Category: Emissions Trading

  • MIL-OSI: Abaxx Announces First Carbon Futures Delivery on Abaxx Exchange

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 07, 2025 (GLOBE NEWSWIRE) — Abaxx Technologies Inc. (CBOE:ABXX)(OTCQX:ABXXF) (“Abaxx” or the “Company”), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte Ltd., the owner of Abaxx Commodity Exchange and Clearinghouse (individually, “Abaxx Exchange” and “Abaxx Clearing”), and producer of the SmarterMarkets™ Podcast, today announced the successful first delivery under a carbon futures contract on Abaxx Exchange.

    The delivery, involving 50 lots of May 2025 CORSIA¹ Phase 1 Carbon Offset Unit Futures (“CP1”) priced at USD $24.25/tCO₂e², validates the clearing, delivery, and settlement processes underpinning Abaxx Exchange’s physically-deliverable futures contracts. It marks the first live exercise of Abaxx’s end-to-end infrastructure for managing the transfer of environmental assets through a regulated futures market.

    The transaction was completed between Mercuria Energy Trading SA (METSA) and a U.S. based counterparty, with Eagle Commodities, a division of Marex, facilitating the original trade. Clearing services were provided by KGI Securities, Marex, and another bank clearing firm.

    The delivery involved the transfer of eligible CORSIA Phase 1 carbon units from Mercuria to a registry account established for the buyer, fulfilling the delivery obligations under the May 2025 CP1 futures contract.

    “This marks the first delivery through Abaxx’s carbon futures infrastructure, a contract structure designed to support price formation, risk management, and forward planning,” said Alasdair Were, Head of Environmental Markets at Abaxx Exchange. “These are the functions needed to make environmental markets investable and connect capital to climate-linked exposures.”

    “We are proud to support the execution, clearing and delivery of the May 2025 CORSIA Phase 1 Carbon Offset Unit Futures,” said Ken Ong, CEO of KGI Securities. “This transaction underscores the strength of Abaxx Exchange’s infrastructure and our commitment to sustainable finance, empowering clients in the evolving environmental asset landscape.”

    The CORSIA Phase 1 Carbon Offset Unit Futures contract, launched in June 2024, is part of Abaxx Exchange’s growing suite of physically-deliverable products across energy, environmental, battery materials, and precious metals markets.

    Abaxx’s full suite of futures contracts is open for trading 14 hours a day, Monday through Friday. For a full list of clearing firms and execution brokers, visit our market directory.

    About Abaxx Technologies

    Abaxx Technologies is building Smarter Markets: markets empowered by better tools, better benchmarks, and better technology to drive market-based solutions to the biggest challenges we face as a society, including the energy transition.

    In addition to developing and deploying financial technologies that make communication, trade, and transactions easier and more secure, Abaxx is the majority shareholder of Abaxx Singapore Pte. Ltd., the owner of Abaxx Exchange and Abaxx Clearing, and the parent company of wholly owned subsidiary Abaxx Spot Pte. Ltd., the operator of Abaxx Spot.

    Abaxx Exchange delivers the market infrastructure critical to the shift toward an electrified, low-carbon economy through centrally-cleared, physically-deliverable futures contracts in LNG, carbon, battery materials, and precious metals, meeting the commercial needs of today’s commodity markets and establishing the next generation of global benchmarks.

    Abaxx Spot modernizes physical gold trading through a digitally integrated, physically-backed gold pool in Singapore. It is set to become the first market infrastructure to align spot and futures gold markets in the same location—enabling secure electronic transactions, efficient OTC transfers, and physical delivery for Abaxx Exchange’s gold futures contracts to deliver smarter gold markets.

    For more information, visit abaxx.tech | abaxx.exchange | abaxxspot.com | basecarbon.com | smartermarkets.media

    For more information about this press release, please contact:

    Steve Fray, CFO
    Tel: +1 647-490-1590

    Media and investor inquiries:

    Abaxx Technologies Inc.
    Investor Relations Team
    Tel: +1 647-490-1590
    E-mail: ir@abaxx.tech

    ¹ Carbon Offsetting and Reduction Scheme for International Aviation
    ² Tonne of carbon dioxide equivalent

    Cautionary Statement Regarding Forward-Looking Information

    This press release includes certain “forward-looking statements” which do not consist of historical facts. Forward-looking statements include estimates and statements that describe Abaxx’s future plans, objectives, or goals, including words to the effect that Abaxx expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “seeking”, “should”, “intend”, “predict”, “potential”, “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “continue”, “plan” or the negative of these terms and similar expressions. Since forward-looking statements are based on current expectations and assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Abaxx, Abaxx does not provide any assurance that actual results will meet respective management expectations. Risks, uncertainties, assumptions, and other factors involved with forward- looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information.

    Forward-looking information related to Abaxx in this press release includes, but is not limited to: the business plans and objectives of Abaxx; the development of new products, futures contracts, markets and technologies and associated benefits. Such factors impacting forward-looking information include, among others: the inability to receive regulatory approvals in connection with financings or inability to finalize transaction documentation; risks relating to the global economic climate; dilution; Abaxx’s limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for Abaxx to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on Abaxx and the industry; acquiring and maintaining regulatory approvals for Abaxx’s products and operations; the ability to list Abaxx’s securities on stock exchanges in a timely fashion or at all; network security risks; the ability of Abaxx to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. In addition, particular factors which could impact future results of the business of Abaxx include but are not limited to: operations in foreign jurisdictions; protection of intellectual property rights; contractual risk; third-party risk; clearinghouse risk; malicious actor risks; third-party software license risk; system failure risk; risk of technological change; dependence of technical infrastructure; changes in the price of commodities; capital market conditions; restriction on labor and international travel and supply chains; and the risk factors identified in the Company’s most recent management discussion and analysis filed on SEDAR+. Abaxx has also assumed that no significant events occur outside of Abaxx’s normal course of business.

    Abaxx cautions that the foregoing list of material factors is not exhaustive. In addition, although Abaxx has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended. When relying on forward- looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Abaxx has assumed that the material factors referred to in the previous paragraphs will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking statements and information contained in this press release represents the expectations of Abaxx as of the date of this press release and, accordingly, is subject to change after such date. Abaxx undertakes no obligation to update or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements and information. Cboe Canada does not accept responsibility for the adequacy or accuracy of this press release.

    The MIL Network

  • MIL-OSI Europe: Debates – Monday, 5 May 2025 – Strasbourg – Revised edition

    Source: European Parliament

    Verbatim report of proceedings
     430k  594k
    Monday, 5 May 2025 – Strasbourg

       

    IN THE CHAIR: ROBERTA METSOLA
    President

     
    1. Resumption of the session

     

      President. – I declare resumed the session of the European Parliament adjourned on 3 April 2025.

     

    2. Opening of the sitting


       

    (The sitting opened at 17:01)

     

    3. Passing of Pope Francis – Statement by the President

     

      President. – On 26 April the world came together to mourn the passing of His Holiness Pope Francis. Together with a number of you, we represented this House at the Pope’s funeral in Rome, where hundreds of thousands gathered to commemorate his life and honour his legacy.

    Pope Francis will be remembered for his inspirational leadership, his moral authority and his kindness, taking every opportunity to speak up for a more humane, more peaceful and unified world. In 2014, His Holiness addressed this Plenary and he called for every Member to ’work to make Europe rediscover the best of itself.’

    E proprio in occasione della sua visita Papa, Francesco scrisse un messaggio, nel libro che raccoglie le firme e i pensieri delle più alte personalità che hanno visitato l’Istituzione nel corso della sua storia, e io desidero condividere con voi le parole che ha voluto dedicarci:

    “Auguro che il Parlamento europeo sia sempre più la sede dove ogni suo membro concorra a far sì che l’Europa, consapevole del suo passato, guardi con fiducia al futuro per vivere con speranza il presente.”

    Whilst this House grieves his loss, we also remember his call to action and work together every day for a better, more compassionate and more courageous Europe.

    I invite you now to join me in a moment of silence.

    (The House rose and observed a minute’s silence)

    We will now have a round of Group speakers to pay tribute to His Holiness Pope Francis.

     
       

     

      Manfred Weber, on behalf of the PPE Group. – Madam President, dear colleagues, for me personally, meeting Pope Francis and speaking with him was a lifetime honour and he remains, for me and for us as the EPP Group, a profound source of inspiration. His hope, his wisdom, his faith still speak to all of us. It was a moment of deep sadness when we learned about his passing away and we will miss him.

    Above everything, as our President already said, it was always the person, the human being he put at the centre. He never spoke about migrants, he spoke about human beings and not about a prisoner, about a human being, not about homeless people, about human beings. Christianity at its best: everybody is important, recognised by God, and also has a perspective beyond our life on earth.

    In November 2014, when he was here speaking in this European Parliament 11 years ago, he spoke about the deep Christian identity of our continent. Europe without Christian roots is simply unthinkable.

    However, Christian values never were pure Christian symbolism. He did not look at the questions of what divides us in Europe, he was always committed to what unites us. Not race, not religion, and not social status are allowed to divide us. And that was also his red line to all extremists who were misusing Christianity for their egoistic interests.

    His Christian view on a human approach of a society was also for dignified work, for a society where everybody feels involved, and an economy which also serves the people’s interests. And that’s why our model of a social market economy was deeply rooted also in his Christian thinking.

    And finally, on this Christian democratic tradition – like my party is representing it – I also want to underline that he himself, and all his predecessors in the 20th and 21st century, was committed to European integration. He was always arguing in favour of a united Europe, not as a functional entity, not as a cash machine, not as a huge market, but as a community with shared identity, united in the European way of life.

    In a letter addressed to the European People’s Party group, Pope Francis wrote to us that, and I quote, ‘To build Europe, it takes a strong inspiration, a soul. It takes dreams, it takes values and a high political vision. Ordinary management, good, normal administration is not enough.’ That is what Pope Francis told us. And this is his legacy. This is his job description for us as the European People’s Party, also as a European Parliament. He rightly saw the European way of life as a path to a bright future, and also our offer to the rest of the world. That’s why, thank you to Pope Francis.

     
       

     

      Iratxe García Pérez, en nombre del Grupo S&D. – Señora presidenta, hoy alzamos la voz en esta Cámara para rendir tributo al papa Francisco, un hombre de fe profunda y coraje inmenso que supo estar a la altura de los tiempos. Fue el papa de los pobres, de los marginados y de los que se encuentran en las periferias de la sociedad.

    Tuve el honor de encontrarme con el papa Francisco. Con su voz clara y su mirada compasiva, nos recordó que la justicia social no es solo una opción, sino una exigencia irrenunciable.

    Señorías, la mejor manera de rendir tributo al papa Francisco no es solo recordar sus palabras, sino cumplir con ellas. El 25 de noviembre de 2014, en este mismo Parlamento, nos pidió que construyéramos Europa sobre la piedra angular de la dignidad. Nos interpeló con preguntas que hoy siguen doliendo: «¿qué dignidad es posible sin un marco jurídico claro que limite el dominio de la fuerza y haga prevalecer la ley sobre la tiranía del poder?», «¿qué dignidad puede tener un hombre o una mujer cuando es objeto de todo tipo de discriminación?», «¿qué dignidad podrá encontrar una persona que no tiene qué comer o el mínimo necesario para vivir o, todavía peor, que no tiene el trabajo que le otorga dignidad?».

    También nos exigió con firmeza cuidar la tierra, al decir que Europa ha estado siempre en primera línea de un loable compromiso en favor de la ecología.

    Al hablar de migración, nos suplicó no mirar hacia otro lado: «no se puede tolerar que el mar Mediterráneo se convierta en un gran cementerio».

    Y en su último mensaje urbi et orbi, levantó la voz por una paz justa y duradera en Ucrania y en Tierra Santa. Hoy hemos conocido su último deseo, y es que el papamóvil se pueda convertir en un hospital infantil para los niños en Gaza. Gran signo y gran deseo.

    Señorías, si queremos estar a la altura del legado, hagamos nuestras sus palabras: «abandonar la idea de una Europa atemorizada y replegada sobre sí misma para suscitar y promover una Europa protagonista y transmisora de valores humanos; la Europa que camina sobre la tierra segura y firme, precioso punto de referencia para toda la humanidad».

    Esa es la Europa que el papa Francisco soñó; que sea también la Europa que entre todos sigamos construyendo.

     
       

     

      Jordan Bardella, au nom du groupe PfE. – Madame la Présidente, mes chers collègues, c’est avec gravité et recueillement que je prends la parole à mon tour pour saluer la mémoire du pape François. Parce qu’il est une figure universelle, sa disparition aura ému, au-delà des 1,4 milliard de catholiques dans le monde.

    Homme de foi, homme de dialogue et de paix, autorité morale rare dans un monde en perte de repères, le pape François le fut incontestablement. Son pontificat fut celui d’une attention constante portée aux plus fragiles et aux plus démunis. Que l’on partage ou non ses opinions politiques, ses prises de position – elles ont été nombreuses et multiples –, le respect solennel dû aux morts nous oblige.

    En ce moment solennel, je veux redire avec fierté que la France, fille aînée de l’Église, n’oublie ni ses racines chrétiennes, ni le lien millénaire qui l’unit à la foi et à l’Église catholique. Ce lien historique et précieux fonde une part inestimable de notre identité, de notre civilisation, de nos valeurs et, pour beaucoup, de notre espérance. Que le pape François repose en paix.

     
       

     

      Nicola Procaccini, on behalf of the ECR Group. – Madam President, ‘a Church that goes out’ is how Pope Francis summed up the mission of his pontificate, a Church that doesn’t remain confined within its physical spaces, but instead opens itself spiritually to the world, a Church that reaches out to people, cares for them – even physically – wherever they may be.

    I’ve shared many of Pope Francis’s messages, even those considered ‘politically incorrect’, but I would be hypocritical if I didn’t also admit some different points of view, particularly regarding the governance of migration. I think that for some here it’s quite the opposite. Yet despite our differences, Christianity represents all of us. It’s the only cultural bond that still holds us together. It’s the common root of Europe, even if the European Union denies it every day.

    In October 2020, Pope Francis wrote to us:

    ‘Europe, find yourself again! Rediscover your ideals, which have deep roots. Be yourself. Don’t be afraid of your millennia‑old history, which is more a window to the future than to the past’.

    Addio, Papa Francesco.

     
       

     

      Billy Kelleher, on behalf of the Renew Group. – Madam President, sadly, Pope Francis’s death did not come as a shock to most of us. Unfortunately, his health had been waning, and while we had all hoped for the best, it was clear that his time was coming to an end.

    His time, however, as supreme pontiff was different, to say the very least. His recommitment to the church being a ‘church of the poor’ was profound and real. And while he could not make all the changes he wanted, he has, I believe, changed the Catholic Church for the better. His pontificate will be known as one committed to decency, human dignity, social justice and the raising of those on the margins of society. On behalf of the Renew Europe group. I want to extend my deepest sympathies to the 1.4 billion Catholics across the globe who are mourning over the loss – not just of their spiritual leader, but also of a man who lived each day committed to the service of the poor, the marginalised and the vulnerable.

    In 2018, the people of Europe welcomed Pope Francis to our shores as we hosted the World Meeting of Families. Pope Francis was welcomed with open arms and with deep respect by my fellow citizens. To everyone elected in this Parliament and to parliaments across the world who claim to profess the Christian faith: I would urge you to listen to Pope Francis’s words and his teachings. There is nothing Christian about cheering when migrants drown in the seas. There is nothing Christian about making those in the margins fear for their safety just because they are different to us. Pope Francis’s death is a loss to us all. Whether we are Catholic, another kind of Christian, practice another religion or indeed are non-believers – his humanity transcended denominations. Society has lost a great leader and a great teacher with his passing. Ar dheis Dé go raibh a anam dílis.

     
       


     

      Martin Schirdewan, on behalf of The Left Group. – Madam President, Christianity and socialism might not share the closest link at first glance, but Pope Francis used his mandate to advance the Christian social doctrine that is also deeply rooted in socialist politics. The fight for social justice and against poverty – one of the cornerstones of Francis’s pontificate – remains a central responsibility for both the progressive Left and the progressive Church.

    Pope Francis has all my respect for always taking sides for the vulnerable and for defending humanity and human rights for all, regardless of origin, status, colour or belief. And, in an increasingly hostile world, Pope Francis’s voice has constantly been one of peace. Relentlessly, he called for an end of the wars in Ukraine and in Gaza. Every single day, he cared for the Palestinian civilians whose unjust suffering he felt painfully.

    Let us make his prayers for justice and peace a reality. Let’s the end politics of injustice and division. And I wish his successor all possible success in transforming the Catholic Church into a Church for the 21st century.

    I’d like to conclude, in a rather secular way – I’m sure he would have understood – farewell, Francis.

     
       

     

      René Aust, im Namen der ESN-Fraktion. – Frau Präsidentin, sehr geehrte Damen und Herren! Im Jahre 2013 suchten die Herren Kardinäle einen neuen Papst, und sie fanden ihn, wie er selbst sagte, am anderen Ende der Welt. Sie fanden einen streitbaren Hirten, einen Papst, der seine Kirche reformieren wollte und der wusste, dass echte Erneuerung im Herzen der Menschen beginnt. Über bestimmte Aspekte wie seinen Ansatz zum Synodalen Weg wird noch lange diskutiert werden. Doch dies ist nicht der Moment für Bewertungen – heute halten wir fest: Die Welt hat einen guten Menschen verloren – einen, der als Bischof von Rom diente, der nicht thronte, sondern tröstete.

    Sein Pontifikat war geprägt von seinen Erfahrungen als Seelsorger, von Bescheidenheit und dem Blick auf die Ärmsten. Möge Papst Franziskus in Frieden ruhen. Auch deshalb habe ich in der vergangenen Woche in der wunderschönen Kirche in Paris in Saint-Sulpice für ihn eine Kerze angezündet. Und mögen die Kardinäle im bevorstehenden Konklave eine weise Wahl treffen. Ich wünsche ihnen dabei Gottes Segen.

     

    4. Approval of the minutes of the previous sitting

     

      President. – The minutes and the texts adopted of the sitting of 3 April are available. Are there any comments?

    I see that is not the case. Therefore they are approved.

     

    5. Announcement by the President (Rule 138(2))


     

      Ilhan Kyuchyuk (Renew). – Madam President, dear colleagues, on 19 March this year, the Commission put forward the SAFE regulation proposal and based it on Article 122 of the Treaty on the Functioning of the European Union, JURI considered the use of Article 122 of TFEU as the basis of the SAFE regulation proposal under Rule 138(2) of the Rules of Procedure.

    On 23 April, the committee unanimously decided that Article 122 was not the appropriate legal basis for the proposed regulation. JURI came to this conclusion after having considered the aim of the SAFE proposal and in the absence of proper justification by the Commission of the choice of the legal basis. JURI also observed that Article 122 contains two paragraphs, and each of those confers on the Council a distinct competence to adopt legal acts subject to specific conditions. However, the SAFE proposal is based on Article 122, and it entirely hangs on both paragraphs. The Commission fails to explain why both paragraphs should be relied upon as the legal basis. There is also no justification why other possible legal bases under the TFEU were discarded, in particular in the context of Article 122(1), which can only apply ‘without prejudice to any other procedures provided for in the treaties’.

    At the same time, although JURI discussed and analysed alternative legal bases which appear appropriate, such as Article 173(3) of the TFEU, it decided at this stage not to pronounce itself conclusively. It is enough to say at this point that JURI does consider that another legal basis under the treaties could be used, and therefore that the Union’s competence to act under a legal basis other than in Article 122 TFEU does exist.

     
       

     

      President. – Thank you very much, Mr Kyuchyuk. So I will write, in accordance with your argumentation, to the presidents of the Council and Commission to inform them of the procedure.

     

    6. Announcement by the President

     

      President. – This Wednesday at 10:30, there will be a wreath-laying ceremony on the Parvis Louise Weiss to commemorate the 80th anniversary of the end of the Second World War in Europe. Then, at 11:30, there will be a further ceremony in this Chamber to mark this solemn occasion with a number of veterans.

    I invite you attend both of these events, and I truly count on your presence.

     

    7. Composition of Parliament

     

      President. – The competent authorities of Germany have notified me of the election of Volker Schnurrbusch to the European Parliament replacing Maximilian Krah with effect from 4 April 2025. I wish to welcome our new colleague and recall that he takes his seat in Parliament and on its bodies in full enjoyment of his rights pending the verification of his credentials.

     

    8. Request for waiver of immunity

     

      President. – I have received a request from the competent authorities in Hungary for the parliamentary immunity of Péter Magyar to be waived. The request is referred to the Committee on Legal Affairs.

     

    9. Request for the waiver of parliamentary immunity – closure of procedure

     

      President. – I have received a letter from the competent authorities in Belgium withdrawing the request for the waiver of the parliamentary immunity of Jaak Madison. The procedure is therefore closed.

     

    10. Composition of political groups

     

      President. – Malika Sorel is no longer a member of the PfE Group and sits with the non‑attached Members as of 19 April 2025.

     

    11. Composition of committees and delegations

     

      President. – The EPP and PfE groups have notified me of decisions relating to changes to appointments within committees and delegations. The decisions will be set out in the minutes of today’s sitting and take effect on the date of this announcement.

     

    12. Negotiations ahead of Parliament’s first reading (Rule 72)

     

      President. – The LIBE, PECH and – jointly – the SEDE and ITRE committees have decided to enter into interinstitutional negotiations pursuant to Rule 72(1) of the Rules of Procedure. The reports, which constitute the mandates for the negotiations, are available on the plenary webpage and their titles will be published in the minutes of the sitting.

    Pursuant to Rule 72(2), Members or political groups reaching at least the medium threshold may request in writing by tomorrow, Tuesday 6 May at midnight, that the decisions be put to the vote. If no request for a vote in Parliament is made before the expiry of that deadline, the committees may start the negotiations.

     

    13. Negotiations ahead of Council’s first reading (Rule 73)

     

      President. – The ENVI Committee has decided to enter into interinstitutional negotiations ahead of the Council’s first reading, pursuant to Rule 73 of the Rules of Procedure. The position adopted by Parliament at first reading, which constitutes the mandate for those negotiations, is available on the plenary webpage, and its title will be published in the minutes of the sitting.

     

    14. Proposals for Union acts

     

      President. – I would like to announce that, pursuant to Rule 47(2) of the Rules of Procedure, I have declared admissible a proposal for a Union act repealing Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC. This proposal is referred to the Committee on the Environment, Climate and Food Safety, as the committee responsible, and to the Committee on Industry, Research and Energy, for an opinion.

     

    15. Signature of acts adopted in accordance with the ordinary legislative procedure (Rule 81)

     

      President. – I would like to inform you that, since the adjournment of Parliament’s session on 3 April, I have signed, together with the President of the Council, three acts adopted under the ordinary legislative procedure in accordance with Rule 81 of Parliament’s Rules of Procedure.

    I would also like to inform you that on Wednesday, I shall sign, together with the President of the Council, another three acts adopted under the ordinary legislative procedure.

    The titles of the acts will be published in the minutes of this sitting.

     

    16. Order of business

     

      President. – I would like to inform you that I have received the following requests for urgent procedure pursuant to Rule 170(6):

    – from the ECR Group, and jointly from the EPP, S&D and Renew groups, on the following legislative file: CO2 emission performance standards for new passenger cars and new light commercial vehicles for 2025 to 2027;

    – from the ENVI Committee on the following legislative file: The protection status of the wolf (Canis lupus);

    – from the ECON Committee: amendments to the Capital Requirements Regulation as regards securities financing transactions under the net stable funding ratio.

    The vote on these requests will be taken tomorrow.

    Now I would like to inform the House that I have received requests for points of order. I will start by giving the floor to Bas Eickhout.

     
       


     

      Katrin Langensiepen (Verts/ALE). – Frau Präsidentin, liebe Kolleginnen und Kollegen! Heute ist der Europäische Protesttag zur Gleichstellung von Menschen mit Behinderung, und hier reden wir über 100 Millionen Menschen mit Behinderungen in der Europäischen Union. Da habe ich eine schlechte und eine gute Nachricht: Alle Mitgliedstaaten haben bei der Umsetzung der UN-Behindertenrechtskonvention komplett versagt. Noch immer haben Menschen mit Behinderungen keinen gleichberechtigten Zugang zum Wahllokal, zum Recht auf Wahl, zu selbstbestimmtem Leben, gleichberechtigter Teilhabe, wenn es um Bildung, Arbeit und Entlohnung geht.

    Das habe nicht ich mir ausgedacht, das hat sich die UNO ausgedacht, und die UNO hat es festgehalten und hat die EU dafür massiv gerügt. Wir sind immer noch nicht gut, wenn es um die Umsetzung der UN-Behindertenrechtskonvention geht. Aber ich habe auch eine gute Nachricht: Wir können es besser machen. Heute ist der Europäische Protesttag von 100 Millionen Menschen mit Behinderungen – Frauen, Kindern, Geflüchteten, Menschen, die queere Personen sind, die intersektional betroffen sind. Da ist es ein Menschenrecht – ich weiß, Menschenrechte sind gerade nicht der heiße Scheiß in diesem Haus –, aber wir müssen uns endlich um die Menschenrechte kümmern, wenn wir Wettbewerbsfähigkeit halten wollen und gleichberechtigt teilhaben wollen.

     
       




     

      Hilde Vautmans (Renew). – Madam President, colleagues, I would like to make this point of order, because 25 April marked the ninth anniversary since Swedish-Iranian academic Ahmad Reza Djalali was arrested in Iran.

    In October 2017, he was sentenced to death after a grossly unfair trial. He is currently, colleagues, the longest standing EU citizen held hostage by the Iranian authorities, and as a consequence of years in prison, malnutrition, not being given the medical care he needed and torture, his situation is really serious. He said in a video: ‘I am at my breaking point’.

    So, colleagues, on this heartbreaking anniversary, I call on you, Madam President, and all my colleagues to take action and repeat our call: we ask for the immediate and unconditional release of Professor Djalali, just like we voted for here in this House.

     
       


     

      Özlem Demirel, im Namen der Fraktion The Left. – Frau Präsidentin! Am 2. Mai wurde das Schiff der NGO Freedom Flotilla in internationalen Gewässern in der Nähe Maltas von zwei Kriegsdrohnen mehrfach angegriffen. An Bord des Schiffes befanden sich 30 Aktivistinnen und Aktivisten und humanitäre Helfer. Mit ihnen dabei Lebensmittel, Medikamente, Hilfsgüter für das von Israels Krieg gebeutelte Volk in Gaza. Der Angriff löste ein Feuer an Bord aus. Die Besatzung sendete einen Notruf. Doch der nahe gelegene Inselstaat Malta ignorierte dies zunächst einmal und reagierte nicht sofort.

    Kolleginnen und Kollegen, was hier passiert ist, ist ein äußerst schwerwiegender, inakzeptabler Vorfall! Sowohl der militärische Angriff auf ein ziviles Schiff als auch die Missachtung des internationalen Rechts ist inakzeptabel. Deshalb beantragen wir eine Debatte dazu, und wir fordern auch die Kommission zu einer Stellungnahme zu diesem Vorgang auf. Kolleginnen und Kollegen, zu Beginn der Debatte haben Sie den Papst Franziskus gewürdigt. Wenn Sie gleich abstimmen, denken Sie bitte daran, wie der Papst jetzt abstimmen würde.

     
       

     

      President. – I will give the floor to any colleague who would like to speak against. I see no one does, so we will vote by roll call.

    (Parliament rejected the request)

    So the agenda is unchanged.

    Also for Wednesday, the Greens Group has requested that a Commission statement on ‘EU response to the Israeli Government’s plan to seize the Gaza strip and promote the so-called “voluntary departure” of Gazans’ be added in the afternoon before the debates under Rule 150. As a consequence, the sitting would be extended until 23:00.

    I give the floor to Mounir Satouri to move the request on behalf of the Greens Group.

     
       

     

      Mounir Satouri, au nom du groupe Verts/ALE. – Madame la Présidente, cette nuit, le cabinet de sécurité israélien a approuvé un plan offensif. Il vise à s’emparer de toute la bande de Gaza et à s’y installer indéfiniment. Ce plan vise aussi à organiser des départs soi-disant volontaires de la population de Gaza. Ce sont en réalité des déplacements forcés de population.

    Sur le plan politique, nous avons, c’est vrai, des divergences. Mais nous sommes une majorité, ici, à être attachés à la solution à deux États. Cette décision du gouvernement israélien remet en cause de manière définitive la perspective de cette solution à deux États. L’accaparement du territoire est inacceptable. Cela viole toutes les règles du droit international. Notre Parlement ne peut rester muet.

    Je demande un débat sans résolution qui porte le titre «Déclaration de la haute représentante/vice-présidente sur la réponse de l’UE au projet du gouvernement israélien de s’emparer de la bande de Gaza et de promouvoir le soi-disant départ volontaire des Gazaouis».

    Chers collègues, avec cette proposition, ce Parlement a pour une fois la capacité d’être dans le bon timing et d’être au rendez-vous pour rappeler son attachement au droit international.

     
       












     

      Iratxe García Pérez (S&D). – Madam President, only one question: I would like to ask, please, the services to give the group leaders and the groups all the information, very clearly, about this from the beginning, because if we have information that, for example, this debate will be for the May II plenary, and we decide as a group to support it in May II, it’s so difficult now to take a decision about this time. Only to clarify, we as the S&D Group wanted this debate for May II.

     
       


     

      Γεάδης Γεάδη, εξ ονόματος της ομάδας ECR. – Κυρία Πρόεδρε, με βάση το Πρωτόκολλο 10 της Συνθήκης Προσχώρησης της Κυπριακής Δημοκρατίας, αυτή εντάχθηκε εδαφικά στην ολότητά της στην Ευρωπαϊκή Ένωση, με αναστολή της εφαρμογής του κεκτημένου στις περιοχές όπου δεν ασκεί αποτελεσματικό έλεγχο, συνεπεία της τουρκικής εισβολής και συνεχιζόμενης παράνομης κατοχής.

    Δυστυχώς, το περασμένο Σάββατο αφίχθηκε στην παράνομη αποσχιστική οντότητα στην Κύπρο —στο ψευδοκράτος, ο Tayyip Erdoğan, στέλνοντας μήνυμα εδραίωσης της κατοχής, βάζοντας —όπως δήλωσε— «μία ακόμη σφραγίδα της Τουρκίας στο νησί».

    Η στάση του Τούρκου προέδρου όχι μόνο δεν δείχνει τον απαιτούμενο σεβασμό απέναντι στις αρχές και τις αξίες που πρεσβεύει η Ευρωπαϊκή Ένωση, αλλά δείχνει και απαξίωση σε ολόκληρη την ευρωπαϊκή οικογένεια, αφού αποτελεί ξεκάθαρη πρόκληση, παραβίαση του διεθνούς δικαίου και της διεθνούς νομιμότητας. Το Ευρωπαϊκό Κοινοβούλιο επιβάλλεται να αντιδράσει, καταδικάζοντας με τον πιο έντονο τρόπο.

    Ως εκ τούτου, παρακαλώ όπως γίνει αποδεκτό το αίτημα για εγγραφή του θέματος με τίτλο «Η παράνομη επίσκεψη του προέδρου Erdoğan στις κατεχόμενες περιοχές της Κύπρου και οι κλιμακούμενες απειλές ενάντια στην Κυπριακή Δημοκρατία».

     
       





     

      President. – OK, so let me get this clear. We’re going to vote on the debate with the title as amended by the S&D Group which was accepted by the ECR Group. What is not clear to me is whether the S&D would want the debate on Wednesday or on Thursday. You say Wednesday? OK, Wednesday. Fine. We’ll do it on Wednesday. We just add to our debates on Wednesday.

    So we vote first by roll call on adding the statements.

    (Parliament approved the request)

    Now we vote by roll call on whether we will have a resolution.

    (Parliament rejected the request)

    We will see with Mr Mavrides what he meant and how we can do it.

    Thank you very much. The agenda is adopted. Have a good week.

     
       

       

    (The sitting was briefly suspended)

     
       

       

    PRESIDENZA: ANTONELLA SBERNA
    Vicepresidente

     

    17. Resumption of the sitting

       

    (La seduta è ripresa alle 17:52)

     

    18. Preparation of the EU-UK summit (debate)


     

      Adam Szłapka, President-in-Office of the Council. – Madam President, honourable Members, Mr Commissioner, with European security being the top priority of the Polish Presidency, we are striving to exploit the full potential of the EU’s relations with the United Kingdom.

    Last March, the Council exchanged views on the state of play. The upcoming first EU‑UK summit will provide a unique opportunity to strengthen our relationship. We are like‑minded partners, allies and good neighbours. Therefore, we are very much welcoming the EU governments’ approach, seeking to further strengthen our relations.

    We work together from sanctions against Russia to support for Ukraine through security summits and joint diplomatic efforts. The ongoing Russian aggression against Ukraine, and our joint support for Ukraine, is a strong reminder of why our unity matters more than ever.

    At the summit, we will seek to reaffirm our mutual commitment to the full, faithful and timely implementation of our agreements, including rights of our citizens. At the same time, there is still untapped potential and room for improvement in our relations. Ahead of the upcoming EU‑UK summit, the Council presidencies work closely with the Commission to identify and explore areas for deepening our cooperation.

    A whole range of areas will be discussed with our British hosts during the summit: security and defence; sanitary and phytosanitary rules for agricultural products; stronger cooperation on energy; access to waters for EU fishermen; and opportunities for young people to live, work and study across the border. Together we are working on a package in key areas that will bring tangible benefits to citizens and businesses on both sides of the Channel. Let me stress that our partnership is about more than just trade flows: it’s about people.

    Madam President, honourable Members, Commissioner, we should not forget about some challenges that remain. The situation in Northern Ireland requires careful monitoring, as does the situation of Union citizens that live in the United Kingdom.

    In the relations with the UK, we are following the principles, among which there are the indivisibility of our four freedoms, safeguarding the integrity of our single market and customs union, and protecting the autonomy of the Union’s decision‑making. These guiding principles remain relevant. We will carry them forward, united and speaking with one voice.

    At the same time, the Government of the United Kingdom reaffirmed its position of not rejoining the single market, the customs union and on the free movement of people. Within these parameters, leaders will engage pragmatically and respectfully at the summit. We are confident to achieve solid results for moving ahead with the strengthening of our relations with the United Kingdom.

    A final word on the parliamentary dimension of EU‑UK relations. To underline the importance that the Council attaches to the input of this House in this process, achieving a mutually beneficial partnership between the EU and our British partners is a shared goal of the EU institutions. Let us continue to exchange on how to make this partnership stronger.

     
       

     

      Maroš Šefčovič, Member of the Commission. – Madam President, Honourable Minister, Honourable Members of the European Parliament, I am happy to participate in today’s plenary debate on the preparation of the EU‑UK summit. As you will be aware, we have been working intensely with our UK partners to prepare for the summit on 19 May. As you well know, this will be the first such summit at leaders‑level since the UK left the EU, and it marks an important milestone in our post-Brexit relationship.

    President von der Leyen has met with UK Prime Minister Starmer on several occasions over the last few months, including most recently in London on 24 April. They have agreed that the summit offers an opportunity to strengthen EU‑UK cooperation across a number of areas, and it is clear that both sides want to deliver a positive summit. Exploratory discussions with the United Kingdom on a broad range of issues have taken place over the past weeks. This is part of an ongoing process which will further take shape at the summit and beyond.

    The EU and the UK are like‑minded partners, and in recent times we have worked closely together on shared challenges, notably in response to Russia’s invasion of Ukraine. Given that we live in an increasingly uncertain and complex geopolitical environment, it is all the more important that we continue to cooperate in this manner. For our part, we see three broad areas where there is scope to further develop the EU‑UK relationship.

    Firstly, security and resilience. This includes deeper and more structured cooperation between the EU and the UK as close partners and like‑minded allies in the face of unprecedented geopolitical challenges in our neighbourhood. This means defence and security will likely be a focus of the summit.

    Secondly, something very important to this House: people‑to‑people contacts, which includes rebuilding bridges for our young people. This reflects our long‑standing policy of putting citizens at the heart of EU‑UK relations.

    Thirdly, the protection of our planet and its resources. We aim to consolidate and advance cooperation on sanitary and phytosanitary matters, sustainable fisheries, climate and energy. We are working with our United Kingdom partners in pursuit of a balanced package that delivers tangible benefits to citizens across the EU and the United Kingdom.

    Madam President, Honourable Members, while we are committed to strengthening our relations with the United Kingdom, we continue to insist on the full, timely and faithful implementation of our existing agreements – the Withdrawal Agreement, including the Windsor Framework, and the Trade and Cooperation Agreement. These agreements are the cornerstone of our bilateral relations and form a solid foundation for our cooperation. As regards the Withdrawal Agreement, last week, I co-chaired a meeting of the Joint Committee in London with my UK counterpart, Nick Thomas-Symonds. This was an important step on the road to the summit. Together, we expressed a clear commitment to the full, timely and faithful implementation of the agreement in all its parts. We welcomed the important progress made in the areas of citizens rights as regards the true and extra cohort, and on the Windsor Framework as regards parcels and customs arrangements.

    Nevertheless, further work remains to be done on the other systemic citizens’ rights issues and on the Windsor Framework, for example on SPS. As regards the Trade and Cooperation Agreement, it remains the most ambitious free trade agreement the EU has concluded with any third country, and it responds to the UK Government’s red lines, which remain in place. But this does not mean that we cannot more fully exploit the potential of the Trade and Cooperation Agreement and look at what more it has to offer. It does not mean that we cannot further develop our cooperation in the areas I mentioned previously. On the contrary, there is much we can still do together to strengthen our relationship.

    The first EU‑UK summit will therefore be an important moment to do just that. I am looking forward to hearing your views during this debate, and of course I will be very happy to answer your questions. Thank you very much, Madam President.

     
       

     

      Nina Carberry, on behalf of the PPE Group. – Madam President, Commissioner, since arriving in Parliament, I’ve been struck by an assumption often made here that Brexit is a settled matter. In reality, its consequences continue to shape political and economic life in Ireland, the UK and across Europe. Anticipation is building ahead of the upcoming EU‑UK summit on 19 May, and in a world where economic stability, security and trade openness matter more than ever, the EU and the UK have everything to gain from resetting relations.

    Although the TCA lays a crucial foundation, the world has changed considerably since its signing four years ago. It remains a framework that can and should be built upon. A comprehensive veterinary agreement would be an immediate and impactful step forward, unlocking significant opportunities for farmers and agri‑food businesses. Progress on mutual recognition for professional qualifications would have major benefits. In the same way, bringing the UK closer to Erasmus+ would be an undeniable win for students and apprentices.

    In an era where tackling climate change requires coordinated global efforts, closer alignment on emissions trading schemes would be a logical step to prevent carbon leakage. Closer integration of electricity markets and fully harnessing the North Sea’s potential would enhance energy security, reduce consumer costs, increase resilience to external shocks and support progress towards net zero.

    Stabilising the EU‑UK relationship will bolster both peace and prosperity in Northern Ireland. As 19 May draws near, we are presented with a historic opportunity, one that should serve as a foundation for an ambitious and forward‑looking agenda. This is our moment to reshape a new chapter in EU‑UK relations.

     
       

     

      Aodhán Ó Ríordáin, on behalf of the S&D Group. – Madam President, as the world feels more fragile than ever, the upcoming UK‑EU summit cannot be a photo opportunity. It is a chance to show what kind of Europe and what kind of world we want to build. Trump’s foreign policy is rooted in egomania. As the US steps back, Europe and the UK must step forward; we must stand in solidarity with Ukraine and in defence of freedom and democracy. But our values mean nothing if we apply them selectively. In Gaza, international law is being torn apart as children are bombed and starved. Their blood drips from the hands of EU and UK leaders. We should know better.

    For decades, the UK and the EU worked as one to build a fairer, better and more peaceful Europe. Nowhere was that more true than in Northern Ireland. Brexit took the people of the North out of the EU against their will. Northern Ireland needs an enhanced voice in the EU, given its unique citizenship rights, its automatic right to re‑accede, and its obligations under EU law. The UK Government needs to seize the opportunity of a new EU relationship, not cower in the face of Farage’s fads army. Failure is not an option.

     
       

     

      Matthieu Valet, au nom du groupe PfE. – Madame la Présidente, Monsieur le Ministre, Monsieur le Commissaire, mes chers collègues, ici, nous devons être concrets, donc je vais vous parler de manière concrète du pays dont je suis élu, la France, et de ma région de France. Mes compatriotes de Calais, de Boulogne-sur-Mer et de Dunkerque n’en peuvent plus. Enfant du Nord, je ne reconnais plus ce si beau littoral du Pas-de-Calais transformé en Alcatraz pour lutter contre l’immigration irrégulière et les clandestins. N’en déplaise à l’extrême gauche, les passeurs sont des mafieux et des assassins. En 2024, 82 migrants sont morts dans la Manche pour avoir voulu rejoindre la Grande-Bretagne.

    Que dire des accords du Touquet? C’est un fiasco! La France dépense un demi-milliard d’euros par an pour protéger une frontière qui n’est pas la sienne. Policiers, CRS, gendarmes mobiles sont engagés sur le littoral: autant d’effectifs en moins pour lutter dans nos villes, dans nos campagnes, contre l’ensauvagement, contre les narcotrafiquants qui gangrènent mon pays.

    Lors du prochain sommet, l’Europe doit être courageuse aux côtés de la France, face aux Britanniques. Dites à la Grande-Bretagne: «Tu es une grande fille, tu ne dois plus délocaliser ta frontière en France et, comme une grande, tu dois gérer, comme tous les grands pays du monde, tes migrations, tes problèmes et ta frontière.» Je dis donc à ce grand pays ami: «Non, la France ne peut pas accueillir et gérer toute la misère du monde, elle a déjà fort à faire avec les siens.»

    Je compte sur la Commission et sur la Pologne pour aider notre grand pays à lutter contre ces migrations, notamment en affirmant que la Grande-Bretagne doit gérer aujourd’hui seule ces problèmes puisque la France n’y arrive plus.

     
       

     

      Kris Van Dijck, namens de ECR-Fractie. – Voorzitter, ik blijf een sterke voorstander van nauwe, pragmatische en op wederzijds respect gebaseerde betrekkingen tussen de Europese Unie en het Verenigd Koninkrijk. Mijn delegatie heeft zich in het verleden altijd consequent verzet tegen elke vorm van strafmaatregel jegens het Verenigd Koninkrijk, nadat het land de soevereine keuze maakte om de EU te verlaten. We betreuren evenwel de Brexit.

    Ik verwelkom het aangekondigde streven van de Britse regering naar een reset van de relatie met de EU. Hoewel ik het jammer vind dat het Verenigd Koninkrijk hierdoor niet naar onze interne markt of naar onze douane-unie zal terugkeren, geloof ik dat het van cruciaal belang is om onze samenwerking te versterken en enkele struikelblokken weg te werken.

    Ik pleit specifiek voor een nieuwe veiligheidsovereenkomst waarmee onze samenwerking op het gebied van defensie, cyberveiligheid en het delen van inlichtingen wordt versterkt. Ten tweede moeten we een overeenkomst sluiten om de sanitaire en fytosanitaire controles aan de grenzen efficiënter te maken. Dit zou een concrete win-winsituatie opleveren voor onze landbouwers, bedrijven en consumenten. Ten derde hoop ik dat het Verenigd Koninkrijk zich opnieuw bij het Erasmusprogramma zal aansluiten. Ten vierde moet het positieve momentum worden benut om de samenwerking op het gebied van energie, visserij en kernfusieonderzoek te versterken. Dit geldt ook voor mijn eerdere pleidooi om de JET-kernfusiereactor (Joint European Torus) te behouden. Tot slot moeten we de mobiliteit van artiesten en inwoners van beide regio’s vergemakkelijken. Het is van groot belang dat onze burgers, jongeren maar ook ouderen, weer gemakkelijk kunnen reizen.

    Laat deze top het begin zijn van een volwassen partnerschap tussen twee gelijkwaardige bondgenoten, gebaseerd op gedeelde belangen, wederzijds vertrouwen en een gezamenlijk engagement voor vrijheid en veiligheid.

     
       

     

      Sandro Gozi, au nom du groupe Renew. – Madame la Présidente, Monsieur le Ministre, Monsieur le Commissaire, cher Maroš, le sommet UE-Royaume-Uni du 19 mai doit être un tournant. Les événements à Kiev, Washington ou Gaza ont déjà changé le monde et nous voyons dans plusieurs pays surgir des acteurs extrémistes qui se pensent comme des Churchill, alors qu’ils agissent comme des nouveaux Chamberlain.

    Face à ces bouleversements et ces dangers, un nouveau partenariat stratégique euro-britannique s’impose. Mais, pour avancer, il faut avant tout une base solide, la confiance: construire la confiance, respecter pleinement les accords existants et les enrichir avec de nouvelles opportunités pour la défense et la jeunesse, l’intelligence artificielle et le climat, et, surtout, trouver des solutions concrètes sur les dossiers encore ouverts, comme la pêche et l’énergie.

    C’est ce que nous avons demandé dans la recommandation votée lors de l’Assemblée parlementaire UE-Royaume-Uni, en mars, en vue de ce sommet. Sur cette base, nous devons repenser l’architecture de sécurité en Europe et travailler ensemble sur la scène globale pour une nouvelle alliance des démocraties.

     
       

     

      Pär Holmgren, on behalf of the Verts/ALE Group. – Madam President, this upcoming EU‑UK summit of course offers an opportunity to rebuild bridges and strengthen cooperation, which is really crucial given the current turbulent times. But it’s also highly beneficial from a long‑term strategic perspective. We, as Greens, recognise the mutual benefit of knowledge‑sharing and research collaboration, and we warmly welcome the UK’s re-entry into Horizon Europe. However, we would also like to see similar developments in Erasmus+, to give young people a chance to study and work on either side of the channel. We therefore call on the Commission and the UK Government to be proactive in restoring and strengthening such programmes.

    We would also like to see a better regulatory dynamic between the EU and the UK, for example, the better alignment of biosecurity border controls and the emissions trading schemes to endorse sustainability practices and to facilitate trade.

    Last but not least, as you all know, there is a war on European soil. Geopolitical tensions are growing in many, many corners of the world, and humanity is threatened by an escalating climate crisis. We cannot be wasting time and resources conducting parallel research on both sides of the channel, and we cannot be wasting an opportunity to foster a sense of unity among the future generations of Europe. So let this summit be a starting point for a deepening relationship between the EU and the UK for the benefit of all.

     
       

     

      David McAllister (PPE). – Madam President, dear Commissioner, dear colleagues, as previous speakers have already mentioned, the upcoming EU‑UK summit marks a pivotal moment to recalibrate our partnership. Ever since the Windsor Framework, agreed in March 2023, we have seen greater political stability in our relations. The much anticipated EU Security and Defence Pact could be a real milestone. Enhanced cooperation in military mobility, joint research and development, and cyber resilience – this is all urgently needed. The EU and the UK should rise to the occasion and ensure an agreement that also fosters deeper cooperation on intelligence sharing, sanctions coordination as well as foreign information manipulation and interference.

    Yet, a mature partnership should go beyond security and defence. The Commission has put substantial proposals on the table on everything from energy to youth mobility. We should deepen cooperation in further key sectors: energy interconnectivity and offshore renewables in the North Sea, financial services through regulatory equivalence, and a pragmatic sustainable fisheries arrangement for the time after 2026. As for the Trade and Cooperation Agreement, the TCA is due for review next year. Long‑term stability in our relations is more important than ever. Commissioner Šefčovič, we look forward to discussing the outcome of this summit with you in the Foreign Affairs Committee.

     
       

     

      Γιάννης Μανιάτης (S&D). – Κυρία Πρόεδρε, η εκλογή Trump στις Ηνωμένες Πολιτείες έχει αλλάξει τις παγκόσμιες ισορροπίες. Για να μπορέσει να αντεπεξέλθει η Ευρώπη στις γεωπολιτικές προκλήσεις, όπως είναι ο πόλεμος στην Ουκρανία, η κρίση στη Μέση Ανατολή και η εξάλειψη των αμερικανικών εγγυήσεων ασφαλείας για την ήπειρό μας, πρέπει να ενισχύσει τις σχέσεις της με εταίρους με τους οποίους έχει κοινές αρχές και αξίες, όπως είναι το Ηνωμένο Βασίλειο, ο Καναδάς, η Αυστραλία, η Ιαπωνία.

    Εννέα χρόνια μετά το δημοψήφισμα για το Brexit και την καταστροφική διακυβέρνηση των Συντηρητικών, η εκλογή των Εργατικών δημιουργεί μια νέα ευκαιρία. Η επικείμενη σύνοδος Ευρωπαϊκής Ένωσης – Ηνωμένου Βασιλείου μπορεί να αποτελέσει το πρώτο βήμα για την εξεύρεση ενός θεσμικού πλαισίου που θα επιτρέψει την εμβάθυνση της συνεργασίας μας, ιδιαίτερα σε τομείς όπως είναι η ασφάλεια, η άμυνα, το εμπόριο, η κλιματική αλλαγή και η ενέργεια, όπως και οι ευκαιρίες για τους νέους μας. Σε αυτή την κατεύθυνση πρέπει να κινηθούμε.

     
       

     

      Ernő Schaller-Baross (PfE). – Elnök Asszony! A közelgő londoni EU-Egyesült Királyság csúcstalálkozó rendkívüli lehetőséget kínál számunkra, hogy kapcsolatainkat új, erősebb alapokra helyezzük. Sajnálatos módon az elmúlt időszakban nem tudtuk maradéktalanul kihasználni a rendelkezésünkre álló lehetőséget, és úgy tűnt, hogy az EU inkább büntetni próbálta a briteket döntésükért, mintsem konstruktív párbeszédet folytatott volna velük.

    Most azonban elérkezett az idő, hogy pragmatikus, hatékony alapokra helyezzük az együttműködésünket. Közösen dolgozunk ki olyan egyezményeket, amelyek valóban a jövőnket formálják. Fontos hangsúlyozni, hogy a briteken kívül az amerikai partnereinkkel is folyamatosan tárgyalnunk kell, és olyan megoldásokra van szükség, amelyek minden fél számára előnyösek és tartósak. Az együttműködés kulcsa a kölcsönös tiszteleten és közös érdekeken alapuló partnerség, amely hosszútávon biztosíthatja Európa stabilitását és sikerét. A következő hónapok döntőek lesznek abban, hogy hogyan alakítjuk közösen a jövőnket.

     
       

     

      Jadwiga Wiśniewska (ECR). – Madam President, dear colleagues, Mr Commissioner, the upcoming first EU-United Kingdom summit after Brexit is an opportunity to open a new chapter in rebuilding our relationship. The most important issue to be addressed is, above all, cooperation in the field of defence. European defence policy is not possible without the United Kingdom.

    In the face of global threats, we need a joint response to hybrid challenges, cybersecurity and the protection of our borders. Our key topics include a mobility programme for young people, trade issues, as well as the fight against illegal immigration. One of the most troubling consequences of Brexit for young people was the UK’s withdrawal from the Erasmus+ programme. I therefore welcome plans for new solutions regarding youth mobility.

    Brexit has changed the formal framework of our relationship, but it has not broken the bonds between us. We must do everything we can to make everyday life easier – we cannot allow political or bureaucratic obstacles to make it harder. We need cooperation based on trust and concrete solutions, cooperation with a response to take needs of people on both sides of the English Channel.

     
       

     

      Barry Cowen (Renew). – Madam President, colleagues, as we look ahead to the upcoming summit, I want to commend the Commission for its ongoing efforts to strengthen our relationship with the UK. Despite the challenges posed by Brexit, the UK remains a valued and like‑minded partner of the EU in the face of global challenges. In light of the recent tariff decisions by the US, it is more important than ever to deepen our engagement with our British neighbours. I urge the Commission to be ambitious in our dialogue with the UK, to work to align our trade regulations and enhance cooperation on energy, particularly on offshore wind and grid infrastructure, and, of course, to preserve the Common Travel Area.

    Above all, our united and unwavering support for Ukraine must remain a central priority. With that said, any lasting partnership must begin with the full implementation of existing agreements, including the Windsor Framework. The unique status of Northern Ireland must be protected in all future negotiations, and the peace and stability secured by the Good Friday Agreement must never, ever be taken for granted. Only through trust, cooperation and mutual respect can we secure a prosperous future for both EU and UK citizens alike.

     
       

     

      Malika Sorel (PfE). – Madame la Présidente, chers collègues, les crises actuelles le démontrent, l’histoire ne s’efface pas d’un trait de plume. Le Royaume-Uni a quitté l’Union européenne, mais il demeure européen. Washington menace de se distancer de l’Europe, aussitôt la France et le Royaume-Uni se retrouvent et prennent la tête d’un engagement pour la sécurité européenne.

    En matière de coopération, beaucoup de progrès ont été faits, mais certains domaines restent en suspens, tels que la mobilité des citoyens, en particulier des jeunes. Plutôt que l’approche purement comptable, le Royaume-Uni doit considérer la richesse humaine et culturelle que permet Erasmus. C’est le vœu de nos collègues britanniques que nous avions reçus récemment ici, dans notre Parlement.

    Pour notre compétitivité, nous devons intégrer, dans nos alliances, les universités britanniques de sciences et technologie.

    Concernant l’intelligence artificielle, les Britanniques sont pragmatiques et souhaitent avancer très vite en unissant nos efforts. Nous devons tempérer notre obsession réglementaire en la matière.

    Dernier point: l’immigration. Plusieurs pays de l’Union subissent les conséquences d’un appel d’air créé par le laxisme d’employeurs britanniques. Ce sujet doit être traité.

    Chers collègues, œuvrons à une relation confiante, équilibrée, tournée vers l’avenir.

     
       

     

      Francisco José Millán Mon (PPE). – Señora presidenta, el nuevo contexto internacional —con inclusión de la guerra de agresión rusa contra Ucrania y el cambio de la Administración en Washington— hace muy conveniente reforzar la cooperación en política exterior y de defensa con el Reino Unido. Necesitamos un marco profundo e institucionalizado de cooperación en este ámbito.

    Fue una lástima que, por negativa de los conservadores británicos, este capítulo quedase fuera del Acuerdo de Comercio y Cooperación. Yo espero que la cumbre del día 19 produzca avances sustanciales en este sentido, y también en otros temas de mutuo interés como, por ejemplo, la movilidad de los jóvenes, la energía, la mayor agilización de los intercambios comerciales y la pesca.

    Me detengo brevemente en este último punto: el llamado «periodo de ajuste» de los últimos cinco años ha supuesto un importante recorte de capturas para la flota europea. A partir de 2026 no deben producirse nuevos cambios. Necesitamos previsibilidad y estabilidad para la flota europea. Quiero recordar una vez más que, aunque es verdad que barcos europeos pescan en aguas británicas, también es cierto que el mercado europeo es el que recibe la gran mayoría de las exportaciones británicas de productos del mar.

    Termino con una pregunta: señor comisario, ¿puede decirnos algo sobre en qué situación se encuentran las larguísimas negociaciones con el Reino Unido respecto de Gibraltar?

     
       




     

      Nathalie Loiseau (Renew). – Madam President, dear British friends. The EU-UK summit gives us the historic opportunity to repair our relationship. There are thousands of good reasons to do it, whereas there was none to damage old ties in the first place.

    We share the same aspirations and face the same challenges on both sides of the channel. All leaders have expressed political will to work more and better together. Now is the time to turn words into deeds.

    A credible European defence must partner with the UK as a priority, building on the coalition of the willing for Ukraine. Let’s make it happen.

    Let’s also prioritise the young generations in our decisions. Since Brexit, London deprives itself of talented young Europeans for no reason. Let’s build a youth mobility scheme.

    Every side has to make efforts. We must be more welcoming towards British touring artists. You, dear British friends, must be more welcoming towards European fishermen. Because in both cases, it would make only winners and no losers.

    Dear British friends, it is time to get out of splendid isolation and to enjoy again a European entente cordiale.

     
       


     

      Thijs Reuten (S&D). – Madam President, colleagues, Commissioner, Council, in today’s geopolitical reality, we need to stand together with our best friends, and the EU and the UK are each other’s best friends. We have to join forces to preserve our freedom, democracy and security – these core values, which were re‑established with the UK’s strong involvement also 80 years ago. As today we celebrate Liberation Day in the Netherlands, I want to thank our British liberators for their incredible contribution in this regard.

    A united Europe is needed more than ever to face today’s challenges. Being a member of the EU or not should be insignificant in this. We cannot be driven apart. The upcoming summit is an excellent opportunity to turn the page and to reshape our future and relationship for our citizens, for Europe. This should start with a new formal security and defence partnership to protect our people, strengthen our deterrence and ensure stability in Europe. Let’s get this done together.

     
       

     

      Elisabeth Dieringer (PfE). – Frau Präsidentin, sehr geehrte Kolleginnen und Kollegen, geschätzte Bürger! Ich begrüße es ausdrücklich, dass die Vertreter der Europäischen Union sich nun anders verhalten als in der letzten Zeit, ja vielleicht – bildlich gesprochen – auch von ihrem hohen Ross herabsteigen und auch persönliche Befindlichkeiten hintanstellen. Man erkennt wohl nun, dass Großbritannien auch nach dem EU-Austritt keineswegs so geschwächt dasteht, wie man es sich vielleicht auch erhofft hat, und dass europäische Unternehmen sowie besonders junge EU‑Bürger weiterhin nach England streben. Ein Grund dafür: Vier der zehn besten Universitäten der Welt stehen im Vereinigten Königreich, keine einzige davon in der EU. Für EU‑Bürger sind die Studiengebühren dort inzwischen zwei- bis dreimal so hoch wie vor dem Brexit, und in der EU gibt es kaum gleichwertige Alternativen.

    Doch es geht nicht nur um Studienplätze. Junge Menschen aus Europa möchten im Vereinigten Königreich leben, lernen, arbeiten – und stoßen auf Visapflicht, Sponsorship‑Systeme und einen Dschungel aus Bürokratie. Die EU hat hier einen wesentlichen Teil ihrer Jugendpolitik preisgegeben. Es gilt daher nun, den Brexit als Realität anzusehen, als demokratische Realität. Unsere Antworten sollten daher nicht in der Vergangenheit sein, sondern auf die Zukunft ausgerichtet.

     
       

     

      Barry Andrews (Renew). – Madam President, Commissioner, colleagues, I made my very first speech in the hemicycle in February 2020, and I called on the Commission to treat the UK not as a rival but as a partner. Given that we had two more years of Boris Johnson to deal with, that was probably a tall order. But, I believe, together with the voices of so many Members today in this debate, that we need to go even beyond partnership and talk about a like-minded strategic ally.

    I believe the time has long passed to continue to punish the UK for Brexit, or to make an example of the UK, to discourage them. I believe that way of thinking is long over, and I believe it’s a very much a minority view among in the European Commission.

    So, we need to approach the TCA review from a position of maximum ambition, including, obviously, SPS, the emissions trading scheme and youth mobility. We need to widen the scope to include finance, given the questions raised about the role of the US.

    I believe it is in our towering mutual interest to work together to make our respective economies as strong as possible.

     
       

     

      Željana Zovko (PPE). – Madam President, dear Commissioner, dear colleagues, the summit of 19 May represents a unique opportunity to deepen our cooperation with the UK in areas such as defence, trade, foreign affairs and energy. We urgently need to enhance our partnership with the UK on security and strategic questions. However, in our dialogue with the UK, we must take into account the problems of every Member States, and notably the interest of coastal countries. We must make clear that the strengthening of our relations with the UK must lead to a win‑win outcome. Moreover, the UK Government must understand that for relations to be solid, it needs to be transparent. In this regard, we need clarification on the reasons why the UK Government is not willing to cooperate more with the European Union in the Western Balkans. Only by having in mind this transparent and mutually beneficial approach will we be able to take momentum of a reset in our relations.

     
       

     

      Ana Catarina Mendes (S&D). – Senhora Presidente, Senhor Comissário, Senhor Ministro, eu sou das otimistas que acreditam que o Reino Unido ainda voltará a fazer parte da União Europeia. É por isso que vejo com muito bons olhos a próxima parceria, e sobretudo a próxima parceria porque deve ser uma parceria estratégica e o reforço das relações entre a União Europeia e o Reino Unido.

    Se é verdade que já avançámos muito no Acordo de Parceria Económica, que tem sido absolutamente essencial para reforçar os nossos laços económicos, não é menos verdade que o Reino Unido tem dado sinais, neste momento de instabilidade, sinais muito fortes de presença na definição da política de defesa e segurança na Europa. E é absolutamente essencial que mantenhamos esta relação com o Reino Unido — ela é estratégica, ela é antiga, ela é absolutamente essencial.

    Mas, se é verdade que estamos perante as novas ameaças, e estes são dois sinais muito bons, não é menos verdade, Senhor Comissário, que aquilo que peço aqui hoje, neste plenário, é que voltemos a trazer os jovens para o programa Erasmus. Façamos da cultura uma prioridade também na nossa relação com o Reino Unido, fazendo derrubar as barreiras que ainda existem na mobilidade dos nossos artistas.

    Uma Europa de valores é uma Europa que partilha também a educação e a cultura — é isto que peço à Comissão neste momento.

     
       

     

      Michał Szczerba (PPE). – Pani Przewodnicząca! Wysoka Izbo! Wspólna odpowiedzialność za bezpieczeństwo kontynentu wyznacza kierunek naszych relacji z Wielką Brytanią. Szczyt Unii Europejskiej i Wielkiej Brytanii, zaplanowany na 19 maja, musi być impulsem do sformalizowania strategicznej współpracy w dziedzinie obronności, produkcji uzbrojenia, bezpieczeństwa energetycznego i ochrony infrastruktury krytycznej. Stawiając na nowe partnerstwa, Unia Europejska realizuje cele polskiej prezydencji. Zmieniamy Unię Europejską poprzez wprowadzenie bezpieczeństwa w główny nurt naszych prac. Kompas strategiczny to narzędzie, którym dysponuje Unia Europejska do budowy strategicznych partnerstw. I Unia dostrzega konieczność zacieśniania współpracy z krajami trzecimi. Cieszymy się z dotychczasowych partnerstw z takimi krajami jak Norwegia, Japonia, Korea Południowa, Mołdawia, Macedonia Północna i Albania, ale mówimy: chcemy więcej. Chcemy więcej współpracy, chcemy więcej sojuszy, chcemy więcej partnerstw i więcej bezpieczeństwa.

     
       


       

    Procedura “catch-the-eye”

     
       

     

      Billy Kelleher (Renew). – Madam President, thank you very much. I do really welcome the reset of EU-UK relations, and I do look forward to a positive outcome in the summit. And there’s just a few points I want to allude to, Commissioner, in terms of the important issues: one being the issue of the Erasmus programme. It has been spoken about a lot, but it really is hugely fundamental to the concept of young people being able to travel, to live, to learn, to love in other cultures. And it would be a shame if over the next number of years, we were unable to see another generation of UK citizens travelling to Europe and European citizens travelling to the UK.

    From my perspective, sharing a jurisdiction on the island of Ireland, it is critically important that we have that continual building of personal relationships, and universities and third-level institutions are a great way to do that.

    The other key areas where I believe we have to make a lot of progress – again, I look at it from the context of Ireland being offshore – offshore in terms of wind energy and the distribution of electricity from Ireland through the UK and onwards into Europe. I believe we have to have a full and open and honest debate with the UK around that particular issue to ensure the simplification of the export and import of electricity via the UK itself. Otherwise, our ability to export the large sums of wind energy that will hopefully be generated in the years ahead would be significantly challenged, because there will have to be interconnectors directly from Ireland to France otherwise.

     
       

     

      Lukas Sieper (NI). – Frau Präsidentin, liebe Menschen Europas! Ich hatte vor drei Wochen die große Freude, mit britischen Kollegen aus dem House of Commons und dem House of Lords Syrien zu besuchen. Und dort, am Ende der zivilisierten Welt, in einem Land, gebeutelt von Bürgerkrieg und Unterdrückung, da findet man zusammen mit den Menschen, die einen begleiten. Genauso kam ich zusammen mit meinen britischen Kollegen. Und ich habe gespürt: Während nicht alle von ihnen erkennen, dass der Brexit ein Fehler war, so sehnen sich doch alle von ihnen nach Europa. Und deswegen denke ich, dass dieser anstehende Gipfel eine wichtige Gelegenheit ist, die Probleme aus dem Weg zu räumen, die wir in der Vergangenheit schon hatten.

    Ein großes Thema ist der Handel, und ein kleines Thema in diesem großen Thema ist die Fischerei. Wir werden uns alle daran erinnern, dass die Fischerei und die rechtlichen Fragen hinsichtlich dieses Problems einer der Gründe waren, der der Brexit-Bewegung damals erlaubt hat, Fahrt aufzunehmen. Ich möchte daher alle Vertreter der Europäischen Union aufrufen, insbesondere bei diesem Thema eine gute Lösung mit unseren britischen Freunden zu finden.

     
       

     

      Diana Iovanovici Şoşoacă (NI). – Doamnă președintă, atunci când veți vorbi cu Marea Britanie, o să vă rog frumos să apărați și interesele românilor care muncesc în Marea Britanie. Avem foarte mulți români acolo, este una dintre cele mai importante grupări de cetățeni români pe care o avem în afara granițelor țării.

    Din păcate, este discriminată total. Nu există săptămână să nu fiu anunțată că un copil este luat din rândul familiilor române. Nu este zi să nu fiu anunțată că un copil a fost atacat și înjunghiat de către alți britanici, și unii copii au murit.

    Mă adresez ambasadei Marii Britanii la București, dar și aici, dar și pe lângă Comisia Europeană – nu vor să ne primească, nu vor să vorbească cu noi. Nu-i interesează situația românilor din Marea Britanie și vă întreb: românii care muncesc în Europa, în Marea Britanie, în Uniunea Europeană, sunt chiar de clasa a șaptea a populațiilor lumii? Chiar așa, trebuie să ne batem joc de ei, iar copilul unui român nu contează absolut deloc și nimeni nu îi apără?

    Solicit Comisiei Europene, solicit Parlamentului European să ne apere și nouă copiii românilor din Marea Britanie care sunt discriminați și omorâți ca niște animale pe străzi.

     
       

       

    (Fine della procedura “catch the eye”)

     
       

     

      Maroš Šefčovič, Member of the Commission. – Madam President, my dear colleague, Honourable Minister, Honourable Members of the European Parliament, first and foremost, thank you very much for all your contributions. I would like to start by showing my appreciation, in particular, for the interventions of Mr McAllister, Madam Loiseau, Mr Gozi and Mr Andrews, because they have been with the file on EU‑UK cooperation from the very beginning, since the first moment of Brexit. They can see the change, they can feel the difference, and they can also judge the progress which we are achieving. I totally agree with them that, on both sides, on the side of the United Kingdom and on the on the side of the EU, we see the upcoming summit as a very important turning point, as a pivotal moment. Therefore, we are putting in all our efforts and we are very much focused on delivering tangible results, because we believe that this would clearly contribute to the strengthening of EU‑UK relations.

    I absolutely agree with Mr Maniatis and Mr Reuten, who are highlighting the fact that we are now living in a different world. Indeed, the geopolitical landscape has changed dramatically and, therefore, you need to forge new partnerships, new friendships, and you have to work on the relationships you have, especially with important and close neighbours. Therefore, it’s very important for all of us for the EU and UK to work closely together and to make sure that, in all aspects of what is currently being discussed on the geopolitical level, we behave like like‑minded parties, exactly like Madam Mendes and Mr Cowen highlighted.

    If you allow me to just bring you a little bit more detail of my visit to London last week, on top of a very well prepared joint committee, where we went through the entire inventory of issues linked to the Windsor Framework, with the Withdrawal Agreement and with the citizens’ rights. I want to expressly say here how much was achieved, how much we focused on this area, how much we fight for the rights of every single EU citizen in the United Kingdom, and how much we work with our Member States to make sure that British nationals who live in the EU also have also the rights which belong to them under the Withdrawal Agreement. I want to reassure everyone that this is a top priority for us. We are really taking care of every person here because we know that we are talking about families, we are talking about children, and we are talking about the fair treatment of our citizens in the UK and British nationals in the EU.

    On top of the joint committee session, in one day I had very productive sessions with four ministers, with Minister Nick Thomas-Symonds, with Secretary of State Jonathan Reynolds, with whom we discussed trade, with Mr Hilary Benn, where we delved into the issue of Northern Ireland and our cooperation over the Northern Ireland Protocol, and with Mr David Lammy, where we managed not only to discuss geopolitics, but also our good and positive cooperation on the issues linked with Gibraltar. This is also reflecting the new wave of partnership and positive atmosphere between EU and UK.

    Coming back to the more concrete points the Honourable Members have made. Indeed, on security and defence, it’s very clear that we can do more to strengthen our cooperation in this area. The points of Madam Zovko and Mr Van Dijck are very well taken, and we are working with this clearly in our minds. I am sure that if you look at the White Paper on the future of European defence already there, we are making it very clear that the UK is an essential European ally, and we are stating that cooperation should be enhanced in our mutual interest. Therefore, I can confirm that we want to be ambitious in this area, and we see it as a core part of a renewed EU‑UK agenda.

    Many Honourable Members have been referring to the importance of the area of people‑to‑people contacts. I can assure you that not only for our Member States, which I’m sure Minister Szłapka can confirm, but also for the Commission, very clearly, this is one of the top priorities. We want, again, to build bridges. We want to give our youth the experience of talking to British peers, of having these exchange programmes. Of course, we will be very happy if we can manage to find a solution on Erasmus+ and other other areas of cooperation, as Madam Wiśniewska and Mr Holmgren have been calling for. Therefore for us, in this particular regard, it is very important not to look at each other’s citizens as mere statistics, but as future bridge‑builders, as people who would remember that experience for the rest of their lives. Of course, therefore, in this regard, we want the summit to bring tangible benefits to the people on both sides. For us, clearly, the ambition in this area is an indispensable part of the renewed EU‑UK agenda.

    Honourable Members have been referring, among other areas, to the importance of fisheries, and I would like to reassure all of you that this is clearly a priority for us, as it was raised by Mr Millán Mon and Mr Ruissen. The current arrangements for reciprocal access to waters expires in the middle of next year, so it is essential for us to reach an early agreement that protects the rights of our fishers and provides them with certainty and predictability. We have also been open to an SPS agreement with the UK, as Madam Carberry was calling for. We do that because we are convinced that this would further facilitate the flow of SPS goods between Great Britain and Northern Ireland, beyond what has already been achieved with the Windsor Framework.

