Intelligence Agencies – Page 160

MIL-OSI China: China to launch Chang’e-8 lunar mission around 2029, collaborating with int’l partners

Source: People’s Republic of China – State Council News

China to launch Chang’e-8 lunar mission around 2029, collaborating with int’l partners

SHANGHAI, April 24 — The China National Space Administration (CNSA) revealed Thursday that the Chang’e-8 lunar probe is scheduled for launch around 2029, and will carry payloads from 11 countries and regions and one international organization as part of international cooperation.

The announcement was made at the opening ceremony for 2025 Space Day of China, which is celebrated annually on April 24.

The Chang’e-8 mission will target the Leibnitz-Beta Plateau near the lunar south pole region, working with the earlier Chang’e-7 mission to conduct scientific exploration and in-situ resource utilization experiments. These efforts will lay the groundwork for the future International Lunar Research Station.

According to CNSA, the 10 selected collaborative projects include a multi-functional robot designed by researchers in Hong Kong, a lunar rover developed by Pakistan and the International Society for Terrain-Vehicle Systems (ISTVS), an exploration rover made by Türkiye, and radio astronomical instruments by South Africa and Peru.

The projects also include Italy’s laser retroreflector arrays, Russia’s plasma and dust analyzer and high-energy particle detector, Thailand’s neutron analyzer, Bahrain and Egypt’s lunar surface imaging system, and Iran’s lunar potential monitor.

Shan Zhongde, head of CNSA, said China will work closely with international partners to achieve new scientific discoveries and technological breakthroughs that will ultimately benefit all of humanity.

CNSA announced in October 2023 international cooperation opportunities for Chang’e-8 lunar mission, which offered 200 kilograms of payload resources for global partners. A total of 41 cooperation proposals were received.

MIL OSI China News –

April 24, 2025

MIL-OSI: Dassault Systèmes: Solid start to the year with strong subscription growth, EPS at the high end of guidance

Source: GlobeNewswire (MIL-OSI)

Press Release

VELIZY-VILLACOUBLAY, France — April 24, 2025

Dassault Systèmes: Solid start to the year with strong subscription growth, EPS at the high end of guidance

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today reports its IFRS unaudited estimated financial results for the first quarter 2025 ended March 31, 2025. The Group’s Board of Directors approved these estimated results on April 23, 2025. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix.

Summary Highlights¹

(unaudited, non-IFRS unless otherwise noted,
all growth rates in constant currencies)

1Q25: Software revenue increased by 5% driven by recurring revenue up 7%;
1Q25: Strong subscription growth of 14%, bringing New business up 7%;
1Q25: 3DEXPERIENCE software revenue growth of 17%;
1Q25: Diluted EPS up 5% (6% as reported) to €0.32;
1Q25: Cash flow from operations grew 21%, as reported, to €813 million (IFRS);
FY25: Full year objectives unchanged, total revenue growth of 6-8% and diluted EPS of €1.36-€1.39.

Dassault Systèmes’ Chief Executive Officer Commentary

Pascal Daloz, Dassault Systèmes’ Chief Executive Officer, commented:

“In February this year we announced Gen 7, the new generation of representation of our customers’ virtual universes – we call it 3D UNIV+RSES. This seventh generation of MODSIM data, powered by AI and spatial computing, makes the 3DEXPERIENCE the next-generation platform for knowledge and know-how, establishing it as a global IP management platform. Early customer feedback confirms that platform-based AI leveraging virtual twins creates competitive advantage.

We’ve had a solid start to the year. In the first quarter, the Manufacturing Industries sector performed well led by Aerospace & Defense and High Tech, along with Transportation & Mobility in China, Japan and US. At the same time, we’re accelerating in Sovereign Infrastructure, where energy, security, and AI capabilities – through high-performance data centers – are becoming strategic imperatives for nations and territories.

We are committed to being the trusted partner for our customers – helping them stay ahead, while strengthening our leadership position for the long term and raising barriers to entry.”

Dassault Systèmes’ Chief Financial Officer Commentary

(revenue, operating margin and diluted EPS (‘EPS’) growth rates in constant currencies,
data on a non-IFRS basis)

Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

“In the first quarter, our revenue is driven by strong subscription growth of 14%. As a result, recurring revenue now represents 86% of software revenue, highlighting the resilience of our business model. Regarding operational efficiency, we reached the upper end of our EPS guidance and saw strong growth in operating cash flow, increasing by 21% as reported.

Entering 2025, our approach was to provide a risk-adjusted financial outlook. Since then, the introduction of new tariffs has created a more volatile market environment, which could lead to longer decision-making cycles. That said, our pipeline remains solid, and our current visibility aligns with the midpoint of our full year guidance.

Therefore, we keep our 2025 outlook of 6-8% total revenue growth and 7-10% EPS growth unchanged. In addition, we are slightly adjusting our operating margin target, expecting a year-over-year expansion of 50-70 basis points, versus 70-100 basis points prior, to gain additional flexibility and invest in Gen 7 to support our long-term growth.”

Financial Summary

In millions of Euros, except per share data and percentages	IFRS				Non-IFRS
In millions of Euros, except per share data and percentages	Q1 2025	Q1 2024	Change	Change in constant currencies	Q1 2025	Q1 2024	Change	Change in constant currencies
Total Revenue	1,573.0	1,499.7	5%	4%	1,573.0	1,499.7	5%	4%
Software Revenue	1,432.7	1,352.8	6%	5%	1,432.7	1,352.8	6%	5%
Operating Margin	19.4%	21.6%	(2.3)pts		30.9%	31.1%	(0.2)pt
Diluted EPS	0.20	0.21	(9)%		0.32	0.30	6%	5%

First Quarter 2025 Versus 2024 Financial Comparisons

(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)

Total Revenue: Total revenue in the first quarter grew by 4% to €1.57 billion, and software revenue increased by 5% to €1.43 billion. Subscription & support revenue rose by 7%; recurring revenue represented 86% of software revenue, up 2 basis points versus last year. Licenses and other software revenue declined by 10% to €198 million. Services revenue was down 6% to €140 million, during the quarter.
Software Revenue by Geography: Revenue in the Americas increased by 7% to represent 43% of software revenue. This growth acceleration is driven by Aerospace & Defense, Transport & Mobility and High-Tech. Despite tariff uncertainty, Europe increased by 1%, led by good growth in Aerospace & Defense. Europe represented 36% of software revenue. In Asia, revenue increased by 5%, driven by India, Southeast Asia and Korea. Asia represented 22% of software revenue.
Software Revenue by Product Line:
- Industrial Innovation software revenue increased by 8% to €793 million. This strong broad-based performance was led by CATIA, ENOVIA, DELMIA and NETVIBES. Industrial Innovation software represented 55% of software revenue.

Life Sciences software revenue was stable at €293 million, accounting for 20% of software revenue. MEDIDATA was impacted by continued CRO² headwinds, while benefiting from the steady dynamic with Large Pharma and Mid-Market.
Mainstream Innovation software revenue increased by 2% to €347 million. SOLIDWORKS had a slow start to the year, but saw solid bookings and good momentum in 3DEXPERIENCE adoption. CENTRIC PLM was impacted by timing of renewals, after an exceptional year of growth in 2024. Mainstream Innovation represented 24% of software revenue, during the period.

Software Revenue by Industry: Aerospace & Defense, High Tech and Industrial Equipment were among the best performers during the quarter.
Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 17%, driven by Aerospace & Defense, High Tech and Transportation & Mobility, along with opportunities in the sovereign infrastructure domain. 3DEXPERIENCE software revenue represented 39% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 25% of software revenue during the period. 3DEXPERIENCE Cloud software revenue increased by 41%.
Operating Income and Margin: IFRS operating income declined by 6% to €304 million, as reported. Non-IFRS operating income increased by 3% in constant currencies to €486 million (up 4% as reported). The IFRS operating margin stood at 19.4% compared to 21.6% in the first quarter of 2024. The non-IFRS operating margin totaled 30.9% versus 31.1% during the same period last year.
Earnings per Share: IFRS diluted EPS was €0.20, down 9% as reported. Non-IFRS diluted EPS grew to €0.32, up 6% as reported, or 5% in constant currencies.
Cash Flow from Operations (IFRS): Cash flow from operations totaled €813 million, an increase of 21% relative to the same period last year with strong cash collection. Cash flow from operations was principally used for the acquisition of ContentServ for €191 million (net of €11 million of cash acquired), repurchase of Treasury Shares for €80 million, repayment of debt for €59 million and €56 million for investments in CAPEX.
Balance Sheet (IFRS): Dassault Systèmes had a net cash position of €1.79 billion as of March 31, 2025, an increase of €0.33 billion, compared to €1.46 billion for the year ending December 31, 2024. Cash and cash equivalents totaled €4.24 billion at the end of March 2025.

Financial Objectives for 2025

Dassault Systèmes’ second quarter and 2025 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2025 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:


		Q2 2025	FY 2025
Total Revenue (billion)		€1.520 – €1.580	€6.567 – €6.667
Growth		2 – 6%	6 – 7%
Growth ex FX		3 – 7%	6 – 8%

Software revenue growth *		3 – 7%	6 – 8%
	Of which licenses and other software revenue growth *	(6) – 1%	2 – 6%
	Of which recurring revenue growth *	5 – 8%	7 – 8%
Services revenue growth *		3 – 7%	4 – 6%

Operating Margin		29.8% – 29.9%	32.3% – 32.6%

EPS Diluted		€0.30 – €0.31	€1.36 – €1.39
Growth		(1) – 3%	7 – 9%
Growth ex FX		1 – 5%	7 – 10%

US dollar		$1.10 per Euro	$1.09 per Euro
Japanese yen (before hedging)		JPY 155.0 per Euro	JPY 156.4 per Euro
* Growth in Constant Currencies

These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The 2025 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2025 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €213 million (these estimates do not include any new stock option or share grants issued after March 31, 2025); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €353 million, largely impacted by the acquisition of MEDIDATA and lease incentives of acquired companies at approximately €1 million.

The above objectives also do not include any impact from other operating income and expenses, a net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after March 31, 2025.

Corporate Announcements

Today’s Webcast and Conference Call Information

Today, Thursday, April 24, 2025, Dassault Systèmes will host, from Paris, a webcasted presentation at 9:00 AM London Time / 10:00 AM Paris time, and will then host a conference call at 8:30 AM New York time / 1:30 PM London time / 2:30 PM Paris time. The webcasted presentation and conference calls will be available online by accessing investor.3ds.com.

Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes’ Investor Relations at +33.1.61.62.69.24.

Investor Relations Events

Capital Markets Day: June 6, 2025
Second Quarter 2025 Earnings Release: July 24, 2025
Third Quarter 2025 Earnings Release: October 23, 2025
Fourth Quarter 2025 Earnings Release: February 11, 2026

Forward-looking Information

Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Group’s non-IFRS financial performance objectives are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors.

The Group’s actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section 1.9 of the 2024 Universal Registration Document (‘Document d’enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 18, 2025, available on the Group’s website www.3ds.com.

In particular, please refer to the risk factor “Uncertain Global Environment” in section 1.9.1.1 of the 2024 Universal Registration Document set out below for ease of reference:

“In light of the uncertainties regarding economic, business, social, health and geopolitical conditions at the global level, Dassault Systèmes’ revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis, mainly due to the following factors:

the deployment of Dassault Systèmes’ solutions may represent a large portion of a customer’s investments in software technology. Decisions to make such an investment are impacted by the economic environment in which the customers operate. Uncertain global geopolitical, economic and health conditions and the lack of visibility or the lack of financial resources may cause some customers, e.g. within the automotive, aerospace, energy or natural resources industries, to reduce, postpone or cancel their investments, or to reduce or not renew ongoing paid maintenance for their installed base, which impact larger customers’ revenue with their respective sub-contractors;
the political, economic and monetary situation in certain geographic regions where Dassault Systèmes operates could become more volatile and negatively affect Dassault Systèmes’ business, and in particular its revenue, for example, due to stricter export compliance rules or the introduction of new customs barriers or controls on the exchange of goods and services;
continued pressure or volatility on raw materials and energy prices could also slow down Dassault Systèmes’ diversification efforts in new industries;
uncertainties regarding the extent and duration of costs inflation could adversely affect the financial position of Dassault Systèmes; and
the sales cycle of the Dassault Systèmes’ products – already relatively long due to the strategic nature of such investments for customers – could further lengthen.

The occurrence of crises – health and political crises in particular – could have consequences both for the health and safety of Dassault Systèmes’ employees and for the Company. It could also adversely impact the financial situation or financing and supply capabilities of Dassault Systèmes’ existing and potential customers, commercial and technology partners, some of whom may be forced to temporarily close sites or to cease operations. A deteriorating economic environment could generate increased price pressure and affect the collection of receivables, which would negatively affect Dassault Systèmes’ revenue, financial performance and market position.

Dassault Systèmes makes every effort to take into consideration this uncertain outlook. Dassault Systèmes’ business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of Dassault Systèmes’ products and services, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Company’s business results.

In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the second quarter 2025. The Group has assumed an average US dollar to euro exchange rate of US$1.09 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY156.4 to €1.00, before hedging for the full year 2025. However, currency values fluctuate, and the Group’s results may be significantly affected by changes in exchange rates.

Non-IFRS Financial Information

Readers are cautioned that the supplemental non-IFRS financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company’s 2024 Universal Registration Document filed with the AMF on March 18, 2025.

In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.

FOR MORE INFORMATION

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

ABOUT DASSAULT SYSTÈMES

Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens.
With Dassault Systèmes’ 3DEXPERIENCE platform, 370 000 customers of all sizes, in all industries, can collaborate, imagine and create sustainable innovations that drive meaningful impact.
For more information, visit www.3ds.com

Dassault Systèmes Investor Relations Team FTI Consulting

Beatrix Martinez: +33 1 61 62 40 73 Arnaud de Cheffontaines: +33 1 47 03 69 48

Jamie Ricketts : +44 20 3727 1600

investors@3ds.com

Dassault Systèmes Press Contacts

Corporate / France Arnaud MALHERBE

arnaud.malherbe@3ds.com

+33 (0)1 61 62 87 73

© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

APPENDIX TABLE OF CONTENTS

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Glossary of Definitions

Non-IFRS Financial Information

Acquisitions and Foreign Exchange Impact

Condensed consolidated statements of income

Condensed consolidated balance sheet

Condensed consolidated cash flow statement

IFRS – non-IFRS reconciliation

DASSAULT SYSTÈMES – Glossary of Definitions

Information in Constant Currencies

Dassault Systèmes has followed a long-standing policy of measuring its revenue performance and setting its revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in its total revenue and software revenue by activity, industry, geography and product lines. The Group believes it is helpful to evaluate its growth exclusive of currency impacts, particularly to help understand revenue trends in its business. Therefore, the Group provides percentage increases or decreases in its revenue and expenses (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed “in constant currencies”, the results of the “prior” period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

While constant currency calculations are not considered to be an IFRS measure, the Group believes these measures are critical to understanding its global revenue results and to compare with many of its competitors who report their financial results in U.S. dollars. Therefore, Dassault Systèmes includes this calculation for comparing IFRS revenue figures as well non-IFRS revenue figures for comparable periods. All information at constant currencies is expressed as a rounded percentage and therefore may not precisely reflect the absolute figures.

