154 223 347 Federal funds sold 2,428 261 467 1,043 282 Total Interest Income 80,020 71,744 73,312 73,841 71,239 INTEREST EXPENSE Deposits 30,981 28,264 30,836 30,689 28,463 Short-term borrowings 86 290 509 2,296 3,324 Long-term and subordinated debt 747 681 687 687 686 Total Interest Expense 31,814 29,235 32,032 33,672 32,473 Net Interest Income 48,206 42,509 41,280 40,169 38,766 Net provision for credit losses (1) 2,269 301 333 516 1,604 Net Interest Income After Provision for Credit Losses 45,937 42,208 40,947 39,653 37,162 NONINTEREST INCOME Fiduciary and wealth management 1,406 1,140 1,215 1,204 1,129 ATM debit card interchange 958 919 971 962 973 Service charges on deposits 652 562 579 549 539 Mortgage banking 676 591 656 768 628 Mortgage hedging (7 ) (9 ) 11 (1 ) — Net gain on sales of SBA loans 63 57 15 151 74 Earnings from cash surrender value of life insurance 491 274 280 276 301 Other 1,904 1,705 2,422 1,269 1,685 Total Noninterest Income 6,143 5,239 6,149 5,178 5,329 NONINTEREST EXPENSE Salaries and employee benefits 20,753 16,309 16,947 16,156 15,533 Software licensing and utilization 3,272 2,574 2,606 2,366 2,208 Occupancy, net 2,365 2,274 1,913 1,815 1,861 Equipment 1,248 1,094 1,213 1,206 1,287 Shares tax 606 919 405 824 124 Legal and professional fees 993 826 1,006 1,613 689 ATM/card processing 621 733 634 606 510 Intangible amortization 744 428 471 460 425 FDIC Assessment 994 990 843 1,150 1,232 (Gain)/Loss on sale or write-down of foreclosed assets, net — (28 ) 73 (35 ) 42 Merger and acquisition 11,011 314 436 109 — Other 5,191 4,209 4,366 3,689 4,313 Total Noninterest Expense 47,798 30,642 30,913 29,959 28,224 INCOME BEFORE PROVISION FOR INCOME TAXES 4,282 16,805 16,183 14,872 14,267 (Benefit)/Provision for income taxes (480 ) 3,063 2,951 2,571 2,496 PER COMMON SHARE DATA: Diluted Earnings Per Common Share 0.22 0.71 0.72 0.74 0.71 Cash Dividends Declared 0.20 0.20 0.20 0.20 0.20 Expand (1) Includes $2.3 million related to non-PCD loans acquired in the William Penn transaction Expand (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance. (2) Annualized ratios Expand ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited): (1) Includes $2.3 million related to non-PCD loans acquired in the William Penn transaction Expand RECONCILIATION OF NON-GAAP MEASURES (Unaudited) Explanatory note: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Mid Penn's management uses these non-GAAP financial measures in their analysis of Mid Penn's performance. For tangible book value, the most directly comparable financial measure calculated in accordance with GAAP is book value. We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing tangible book value. Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances or non-deductible portions of the non-GAAP adjustments. Adjusted earnings per common share excludes from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, net of income taxes. For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity. The core efficiency ratio is often used by management to measure its noninterest expense as a percentage of its revenue. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Mid Penn's results and financial condition as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding Mid Penn's ongoing operating results. This supplemental presentation should not be construed as an inference that Mid Penn's future results will be unaffected by similar adjustments to be determined in accordance with GAAP. The reconciliation of the non-GAAP to comparable GAAP financial measures can be found in the tables below. Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses Return on Average Tangible Common Equity (1) Annualized ratio Expand Core Efficiency Ratio Three Months Ended (Dollars in thousands) Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Noninterest expense $ 47,798 $ 30,642 $ 30,913 $ 29,959 $ 28,224 Less: Merger and acquisition expenses 11,011 314 436 109 — Less: Compensation expense for accelerated vesting of stock options and restricted stock awards 2,043 — — — — Less: Intangible amortization 744 428 471 460 425 Less: (Gain) Loss on sale or write-down of foreclosed assets, net — (28 ) 73 (35 ) 42 Efficiency ratio numerator 34,000 29,928 29,933 29,425 27,757 Net interest income 48,206 42,509 41,280 40,169 38,766 Noninterest income 6,143 5,239 6,149 5,178 5,329 Less: BOLI Death Benefit 1 83 615 4 487 Efficiency ratio denominator $ 54,348 $ 47,665 $ 46,814 $ 45,343 $ 43,608 Core efficiency ratio 62.56 % 62.79 % 63.94 % 64.89 % 63.65 % Expand
Hamilton Spectator
12 hours ago
- Hamilton Spectator
First Quantum Minerals Reports Second Quarter 2025 Results