    On top of this, the ideas mentioned by Mr Andrews, like linking the emissions trading system or strengthening cooperation in the field of energy, as was called for by Mr Kelleher and Mr Cowen – all these are areas we are currently looking at where I believe we can progress further. When you follow the statement of Commission President von der Leyen, she was very clear on this as well. So there is more that the EU and UK can do together to exploit our potential in this area, and we will be using every single remaining day to achieve this result.

    Mr Millán Mon was asking about Gibraltar. I will partially respond to this: I have to underline at this stage that we are progressing in a positive direction, and I really would like to thank both Foreign Minister Alvarez and Mr Lammy for their exemplary cooperation and for understanding the position of all sides, because this will help us to advance on these very complex and difficult discussions. We will be working on this at the top level. I believe that we will be successful in that result as well.

    Madam President, Honourable Members, my dear colleague, Minister Szłapka, I would like to conclude by thanking you once again, not only for the exchange we had this afternoon, but also for the very vigilant eye and constructive spirit this house has always demonstrated towards the development of EU‑UK relations. We’ve been working very closely on these issues throughout the years, and I believe that the progress which we can see right now is also thanks to your vigilance, to your support and to your to your constructive ideas. Once again, thank you very much, and I’m also looking forward to this constructive cooperation in the future. Thank you, Madam President.

     
       

     

      Adam Szłapka, President-in-Office of the Council. – Madam President, thank you very much, honourable Members, Commissioner, the European Union and the United Kingdom are more than neighbours, we are like-minded democracies that share a deep commitment to the rule of law, human rights, market economy and the international order. We are united by a set of values that underpin stability in a world that has become increasingly uncertain.

    Our relationship with the UK is about being close partners in peace, prosperity, democracy and about global leadership. We will reaffirm our commitment to this relationship at the summit in pursuit of our shared strategic interests and for the benefit of our citizens.

     
       

     

      Presidente. – Dichiaro chiusa la discussione.

     

    19. Protection of the European Union’s financial interests – combating fraud – annual report 2023 (debate)


     

      Gilles Boyer, rapporteur. – Madame la Présidente, mes chers collègues, Monsieur le Commissaire, le rapport annuel sur la protection des intérêts financiers de notre Union est bien plus qu’un exercice administratif. C’est le miroir de notre capacité collective à défendre notre budget contre les attaques dont il fait l’objet. Notre Parlement accorde une attention toute particulière aux résultats de ce rapport de la Commission, car ils mettent en lumière les failles, les risques, mais aussi les progrès qui sont réalisés dans la lutte contre la fraude. Grâce à notre architecture anti-fraude, le rapport est désormais enrichi des données du Parquet européen, d’Europol et d’autres acteurs-clés.

    Nous devons cependant aller plus loin. L’architecture actuelle doit être modernisée, consolidée et surtout rendue pleinement opérationnelle. Avec la création du Parquet européen, nous avons franchi une étape. Il est maintenant temps de renforcer les synergies entre les différentes branches de notre architecture.

    En parallèle, nous faisons face à une mutation rapide des menaces. L’intelligence artificielle est désormais utilisée par les organisations criminelles pour détourner des fonds européens. Notre riposte doit donc être aussi technologique. Nous devons mettre à jour nos outils: IMS, Arachne, EDES. Nous devons aussi investir massivement dans des outils numériques avancés et renforcer notre capacité d’analyse des risques, sinon nous aurons toujours un temps de retard sur les criminels.

    Les chiffres sont clairs: les actions menées par les entités luttant contre la fraude ont un véritable impact financier. Les recouvrements de paiements indus par l’OLAF et la restitution au budget de l’Union des fonds confisqués grâce au Parquet européen doivent devenir des priorités stratégiques. Les montants détournés doivent être récupérés rapidement; ils doivent l’être au niveau européen et être réaffectés aux politiques communes.

    Nous faisons également face à des défis structurels. Les systèmes nationaux restent trop fragmentés. Les capacités de certaines autorités anti-fraude demeurent insuffisantes. Nous devons donc poursuivre l’harmonisation de nos législations, renforcer la coopération transfrontalière et protéger celles et ceux qui ont le courage d’alerter.

    Les trois grandes menaces que nous avons identifiées cette année – le crime organisé, la corruption et les conflits d’intérêts – sapent l’intégrité de la dépense publique et détournent nos fonds communs. Ces menaces ne sont pas des fatalités, mais elles appellent une réponse ferme, coordonnée, technologique, éthique et résolument européenne.

    Je souligne aussi dans mon rapport l’importance du règlement sur la conditionnalité qui permet de faire le lien entre l’état de droit et la protection des intérêts financiers de l’Union. Il rappelle que l’accès aux fonds européens exige des garanties solides en matière d’indépendance de la justice et de prévention des conflits d’intérêts. Nous ne pouvons pas tolérer que des fonds européens financent des systèmes qui sapent l’état de droit.

    Monsieur le Commissaire, chers collègues, nous avons la volonté. Il faut désormais nous donner pleinement les moyens de passer à l’action. Je compte sur vous pour que le prochain cadre financier pluriannuel prenne pleinement en compte nos priorités communes de lutte contre la fraude et contre le crime organisé, ainsi que l’application rigoureuse du principe de conditionnalité. Le budget européen ne peut rester vulnérable face à des réseaux criminels et à la complaisance de certains États ou à la technicité de la fraude moderne.

     
       

     

      Piotr Serafin, Member of the Commission. – Madam President, honourable Members, first of all, I would like to thank the rapporteur, Mr Boyer, and the members of the Committee on Budgetary Control for their report, which is balanced, forward-looking and that we not only appreciate, but we share most of the observations that have already been made.

    The European Parliament has always supported and, I would say even more, inspired the European Commission to make the anti-fraud architecture more effective and up to the task – for that, I would like to thank you also today. Because of the time constraints, I will concentrate only on a few most prominent aspects of the report that have been already mentioned by the rapporteur.

    First, the review of the anti-fraud architecture – this is one of the tasks for this Commission. As the rapporteur has mentioned we have new actors already in place, we might have even more, and it will be absolutely necessary to look and see for the synergies and to facilitate cooperation between the actors. So, from our perspective, to achieve efficient and effective cooperation among all anti-fraud actors will be the priority of the review of the anti-fraud architecture. That is also the precondition for effective and swift recovery of EU funds.

    We have already started this process in the Commission. We had consultations with the main actors, including EPPO, OLAF, European Court of Auditors, Eurojust and Europol with a view to drawing up an action plan. I stand ready to inform the European Parliament about the progress and I will also count on the support of this House for the future implementation.

    I can only echo what was said by the rapporteur on the conditionality regulation – this is clearly progress and very welcome developments, and the one that, looking ahead in view of the next Multiannual Financial Framework, we will keep in place. We would also like to build on the experience to ensure that the EU budget can be used to promote reforms that strengthen the rule of law in Member States. Therefore, there should not be any doubt – respect for the rule of law is a must for EU funds and even more in the future MFF.

    Thirdly, the digitalisation and integration of data. The rapporteur has already referred to a few systems that we have in place – I will talk about them later. But what I want to say is that we are fully aware that digitalisation, interoperability of databases and integration of AI tools for fraud detection and prevention are already present in the revised action plan that accompanies the Commission anti-fraud strategy. We are progressing on its implementation, despite the challenges, and we will report about these developments in the next PIF report.

    However, at the heart of any significant development in this direction lies the issue of data quality, without which any technical solution will remain fruitless. We are significantly investing in this by providing detailed guidance to national authorities and engaging in structured dialogue with those that need additional assistance.

    Fourthly, refining our tools – IMS, which has been mentioned several times in your report, received an important upgrade at the end of last year to make it technologically ready for other significant developments that will follow. When it comes to Arachne – the tool already supports control and audit and helps protect the Union’s financial interests, and we will continue to strengthen it in line with financial regulation. A Member States expert group, in which the European Parliament sits as an observer, formalises the cooperation towards the development of the future system. We will also be happy to continue to update you on the progress in this project.

    When it comes to the early detection and exclusion system, it is currently applicable in direct and indirect management modes as of 2028. Its scope will be extended to short management and direct management with Member States and that is something for which the European Parliament can also take credit.

    Let me also mention whistleblower protection that is supporting the prevention and detection of fraud. To strengthen the culture of ethics and maintain a high level of awareness about fraud, corruption or other serious wrongdoing, the Commission will provide updated guidance to its staff on whistleblowing procedures and protection, in light of the EU standards of protection in this area.

    And finally, our attention is already set on the future and on the design of the next Multiannual Financial Framework, drawing from good practices and lessons learned during the current MFF. We will need to make sure, in particular, that the legal provisions underlying the future MFF ensure transparency of fund recipients and meaningful and mandatory reporting of quality data about detected irregularities and fraud, and a strong anti-fraud architecture to ensure adequate protection of the EU budget. When the moment of the negotiations of the legislative package for the future MFF comes, the Commission will count once more on your support to ensure that the resulting legal framework will be up to the challenges we are confronted with. I thank you again for your attention and look forward to the constructive debate.

     
       

       

    PREȘEDINȚIA: NICOLAE ŞTEFĂNUȚĂ
    Vicepreședinte

     
       

     

      Caterina Chinnici, a nome del gruppo PPE. – Signor Presidente, Signor Commissario, onorevoli colleghi, io voglio innanzitutto ringraziare il relatore, l’onorevole Boyer, e gli altri relatori ombra per il lavoro che insieme abbiamo svolto su questa importante relazione. Importante perché tutelare gli interessi finanziari dell’Unione e contrastare le frodi significa non solo proteggere il bilancio ma anche la stessa sicurezza interna dell’Unione.

    Infatti, come la Procura europea ed Europol costantemente ci segnalano e come ricorda anche la relazione, dietro le frodi e gli altri reati che ledono gli interessi finanziari dell’Unione ci sono sempre più spesso – direi ormai sistematicamente – le organizzazioni criminali, le stesse responsabili anche dei crimini più violenti.

    E allora, a fronte dell’aumento dei casi di frode e irregolarità nel quinquennio 2019-2023, occorre rafforzare la cooperazione e lo scambio di informazioni a tutti i livelli, intensificare digitalizzazione e trasparenza, consolidare i sistemi di gestione e controllo, in particolare nell’ambito dell’RRF, dove, secondo la Corte dei conti europea, permangono carenze preoccupanti.

    Ma soprattutto, e più in generale, dobbiamo rafforzare l’architettura antifrode dell’Unione, migliorando il coordinamento tra le componenti, sia a livello orizzontale degli organismi dell’Unione, sia a livello verticale di rapporti UE-autorità nazionali degli Stati membri, che devono adottare un approccio sempre più proattivo in tale settore.

    Ed è necessario, sempre in quest’ottica, procedere alla revisione dei mandati dei due attori chiave nella lotta alla criminalità economico-finanziaria: EPPO ad Europol, già prevista negli ordinamenti della Commissione, e questo non solo per rafforzarne ulteriormente il ruolo, ma anche per rendere la cooperazione fra di loro ancora più strutturale e sistematica.

    Prevenzione, individuazione, indagini e repressione delle frodi non solo per un ritorno in termini economici ma per tutelare opportunità, diritti e sicurezza dei cittadini europei.

     
       

     

      Eero Heinäluoma, on behalf of the S&D Group. – Mr President, Commissioner, colleagues, I also would like to thank our rapporteur and the shadows for excellent cooperation in preparing this report.

    Combating fraud is about protecting the EU budget. Equally much, it is about protecting European citizens and businesses.

    Through European cooperation, we have managed to combat trade in faulty protection equipment during the pandemic, prevented unsafe toys from reaching our children and hindered dangerous food products from ending up on our plates.

    Together, we are able to better ensure that EU financial support benefits businesses that live up to our common rules and objectives, instead of those undermining European policies of fair competition on the single market.

    To be successful, however, we need all of our society to participate. A zero-tolerance culture against fraud begins with public authorities, including national governments, leading by example and condemning fraud and corruption wherever they occur.

    We need an open democratic society with media and civil society free from political pressure or attempts to restrict their participation in public dialogue.

    Here, the Commission has a key responsibility in ensuring that our safeguards are robust enough to meet a growing volume of EU funds and an ever more challenging fraud landscape, as our rapporteur told us. Reality shows the need for strengthened safeguards for protecting the EU budget against misuse, be it fraud or violations of the rule of law, not least in view of the upcoming MFF.

    Ultimately, we need to ensure that every euro is spent to the benefit of European citizens and businesses.

     
       

     

      Virginie Joron, au nom du groupe PfE. – Monsieur le Président, chers collègues, Monsieur le Commissaire, ce rapport sur la protection des intérêts financiers de l’Union est trop clément. En effet, à l’exception du lobbying des ONG vertes financées par Bruxelles, la plupart des scandales majeurs ne figurent ni dans le rapport ni dans les statistiques présentées.

    Comment excuser l’inaction du Parquet européen dans l’affaire Pfizer-Von der Leyen? Aucune enquête n’a été menée sur d’éventuels conflits d’intérêts et sur les erreurs systématiques dans la négociation des contrats, sur les 71 milliards d’euros gaspillés en vaccins contre la COVID, sur les doses annulées de Pfizer à 10 € la dose, sur l’achat de plus de 1 milliard d’euros pour le Remdesivir du laboratoire Gilead – traitement pourtant jugé inefficace contre la COVID –, ou encore sur l’emprunt géant post-COVID à taux variable.

    Il y a de grandes spoliations et il y a des décisions inexcusables de la Commission qui ne figurent dans aucun rapport. Comment autoriser le pantouflage de Thierry Breton à la Bank of America? Ou confier à BlackRock le soin d’imaginer notre futur bancaire? Laisser sans conséquences majeures le directeur général de la DG MOVE voyager aux frais du Qatar? Confier le recrutement des fonctionnaires européens à une entreprise américaine? Ou encore le blanchiment présumé de 1 million d’euros par le commissaire à la justice via des tickets de loto achetés dans une station-service? De quelle crédibilité la Commission peut-elle se targuer quand elle ne respecte pas ses propres principes?

    Cette Commission «VDL II» veut aujourd’hui contrôler les urnes, car les citoyens refusent cette mauvaise gestion. C’est ça, la solution?

     
       


     

      Lucia Yar, za skupinu Renew. – Vážený pán predsedajúci, pán eurokomisár, kolegovia, kolegyne, dnes presne dnes, keď tu diskutujeme o ochrane európskych peňazí, sa v krajine, z ktorej pochádzam, na Slovensku, vo veľkom diskutuje o okrádaní bežných ľudí na úkor oligarchov. Tí si z eurofondov, dámy a páni, stavajú na Slovensku haciendy. Eurofondy na podporu vidieka a turizmu opakovane končia v rukách vyvolených s prepojením na premiéra Fica a jeho vládnu moc. Už pred rokmi na tieto schémy s dotáciami upozorňoval zavraždený novinár Ján Kuciak. Od jeho smrti ubehlo sedem rokov, no podvodné praktiky pretrvávajú. Presne tieto prípady ukazujú, prečo je potrebné, aby sme na úrovni Európskej únie dôsledne chránili naše financie. A presne k tomu nabáda aj táto správa. Je dôležité, a to nielen pre krajiny, ktoré najviac prispievajú do európskeho rozpočtu, ale je to dôležité aj pre obyvateľov krajín ako Slovensko, ktorí vedia vďaka eurofondom dobiehať západ a vďaka tomu aj dobiehajú. My tu v europarlamente musíme urobiť všetko pre to, aby európske peniaze slúžili tam, kde sú potrebné, a najviac ľuďom v najmenej rozvinutých regiónoch.

     
       

     

      Daniel Freund, on behalf of the Verts/ALE Group. – Mr President, 228 bottles of champagne, turning a former royal palace into a private golf club, yachts, private jets, Ferraris, vacations in the Maldives – dear colleagues, these are all things that have been purchased by the French Rassemblement National and by the Hungarian Fidesz with money that they stole from the European Union. EU funds that were meant to improve the lives of ordinary Europeans have instead been misused for the luxury lives of a few individuals from the extreme right.

    The Rassemblement National and Fidesz – it’s a match made in extremist heaven, and together they form the most corrupt group in this European Parliament: PfE. And while they’re giving their hate and lie-filled speeches – and we just heard it here a couple of seconds ago – blaming people’s problems on Soros, on Eurocrats, on trans people, on NGOs, on refugees, whatever is the matter of the day, they just can’t hide the fact that Viktor Orbán and Marine Le Pen are ultimately the biggest risk to EU taxpayers’ money.

    And while Marine Le Pen, who has defrauded this Parliament of EUR 4.6 million, has been rightfully convicted and is not allowed to run for election for five years, Viktor Orbán remains yet unpunished. But it is time that he gets punished for the EUR 14 billion that he and his cronies have stolen from EU taxpayers.

    Commissioner, we need to do something about this. We cannot keep sending billions of euros to what is the biggest financial risk in this Union. It’s the corrupt system of Viktor Orbán. So, the best thing we can actually do to protect the EU’s financial interests from fraud, from embezzlement, from corruption, is that we stop paying the corrupt autocrat in Budapest.

     
       

     

      Rudi Kennes, namens de The Left-Fractie. – Voorzitter, het vertrouwen in de Europese Unie heeft een dieptepunt bereikt. Het is onze verantwoordelijkheid ervoor te zorgen dat overheidsgeld niet wordt verspild of verduisterd. Het verslag benadrukt hoe veel er nog moet gebeuren om de capaciteit van de fraudebestrijdingsarchitectuur te versterken. De opsporing en de melding van fraude blijven ontoereikend, hoewel er aanzienlijke aantallen onregelmatigheden zijn gemeld.

    We moeten de rol van ngo’s en journalisten erkennen bij het blootleggen van misbruik van EU-middelen; we moeten respect opbrengen voor hun werk en hun moed.

    Digitalisering is van cruciaal belang om de besteding van overheidsgeld te kunnen volgen; de systemen en het personeel voor grensoverschrijdende onderzoeken moeten toereikend zijn. Wanneer criminelen zich geld toe‑eigenen, moet dat geld snel worden teruggevonden.

    Een belangrijk deel van het verslag houdt ook verband met sancties. Persoonlijk vind ik het verkeerd om hele bevolkingsgroepen sancties op te leggen. Ten eerste werken sancties niet. Ten tweede zijn sancties enkel nadelig voor de gewone mensen.

    Tot slot stel ik met teleurstelling de gebruikelijke dubbele standaarden vast bij het aan de kaak stellen van corruptie, crimineel gedrag en schendingen van de mensenrechten. Ik zou willen dat de Europese Unie zich met evenveel toewijding voor de rechtsstaat in het Midden-Oosten inzet als ze dat voor Oekraïne doet.

     
       

     

      Arno Bausemer, im Namen der ESN-Fraktion. – Herr Präsident, meine sehr verehrten Damen und Herren! Der vorliegende Bericht konstatiert für das Kalenderjahr 2023 einen historischen Höchststand der Korruptions- und Betrugsfälle in der Europäischen Union: 13 563 Fälle von Betrug und Unregelmäßigkeiten wurden von den Behörden der EU und der Mitgliedstaaten gemeldet. Die betroffenen Mittel belaufen sich auf 1,9 Milliarden EUR.

    Nun sind wir als Abgeordnete dieses Hauses hier verantwortlich für den Umgang mit den Mitteln der Steuerzahler – für den verantwortungsbewussten Umgang. Aber wie soll dieses Ziel erreicht werden, wenn wir mit Ursula von der Leyen eine Kommissionspräsidentin haben, deren Handeln sehr viele Fragen aufwirft? Die Ermittlungen der EU-Staatsanwaltschaft zur Beschaffung von zig Millionen Corona-Impfdosen sind offensichtlich mittlerweile eingeschlafen, denn davon hat man seit dem Sommer letzten Jahres nicht mehr viel gehört. Trotz Aufforderung der EU-Ombudsfrau hat Frau von der Leyen bis heute ihre damaligen Chatverläufe mit dem CEO von Pfizer nicht öffentlich gemacht.

    Schaffen Sie, Frau von der Leyen, bitte endlich die notwendige Transparenz, denn Sie stehen nicht über dem Recht und können hier machen, was Sie wollen. Denn Ihnen fehlt im Gegensatz zu uns allen – uns 720 Abgeordneten – nicht nur die demokratische Legitimation, sondern offensichtlich auch jeglicher Anstand. Werte Frau von der Leyen – Sie sind ja nicht da, vielleicht kommen Sie irgendwann mal wieder –, denken Sie daran, dass die Opposition von heute die Regierung von morgen ist. Denken Sie daran, dass man eine Opposition vielleicht kurzfristig behindern kann, aber dass man einen demokratischen Wandel und den damit verbundenen Willen der Bevölkerung niemals aufhalten kann. Und denken Sie daran, dass in der Geschichte schon der eine oder andere Machthaber in seinem Elfenbeinturm eingeschlafen und im Gefängnis wieder aufgewacht ist.

     
       


     

      José Cepeda (S&D). – Señor presidente, señor comisario Serafin, muchas gracias por este trabajo. Es un trabajo importante que, de verdad, nos tomamos —como muy bien decía mi colega del PPE— muy en serio, porque hay algo que nos preocupa de una forma muy especial, y es el incremento del fraude.

    Hemos visto que en este presupuesto de 2023 se investigaron 13 563 casos, con un impacto financiero de 1 900 millones de euros. Es verdad que, además, estamos evaluando una sofisticación cada vez más creciente. La utilización de las nuevas tecnologías va en aumento, como la de la inteligencia artificial, sin lugar a dudas, para suplantar identidad, desarrollar clonaciones de bots o llevar a cabo ataques cibernéticos.

    Yo creo que la Comisión todo esto se lo tiene que tomar muy en serio. Desde luego, yo quiero apostar muy fuerte por las nuevas tecnologías y la implementación de la inteligencia artificial, pero tenemos también que saber proteger. Tenemos que dar formación también a los trabajadores de la Comisión y de nuestras instituciones. En definitiva, es muy importante que desarrollemos muchas capacidades, pero sobre todo que sepamos cada vez protegernos mejor.

     
       

     

      Julien Sanchez (PfE). – Monsieur le Président, ce rapport confirme que les intérêts financiers de l’Union ne sont pas protégés. En 2023, les fraudes et irrégularités ont atteint un record historique: 13 563 cas et 1,90 milliard d’euros détournés de leur objectif, et ce ne sont que les chiffres officiels.

    Vu le peu de contrôles effectués dans les dépenses, ici, c’est en réalité bien davantage. Pire, 233 enquêtes du Parquet européen sont en cours sur les fonds de la FRR avec 1,86 milliard d’euros en jeu. Et cela ne fait que commencer, car vous confiez le contrôle de la FRR à ceux qui en perçoivent les fonds: c’est affligeant d’amateurisme!

    J’étais en mission en Lettonie en avril et la Cour des comptes locale n’a pu répondre à aucune de mes questions sur le sujet. Un scandale! Si je peux me rendre compte de cela, moi, vous, vous ne le pouvez pas? Vous préférez faire l’autruche?

    En tant qu’ancien maire, je suis dégoûté par ce que je vois ici. Si nos concitoyens étaient conscients de votre légèreté dans le contrôle des dépenses, ils demanderaient vos têtes. Votre responsabilité est immense. Pendant que la Commission tergiverse, l’argent des contribuables européens alimente la corruption et les mafias. Ça suffit!

    Ce ne sont pas des rapports ou des vœux pieux que nous voulons, mais de la transparence, un contrôle systématique et exhaustif au centime près et donc des résultats. En attendant, nous continuerons à dénoncer vos lacunes et à proposer des moyens d’éviter ce qui se passe ici. Il est temps que le laxisme cède sa place à l’exigence.

     
       

     

      Alexander Jungbluth (ESN). – Herr Präsident! Der größte Betrugsskandal in der Geschichte der EU wird in dem vorliegenden Bericht nicht einmal erwähnt. Rund 35 Milliarden EUR hat der Impfstoffdeal von von der Leyen den Steuerzahler in etwa gekostet. Nach wie vor verweigert sie die Aufklärung, was die Europäische Staatsanwaltschaft nicht zu stören scheint. Betrug auf allerhöchster Ebene ist in dieser EU längst Standard geworden. Und an die Adresse der Grünen: Herr Freund, es ist immer ganz interessant, dass Sie hier Frau Le Pen ansprechen.

    Wir wollen an dieser Stelle doch mal feststellen, dass Ihre Parteivorsitzende, Frau Brantner, dem Magazin Tichys Einblick zufolge genau im Verdacht steht, das Gleiche gemacht zu haben. Im rheinland-pfälzischen Wahlkampf 2011, als die Grünen nicht im Parlament vertreten waren, hat sie genau das gemacht, was Sie heute Le Pen vorwerfen. Sie haben Mitarbeiter dazu verwendet, ihren Wahlkampf zu unterstützen. Sie sind an Korruption in diesem Haus überhaupt nicht zu übertreffen. Sie machen nämlich zwei Dinge: Sie haben eine korrupte Parteivorsitzende Brantner auf der einen Ebene, und mittelbar nutzen Sie über Ihre NGOs diesen Staat, nutzen Sie die EU als Selbstbedienungsladen. Sie sind der korrupteste Haufen, den dieses Parlament überhaupt zu bieten hat, Herr Freund!

    (Der Redner ist damit einverstanden, auf eine Frage nach dem Verfahren der „blauen Karte“ zu antworten.)

     
       

     

      Lukas Sieper (NI), Frage nach dem Verfahren der „blauen Karte“. – Schauen Sie mal, Herr Jungbluth, mit Ihnen diskutiere ich so gerne. Da opfere ich sogar mein Catch the eye, nur um Ihnen hier diese Frage zu stellen. Ich hoffe, Sie sind bereit. Sie sagen, dass dieser oder jener Teil der korrupteste Haufen hier im EU‑Parlament ist oder auch die Kommission. Ich meine, dass die Berichte da mal öffentlich gemacht werden müssen und die SMS, da sind wir uns ja alle einig. Was da drin steht, das weiß auch nur der liebe Gott. Aber ich schweife ab. Meine Frage an Sie lautet: Wie können Sie eigentlich sagen, dass jemand anderes der korrupteste Haufen ist, wenn es Ihre Partei ist, die sich von ausländischen Agenten schmieren lässt, weswegen wir hier die Immunität aufheben müssen?

     
       

     

      Alexander Jungbluth (ESN), Antwort auf eine Frage nach dem Verfahren der „blauen Karte“. – Der Kollege hat es gerade richtig gesagt. Sie haben hier eine Märchenstunde, die Sie erzählen. Und wissen Sie was? Folgendes ist der Fall: Es ist doch tatsächlich so, dass bei uns immer Kleinigkeiten hervorgehoben werden und dann ein angeblicher Korruptionsskandal daraus gemacht wird. Da gibt es irgendwelche dubiosen Geschichten, die Leute wie Sie dann immer gerne erfinden. Auf der anderen Seite haben wir tatsächliche Korruption, die eben nicht geahndet wird, weil wir eben unter anderem keine unabhängige Gerichtsbarkeit haben.

    Wir sehen das gerade in Deutschland, was passiert. Wir haben einen abhängigen Inlandsgeheimdienst, wir haben eine abhängige Verfassungsgerichtsbarkeit, und das ist das eigentliche Problem. Das eigentliche Problem ist, dass eine Rechtsstaatlichkeit innerhalb dieser EU kaum noch gegeben ist.

     
       

     

      Evin Incir (S&D). – Mr President, every misuse of taxpayers’ money is essentially theft. Viktor Orbán, the leader of the far right in Europe, is one of the biggest ones. The European Commission is currently withholding … So are the colleagues going to be silent or am I allowed to continue?

    (The President asked for silence in the room)

    Every misuse of taxpayers’ money is essentially theft. Viktor Orbán, the leader of the far right in Europe, is one of the biggest ones. The European Commission is currently withholding many billions in EU funds from Hungary due to rule of law and corruption concerns.

    This is corruption. Anti‑democrats remain anti‑democrats. Transparency and accountability are their greatest enemies. Their shamelessness knows no bounds, even extending to spying on investigators from the EU Anti‑Fraud Office, OLAF.

    Those who misuse public funds and target our anti‑corruption agencies also attempt to demonise the cornerstone of democracy: civil society. A vibrant civil society is a vital pillar of healthy democracies, which explains why Orbán is attacking it.

    Let us also not forget the baseless allegations against important international organisations like UNWRA. Democracy is currently in jeopardy.

     
       

     

      András László (PfE). – Elnök Úr! Képviselő Asszonynak rögtön válaszolnék is. Magyarország uniós forrásait részben azért tartják vissza, mert nemet mondunk az ukrajnai háborúra, nemet mondunk az illegális migrációra, és nemet mondunk a genderideológiára. De ami Brüsszelt illeti, az NGO-k finanszírozási botránya végre elérte az Európai Uniót is. Az Európai Számvevőszék jelentése egészen megdöbbentő, egyértelműen átláthatatlan finanszírozásról beszél. Még az sincs rendesen szabályozva, hogy mi számít ténylegesen nem kormányzati szervezetnek.

    Az EU egyszerűen elfogadja azt, hogyha egyes szervezetek annak vallják magukat, miközben fontos politikai kérdésekben rájuk hivatkozik az Európai Bizottság mint akik az európai polgárok akaratát képviselik. Az elmúlt években az Európai Parlament korrupciós botránya, a legutóbb zöld botrányban érintett Frans Timmermans esetében is kiderült, hogy NGO-k a politikai befolyásszerzés eszközei voltak. A Magyarországon működő legnagyobb, magukat civilnek hazudó szervezetek pedig támogatásuk túlnyomó részét nem magyar magánszemélyektől kapják, hanem külföldről. Ennek véget kell vetni, véget kell vetni a politikai árnyékhatalomnak, és át kell világítani ezt a rendszert. A bújtatott politikai lobbinak véget kell vetni.

     
       

       

    Intervenții la cerere

     
       

     

      Maria Grapini (S&D). – Domnule președinte, domnule comisar, stimați colegi, discutăm o problemă extrem de importantă și este păcat că suntem atât de puțini.

    Apărarea intereselor financiare ale Uniunii ține, de fapt, de credibilitatea instituțiilor europene și cum le putem apăra?

    În primul rând, toate instituțiile care sunt desemnate și plătite pentru a apăra interesele financiare și a combate frauda trebuie să lucreze transparent, să ne informeze, să transmitem în țara noastră, în țările noastre, ce fac aceste instituții, pentru că le plătim și nu cu bani puțini.

    Am exemple concrete – Parchetul European – am fost raportor în mandatul trecut, Parchetul European nu este eficient. A recuperat 1%, circa 1% din sumele pentru care au cheltuit bani, au controlat. Mai mult, sunt cazuri extrem de grave: trei ani de zile terorizează o companie și, în final, nu este vinovată compania de a o scoate din piață.

    Deci, dacă nu lucrează pentru cu adevărat pentru recuperarea pagubelor și evitarea fraudelor, ne pierdem credibilitatea și să nu ne mirăm că se dezvoltă extremismul.

    Asta cer Comisiei Europene: transparență și eficiență în munca pe care o fac.

     
       


     

      Lukas Sieper (NI). – Mr President, dear people of Europe, dear Commissioner, when I was researching the most important administrative body of the European Union regarding the topic of this debate, OLAF – who, by the way, also has one of the funniest names of all European institutions, at least from a German or maybe Scandinavian perspective – I found a shocking truth: this so important administrative body does not have Instagram, no TikTok, nothing but a LinkedIn account and a website.

    Everyone in this room, maybe because of different political ideas, agrees on the fact that fraud is hurting this Union, is hurting the trust in our Union. And so I’m wondering, why do we not publish this important work of OLAF in a system that is modern, that reaches the young generation? How can this be?

    And maybe we should also ask ourselves, which other institutions make the same mistake? I hope you can take this with you, Commissioner, even though you are not directly responsible.

     
       

       

    (Încheierea intervențiilor la cerere)

     
       

     

      Piotr Serafin, Member of the Commission. – Mr President, many thanks for the debate. I appreciate a number of suggestions and remarks that have been raised and that can help us to improve the way in which the anti-fraud architecture operates.

    And as I said already in the opening remarks, the work on the reform and the review of the anti-fraud architecture will be absolutely key during this mandate.

    I think a lot of positive developments took place in the last few years. The fact that we have in place EPPO is clearly a positive development. The fact that we have been and we will continue to invest also European taxpayers’ money into the development of the anti-fraud architecture, let me just make a reference to the announcement of President von der Leyen to increase financial resources available for Europol, that is also a positive development.

    But it’s also true that since we have new actors, since we are also going to have a few new players in the area of anti-fraud architecture, that’s why that review is really necessary. And I believe that that review is not just important from the perspective of the protection of the financial interests of the EU, not only from the perspective of the protection of the EU budget, but also from the perspective of our Member States. Because the truth is that the single market is an opportunity not only for our companies, not only for our citizens, but it is also an opportunity for fraudsters. And I’m absolutely certain that without a system that we have at EU level, Member States alone would not be able to detect and fight against fraud. And that is one of the important takeaways that we will also keep in mind while looking into the future of the anti-fraud architecture.

    The second point that I would like to make refers to the data on the detection of fraud. Many of you have referred to that data. Yes, it is an issue of concern. That is an issue that we would need to continue to address. But that is also a measure that we have put in place: an anti-fraud system that is able to detect fraud, that is able also to fight fraud and corruption. The system is not perfect, that’s why we would need to review it. That’s why we need to continuously work to improve it. Because as we know, one thing that the fraudsters are not missing is creativity. They will continue to look for ways in which they can misuse public money, including the EU budget money.

    But that system is already is already bringing results. And to be frank, I’ve heard about some countries, not necessarily in the European Union, in which those in power say there is no fraud, there is no corruption – I don’t believe it. I think there is fraud and there is corruption everywhere because that risk is everywhere. The question is whether we have a system in place that can address it and fight it.

    And that is another point that I would like to share with you, and one last on the NGOs: I think it has to be stated clearly, we’ll discuss it also tomorrow, there is no fraud. There has never been fraud. And those who are referring to NGOs, they know it. I have more and more the impression that they are doing that, because they would like to eliminate NGOs from the public debate at the European level.

     
       

     

      Gilles Boyer, rapporteur. – Monsieur le Président, Monsieur le Commissaire, chers collègues, merci pour ce débat utile qui fait émerger des positions non pas unanimes, parce que l’unanimité n’est pas de ce monde, mais des positions largement consensuelles ou en tout cas une volonté partagée de faire, tous ensemble, le meilleur usage de l’argent public européen, de lutter contre une fraude protéiforme, massive, inventive et souvent plus rapide que nous, décideurs européens.

    À partir de ce consensus, j’aimerais que l’ensemble des groupes qui partagent cette vision, au-delà des nuances que nous pouvons avoir, ne se laissent pas polluer par un sujet important, mais finalement marginal dans notre architecture européenne, celui des ONG. Ce sujet, vous l’avez évoqué, il a été évoqué dans ce débat et il sera à nouveau évoqué dans cet hémicycle, j’en suis certain, à plusieurs reprises.

    J’ai proposé une formulation, dans le rapport, qui me semble équilibrée, qui rappelle le rôle important des ONG dans le débat public européen, que nous devons préserver, et qui rappelle aussi que tous ceux qui perçoivent des fonds européens doivent la transparence aux contribuables européens et aux autorités de contrôle. Je crois que c’est ce que nous pouvons dire dans le cadre de ce rapport.

    Je pense que c’est un bon rapport, non pas parce que c’est le mien – pas seulement parce que c’est le mien –, mais parce qu’il est issu d’un travail réfléchi avec l’ensemble des rapporteurs fictifs que je remercie pour leur collaboration. Je souhaite que, lors du vote de demain, nous gardions en tête, comme on dit en bon français, «the big picture».

     
       

     

      Preşedinte. – Cu acest anunț am încheiat dezbaterea. Votarea va avea loc mâine.

     

    20. Composition of committees and delegations

     

      Preşedinte. – Am un anunț de făcut: deputații neafiliați au comunicat președintelui o decizie referitoare la modificări cu privire la numirile în cadrul comisiilor.

    Această decizie va fi consemnată în procesul-verbal al ședinței de astăzi și produce efecte de la data prezentului anunț, respectiv, domnul Volker Schnurrbusch îl înlocuiește pe domnul Taner Kabilov în Comisia pentru petiții.

     

    21. Control of the financial activities of the European Investment Bank – annual report 2023 (debate)


     

      Ondřej Knotek, rapporteur. – Mr President, good afternoon colleagues, Vice-President Fitto and Vice-President of the EIB de Groot. Despite the fact that the main scope of the report is dedicated to the financial activities of the bank in 2023, we considered, on top of this scope, other useful elements to better understand the EIB’s operational model, internal system and also strategy in current vibrant times. Why? Because the EIB already now plays a crucial role in implementing EU policies, and its role might grow in the near future. Therefore, I am extremely grateful for the openness and hospitality that the bank provided while drafting this report.

    I would like to also remind all of us that the EIB is not the subject of the standard discharge procedure we are used to. To sum up the activities we have done: firstly, there was a questionnaire based on the inputs from the CONT committee members that was effectively answered by the bank. Then on 11 December 2024, we held a one-day working visit in the EIB, meeting eight representatives of departments and one vice-president. And on 25 January, we held a follow-up video conference on topics like transparency and prevention of the conflict of interest.

    Now, on the substance, the EIB maintained in 2023 the triple A rating and liquidity ratio within the limits and had a positive result of EUR 2.3 billion. Also, the 2023 signed investments are expected to create 1.4 million new jobs in coming years, and this shall contribute growth of one percentage in GDP.

    The EIB manages up to 130 mandates, both from the Commission and the shared management, and produces 450 reports every year. Therefore, simplification is not only needed here, but as well has been recognised within the system and addressed in the system, and of course not at the cost of sound management. By the way, EIB manages six mandates from the RRF, namely for Greece, Italy, Romania and Spain.

    On energy security, the bank focuses on the security of supplies via grids reinforcement, cross-border infrastructure, but also introduces new modern elements like demand response and energy storage projects, and also value chains for critical materials.

    Another important topic is security – EIB supports the EU defence and security industry under the dual-use principle, and the budget has been increased here from EUR 6 billion to EUR 8 billion and newly includes also activities in space. The bank cooperates with the European Defence Agency and, in order to mobilise money for innovative projects, has opened the One-Stop-Shop.

    When we look at the climate, it is one of the main priorities of the bank – there has been EUR 40 billion in climate, EUR 25 billion in sustainability and also many projects newly in climate adaptation. The bank is active also outside the EU, namely in Ukraine, Western Balkans, Moldova but also Africa. When it comes to accountability, the bank cooperates within OLAF and EPPO and has its own ethics and compliance committee.

    We are running slowly out of time, so to sum up, the EIB has demonstrated, I would say, unprecedented engagement with the Parliament in preparing this report. I am very thankful, in my opinion, as also an auditor outside the European Parliament, the EIB is running a successful operational model applying risk prevention and continual improvement approach and tries to address existing challenges and opportunities effectively. I would like to thank all the representatives of the CONT committee, of course, of the bank, of the Secretariat, and I am looking forward to the debate to come.

     
       

     

      Robert de Groot, Vice-President of the EIB. – Mr President, honourable Members, it’s my pleasure to be with you here today to address some important issues raised in the report and update you on the activities of the EIB Group. And I want to thank the rapporteur, Mr Ondřej Knotek, for his thorough work and the excellent cooperation to reach a well‑balanced report.

    Your report rightly acknowledges the bank’s achievements in 2023, and since then, a lot has happened. 2024, the first year of President Calviño at the helm of the bank was a year of change. The bank signed EUR 89 billion in new financing for high‑impact projects supporting EU policy priorities. Our investments help close the investment gap Europe faces. Investment strengthens European competitiveness, it bolsters our strategic autonomy and makes the European economy more resilient in this increasingly complex world.

    Last year alone, nearly 60 % of our financing went to supporting the green transition, including circular economy and climate adaptation. The EIB Group made more investments than ever to strengthen the EU’s energy security, mobilising over EUR 100 billion for projects in the new and upgraded infrastructure, such as grids and interconnectors, renewables, net zero industries, efficiency and energy storage.

    At the same time, higher risk operations for Europe’s most innovative companies have sharply increased, with EUR 8 billion in equity and quasi‑equity investment for start‑ups, scale‑ups and European pioneers. This number will increase in 2025.

    We operate with clear priorities set out by our shareholders in our 2024‑2027 strategic roadmap. We have significant progress in simplification – the rapporteur alluded to it – resulting in cutting red tape for clients and shortening the time to market required to improve and deploy new investments, and, thanks to the support of your House, with the change of our statute to increase the gearing ratio, allowing us to invest more while maintaining our equity base.

    The EIB Group plans to increase its overall investments, as I said, to EUR 90‑95 billion in 2025, with flagship initiatives to support European tech champions through a dedicated Tech EU programme, contributing to a deeper and broader European capital markets union, which is essential to support our start‑up and scale‑up companies and to keep them in Europe.

    We will act on critical raw materials, water management, energy efficiency of SMEs, as well as sustainable and affordable housing. Housing is a top priority for the EIB Group, as it is for so many citizens all over Europe. That’s why we have designed an action plan, working closely with the Commission to set up a pan‑European investment platform. Our aim is to generate about EUR 10 billion of investment over the next two years. This is a good example of how the bank is willing and able to evolve, adapt and be part of the solution to the multiple challenges Europe currently faces.

    InvestEU is a success story with a multiplier effect of close to 15 times, according to the Commission. It’s an excellent example of how leveraging is realised. Indeed, the market demand and pace of deployment are such that we are even at risk of missing the firepower to deliver some of our projects in the last years of the budget cycle.

    I turn now to another area which is highly relevant in the current geopolitical context, namely defence and security. The EIB board decided in March to broaden the EIB Group’s eligibility criteria for security and defence investments, ensuring that excluded activities remain as minimal as possible. This allows us to finance large‑scale strategic projects in areas such as border protection, military mobility, space, cybersecurity, anti‑jamming technologies, radar system, seabed and other critical infrastructure and critical raw materials. These changes will further facilitate investment to bolster Europe’s industrial defence capabilities. I think this is very important at this moment in time.

    Mr President, once again, many thanks to the rapporteur for the report and thank you very much for this opportunity.

     
       

     

      Raffaele Fitto, Executive Vice-President of the Commission. – Mr President, Vice-President of the EIB, dear rapporteur, honourable Members, I would like to thank the European Parliament for the opportunity to present the Commission’s views in this regard. This was another year of positive cooperation with our long-standing partner, the European Investment Bank group, which we value very much. It is essential that our institutions keep working together as strategic partners.

    Today, the EIB group has been provided indispensable financial support to ensure implementation of the EU priorities on the ground. This concerns areas such as energy, electricity distribution, networks, water, social and affordable housing, education and the mobile network, to name just a few. We welcome the eight strategic priorities of the EIB Strategic Roadmap adopted last year. They are well-aligned with EU priorities, including new ones such as defence and security.

    The projects and the investments carried out by the EIB also contribute to the competitiveness agenda of the current Commission. This agenda critically depends on the ability of highly innovative start-ups. This is especially relevant in areas such as AI, quantum computing and deep tech, biotech and clean tech, or in the defence sector.

    Given the scale of the investment needed, as mentioned in the Draghi report, we will have to strive to attract institutional investors, such as the insurers and the pension funds to leverage all available resources. The Commission and the EIB group should continue working together to identify all options available. At the same time, we encourage the EIB group to further exploit the risk-taking potential, to foster higher additionally in its interventions and avoid the risk of crowding out other investors.

    In March, the Commission published the communication on the Savings and Investments Union. I therefore welcome the EIB’s recent initiative to address the most challenging needs of strategically important, innovative companies. These initiatives, such as the European Tech Champions Initiative 2.0, aimed to scale-up venture capital investments, facilitate easier exits of the venture funds, thus allowing circularity of investment and better use of available funds.

    The Commission has strongly connected competitiveness to simplification: one cannot exist without the other. Our strategy on implementation and simplification for the next five years aims at making sure that EU rules are as simple and cost-effective as possible, and that they deliver on the ground to achieve our economic, social, security and environmental goals. We are working closely with the EIB to deliver on our simplification agenda, for example via the Invest EU omnibus regulation.

    Outside the EU, the role of EIB Global will be crucial in delivering EU policy priorities and enhancing the EU’s visibility and development impact. The EIB remains our important partner in ensuring continued support to Ukraine now and in the long-term. In April, the Commission witnessed the signature of four new EIB operations, which will address Ukraine’s most pressing recovery needs, supporting municipalities in renewable energy and energy efficiency, water infrastructure and district heating.

    These projects, backed by the EU budget through the Ukraine Facility, reflect our commitment to Ukraine’s long-term resilience and to its people. In this regard and in view of an increasingly difficult geopolitical context, strengthening EU security and defence has been brought to the forefront of our agenda. Rebuilding Europe’s defence capabilities requires urgent and significant investment.

    In March, the Commission presented the ReArm Europe Plan/Readiness 2030 initiative to facilitate a unique surge in defence investment. It aims to unlock up to EUR 800 billion of additional defence expenditures – a game changer for European defence. The EIB has a clear role to play here, particularly in supporting the investments needed to ramp up the defence industry. This also includes targeted support for small and medium enterprises across the supply chain. In this sense, we welcome the recent amendment of the EIB group’s exclusion policy to further boost its investment in security and defence, while safeguarding the group’s financial capacity. I believe that by working together, focusing investment and maintaining a coherent regulatory framework, we can ensure Europe’s continued growth, technological leadership and resilience in the face of an increasingly volatile and competitive global environment.

    I welcome the EP report, which brings important insights and recommendations. The EIB has been successful in ensuring a balance between being a bank with public commission and maintaining agility to ensure it remains an attractive partner for projects, promoters and to advance our important investment policies, often with private partners. I hope this balance will be further retained.

     
       

     

      Kinga Kollár, a PPE képviselőcsoport nevében. – Elnök Úr! Európa következő évei az óriásberuházásokról fognak szólni: évi 800 milliárd euró az európai vállalkozásokba, további 800 milliárd euró Európa védelmi iparába. Végül, de semmiképpen sem utolsósorban, jelentős összegek a kohézió, a jólét és az egészséges környezet fenntartására, különösen a megfizethető lakhatásra és a kapcsolódó egészségügyi, oktatási és közlekedési infrastruktúra finanszírozására.

    Az Európai Beruházási Bank több szempontból is előnyös helyzetben van, hogy ezeket a nagymértékű befektetéseket mozgósítani tudja. Egyrészt tőkeerős helyzete, az EU által biztosított garancia és kiváló hitelminősítése lehetővé teszi számára, hogy előnyös feltételek mellett tudjon hitelt nyújtani. Másrészt jelentős tapasztalata van a privát befektetők és a tőke bevonásában, amire mindenképpen szükség lesz a célok eléréséhez. Kérem ezért a bankot, hogy a prudens és gazdaságos működés megtartása mellett, fokozza a beruházási tevékenységét és merjen bátrabban kockázatot vállalni.

    Az EIB-nek a tagállamok beruházási bankjaként arra is figyelnie kell, hogy finanszírozási tevékenysége földrajzilag is kiegyensúlyozott legyen. Magyarországon például a bank által befektetett összeg jelentősen elmarad az európai átlagtól, pedig Magyarországon külön kiemelt szerepe is lenne a banknak, a magyar kormány korrupciója miatt kiesett uniós támogatások pótlásában. A bank az EU pénzügyi érdekeinek védelme mellett tudna a magyar gazdaságba és vállalkozásokba, infrastruktúrába pénzt pumpálni.

    Végül kiemelném, hogy az, hogy a jelentéstevő a Patrióta csoport tagja, nem szoríthatja háttérbe azt, hogy mi mindannyian azért vagyunk itt, hogy a választópolgárok érdekeit szolgáljuk. A Tisztelt Ház előtt lévő jelentés ezt teszi, ezért remélem, hogy széles körű támogatásra talál a holnapi szavazáson.

     
       

     

      Maria Grapini, în numele grupului S&D. – Domnule președinte, domnule comisar, domnule vicepreședinte, sunt raportor din partea grupului meu la acest raport și, așa cum am spus și la audierea în comisie, apreciez activitatea Băncii Europene de Investiții. Vin din mediul privat, știu procedurile de lucru în bănci, știu că nu își asumă de multe ori riscuri, vor să fie acoperiți.

    Ce mi-aș dori, domnule vicepreședinte, este ca în viitor, din acele multe zeci de miliarde pe care ați spus că le-ați investit, să crească procentul investițiilor și creditelor acordate întreprinderilor mici și mijlocii. Am spus asta și în dezbaterea din comisie.

    De asemenea, mi-aș dori să flexibilizați, și mai multă transparență, să eliminăm aceste bariere în calea celor care ar dori să investească, să aibă credite. De asemenea, în mediul rural, foarte puțini din mediul rural pot să aibă acces la credite. Poate vă gândiți la alte mecanisme.

    Femeile care conduc afaceri, de asemenea, am pus amendament, îmi doresc să aibă mai mult acces, și poate la următorul raport ne aduceți, așa întreg, procentele de creștere la investițiile, la creditele acordate IMM-urilor, femeilor, apoi în domeniul sanitar.

    Și avem o mare problemă cu locuințele. S-a mai spus aici: este o criză de locuințe, în special la tineri și aici trebuie să ne gândim cum putem să facem prin Banca Europeană de Investiții să acordăm credite tinerilor pentru a avea locuințe.

     
       

     

      Şerban Dimitrie Sturdza, în numele grupului ECR. – Domnule președinte, stimate domnule Fitto, stimați colegi, în calitate de raportor al ECR pentru dosarul cu privire la activitatea anuală a Băncii Europene de Investiții, mi-am asumat un rol activ în protejarea intereselor financiare ale Uniunii Europene.

    Fondurile publice ale Uniunii Europene trebuie să fie utilizate eficient și transparent, fără a risipi vreo resursă. De aceea, am cerut ca evaluările de impact să fie riguroase și să garanteze că fiecare euro cheltuit aduce beneficii concrete cetățenilor europeni, în special în contextul crizelor economice și sociale cu care ne confruntăm.

    Consider că este esențial ca alocarea banilor europeni să se facă pe baza unor principii raționale și nu pe fundamente ideologice care pot pune în pericol stabilitatea economică a Uniunii.

    În virtutea acestui raționament, prin amendamentele pe care le-am susținut, am cerut ca Fondul European de Investiții să fie orientat clar către creșterea competitivității, a rezilienței și a dezvoltării economice. Cerințele privind obiectivele climatice nu trebuie să devină scopuri în sine și nici să afecteze competitivitatea.

    Împreună cu colegii deputați din Grupul ECR, voi continua să urmăresc cu atenție modul în care Banca Europeană de Investiții gestionează fondurile și să mă asigur că deciziile financiare sunt luate în interesul tuturor cetățenilor europeni.

     
       

     

      Vlad Vasile-Voiculescu, în numele grupului Renew. – Domnule președinte, apreciez rolul Băncii Europene de Investiții în arhitectura instituțională a Uniunii Europene. Este o instituție cheie pentru coeziune, dezvoltare durabilă, tranziție verde.

    Dar tocmai pentru că știm ce rol esențial are, avem datoria să spunem și acolo unde lucrurile nu merg bine.

    Am evaluat din partea grupului politic Renew activitatea băncii în 2023. Doar un sfert, doar un sfert din finanțările BEI au mers către regiunile mai puțin dezvoltate din Uniunea Europeană în 2023. Este un procent care ar trebui să ne îngrijoreze, dacă ne pasă cu adevărat de reducerea inegalităților între Est și Vest, între centrul și periferia Uniunii.

    România este un exemplu elocvent. Este o țară cu nevoi uriașe în infrastructură, digitalizare, sănătate, tranziție energetică, dar cu o prezență relativ modestă în portofoliul BEI.

    Este clar că trebuie să înțelegem ce nu funcționează, și ce nu funcționează este colaborarea cu autoritățile naționale și locale. Există blocaje administrative și de capacitate și parteneriatele public-private sunt prea puțin folosite și ar trebui să fie o prioritate pentru viitor.

    În final, salut cooperarea cu OLAF și Parchetul European. Cred că este un pas esențial pentru întărirea transparenței și a încrederii cetățenilor.

     
       

     

      Rudi Kennes, namens de The Left-Fractie. – Voorzitter, de Europese Investeringsbank (EIB) werkt op basis van een non-profitmandaat, met als doel projecten te financieren die ten goede komen aan gewone mensen in de Europese Unie en daarbuiten. In werkelijkheid heeft de EIB echter vooral bijgedragen aan het verhogen van bedrijfswinsten met belastinggeld. Miljarden euro’s aan overheidsleningen zijn toegekend aan zeer winstgevende bedrijven die hun projecten perfect zonder overheidssubsidies hadden kunnen financieren.

    Tussen 2020 en 2023 ontvingen zeven zakelijke EIB-klanten – Iberdrola, Stellantis, Intesa San Paolo, Leonardo, Orange, Nordfolk en Gavi (the Vaccine) Alliance – meer dan 11 miljard EUR aan EIB-leningen. In dezelfde periode boekten deze bedrijven samen 100 miljard EUR winst, keerden zij 38,7 miljard EUR aan dividend uit, besteedden zij €11,9 miljard EUR aan aandeleninkoop en betaalden zij hun CEO’s maar liefst meer dan 146 miljoen EUR.

    Sommige van deze bedrijven liggen bovendien onder vuur vanwege betrokkenheid bij sociale onregelmatigheden en milieumisstanden, corruptie en het leveren van wapens aan landen die het internationale recht schenden. Dit moet veranderen.

    De EIB moet prioriteit geven aan publieke partnerschappen en onze publieke diensten financieren. Zij moet hoge sociale en milieunormen hanteren voor alle projecten, strenge voorwaarden stellen aan bedrijfsleningen en nauwer samenwerken met de EU en nationale publieke financiële instellingen om de positieve impact van overheidsinstellingen te maximaliseren.

     
       



     

      Tomáš Zdechovský (PPE). – Pane předsedající, vážený pane komisaři, vážený pane místopředsedo, vážení kolegové, rád bych poděkoval všem kolegům za velmi dobrou práci. Je to jasný signál, že Evropská investiční banka musí převzít klíčovou roli v oblasti strategické obrany Evropy – technologie dvojího užití, tedy ty, které slouží k civilním i obranným účelům, zásadní pro naši bezpečnost a suverenitu. A Evropská investiční banka se musí s touto výzvou utkat. Je skvělé, že Evropská investiční banka opustila zastaralý model příjmového testu. Evropská investiční banka ale musí investovat i do oblastí, jako je kybernetická bezpečnost nebo inovace v oblasti obrany. Potřebujeme také cílené investice do energetické bezpečnosti, což jsme viděli jako Evropská lidová strana ve Španělsku minulý týden. Ale řekněme si to otevřeně – bez bezpečnosti nebude stabilita. Právě proto musí být obranné schopnosti a duální technologie jádrem budoucího mandátu Evropské investiční banky. Podporuji tuto zprávu, protože nevidím v Evropské investiční bance jenom banku, ale i instituci, která chrání odolnost Evropy.

     
       

     

      Jonás Fernández (S&D). – Señor presidente, señor comisario, en primer lugar, me gustaría felicitar y agradecer el trabajo del Banco Europeo de Inversiones en todos estos años, y especialmente —como ha dicho el vicepresidente— en esta última etapa con una nueva presidenta, que sin duda está reactivando el trabajo del Banco Europeo de Inversiones, tan necesario ante el volumen ingente de financiación que debemos acometer en los próximos años.

    Quisiera quizá hacer dos apuntes. En primer lugar, necesitamos más financiación para la vivienda social. Y tengo un mensaje para la Comisión: la propuesta de reforma de la definición de pequeña y mediana empresa que está en la revisión del Reglamento por el que se establece el Programa InvestEU he de decir que a los socialistas no nos gusta mucho, porque creo que no define bien lo que es una pyme y podría distraer la atención y los esfuerzos del Banco Europeo de Inversiones en financiar a las pequeñas y medianas empresas.

    En todo caso, y para terminar, me gustaría anunciar que el Grupo Socialista votará en contra de este informe, porque realmente entendemos que el Grupo parlamentario de los Patriotas, que ha estado haciendo uso fraudulento de la financiación europea en Francia con Le Pen, en Hungría con Orbán o en España con VOX, no puede firmar un documento como este.

     
       


     

      Sandra Gómez López (S&D). – (inicio de la intervención fuera de micrófono) … especialmente al ponente del informe. ¿Cómo se puede hablar del Banco Europeo de Inversiones sin mencionar a las personas que más lo necesitan? Este informe olvida lo que es el corazón de Europa: nuestras empresas, nuestras pymes, nuestros jóvenes agricultores y nuestras zonas rurales. Y también se borran referencias importantísimas como el pilar europeo de derechos sociales, los Objetivos de Desarrollo Sostenible o el impacto de la guerra de Rusia contra Ucrania.

    Así que nosotros no queremos que se refleje que el BEI tiene que ser un banco técnico y distante; queremos que se refleje que es un banco humano y social, que está comprometido con las personas que viven en Europa, con la cohesión social y con nuestro futuro, y por eso vamos a votar en contra de este informe como grupo.

    La buena noticia que tenemos es que, pese a lo que ustedes querrían, hoy contamos con un gran liderazgo, Nadia Calviño como presidenta del BEI, que va a permitirle ser garante de los valores que nos representan como Unión Europea.

     
       

       

    Intervenții la cerere

     
       

     

      Lukas Sieper (NI). – Mr President, first of all, I beg your forgiveness for being too loud a few minutes ago. Actually, being present in this room sometimes requires having a conversation and listening to the debate at the same time.

    Herr Präsident, liebe Menschen Europas! Wir haben ein Recht darauf zu wissen, was mit dem Geld der Europäischen Union passiert. Die Europäische Investitionsbank verwaltet einen wesentlichen Teil dieses Geldes. Sie nimmt wichtige Investitionen vor in Klimaschutz, in unsere Wirtschaft, in die Transformation zu einer gerechteren Gesellschaft – und sie unterstützt unsere Partner auf der ganzen Welt, wie etwa die Ukraine.

    Umso schockierender ist es, dass der Bundesrechnungshof der Europäischen Investitionsbank vor allen Dingen mangelnde Transparenz vorwirft. Wir leben in einer Zeit, in der die Skepsis an der Demokratie wächst, in der Populisten überall auf diesem Kontinent auf dem Vormarsch sind. Wir können es uns nicht erlauben, dass unsere Bevölkerung nicht genau weiß, was mit unserem Geld geschieht.

     
       

       

    (Încheierea intervențiilor la cerere)

     
       

     

      Raffaele Fitto, Executive Vice-President of the Commission. – Mr President, thank you for this very engaging and substantive discussion. It is clear that we all are determined to act together to push the European agenda of competitiveness and security, and deliver on our main priorities.

    The EIB Group will remain an important player in this. I want to say this now, because we are working, for example, for the mid-term review of the cohesion policy, with the five new priorities. I heard during this discussion some of these points – for example, water, housing, competitiveness. I think this can be an important occasion to reinforce this cooperation in this way. The EIB Group is our natural closest partner, and we are aligned on our strategic priorities.

    We will continue to rely on the EIB Group to support the implementation of our agenda and adjust our support in view of new and emerging priorities when needed. I look forward to continuing our close cooperation, with the common goal of achieving greater impact inside and outside the Union.

     
       

     

      Robert de Groot, Vice-President of the EIB. – Mr President, thank you for the words of the Vice-President of the Commission, honourable Members, thanks for your remarks and questions. Let me go into more detail on some of the points you have made.

    First, on cohesion – cohesion was the number one obligation of the European Investment Bank group when we started in 1958, and today, 48 % of our national budget is still spent on cohesion. It is in the least advantageous areas of Europe, it is in rural areas where public services are under pressure, and we will continue to work in that direction.

    Secondly, we are a demand-driven organisation, which implicates that we do not go out into the Member State and force upon them a loan by the European Investment Bank group. It is the other way around; people knock on our doors and we try and help as much as possible. One of the first criteria we look at is if there is a market failure – the EIB is active and will be active in those areas where other financial institutions will not go.

    One of the most important elements, which makes us such an important player in Europe, is that we have a very large unit of hundreds of engineers and economists, which not only work on making a loan and a financial proposition possible, but also look at the content and help each and every applicant, whether in the private sector or in the public sector, to bring about a project which really gives a return to European taxpayers.

    I noticed very well the remarks on small- and medium-sized enterprises, but also micro businesses, and I fully agree the access to credit for these companies, these very small companies, who are so important when it comes to the labour market inside the EU, is still an issue we really have to worry about and work on, and that’s what we are doing as the EIB group. We cannot do this directly with SMEs and micro businesses in Europe. We always go through a financial intermediary, mostly European commercial banks – a very important element of our business.

    I listened very carefully to the remarks on agriculture, and especially young farmers receive our attention when it comes to the area of agriculture. For this year, we envisage to invest at least EUR 3 billion in this area.

    In the area of housing, which was also mentioned by honourable Members, we are trying to leverage the financing we are going to make available to a couple of billion euro, hopefully in a couple of years, to EUR 300 billion annually. We have three priorities in the area of housing: one – innovation, supporting innovative building technologies like modular housing to make construction faster, cheaper and easier; second – sustainability, scaling up energy efficient renovation to reduce living costs when it comes to energy prices; and three – affordability, strengthening support for public investment tailored to the specific needs of each country and piloting private investments.

    Now, on the issue of climate, which is also close to a bit more than half of what we are doing annually. This is about climate adaptation; this is about dealing with droughts, it is about dealing with floods – we have seen both inside many countries of the European Union, and they require large-scale investment to counter. But also in the area of energy, we have to be more self-sufficient when it comes to energy. This requires investments, not only in the energy carriers but also in the grids, which is a big and very expensive investment too.

    Now, when it comes to high risk, some of the honourable Members have called for more risk. Others have said: no, we should not take risks. We are in the banking business and banking business is about giving a loan and getting a loan paid back with interest. But there are cases where this will not happen, and one of the examples was mentioned. But I want to stress here that when it comes to becoming more self-sufficient in the area of energy: we have provided more than EUR 6 billion over the past years to finance the sector and trying to find the best, innovative and technologically sound way forward when it comes to the energy sector. And we have to take into account too that sometimes we will fail by taking risks. But it’s part of the business of finding the best answer.

    Finally, Mr President, when it comes to the auditing that the European Investment Bank is undergoing, I have to say we are one of the most audited financial institutions in the European Union. Whether it’s from the Central Bank of Luxembourg, because we have our headquarters there, whether it’s from external accountants, external audit committees, I think we fulfil every obligation and every best bank banking practice around.

    Finally, on security and defence, we have done away with the concept of dual use, which means that today we can also invest directly in the domain of defence. Let’s talk about military mobility across Europe and the big corridors. And let’s also talk about the military bases we need to have more and more, especially in Central Europe.

     
       

     

      Ondřej Knotek, rapporteur. – Mr President, thank you Vice-President Fitto, Vice-President de Groot, thank you colleagues for the debate – the debate shows the high importance of the European Investment Bank, and also it shows the high level of expectation that the members in this House have of the institution, of the bank, about the role of the bank in achieving its goals and addressing risks, not only for you as such, but also for our Member States and, in the end, for our citizens and communities.

    I have been very grateful for many of the topics that have been put on the table during the debate: geographical balance, taking higher risks, focus on SMEs, climate adaptation, security, cybersecurity, housing, agriculture and cohesion, and, of course, many others. I am happy that the Budgetary Control Committee has put forward the report which touches on those topics, clearly describes the development and successes of the bank, but also the expectations and needs of the Parliament when it comes to the needs for investment and the future role of EIB, which this House, I believe, sees as a partner, and is looking forward to cooperating with in the very long term. Allow me once again to thank you for the chance of being a rapporteur, and I would like to invite all of you voting tomorrow to support the report.

     
       

     

      Preşedinte. – Mulțumesc, domnule raportor și vă urez succes cu acest raport.

    Cu această contribuție, dezbaterea este închisă. Votarea va avea loc mâine.

     

    22. Ninth report on economic and social cohesion (debate)


     

      Jacek Protas, Sprawozdawca. – Panie Przewodniczący! Szanowni Państwo! Panie Komisarzu! Debatujemy dzisiaj nad bardzo ważnym sprawozdaniem, które po przegłosowaniu stanie się stanowiskiem Parlamentu Europejskiego na temat przyszłości polityki spójności po 2027 roku. Dokument, którego jestem sprawozdawcą, był szeroko konsultowany z organizacjami i instytucjami reprezentującymi różne środowiska oraz z Komitetem Regionów Unii Europejskiej. Odzwierciedla poglądy zdecydowanej większości grup politycznych reprezentowanych w Parlamencie Europejskim.

    Oto 10 podstawowych tez, które w tym krótkim wystąpieniu chcę uwypuklić. Po pierwsze, polityka spójności jest głównym narzędziem Unii Europejskiej służącym inwestycjom w zrównoważony rozwój gospodarczy, społeczny i terytorialny, sprzyjającym zmniejszeniu różnic rozwojowych europejskich regionów.

    Po drugie, aby polityka spójności nadal odgrywała tę ważną rolę, musi mieć zapewnione po 2027 roku wystarczająco ambitne i łatwo dostępne finansowanie, co najmniej na poziomie obecnych wieloletnich ram finansowych w ujęciu realnym.

    Po trzecie, Parlament Europejski opowiada się za zdecentralizowanym modelem programowania i wdrażania polityki spójności, opartym na zasadzie partnerstwa i na wielopoziomowym sprawowaniu rządów. Tylko wtedy może być ona skuteczna i akceptowalna dla naszych obywateli. Sprzeciwiamy się wszelkim formom centralizacji i ograniczania roli władz regionalnych i lokalnych.

    Po czwarte, wzywamy do dalszych wysiłków na rzecz uproszczenia i uelastycznienia przepisów i procedur administracyjnych regulujących fundusze polityki spójności na szczeblu unijnym, krajowym i regionalnym. Kluczem do sukcesu może być zwiększenie elastyczności na etapie programowania i wdrażania z odejściem od sztywnych ram koncentracji tematycznej i z uwzględnieniem specyfiki regionów.

    Po piąte, podkreślamy jednocześnie konieczność zapewnienia przejrzystego, sprawiedliwego i odpowiedzialnego wykorzystywania zasobów Unii Europejskiej przy należytym zarządzaniu finansami, podkreślając rolę Europejskiego Urzędu do Spraw Zwalczania Nadużyć Finansowych i Prokuratury Europejskiej. Uznając także warunkowość w zakresie praworządności jako warunek podstawowy finansowania w ramach polityki spójności. Podkreślamy strategiczne znaczenie silnych regionów przygranicznych dla bezpieczeństwa i odporności Unii Europejskiej. Wzywamy Komisję Europejską do szczególnego wspierania regionów graniczących z Rosją, Białorusią i Ukrainą, by mogły radzić sobie ze skutkami społeczno-gospodarczymi wojny dla ich ludności i terytoriów.

    Zwracamy uwagę na konieczność specjalnego podejścia do problemów regionów najbardziej oddalonych i wyspiarskich, które stoją w obliczu wyjątkowych i skumulowanych wyzwań strukturalnych. Wyrażamy zaniepokojenie rosnącą liczbą regionów znajdujących się w pułapce rozwoju, które dotknięte są stagnacją gospodarczą, problemami demograficznymi i ograniczeniem dostępu do usług publicznych.

    Specyficznym i ukierunkowanym wsparciem powinny też być objęte obszary wiejskie, ale także miasta i obszary metropolitalne borykające się z własnymi poważnymi wyzwaniami. I w końcu nalegamy także, by polityka spójności dążyła do zwiększenia innowacyjności i ukończenia tworzenia jednolitego rynku Unii Europejskiej zgodnie z wnioskami zawartymi w sprawozdaniu Draghiego w sprawie konkurencyjności Europy.

    I na koniec, apelujemy o przestrzeganie zasady “nie szkodzić spójności”, by żadne działania nie utrudniały procesu konwergencji europejskich regionów.

     
       

     

      Raffaele Fitto, Executive Vice-President of the Commission. – Mr President, honourable Members, thank you for the opportunity to address you today. First, let me thank the rapporteur, Mr Protas, for preparing this important report. This is particularly timely. I very much welcome the strong alignment with the Commission’s perspective. This shared perspective reinforces the fundamental message of the 9th Cohesion Report.

    Cohesion policy has a positive and significant impact in terms of convergence. It reduces the disparities among EU Member States and regions, it stimulates long-term growth and competitiveness, and it plays a key role in supporting public investment. To continue to achieve our goals, we need to bring the cohesion policy up to date, considering the current situations and challenges that we are facing. If we want a stronger, more resilient and competitive Europe, we must reinforce and relaunch the cohesion policy – both for the present and for the future.

    As many of you know, the mid-term review of the cohesion programme has been a central focus for me during these past months. The Commission’s recent proposals respond directly to many of your concerns. The proposal will bring more flexibility, more incentives and simple rules to allow Member States and the regions to respond to urgent challenges now – not waiting for the next period.

    In this regard, I would like to stress certain important aspects. First, the new priorities identified are affordable housing, water resilience, energy transition, competitiveness and defence.

    Second, since compliance with the review is voluntary, it will be up to each Member State to decide whether and how to update its programmes.

    Third, the cohesion policy funds remain under the shared responsibility of Member States and the regions under shared management.

    My ambition is clear: to modernise, simplify and strengthen cohesion policy so that it is more targeted and responsive, keeping our regions at the centre, and fully respecting the diversity and specific needs of our territories. This ambition is based on four key pillars.

    First, a tailor-made solution for the Member States will include the key reforms and investment, focusing on our joint priorities. They will be designed and implemented in close partnership with the national, regional and local authorities. I would like to underline that the principles of partnership, shared management, multilevel governance and the place-based approach will remain core principles of the cohesion policy.

    Second, we must also make cohesion policy more accessible, with fewer administrative burdens. We will work to reduce complexity and offer a more performance-based delivery mode to increase speed and efficiency, as underlined in your report.

    I will continue to advocate for a strong territorial dimension. This will ensure the cohesion policy addresses the real challenges faced by regions undergoing structural transitions, as your report rightly identifies. This includes our eastern border regions as well as less developed peripheral, remote and rural areas, islands and outermost regions.

    Honourable Members, I remain fully committed to the principles this House defends. The cohesion policy core mission has always been to stimulate growth and development across the EU. This mission remains as vital as ever, and this report marks an important step forward in that journey. Let us work together, speaking with one strong and united voice to make this mission a success.