Information on Growth excluding acquisitions (“organic growth”)

In addition to financial indicators on the entire Group’s scope, Dassault Systèmes provides growth excluding acquisitions effect, also named organic growth. In order to do so, the data relating to the scope is restated excluding acquisitions, from the date of the transaction, over a period of 12 months.

Information on Industrial Sectors

The Group provides broad end-to-end software solutions and services: its platform-based virtual twin experiences combine modeling, simulation, data science and collaborative innovation to support companies in the three sectors it serves, namely Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities.

These three sectors comprise twelve industries:

Manufacturing Industries: Transportation & Mobility; Aerospace & Defense; Marine & Offshore; Industrial Equipment; High-Tech; Home & Lifestyle; Consumer Packaged Goods – Retail. In Manufacturing Industries, Dassault Systèmes helps customers virtualize their operations, improve data sharing and collaboration across their organization, reduce costs and time-to-market, and become more sustainable;
Life Sciences & Healthcare: Life Sciences & Healthcare. In this sector, the Group aims to address the entire cycle of the patient journey to lead the way toward precision medicine. To reach the broader healthcare ecosystem from research to commercial, the Group’s solutions connect all elements from molecule development to prevention to care, and combine new therapeutics, medical practices, and Medtech;
Infrastructure & Cities: Infrastructure, Energy & Materials; Architecture, Engineering & Construction; Business Services; Cities & Public Services. In Infrastructure & Cities, the Group supports the virtualization of the sector in making its industries more efficient and sustainable, and creating desirable living environments.

Information on Product Lines

The Group’s product lines financial reporting include the following financial information:

Industrial Innovation software revenue, which includes CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands;
Life Sciences software revenue, which includes MEDIDATA and BIOVIA brands;
Mainstream Innovation software revenue which includes SOLIDWORKS, as well as its CENTRIC PLM and 3DVIA brands.

Starting from 2022, OUTSCALE became a brand of the Group, extending the portfolio of software applications. As the first sovereign and sustainable operator on the cloud, OUTSCALE enables governments and corporations from all sectors to achieve digital autonomy through a Cloud experience and with a world-class cyber governance.

GEOs

Eleven GEOs are responsible for driving the development of the Company’s business and implementing its customer‑centric engagement model. Teams leverage strong networks of local customers, users, partners, and influencers.

These GEOs are structured into three groups:

the “Americas” group, made of two GEOs;
the “Europe” group, comprising Europe, Middle East and Africa (EMEA) and made of four GEOs;
the “Asia” group, comprising Asia and Oceania and made of five GEOs.

3DEXPERIENCE Software Contribution

To measure the relative share of 3DEXPERIENCE software in its revenues, Dassault Systèmes calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS, MEDIDATA, CENTRIC PLM and other acquisitions (defined as “3DEXPERIENCE Eligible software revenue”).

Cloud revenue

Cloud revenue is generated from contracts that provide access to cloud-based solutions (SaaS), infrastructure as a service (IaaS), cloud solution development and cloud managed services. These offerings are delivered by Dassault Systèmes through its own cloud infrastructure or by third-party cloud providers. They are available through different deployment methods: Dedicated cloud, Sovereign cloud and International cloud. Cloud solutions are generally offered through subscription-based models or perpetual licenses with support and hosting services.

New business

New business is the combination of subscription revenue and licenses & other software revenue.

DASSAULT SYSTÈMES

NON-IFRS FINANCIAL INFORMATION

(unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)

Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.

Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

In millions of Euros, except per share data, percentages, headcount and exchange rates	Non-IFRS reported
	Three months ended
	March 31, 2025	March 31, 2024	Change	Change in constant currencies
Total Revenue	€ 1,573.0	€ 1,499.7	5%	4%

Revenue breakdown by activity
Software revenue	1,432.7	1,352.8	6%	5%
Of which licenses and other software revenue	198.1	218.5	(9)%	(10)%
Of which subscription and support revenue	1,234.6	1,134.3	9%	7%
Services revenue	140.2	146.8	(4)%	(6)%

Software revenue breakdown by product line
Industrial Innovation	793.1	731.4	8%	8%
Life Sciences	292.6	284.7	3%	0%
Mainstream Innovation	347.1	336.7	3%	2%

Software Revenue breakdown by geography
Americas	611.1	553.6	10%	7%
Europe	513.2	503.2	2%	1%
Asia	308.4	296.0	4%	5%

Operating income	€ 486.1	€ 466.5	4%
Operating margin	30.9%	31.1%

Net income attributable to shareholders	€ 420.1	€ 397.2	6%
Diluted earnings per share	€ 0.32	€ 0.30	6%	5%

Closing headcount	26,225	25,780	2%

Average Rate USD per Euro	1.05	1.09	(3)%
Average Rate JPY per Euro	160.45	161.15	(0)%

DASSAULT SYSTÈMES

ACQUISITIONS AND FOREIGN EXCHANGE IMPACT

(unaudited; in millions of Euros)

In millions of Euros

Non-IFRS reported

o/w growth at constant rate and scope

o/w change of scope impact at current year rate

o/w FX impact on previous year figures

March 31,

2025

March 31,

2024

Change

Revenue QTD

1,573.0

1,499.7

73.3

52.6

0.9

19.8

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited; in millions of Euros, except per share data and percentages)

In millions of Euros, except per share data and percentages	IFRS reported
	Three months ended
	March 31,	March 31,
	2025	2024
Licenses and other software revenue	198.1	218.5
Subscription and Support revenue	1,234.6	1,134.3
Software revenue	1,432.7	1,352.8
Services revenue	140.2	146.8
Total Revenue	€ 1,573.0	€ 1,499.7
Cost of software revenue ⁽¹⁾	(129.2)	(111.9)
Cost of services revenue	(131.1)	(131.8)
Research and development expenses	(348.6)	(311.4)
Marketing and sales expenses	(446.5)	(420.3)
General and administrative expenses	(120.4)	(105.1)
Amortization of acquired intangible assets and of tangible assets revaluation	(88.3)	(93.3)
Other operating income and expense, net	(4.4)	(1.8)
Total Operating Expenses	(1,268.5)	(1,175.6)
Operating Income	€ 304.5	€ 324.1
Financial income (loss), net	30.3	30.2
Income before income taxes	€ 334.8	€ 354.2
Income tax expense	(75.5)	(68.3)
Net Income	€ 259.4	€ 286.0
Non-controlling interest	1.2	(0.3)
Net Income attributable to equity holders of the parent	€ 260.5	€ 285.7
Basic earnings per share	0.20	0.22
Diluted earnings per share	€ 0.20	€ 0.21
Basic weighted average shares outstanding (in millions)	1,312.3	1,313.6
Diluted weighted average shares outstanding (in millions)	1,332.2	1,331.1

⁽¹⁾ Excluding amortization of acquired intangible assets and of tangible assets revaluation.

IFRS reported	Three months ended March 31, 2025
IFRS reported	Change ⁽²⁾	Change in constant currencies
Total Revenue	5%	4%
Revenue by activity
Software revenue	6%	5%
Services revenue	(4)%	(6)%
Software Revenue by product line
Industrial Innovation	8%	8%
Life Sciences	3%	0%
Mainstream Innovation	3%	2%
Software Revenue by geography
Americas	10%	7%
Europe	2%	1%
Asia	4%	5%

⁽²⁾ Variation compared to the same period in the prior year.

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	March 31,	December 31,
	2025	2024
ASSETS
Cash and cash equivalents	4,242.9	3,952.6
Trade accounts receivable, net	1,709.5	2,120.9
Contract assets	34.3	30.1
Other current assets	464.8	464.0
Total current assets	6,451.5	6,567.6
Property and equipment, net	928.7	945.8
Goodwill and Intangible assets, net	7,597.6	7,687.1
Other non-current assets	358.9	345.5
Total non-current assets	8,885.2	8,978.3
Total Assets	€ 15,336.7	€ 15,545.9
LIABILITIES
Trade accounts payable	199.5	259.9
Contract liabilities	1,716.0	1,663.4
Borrowings, current	411.4	450.8
Other current liabilities	1,109.7	1,147.4
Total current liabilities	3,436.6	3,521.5
Borrowings, non-current	2,043.3	2,042.8
Other non-current liabilities	887.9	900.9
Total non-current liabilities	2,931.3	2,943.7
Non-controlling interests	14.3	14.1
Parent shareholders’ equity	8,954.5	9,066.6
Total Liabilities	€ 15,336.7	€ 15,545.9

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	Three months ended
	March 31,	March 31,	Change
	2025	2024	Change
Net income attributable to equity holders of the parent	260.5	285.7	(25.2)
Non-controlling interest	(1.2)	0.3	(1.4)
Net income	259.4	286.0	(26.6)
Depreciation of property and equipment	50.5	47.6	2.8
Amortization of intangible assets	89.6	95.2	(5.6)
Adjustments for other non-cash items	16.1	37.7	(21.6)
Changes in working capital	397.4	204.4	193.0
Net Cash From Operating Activities	€ 813.0	€ 670.9	€ 142.1

Additions to property, equipment and intangibles assets	(55.9)	(57.2)	1.2
Payment for acquisition of businesses, net of cash acquired	(193.8)	(4.5)	(189.2)
Other	(37.8)	22.3	(60.1)
Net Cash Provided by (Used in) Investing Activities	€ (287.5)	€ (39.4)	€ (248.1)

Proceeds from exercise of stock options	22.2	21.3	0.8
Repurchase and sale of treasury stock	(80.1)	(131.1)	51.0
Acquisition of non-controlling interests	(0.2)	(2.6)	2.5
Repayment of borrowings	(58.9)	(0.1)	(58.8)
Repayment of lease liabilities	(22.6)	(24.0)	1.4
Net Cash Provided by (Used in) Financing Activities	€ (139.6)	€ (136.5)	€ (3.0)

Effect of exchange rate changes on cash and cash equivalents	(95.7)	32.7	(128.4)

Increase (decrease) in cash and cash equivalents	€ 290.3	€ 527.7	€ (237.4)


Cash and cash equivalents at beginning of period	€ 3,952.6	€ 3,568.3
Cash and cash equivalents at end of period	€ 4,242.9	€ 4,095.9

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2024 filed with the AMF on March 18, 2025. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages	Three months ended March 31,						Change
	2025	Adjustment⁽¹⁾	2025	2024	Adjustment⁽¹⁾	2024	IFRS	Non-IFRS⁽²⁾
	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Non-IFRS⁽²⁾
Total Revenue	€ 1,573.0	–	€ 1,573.0	€ 1,499.7	–	€ 1,499.7	5%	5%
Revenue breakdown by activity
Software revenue	1,432.7	–	1,432.7	1,352.8	–	1,352.8	6%	6%
Licenses and other software revenue	198.1	–	198.1	218.5	–	218.5	(9)%	(9)%
Subscription and Support revenue	1,234.6	–	1,234.6	1,134.3	–	1,134.3	9%	9%
Recurring portion of Software revenue	86%		86%	84%		84%
Services revenue	140.2	–	140.2	146.8	–	146.8	(4)%	(4)%
Software Revenue breakdown by product line
Industrial Innovation	793.1	–	793.1	731.4	–	731.4	8%	8%
Life Sciences	292.6	–	292.6	284.7	–	284.7	3%	3%
Mainstream Innovation	347.1	–	347.1	336.7	–	336.7	3%	3%
Software Revenue breakdown by geography
Americas	611.1	–	611.1	553.6	–	553.6	10%	10%
Europe	513.2	–	513.2	503.2	–	503.2	2%	2%
Asia	308.4	–	308.4	296.0	–	296.0	4%	4%
Total Operating Expenses	€ (1,268.5)	€ 181.6	€ (1,086.9)	€ (1,175.6)	€ 142.4	€ (1,033.2)	8%	5%
Share-based compensation expense and related social charges	(88.5)	88.5	–	(46.7)	46.7	–
Amortization of acquired intangible assets and of tangible assets revaluation	(88.3)	88.3	–	(93.3)	93.3	–
Lease incentives of acquired companies	(0.4)	0.4	–	(0.7)	0.7	–
Other operating income and expense, net	(4.4)	4.4	–	(1.8)	1.8	–
Operating Income	€ 304.5	€ 181.6	€ 486.1	€ 324.1	€ 142.4	€ 466.5	(6)%	4%
Operating Margin	19.4%		30.9%	21.6%		31.1%
Financial income (loss), net	30.3	0.6	30.9	30.2	1.0	31.2	1%	(1)%
Income tax expense	(75.5)	(21.6)	(97.1)	(68.3)	(31.6)	(99.9)	11%	(3)%
Non-controlling interest	1.2	(0.9)	0.2	(0.3)	(0.3)	(0.5)	N/A	(141)%
Net Income attributable to shareholders	€ 260.5	€ 159.6	€ 420.1	€ 285.7	€ 111.5	€ 397.2	(9)%	6%
Diluted Earnings Per Share ⁽³⁾	€ 0.20	€ 0.12	€ 0.32	€ 0.21	€ 0.08	€ 0.30	(9)%	6%

⁽¹⁾ In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

In millions of Euros, except percentages	Three months ended March 31,								Change
In millions of Euros, except percentages	2025 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2025 Non-IFRS	2024 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2024 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(260.3)	4.9	0.1	(255.2)	(243.8)	2.9	0.2	(240.6)	7%	6%
Research and development expenses	(348.6)	32.5	0.1	(316.0)	(311.4)	17.9	0.3	(293.2)	12%	8%
Marketing and sales expenses	(446.5)	24.5	0.1	(421.9)	(420.3)	13.7	0.1	(406.5)	6%	4%
General and administrative expenses	(120.4)	26.6	0.0	(93.8)	(105.1)	12.3	0.0	(92.7)	15%	1%
Total		€ 88.5	€ 0.4			€ 46.7	€ 0.7