(In United States dollars, except where noted otherwise) TORONTO, July 23, 2025 (GLOBE NEWSWIRE) — First Quantum Minerals Ltd. ('First Quantum' or the 'Company') (TSX: FM) today reports results for the three and six months ended June 30, 2025 ('Q2 2025' or the 'second quarter') of net earnings attributable to shareholders of the Company of $18 million ($0.02 earnings per share) and adjusted earnings1 of $17 million ($0.02 adjusted earnings per share2). 'The second quarter marked several important milestones for First Quantum. At Cobre Panamá, we received formal government approval for the Preservation and Safe Management plan and started shipping copper concentrate that has been on site since 2023. At the S3 Expansion project at Kansanshi, we are in the final stages of commissioning and the project remains on budget and on schedule for first production in the second half of 2025. Additionally, I am also pleased that test work on a newly identified gold zone at Kansanshi is yielding promising results. We are accelerating further work, including additional test work and a pilot plant. While copper production was lower during the quarter, we are confident on a stronger second half of the year and we remain on track to achieve our 2025 guidance,' said Tristan Pascall, Chief Executive Officer of First Quantum. 'To support our near-term liquidity, we initiated gold hedges during the quarter, capitalizing on the strong prevailing market prices for a portion of our gold output. This initiative is another step in our continuing efforts to enhance our financial flexibility.' Q2 2025 SUMMARY In Q2 2025, First Quantum reported gross profit of $351 million, EBITDA1 of $400 million, net earnings attributable to shareholders of $0.02 per share, and adjusted earnings per share2 of $0.02. Relative to the first quarter of 2025 ('Q1 2025'), second quarter financial results were stronger due to higher gold sales volumes and higher realized copper and gold prices2. The second quarter benefitted from a concentrate shipment from Cobre Panamá in June. Along with second quarter results, the following are also detailed in this news release: _______________ 1 EBITDA and adjusted earnings (loss) are non-GAAP financial measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 2 Adjusted earnings (loss) per share, and realized metal prices are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. Q2 2025 OPERATIONAL HIGHLIGHTS Total copper production for the second quarter was 91,069 tonnes, a 9% decrease from Q1 2025 mainly as a result of lower production at Kansanshi. Copper C1 cash cost1 was $0.05 per lb higher quarter-over-quarter at $2.00 per lb, reflecting lower copper production volumes. Copper sales volumes totalled 101,173 tonnes, approximately 10,104 tonnes higher than production due to the shipment of 8,248 tonnes of copper from Cobre Panamá in June following the approval of the P&SM plan by the GOP. _______________ 1 C1 cash cost (C1) is a non-GAAP ratio, which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures' COBRE PANAMÁ UPDATE Production at Cobre Panamá has been halted since November 2023. On May 30, 2025, the GOP, through the Ministry of Commerce and Industries, approved and formally instructed the execution of the P&SM plan. This allows for the integral P&SM activities and the associated environmental measures at site, which will be funded through the copper concentrate that has been approved by the GOP for export. P&SM costs during the second quarter averaged approximately $15 million per month. These expenses are principally related to labour, maintenance, contractors' services, electricity costs, and other general operating expenses. For the month of June, costs included services for the shipment of the first concentrate vessel and some expenses related to pre-commissioning activities for the power station start-up. The Company continues to actively manage maintenance expenditures and will adjust workforce levels and activity-related costs in response to evolving conditions on the ground in Panama. With the recommissioning of the power plant, the Company anticipates increasing its workforce by approximately 100 people. P&SM costs are expected to increase to approximately $17 million to $18 million per month with the restart of the power plant in the fourth quarter of 2025, although the incremental costs are anticipated to be partially offset by the potential sale of excess power to support the national grid. The Company continues with the comprehensive public outreach program across the country to enhance transparency and provide accessible information about Cobre Panamá. KANSANSHI S3 EXPANSION The Kansanshi S3 Expansion project reached the final stages of commissioning with first ore fed through the expansion operations ahead of schedule. The project remains on budget and on schedule for first production in the second half of 2025. The Company has now passed the peak of capital expenditure with cash spending expected to decline as the project advances towards completion. During the second quarter of 2025, commissioning of the dry plant and mills progressed well. First ore was fed to the primary crusher onto the crushed ore stockpile during the quarter and subsequently through the semi-autogenous grinding ('SAG') mill and the rougher flotation circuit in July, ahead of schedule. Water runs in the