     
       

     

      Andrey Novakov, on behalf of the PPE Group. – Mr President, Mr Vice-President, dear colleagues, we are having this debate at a very crucial moment. I would like to start by thanking Mr Protas for his work, because he dedicated a lot of his time, and he is a decent man who is doing a good job. In times when such crucial decisions are taken, I think those who contribute have to be mentioned.

    I would like to congratulate Mr Fitto for his efforts to increase the absorption rate of cohesion policy, and to speak to those who don’t believe in the future of cohesion. Because the future of the cohesion policy means the future for Europe. The Founding Fathers put cohesion policy in the Treaty on the Functioning of the Union. So, no cohesion policy means no European Union.

    I hope that with this we are going to put an end to the debate about the future of cohesion. Very rightly so, the Founding Fathers decided to have cohesion policy to balance the imbalances of the single market. So we need regions and cities in.

    I am against – and a lot of other colleagues are against – further centralising cohesion policy and isolating mayors, regions and cities from the governing of this policy. We need more Europe at local level, not less. Every euro spent at local level solving local problems means more Europe tomorrow.

     
       

     

      Sérgio Gonçalves, em nome do Grupo S&D. – Senhor Presidente, Senhor Vice-Presidente Raffaele Fitto, gostaria de começar por agradecer ao relator e a todos os grupos políticos pela postura construtiva demonstrada ao longo das negociações deste relatório. Acredito que o Parlamento Europeu envia hoje uma mensagem clara: a política de coesão deve ser mantida descentralizada, onde as autoridades locais e regionais tenham um papel fundamental, quer na definição das políticas, quer na sua implementação.

    Estamos conscientes dos desafios estruturantes que a Europa enfrenta, como a defesa e a segurança, o alargamento ou as migrações. Mas não podemos desvirtuar o objetivo principal da política de coesão de reduzir as disparidades entre as várias regiões europeias, promovendo o desenvolvimento sustentável e dando respostas a problemas específicos, como é o caso da habitação.

    Este relatório reafirma a necessidade de a Europa se adaptar aos desafios que tem pela frente, assegurando, em simultâneo, o respeito pelo princípio da subsidiariedade que sempre norteou a política de coesão. É nesta Europa que acreditamos, é por esta Europa que continuaremos a lutar.

     
       

     

      Séverine Werbrouck, au nom du groupe PfE. – Monsieur le Président, chers collègues, une fois de plus, nous constatons l’inquiétante dérive fédéraliste de l’Union européenne au travers de ce rapport sur la bien mal nommée «politique de cohésion» – celle-là même qui sert à financer à perte le développement des pays fraîchement intégrés, sur le dos des travailleurs français qui n’ont malheureusement plus le luxe de la charité.

    Dans l’Union, quand une politique dysfonctionne, la solution consiste toujours à augmenter son budget et à élargir son champ d’application. Vous demandez plus de largesse pour utiliser les fonds, vous les superposez – fonds de cohésion, fonds d’urgence, politique sectorielle –, vous éparpillez les objectifs – climatiques, numériques, démographiques et bien d’autres –, vous offrez un statut de quasi-État aux régions et enfin, vous en arrivez à votre serpent de mer habituel, celui de la prétendue nécessité de percevoir des ressources propres, dernier clou dans le cercueil de notre souveraineté.

    Mais ne pourrait-on pas mieux utiliser cet argent? Le rendement annuel surévalué et médiocre est d’environ 4 % sur chaque euro investi, ce qui correspond à des centaines de milliards, alors que des politiques industrielles nationales, que vous interdisez, permettraient, par exemple, des profits bien supérieurs et des résultats plus concrets pour la France.

    Nous continuerons de nous opposer à votre agenda fédéraliste spoliateur pour les Français.

     
       

     

      Antonella Sberna, a nome del gruppo ECR. – Signor Presidente, signor Commissario, onorevoli colleghi, la politica di coesione è il volto visibile dell’Europa nei territori: è quella che riapre un asilo nido in un piccolo comune dove i genitori erano costretti a fare diversi chilometri al giorno per portare i figli a scuola; è quella che permette a un’impresa di digitalizzarsi e restare sul mercato o che finanzia un’unità mobile di assistenza sanitaria che porta cure e visite mediche a chi non ha alternative.

    Eppure, leggendo questa relazione, emerge chiaramente che la distanza tra le intenzioni e la realtà è ancora troppo ampia. Se vogliamo che la coesione resti una leva per la crescita e non solo un capitolo di spesa, dobbiamo cambiare approccio: lo sta facendo il Commissario Fitto con la proposta di modifica di medio termine della politica di coesione, la cui procedura d’urgenza abbiamo appena votato in commissione REGI.

    Il gruppo ECR ha presentato diversi emendamenti che vanno in una direzione molto chiara: anche i comuni devono accedere direttamente ai fondi insieme alle regioni. Un sindaco che vuole riqualificare un edificio scolastico, creare uno spazio per giovani e anziani, non può affrontare ostacoli amministrativi da grande ente. Tutto deve essere più semplice e flessibile. Chi lavora con persone fragili non può impiegare mesi solo per capire come rendicontare un finanziamento.

    Servono regole che si adattino ai territori e non territori che devono seguire regole troppo rigide, perché la politica di coesione serve là dove il mercato non arriva. Io credo in una coesione che non misuri solo la spesa ma il cambiamento che genera; che non si perda nella burocrazia, ma che parli il linguaggio della concretezza, della prossimità e dell’equità.

     
       

     

      Ľubica Karvašová, za skupinu Renew. – Vážená pani predsedajúca, na Deň Európy organizujem podujatie s regiónmi. Volá sa Ruka v ruke za našu Európu. Prečo? Pretože regióny sú miesto, kde začína, ale veľakrát, bohužiaľ, aj končí podpora pre našu Úniu. Počúvam županov, primátorov, ľudí, ktorí v nich žijú. A posolstvo je jasné: chceme byť súčasťou EÚ. Dnes ale napríklad hrozí, že slovenská vláda sa chystá presunúť 400 miliónov EUR z rúk samospráv na svoje priority. Aj keď mnohé projekty sú už pripravené a obce na ne vyčlenili svoje zdroje. To je neprípustné. Kohézna politika v prvom v prvom rade patrí ľuďom v regiónoch na ich dlhodobý rozvoj. Zároveň zohráva kľúčovú úlohu v podpore Európskej únie v regiónoch. Ako tieňová spravodajkyňa som preto presadila dôležitý princíp, aby mali regióny a mestá priamejší prístup k európskym zdrojom, a to vďaka nástrojom ako integrované územné investície. A chcem sa poďakovať spravodajcovi Jacekovi Protasovi za prácu na celej správe, ale aj za to, že sa nám v tejto téme podarilo nájsť nateraz dobrý kompromis.

     
       

     

      Gordan Bosanac, u ime kluba Verts/ALE. – Poštovani predsjedavajući, povjereniče, kohezijska politika je valjda uz politike proširenja jedna od najuspješnijih politika Europske unije i to će ovaj deveti izvještaj također potvrditi, o tome koliko smo smanjili nejednakosti, i regionalne i socijalne, diljem teritorija Europske unije.

    Posebno mi je zanimljivo da se govori o tome kako je ona važna u borbi protiv klimatskih promjena i nastavljamo dalje u tom smjeru, a naravno, mene će posebno zanimati uloga malih gradova i gradova i regija, koji ponovno u ovom devetom izvještaju se naglašava da im je potreban direktan pristup financiranju. Jer znate, često se govori o tom multi level, načinu konzultacija, razgovorima, ali u realnosti stvari su drugačije – konzultacije izostaju, gradovi ostaju izbačeni.

    Vi imate, na primjer, mog premijera moje zemlje koji govori da je on sam donio koheziju i fondove iz Europske unije u Hrvatsku. Kao da gradovi ne provode tu politiku. Vjerojatno ga vi možete, povjereniče, ispraviti.

    Ali ono što je sada pred nama je nova era kohezijske politike i vi ste došli pred ovaj parlament s novim prijedlogom, u vrlo vrlo brzoj proceduri. Maloprije smo na Odboru regija izglasali, nažalost, brzu proceduru i ono što se ja sada brinem da je EPP zajedno s ekstremnom desnicom išao na neki način poniziti ovaj parlament i gurnuti sve ovo kroz vrlo vrlo brzu proceduru, a radi se o temeljnoj politici koja je jedna od najuspješnijih politika Europske unije zajedno s proširenjem.

    Ja ću vas još jednom pozvati, vrijeme je možda da ipak povučemo hitnu proceduru i vratimo budućnost kohezije u redovnu parlamentarnu proceduru.

     
       

     

      Kathleen Funchion, on behalf of The Left Group. – Mr President, thank you, Commissioner, for being here. I firstly want to thank Mr Protas and all his team for their cooperation and work, as in many ways this is the report the European Parliament needs. It is ambitious for a well-budgeted and progressive cohesion policy.

    However, it has a major flaw, which means it fails the litmus test for myself and for my colleagues on the Left. It opens the door to the militarisation of cohesion policy.

    Let’s take a step back and think about what that means. Cohesion policy, the flagship policy of solidarity of the EU, is now on the road, with the Parliament’s blessing, to being just another military policy. This is shameful.

    We are, of course, all aware of the geopolitical realities. But is nothing sacred? Is absolutely everything now just fuel for the fire and drive towards the militarisation agenda of the EU? Our regions, all of them, need investment and need the EU to help protect jobs, develop our environment and support our workers in these very uncertain times.

    Yet this report, which I acknowledge has many strengths, says that spending on military infrastructure, disguised as so-called dual technology, is as important as investing in our workers or our infrastructure.

    Let’s be clear that each cent diverted into military spending is a cent taken away from my constituency of Ireland South, and all of our regions. The EU cohesion policy that funded roads and funded jobs and funded some of our community childcare facilities in Ireland is now being used to feed the war machine. This is a new low and I call upon all MEPs, especially our Irish MEPs, to reject it.

     
       

     

      Irmhild Boßdorf, im Namen der ESN-Fraktion. – Herr Präsident! Kaum Erfolge, Milliarden an deutschen Steuergeldern versickern – das ist die traurige Bilanz der REGI‑Förderung. Weniger Armut, mehr Jobs, weniger Abwanderung aus ländlichen Regionen – Fehlanzeige, trotz 270 Milliarden Euro Förderung. Doch was ist eigentlich mit dem vielen Geld passiert? Ich habe Elisa Ferreira, die letzte REGI‑Kommissarin, danach gefragt. Sie hat zugegeben, dass es nicht um Kosten und Nutzen geht, sondern um Frieden, Freiheit und Wohlstand. Schließlich würden diese Mittel auch helfen, rechtspopulistische Parteien im ländlichen Raum einzudämmen.

    Tatsächlich gab es im vergangenen Jahr eine Studie der Uni Kiel, die nachgewiesen hat, dass ohne die REGI‑Mittel rechte Parteien in entlegenen Regionen zwei bis drei Prozent mehr bekommen hätten. 270 Milliarden umgewidmet in den Kampf gegen Rechts – das ist ungeheuerlich. Machen wir den ländlichen Raum wieder lebenswert. Setzen wir die REGI‑Mittel endlich für unsere Heimat ein.

     
       

     

      Gabriella Gerzsenyi (PPE). – Tisztelt Kollégák! Tisztelt Alelnök Úr! Szeretném megköszönni mindazoknak az eddigi munkáját, akik ezen a jelentésen dolgoztak. Kulcsfontosságú megállapításokat tartalmaz, olyanokat, hogy a beruházások helyben tudnak jobban megvalósulni, hogy a források felhasználási szabályait egyszerűsíteni szükséges, hogy a vállalkozások adminisztratív terheit csökkenteni kell, és hogy ne üres szólam maradjon az az alapelv, hogy senkit nem hagyunk hátra, senkit nem hagyunk magára. Hogy gondolnunk kell a fogyatékossággal élő személyekre, a vidéki területekre, az elnéptelenedő régiókra, hiszen Európa biztonságának záloga, hogy együtt maradunk, együtt vagyunk erősek a globális kihívások közepette. Külön öröm számomra, hogy a helyi és regionális szereplők partnerségének megemlítése és megerősítése a szövegben hangsúlyt kap. Külön öröm ez magyarként, a Tisza képviselőjeként, hiszen mi azon dolgozunk, hogy a helyi és regionális szereplők, a városok, az önkormányzatok szót kaphassanak, hogy meghallgassák őket, hogy bevonják, hogy partnerként kezeljék, és hogy forrásokhoz jussanak. Kormányra kerülése után a Tisza Párt azon fog dolgozni továbbra is, hogy minél több uniós forrást hazahozhasson és biztosíthasson a kedvezményezetteknek, akiknek ezek járnak.

     
       

     

      Marcos Ros Sempere (S&D). – Señor presidente, señor vicepresidente, la política de cohesión es la política social de la Unión Europea, la política que invierte en hospitales, la política que invierte en centros de salud, en escuelas, la política que invierte en carreteras. Es la política que nos ayudará a alcanzar nuestros objetivos a pesar de los retos que tenemos por delante.

    Nos ayudará a completar la transición ecológica, digital y social; a que todas las regiones de la Unión Europea avancen al mismo ritmo. Y lo hará a pesar de las dificultades: la pandemia, la guerra en Europa, la nueva era de Trump.

    Para conseguirlo, necesitamos una política de cohesión que refuerce sus cimientos, que tenga en mente a los ciudadanos, que tenga menos trabas burocráticas, que potencie la participación de regiones y de ciudades. Necesitamos una política de cohesión que invierta en un parque público de viviendas y que esté condicionada a cumplir con el Estado de Derecho. Necesitamos una política de cohesión que tenga presupuestos suficientes para afrontar los nuevos retos.

     
       

     

      Mélanie Disdier (PfE). – Monsieur le Président, la proposition de résolution dont nous débattons ce soir porte sur la cohésion entre tous les territoires d’Europe. Ceci est censé être une bonne chose, mais, malheureusement, même lorsque les propositions se fondent sur les meilleures intentions, la Commission européenne et ses soutiens réussissent à y injecter leur poison.

    C’est ainsi qu’on y retrouve insidieusement la promotion de la conditionnalité des aides. Selon eux, ceux qui s’opposent à la Commission devraient se voir priver des aides auxquelles ils ont droit, alors même qu’ils ont participé à leur financement. Au nom d’un état de droit à géométrie variable, certains voudraient donc faire pression sur un gouvernement démocratiquement élu – les mêmes qui, par ailleurs, sont étrangement silencieux lorsque l’on révèle que la Commission finance des ONG pour faire du lobbying.

    Les Européens méritent mieux que vos discours creux où les bonnes intentions ne sont que de façade – des discours où vous déplorez la diminution des fonds nationaux tout en étant responsables des causes, des discours qui prônent la décentralisation alors que vous voulez contourner la volonté nationale.

    La cohésion de l’Europe ne doit pas être uniquement sociale, elle doit être aussi démocratique.

     
       

     

      Ciaran Mullooly (Renew). – Mr President, I welcome this report and its well-rounded assessment of what cohesion funds and policy actually stand for today. I compliment the rapporteurs.

    The report makes it clear, however, that stark disparities remain among the EU’s regions, especially in rural areas. And in this context, I support the report’s call for the need to address these disparities and simplify access to the funds, Commissioner: simplification.

    As a rapporteur of Parliament’s own-initiative report on the just transition, I am glad to see the report calling for the continuation of that process and ensuring its reinforced financial means for the post-2027 period.

    However, I’m less happy with the announcement in the mid-term review of the cohesion policy of what seems to be the exclusion of my country, Ireland, from the one-year extension of the current year transition fund? I don’t understand it. We must seek adequate flexibility in the capacity for Member States, such as Ireland, to have full access to the extended timeline to provide extra time to spend their allocations.

    As an MEP, I know how vital cohesion policy is for the regions. As we prepare for the next programming period, let’s ensure cohesion policy remains properly funded, simplified and accessible to all the regions.

     
       


     

      Valentina Palmisano (The Left). – Signor Presidente, onorevoli colleghi, per il Movimento Cinque Stelle i fondi di coesione sono quella straordinaria opportunità di investire nelle persone, nella loro istruzione, nella loro crescita professionale, nelle infrastrutture, nella sanità pubblica. In una parola: per ridurre il divario tra territori ricchi e territori poveri.

    Il rapporto che discutiamo oggi introduce in modo ambiguo la possibilità di utilizzare questi fondi per tecnologie militari, nascondendosi dietro la dicitura dual use, doppio uso. Ecco, per fare un esempio, potremmo utilizzare i fondi di coesione per comprare droni da impiegare anche nei teatri di guerra.

    Per noi questo cambiamento di rotta è inaccettabile: la politica di coesione non è nata per sostenere le industrie belliche della difesa ma per dare risposte concrete ai bisogni sociali, economici e ambientali dei territori più fragili.

    E Lei, Commissario Fitto, lo sa bene, visto che proveniamo entrambi da una regione che ha una necessità vitale di questi fondi. Quindi, per noi nessun euro va dirottato verso la logica del riarmo. Difendere la coesione significa difendere la pace, l’equità e il diritto di ogni territorio ad avere un futuro sostenibile.

     
       

     

      Krzysztof Hetman (PPE). – Panie Przewodniczący! Panie Komisarzu! Ile to już razy na tej sali rozmawialiśmy o tym, co trzeba zrobić, jeśli chodzi o politykę spójności? Ile razy omawialiśmy tego typu sprawozdania, z których płynął zawsze ten sam wniosek, który mamy także i tym razem – uelastycznić i uprościć politykę spójności.

    Panie Komisarzu, wielu przed Panem to zapowiadało. Nikomu nie udało się tego zrobić. Może być Pan pierwszy, może stać się Pan bohaterem wszystkich beneficjentów polityki spójności w całej Unii Europejskiej, tych beneficjentów, którzy z coraz mniejszym zainteresowaniem patrzą w stronę polityki spójności, biorąc pod uwagę tę całą biurokrację, którą muszą przebrnąć, aby te pieniądze uzyskać. Szczególnie, gdy porównują to do procedur związanych z krajowymi planami odbudowy.

    Cieszę się, że w sprawozdaniu przygotowanym przez Parlament Europejski, znalazło się miejsce dla obronności, dla wsparcia produktów podwójnego zastosowania na rynek wojskowy i cywilny. To niezwykle ważne w tej chwili.

    I na koniec chciałbym, Panie Komisarzu, odnotować z zadowoleniem, że dostrzega Pan potrzebę pomocy regionom przygranicznym, które odczuwają skutki agresji Rosji na Ukrainę. Jeśli chce Pan rzeczywiście im pomóc, trzeba natychmiast zmienić mapę intensywności pomocy publicznej. Każdy przedsiębiorca ocenia ryzyko. Jeśli będzie mógł uzyskać wsparcie, które to ryzyko zmniejszy, z pewnością tam zainwestuje.

     
       

     

      Sabrina Repp (S&D). – Herr Präsident, Herr Kommissar! Die Kohäsionspolitik ist eine europäische Erfolgsgeschichte – sichtbar, wirksam und unverzichtbar für den Zusammenhalt in unseren Regionen. Wie der neunte Kohäsionsbericht zeigt, entfalten die Investitionen spürbare Wirkung, insbesondere in strukturschwachen Gebieten. Der wiederholte Vorwurf vom Kommissar, dass zu wenig Gelder abgerufen würden, ist irreführend. Die Mittel sind verplant, Projekte sind längst auf dem Weg.

    Kohäsionspolitik und Kohäsionsmittel sind keine Reservekasse für spontane politische Richtungswechsel. Sie dienen einer langfristigen Entwicklung, gerade auch im ländlichen Raum. Doch genau diese Räume drohen nun erneut, ins Hintertreffen zu geraten. Der Gesetzentwurf zur Halbzeitbewertung verlagert Mittel zugunsten urbaner und industrieller Zentren – entgegen dem Versprechen, insbesondere ländliche Räume in den Blick zu nehmen. Wer Kohäsionspolitik ernst nimmt, muss ländliche Räume stärken. Wir sollten die Prinzipien der Kohäsionspolitik wahren, statt die dafür vorgesehenen Gelder gießkannenartig und zweckfremd auszuschütten. Denn Kohäsionspolitik ist das Fundament eines widerstandsfähigen und vor allem demokratischen Europas, das wir gerade mehr denn je brauchen.

     
       

       

    PRESIDENZA: PINA PICIERNO
    Vicepresidente

     
       

     

      Julien Leonardelli (PfE). – Madame la Présidente, Monsieur le Commissaire Fitto, chers collègues, ce neuvième rapport sur la cohésion économique et sociale ne peut passer sous silence l’une des urgences vitales pour nos territoires: l’eau.

    En France, chez moi, en Occitanie, comme dans tant d’autres régions européennes, les sols s’assèchent, les nappes s’épuisent et les conflits d’usage se multiplient. L’agriculture est menacée, la santé publique est fragilisée et nos villages perdent leur souffle, car, oui, l’eau, c’est la vie. Cependant, au lieu d’aider les peuples à faire face à cela, les technocrates imposent une vision centralisée, hors sol et obnubilés par le réchauffement climatique.

    À chaque urgence concrète, ils répondent par des rapports abstraits. Ils freinent les retenues d’eau, ils entravent les initiatives locales et ils accablent ceux qui nourrissent nos nations, nos paysans.

    Cela n’est pas notre Europe. L’Europe que nous voulons, c’est l’Europe des peuples, celle qui défend les nations – les nations gardant la maîtrise de leurs ressources – et où les décisions sont prises au plus près du terrain et non imposées par une bureaucratie lointaine et idéologique.

    L’heure est venue de redonner aux nations leur souveraineté hydraulique, de protéger l’eau comme un bien commun, nécessaire au développement urbain et touristique, indispensable à notre agriculture, à notre industrie et à nos territoires. Sans eau, il n’y aura ni renaissance rurale, ni cohésion, ni avenir pour nos enfants.

     
       


     

      Rasmus Andresen (Verts/ALE). – Frau Präsidentin! Viele Menschen haben Angst in diesen Zeiten. Menschen, die in ländlichen Regionen oder in Grenzregionen leben, haben Angst, ihren Job zu verlieren oder abgehängt zu werden, weil die Bahn nicht mehr fährt oder das Krankenhaus vor Ort schließt. Viele Menschen in Metropolen haben Angst, dass ihre Einkommen durch die hohen Mieten oder hohe Lebenshaltungskosten aufgefressen werden und sie nicht mehr mithalten können. Viele Menschen merken, dass das Leben nicht mehr so einfach ist. Und ich finde, dass die Europäische Union ein klares Versprechen für ein gutes Leben an alle Menschen in der Europäischen Union abgeben muss. Dafür kann die Europäische Union zuständig sein, und die Kohäsionspolitik ist dafür ein sehr zentrales Element.

    Es ist wirklich sehr schön zu hören, dass sich der Kommissionsvizepräsident Fitto hier heute dem Bericht angeschlossen hat, den wir im Parlament verhandelt haben. Aber ich muss auch ganz ehrlich sagen: Das passt nicht zur Realität, wie wir sie wahrnehmen. Die Realität ist, dass die EU‑Kommission weiter Zentralisierungspläne hat, dass die Kohäsionsgelder zukünftig in nationalen Plänen ausgezahlt werden müssen, dass Regionen die Gelder nicht mehr bekommen, dass soziale Organisationen, dass kleine Unternehmen, dass Gewerkschaften in Zukunft ausgeschlossen werden. Und das will ich ganz deutlich sagen: Das darf nicht passieren, und dafür setzen wir uns auch mit diesem Bericht zur Wehr.

    Wir sagen aber auch, dass die Kohäsionspolitik besser werden muss. Es muss einfacher werden, EU‑Fördermittel zu bekommen, es muss weiterhin klare Ziele geben – soziale Ziele und grüne Ziele –, und wir brauchen direkte Instrumente für Städte, damit auch sie besser an EU‑Fördermitteln partizipieren können. Hier im Parlament sind wir uns einig. Jetzt kommt es darauf an, dass Sie handeln und dass Sie im Sommer den richtigen Vorschlag machen und sich an der Position des Parlaments orientieren.

     
       

     

      Έλενα Κουντουρά (The Left). – Κυρία Πρόεδρε, κύριε Επίτροπε, η πολιτική συνοχής έχει βασικό στόχο την επίτευξη ισόρροπης ανάπτυξης σε όλη την Ευρώπη μέσω της κοινωνικής, οικονομικής και εδαφικής σύγκλισης όλων των περιφερειών. Ωστόσο, παρά την πρόοδο, είμαστε ακόμα πολύ μακριά από την επίτευξη αυτών των κρίσιμων στόχων.

    Η πράσινη και η ψηφιακή μετάβαση, η στεγαστική κρίση, η κλιματική κρίση, το υψηλό μεταφορικό και ενεργειακό κόστος δημιουργούν νέες προκλήσεις για τις τοπικές κοινωνίες, ειδικά στα νησιά και στις απομακρυσμένες περιοχές.

    Η ιδέα χρηματοδότησης αμυντικών τεχνολογιών από τα Ταμεία Συνοχής πρέπει να απορριφθεί. Χρειαζόμαστε ενίσχυση της χρηματοδότησης της πολιτικής συνοχής στο νέο Πολυετές Δημοσιονομικό Πλαίσιο. Πρέπει να διασφαλίσουμε ότι θα βασίζεται στις ιδιαίτερες ανάγκες των τοπικών κοινωνιών, στην αρχή της πολυεπίπεδης διακυβέρνησης, στο αποκεντρωμένο μοντέλο προγραμματισμού και στην ενισχυμένη συμμετοχή των περιφερειακών αρχών.

    Τέλος, θα πρέπει να αντιμετωπιστούν οι ενδοπεριφερειακές ανισότητες σε επίπεδο NUTS 3, συνυπολογίζοντας παράγοντες πέραν του περιφερειακού ΑΕΠ, όπως η δημογραφική ερήμωση, η νησιωτικότητα, η περιβαλλοντική επιβάρυνση και η ποιότητα ζωής.

     
       

     

      Isabelle Le Callennec (PPE). – Madame la Présidente, Monsieur le Commissaire Fitto, la politique de cohésion vise la réduction des disparités économiques, sociales et territoriales au sein de l’Union européenne, et pèse pour un tiers de son budget. La politique de cohésion, parfaitement identifiée et incarnation de l’Europe dans nos territoires, est au cœur du projet européen et ne saurait être remise en cause. A contrario, elle doit être renforcée dans ses budgets et améliorée dans sa mise en œuvre.

    Non à une ponction des fonds de cohésion à d’autres fins que celles pour lesquelles ils ont été créés. Oui à un régime spécial et légitime pour les régions ultrapériphériques, non à une recentralisation de la gestion. Oui à une simplification du fonctionnement; non à une utilisation des fonds inadéquate et oui à une meilleure synergie avec les programmes sectoriels de l’Union et le soutien de la BEI dans les investissements d’avenir.

    À vous écouter, Monsieur le Commissaire Fitto, j’ai bon espoir que nous soyons enfin entendus.

     
       

     

      Maravillas Abadía Jover (PPE). – Señora presidenta, señor comisario, la política de cohesión es una palanca esencial de la competitividad europea, pero Europa sufre hoy un déficit de ejecución para su ambición global. La revisión intermedia muestra avances, pero también revela un problema grave: las tasas de absorción son inaceptablemente bajas.

    En España, donde Eurostat confirma una vez más el triste liderazgo del paro en Europa, la ejecución del Fondo Social es del 0 %. Esta parálisis no es un fallo de Bruselas, sino de una gestión centralizada ineficaz y de una burocracia que bloquea inversiones estratégicas. La cohesión no se consigue con papeles, sino invirtiendo en la vida cotidiana: en empleos de calidad, en trenes que circulen con normalidad, en el acceso garantizado al agua, en luz encendida cada día y no en apagones de los cuales aún no hay respuesta.

    Para lograrlo, los entes locales y regionales deben tener un papel protagonista. Son ellos los que mejor conocen las necesidades reales. La política de cohesión debe garantizar una ejecución eficaz, promover inversiones de calado y seguir siendo el motor de una Europa fuerte, solidaria y competitiva.

     
       

     

      Paulo Do Nascimento Cabral (PPE). – Senhora Presidente, Senhor Vice-Presidente Raffaele Fitto, a política de coesão tem de ter um orçamento robusto, e recorda-se que cada euro investido através desta política deverá ser multiplicado por três até 2040. Isto só será possível se envolvermos as autoridades regionais e locais numa abordagem multinível no seu desenho e gestão, respeitando o princípio da subsidiariedade e de parceria.

    Este tem de continuar a ser o principal instrumento no combate às desigualdades regionais. No último quadro, a política de coesão representou 13 % de todo o investimento público na União Europeia e 51 % nos Estados-Membros das regiões menos desenvolvidas. Isto mostra que é a maior política de investimentos da União Europeia e beneficia todos os Estados-Membros, direta ou indiretamente.

    O relatório refere ainda flexibilidade na gestão que defende, quer para os beneficiários, quer para as administrações, e saúdo, portanto, o nosso relator Protas por isto.

    Destaco apenas as regiões ultraperiféricas, com os seus desafios estruturais permanentes, que devem continuar a ter uma abordagem específica, como estabelecido no artigo 349.º do Tratado. Mas são também territórios de elevado potencial estratégico para a União, com condições únicas para liderar processos de inovação territorial.

    É essencial que a Comissão Europeia promova sempre avaliações de impacto nessas regiões de novas propostas legislativas, para evitarmos erros como o ETS e evitarmos sobrecargas regulatórias que possam comprometer o seu desenvolvimento económico e social. E termino com um desafio: os transportes são a principal limitação da competitividade das empresas nas RUP e por isso precisamos urgentemente de um POSEI Transportes.

    (O orador aceita responder a uma pergunta «cartão azul»)

     
       

     

      João Oliveira (The Left), Pergunta segundo o procedimento «cartão azul». – Senhora Presidente, Senhor Deputado Paulo do Nascimento Cabral, os fundos de coesão são um instrumento absolutamente essencial para países como Portugal, para garantir o desenvolvimento e a coesão nas suas três dimensões — económica, social e territorial.

    Ora, este relatório faz uma referência direta à promoção do investimento em projetos e bens de dupla utilização, ou seja, com dimensão militar e civil. E as perguntas que lhe faço são duas: primeiro, se o senhor deputado está de acordo com esta possibilidade de desvio de fundos da coesão para fins militares e, em segundo lugar, como é que o senhor deputado entende que o desvio de fundos de coesão para objetivos militares pode servir o desenvolvimento de países como Portugal.

     
       

     

      Paulo Do Nascimento Cabral (PPE), Resposta segundo o procedimento «cartão azul». – Senhor Deputado, de facto, há esta referência numa lógica facultativa, não é obrigatório — os Estados-Membros podem utilizar esta possibilidade para desenvolver a sua indústria militar, como foi apresentado também aqui na revisão intercalar da política de coesão.

    Neste caso específico, a indústria militar pode ser considerada de várias formas. Falamos também daquilo que mais valoriza o território, desde logo a ocupação do território, a promoção das zonas rurais, e falo também daquilo que tem que ver com a possibilidade que nós temos para desenvolver estes mesmos locais, essas mesmas zonas rurais com alguma indústria. Pode estar diretamente relacionado, ou não, com as questões militares, mas, por exemplo, a agricultura também pode ser considerada segurança e defesa, autonomia alimentar — a autonomia estratégica da União Europeia também tem de ser considerada.

    Não vejo no relatório uma obrigação; vejo uma possibilidade para aumentar a taxa de execução dos fundos de coesão.

     
       

     

      Nikolina Brnjac (PPE). – Poštovana predsjedavajuća, povjereniče, drage kolegice i kolege, deveto izvješće o koheziji potvrđuje ono što znamo iz prakse, a to je da kohezijska politika donosi konkretne i donosi mjerljive rezultate.

    Kao zastupnica iz Republike Hrvatske iz prve ruke svjedočim koliko su upravo kohezijska ulaganja ključna za ravnomjerni razvoj naših regija, za jačanje naših gospodarstava, za prometnu i socijalnu infrastrukturu, ali koliko su važna i za očuvanje radnih mjesta. No, pred nama su i dalje važni i ozbiljni izazovi: od demografskog pada i administrativnih prepreka do niske apsorpcije sredstava.

    Kao koordinatorica EPP-a u Odboru za stambenu krizu, posebno pozdravljam što izvješće prepoznaje stratešku važnost ulaganja u priuštivo stanovanje. To je temelj socijalne kohezije, zadržavanje mladih i obitelji i radne snage u našim regijama te borbe protiv depopulacije.

    Za Hrvatsku i druge članice, manje države članice, snažna, fleksibilna i pojednostavljena kohezijska politika i nakon 2027. godine mora ostati prioritet. Europska unija mora ostati savez jednakih prilika za sve.

     
       

       

    Procedura “catch-the-eye”

     
       

     

      Juan Fernando López Aguilar (S&D). – Señora presidenta, señor vicepresidente Fitto, lo ha escuchado usted claramente: una mayoría de este Parlamento Europeo concuerda en que la política de cohesión es la razón de ser de Europa, correctora de desigualdades –también territoriales– en origen.

    Tiene que ser particularmente sensible con regiones expuestas a conflictos en su frontera inmediata –como es el caso de la guerra de Ucrania– y en regiones particularmente expuestas por ser la primera línea ante el hecho migratorio –como es el caso de las regiones ultraperiféricas–. Pero, además de eso, este Parlamento subraya que sí es posible simplificar la gestión de los fondos de cohesión y los fondos de solidaridad distintivos de la Unión Europea sin que ello perjudique su gestión compartida y su gobernanza multinivel, y que –por tanto– le permita rendir cuentas asimismo en su gestión regional.

    Se presenta, además, un objetivo muy importante: que tengan financiación suficiente para atender las nuevas prioridades, las emergencias y las catástrofes climáticas –cada vez más frecuentes– y, sobre todo, la extrapolación de la política social europea a la política de vivienda, que es el gran desafío de la solidaridad intergeneracional en la Unión Europea.

     
       

     

      João Oliveira (The Left). – Senhora Presidente, a política de coesão é, de facto, um instrumento absolutamente essencial para combater desigualdades económicas, sociais e territoriais, e garantir que todos os países possam, efetivamente, ter a possibilidade de estar no mesmo patamar de desenvolvimento.

    Mas, para isso, é absolutamente essencial aumentar o investimento dos fundos de coesão e garantir que eles não sejam negligenciados. E, também, não associar a política de coesão a um modelo de financiamento baseado em objetivos ou resultados, como muitas vezes a Comissão Europeia procura querer, porque isso é, naturalmente, um elemento de limitação na possibilidade da utilização mais adequada dos fundos de coesão à realidade e à circunstância de cada país.

    É também absolutamente essencial garantir uma governação descentralizada, com o nível adequado de articulação entre governos nacionais, regionais e locais, e assegurando que as estratégias locais de desenvolvimento sejam de responsabilidade partilhada e que não sejam impostas a cada região e a cada localidade.

    Por fim, é absolutamente essencial garantir que o próximo quadro financeiro plurianual tenha um nível adequado de investimento na política de coesão, garantindo que o princípio da coesão seja um princípio horizontal que atravessa todas as políticas setoriais como critério de decisão para que esses objetivos de coesão possam ser alcançados.

     
       


     

      Maria Grapini (S&D). – Doamnă președintă, domnule comisar, stimați colegi, politica de coeziune este esența Uniunii Europene. Nu o să putem, domnule comisar, să consolidăm și să fie puternică piața unică în raport cu piața globală dacă nu vom rezolva politica de coeziune.

    Și cred că s-au făcut câteva greșeli: nu analizăm prea des efectele, pentru că dacă nu reușim să avem coeziune socială, să eliminăm disparitățile sociale, uitați-vă între est și vest, uitați-vă între regiunile periferice, între rural și urban. Deci, dacă nu reușim să facem aceste lucruri, înseamnă că nu avem politică de coeziune.

    Apoi, ca să poată să aibă acces la bani, și cei din rural, și întreprinderile mici și mijlocii și zonele îndepărtate, trebuie foarte multă flexibilitate, foarte mult pus accent pe rezultate, simplificare, descentralizare, foarte important. Și sigur că trebuie, așa cum s-a și spus aici, trebuie să avem grijă acum ca țările care sunt în regiunile vecine cu Rusia, cu Bielorusia, cu Ucraina, cum este și țara mea, România, să aibă fonduri alocate, pentru că aceste state au preluat cetățeni ucraineni, copii ucraineni și nu putem să susținem singuri.

    Politica de coeziune este cea care va da viitorul Uniunii Europene!

     
       

       

    (Fine della procedura “catch the eye”)

     
       

     

      Raffaele Fitto, Executive Vice-President of the Commission. – Madam President, Members, thank you for this debate. Let me begin by thanking you all for your valuable contributions. I have listened closely to your comments and concerns. Your insights this evening confirm a strong, shared commitment to the future of cohesion policy, one that is modern, responsive and grounded in the real needs of our regions. The status quo is not an option.

    You spoke about the role of the regions, the role of the cities, less bureaucracy, defending the principles of cohesion, defending the financial dimension, the simplification; these are the most important issues that you raised and I agree with you, but it’s important to underline some points. For example, we cannot defend the cohesion policy as it is if we want to give a future to this policy. About defence, for example, you know that – some of you know that and said that –defence now is a new opportunity that the Commission gives with the mid-term review. Well, you know that the current programmes are already financing some projects on defence. The mid-term review gives the possibility on a voluntary basis to use all of the five priorities, or some of the priorities, or, if the Member States can simply decide to not use the mid-term review, solve the problem. There is not an obligatory decision of the European Commission. There is not a transfer of money from cohesion. I want to be clear, it’s important to be clear about this point. This is a voluntary basis. And now we have these opportunities because in the current programmes, without a mid-term review, there is the opportunity, the possibility, to use the resources of cohesion for defence. We have some clear examples in this way. It’s important to have the right approach between us, because I think that for the mid-term review to be successful, we must act swiftly and a modernised policy framework needs to be in place as soon as possible so that Member States and the regions can choose which investments should be directed towards our new and emerging priorities without delay. At the same time, we must remain attentive to the ongoing challenges that many EU regions continue to face – challenges clearly highlighted in the Cohesion Report. We also have a duty to ensure that every euro we spend delivers maximum impact.

    Honourable Members, cohesion policy has proven its value time and again. Its core principles – partnership, shared management, multi-level governance, place-based approach – are not just a technical terms, they are what makes this policy work, what brings Europe closer to its citizens. With a renewed vision and determination, we can build on these foundations and shape a cohesion policy fit for the future. I will continue to engage closely with this House, with the Member States, with the regions, with the mayors, and with all authorities in the weeks and months ahead to listen, to learn, to create tailored solutions for every region. This has been and will always remain my approach. T.

    hank you once again for this valuable exchange and for your continued commitment to Europe’s regions and citizens. And thank you again, Mr Protas, for this report. I think that this is a very positive basis for our work for the next weeks or the next months. It is not simple, the debate for the future, but I think that it’s important to build one position between us. I think that there isn’t a different approach. Now we need to have only one voice, not to defend cohesion policy, but to relaunch and modernised cohesion policy. These are our challenges and I count on you about this future and for the next steps that together we will have for these important challenges.

     
       

     

      Jacek Protas, Sprawozdawca. – Pani Przewodnicząca! Szanowni Państwo! Drogie Koleżanki i Koledzy! Bardzo serdecznie dziękuję zarówno za tą dzisiejszą debatę i za ciepłe słowa skierowane również do mnie, ale bardzo też serdecznie dziękuję za prace nad tym ważnym dokumentem, który – tak jak powiedziałem – moim zdaniem będzie naszym mocnym stanowiskiem, mocnym stanowiskiem Parlamentu Europejskiego w dalszej debacie, tak jak powiedział pan komisarz, na temat modernizacji polityki spójności.

    Pozwólcie państwo, że podobnie jak pan komisarz, odniosę się do produktów podwójnego zastosowania, bo wydaje mi się, że nie wszyscy rozumieją, o co chodzi. Otóż, po pierwsze, rzeczywiście to nie jest obligatoryjne podejście. Tylko te regiony, te państwa, które czują taką potrzebę, żeby przesuwać środki na niektóre działania, mogą to uczynić. Komisja Europejska zarówno w czasie przeglądu śródokresowego, jak i – mam nadzieję – w przyszłości pozwoli na takie działania. I nie jest to przesuwanie środków na wspieranie zakupów zbrojeniowych, jak tutaj też słyszałem. W żadnym wypadku.

    Ja, szanowni państwo, mieszkam 30 kilometrów od granicy z Rosją, 30 kilometrów od granicy z agresorem, z wrogim państwem. I chciałbym, żeby w moim regionie można było budować nowe hale sportowe ze schronem pod tą halą, żeby można było modernizować wskazane szpitale, które w razie zagrożenia wojennego będą również pełniły rolę wsparcia dla wojska. Chciałbym móc wzmacniać mosty, modernizować drogi dojazdowe czy budować je w takich parametrach, żeby mogły również służyć celom obronnym. I to nie jest militaryzowanie polityki spójności, ale danie możliwości tym regionom, które czują taką potrzebę, realizowania tych celów.

    Szanowni państwo, panie komisarzu, bardzo serdecznie dziękuję za te dzisiejsze wystąpienia. Dziękuję za współpracę. Mam głębokie przekonanie, że ten dokument, który w czwartek przegłosujemy, również pomoże panu, bowiem znamy pana historię zawodową. Wiemy, że jest pan samorządowcem. Był pan szefem regionu, ministrem odpowiedzialnym również za politykę regionalną, więc wiemy, że rozumie pan potrzeby regionu, potrzeby społeczności lokalnych. Ale u nas w Polsce się mówi, że diabeł tkwi w szczegółach. Co do głównych założeń polityki spójności zgadzamy się również, że trzeba iść w kierunku modernizacji, ewolucji, nie rewolucji. Ale będziemy dyskutować na temat tego, jak to w praktyce ma wyglądać i jak Komisja Europejska to widzi. Mam nadzieję, że wspólnie osiągniemy sukces.

     
       

     

      Presidente. – La discussione è chiusa.

    La votazione si svolgerà giovedì.

     

    23. One-minute speeches on matters of political importance




     

      Rody Tolassy (PfE). – Madame la Présidente, chers collègues, voici le vrai visage du pacte vert quand il affecte les Outre-mer: un cataclysme économique déguisé en vertu écologique.

    Costa Croisières quitte la Guadeloupe, non pas parce que notre territoire est moins attractif ou compétent, mais parce que Bruxelles impose aux régions ultrapériphériques (RUP) une transition énergétique restrictive et destructrice. Résultat: 15 000 à 20 000 passagers en moins, des dockers au chômage, des transporteurs en détresse, un port affaibli, et ce n’est que le début. L’augmentation du prix des billets d’avion frappait déjà nos familles, maintenant ce sont nos entreprises ainsi que notre tourisme qui sont touchés. Ce n’est plus une alerte, c’est un signal d’alarme.

    Je vous pose donc une question simple: que compte faire la Commission pour compenser concrètement ces pertes? Mieux encore, arrêtez de faire les poches de nos compatriotes. Ainsi, je vous demande la suppression du dispositif d’échange de quotas d’émission dans les RUP sur la base de l’article 349 du traité FUE.

     
       

     

      Daniel Buda (PPE). – Doamnă președintă, stimați colegi, în România s-a încheiat primul tur al alegerilor prezidențiale. Mi-aș fi dorit ca domnul Crin Antonescu, un lider cu viziune, cu experiență, capabil să fie un pilon de stabilitate pe scena politică europeană, să fi ajuns în turul al doilea. Din păcate, la doar câteva zeci de mii de voturi distanță, alegătorii au ales alt drum, plasând România într-un moment de răscruce.

    Privind înainte, îmi doresc ca țara noastră să-și continue parcursul european și să rămână un punct de stabilitate într-o regiune marcată de războiul din Ucraina.

    Astăzi, mai mult ca oricând, Europa are nevoie de o Românie puternică, responsabilă, fidelă valorilor democratice, o Românie care să nu cadă pradă extremismului sau populismului.

    O Europă puternică este o Europă unită, unită în jurul valorilor care garantează pacea, libertatea, stabilitatea și prosperitatea.

    Tocmai de aceea, România trebuie să aleagă candidatul pro-european Nicușor Dan, rămas în cursă și să spună nu izolării și nu întoarcerii în trecut.

     
       

     

      Ciaran Mullooly (Renew). – Madam President, the housing crisis is crippling thousands of families and young couples all over Europe and especially in Ireland. I went to the town of Naas in County Kildare, a town which had 5 000 people in 1971, now a car-based town with 30 000 people in housing estates, and another 4 500 waiting for homes. A town that’s been forgotten. Planning is terrible. The demand is just incredible.

    I spoke to Angela Garrett. She has two children, one aged 32, who has autism, the other 28. They’re still living at home. She tells me the average price of a family home in this town is half a million euro – five hundred thousand euro! It is out of control. And what does our government do in Ireland? We put in charge a man who’s paid a salary of almost half a million euro in another job to come in to take over this job.

    We lack ideas. We lack strong thinking. We lack an ability to consider the people who are involved here, the people who are suffering because of the lack of a home. It is an absolute disgrace. We need, throughout Europe and in Ireland, to focus on real progress for families like these.

     
       

     

      Nicolae Ştefănuță (Verts/ALE). – Doamnă președintă, România are de ales. Între Europa și extrema dreaptă. Între viitor și frică.

    Nu mai e despre „îmi place de tine, tu mă placi pe mine”. Nu mai e nici măcar despre negocieri banale, despre funcții, ministere și mai știu eu ce.

    Este despre direcția în care merge România, despre ce alegem să fim: o țară europeană, liberă, demnă, sau o țară închisă, izolată, vulnerabilă, slabă.

    Fac un apel sincer și direct către toate partidele europene prezente în sală și cele de acasă: să ne unim în sprijinul pentru turul doi, pentru democrație. E momentul să fim împreună. Nu pentru un om, ci pentru un drum. Pentru drumul european al României.

    Tinerii din România nu vor să trăiască în ură, nu vor să aibă un președinte care ne izolează, care alimentează ura, care ne scoate din Europa.

    Pe 18 mai avem o singură opțiune cu toții: să ieșim la vot și să încurajăm unitatea europeană a României.

     
       

     

      Anthony Smith (The Left). – Madame la Présidente, chers collègues, les secteurs stratégiques de l’économie comme l’industrie de l’acier doivent devenir des secteurs publics sous contrôle des États. Oui, nous n’hésitons pas à le dire dans cet hémicycle, qui continue de faire du néolibéralisme moribond son étendard.

    Depuis des mois, les syndicats européens et français du secteur sonnent l’alarme sans réponse ni action de la Commission.

    En France, c’est la direction d’ArcelorMittal qui a annoncé, fin avril, la suppression de centaines de postes qui s’ajoute aux annonces précédentes, laissant des milliers de familles sur le carreau. C’est toute la filière de l’acier en France et en Europe qui est menacée, alors qu’elle a été gavée d’argent public sans contrepartie. Au lendemain de cette annonce, le commissaire européen français Séjourné a même osé exprimer son incompréhension face à la décision du géant de la sidérurgie; mais de qui se moque-t-on?

    La Macronie applique ici et au sein de la Commission le laissez-faire capitaliste pour permettre aux industriels d’accumuler toujours plus. Avec La France insoumise, nous le répétons sans faiblir: nationalisez ArcelorMittal!

     
       

     

      Tomasz Froelich (ESN). – Frau Präsidentin! Die Opposition bespitzeln, die Opposition kriminalisieren, die AfD verbieten? Das sind Zustände wie in einem autoritären Staat – das sind Zustände in Deutschland. Wer so was tut, rettet nicht die Demokratie. Wer so was tut, der schafft die Demokratie ab, weil er Angst vor ihr hat, weil er zu schwach für sie ist. Veranlasst hat all dies Nancy Faeser, scheidende Innenministerin, gesichert linksextrem, Autorin des Antifa‑Magazins.

    Das Gutachten gegen die AfD, auf das sie sich beruft, bleibt geheim. Es bleibt geheim, weil es harmlos ist. Der Presse wurde es dennoch gesteckt. Weil wir das deutsche Volk erhalten wollen, sollen wir rechtsextrem sein? Lächerlich! Marco Rubio hat völlig recht – das ist keine Demokratie, das ist verkappte Tyrannei. Und dann erdreistet sich diese Bundesregierung auch noch, dem Rest der Welt Demokratiedefizite vorzuwerfen. Einfach nur frech! Wer keine Argumente hat, muss auf Repression setzen, aber ich verspreche Ihnen: Wir halten das aus, denn unsere Überzeugungen sind stärker als diese Arroganz der Macht.

     
       



     

      Maria Grapini (S&D). – Doamnă președintă, domnule comisar, am ales să vorbesc astăzi despre criza de locuințe pentru tineri. O locuință decentă este o condiție esențială pentru aspirațiile tinerilor și există studii făcute de Banca Mondială, există studii, are Comisia Europeană rezultatele acestor studii?

    Este clar că sunt mai ales state cum ar fi Grecia, Bulgaria, România, chiar și Germania, unde criza locuințelor a crescut. Există însă și soluții.

    Am vorbit mai devreme de politica de coeziune. Ține și acest lucru de politica de coeziune. Aceste rapoarte și analize dau și niște recomandări. De exemplu, să se acorde teren din spațiile publice neutilizate, tinerilor. Să aibă acces, așa cum am spus mai devreme, la finanțare, de exemplu la Banca Europeană de Investiții, simplificarea procedurilor prin care să se primească, dar și construcția de locuințe sociale.

    Cum facem să asigurăm aceste lucruri? Pentru că tot rapoartele arată că există o legătură între productivitate, competitivitate, dar chiar și legătură cu sănătatea mintală, nu mai spun de demografie.

    Deci trebuie să găsim soluții pentru ca tinerii să aibă acces la locuințe.

     
       

     

      Tiago Moreira de Sá (PfE). – Senhora Presidente, quando James Madison elaborou as primeiras 10 emendas à Constituição dos Estados Unidos, que ficaram conhecidas como «Bill of Rights», fê-lo para garantir que, mesmo numa república acabada de nascer de uma guerra, a liberdade era constitucionalmente protegida.

    O acordo «Pandemic», que deverá ser aprovado na próxima sessão da World Health Assembly, em Genebra, evoca intenções nobres, como proteger a saúde global. Está bem, mas deve ser encarado com cautelas e máxima vigilância. Há quatro áreas onde essa vigilância é absolutamente crítica — as liberdades individuais, a soberania nacional, a confidencialidade dos dados genéticos e a liberdade de expressão.

    A responsabilidade histórica que temos hoje é a mesma que Madison teve no seu tempo: assegurar que a prevenção de um mal nunca se faça à custa da liberdade, seja dos indivíduos, seja, neste caso também, dos Estados. Porque a liberdade não é o preço da segurança; é a sua condição moral.

     
       

     

      Cristian Terheş (ECR). – Doamnă președintă, dragi colegi, am atras atenția din toamna lui 2019 că programul utopic Green Deal, promovat de Ursula von der Leyen, va conduce la o criză energetică în Europa, cu efect dezastruos asupra populației și economiilor europene.

    Pe de o parte, aceste politici au condus deja la creșterea consumului de energie, pe de altă parte, în loc să diversifice sursele și să asigure independența energetică, UE a impus statelor să-și închidă surse de energie, cum sunt termocentralele pe cărbune, ceea ce a redus producția de energie.

    Efectul a fost că prețul energiei a crescut peste tot în UE, cu efect devastator, în special asupra pensionarilor și celor mai săraci europeni. Acest lucru a afectat și economia, făcând bunurile și serviciile europene mai scumpe și mai greu de vândut pe piața mondială.

    Această politică centralizată de tip comunist, care pornește de la premisa că cei de la Bruxelles știu mai bine decât guvernele statelor membre UE ce e mai bine pentru țările lor, și-a dovedit eșecul și trebuie să înceteze.

    Pentru a gestiona cu adevărat criza energetică, statele membre trebuie să-și definească propriul mix energetic. Viitorul nu poate fi dictat de dogme verzi impuse de birocrații de la Bruxelles, ci de soluții funcționale specifice fiecărei țări.

     
       

     

      Michael McNamara (Renew).(start of speech off mic) … I suppose the instability and unprecedented level of conflict in the world is such that when two of the world’s greatest powers, two of the world’s most populous nations, both nuclear armed, are squaring up and threatening each other, it barely receives a word here in the European Union, or indeed from this Parliament. I would like to take this opportunity to express my condolences to the families of those slaughtered so savagely in Kashmir recently. But I think it is also important for this Parliament to call for restraint and dialogue.

    The speech of Pakistan’s army chief, General Munir, to representatives of the diaspora a couple of days before the attack is viewed as inflammatory in India. However, there is no evidence of any link between Pakistan and the heinous attack and, in the absence of such evidence, any attack by India and Pakistan, which is itself a frequent victim of terrorist attacks, would be unjustified.

    However, one cannot help but reflect on the benefits of democratically elected leaders speaking on behalf of their country rather than military men. In that regard, one might recall that when the Great Leader Jinnah outlined his vision of Pakistan in 1947, he spoke of no distinction between one community and another.

     
       

     

      Jaume Asens Llodrà (Verts/ALE). – Señora presidenta, con el genocidio en Gaza, la historia nos mira y nos va a juzgar.

    Albert Camus decía que no hay mejor combate –combate más fuerte– que el del ser humano que se enfrenta al mundo con las manos vacías, pero con la dignidad intacta. Israel ha atacado un buque de ayuda humanitaria: Flotilla por la Libertad. Se trata de un crimen de guerra gravísimo que nos recuerda esa distinción moral, la de quienes tienen las manos limpias porque ayudan a las víctimas, y las de los que las tienen manchadas de sangre porque ayudan a los verdugos y callan ante esos crímenes.

    Ningún líder europeo ha dicho nada. ¿Qué habría sucedido si hubiera sido Putin –y no Netanyahu– quien hubiera intentado hundir un barco europeo?

    El ministro español Albares ha condenado hoy el ataque al aeropuerto sin víctimas, pero no ha dicho nada del hundimiento del barco ni de los más de mil asesinados –cooperantes, médicos y enfermeras– que intentan salvar vidas. Esas muertes son una mancha indeleble en la conciencia de los líderes europeos que siguen cooperando con el genocidio en Gaza.

    Nuestra obligación como ciudadanos es movilizarnos como garantes del Derecho internacional y recordar que, cuando la barbarie se normaliza, la desobediencia es una obligación moral.

     
       


     

      Γεώργιος Αυτιάς (PPE). – Κυρία Πρόεδρε, κύριε Επίτροπε, η άσκηση οικονομικής πολιτικής, πέραν της ανταγωνιστικότητας και της σταθερότητας —και το ξέρετε πολύ καλά αυτό, γιατί η πατρίδα μου πέρασε από τρία μνημόνια— πρέπει να έχει και έντονο κοινωνικό χαρακτήρα, δηλαδή στήριξη μισθών και συντάξεων, στήριξη φορολογικών ελαφρύνσεων, λύση δημογραφικού, στέγη. Το ξέρετε πολύ καλά, κύριε Επίτροπε, το θέμα, και εσείς, αξιότιμοι συνάδελφοι. Μείωση της ανεργίας και φθηνή ενέργεια.

    Προς αυτή την κατεύθυνση, η χώρα μου κινείται με ταχύτατο ρυθμό, αποπληρώνει δάνεια δεκαετίες μπροστά, έχει άριστες κριτικές από οίκους αξιολόγησης και, παράλληλα, πλεόνασμα. Αυτό το πλεόνασμα, λοιπόν, επιστρέφεται στην κοινωνία.

    Να ξέρετε, κύριε Επίτροπε, ότι αυτός ο βηματισμός θα συνεχιστεί και το επόμενο χρονικό διάστημα και προς αυτή την κατεύθυνση σας ενημερώνω συνεχώς.

     
       


     

      Anne-Sophie Frigout (PfE). – Madame la Présidente, chers collègues, enfin, après avoir mené l’industrie automobile au bord de la mort, la Commission européenne revient à la raison et nous propose d’offrir un court répit aux constructeurs automobiles, avec davantage de flexibilité dans l’application des objectifs d’émissions de CO2.

    Cela fait des années que nous alertons sur les conséquences désastreuses de l’écologie punitive imposée par les technocrates bruxellois. Sans cet assouplissement, nos constructeurs auraient dû payer jusqu’à 15 milliards d’euros d’amende dès cet automne.

    Ce revirement partiel est une première victoire, mais le combat continue. Il est essentiel de revenir sur la fin des moteurs thermiques neufs en 2035, une décision absurde et complètement hors sol qui menace nos emplois et le pouvoir d’achat des Européens.

    Avec notre groupe des Patriotes pour l’Europe, nous avons déposé des amendements de bon sens pour défendre notre industrie et une transition écologique réaliste. Ils seront, je l’espère, votés par tous les collègues qui déplorent comme nous cette désastreuse politique de sabotage industriel.

    Quoi qu’il en soit, nous ne lâcherons rien et nous ne laisserons pas Bruxelles sacrifier l’Europe qui travaille.

     
       




     

      Mélanie Disdier (PfE). – Madame la Présidente, chers collègues, dans mon département du Nord, ArcelorMittal, une industrie structurante du secteur métallurgique, est contrainte de licencier des salariés par centaines. À cause d’une concurrence déloyale et des prix de l’énergie exorbitants, ce sont plus de 600 salariés et, à travers eux, plus de 600 familles qui vont se retrouver en difficulté. Je peux déjà voir venir le programme d’aide de l’Union pour aider face aux désastres de la mondialisation et donc poser un nouveau pansement sur une jambe de bois, mais les Français en ont marre, les Européens en ont marre!

    Ce dont l’Europe a besoin, ce n’est pas de cacher la misère, mais de créer les conditions de son éradication. C’est en se donnant les moyens de produire des richesses que l’Europe pourra se redresser. Si vous vous contentez de nier les conséquences désastreuses de votre politique, vous n’arriverez à rien et l’Europe continuera de décliner. Si, à l’inverse, vous regardez la vérité en face et qu’enfin vous décidez de sortir de votre idéologie régressive et criante, peut-être que nous pourrons enfin lancer le chantier du redressement économique de l’Europe.

     
       

     

      Şerban Dimitrie Sturdza (ECR). – Madame la Présidente, chers collègues, après l’annulation abusive du premier tour des élections présidentielles roumaines de décembre 2024, le premier tour a été de nouveau organisé hier.

    L’humiliation et la trahison du peuple roumain par l’annulation de son vote, simplement parce qu’il avait exprimé une préférence européenne, mais souverainiste, ont provoqué une vague de colère sociétale sans précédent contre le parti globaliste au pouvoir en Roumanie depuis 35 ans. Parce que le vote en faveur de Călin Georgescu a été annulé et qu’il lui a été interdit de se présenter à nouveau, les Roumains ont voté massivement pour George Simion.

    Le message des Roumains est extrêmement clair: ils exigent d’être respectés tant par les dirigeants de Bruxelles que par leurs représentants nationaux et rejettent de nombreuses décisions absurdes, contraires à leurs intérêts, à leurs traditions, à leur foi et à leur identité, imposées de manière autoritaire. Les Roumains ont commencé à prendre leur pays en main.

    Nous sommes un peuple européen avec des aspirations dignes de la grande famille européenne, et en même temps un peuple conservateur, fier.

     
       

     

      Δημήτρης Τσιόδρας (PPE). – Κυρία Πρόεδρε, τα νέα γεωπολιτικά δεδομένα ωθούν την Ευρώπη από καταναλωτής ασφάλειας να πάρει τις τύχες στα χέρια της και να οικοδομήσει κοινή άμυνα. Κοινή άμυνα, όμως, δεν σημαίνει μόνο κοινή παραγωγή αμυντικών συστημάτων. Σημαίνει κοινή πολιτική άμυνας. Και, σε αυτή την πολιτική, προφανώς χωρούν και τρίτες χώρες. Όμως, χώρες οι οποίες μοιράζονται κοινές αρχές και κοινές αξίες. Όχι χώρες, όπως η Τουρκία, που κατέχουν παράνομα ευρωπαϊκό έδαφος στην Κύπρο, απειλούν χώρες μέλη και έχουν βρεθεί απέναντι στην Ευρώπη σε μια σειρά από περιοχές, όπως στη Μέση Ανατολή, στη Λιβύη και στον Καύκασο.

    Η διάθεση εθνικών κονδυλίων για άμυνα αποτελεί, προφανώς, απόφαση κάθε χώρας, όμως δεν μπορεί να μη λαμβάνονται υπόψη οι ευρωπαϊκές αρχές. Διαφορετικά, δεν θα διαμορφώσουμε κοινή πολιτική, που είναι ακριβώς αυτό που χρειαζόμαστε. Οι Ευρωπαίοι πολίτες θα αισθάνονται ασφαλείς όταν νιώθουν ότι τα σύνορα της χώρας τους είναι ευρωπαϊκά σύνορα και ότι η απειλή εναντίον ενός είναι απειλή εναντίον όλων.

     
       

     

      Ştefan Muşoiu (S&D). – Doamnă președintă, dragi colegi, am fost invitat recent să le explic unor elevi de clasa a doua ai unei școli din Slobozia, orașul din România din care provin și eu, despre arhitectura Uniunii Europene și despre rolul său decizional reflectat în viața cetățenilor ei, indiferent de vârsta, sexul, statutul sau preocupările lor.

    Bucuria mi-a fost răsplătită de interesul viu al școlarilor și de numeroasele cunoștințe pe care le au despre Uniunea Europeană. La rândul lor, copiii mi-au cerut să dau citire aici, în plen, scrisorii pe care mi-au adresat-o, astfel încât dezvoltarea Uniunii Europene și un viitor mai bun și mai sigur să se edifice și pe interesele lor.

    Vă citez: „Vă rugăm să aveți grijă de planeta noastră. Vrem o Europă cu aer și ape curate, cu păduri verzi și cu animale protejate. Ne dorim să trăim în pace, să mergem în siguranță la școală și să ne facem prieteni în toate colțurile continentului. Vrem ca toți copiii europeni să aibă acces la educație, sănătate, să nu sufere de foame sau să fie speriați de război. Vă rugăm să ne ascultați rugămințile, pentru că noi suntem viitorul Europei. Dacă ne ajutați să creștem într-o lume mai bună, promitem că vom avea grijă de ea și de ceilalți când vom fi și noi mari. Vă mulțumim!” Am încheiat citatul.

    Întrebarea mea este: le lăsăm o lume mai bună?

     
       


     

      Presidente. – La discussione è chiusa.

    La prossima seduta si svolgerà domani 6 maggio 2025 ore 9:00.

     

    24. Agenda of the next sitting

     

      Presidente. – L’ordine del giorno è stato pubblicato ed è disponibile sul sito internet del Parlamento europeo.

     

    25. Approval of the minutes of the sitting

     

      Presidente. – Il processo verbale della seduta sarà sottoposto all’approvazione del Parlamento domani.

    La seduta è tolta.

     

    26. Closure of the sitting

       

    (La seduta è tolta alle 22.05)

     

    MIL OSI Europe News

  • MIL-OSI Europe: Written question – ETS maritime surcharges – E-001705/2025

    Source: European Parliament

    Question for written answer  E-001705/2025
    to the Commission
    Rule 144
    Sérgio Gonçalves (S&D), Johan Danielsson (S&D), Daniel Attard (S&D)

    An analysis by the European Federation for Transport and Environment has raised concerns that major European container shipping companies may be imposing Emissions Trading System (ETS) surcharges on their customers that exceed the actual costs incurred under the EU ETS[1]. This practice could lead to significant windfall profits for these companies, with clients and final consumers bearing the inflated costs.

    In the light of these findings, can the Commission clarify:

    • 1.What measures are in place or under consideration to ensure that shipping companies’ ETS surcharges accurately reflect their compliance costs, thereby preventing undue financial burdens on consumers?
    • 2.How does the Commission assess the potential impact of such pricing strategies on the overall effectiveness of the EU ETS in reducing maritime emissions?
    • 3.Is the Commission exploring or considering regulatory measures to prevent shipping companies from generating windfall profits at the expense of consumers through ETS-related surcharges?

    Submitted: 29.4.2025

    • [1] https://www.transportenvironment.org/uploads/files/Briefing_ETS_WindfallProfits-1.pdf.
    Last updated: 6 May 2025

    MIL OSI Europe News

  • MIL-OSI: Genie Energy Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Newark, NJ, May 06, 2025 (GLOBE NEWSWIRE) — Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and renewable energy solutions provider, today announced results for the first quarter of 2025. 

    Michael Stein, Chief Executive Officer of Genie Energy, commented: 

    “Our first quarter featured strong operational and financial results, highlighted by robust increases in revenue, profitability and cash generation compared to the year ago quarter.

    “At GRE, the significant investments we made in 2024 to expand our customer base drove a year-over-year increase of over 48,000 net new meters. We ended the quarter with approximately 413,000 meters served comprising 402,000 RCEs. Customer base growth in combination with a stable pricing environment enabled GRE to generate an 18% increase in both revenue and income from operations compared to the year ago quarter.

    “At GREW, we continue to advance our utility-scale project pipeline including the construction of our first community solar project in Lansing, New York. The Lansing array is on track for completion as early as the third quarter of this year. We expect it will become EBITDA accretive immediately once online.”

    “During the first quarter, we again returned value directly to our stockholders, repurchasing approximately 127,000 shares and paying our regular quarterly dividend of $0.075 per share.”

    First Quarter 2025 Highlights
    (Unless otherwise noted, 1Q25 results are compared to 1Q24, and results of Genie Retail Energy International (GREI) are included in discontinued operations for all periods.) 

      Revenue increased 14.3% to $136.8 million from $119.7 million;
      Gross profit increased 10.6% to $37.4 million from $33.8 million. Gross margin decreased to 27.3% from 28.2%;
      Income from operations increased to $12.8 million from $9.8 million;
      Adjusted EBITDA1 increased to $14.4 million from $11.7 million;
      Net income attributable to Genie common stockholders and income per diluted share (EPS) attributable to Genie common stockholders of $10.6 million and $0.40 compared to $8.1 million and $0.30, respectively;
      Non-GAAP net income1 and non-GAAP EPS1 attributable to Genie common stockholders of $11.1 million and $0.42 compared to $8.9 million and $0.33, respectively;
      Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities increased to $210.2 million at March 31, 2025;
      Genie repurchased approximately 127,000 shares of its Class B Common stock for $1.9 million during 1Q25;
      Genie will pay a $0.075 per share quarterly dividend to Class A and Class B common stockholders on May 30, 2025, with a record date of May 19, 2025.
         

    1 Adjusted EBITDA, Non-GAAP net income attributable to Genie Energy Ltd. common stockholders, and Non-GAAP EPS for all periods presented are non-GAAP measures intended to provide useful information that supplements the core operating results in accordance with GAAP for Genie Energy or the relevant segment. Please refer to the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation of these non-GAAP metrics, as well as reconciliations to its most directly comparable GAAP measures.

    Select Financial Metrics

    (in millions except for EPS)*   1Q25     1Q24     Change  
    Total revenue   $ 136.8       $ 119.7         14.3   %
    Genie Retail Energy   $ 132.5       $ 112.5         17.8   %
    Electricity   $ 104.1       $ 89.4         16.4   %
    Natural gas    $ 28.4       $ 22.4         26.8   %
    Others   $ 0.0       $ 0.7         (99.6 ) %
    Genie Renewables    $ 4.3       $ 7.2         -40.0   %
    Gross margin      27.3   %     28.2   %     (90 ) bps
    Genie Retail Energy     27.1   %     28.6   %     (150 ) bps
    Genie Renewables     33.7   %     22.0   %     1,170   bps
    Income from operations   $ 12.8       $ 9.8         30.3   %
    Operating margin     9.4   %     8.2   %     120   bps
    Net income from continuing operations   $ 10.4       $ 8.4         23.4   %
    Loss attributable to discontinued operations, net of tax   $ (0.1 )     $ (0.3 )       (60.7 ) %
    Net income attributable to Genie common stockholders   $ 10.6       $ 8.1         30.9   %
    Diluted earnings per share   $ 0.40       $ 0.30        $ 0.10    
    Non-GAAP net income attributable to Genie common stockholders   $ 11.1       $ 8.9         24.7   %
    Non-GAAP diluted earnings per share   $ 0.42       $ 0.33       $ 0.09    
    Adjusted EBITDA   $ 14.4       $ 11.7         22.7   %
    Cash flow from continuing operating activities   $ 13.5       $ 8.7         55.1   %

    * Numbers may not add due to rounding

    Segment Highlights

    Genie Retail Energy (GRE)

    GRE’s first quarter revenue increased 17.8% to $132.5 million from $112.5 million last year. Income from operations increased 18.2% to $16.8 million from $14.2 million, and Adjusted EBITDA increased 17.1% to $17.1 million from $14.6 million. The increases primarily reflect the growth in GRE’s customer base and higher consumption per customer.

    GRE Operational Metrics

    (RCEs and Meters in thousands at end of period)*   1Q25     1Q24     Change    
    RCEs     402       348       15.6   %  
    Electricity     318       267       19.2   %  
    Natural gas     84       81       3.8   %  
    Meters     413       365       13.3   %  
    Electricity     325       281       15.6   %  
    Natural gas     88       83       5.4   %  
    Gross meter additions during the period     61       70       (12.8 ) %  
    Churn**     5.5 %     5.5 %       %  
      * Numbers may not add due to rounding
      ** Excludes the impacts of aggregation deal expirations
         

    Genie Renewables (GREW)

    GREW’s first quarter revenue decreased 40.0% to $4.3 million from $7.2 million in 1Q24, primarily reflecting Genie Solar’s exit from the commercial-scale projects business during the second half of 2024. 

    Diversegy, Genie’s energy brokerage business, increased revenue by 55% year-over-year, and contributed the significant majority of GREW revenues in 1Q25.

    GREW’s loss from operations increased to $0.9 million from $0.6 million in 1Q24.

    At March 31, 2025, Genie Solar’s operating portfolio and development pipeline comprised:

    Pipeline   Total   Operational   Site Control   Permitting   Construction
    MW   123   10   97   6   10
    Project count   18   1   14   1   2

    During the quarter, portfolio and pipeline net additions totaled 15 MW and 2 projects.

    Balance Sheet and Cash Flow Highlights

    As of March 31, 2025, Genie reported cash and cash equivalents, short and long-term restricted cash, and marketable equity securities of $210.2 million.