⁽²⁾ The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
⁽³⁾ Based on a weighted average 1,332.2 million diluted shares for Q1 2025 and 1,331.1 million diluted shares for Q1 2024, and, for IFRS only, a diluted net income attributable to the sharehorlders of € 260.5 million for Q1 2025 (€ 285.7 million for Q1 2024). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

1 IFRS figures for 1Q25: total revenue at €1.57 billion, operating margin of 19.4% and diluted EPS at €0.20.

2 Contract Research Organizations

Attachment

Dassault Systèmes: Solid start to the year with strong subscription growth, EPS at the high end of guidance

The MIL Network –

April 24, 2025

MIL-OSI: Nokia Corporation Interim Report for Q1 2025

Source: GlobeNewswire (MIL-OSI)

Nokia Corporation

Interim report
24 April 2025 at 08:00 EEST

Nokia Corporation Interim Report for Q1 2025

Network Infrastructure delivers strong net sales growth to start 2025

Infinera acquisition completed during Q1, increasing Nokia’s scale in Optical Networks and with hyperscalers. Integration underway with many portfolio decisions already taken. Positive momentum with customers, with Q1 seeing strong order intake for Infinera driven by growth in hyperscalers.
Q1 net sales declined 3% y-o-y on a constant currency and portfolio basis (-1% reported) due to a challenging prior year comparison in Nokia Technologies. Network Infrastructure grew 11% on a constant currency and portfolio basis while Cloud and Network Services grew 8%. Mobile Networks grew 2%.
Comparable gross margin in Q1 decreased 820bps y-o-y to 42.3% (reported decreased 820bps to 41.5%), half of which is related to lower net sales in Nokia Technologies. It was also impacted by a contract settlement charge with net impact of EUR 120 million in Mobile Networks.
Q1 comparable operating margin decreased 990bps y-o-y to 3.6% (reported up 1 020bps to -1.1%), mainly due to lower gross margin and increased operating expenses resulting from targeted investments for long-term growth.
Q1 comparable diluted EPS for the period of EUR 0.03; reported diluted EPS for the period of EUR -0.01.
Q1 free cash flow of EUR 0.7 billion, net cash balance of EUR 3.0 billion.
Full year 2025 outlook unchanged with comparable operating profit of between EUR 1.9 billion and 2.4 billion and free cash flow conversion from comparable operating profit of between 50% and 80%.

This is a summary of the Nokia Corporation Interim Report for Q1 2025 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group’s financial information as well as on Nokia’s outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. A video interview summarizing the key points of our Q1 results will also be published on the website. Investors should not solely rely on summaries of Nokia’s financial reports and should also review the complete reports with tables.

JUSTIN HOTARD, PRESIDENT AND CEO, ON Q1 2025 RESULTS

In the following quote, net sales growth rates are on a constant currency and portfolio basis.
Since joining Nokia as President and CEO three weeks ago, I’ve had great engagements with some of our customers, partners and employees. I see great potential for Nokia, and my early focus is on capital allocation to ensure we both drive efficiency and invest sufficiently in the right growth segments for long-term value creation. I am impressed with our core technology base across our portfolio including in RAN and core as well as in IP, Optical and Fiber technologies. In speaking with customers, it is clear we play a critical role as a trusted partner operating their mobile and fixed networks and have the potential to expand our presence in hyperscale, enterprise and defense markets. Spending the time with our employees I’ve been excited by their innovative spirit, energy and drive to unlock Nokia’s full potential.

Our first quarter financial performance saw a net sales decline of 3%. However, excluding the catch-up element of licensing deals signed in the prior year, sales grew 7%. Our operating margin declined year-on-year due to the challenging prior year comparison in Nokia Technologies and a one-time charge in Mobile Networks, while profitability improved in both Network Infrastructure and Cloud and Network Services.

Network Infrastructure net sales grew 11% with all units contributing to growth and its backlog increased. The highlight of the first quarter was the completion of the Infinera acquisition. Our expanded Optical Networks business had a strong first quarter with 15% net sales growth along with several important design wins, particularly with hyperscalers. We have initiated the integration of Infinera and made many important roadmap decisions which we communicated to customers in early April. We are on track to deliver our synergy targets and I believe this acquisition has significant value creation potential for Nokia.

In Mobile Networks we continue to see positive signs of stabilization with further wins in addition to those we discussed last quarter. Today we have announced an important contract extension with T-Mobile US. Regarding our financial performance, net sales grew 2% but profitability was impacted by an unexpected one-time contract settlement with a net impact of EUR 120 million. The settlement related to a project for a single customer that started shipping in 2019 and the settlement fully resolves the situation.

Cloud and Network Services delivered net sales growth of 8% and we continue to see strong demand in the market for our 5G Core offers with additional footprint won at AT&T, Boost Mobile, Ooredoo Qatar and Telefónica. Nokia Technologies continued its execution with further deals signed in the quarter that increased the contracted annual net sales run-rate to approximately EUR 1.4 billion.

Looking forward, we are not immune to the rapidly evolving global trade landscape however based on early customer feedback, I believe our markets should prove to be relatively resilient. In 2025, we continue to expect strong net sales growth in Network Infrastructure, growth in Cloud and Network Services and largely stable net sales for Mobile Networks. In Nokia Technologies we expect approximately EUR 1.1 billion of operating profit.

Regarding the tariff situation, there could be some short-term disruption. We will continue to utilize the flexibility of our global manufacturing network to minimize impact of the evolving tariff landscape. Based on what we see today, we currently expect a EUR 20 to 30 million impact to our comparable operating profit in the second quarter from the current tariffs. Given the lack of visibility, we have not taken an assumption related to tariffs in the second half of 2025.

In terms of our outlook for the financial year 2025, we will continue to focus on investing in future growth opportunities and we now have an unexpected charge impacting Mobile Networks. Considering these factors, while achieving the top-end of the range will now be more challenging, our comparable operating profit guidance remains between EUR 1.9 and 2.4 billion. Our free cash flow guidance remains between 50% and 80% of comparable operating profit.

In the coming months I will continue to listen and learn from customers, employees, shareholders and other stakeholders. I will provide an update with our Q2 results and I look forward to presenting our complete value creation vision for Nokia at our capital markets day which we now expect to hold in November.

Justin Hotard
President and CEO

FINANCIAL RESULTS

EUR million (except for EPS in EUR)	Q1’25	Q1’24	YoY change
Reported results
Net sales	4 390	4 444	(1)%
Gross margin %	41.5%	49.7%	(820)bps
Research and development expenses	(1 145)	(1 125)	2%
Selling, general and administrative expenses	(728)	(693)	5%
Operating (loss)/profit	(48)	405	(112)%
Operating margin %	(1.1)%	9.1%	(1 020)bps
(Loss)/profit from continuing operations	(60)	451
Profit/(loss) from discontinued operations	—	(13)
(Loss)/profit for the period	(60)	438
EPS for the period, diluted	(0.01)	0.08
Net cash and interest-bearing financial investments	2 988	5 137	(42)%
Comparable results
Net sales	4 390	4 444	(1)%
Constant currency and portfolio YoY change⁽¹⁾			(3%)
Gross margin %	42.3%	50.5%	(820)bps
Research and development expenses	(1 115)	(1 076)	4%
Selling, general and administrative expenses	(587)	(584)	1%
Operating profit	156	600	(74)%
Operating margin %	3.6%	13.5%	(990)bps
Profit for the period	153	512	(70)%
EPS for the period, diluted	0.03	0.09	(67)%

Business group results	Network Infrastructure		Mobile Networks		Cloud and Network Services		Nokia Technologies		Group Common and Other
EUR million	Q1’25	Q1’24	Q1’25	Q1’24	Q1’25	Q1’24	Q1’25	Q1’24	Q1’25	Q1’24
Net sales	1 722	1 439	1 729	1 682	567	546	369	757	4	23
YoY change	20%		3%		4%		(51)%		(83)%
Constant currency and portfolio YoY change⁽¹⁾	11%		2%		8%		(52)%		(83)%
Gross margin %	40.6%	40.8%	30.9%	40.9%	45.9%	39.4%	100.0%	100.0%
Operating profit/(loss)	135	85	(152)	(32)	14	(37)	259	658	(99)	(75)
Operating margin %	7.8%	5.9%	(8.8)%	(1.9)%	2.5%	(6.8)%	70.2%	86.9%

(1) This metric provides additional information on the growth of the business and adjusts for both currency impacts and portfolio changes. The full definition is provided in the Alternative performance measures section in Nokia Corporation Interim Report for Q1 2025.

SHAREHOLDER DISTRIBUTION

Dividend

The Board of Directors proposes that the Annual General Meeting 2025 to be held on 29 April 2025 authorizes the Board to resolve on the distribution of an aggregate maximum of EUR 0.14 per share to be paid in respect of the financial year 2024. The authorization would be used to distribute dividend and/or assets from the reserve for invested unrestricted equity in four installments during the authorization period unless the Board decides otherwise for a justified reason. Subject to approval by the Annual General Meeting, the Board is expected to resolve on the amount and timing of each distribution so that the preliminary record and payment dates will be as set out in the Board’s proposal to the Annual General Meeting. Accordingly, the first expected record date would be 5 May 2025 and the expected payment date would be 12 May 2025. The actual dividend payment date outside Finland will be determined by the practices of the intermediary banks transferring the dividend payments.

Share buyback program

On 27 June 2024, Nokia announced its intention to acquire Infinera in a transaction that valued Infinera at US$1.7 billion equity value with up to 30% of the consideration to be paid in Nokia American depositary shares, depending on the elections of Infinera shareholders. To offset the dilution from the transaction to Nokia shareholders, on 22 November 2024 Nokia announced a share buyback program targeting to repurchase 150 million shares. This share buyback program was completed on 2 April 2025. Under this program, Nokia repurchased 150 million of its own shares at an average price per share of approximately EUR 4.69. The repurchases reduced the company’s unrestricted equity by approximately EUR 703 million and the repurchased shares were cancelled on 23 April 2025.

OUTLOOK

The outlook provided below reflects the acquisition of Infinera.

	Full Year 2025
Comparable operating profit⁽¹⁾	EUR 1.9 billion to EUR 2.4 billion
Free cash flow⁽¹⁾	50% to 80% conversion from comparable operating profit

¹Please refer to Alternative performance measures section in Nokia Corporation Interim Report for Q1 2025 for a full explanation of how these terms are defined.

The outlook and all of the underlying outlook assumptions described below are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this report.

Along with Nokia’s official outlook targets provided above, Nokia provides the below additional assumptions that support the group level financial outlook.

	Full year 2025	Comment
Group Common and Other operating expenses	approximately EUR 400 million
Comparable financial income and expenses	Positive EUR 50 to 150 million
Comparable income tax rate	~25%
Cash outflows related to income taxes	EUR 500 million (update)	Mainly reflecting evolving regional mix and the inclusion of Infinera
Capital Expenditures	EUR 650 million (update)	Reflecting the inclusion of Infinera
Recurring gross cost savings	EUR 400 million	Related to ongoing cost savings program and not including Infinera-related synergies
Restructuring and associated charges related to cost savings programs	EUR 250 million	Related to ongoing cost savings program and not including Infinera-related synergies
Restructuring and associated cash outflows	EUR 400 million	Related to ongoing cost savings program and not including Infinera-related synergies

ADDITIONAL TOPICS

Completion of Infinera acquisition

On 28 February 2025, Nokia announced the completion of the acquisition of Infinera Corporation, pursuant to the definitive agreement announced on 27 June 2024. Infinera, the San Jose based global supplier of innovative open optical networking solutions and advanced optical semiconductors, has become part of the Nokia group effective as of the closing with Nokia holding 100% of its equity and voting rights. The total purchase consideration was EUR 2.5 billion, consisting of cash proceeds, Nokia shares in the form of American Depositary Shares, the fair value of the portion of Infinera’s performance and restricted shares attributable to pre-combination services that were replaced with Nokia’s share-based payment awards and the fair value of Infinera’s convertible senior notes in line with relevant bond indentures. For more information regarding the acquisition, refer to Note 3. Acquisitions in Nokia Corporation Interim Report for Q1 2025.

“Constant currency and portfolio net sales growth” alternative performance metric

In Q1 2025, Nokia has introduced a new alternative performance metric (APM), “constant currency and portfolio net sales growth”. Constant currency and portfolio net sales growth is presented on a constant currency basis and also assumes certain specific acquisitions had already been owned during both periods and as if disposals had already occurred in both comparison periods. This has been added to mainly consider the acquisition of Infinera and is an evolution of the constant currency APM that had been previously used.

RISK FACTORS

Nokia and its businesses are exposed to a number of risks and uncertainties which include but are not limited to:

Competitive intensity, which is expected to continue at a high level as some competitors seek to take share;
Changes in customer network investments related to their ability to monetize the network;
Our ability to ensure competitiveness of our product roadmaps and costs through additional R&D investments;
Our ability to procure certain standard components and the costs thereof, such as semiconductors;
Disturbance in the global supply chain;
Impact of inflation, increased global macro-uncertainty, major currency fluctuations, changes in tariffs and higher interest rates;
Potential economic impact and disruption of global pandemics;
War or other geopolitical conflicts, disruptions and potential costs thereof;
Other macroeconomic, industry and competitive developments;
Timing and value of new, renewed and existing patent licensing agreements with licensees;
Results in brand and technology licensing; costs to protect and enforce our intellectual property rights; on-going litigation with respect to licensing and regulatory landscape for patent licensing;
The outcomes of on-going and potential disputes and litigation;
Our ability to execute, complete, successfully integrate and realize the expected benefits from transactions;
Timing of completions and acceptances of certain projects;
Our product and regional mix;
Uncertainty in forecasting income tax expenses and cash outflows, over the long-term, as they are also subject to possible changes due to business mix, the timing of patent licensing cash flow and changes in tax legislation, including potential tax reforms in various countries and OECD initiatives;
Our ability to utilize our Finnish deferred tax assets and their recognition on our balance sheet;
Our ability to meet our sustainability and other ESG targets, including our targets relating to greenhouse gas emissions;

as well the risk factors specified under Forward-looking statements of this release, and our 2024 annual report on Form 20-F published on 13 March 2025 under Operating and financial review and prospects-Risk factors.

FORWARD-LOOKING STATEMENTS

Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia’s current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, product launches, growth management, licenses, sustainability and other ESG targets, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of potential global pandemics, geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including “anticipate”, “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, “see”, “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above.