wet plant continued, including filling the rougher flotation cells, tails thickeners and the raw water clarifier. Construction work continues with a focus on completing non-process infrastructure and readying the site for ongoing operations. The project achieved 91% construction completion and 50% of systems have been handed over to commissioning. Configuration of the plant control system is at 92% completion with a focus on site live sequence and functionality testing. Operational readiness is 93% complete with all employment requirements fulfilled. The transition from a readiness team to the operational team has begun and operators and maintenance personnel have commenced controlled plant runs. KANSANSHI EXPLORATION UPDATE At Kansanshi, the Company continued the program to evaluate the new near-surface gold zone occurrences in the South East Dome area. Recent work has identified the presence of near-surface gold mineralization with a thickness ranging from one to nine meters, with a northwest strike length of 7.5 kilometres, which directly overlies and extends outwards of the primary copper-gold deposit. Deportment studies suggest that the gold is generally very fine grained, but with some associated coarser particles having a typical gold mineralization 'nugget effect' which needs to be considered during sampling, analysis and ultimately for grade estimation purposes. The style of mineralization requires a larger than typical sample together with careful sample collection and analytical methods that address both the nugget effect as well as risks to detecting the fine gold component. The exploration test work is ongoing with the intent to work towards defining the resource for the near-surface gold zone occurrences. Preliminary results from bulk samples processed in the existing Kansanshi gold facilities and a small-scale bulk testing plant have generated encouraging results to date, enabling the rapid deployment of interim bulk sampling facilities on site. The Company is accelerating additional test work, including in-situ sampling and analysis on large diameter diamond drilled core samples, as well as additional bulk sampling. In addition, a high resolution airborne electromagnetic survey has been completed to assist in delineating the position, extents and quality of the near-surface gold zone occurrences. The Company has initiated work on a pilot plant with an estimated completion later this year, which is intended to support processing of the gravity gold mineralization. Work related to the newly defined near-surface gold zone occurrences and the potential gold production is independent of the existing Kansanshi copper and gold operations and the S3 Expansion project. The new near-surface gold zone occurrences are not currently included within the Company's Mineral Resources and Reserves, the Kansanshi mine plan or guidance. FINANCIAL HIGHLIGHTS Financial results continue to be impacted by the suspension of Cobre Panamá. Second quarter financial results, relative to the first quarter, benefitted from strong gold sales volumes and realized copper and gold prices2. HEDGING PROGRAM During the quarter, the Company continued to enter into derivative contracts, in the form of unmargined zero cost copper collars, and initiated new unmargined zero cost gold collars, as protection from downside price movements in each metal, financed by selling price upside beyond certain levels on a matched portion of production. As at July 23, 2025, the Company had zero cost copper collar contracts outstanding for 228,800 tonnes at weighted average prices of $4.14 per lb to $4.71 per lb with maturities to June 2026. Of these, there were 136,325 tonnes with maturities to the end of 2025 with weighted average prices of $4.14 per lb to $4.80 per lb. Approximately 60% of planned production and sales in 2025, and approximately 40% of planned production and sales for the first half of 2026 are protected from spot copper price movements. In addition, as at July 23, 2025, the Company had zero cost gold collar contracts outstanding for 78,318 ounces at weighted average prices of $2,941 per oz to $4,168 per oz with maturities to June 2026. _______________ 1 EBITDA is a non-GAAP financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 2 Cash flows from operating activities per share, and realized metal prices are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 3 Net debt is a supplementary financial measure which does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. CONSOLIDATED FINANCIAL HIGHLIGHTS 1 EBITDA and adjusted earnings (loss) are non-GAAP financial measures, and net debt is a supplementary financial measure. These measures do not have a standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings (loss) have been adjusted to exclude items from the corresponding IFRS measure, net earnings (loss) attributable to shareholders of the Company, which are not considered by management to be reflective of underlying performance. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors and may not be comparable to similar financial measures disclosed by other issuers. The use of adjusted earnings (loss) and EBITDA represents the Company's adjusted earnings (loss) metrics. See 'Regulatory Disclosures'. 2 Adjustments to EBITDA in 2025 relate principally to the adjustment for expected phasing of Zambian VAT and the tax effect on unrealized movements in the fair value of derivatives designated as hedging instruments (2024 - relate to an impairment expense of $71 million, a foreign exchange revaluations gain of $14m and a restructuring expense of $12 million). 3 Adjusted earnings (loss) per share, realized metal prices, copper all-in sustaining cost (copper AISC), copper C1 cash cost (copper C1) and total cost of copper (copper C3) are non-GAAP ratios, which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 4 Excludes the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were 2,211 tonnes and 8,609 tonnes for the three and six months ended June 30, 2025 (12,100 tonnes and 17,890 tonnes for the three and six months ended June 30, 2024). REALIZED METAL PRICES1 1 Realized metal prices are a non-GAAP ratio, do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures' for further information. 2 Excludes gold revenues recognized under the precious metal stream arrangement. CONSOLIDATED OPERATING HIGHLIGHTS 1 Production is presented on a contained basis, and is presented prior to processing through the Kansanshi smelter. 2 Other sites (copper) includes Guelb Moghrein and Çayeli. 3 Sales exclude the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were 2,211 tonnes and 8,609 tonnes for the for the three and six months ended June 30, 2025 (12,100 tonnes and 17,890 tonnes for the for the three and six months ended June 30, 2024). 4 Other sites (gold) includes Çayeli and Pyhäsalmi. 5 Excludes refinery-backed gold credits purchased and delivered under the precious metal streaming arrangement (see 'Precious Metal Stream Arrangement'). 6 Copper all-in sustaining cost (copper AISC), copper C1 cash cost (copper C1), and total cost of copper (copper C3) are non-GAAP ratios, which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 2025 GUIDANCE Guidance provided below is based on a number of assumptions and estimates as of June 30, 2025, including among other things, assumptions about metal prices and anticipated costs and expenditures. Guidance involves estimates of known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different. 2025 guidance that was previously disclosed on January 15, 2025 remains unchanged. PRODUCTION GUIDANCE PRODUCTION GUIDANCE BY OPERATION1 1 Production is stated on a 100% basis as the Company consolidates all operations. CASH COST1 AND ALL-IN SUSTAINING COST1 1 C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. PURCHASE AND DEPOSITS ON PROPERTY, PLANT & EQUIPMENT 1 Capitalized stripping, sustaining capital and project capital are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. ENVIRONMENT, SOCIAL AND GOVERNANCE ('ESG') Health & Safety Tragically, on June 21, 2025, an employee at the Trident operation in Zambia passed away following an incident involving a dump truck at the Sentinel pit. The Company is working with the relevant local authorities in their investigations and an internal investigation into the incident is underway. The health and safety of the Company's employees and contractors is a top priority and the Company is focused on the continuous strengthening and improvement of the safety culture at all of its operations. Climate Strategy In light of the current situation in Panama and drought conditions aggravated by El Niño in Zambia, the Company revised its climate targets on May 15, 2025. The expected timeline for delivering the Company's decarbonization strategy has been impacted by the current phase of P&SM at Cobre Panamá following the suspension of operations, alongside a temporary reduction in the availability of hydroelectric power in Zambia due to drought conditions. In response, First Quantum now targets a 50% reduction in absolute Scope 1 and 2 greenhouse gas emissions, as well as the CO₂e intensity of copper production, by 2035. Progress toward this target will depend significantly on increased clarity around the situation in Panama, where the power station at Cobre Panamá, when operational, remains the Company's largest single source of CO₂e emissions. COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS The complete Consolidated Financial Statements and Management's Discussion and Analysis for the three and six months ended June 30, 2025 are available at and at and should be read in conjunction with this news release. CONFERENCE CALL DETAILS The Company will host a conference call and webcast to discuss the results on Thursday, July 24, 2025 at 9:00 am (ET). Conference call and webcast details: Toll-free North America: 1-888-672-2415 International: +1-646-307-1952 Conference ID 8111752 Webcast: Direct link or on our website A replay of the webcast