    Total assets as of March 31, 2025 were $384.4 million. Liabilities totaled $197.0 million, and working capital (current assets less current liabilities) totaled $121.2 million. 

    Cash provided by operating activities increased to $13.5 million in 1Q25 from $8.7 million in 1Q24.

    Trended Financial Information*

    (in millions except EPS)**     1Q24     2Q24     3Q24       4Q24       1Q25     2023       2024  
    Total Revenue     $ 119.7     $ 90.7     $ 111.9     $ 102.9     $ 136.8     $ 428.7     $ 425.2  
    Genie Retail Energy     $ 112.5     $ 86.7     $ 105.8     $ 98.4     $ 132.5     $ 409.9     $ 403.6  
    Electricity     $ 89.4     $ 78.3     $ 100.7     $ 82.1     $ 104.1     $ 350.8     $ 350.8  
    Natural gas     $ 22.4     $ 8.4     $ 5.1     $ 16.2     $ 28.4     $ 56.0     $ 52.1  
    Others     $ 0.7     $ 0.0     $ 0.1     $ 0.0     $ 0.0     $ 3.1     $ 0.7  
    Genie Renewables     $ 7.2     $ 4.0     $ 6.1     $ 4.5     $ 4.3     $ 18.8     $ 21.9  
    Gross Profit     $ 33.8     $ 33.3     $ 37.9     $ 33.5     $ 37.4     $ 146.2     $ 138.8  
    Genie Retail Energy     $ 32.2     $ 32.3     $ 35.8     $ 31.9     $ 35.9     $ 143.3     $ 132.4  
    Genie Renewables     $ 1.6     $ 1.1     $ 2.1     $ 1.5     $ 1.5     $ 2.8     $ 6.3  
    Gross Margin       28.2 %     36.8 %     33.9 %     32.5 %     27.3 %     34.1 %     32.6 %
    Genie Retail Energy       28.6 %     37.2 %     33.8 %     32.4 %     27.1 %     35.0 %     32.8 %
    Genie Renewables       22.0 %     26.8 %     34.9 %     33.9 %     33.7 %     15.1 %     29.0 %
    Income (loss) from operations     $ 9.8     $ 10.6     $ 11.7     $ (20.8 )   $ 12.8     $ 10.0     $ 11.3  
    Operating margin       8.2 %     11.6 %     10.4 %     (20.2 )%     9.4 %     2.3 %     2.7 %
    Net income (loss) attributable to Genie common stockholders     $ 8.1     $ 9.6     $ 10.2     $ (15.3 )   $ 10.6     $ 19.2     $ 12.6  
    Diluted earnings (loss) per share     $ 0.30     $ 0.36     $ 0.38     $ (0.58 )   $ 0.40     $ 0.74     $ 0.5  
    Adjusted EBITDA     $ 11.7     $ 12.0     $ 13.6     $ 11.1     $ 14.41     $ 58.2     $ 48.5  
      * Some Genie Retail Energy International (GREI) operations have been classified as a discontinued operation and their results excluded from current and historical results
      ** Numbers may not add due to rounding
         

    Earnings Announcement and Supplemental Information

    At 8:30 AM Eastern this morning, Genie Energy’s management will host a conference call to discuss the Company’s financial and operational results, business outlook, and strategy. The call will begin with management’s remarks, followed by Q&A with investors.

    To participate in the conference call, dial 1-877-545-0523 (toll-free from the US) or 1-973-528-0016 (international) and provide the following participant access code: 585907.

    Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and providing the replay passcode: 52352. The replay will remain available through Tuesday, May 20, 2025. In addition, a recording of the call will be available for playback on the “Investors” section of the Genie Energy website.

    About Genie Energy Ltd.

    Genie Energy Ltd., (NYSE: GNE) is a leading retail energy and renewable energy solutions provider. The Genie Retail Energy division (GRE) supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Renewables division’s (GREW) holdings include Genie Solar, a vertically-integrated provider of community and utility-scale solar energy solutions, and Diversegy, an energy procurement advisor. For more information, visit Genie.com.

    In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

    Contact

    Bill Ulrey
    Investor Relations
    Genie Energy, Ltd.
    wulrey@genie.com

    GENIE ENERGY LTD.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)

        March 31,
    2025
        December 31,
    2024
     
                 
    Assets             
    Current assets:            
    Cash and cash equivalents (including amounts related to variable interest entity of $255 and $263 at March 31, 2025 and December 31, 2024, respectively)   $ 112,544     $ 104,456  
    Restricted cash—short-term     27,178       26,608  
    Marketable equity securities     405       357  
    Trade accounts receivable, net of allowance for doubtful accounts of $8,238 and $8,086 at March 31, 2025 and December 31, 2024, respectively (including amounts related to variable interest entity of $255 and $250 at March 31, 2025 and December 31, 2024, respectively)     64,218       61,858  
    Inventory      13,726       12,188  
    Prepaid expenses (including amounts related to variable interest entity of $130 and $307 at March 31, 2025 and December 31, 2024, respectively)     9,503       9,893  
    Other current assets     9,207       8,493  
    Current assets of discontinued operations     1,727       3,594  
    Total current assets     238,508       227,447  
    Restricted cash—long-term     70,104       69,580  
    Property and equipment, net     26,866       25,246  
    Goodwill     12,686       12,749  
    Other intangibles, net     2,275       2,367  
    Deferred income tax assets, net     7,045       7,055  
    Other assets (including amounts related to variable interest entity of $364 and $363 at March 31, 2025 and December 31, 2024, respectively)     22,305       22,365  
    Noncurrent assets of discontinued operations     4,589       4,466  
    Total assets   $ 384,378     $ 371,275  
    Liabilities and equity                
    Current liabilities:                
    Trade accounts payable     29,752       31,233  
    Accrued expenses (including amounts related to variable interest entity of $476 and $502 at March 31, 2025 and December 31, 2024, respectively)     52,497       48,793  
    Income taxes payable     13,596       9,196  
    Current captive insurance liability     9,236       9,120  
    Current debt, net     2,167       357  
    Due to IDT Corporation, net     136       135  
    Other current liabilities     6,227       6,393  
    Current liabilities of discontinued operations     3,706       4,585  
    Total current liabilities     117,317       109,812  
    Noncurrent captive insurance liability     70,104       69,580  
    Noncurrent debt, net     6,838       8,668  
    Other liabilities     2,022       2,959  
    Noncurrent liabilities of discontinued operations     707       705  
    Total liabilities     196,988       191,724  
    Commitments and contingencies            
    Equity:                
    Genie Energy Ltd. stockholders’ equity:                
    Preferred stock, $0.01 par value; authorized shares – 10,000:                
    Series 2012-A, designated shares – 8,750; at liquidation preference, consisting of 0 shares issued and outstanding at March 31, 2025 and December 31, 2024            
    Class A common stock, $0.01 par value; authorized shares – 35,000; 1,574 shares issued and outstanding at March 31, 2025 and December 31, 2024     16       16  
    Class B common stock, $0.01 par value; authorized shares -200,000 ; 29,324 and 29,310 shares issued and 25,336 and 25,482 shares outstanding at March 31, 2025 and December 31, 2024, respectively     293       293  
    Additional paid-in capital     159,981       159,192  
    Treasury stock, at cost, consisting of 3,988 and 3,828 shares of Class B common stock at March 31, 2025 and December 31, 2024     (39,835 )     (37,486 )
    Accumulated other comprehensive income     4,373       3,919  
    Retained earnings     73,178       64,574  
    Total Genie Energy Ltd. stockholders’ equity     198,006       190,508  
    Noncontrolling interests:                
    Noncontrolling interests     (9,833 )     (10,174 )
    Receivable for issuance of equity of a subsidiary     (783 )     (783 )
    Total noncontrolling interests     (10,616 )     (10,957 )
    Total equity     187,390       179,551  
    Total liabilities and equity   $ 384,378     $ 371,275  


    GENIE ENERGY LTD.

    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)

        Three Months Ended March 31,  
        2025     2024  
        (in thousands, except per share data)
    Revenues:            
    Electricity   $ 104,063     $ 89,396  
    Natural gas     28,409       22,398  
    Other     4,335       7,894  
    Total revenues     136,807       119,688  
    Cost of revenues     99,444       85,902  
    Gross profit     37,363       33,786  
    Operating expenses:                
    Selling, general and administrative (i)     23,887       22,901  
    Provision for captive insurance liability     645       1,036  
    Income from operations     12,831       9,849  
    Interest income     1,981       1,340  
    Interest expense     (189 )     (32 )
    Gain on marketable equity securities and other investments     168       117  
    Other income, net     (6 )     80  
    Income before income taxes     14,785       11,354  
    Provision for income taxes     (4,380 )     (2,920 )
    Net income from continuing operations     10,405       8,434  
    Loss from discontinued operations, net of taxes     (104 )     (265 )
    Net income     10,301       8,169  
    Net income (loss) attributable to noncontrolling interests, net     (329 )     46  
    Net income attributable to Genie Energy Ltd. common stockholders   $ 10,630     $ 8,123  
                     
    Net income attributable to Genie Energy Ltd. common stockholders                
    Continuing operations   $ 10,734     $ 8,388  
    Discontinued operations     (104 )     (265 )
    Net income attributable to Genie Energy Ltd. common stockholders   $ 10,630     $ 8,123  
                     
    Earnings (loss) per share attributable to Genie Energy Ltd. common stockholders:                
    Basic:                
    Continuing operations   $ 0.40     $ 0.31  
    Discontinued operations           (0.01 )
    Earnings per share attributable to Genie Energy Ltd. common stockholders   $ 0.40     $ 0.30  
    Diluted                
    Continuing operations   $ 0.40     $ 0.31  
    Discontinued operations           (0.01 )
    Earnings per share attributable to Genie Energy Ltd. common stockholders   $ 0.40     $ 0.30  
                     
    Weighted-average number of shares used in calculation of earnings per share:                
    Basic     26,338       26,790  
    Diluted     26,612       27,298  
                     
    Dividends declared per common share    $ 0.075     $ 0.075  
    (i) Stock-based compensation included in selling, general and administrative expenses   $ 739     $ 749  


    GENIE ENERGY LTD. 

    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited) 

        Three Months Ended March 31,  
        2025     2024    
        (in thousands)  
    Operating activities            
    Net income   $ 10,301     $ 8,169    
    Net loss from discontinued operations, net of tax     (104 )     (265 )  
    Net income from continuing operations     10,405       8,434    
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Provision for captive insurance liability     645       1,036    
    Depreciation and amortization     235       219    
    Provision for doubtful accounts receivable     309       729    
    Stock-based compensation     739       749    
    Unrealized gain on marketable equity securities and investment and others, net     (171 )     (49 )  
    Inventory valuation allowance           417    
    Changes in assets and liabilities:                
    Trade accounts receivable     (2,668 )     1,093    
    Inventory     (1,538 )     (2,191 )  
    Prepaid expenses     390       581    
    Other current assets and other assets     (209 )     505    
    Trade accounts payable, accrued expenses and other liabilities     981       (5,694 )  
    Due to IDT Corporation, net     1       (25 )  
    Income taxes payable     4,400       2,914    
    Net cash provided by operating activities of continuing operations     13,519       8,718    
    Net cash provided by operating activities of discontinued operations     1,830       4,208    
    Net cash provided by operating activities     15,349       12,926    
    Investing activities                
    Capital expenditures     (1,773 )     (1,206 )  
    Improvement of investment property     (370 )        
    Purchase of solar system facility           (1,344 )  
    Purchases of marketable equity securities and other investment           (2,094 )  
    Purchase of equity of subsidiary           (1,200 )  
    Proceeds from return of investments     50          
    Net cash used in investing activities     (2,093 )     (5,844 )  
    Financing activities                
    Dividends paid     (2,026 )     (2,121 )  
    Repurchases of Class B common stock     (1,887 )     (4,101 )  
    Repurchases of Class B common stock from employees     (462 )     (1,508 )  
    Net cash used in financing activities     (4,375 )     (7,730 )  
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (80 )     74    
    Net increase (decrease) in cash, cash equivalents, and restricted cash     8,801       (574 )  
    Cash, cash equivalents, and restricted cash (excluding cash held at discontinued operations) at beginning of period     201,958       165,479    
    Cash, cash equivalents and restricted cash (including cash held at discontinued operations) at end of the period     210,759       164,905    
    Less: Cash of discontinued operations at end of period     933       2,886    
    Cash, cash equivalents, and restricted cash (excluding cash held at discontinued operations) at end of period   $ 209,826     $ 162,019    


    Reconciliation of Non-GAAP Financial Measures for the First Quarter of 2025

    In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy disclosed Adjusted EBITDA on a consolidated basis and for GRE and disclosed Non-GAAP Net Income Attributable to Genie Energy Ltd. Common Stockholders (Non-GAAP Net Income and Non-GAAP earnings per share (Non-GAAP EPS). Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS are non-GAAP financial measures.

    Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

    Genie’s measure of consolidated Adjusted EBITDA starts with income from operations and adds back depreciation, amortization, and stock-based compensation and deducts impairment of assets and equity in the net loss of equity method investees, net.

    Genie’s measure of Non-GAAP Net Income starts with net income attributable to Genie Energy Ltd. Common Stockholders in accordance with GAAP and adds captive insurance liability and the tax effect of this adjustment. These additions are non-cash and/or non-routine items in the relevant periods.

    Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, revenue, gross profit, income from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, Genie’s measurement of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

    Management believes that Genie’s measure of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS provide useful information to both management and investors by excluding certain expenses that may not be indicative of Genie’s or GRE’s core operating results. Management uses Adjusted EBITDA, non-GAAP Net Income and Non-GAAP EPS, among other measures, as relevant indicators of core operational strengths in its financial and operational decision-making.

    Management also uses Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS to evaluate operating performance in relation to Genie’s competitors. Disclosure of these non-GAAP financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, Genie Energy has historically reported Adjusted EBITDA and believes it is commonly used by readers of financial information in assessing performance. Therefore, the inclusion of comparative numbers provides consistency in financial reporting at this time.

    Management refers to Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS as well as the GAAP measures revenue, gross profit, and income from operations, as well as net income, on a consolidated level to facilitate internal and external comparisons to Genie’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

    Although depreciation and amortization are considered operating costs under GAAP, they primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Genie’s operating results exclusive of depreciation and amortization are therefore useful indicators of its current performance.

    Stock-based compensation recognized by Genie Energy and other companies may not be comparable because of the various valuation methodologies, subjective assumptions, and the variety of types of awards that are permitted under GAAP. Stock-based compensation is excluded from Genie’s calculation of Adjusted EBITDA because management believes this allows investors to make more meaningful comparisons of the operating results of Genie’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for Genie Energy for the foreseeable future and an important part of employees’ compensation that impacts their performance. 

    Impairment of assets is a component of income (loss) from operations that is excluded from the calculation of Adjusted EBITDA. The impairment of assets is primarily dictated by events and circumstances outside the control of management that trigger an impairment analysis. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of Genie’s continuing operations. 

    Captive insurance liability is a non-cash charge incurred by Genie’s insurance operations. While there may be related charges in other periods, the magnitude of these changes can fluctuate markedly and do not reflect the performance of Genie’s continuing operations. Captive insurance losses are excluded from Genie’s calculation of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results of Genie’s core business with the results of other companies. 

    Following are the reconciliations of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS on a consolidated basis to its most directly comparable GAAP measure. Adjusted EBITDA is reconciled to income from operations for Genie Energy on a consolidated basis as well as for GRE. 

    Non-GAAP Reconciliation – Consolidated Adjusted EBITDA

    (in millions)    1Q23     2Q23     3Q23     4Q23     1Q24     2Q24      
    3Q24
        4Q24       1Q25     2023     2024  
    Income (loss) from operations   $ 11.3     $ 15.0     $ 17.9     $ (34.2 )   $ 9.8     $ 10.6     11.7       (20.8 )     12.8     $ 10.0     $ 11.3  
    Add back                                                                                        
    Captive insurance liability   $ 0.0     $ 0.0     $ 0.0     $ 45.1     $ 1.0     $ 0.6     $ 1.0       30.9       0.6     $ 45.1     $ 33.6  
    Depreciation and amortization   $ 0.1     $ 0.1     $ 0.1     $ 0.2     $ 0.2     $ 0.2     0.2       0.2       0.2     $ 0.5     $ 0.9  
    Non-cash compensation   $ 0.8     $ 0.8     $ 0.6     $ 0.5     $ 0.7     $ 0.5     0.6       0.6       0.7     $ 2.7     $ 2.3  
    Impairment   $ 0.0     $ 0.0     $ 0.0     $ 0.0     $ 0.0     $ 0.1     0.1       0.0       0     $ 0.0     $ 0.2  
    Equity in net loss (income) of equity method investees   $ 0.2     $ (0.1 )   $ (0.1 )   $ (0.1 )   $ (0.1 )   $ 0.0     0.0       0.1       0.0     $ (0.1 )   $ 0.2  
    Adjusted EBITDA   $ 12.4     $ 15.8     $ 18.5     $ 11.5     $ 11.7     $ 12.0     13.6       11.1       14.4     $ 58.2     $ 59.5  


    Non-GAAP Reconciliation – GRE Adjusted EBITDA

    (in millions)   1Q25     1Q24     2024     2023  
    Income from operations   $ 16.8     $ 14.2     $ 56.5     $ 71.9  
    Add back                                
    Depreciation and amortization   $ 0.1     $ 0.1     $ 0.3     $ 0.3  
    Stock-based compensation   $ 0.3     $ 0.2     $ 1.1     $ 1.0  
    Impairment   $ 0.0     $ 0.0     $ 0.0     $ 0.0  
    Equity in the income of equity method investees   $ (0.1 )   $ 0.0     $ 0.5     $ 0.0  
    Adjusted EBITDA   $ 17.1     $ 14.6     $ 58.4     $ 73.3  

     Non-GAAP Reconciliation – Consolidated Non-GAAP Net Income Attributable to Genie Energy Ltd. Common Stockholders and Non-GAAP Diluted Income Per Share

    (in millions except for EPS)   1Q25     1Q24     2024     2023  
    Net income attributable to Genie Energy Ltd. common stockholders   $ 10.6     $ 8.1     $ 12.6     $ 19.2  
    Add back                                
    Captive insurance liability   $ 0.6     $ 1.0     $ 33.6     $ 45.1  
    Income tax effect of adjustment   $ (0.2 )     (0.3 )   $ (8.8 )   $ (10.5 )
    Non-GAAP net income attributable to Genie Energy Ltd. common stockholders   $ 11.1     $ 8.9     $ 37.4     $ 53.7  
                                     
    Diluted earnings per share   $ 0.40     $ 0.30     $ 0.46     $ 0.74  
    Total adjustments   $ 0.02     $ 0.03     $ 0.91     $ 1.33  
    Non-GAAP diluted earnings per share   $ 0.42     $ 0.33     $ 1.38     $ 2.06  
                                     
    Weighted average number of shares used in the calculation of diluted earnings per share     26.6       27.3       27.2       26.1  

    # # #

    The MIL Network

  • MIL-OSI: CareCloud Delivers Growth and Strong Cash Flow in Q1 2025, Advances AI and Acquisition Strategy

    Source: GlobeNewswire (MIL-OSI)

    SOMERSET, N.J., May 06, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO), a leader in healthcare technology and generative AI solutions, today announced strong financial results for the three months ended March 31, 2025. CareCloud’s strategic execution, AI-driven innovation, and disciplined financial management have fueled a transformational turnaround, positioning the Company for sustained profitability and long-term growth. Management will discuss these results and the Company’s 2025 growth strategies in a live conference call today at 8:30 a.m. ET.

    First Quarter 2025 Financial Highlights:

    • Revenue of $27.6 million, compared to $26.0 million in Q1 2024, an increase of 6% year-over-year
    • GAAP net income of $1.9 million, compared to a net loss of $241,000 in Q1 2024
    • Adjusted EBITDA of $5.6 million, compared to $3.7 million in Q1 2024, an increase of 52%
    • Adjusted net income of $2.3 million, or $0.05 per share
    • Cash balance of $6.8 million and net working capital of $11.7 million as of March 31, 2025

    Recent Strategic Updates

    • AI Center of Excellence Launched: CareCloud launched its dedicated AI Center of Excellence, onboarding the first wave of over 50 AI professionals and aiming to scale to 500 AI specialists by fourth quarter 2025. The initiative is fully self-funded through operating cash flows.
    • Series A Preferred Stock Conversion Completed: Successfully converted 3.5 million Series A preferred shares into 26 million common shares, reducing the annual dividend commitment by approximately $7.7 million and strengthening cash flow and the capital structure.
    • Resumption of Preferred Dividends: Payments of preferred dividends resumed in February 2025.
    • Acquisition Strategy Reignited: Completed two strategic acquisitions in March and April 2025, with additional acquisition opportunities actively under evaluation.

    Management Commentary:

    “The launch of our AI Center of Excellence marks a pivotal moment in CareCloud’s evolution,” said A. Hadi Chaudhry, Co-CEO of CareCloud. “By building one of the largest dedicated healthcare AI teams globally, we believe we are creating real-world solutions to automate clinical workflows, optimize revenue cycle management, and improve patient outcomes. This initiative is intended to accelerate our operational efficiency as well as positioning CareCloud at the forefront of intelligent healthcare transformation — driving sustainable profitability and long-term growth for ourselves and the healthcare providers who use our services.”

    “After record profits and a successful turnaround in 2024, we are excited to announce continued momentum and strength as we enter 2025,” said Co-CEO Stephen Snyder. “With two recent acquisitions and the launch of our AI Center of Excellence, CareCloud is not just responding to the market shift — we are intending to lead it.”

    “We are pleased to announce our fourth consecutive quarter of positive GAAP net income and an increase in revenue and adjusted EBITDA year over year,” said Norman Roth, Interim CFO and Corporate Controller of CareCloud. “We have resumed paying our Preferred Stock dividends monthly out of internally-generated free cash flow, while generating additional profits and cash flow to reinvest for future growth. To date we have declared six months of Preferred Stock dividends.”

    Capital

    On March 31, 2025, the Company had 984,530 shares of Series A Preferred Stock and 1,511,372 shares of non-convertible Series B Preferred Stock outstanding. As of March 31, 2025, the Series A and B shares both accrued dividends at the rate of 8.75% per annum, based on the $25.00 per share liquidation preference (equivalent to $2.1875 annually per share), and they are redeemable at the Company’s option once the preferred stock dividends are brought current.

    2025 Guidance: Poised for Growth

    CareCloud is reconfirming its earnings guidance for 2025, expecting:

    For the Fiscal Year Ending December 31, 2025
    Forward-Looking Guidance
    Revenue $111 – $114 million
    Adjusted EBITDA $26 – $28 million
    Net Income Per Share (EPS) $0.10 – $0.13

    The Company continues to anticipate full year 2025 revenue of approximately $111 to $114 million. Revenue guidance is based on management’s expectations regarding revenue from existing clients, organic growth in new client additions and anticipated number of small tuck-in acquisitions.

    Adjusted EBITDA is expected to be $26 to $28 million for full year 2025 and reflects improvements from the Company’s cost reduction efforts. EPS is expected to be $0.10 to $0.13 for full year 2025.

    Conference Call Information

    CareCloud management will host a conference call today at 8:30 a.m. Eastern Time to discuss the first three months of 2025 results. The live webcast of the conference call and related presentation slides can be accessed at ir.carecloud.com/events. An audio-only option is available by dialing 201-389-0920 and referencing “CareCloud First Quarter 2025 Results Conference Call.” Investors who opt for audio-only will need to download the related slides at ir.carecloud.com/events.

    A replay of the conference call and related presentation slides will be available approximately three hours after conclusion of the call at the same link. An audio-only option can also be accessed by dialing 412-317-6671 and providing the access code 13753440.

    Use of Non-GAAP Financial Measures

    In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com.

    Forward-Looking Statements

    This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

    Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

    These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, manage and keep our information systems secure and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

    The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    About CareCloud

    CareCloud (Nasdaq: CCLD, CCLDO) brings disciplined innovation and generative AI solutions to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), artificial intelligence (AI), business intelligence (BI), patient experience management (PXM) and digital health, at carecloud.com.

    Follow CareCloud on LinkedInX and Facebook.

    For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

    SOURCE CareCloud

    Company Contact:
    Norman Roth
    Interim Chief Financial Officer and Corporate Controller
    CareCloud, Inc.
    nroth@carecloud.com

    Investor Contact:
    Stephen Snyder
    Co-Chief Executive Officer
    CareCloud, Inc.
    ir@carecloud.com

    CARECLOUD, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    ($ in thousands, except share and per share amounts)
                 
          March 31,       December 31,  
          2025       2024  
          (Unaudited)          
    ASSETS                
    Current assets:                
    Cash   $ 6,805     $ 5,145  
    Accounts receivable – net     13,887       12,774  
    Contract asset     4,457       4,334  
    Inventory     609       574  
    Current assets – related party     16       16  
    Prepaid expenses and other current assets     2,843       1,957  
    Total current assets     28,617       24,800  
    Property and equipment – net     5,323       5,290  
    Operating lease right-of-use assets     3,097       3,133  
    Intangible assets – net     16,877       18,698  
    Goodwill     19,186       19,186  
    Other assets     456       507  
    TOTAL ASSETS   $ 73,556     $ 71,614  
    LIABILITIES AND SHAREHOLDERS’ EQUITY                
    Current liabilities:                
    Accounts payable   $ 4,951     $ 4,565  
    Accrued compensation     2,865       1,817  
    Accrued expenses     5,002       4,951  
    Operating lease liability (current portion)     1,355       1,287  
    Deferred revenue (current portion)     1,297       1,212  
    Notes payable (current portion)     133       310  
    Contingent consideration (current portion)     47        
    Dividend payable     1,299       5,438  
    Total current liabilities     16,949       19,580  
    Notes payable     23       26  
    Contingent consideration     60        
    Operating lease liability     1,776       1,847  
    Deferred revenue     571       387  
    Total liabilities     19,379       21,840  
    COMMITMENTS AND CONTINGENCIES                
    SHAREHOLDERS’ EQUITY:                
    Preferred stock, $0.001 par value – authorized 7,000,000 shares. Series A, issued and outstanding 984,530 and 4,526,231 shares at March 31, 2025 and December 31, 2024, respectively. Series B, issued and outstanding 1,511,372 shares at March 31, 2025 and December 31, 2024.     2       6  
    Common stock, $0.001 par value – authorized 85,000,000 shares. Issued 43,061,928 and 16,997,035 shares at March 31, 2025 and December 31, 2024, respectively. Outstanding 42,321,129 and 16,256,236 shares at March 31, 2025 and December 31, 2024, respectively     43       17  
    Additional paid-in capital     123,537       121,046  
    Accumulated deficit     (64,682 )     (66,630 )
    Accumulated other comprehensive loss     (4,061 )     (4,003 )
    Less: 740,799 common shares held in treasury, at cost at March 31, 2025 and December 31, 2024     (662 )     (662 )
    Total shareholders’ equity     54,177       49,774  
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 73,556     $ 71,614  
    CARECLOUD, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024
    ($ in thousands, except share and per share amounts)
        Three Months Ended  
        March 31,  
        2025     2024*  
    NET REVENUE   $ 27,632     $ 25,962  
    OPERATING EXPENSES:                
    Direct operating costs     15,464       15,177  
    Selling and marketing     1,131       1,770  
    General and administrative     4,332       3,721  
    Research and development     1,235       913  
    Depreciation and amortization     3,337       3,930  
    Restructuring costs     114       322  
    Total operating expenses     25,613       25,833  
    OPERATING INCOME     2,019       129  
    OTHER:                
    Interest income     42       27  
    Interest expense     (58 )     (365 )
    Other (expense) income – net     (14 )     7  
    INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES     1,989       (202 )
    Income tax provision     41       39  
    NET INCOME (LOSS)   $ 1,948     $ (241 )
                     
    Preferred stock dividend     2,811       1,312  
    NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (863 )   $ (1,553 )
                     
    Net loss per common share: basic and diluted   $ (0.04 )   $ (0.10 )
    Weighted-average common shares used to compute basic and diluted loss per share     23,813,943       16,014,309  

    * Restated to include the preferred stock dividends earned, but not declared, during the three months ended March 31, 2024.

    CARECLOUD, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
    FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024
    ($ in thousands)
                 
          2025       2024  
    OPERATING ACTIVITIES:                
     Net income (loss)   $ 1,948     $ (241 )
     Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
     Depreciation and amortization     3,407       4,020  
     Lease amortization     480       509  
     Deferred revenue     269       58  
     Provision for expected credit losses     70       37  
     Foreign exchange gain     (1 )     (11 )
     Interest accretion     107       168  
     Stock-based compensation expense (benefit)     108       (708 )
     Changes in operating assets and liabilities:                
    Accounts receivable     (1,183 )     (111 )
    Contract asset     (105 )     (361 )
    Inventory     (35 )     (15 )
    Other assets     (908 )      
    Accounts payable and other liabilities     956       721  
     Net cash provided by operating activities     5,113       4,066  
    INVESTING ACTIVITIES:                
     Purchases of property and equipment     (624 )     (298 )
     Capitalized software and other intangible assets     (846 )     (1,570 )
     Initial payment for acquisition     (40 )      
     Net cash used in investing activities     (1,510 )     (1,868 )
    FINANCING ACTIVITIES:                
     Preferred stock dividends paid     (1,730 )      
     Settlement of tax withholding obligations on stock issued to employees     (21 )     (151 )
     Repayments of notes payable     (181 )     (223 )
     Repayment of line of credit           (1,000 )
     Net cash used in financing activities     (1,932 )     (1,374 )
    EFFECT OF EXCHANGE RATE CHANGES ON CASH     (11 )     (17 )
    NET INCREASE IN CASH     1,660       807  
    CASH – Beginning of the period     5,145       3,331  
    CASH – End of the period   $ 6,805     $ 4,138  
    SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES:                
     Conversion of preferred stock and accrued dividends to common stock   $ 2,435     $  
     Dividends declared, not paid   $ 1,299     $ 5  
     Purchase of prepaid insurance with assumption of note   $     $ 96  
     Reclass of deposits for property and equipment placed in service   $     $ 296  
    SUPPLEMENTAL INFORMATION – Cash paid during the period for:                
    Income taxes   $ 15     $ 6  
    Interest   $ 18     $ 295  

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP MEASURES

    The following is a reconciliation of the non-GAAP financial measures used by us to describe our financial results determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures.”

    While management believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of our business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and management may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP.

    Adjusted EBITDA to GAAP Net Income (Loss)

    Set forth below is a reconciliation of our “adjusted EBITDA” to our GAAP net income (loss).

        Three Months Ended March 31,  
        2025     2024  
        ($ in thousands)  
    Net revenue   $ 27,632     $ 25,962  
                     
    GAAP net income (loss)     1,948       (241 )
                     
    Provision for income taxes     41       39  
    Net interest expense     16       338  
    Foreign exchange loss (gain) / other expense     19       (5 )
    Stock-based compensation expense (benefit)     108       (708 )
    Depreciation and amortization     3,337       3,930  
    Transaction and integration costs     12       12  
    Restructuring costs     114       322  
    Adjusted EBITDA   $ 5,595     $ 3,687  


    Non-GAAP Adjusted Operating Income to GAAP Operating Income

    Set forth below is a reconciliation of our non-GAAP “adjusted operating income” and non-GAAP “adjusted operating margin” to our GAAP operating income and GAAP operating margin.

        Three Months Ended March 31,  
        2025     2024  
        ($ in thousands)  
    Net revenue   $ 27,632     $ 25,962  
                     
    GAAP net income (loss)     1,948       (241 )
    Provision for income taxes     41       39  
    Net interest expense     16       338  
    Other expense (income) – net     14       (7 )
    GAAP operating income     2,019       129  
    GAAP operating margin     7.3 %     0.5 %
                     
    Stock-based compensation expense (benefit)     108       (708 )
    Amortization of purchased intangible assets     89       840  
    Transaction and integration costs     12       12  
    Restructuring costs     114       322  
    Non-GAAP adjusted operating income   $ 2,342     $ 595  
    Non-GAAP adjusted operating margin     8.5 %     2.3 %


    Non-GAAP Adjusted Net Income to GAAP Net Income (Loss)

    Set forth below is a reconciliation of our non-GAAP “adjusted net income” and non-GAAP “adjusted net income per share” to our GAAP net income (loss) and GAAP net loss per share.

        Three Months Ended March 31,  
        2025     2024  
        ($ in thousands)  
    GAAP net income (loss)   $ 1,948     $ (241 )
                     
    Foreign exchange loss (gain) / other expense     19       (5 )
    Stock-based compensation expense (benefit)     108       (708 )
    Amortization of purchased intangible assets     89       840  
    Transaction and integration costs     12       12  
    Restructuring costs     114       322  
    Non-GAAP adjusted net income   $ 2,290     $ 220  
                     
    End-of-period common shares     42,321,129       16,118,492  
                     
    Non-GAAP adjusted net income per share   $ 0.05     $ 0.01  

    For purposes of determining non-GAAP adjusted net income per share, we used the number of common shares outstanding as of March 31, 2025 and 2024.

        Three Months Ended March 31,  
        2025     2024  
    GAAP net loss attributable to common shareholders, per share   $ (0.04 )   $ (0.10 )
    Impact of preferred stock dividend     0.09       0.08  
    Net income (loss) per end-of-period share     0.05       (0.02 )
                     
    Foreign exchange loss (gain) / other expense     0.00       0.00  
    Stock-based compensation expense (benefit)     0.00       (0.04 )
    Amortization of purchased intangible assets     0.00       0.05  
    Transaction and integration costs     0.00       0.00  
    Restructuring costs     0.00       0.02  
    Non-GAAP adjusted earnings per share   $ 0.05     $ 0.01  


    Net cash provided by operating activities to free cash flow

    Set forth below is a reconciliation of our non-GAAP “free cash flow” to our GAAP net cash provided by operating activities.

        Three Months Ended March 31,  
        2025     2024  
        ($ in thousands)  
    Net cash provided by operating activities   $ 5,113     $ 4,066  
                     
    Purchases of property and equipment     (624 )     (298 )
    Capitalized software and other intangible assets     (846 )     (1,570 )
    Free cash flow   $ 3,643     $ 2,198  
                     
    Net cash used in investing activities 1   $ (1,510 )   $ (1,868 )
    Net cash used in financing activities   $ (1,932 )   $ (1,374 )
                     
    1 Net cash used in investing activities includes purchases of property and equipment and capitalized software and other intangible assets, which are also included in our computation of free cash flow.  
       

    Explanation of Non-GAAP Financial Measures

    We report our financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of CareCloud and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

    Management uses adjusted EBITDA, adjusted operating income, adjusted operating margin, and non-GAAP adjusted net income to provide an understanding of aspects of operating results before the impact of investing and financing charges and income taxes. Adjusted EBITDA may be useful to an investor in evaluating our operating performance and liquidity because this measure excludes non-cash expenses as well as expenses pertaining to investing or financing transactions. Management defines “adjusted EBITDA” as the sum of GAAP net income (loss) before provision for income taxes, net interest expense, foreign exchange loss (gain) / other expense, stock-based compensation expense (benefit), depreciation and amortization, transaction and integration costs, and restructuring costs.

    Management defines “non-GAAP adjusted operating income” as the sum of GAAP operating income before stock-based compensation expense (benefit), amortization of purchased intangible assets, transaction and integration costs, and restructuring costs, and “non-GAAP adjusted operating margin” as non-GAAP adjusted operating income divided by net revenue.

    Management defines “non-GAAP adjusted net income” as the sum of GAAP net income (loss) before foreign exchange loss (gain) / other expense, stock-based compensation expense (benefit), amortization of purchased intangible assets, transaction and integration costs, and restructuring costs, and “non-GAAP adjusted net income per share” as non-GAAP adjusted net income divided by common shares outstanding at the end of the period.

    Management defines “free cash flow” as the sum of net cash provided by operating activities less cash used for purchases of property and equipment and cash used to develop capitalized software and other intangible assets.

    Management considers all of these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance.

    In addition to items routinely excluded from non-GAAP EBITDA, management excludes or adjusts each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item:

    Foreign exchange loss (gain) / other expense. Other expense is excluded because foreign currency gains and losses and other non-operating expenses are expenditures that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expense is partially outside of our control. Foreign currency gains and losses are based on global market factors which are unrelated to our performance during the period in which the gains and losses are recorded.

    Stock-based compensation expense (benefit). Stock-based compensation expense (benefit) is excluded because this is primarily a non-cash expenditure that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expenditure is partially outside of our control because it is based on factors such as stock price, volatility, and interest rates, which may be unrelated to our performance during the period in which the expenses are incurred. Stock-based compensation expense includes cash-settled awards based on changes in the stock price.

    Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are recorded.

    Transaction costs. Transaction costs are upfront costs related to acquisitions and related transactions, such as brokerage fees, pre-acquisition accounting costs and legal fees, and other upfront costs related to specific transactions. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

    Integration costs. Integration costs are severance payments for certain employees relating to our acquisitions and exit costs related to terminating leases and other contractual agreements. Accordingly, management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

    Restructuring costs. Restructuring costs primarily consist of severance and separation costs associated with the optimization of the Company’s operations and profitability improvements. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

    Free cash flow. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net operating results as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, the Company’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows.

    The MIL Network

  • MIL-OSI: Cipher Mining Provides First Quarter 2025 Business Update

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Revenue of $49m, up 16% quarter over quarter

    Signed term sheet with Fortress Credit Advisors to serve as the JV financing partner at Barber Lake

    Nearing completion of 150 MW Phase I infrastructure at Black Pearl

    First Quarter 2025 GAAP Net Loss of $39m, and Non-GAAP Adjusted Earnings of $6m

    NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) —  Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced its first quarter 2025 financial results, with an update on its operations and business strategy.

    “The first quarter was marked by disciplined execution and steady progress as we advanced our 2025 expansion plans,” said Tyler Page, CEO. “Notably, we’re thrilled to have partnered with Fortress, a best-in-class financing partner, to develop a next-generation data center at Barber Lake. Fortress will not only bring extensive experience in data center development, but also a strong network of relationships with hyperscalers that complements our active discussions.”

    Over the quarter, Cipher also made substantial progress on expanding its mining footprint, with rig deployment at Black Pearl anticipated ahead of schedule.

    Mr. Page added, “We are nearing completion of the Black Pearl Data Center’s Phase I core and shell, and all four substation transformers are now onsite. Given the accelerated progress and expected energization in May, we’ve decided to immediately deploy rigs from inventory at the newly constructed site while we await the arrival of new machines expected later this summer. This strategic decision will bring approximately 2.5 exahashes per second online one quarter earlier than anticipated through the efficient use of idle assets at no additional capital expenditure to the company.”

    This redeployment will bring Cipher to ~16.0 EH/s by the end of the second quarter, with expectations to scale to ~23.1 EH/s by the end of the third quarter, as the Company continues to monitor the tariff landscape and new rig delivery schedules come into focus.

    “Cipher’s strong treasury management, disciplined approach to growth, and site flexibility continue to give me confidence in our ability to navigate a dynamic market environment and drive long-term success,” said Mr. Page.

    Finance and Operations Highlights

    • Completed first full quarter of operations with the upgraded Odessa fleet, which increased Cipher’s total self-mining hashrate to ~13.5 EH/s
    • Signed term sheet with Fortress Credit Advisors LLC to serve as the JV financing partner at Barber Lake
    • Infrastructure at Black Pearl Phase I nearing completion, with energization expected ahead of schedule
    • Continued HPC tenant momentum at Barber Lake site with multiple tenants under NDA and performing due diligence
    • Pipeline of 2.8 GW of site capacity
    • Q1 2025 net loss of $39 million, or $0.11 per diluted share, and adjusted earnings of $6 million, or $0.02 per diluted share

    Business Update Call and Webcast

    The live webcast and a webcast replay of the conference call can be accessed from the investor relations section of Cipher’s website at https://investors.ciphermining.com/. To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.

    About Cipher

    Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

    Forward Looking Statements

    This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about the Company’s beliefs and expectations regarding its future results of operations and financial position, its planned business model and strategy, its bitcoin mining and HPC data center development, timing and likelihood of success, capacity, functionality and timing of operation of data centers, expectations regarding the operations of data centers, potential strategic initiatives, such as joint ventures and partnerships, and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

    These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts it may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 25, 2025, and in Cipher’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

    Website Disclosure

    The company maintains a dedicated investor website at https://investors.ciphermining.com/investors (“Investors’ Website”). Financial and other important information regarding the Company is routinely posted on and accessible through the Investors Website. Cipher uses its Investors’ Website as a distribution channel of material information about the Company, including through press releases, investor presentations, reports and notices of upcoming events. Cipher intends to utilize its Investors’ Website as a channel of distribution to reach public investors and as a means of disclosing material non-public information for complying with disclosure obligations under Regulation FD. In addition, you may sign up to automatically receive email alerts and other information about the Company by visiting the “Email Alerts” option under the Investors Resources section of Cipher’s Investors’ Website and submitting your email address.

    Non-GAAP Financial Measures

    This press release includes supplemental financial measures for Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case that exclude the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability. These supplemental financial measures are not measurements of financial performance under accounting principles generally accepted in the United Stated (“GAAP”) and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate our business performance and to help make operating decisions. We believe the use of these non-GAAP financial measures can also facilitate comparison of our operating results to those of our competitors by excluding certain items that vary in our industry based on company policy.

    Non-GAAP financial measures are subject to material limitations as they are not in accordance with, or a substitute for, measurements prepared in accordance with GAAP. For example, we expect that share-based compensation expense, which is excluded from the non-GAAP financial measure, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers and directors. Similarly, we expect that depreciation and amortization will continue to be a recurring expense over the term of the useful life of the related assets. Our non-GAAP financial measures are not meant to be considered in isolation and should be read only in conjunction with our condensed consolidated financial statements included elsewhere in this press release, which have been prepared in accordance with GAAP. We rely primarily on such condensed consolidated financial statements to understand, manage and evaluate our business performance and use the non-GAAP financial measures only supplementally.

    Contacts:
    Investor Contact:
    Courtney Knight
    Head of Investor Relations at Cipher Mining
    Courtney.knight@ciphermining.com

    Media Contact:
    Ryan Dicovitsky / Kendal Till
    Dukas Linden Public Relations
    CipherMining@DLPR.com

    CIPHER MINING INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except for share and per share amounts)
    (unaudited)

      March 31, 2025   December 31, 2024
    ASSETS      
    Current assets      
    Cash and cash equivalents $ 23,173     $ 5,585  
    Accounts receivable   758       596  
    Receivables, related party   300       2,090  
    Prepaid expenses and other current assets   2,970       3,387  
    Bitcoin   52,024       92,651  
    Receivable for bitcoin collateral   32,497       32,248  
    Derivative asset   42,835       31,648  
    Total current assets   154,557       168,205  
    Restricted cash   14,392       14,392  
    Property and equipment, net   477,972       480,865  
    Deposits on equipment   122,502       38,872  
    Intangible assets, net   9,043       8,881  
    Investment in equity investees   48,499       53,908  
    Derivative asset   50,165       54,022  
    Operating lease right-of-use asset   12,192       12,561  
    Security deposits   19,776       19,782  
    Other noncurrent assets   4,694       3,958  
    Total assets $ 913,792     $ 855,446  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities      
    Accounts payable $ 29,879     $ 22,699  
    Accrued expenses and other current liabilities   66,300       69,824  
    Finance lease liability, current portion   3,903       3,798  
    Operating lease liability, current portion   3,200       3,127  
    Short-term borrowings   35,459       32,330  
    Total current liabilities   138,741       131,778  
    Asset retirement obligations   20,801       20,282  
    Finance lease liability   6,315       7,331  
    Operating lease liability   9,506       9,833  
    Deferred tax liability   3,634       4,269  
    Total liabilities   178,997       173,493  
    Commitments and contingencies (Note 13)      
    Stockholders’ equity      
    Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding as of March 31, 2025, and December 31, 2024          
    Common stock, $0.001 par value, 500,000,000 shares authorized, 371,313,598 and 361,432,449 shares issued as of March 31, 2025 and December 31, 2024, respectively, and 370,857,699 and 350,783,817 shares outstanding as of March 31, 2025, and December 31, 2024, respectively   371       361  
    Additional paid-in capital   954,812       863,015  
    Accumulated deficit   (220,387 )     (181,412 )
    Treasury stock, at par, 455,899 and 10,648,632 shares at March 31, 2025 and December 31, 2024, respectively   (1 )     (11 )
    Total stockholders’ equity   734,795       681,953  
    Total liabilities and stockholders’ equity $ 913,792     $ 855,446  
    CIPHER MINING INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except for share and per share amounts)
    (unaudited)
      Three Months Ended March 31,
        2025       2024  
    Revenue – bitcoin mining $ 48,959     $ 48,137  
    Costs and operating (expenses) income      
    Cost of revenue   (14,894 )     (14,820 )
    Compensation and benefits   (14,303 )     (13,036 )
    General and administrative   (8,951 )     (6,077 )
    Depreciation and amortization   (43,467 )     (17,244 )
    Change in fair value of derivative asset   7,330       7,359  
    Power sales   991       1,173  
    Equity in income (losses) of equity investees   (5,292 )     738  
    Unrealized (losses) gains on fair value of bitcoin   (20,178 )     40,556  
    Realized gains on sale of bitcoin   12,196        
    Other gains   (479 )      
    Total costs and operating expenses   (87,047 )     (1,351 )
    Operating (loss) income   (38,088 )     46,786  
    Other income (expense)      
    Interest income   190       786  
    Interest expense   (777 )     (400 )
    Change in fair value of warrant liability         250  
    Other expense   (156 )     (1,958 )
    Total other expense   (743 )     (1,322 )
    (Loss) income before taxes   (38,831 )     45,464  
    Current income tax expense   (779 )     (386 )
    Deferred income tax benefit (expense)   635       (5,178 )
    Total income tax expense   (144 )     (5,564 )
    Net (loss) income $ (38,975 )   $ 39,900  
    (Loss) income per share – basic and diluted $ (0.11 )   $ 0.13  
    Weighted average shares outstanding – basic   360,514,620       296,641,499  
    Weighted average shares outstanding – diluted   360,514,620       304,397,979  

    Non-GAAP Financial Measures

    The following are reconciliations of our Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share – diluted, in each case excluding the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability, to the most directly comparable GAAP measures for the periods indicated (in thousands, except for per share amounts):

      Three Months Ended March 31,
        2025       2024  
    Reconciliation of Adjusted Earnings:      
    Net (loss) income $ (38,975 )   $ 39,900  
    Change in fair value of derivative asset   (7,330 )     (7,359 )
    Share-based compensation expense   9,132       8,317  
    Depreciation and amortization   43,467       17,244  
    Deferred income tax (benefit) expense   (635 )     5,178  
    Other losses – nonrecurring   479        
    Change in fair value of warrant liability         (250 )
    Adjusted (loss) earnings $ 6,138     $ 63,030  
           
           
      Three Months Ended March 31,
        2025       2024  
    Reconciliation of Adjusted Earnings per share – diluted:      
    Net (loss) income per share – diluted $ (0.11 )   $ 0.13  
    Change in fair value of derivative asset per diluted share   (0.02 )     (0.03 )
    Share-based compensation expense per diluted share   0.03       0.03  
    Depreciation and amortization per diluted share   0.12       0.06  
    Deferred income tax (benefit) expense per diluted share         0.02  
    Other losses – nonrecurring per diluted share          
    Change in fair value of warrant liability per diluted share          
    Adjusted (loss) earnings per diluted share $ 0.02     $ 0.21  

    The MIL Network

  • MIL-OSI: Datadog Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    First quarter revenue grew 25% year-over-year to $762 million

    Robust growth of larger customers, with about 3,770 $100k+ ARR customers, up from about 3,340 a year ago

    Announced 2025 DASH user conference, June 10-11, in New York City

    NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) — Datadog, Inc. (NASDAQ:DDOG), the monitoring and security platform for cloud applications, today announced financial results for its first quarter ended March 31, 2025.

    “Datadog executed solidly in the first quarter, with 25% year-over-year revenue growth, $272 million in operating cash flow, and $244 million in free cash flow,” said Olivier Pomel, co-founder and CEO of Datadog.

    Pomel added, “We are innovating rapidly across the Datadog platform, to help customers observe, secure, and act to solve mission-critical business problems in their modern, cloud environments.”

    First Quarter 2025 Financial Highlights:

    • Revenue was $762 million, an increase of 25% year-over-year.
    • GAAP operating loss was $(12) million; GAAP operating margin was (2)%.
    • Non-GAAP operating income was $167 million; non-GAAP operating margin was 22%.
    • GAAP net income per diluted share was $0.07; non-GAAP net income per diluted share was $0.46.
    • Operating cash flow was $272 million, with free cash flow of $244 million.
    • Cash, cash equivalents, and marketable securities were $4.4 billion as of March 31, 2025.

    First Quarter & Recent Business Highlights:

    • As of March 31, 2025, we had about 3,770 customers with ARR of $100,000 or more, an increase of 13% from about 3,340 as of March 31, 2024.
    • Acquired Eppo, a feature flagging and experimentation platform, which will tightly integrate with Datadog’s existing Product Analytics suite.
    • Released the new report, State of DevSecOps 2025, which found that only a fraction of critical vulnerabilities are truly worth prioritizing.
    • Acquired Metaplane, an end-to-end data observability platform that provides advanced machine learning-powered monitoring and column-level lineage to prevent, detect and resolve data quality issues across a company’s entire data stack.
    • Named a Leader in The Forrester Wave™: AIOps Platforms, Q2 2025. Datadog’s AIOps solutions include Bits AI, Watchdog and Event Management.
    • Highlighted multiple recent product launches at Google Cloud Next, including expanded monitoring capabilities for BigQuery.
    • Announced plans for a new data center to be located in Australia. The data center instance will be Datadog’s first in Australia and adds to existing locations in North America, Asia, and Europe.
    • Opened registration for DASH, Datadog’s eighth annual global conference for CIOs, CISOs, developers, SREs, and security and operations professionals, to build and scale the next generation of applications, infrastructure, security, GenAI and teams. The conference will take place June 10-11, 2025 at North Javits Center in New York City.

    Second Quarter and Full Year 2025 Outlook:

    Based on information as of today, May 6, 2025, Datadog is providing the following guidance:

    • Second Quarter 2025 Outlook:
      • Revenue between $787 million and $791 million.
      • Non-GAAP operating income between $148 million and $152 million.
      • Non-GAAP net income per share between $0.40 and $0.42, assuming approximately 361 million weighted average diluted shares outstanding.
    • Full Year 2025 Outlook:
      • Revenue between $3.215 billion and $3.235 billion.
      • Non-GAAP operating income between $625 million and $645 million.
      • Non-GAAP net income per share between $1.67 and $1.71, assuming approximately 362 million weighted average diluted shares outstanding.

    Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.

    Conference Call Details:

    • What: Datadog financial results for the first quarter of 2025 and outlook for the second quarter and the full year 2025
    • When: May 6, 2025 at 8:00 A.M. Eastern Time (5:00 A.M. Pacific Time)
    • Dial in: To access the call in the U.S., please register here. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
    • Webcast: https://investors.datadoghq.com (live and replay)
    • Replay: A replay of the call will be archived on the investor relations website

    About Datadog

    Datadog is the observability and security platform for cloud applications. Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for our customers’ entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior, and track key business metrics.

    Forward-Looking Statements

    This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog’s strategy, product and platform capabilities, the growth in and ability to capitalize on long-term market opportunities including the pace and scope of cloud migration and digital transformation, gross margins and operating margins including with respect to third-party cloud infrastructure hosting costs, sales and marketing, research and development expenses, net interest and other income, cash taxes, investments and capital expenditures, and Datadog’s future financial performance, including its outlook for the second quarter and the full year 2025 and related notes and assumptions. These forward-looking statements are based on Datadog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

    The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our dependence on existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; and (12) general market, political, economic, and business conditions including concerns about trade policies, tariffs, reduced economic growth and associated decreases in information technology spending. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

    About Non-GAAP Financial Measures

    Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, free cash flow and free cash flow margin. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog’s financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog’s reported financial results.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

    Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) employer payroll taxes on employee stock transactions; (4) amortization of issuance costs; and (5) an assumed provision for income taxes based on our long-term projected tax rate. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in Datadog’s geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs, if any. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

    Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog’s operating performance due to the following factors:

    Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

    Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.

    Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog’s common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog’s business.

    Amortization of issuance costs. In June 2020 and December 2024, Datadog issued $747.5 million of 0.125% convertible senior notes due 2025 and $1.0 billion of 0% convertible senior notes due 2029, respectively. Debt issuance costs, which reduce the carrying value of the convertible debt instrument, are amortized as interest expense over the term. The expense for the amortization of debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

    Additionally, Datadog’s management believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. Free cash flow represents net cash provided by operating activities, reduced by capital expenditures and capitalized software development costs, if any. The reduction of capital expenditures and amounts capitalized for software development facilitates comparisons of Datadog’s liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.

    Operating Metrics

    Datadog’s number of customers with ARR of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter.

    We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.

    We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.

     
    Datadog, Inc.
    Condensed Consolidated Statements of Operations
    (In thousands, except per share data; unaudited)
     
        Three Months Ended
    March 31,
          2025       2024  
    Revenue   $ 761,553     $ 611,253  
    Cost of revenue (1)(2)(3)     157,628       110,098  
    Gross profit     603,925       501,155  
    Operating expenses:        
    Research and development (1)(3)     341,061       269,988  
    Sales and marketing (1)(2)(3)     214,291       173,881  
    General and administrative (1)(3)     60,993       45,290  
    Total operating expenses     616,345       489,159  
    Operating (loss) income     (12,420 )     11,996  
    Other income:        
    Interest expense (4)     (2,963 )     (1,374 )
    Interest income and other income, net     47,179       35,563  
    Other income, net     44,216       34,189  
    Income before provision for income taxes     31,796       46,185  
    Provision for income taxes     7,154       3,554  
    Net income   $ 24,642     $ 42,631  
    Net income per share – basic   $ 0.07     $ 0.13  
    Net income per share – diluted   $ 0.07     $ 0.12  
    Weighted average shares used in calculating net income per share:        
    Basic     343,097       331,806  
    Diluted     363,078       355,979  
    (1) Includes stock-based compensation expense as follows:        
    Cost of revenue   $ 6,651     $ 5,527  
    Research and development     105,735       88,413  
    Sales and marketing     34,125       28,531  
    General and administrative     17,754       12,562  
    Total   $ 164,265     $ 135,033  
    (2) Includes amortization of acquired intangibles as follows:        
    Cost of revenue   $ 894     $ 2,027  
    Sales and marketing     203       205  
    Total   $ 1,097     $ 2,232  
    (3) Includes employer payroll taxes on employee stock transactions as follows:                
    Cost of revenue   $ 186     $ 192  
    Research and development     9,582       10,819  
    Sales and marketing     1,570       2,153  
    General and administrative     2,225       2,057  
    Total   $ 13,563     $ 15,221  
    (4) Includes amortization of issuance costs as follows:        
    Interest expense   $ 1,819     $ 850  
    Total   $ 1,819     $ 850  
    Datadog, Inc.
    Condensed Consolidated Balance Sheets
    (In thousands; unaudited)
     
        March 31,
    2025
      December 31,
    2024
    ASSETS        
    CURRENT ASSETS:        
    Cash and cash equivalents   $ 1,079,854     $ 1,246,983  
    Marketable securities     3,369,820       2,942,076  
    Accounts receivable, net of allowance for credit losses of $17,707 and $16,302 as of March 31, 2025 and December 31, 2024, respectively     490,172       598,919  
    Deferred contract costs, current     58,832       56,095  
    Prepaid expenses and other current assets     77,660       67,042  
    Total current assets     5,076,338       4,911,115  
    Property and equipment, net     249,916       226,970  
    Operating lease assets     203,074       172,512  
    Goodwill     361,738       360,381  
    Intangible assets, net     2,626       3,711  
    Deferred contract costs, non-current     90,501       86,573  
    Other assets     26,188       24,077  
    TOTAL ASSETS   $ 6,010,381     $ 5,785,339  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    CURRENT LIABILITIES:        
    Accounts payable   $ 98,442     $ 107,731  
    Accrued expenses and other current liabilities     138,238       127,136  
    Operating lease liabilities, current     34,228       31,970  
    Convertible senior notes, net, current     634,780       634,023  
    Deferred revenue, current     949,135       961,853  
    Total current liabilities     1,854,823       1,862,713  
    Operating lease liabilities, non-current     227,974       196,905  
    Convertible senior notes, net, non-current     980,314       979,282  
    Deferred revenue, non-current     21,560       22,693  
    Other liabilities     9,036       9,383  
    Total liabilities     3,093,707       3,070,976  
    STOCKHOLDERS’ EQUITY:        
    Common stock     3       3  
    Additional paid-in capital     2,860,643       2,689,013  
    Accumulated other comprehensive income (loss)     1,338       (4,701 )
    Retained earnings     54,690       30,048  
    Total stockholders’ equity     2,916,674       2,714,363  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 6,010,381     $ 5,785,339  
    Datadog, Inc.
    Condensed Consolidated Statements of Cash Flow
    (In thousands; unaudited)
     
        Three Months Ended
    March 31,
          2025       2024  
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net income   $ 24,642     $ 42,631  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization     11,255       12,895  
    Accretion of discounts on marketable securities     (10,370 )     (14,126 )
    Amortization of issuance costs     1,819       850  
    Amortization of deferred contract costs     14,853       11,844  
    Stock-based compensation, net of amounts capitalized     164,265       135,033  
    Non-cash lease expense     8,389       6,810  
    Allowance for credit losses on accounts receivable     4,520       2,732  
    (Gain) loss on disposal of property and equipment     (145 )     43  
    Changes in operating assets and liabilities:        
    Accounts receivable, net     104,227       55,490  
    Deferred contract costs     (21,519 )     (12,636 )
    Prepaid expenses and other current assets     (10,263 )     (14,075 )
    Other assets     (1,217 )     2,614  
    Accounts payable     (10,712 )     (17,122 )
    Accrued expenses and other liabilities     5,648       (7,433 )
    Deferred revenue     (13,851 )     6,720  
    Net cash provided by operating activities     271,541       212,270  
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Purchases of marketable securities     (970,302 )     (637,351 )
    Maturities of marketable securities     555,938       401,666  
    Proceeds from sale of marketable securities     (76 )      
    Purchases of property and equipment     (8,748 )     (14,158 )
    Capitalized software development costs     (18,402 )     (11,365 )
    Cash paid for acquisition of businesses; net of cash acquired     (1,818 )      
    Net cash used in investing activities     (443,408 )     (261,208 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Proceeds from exercise of stock options     1,673       2,191  
    Repayments of 2025 Convertible Senior Notes     (20 )      
    Net cash provided by financing activities     1,653       2,191  
             
    Effect of exchange rate changes on cash and cash equivalents     3,085       (1,374 )
             
    NET DECREASE IN CASH AND CASH EQUIVALENTS     (167,129 )     (48,121 )
    CASH AND CASH EQUIVALENTS—Beginning of period     1,246,983       330,339  
    CASH AND CASH EQUIVALENTS—End of period   $ 1,079,854     $ 282,218  
    Datadog, Inc.
    Reconciliation from GAAP to Non-GAAP Results
    (In thousands, except per share data; unaudited)
     
        Three Months Ended
    March 31,
          2025       2024  
    Reconciliation of gross profit and gross margin        
    GAAP gross profit   $ 603,925     $ 501,155  
    Plus: Stock-based compensation expense     6,651       5,527  
    Plus: Amortization of acquired intangibles     894       2,027  
    Plus: Employer payroll taxes on employee stock transactions     186       192  
    Non-GAAP gross profit   $ 611,656     $ 508,901  
    GAAP gross margin     79 %     82 %
    Non-GAAP gross margin     80 %     83 %
             
    Reconciliation of operating expenses        
    GAAP research and development   $ 341,061     $ 269,988  
    Less: Stock-based compensation expense     (105,735 )     (88,413 )
    Less: Employer payroll taxes on employee stock transactions     (9,582 )     (10,819 )
    Non-GAAP research and development   $ 225,744     $ 170,756  
             
    GAAP sales and marketing   $ 214,291     $ 173,881  
    Less: Stock-based compensation expense     (34,125 )     (28,531 )
    Less: Amortization of acquired intangibles     (203 )     (205 )
    Less: Employer payroll taxes on employee stock transactions     (1,570 )     (2,153 )
    Non-GAAP sales and marketing   $ 178,393     $ 142,992  
             
    GAAP general and administrative   $ 60,993     $ 45,290  
    Less: Stock-based compensation expense     (17,754 )     (12,562 )
    Less: Employer payroll taxes on employee stock transactions     (2,225 )     (2,057 )
    Non-GAAP general and administrative   $ 41,014     $ 30,671  
             
    Reconciliation of operating (loss) income and operating margin        
    GAAP operating (loss) income   $ (12,420 )   $ 11,996  
    Plus: Stock-based compensation expense     164,265       135,033  
    Plus: Amortization of acquired intangibles     1,097       2,232  
    Plus: Employer payroll taxes on employee stock transactions     13,563       15,221  
    Non-GAAP operating income   $ 166,505     $ 164,482  
    GAAP operating margin     (2 )%     2 %
    Non-GAAP operating margin     22 %     27 %
    Datadog, Inc.
    Reconciliation from GAAP to Non-GAAP Results
    (In thousands, except per share data; unaudited)
     
        Three Months Ended
    March 31,
          2025       2024  
    Reconciliation of net income (loss)        
    GAAP net income (loss)   $ 24,642     $ 42,631  
    Plus: Stock-based compensation expense     164,265       135,033  
    Plus: Amortization of acquired intangibles     1,097       2,232  
    Plus: Employer payroll taxes on employee stock transactions     13,563       15,221  
    Plus: Amortization of issuance costs     1,819       850  
    Non-GAAP net income before non-GAAP tax adjustments   $ 205,386     $ 195,967  
    Income tax effects and adjustments (1)     37,479       38,345  
    Non-GAAP net income after non-GAAP tax adjustments   $ 167,907     $ 157,622  
    Net income per share before non-GAAP tax adjustments – basic   $ 0.60     $ 0.59  
    Net income per share before non-GAAP tax adjustments – diluted   $ 0.57     $ 0.55  
             
    Net income per share after non-GAAP tax adjustments – basic   $ 0.49     $ 0.48  
    Net income per share after non-GAAP tax adjustments – diluted   $ 0.46     $ 0.44  
             
    Shares used in non-GAAP net income per share calculations:        
    Basic     343,097       331,806  
    Diluted     363,078       355,979  
    ___________________
    1) Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our long-term projected tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.
    Datadog, Inc.
    Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow
    (In thousands; unaudited)
     
        Three Months Ended
    March 31,
          2025       2024  
    Net cash provided by operating activities   $ 271,541     $ 212,270  
    Less: Purchases of property and equipment     (8,748 )     (14,158 )
    Less: Capitalized software development costs     (18,402 )     (11,365 )
    Free cash flow   $ 244,391     $ 186,747  
    Free cash flow margin     32 %     31 %

    Contact Information
    Yuka Broderick
    Datadog Investor Relations
    IR@datadoghq.com

    Dan Haggerty
    Datadog Public Relations
    Press@datadoghq.com

    Datadog is a registered trademark of Datadog, Inc.
    All product and company names herein may be trademarks of their registered owners.

    The MIL Network

  • MIL-OSI: Willis Lease Finance Corporation Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Delivers Pre-Tax Income of $25.3 Million and Record Quarterly Revenue of $157.7 Million

    Declares Second Quarter 2025 Dividend of $0.25 Per Share

    COCONUT CREEK, Fla., May 06, 2025 (GLOBE NEWSWIRE) — Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced its financial results for the first quarter ended March 31, 2025. The Company also announced a quarterly dividend of $0.25 per share, payable on May 22, 2025, to shareholders of record as of the close of business on May 12, 2025.

    First Quarter 2025 Highlights (All metrics compared to first quarter 2024, except where noted)

    • Total, record, quarterly revenues of $157.7 million, an increase of 32.5%
    • Solid quarterly pre-tax income of $25.3 million
    • Lease rent revenue of $67.7 million, an increase of 28.1%
    • Maintenance reserve revenue of $54.9 million, an increase of 25.0%
    • Spare parts and equipment sales of $18.2 million, compared to $3.3 million
    • Portfolio utilization increased to 86.4% at quarter end, compared to 76.7% at year end 2024

    For the three months ended March 31, 2025, total revenue was $157.7 million, up 32.5% as compared to $119.1 million for the same period in 2024. For the first quarter of 2025, core lease rent and maintenance reserve revenues were $122.6 million in the aggregate, up 27% as compared to $96.8 million for the same period in 2024. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with the continued strength of the aviation marketplace, as airlines leverage the Company’s leasing, parts and maintenance capabilities to avoid protracted, expensive engine shop visits.

    “WLFC’s strong first quarter 2025 financial results reflect the strength in our business model, which enables us to provide advanced and efficient solutions to airlines,” said Austin C. Willis, Chief Executive Officer of WLFC. “While concerns over tariffs have created market volatility, we remain confident in the drivers of our business. The cost of new engines continues to drive operators towards leasing, and our maintenance capabilities and programs provide value and certainty for cost conscious airlines.”

    First Quarter 2025 Operating Results

    Maintenance reserve revenue for the quarter ended March 31, 2025, was $54.9 million, compared to $43.9 million for the quarter ended March 31, 2024, reflecting the increased size of the Company’s lease portfolio and leases on short-term lease conditions.

    Engines on lease with “non-reimbursable” usage fees generated $45.3 million of short-term maintenance revenues for the quarter ended March 31, 2025, compared to $37.6 million for the quarter ended March 31, 2024.

    During the first quarter of 2025, the Company recognized $9.6 million of long-term maintenance revenue, compared to $6.3 million for the quarter ended March 31, 2024. Long-term maintenance revenue is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet.

    Spare parts and equipment sales increased to $18.2 million for the quarter ended March 31, 2025, compared to $3.3 million for the quarter ended March 31, 2024. The year-over-year increase in spare parts sales reflects the heightened demand for surplus material as operators extend the lives of their current generation engine portfolios. The increase was influenced by a discrete $7.0 million sale. Equipment sales for the three months ended March 31, 2025, were $2.2 million for the sale of one engine. There were no equipment sales for the three months ended March 31, 2024.

    For the quarter ended March 31, 2025, the gain on sale of leased equipment was $4.4 million, reflecting the sale of seven engines, one airframe, and other parts and equipment from the lease portfolio. During the three months ended March 31, 2024, the Company sold eight engines and other parts and equipment for a net gain of $9.2 million.

    General and administrative expenses were influenced by an $11.4 million increase in consultant-related fees predominantly related to the Company’s sustainable aviation fuel project. As the project is in its early design stage, we have expensed the related costs, which is in line with accounting principles generally accepted in the United States (“GAAP”).

    The book value of lease assets owned either directly or through WLFC’s joint ventures, inclusive of the Company’s equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases was $3,219.9 million as of March 31, 2025.

    Balance Sheet

    As of March 31, 2025, the Company’s lease portfolio was $2,819.5 million, consisting of $2,597.8 million of equipment held in its operating lease portfolio, $179.3 million of notes receivable, $25.2 million of maintenance rights, and $17.3 million of investments in sales-type leases, which represented 347 engines, 15 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2024, the Company’s lease portfolio was $2,872.3 million, consisting of $2,635.9 million of equipment held in its operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases, which represented 354 engines, 16 aircraft, one marine vessel and other leased parts and equipment.

    Conference Call

    WLFC will hold a conference call today at 10:00 a.m. Eastern Daylight Time to discuss its first quarter 2025 results. To participate in the conference call or webcast, please use the following dial-in numbers or visit the webcast link.

    U.S. and Canada: +1 (800) 289-0459
    International: +1 (646) 828-8082
    Conference ID: 578662
    https://event.webcasts.com/starthere.jsp?ei=1716437&tp_key=f56060bee8

    A replay of the conference call will be available two hours after the completion of the conference call. To access the replay, please visit our website at www.wlfc.global under the Investor Relations section for details.

    About Willis Lease Finance Corporation

    Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

    Forward-Looking Statements

    Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Any forward-looking statement made by the Company is based only on information currently available to the Company and speaks only as of the date on which it is made. We undertake no obligation to update them, except as may be required by law. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and pandemics; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.