ANALYST WEBCAST

Nokia’s webcast will begin on 24 April 2025 at 11.30 a.m. Finnish time (EEST). The webcast will last approximately 60 minutes.
The webcast will be a presentation followed by a Q&A session. Presentation slides will be available for download at www.nokia.com/financials.
A link to the webcast will be available at www.nokia.com/financials.
Media representatives can listen in via the link, or alternatively call +1-412-317-5619.

FINANCIAL CALENDAR

Nokia’s Annual General Meeting 2025 is planned to be held on 29 April 2025.
Nokia plans to publish its second quarter and half year 2025 results on 24 July 2025.
Nokia plans to publish its third quarter and January-September 2025 results on 23 October 2025.

About Nokia

At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs, which is celebrating 100 years of innovation.

With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia
Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia

Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com

Attachment

2025 Q1 Nokia_ Earnings_release_English

The MIL Network –

April 24, 2025

MIL-OSI Security: California Man Faces Federal Charges for Cyberstalking Ex-Girlfriend

Source: Office of United States Attorneys

PORTLAND, Ore.—A Granite Bay, California man was arrested and appeared in federal court Tuesday after he was indicted in Oregon for cyberstalking his ex-girlfriend and posting sexually explicit photos online.

Jason David Campos, 42, has been charged with stalking, wire fraud, and aggravated identity theft.

According to court documents, between 2009 and 2023, Campos is alleged to have stalked and harassed the victim, a former intimate partner, by posting sexually explicit images and personal information online using social media platforms and public forum websites.

In May 2007, while still in the relationship, Campos told the victim that the laptop containing the sexually explicit images had been stolen from his vehicle. Campos and the victim ended their relationship in 2008.

The following year, the victim searched her name online and discovered that sexually explicit images, taken by Campos during their relationship, had been posted to Facebook, Craigslist, Classmates.com, in sex ads, and a Swedish website, without the victim’s consent. Campos used the victim’s name, including her maiden name, to create accounts on several social media platforms and public forum websites. Over the next 14 years, Campos used these accounts to publish sexually explicit images of the victim online. In numerous instances, Campos asked viewers to contact the victim directly and shared her personal information in order to further harass the victim.

On July 16, 2021, Campos is further alleged to have created an email account using the victim’s name, which he used to contact the victim’s attorney in Oregon. Posing as the victim, Campos requested the client file which contained personal information including the victim’s address and information about a child. After obtaining the file, Campos contacted the victim directly.

On January 23, 2022, the victim received an email from an account later linked to Campos, in which he referred to the child by name and asked if the victim was the child’s mother. Additionally, Campos used the email account to post several sexually explicit images of the victim to an online message board. He asked viewers to print the images and post them around a neighborhood in Oregon that the victim was residing in at the time.

Campos was arrested in Granite Bay and made his initial appearance in federal court Tuesday before a U.S. Magistrate Judge in Sacramento, California. He was arraigned, pleaded not guilty, and ordered detained pending further court proceedings.

If convicted, Campos faces a maximum sentence of 20 years in federal prison, three years’ supervised release, and a fine of $250,000 for wire fraud, a maximum sentence of five years in federal prison, three years’ supervised release, and a fine of $250,000 for stalking, and a mandatory minimum sentence of two years in federal prison, one year of supervised release, and a fine of $250,000 for aggravated identity theft.

The case is being investigated by the FBI and is being prosecuted by Gregory R. Nyhus and Mira Chernick, Assistant U.S. Attorneys for the District of Oregon.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

MIL Security OSI –

April 24, 2025

MIL-OSI China: International Lunar Research Station attracts more partners: CNSA

Source: People’s Republic of China – State Council News

SHANGHAI, April 23 — A total of 17 countries and international organizations, as well as more than 50 international research institutions have joined the China-initiated International Lunar Research Station (ILRS), a senior official of the China National Space Administration (CNSA) said Wednesday at a conference held in Shanghai.

In current international lunar exploration, traditional spacefaring nations continue to carry out missions, emerging space nations are constantly joining in, and commercial spaceflight is flourishing, Bian Zhigang, deputy director of the CNSA, noted at the International Conference on Developers of the ILRS.

Lunar exploration activities are evolving from short-term missions to long-term construction, from single-craft exploration to multi-craft collaboration, and from national missions to international cooperation, Bian said. The modes of exploration and cooperation are undergoing fundamental changes, he added.

Bian stressed that the ILRS will offer new opportunities and platforms for fostering global intelligence integration, technological innovation, inclusive cooperation, and shared development.

Wu Weiren, the chief designer of China’s lunar exploration program, said that the ILRS, which is a scientific experimental facility consisting of sections on the lunar surface and in lunar orbit, is projected to be built in two phases: a basic model to be built by 2035 in the lunar south pole region, and an extended model to be built in the 2040s.

Chang’e-7 and Chang’e-8 will become parts of the basic model.

The ILRS will possess capabilities such as Earth-Moon transportation, energy supply, centralized control, communication, navigation, lunar surface scientific exploration and ground support capabilities, Wu said.

It will conduct multidisciplinary, multiple-objective and comprehensive scientific and technological activities continuously, Wu added.

The ILRS integrates observation, exploration, scientific experiments and in-situ resource utilization into a single system. It will conduct large-scale, long-duration, multiple-point continuous and real-time synchronous observations, according to Wang Chi, director of the National Space Science Center of the Chinese Academy of Sciences (CAS) and a CAS academician.

The overall scientific objectives of the ILRS include lunar geology, lunar-based astronomical observation, space environment observation of the Sun-Earth-Moon system, lunar-based fundamental science experiments, and lunar in-situ resource utilization, Wang noted.

The CNSA has always adhered to the principles of equality, mutual benefits, the peaceful utilization of space, and win-win cooperation, Bian noted. It welcomes international partners to participate in various stages of the ILRS and at all levels of the mission. This will promote the use of space technology to benefit humanity and advance the building of a community with a shared future for humanity in the field of outer space, he said.

Amjad Ali, deputy director general and chairman secretariat of the Space and Upper Atmosphere Research Commission (SUPARCO) of Pakistan, said that the CNSA leads in inclusive space exploration, enabling emerging space nations like Pakistan to rise.

The upcoming Chang’e-8 mission will carry a 30-kilogram lunar rover developed by SUPARCO which will contribute to terrain mapping and regolith analysis, according to Ali.

He said that the ILRS, led by the CNSA, envisions the construction of a permanent lunar outpost by the 2030s. Pakistan’s involvement offers opportunities in science, infrastructure and in-situ resource utilization.

“Our instruments will analyze regolith composition, test autonomous surface mobility and study lunar environmental conditions, contributing to global lunar science databases,” Ali said.

“The CNSA-SUPARCO partnership strengthens intercultural dialogue, diplomacy and peaceful collaboration, proving that shared dreams can unite nations among the stars,” he added.

More than 120 leaders of space agencies, as well as experts and scholars, from 13 countries, regions and international organizations attended the meeting.

MIL OSI China News –

April 24, 2025

MIL-OSI Security: Former Clerk/Treasurer for Lewis County town charged federally with wire fraud for more than $930,000 in theft

Source: Office of United States Attorneys

Seattle – The former Clerk-Treasurer for the City of Morton in Lewis County is now charged federally with wire fraud in connection with her nine-year scheme to steal nearly $1 million from city coffers, announced Acting U.S. Attorney Teal Luthy Miller. Tamara (Tammy) Clevenger served as the Clerk-Treasurer for Morton from 2012-2022. In 2024, an audit by the Washington State Auditor uncovered years of embezzlement totaling $937,584. Clevenger is expected to enter a plea to the wire fraud charge next month.

“I commend the State Auditor’s Office for their good work on this case,” said Acting U.S. Attorney Miller. “It is critical that all of our government entities have multiple safeguards in place to prevent the theft of hard-earned taxpayer dollars.”

According to the charging information, Clevenger allegedly used a variety of ways to steal funds. Between November 2015 and December 2021, she stole at least $311,727 of cash that citizens had brought in to pay for city services. In some instances, she would write a check from one city account to another to conceal the theft of the cash. She also made unauthorized cash withdrawals with the Morton ATM card.

Between February 2013 and December 2021, Clevenger allegedly stole at least $625,857 by writing checks to herself and depositing them in her bank account. Clevenger would allegedly use checks that had been pre-signed by the mayor for use in emergency situations. Clevenger allegedly used fake vendor invoices to make it appear the checks had been written for a service rendered to the city. Clevenger’s actions used interstate wires to commit the fraud with the transfer of funds between various bank accounts. One example is the transfer of $5,808 in funds from Washington to Umpqua bank servers located outside the state.

Following the audit, the City of Morton established new procedures so that no single person had control of the various banking functions.

The FBI and IRS worked with the Washington State Auditor’s Office on the criminal financial investigation.

The charges contained in the information are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. However, use of a criminal information, the sworn statement of the prosecutor, is an indication that there have been discussions with the defendant and their counsel of an agreement to resolve the case.

Wire fraud is punishable by up to twenty years in prison.

The case is being prosecuted by Assistant United States Attorney Amanda McDowell.

MIL Security OSI –

April 24, 2025

MIL-OSI: $HAREHOLDER ALERT: The M&A Class Action Firm Urges Stockholders of GB, YOTA, PORT, AKYA to Act Now

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 23, 2025 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating:

Global Blue Group Holding AG (NYSE: GB), relating to the proposed merger with Shift4 Payments, Inc. Under the terms of the agreement, Shift4 intends to acquire Global Blue for $7.50 per common share in cash.

ACT NOW. The Shareholder Vote is scheduled for May 6, 2025.

Click here for https://monteverdelaw.com/case/global-blue-group-holding-ag-gb/. It is free and there is no cost or obligation to you.

Yotta Acquisition Corporation (NYSE: YOTA), relating to its proposed merger with DRIVEiT Financial Auto Group, Inc. Under the terms of the agreement, DRIVEiT securityholders are expected to own approximately 78.4% of the combined company.

Click here for more information: https://monteverdelaw.com/case/yotta-acquisition-corporation/. It is free and there is no cost or obligation to you.

Southport Acquisition Corporation (OTC: PORT), relating to its proposed merger with Angel Studios, Inc. Under the terms of the agreement, Angel Studios shares will automatically be converted into the right to receive Southport shares.

Click here for more information https://monteverdelaw.com/case/southport-acquisition-corporation/. It is free and there is no cost or obligation to you.

Akoya Biosciences, Inc. (NASDAQ: AKYA), relating to the proposed merger with Quanterix. Under the terms of the agreement, Akoya shareholders will receive 0.318 shares of Quanterix common stock for each share of Akoya common stock owned. Akoya shareholders will own approximately 30% of the combined company.

ACT NOW. The Shareholder Vote is scheduled for May 13, 2025.

Click here for more https://monteverdelaw.com/case/akoya-biosciences-inc-akya/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?
When was the last time you recovered money for shareholders?
What cases did you recover money in and how much?

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Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court.

No company, director or officer is above the law. If you own common stock in any of the above listed companies and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
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jmonteverde@monteverdelaw.com
Tel: (212) 971-1341

Attorney Advertising. (C) 2025 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

The MIL Network –

April 24, 2025

MIL-OSI Security: Mexican National Sentenced to Eight Years in Prison After Attempting to Traffic Over 38 Kilos of Methamphetamine in Utah

Source: Office of United States Attorneys

SALT LAKE CITY, Utah – Fermin Castro-Tovar, 26, a Mexican national, living in the United States illegally, was sentenced to 96 months’ imprisonment and three years’ supervised release, after he attempted to traffic over 38,000 grams of methamphetamine in the District of Utah and distributed approximately one pound of meth to undercover agents.

The sentence, imposed by Senior U.S District Court Judge Ted Stewart comes after Castro-Tovar pleaded guilty on January 14, 2025, to possession of methamphetamine with intent to distribute.

According to court documents and statements made at Castro-Tovar’s change of plea and sentencing hearings, in May 2024, Castro-Tovar sold methamphetamine during a controlled purchase to agents with the Wasatch Metro Drug Task Force. On May 30, 2024, law enforcement seized 24,020 grams of methamphetamine at a storage unit associated to him. At Castro Tovar’s residence, agents seized approximately 3,401 grams of methamphetamine. At an apartment associated to Tovar, agents seized three additional bags of methamphetamine weighing approximately 4,388 grams, 4,139 grams and 2,890 grams. In total, Castro-Tovar possessed and intended to distribute 38,838 grams of methamphetamine. See prior release: Foreign National Accused of Attempting to Traffic Over 38 Kilos of Methamphetamine in Utah.

“Stopping deadly drugs from being distributed throughout our communities is a priority,” said Acting U.S. Attorney Felice John Viti of the District of Utah. “We will continue to work with our state, local and federal partners to dismantle organizations that bring drugs into our country and threaten community safety.”

“The amount of methamphetamine in this case potentially amounts to hundreds of thousands of doses,” said Special Agent in Charge Mehtab Syed of the Salt Lake City FBI. “Illicit drugs have devastated too many lives in Utah. Public safety is at the forefront of everything we do, and the FBI’s Wasatch Metro Drug Task Force will use every resource available to cut the supply at the highest levels.”

The case was investigated by the Wasatch Metro Drug Task Force, consisting of the FBI and the Davis Metro Narcotic Strike Force.

Assistant United States Attorney Seth Nielson of the U.S. Attorney’s Office for the District of Utah prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

MIL Security OSI –

April 24, 2025

MIL-OSI Security: Hattiesburg Man Sentenced to Nearly Three Years in Prison for Possession of a Firearm by a Convicted Felon

Source: Office of United States Attorneys

Hattiesburg, MS – A Hattiesburg man was sentenced to 35 months in prison for possession of a firearm by a convicted felon.

According to court documents, Scotty James Conley, 40, of was found by the Forrest County Sheriff’s Office to be in possession of a firearm after responding to a complaint of a residential disturbance. Conley has a prior felony conviction from 2008 for sexual battery of a minor under 14 years of age. As a convicted felon he is prohibited by federal law from possessing a firearm or ammunition.

Conley was indicted by a federal grand jury on January 10, 2023. He pled guilty on January 27, 2025.

Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.

The FBI and Forrest County Sheriff’s Office investigated the case.

Assistant U.S. Attorney Matt Allen prosecuted the case.

This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

MIL Security OSI –

April 24, 2025

MIL-OSI Security: Kansas City Man Indicted for Illegal Firearm

Source: Office of United States Attorneys

KANSAS CITY, Mo. – A Kansas City, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm.