will be available on the First Quantum website. For further information, visit our website at or contact: Bonita To, Director, Investor Relations (416) 361-6400 Toll-free: 1 (888) 688-6577 E-Mail: info@ REGULATORY DISCLOSURES Non-GAAP and Other Financial Measures EBITDA, ADJUSTED EARNINGS (LOSS) AND ADJUSTED EARNINGS (LOSS) PER SHARE EBITDA, adjusted earnings (loss) and adjusted earnings (loss) per share exclude certain impacts which the Company believes are not reflective of the Company's underlying performance for the reporting period. These include impairment and related charges, foreign exchange revaluation gains and losses, gains and losses on disposal of assets and liabilities, one-time costs related to acquisitions, dispositions, restructuring and other transactions, revisions in estimates of restoration provisions at closed sites, debt extinguishment and modification gains and losses, the tax effect on unrealized movements in the fair value of derivatives designated as hedged instruments, and adjustments for expected phasing of Zambian VAT. REALIZED METAL PRICES Realized metal prices are used by the Company to enable management to better evaluate sales revenues in each reporting period. Realized metal prices are calculated as gross metal sales revenues divided by the volume of metal sold in lbs. Net realized metal price is inclusive of the treatment and refining charges (TC/RC) and freight charges per lb. OPERATING CASHFLOW PER SHARE In calculating the operating cash flow per share, the operating cash flow calculated for IFRS purposes is divided by the basic weighted average common shares outstanding for the respective period. NET DEBT Net debt is comprised of bank overdrafts and total debt less unrestricted cash and cash equivalents. CASH COST, ALL-IN SUSTAINING COST, TOTAL COST The consolidated cash cost (C1), all-in sustaining cost (AISC) and total cost (C3) presented by the Company are measures that are prepared on a basis consistent with the industry standard definitions by the World Gold Council and Brook Hunt cost guidelines but are not measures recognized under IFRS. In calculating the C1 cash cost, AISC and C3, total cost for each segment, the costs are measured on the same basis as the segmented financial information that is contained in the financial statements. C1 cash cost includes all mining and processing costs less any profits from by-products such as gold, silver, zinc, pyrite, cobalt, sulphuric acid, or iron magnetite and is used by management to evaluate operating performance. TC/RC and freight deductions on metal sales, which are typically recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of finished metal. AISC is defined as cash cost (C1) plus general and administrative expenses, sustaining capital expenditure, deferred stripping, royalties and lease payments and is used by management to evaluate performance inclusive of sustaining expenditure required to maintain current production levels. C3 total cost is defined as AISC less sustaining capital expenditure, deferred stripping and general and administrative expenses net of insurance, plus depreciation and exploration. This metric is used by management to evaluate the operating performance inclusive of costs not classified as sustaining in nature such as exploration and depreciation. 1 Total cost of sales per the Consolidated Statement of Earnings (Loss) in the Company's annual audited consolidated financial statements. 2 C1 cash cost (C1), total costs (C3) and all-in sustaining costs (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 3 Sustaining capital and deferred stripping are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 4 Excludes purchases of copper concentrate from third parties treated through the Kansanshi Smelter 1 Total cost of sales per the Consolidated Statement of Earnings (Loss) in the Company's annual audited consolidated financial statements. 2 C1 cash cost (C1), total costs (C3) and all-in sustaining costs (AISC) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 3 Sustaining capital and deferred stripping are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See 'Regulatory Disclosures'. 4 Excludes purchases of copper concentrate from third parties treated through the Kansanshi Smelter. CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The forward-looking information includes estimates, forecasts and statements as to the Company's production estimates for copper, gold and nickel; C1 cash costs, all-in sustaining cost and capital expenditure estimates; the status of Cobre Panamá and the P&SM program, including the expected costs and funding of P&SM and the anticipated timing and effects of restarting the power plant following completion of re-commissioning activities; the Company's climate targets and the status of its decarbonization strategy; the status of the Company's pilot plant and battery-powered dump truck trial at Kansanshi; the development and operation of the Company's projects, including the timing and effects