       
    Contact: Scott B. Flaherty
      Executive Vice President & Chief Financial Officer
      561.413.0112
       

    Unaudited Condensed Consolidated Statements of Income
    (In thousands, except per share data) 

      Three months ended March 31,    
        2025       2024     % Change
    REVENUE          
    Lease rent revenue $ 67,739     $ 52,881       28.1 %
    Maintenance reserve revenue   54,859       43,870       25.0 %
    Spare parts and equipment sales   18,240       3,288       454.7 %
    Interest revenue   3,934       2,269       73.4 %
    Gain on sale of leased equipment   4,437       9,201       (51.8) %
    Gain on sale of financial assets   378           nm
    Maintenance services revenue   5,586       5,227       6.9 %
    Other revenue   2,559       2,347       9.0 %
    Total revenue   157,732       119,083       32.5 %
               
    EXPENSES          
    Depreciation and amortization expense   25,024       22,486       11.3 %
    Cost of spare parts and equipment sales   15,323       2,705       466.5 %
    Cost of maintenance services   5,329       5,574       (4.4) %
    Write-down of equipment   2,109       261       708.0 %
    General and administrative   47,720       29,581       61.3 %
    Technical expense   6,230       8,255       (24.5) %
    Net finance costs:          
    Interest expense   32,094       23,003       39.5 %
    Total net finance costs   32,094       23,003       39.5 %
    Total expenses   133,829       91,865       45.7 %
               
    Income from operations   23,903       27,218       (12.2) %
    Income from joint ventures   1,351       2,674       (49.5) %
    Income before income taxes   25,254       29,892       (15.5) %
    Income tax expense   8,385       9,023       (7.1) %
    Net income   16,869       20,869       (19.2) %
    Preferred stock dividends   1,323       900       47.0 %
    Accretion of preferred stock issuance costs   70       12       483.3 %
    Net income attributable to common shareholders $ 15,476     $ 19,957       (22.5) %
               
    Basic weighted average income per common share $ 2.34     $ 3.12      
    Diluted weighted average income per common share $ 2.21     $ 3.00      
               
    Basic weighted average common shares outstanding   6,606       6,387      
    Diluted weighted average common shares outstanding   7,000       6,659      
                       

    Unaudited Condensed Consolidated Balance Sheets
    (In thousands, except per share data)

        March 31, 2025   December 31, 2024
    ASSETS        
    Cash and cash equivalents   $ 32,356     $ 9,110  
    Restricted cash     116,737       123,392  
    Equipment held for operating lease, less accumulated depreciation     2,597,792       2,635,910  
    Maintenance rights     25,167       31,134  
    Equipment held for sale     19,125       12,269  
    Receivables, net     41,504       38,291  
    Spare parts inventory     67,318       72,150  
    Investments     65,210       62,670  
    Property, equipment & furnishings, less accumulated depreciation     54,342       48,061  
    Intangible assets, net     1,601       2,929  
    Notes receivable, net     179,283       183,629  
    Investments in sales-type leases, net     17,271       21,606  
    Other assets     56,927       56,045  
    Total assets   $ 3,274,633     $ 3,297,196  
             
    LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY        
    Liabilities:        
    Accounts payable and accrued expenses   $ 56,855     $ 75,983  
    Deferred income taxes     191,297       185,049  
    Debt obligations     2,231,593       2,264,552  
    Maintenance reserves     104,452       97,817  
    Security deposits     24,090       23,424  
    Unearned revenue     37,666       37,911  
    Total liabilities     2,645,953       2,684,736  
             
    Redeemable preferred stock ($0.01 par value)     63,192       63,122  
             
    Shareholders’ equity:        
    Common stock ($0.01 par value)     74       72  
    Paid-in capital in excess of par     57,967       50,928  
    Retained earnings     505,083       491,439  
    Accumulated other comprehensive income, net of tax     2,364       6,899  
    Total shareholders’ equity     565,488       549,338  
    Total liabilities, redeemable preferred stock and shareholders’ equity   $ 3,274,633     $ 3,297,196  

    The MIL Network

  • MIL-OSI: ARRAY Technologies, Inc. Reports Financial Results for the First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    2025 First Quarter Highlights

    • Revenue of $302.4 million
    • Gross Margin of 25.3%
    • Adjusted gross margin(1) of 26.5%
    • Net income to common shareholders of $2.3 million
    • Adjusted EBITDA(1) of $40.6 million
    • Net income per basic and diluted share of $0.02
    • Adjusted net income per diluted share(1) of $0.13
    • Total executed contracts and awarded orders at March 31, 2025 were $2.0 billion
    • Successfully amended and extended our Revolving Credit Facility(2)

    ALBUQUERQUE, N.M., May 06, 2025 (GLOBE NEWSWIRE) — ARRAY Technologies, Inc. (NASDAQ: ARRY) (“ARRAY” or the “Company”), a leading global provider of solar tracking technology products, systems and services, today announced financial results for its first quarter ended March 31, 2025.

    “ARRAY is off to a great start for 2025 with first quarter high double digits revenue growth compared with the first quarter of 2024, and achieving the second largest quarter of volume shipped since 2023, indicating solid market share recovery and the strength of our execution capabilities. We are now able to provide customers with quotes for our 100% domestic content trackers under Table I of the Inflation Reduction Act (“IRA”), an important milestone for ARRAY, reflecting our continued commitment to supply chain resilience and ability to minimize effects of geopolitical uncertainty, including tariffs. With electricity demand increasing and utility-scale solar being the lowest cost and fastest-growing energy source, domestic customers are expressing greater interest in Volume Commitment Agreements, and we are well positioned to help our customers deploy projects quickly and efficiently. We have a strong orderbook with 18% sequential growth in contracting for the quarter, gaining meaningful traction with Independent Power Producers across Europe, the Middle East and Asia, where we are seeing strong contracting momentum,” said Chief Executive Officer, Kevin G. Hostetler.

    Mr. Hostetler continued, “Amidst global economic uncertainty related to tariffs, and potential changes to the IRA, we are confident in our ability to navigate changes in the utility-scale solar landscape. As we look forward to building on a strong first quarter, we have flexibility with the strength of our available liquidity, no near-term refinancing requirements, robust operational capabilities and an agile team. We maintain our full year 2025 guidance and remain focused on long-term value creation, deepening customer partnerships, and demonstrating consistent product leadership.”

    Full Year 2025 Guidance

    For the year ending December 31, 2025, the Company maintains guidance:

    • Revenue to be in the range of $1.05 billion to $1.15 billion
    • Adjusted EBITDA(3)(4) to be in the range of $180 million to $200 million
    • Adjusted net income per share(3)(4) to be in the range of $0.60 to $0.70

    (1) A reconciliation of the most comparable GAAP measure to its Non-GAAP measure is included below.

    (2) Matures October 2028 or July 2027 if Term Loan under the Credit Agreement remains outstanding as of July 2027.

    (3) Guidance includes benefits related to the Inflation Reduction Act Section 45X Advanced Manufacturing Production Credit for torque tube and structural fastener manufacturing.

    (4) A reconciliation of projected Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income per share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income per share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2025 guidance, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results.

    Supplemental Presentation and Conference Call Information

    ARRAY has posted a supplemental presentation to its website, which will be discussed during the conference call hosted by management today (May 6, 2025) at 8:00 a.m. (ET). The conference call can be accessed live over the phone by dialing (877)869-3847 (domestic) or (201)689-8261 (international) and entering the passcode 13752974, or via webcast of the live conference call by logging onto the Investor Relations section of the Company’s website at http://ir.arraytechinc.com. A telephonic replay will be available approximately three hours after the call by dialing (877)660-6853 (domestic), or (201)612-7415 (international), with the passcode 13752974. The replay will be available until 11:59 p.m. (ET) on May 20, 2025. The online replay will be available for 30 days on the same website, immediately following the call.

    About ARRAY Technologies, Inc.

    ARRAY Technologies, Inc. (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology – relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.

    Investor Relations Contact:

    H. Keith Jennings
    505-437-0010
    investors@arraytechinc.com

    Media Contact:

    Nicole Stewart
    505-589-8257

    Forward-Looking Statements

    This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing and investment plans, competitive position, industry and regulatory environment, including potential regulatory reform related to energy credits, uncertainty relating the implementation of tariffs and changes in trade policy, ability to provide 100% domestic content trackers, expectations regarding the macroeconomic environment and geopolitical developments, including the effects of tariffs, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” “designed to” or similar expressions and the negatives of those terms.

    Array’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in the cost and availability of raw materials as a result of tariffs and other geopolitical uncertainty, changes in growth or rate of growth in demand for solar energy projects; competitive pressures within our industry; factors affecting viability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems, which may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary right; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information; a failure to maintain an effective system of integrated internal controls over financial reporting; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers, including our ability to optimize those changes brought about by the passage of the IRA or any repeal thereof; and the other risks and uncertainties described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC, each of which can be found on our website, www.arraytechinc.com.

    Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this report. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

    Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

    Non-GAAP Financial Information

    This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per share, Adjusted general and administrative expense and Free cash flow.

    We define Adjusted gross profit as gross profit plus (i) amortization of developed technology and (ii) other costs if applicable. We define Adjusted gross margin as Adjusted gross profit as a percentage of revenue. We define Adjusted EBITDA as net income (loss) to common shareholders plus (i) other expense, net, (ii) foreign currency (gain) loss, net, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax expense (benefit), (vi) depreciation expense, (vii) amortization of intangibles, (viii) amortization of developed technology, (ix) equity-based compensation, (x) change in fair value of contingent consideration, (xi) certain legal expenses, and (xii) other costs. We define Adjusted net income as net income (loss) to common shareholders plus (i) amortization of intangibles, (ii) amortization of developed technology, (iii) amortization of debt discount and issuance costs (iv) Series A preferred stock accretion, (v) equity-based compensation, (vi) change in fair value of contingent consideration, (vii) certain legal expenses, (viii) other costs, and (ix) income tax (benefit) expense adjustments. We define Adjusted general and administrative expense as general and administrative expense less (i) equity based compensation, (ii) certain legal expenses, and (iii) other costs. We define Free cash flow as Cash provided by (used in) operating activities less purchase of property, plant and equipment.

    A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this press release. We calculate net income (loss) per share as net income (loss) to common shareholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted net income per share as Adjusted net income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period.

    We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.

    Among other limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP.

    We compensate for these limitations by relying primarily on our GAAP results and using Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income on a supplemental basis.

    You should review the reconciliation of gross profit to Adjusted gross profit and net income (loss) to Adjusted EBITDA and Adjusted net income below and not rely on any single financial measure to evaluate our business.

    Array Technologies, Inc. 
    Condensed Consolidated Balance Sheets (unaudited)
    (in thousands, except per share and share amounts)
     
      March 31,
    2025
      December 31,
    2024
    ASSETS
    Current assets      
    Cash and cash equivalents $ 348,324     $ 362,992  
    Restricted cash   1,169       1,149  
    Accounts receivable, net of allowance of $6,601 and $4,848, respectively   282,575       275,838  
    Inventories, net   186,875       200,818  
    Prepaid expenses and other   157,348       157,927  
    Total current assets   976,291       998,724  
           
    Property, plant and equipment, net   28,740       26,222  
    Goodwill   164,221       160,189  
    Other intangible assets, net   176,347       181,409  
    Deferred income tax assets   16,049       17,754  
    Other assets   64,110       41,701  
    Total assets $ 1,425,758     $ 1,425,999  
           
    LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
    Current liabilities      
    Accounts payable $ 153,781     $ 172,368  
    Accrued expenses and other   77,576       91,183  
    Accrued warranty reserve   2,045       2,063  
    Income tax payable   8,734       5,227  
    Deferred revenue   120,225       119,775  
    Current portion of contingent consideration   2,528       1,193  
    Current portion of debt   34,472       30,714  
    Other current liabilities   9,132       15,291  
    Total current liabilities   408,493       437,814  
           
    Deferred income tax liabilities   21,634       21,398  
    Contingent consideration, net of current portion   5,179       7,868  
    Other long-term liabilities   17,311       18,684  
    Long-term warranty   5,021       4,830  
    Long-term debt, net of current portion   644,520       646,570  
    Total liabilities   1,102,158       1,137,164  
           
    Commitments and contingencies (Note 11)      
           
    Series A Redeemable Perpetual Preferred Stock of $0.001 par value; 500,000 authorized; 468,122 and 460,920 shares issued as of March 31, 2025 and December 31, 2024, respectively; liquidation preference of $493.1 million at both dates   421,374       406,931  
           
    Stockholders’ equity      
    Preferred stock of $0.001 par value – 4,500,000 shares authorized; none issued at respective dates          
    Common stock of $0.001 par value – 1,000,000,000 shares authorized; 152,512,805 and 151,951,652 shares issued at respective dates   151       151  
    Additional paid-in capital   286,079       297,780  
    Accumulated deficit   (353,878 )     (370,624 )
    Accumulated other comprehensive income   (30,126 )     (45,403 )
    Total stockholders’ equity   (97,774 )     (118,096 )
    Total liabilities, redeemable perpetual preferred stock and stockholders’ equity $ 1,425,758     $ 1,425,999  
    Array Technologies, Inc.
    Condensed Consolidated Statements of Operations (unaudited)
    (in thousands, except per share amounts)
     
      Three Months Ended March 31,
        2025       2024  
    Revenue $ 302,363     $ 153,403  
    Cost of revenue      
    Cost of product and service revenue   222,296       94,674  
    Amortization of developed technology   3,639       3,639  
    Total cost of revenue   225,935       98,313  
    Gross profit   76,428       55,090  
           
    Operating expenses      
    General and administrative   43,945       37,784  
    Change in fair value of contingent consideration   (150 )     (735 )
    Depreciation and amortization   5,349       9,627  
    Total operating expenses   49,144       46,676  
           
    Income from operations   27,284       8,414  
           
    Other expense, net   23       814  
    Interest income   3,319       3,680  
    Foreign currency gain (loss), net   689       (499 )
    Interest expense   (8,035 )     (8,940 )
    Total other expense, net   (4,004 )     (4,945 )
           
    Income before income tax expense   23,280       3,469  
    Income tax expense   6,534       1,304  
    Net income   16,746       2,165  
    Preferred dividends and accretion   14,443       13,502  
    Net income (loss) to common shareholders $ 2,303     $ (11,337 )
           
    Income (loss) per common share      
    Basic $ 0.02     $ (0.07 )
    Diluted $ 0.02     $ (0.07 )
    Weighted average number of common shares outstanding      
    Basic   152,076       151,351  
    Diluted   152,783       151,351  
    Array Technologies, Inc. and Subsidiaries
    Consolidated Statements of Cash Flows (unaudited)
    (in thousands)
     
      Three Months Ended March 31,
        2025       2024  
    Operating activities      
    Net income $ 16,746     $ 2,165  
    Adjustments to reconcile net income to cash provided by operating activities:      
    Provision for bad debts   1,671       896  
    Deferred tax expense (benefit)   1,024       (13 )
    Depreciation and amortization   5,932       10,125  
    Amortization of developed technology   3,639       3,639  
    Amortization of debt discount and issuance costs   1,506       1,553  
    Equity-based compensation   2,798       3,926  
    Change in fair value of contingent consideration   (150 )     (735 )
    Warranty provision   1,720       (1,138 )
    Inventory reserve   839       600  
    Changes in working capital, net   (48,784 )     26,484  
    Net cash provided by (used in) operating activities   (13,059 )     47,502  
    Investing activities      
    Purchase of property, plant and equipment   (2,352 )     (2,396 )
    Retirement/disposal of property, plant and equipment         10  
    Net cash used in investing activities   (2,352 )     (2,386 )
    Financing activities      
    Proceeds from issuance of other debt   7,862       2,283  
    Principal payments on other debt   (7,294 )     (3,781 )
    Principal payments on term loan facility   (1,075 )     (1,070 )
    Contingent consideration payments   (1,204 )     (1,427 )
    Other financing   (14 )     (580 )
    Net cash used in financing activities   (1,725 )     (4,575 )
    Effect of exchange rate changes on cash and cash equivalent balances   2,488       (2,001 )
    Net change in cash and cash equivalents and restricted cash   (14,648 )     38,540  
    Cash and cash equivalents, and restricted cash beginning of period   364,141       249,080  
    Cash and cash equivalents and restricted cash, end of period $ 349,493     $ 287,620  
    Array Technologies, Inc.
    Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited)
    (in thousands, except per share amounts)
    The following table reconciles Gross profit to Adjusted gross profit:
      Three Months Ended March 31,
      2025   2024
    Revenue 302,363     153,403  
    Cost of revenue 225,935     98,313  
    Gross profit 76,428     55,090  
    Gross margin 25.3 %   35.9 %
           
    Amortization of developed technology 3,639     3,639  
    Adjusted gross profit 80,067     58,729  
    Adjusted gross margin 26.5 %   38.3 %

    The following table reconciles net income (loss) to Adjusted EBITDA:

      Three Months Ended March 31,
        2025       2024  
    Net income $ 16,746     $ 2,165  
    Preferred dividends and accretion   14,443       13,502  
    Net income (loss) to common shareholders $ 2,303     $ (11,337 )
    Other expense, net   (3,342 )     (4,494 )
    Foreign currency gain (loss), net   (689 )     499  
    Preferred dividends and accretion   14,443       13,502  
    Interest expense   8,035       8,940  
    Income tax expense (benefit)   6,534       1,304  
    Depreciation expense   1,043       883  
    Amortization of intangibles   4,889       9,254  
    Amortization of developed technology   3,639       3,639  
    Equity-based compensation   2,798       4,020  
    Change in fair value of contingent consideration   (150 )     (735 )
    Certain legal expenses(a)   1,083       730  
    Other costs(b)         42  
    Adjusted EBITDA $ 40,586     $ 26,247  


    (a)
    Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

    Array Technologies, Inc.
    Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited)
    (in thousands, except per share amounts)
    The following table reconciles net income (loss) to Adjusted net income:
      Three Months Ended March 31,
        2025       2024  
    Net income $ 16,746     $ 2,165  
    Preferred dividends and accretion   14,443       13,502  
    Net income (loss) to common shareholders $ 2,303     $ (11,337 )
    Amortization of Intangibles   4,889       9,254  
    Amortization of developed technology   3,639       3,639  
    Amortization of debt discount and issuance costs   1,393       1,552  
    Series A Pref stock accretion   7,241       6,665  
    Equity based compensation   2,798       4,020  
    Change in fair value of contingent consideration   (150 )     (735 )
    Certain legal expenses (a)   1,083       730  
    Other costs(b)         42  
    Income tax expense of adjustments(c)   (3,474 )     (4,852 )
    Adjusted net income $ 19,722     $ 8,978  
           
    Income (loss) per common share      
    Basic $ 0.02     $ (0.07 )
    Diluted $ 0.02     $ (0.07 )
    Weighted average number of common shares outstanding      
    Basic   152,076       151,351  
    Diluted   152,783       151,351  
           
    Adjusted net income per common share      
    Basic $ 0.13     $ 0.06  
    Diluted $ 0.13     $ 0.06  
    Weighted average number of common shares outstanding      
    Basic   152,076       151,351  
    Diluted   152,783       152,243  


    (a)
    Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

    (c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

    Array Technologies, Inc.
    Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited)
    (in thousands, except per share amounts)
    The following table reconciles General and administrative expense to Adjusted general and administrative expense:
      Three Months Ended March 31,
      2025   2024
    General and administrative expense 43,945     37,784  
    Equity based compensation (2,798 )   (4,020 )
    Certain legal expenses(a) (1,083 )   (730 )
    Other costs(b)     (42 )
    Adjusted general and administrative expense 40,064     32,992  


    (a)
    Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

    The following table reconciles cash provided by (used in) operating activities to Free cash flow:

      Three Months Ended March 31,
      2025   2024
    Net cash provided by (used in) operating activities (13,059 )   47,502  
    Purchase of property, plant and equipment (2,352 )   (2,396 )
    Free cash flow (15,411 )   45,106  

    The MIL Network

  • MIL-OSI: SiriusPoint reports tenth consecutive quarter of underwriting profits and strong net income of $58m

    Source: GlobeNewswire (MIL-OSI)

    HAMILTON, Bermuda, May 05, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today announced results for its first quarter ended March 31, 2025

    • Combined ratio of 95.4% in the first quarter for Core business with underwriting income of $29 million
    • Net premiums written growth of 20%, outpacing gross premiums written growth of 12% in the quarter for Core business, with strong growth from Insurance & Services
    • First quarter return on equity of 12.9%, within 12-15% ‘across the cycle’ return on equity target range
    • $59 million net impact from California Wildfires in the quarter, below guided range from the fourth quarter
    • Book value per diluted common share (ex. AOCI) of $15.15, up 3.5% in the quarter. Balance sheet remains strong with Q1’25 BSCR estimate at 227%
    • During the quarter, AM Best and Fitch affirmed our ratings and revised our outlook to Positive from Stable

    Scott Egan, Chief Executive Officer, said: “2025 has got off to a strong start. Our aim to deliver stable and consistent earnings can be seen with our first quarter return on equity of 12.9%, well within our 12-15% target range as our diverse portfolio performed well against the backdrop of elevated natural catastrophe losses.

    Our growth momentum continues, with Core gross premiums written growing by 12% in the quarter, while net premiums written increased at a faster pace of 20%, as we seek to retain a greater proportion of our increasingly profitable book. The Core underwriting result saw improvements across multiple fronts, with the attritional loss ratio, acquisition cost ratio, and underwriting expense ratios all decreasing and contributing to a 3.0 point reduction in total across these areas.

    Our earnings per share of $0.49 was flat to prior year despite lower net income, demonstrating the significant accretion benefits now being derived from the previously announced share repurchases. Our strong earnings resulted in an increase to book value of 5% in the quarter.

    Our focus will be to maintain this momentum and continue to deliver and improve throughout 2025. We are pleased to see our outlook move to Positive from Stable this year for both AM Best and Fitch. These are important proof points of our progress.”

    First Quarter 2025 Highlights

    • Net income attributable to SiriusPoint common shareholders of $57.6 million, or $0.49 per diluted common share
    • Core income of $47.4 million, including underwriting income of $28.5 million, Core combined ratio of 95.4%
    • Core net services fee income of $19.0 million, with service margin of 30.6%
    • Net investment income of $71.2 million and total investment result of $70.9 million
    • Book value per diluted common share increased $0.77 per share, or 5.3%, from December 31, 2024 to $15.37
    • Annualized return on average common equity of 12.9%

    Key Financial Metrics

    The following table shows certain key financial metrics for the three months ended March 31, 2025 and 2024:

        2025       2024  
      ($ in millions, except for per share data and ratios)
    Combined ratio   91.4 %     84.9 %
    Core underwriting income (1) $ 28.5     $ 44.3  
    Core net services income (1) $ 18.9     $ 18.1  
    Core income (1) $ 47.4     $ 62.4  
    Core combined ratio (1)   95.4 %     91.4 %
    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders   12.9 %     15.4 %
    Book value per common share (2) $ 15.73     $ 14.92  
    Book value per diluted common share (2) $ 15.37     $ 14.60  
    Book value per diluted common share ex. AOCI (1) (2) $ 15.15     $ 14.64  
    Tangible book value per diluted common share (1) (2) $ 14.21     $ 13.42  
    (1) Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Reporting.” Book value per diluted common share ex. AOCI and tangible book value per diluted common share are non-GAAP financial measures. See definition and reconciliation in “Non-GAAP Financial Measures.”
    (2) Prior year comparatives represent amounts as of December 31, 2024.


    First
    Quarter 2025 Summary

    Consolidated underwriting income for the three months ended March 31, 2025 was $54.1 million compared to $89.6 million for the three months ended March 31, 2024. The decrease was primarily driven by increased catastrophe losses from the California wildfires, partially offset by increased favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, and in A&H, due to lower than expected reported attritional losses.

    Reportable Segments

    The determination of our reportable segments is based on the manner in which management monitors the performance of our operations, which consist of two reportable segments – Reinsurance and Insurance & Services.

    Collectively, the sum of our two segments, Reinsurance and Insurance & Services, constitute our “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in “Segment Reporting”. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

    Core Premium Volume

    Gross premiums written increased by $109.2 million, or 12.4%, to $989.9 million for the three months ended March 31, 2025 compared to $880.7 million for the three months ended March 31, 2024. Net premiums earned increased by $108.0 million, or 20.9%, to $625.8 million for the three months ended March 31, 2025 compared to $517.8 million for the three months ended March 31, 2024. The increases in premium volume were primarily driven by our Insurance & Services segment, including growth across A&H, expansion of Surety within our Other Specialties business line and continued strategic organic and new program growth in our international business.

    Core Results

    Core results for the three months ended March 31, 2025 included income of $47.4 million compared to $62.4 million for the three months ended March 31, 2024. Income for the three months ended March 31, 2025 consists of underwriting income of $28.5 million (95.4% combined ratio) and net services income of $18.9 million, compared to underwriting income of $44.3 million (91.4% combined ratio) and net services income of $18.1 million for the three months ended March 31, 2024. The decrease in net underwriting results was primarily driven by increased catastrophe losses, partially offset by increased favorable development and lower attritional losses.

    Catastrophe losses for the three months ended March 31, 2025 were $67.9 million, or 10.9 percentage points on the combined ratio, primarily from the California wildfires, compared to minimal losses for the three months ended March 31, 2024. Losses incurred included $34.3 million of favorable prior year loss reserve development for the three months ended March 31, 2025 primarily driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, as well as favorable development in A&H, due to lower than expected reported attritional losses, compared to $8.0 million for the three months ended March 31, 2024 driven by decreased ultimate losses in the Credit reinsurance portfolio.

    Net services income remained stable for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Service margin, which is calculated as Net service fee income as a percentage of services revenues, increased to 30.6% for the three months ended March 31, 2025 from 30.1% for the three months ended March 31, 2024.

    Reinsurance Segment

    Reinsurance gross premiums written were $354.8 million for the three months ended March 31, 2025, an decrease of $1.6 million, or 0.4%, compared to the three months ended March 31, 2024, primarily driven by reduced premiums written in Casualty reflecting underwriting actions to improve profitability, partially offset by increased reinstatement premiums of $8.9 million related to our Property Catastrophe business.

    Reinsurance generated underwriting income of $8.4 million (97.1% combined ratio) for the three months ended March 31, 2025, compared to underwriting income of $39.9 million (84.2% combined ratio) for the three months ended March 31, 2024. The decrease in net underwriting results was primarily driven by increased catastrophe losses of $63.1 million, or 21.8 percentage points on the combined ratio, primarily from the California wildfires, compared to minimal losses for the three months ended March 31, 2024. This was partially offset by increased favorable prior year loss reserve development of $31.8 million for the three months ended March 31, 2025 primarily driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, compared to $10.3 million for the three months ended March 31, 2024 primarily driven by decreased ultimate losses in the Credit reinsurance portfolio.

    Insurance & Services Segment

    Insurance & Services gross premiums written were $635.1 million for the three months ended March 31, 2025, an increase of $110.8 million, or 21.1%, compared to the three months ended March 31, 2024, primarily driven by growth across A&H, expansion of Surety within our Other Specialties business line and continued strategic organic and new program growth in our international business.

    Insurance & Services generated segment income of $39.0 million for the three months ended March 31, 2025, compared to $22.5 million for the three months ended March 31, 2024. Segment income for the three months ended March 31, 2025 consists of underwriting income of $20.1 million (94.0% combined ratio) and net services income of $18.9 million, compared to underwriting income of $4.4 million (98.4% combined ratio) and net services income of $18.1 million for the three months ended March 31, 2024. The improvement in underwriting results was primarily driven by our decreased loss ratio mainly from lower attritional losses, as well as net favorable prior year loss reserve development of $2.5 million for the three months ended March 31, 2025, mainly in A&H, compared to net adverse prior year loss reserve development of $2.3 million for the three months ended March 31, 2024.

    Investments

    Net investment income and net realized and unrealized investment gains (losses) for the three months ended March 31, 2025 and 2024 were mainly driven by interest income of $63.4 million and $76.9 million, respectively, on our debt securities and short-term investments. The decrease is driven by a lower asset base as of March 31, 2025 after executing various share repurchase transactions in 2024 and 2025.

    Webcast Details

    The Company will hold a webcast to discuss its first quarter 2025 results at 8:30 a.m. Eastern Time on May 6, 2025. The webcast of the conference call will be available over the Internet from the Company’s website at www.siriuspt.com under the “Investor Relations” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will be available by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international). Participants should ask for the SiriusPoint Ltd. first quarter 2025 earnings call.

    The online replay will be available on the Company’s website immediately following the call at www.siriuspt.com under the “Investor Relations” section.

    Safe Harbor Statement Regarding Forward-Looking Statements
    This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,” “continues,” “guidance,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases. Specific forward-looking statements in this press release include, but are not limited to, statements regarding the trend of our performance as compared to the previous guidance, the current insurtech market trends, our ability to generate shareholder value, and whether we will continue to have momentum in our business in the future. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: our ability to execute on our strategic transformation, including re-underwriting to reduce volatility and improve underwriting performance, de-risking our investment portfolio, and transforming our business; the impact of unpredictable catastrophic events, including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility; inadequacy of loss and loss adjustment expense reserves, the lack of available capital, and periods characterized by excess underwriting capacity and unfavorable premium rates; the performance of financial markets, impact of inflation and interest rates, and foreign currency fluctuations; our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance industry; technology breaches or failures, including those resulting from a malicious cyber-attack on us, our business partners or service providers; the effects of global climate change, including wildfires, and increased severity and frequency of weather-related natural disasters and catastrophes and increased coastal flooding in many geographic areas; geopolitical uncertainty, including the ongoing conflicts in Europe and the Middle East and the new presidential administration in the U.S.; global economic uncertainty caused by the imposition and/or announcement of tariffs imposed on the import of certain goods into the U.S. from various countries which may have unpredictable consequences including, but not limited to, inflation or trade wars, potential impact on the Company’s credit and mortgage business and potential increase in credit spread which could impact the Company’s short-term capital and liquidity; our ability to retain key senior management and key employees; a downgrade or withdrawal of our financial ratings; fluctuations in our results of operations; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; the outcome of legal and regulatory proceedings and regulatory constraints on our business; reduced returns or losses in SiriusPoint’s investment portfolio; our exposure or potential exposure to corporate income tax in Bermuda and the E.U., U.S. federal income and withholding taxes and our significant deferred tax assets, which could become devalued if we do not generate future taxable income or applicable corporate tax rates are reduced; risks associated with delegating authority to third party managing general agents; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission.

    All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

    Non-GAAP Financial Measures and Other Financial Metrics

    In presenting SiriusPoint’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Core underwriting income, Core net services income, Core income, and Core combined ratio are non-GAAP financial measures. Management believes it is useful to review Core results as it better reflects how management views the business and reflects the Company’s decision to exit the runoff business. Book value per diluted common share excluding accumulated other comprehensive income (loss) (“AOCI”) and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Management believes the effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP figures are included in the attached financial information in accordance with Regulation G and Item 10(e) of Regulation S-K, as applicable.

    About the Company

    SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators. With approximately $2.7 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s. For more information, please visit www.siriuspt.com.

    Contacts

    Investor Relations
    Liam Blackledge – Investor Relations and Strategy Manager
    Liam.Blackledge@siriuspt.com
    + 44 203 772 3082

    Media
    Natalie King – Global Head of Marketing and External Communications
    Natalie.King@siriuspt.com
    + 44 770 728 8817

     
    SIRIUSPOINT LTD.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    As of March 31, 2025 and December 31, 2024
    (expressed in millions of U.S. dollars, except per share and share amounts)
     
      March 31,
    2025
      December 31,
    2024
    Assets      
    Debt securities, available for sale, at fair value, net of allowance for credit losses of $0.0 (2024 – $1.1) (cost – $4,617.0; 2024 – $5,143.8) $ 4,635.2   $ 5,131.0  
    Debt securities, trading, at fair value (cost – $140.9; 2024 – $187.3)   117.6     162.2  
    Short-term investments, at fair value (cost – $48.2; 2024 – $95.3)   48.2     95.8  
    Other long-term investments, at fair value (cost – $437.9; 2024 – $438.2) (includes related party investments at fair value of $220.1 (2024 – $217.2))   317.7     316.5  
    Total investments   5,118.7     5,705.5  
    Cash and cash equivalents   740.3     682.0  
    Restricted cash and cash equivalents   184.9     212.6  
    Due from brokers   18.8     11.2  
    Interest and dividends receivable   42.1     44.0  
    Insurance and reinsurance balances receivable, net   2,240.8     2,054.4  
    Deferred acquisition costs, net   369.3     327.5  
    Unearned premiums ceded   514.3     463.9  
    Loss and loss adjustment expenses recoverable, net   2,335.7     2,315.3  
    Deferred tax asset   293.3     297.0  
    Intangible assets   137.9     140.8  
    Other assets   284.4     270.7  
    Total assets $ 12,280.5   $ 12,524.9  
    Liabilities      
    Loss and loss adjustment expense reserves $ 5,762.6   $ 5,653.9  
    Unearned premium reserves   1,816.8     1,639.2  
    Reinsurance balances payable   1,707.5     1,781.6  
    Deposit liabilities   15.6     17.4  
    Deferred gain on retroactive reinsurance   6.6     8.5  
    Debt   663.5     639.1  
    Due to brokers   6.6     18.0  
    Deferred tax liability   94.2     76.2  
    Share repurchase liability       483.0  
    Other liabilities   180.4     269.2  
    Total liabilities   10,253.8     10,586.1  
    Commitments and contingent liabilities      
    Shareholders’ equity      
    Series B preference shares (par value $0.10; authorized and issued: 8,000,000)   200.0     200.0  
    Common shares (issued and outstanding: 116,020,526; 2023 – 116,429,057)   11.6     11.6  
    Additional paid-in capital   944.7     945.0  
    Retained earnings   842.5     784.9  
    Accumulated other comprehensive income (loss), net of tax   26.4     (4.1 )
    Shareholders’ equity attributable to SiriusPoint shareholders   2,025.2     1,937.4  
    Noncontrolling interests   1.5     1.4  
    Total shareholders’ equity   2,026.7     1,938.8  
    Total liabilities, noncontrolling interests and shareholders’ equity $ 12,280.5   $ 12,524.9  
     
    SIRIUSPOINT LTD.
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    For the three months ended March 31, 2025 and 2024
    (expressed in millions of U.S. dollars, except per share and share amounts)
     
        2025       2024  
    Revenues      
    Net premiums earned $ 626.7     $ 593.8  
    Net investment income   71.2       78.8  
    Net realized and unrealized investment gains (losses)   (0.3 )     1.0  
    Net investment income and net realized and unrealized investment gains (losses)   70.9       79.8  
    Other revenues   29.7       27.8  
    Loss on settlement and change in fair value of liability-classified capital instruments         (15.9 )
    Total revenues   727.3       685.5  
    Expenses      
    Loss and loss adjustment expenses incurred, net   401.8       317.5  
    Acquisition costs, net   129.7       144.9  
    Other underwriting expenses   41.1       41.8  
    Net corporate and other expenses   60.6       56.0  
    Intangible asset amortization   2.9       2.9  
    Interest expense   18.1       20.5  
    Foreign exchange gains   (2.2 )     (3.7 )
    Total expenses   652.0       579.9  
    Income before income tax expense   75.3       105.6  
    Income tax expense   (13.3 )     (9.7 )
    Net income   62.0       95.9  
    Net income attributable to noncontrolling interests   (0.4 )     (1.1 )
    Net income available to SiriusPoint   61.6       94.8  
    Dividends on Series B preference shares   (4.0 )     (4.0 )
    Net income available to SiriusPoint common shareholders $ 57.6     $ 90.8  
    Earnings per share available to SiriusPoint common shareholders      
    Basic earnings per share available to SiriusPoint common shareholders $ 0.50     $ 0.50  
    Diluted earnings per share available to SiriusPoint common shareholders $ 0.49     $ 0.49  
    Weighted average number of common shares used in the determination of earnings per share      
    Basic   115,975,961       168,934,114  
    Diluted   118,555,166       174,380,963  
     
    SIRIUSPOINT LTD.
    SEGMENT REPORTING
     
      Three months ended March 31, 2025
      Reinsurance   Insurance & Services   Core   Eliminations (2)   Corporate   Segment Measure Reclass   Total
    Gross premiums written $ 354.8     $ 635.1     $ 989.9     $     $ (5.2 )   $     $ 984.7  
    Net premiums written   268.5       483.5       752.0             (9.0 )           743.0  
    Net premiums earned   289.6       336.2       625.8             0.9             626.7  
    Loss and loss adjustment expenses incurred, net   195.3       209.9       405.2       (2.0 )     (1.4 )           401.8  
    Acquisition costs, net   67.1       87.3       154.4       (28.0 )     3.3             129.7  
    Other underwriting expenses   18.8       18.9       37.7             3.4             41.1  
    Underwriting income (loss)   8.4       20.1       28.5       30.0       (4.4 )           54.1  
    Services revenues         62.1       62.1       (30.2 )           (31.9 )      
    Services expenses         43.1       43.1                   (43.1 )      
    Net services fee income         19.0       19.0       (30.2 )           11.2        
    Services noncontrolling income         (0.1 )     (0.1 )                 0.1        
    Net services income         18.9       18.9       (30.2 )           11.3        
    Segment income (loss)   8.4       39.0       47.4       (0.2 )     (4.4 )     11.3       54.1  
    Net investment income                   71.2             71.2  
    Net realized and unrealized investment losses     (0.3 )           (0.3 )
    Other revenues                   (2.2 )     31.9       29.7  
    Net corporate and other expenses                   (17.5 )     (43.1 )     (60.6 )
    Intangible asset amortization                   (2.9 )           (2.9 )
    Interest expense                   (18.1 )           (18.1 )
    Foreign exchange gains                   2.2             2.2  
    Income before income tax expense $ 8.4     $ 39.0       47.4       (0.2 )     28.0       0.1       75.3  
    Income tax expense                       (13.3 )           (13.3 )
    Net income           47.4       (0.2 )     14.7       0.1       62.0  
    Net income attributable to noncontrolling interest                 (0.3 )     (0.1 )     (0.4 )
    Net income available to SiriusPoint   $ 47.4     $ (0.2 )   $ 14.4     $     $ 61.6  
                               
    Attritional losses $ 164.0     $ 207.6     $ 371.6     $ (2.0 )   $ (1.5 )   $     $ 368.1  
    Catastrophe losses   63.1       4.8       67.9                         67.9  
    Prior year loss reserve development   (31.8 )     (2.5 )     (34.3 )           0.1             (34.2 )
    Loss and loss adjustment expenses incurred, net $ 195.3     $ 209.9     $ 405.2     $ (2.0 )   $ (1.4 )   $     $ 401.8  
                               
    Underwriting Ratios: (1)                          
    Attritional loss ratio   56.6 %     61.7 %     59.3 %                 58.8 %
    Catastrophe loss ratio   21.8 %     1.4 %     10.9 %                 10.8 %
    Prior year loss development ratio (11.0)%   (0.7)%   (5.5)%               (5.5)%
    Loss ratio   67.4 %     62.4 %     64.7 %                 64.1 %
    Acquisition cost ratio   23.2 %     26.0 %     24.7 %                 20.7 %
    Other underwriting expenses ratio   6.5 %     5.6 %     6.0 %                 6.6 %
    Combined ratio   97.1 %     94.0 %     95.4 %                 91.4 %
    (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
    (2) Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
      Three months ended March 31, 2024
      Reinsurance   Insurance & Services   Core   Eliminations (2)   Corporate   Segment Measure Reclass   Total
    Gross premiums written $ 356.4     $ 524.3     $ 880.7     $     $ 25.9     $     $ 906.6  
    Net premiums written   290.1       337.1       627.2             12.1             639.3  
    Net premiums earned   253.6       264.2       517.8             76.0             593.8  
    Loss and loss adjustment expenses incurred, net   124.6       176.5       301.1       (1.4 )     17.8             317.5  
    Acquisition costs, net   69.8       65.2       135.0       (33.2 )     43.1             144.9  
    Other underwriting expenses   19.3       18.1       37.4             4.4             41.8  
    Underwriting income   39.9       4.4       44.3       34.6       10.7             89.6  
    Services revenues         65.8       65.8       (37.1 )           (28.7 )      
    Services expenses         46.0       46.0                   (46.0 )      
    Net services fee income         19.8       19.8       (37.1 )           17.3        
    Services noncontrolling income         (1.7 )     (1.7 )                 1.7        
    Net services income         18.1       18.1       (37.1 )           19.0        
    Segment income   39.9       22.5       62.4       (2.5 )     10.7       19.0       89.6  
    Net investment income                   78.8             78.8  
    Net realized and unrealized investment gains     1.0             1.0  
    Other revenues                   (0.9 )     28.7       27.8  
    Loss on settlement and change in fair value of liability-classified capital instruments     (15.9 )           (15.9 )
    Net corporate and other expenses                   (10.0 )     (46.0 )     (56.0 )
    Intangible asset amortization                   (2.9 )           (2.9 )
    Interest expense                   (20.5 )           (20.5 )
    Foreign exchange gains                   3.7             3.7  
    Income before income tax expense $ 39.9     $ 22.5       62.4       (2.5 )     44.0       1.7       105.6  
    Income tax expense                       (9.7 )           (9.7 )
    Net income           62.4       (2.5 )     34.3       1.7       95.9  
    Net (income) loss attributable to noncontrolling interest                 0.6       (1.7 )     (1.1 )
    Net income available to SiriusPoint   $ 62.4     $ (2.5 )   $ 34.9     $     $ 94.8  
                               
    Attritional losses $ 134.9     $ 174.2     $ 309.1     $ (1.4 )   $ 48.7     $     $ 356.4  
    Prior year loss reserve development   (10.3 )     2.3       (8.0 )           (30.9 )           (38.9 )
    Loss and loss adjustment expenses incurred, net $ 124.6     $ 176.5     $ 301.1     $ (1.4 )   $ 17.8     $     $ 317.5  
                               
    Underwriting Ratios: (1)                          
    Attritional loss ratio   53.2 %     65.9 %     59.7 %                 60.0 %
    Prior year loss development ratio (4.1)%     0.9 %   (1.6)%               (6.5)%
    Loss ratio   49.1 %     66.8 %     58.1 %                 53.5 %
    Acquisition cost ratio   27.5 %     24.7 %     26.1 %                 24.4 %
    Other underwriting expenses ratio   7.6 %     6.9 %     7.2 %                 7.0 %
    Combined ratio   84.2 %     98.4 %     91.4 %                 84.9 %
    (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
    (2) Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

    SIRIUSPOINT LTD.
    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS & OTHER FINANCIAL MEASURES

    Non-GAAP Financial Measures

    Core Results

    Collectively, the sum of the Company’s two segments, Reinsurance and Insurance & Services, constitute “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

    Core underwriting income – calculated by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned.

    Core net services income – consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, as well as services expenses which include direct expenses related to consolidated MGAs and services noncontrolling income which represent minority ownership interests in consolidated MGAs. Net services income is a key indicator of the profitability of the Company’s services provided.

    Core income – consists of two components, core underwriting income and core net services income. Core income is a key measure of our segment performance.

    Core combined ratio – calculated by dividing the sum of Core loss and loss adjustment expenses incurred, net, acquisition costs, net and other underwriting expenses by Core net premiums earned. Accident year loss ratio and accident year combined ratio are calculated by excluding prior year loss reserve development to present the impact of current accident year net loss and loss adjustment expenses on the Core loss ratio and Core combined ratio, respectively. Attritional loss ratio excludes catastrophe losses from the accident year loss ratio as they are not predictable as to timing and amount. These ratios are useful indicators of our underwriting profitability.

    Book Value Per Diluted Common Share Metrics

    Book value per diluted common share excluding AOCI and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Tangible book value per diluted common share excludes intangible assets. Management believes that effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Tangible book value per diluted common share is useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.

    The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of March 31, 2025 and December 31, 2024:

      March 31,
    2025
      December 31,
    2024
      ($ in millions, except share and per share amounts)
    Common shareholders’ equity attributable to SiriusPoint common shareholders $ 1,825.2     $ 1,737.4  
           
    Accumulated other comprehensive income (loss), net of tax   26.4       (4.1 )
    Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI   1,798.8       1,741.5  
           
    Intangible assets   137.9       140.8  
    Tangible common shareholders’ equity attributable to SiriusPoint common shareholders $ 1,687.3     $ 1,596.6  
           
    Common shares outstanding   116,020,526       116,429,057  
    Effect of dilutive stock options, restricted share units and warrants   2,708,756       2,559,359  
    Book value per diluted common share denominator   118,729,282       118,988,416  
           
    Book value per common share $ 15.73     $ 14.92  
    Book value per diluted common share $ 15.37     $ 14.60  
    Book value per diluted common share ex. AOCI $ 15.15     $ 14.64  
    Tangible book value per diluted common share $ 14.21     $ 13.42  


    Other Financial Measures

    Annualized Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders

    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.

    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three months ended March 31, 2025 and 2024 was calculated as follows:

        2025       2024  
      ($ in millions)
    Net income available to SiriusPoint common shareholders $ 57.6     $ 90.8  
    Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period   1,737.4       2,313.9  
    Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period   1,825.2       2,402.6  
    Average common shareholders’ equity attributable to SiriusPoint common shareholders $ 1,781.3     $ 2,358.3  
    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders   12.9 %     15.4 %

    The MIL Network

  • MIL-OSI: Great Elm Capital Corp. Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH GARDENS, Fla., May 05, 2025 (GLOBE NEWSWIRE) — Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the first quarter ended March 31, 2025.      

    First Quarter and Other Recent Highlights

    • GECC increased its quarterly distribution by 5.7% for the first quarter of 2025 to $0.37 per share, from $0.35 per share, which was paid on March 31, 2025.
      • The Board of Directors approved a quarterly dividend of $0.37 per share for the second quarter of 2025, equating to a 14.7% annualized yield on GECC’s May 2, 2025 closing price of $10.09.
    • Total investment income (“TII”) for the quarter ended March 31, 2025 was a record $12.5 million.
      • Highest cash income quarter in the Company’s history, with only 12% of GECC’s TII attributable to PIK and accretion income.
    • Net investment income (“NII”) for the quarter ended March 31, 2025 was $4.6 million, or $0.40 per share, as compared to $2.1 million, or $0.20 per share, for the quarter ended December 31, 2024.
      • Increase in NII primarily driven by the receipt of distributions from the CLO Formation JV, LLC (“CLO JV”), as well as income from other new investments.
      • GECC received $3.8 million of cash distributions from the CLO JV in the quarter ended March 31, 2025, as compared to $0.5 million in the quarter ended December 31, 2024. Additionally, in April, GECC received $4.3 million of cash distributions from the CLO JV.
    • Net assets were $132.3 million, or $11.46 per share, on March 31, 2025, as compared to $136.1 million, or $11.79 per share, on December 31, 2024.
      • Decrease in NAV primarily driven by unrealized losses in certain investment positions marked down amid broader market volatility, which we expect would reverse over time assuming market conditions stabilize.
    • GECC’s asset coverage ratio was 163.8% as of March 31, 2025, as compared to 169.7% as of December 31, 2024.

    Management Commentary  

    “We are pleased to report strong first quarter results, generating record total investment income of $12.5 million, driven by cash flows from our CLO JV and income from new investments, with NII that exceeded our increased quarterly distribution,” said Matt Kaplan, GECC’s Chief Executive Officer. “Looking ahead, we expect NII to increase in the second quarter, and we remain well positioned to cover our distributions over the course of 2025. We continue to closely monitor the uncertain macro environment and will look to thoughtfully deploy capital into opportunities with compelling risk-adjusted returns, with a focus on creating meaningful value for our shareholders.”

    Financial Highlights – Per Share Data

      Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q1/2025
    Earnings Per Share (“EPS”) ($0.05) ($0.14) $0.33 $0.17 $0.04
    Net Investment Income (“NII”) Per Share $0.37 $0.32 $0.39 $0.20 $0.40
    Pre-Incentive Net Investment Income Per Share $0.46 $0.40 $0.49 $0.20 $0.50
    Net Realized and Unrealized Gains / (Losses) Per Share ($0.42) ($0.46) ($0.06) ($0.03) ($0.36)
    Net Asset Value Per Share at Period End $12.57 $12.06 $12.04 $11.79 $11.46
    Distributions Paid / Declared Per Share $0.35 $0.35 $0.35 $0.40 $0.37
               

    Portfolio and Investment Activity

    As of March 31, 2025, GECC held total investments of $341.9 million at fair value, as follows:

    • 57 debt investments in corporate credit, totaling approximately $213.2 million, representing 62.4% of the fair market value of the Company’s total investments. Secured debt investments comprised a substantial majority of the fair market value of the Company’s debt investments.
    • An investment in Great Elm Specialty Finance, totaling approximately $42.8 million, comprised of one debt investment of $29.7 million and one equity investment of $13.0 million, representing 8.7% and 3.8%, respectively, of the fair market value of the Company’s total investments.
    • CLO investments, totaling approximately $52.2 million, representing 15.3% of the fair market value of the Company’s total investments.
    • Three dividend paying equity investments, totaling approximately $9.3 million, representing 2.7% of the fair market value of the Company’s total investments.
    • Other equity investments, totaling approximately $24.4 million, representing 7.1% of the fair market value of the Company’s total investments.  

    As of March 31, 2025, the weighted average current yield on the Company’s debt portfolio was 12.3%. Floating rate instruments comprised approximately 73% of the fair market value of debt investments (comparable to last quarter) and the Company’s fixed rate debt investments had a weighted average maturity of 3.0 years.

    During the quarter ended March 31, 2025, we deployed approximately $37.4 million into 16 investments(1) at a weighted average current yield of 15.1%.

    During the quarter ended March 31, 2025, we monetized, in part or in full, 36 investments for approximately $13.8 million(2), at a weighted average current yield of 12.3%. Monetizations include $7.4 million of mandatory debt paydowns and redemptions at a weighted average current yield of 11.3%. 

    Financial Review

    Total investment income for the quarter ended March 31, 2025 was $12.5 million, or $1.08 per share. Total expenses for the quarter ended March 31, 2025 were approximately $7.9 million, or $0.69 per share, inclusive of excise tax expense.

    Net realized and unrealized losses for the quarter ended March 31, 2025 were approximately $4.1 million, or $0.36 per share.

    Liquidity and Capital Resources

    As of March 31, 2025, cash totaled approximately $1.3 million.

    As of March 31, 2025, total debt outstanding (par value) was $207.4 million, comprised of 5.875% senior notes due June 2026 (NASDAQ: GECCO), 8.75% senior notes due September 2028 (NASDAQ: GECCZ), 8.50% senior notes due April 2029 (NASDAQ: GECCI) and 8.125% senior notes due December 2029 (NASDAQ: GECCH), and $12.0 million outstanding on the $25.0 million revolving line of credit.

    Distributions

    The Company’s Board of Directors has approved a quarterly cash distribution of $0.37 per share for the quarter ending June 30, 2025. The second quarter distribution will be payable on June 30, 2025 to stockholders of record as of June 16, 2025.

    The distribution equates to a 14.7% annualized dividend yield on the Company’s closing market price on May 2, 2025 of $10.09 and a 12.9% annualized dividend yield on the Company’s March 31, 2025 NAV of $11.46 per share.

    Conference Call and Webcast

    GECC will discuss these results in a conference at 8:30 a.m. ET on May 6, 2025.

    Conference Call Details

    Date/Time:   Tuesday, May 6, 2025 – 8:30 a.m. ET
         
    Participant Dial-In Numbers:    
    (United States):   877-407-0789
    (International):   201-689-8562
         

    To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode “GECC”. An accompanying slide presentation will be available in pdf format via the “Events and Presentations” section of Great Elm Capital Corp.’s website here after the issuance of the earnings release.

    Webcast

    The call and presentation will also be simultaneously webcast over the internet via the “Events and Presentations” section of GECC’s website or by clicking on the webcast link here.

    About Great Elm Capital Corp.

    GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs. For additional information, please visit http://www.greatelmcc.com.

    Cautionary Statement Regarding Forward-Looking Statements

    Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. The key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, without limitation: conditions in the credit markets, our expected financings and investments, including interest rate volatility, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

    This press release does not constitute an offer of any securities for sale.

    Endnotes:

    (1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and capitalized PIK income. Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.
    (2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.

    Media & Investor Contact:

    Investor Relations        
    investorrelations@greatelmcap.com

    GREAT ELM CAPITAL CORP.
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
    Dollar amounts in thousands (except per share amounts)

        March 31, 2025     December 31, 2024  
    Assets            
    Investments            
    Non-affiliated, non-controlled investments, at fair value (amortized cost of $258,148 and $244,378, respectively)   $ 253,112     $ 240,958  
    Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of $0 and $8,448, respectively)           8,448  
    Affiliated investments, at fair value (amortized cost of $12,378 and $12,378, respectively)            
    Controlled investments, at fair value (amortized cost of $94,829 and $87,014, respectively)     88,798       83,304  
    Total investments     341,910       332,710  
                 
    Cash and cash equivalents     1,273        
    Receivable for investments sold     2,513       5,065  
    Interest receivable     4,090       3,306  
    Dividends receivable     360       364  
    Due from portfolio company     32       32  
    Due from affiliates     157       160  
    Deferred financing costs     213       237  
    Prepaid expenses and other assets     282       154  
    Total assets   $ 350,830     $ 342,028  
                 
    Liabilities            
    Notes payable (including unamortized discount of $5,321 and $5,705, respectively)   $ 190,079     $ 189,695  
    Revolving credit facility     12,000        
    Payable for investments purchased     10,558       11,194  
    Interest payable     61       32  
    Accrued incentive fees payable     2,862       1,712  
    Distributions payable           577  
    Due to affiliates     1,562       1,385  
    Accrued expenses and other liabilities     1,413       1,320  
    Total liabilities   $ 218,535     $ 205,915  
                 
    Commitments and contingencies   $     $  
                 
    Net Assets            
    Common stock, par value $0.01 per share (100,000,000 shares authorized, 11,544,415 shares issued and outstanding and 11,544,415 shares issued and outstanding, respectively)   $ 115     $ 115  
    Additional paid-in capital     332,111       332,111  
    Accumulated losses     (199,931 )     (196,113 )
    Total net assets   $ 132,295     $ 136,113  
    Total liabilities and net assets   $ 350,830     $ 342,028  
    Net asset value per share   $ 11.46     $ 11.79  
                     

    GREAT ELM CAPITAL CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

    Dollar amounts in thousands (except per share amounts)

        For the Three Months Ended March 31,  
        2025     2024  
    Investment Income:            
    Interest income from:            
    Non-affiliated, non-controlled investments   $ 6,402     $ 5,987  
    Non-affiliated, non-controlled investments (PIK)     611       630  
    Affiliated investments           33  
    Controlled investments     953       931  
    Total interest income     7,966       7,581  
    Dividend income from:            
    Non-affiliated, non-controlled investments     236       386  
    Controlled investments     3,376       385  
    Total dividend income     3,612       771  
    Other commitment fees from non-affiliated, non-controlled investments           525  
    Other income from:            
    Non-affiliated, non-controlled investments     743       32  
    Non-affiliated, non-controlled investments (PIK)     174        
    Total other income     917       32  
    Total investment income   $ 12,495     $ 8,909  
                 
    Expenses:            
    Management fees   $ 1,272     $ 940  
    Incentive fees     1,150       798  
    Administration fees     355       385  
    Custody fees     38       36  
    Directors’ fees     53       54  
    Professional services     424       388  
    Interest expense     4,251       2,807  
    Other expenses     308       303  
    Total expenses   $ 7,851     $ 5,711  
    Net investment income before taxes   $ 4,644     $ 3,198  
    Excise tax   $ 68     $ 5  
    Net investment income   $ 4,576     $ 3,193  
                 
    Net realized and unrealized gains (losses):            
    Net realized gain (loss) on investment transactions from:            
    Non-affiliated, non-controlled investments   $ 264     $ 2,356  
    Total net realized gain (loss)     264       2,356  
    Net change in unrealized appreciation (depreciation) on investment transactions from:        
    Non-affiliated, non-controlled investments     (2,066 )     (3,533 )
    Affiliated investments           (850 )
    Controlled investments     (2,321 )     (1,624 )
    Total net change in unrealized appreciation (depreciation)     (4,387 )     (6,007 )
    Net realized and unrealized gains (losses)   $ (4,123 )   $ (3,651 )
    Net increase (decrease) in net assets resulting from operations   $ 453     $ (458 )
                 
    Net investment income per share (basic and diluted):   $ 0.40     $ 0.37  
    Earnings per share (basic and diluted):   $ 0.04     $ (0.05 )
    Weighted average shares outstanding (basic and diluted):     11,544,415       8,659,344  

    The MIL Network

  • MIL-OSI: James River Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    PEMBROKE, Bermuda, May 05, 2025 (GLOBE NEWSWIRE) — James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR) reported net income from continuing operations available to common shareholders of $9.0 million ($0.18 per diluted share) and adjusted net operating income1 of $9.1 million ($0.19 per diluted share) for the first quarter of 2025.

      Three Months Ended
    March 31,
      Three Months Ended
    March 31,
    ($ in thousands, except for share data)   2025     per diluted
    share
        2024     per diluted
    share
    Net income from continuing operations available to common shareholders $ 9,019     $ 0.18     $ 20,883     $ 0.53  
    Net loss from discontinued operations2   (1,414 )   $ (0.02 )     (8,105 )   $ (0.18 )
    Net income available to common shareholders   7,605     $ 0.16       12,778     $ 0.35  
    Adjusted net operating income1   9,102     $ 0.19       14,832     $ 0.39  
                                   

    Unless specified otherwise, all underwriting performance ratios presented herein are for our continuing operations and business not subject to retroactive reinsurance accounting.

    First Quarter 2025 Highlights:

    • Annualized adjusted net operating return on tangible common equity1 of 11.5% and year to date growth in tangible common equity1 of 7.1%.
    • E&S segment combined ratio of 91.5% and renewal rate change of 7.8%, with the majority of underwriting divisions reporting pricing increases.
    • Specialty Admitted Insurance segment combined ratio of 102.1%, with fronting and program gross written premium declining 21.3%.
    • De minimis overall prior year reserve activity. Group combined ratio of 99.5%.
    • Final independent accounting firm determination in the purchase price adjustment dispute related to the sale of JRG Reinsurance Company Ltd. (“JRG Re”), finding in favor of the Company on $53.6 million of the aggregate $54.1 million of items in dispute, resulting in a small downward adjustment to the purchase price of ($0.5) million. This is reflected in the first quarter results.

    Frank D’Orazio, the Company’s Chief Executive Officer, commented on the first quarter, “Coming out of 2024, our first quarter results show progress in strengthening our underwriting performance and positioning the franchise for long-term, sustainable profitability. Our disciplined approach to risk selection, combined with the actions taken over the past year to strengthen our reserve position, are showing tangible results. As we move forward, we remain focused on delivering value to shareholders as we take advantage of the attractive E&S underwriting environment while closely managing our expenses.”

    • E&S Segment Highlights:
      • For the first quarter of 2025, the segment’s gross written premium was largely flat to the comparable quarter last year.
      • Renewal rate increases across the segment were 7.8% during the quarter.
      • The segment continued to experience strong submission growth, with the 6% growth in renewal submissions exceeding 2024 levels.
      • There was de minimis favorable reserve development during the quarter.
    • Specialty Admitted Insurance Segment Highlights:
      • Gross written premium for the fronting and program business declined 21.3% compared to the prior year quarter, as the Company manages this segment to retain minimal risk. This excludes the impact of our large workers’ compensation program and Individual Risk Workers’ Compensation book, which were non-renewed in the second quarter of 2023 and sold via a renewal rights transaction in the third quarter of 2023, respectively. Overall, premium declined 30.7%
      • While the fronting business of the segment is transactional in nature, the Company remains focused on managing its expenses in this segment over the course of the calendar year.
      • There was de minimis prior year reserve movement during the quarter.

    First Quarter 2025 Operating Results

    • Gross written premium of $294.4 million, consisting of the following:
      Three Months Ended
    March 31,
     
    ($ in thousands) 2025   2024   % Change
    Excess and Surplus Lines $ 213,243   $ 213,691   0 %
    Specialty Admitted Insurance   81,118     117,119   (31 )%
      $ 294,361   $ 330,810   (11 )%
                   
    • Net written premium of $128.0 million, consisting of the following:
      Three Months Ended
    March 31,
       
    ($ in thousands) 2025   2024   % Change  
    Excess and Surplus Lines $ 115,079   $ 117,425   (2 )%
    Specialty Admitted Insurance   12,877     20,747   (38 )%
      $ 127,956   $ 138,172   (7 )%
                     
    • Net earned premium of $151.9 million, consisting of the following:
      Three Months Ended
    March 31,
       
    ($ in thousands) 2025   2024   % Change  
    Excess and Surplus Lines $ 137,028   $ 145,623   (6 )%
    Specialty Admitted Insurance   14,874     26,068   (43 )%
      $ 151,902   $ 171,691   (12 )%
                     
    • As cited above, the first quarter of 2025 included de minimis favorable reserve development in each of the two insurance segments. There remains $116.2 million of aggregate limit on the two E&S segment retroactive reinsurance structures which cover the majority of James River’s E&S segment net reserves for James River’s E&S segment for accident years 2010 -2023.
    • Pre-tax favorable (unfavorable) reserve development by segment on business not subject to retroactive reinsurance accounting for loss portfolio transfers was as follows:
      Three Months Ended
    March 31,
    ($ in thousands)  2025    2024 
    Excess and Surplus Lines $ 10   $ (40 )
    Specialty Admitted Insurance   121     438  
      $ 131   $ 398  
                 
    • Retroactive benefits of $1.9 million were recorded in loss and loss adjustment expenses during the first quarter and the total deferred retroactive reinsurance gain on the Balance Sheet is $56.0 million as of March 31, 2025.
    • The consolidated expense ratio was 32.7% for the first quarter of 2025, which was an increase from 28.9% in the prior year quarter. The expense ratio increase was primarily driven by higher compensation expenses on lower net earned premium.

    Investment Results
    Net investment income for the first quarter of 2025 was $20.0 million, a decline of 11.6% compared to $22.6 million in the prior year quarter. The comparable decline in income was primarily due to a smaller asset base following the funding of retroactive reinsurance structures for the E&S segment which were purchased in the second half of 2024.

    The Company’s net investment income consisted of the following:

      Three Months Ended
    March 31,
       
    ($ in thousands) 2025   2024   % Change
    Private Investments   200     (145 )   NM  
    All Other Investments   19,808     22,777     (13 )%
    Total Net Investment Income $ 20,008   $ 22,632     (12 )%
                       

    The Company’s annualized gross investment yield on average fixed maturity, bank loan and equity securities for the three months ended March 31, 2025 was 4.6% (versus 4.8% for the three months ended March 31, 2024).

    Net realized and unrealized losses on investments of ($1.4) million for the three months ended March 31, 2025 compared to net realized and unrealized gains on investments of $4.6 million in the prior year quarter. The majority of the realized and unrealized losses during the quarter were related to realized losses on sales in our bank loan portfolio, partially offset by increases in the fair value of our preferred stock portfolio.

    Discontinued Operations

    In connection with the process outlined in the Stock Purchase Agreement, and as previously disclosed, the buyer of JRG Re claimed a $54.1 million downward adjustment to the closing purchase price, which the Company disputed. As per the Stock Purchase Agreement, the disputed items (totaling $54.1 million) were submitted to an independent accounting firm for final resolution. On April 18, 2025, the independent accounting firm issued its final determination which resulted in a small downward adjustment to the closing purchase price of $0.5 million. The determination by the independent accounting firm is final and binding with regards to the purchase price.

    Capital Management

    The Company announced that its Board of Directors declared a cash dividend of $0.01 per common share. This dividend is payable on Monday, June 30, 2025 to all shareholders of record on Monday, June 9, 2025.

    Tangible Common Equity Per Share

    Shareholders’ equity of $484.5 million at March 31, 2025 increased 5.1% compared to shareholders’ equity of $460.9 million at December 31, 2024. Tangible common equity3 per share of $7.11 at March 31, 2025 increased 6.6% compared to tangible common equity per share of $6.67 at December 31, 2024, due to net income from continuing operations, partially offset by a small net loss from discontinued operations. Other comprehensive income benefited by $14.3 million during the first quarter of 2025, improving AOCI to ($55.7) million due to a decline in interest rates.

    Conference Call

    James River will hold a conference call to discuss its first quarter results tomorrow, May 6, 2025 at 8:00 a.m. Eastern Time. Investors may access the conference call by dialing (800) 715-9871, Conference ID 8501569, or via the internet by visiting www.jrvrgroup.com and clicking on the “Investor Relations” link. A webcast replay of the call will be available by visiting the company website.

    Forward-Looking Statements

    This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: the inherent uncertainty of estimating reserves and the possibility that incurred losses may be greater than our estimate used to compute loss and loss adjustment expense reserves; inaccurate estimates and judgments in our risk management may expose us to greater risks than intended; downgrades in the financial strength rating or outlook of our regulated insurance subsidiaries impacting our competitive position and ability to attract and retain insurance business that our subsidiaries write and ultimately our financial condition; the potential loss of key members of our management team or key employees, and our ability to attract and retain personnel; adverse economic and competitive factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both; the impact of a higher than expected inflationary environment on our reserves, loss adjustment expenses, the values of our investments and investment returns, and our compensation expenses; exposure to credit risk, interest rate risk and other market risk in our investment portfolio and our reinsurers; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain, or decision to terminate, such relationships; our ability to obtain insurance and reinsurance coverage at prices and on terms that allow us to transfer risk, adequately protect our Company against financial loss and that supports our growth plans; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, insurance companies with whom we have a fronting arrangement failing to pay us for claims, or a former customer with whom we have an indemnification arrangement failing to perform its reimbursement obligations, and our potential inability to demand or maintain adequate collateral to mitigate such risks; the inherent uncertainty of estimating reinsurance recoverable on unpaid losses and the possibility that reinsurance may be less than our estimate of reinsurance recoverable on unpaid losses; inadequacy of premiums we charge to compensate us for our losses incurred; changes in laws or government regulation, including tax or insurance laws and regulations; changes in U.S. tax laws (including associated regulations) and the interpretation of certain provisions applicable to insurance/reinsurance businesses with U.S. and non-U.S. operations, which may be retroactive and could have a significant effect on us including, among other things, by potentially increasing our tax rate, as well as on our shareholders; in the event we did not qualify for the insurance company exception to the passive foreign investment company (“PFIC”) rules and were therefore considered a PFIC, there could be material adverse tax consequences to an investor that is subject to U.S. federal income taxation; the Company or its foreign subsidiary becoming subject to U.S. federal income taxation; a failure of any of the loss limitations or exclusions we utilize to shield us from unanticipated financial losses or legal exposures, or other liabilities; losses from catastrophic events, such as natural disasters and terrorist acts, which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events; potential effects on our business of emerging claim and coverage issues; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents; our ability to manage our growth effectively; failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002, as amended; changes in our financial condition, regulations or other factors that may restrict our subsidiaries’ ability to pay us dividends; and an adverse result in any litigation or legal proceedings we are or may become subject to. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward-looking statements, is contained in our filings with the U.S. Securities and Exchange Commission (“SEC”), including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

    Non-GAAP Financial Measures

    In presenting James River Group Holdings, Ltd.’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). Such measures, including underwriting (loss) profit, adjusted net operating (loss) income, tangible equity, tangible common equity, and adjusted net operating return on tangible equity (which is calculated as annualized adjusted net operating income divided by the average quarterly tangible equity balances in the respective period), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.

    About James River Group Holdings, Ltd.

    James River Group Holdings, Ltd. is a Bermuda-based insurance holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) by A.M. Best Company.

    Visit James River Group Holdings, Ltd. on the web at www.jrvrgroup.com

    For more information contact:

    Zachary Shytle
    Senior Analyst, Investments and Investor Relations
    980-249-6848
    InvestorRelations@james-river-group.com

     
    James River Group Holdings, Ltd. and Subsidiaries
    Condensed Consolidated Balance Sheet Data (Unaudited)
     
    ($ in thousands, except for share data)  March 31,
    2025
      December 31,
    2024
    ASSETS      
    Invested assets:      
    Fixed maturity securities, available-for-sale, at fair value $ 1,259,627   $ 1,189,733
    Equity securities, at fair value   87,746     86,479
    Bank loan participations, at fair value   144,014     142,410
    Short-term investments   79,091     97,074
    Other invested assets   52,768     36,700
    Total invested assets   1,623,246     1,552,396
           
    Cash and cash equivalents   279,427     362,345
    Restricted cash equivalents (a)   29,012     28,705
    Accrued investment income   10,567     10,534
    Premiums receivable and agents’ balances, net   205,965     243,882
    Reinsurance recoverable on unpaid losses, net   1,984,292     1,996,913
    Reinsurance recoverable on paid losses   127,627     101,210
    Deferred policy acquisition costs   27,844     30,175
    Goodwill and intangible assets   214,190     214,281
    Other assets   446,845     466,635
    Total assets $ 4,949,015   $ 5,007,076
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY      
    Reserve for losses and loss adjustment expenses $ 3,081,540   $ 3,084,406
    Unearned premiums   526,506     572,034
    Funds held (a)   25,157     25,157
    Deferred reinsurance gain   56,042     57,970
    Senior debt   225,800     200,800
    Junior subordinated debt   104,055     104,055
    Accrued expenses   39,196     53,178
    Other liabilities   273,124     315,446
    Total liabilities   4,331,420     4,413,046
           
    Series A redeemable preferred shares   133,115     133,115
    Total shareholders’ equity   484,480     460,915
    Total liabilities, Series A redeemable preferred shares, and shareholders’ equity $ 4,949,015   $ 5,007,076
           
    Tangible equity (b) $ 459,447   $ 437,719
    Tangible equity per share (b) $ 7.73   $ 7.40
    Tangible common equity per share (b) $ 7.11   $ 6.67
    Shareholders’ equity per share $ 10.56   $ 10.10
    Common shares outstanding   45,892,706     45,644,318
           
    (a) Restricted cash equivalents and the funds held liability includes funds posted by the Company to a trust account for the benefit of a third party administrator handling the claims on the Rasier commercial auto policies in run-off. Such funds held in trust secure the Company’s obligations to reimburse the administrator for claims payments, and are primarily sourced from the collateral posted to the Company by Rasier and its affiliates to support their obligations under the indemnity agreements and the loss portfolio transfer reinsurance agreement with the Company.
    (b) See “Reconciliation of Non-GAAP Measures”      
     
    James River Group Holdings, Ltd. and Subsidiaries
    Condensed Consolidated Income Statement Data (Unaudited)
     
      Three Months Ended
    March 31,
    ($ in thousands, except for share data)   2025       2024  
    REVENUES      
    Gross written premiums $ 294,361     $ 330,810  
    Net written premiums   127,956       138,172  
           
    Net earned premiums   151,902       171,691  
    Net investment income   20,008       22,632  
    Net realized and unrealized (losses) gains on investments   (1,371 )     4,583  
    Other income   1,750       2,221  
    Total revenues   172,289       201,127  
           
    EXPENSES      
    Losses and loss adjustment expenses (a)   99,525       110,049  
    Other operating expenses   50,560       50,810  
    Other expenses   563       732  
    Interest expense   5,541       6,485  
    Intangible asset amortization and impairment   91       91  
    Total expenses   156,280       168,167  
    Income from continuing operations before income taxes   16,009       32,960  
    Income tax expense on continuing operations   5,021       9,452  
    Net income from continuing operations   10,988       23,508  
    Net loss from discontinued operations   (1,414 )     (8,105 )
    NET INCOME   9,574       15,403  
    Dividends on Series A preferred shares   (1,969 )     (2,625 )
    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 7,605     $ 12,778  
    ADJUSTED NET OPERATING INCOME (b) $ 9,102     $ 14,832  
           
    INCOME (LOSS) PER COMMON SHARE      
    Basic      
    Continuing operations $ 0.20     $ 0.55  
    Discontinued operations $ (0.03 )   $ (0.21 )
      $ 0.17     $ 0.34  
    Diluted      
    Continuing operations (c) $ 0.18     $ 0.53  
    Discontinued operations $ (0.02 )   $ (0.18 )
      $ 0.16     $ 0.35  
           
    ADJUSTED NET OPERATING INCOME PER COMMON SHARE      
    Basic $ 0.20     $ 0.39  
    Diluted (c) $ 0.19     $ 0.39  
           
    Weighted-average common shares outstanding:      
    Basic   45,803,501       37,733,710  
    Diluted   59,659,075       44,638,969  
    Cash dividends declared per common share $ 0.01     $ 0.05  
           
    Ratios:      
    Loss ratio   66.8 %     66.4 %
    Expense ratio (d)   32.7 %     28.9 %
    Combined ratio   99.5 %     95.3 %
    Accident year loss ratio (e)   65.5 %     66.7 %
           
    (a) Losses and loss adjustment expenses include benefits of $1.9 million and $4.0 million for deferred retroactive reinsurance gains (benefits) for the three months ended March 31, 2025 and 2024, respectively.
    (b) See “Reconciliation of Non-GAAP Measures”.
    (c) The outstanding Series A preferred shares were dilutive in both periods. Dividends on the Series A preferred shares were added back to the numerator of the calculation and common shares from an assumed conversion of the Series A preferred shares were included in the denominator.
    (d) Calculated with a numerator comprising other operating expenses less gross fee income (in specific instances when the Company is not retaining insurance risk) included in “Other income” in our Condensed Consolidated Income Statements of $0.8 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively.
    (e) Ratio of losses and loss adjustment expenses for the current accident year, excluding development on prior accident year reserves, to net earned premiums for the current year (excluding net earned premium adjustments on certain reinsurance treaties with reinstatement premiums associated with prior years).
     