Marcus J. Porras, 31, was charged in a single-count indictment returned by a federal grand jury in Kansas, City, Mo. Today’s indictment replaces a federal complaint that was filed against Porras on April 14, 2025.

According to an affidavit filed in support of the original criminal complaint, on April 13, 2025, officers of the Kansas City, Missouri Police Department were dispatched to the area of Westport Road and Broadway Boulevard to meet private security officers who had detained Porras for fighting.

A security officer reported he was flagged down by patrons of the entertainment district regarding a fight inside an establishment within the Westport Entertainment District. The security officer reportedly observed multiple females and two males physically fighting. The females dispersed, and the two males continued to fight with one another. One of the males pointed at Porras indicating that Porras had a firearm.

Porras was taken into custody. The security officer retrieved a Glock 43, 9mm pistol near the area of the incident. The Glock 43 was loaded with one live 9mm round in the chamber. The security officer also recovered a magazine loaded with six live 9mm rounds.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Porras has prior felony convictions for robbery, armed criminal action, unlawful use of a weapon, and resisting an arrest, detention, or stop.

The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Special Assistant U.S. Attorney Jessica L. Jennings It was investigated by the Kansas City, Mo. Police Department.

Project Safe Neighborhoods

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

MIL Security OSI –

April 24, 2025

MIL-OSI Security: Memphis Woman Sentenced in Healthcare Fraud Scheme and Schemes to Defraud COVID-19 Relief Program

Source: Office of United States Attorneys

Memphis, TN – A federal judge has sentenced Nakita Cannady, 49, to 14 months in federal prison to be followed by two years of supervised release for healthcare fraud and making false statements in connection with loan applications for the Covid-19 Relief Program. The final sentencing hearing was concluded on April 4, 2025, with the entry of an order by Senior United States District Judge John T. Fowlkes, Jr. directing the defendant to pay more than $500,000.00 dollars in restitution to the victims. Joseph C. Murphy, Jr., Interim United States Attorney for the Western District of Tennessee, announced the sentence today.

According to the original federal indictment in the healthcare fraud case, Cannady owned and operated What About Us In-Home Healthcare, a home healthcare services business that purported to provide custodial healthcare services 24-hours a day, 7 days a week to mostly elderly patients. From May 29, 2017 through December 23, 2019, Cannady fraudulently billed Cigna Insurance for 24 hours a day of home healthcare when she knew the patients had only received 8 or 12 hours a day of home healthcare. Cannady was ordered to make restitution to Cigna Insurance in the amount of $193,508.10.

According to the second federal indictment, from June 17, 2020 through April 15, 2021, Cannady submitted six fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications for four purported businesses she controlled, specifically: What About Us Childcare, What About Us Foundation, What About Us Adult Daycare, and What About Us In-Home Healthcare. Cannady’s loan applications contained false information concerning the dates of operation, gross revenues, costs of goods sold, number of employees, and amount of payroll related to the businesses. Cannady was ordered to make restitution to the Small Business Administration in the amount of $346,882.13.

“Those who exploit health care programs for personal gain will be held accountable to the fullest extent of the law,” said Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) Nashville Field Office. “Health care fraud is a priority for the FBI, and we will continue to work with our partners to investigate those who prioritize greed over the well-being of others.”

Interim United States Attorney Joseph C. Murphy, Jr. and Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the United States. Assistant United States Attorney Christopher Cotten and former Assistant United States Attorneys Courtney Lewis and Murrell Foster also assisted in the prosecution of this case. The FBI Nashville Field Office – Memphis Resident Agency and the Tennessee Bureau of Investigation investigated this case.

###

For more information, please contact the media relations team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

MIL Security OSI –

April 24, 2025

MIL-OSI Security: Three Members of the Highs Street Gang Convicted of RICO Conspiracy and Premeditated Murder

Source: Office of United States Attorneys

MINNEAPOLIS – Following a three-week trial, a federal jury in Minneapolis convicted three Minnesota men today of RICO Conspiracy and Premediated Murder for their involvement in the violent Minneapolis criminal street gang known as the Highs and the August 7, 2021, gang-related murder of Darryl Wells.

“Minneapolis criminal street gangs have inflicted devastating harm on our community for far too long. Three years ago, the U.S. Attorney’s Office announced our federal violent crime initiative to address the skyrocketing and completely unacceptable rates of violent crime in Minnesota,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “Since then, we have brought large RICO cases against three criminal street gangs—charging them as the violent enterprises they are. Make no mistake: we will not stop. Criminal street gangs in Minneapolis will continue to see federal justice. The citizens of Minnesota—the many victims of these crimes—deserve no less.”

“These defendants participated in a senseless murder and other acts of violence that terrorized their community,” said Matthew R. Galeotti, Head of the Department’s Criminal Division. “Today’s conviction holds accountable members of a violent gang and shows the Department’s commitment to hold accountable criminal enterprises that use murder and intimidation to exert power. We remain steadfast in our commitment to dismantle violent gangs and secure justice for the victims and their loved ones.”

“This was cold-blooded, calculated violence meant to control through fear,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “They believed violence gave them power — but today’s conviction proves that justice is stronger. The FBI, together with our law enforcement partners, are committed to dismantling these criminal enterprises and holding violent offenders accountable.”

“Today’s conviction sends a strong message that violent street gangs will not be tolerated in our communities,” said Special Agent in Charge Travis Riddle, of the ATF St. Paul Field Division. “Through the power of the RICO statute, ATF agents, in partnership with federal, state, and local law enforcement, have been able to target the violent criminal activity of the Highs gang. This conviction is a direct result of the tireless work by our agents who are committed to dismantling these criminal organizations and ensuring that those who use violence to control neighborhoods are held accountable. ATF will continue to lead efforts to take down street gangs and protect the citizens of Minneapolis.”

“Minneapolis has seen a significant drop in violent crime, especially gun violence, thanks to the outstanding work of MPD officers and our law enforcement partners. Most notably, the U.S. Attorney’s Office has been instrumental in helping us target the small number of individuals driving violence, without causing harm to the broader communities we serve. Together, we’re not just reducing crime — we’re rebuilding trust,” said Minneapolis Police Chief Brian O’Hara.

“Today’s verdict marks a decisive victory in the fight against violent criminal organizations,” said Ramsey E. Covington, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Reducing violence in this community has required a change in tactics and IRS Criminal Investigation special agents are perfectly poised to support our law enforcement partners in this effort. Our agents will continue to apply their financial expertise and investigative skills to bring justice to those who endanger our communities and threaten our way of life.”

According to court documents and evidence presented at trial, Keon Pruitt, 22, Dantrell Johnson, 32, and Gregory Hamilton, 29, each of Minneapolis, were all members of various “cliques” or subsets, of the Highs—a criminal enterprise that controlled territory north of West Broadway Avenue in Minneapolis. Evidence at trial proved that members of the Highs committed murders, narcotics trafficking, weapons violations, burglaries, assaults, and robberies on behalf of the enterprise. As members of the Highs, the defendants were expected to retaliate against the rival Lows gang, which operated south of West Broadway Avenue.

Evidence produced at trial showed that, on August 7, 2021, a prominent Highs member was shot and killed by a Lows member at the Winner gas station, a Highs hangout. The following day, August 8, 2021, Highs members organized a memorial for the deceased member at the gas staF. App’x tion, where they distributed firearms and encouraged one another to retaliate against Lows members for the murder. Defendants Pruitt, Johnson, and Hamilton were all in attendance at the memorial.

Later that day, Johnson and Hamilton drove to a Lows hangout—Wally’s Foods—and shot a Lows associate, who survived his injuries. Approximately two hours later, Johnson, Hamilton, and Pruitt drove to Skyline Market, another known Lows hangout, to shoot another Lows member. They mistakenly believed Darryl Wells was a Lows member and the store’s cameras captured them shooting Wells inside the store. Wells ran from the store and into the street. Pruitt, who was driving two juveniles in a stolen Porsche, let the juveniles out of the car. They then chased Wells into a nearby alley and fired additional shots at him. All told, Wells was shot at least eight times.

The jury convicted Pruitt, Johnson, and Hamilton of Racketeering Influenced and Corrupt Organizations (RICO) Conspiracy and Using a Firearm to Cause Death. Each defendant faces a maximum penalty of life in prison. Their sentencing hearings will be scheduled in the near future.

This is the first of several trials in this case, which charged a total of 28 defendants with RICO Conspiracy, narcotics trafficking, firearms offenses, and other charges related to their activities as members and associates of the Highs gang. Sixteen defendants are pending trial.

The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the cases, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation through reports or evidence control. Assistant U.S. Attorneys Thomas Lopez-Calhoun, Albania Concepcion, and Rebecca Kline of the District of Minnesota, and Trial Attorney Brian Lynch of the Justice Department’s Violent Crime & Racketeering Section, tried this case. Assistant U.S. Attorneys Carla Baumel and Trial Attorney Alyssa Levey-Weinstein also worked on the investigation and trial.

MIL Security OSI –

April 24, 2025

MIL-OSI Security: Maryland Man Admits to Leading Drug Trafficking Operation in Eastern Panhandle

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

ELKINS, WEST VIRGINIA – Lenin Erasmo Luna Mota, 52, of Hagerstown, Maryland, has admitted to leading a drug trafficking organization that sold large quantities of fentanyl, heroin, and cocaine in Berkeley County.

According to court documents and statements made in court, Luna Mota, also known as “Papi,” was one of the leaders of the drug trafficking conspiracy, using his business located in Hagerstown, Maryland, as a central hub for the drug sales.

Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.

The FBI; the U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative (agencies included are the West Virginia State Police, Berkeley County Sheriff’s Department, Jefferson County Sherriff’s Department, Ranson Police Department, Charles Town Police Department, and Martinsburg City Police Department); West Virginia State Police; U.S. Customs and Border Protection; the Hagerstown Police Department; the National Resources Police Department; FBI-New York Safe Streets Task Force; the New York Police Department; the New Jersey State Police; the Washington County (Maryland) Drug Task Force; the Maryland State Police; the U.S. Attorney’s Office for the District of Maryland; and the U.S. Attorney’s Office for the Middle District of Pennsylvania investigated.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

U.S. Magistrate Judge Michael John Aloi presided.

MIL Security OSI –

April 24, 2025

MIL-OSI: Precision Drilling Announces 2025 First Quarter Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, April 23, 2025 (GLOBE NEWSWIRE) — This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, gain on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) announces 2025 first quarter results, confirms shareholder return targets, and lowers 2025 capital budget.

Financial Highlights

Revenue in the first quarter was $496 million compared to $528 million realized in the same period last year as strong drilling activity in Canada was offset by lower U.S. drilling activity.
Adjusted EBITDA⁽¹⁾ was $137 million and included $3 million of restructuring costs and $3 million of share-based compensation expense. In 2024, first quarter Adjusted EBITDA⁽¹⁾ was $143 million and included share-based compensation expense of $23 million.
First quarter net earnings attributable to shareholders was $35 million or $2.52 per share and comparable to $37 million or $2.53 per share in 2024. Precision has consistently delivered positive net earnings since mid-2022.
Cash provided by operations during the quarter was $63 million, allowing the Company to repurchase $31 million of common shares and repay $17 million of debt.
Capital expenditures were $60 million and the Company has lowered its 2025 capital budget to $200 million versus the $225 million previously announced.
Precision remains committed to repaying at least $100 million of debt in 2025 and allocating 35% to 45% of free cash flow, before debt repayments, to share buybacks.

Operational Highlights

Canada’s activity averaged 74 drilling rigs in the first quarter and surpassed the 73 active rigs in the same period last year.
Canadian revenue per utilization day was $35,601 and comparable to the $35,596 in the first quarter of 2024.
U.S. activity averaged 30 drilling rigs compared to 38 in the same period last year.
U.S. revenue per utilization day was US$33,157, which included US$1,263 per utilization day for idle but contracted rig revenue, versus US$32,867 in the first quarter of last year.
Internationally, we had eight rigs active in the first quarter, consistent with the first quarter of 2024, and realized revenue of US$36 million compared to US$38 million in 2024.
Service rig operating hours decreased 10% compared to the same quarter last year due to customer project deferrals and impacts of an earlier spring break up in Canada, plus lower U.S. activity.
(1) See “FINANCIAL MEASURES AND RATIOS.”

MANAGEMENT COMMENTARY

“I am pleased with Precision’s first quarter financial and operational results, and particularly with the efforts of the Precision team as we manage our way through a period of unusual volatility and market uncertainty. In the first quarter, our net earnings attributable to shareholders was $35 million, marking 11 consecutive quarters of positive earnings, and we are well on our way to meeting our capital allocation targets. During the quarter, we generated $63 million of cash provided by operations, allowing us to repay $17 million of debt and purchase $31 million of shares. Over the last four quarters, Precision has reduced its outstanding shares by nearly one million shares, representing 7% of our outstanding balance.

“During the first quarter our Canadian drilling activity remained slightly higher than last year, averaging 74 active rigs compared to 73 in 2024 and we expect this trend to continue through the first half of this year. In the U.S., we have modestly increased our activity levels from the fourth quarter, currently operating 34 rigs, primarily by capitalizing on the emerging opportunities in natural gas plays. With initial Liquefied Natural Gas (LNG) exports beginning shortly in Canada and significant LNG export capacity expansion underway in the U.S., we believe our market positioning for these increasing LNG opportunities is constructive.

“Second-half industry activity in North America will depend largely on customer realized cash flows and their capital allocation priorities. We believe industry capital discipline will remain a stabilizing market feature muting our customers’ short-term response to volatile commodity prices. However, global events and conflicts, including unexpected OPEC+ production increases, trade and tariff uncertainty, and geopolitical conflicts have the potential to impact global economic growth and access to commodity supplies, creating a range of commodity price scenarios which are difficult to predict.

“Tightly controlling all aspects of our business, adjusting spending and specifically managing Precision’s cash inflows and outflows at a pace that matches the cyclicality of our industry is a cornerstone of Precision’s business model. We are reducing our 2025 capital spending by $25 million to $200 million to mitigate increased market uncertainty and a potential reduction in customer demand. This includes trimming our expected upgrade spending by approximately $8 million and maintenance capital by $17 million. We remain poised to further adjust capital spending in response to actual customer demand.

“We have also reduced our fixed costs by approximately $10 million annually by streamlining our internal structure and focusing more directly on customer needs and aligning with current activity levels. These changes included flattening our operations leadership structure, exiting our North Dakota well-servicing business and reducing the related staffing levels.

