In today’s briefing:
- Last Week In Event SPACE: Soul Patts/Brickworks, Furukawa Battery, PCCW, TPG Telecom
- Axalta Coating Systems Taps China & Latin America: Can They Build Volumes & Enable Global Mobility Expansion?
- FMC Corporation’s Cost-Cutting Blitz Paying Off? What Is The Expected Impact On Margins in 2025?
- Magnolia Oil and Gas: Will Their Giddings Field Expansion Efforts Pay Off?
- Shell Strikes Gold With Strategic Partnerships—Is Asset Optimization the Next Big Payoff?
- Vulcan Materials: How Are They Leveraging The Public & Private Demand for Infrastructure?
- Air Products and Chemicals: Balancing Core Growth & Energy Transition – Is It Poised to Gain Market Share?
- Western Midstream’s $1.5 Billion Bet On Aris—What Wall Street Isn’t Telling You
- Element Solutions: Shifting Gears from Consumer Tech to High-Performance Computing Supremacy!
Last Week In Event SPACE: Soul Patts/Brickworks, Furukawa Battery, PCCW, TPG Telecom
- There is, or perhaps, was, imbedded value via the cross-holding. However, Soul Patts (SOL AU) & Brickworks (BKW AU)‘s combined market cap has increased 18% or A$3.1bn since announcing their merger.
- Furukawa Battery (6937 JP) is a VERY low-priced MBO-like transaction. The pricing process is unacceptable. It is a take-under. It is BAD process. But it’ll get done.
- For a company that has consistently spilled red ink at the stub level, there is no justification why PCCW Ltd (8 HK) would/should trade at a NAV premium.
Axalta Coating Systems Taps China & Latin America: Can They Build Volumes & Enable Global Mobility Expansion?
- Axalta Coating Systems reported their Q2 2025 financial results, showcasing a mixed picture of performance and challenges in various segments.
- The company’s record adjusted EBITDA of $292 million and adjusted diluted EPS underscore their ability to sustain profitability even in a volatile macroeconomic landscape.
- Notably, adjusted EBITDA margins remained strong at over 22%, marking the fifth consecutive quarter of hitting or exceeding their 21% target outlined in their A Plan.
FMC Corporation’s Cost-Cutting Blitz Paying Off? What Is The Expected Impact On Margins in 2025?
- FMC Corporation’s second quarter 2025 results illustrate a mixed picture of operational outcomes and strategic pivots that impact its investment thesis.
- The company reported a slight increase in sales, with a 1% rise from the previous year, driven by a 6% volume growth.
- Despite the topline growth, pricing and foreign exchange created headwinds, each accounting for a 1% decline in revenue.
Magnolia Oil and Gas: Will Their Giddings Field Expansion Efforts Pay Off?
- Magnolia Oil & Gas Corporation reported a robust second quarter for 2025, demonstrating notable operational efficiencies and solid financial performance.
- The company recorded an adjusted net income of $81 million and an adjusted EBITDAX of $223 million.
- Capital expenditures for drilling and completions were held at $95 million, representing only 43% reinvestment of EBITDAX, which underscores the capital efficiency achieved during this period.
Shell Strikes Gold With Strategic Partnerships—Is Asset Optimization the Next Big Payoff?
- Royal Dutch Shell’s second-quarter 2025 financial results reflect a company grappling with challenging macroeconomic conditions yet demonstrating resilience and strategic focus.
- The external environment painted a complex picture, influenced by geopolitical uncertainties and fluctuating commodity prices, which impacted trade flows and margins.
- Nevertheless, Shell delivered strong operational performance and significant cost reductions, affirming its commitment to strategic objectives set out at the Capital Markets Day (CMD) in March.
Vulcan Materials: How Are They Leveraging The Public & Private Demand for Infrastructure?
- The recent earnings for Vulcan Materials Company reflected mixed results for the second quarter of 2025, providing several insights into the company’s financial performance and operational dynamics.
- On the positive side, Vulcan demonstrated strong financial improvements despite facing significant weatherrelated disruptions.
- The company reported a 16% increase in adjusted EBITDA, with margins expanding by 260 basis points.
Air Products and Chemicals: Balancing Core Growth & Energy Transition – Is It Poised to Gain Market Share?
- Air Products and Chemicals, Inc. reported its fiscal third-quarter results, demonstrating a mix of positive performance and ongoing challenges.
- The company’s adjusted earnings per share (EPS) of $3.09 exceeded their own guidance, despite a decrease from the prior year’s comparable results due to the previous sale of its LNG business.
- This sale significantly impacted sales volumes, contributing to a 4% decline.
Western Midstream’s $1.5 Billion Bet On Aris—What Wall Street Isn’t Telling You
- Western Midstream Partners has recently signaled a major strategic shift by agreeing to acquire Aris Water Solutions in a cash-and-stock deal valued at approximately $1.5 billion.
- This announcement follows Western’s strong Q1 2025 performance—highlighted by the successful commissioning of the North Loving plant, net leverage below 3×, and roughly $2.4 billion of liquidity—underscoring its financial resilience amid market volatility.
- Under the proposed terms, Aris shareholders may opt for 0.625 WES common units per share or $25 in cash (capped at $415 million), representing a 23 percent premium to Aris’s closing price on August 5.
Element Solutions: Shifting Gears from Consumer Tech to High-Performance Computing Supremacy!
- Element Solutions, Inc. presented a mixed set of results in their Q2 2025 financials, characterized by both significant growth in specific segments and persistent challenges in others.
- Key highlights from their conference call can be dissected into various positives and factors of concern surrounding the company’s operations and projected outlook.
- Starting with the positives, Element Solutions demonstrated robust performance in their electronics business, particularly within the assembly and wafer-level packaging products.
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