    James River Group Holdings, Ltd. and Subsidiaries
    Segment Results
     
    EXCESS AND SURPLUS LINES
     
      Three Months Ended
    March 31,
       
    ($ in thousands)   2025       2024     % Change
    Gross written premiums $ 213,243     $ 213,691     (0.2 )%
    Net written premiums $ 115,079     $ 117,425     (2.0 )%
               
    Net earned premiums $ 137,028     $ 145,623     (5.9 )%
    Losses and loss adjustment expenses excluding retroactive reinsurance   (88,804 )     (93,605 )   (5.1 )%
    Underwriting expenses   (36,566 )     (33,527 )   9.1 %
    Underwriting profit (a) $ 11,658     $ 18,491     (37.0 )%
               
    Ratios:          
    Loss ratio   64.8 %     64.3 %    
    Expense ratio   26.7 %     23.0 %    
    Combined ratio   91.5 %     87.3 %    
    Accident year loss ratio (b)   63.4 %     64.3 %    
               
    (a) See “Reconciliation of Non-GAAP Measures”.
    (b) Ratio of losses and loss adjustment expenses for the current accident year, excluding development on prior accident year reserves, to net earned premiums for the current year (excluding net earned premium adjustments on certain reinsurance treaties with reinstatement premiums associated with prior years).
       
    SPECIALTY ADMITTED INSURANCE  
       
      Three Months Ended
    March 31,
         
    ($ in thousands)   2025       2024     % Change  
    Gross written premiums $ 81,118     $ 117,119     (30.7 )%
    Net written premiums $ 12,877     $ 20,747     (37.9 )%
                 
    Net earned premiums $ 14,874     $ 26,068     (42.9 )%
    Losses and loss adjustment expenses   (12,649 )     (20,446 )   (38.1 )%
    Underwriting expenses   (2,531 )     (4,836 )   (47.7 )%
    Underwriting profit (a), (b) $ (306 )   $ 786      
                 
    Ratios:            
    Loss ratio   85.0 %     78.4 %      
    Expense ratio   17.1 %     18.6 %      
    Combined ratio   102.1 %     97.0 %      
    Accident year loss ratio   85.9 %     80.1 %      
                 
    (a) See “Reconciliation of Non-GAAP Measures”.            
    (b) Underwriting results for the three months ended March 31, 2025 and 2024 include gross fee income of $4.3 million and $5.3 million, respectively.  
       

    Underwriting Performance Ratios

    The following table provides the underwriting performance ratios of the Company’s continuing operations inclusive of the business subject to retroactive reinsurance accounting. There is no economic impact to the Company over the life of a retroactive reinsurance contract so long as any additional losses subject to the contract are within the limit of the contract and the counterparty performs under the contract. Retroactive reinsurance accounting is not indicative of our current and ongoing operations. Management believes that providing loss ratios and combined ratios on business not subject to retroactive reinsurance accounting gives the users of our financial statements useful information in evaluating our current and ongoing operations.

      Three Months Ended
    March 31,
      2025   2024
    Excess and Surplus Lines:      
    Loss Ratio 64.8 %   64.3 %
    Impact of retroactive reinsurance (1.4 )%   (2.7 )%
    Loss Ratio including impact of retroactive reinsurance 63.4 %   61.6 %
           
    Combined Ratio 91.5 %   87.3 %
    Impact of retroactive reinsurance (1.4 )%   (2.7 )%
    Combined Ratio including impact of retroactive reinsurance 90.1 %   84.6 %
           
    Consolidated:      
    Loss Ratio 66.8 %   66.4 %
    Impact of retroactive reinsurance (1.3 )%   (2.3 )%
    Loss Ratio including impact of retroactive reinsurance 65.5 %   64.1 %
           
    Combined Ratio 99.5 %   95.3 %
    Impact of retroactive reinsurance (1.3 )%   (2.3 )%
    Combined Ratio including impact of retroactive reinsurance 98.2 %   93.0 %
               

    RECONCILIATION OF NON-GAAP MEASURES

    Underwriting Profit

    The following table reconciles the underwriting profit by individual operating segment and for the entire Company to consolidated income from continuing operations before taxes. We believe that the disclosure of underwriting profit by individual segment and of the Company as a whole is useful to investors, analysts, rating agencies and other users of our financial information in evaluating our performance because our objective is to consistently earn underwriting profits. We evaluate the performance of our segments and allocate resources based primarily on underwriting profit. We define underwriting profit as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) less losses and loss adjustment expenses on business from continuing operations not subject to retroactive reinsurance accounting and other operating expenses. Other operating expenses include the underwriting, acquisition, and insurance expenses of the operating segments and, for consolidated underwriting profit, the expenses of the Corporate and Other segment. Our definition of underwriting profit may not be comparable to that of other companies.

      Three Months Ended
    March 31,
    ($ in thousands)   2025       2024  
    Underwriting profit of the operating segments:      
    Excess and Surplus Lines $ 11,658     $ 18,491  
    Specialty Admitted Insurance   (306 )     786  
    Total underwriting profit of operating segments   11,352       19,277  
    Other operating expenses of the Corporate and Other segment   (10,631 )     (11,137 )
    Underwriting profit (a)   721       8,140  
    Losses and loss adjustment expenses – retroactive reinsurance   1,928       4,002  
    Net investment income   20,008       22,632  
    Net realized and unrealized gains on investments   (1,371 )     4,583  
    Other income (expense)   355       179  
    Interest expense   (5,541 )     (6,485 )
    Amortization of intangible assets   (91 )     (91 )
    Income from continuing operations before taxes $ 16,009     $ 32,960  
           
    (a) Included in underwriting results for the three months ended March 31, 2025 and 2024 is gross fee income of $4.3 million and $5.3 million, respectively.
     

    Adjusted Net Operating Income

    We define adjusted net operating income as income available to common shareholders excluding a) income (loss) from discontinued operations, b) the impact of retroactive reinsurance accounting, c) net realized and unrealized gains (losses) on investments, d) certain non-operating expenses such as professional service fees related to certain lawsuits, various strategic initiatives, and the filing of registration statements for the offering of securities, e) severance costs associated with terminated employees, and f) deemed dividends recorded with the amendment of the Series A Preferred Shares. Adjusted net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of adjusted net operating income may not be comparable to that of other companies.

    Our income available to common shareholders reconciles to our adjusted net operating income as follows:

      Three Months Ended March 31,
        2025       2024  
    ($ in thousands) Income
    Before
    Taxes
      Net
    Income
      Income
    Before
    Taxes
      Net
    Income
    Income available to common shareholders $ 12,626     $ 7,605     $ 22,230     $ 12,778  
    Loss from discontinued operations   1,414       1,414       8,105       8,105  
    Losses and loss adjustment expenses – retroactive reinsurance   (1,928 )     (1,523 )     (4,002 )     (3,162 )
    Net realized and unrealized investment losses (gains)   1,371       1,083       (4,583 )     (3,621 )
    Other expenses   563       523       732       732  
    Adjusted net operating income $ 14,046     $ 9,102     $ 22,482     $ 14,832  
                                   

    Tangible Equity (per Share) and Tangible Common Equity (per Share)

    We define tangible equity as shareholders’ equity plus mezzanine Series A Preferred Shares and the deferred retroactive reinsurance gain less goodwill and intangible assets, net of amortization. Tangible equity per share represents tangible equity divided by the sum of total common shares outstanding plus the common shares resulting from an assumed conversion of the outstanding Series A Preferred Shares into common shares (at the conversion price effective as of the last day of the applicable period). We define tangible common equity as tangible equity less mezzanine Series A Preferred Shares and tangible common equity per share represents tangible common equity divided by the total common shares outstanding. Our definitions of tangible equity and tangible equity per share may not be comparable to that of other companies, and they should not be viewed as a substitute for shareholders’ equity and shareholders’ equity per share calculated in accordance with GAAP. We use tangible equity and tangible common equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity and tangible common equity for March 31, 2025, December 31, 2024, March 31, 2024, and December 31, 2023.

      March 31,
    2025
      December 31,
    2024
      March 31,
    2024
      December 31,
    2023
    ($ in thousands, except for share data)              
    Shareholders’ equity $ 484,480     $ 460,915     $ 539,537     $ 534,621  
    Plus: Series A redeemable preferred shares   133,115       133,115       144,898       144,898  
    Plus: Deferred reinsurance gain   56,042       57,970       16,731       20,733  
    Less: Goodwill and intangible assets   214,190       214,281       214,553       214,644  
    Tangible equity $ 459,447     $ 437,719     $ 486,613     $ 485,608  
    Less: Series A redeemable preferred shares   133,115       133,115       144,898       144,898  
    Tangible common equity $ 326,332     $ 304,604     $ 341,715     $ 340,710  
                   
    Common shares outstanding   45,892,706       45,644,318       37,822,340       37,641,563  
    Common shares from assumed conversion of Series A preferred shares   13,521,635       13,521,635       6,750,567       5,971,184  
    Common shares outstanding after assumed conversion of Series A preferred shares   59,414,341       59,165,953       44,572,907       43,612,747  
                   
    Equity per share:              
    Shareholders’ equity $ 10.56     $ 10.10     $ 14.27     $ 14.20  
    Tangible equity $ 7.73     $ 7.40     $ 10.92     $ 11.13  
    Tangible common equity $ 7.11     $ 6.67     $ 9.03     $ 9.05  

    _______________
    1 Adjusted net operating income, tangible common equity and adjusted net operating return on tangible common equity are non-GAAP financial measures. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.
    2 The Company closed the sale of JRG Reinsurance Company Ltd. on April 16, 2024. The full financials for our former Casualty Reinsurance segment have been classified to discontinued operations for all periods and includes the final adjustment determination to the closing purchase price pursuant to the Stock Purchase Agreement.
    3 Tangible common equity is a non-GAAP financial measures. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.

    The MIL Network

  • MIL-OSI Europe: Written question – Impact of the revised EU Emissions Trading System on household costs – E-001665/2025

    Source: European Parliament

    Question for written answer  E-001665/2025
    to the Commission
    Rule 144
    Beatrice Timgren (ECR), Charlie Weimers (ECR), Dick Erixon (ECR)

    The extension of the EU Emissions Trading System (ETS) to include road transport and buildings under ETS 2 is expected to significantly raise energy costs for households across the EU. According to a recent analysis, the cost of this measure could be as much as EUR 650 per year for Belgian households.[1]

    This raises concerns about the distributive effects of the revised ETS, especially at a time when many families are already struggling with inflation and high energy prices. The largest burden will fall disproportionately on middle- and lower-income citizens in colder, car-dependent regions.

    • 1.Does the Commission acknowledge that the revised ETS places a disproportionate financial burden on certain Member States and certain households, e.g. those living in colder rural areas?
    • 2.In the light of the disproportionate burden placed on certain households, has the Commission considered adjusting the ETS so that it does not punish households that are not eligible for compensation from the Social Climate Fund, but which are still hit with considerably increased expenses?
    • 3.Considering the strained financial situation for many households, has the Commission considered pausing the implementation of the revised ETS, and what would the consequences on climate and household economy be if such a pause took place?

    Submitted: 24.4.2025

    • [1] https://energyville.be/wp-content/uploads/2025/04/ETS2-paper_final-15042025.pdf.
    Last updated: 5 May 2025

    MIL OSI Europe News

  • MIL-OSI: Aktsiaselts Infortar interim report for Q1 2025

    Source: GlobeNewswire (MIL-OSI)

    Aktsiaselts Infortar interim report for Q1 2025

    Infortar will arrange a webinar for investors today 5 May 2025.Please join the webinar via the following links:

    Estonia’s largest investment holding company, Infortar, increased its turnover by 20% in the first quarter of the year compared to the same period last year, reaching €447 million. The group’s total assets nearly doubled to €2.6 billion, while investments tripled to €22 million. In recent years, Infortar has nearly doubled the size of its real estate portfolio and is actively expanding across multiple sectors.

    Since August 1st of last year, the results of Tallink, a group company, have been consolidated into Infortar’s financial statements. Due to the highly seasonal nature of the maritime transport business, Tallink’s first-quarter loss of €33 million was reflected in Infortar’s own results. An additional impact came from a €1.7 million income tax expense, resulting in a total net loss of €14.6 million for Infortar in the first quarter, of which €4.5 million was attributable to Infortar’s shareholders. The energy business was affected by an exceptionally warm winter and lower consumption, but remained profitable overall. The real estate segment, meanwhile, showed significant year-on-year growth in volumes. 

    “The economy stands on three pillars – agriculture, industry, and services. In recent years, Infortar has expanded its presence across all three to achieve its goals and diversify risk. Moreover, we have grown into a market leader in each,” said Ain Hanschmidt, Chairman of the Management Board of Infortar.

    “The performance of Tallink had the biggest impact on Infortar’s first-quarter profitability. In addition to typical seasonality, passenger numbers in the first quarter reflected the state of the core markets’ economies and low consumer confidence. Still, it is important to note that the most challenging period of the year is now behind Tallink, and the outlook is more optimistic,” Hanschmidt added.

    “The energy business was affected by an exceptionally mild winter, lower consumption, and a gas surplus. Nevertheless, the segment remained profitable, primarily due to well-placed investments in gas distribution networks in Latvia and Poland. In real estate, we continued rapid growth – over the past year, we have expanded our portfolio by nearly 50%, becoming one of the largest property owners in the Baltics,” said Hanschmidt.

    “Despite a turbulent environment, Infortar continues to grow as one of the largest investment companies on the eastern coast of the Baltic Sea, actively seeking new investment opportunities. Our balance sheet strength is the key indicator of resilience – Infortar’s financial position and liquidity remain solid, free liquidity is €153 million enabling us to generate cash and invest. We can also confirm our continued commitment to the stated dividend policy. Diversification across sectors and countries has created a strong platform that provides confidence even in volatile times,” Hanschmidt concluded.

    Major Event

    Maritime transport

    Tallink´s first quarter of 2025 was impacted by low consumer and business confidence levels, the economic challenges in the Group’s core markets and global geopolitical tensions. As at the end of the quarter, the Group operated 14 vessels including 2 shuttle vessels, 6 passenger vessels, 2 vessels that were chartered out and 4 vessels that were in lay-up.

    During the quarter Tallink´s total investments amounted to EUR 13.3 million majority of which were made to upgrading the cruise ferries Baltic Princess and Silja Serenade. The planned maintenance works totalling 68 days in the first quarter of 2025 affected the passenger and cargo levels in Finland-Sweden routes.

    Energy

    In the first quarter, natural gas consumption in the Finnish-Baltic region totalled 15,0 TWh, decreasing by 19% compared with the previous year (16,5 TWh). Energy sales were negatively impacted by higher-than-average temperatures, which reduced the demand for natural gas.

    In the first quarter of 2025, Elenger Grupp sold a total of 4.6 TWh of energy (compared to 6,1 TWh in Q1 2024). Sales in Estonia accounted for 17% of the energy sales in Q1 2025. The company´s market share decreased in Q1 2025 to 20,0% in the Finland-Baltic gas market.

    Real estate

    At the end of last year, the Rimi logistics center in Saue municipality received its usage permit; this summer, the new bridge in Pärnu will be completed, and next year, DEPO will open its second store in Estonia, located in Lasnamäe.

    Key financial figures

    Key figures Q1 2025 Q1 2024 12 months 2024
    Sales revenue. m€ 447.357 372.584 1 371.775
    Gross profit. m€ 26.068 50.004 128.628
    EBITDA. m€ 27.661 74.004 145.275
    EBITDA margin (%) 6.2% 19.9% 10.6%
    Net profit. EBIT. m€ -0.655 67.624 77.024
    Total profit(-loss). m€ -14.561 62.062 193.670
    Net profit (-loss) holders of the Parent m€ -4.479 62.167 191.253
    EPS (euros)* -0.2 3.1 9.6
    Total equity m€ 1 181.002 820.210 1 166.222
    Total liabilities m€ 1 105.305 852.690 1 223.287
    Net debt m€ 952.397 195.799 1 055.708
    Investment loans to EBITDA (ratio)** 3.3x 1.5x 3.0x

    Notes:*For the earnings per share (EPS) calculation, the number of shares as of 31.03.35 has been used for comparability. Formula: profit/loss attributable to Infortar shareholders divided by the number of shares, excluding own shares issued under the stock option program. Example calculation based on the end of Q1 2024: (191 x 1,000,000) / (20,443,629 – 722,610).**Investment loans / EBITDA, annualized. For comparability,actualEBITDA of Tallink Grupp for the relevant period has been used, based on Tallink Grupp quarterly report.

    Revenue

    In the first quarter of the 2025 financial year, the Group’s consolidated revenue increased by EUR 74.7 million to EUR 447.4 million (Q1 2024 consolidated revenue: EUR 372.6 million). A significant impact came from the consolidation of Tallink Grupp’s results into Infortar’s consolidated financial statements as of 1 August 2024.

    EBITDA and Segment Reporting
    In the first quarter of the 2025 financial year, the EBITDA of the maritime transport segment amounted to EUR -3.8 million (Q1 2024: EUR 34.5 million).
    The energy segment’s EBITDA was EUR 31.8 million (Q1 2024: EUR 73.9 million).
    In the real estate segment, profitability is assessed based on the EBITDA of individual real estate entities.

    Based on separate real-estate companies results, the real estate segment’s EBITDA was EUR 3.4 million in Q1 2025 (Q1 2024: EUR 3.8 million).

    Net Profit (Loss)
    The consolidated net loss for the first quarter of the 2025 financial year was EUR -14.6 million, including a loss attributable to Infortar’s owners of EUR -4.5million (Q1 2024 net profit: EUR 62.1 million, including EUR 62.2 million attributable to Infortar’s owners).

    Investments
    In the spring of 2024, Infortar entered the agricultural sector by acquiring one of Estonia’s largest dairy farms in Halinga and began construction of a biomethane plant next to the farm to produce local green gas. Today, on 5 May, Infortar announced an additional investment plan in Estonia Farmid OÜ.
    In the first quarter of 2025, the total amount of investments made by the Infortar Group was approximately EUR 22 million.

    Financing
    As of the first quarter of the 2025 financial year, the Group’s total loan and lease liabilities amounted to EUR 1 105.3million (compared to EUR 1 223.3 million at the end of the 2024 financial year). Infortar’s net debt stood at EUR 952.397 million. The net debt to EBITDA ratio was 3.4.

    Dividends

    According to the dividend policy, the objective is to pay dividends of at least 1 euro per share per financial year. Dividend payments are made semi-annually. Infortar Group’s management proposes to pay a dividend of 3 euros per share for the 2024 financial year results. According to the proposal, the first payout is planned to be made no later than July, and the second payout in December 2025. 

    Consolidated Statement of Profit or Loss

    (in thousands of EUR) Q1 2025 Q1 2024 12 months 2024
    Revenue 447 357 372 584 1 371 775
    Cost of goods (goods and services) sold -421 173 -322 573 -1 243 034
    Write-down of receivables -116 -7 -113
    Gross profit 26 068 50 004 128 628
    Marketing expenses -10 976 -415 -21 086
    General administrative expenses -20 965 -7 238 -50 438
    Profit (loss) from derivatives 0   26 672
    Profit (loss) from biological assets -33 0 -139
    Profit (loss) from the change in the fair value of the investment property 0 156 -949
    Profit (loss) from the change in the fair value of the investment property 3 939 24 659 -8 691
    Other operating revenue 1 956 600 4 682
    Other operating expenses -644 -142 -1 655
    Operating profit -655 67 624 77 024
           
    (in thousands of EUR) Q1 2025 Q1 2024 12 months 2024
    Profit (loss) from investments accounted for by equity method 955 2 000 22 974
    Financial income and expenses:      
    Other financial investments -333 0 13 342
    Interest expense -12 896 -6 745 -38 274
    Interest income 842 1 244 4 979
    Profit (loss) from changes in exchange rates -315 -2 100
    Other financial income and expenses -451 4 93 659
    Total financial income and expenses -13 153 -5 499 73 806
    Profit before tax -12 853 64 125 173 804
    Corporate income tax -1 708 -2 063 19 866
    Profit for the financial year -14 561 62 062 193 670
    including:      
    Profit attributable to the owners of the parent company -4 479 62 167 191 253
    Profit attributable to non-controlling interest -10 082 -105 2 417
           
    Other comprehensive income Q1 2025 Q1 2024 12 months 2024
    tems that will not be reclassified to profit or loss      
    Revaluation of post-employment benefit obligations     -141
    Items that may be subsequently reclassified to the income statement:  
    Revaluation of risk hedging instruments     -45 792
    Exchange rate differences attributable to foreign subsidiaries     53
    Total of other comprehensive income     -45 880
    Total income, including:     147 790
    including:      
    Comprehensive profit attributable to the owners of the parent company     145 514
    Comprehensive profit attributable to non-controlling interest     2 417
    Ordinary earnings per share (in euros per share) -0,22 14,62 9
    Diluted earnings per share (in euros per share) -0,21 14,15 14,15

    Consolidated Statement of Financial Position

    (in thousands of EUR) 31.03.25 31.12.24
    Current assets    
    Cash and cash equivalents 152 908 167 579
    Short term financial investments 0 0
    Derivative financial assets 16 968 8 333
    Settled derivative receivables 2 448 676
    Other prepayments and receivables 153 040 155 351
    Prepayments for taxes 3 650 3 831
    Trade and other receivables 51 379 38 517
    Prepayments for inventories 1 953 2 498
    Inventories 124 636 215 914
    Biological assets 941 941
    Total current assets 507 923 593 640
         
    Non-current assets 31.03.25 31.12.24
    Investments to associates 17 559 16 603
    Long-term derivative instruments 340 3 214
    Other long term obligations 34 685 35 163
    Property, plant and equipment at fair value 1 309 599 1 315 167
    Investment property 68 175 67 931
    Property, plant and equipment 598 280 594 291
    Intangible assets 38 008 38 874
    Right-of-use assets 46 043 47 598
    Biological assets 2 720 2 753
    Total non-current assets 2 115 409 2 121 594
    TOTAL ASSETS 2 623 332 2 715 234
         
    (in thousands of EUR) 31.03.25 31.12.24
    Current liabilities    
    Loan liabilities 396 801 497 162
    Rental liabilities 8 755 9 020
    Payables to suppliers 104 664 87 941
    Tax obligations 48 861 49 354
    Buyers’ advances 40 946 31 126
    Settled derivatives 9 706 8 728
    Other current liabilities 68 409 63 431
    Short term derivatives 8 285 27 704
    Total current liabilities 686 427 774 466
         
    Non-current liabilities 31.03.25 31.12.24
    Long-term provisions 8 455 9 946
    Deferred taxes 3 039 2 816
    Other long-term liabilities 43 412 43 209
    Long-term derivatives 1 248 1 471
    Loan-liabilities 661 602 676 670
    Rental liabilities 38 147 40 435
    Total non-current liabilities 755 903 774 547
    TOTAL LIABILITIES 1 442 330 1 549 013
         
    (in thousands of EUR) 31.03.25 31.12.24
    Equity    
    Share capital 2 117 2 117
    Own shares -72 -72
    Share premium 32 484 32 484
    Reserve capital 212 212
    Option reserve 7 431 6 223
    Hedging reserve* 3 510 -21 674
    Unrealised currency translation differences 2 854 45
    Employment benefit reserve -44 -185
    Retained earnings 885 688 890 167
    Net profit of the financial year    
    Total equity attributable to equity holders of the Parent 934 180 909 317
    Minority interests 246 822 256 904
    Total equity 1 181 002 1 166 221
         
    TOTAL LIABILITIES AND EQUITY 2 623 332 2 715 234

    Consolidated Statement of Cash Flows

    Cash flows from operating activities    
    (in thousands of EUR) 3 months
    2024
    12 months
    2024
    Profit for the financial year -14 561 193 670
    Adjustments:    
    Depreciation, amortisation, and impairment of non-current assets 28 316 68 251
    Change in the fair value of the investment property 0 0
    Equity profits/losses -956 -22 974
    Change in the value of derivatives -79 -1 483
    Other financial income/expenses 2 300 -112 030
    Calculated interest expenses 12 896 38 274
    Profit/loss from non-current assets sold -116 -955
    Income from grants recognised as revenue -385 -643
    Corporate income tax expense 1 708 -19 866
    Income tax paid -1 485 -10 551
    Change in receivables and prepayments related to operating activities -12 184 52 023
    Change in inventories 91 823 -12 831
    Change in payables and prepayments relating to operating activities 29 780 -81 275
    Change in biological assets 33 -322
    Total cash flows from operating activities 137 090 89 288
         
    Cash flows from investing activities 3 months
    2024
    12 months
    2024
    Purchases of subsidiaries -333 -111 684
    Proceeds from the sale of other financial investments 0 0
    Received dividends 0 20 862
    Given loans 607 1 918
    Interest gain 755 4 953
    Purchases Investment property -244 -10 352
    Purchases of property, plant and equipment -23 305 -27 835
    Proceeds from sale of property 139 1 561
    Total cash flows used in investing activities -22 381 -120 577
         
    Cash flows used in financing activities 3 months
    2024
    12 months
    2024
    Gain from goverment grants 394 225
    Changes in overdraft -43 343 12 863
    Proceeds from borrowings 94 276 358 731
    Repayments of borrowings -166 362 -151 790
    Repayment of finance lease liabilities -3 591 -11 300
    Interest paid -10 754 -39 153
    Dividends paid 0 -60 997
    Gain from share emission 0 3 174
    Total cash flows used in financing activities -129 380 111 753
      0 0
    TOTAL NET CASH FLOW -14 671 80 464
    Cash at the beginning of the year 167 579 87 115
    Cash at the end of the period 152 908 167 579
    Net (decrease)/increase in cash -14 671 80 464

    Infortar operates in seven countries, the company’s main fields of activity are maritime transport, energy and real estate. Infortar owns a 68.47% stake in Tallink Grupp, a 100% stake in Elenger Grupp and a versatile and modern real estate portfolio of approx. 141,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, and other areas. A total of 110 companies belong to the Infortar group: 101 subsidiaries, 4 affiliated companies and 5 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 6,296 people.

    Additional information:

    Kadri Laanvee
    Investor Relations Manager
    Phone: +372 5156662
    e-mail: kadri.laanvee@infortar.ee
    www.infortar.ee/en/investor

    Attachments

    The MIL Network

  • MIL-OSI: Bitget Wallet Partners With Paydify to Expand Global Crypto Acceptance

    Source: GlobeNewswire (MIL-OSI)

    SAN SALVADOR, El Salvador, May 02, 2025 (GLOBE NEWSWIRE) — Bitget Wallet, a leading Web3 non-custodial wallet, has announced its integration with Paydify, a universal crypto payment gateway, becoming Paydify’s first wallet integration partner. The integration enables merchants to accept stablecoin payments from Bitget Wallet users, streamlining crypto payment infrastructure and expanding the practical use of digital assets in everyday settings.

    Through the integration, Bitget Wallet users can pay with USDT and USDC at select physical and online merchants via Paydify’s infrastructure. Merchants receive instant settlement in stablecoins without needing to manage blockchain-specific setups. Thousands of transactions have been completed in the pilot phase. The service is set to expand globally across industries such as retail, travel, hospitality, gaming, and e-commerce. Broader token support and compatibility with additional wallets are also on the roadmap, with the goal of enabling payments in any token on any chain.

    This partnership forms part of Bitget Wallet’s broader PayFi strategy, which focuses on expanding crypto from holding and trading to active usage in real-world scenarios. “Our goal is to make crypto more usable for everyday needs, and Paydify helps reduce the complexity merchants face. By integrating an open payment layer, we’re moving closer to this goal.” said Alvin Kan, COO of Bitget Wallet. “Bitget Wallet is among the first major wallets to implement a stablecoin payment use case at the point of sale. We aim to support over 10,000 merchants globally in the next few years.”

    Paydify was developed to address long-standing fragmentation in crypto payments, where chain and wallet compatibility often hinder merchant adoption. It allows businesses to accept crypto from any wallet without the need for custom integration. According to the latest Onchain Report, 31% of global users cite limited merchant acceptance as a key barrier to using crypto for payments. Paydify aims to bridge this gap by offering instant settlement and minimizing onboarding complexity.

    Our integration with Bitget Wallet provides the opportunity to test and refine a merchant-focused payment experience in real conditions,” said Pakning Luk, Director of Strategy at Paydify. “We believe crypto should work as easily as any mainstream payment method. Our aim is to offer a seamless and reliable framework for digital asset payments that meets the needs of both users and businesses.

    To support merchant onboarding, businesses that sign up through Bitget Wallet will receive waived settlement fees and early access to upcoming features during the pilot period. Interested merchants can learn more or apply to join at: https://www.paydify.com/en/sign_up

    About Bitget Wallet
    Bitget Wallet is a non-custodial crypto wallet designed to make crypto simple, secure, and accessible for everyone. With over 60 million users, it brings together a full suite of crypto services, including swaps, market insights, staking, rewards, a DApp browser, and crypto payment solutions. Supporting 130+ blockchains, 20,000+ DApps, and a million tokens, Bitget Wallet enables seamless multi-chain trading across hundreds of DEXs and cross-chain bridges. Backed by a $300+ million user protection fund, it ensures the highest level of security for users’ assets.

    For more information, visit: X | Telegram | Instagram | YouTube | LinkedIn | TikTok | Discord | Facebook

    For media inquiries, please contact media.web3@bitget.com

    About Paydify
    Paydify is a universal gateway enabling crypto payments across all wallets and blockchain networks. Built for both online and offline merchants, Paydify provides instant settlement and universal connectivity — making crypto payments practical for global commerce. Paydify operates with a mission to unify the fragmented blockchain ecosystem and make digital payments accessible to businesses everywhere.

    For more info, visit paydify.com and follow us on LinkedIn and X

    For media and partnership inquiries, please contact: partnerships@paydify.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/32a3ce3a-3076-46cd-a46b-86a5b7160d11

    The MIL Network

  • MIL-OSI New Zealand: Petdirect Secures Exclusive NZ Rights to M-PETS

    Source: Press Release Service – Press Release/Statement:

    Headline: Petdirect Secures Exclusive NZ Rights to M-PETS

    Petdirect, New Zealand’s leading Kiwi-owned pet retailer, is proud to announce the exclusive launch of M-PETS, a globally recognised brand of high-quality, design-led pet essentials. Already available in over 70 countries, M-PETS is now officially and exclusively distributed in New Zealand by Petdirect, with a curated range of over 100 everyday products for cats and dogs and more coming soon.

    The post Petdirect Secures Exclusive NZ Rights to M-PETS first appeared on PR.co.nz.

    – –

    MIL OSI New Zealand News

  • MIL-OSI: Kayne Anderson Energy Infrastructure Fund Provides Unaudited Balance Sheet Information and Announces Its Net Asset Value and Asset Coverage Ratios as of April 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) — Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) today provided a summary unaudited statement of assets and liabilities and announced its net asset value and asset coverage ratios under the Investment Company Act of 1940 (the “1940 Act”) as of April 30, 2025.

    As of April 30, 2025, the Company’s net assets were $2.3 billion, and its net asset value per share was $13.50. As of April 30, 2025, the Company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 713% and the Company’s asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 515%.

     STATEMENT OF ASSETS AND LIABILITIES
    APRIL 30, 2025   // (UNAUDITED)
     
        (in millions)
    Investments   $ 3,131.2  
    Cash and cash equivalents     3.1  
    Accrued income     9.7  
    Other assets     1.0  
    Total assets     3,145.0  
         
    Credit facility     9.0  
    Notes     388.2  
    Unamortized notes issuance costs     (2.5 )
    Preferred stock     153.6  
    Unamortized preferred stock issuance costs     (1.2 )
    Total leverage     547.1  
         
    Payable for securities purchased     7.5  
    Other liabilities     13.7  
    Current tax liability, net     6.2  
    Deferred tax liability, net     287.2  
    Total liabilities     314.6  
         
    Net assets   $ 2,283.3  
         

    The Company had 169,126,038 common shares outstanding as of April 30, 2025.

    Long-term investments were comprised of Midstream Energy Companies (95%), Utility Companies (2%) and Other (3%).  

    The Company’s ten largest holdings by issuer at April 30, 2025 were:

          Amount
    (in millions)
    % Long Term
    Investments
    1. The Williams Companies, Inc. (Midstream Energy Company)   $348.1   11.1 %
    2. MPLX LP (Midstream Energy Company)     308.2   9.8 %
    3. Enterprise Products Partners L.P. (Midstream Energy Company)     304.3   9.7 %
    4. Energy Transfer LP (Midstream Energy Company)     302.2   9.7 %
    5. Cheniere Energy, Inc. (Midstream Energy Company)     260.2   8.3 %
    6. Kinder Morgan, Inc. (Midstream Energy Company)     202.0   6.5 %
    7. ONEOK, Inc. (Midstream Energy Company)     177.9   5.7 %
    8. TC Energy Corporation (Midstream Energy Company)     166.9   5.3 %
    9. Targa Resources Corp. (Midstream Energy Company)     165.0   5.3 %
    10. Western Midstream Partners, LP (Midstream Energy Company)     130.8   4.2 %

    Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security. You can obtain a complete listing of holdings by viewing the Company’s most recent quarterly or annual report.

    Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

    This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.

    Contact investor relations at 877-657-3863 or cef@kayneanderson.com.

    The MIL Network

  • MIL-OSI New Zealand: Government remains on track to ban full Farm-to-Forest conversions

    Source: New Zealand Government

    Agriculture and Forestry Minister Todd McClay has confirmed that restrictions on full farm-to-forest conversions on LUC 1-6 farmland will be in place this year, and reaffirmed that they will take effect from 4 December 2024 – the date of the original announcement.
    Enabling legislation will be introduced to Parliament during Q2 of this year.
    “The Government is focused on maintaining strong food and fibre production while supporting sustainable land use. We remain concerned about the effect that farm conversions are having on highly productive land — particularly sheep and beef farms in Northland, the East Coast and parts of Otago and Southland,” Mr McClay says.
    The new rules, now progressing through Cabinet, will ensure balance and recognise the value of both forestry and farming, while providing certainty for our food producers. 
    Key changes include:

    A moratorium on full farm to forest conversions from entering the ETS for Land Use Classification (LUC) 1-5 actively farmed land.
    An annual registration cap of 15,000 hectares for forestry entering the ETS for LUC 6 farmland.
    Up to 25% of a farm’s LUC 1-6 land to be planted in forestry for the ETS, ensuring farmers retain flexibility and choice.
    Excluding specific categories of Māori-owned land from the restrictions, in line with Treaty obligations, while ensuring pathways for economic development  

    Mr McClay says that transitional measures for landowners who were in the process of afforestation prior to the 4 December 2024 announcement would be available where they could demonstrate qualifying evidence of a forestry investment  
    “These sensible rules will give certainty to rural communities, while providing clarity for foresters,” Mr McClay says.
    For more information please visit https://www.mpi.govt.nz/dmsdocument/68436-Update-on-proposed-changes-to-limit-farm-conversions-to-exotic-forestry-in-the-Emissions-Trading-Scheme-ETS

    MIL OSI New Zealand News

  • MIL-OSI: Fairfax India Holdings Corporation First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

    (Note:   All dollar amounts in this press release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from unaudited financial statements prepared using the recognition and measurement requirements of International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS®Accounting Standards”), except as otherwise noted. This press release contains certain non-GAAP and other financial measures, including book value per share and cash and marketable securities, that do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar financial measures presented by other issuers. See “Glossary of non-GAAP and other financial measures” at the end of this press release for further details.)
         

    TORONTO, May 01, 2025 (GLOBE NEWSWIRE) — Fairfax India Holdings Corporation (TSX: FIH.U) announces a net loss of $211.2 million ($1.57 net loss per diluted share) in the first quarter of 2025, compared to a net loss of $293.5 million in the first quarter of 2024 ($2.17 net loss per diluted share). The company’s book value per share decreased 7.4% to $19.41 at March 31, 2025 from $20.96 at December 31, 2024, primarily due to unrealized losses recorded on the company’s publicly listed investments.

    Highlights for the first quarter of 2025 included the following:

    • The company recorded a net change in unrealized losses on investments of $222.9 million, principally from decreases in the fair values of the company’s publicly listed investments in IIFL Capital (formerly IIFL Securities) ($106.8 million), IIFL Finance ($64.5 million), Fairchem Organics ($28.1 million), 5paisa ($10.0 million) and CSB Bank ($9.9 million), and private company investment in Sanmar ($19.2 million) (primarily due to a decrease in the publicly traded share price of its subsidiary, Chemplast), partially offset by an increase in the fair value of the company’s private company investment in Seven Islands ($18.7 million).
    • On February 20, 2025 the company completed its previously announced investment of an additional 10.0% equity interest in Bangalore International Airport Limited (“BIAL”) for a purchase price of $255.0 million. In accordance with the agreement with Siemens Project Ventures GmbH (“Siemens”), the company paid an initial installment on the closing date and recognized a payable for securities purchased of $170.9 million, representing the second and third installments to be paid in the third quarters of 2025 and 2026, respectively.
    • In February 2025, the company also increased the borrowing limit of its revolving credit facility from

    $175.0 million to $250.0 million, including the use of letters of credit. The company issued a letter of credit for $170.9 million in favour of Siemens equal to the deferred purchase price for the additional 10.0% equity interest in BIAL. The increased borrowing limit and Siemens letter of credit will be reduced over a period of approximately eighteen months in accordance with the terms of the amended credit agreement and letter of credit.

    Fairfax India is in strong financial health, with cash and marketable securities at March 31, 2025 of $113.0 million and $79.2 million available under its revolving credit facility.

    There were 134.8 million and 135.4 million weighted average common shares outstanding during the first quarters of 2025 and 2024, respectively. At March 31, 2025 there were 104,839,462 subordinate voting shares and 30,000,000 multiple voting shares outstanding.

    Unaudited balance sheets, earnings (loss) and comprehensive income (loss) information follow and form part of this press release. Fairfax India’s detailed first quarter report can be accessed at its website www.fairfaxindia.ca.

    Fairfax India Holdings Corporation is an investment holding company whose objective is to achieve long term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.

    For further information, contact: John Varnell, Vice President, Corporate Affairs
      (416) 367-4755
    Information on            
    CONSOLIDATED BALANCE SHEETS            
    as at March 31, 2025 and December 31, 2024            
    (unaudited – US$ thousands)            
      March 31, 2025
      December 31, 2024
     
    Assets    
    Cash and cash equivalents   21,616     59,322  
    Bonds   114,823     180,507  
    Common stocks   3,419,382     3,381,206  
    Total cash and investments   3,555,821     3,621,035  
                 
    Interest and dividends receivable   5,093     8,849  
    Income taxes refundable   175     174  
    Other assets   844     722  
    Total assets   3,561,933     3,630,780  
         
    Liabilities    
    Accounts payable and accrued liabilities   1,106     1,300  
    Accrued interest expense   2,736     8,611  
    Income taxes payable   1,547     5,379  
    Payable to related parties   9,434     10,099  
    Payable for securities purchased   170,850      
    Deferred income taxes   129,973     149,780  
    Borrowings   498,479     498,349  
    Total liabilities   814,125     673,518  
         
    Equity    
    Common shareholders’ equity   2,617,071     2,826,495  
    Non-controlling interests   130,737     130,767  
    Total equity   2,747,808     2,957,262  
        3,561,933     3,630,780  
                 
    Book value per share $       19.41   $ 20.96  
             
    Information on        
    CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)        
    for the three months ended March 31, 2025 and 2024        
    (unaudited – US$ thousands except per share amounts)        
      First quarter
      2025   2024  
    Income        
    Interest 3,196   5,038  
    Dividends 2,998   7,049  
    Net realized gains on investments 616   116,924  
    Net change in unrealized losses on investments (222,862 ) (410,927 )
    Net foreign exchange gains (losses) 3,245   (376 )
      (212,807 ) (282,292 )
    Expenses        
    Investment and advisory fees 9,399   9,484  
    General and administration expenses 1,648   2,536  
    Interest expense 6,755   6,380  
      17,802   18,400  
             
    Loss before income taxes (230,609 ) (300,692 )
    Recovery of income taxes (19,142 ) (7,483 )
    Net loss (211,467 ) (293,209 )
             
    Attributable to:        
    Shareholders of Fairfax India (211,224 ) (293,504 )
    Non-controlling interests (243 ) 295  
      (211,467 ) (293,209 )
                 
    Net loss per basic and diluted share $         (1.57 ) $    (2.17 )
    Shares outstanding (weighted average) 134,839,462   135,365,933  
             
             
             
    Information on        
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)        
    for the three months ended March 31, 2025 and 2024        
    (unaudited – US$ thousands)        
      First quarter
      2025   2024  
    Net loss (211,467 ) (293,209 )
    Other comprehensive income (loss), net of income taxes        
    Item that may be subsequently reclassified to net earnings (loss)        
    Unrealized foreign currency translation gains (losses), net of income taxes of nil (2024 – nil) 2,046   (5,708 )
    Comprehensive loss (209,421 ) (298,917 )
             
    Attributable to:        
    Shareholders of Fairfax India (209,391 ) (298,926 )
    Non-controlling interests (30 ) 9  
      (209,421 ) (298,917 )

    This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the company’s or an Indian Investment’s future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities of the company, an Indian Investment, or the Indian market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “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 state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

    Forward-looking statements are based on our opinions and estimates as of the date of this press release, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors: oil price risk; geographic concentration of investments; potential lack of diversification; foreign currency fluctuation; volatility of the Indian securities markets; investments may be made in foreign private businesses where information is unreliable or unavailable; valuation methodologies involve subjective judgments; financial market fluctuations; pace of completing investments; minority investments; reliance on key personnel and risks associated with the Investment Advisory Agreement; disruption of the company’s information technology systems could significantly affect the company’s business; lawsuits; use of leverage; significant ownership by Fairfax may adversely affect the market price of the subordinate voting shares; trading price of subordinate voting shares relative to book value per share risk; weather risk; taxation risks; emerging markets; legal, tax and regulatory risks; MLI; economic risk; reliance on trading partners; and economic disruptions from conflicts in Ukraine and the Middle East and the development of other geopolitical events and economic disruptions worldwide. Additional risks and uncertainties are described in the company’s annual information form dated March 7, 2025 which is available on SEDAR+ at www.sedarplus.ca and on the company’s website at www.fairfaxindia.ca. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the company. These factors and assumptions, however, should be considered carefully.

    Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws.

    GLOSSARY OF NON-GAAP AND OTHER FINANCIAL MEASURES
    Management analyzes and assesses the financial position of the consolidated company in various ways. Certain of the measures included in this press release, which have been used consistently and disclosed regularly in the company’s Annual Reports and interim financial reporting, do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other companies. Those measures are described below.

    Book value per share – The company considers book value per share a key performance measure in evaluating its objective of long term capital appreciation, while preserving capital. This measure is also closely monitored as it is used to calculate the performance fee, if any, to Fairfax Financial Holdings Limited. This measure is calculated by the company as common shareholders’ equity divided by the number of common shares outstanding.

    Cash and marketable securities – This measure is calculated by the company as the sum of cash, cash equivalents, short term investments and Government of India bonds. The company uses this measure to monitor short term liquidity risk.

    The MIL Network

  • MIL-OSI: HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    Shreveport, Louisiana, May 01, 2025 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (Nasdaq: HFBL), the holding company of Home Federal Bank, reported net income for the three months ended March 31, 2025, of $748,000 compared to net income of $732,000 reported for the three months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.24 for the three months ended March 31, 2025 and for the three months ended March 31, 2024. The Company reported net income of $2.7 million for the nine months ended March 31, 2025, compared to $3.0 million for the nine months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.88 for the nine months ended March 31, 2025 compared to $0.97 and $0.95, respectively, for the nine months ended March 31, 2024.

     The Company reported the following highlights during the nine months ended March 31, 2025:

      ●  Book value per share increased to $17.55 at March 31, 2025 from $16.80 at June 30, 2024.
      ●  There were no advances from the FHLB at March 31, 2025 or June 30, 2024.
      ●  Other borrowings totaled $4.0 million at March 31, 2025 compared to $7.0 million at June 30, 2024.

    The increase in net income for the three months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from an increase of $270,000, or 6.1%, in net interest income, an increase of $32,000, or 6.3%, in non-interest income, and a decrease of $5,000, or 45.5%, in the provision for credit losses, partially offset by an increase of $260,000, or 6.5%, in non-interest expense and an increase of $31,000, or 17.6%, in the provision for income taxes. The increase in net interest income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $735,000, or 21.1%, in total interest expense, partially offset by a decrease of $465,000, or 5.9%, in total interest income. The Company’s average interest rate spread was 2.66% for the three months ended March 31, 2025, compared to 2.16% for the three months ended March 31, 2024. The Company’s net interest margin was 3.33% for the three months ended March 31, 2025, compared to 2.89% for the three months ended March 31, 2024.

    The decrease in net income for the nine months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from a decrease of $891,000, or 6.1%, in net interest income and an increase of $102,000, or 35.2%, in the provision for income taxes, partially offset by a decrease of $331,000, or 2.7%, in non-interest expense, an increase of $248,000, or 23.0%, in non-interest income, and an increase of $167,000 in the recovery of credit losses. The decrease in net interest income for the nine months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $1.2 million, or 5.1%, in total interest income, partially offset by a decrease of $329,000, or 3.5%, in total interest expense. The Company’s average interest rate spread was 2.44% for the nine months ended March 31, 2025, compared to 2.46% for the nine months ended March 31, 2024. The Company’s net interest margin was 3.14% for the nine months ended March 31, 2025, and the nine months ended March 31, 2024.

    The following tables set forth the Company’s average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

        For the Three Months Ended March 31,  
        2025     2024  
        Average
    Balance
        Average
    Yield/Rate
        Average
    Balance
        Average
    Yield/Rate
     
        (Dollars in thousands)  
    Interest-earning assets:                                
    Loans receivable   $ 459,828       5.94 %   $ 504,918       5.80 %
    Investment securities     95,706       2.44       104,646       2.21 %
    Interest-earning deposits     14,513       3.05       3,607       3.79 %
    Total interest-earning assets   $ 570,047       5.28 %   $ 613,171       5.18 %
                                     
    Interest-bearing liabilities:                                
    Savings accounts   $ 94,375       1.75 %   $ 69,178       0.62 %
    NOW accounts     69,562       1.15       68,170       0.58 %
    Money market accounts     75,882       2.01       89,313       2.60 %
    Certificates of deposit     182,721       3.76       222,534       4.36 %
    Total interest-bearing deposits     422,540       2.57       449,195       2.86 %
    Other bank borrowings     4,000       7.71       9,448       8.73 %
    FHLB advances                 5,956       5.87 %
    Total interest-bearing liabilities   $ 426,540       2.62 %   $ 464,599       3.02 %
        For the Nine months ended March 31,  
        2025     2024  
        Average
    Balance
        Average
    Yield/Rate
        Average
    Balance
        Average
    Yield/Rate
     
        (Dollars in thousands)  
    Interest-earning assets:                                
    Loans receivable   $ 460,972       5.90 %   $ 503,664       5.80 %
    Investment securities     96,395       2.24       109,255       2.38 %
    Interest-earning deposits     23,326       4.45       5,060       3.55  
    Total interest-earning assets   $ 580,693       5.24 %   $ 617,979       5.18 %
                                     
    Interest-bearing liabilities:                                
    Savings accounts   $ 89,171       1.69 %   $ 73,676       0.46 %
    NOW accounts     71,022       1.17       67,145       0.47 %
    Money market accounts     76,828       2.20       98,021       2.44 %
    Certificates of deposit     191,936       4.04       209,985       4.05 %
    Total interest-bearing deposits     428,957       2.75       448,827       2.58 %
    Other bank borrowings     4,832       7.55       9,100       8.57 %
    FHLB advances                 4,151       5.77 %
    Total interest-bearing liabilities   $ 433,789       2.80 %   $ 462,078       2.72 %

    The $32,000 increase in non-interest income for the three months ended March 31, 2025, compared to the prior year quarterly period, was primarily due to an increase of $27,000 in other non-interest income, an increase of $19,000 in service charges on deposit accounts, an increase of $11,000 in gain on sale of loans, and an increase of $1,000 in income on bank owned life insurance, partially offset by a decrease of $26,000 in gain on sale of securities. The $248,000 increase in non-interest income for the nine months ended March 31, 2025 compared to the prior year nine-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $115,000 in other non-interest income, an increase of $14,000 in service charges on deposit accounts, and an increase of $5,000 in income from bank owned life insurance, partially offset by an increase of $32,000 in loss on sale of securities, and a decrease of $3,000 in gain on sale of loans.

    The $260,000 increase in non-interest expense for the three months ended March 31, 2025, compared to the same period in 2024, is primarily attributable to increases of $414,000 in data processing expense, $77,000 in occupancy and equipment expense, $67,000 in audit and examination fees, $49,000 in professional fees, $40,000 in other non-interest expense, $15,000 in loan and collection expense, and $12,000 in deposit insurance premium expense. The increases were partially offset by decreases of $317,000 in compensation and benefits expense, $55,000 in advertising expense, $33,000 in franchise and bank shares tax expense, and $9,000 in amortization of core deposit intangible expense. The $331,000 decrease in non-interest expense for the nine months ended March 31, 2025, compared to the same nine-month period in 2024, is primarily attributable to decreases of $470,000 in compensation and benefits expense, $184,000 in franchise and bank shares tax expense, $179,000 in advertising expense, $65,000 in other non-interest expense, $47,000 in professional fees, $42,000 in amortization of core deposit intangible expense, $22,000 in deposit insurance premium expense, and $19,000 in loan and collection expense. The decreases were partially offset by increases of $594,000 in data processing expense, $86,000 in occupancy and equipment expense, and $17,000 in audit and examination fees. The increase in data processing expense resulted from a billing discrepancy with our core processor, which had failed to issue invoices for certain services dating back to December 2022. Upon discovery of the issue, we negotiated a discounted settlement to resolve the outstanding invoices.

    Total assets decreased $17.9 million, or 2.8%, from $637.5 million at June 30, 2024 to $619.6 million at March 31, 2025. The decrease in assets was comprised of decreases in net loans receivable of $12.6 million, or 2.7%, from $470.9 million at June 30, 2024 to $458.3 million at March 31, 2025, cash and cash equivalents of $4.5 million, or 12.9%, from $34.9 million at June 30, 2024 to $30.4 million at March 31, 2025, premises and equipment of $736,000, or 4.0%, from $18.3 million at June 30, 2024 to $17.6 million at March 31, 2025, loans-held-for-sale of $734,000, or 42.4%, from $1.7 million at June 30, 2024 to $999,000 at March 31, 2025, core deposit intangible of $216,000, or 18.0%, from $1.2 million at June 30, 2024 to $983,000 at March 31, 2025, investment securities of $102,000, or 0.1%, from $96.0 million at June 30, 2024 to $95.9 million at March 31, 2025, and partially offset by increases in real estate owned of $482,000, or 115.3% from $418,000 at June 30, 2024 to $900,000 at March 31, 2025, deferred tax asset of $186,000, or 15.7%, from $1.2 million at June 30, 2024 to $1.4 million at March 31, 2025, other assets of $178,000, or 13.2%, from $1.3 million at June 30, 2024 to $1.5 million at March 31, 2025, bank owned life insurance of $87,000, or 1.3%, from $6.8 million at June 30, 2024 to $6.9 million at March 31, 2025, and accrued interest receivable of $27,000, or 1.5%, from $1.78 million at June 30, 2024 to $1.8 million at March 31, 2025.

    Total liabilities decreased $19.8 million, or 3.4%, from $584.7 million at June 30, 2024 to $564.9 million at March 31, 2025. The decrease in liabilities was comprised of decreases in total deposits of $17.2 million, or 3.0%, from $574.0 million at June 30, 2024 to $556.8 million at March 31, 2025, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at March 31, 2025, advances from borrowers for taxes and insurance of $137,000, or 26.3%, from $521,000 at June 30, 2024 to $384,000 at March 31, 2025, and partially offset by an increase in other accrued expenses and liabilities of $577,000, or 18.1%, from $3.2 million at June 30, 2024 to $3.8 million at March 31, 2025. The decrease in deposits resulted from decreases in certificates of deposit of $32.5 million, or 15.1%, from $214.9 million at June 30, 2024 to $182.4 million at March 31, 2025, money market deposits of $5.7 million, or 6.6%, from $85.5 million at June 30, 2024 to $79.9 million at March 31, 2025, and non-interest deposits of $535,000, or 0.4%, from $130.3 million at June 30, 2024 to $129.8 million at March 31, 2025, partially offset by increases in savings deposits of $19.3 million, or 25.2%, from $76.6 million at June 30, 2024 to $96.0 million at March 31, 2025, and NOW accounts of $2.1 million, or 3.1%, from $66.6 million at June 30, 2024 to $68.7 million at March 31, 2025. The Company had no balances in brokered deposits at March 31, 2025 or June 30, 2024.

    At March 31, 2025, the Company had $3.0 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $1.9 million of non-performing assets at June 30, 2024, consisting of six one-to-four family residential loans, six home equity loans, two commercial non-real estate loans, two commercial real-estate loans, and one consumer loan at March 31, 2025, compared to five one-to-four family residential loans, four home equity loans, three commercial non-real estate loans, and three single-family residences in other real estate owned at June 30, 2024. At March 31, 2025 the Company had nine one-to-four family residential loans, six home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and two consumer loans classified as substandard, compared to six one-to-four family residential loans, five commercial non-real-estate loans, four home equity loans and one consumer loan classified as substandard at June 30, 2024. There were no loans classified as doubtful at March 31, 2025 or June 30, 2024.

    Shareholders’ equity increased $1.9 million, or 3.6%, from $52.8 million at June 30, 2024 to $54.7 million at March 31, 2025. The increase in shareholders’ equity was comprised of net income for the nine-month period of $2.7 million, a decrease in the Company’s accumulated other comprehensive loss of $559,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $370,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by dividends paid totaling $1.2 million, and stock repurchases of $517,000.

    Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana.

    Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like believe,expect,anticipate,estimate, andintend, or future or conditional verbs such aswill,would,should,could, ormay. We undertake no obligation to update any forward-looking statements.

    In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Companys loans, investment and mortgage-backed securities portfolios; geographic concentration of the Companys business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Companys financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Companys operations, markets, products, services and fees.

    HOME FEDERAL BANCORP, INC. OF LOUISIANA
    CONSOLIDATED BALANCE SHEETS
    (In thousands except share and per share data)
     
                     
        March 31, 2025     June 30, 2024  
        (Unaudited)          
    ASSETS                
                     
    Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $22,197 and $25,505 at March 31, 2025 and June 30, 2024, Respectively)   $ 30,439     $ 34,948  
    Securities Available-for-Sale (amortized cost March 31, 2025: $34,751; June 30, 2024: $30,348, Respectively)     32,149       27,037  
    Securities Held-to-Maturity (fair value March 31, 2025: $52,428; June 30, 2024: $54,450, Respectively)     63,066       67,302  
    Other Securities     636       1,614  
    Loans Held-for-Sale     999       1,733  
    Loans Receivable, Net of Allowance for Credit Losses (March 31, 2025:  $4,632; June 30, 2024: $4,574, Respectively)     458,301       470,852  
    Accrued Interest Receivable     1,802       1,775  
    Premises and Equipment, Net     17,567       18,303  
    Bank Owned Life Insurance     6,897       6,810  
    Goodwill     2,990       2,990  
    Core Deposit Intangible     983       1,199  
    Deferred Tax Asset     1,367       1,181  
    Real Estate Owned     900       418  
    Other Assets     1,528       1,350  
                     
    Total Assets   $ 619,624     $ 637,512  
                     
    LIABILITIES AND SHAREHOLDERSEQUITY                
                     
    LIABILITIES                
                     
    Deposits:                
    Non-interest bearing   $ 129,799     $ 130,334  
    Interest-bearing     426,964       443,673  
    Total Deposits     556,763       574,007  
    Advances from Borrowers for Taxes and Insurance     384       521  
    Other Borrowings     4,000       7,000  
    Other Accrued Expenses and Liabilities     3,758       3,181  
                     
    Total Liabilities     564,905       584,709  
                     
    SHAREHOLDERSEQUITY                
                     
    Preferred Stock – $0.01 Par Value; 10,000,000 Shares Authorized: None Issued and Outstanding      –        –  
    Common Stock – $0.01 Par Value; 40,000,000 Shares Authorized: 3,118,764 and 3,142,168 Shares Issued and Outstanding at March 31, 2025 and June 30, 2024, Respectively     32       32  
    Additional Paid-in Capital     42,055       41,739  
    Unearned ESOP Stock     (336 )     (408 )
    Retained Earnings     15,024       14,055  
    Accumulated Other Comprehensive Loss     (2,056 )     (2,615 )
                     
    Total ShareholdersEquity     54,719       52,803  
                     
    TOTAL LIABILITIES AND SHAREHOLDERSEQUITY   $ 619,624     $ 637,512  
    HOME FEDERAL BANCORP, INC. OF LOUISIANA
    CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share data)
    (Unaudited)
        Three Months Ended     Nine months ended  
        March 31,     March 31,  
        2025     2024     2025     2024  
    Interest income                                
    Loans, including fees   $ 6,740     $ 7,281     $ 20,426     $ 21,952  
    Investment securities     83       124       213       573  
    Mortgage-backed securities     493       451       1,406       1,384  
    Other interest-earning assets     109       34       779       135  
    Total interest income     7,425       7,890       22,824       24,044  
    Interest expense                                
    Deposits     2,675       3,194       8,851       8,688  
    Federal Home Loan Bank borrowings           87             180  
    Other bank borrowings     76       205       274       586  
    Total interest expense     2,751       3,486       9,125       9,454  
    Net interest income     4,674       4,404       13,699       14,590  
                                     
    Provision for (recovery of) credit losses     6       11       (172 )     (5 )
    Net interest income after provision for credit losses     4,668       4,393       13,871       14,595  
                                     
    Non-interest income                                
    Gain on sale of loans     80       69       181       184  
    Loss on sale of real estate                 (266 )     (415 )
    Gain(Loss) on sale of securities           26       (6 )     26  
    Income on Bank-Owned Life Insurance     29       28       87       82  
    Service charges on deposit accounts     382       363       1,165       1,151  
    Other income     47       20       165       50  
    Total non-interest income     538       506       1,326       1,078  
                                     
                                     
    Non-interest expense                                
    Compensation and benefits     2,136       2,453       6,667       7,137  
    Occupancy and equipment     610       533       1,711       1,625  
    Data processing     553       139       1,107       513  
    Audit and examination fees     150       83       473       456  
    Franchise and bank shares tax     135       168       304       488  
    Advertising     22       77       123       302  
    Professional fees     145       96       396       443  
    Loan and collection     46       31       104       123  
    Amortization Core Deposit Intangible     70       79       216       258  
    Deposit insurance premium     102       90       267       289  
    Other expenses     282       242       729       794  
    Total non-interest expense     4,251       3,991       12,097       12,428  
    Income before income taxes     955       908       3,100       3,245  
    Provision for income tax expense     207       176       392       290  
                                     
    NET INCOME   $ 748     $ 732     $ 2,708     $ 2,955  
                                     
    EARNINGS PER SHARE                                
    Basic   $ 0.24     $ 0.24     $ 0.88     $ 0.97  
    Diluted   $ 0.24     $ 0.24     $ 0.88     $ 0.95  
        Three Months Ended     Nine months ended  
        March 31,     March 31,  
        2025     2024     2025     2024  
                                     
    Selected Operating Ratios(1):                                
    Average interest rate spread     2.66 %     2.16 %     2.44 %     2.46 %
    Net interest margin     3.33 %     2.89 %     3.14 %     3.14 %
    Return on average assets     0.50 %     0.45 %     0.58 %     0.60 %
    Return on average equity     5.59 %     5.62 %     6.85 %     7.64 %
                                     
    Asset Quality Ratios(2):                                
    Non-performing assets as a percent of total assets     0.49 %     0.37 %     0.49 %     0.37 %
    Allowance for credit losses as a percent of non-performing loans     215.44 %     203.11 %     215.44 %     203.11 %
    Allowance for credit losses as a percent of total loans receivable     1.00 %     0.97 %     1.00 %     0.97 %
                                     
    Per Share Data:                                
    Shares outstanding at period end     3,118,764       3,145,236       3,118,764       3,145,236  
    Weighted average shares outstanding:                                
    Basic     3,061,928       3,047,335       3,062,511       3,039,907  
    Diluted     3,087,624       3,091,011       3,081,233       3,095,817  
    Book value per share at period end   $ 17.55     $ 16.71     $ 17.55     $ 16.71  
     ______________                                
    (1) Ratios for the three and nine month periods are annualized.                                
    (2) Asset quality ratios are end of period ratios.                                

    The MIL Network

  • MIL-OSI: Employers Holdings, Inc. Reports First Quarter 2025 Results and Declares Increase in Regular Quarterly Dividend to $0.32 per Share and New Share Repurchase Authorization of $125 Million

    Source: GlobeNewswire (MIL-OSI)

    RENO, Nev., May 01, 2025 (GLOBE NEWSWIRE) — Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries, today reported financial results for its first quarter ended March 31, 2025.

    Financial Highlights:
    (All comparisons vs. the first quarter of 2024).

    • Net income per diluted share decreased by 53%, from $1.11 to $0.52;
    • Adjusted net income per diluted share increased 30%, from $0.67 to $0.87;
    • Gross premiums written increased 1%, from $210.9 million to $212.1 million;
    • Net premiums earned decreased 1%, from $184.9 million to $183.0 million;
    • Underwriting expense ratio improved from 25.0% to 23.4%;
    • Net investment income increased 20%, from $26.8 million to $32.1 million;
    • Record number of ending policies in-force of 133,121, a 4% increase; and
    • Returned $27.5 million to stockholders through a combination of share repurchases and regular quarterly dividends.

    Management Commentary

    Chief Executive Officer Katherine Antonello commented: “First quarter net premiums earned were flat compared to 2024, driven by higher renewal premiums offset by lower new business and a reduction in audit premiums. Rate increases and underwriting actions taken to maintain our underwriting profitability targets in certain states impacted new business premiums, while final audit premiums decreased in-line with the moderation of employment and wage growth. We have identified several refinements in our underwriting and pricing approach that we believe will allow us to maintain our underwriting discipline but also return to moderate new business growth. Our appetite expansion effort continues to identify areas of profitable growth, and our success has given us the confidence to accelerate this effort. We again ended the period with another record number of policies in-force, which were up 4% year-over-year.

    We recorded our current accident year loss and LAE ratio on voluntary business at 66.0%, slightly above the 64.0% we maintained throughout 2024. As was the case in the first quarter of 2024, a full actuarial study was not performed, and the amount of indicated net prior year loss reserve development was consistent with our expectations. We will evaluate our prior year reserves in more detail at mid-year when we routinely perform a full reserve study.

    Our commission expense ratio was 12.6%, versus 13.6% a year ago. We continue to see improvement in our underwriting expense ratio, which decreased to 23.4%, from 25.0% a year ago.

    Our net investment income was $32.1 million, up 20% from a year ago. The increase was primarily due to returns from our investments in limited partnerships.

    Lastly, we raised our regular quarterly dividend to $0.32 per share, an increase of 7%, and announced a new $125.0 million share repurchase plan after exhausting the former plan prior to its scheduled expiration. These actions reflect our strong balance sheet, abundant underwriting capital, and the confidence in the Company’s future operations.”

    Summary of First Quarter 2025 Results

    (All comparisons vs. the first quarter of 2024, unless otherwise noted).

    Gross premiums written were $212.1 million, an increase of 1%. The increase was due to strong retention in renewal business writings partially offset by a decline in new business writings and lower final audit premiums. Net premiums earned were $183.0 million, a decrease of 1%.

    Losses and loss adjustment expenses were $120.7 million, an increase of 4%. The increase was primarily due to a higher current accident year loss and loss adjustment expense estimate. The Company’s loss and loss adjustment expense ratio was 66.0% (66.8% excluding LPT), versus 63.0% (64.1% excluding LPT).

    Commission expense was $23.0 million, a decrease of 8%. The Company’s commission expense ratio was 12.6%, versus 13.6% a year ago. The decrease was primarily due to a release of commissions payable associated with non-performing policies sent to collections.

    Underwriting expenses were $42.9 million, a decrease of 7%. The Company’s underwriting expense ratio was 23.4%, versus 25.0% a year ago. The decrease primarily related to lower bad debt expense and compensation-related expenses.

    Net investment income was $32.1 million, an increase of 20%. The increase was primarily due to returns from our investments in private equity limited partnerships, along with higher book yields on our fixed maturity securities.

    Net realized and unrealized (losses) gains on investments reflected on the income statement were $(12.8) million, versus $11.4 million.

    Income tax expense was $3.1 million (19.5% effective rate), versus $7.0 million (19.8% effective rate). The effective rates during each of the periods included income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, deferred gain amortization and related adjustments, and tax credits utilized.

    The Company’s book value per share including the deferred gain of $48.25 increased 12.3% year-over-year and 2.5% during the first quarter of 2025, computed after considering dividends declared. During the first quarter this measure was favorably impacted by $21.1 million of after-tax unrealized gains arising from fixed maturity securities (which are reflected on the balance sheet) partially offset by $9.2 million of net after tax unrealized losses arising from equity securities and other investments (which are reflected on the income statement). The Company’s adjusted book value per share of $50.75 increased by 8.5% year-over-year and 1.0% during the first quarter of 2025, computed after considering dividends declared.

    Second Quarter 2025 Dividend Declaration

    On April 30, 2025, the Company’s Board of Directors declared an increase in our regular quarterly dividend to $0.32. The dividend is payable on May 28, 2025 to stockholders of record as of May 14, 2025.

    Stock Repurchases and New Stock Repurchase Authorization

    During the first quarter of 2025, the Company repurchased 406,101 shares of its common stock at an average price of $49.69 per share. During the period from April 1, 2025 through April 29, 2025, the Company repurchased a further 170,000 shares of its common stock at an average price of $48.35 per share.

    On April 30, 2025, the Company’s Board of Directors authorized a new stock repurchase program to allow for repurchases of up to $125.0 million of our common stock from May 6, 2025 through December 31, 2026. The new program replaces a similar program that was scheduled to expire on July 31, 2025, but its repurchase authorization has been exhausted.

    Earnings Conference Call and Webcast

    The Company will host a conference call on Friday, May 2, 2025 at 11:00 a.m. Eastern Daylight Time / 8:00 a.m. Pacific Daylight Time.

    To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number.

    The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

    Reconciliation of Non-GAAP Financial Measures to GAAP

    The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.

    Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes – Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

    Forward-Looking Statements

    In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company’s future performance, economic or market conditions, including current or future levels of inflation, potential implications of increased tariffs, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company’s Quarterly Reports on Form 10-Q and the Company’s Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

    Filings with the SEC

    The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company’s website, www.employers.com. The Company’s filings with the SEC can also be accessed through the SEC’s EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).

    About Employers Holdings, Inc.

    Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

    EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

    EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

    Contact Information

    Michael Pedraja (775) 327-2706 or mpedraja@employers.com

         
    EMPLOYERS HOLDINGS, INC.
    Table of Contents
         
    Page    
         
    1   Consolidated Financial Highlights
         
    2   Summary Consolidated Balance Sheets
         
    3   Summary Consolidated Income Statements
         
    4   Return on Equity
         
    5   Combined Ratios
         
    6   Roll-forward of Unpaid Losses and LAE
         
    7   Consolidated Investment Portfolio
         
    8   Book Value Per Share
         
    9   Earnings Per Share
         
    10   Non-GAAP Financial Measures
         
       
    EMPLOYERS HOLDINGS, INC.
    Consolidated Financial Highlights (unaudited)
    $ in millions, except per share amounts
       
      Three Months Ended
      March 31,
        2025       2024     % change
    Selected financial highlights:          
    Gross premiums written $ 212.1     $ 210.9     1 %
    Net premiums written   210.3       209.1     1  
    Net premiums earned   183.0       184.9     (1 )
    Net investment income   32.1       26.8     20  
    Net income excluding LPT(1)   11.2       26.2     (57 )
    Adjusted net income(1)   21.3       17.2     24  
    Net Income before income taxes   15.9       35.3     (55 )
    Net Income   12.8       28.3     (55 )
    Comprehensive income   34.6       17.4     99  
    Total assets   3,556.9       3,562.8      
    Stockholders’ equity   1,075.7       1,018.9     6  
    Stockholders’ equity including the Deferred Gain(2)   1,168.1       1,116.1     5  
    Adjusted stockholders’ equity(2)   1,228.8       1,213.0     1  
    Annualized adjusted return on stockholders’ equity(3)   6.9 %     5.7 %   21 %
    Amounts per share:          
    Cash dividends declared per share $ 0.30     $ 0.28     7 %
    Earnings per diluted share(4)   0.52       1.11     (53 )
    Earnings per diluted share excluding LPT(4)   0.46       1.03     (55 )
    Adjusted earnings per diluted share(4)   0.87       0.67     30  
    Book value per share(2)   44.43       40.20     11  
    Book value per share including the Deferred Gain(2)   48.25       44.04     10  
    Adjusted book value per share(2)   50.75       47.86     6  
    Combined ratio excluding LPT:(5):          
    Loss and loss adjustment expense ratio:          
    Current Year   66.1 %     64.2 %    
    Prior Year   0.7       (0.1 )    
    Loss and loss adjustment expense ratio   66.8 %     64.1 %    
    Commission expense ratio   12.6 %     13.6 %    
    Underwriting expense ratio   23.4 %     25.0 %    
    Combined ratio excluding LPT   102.8 %     102.7 %    
    (1) See Page 3 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (2) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (3) See Page 4 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (4) See Page 9 for description and calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (5) See Pages 5 for details and Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
             
    EMPLOYERS HOLDINGS, INC.
    Summary Consolidated Balance Sheets (unaudited)
    $ in millions, except per share amounts
             
        March 31,
    2025
      December 31,
    2024
    ASSETS        
    Investments, cash and cash equivalents   $ 2,537.6     $ 2,532.4  
    Accrued investment income     14.6       15.7  
    Premiums receivable, net     377.0       361.3  
    Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE     412.9       417.8  
    Deferred policy acquisition costs     63.8       59.6  
    Deferred income tax asset, net     35.0       38.3  
    Other assets     116.0       116.2  
    Total assets   $ 3,556.9     $ 3,541.3  
             
    LIABILITIES        
    Unpaid losses and LAE   $ 1,792.6     $ 1,808.2  
    Unearned premiums     428.0       402.2  
    Commissions and premium taxes payable     60.3       65.8  
    Deferred Gain     92.4       94.0  
    Other liabilities     107.9       102.4  
    Total liabilities   $ 2,481.2     $ 2,472.6  
             
    STOCKHOLDERS’ EQUITY        
    Common stock and additional paid-in capital   $ 424.7     $ 424.8  
    Retained earnings     1,478.5       1,472.9  
    Accumulated other comprehensive loss     (60.7 )     (82.5 )
    Treasury stock, at cost     (766.8 )     (746.5 )
    Total stockholders’ equity     1,075.7       1,068.7  
    Total liabilities and stockholders’ equity   $ 3,556.9     $ 3,541.3  
             
    Stockholders’ equity including the Deferred Gain (1)   $ 1,168.1     $ 1,162.7  
    Adjusted stockholders’ equity (1)     1,228.8       1,245.2  
    Book value per share (1)   $ 44.43     $ 43.52  
    Book value per share including the Deferred Gain(1)     48.25       47.35  
    Adjusted book value per share (1)     50.75       50.71  
    (1) See Page 8 for calculations and Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
       
    EMPLOYERS HOLDINGS, INC.
    Summary Consolidated Income Statements (unaudited)
    $ in millions
       
      Three Months Ended
      March 31,
        2025       2024  
    Revenues:  
    Net premiums earned $ 183.0     $ 184.9  
    Net investment income   32.1       26.8  
    Net realized and unrealized (losses) gains on investments(1)   (12.8 )     11.4  
    Other income   0.3        
    Total revenues   202.6       223.1  
    Expenses:      
    Losses and LAE incurred   (120.7 )     (116.5 )
    Commission expense   (23.0 )     (25.1 )
    Underwriting expenses   (42.9 )     (46.2 )
    Interest and financing expenses   (0.1 )      
    Total expenses   (186.7 )     (187.8 )
    Net income before income taxes   15.9       35.3  
    Income tax expense   (3.1 )     (7.0 )
    Net Income   12.8       28.3  
    Unrealized AFS investment gains (losses) arising during the period, net of tax(2)   21.1       (11.6 )
    Reclassification adjustment for net realized AFS investment losses in net income, net of tax(2)   0.7       0.7  
    Total comprehensive income $ 34.6     $ 17.4  
    Net Income $ 12.8     $ 28.3  
    Amortization of the Deferred Gain – losses   (1.6 )     (1.5 )
    Amortization of the Deferred Gain – contingent commission         (0.4 )
    LPT contingent commission adjustments         (0.2 )
    Net income excluding LPT Agreement (3)   11.2       26.2  
    Net realized and unrealized losses (gains) on investments   12.8       (11.4 )
    Income tax (benefit) expense related to items excluded from Net income   (2.7 )     2.4  
    Adjusted net income $ 21.3     $ 17.2  
    (1) Includes unrealized (losses) gains on equity securities and other investments of $(11.7) million and $12.7 million for the three months ended March 31, 2025 and 2024, respectively.
    (2) AFS = Available for Sale securities.
    (3) See Page 10 regarding our use of Non-GAAP Financial Measures.
       
         
    EMPLOYERS HOLDINGS, INC.
    Return on Equity (unaudited)
    $ in millions
         
        Three Months Ended
        March 31,
          2025       2024  
             
    Net income A $ 12.8     $ 28.3  
    Impact of the LPT Agreement     (1.6 )     (2.1 )
    Net realized and unrealized losses (gains) on investments     12.8       (11.4 )
    Income tax (benefit) expense related to items excluded from Net income     (2.7 )     2.4  
    Adjusted net income (1) B   21.3       17.2  
             
    Stockholders’ equity – end of period   $ 1,075.7     $ 1,018.9  
    Stockholders’ equity – beginning of period     1,068.7       1,013.9  
    Average stockholders’ equity C   1,072.2       1,016.4  
             
    Stockholders’ equity – end of period   $ 1,075.7     $ 1,018.9  
    Deferred Gain – end of period     92.4       97.2  
    Accumulated other comprehensive loss – end of period     76.8       122.6  
    Income taxes related to accumulated other comprehensive loss – end of period     (16.1 )     (25.7 )
    Adjusted stockholders’ equity – end of period     1,228.8       1,213.0  
    Adjusted stockholders’ equity – beginning of period     1,245.2       1,199.1  
    Average adjusted stockholders’ equity (1) D   1,237.0       1,206.1  
             
    Return on stockholders’ equity A / C   1.2 %     2.8 %
    Annualized return on stockholders’ equity     4.8       11.1  
             
    Adjusted return on stockholders’ equity (1) B / D   1.7 %     1.4 %
    Annualized adjusted return on stockholders’ equity (1)     6.9       5.7  
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
         
    EMPLOYERS HOLDINGS, INC.
    Combined Ratios (unaudited)
    $ in millions, except per share amounts
         
        Three Months Ended
        March 31,
          2025       2024  
             
    Net premiums earned A $ 183.0     $ 184.9  
    Losses and LAE incurred B   120.7       116.5  
    Amortization of deferred reinsurance gain – losses     1.6       1.5  
    Amortization of deferred reinsurance gain – contingent commission           0.4  
    LPT contingent commission adjustments           0.2  
    Losses and LAE excluding LPT(1) C   122.3       118.6  
    Prior year loss reserve development     1.3       (0.1 )
    Losses and LAE excluding LPT – current accident year D $ 121.0     $ 118.7  
    Commission expense E $ 23.0     $ 25.1  
    Underwriting expenses F $ 42.9     $ 46.2  
    GAAP combined ratio:        
    Loss and LAE ratio B/A   66.0 %     63.0 %
    Commission expense ratio E/A   12.6       13.6  
    Underwriting expense ratio F/A   23.4       25.0  
    GAAP combined ratio     102.0 %     101.6 %
    Combined ratio excluding LPT:(1)        
    Loss and LAE ratio excluding LPT C/A   66.8 %     64.1 %
    Commission expense ratio E/A   12.6       13.6  
    Underwriting expense ratio F/A   23.4       25.0  
    Combined ratio excluding LPT     102.8 %     102.7 %
    Combined ratio excluding LPT: current accident year:(1)        
    Loss and LAE ratio excluding LPT D/A   66.1 %     64.2 %
    Commission expense ratio E/A   12.6       13.6  
    Underwriting expense ratio F/A   23.4       25.0  
    Combined ratio excluding LPT: current accident year     102.1 %     102.8 %
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
       
       
    EMPLOYERS HOLDINGS, INC.
    Roll-forward of Unpaid Losses and LAE (unaudited)
    $ in millions
       
      Three Months Ended
      March 31,
        2025     2024  
       
    Unpaid losses and LAE at beginning of period $ 1,808.2   $ 1,884.5  
    Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE   412.4     428.4  
    Net unpaid losses and LAE at beginning of period   1,395.8     1,456.1  
    Losses and LAE incurred:      
    Current year losses   121.0     118.7  
    Prior year losses   1.3     (0.1 )
    Total losses incurred   122.3     118.6  
    Losses and LAE paid:      
    Current year losses   8.0     6.8  
    Prior year losses   124.6     117.4  
    Total paid losses   132.6     124.2  
    Net unpaid losses and LAE at end of period   1,385.5     1,450.5  
    Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE   407.1     424.0  
    Unpaid losses and LAE at end of period $ 1,792.6   $ 1,874.5  
                 

    Total losses and LAE shown in the above table exclude amortization of the Deferred Gain and LPT contingent commission adjustments, which totaled $1.6 million and $2.1 million for the three months ended March 31, 2025 and 2024, respectively.

     
    EMPLOYERS HOLDINGS, INC.
    Consolidated Investment Portfolio (unaudited)
    $ in millions
             
        March 31, 2025   December 31, 2024
    Investment Positions:   Cost or Amortized
    Cost (1)
      Net Unrealized Gain (Loss)   Fair Value   %   Fair Value   %
    Fixed maturity securities   $ 2,165.7   $ (76.9 )   $ 2,087.4   82 %   $ 2,097.4   83 %
    Equity securities     151.4     102.7       254.2   10       259.8   10  
    Short-term investments                       0.1    
    Other invested assets     85.0     10.4       95.4   4       106.6   4  
    Cash and cash equivalents     100.4           100.4   4       68.3   3  
    Restricted cash and cash equivalents     0.2           0.2         0.2    
    Total investments and cash   $ 2,502.7   $ 36.2     $ 2,537.6   100 %   $ 2,532.4   100 %
                             
    Breakout of Fixed Maturity Securities:                        
    U.S. Treasuries and agencies   $ 68.0   $ (0.9 )   $ 67.1   3 %   $ 59.3   3 %
    States and municipalities     161.3     (1.6 )     159.7   8       159.3   8  
    Corporate securities     821.8     (33.6 )     788.0   38       803.0   38  
    Mortgage-backed securities     727.1     (36.8 )     689.9   33       684.9   33  
    Asset-backed securities     212.3           212.3   10       214.0   10  
    Collateralized loan obligations     26.4     (0.2 )     26.2   1       35.3   2  
    Bank loans and other     148.8     (3.8 )     144.2   7       141.6   7  
    Total fixed maturity securities   $ 2,165.7   $ (76.9 )   $ 2,087.4   100 %   $ 2,097.4   100 %
    Weighted average book yield     4.5%       4.5%
    Average credit quality (S&P)     A+       A+
    Duration     4.3       4.5
    (1) Amortized cost excludes allowance for current expected credit losses of $1.4 million.
       
                     
    EMPLOYERS HOLDINGS, INC.
    Book Value Per Share (unaudited)
    $ in millions, except per share amounts
                     
        March 31,
    2025
      December 31,
    2024
      March 31,
    2024
      December 31, 2023
    Numerators:                
    Stockholders’ equity A $ 1,075.7     $ 1,068.7     $ 1,018.9     $ 1,013.9  
    Plus: Deferred Gain     92.4       94.0       97.2       99.2  
    Stockholders’ equity including the Deferred Gain (1) B   1,168.1       1,162.7       1,116.1       1,113.1  
    Accumulated other comprehensive loss     76.8       104.5       122.6       108.9  
    Income taxes related to accumulated other comprehensive loss     (16.1 )     (22.0 )     (25.7 )     (22.9 )
    Adjusted stockholders’ equity (1) C $ 1,228.8     $ 1,245.2     $ 1,213.0     $ 1,199.1  
                     
    Denominator (shares outstanding) D   24,210,602       24,556,706       25,343,504       25,369,753  
                     
    Book value per share (1) A / D $ 44.43     $ 43.52     $ 40.20     $ 39.96  
    Book value per share including the Deferred Gain(1) B / D   48.25       47.35       44.04       43.88  
    Adjusted book value per share (1) C / D   50.75       50.71       47.86       47.26  
                     
    Year-over-year change in: (2)                
    Book value per share     13.5 %     11.9 %     14.5 %     18.1 %
    Book value per share including the Deferred Gain     12.3       10.6       13.1       16.3  
    Adjusted book value per share     8.5       9.8       10.8       10.5  
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
    (2) Reflects the twelve month change in book value per share after taking into account dividends declared of $1.20, $1.18, $1.12 and $1.10 for the twelve month periods ended March 31, 2025, December 31, 2024, March 31, 2024 and December 31, 2023, respectively.
       
         
    EMPLOYERS HOLDINGS, INC.
    Earnings Per Share (unaudited)
    $ in millions, except per share amounts
         
        Three Months Ended
        March 31,
          2025       2024  
    Numerators:        
    Net income A $ 12.8     $ 28.3  
    Impact of the LPT Agreement     (1.6 )     (2.1 )
    Net income excluding LPT (1) B   11.2       26.2  
    Net realized and unrealized losses (gains) on investments     12.8       (11.4 )
    Income tax (benefit) expense related to items excluded from Net income     (2.7 )     2.4  
    Adjusted net income (1) C $ 21.3     $ 17.2  
             
    Denominators:        
    Average common shares outstanding (basic) D   24,398,610       25,345,942  
    Average common shares outstanding (diluted) E   24,606,572       25,535,971  
             
    Earnings per share:        
    Basic A / D $ 0.52     $ 1.12  
    Diluted A / E   0.52       1.11  
             
    Earnings per share excluding LPT: (1)        
    Basic B / D $ 0.46     $ 1.03  
    Diluted B / E   0.46       1.03  
             
    Adjusted earnings per share: (1)        
    Basic C / D $ 0.87     $ 0.68  
    Diluted C / E   0.87       0.67  
    (1) See Page 10 for information regarding our use of Non-GAAP Financial Measures.
       

    Non-GAAP Financial Measures

    Within this earnings release we present the following measures, each of which are “non-GAAP financial measures.” A reconciliation of these measures to the Company’s most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

    The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company’s ongoing underwriting performance.

    Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final determination. Amortization is reflected in losses and LAE incurred.

    Adjusted net income (see Page 3 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company’s operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.

    Stockholders’ equity including the Deferred Gain (see Page 8 for calculations) is stockholders’ equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company’s total underwriting capital.

    Adjusted stockholders’ equity (see Page 8 for calculations) is stockholders’ equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company’s adjusted return on stockholders’ equity metric.

    Return on stockholders’ equity and Adjusted return on stockholders’ equity (see Page 4 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.

    Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 8 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

    Net income excluding LPT (see Page 3 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

    The MIL Network

  • MIL-OSI: SB Financial Group Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    DEFIANCE, Ohio, May 01, 2025 (GLOBE NEWSWIRE) — SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the first quarter ended March 31, 2025.

    First Quarter 2025 Highlights Over the First Quarter Prior Year Include:

    • Adjusted net income of $2.7 million, after accounting for $0.7 million of nonrecurring merger expenses, was up 23.2 percent from the prior year adjusted net income of $2.2 million, with adjusted Diluted Earnings Per Share (“DEPS”) of $0.42. Unadjusted net income and EPS were slightly below the prior year quarter.
    • Successful completion of the Marblehead Bank acquisition, adding $56 million of low-cost deposits and $19 million in loans.
    • Interest income of $17.4 million increased by 13.5 percent from $15.3 million reported in the prior year quarter.
    • Loan growth of $96.7 million, or 9.8 percent from the prior-year quarter, with growth from the linked quarter of $41.6 million. This was our fourth consecutive quarter of sequential expanding loan growth, year over year. Growth adjusted for the Marblehead acquisition would be $78.2 and $23.1 million, from the linked quarter.
    • Deposit growth of $159.7 million, or 14.4 percent from the prior-year quarter, with growth from the linked quarter of $119.4 million. Growth adjusted for the Marblehead acquisition would be $103.7 and $63.4 million, from the linked quarter.
    • Tangible book value (“TBV”) per share ended the quarter at $15.79 up $0.86 per share or 5.8 percent from the prior year quarter. Absent the per share dilution from the acquisition of $0.87, TBV would have been up $1.73 per share or 11.6 percent.
    Earnings Highlights Three Months Ended
    ($ in thousands, except per share & ratios) Mar. 2025 Mar. 2024 % Change
    Operating revenue $ 15,386   $ 13,131   17.2 %
    Interest income   17,372     15,300   13.5 %
    Interest expense   6,093     6,120   -0.4 %
    Net interest income   11,279     9,180   22.9 %
    Provision for credit losses   387       N/M
    Noninterest income   4,107     3,951   3.9 %
    Noninterest expense   12,410     10,282   20.7 %
    Net income   2,158     2,368   -8.9 %
    Merger adjusted Earnings per diluted share   0.42     0.33   27.3 %
    Earnings per diluted share   0.33     0.35   -5.7 %
    Merger adjusted Return on Avg. Assets   0.76 %   0.67%   13.4 %
    Return on average assets   0.60 %   0.71%   -15.5 %
    Merger adjusted Return on Avg. Equity   8.35 %   7.26%   15.0 %
    Return on average equity   6.63 %   7.72%   -14.1 %

    “Our first quarter results highlight the value of our growth strategy, even in the midst of temporary economic uncertainty,” said Mark A. Klein, Chairman, President, and CEO. “Merger adjusted net income for the quarter was $2.7 million, a 22.3 percent increase from the prior-year quarter, with the GAAP EPS of $0.33 slightly down from the prior year. The successful closing of the acquisition in the first quarter significantly strengthened our liquidity position through their low-cost deposit base and further expanded our market presence in Northern Ohio. This marks an important milestone in executing our long-term growth strategy to grow organically and through M & A.”

    Interest income for the quarter grew by 13.5 percent to $17.4 million compared to the previous year, driven by continued strong loan growth. Total loans increased by $96.7 million, compared to the prior year, and by $41.5 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $78.2 and $23.1 million, respectively. Deposits rose by $158.9 million, or 14.3 percent, to $1.27 billion, a result of the acquisition and a testament to the trust our clients place in us. Adjusted for the acquisition, deposit growth would have been $102.9 and $62.6 million, respectively.

    RESULTS OF OPERATIONS

    Consolidated Revenue

    In the first quarter of 2025, total operating revenue increased to $15.4 million, a 17.2 percent rise from $13.1 million in the prior year and a slight 0.1 percent decrease from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $11.3 million, a strong 22.9 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.7 million to $15.4 million. Deposit costs increased by 5.1 percent to $5.4 million, but were largely offset by decreases in interest expense on other funding sources, resulting in a 0.4 percent decrease in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 41 basis points year-over-year to 3.40 percent, reflecting the continued strength of our interest-earning assets and disciplined management of our funding costs. Noninterest income for the quarter increased by 3.9 percent year-over-year to $4.1 million due to improvements in gains on sale and title insurance, partially offset by decreases in mortgage loan servicing fees. Looking ahead, we remain focused on maintaining a balanced strategy that drives sustainable revenue growth while effectively managing costs, ensuring consistent value creation for our shareholders.

    Mortgage Loan Business

    Net mortgage banking revenue for the quarter reached $1.5 million, down $84,000 from the prior-year quarter. Loan servicing fees added $894,000 to revenue, reflecting an increase of $39,000 from the prior year quarter. The OMSR net valuation adjustment for the first quarter of 2025 was a positive $11,000 compared to a positive $181,000 in the first quarter of 2024.

                 
    Mortgage Banking            
    ($ in thousands) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Prior Year
    Growth
    Mortgage originations $ 39,775   $ 72,534   $ 70,715   $ 75,110   $ 42,912   $ (3,137 )
    Mortgage sales   39,279     62,301     61,271     55,835     36,623     2,656  
    Mortgage servicing portfolio   1,432,184     1,427,318     1,406,273     1,389,805     1,371,713     60,471  
    Mortgage servicing rights   14,965     14,868     14,357     14,548     14,191     774  
                 
                 
    Revenue            
    Loan servicing fees   894     886     874     862     855     39  
    OMSR amortization   (294 )   (358 )   (370 )   (335 )   (273 )   (21 )
    Net administrative fees   600     528     504     527     582     18  
    OMSR valuation adjustment   11     288     (465 )   38     181     (170 )
    Net loan servicing fees   611     816     39     565     763     (152 )
    Gain on sale of mortgages   849     1,196     1,311     1,277     781     68  
    Mortgage banking revenue, net $ 1,460   $ 2,012   $ 1,350   $ 1,842   $ 1,544   $ (84 )
                 

    Noninterest Income and Noninterest Expense

    “Noninterest income for the first quarter of 2025 totaled $4.1 million, up $156,000 or 3.9 percent from the prior-year quarter, primarily due to increased gains on sales of mortgage loans and OSMR, and increased title service and other revenue. Compared to the prior-year quarter, gains on sales of mortgage loans and OSMR grew modestly by $68,000 year over year, and title insurance revenue added $131,000, reflecting the consistent benefit of our revenue diversification strategy,” Mr. Klein noted.

                   
    Noninterest Income/Noninterest Expense          
    ($ in thousands, except ratios)   Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Prior Year
    Growth
    Noninterest Income (NII)   $ 4,107   $ 4,557   $ 4,123   $ 4,386   $ 3,951   $ 156  
    NII / Total Revenue     26.7%     29.5%     28.8%     31.5%     30.1%     -3.4%  
    NII / Average Assets     1.1%     1.3%     1.2%     1.3%     1.2%     -0.1%  
    Total Revenue Growth     17.2%     2.2%     4.5%     -0.6%     -6.1%     23.3%  
                                           
    Noninterest Expense (NIE)   $ 12,410   $ 11,003   $ 11,003   $ 10,671   $ 10,282   $ 2,128  
    Efficiency Ratio     80.0%     71.1%     76.8%     75.9%     78.2%     1.8%  
    NIE / Average Assets     3.4%     3.2%     3.2%     3.2%     3.1%     0.3%  
    Net Noninterest Expense/Avg. Assets   -2.3%     -1.9%     -2.0%     -1.9%     -1.9%     -0.4%  
    Total Expense Growth     20.7%     6.1%     5.0%     3.2%     -4.6%     25.3%  

    Noninterest expense for the first quarter of 2025 was impacted by the one-time merger related expenses of $726,000. Adjusting for these expenses and the $300,000 in Marblehead operating expenses for the quarter, total operating costs were up just 3.5 percent from the linked quarter and 10.7 percent.

    “Our efficiency ratio in the first quarter of 2025 was 76.0 percent when we factor out the merger related costs, which was an improvement compared to the prior year.” stated Mr. Klein.

    Balance Sheet

    As of March 31, 2025, SB Financial reported total assets of $1.50 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $96.7 million or 9.8 percent increase year over year. Loan growth also included $18.7 million in loans added with the completion of the acquisition. Cash increased by $78.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio.

    Total deposits increased to $1.27 billion, growing $158.9 million or 14.3 percent year over year, including $56 million in low-cost deposits from the acquisition and $102.9 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement. Shareholders’ equity ended the quarter at $131.5 million, representing a $7.8 million increase from the prior year. This growth reflects management’s commitment to enhancing shareholder value and the Company’s disciplined approach to capital management.

    During the first quarter, SB Financial repurchased 26,446 shares, less than previous quarters as the average price was above our target range. This reflects the Company’s dedication to returning value to shareholders through dividends and share repurchases while retaining adequate capital to support our long-term growth.

    “As we progress through the remainder of 2025, our balance sheet strength and strategic management of resources highlight our long-term strategic growth ambitions, both organically and through successful acquisitions,” said Mr. Klein, Chairman, President, and CEO. “Even in the current challenging rate environment, we achieved our fourth consecutive quarter of loan growth, with balances increasing by $96.7 million from the previous year, which included $78.2 million of organic loan growth. This performance underscores the strength of our deep client relationships and our continued competitiveness in the market. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, which we will leverage to take advantage of emerging opportunities while maintaining our focus on operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economic landscape stabilizes.”

                 
    Loan Balances            
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Annual
    Growth
    Commercial $ 125,878   $ 124,764   $ 123,821   $ 123,287   $ 120,016   $ 5,862  
    % of Total   11.6%     11.9%     12.0%     12.3%     12.1%     4.9%  
    Commercial RE   509,518     479,573     459,449     434,967     429,362     80,156  
    % of Total   46.8%     45.8%     44.6%     43.3%     43.3%     18.7%  
    Agriculture   61,443     64,680     64,887     64,329     62,365     (922 )
    % of Total   5.6%     6.2%     6.3%     6.4%     6.3%     -1.5%  
    Residential RE   319,307     308,378     314,010     316,233     314,668     4,639  
    % of Total   29.3%     29.5%     30.5%     31.5%     31.7%     1.5%  
    Consumer & Other   72,128     69,340     67,788     66,574     65,141     6,987  
    % of Total   6.6%     6.6%     6.6%     6.6%     6.6%     10.7%  
    Total Loans $ 1,088,274   $ 1,046,735   $ 1,029,955   $ 1,005,390   $ 991,552   $ 96,722  
    Total Growth Percentage                 9.8%  
                 
                 
    Deposit Balances            
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Annual
    Growth
    Non-Int DDA $ 240,446   $ 232,155   $ 222,425   $ 208,244   $ 219,395   $ 21,051  
    % of Total   18.9%     20.1%     19.2%     18.7%     19.7%     9.6%  
    Interest DDA   208,583     201,085     202,097     190,857     169,171     39,412  
    % of Total   16.4%     17.4%     17.4%     17.1%     15.2%     23.3%  
    Savings   285,902     237,987     241,761     231,855     244,157     41,745  
    % of Total   22.5%     20.6%     20.8%     20.8%     21.9%     17.1%  
    Money Market   257,013     222,161     228,182     225,650     221,362     35,651  
    % of Total   20.2%     19.3%     19.7%     20.2%     19.9%     16.1%  
    Time Deposits   279,276     259,217     265,068     258,582     258,257     21,019  
    % of Total   22.0%     22.5%     22.9%     23.2%     23.2%     8.1%  
    Total Deposits $ 1,271,220   $ 1,152,605   $ 1,159,533   $ 1,115,188   $ 1,112,342   $ 158,878  
    Total Growth Percentage                 14.3%  
                 

    Asset Quality

    As of March 31, 2025, SB Financial continued to demonstrate strong asset quality metrics. Nonperforming assets totaled $6.1 million, representing 0.41 percent of total assets, an increase of $3.2 million compared to $2.9 million or 0.22 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we continue to expect to resolve favorably in 2025.

    The allowance for credit losses remained strong at 1.41 percent of total loans, providing 254.4 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of our conservative approach to risk management amid the current environment. The net loan charge-offs to average loans ratio remained modest at 3 basis points, improving from 7 basis points in the prior quarter and consistent with the year-ago period, reflecting disciplined credit practices and effective collateral management.

    “Our asset quality metrics fully illustrate the diligence of our approach and commitment to disciplined risk management,” stated Mark Klein, Chairman, President, and CEO. “While we observed a slight uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio. We remain focused on balancing our conservative approach in maintaining the integrity of our credit processes with the need to effectively manage our balance sheet for long-term growth.”

                 
    Nonperforming Assets                
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024   Annual
    Change
    Commercial & Agriculture $ 3,418   $ 2,927   $ 2,899   $ 2,781   $ 897   $ 2,521  
    % of Total Com./Ag. loans   1.82%     1.55%     1.54%     1.48%     0.49%     281.0%  
    Commercial RE   798     807     813     475     49     749  
    % of Total CRE loans   0.16%     0.17%     0.18%     0.11%     0.01%     1528.6%  
    Residential RE   1,608     1,539     1,536     1,247     1,295     313  
    % of Total Res. RE loans   0.50%     0.50%     0.49%     0.39%     0.41%     24.2%  
    Consumer & Other   227     243     270     231     193     34  
    % of Total Con./Oth. loans   0.31%     0.35%     0.40%     0.35%     0.30%     17.6%  
    Total Nonaccruing Loans   6,051     5,516     5,518     4,734     2,434     3,617  
    % of Total loans   0.56%     0.53%     0.54%     0.47%     0.25%     148.6%  
    Foreclosed Assets and Other Assets   73             510     510     (437 )
    Total Change (%)             -85.7%  
    Total Nonperforming Assets $ 6,124   $ 5,516   $ 5,518   $ 5,244   $ 2,944   $ 3,180  
    % of Total assets   0.41%     0.40%     0.40%     0.39%     0.22%     108.02%  


    Webcast and Conference Call

    The Company will hold the first quarter 2025 earnings conference call and webcast on May 2, 2025, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

    About SB Financial Group

    Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

    Forward-Looking Statements

    Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

    Non-GAAP Financial Measures

    This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    Investor Contact Information:

    Mark A. Klein
    Chairman, President and
    Chief Executive Officer
    Mark.Klein@YourStateBank.com

    Anthony V. Cosentino
    Executive Vice President and
    Chief Financial Officer
    Tony.Cosentino@YourStateBank.com

        SB FINANCIAL GROUP, INC.
        CONSOLIDATED BALANCE SHEETS – (Unaudited)
                               
              March   December   September   June   March
          ($ in thousands)     2025       2024       2024       2024       2024  
                               
    ASSETS                    
      Cash and due from banks   $ 105,145     $ 25,928     $ 49,348     $ 21,983     $ 26,602  
      Interest bearing time deposits     1,565       1,565       1,706       2,417       2,417  
      Available-for-sale securities     199,721       201,587       211,511       207,856       213,239  
      Loans held for sale     4,286       6,770       8,927       7,864       4,730  
      Loans, net of unearned income     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
      Allowance for credit losses     (15,391 )     (15,096 )     (15,278 )     (15,612 )     (15,643 )
      Premises and equipment, net     21,875       20,456       20,715       20,860       20,985  
      Federal Reserve and FHLB Stock, at cost     5,340       5,223       5,223       5,204       6,512  
      Foreclosed assets and other assets     73                   510       510  
      Interest receivable     5,072       4,908       4,842       4,818       3,706  
      Goodwill     27,158       23,239       23,239       23,239       23,239  
      Cash value of life insurance     30,871       30,685       30,488       30,294       30,103  
      Mortgage servicing rights     14,965       14,868       14,357       14,548       14,191  
      Other assets     12,048       12,649       8,916       12,815       13,869  
                               
          Total assets   $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  
                               
                               
                               
    LIABILITIES AND SHAREHOLDERS’ EQUITY                    
      Deposits                    
        Non interest bearing demand   $ 240,446     $ 232,155     $ 222,425     $ 208,244     $ 219,395  
        Interest bearing demand     208,583       201,085       202,097       190,857       169,171  
        Savings     285,902       237,987       241,761       231,855       244,157  
        Money market     257,013       222,161       228,182       225,650       221,362  
        Time deposits     279,276       259,217       265,068       258,582       258,257  
                               
          Total deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
                               
      Short-term borrowings     11,058       10,585       15,240       15,178       12,916  
      Federal Home Loan Bank advances     35,000       35,000       35,000       35,000       35,000  
      Trust preferred securities     10,310       10,310       10,310       10,310       10,310  
      Subordinated debt net of issuance costs     19,702       19,690       19,678       19,666       19,654  
      Interest payable     2,634       2,351       3,374       2,944       2,772  
      Other liabilities     19,552       21,468       17,973       18,421       19,295  
                               
          Total liabilities     1,369,476       1,252,009       1,261,108       1,216,707       1,212,289  
                               
      Shareholders’ Equity                    
        Common stock     61,319       61,319       61,319       61,319       61,319  
        Additional paid-in capital     14,955       15,194       15,090       15,195       14,978  
        Retained earnings     117,397       116,186       113,515       112,104       109,938  
        Accumulated other comprehensive loss     (26,872 )     (30,234 )     (24,870 )     (31,801 )     (31,547 )
        Treasury stock     (35,273 )     (34,957 )     (32,213 )     (31,338 )     (30,965 )
                               
          Total shareholders’ equity     131,526       127,508       132,841       125,479       123,723  
                               
          Total liabilities and shareholders’ equity $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  
    SB FINANCIAL GROUP, INC.
    CONSOLIDATED STATEMENTS OF INCOME – (Unaudited)
                             
    ($ in thousands, except per share & ratios)   At and for the Three Months Ended
                             
            March   December   September   June   March
    Interest income      2025     2024       2024     2024       2024  
      Loans                    
      Taxable   $ 15,244   $ 14,920     $ 14,513   $ 13,883     $ 13,547  
      Tax exempt     115     122       127     124       123  
      Securities                    
      Taxable     1,169     1,178       1,192     1,226       1,274  
      Tax exempt     38     35       37     37       37  
      Other interest income     806     592       679     384       319  
                             
        Total interest income     17,372     16,847       16,548     15,654       15,300  
                             
    Interest expense                      
      Deposits     5,352     5,169       5,568     5,208       5,090  
      Repurchase agreements & other     24     41       43     36       34  
      Federal Home Loan Bank advances   362     369       369     370       613  
      Trust preferred securities     160     177       187     187       188  
      Subordinated debt     195     194       195     194       195  
                             
        Total interest expense     6,093     5,950       6,362     5,995       6,120  
                             
                             
    Net interest income     11,279     10,897       10,186     9,659       9,180  
                             
      Provision for credit losses     387     (76 )     200            
                             
    Net interest income after provision                    
      for loan losses       10,892     10,973       9,986     9,659       9,180  
                             
    Noninterest income                    
      Wealth management fees     864     916       882     848       865  
      Customer service fees     879     842       870     875       880  
      Gain on sale of mtg. loans & OMSR   849     1,196       1,311     1,277       781  
      Mortgage loan servicing fees, net     611     816       39     565       763  
      Gain on sale of non-mortgage loans   15     10       20     105       10  
      Title insurance revenue     397     478       485     406       266  
      Net gain on sales of securities                          
      Gain (loss) on sale of assets               200            
      Other     492     299       316     310       386  
                             
        Total noninterest income     4,107     4,557       4,123     4,386       3,951  
                             
    Noninterest expense                    
      Salaries and employee benefits     6,237     6,185       6,057     6,009       5,352  
      Net occupancy expense     893     702       706     707       769  
      Equipment expense     1,072     1,127       1,069     1,060       1,077  
      Data processing fees     1,439     821       758     727       769  
      Professional fees     1,034     895       659     615       758  
      Marketing expense     165     207       241     176       197  
      Telephone and communication expense     139     136       128     156       105  
      Postage and delivery expense     137     116       145     89       97  
      State, local and other taxes     224     224       208     230       245  
      Employee expense     174     168       228     159       178  
      Other expenses     896     422       804     743       735  
                             
        Total noninterest expense     12,410     11,003       11,003     10,671       10,282  
                             
                             
    Income before income tax expense     2,589     4,527       3,106     3,374       2,849  
                             
      Income tax expense     431     892       752     261       481  
                             
    Net income       $ 2,158   $ 3,635     $ 2,354   $ 3,113     $ 2,368  
                             
    Common share data:                    
      Basic earnings per common share   $ 0.33   $ 0.55     $ 0.35   $ 0.47     $ 0.35  
      Diluted earnings per common share $ 0.33   $ 0.55     $ 0.35   $ 0.47     $ 0.35  
                             
    Average shares outstanding (in thousands):                    
      Basic:     6,481     6,575       6,660     6,692       6,715  
      Diluted:     6,502     6,599       6,675     6,700       6,723  
    SB FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS – (Unaudited)
                         
    ($ in thousands, except per share & ratios) At and for the Three Months Ended
                         
        March   December   September   June   March
    SUMMARY OF OPERATIONS     2025       2024       2024       2024       2024  
                         
    Net interest income   $ 11,279     $ 10,897     $ 10,186     $ 9,659     $ 9,180  
    Tax-equivalent adjustment     41       42       44       43       43  
    Tax-equivalent net interest income     11,320       10,939       10,230       9,702       9,223  
    Provision for credit loss     387       (76 )     200              
    Noninterest income     4,107       4,557       4,123       4,386       3,951  
    Total operating revenue     15,386       15,454       14,309       14,045       13,131  
    Noninterest expense     12,410       11,003       11,003       10,671       10,282  
    Pre-tax pre-provision income     2,976       4,451       3,306       3,374       2,849  
    Net income     2,158       3,635       2,354       3,113       2,368  
                         
    PER SHARE INFORMATION:                    
    Basic earnings per share (EPS)     0.33       0.55       0.35       0.47       0.35  
    Diluted earnings per share     0.33       0.55       0.35       0.47       0.35  
    Common dividends     0.145       0.145       0.140       0.140       0.135  
    Book value per common share     20.29       19.64       20.05       18.80       18.46  
    Tangible book value per common share (TBV)     15.79       16.00       16.49       15.26       14.93  
    Market price per common share     20.82       20.91       20.56       14.00       13.78  
    Market price to TBV     131.8 %     130.7 %     124.7 %     91.8 %     92.3 %
    Market price to trailing 12 month EPS     12.2       12.1       11.8       7.9       7.9  
                         
    PERFORMANCE RATIOS:                    
    Return on average assets (ROAA)     0.60 %     1.04 %     0.68 %     0.93 %     0.71 %
    Pre-tax pre-provision ROAA     0.83 %     1.28 %     0.96 %     1.01 %     0.86 %
    Return on average equity (ROE)     6.63 %     11.13 %     7.32 %     10.16 %     7.72 %
    Return on average tangible equity     8.32 %     13.58 %     8.97 %     12.59 %     9.55 %
    Efficiency ratio     80.00 %     71.09 %     76.78 %     75.86 %     78.17 %
    Earning asset yield     5.23 %     5.18 %     5.16 %     5.02 %     4.97 %
    Cost of interest bearing liabilities     2.32 %     2.36 %     2.53 %     2.47 %     2.55 %
    Net interest margin     3.40 %     3.35 %     3.17 %     3.10 %     2.99 %
    Tax equivalent effect     0.01 %     0.01 %     0.02 %     0.01 %     0.01 %
    Net interest margin, tax equivalent     3.41 %     3.36 %     3.19 %     3.11 %     3.00 %
    Non interest income/Average assets     1.14 %     1.31 %     1.20 %     1.31 %     1.19 %
    Non interest expense/Average assets     3.45 %     3.15 %     3.20 %     3.18 %     3.08 %
    Net noninterest expense/Average assets     -2.31 %     -1.85 %     -2.00 %     -1.87 %     -1.90 %
                         
    ASSET QUALITY RATIOS:                    
    Gross charge-offs     87       195       29             66  
    Recoveries     2       13       2       16       9  
    Net charge-offs     85       182       27       (16 )     57  
    Nonperforming loans/Total loans     0.56 %     0.53 %     0.54 %     0.47 %     0.25 %
    Nonperforming assets/Loans & OREO     0.56 %     0.53 %     0.54 %     0.52 %     0.30 %
    Nonperforming assets/Total assets     0.41 %     0.40 %     0.40 %     0.39 %     0.22 %
    Allowance for credit loss/Nonperforming loans     254.35 %     273.68 %     276.83 %     329.78 %     642.69 %
    Allowance for credit loss/Total loans     1.41 %     1.44 %     1.48 %     1.55 %     1.58 %
    Net loan charge-offs/Average loans (ann.)     0.03 %     0.07 %     0.01 %     (0.01 %)     0.02 %
                         
    CAPITAL & LIQUIDITY RATIOS:                    
    Loans/ Deposits     85.61 %     90.81 %     88.82 %     90.15 %     89.14 %
    Equity/ Assets     8.76 %     9.24 %     9.53 %     9.35 %     9.26 %
    Tangible equity/Tangible assets     6.96 %     7.66 %     7.97 %     7.72 %     7.63 %
    Common equity tier 1 ratio (Bank)     12.35 %     13.43 %     13.19 %     13.98 %     13.84 %
                         
    END OF PERIOD BALANCES                    
    Total assets     1,501,002       1,379,517       1,393,949       1,342,186       1,336,012  
    Total loans     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
    Deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
    Shareholders equity     131,526       127,508       132,841       125,479       123,723  
    Goodwill and intangibles     29,125       23,597       23,613       23,630       23,646  
    Tangible equity     102,401       103,911       109,228       101,849       100,077  
    Mortgage servicing portfolio     1,432,184       1,427,318       1,406,273       1,389,805       1,371,713  
    Wealth/Brokerage assets under care     519,158       547,697       557,724       525,713       525,517  
    Total assets under care     3,452,344       3,354,532       3,357,946       3,257,704       3,233,242  
    Full-time equivalent employees     262       252       248       249       245  
    Period end common shares outstanding     6,483       6,494       6,624       6,676       6,702  
    Market capitalization (all)     134,982       135,780       136,189       93,458       92,359  
                         
    AVERAGE BALANCES                    
    Total assets     1,459,896       1,395,473       1,376,849       1,342,847       1,333,236  
    Total earning assets     1,346,354       1,301,872       1,283,407       1,246,099       1,230,736  
    Total loans     1,076,328       1,040,580       1,018,262       1,005,018       993,310  
    Deposits     1,227,449       1,163,531       1,145,964       1,120,367       1,091,803  
    Shareholders equity     131,944       130,647       128,608       122,510       123,058  
    Goodwill and intangibles     26,714       23,605       23,621       23,638       23,654  
    Tangible equity     105,230       107,042       104,987       98,872       99,404  
    Average basic shares outstanding     6,481       6,575       6,660       6,692       6,715  
    Average diluted shares outstanding     6,502       6,599       6,675       6,700       6,723  
    SB FINANCIAL GROUP, INC.
      Rate Volume Analysis – (Unaudited)
      For the Three Months Ended Mar. 31, 2025 and 2024
               
      ($ in thousands) Three Months Ended Mar. 31, 2025     Three Months Ended Mar. 31, 2024
        Average   Average     Average   Average
    Assets Balance Interest Rate     Balance Interest Rate
                       
      Taxable securities $ 196,880   $ 1,276 2.63 %     $ 210,252   $ 1,413 2.70 %
      Overnight Cash   66,460     699 4.27 %       20,729     180 3.48 %
      Nontaxable securities   6,686     38 2.30 %       6,445     37 2.30 %
      Loans, net   1,076,328     15,359 5.79 %       993,310     13,670 5.52 %
                       
      Total earning assets   1,346,354     17,372 5.23 %       1,230,736     15,300 4.99 %
                       
      Cash and due from banks   10,339             4,512      
      Allowance for loan losses   (15,238 )           (15,830 )    
      Premises and equipment   21,082             21,281      
      Other assets   97,359             92,537      
                       
      Total assets $ 1,459,896           $ 1,333,236      
                       
    Liabilities                
      Savings, MMDA and interest bearing demand $ 709,324   $ 2,959 1.69 %     $ 605,243   $ 2,525 1.67 %
      Time deposits   276,253     2,393 3.51 %       258,592     2,565 3.98 %
      Repurchase agreements & other   13,106     24 0.74 %       15,993     34 0.85 %
      Advances from Federal Home Loan Bank   35,044     362 4.19 %       51,030     613 4.82 %
      Trust preferred securities   10,310     160 6.29 %       10,310     188 7.31 %
      Subordinated debt   19,694     195 4.02 %       19,646     195 3.98 %
                       
      Total interest bearing liabilities   1,063,731     6,093 2.32 %       960,814     6,120 2.55 %
                       
      Non interest bearing demand   241,872             227,968      
                       
      Total funding   1,305,603     1.89 %       1,188,782     2.06 %
            44.20 %         1  
      Other liabilities   22,349             21,396      
                       
      Total liabilities   1,327,952             1,210,178      
                       
      Equity   131,944             123,058      
                       
      Total liabilities and equity $ 1,459,896           $ 1,333,236      
                       
      Net interest income   $ 11,279         $ 9,180  
                       
      Net interest income as a percent of average interest-earning assets – GAAP measure 3.40 %         2.99 %
                       
      Net interest income as a percent of average interest-earning assets – non GAAP 3.41 %         3.00 %
      – Computed on a fully tax equivalent (FTE) basis             
    Non-GAAP reconciliation Three Months Ended
           
    ($ in thousands, except per share & ratios) Mar. 31, 2025   Mar. 31, 2024
           
    Total Operating Revenue $ 15,386     $ 13,131  
    Adjustment to (deduct)/add OMSR recapture/impairment *   (11 )     (181 )
           
    Adjusted Total Operating Revenue   15,375       12,950  
           
           
    Total Operating Expense $ 12,410     $ 10,282  
    Adjustment for merger expenses   (726 )      
           
    Adjusted Total Operating Expense   11,684       10,282  
           
           
    Income before Income Taxes   2,589       2,849  
    Adjustment for OMSR*/Merger Expenses   715       (181 )
           
    Adjusted Income before Income Taxes   3,304       2,668  
           
           
    Provision for Income Taxes   431       481  
    Adjustment for OMSR/Merger Expenses **   150       (38 )
           
    Adjusted Provision for Income Taxes   581       443  
           
           
    Net Income   2,158       2,368  
    Adjustment for OMSR*/Merger Expenses   565       (143 )
           
    Adjusted Net Income   2,723       2,225  
           
           
    Diluted Earnings per Share   0.33       0.35  
    Adjustment for OMSR*/Merger Expenses   0.09       (0.02 )
           
    Adjusted Diluted Earnings per Share $ 0.42     $ 0.33  
           
           
    Return on Average Assets   0.60 %     0.71 %
    Adjustment for OMSR*/Merger Expenses   0.15 %     -0.04 %
           
    Adjusted Return on Average Assets   0.75 %     0.67 %
           
    *valuation adjustment to the Company’s mortgage servicing rights    
           
    **tax effect is calculated using a 21% statutory federal corporate income tax rate

    The MIL Network

  • MIL-OSI: Bimini Capital Management Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    VERO BEACH, Fla., May 01, 2025 (GLOBE NEWSWIRE) — Bimini Capital Management, Inc. (OTCQB: BMNM), (“Bimini Capital,” “Bimini,” or the “Company”), today announced results of operations for the three-month period ended March 31, 2025.

    First Quarter 2025 Highlights

    • Net income of $0.6 million, or $0.06 per common share
    • Book value per share of $0.74
    • Company to discuss results on Friday, May 2, 2025, at 10:00 AM ET

    Management Commentary 

    Commenting on the first quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “While economic data and events generally are never uniformly stable or consistent, the first quarter of 2025 was relatively uneventful.  Interest rates were generally range bound, and volatility was low for most of the quarter.  These are ideal conditions for a levered investment strategy in Agency RMBS.  Accordingly, the Company and the Agency RMBS market generated attractive returns for the period.  Orchid Island Capital’s stock also traded well during the quarter – at least until the last week of the quarter. Orchid was able to take advantage of these conditions and the performance of its common stock price and raise additional capital, enhancing the Company’s advisory service revenues going forward. 

    “Although we did not add to the RMBS portfolio at our Royal Palm Capital subsidiary this quarter we did several times during 2024, and with funding costs down as a result of Fed rates cuts late in 2024, our net interest income, inclusive of dividends from our holdings of Orchid, increased substantially.

    “While the first quarter market conditions were very supportive of our two operating segments, conditions so far in the second quarter have been challenging.  At the moment, there remains considerable uncertainty about how the tariffs introduced by the new administration will ultimately impact the economy and markets. To the extent the economy slows, leading to potential additional rate cuts by the Fed, and/or longer-term interest rates rise as a result of the inflationary impacts of the tariffs, both the Company’s investment portfolio as well as Orchid’s could benefit from enhanced net interest margins resulting from the steeper interest rate curve.”

    Details of First Quarter 2025 Results of Operations

    Orchid reported net income for the first quarter 2025 of $17.1 million and generated a 2.60% return on its book value for the quarter – not annualized. Orchid also raised $205.4 million during the quarter and its shareholders equity increased from $668.5 million at December 31, 2024 to $855.9 million at March 31, 2025. As a result, Bimini’s advisory service revenues of approximately $3.6 million represented a 22% increase over the first quarter of 2024 and a 6% increase over the fourth quarter of 2024. 

    Royal Palm did not add to the RMBS portfolio during the first quarter of 2025 but did so several times during 2024, and interest revenue increased 25% over the first quarter of 2024 and 4% over the fourth quarter of 2024.  With funding costs down as a result of Fed rates cuts late in 2024, net interest income, inclusive of dividends from holdings of Orchid common shares, increased approximately 64% over the first quarter of 2024 and by approximately 35% over the fourth quarter of 2024.  Note these figures represent just the net interest income from the investment portfolio, and do not include interest charges on our trust preferred or other long-term debt.

    Interest charges on the preferred trust and other long-term debt of $0.54 million were down 8% from the fourth quarter of 2024 and 12% from the first quarter of 2024. Expenses of $2.92 million increased 4% from the fourth quarter of 2024 and decreased 3% from the first quarter of 2024.  Bimini recorded an income tax provision of $0.2 million for the first quarter of 2025.

    Management of Orchid Island Capital, Inc.

    Orchid is managed and advised by Bimini. As Manager, Bimini is responsible for administering Orchid’s business activities and day-to-day operations. Pursuant to the terms of a management agreement, our subsidiary, Bimini Advisors, provides Orchid with its management team, including its officers, along with appropriate support personnel. Bimini also maintains a common stock investment in Orchid which is accounted for under the fair value option, with changes in fair value recorded in the statement of operations for the current period. For the three months ended March 31, 2025, Bimini’s statement of operations included a fair value adjustment of $(0.1) million and dividends of $0.2 million from its investment in Orchid common stock. Also, during the three months ended March 31, 2025, Bimini recorded $3.6 million in advisory services revenue for managing Orchid’s portfolio, consisting of $2.7 million of management fees, $0.6 million in overhead reimbursement, and $0.2 million in repurchase, clearing and administrative fees.

    Book Value Per Share

    The Company’s book value per share on March 31, 2025 was $0.74. The Company computes book value per share by dividing total stockholders’ equity by the total number of shares outstanding of the Company’s Class A Common Stock. At March 31, 2025, the Company’s stockholders’ equity was $7.4 million, with 10,005,457 Class A Common shares outstanding.

    Capital Allocation and Return on Invested Capital

    The Company allocates capital between two MBS sub-portfolios, the pass-through MBS portfolio and the structured MBS portfolio, consisting of interest-only and inverse interest-only securities. The table below details the changes to the respective sub-portfolios during the quarter.

    Portfolio Activity for the Quarter  
              Structured Security Portfolio          
                  Inverse                  
      Pass     Interest-     Interest-                  
      Through     Only     Only                  
      Portfolio     Securities     Securities     Sub-total     Total  
    Market Value – December 31, 2024 $ 120,055,716     $ 2,285,605     $ 6,849     $ 2,292,454     $ 122,348,170  
    Securities purchased                            
    Return of investment   n/a       (77,876 )     (346 )     (78,222 )     (78,222 )
    Pay-downs   (2,793,832 )     n/a       n/a       n/a       (2,793,832 )
    Discount accreted due to pay-downs   19,415       n/a       n/a       n/a       19,415  
    Mark to market gains   1,423,056       45,169       1,368       46,537       1,469,593  
    Market Value – March 31, 2025 $ 118,704,355     $ 2,252,898     $ 7,871     $ 2,260,769     $ 120,965,124  

    The tables below present the allocation of capital between the respective portfolios at March 31, 2025 and December 31, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended March 31, 2025. Capital allocation is defined as the sum of the market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash associated with repurchase agreements. Capital allocated to non-portfolio assets is not included in the calculation.

    Capital Allocation  
              Structured Security Portfolio          
                  Inverse                  
      Pass     Interest-     Interest-                  
      Through     Only     Only                  
      Portfolio     Securities     Securities     Sub-total     Total  
    March 31, 2025                                      
    Market value $ 118,704,355     $ 2,252,898     $ 7,871     $ 2,260,769     $ 120,965,124  
    Cash equivalents and restricted cash   5,500,438                         5,500,438  
    Repurchase agreement obligations   (115,510,999 )                       (115,510,999 )
    Total $ 8,693,794     $ 2,252,898     $ 7,871     $ 2,260,769     $ 10,954,563  
    % of Total   79.4 %     20.5 %     0.1 %     20.6 %     100.0 %
    December 31, 2024                                      
    Market value $ 120,055,716     $ 2,285,605     $ 6,849     $ 2,292,454     $ 122,348,170  
    Cash equivalents and restricted cash   7,422,746                         7,422,746  
    Repurchase agreement obligations   (117,180,999 )                       (117,180,999 )
    Total $ 10,297,463     $ 2,285,605     $ 6,849     $ 2,292,454     $ 12,589,917  
    % of Total   81.8 %     18.2 %     0.1 %     18.2 %     100.0 %

    The returns on invested capital in the PT MBS and structured MBS portfolios were approximately 4.6% and 3.7%, respectively, for the three months ended March 31, 2025. The combined portfolio generated a return on invested capital of approximately 4.4%.

    Returns for the Quarter Ended March 31, 2025  
              Structured Security Portfolio          
                  Inverse                  
      Pass     Interest-     Interest-                  
      Through     Only     Only                  
      Portfolio     Securities     Securities     Sub-total     Total  
    Interest income (net of repo cost) $ 397,204     $ 38,427     $ 43     $ 38,470     $ 435,674  
    Realized and unrealized gains   1,442,471       45,169       1,368       46,537       1,489,008  
    Hedge losses   (1,368,795 )     n/a       n/a       n/a       (1,368,795 )
    Total Return $ 470,880     $ 83,596     $ 1,411     $ 85,007     $ 555,887  
    Beginning capital allocation $ 10,297,463     $ 2,285,605     $ 6,849     $ 2,292,454     $ 12,589,917  
    Return on invested capital for the quarter(1)   4.6 %     3.7 %     20.6 %     3.7 %     4.4 %
    (1 ) Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage.


    Prepayments

    For the first quarter of 2025, the Company received approximately $2.9 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (“CPR”) of approximately 7.3%. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

      PT Structured  
      MBS Sub- MBS Sub- Total
    Three Months Ended Portfolio Portfolio Portfolio
    March 31, 2025 7.5 6.2 7.3
    December 31, 2024 10.9 12.5 11.1
    September 30, 2024 6.3 6.7 6.3
    June 30, 2024 10.9 5.5 10.0
    March 31, 2024 18.0 9.2 16.5


    Portfolio

    The following tables summarize the MBS portfolio as of March 31, 2025 and December 31, 2024:

    ($ in thousands)   
                    Weighted  
            Percentage       Average  
            of   Weighted   Maturity  
      Fair   Entire   Average   in Longest
    Asset Category Value   Portfolio   Coupon   Months Maturity
    March 31, 2025                  
    Fixed Rate MBS $ 118,704   98.1 % 5.60 % 338 1-Jan-55
    Structured MBS   2,261   1.9 % 2.86 % 279 15-May-51
    Total MBS Portfolio $ 120,965   100.0 % 5.27 % 337 1-Jan-55
    December 31, 2024                  
    Fixed Rate MBS $ 120,056   98.1 % 5.60 % 341 1-Jan-55
    Structured MBS   2,292   1.9 % 2.85 % 281 15-May-51
    Total MBS Portfolio $ 122,348   100.0 % 5.26 % 340 1-Jan-55
    ($ in thousands)  
      March 31, 2025   December 31, 2024  
          Percentage of       Percentage of  
    Agency Fair Value Entire
    Portfolio
      Fair Value Entire
    Portfolio
     
    Fannie Mae $ 31,705 26.2 % $ 32,692 26.7 %
    Freddie Mac   89,260 73.8 %   89,656 73.3 %
    Total Portfolio $ 120,965 100.0 % $ 122,348 100.0 %
      March 31, 2025 December 31, 2024
    Weighted Average Pass Through Purchase Price $ 102.72 $ 102.72
    Weighted Average Structured Purchase Price $ 4.48 $ 4.48
    Weighted Average Pass Through Current Price $ 100.85 $ 99.63
    Weighted Average Structured Current Price $ 14.02 $ 13.71
    Effective Duration (1)   3.257   3.622
    (1 ) Effective duration is the approximate percentage change in price for a 100 basis point change in rates. An effective duration of 3.257 indicates that an interest rate increase of 1.0% would be expected to cause a 3.257% decrease in the value of the MBS in the Company’s investment portfolio at March 31, 2025. An effective duration of 3.622 indicates that an interest rate increase of 1.0% would be expected to cause a 3.622% decrease in the value of the MBS in the Company’s investment portfolio at December 31, 2024. These figures include the structured securities in the portfolio but not the effect of the Company’s hedges. Effective duration quotes for individual investments are obtained from The Yield Book, Inc.


    Financing and Liquidity

    As of March 31, 2025, the Company had outstanding repurchase obligations of approximately $115.5 million with a net weighted average borrowing rate of 4.47%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $121.4 million. At March 31, 2025, the Company’s liquidity was approximately $4.5 million, consisting of unpledged MBS and cash and cash equivalents.

    We may pledge more of our structured MBS as part of a repurchase agreement funding but retain cash in lieu of acquiring additional assets. In this way, we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood that we will have to sell assets in a distressed market in order to raise cash. Below is a list of outstanding borrowings under repurchase obligations at March 31, 2025.

    ($ in thousands)  
    Repurchase Agreement Obligations
              Weighted   Weighted
      Total     Average   Average
      Outstanding % of   Borrowing   Maturity
    Counterparty Balances Total   Rate   (in Days)
    South Street Securities, LLC $ 25,952 22.5 % 4.46 % 21
    Marex Capital Markets Inc.   24,040 20.8 % 4.45 % 39
    DV Securities, LLC Repo   19,282 16.7 % 4.45 % 21
    Mirae Asset Securities (USA) Inc.   18,870 16.3 % 4.51 % 51
    Clear Street LLC   16,365 14.2 % 4.46 % 49
    Mitsubishi UFJ Securities, Inc.   11,002 9.5 % 4.49 % 49
      $ 115,511 100.0 % 4.47 % 36


    Summarized Consolidated Financial Statements

    The following is a summarized presentation of the unaudited consolidated balance sheets as of March 31, 2025, and December 31, 2024, and the unaudited consolidated statements of operations for the three months ended March 31, 2025 and 2024. Amounts presented are subject to change.

    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED BALANCE SHEETS
    (Unaudited – Amounts Subject to Change)
     
      March 31, 2025   December 31, 2024
    ASSETS          
    Mortgage-backed securities $ 120,965,124   $ 122,348,170
    Cash equivalents and restricted cash   5,500,438     7,422,746
    Orchid Island Capital, Inc. common stock, at fair value   4,279,414     4,427,372
    Accrued interest receivable   587,536     601,640
    Deferred tax assets, net   15,750,116     15,930,953
    Other assets   4,356,674     4,122,776
    Total Assets $ 151,439,302   $ 154,853,657
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Repurchase agreements $ 115,510,999   $ 117,180,999
    Long-term debt   27,362,762     27,368,158
    Other liabilities   1,191,564     3,483,093
    Total Liabilities   144,065,325     148,032,250
    Stockholders’ equity   7,373,977     6,821,407
    Total Liabilities and Stockholders’ Equity $ 151,439,302   $ 154,853,657
    Class A Common Shares outstanding   10,005,457     10,005,457
    Book value per share $ 0.74   $ 0.68
    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited – Amounts Subject to Change)
     
      Three Months Ended March 31,  
      2025     2024  
    Advisory services $ 3,582,289     $ 2,929,261  
    Interest and dividend income   1,947,040       1,598,965  
    Interest expense   (1,844,020 )     (1,815,678 )
    Net revenues   3,685,309       2,712,548  
    Other (expense) income   (27,745 )     926,731  
    Expenses   2,924,157       3,029,395  
    Net income before income tax provision   733,407       609,884  
    Income tax provision   180,837       396,776  
    Net income $ 552,570     $ 213,108  
                   
    Basic and Diluted Net (Loss) Income Per Share of:              
    CLASS A COMMON STOCK $ 0.06     $ 0.02  
    CLASS B COMMON STOCK $ 0.06     $ 0.02  
      Three Months Ended March 31,  
    Key Balance Sheet Metrics 2025     2024  
    Average MBS(1) $ 121,656,646     $ 90,697,087  
    Average repurchase agreements(1)   116,345,999       85,752,999  
    Average stockholders’ equity(1)   7,097,692       8,234,295  
                   
    Key Performance Metrics              
    Average yield on MBS(2)   5.73 %     6.15 %
    Average cost of funds(2)   4.49 %     5.63 %
    Average economic cost of funds(3)   4.13 %     5.54 %
    Average interest rate spread(4)   1.24 %     0.52 %
    Average economic interest rate spread(5)   1.60 %     0.61 %
    (1 ) Average MBS, repurchase agreements and stockholders’ equity balances are calculated using two data points, the beginning and ending balances.
    (2 ) Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/repurchase agreement balances and are annualized for the quarterly periods presented.
    (3 ) Represents interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average repurchase agreements.
    (4 ) Average interest rate spread is calculated by subtracting average cost of funds from average yield on MBS.
    (5 ) Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on MBS.


    About Bimini Capital Management, Inc.

    Bimini Capital Management, Inc. invests primarily in, but is not limited to investing in, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. In addition, Bimini generates a significant portion of its revenue serving as the manager of the MBS portfolio of, and providing certain repurchase agreement trading, clearing and administrative services to, Orchid Island Capital, Inc.

    Forward Looking Statements

    Statements herein relating to matters that are not historical facts are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Bimini Capital Management, Inc.’s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Bimini Capital Management, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements, except as may be required by applicable law.

    Earnings Conference Call Details

    An earnings conference call and live audio webcast will be hosted Friday, May 2, 2025, at 10:00 AM ET. Participants can register and receive dial-in information at https://register-conf.media-server.com/register/BIa731c864bb5447568e7b00d74642ab23. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/cq5fazei or via the investor relations section of the Company’s website at https://ir.biminicapital.com. An audio archive of the webcast will be available on the website for 30 days after the call.

    CONTACT:
    Bimini Capital Management, Inc.
    Robert E. Cauley, 772-231-1400
    Chairman and Chief Executive Officer
    https://ir.biminicapital.com

    The MIL Network

  • MIL-OSI: Asure Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports First Quarter 2025 Total Revenues of $34.9 million

    Recurring Revenues Grew 10% from Prior Year

    AUSTIN, Texas, May 01, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue of $34.9 million, up 10% year over year, excluding ERTC revenue up 13% from the prior year first quarter
    • Recurring revenue of $33.2 million versus $30.3 million during the prior year first quarter
    • Net loss of $2.4 million versus a net loss of $0.3 million during the prior year first quarter
    • EBITDA(1) of $4.1 million versus $4.4 million during the prior year first quarter
    • Adjusted EBITDA(1) of $7.3 million versus $6.8 million during the prior year first quarter
    • Gross profit of $24.6 million versus $22.6 million during the prior year first quarter
    • Non-GAAP gross profit(1) of $26.3 million (Non-GAAP gross margin(1) of 75%) versus $23.8 million (and 75% in prior year first quarter)

    Recent Business Highlights

    • New Payroll Tax Management solution launched which is designed specifically for large Canadian companies and global enterprises with employees in Canada. Our ability to serve enterprise clients with international workforces with this innovative solution creates further opportunities to grow our business and the seamless integration of payroll tax services into major platforms such as Workday, Oracle, and SAP is a key benefit. The Canadian payroll tax solution addresses critical compliance needs for organizations managing cross-border payroll processes, reducing complexity and ensuring accurate, timely filing.
    • In April 2025 we entered into a credit agreement primarily with MidCap Financial Trust, whereby the Company may borrow up to $60 million. At closing, which occurred on April 10, we received $20 million of gross proceeds.

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management Commentary

    “We are excited to be off to a great start to 2025 with healthy results for our first quarter of 2025 with our revenues increasing 10% from the prior year first quarter. Our results were driven by strong performance coming from our Payroll Tax Management and initial contribution from our recently acquired product offerings,” said Asure Chairman and CEO Pat Goepel.

    “Our team is focused on continuing to execute our growth strategy. Our revenues are now more than 95% recurring, our contracted revenue backlog sits at an all-time high, and we believe that the investments we have made in the business will continue to drive greater adoption of our broadened product suite for the remainder of 2025.”

    Second Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the second quarter of 2025 and the full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our second quarter of 2025 and the full year 2025 excludes any contribution from future potential acquisitions.

    Guidance for 2025

    Guidance Range   Q2-2025   FY-2025
    Revenue $ 30.0 M – 32.0 M $ 134.0 M -138.0 M
    Adjusted EBITDA(1) $ 5.0 M -6.0 M   23% -24%
             

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, May 1, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure’s suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company’s approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward- looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements we make regarding our operating performance, future results of operations and financial position, revenue growth, earnings or other projections. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

    The risks and uncertainties referred to above include—but are not limited to—risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.

    Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.

    The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved

     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
           
      March 31, 2025   December 31, 2024
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 14,076     $ 21,425  
    Accounts receivable, net of allowance for credit losses of $6,545 and $6,328 at March 31, 2025 and December 31, 2024, respectively   15,800       18,154  
    Inventory   220       195  
    Prepaid expenses and other current assets   5,970       4,888  
    Total current assets before funds held for clients   36,066       44,662  
    Funds held for clients   257,019       192,615  
    Total current assets   293,085       237,277  
    Property and equipment, net   20,999       19,669  
    Goodwill   94,724       94,724  
    Intangible assets, net   73,003       69,114  
    Operating lease assets, net   4,403       4,041  
    Other assets, net   12,727       11,813  
    Total assets $ 498,941     $ 436,638  
    LIABILITIES AND STOCKHOLDERSEQUITY      
    Current liabilities:      
    Current portion of notes payable $ 7,948     $ 7,008  
    Accounts payable   2,475       1,364  
    Accrued compensation and benefits   2,911       4,485  
    Operating lease liabilities, current   1,432       1,438  
    Other accrued liabilities   6,071       6,600  
    Deferred revenue   4,662       8,363  
    Total current liabilities before client fund obligations   25,499       29,258  
    Client fund obligations   258,586       194,378  
    Total current liabilities   284,085       223,636  
    Long-term liabilities:      
    Deferred revenue   3,321       3,430  
    Deferred tax liability   2,903       2,612  
    Notes payable, net of current portion   6,172       5,709  
    Operating lease liabilities, noncurrent   3,892       3,578  
    Other liabilities   905       358  
    Total long-term liabilities   17,193       15,687  
    Total liabilities   301,278       239,323  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding          
    Common stock, $0.01 par value; 44,000 shares authorized; 27,122 and 26,671 shares issued, 27,122 and 26,671 shares outstanding at December 31, 2024 and December 31, 2023, respectively   271       267  
    Treasury stock at cost, zero(1)at March 31, 2025 and December 31, 2024          
    Additional paid-in capital   507,149       504,849  
    Accumulated deficit   (309,624 )     (307,226 )
    Accumulated other comprehensive loss   (133 )     (575 )
    Total stockholders’ equity   197,663       197,315  
    Total liabilities and stockholders’ equity $ 498,941     $ 436,638  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
     
      Three Months Ended
    March 31,
      2025   2024
           
    Revenue:      
    Recurring $ 33,187     $ 30,273  
    Professional services, hardware and other   1,667       1,379  
    Total revenue   34,854       31,652  
    Cost of sales   10,246       9,045  
    Gross profit   24,608       22,607  
    Operating expenses:      
    Sales and marketing   8,386       7,767  
    General and administrative   11,900       10,063  
    Research and development   2,029       1,769  
    Amortization of intangible assets   4,308       3,449  
    Total operating expenses   26,623       23,048  
    Loss from operations   (2,015 )     (441 )
    Interest income   171       336  
    Interest expense   (451 )     (180 )
    Other income, net   188       10  
    Loss from operations before income taxes   (2,107 )     (275 )
    Income tax expense   291       33  
    Net loss   (2,398 )     (308 )
    Other comprehensive income (loss):      
    Unrealized gain (loss) on marketable securities   442       (244 )
    Comprehensive loss $ (1,956 )   $ (552 )
           
    Basic and diluted loss per share      
    Basic $ (0.09 )   $ (0.01 )
    Diluted $ (0.09 )   $ (0.01 )
           
    Weighted average basic and diluted shares      
    Basic   26,961       25,334  
    Diluted   26,961       25,334  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
       
      Three Months Ended March 31,
      2025   2024
           
    Cash flows from operating activities:      
    Net loss $ (2,398 )   $ (308 )
    Adjustments to reconcile loss to net cash provided by (used in) operations:      
    Depreciation and amortization   5,972       4,860  
    Amortization of operating lease assets   374       335  
    Amortization of debt financing costs and discount   253       142  
    Non-cash interest expense   197        
    Net accretion of discounts and amortization of premiums on available-for-sale securities   (110 )     (78 )
    Provision for expected losses   93       46  
    Provision for deferred income taxes   291       24  
    Net realized gains on sales of available-for-sale securities   (656 )     (652 )
    Share-based compensation   1,863       1,902  
    Changes in operating assets and liabilities:      
    Accounts receivable   2,261       (919 )
    Inventory   (24 )     (50 )
    Prepaid expenses and other assets   (1,049 )     (473 )
    Operating lease right-of-use assets         30  
    Accounts payable   903       (960 )
    Accrued expenses and other long-term obligations   (1,737 )     (2,665 )
    Operating lease liabilities   (427 )     (141 )
    Deferred revenue   (3,810 )     (5,040 )
    Net cash provided by (used in) operating activities   1,996       (3,947 )
    Cash flows from investing activities:      
    Acquisition of intangible assets   (6,346 )     (710 )
    Purchases of property and equipment   (192 )     (240 )
    Software capitalization costs   (2,769 )     (2,435 )
    Purchases of available-for-sale securities   (6,589 )     (3,516 )
    Proceeds from sales and maturities of available-for-sale securities   3,266       2,406  
    Net cash used in investing activities   (12,630 )     (4,495 )
    Cash flows from financing activities:      
    Payments made on amounts due for the acquisition of intangibles   (723 )     (236 )
    Net proceeds from issuance of common stock   441       176  
    Net change in client fund obligations   64,207       21,122  
    Net cash provided by financing activities   63,925       21,062  
    Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents   53,291       12,620  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period   145,712       177,622  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 199,003     $ 190,242  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
       
      Three Months Ended March 31,
      2025
      2024
           
    Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Condensed Consolidated Balance Sheets
    Cash and cash equivalents $ 14,076     $ 23,166  
    Restricted cash and restricted cash equivalents included in funds held for clients   184,927       167,076  
    Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 199,003     $ 190,242  
           
    Supplemental information:      
    Cash paid for interest $ 125     $  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 750     $ 6,345  
    Notes payable issued for acquisitions $ 1,150     $ 827  
    Shares issued for acquisitions $     $ 4,494  
                   
     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 24,608   $ 20,928   $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018  
    Gross Margin   70.6 %   68.0 %   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %
                     
    Share-based Compensation   44     44     44     43     40     32     28     46  
    Depreciation   1,369     1,190     1,232     1,145     1,110     921     984     1,309  
    Amortization – intangibles   50     50     50     50     50     50     50     50  
    One-time expenses                
    Settlements, penalties & interest   29     25     2     3         (6 )   8      
    Acquisition and transaction costs   167     221     367     264     39              
    Other non-recurring expenses       84                          
    Non-GAAP Gross Profit $ 26,267   $ 22,542   $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423  
    Non-GAAP Gross Margin   75.4 %   73.2 %   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 8,386   $ 6,945   $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515  
                     
    Share-based Compensation   322     251     269     237     243     180     210     149  
    Depreciation   1         1         1     1          
    One-time expenses                
    Settlements, penalties & interest   51     78     (5 )   5     18     6     30     4  
    Acquisition and transaction costs   30     9     68     37     11              
    Other non-recurring expenses       52                         180  
    Non-GAAP Sales and Marketing Expense $ 7,982   $ 6,555   $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 11,900   $ 9,940   $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336  
                     
    Share-based Compensation   1,407     1,081     1,187     1,122     1,535     980     936     1,298  
    Depreciation   244     269     264     256     251     225     200     234  
    One-time expenses                
    Settlements, penalties & interest   492     142     377     304     98     284     101     432  
    Acquisition and transaction costs   491     282     371     245     57     51          
    Other non-recurring expenses   136     220     253         86     53         453  
    Non-GAAP General and Administrative Expense $ 9,130   $ 7,946   $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 2,029   $ 2,103   $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325  
                     
    Share-based Compensation   90     87     90     86     85     69     76     89  
    Depreciation   1       $   $   $   $   $   $  
    One-time expenses                
    Settlements, penalties & interest   9     21         27     31              
    Acquisition and transaction costs   91     153     195     369     147              
    Other non-recurring expenses       29                          
    Non-GAAP Research and Development Expense $ 1,838   $ 1,813   $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236  
                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    GAAP Net Loss to Adjusted EBITDA
    GAAP Net Loss $ (2,398 ) $ (3,204 ) $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 )
                     
    Interest expense, net   280     211     109     (53 )   (156 )   (24 )   782     1,593  
    Income taxes   291     499     170     231     33     (158 )   (123 )   627  
    Depreciation   1,614     1,460     1,497     1,402     1,361     1,148     1,185     1,542  
    Amortization – intangibles   4,358     4,482     4,345     4,096     3,499     3,743     3,384     3,343  
    EBITDA $ 4,145   $ 3,448   $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340  
    EBITDA Margin   11.9 %   11.2 %   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %
                     
    Share-based Compensation   1,863     1,463     1,591     1,488     1,902     1,260     1,251     1,582  
    One Time Expenses                
    Settlements, penalties & interest   581     266     375     339     147     283     140     436  
    Acquisition and transaction costs   779     665     1,001     914     254     51          
    Other non-recurring expenses   136     385     253         86     53         633  
    Other expense (income), net   (188 )   2             (10 )   1     1,800     93  
    Adjusted EBITDA $ 7,316   $ 6,229   $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084  
    Adjusted EBITDA Margin   21.0 %   20.2 %   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com 

    The MIL Network

  • MIL-OSI: Monolithic Power Systems Announces Results for the First Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    KIRKLAND, Wash., May 01, 2025 (GLOBE NEWSWIRE) — Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended March 31, 2025.