“Our International drilling operations and Completion and Production business both contributed meaningful free cash flow for the quarter, and this is expected to continue for the rest of the year.

“With a predominantly variable cost business and low debt levels, a highly experienced team committed to serving our customers, and a high-performance rig fleet, Precision is better positioned than any time in the past decade to navigate uncertainty while simultaneously creating shareholder value,” concluded Mr. Neveu.

SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

	For the three months ended March 31,
(Stated in thousands of Canadian dollars, except per share amounts)		2025		2024		% Change
Revenue		496,331		527,788			(6.0	)
Adjusted EBITDA⁽¹⁾		137,497		143,149			(3.9	)
Net earnings		34,947		36,516			(4.3	)
Net earnings attributable to shareholders		34,511		36,516			(5.5	)
Cash provided by operations		63,419		65,543			(3.2	)
Funds provided by operations⁽¹⁾		109,842		117,765			(6.7	)

Cash used in investing activities		57,202		75,237			(24.0	)
Capital spending by spend category⁽¹⁾
Expansion and upgrade		19,546		14,370			36.0
Maintenance and infrastructure		40,419		41,157			(1.8	)
Proceeds on sale		(3,765	)	(5,186	)		(27.4	)
Net capital spending⁽¹⁾		56,200		50,341			11.6

Net earnings attributable to shareholders per share :
Basic		2.52		2.53			(0.4	)
Diluted		2.20		2.53			(13.0	)
Weighted average shares outstanding:
Basic		13,683		14,407			(5.0	)
Diluted		14,287		14,410			(0.9	)

(1) See “FINANCIAL MEASURES AND RATIOS.”

Operating Highlights

	For the three months ended March 31,
	2025		2024		% Change
Contract drilling rig fleet		215		214		0.5
Drilling rig utilization days:
Canada		6,680		6,617		1.0
U.S.		2,691		3,453		(22.1	)
International		720		728		(1.1	)
Revenue per utilization day:
Canada (Cdn$)		35,601		35,596		0.0
U.S. (US$)		33,157		32,867		0.9
International (US$)		49,419		52,808		(6.4	)
Operating costs per utilization day:
Canada (Cdn$)		20,822		19,959		4.3
U.S. (US$)		23,568		21,719		8.5

Service rig fleet		153		183		(16.4	)
Service rig operating hours		66,986		74,505		(10.1	)

Drilling Activity

	Average for the quarter ended 2024								Average for the quarter ended 2025
	Mar. 31		June 30		Sept. 30		Dec. 31			Mar. 31
Average Precision active rig count⁽¹⁾:
Canada		73		49		72		65			74
U.S.		38		36		35		34			30
International		8		8		8		8			8
Total		119		93		115		107			112

(1) Average number of drilling rigs working or moving.

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	March 31, 2025			December 31, 2024
Working capital⁽¹⁾		(45,033	)		162,592
Cash		28,245			73,771
Long-term debt		567,824			812,469
Total long-term financial liabilities⁽¹⁾		632,369			888,173
Total assets		2,915,984			2,956,315
Long-term debt to long-term debt plus equity ratio⁽¹⁾		0.25			0.33

(1) See “FINANCIAL MEASURES AND RATIOS.”

Summary for the three months ended March 31, 2025:

Revenue was $496 million compared to $528 million in the first quarter of 2024 as strong drilling activity in Canada was offset by lower U.S. drilling activity.
Adjusted EBITDA decreased to $137 million from $143 million, primarily due to lower drilling activity in the U.S. and restructuring costs of $3 million that were partially offset by lower share-based compensation expense. Please refer to “Other Items” later in this news release for additional information on share-based compensation.
Adjusted EBITDA as a percentage of revenue was relatively stable at 28% compared to 27% in 2024.
Net earnings attributable to shareholders was $35 million or $2.52 per share and comparable with $37 million or $2.53 per share for the same period last year. On a diluted basis, net earnings attributable to shareholders was $2.20 versus $2.53 in 2024.
Cash provided by operations was $63 million, allowing the Company to repurchase 408,973 shares for $31 million, reduce debt by $17 million by repaying the outstanding balance on the Senior Credit Facility, and end the quarter with $28 million of cash and almost $550 million of available liquidity.
In Canada, revenue per utilization day was $35,601, consistent with the first quarter of 2024. Canadian operating costs per utilization day increased 4% to $20,822, mainly due to wage increases and Super Single rig reactivations. First quarter revenue and operating costs per utilization day were consistent with the fourth quarter of 2024.
In the U.S. revenue per utilization day, excluding idle but contracted rig revenue of US$1,263, was US$31,894 compared with US$32,867 in the first quarter of last year. First quarter revenue per utilization day, excluding idle but contracted rig revenue, increased by 4% from the fourth quarter of 2024.
U.S. operating costs per utilization day increased 9% to US$23,568 compared to the same quarter last year due to higher mobilization costs, additional rig reactivations, and fixed costs being spread over fewer activity days. These same factors caused operating costs per utilization per day in the first quarter to rise 9% compared to the fourth quarter of 2024.
Internationally, we realized revenue of US$36 million from eight active drilling rigs, which is similar to the US$38 million generated in the first quarter of 2024.
Completion and Production Services revenue was $79 million, a decrease of $8 million from 2024, as service rig operating hours decreased 10% due to a number of customer project deferrals and an earlier spring break up in Canada, plus less activity in the U.S. Adjusted EBITDA was $18 million, representing 22% of revenue compared to 21% in the first quarter of 2024.
General and administrative expenses were $30 million compared with $45 million in the first quarter of 2024 primarily due to lower share-based compensation expense.
Capital expenditures increased slightly to $60 million versus $56 million in 2024 and by spend category included $40 million for the maintenance of existing assets, infrastructure, and intangible assets and $20 million for expansion and upgrades. Precision has lowered its 2025 capital budget to $200 million.

STRATEGY

Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year.

Precision’s 2025 strategic priorities and the progress made during the first quarter are as follows:

Maximize free cash flow through disciplined capital deployment and strict cost management.
- Generated cash from operations of $63 million, allowing the Company to reduce debt and buy back shares.
- Proactively reduced fixed cost structure to address market uncertainty and expect to realize approximately $10 million in annual savings.
- Reduced our 2025 capital budget to $200 million versus the $225 million previously announced.
Enhance shareholder returns through debt reduction and share repurchases. Plan to reduce debt by at least $100 million and allocate 35% to 45% of free cash flow before debt repayments for share repurchases.
- Returned $31 million of capital to shareholders by repurchasing 408,973 shares during the quarter.
- Reduced debt by $17 million and ended the quarter with almost $550 million of available liquidity.
- Remain committed to reducing debt by at least $100 million in 2025 and allocating 35% to 45% of free cash flow, before debt repayments, directly to shareholders.
Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions.
- Increased Canadian rig utilization, averaging 74 active rigs for the first quarter versus 73 in 2024.
- Maintained strong pricing in Canada with revenue per utilization per day of $35,601, aligning with an average day rate of $35,596 in the first quarter of 2024.
- Invested $20 million in expansion and upgrade capital to enhance our drilling rigs.
- Current market conditions and commodity price volatility make acquisitions less likely in the near term.

OUTLOOK

Near-term expectations for global energy demand growth have been tempered by several geopolitical events including OPEC+ easing of curtailments, trade policy uncertainty, and international conflicts. However, we believe the long-term fundamentals for energy demand are positive, driven by economic growth, increasing demand from emerging economies, and new energy sources of power demand.

In Canada, the Trans Mountain pipeline expansion, which became operational in May of 2024, combined with the imminent startup of LNG Canada will provide significant tidewater access for Canadian crude oil and natural gas, supporting Canadian drilling activity. In the U.S., the next wave of LNG export terminals is expected to add approximately 13 bcf/d of export capacity over the next five years, supporting U.S. natural gas drilling activity beyond domestic demand growth and further supporting natural gas drilling.

Our Canadian drilling activity peaked at 82 rigs in the first quarter with our Super Triple and Super Single rigs near full utilization. We expect the traditional spring breakup period this year to have a historically small impact on our activity, as strong demand for our growing fleet of pad-capable rigs should allow 45 to 48 rigs to continue operating during this period versus 43 last year. Despite trade and tariff uncertainty and oil prices falling to approximately US$60 per barrel, we have not experienced any meaningful change in customer demand or their longer-term plans. Overall, we expect our Canadian drilling activity to be up for the first half of the year compared to the first six months of 2024.

In the U.S., we have modestly increased our activity levels from the fourth quarter, currently operating 34 rigs, primarily by capitalizing on the emerging opportunities in natural gas plays. With significant LNG export capacity expansion underway in the U.S., we believe our market positioning for these increasing LNG opportunities is constructive.

North American industry activity in the second half of this year will depend largely on customer realized cash flows and their capital allocation priorities. We believe industry capital discipline will remain a stabilizing market feature muting our customers’ short-term response to volatile commodity prices. However, global events and conflicts, including unexpected OPEC+ production increases, trade and tariff uncertainty, and geopolitical conflicts have the potential to impact global economic growth and access to commodity supplies, creating a range of commodity price scenarios which are difficult to predict.

Internationally, we have eight rigs on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years. In May and for the remainder of the year, we expect seven active rigs compared to eight for the first four months of the year but with no material impact on our 2025 cash flow. We continue to look for opportunities to leverage our international expertise.

As the premier well service provider in Canada, the outlook for this business remains strong, driven by increased takeaway capacity from Trans Mountain pipeline expansion and LNG Canada, and increased regulatory spending requirements for abandonment work. With continued labour constraints, we expect firm pricing into the foreseeable future.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at April 23, 2025. For those quarters ending after March 31, 2025, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

As at April 23, 2025	Average for the quarter ended 2024								Average		Average for the quarter ended 2025								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2024		Mar. 31		June 30		Sept. 30		Dec. 31		2025
Average rigs under term contract:
Canada		24		22		23		23		23		20		19		18		14		18
U.S.		20		17		17		16		18		16		15		11		8		13
International		8		8		8		8		8		8		7		7		7		7
Total		52		47		48		47		49		44		41		36		29		38

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended March 31,
(Stated in thousands of Canadian dollars, except where noted)		2025		2024		% Change
Revenue		419,457		443,367			(5.4	)
Expenses:
Operating		272,412		276,692			(1.5	)
General and administrative		11,029		13,002			(15.2	)
Adjusted EBITDA⁽¹⁾		136,016		153,673			(11.5	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		32.4	%	34.7	%

(1) See “FINANCIAL MEASURES AND RATIOS.”

Canadian onshore drilling statistics:⁽¹⁾

2025

2024

Precision

Industry⁽²⁾

Precision

Industry⁽²⁾

Average number of active land rigs for quarters ended:

March 31

74

214

73

208

(1) Canadian operations only.
(2) Baker Hughes rig counts.

United States onshore drilling statistics:⁽¹⁾

2025

2024

Precision

Industry⁽²⁾

Precision

Industry⁽²⁾

Average number of active land rigs for quarters ended:

March 31

30

572

38

602

(1) United States lower 48 operations only.
(2) Baker Hughes rig counts.

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended March 31,
(Stated in thousands of Canadian dollars, except where noted)		2025		2024		% Change
Revenue		79,330		87,087			(8.9	)
Expenses:
Operating		59,112		65,480			(9.7	)
General and administrative		2,672		3,002			(11.0	)
Adjusted EBITDA⁽¹⁾		17,546		18,605			(5.7	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		22.1	%	21.4	%
Well servicing statistics:
Number of service rigs (end of period)		153		183			(16.4	)
Service rig operating hours		66,986		74,505			(10.1	)

(1) See “FINANCIAL MEASURES AND RATIOS.”

OTHER ITEMS

Share-based Incentive Compensation Plans

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2024 Annual Report.

A summary of expense amounts under these plans during the reporting periods are as follows:

	For the three months ended March 31,
(Stated in thousands of Canadian dollars)	2025		2024
Cash settled share-based incentive plans		403		21,759
Equity settled share-based incentive plans		2,427		875
Total share-based incentive compensation plan expense		2,830		22,634

Allocated:
Operating		1,128		5,252
General and Administrative		1,702		17,382
		2,830		22,634

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

We reference certain additional Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS Accounting Standards to assess performance because we believe they provide useful supplemental information to investors.

Adjusted EBITDA

We believe Adjusted EBITDA (earnings before income taxes, gain on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

The most directly comparable financial measure is net earnings.

	For the three months ended March 31,
(Stated in thousands of Canadian dollars)		2025		2024
Adjusted EBITDA by segment:
Contract Drilling Services		136,016		153,673
Completion and Production Services		17,546		18,605
Corporate and Other		(16,065	)	(29,129	)
Adjusted EBITDA		137,497		143,149
Depreciation and amortization		75,036		78,213
Gain on asset disposals		(2,872	)	(3,237	)
Foreign exchange		367		394
Finance charges		15,760		18,369
Gain on investments and other assets		(49	)	(228	)
Income taxes		14,308		13,122
Net earnings		34,947		36,516
Non-controlling interests		436		—
Net earnings attributable to shareholders		34,511		36,516

Funds Provided by (Used in) Operations

We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances.

The most directly comparable financial measure is cash provided by (used in) operations.

Net Capital Spending

We believe net capital spending is a useful measure as it provides an indication of our primary investment activities.

The most directly comparable financial measure is cash provided by (used in) investing activities.