of planned maintenance shutdowns; the status and expected impact of the Kansanshi S3 Expansion, including the expected time to completion and production and the expansion of tailings storage facilities; the expansion of Quantum Electra-Haul™ trolley-assist infrastructure across the Company's Zambian operations; the increase in throughput capacity of the Kansanshi smelter; the timing of publication of external audit reports concerning Cobre Panamá; the Company's expectations regarding throughput capacity, mining performance and fragmentation at Sentinel and the effect of ongoing initiatives, including the Company's brownfields exploration program; the Company's expectations regarding oxide ore extraction from Oriental Hill at Guelb Moghrein; the C&M activity at Ravensthorpe, including the costs thereof; the timing of receipt of concessions, approvals, permits required for Taca Taca, including the ESIA and water use permits; the expected use and timing of the Company's expenditures at La Granja, project development and the Company's plans for community engagement and completion of an engineering study and ESIA for La Granja; the status and findings of the Company's program to evaluate a newly defined near-surface gold zone occurrences at Kansanshi; the curtailment of the power supply in Zambia and the Company's ability to continue to source sufficient power and avoid interruptions to operations, including through collaboration with ZESCO and the implementation of renewable power projects, and the estimated impact of the Company's supplementary sourcing strategy on costs; the anticipated timing of the commissioning of renewable power projects in Zambia; the Company's goals regarding its drilling program at Haquira; the estimates regarding the interest expense on the Company's debt, cash outflow on interest paid, capitalized interest and depreciation expense; the expected effective tax rate for the Company for full year 2025; the expected VAT receivable for the Company's Zambian operations; the effect of foreign exchange on the Company's cost of sales; the Company's hedging programs; the effect of seasonality on the Company's results; capital expenditures; estimates of the future price of certain precious and base metals; the Company's project pipeline, development and growth plans and exploration and development program, future expenses and exploration and development capital requirements; the Company's assessment and exploration of targets in the Central African Copper belt, the Andean porphyry belt, Kazakhstan and Türkiye; the timing of publication of the updated NI 43-101 Technical Reports in respect of Taca Taca and Çayeli; greenhouse gas emissions and energy efficiency; and community engagement efforts. Often, but not always, forward-looking statements or information can be identified by the use of words such as 'aims', 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate' or 'believes' or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about the geopolitical, economic, permitting and legal climate in which the Company operates; continuing production at all operating facilities (other than Cobre Panamá and Ravensthorpe); the price of certain precious and base metals, including copper, gold, nickel, silver, cobalt, pyrite and zinc; exchange rates; anticipated costs and expenditures; the Company's ability to continue to source sufficient power at its Zambian operations to avoid interruption resulting from the country's decreased power availability; mineral reserve and mineral resource estimates; the timing and sufficiency of deliveries required for the Company's development and expansion plans; the ability of the Company to reduce greenhouse gas emissions at its operations; future exploration results; and the ability to achieve the Company's goals, including with respect to the Company's climate and sustainability initiatives. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to, future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such as oil, power and sulphur, political stability in Panama, Zambia, Peru, Mauritania, Finland, Türkiye, Argentina and Australia, adverse weather conditions in Panama, Zambia, Finland, Türkiye, Mauritania, and Australia, potential social and environmental challenges (including the impact of climate change), power supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations and events generally impacting global economic, political and social stability and legislative and regulatory reform. For mineral resource and mineral reserve figures appearing or referred to herein, varying cut-off grades have been used depending on the mine, method of extraction and type of ore contained in the orebody. See the Company's Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not as anticipated, estimated or intended. Also, many of these factors are beyond First Quantum's control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements made and information contained herein are qualified by this cautionary statement.