    The financial results for the quarter ended March 31, 2025 were as follows:

    • Revenue was $637.6 million for the quarter ended March 31, 2025, a 2.6% increase from $621.7 million for the quarter ended December 31, 2024 and a 39.2% increase from $457.9 million for the quarter ended March 31, 2024.
    • GAAP gross margin was 55.4% for the quarter ended March 31, 2025, compared with 55.1% for the quarter ended March 31, 2024.
    • Non-GAAP gross margin (1) was 55.7% for the quarter ended March 31, 2025, excluding the impact of $1.7 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $0.2 million for deferred compensation plan income, compared with 55.7% for the quarter ended March 31, 2024, excluding the impact of $1.9 million for stock-based compensation and related expenses, $0.4 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP operating expenses were $184.5 million for the quarter ended March 31, 2025, compared with $157.0 million for the quarter ended March 31, 2024.
    • Non-GAAP operating expenses (1) were $133.5 million for the quarter ended March 31, 2025, excluding $52.1 million for stock-based compensation and related expenses and $1.2 million for deferred compensation plan income, compared with $103.4 million for the quarter ended March 31, 2024, excluding $49.9 million for stock-based compensation and related expenses and $3.6 million for deferred compensation plan expense.
    • GAAP operating income was $168.8 million for the quarter ended March 31, 2025, compared with $95.5 million for the quarter ended March 31, 2024.
    • Non-GAAP operating income (1) was $221.5 million for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses, $1.4 million for deferred compensation plan income and $0.3 million for amortization of acquisition-related intangible assets, compared with $151.6 million for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses, $4.1 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP other income, net was $5.1 million for the quarter ended March 31, 2025, compared with $9.5 million for the quarter ended March 31, 2024.
    • Non-GAAP other income, net (1) was $6.5 million for the quarter ended March 31, 2025, excluding $1.4 million for deferred compensation plan expense, compared with $5.5 million for the quarter ended March 31, 2024, excluding $4.0 million for deferred compensation plan income.
    • GAAP income before income taxes was $173.9 million for the quarter ended March 31, 2025, compared with $105.0 million for the quarter ended March 31, 2024.
    • Non-GAAP income before income taxes (1) was $228.0 million for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses and $0.3 million for amortization of acquisition-related intangible assets, compared with $157.1 million for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP net income was $133.8 million and $2.79 per diluted share for the quarter ended March 31, 2025. Comparatively, GAAP net income was $92.5 million and $1.89 per diluted share for the quarter ended March 31, 2024.
    • Non-GAAP net income (1) was $193.8 million and $4.04 per diluted share for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $5.9 million for related tax effects, compared with $137.5 million and $2.81 per diluted share for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $7.2 million for related tax effects.

    The following is a summary of revenue by end market (in thousands):

        Three Months Ended March 31,
    End Market   2025   2024
    Storage and Computing   $ 188,511   $ 106,121
    Automotive     144,904     87,092
    Enterprise Data     132,924     149,727
    Communications     71,671     46,645
    Consumer     56,947     38,074
    Industrial     42,597     30,226
    Total   $ 637,554   $ 457,885

    “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS. 

    Business Outlook

    The following are MPS’s financial targets for the second quarter ending June 30, 2025:

    • Revenue in the range of $640.0 million to $660.0 million.
    • GAAP gross margin between 54.9% and 55.5%. Non-GAAP gross margin (1) between 55.2% and 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
    • GAAP operating expenses between $189.0 million and $195.0 million. Non-GAAP operating expenses (1) between $132.6 million and $136.6 million, which excludes estimated stock-based compensation and related expenses in the range of $56.4 million to $58.4 million.
    • Total stock-based compensation and related expenses of $58.3 million to $60.3 million including approximately $1.9 million that would be charged to cost of goods sold.
    • Interest and other income in the range of $6.2 million to $6.6 million before foreign exchange gains or losses.
    • Non-GAAP tax rate of 15% for 2025.
    • Fully diluted shares outstanding between 47.9 million and 48.3 million.

    (1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to non-GAAP reconciliations in the tables set forth below.

    Earnings Commentary
    Earnings commentary on the results of operations for the quarter ended March 31, 2025 is available under the Investor Relations page on the MPS website.

    Earnings Webinar
    MPS plans to host a question-and-answer webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, May 1, 2025. The live event will be held via a Zoom webcast, which can be accessed at: https://mpsic.zoom.us/j/92570889542. The Zoom webcast can also be accessed live over the phone by dialing (669) 444-9171; the webcast ID is 92570889542. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website.

    Safe Harbor Statement
    This press release contains, and statements that will be made during the accompanying earnings webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Business Outlook” section and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying earnings webinar are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this press release or in the accompanying earnings webinar.

    About Monolithic Power Systems
    Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

    Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. 

    Contact:
    Bernie Blegen
    Executive Vice President and Chief Financial Officer
    Monolithic Power Systems, Inc.
    408-826-0777
    MPSInvestor.Relations@monolithicpower.com

    Monolithic Power Systems, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited, in thousands, except par value)
        March 31,   December 31,
        2025   2024
    ASSETS                
    Current assets:                
    Cash and cash equivalents   $ 637,354     $ 691,816  
    Short-term investments     389,310       171,130  
    Accounts receivable, net     214,866       172,518  
    Inventories     454,793       419,611  
    Other current assets     92,063       109,978  
    Total current assets     1,788,386       1,565,053  
    Property and equipment, net     527,348       494,945  
    Acquisition-related intangible assets, net     9,651       9,938  
    Goodwill     25,944       25,944  
    Deferred tax assets, net     1,318,457       1,326,840  
    Other long-term assets     135,974       194,377  
    Total assets   $ 3,805,760     $ 3,617,097  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    Current liabilities:                
    Accounts payable   $ 127,310     $ 102,526  
    Accrued compensation and related benefits     74,785       63,918  
    Other accrued liabilities     161,306       128,123  
    Total current liabilities     363,401       294,567  
    Income tax liabilities     69,535       65,193  
    Other long-term liabilities     105,814       111,570  
    Total liabilities     538,750       471,330  
    Commitments and contingencies                
    Stockholders’ equity:                
    Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,877 and 47,823, respectively     764,959       706,817  
    Retained earnings     2,545,375       2,487,461  
    Accumulated other comprehensive loss     (43,324 )     (48,511 )
    Total stockholders’ equity     3,267,010       3,145,767  
    Total liabilities and stockholders’ equity   $ 3,805,760     $ 3,617,097  
    Monolithic Power Systems, Inc.
    Condensed Consolidated Statements of Operations

    (Unaudited, in thousands, except per share amounts)
        Three Months Ended March 31,
        2025   2024
    Revenue   $ 637,554     $ 457,885  
    Cost of revenue     284,324       205,444  
    Gross profit     353,230       252,441  
    Operating expenses:                
    Research and development     92,227       75,990  
    Selling, general and administrative     92,244       80,964  
    Total operating expenses     184,471       156,954  
    Operating income     168,759       95,487  
    Other income, net     5,131       9,540  
    Income before income taxes     173,890       105,027  
    Income tax expense     40,099       12,486  
    Net income   $ 133,791     $ 92,541  
                     
    Net income per share:                
    Basic   $ 2.80     $ 1.90  
    Diluted   $ 2.79     $ 1.89  
    Weighted-average shares outstanding:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
    (Unaudited, in thousands, except per share amounts)
        Three Months Ended March 31,
        2025   2024
    Net income   $ 133,791     $ 92,541  
                     
    Adjustments to reconcile net income to non-GAAP net income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Tax effect     5,897       (7,156 )
    Non-GAAP net income   $ 193,813     $ 137,492  
                     
    Non-GAAP net income per share:                
    Basic   $ 4.05     $ 2.83  
    Diluted   $ 4.04     $ 2.81  
                     
    Shares used in the calculation of non-GAAP net income per share:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Gross profit   $ 353,230     $ 252,441  
    Gross margin     55.4 %     55.1 %
                     
    Adjustments to reconcile gross profit to non-GAAP gross profit:                
    Stock-based compensation and related expenses     1,706       1,900  
    Amortization of acquisition-related intangible assets     287       258  
    Deferred compensation plan expense (income)     (163 )     440  
    Non-GAAP gross profit   $ 355,060     $ 255,039  
    Non-GAAP gross margin     55.7 %     55.7 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total operating expenses   $ 184,471     $ 156,954  
                     
    Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:                
    Stock-based compensation and related expenses     (52,105 )     (49,869 )
    Amortization of acquisition-related intangible assets     (33 )     (33 )
    Deferred compensation plan income (expense)     1,193       (3,626 )
    Non-GAAP operating expenses   $ 133,526     $ 103,426  
    RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total operating income   $ 168,759     $ 95,487  
                     
    Adjustments to reconcile total operating income to non-GAAP total operating income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income)     (1,356 )     4,066  
    Non-GAAP operating income   $ 221,534     $ 151,613  
    RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total other income, net   $ 5,131     $ 9,540  
                     
    Adjustments to reconcile other income, net to non-GAAP other income, net:                
    Deferred compensation plan expense (income)     1,350       (4,019 )
    Non-GAAP other income, net   $ 6,481     $ 5,521  
    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total income before income taxes   $ 173,890     $ 105,027  
                     
    Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Non-GAAP income before income taxes   $ 228,015     $ 157,134  
    2025 SECOND QUARTER OUTLOOK
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited)
        Three Months Ending
        June 30, 2025
        Low   High
    Gross margin     54.9 %     55.5 %
    Adjustment to reconcile gross margin to non-GAAP gross margin:                
    Stock-based compensation and other expenses     0.3 %     0.3 %
    Non-GAAP gross margin     55.2 %     55.8 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ending
        June 30, 2025
        Low   High
    Operating expenses   $ 189,000     $ 195,000  
    Adjustments to reconcile operating expenses to non-GAAP operating expenses:                
    Stock-based compensation and other expenses     (56,400 )     (58,400 )
    Non-GAAP operating expenses   $ 132,600     $ 136,600  

    The MIL Network

  • MIL-OSI: GSI Technology, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    SUNNYVALE, Calif., May 01, 2025 (GLOBE NEWSWIRE) — GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its fourth fiscal quarter and fiscal year ended March 31, 2025.

    Summary Financial Results Table (in thousands, except per share amounts)

      Three Months Ended 12 Months Ended
      Mar. 31,
    2025
    Dec. 31,
    2024
    Mar. 31,
    2024
    Mar. 31,
    2025
    Mar. 31,
    2024
    Net revenues $ 5,883     $ 5,414     $ 5,152     $ 20,518     $ 21,765  
    Gross margin (%)   56.1 %     54.0 %     51.6 %     49.4 %     54.3 %
    Operating expenses $ 5,575     $ 6,978     $ 7,172     $ 20,975     $ 32,254  
    Operating loss $ (2,276 )   $ (4,055 )   $ (4,514 )   $ (10,835 )   $ (20,431 )
    Net loss $ (2,230 )   $ (4,029 )   $ (4,321 )   $ (10,639 )   $ (20,087 )
    Net loss per share, diluted $ (0.09 )   $ (0.16 )   $ (0.17 )   $ (0.42 )   $ (0.80 )
                                           

    Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “Our fourth quarter revenue increased 14% year-over-year and 9% sequentially to $5.9 million, reflecting strong demand for our legacy SRAM chips. This performance, combined with disciplined cost management, led to a significantly reduced net loss and lower cash burn for the quarter.”

    Mr. Shu continued, “ I am excited to announce that we secured an initial order for our radiation-hardened SRAM from a North American prime contractor, with follow-on orders expected in fiscal 2026. This sale also carries a significantly higher gross margin than our traditional SRAM chips. In parallel, we are actively pursuing heritage status for this chip, which will improve our market readiness and open important new sales channels. On the APU front, we expect to receive production-ready Gemini-II chips and Leda-2 boards by the end of the first quarter of fiscal 2026. In addition, our Gemini-II SBIR programs with the Space Development Agency (SDA) and US Air Force Research Laboratory (AFRL) remain on schedule. We delivered a server with a Leda-2 board to AFRL and will soon ship a Gemini-II card to SDA. Funds from these programs are offsetting our R&D expenditures for Gemini-II.”

    Mr. Shu concluded, “We are especially excited about a recent enhancement to Plato: adding the integration of a camera interface directly into the chip. This and other enhanced connectivity features create a compact, all-in-one optimized AI and LLM engine for edge devices, particularly well suited for agents requiring object recognition. With the ability to process data locally, without relying on cloud infrastructure, Plato now offers a powerful and flexible accelerator for next-generation edge computing applications. The new capability has increased strategic interest in Plato, and we are currently in preliminary discussions with multiple parties to secure partnerships to fund the next phase of development.”

    Commenting on the outlook for GSI’s first quarter of fiscal 2026, Mr. Shu stated, “Our current expectations for the upcoming first quarter of fiscal 2026 is for net revenues in a range of $5.5 million to $6.3 million, with gross margin of approximately 56% to 58%.”

    Fiscal Year 2025 Summary Financials

    The Company reported net revenues of $20.5 million for the fiscal year ended March 31, 2025, compared to $21.8 million for fiscal 2024. Gross margin was 49.4% for fiscal 2025 compared to 54.3% in fiscal 2024. The decrease in gross margin was primarily due to product mix and the effect of lower revenue on the fixed costs in our cost of revenues.

    Total operating expenses were $21.0 million in fiscal 2025, compared to $32.3 million in fiscal 2024. Research and development expenses were $16.0 million, compared to $21.7 million in the prior fiscal year. Selling, general and administrative expenses were $10.8 million, compared to $10.6 million in fiscal 2024. The decline in research and development expenses was primarily due to cost reductions announced in August 2024. Research and development expense in fiscal 2024 included pre-production mask costs of $2.4 million related to our Gemini-II product.

    Research and development expenses in fiscal 2025 and fiscal 2024 were reduced by $1.2 million and $440,000, respectively, reflecting government funding under the SBIR programs. Operating expenses in fiscal 2025 include a gain on the sale of assets of $5.8 million from the sales of the Company’s headquarters building in Sunnyvale, CA, in a sales and leaseback transaction.

    The operating loss for fiscal 2025 was $(10.8) million compared to an operating loss of $(20.4) million in the prior year. The fiscal 2025 net loss included interest and other income of $326,000 and a tax provision of $130,000, compared to $414,000 in interest and other income and a tax provision of $70,000 in the prior fiscal year.

    Net loss for fiscal 2025 was $(10.6) million, or $(0.42) per diluted share, compared to a net loss of $(20.1) million, or $(0.80) per diluted share, for fiscal 2024.

    Fourth Quarter Fiscal Year 2025 Summary Financials

    The Company reported net revenues of $5.9 million for the fourth quarter of fiscal 2025, compared to $5.2 million for the fourth quarter of fiscal 2024 and $5.4 million for the third quarter of fiscal 2025. Gross margin was 56.1% in the fourth quarter of fiscal 2025 compared to 51.6% in the fourth quarter of fiscal 2024 and 54.0% in the preceding third quarter of fiscal 2025. The sequential increase in gross margin in the fourth quarter of fiscal 2025 was primarily due to higher revenue and product mix.

    In the fourth quarter of fiscal 2025, sales to KYEC were $1.7 million, or 29.5% of net revenues, compared to $544,000, or 10.6% of net revenues, in the same period a year ago and $1.2 million, or 22.7% of net revenues, in the prior quarter. In the fourth quarter of fiscal 2025, sales to Nokia were $444,000, or 7.5% of net revenues, compared to $694,000, or 13.5% of net revenues, in the same period a year ago and $239,000, or 4.4% of net revenues, in the prior quarter. Military/defense sales were 30.7% of fourth quarter shipments compared to 35.5% of shipments in the comparable period a year ago and 30.0% of shipments in the prior quarter. SigmaQuad sales were 39.3% of fourth quarter shipments compared to 42.4% in the fourth quarter of fiscal 2024 and 39.1% in the prior quarter.

    Total operating expenses in the fourth quarter of fiscal 2025 were $5.6 million, compared to $7.2 million in the fourth quarter of fiscal 2024 and $7.0 million in the prior quarter. Research and development expenses were $3.0 million, compared to $4.8 million in the prior-year period and $4.0 million in the prior quarter. Research and development expenses in the fourth quarter of fiscal 2025 were reduced by $870,000, reflecting government funding under the SBIR programs. Selling, general and administrative expenses were $2.6 million in the quarter ended March 31, 2025, compared to $2.4 million in the prior year quarter and $3.0 million in the previous quarter.

    Fourth quarter fiscal 2025 operating loss was $(2.3) million compared to an operating loss of $(4.5) million in the prior-year period and $(4.1) million in the prior quarter. Fourth quarter fiscal 2025 net loss included interest and other income of $52,000 and a tax provision of $6,000, compared to $108,000 in interest and other income and a tax benefit of $(85,000) for the same period a year ago. In the preceding third quarter, net loss included interest and other income of $70,000 and a tax provision of $44,000.

    Net loss in the fourth quarter of fiscal 2025 was $(2.2) million, or $(0.09) per diluted share, compared to a net loss of $(4.3) million, or $(0.17) per diluted share, for the fourth quarter of fiscal 2024 and a net loss of $(4.0) million, or $(0.16) per diluted share, for the third quarter of fiscal 2025.

    Total fourth quarter pre-tax stock-based compensation expense was $512,000 compared to $693,000 in the comparable quarter a year ago and $429,000 in the prior quarter.

    At March 31, 2025, the Company had $13.4 million in cash and cash equivalents, compared to $14.4 million at March 31, 2024. Working capital was $16.4 million as of March 31, 2025 versus $24.7 million at March 31, 2024. Stockholders’ equity as of March 31, 2025 was $28.2 million, compared to $36.0 million as of the fiscal year ended March 31, 2024.

    Conference Call

    Management will conduct a conference call to review the Company’s financial results for the fourth quarter and fiscal year 2025 and its current outlook for the first quarter of fiscal 2026 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) today.

    To participate in the call, please dial 1-877-407-3982 in the U.S. or 1-201-493-6780 for international approximately 10 minutes prior to the above start time and provide Conference ID 13753362. The call will also be streamed live via the internet at www.gsitechnology.com.

    A replay will be available from May 1, 2025, at 7:30 p.m. Eastern Time through May 8, 2025, at 11:59 p.m. Eastern Time by dialing toll-free for the U.S. 1-844-512-2921 or international 1-412-317-6671 and entering pin number 13753362. A webcast of the call will be archived on the Company’s investor relations website under the Events and Presentations tab.

    About GSI Technology

    Founded in 1995, GSI Technology, Inc. is a leading provider of semiconductor memory solutions. GSI’s resources are focused on bringing new products to market that leverage existing core strengths, including radiation-hardened memory products for extreme environments and Gemini-I, the associative processing unit designed to deliver performance advantages for diverse artificial intelligence applications. GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. For more information, please visit www.gsitechnology.com.

    Forward-Looking Statements

    The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; the need to develop and introduce new products to offset the historical decline in the average unit selling price of GSI Technology’s products; the challenges of rapid growth followed by periods of contraction; intensive competition; the continued availability of government funding opportunities; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology and the establishment of new markets and customer and partner relationships for the sale of such products; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as changing interest rates, worldwide inflationary pressures, policy unpredictability, the imposition of tariffs and other trade barriers, military conflicts and declines in the global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.

    Source: GSI Technology, Inc.

    Contacts:

    Investor Relations:

    Hayden IR
    Kim Rogers
    385-831-7337
    kim@haydenir.com

    Media Relations:

    Finn Partners for GSI Technology
    Ricca Silverio
    415-348-2724
    gsi@finnpartners.com

    Company:

    GSI Technology, Inc.
    Douglas M. Schirle
    Chief Financial Officer
    408-331-9802

           
    GSI TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data)
    (Unaudited)
                 
      Three Months Ended   Twelve Months Ended
      March 31, Dec. 31, March 31, March 31, March 31,
        2025     2024     2024       2025     2024  
                 
    Net revenues $ 5,883   $ 5,414   $ 5,152     $ 20,518   $ 21,765  
    Cost of goods sold   2,584     2,491     2,494       10,378     9,942  
                 
    Gross profit   3,299     2,923     2,658       10,140     11,823  
                 
    Operating expenses:            
                 
    Research & development   2,966     4,037     4,818       16,005     21,689  
    Selling, general and administrative   2,609     2,997     2,354       10,763     10,565  
    Gain from sale of assets       (56 )         (5,793 )    
    Total operating expenses   5,575     6,978     7,172       20,975     32,254  
                 
    Operating loss   (2,276 )   (4,055 )   (4,514 )     (10,835 )   (20,431 )
                 
    Interest and other income (expense), net   52     70     108       326     414  
                 
    Loss before income taxes   (2,224 )   (3,985 )   (4,406 )     (10,509 )   (20,017 )
    Provision (benefit) for income taxes   6     44     (85 )     130     70  
    Net loss $ (2,230 ) $ (4,029 ) $ (4,321 )   $ (10,639 ) $ (20,087 )
                 
                 
    Net loss per share, basic $ (0.09 ) ($ 0.16 ) $ (0.17 )   $ (0.42 ) $ (0.80 )
    Net loss per share, diluted $ (0.09 ) ($ 0.16 ) $ (0.17 )   $ (0.42 ) $ (0.80 )
                 
    Weighted-average shares used in            
    computing per share amounts:            
                 
    Basic   25,604     25,546     25,297       25,498     25,144  
    Diluted   25,604     25,546     25,297       25,498     25,144  
                 
                 
    Stock-based compensation included in the Condensed Consolidated Statements of Operations:
                 
      Three Months Ended   Twelve Months Ended
      March 31, Dec. 31, March 31,   March 31, March 31,
        2025     2024     2024       2025     2024  
                 
    Cost of goods sold $ 42   $ 50   $ 53     $ 199   $ 228  
    Research & development   263     121     331       1,010     1,411  
    Selling, general and administrative   207     258     309       1,053     1,199  
      $ 512   $ 429   $ 693     $ 2,262   $ 2,838  
                 
    GSI TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
    (Unaudited)
             
        March 31, 2025 March 31, 2024
    Cash and cash equivalents   $ 13,434   $ 14,429
    Accounts receivable     3,169     3,118
    Inventory     3,891     4,977
    Other current assets     2,961     1,954
    Assets held for sale     0     5,629
    Net property and equipment     808     1,148
    Operating lease right-of-use assets     9,547     1,553
    Other assets     9,507     9,656
    Total assets   $ 43,317   $ 42,464
             
    Current liabilities   $ 7,074   $ 5,365
    Long-term liabilities     8,017     1,129
    Stockholders’ equity     28,226     35,970
    Total liabilities and stockholders’ equity   $ 43,317   $ 42,464

    The MIL Network

  • MIL-OSI: Mizuho Americas Announces Five-Year Renewal Agreement With the LPGA Tour as Title Sponsor of the Mizuho Americas Open, Reinforcing Its Commitment to Women’s Sports

    Source: GlobeNewswire (MIL-OSI)

    Mizuho to Raise Purse to $3.25 Million in 2026

    Michelle Wie West to Continue as Mizuho Brand Ambassador and Tournament Host

    Liberty National Golf Club to Host Event in 2028-2030; Mountain Ridge Country Club Added for 2026-2027

    NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) — Mizuho Americas, the New York-headquartered arm of Mizuho Financial Group (NYSE: MFG), announced today that it has renewed its title sponsor agreement for the Mizuho Americas Open through 2030 and will raise the 2026 purse to $3.25 million, one of the largest outside of the Major championships. The tournament will maintain its successful format where the American Junior Golf Association’s future stars compete alongside the best women golfers in the world.

    The new five-year agreement will allow the marquee tournament to remain in the New York City Metro area, providing unmatched benefits to the LPGA players, AJGA junior golfers, and the local community. After three years at the prestigious Liberty National Golf Club in Jersey City, NJ, the Mizuho Americas Open will travel just a few miles west to Mountain Ridge Country Club in West Caldwell, NJ, for 2026 and 2027, and then back to its long-term home at Liberty National for the remaining years through 2030. Additionally, LPGA Tour Icon and Mizuho Americas Brand Ambassador Michelle Wie West will continue to serve as Tournament Host.

    “We first partnered with the LPGA, AJGA, and Liberty National in 2023 to create a one-of-a-kind tournament that stands apart from the others,” said Jerry Rizzieri, President & CEO of Mizuho Securities USA and Head of Americas Corporate and Investment Bank. “We share this tournament – not only with the players – but also with our employees and clients. We remain deeply committed to our investment in women’s sports as we aim to help advance the next generation of talent and level the playing field for women, both on and off the golf course.”

    During the five-year partnership, the prize purse will continue to escalate, ensuring that the Mizuho Americas Open remains one of the largest non-Major championship purses on the LPGA Tour. Mizuho raised the bar for player experience and will continue to provide complimentary first-class accommodations and transportation for all LPGA players participating in the event through 2030.

    Mizuho’s continued support of the LPGA and its players speaks volumes about the company’s culture and its commitment to empowering women and fueling their aspirations,” said Liz Moore, Interim LPGA Commissioner. “Through our partnership with Mizuho, we’re able to showcase the world’s best golfers on a global stage, right outside one of the world’s most iconic cities, while uniquely providing rising AJGA stars the opportunity to compete alongside them — creating an unparalleled platform to inspire the next generation and furthering our core mission of using the game of golf to transform and enrich the lives of girls and women

    In a few short years, the Mizuho Americas Open has cemented itself as a premier LPGA Tour stop. Played on one of the best golf courses in the country, its groundbreaking format offers an opportunity for top-ranked AJGA junior golfers to compete side-by-side with the best LPGA players in the world, creating an unprecedented week of education and access to help ignite the passion of young women to become the next generation of LPGA Tour superstars.

    “We’re thrilled to strengthen this tremendous partnership with Mizuho, LPGA Tour and AJGA to host the world’s best professional and junior players through the end of the decade,” said Dan Fireman, Co-Founder and Executive Chairman of Liberty National Golf Club. “This event is truly unique and embodies our ethos and deep commitment to growing the game through the Liberty National Foundation’s Torch Lighters Club, which supports a number of charitable organizations, including the AJGA and others that benefit youth and our broader community.”

    Philanthropy will remain at the heart of the Mizuho Americas Open. Mizuho will continue to host its DrivHER Summit, a leadership forum developed in conjunction with Girls Inc., to help young women explore, aspire, and achieve. The comprehensive program features a golf clinic and workshops on self-confidence, career planning, and networking, reflecting the values championed by Girls Inc. of access, inclusivity, and opportunity.

    “Thanks in large part to the unwavering support of Mizuho, this tournament has grown into a crown jewel on the LPGA Tour,” said Michelle Wie West. “Mizuho is different than most sponsors in that they’re involved every step of the way, ensuring a premium is placed on the player experience and community impact. As tournament host, I feel inspired by how they’ve supercharged this event through innovative philanthropic and marketing efforts that put women’s golf front and center in the world’s largest media market.”

    The Mizuho Americas Open is operated by Excel Sports Management, a leading sports agency representing marquee brands, properties, and premier professional athletes – including many of the players and stars of today’s LPGA Tour.

    “We couldn’t be more excited to extend our partnership with Mizuho for another five years. What began as an ambitious vision has quickly become a cornerstone event on the LPGA Tour,” said Kevin Hopkins, Senior Vice President at Excel Sports Management. “As we look ahead, we’re energized by the opportunity to further elevate this championship experience for the players, our partners, and the dedicated golf fans across the New York metropolitan area who have embraced this event from day one”

    Information on ticket sales, corporate hospitality and volunteer opportunities are available at www.mizuhoamericasopen.com. Follow @MizuhoLPGA on Twitter, Instagram and Facebook for the latest news on the event.

    About Mizuho
    Mizuho Financial Group, Inc. is one of the largest financial institutions in the world as measured by total assets of ~$2 trillion, according to S&P Global 2024. Mizuho’s 65,000 employees worldwide offer comprehensive financial services to clients in 36 countries and 850 offices throughout the Americas, EMEA, and Asia.

    Mizuho Americas is a leading Corporate and Investment Bank (CIB) that provides a full spectrum of client-driven solutions across strategic advisory, capital markets, corporate banking, and fixed income and equities sales & trading to corporate, government, and institutional clients in the US, Canada, and Latin America. Through its acquisition of Greenhill, Mizuho enhanced its M&A, restructuring, and private capital advisory capabilities across the Americas, Europe, and Asia. Mizuho Americas employs approximately 4,000 professionals. For more information, visit www.mizuhoamericas.com.

    About the Mizuho Americas Open
    The Mizuho Americas Open is a purpose-driven tournament on the LPGA Tour. As title sponsor, Mizuho Americas created and drove the vision for a distinctive and premium event that celebrates women and advances the next generation, with a charitable focus on providing leadership and life skills to young girls from underserved communities. Played at the prestigious Liberty National Golf Club, with LPGA icon Michelle Wie West as celebrity host, the tournament features an elevated purse and a unique junior component where the AJGA’s stars of tomorrow compete alongside the best women golfers in the world. The tournament is also home to the Mizuho Americas DrivHER Summit, an inspirational day of learning and activities for Girls Inc., the official charitable partner of the Mizuho Americas Open. The Summit leverages the game of golf and the LPGA to inspire the members of Girls Inc. to discover the confidence they need to become leaders in their communities.

    About the LPGA 
    The Ladies Professional Golf Association (LPGA) is the world’s premier women’s professional golf organization. Created in 1950 by 13 pioneering female Founders, the LPGA, whose Members now represent nearly 40 countries, is the longest-standing professional women’s sports organization. Through the LPGA Tour, the Epson Tour, the LPGA Professionals, and a joint venture with the Ladies European Tour, the LPGA provides female professionals the opportunity to pursue their dreams in the game of golf at the highest level. In addition to its professional tours and teaching accreditation programs, the LPGA features a fully integrated Foundation, which provides best-in-class programming for female golfers through its junior golf programming, and its LPGA Amateurs division, which offers its members playing and learning opportunities around the world. The LPGA aims to use its unique platform to inspire, transform and advance opportunities for girls and women, on and off the golf course. 

    Follow the LPGA online at www.LPGA.com and download its mobile apps on Apple or Google Play. Join the social conversation on Facebook, X (formerly known as Twitter), Instagram and YouTube

    About the LPGA Tour 
    The LPGA Tour is the world’s leading competitive destination for the best female professional golfers in the world. The Tour hosts more than 32 annual events across 12 countries for over 200 athletes, awarding total prize funds exceeding $129 million and reaching television audiences in more than 220 countries. Follow the LPGA Tour on its U.S. television home, Golf Channel. 

    About the AJGA
    The American Junior Golf Association is a 501(c)(3) nonprofit organization dedicated to the overall growth and development of young men and women who aspire to earn college golf scholarships through competitive junior golf. The AJGA provides valuable exposure for college golf scholarships and has an annual junior membership (boys and girls, ages 12-19) of more than 9,000 members from 50 states and 51 foreign countries. Through initiatives like the Liberty National ACE Grant, a financial assistance program, and Leadership Links, a service-oriented platform that teaches juniors charitable-giving skills, the AJGA fosters the growth of golf’s next generation.

    TaylorMade and adidas are the AJGA’s Global Sponsors, supporting the AJGA for more than 25 years. TaylorMade has served as the Official Ball of the AJGA since 2016. adidas has been the Official Apparel and Footwear of the AJGA since 2017. Rolex, in its fourth decade of AJGA sponsorship, became the inaugural AJGA Premier Partner in 2004.

    AJGA alumni have risen to the top of amateur, collegiate and professional golf. Former AJGA juniors have compiled more than 1,000 victories on the PGA and LPGA Tours. AJGA alumni include Patrick Cantlay, Billy Horschel, Collin Morikawa, Scottie Scheffler, Jordan Spieth, Justin Thomas, Tiger Woods, Paula Creamer, Jessica Korda, Nelly Korda, Cristie Kerr, Stacy Lewis, Inbee Park, Lexi Thompson and Rose Zhang.

    About Liberty National Golf Club
    One of the world’s most iconic golf locales, Liberty National Golf Club is located along the Hudson River in Jersey City, NJ, with striking views of the Statue of Liberty, Ellis Island, and Manhattan skyline. Liberty National fittingly opened on July 4, 2006, and is guided by the vision and leadership of former Reebok Founder, Chairman & CEO Paul Fireman and his son Dan Fireman, managing partner of Fireman Capital Partners. Designed by US Open Champion Tom Kite and esteemed golf course mastermind Bob Cupp, Liberty National is kept in tournament ready playing condition. Liberty National hosted The Presidents Cup in 2017 as well as multiple PGA TOUR FedExCup Playoff events, and is currently the home of the LPGA Mizuho Americas Open. For more information about Liberty National Golf Club, visit www.libertynationalgc.com.

    About Mountain Ridge Country Club
    Founded in 1912, Mountain Ridge Country Club has long been considered a historic venue. Originally established in West Orange, NJ, the Club moved to its current site in West Caldwell, located just 20 miles from New York City, in 1929 when it commissioned famed golf course architect Donald Ross to design a championship 18-hole course across 282 rolling acres. Often described as one of the NY City Metropolitan Area’s “hidden gems”, the course has always been viewed as a classic Donald Ross design. The course was considered a difficult test when it opened in 1931, and little has changed in the 90+ years since. The course is known for its distinctly Ross features, especially its challenging greens. Ross designed each nine-hole loop to wind down to the lower part of the property and conclude with a long assent back to the iconic fieldstone clubhouse, designed by renowned architect Clifford C. Wendehack. The venue has hosted many championships including the 2012 USGA Senior Amateur Championship and the 2021 LPGA Cognizant Founder’s Cup. Over its century-long history, Mountain Ridge has been home to many prominent members and continues its commitment to excellence, community, philanthropy, and the game of golf.

    Media Contacts

    For Mizuho:
    Jon Schwartz, Prosek Partners
    (347) 794-9633
    jschwartz@prosek.com

    or

    Laura London
    Director, Media Relations, Mizuho
    (917) 446-5226
    laura.london@mizuhogroup.com

    For LPGA:
    Emily Carman
    emily.carman@lpga.com
    (714) 742-8301

    The MIL Network

  • MIL-OSI: Sachem Capital Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    BRANFORD, Conn., May 01, 2025 (GLOBE NEWSWIRE) — Sachem Capital Corp. (NYSE American: SACH) (the “Company”), a real estate lender specializing in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, today announced its financial results for the quarter ended March 31, 2025.

    John Villano, CPA, Sachem Capital’s Chief Executive Officer commented, “The first quarter was one of stability for the Company as we put the challenges of the past year behind us. Our balance sheet showed almost no change from the prior quarter, as we remain focused on effectively managing our loan portfolio and protecting our capital. Our goal is to grow our balance sheet, capitalizing on quality opportunities to invest capital at attractive yields, while maintaining a prudent capital allocation approach. Overall, while uncertainty across the real estate and capital markets remain elevated, we are pleased with the stability of our portfolio and the liquidity on our balance sheet, and we are confident that cash flow and dividend growth will return as we leverage our industry relationships and focus on driving shareholder value.”

    Results of operations for the quarter ended March 31, 2025

    Total revenue was $11.4 million compared to $16.8 million in the first quarter of 2024. The change in revenue was primarily due to the cumulative effect of fewer originations over the last fifteen months, resulting in a reduction in the unpaid principal balance of loans held for investment, in addition to a currently elevated amount of nonperforming loans and real estate owned. On the other hand, income from our preferred membership limited liability company investments increased approximately 71.7%, compared to the three months ended March 31, 2024.

    Total operating costs and expenses for the first quarter of 2025 were $10.4 million compared to $12.5 million in the same quarter last year. The change was primarily due to reductions in interest and amortization expense of $1.4 million, compensation and employee benefits, provision for credit losses related to loans, and other expenses totaling $0.8 million.

    Net loss attributable to common shareholders for the first quarter of 2025 was $213,000, or $0.00 per share, compared to net income attributable to common shareholders of $3.6 million, or $0.08 per share for the first quarter of 2024.

    Balance Sheet

    Total assets as of March 31, 2025 were $491.4 million compared to $492.0 million as of December 31, 2024. Total liabilities as of March 31, 2025 were $312.1 million compared to $310.3 million as of December 31, 2024.

    Total indebtedness at quarter-end was $305.6 million. This includes: $227.0 million of notes payable (net of $3.2 million of deferred financing costs) and $78.6 million aggregate outstanding principal amount of the amounts due under various credit facilities and the mortgage loan on the Company’s office building.

    Total shareholders’ equity at March 31, 2025 was $179.3 million compared to $181.7 million at year-end 2024. Book value per common share at March 31, 2025 was $2.57 compared to $2.64 at year-end 2024. The $0.07 decrease in book value is primarily due to the aggregate $3.5 million in preferred and common dividends declared and paid during this first quarter 2025.

    Dividends

    The Company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income taxes and intends to continue to qualify and operate as a REIT. Under federal income tax rules, a REIT is required to distribute a minimum of 90% of taxable income each year to its shareholders, and the Company intends to comply with this requirement for the current year.

    On March 31, 2025, the Company paid a dividend of $0.484375 per share to the holders of its Series A Preferred Stock of record on March 15, 2025.

    On March 31, 2025, the Company paid a dividend of $0.05 per share to its common shareholders of record on March 17, 2025.

    Investor Conference Webcast and Call

    The Company is hosting a webcast and conference call Thursday, May 1, 2025 at 8:00 a.m. Eastern Time, to discuss in greater detail its financial results for the quarter ended March 31, 2025. A webcast of the call may be accessed on the Company’s website at https://sachemcapitalcorp.com/investor-relations/events-and-presentations/default.aspx.

    Interested parties can access the conference call via telephone by dialing toll free 1-877-704-4453 for U.S. callers or 1-201-389-0920 for international callers.

    Replay

    The webcast will also be archived on the Company’s website and a telephone replay of the call will be available through Thursday, May 15, 2025, and can be accessed by dialing 1-844-512-2921 for U.S. callers or 1-412-317-6671 for international callers and by entering replay passcode: 13752977.

    About Sachem Capital Corp

    Sachem Capital Corp. is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., three years or less) secured, nonbanking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The Company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and is personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.

    Forward Looking Statements

    This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. Such forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2024 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2025. Because of these risks, uncertainties and assumptions, any forward-looking events and circumstances discussed in this press release may not occur. You should not rely upon forward-looking statements as predictions of future events. Neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.

    Investor & Media Contact:
    Email: investors@sachemcapitalcorp.com

     
    SACHEM CAPITAL CORP.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except share data)
     
                 
        March 31, 2025   December 31, 2024
        (unaudited)   (audited)
    Assets            
    Cash and cash equivalents   $ 24,414     $ 18,066  
    Investment securities (at fair value)     1,392       1,517  
    Loans held for investment (net of deferred loan fees of $2,225 and $1,950)     365,635       375,041  
    Allowance for credit losses     (18,122 )     (18,470 )
    Loans held for investment, net     347,513       356,571  
    Loans held for sale (net of valuation allowance of $4,876 and $4,880)     10,974       10,970  
    Interest and fees receivable (net of allowance of $2,981 and $3,133)     4,281       3,768  
    Due from borrowers (net of allowance of $1,956 and $1,135)     4,413       5,150  
    Real estate owned, net     18,865       18,574  
    Investments in limited liability companies     53,935       53,942  
    Investments in developmental real estate, net     16,432       14,032  
    Property and equipment, net     3,209       3,222  
    Other assets     5,967       6,164  
    Total assets   $ 491,395     $ 491,976  
                 
    Liabilities and Shareholders’ Equity            
    Liabilities:            
    Notes payable (net of deferred financing costs of $3,232 and $3,713)   $ 227,007     $ 226,526  
    Repurchase agreements     41,519       33,708  
    Mortgage payable     981       1,002  
    Lines of credit     36,100       40,000  
    Accounts payable and accrued liabilities     2,705       4,377  
    Advances from borrowers     3,079       4,047  
    Below market lease intangible     665       665  
    Total liabilities     312,056       310,325  
                 
    Commitments and Contingencies – Note 13            
                 
    Shareholders’ equity:            
    Preferred shares – $0.001 par value; 5,000,000 shares authorized; 2,903,000 shares designated as Series A Preferred Stock; 2,306,748 shares of Series A Preferred Stock issued and outstanding at March 31, 2025 and December 31, 2024     2       2  
    Common Shares – $0.001 par value; 200,000,000 shares authorized; 47,310,139 and 46,965,306 issued and outstanding at March 31, 2025 and December 31, 2024, respectively     47       47  
    Additional paid-in capital     257,220       256,956  
    Cumulative net earnings     36,422       35,518  
    Cumulative dividends paid     (114,352 )     (110,872 )
    Total shareholders’ equity     179,339       181,651  
    Total liabilities and shareholders’ equity   $ 491,395     $ 491,976  
     
     
    SACHEM CAPITAL CORP.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share data)
     
                 
        Three Months Ended
        March 31, 
           2025     2024  
    Revenues            
    Interest income from loans   $ 7,887     $ 12,641  
    Fee income from loans     1,425       2,616  
    Income from limited liability company investments     2,052       1,195  
    Other investment income     6       316  
    Other income     72       35  
    Total revenues     11,442       16,803  
                 
    Operating expenses            
    Interest and amortization of deferred financing costs     6,094       7,469  
    Compensation and employee benefits     1,771       1,943  
    General and administrative expenses     1,355       1,239  
    Provision for credit losses related to loans held for investment     1,052       1,365  
    Change in valuation allowance related to loans held for sale     (4 )      
    Loss on sale of real estate owned and property and equipment, net           11  
    Other expenses     145       503  
    Total operating expenses     10,413       12,530  
    Operating income     1,029       4,273  
                 
    Other (loss) income, net            
    (Loss) gain on equity securities     (125 )     397  
    Total other (loss) income, net     (125 )     397  
    Net income     904       4,670  
    Preferred stock dividend     (1,117 )     (1,022 )
    Net (loss) income attributable to common shareholders   $ (213 )   $ 3,648  
                 
    Basic and diluted (loss) earnings per Common Share   $ (0.00 )   $ 0.08  
    Basic and diluted weighted average Common Shares outstanding     46,784,744       47,128,511  
                     
     
    SACHEM CAPITAL CORP.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
     
                 
        Three Months Ended
        March 31, 
        2025     2024  
    CASH FLOWS FROM OPERATING ACTIVITIES            
    Net income   $ 904     $ 4,670  
    Adjustments to reconcile net income to net cash provided by operating activities:            
    Amortization of deferred financing costs     545       624  
    Depreciation expense     92       94  
    Stock-based compensation     264       239  
    Provision for credit losses related to loans held for investment     1,052       1,365  
    Change in valuation allowance related to loans held for sale     (4 )      
    Loss on sale of real estate owned and property and equipment, net           11  
    Loss (gain) on equity securities     125       (397 )
    Change in deferred loan fees     275       (291 )
    Changes in operating assets and liabilities:            
    Interest and fees receivable, net     (361 )     392  
    Other assets     133       (63 )
    Due from borrowers, net     (254 )     (1,038 )
    Accounts payable and accrued liabilities     (1,612 )     433  
    Advances from borrowers     (968 )     (1,822 )
    Total adjustments and operating changes     (713 )     (453 )
    NET CASH PROVIDED BY OPERATING ACTIVITIES     191       4,217  
                 
    CASH FLOWS FROM INVESTING ACTIVITIES            
    Purchase of investment securities           (7,725 )
    Proceeds from the sale of investment securities           7,128  
    Purchase of interests in limited liability companies     (4,223 )     (3,186 )
    Proceeds from limited liability companies returns of capital     4,230        
    Proceeds from sale of real estate owned     89       121  
    Acquisitions of and improvements to real estate owned           (749 )
    Purchase of property and equipment     (41 )     (14 )
    Improvements in investment in developmental real estate     (742 )      
    Principal disbursements for loans     (41,308 )     (42,654 )
    Principal collections on loans     47,742       51,398  
    NET CASH PROVIDED BY INVESTING ACTIVITIES     5,747       4,319  
                 
    CASH FLOWS FROM FINANCING ACTIVITIES            
    Proceeds from lines of credit     36,100       460  
    Repayments on lines of credit     (40,000 )     (600 )
    Proceeds from repurchase agreements     11,693        
    Repayments of repurchase agreements     (3,882 )      
    Repayment of mortgage payable     (21 )     (20 )
    Dividends paid on Common Shares     (2,363 )     (5,144 )
    Dividends paid on Series A Preferred Stock     (1,117 )     (1,022 )
    Proceeds from issuance of Common Shares, net of expenses           2,049  
    Proceeds from issuance of Series A Preferred Stock, net of expenses           1,556  
    NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES     410       (2,721 )
                 
    NET INCREASE IN CASH AND CASH EQUIVALENTS     6,348       5,815  
                 
    CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD     18,066       12,598  
                 
    CASH AND CASH EQUIVALENTS – END OF PERIOD   $ 24,414     $ 18,413  

    The MIL Network

  • MIL-OSI: FTC Solar Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • First quarter revenue of $20.8 million, up 58% q/q, above target
    • Cost efficiencies drive operating expenses to multi-year low
    • Seeing increased customer interest and activity including bid activity up 60% y/y
    • Upsized promissory note offering expected to close in Q2
    • Strengthened Board of Directors with addition of two new members

    AUSTIN, Texas, May 01, 2025 (GLOBE NEWSWIRE) — FTC Solar, Inc. (Nasdaq: FTCI), a leading provider of solar tracker systems, today announced financial results for the first quarter that ended March 31, 2025.

    “We’re pleased to report first quarter results which were ahead of target mid-points on all metrics,” said Yann Brandt, President and Chief Executive Officer of FTC Solar. “In recent months we have added multiples of our current annual revenue run rate to our backlog, signed agreements totaling more than 6.5 gigawatts with Tier 1 customers, added incremental liquidity for our balance sheet, strengthened our sales team, further strengthened our product offering and capabilities, and increased our commercial traction with bids on many gigawatts of future projects. 

    “Much of our recent momentum has been driven by the significant expansion of our innovative and differentiated 1P product line, including high wind offerings up to 150mph, terrain-following options, large stow range, compatibility across module manufacturers and types, and the upcoming availability of 100% domestic content. This compelling product line has helped drive significant increases in customer visits, bidding volume, average project size and customer access.

    “Overall, I’m bullish on the long-term potential and prospects for FTC Solar. We’re well positioned in a growth market to take significant share, with the right combination of people and products, providing the best value for our customers. Our priority is to demonstrate continued progress and convert the increased customer interest and wins into sustainable growth and profitability.”

    Summary Financial Performance: Q1 2025 compared to Q1 2024

        U.S. GAAP     Non-GAAP(c)  
        Three months ended March 31,  
    (in thousands, except per share data)   2025     2024     2025     2024  
    Revenue   $ 20,803     $ 12,587     $ 20,803     $ 12,587  
    Gross margin percentage     (16.6 %)     (16.7 %)     (14.4 %)     (13.7 %)
    Total operating expenses   $ 7,113     $ 10,394     $ 6,645     $ 8,702  
    Loss from operations(a)   $ (10,560 )   $ (12,502 )   $ (9,750 )   $ (10,655 )
    Net loss   $ (3,819 )   $ (8,771 )   $ (10,801 )   $ (10,873 )
    Diluted loss per share(b)   $ (0.58 )   $ (0.70 )   $ (0.84 )   $ (0.87 )
      (a)   Adjusted EBITDA for Non-GAAP
      (b)   Prior year amounts per share have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024
      (c)   See below for reconciliation of Non-GAAP financial measures to the nearest comparable GAAP measures
           

    The contracted portion of the company’s backlog1 now stands at approximately $482 million. 

    First Quarter Results
    Total first-quarter revenue was $20.8 million, which was above our target range. This revenue level represents an increase of 57.6% compared to the prior quarter and an increase of 65.3% compared to the year-earlier quarter due to higher product volumes.

    GAAP gross loss was $3.4 million, or 16.6% of revenue, compared to gross loss of $3.8 million, or 29.1% of revenue, in the prior quarter. Non-GAAP gross loss was $3.0 million or 14.4% of revenue. The result for this quarter compares to non-GAAP gross loss of $1.7 million in the prior-year period.

    GAAP operating expenses were $7.1 million. On a non-GAAP basis, operating expenses were $6.6 million. This result compares to non-GAAP operating expenses of $8.7 million in the year-ago quarter. 

    GAAP net loss was $3.8 million or $0.58 per diluted share, compared to a loss of $12.2 million or $0.96 per diluted share in the prior quarter and a net loss of $8.8 million or $0.70 per diluted share (post-split) in the year-ago quarter. Adjusted EBITDA loss, which excludes an approximate $5.9 million net gain from the change in fair value of the warrant liability, gain from collection of a contingent earnout payment and other non-cash items, was $9.8 million, compared to Adjusted EBITDA losses of $9.8 million(2) in the prior quarter and $10.7 million in the year-ago quarter.

    Subsequent Events
    The company announced today the appointments of Darrell Jackson and Max Sultan to its Board of Directors. The appointments were effective as of April 28, 2025.

    Mr. Jackson brings more than 30 years of executive and Board leadership experience to FTC Solar. He has been the CEO of The Efficace Group, an executive coaching and consulting firm, since 2018. Prior to Efficace, he served as President and CEO of Seaway Bank and Trust Company. Earlier in his career, he spent more than 19 years at Northern Trust Company, serving in various roles, including as EVP and President of Wealth Management, and spent approximately 14 years with BMO Harris. Mr. Jackson currently serves on the Janus Henderson Funds Board of Trustees, is an independent director for Amalgamated Financial Corporation, and is on the Board of Directors of two privately held companies, Dome Construction, Inc., and William R. Gray and Company. Mr. Jackson earned a BA in Communications from St. Xavier University and holds an Executive MBA degree from the Kellogg Graduate School of Management at Northwestern University.

    Mr. Sultan is currently a partner at Applied Value Group, a strategy and operations management consulting firm, having joined the firm in August 2013. He has led consulting engagements on issues including sourcing and supply chain, product design and innovation, and commercial excellence, and has worked with several renewable energy clients. Mr. Sultan has been a member of the Board of Directors of ES Solar, a private residential and commercial installer based in Utah since June 2023. He has previously served on the Boards of Applied Value Technologies and Division 5, LLC. Mr. Sultan holds a Bachelor of Business Administration degree from the Goizueta Business School at Emory University. Mr. Sultan was nominated to the Board by AV Securities, Inc., pursuant to the terms of the Promissory Note placement which closed in December 2024.

    Outlook
    For the second quarter, we expect revenue at the midpoint of our guidance range to show continued sequential growth relative to the first quarter. We continue to expect 2025 revenue to be weighted toward the second half and continue to expect to achieve adjusted EBITDA breakeven on a quarterly basis within 2025.

    (in millions)   1Q’25
    Guidance
      1Q’25
    Actual
      2Q’25
    Guidance(3)
    Revenue   $18.0 – $20.0   $20.8   $19.0 – $24.0
    Non-GAAP Gross Loss   $(4.8) – $(2.3)   $(3.0)   $(4.4) – $(2.0)
    Non-GAAP Gross Margin   (26.6%) – (11.7%)   (14.4%)   (23.4%) – (8.5%)
    Non-GAAP operating expenses   $7.7 – $8.4   $6.6   $7.8 – $8.6
    Non-GAAP adjusted EBITDA   $(13.3) – $(10.0)   $(9.8)   $(13.3) – $(10.0)
                 

    First Quarter 2025 Earnings Conference Call
    FTC Solar’s senior management will host a conference call for members of the investment community at 8:30 a.m. E.T. today, during which the company will discuss its first quarter results, its outlook and other business items. This call will be webcast and can be accessed within the Investor Relations section of FTC Solar’s website at https://investor.ftcsolar.com. A replay of the conference call will also be available on the website for 30 days following the webcast.

    About FTC Solar Inc.
    Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a global provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.

    Footnotes
    1. The term ‘backlog’ or ‘contracted and awarded’ refers to the combination of our executed contracts (contracted) and awarded orders (awarded), which are orders that have been documented and signed through a contract, where we are in the process of documenting a contract but for which a contract has not yet been signed, or that have been awarded in writing or verbally with a mutual understanding that the order will be contracted in the future. In the case of certain projects, including those that are scheduled for delivery on later dates, we have not locked in binding pricing with customers, and we instead use estimated average selling price to calculate the revenue included in our contracted and awarded orders for such projects. Actual revenue for these projects could differ once contracts with binding pricing are executed, and there is also a risk that a contract may never be executed for an awarded but uncontracted project, or that a contract may be executed for an awarded but uncontracted project at a date that is later than anticipated, or that a contract once executed may be subsequently amended, supplemented, rescinded, cancelled or breached, including in a manner that impacts the timing and amounts of payments due thereunder, thus reducing anticipated revenues. Please refer to our SEC filings, including our Form 10-K, for more information on our contracted and awarded orders, including risk factors.
    2. A reconciliation of prior quarter Non-GAAP financial measures to the nearest comparable GAAP measures may be found in Exhibit 99.1 of our Form 8-K filed on March 31, 2025.
    3. We do not provide a quantitative reconciliation of our forward-looking non-GAAP guidance measures to the most directly comparable GAAP financial measures because certain information needed to reconcile those measures is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying these measures as a result of changes in project schedules by our customers that may occur, which are outside of our control, and the impact, if any, of credit loss provisions, asset impairment charges, restructuring or changes in the timing and level of indirect or overhead spending, as well as other matters, that could occur which could significantly impact the related GAAP financial measures.

    Forward-Looking Statements
    This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. You should not rely on our forward-looking statements as predictions of future events, as actual results may differ materially from those in the forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the SEC, our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. Any forward-looking statements in this release speak only as of the date on which they are made. FTC Solar undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    FTC Solar Investor Contact:
    Bill Michalek
    Vice President, Investor Relations
    FTC Solar
    T: (737) 241-8618
    E: IR@FTCSolar.com

     
    FTC Solar, Inc.
    Condensed Consolidated Statements of Comprehensive Loss
    (unaudited)
     
        Three months ended March 31,  
    (in thousands, except shares and per share data)   2025     2024  
    Revenue:            
    Product   $ 18,202     $ 10,905  
    Service     2,601       1,682  
    Total revenue     20,803       12,587  
    Cost of revenue:            
    Product     20,111       12,367  
    Service     4,139       2,328  
    Total cost of revenue     24,250       14,695  
    Gross loss     (3,447 )     (2,108 )
    Operating expenses            
    Research and development     924       1,439  
    Selling and marketing     1,136       2,388  
    General and administrative     5,053       6,567  
    Total operating expenses     7,113       10,394  
    Loss from operations     (10,560 )     (12,502 )
    Interest expense     (711 )     (317 )
    Interest income     6       181  
    Gain from disposal of investment in unconsolidated subsidiary     3,204       4,085  
    Gain from change in fair value of warrant liability     4,604        
    Other income, net     4       36  
    Loss from unconsolidated subsidiary     (112 )     (265 )
    Loss before income taxes     (3,565 )     (8,782 )
    (Provision for) benefit from income taxes     (254 )     11  
    Net loss     (3,819 )     (8,771 )
    Other comprehensive income (loss):            
    Foreign currency translation adjustments     28       (181 )
    Comprehensive loss   $ (3,791 )   $ (8,952 )
    Net loss per share:            
    Basic(*)   $ (0.30 )   $ (0.70 )
    Diluted(*)   $ (0.58 )   $ (0.70 )
    Weighted-average common shares outstanding:            
    Basic(*)     12,888,695       12,556,938  
    Diluted(*)     14,588,972       12,556,938  

    ___________

    (*) Prior year amounts per share and number of shares, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024.
     
    FTC Solar, Inc.
    Condensed Consolidated Balance Sheets
    (unaudited)
     
    (in thousands, except shares and per share data)   March 31, 2025     December 31, 2024  
    ASSETS            
    Current assets            
    Cash and cash equivalents   $ 5,909     $ 11,247  
    Accounts receivable, net of allowance for credit losses of $1,625 and $1,717 at March 31, 2025 and December 31, 2024, respectively     44,238       39,709  
    Inventories     6,828       10,144  
    Prepaid and other current assets     14,123       15,028  
    Total current assets     71,098       76,128  
    Operating lease right-of-use assets     959       1,149  
    Property and equipment, net     1,951       2,217  
    Goodwill     7,173       7,139  
    Equity method investment     842       954  
    Other assets     2,038       2,341  
    Total assets   $ 84,061     $ 89,928  
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Current liabilities            
    Accounts payable   $ 14,636     $ 12,995  
    Accrued expenses     23,245       20,134  
    Income taxes payable     407       325  
    Deferred revenue     2,237       5,306  
    Other current liabilities     10,373       10,313  
    Total current liabilities     50,898       49,073  
    Long-term debt     10,169       9,466  
    Operating lease liability, net of current portion     344       411  
    Warrant liability     4,916       9,520  
    Other non-current liabilities     2,206       2,422  
    Total liabilities     68,533       70,892  
    Commitments and contingencies            
    Stockholders’ equity            
    Preferred stock par value of $0.0001 per share, 10,000,000 shares authorized; none issued as of March 31, 2025 and December 31, 2024            
    Common stock par value of $0.0001 per share, 850,000,000 shares authorized; 13,068,309 and 12,853,823 shares issued and outstanding as of March 31, 2025 and December 31, 2024     1       1  
    Treasury stock, at cost; 1,076,257 shares as of March 31, 2025 and December 31, 2024            
    Additional paid-in capital     367,601       367,318  
    Accumulated other comprehensive loss     (514 )     (542 )
    Accumulated deficit     (351,560 )     (347,741 )
    Total stockholders’ equity     15,528       19,036  
    Total liabilities and stockholders’ equity   $ 84,061     $ 89,928  
     
     
    FTC Solar, Inc.
    Condensed Consolidated Statements of Cash Flows
    (unaudited)
     
        Three months ended March 31,  
    (in thousands)   2025     2024  
    Cash flows from operating activities            
    Net loss   $ (3,819 )   $ (8,771 )
    Adjustments to reconcile net loss to cash used in operating activities:            
    Stock-based compensation     280       1,639  
    Depreciation and amortization     302       404  
    Gain from change in fair value of warrant liability     (4,604 )      
    Gain from sale of property and equipment     (3 )      
    Amortization of debt discount and issue costs     210       177  
    Paid-in-kind non-cash interest     492        
    Provision (credit) for obsolete and slow-moving inventory           177  
    Loss from unconsolidated subsidiary     112       265  
    Gain from disposal of investment in unconsolidated subsidiary     (3,204 )     (4,085 )
    Warranties issued and remediation added     1,045       838  
    Warranty recoverable from manufacturer     80       98  
    Credit loss provisions(reversals)     (92 )     670  
    Deferred income taxes     426       225  
    Lease expense and other     327       309  
    Impact on cash from changes in operating assets and liabilities:            
    Accounts receivable     (4,437 )     (1,770 )
    Inventories     3,316       (116 )
    Prepaid and other current assets     918       45  
    Other assets     (216 )     (226 )
    Accounts payable     1,688       3,989  
    Accruals and other current liabilities     2,539       (6,200 )
    Deferred revenue     (3,069 )     1,285  
    Other non-current liabilities     (415 )     (523 )
    Lease payments and other, net     (359 )     (287 )
    Net cash used in operations     (8,483 )     (11,857 )
    Cash flows from investing activities:            
    Purchases of property and equipment     (83 )     (432 )
    Proceeds from sale of property and equipment     3        
    Equity method investment in Alpha Steel           (1,035 )
    Proceeds from disposal of investment in unconsolidated subsidiary     3,204       4,085  
    Net cash provided by investing activities     3,124       2,618  
    Cash flows from financing activities:            
    Proceeds from stock option exercises     3        
    Net cash provided by financing activities     3        
    Effect of exchange rate changes on cash, cash equivalents and restricted cash     18       (59 )
    Decrease in cash, cash equivalents and restricted cash     (5,338 )     (9,298 )
    Cash and cash equivalents at beginning of period     11,247       25,235  
    Cash, cash equivalents and restricted cash at end of period   $ 5,909     $ 15,937  
     

    Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures

    We utilize Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net loss plus (i) provision for (benefit from) income taxes, (ii) interest expense, net, (iii) depreciation expense, (iv) amortization of intangibles, (v) stock-based compensation, (vi) loss from changes in fair value of our warrant liability, and (vii) Chief Executive Officer (“CEO”) transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits). We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from changes in fair value of our warrant liability from net loss in arriving at Adjusted EBITDA. We define Adjusted Net Loss as net loss plus (i) amortization of debt discount and issue costs and intangibles, (ii) stock-based compensation, (iii) loss from changes in fair value of our warrant liability, (iv) CEO transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits), and (v) the income tax expense (benefit) of those adjustments, if any. We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from change in fair value of our warrant liability from net loss in arriving at Adjusted Net Loss. Adjusted EPS is defined as Adjusted Net Loss on a per share basis using our weighted average diluted shares outstanding.

    Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS are intended as supplemental measures of performance that are neither required by, nor presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). We present these non-GAAP measures, many of which are commonly used by investors and analysts, because we believe they assist those investors and analysts in comparing our performance across reporting periods on an ongoing basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS to evaluate the effectiveness of our business strategies.

    Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, and you should not rely on any single financial measure to evaluate our business. These Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure as disclosed below.

    The following table reconciles Non-GAAP gross profit (loss) to the most closely related GAAP measure for the three months ended March 31, 2025 and 2024, respectively:

        Three months ended March 31,  
    (in thousands, except percentages)   2025     2024  
    U.S. GAAP revenue   $ 20,803     $ 12,587  
    U.S. GAAP gross loss   $ (3,447 )   $ (2,108 )
    Depreciation expense     173       168  
    Stock-based compensation     243       216  
    Severance costs     34        
    Non-GAAP gross loss   $ (2,997 )   $ (1,724 )
    Non-GAAP gross margin percentage     (14.4 %)     (13.7 %)
     

    The following table reconciles Non-GAAP operating expenses to the most closely related GAAP measure for the three months ended March 31, 2025 and 2024, respectively:

        Three months ended March 31,  
    (in thousands)   2025     2024  
    U.S. GAAP operating expenses   $ 7,113     $ 10,394  
    Depreciation expense     (129 )     (102 )
    Amortization expense           (134 )
    Stock-based compensation     (37 )     (1,423 )
    CEO transition     (160 )      
    Non-routine legal fees           (33 )
    Reverse stock split     (1 )      
    Severance costs     (141 )      
    Non-GAAP operating expenses   $ 6,645     $ 8,702  
     

    The following table reconciles Non-GAAP Adjusted EBITDA to the related GAAP measure of loss from operations for the three months ended March 31, 2025 and 2024, respectively:

        Three months ended March 31,  
    (in thousands)   2025     2024  
    U.S. GAAP loss from operations   $ (10,560 )   $ (12,502 )
    Depreciation expense     302       270  
    Amortization expense           134  
    Stock-based compensation     280       1,639  
    CEO transition     160        
    Non-routine legal fees           33  
    Reverse stock split     1        
    Severance costs     175        
    Other income, net     4       36  
    Loss from unconsolidated subsidiary     (112 )     (265 )
    Adjusted EBITDA   $ (9,750 )   $ (10,655 )
     

    The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the three months ended March 31, 2025 and 2024, respectively:

        Three months ended March 31,  
        2025     2024  
    (in thousands, except shares and per share data)   Adjusted
    EBITDA
        Adjusted Net
    Loss
        Adjusted
    EBITDA
        Adjusted Net
    Loss
     
    Net loss per U.S. GAAP   $ (3,819 )   $ (3,819 )   $ (8,771 )   $ (8,771 )
    Reconciling items –                        
    Provision for (benefit from) income taxes     254             (11 )      
    Interest expense     711             317        
    Interest income     (6 )           (181 )      
    Amortization of debt discount and issue costs in interest expense           210             177  
    Depreciation expense     302             270        
    Amortization of intangibles                 134       134  
    Stock-based compensation     280       280       1,639       1,639  
    Gain from disposal of investment in unconsolidated subsidiary(a)     (3,204 )     (3,204 )     (4,085 )     (4,085 )
    Gain from change in fair value of warrant liability(b)     (4,604 )     (4,604 )            
    CEO transition(c)     160       160              
    Non-routine legal fees(d)                 33       33  
    Reverse stock split(e)     1       1              
    Severance costs(f)     175       175              
    Adjusted Non-GAAP amounts   $ (9,750 )   $ (10,801 )   $ (10,655 )   $ (10,873 )
                             
    Adjusted Non-GAAP net loss per share (Adjusted EPS):                        
    Basic(g)   N/A     $ (0.84 )   N/A     $ (0.87 )
    Diluted(g)   N/A     $ (0.84 )   N/A     $ (0.87 )
                             
    Weighted-average common shares outstanding:                        
    Basic(g)   N/A       12,888,695     N/A       12,556,938  
    Diluted(g)   N/A       12,888,695     N/A       12,556,938  
    (a) We exclude the gain from collections of contingent contractual amounts arising from the sale in 2021 of our investment in an unconsolidated subsidiary as these amounts are not considered part of our normal ongoing operations.
    (b) We exclude non-cash changes in the fair value of our outstanding warrants as we do not consider such changes to impact or reflect changes in our core operating performance.
    (c) In connection with hiring a new CEO in August 2024, we agreed to upfront and incremental sign-on bonuses (collectively, the “sign-on bonuses”), a portion of which was paid to our CEO in 2024, with clawback provisions over the next two years, and a portion of which will be paid in 2025 and 2026, all contingent upon continued employment as of the payment date. These sign-on bonuses will be expensed each period through October 1, 2026, to reflect the required service periods. We do not view these sign-on bonuses as being part of the normal on-going compensation arrangements for our CEO.
    (d) Non-routine legal fees represent legal fees and other costs incurred for specific matters that were not ordinary or routine to the operations of the business.
    (e) We incurred incremental professional fees in 2025 relating to final reconciliation of information relating to our stock compensation awards as a result of the Reverse Stock Split that was consummated effective November 29, 2024.
    (f) Severance costs in 2025 were due to restructuring changes.
    (g) Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024.

    The MIL Network

  • MIL-OSI Europe: Written question – Diverting ships to third-country ports – E-001500/2025

    Source: European Parliament

    Question for written answer  E-001500/2025/rev.1
    to the Commission
    Rule 144
    Rosa Serrano Sierra (S&D)

    In March 2025, the Commission adopted its first report on the implementation of the EU emissions trading system (ETS) extension to maritime transport. The report concludes that there is no clear evidence of ships being diverted to non-European ports or that shipping companies are relocating their ports of call to avoid ETS and FuelEU obligations. However, the report fails to calculate the CO2 emissions emitted, overlooks the fact that the Red Sea crisis is temporarily modifying traffic flows and omits the increase in announced investments in transhipment terminals in third-country ports. Nor does it take into account the fact that in 2024, European ports lost 2 % of their operational capacity, while non-European ports gained 3 %.

    In the light of the above:

    • 1.Has the Commission analysed whether emissions have been reduced and whether there has been any impact on the connectivity of European ports?
    • 2.Will it address any of the issues raised in the forthcoming European port strategy and, in particular, does it intend to include a framework for the protection of port workers in the strategy?
    • 3.Is it considering extending the list of third-country transhipment ports with carbon leakage risks this year ?

    Submitted: 11.4.2025

    Last updated: 29 April 2025

    MIL OSI Europe News