Net capital spending is calculated as follows:

	For the three months ended March 31,
(Stated in thousands of Canadian dollars)		2025		2024
Capital spending by spend category
Expansion and upgrade		19,546		14,370
Maintenance, infrastructure and intangibles		40,419		41,157
		59,965		55,527
Proceeds on sale of property, plant and equipment		(3,765	)	(5,186	)
Net capital spending		56,200		50,341
Purchase of investments and other assets		11		—
Receipt of finance lease payments		(208	)	(191	)
Changes in non-cash working capital balances		1,199		25,087
Cash used in investing activities		57,202		75,237

Working Capital

We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Working capital is calculated as follows:

	March 31,			December 31,
(Stated in thousands of Canadian dollars)		2025			2024
Current assets		481,111			501,284
Current liabilities		(526,144	)		(338,692	)
Working capital		(45,033	)		162,592

Total Long-term Financial Liabilities

We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Total long-term financial liabilities is calculated as follows:

	March 31,			December 31,
(Stated in thousands of Canadian dollars)		2025			2024
Total non-current liabilities		688,940			935,624
Deferred tax liabilities		(56,571	)		(47,451	)
Total long-term financial liabilities		632,369			888,173

Non-GAAP Ratios
We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
*Adjusted EBITDA % of Revenue*	We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.
*Long-term debt to long-term debt plus equity*	We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage. For the period ended March 31, 2025 long-term debt includes long-term debt plus current portion of long-term debt as reported in our Consolidated Interim Consolidated Statements of Financial Position.
*Net Debt to Adjusted EBITDA*	We believe that the Net Debt (long-term debt plus current portion of long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations. For the period ended March 31, 2025 long-term debt includes long-term debt plus current portion of long-term debt as reported in our Consolidated Interim Consolidated Statements of Financial Position.
Supplementary Financial Measures
We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
*Capital Spending by Spend Category*	We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

In particular, forward-looking information and statements include, but are not limited to, the following:

our strategic priorities for 2025;
our capital expenditures, free cash flow allocation and debt reduction plans for 2025 and beyond;
anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2025;
the average number of term contracts in place for 2025;
customer adoption of Alpha™ technologies and EverGreen™ suite of environmental solutions;
potential commercial opportunities and rig contract renewals; and
our future debt reduction plans.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
the status of current negotiations with our customers and vendors;
customer focus on safety performance;
existing term contracts are neither renewed nor terminated prematurely;
our ability to deliver rigs to customers on a timely basis;
the impact of an increase/decrease in capital spending; and
the general stability of the economic and political environments in the jurisdictions where we operate.

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

volatility in the price and demand for oil and natural gas;
fluctuations in the level of oil and natural gas exploration and development activities;
fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
liquidity of the capital markets to fund customer drilling programs;
availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
the impact of weather and seasonal conditions on operations and facilities;
the impact of tariffs and trade disputes;
competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
ability to improve our rig technology to improve drilling efficiency;
general economic, market or business conditions;
the availability of qualified personnel and management;
a decline in our safety performance which could result in lower demand for our services;
changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
fluctuations in foreign exchange, interest rates and tax rates; and
other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2024, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash	$	28,245		$	73,771
Accounts receivable		397,684			378,712
Inventory		49,176			43,300
Assets held for sale		6,006			5,501
Total current assets		481,111			501,284
Non-current assets:
Deferred tax assets		2,437			6,559
Property, plant and equipment		2,342,482			2,356,173
Intangibles		13,537			12,997
Right-of-use assets		63,223			66,032
Finance lease receivables		4,670			4,806
Investments and other assets		8,524			8,464
Total non-current assets		2,434,873			2,455,031
Total assets	$	2,915,984		$	2,956,315

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	271,696		$	314,355
Income taxes payable		4,526			3,778
Current portion of lease obligations		19,703			20,559
Current portion of long-term debt		230,219			—
Total current liabilities		526,144			338,692

Non-current liabilities:
Share-based compensation		5,391			13,666
Provisions and other		7,478			7,472
Lease obligations		51,676			54,566
Long-term debt		567,824			812,469
Deferred tax liabilities		56,571			47,451
Total non-current liabilities		688,940			935,624
Equity:
Shareholders’ capital		2,287,422			2,301,729
Contributed surplus		77,011			77,557
Accumulated other comprehensive income		197,827			199,020
Deficit		(866,323	)		(900,834	)
Total equity attributable to shareholders		1,695,937			1,677,472
Non-controlling interest		4,963			4,527
Total equity		1,700,900			1,681,999
Total liabilities and equity	$	2,915,984		$	2,956,315

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)

	Three Months Ended March 31,
(Stated in thousands of Canadian dollars, except per share amounts)	2025			2024


Revenue	$	496,331		$	527,788
Expenses:
Operating		329,068			339,506
General and administrative		29,766			45,133
Earnings before income taxes, gain on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		137,497			143,149
Depreciation and amortization		75,036			78,213
Gain on asset disposals		(2,872	)		(3,237	)
Foreign exchange		367			394
Finance charges		15,760			18,369
Gain on investments and other assets		(49	)		(228	)
Earnings before income taxes		49,255			49,638
Income taxes:
Current		1,106			1,017
Deferred		13,202			12,105
		14,308			13,122
Net earnings	$	34,947		$	36,516
Attributable to:
Shareholders of Precision Drilling Corporation	$	34,511		$	36,516
Non-controlling interests	$	436		$	—
Net earnings per share attributable to shareholders of Precision Drilling Corporation:
Basic	$	2.52		$	2.53
Diluted	$	2.20		$	2.53

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Three Months Ended March 31,
(Stated in thousands of Canadian dollars)	2025			2024
Net earnings	$	34,947		$	36,516
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		(658	)		32,253
Foreign exchange loss on net investment hedge with U.S. denominated debt		(535	)		(20,159	)
Comprehensive income	$	33,754		$	48,610
Attributable to:
Shareholders of Precision Drilling Corporation	$	33,318		$	48,610
Non-controlling interests	$	436		$	—

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended March 31,
(Stated in thousands of Canadian dollars)	2025			2024
Cash provided by (used in):
Operations:
Net earnings	$	34,947		$	36,516
Adjustments for:
Long-term compensation plans		3,016			7,451
Depreciation and amortization		75,036			78,213
Gain on asset disposals		(2,872	)		(3,237	)
Foreign exchange		(783	)		728
Finance charges		15,760			18,369
Income taxes		14,308			13,122
Gain on investments and other assets		(49	)		(228	)
Income taxes paid		(321	)		(234	)
Interest paid		(29,637	)		(33,430	)
Interest received		437			495
Funds provided by operations		109,842			117,765
Changes in non-cash working capital balances		(46,423	)		(52,222	)
Cash provided by operations		63,419			65,543

Investments:
Purchase of property, plant and equipment		(59,965	)		(55,527	)
Proceeds on sale of property, plant and equipment		3,765			5,186
Purchase of investments and other assets		(11	)		—
Receipt of finance lease payments		208			191
Changes in non-cash working capital balances		(1,199	)		(25,087	)
Cash used in investing activities		(57,202	)		(75,237	)

Financing:
Repayment of long-term debt		(17,110	)		(716	)
Repurchase of share capital		(30,766	)		(10,081	)
Lease payments		(3,587	)		(3,200	)
Cash used in financing activities		(51,463	)		(13,997	)
Effect of exchange rate changes on cash		(280	)		457
Increase (decrease) in cash		(45,526	)		(23,234	)
Cash, beginning of period		73,771			54,182
Cash, end of period	$	28,245		$	30,948

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income			Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2025	$	2,301,729		$	77,557		$	199,020		$	(900,834	)	$	1,677,472		$	4,527	$	1,681,999
Net earnings for the period		—			—			—			34,511			34,511			436		34,947
Other comprehensive income for the period		—			—			(1,193	)		—			(1,193	)		—		(1,193	)
Settlement of Executive Performance and Restricted Share Units		11,651			(2,790	)		—			—			8,861			—		8,861
Share repurchases		(26,141	)		—			—			—			(26,141	)		—		(26,141	)
Redemption of non-management directors share units		183			(183	)		—			—			—			—		—
Share-based compensation expense		—			2,427			—			—			2,427			—		2,427
Balance at March 31, 2025	$	2,287,422		$	77,011		$	197,827		$	(866,323	)	$	1,695,937		$	4,963	$	1,700,900

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income		Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2024	$	2,365,129		$	75,086		$	147,476	$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662
Net earnings for the period		—			—			—		36,516			36,516			—		36,516
Other comprehensive income for the period		—			—			12,094		—			12,094			—		12,094
Settlement of Executive Performance and Restricted Share Units		21,846			(1,479	)		—		—			20,367			—		20,367
Share repurchases		(10,081	)		—			—		—			(10,081	)		—		(10,081	)
Share-based compensation expense		—			875			—		—			875			—		875
Balance at March 31, 2024	$	2,376,894		$	74,482		$	159,570	$	(975,513	)	$	1,635,433		$	—	$	1,635,433

2025 FIRST QUARTER RESULTS CONFERENCE CALL AND WEBCAST

Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, April 24, 2025.

To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

https://register-conf.media-server.com/register/BIfac587dca2994a30be564b41d99b43ac

The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

https://edge.media-server.com/mmc/p/gifawh57

About Precision

Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

Additional Information

For further information, please contact:

Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500

800, 525 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com

The MIL Network –

April 24, 2025

MIL-OSI USA: High-Ranking Tren de Aragua Member in Custody on Terrorism and International Drug Distribution Charges

Source: US State of North Dakota

A five-count superseding indictment has been unsealed today charging a Venezuelan national and alleged high-ranking member of the designated foreign terrorist organization Tren de Aragua (TdA).

Jose Enrique Martinez Flores also known as “Chuqui,” 24, is charged in the Southern District of Texas (SDTX) with conspiring to provide and providing material support to a designated foreign terrorist organization as well as conspiracy and distribution of cocaine in Colombia intended for distribution in the United States.

“TdA is not a street gang – it is a highly structured terrorist organization that put down roots in our country during the prior administration,” said Attorney General Pamela Bondi. “Today’s charges represent an inflection point in how this Department of Justice will prosecute and ultimately dismantle this evil organization, which has destroyed American families and poisoned our communities.”

“For the past few years, foreign gangs like TdA have more or less been able to enter the country with impunity, coming here to distribute deadly drugs and terrorize American citizens,” said U.S. Attorney Nicholas J. Ganjei for the SDTX. “That ends now. This Department of Justice is committed to uprooting this terrorist gang, dismantling its criminal operations, and either imprisoning its members or removing them from the country. SDTX is proud to lead this fight.”

“TdA is a direct threat to our national security, to our communities, and to Americans,” said FBI Director Kash Patel. “Together with our law enforcement partners, the FBI continues in our pursuit to eliminate this violent terrorist organization from our streets, and today’s announcement makes it clear that these criminals, especially the leaders of these cartels, have no place in our country.”

“This joint Drug Enforcement Administration (DEA)-FBI operation — alongside partners in the United States and Colombia — is further evidence that we must continue to focus our efforts on members of TdA who continue to pump poison into our communities,” said DEA Acting Administrator Derek Maltz. “This is another example of DEA’s tenacity to hunt these networks down, wherever they operate, and crush their evil grip on American lives.”

Colombian authorities arrested Flores in Colombia March 31 pursuant to a provisional arrest warrant the United States had requested. He remains in custody in Colombia pending further proceedings.

A federal grand jury in Houston returned the superseding indictment April 8.

According to the allegations, Flores is charged with one count of conspiring to provide material support to TdA in the form of personnel (including himself) and services and one count of providing material support to TdA. The indictment also alleges one count of international drug distribution conspiracy based on his involvement in the distribution of five kilograms of cocaine or more, and two substantive counts of international drug distribution.

The Department of State designated TdA as a foreign terrorist organization and Specially Designated Global Terrorist Feb. 20.

According to information presented to the court, Flores is a high-ranking TdA leader in Bogota, Colombia, and is part of the inner circle of senior TdA leadership.

Flores also allegedly caused the delivery of approximately five kilograms or more of cocaine for international distribution, proceeds that were used to further TdA’s criminal goals.

If convicted, he faces a maximum penalty of life in prison and a $10 million fine.

The FBI Houston Field Office and DEA conducted the investigation with the assistance of the Houston Police Department, the Harris County Sheriff’s Office, Colombian National Police and the Colombian Attorney General’s Office (Fiscalía General de la Nación). The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of Judicial Attaché in Bogotá, Colombia, provided significant assistance.

Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz of the SDTX are prosecuting the case along with Deputy Director David C. Smith from the Department of Justice’s Joint Task Force Vulcan (JTFV).

JTFV was created in 2019 to eradicate MS-13 and now expanded to target TdA and is comprised of U.S. Attorney’s Offices across the country. Those include SDTX; Southern and Eastern Districts of New York; Northern District of Ohio; Districts of New Jersey, Utah, Massachusetts, Nevada and Alaska; Eastern District of Texas; Southern District of Florida; Eastern District of Virginia; Southern District of California; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; DEA; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Bureau of Alcohol, Tobacco, Forearms and Explosives; U.S. Marshals Service; and the Federal Bureau of Prisons have been essential law enforcement partners with JTFV.

This case is also a part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

April 24, 2025

MIL-OSI: Northfield Bancorp, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

NOTABLE ITEMS FOR THE QUARTER INCLUDE:

DILUTED EARNINGS PER SHARE WERE $0.19 FOR THE CURRENT QUARTER COMPARED TO $0.27 FOR THE TRAILING QUARTER, AND $0.15 FOR THE FIRST QUARTER OF 2024.
- Fourth Quarter 2024 earnings included a gain of $3.4 million, or $0.06 per share, on the sale and consolidation of a branch in December 2024.
NET INTEREST MARGIN INCREASED TO 2.38% FOR THE CURRENT QUARTER AS COMPARED TO 2.18% FOR THE TRAILING QUARTER AND 2.03% FOR THE FIRST QUARTER OF 2024, REFLECTING LOWER FUNDING COSTS AND HIGHER YIELDS ON INTEREST-EARNING ASSETS.
DEPOSITS (EXCLUDING BROKERED) INCREASED $133.6 MILLION, OR 13.8% ANNUALIZED, FROM DECEMBER 31, 2024. COST OF DEPOSITS AT MARCH 31, 2025 WAS 1.94% AS COMPARED TO 1.95% AT DECEMBER 31, 2024.
LOANS DECLINED BY $30.7 MILLION, OR 3.0% ANNUALIZED, FROM DECEMBER 31, 2024, PRIMARILY DUE TO A DECREASE IN MULTIFAMILY LOANS, PARTIALLY OFFSET BY INCREASES IN HOME EQUITY AND CONSTRUCTION AND LAND LOANS.
ASSET QUALITY REMAINS STRONG WITH NON-PERFORMING LOANS TO TOTAL LOANS AT 0.48% AT MARCH 31, 2025 AND 0.51% AT DECEMBER 31, 2024.
THE COMPANY MAINTAINED STRONG LIQUIDITY WITH APPROXIMATELY $1.12 BILLION IN UNPLEDGED AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE-FOR-PLEDGE OF APPROXIMATELY $547 MILLION.
THE BOARD OF DIRECTORS APPROVED A $10.0 MILLION REPURCHASE PLAN ON APRIL 23, 2025. THE PREVIOUSLY APPROVED $5.0 MILLION PLAN WAS COMPLETED DURING THE CURRENT QUARTER AND THE COMPANY REPURCHASED 440,150 SHARES.
CASH DIVIDEND DECLARED OF $0.13 PER SHARE OF COMMON STOCK, PAYABLE ON MAY 21, 2025, TO STOCKHOLDERS OF RECORD AS OF MAY 7, 2025.

WOODBRIDGE, N.J., April 23, 2025 (GLOBE NEWSWIRE) — NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (the “Company”), the holding company for Northfield Bank, reported net income of $7.9 million, or $0.19 per diluted share, for the three months ended March 31, 2025, compared to $11.3 million, or $0.27 per diluted share, for the three months ended December 31, 2024, and $6.2 million, or $0.15 per diluted share, for the three months ended March 31, 2024. The decrease in net income for the three months ended March 31, 2025, compared to the trailing quarter was primarily due to a $3.4 million, or $0.06 per share, gain on sale of property in the trailing quarter. The increase in net income in the current quarter as compared to the first quarter of 2024 was primarily the result of an increase in net interest income, attributable to lower funding costs and higher yields on interest-earning assets, partially offset by an increase in the provision for credit losses on loans.

Commenting on the quarter, Steven M. Klein, the Company’s Chairman and Chief Executive Officer stated, “The Northfield team continued to focus on growing our franchise, deploying our strong capital base, and delivering solid financial performance for the quarter.” Mr. Klein commented further, “We remained focused on serving our communities, and the fundamentals of reducing our funding costs and increasing the yield on our interest-earning assets resulting in higher net interest income and net interest margin.” Mr. Klein further stated, “We remain committed to prudently managing our operating expenses, maintaining strong asset quality, and managing our strong capital levels through dividends and stock repurchases.”

Mr. Klein concluded, “I am pleased to announce that the Board of Directors has declared a cash dividend of $0.13 per common share, payable on May 21, 2025 to stockholders of record on May 7, 2025.”

Results of Operations

Comparison of Operating Results for the Three Months Ended March 31, 2025 and 2024

Net income was $7.9 million and $6.2 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Significant variances from the comparable prior year period are as follows: a $3.9 million increase in net interest income, a $2.2 million increase in the provision for credit losses on loans, a $359,000 decrease in non-interest income, an $897,000 decrease in non-interest expense, and a $616,000 increase in income tax expense.

Net interest income for the three months ended March 31, 2025, increased $3.9 million, or 14.0%, to $31.8 million, from $27.9 million for the three months ended March 31, 2024, due to a $2.5 million decrease in interest expense and a $1.4 million increase in interest income. The decrease in interest expense was primarily due to a decrease in the cost of interest-bearing liabilities which decreased by 15 basis points to 2.74% for the three months ended March 31, 2025, from 2.89% for the three months ended March 31, 2024, driven by a 20 basis point decrease in the cost of borrowed funds to 3.67% from 3.87%, partially offset by a two basis point increase in the cost of interest-bearing deposits to 2.51% from 2.49%, due to a higher concentration of certificates of deposit. The decrease in the average balance of interest-bearing liabilities was primarily due to a $413.6 million, or 37.3% decrease in the average balance of borrowed funds, partially offset by a $307.8 million, or 9.9%, increase in the average balance of interest-bearing deposits. The increase in interest income was primarily due to a 23 basis point increase in the yield on interest-earning assets, specifically higher yields on mortgage-backed securities, partially offset by a $104.0 million, or 1.9%, decrease in the average balance of interest earning assets. The decrease in the average balance of interest-earning assets was primarily due to decreases in the average balance of other securities of $273.9 million, the average balance of loans of $167.4 million and the average balance of interest-earning deposits in financial institutions of $143.9 million, partially offset by an increase in the average balance of mortgage-backed securities of $483.9 million.

Net interest margin increased by 35 basis points to 2.38% for the three months ended March 31, 2025, from 2.03% for the three months ended March 31, 2024. The increase in net interest margin was primarily due to higher yields on mortgage-backed securities, coupled with a decrease in the cost of borrowed funds. The Company accreted interest income related to purchased credit-deteriorated (“PCD”) loans of $223,000 for the three months ended March 31, 2025, as compared to $426,000 for the three months ended March 31, 2024. Net interest income for the three months ended March 31, 2025, included loan prepayment income of $245,000 as compared to $351,000 for the three months ended March 31, 2024.

The provision for credit losses on loans increased by $2.2 million to $2.6 million for the three months ended March 31, 2025, compared to $415,000 for the three months ended March 31, 2024, primarily due to higher net charge-offs, changes in model assumptions, including a reduction in prepayment speeds and an increase in loss given defaults in the multifamily loans related to risk rating downgrades of certain loans in the portfolio. Net charge-offs were $2.8 million for the three months ended March 31, 2025, primarily due to $2.4 million in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $911,000 for the three months ended March 31, 2024. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio, which totaled $25.5 million at March 31, 2025.

Non-interest income decreased by $359,000, or 10.6%, to $3.0 million for the three months ended March 31, 2025, compared to $3.4 million for the three months ended March 31, 2024. The decrease was primarily due to a decrease of $998,000 in gains on sales of trading securities, partially offset by an increase in income on bank-owned life insurance of $675,000, primarily related to the exchange of certain policies late in the fourth quarter of 2024 which have higher yields. Losses on trading securities in the three months ended March 31, 2025, were $299,000, as compared to gains of $699,000 in the three months ended March 31, 2024. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the plan. The participants of this plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the plan.

Non-interest expense decreased $897,000, or 4.0%, to $21.4 million for the three months ended March 31, 2025, compared to $22.3 million for the three months ended March 31, 2024. The decrease was primarily due to a $990,000 decrease in employee compensation and benefits, primarily attributable to a decrease in deferred compensation expense, which is described above, and had no effect on net income. Additionally, there was a $268,000 decrease in advertising expense. Partially offsetting the decreases were increases of $263,000 in professional fees related to outsourced audit services and recruitment fees and $164,000 in other expense.

The Company recorded income tax expense of $2.9 million for the three months ended March 31, 2025, compared to $2.3 million for the three months ended March 31, 2024. The effective tax rate for both the three months ended March 31, 2025, and March 31, 2024, was 27.0%. The effective tax rate for three months ending March 31, 2025, and March 31, 2024, were negatively impacted by increased tax expense of $79,000 and $18,000, respectively, as a result of vesting of stock awards.

Comparison of Operating Results for the Three Months Ended March 31, 2025 and December 31, 2024

Net income was $7.9 million and $11.3 million for the quarters ended March 31, 2025, and December 31, 2024, respectively. Significant variances from the prior quarter are as follows: a $2.1 million increase in net interest income, a $640,000 increase in the provision for credit losses on loans, a $4.0 million decrease in non-interest income, a $613,000 increase in non-interest expense, and a $246,000 increase in income tax expense.

Net interest income for the quarter ended March 31, 2025, increased by $2.1 million, or 7.1%, primarily due to a $1.7 million decrease in interest expense and a $370,000 increase in interest income. The decrease in interest expense was primarily due to an 11 basis point decrease in the cost of interest-bearing liabilities to 2.74% for the quarter ended March 31, 2025, from 2.85% for the quarter ended December 31, 2024, and a $7.0 million, or 0.2%, decrease in the average balance of interest-bearing liabilities attributable to an $80.4 million decrease in the average balance of borrowed funds, partially offset by a $73.3 million increase in the average balance of interest-bearing deposits. The increase in interest income was primarily due to an 11 basis point increase in the yield on interest-earning assets and a $206,000 increase in the average balance of interest-earning assets primarily due to an increase in the average balance of mortgage-backed securities of $182.4 million, partially offset by decreases in the average balance of interest-earning deposits in financial institutions of $85.2 million, the average balance of other securities of $59.4 million, and the average balance of loans of $37.5 million.

Net interest margin increased by 20 basis points to 2.38% for the quarter ended March 31, 2025, from 2.18% for the quarter ended December 31, 2024, primarily due to higher yields on loans and mortgage-backed securities coupled with a decrease in the cost of funds. Net interest income for the quarter ended March 31, 2025, included loan prepayment income of $245,000 as compared to $215,000 for the quarter ended December 31, 2024. The Company accreted interest income related to PCD loans of $223,000 for the quarter ended March 31, 2025, as compared to $568,000 for the quarter ended December 31, 2024.

The provision for credit losses on loans increased by $640,000 to $2.6 million for the quarter ended March 31, 2025, from $1.9 million for the quarter ended December 31, 2024. The increase in the provision for the current quarter was primarily due to an increase in reserves in the commercial and industrial and in multifamily loans related to risk rating downgrades of certain loans in the portfolio, and higher net charge-offs. Net charge-offs were $2.8 million for the quarter ended March 31, 2025, as compared to net charge-offs of $2.0 million for the quarter ended December 31, 2024.

Non-interest income decreased by $4.0 million, or 56.9%, to $3.0 million for the quarter ended March 31, 2025, from $7.0 million for the quarter ended December 31, 2024. The decrease was primarily due to a $3.4 million gain on sale of property in the quarter ended December 31, 2024. Additionally, there was a $367,000 decrease in gains on sales of trading securities, net, and a $561,000 decrease in other income, primarily due to lower swap fee income. For the quarter ended March 31, 2025, losses on trading securities, net, were $299,000, compared to gains of $68,000 for the quarter ended December 31, 2024. Partially offsetting the decreases was a $362,000 increase in income on bank owned life insurance, primarily related to the exchange of certain policies late in the fourth quarter of 2024 which have higher yields.

Non-interest expense increased by $613,000, or 2.9%, to $21.4 million for the quarter ended March 31, 2025, from $20.8 million for the quarter ended December 31, 2024. The increase was primarily due to increases of $280,000 in occupancy expense, related to higher repairs and maintenance costs, $201,000 in data processing costs due to an increase in core system expenses, $310,000 in professional fees primarily due to an increase in outsourced audit services and recruitment fees, and a $158,000 increase in credit loss expense/(benefit) for off-balance sheet exposure. The increase in credit loss/(benefit) for off-balance sheet exposure was due to a provision of $103,000 recorded during the quarter ended March 31, 2025, as compared to a benefit of $55,000 recorded during the quarter ended December 31, 2024. Partially offsetting the decreases was a $283,000 decrease in other expense.

The Company recorded income tax expense of $2.9 million for the quarter ended March 31, 2025, compared to $2.7 million for the quarter ended December 31, 2024. The effective tax rate for the quarter ended March 31, 2025 was 27.0%, compared to 19.2% for the quarter ended December 31, 2024. The effective tax rate for the quarter ending December 31, 2024, was positively impacted by the revaluation of certain state deferred tax assets.

Financial Condition

Total assets increased by $43.6 million, or 0.8%, to $5.71 billion at March 31, 2025, from $5.67 billion at December 31, 2024. The increase was primarily due to an increase in available-for-sale debt securities of $145.7 million, or 13.2%, partially offset by decreases in cash and cash equivalents of $66.1 million, or 39.4%, loans receivable of $30.7 million, or 0.8% and other assets of $4.5 million, or 9.6%.

Cash and cash equivalents decreased by $66.1 million, or 39.4%, to $101.7 million at March 31, 2025, from $167.7 million at December 31, 2024, as excess liquidity was deployed into purchasing higher-yielding mortgage-backed securities. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities.

Loans held-for-investment, net, decreased by $30.7 million, or 0.8%, to $3.99 billion at March 31, 2025 from $4.02 billion at December 31, 2024, primarily due to decreases in multifamily real estate loans, partially offset by increases in home equity and lines of credit and construction and land loans. The decrease in loan balances reflects the Company’s continued strategic focus on managing concentration risk within its commercial and multifamily real estate loan portfolios, while maintaining disciplined loan pricing. Multifamily loans decreased $29.6 million, or 1.1%, to $2.57 billion at March 31, 2025 from $2.60 billion at December 31, 2024, commercial real estate loans decreased $7.2 million, or 0.8%, to $882.6 million at March 31, 2025 from $889.8 million at December 31, 2024, one-to-four family residential loans decreased $3.4 million, or 2.3%, to $146.8 million at March 31, 2025 from $150.2 million at December 31, 2024, and commercial and industrial loans decreased $1.3 million, or 0.8%, to $162.1 million at March 31, 2025 from $163.4 million at December 31, 2024, and other loans decreased $754,000, or 34.8%, to $1.4 million at March 31, 2025 from $2.2 million at December 31, 2024. Partially offsetting these decreases were increases in home equity and lines of credit of $7.3 million, or 4.2%, to $181.4 million at March 31, 2025 from $174.1 million at December 31, 2024, and construction and land loans of $4.4 million, or 12.2%, to $40.3 million at March 31, 2025 from $35.9 million at December 31, 2024.

As of March 31, 2025, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 424%. Management believes that Northfield Bank (the “Bank”) maintains appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which includes monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company’s ability to pay dividends, and overall profitability.

Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York State subject to some form of rent regulation limiting rent increases for rent stabilized multifamily properties. At March 31, 2025, office-related loans represented $182.4 million, or 4.6% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 59%. Approximately 39% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are: 50.0% in New York, 48.5% in New Jersey and 1.5% in Pennsylvania. At March 31, 2025, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $29.5 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms. At March 31, 2025, multifamily loans that have some form of rent stabilization or rent control totaled approximately $435.8 million, or approximately 11% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 51%. At March 31, 2025, our largest rent-regulated loan had a principal balance of $16.7 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.

PCD loans totaled $9.0 million and $9.2 million at March 31, 2025 and December 31, 2024, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $223,000 attributable to PCD loans for three months ended March 31, 2025, compared to $426,000 for three months ended March 31, 2024. PCD loans had an allowance for credit losses of approximately $2.7 million at March 31, 2025.

Loan balances are summarized as follows (dollars in thousands):

	March 31, 2025		December 31, 2024
Real estate loans:
Multifamily	$	2,567,913	$	2,597,484
Commercial mortgage		882,600		889,801
One-to-four family residential mortgage		146,791		150,217
Home equity and lines of credit		181,354		174,062
Construction and land		40,284		35,897
Total real estate loans		3,818,942		3,847,461
Commercial and industrial loans		162,133		163,425
Other loans		1,411		2,165
Total commercial and industrial and other loans		163,544		165,590
Loans held-for-investment, net (excluding PCD)		3,982,486		4,013,051
PCD loans		9,043		9,173
Total loans held-for-investment, net	$	3,991,529	$	4,022,224

The Company’s available-for-sale debt securities portfolio increased by $145.7 million, or 13.2%, to $1.25 billion at March 31, 2025, from $1.10 billion at December 31, 2024. The increase was primarily attributable to purchases of securities, partially offset by paydowns and maturities. At March 31, 2025, $1.21 billion of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $33.4 million in corporate bonds, substantially all of which were investment grade, $683,000 in municipal bonds and $608,000 in U.S. Government agency securities at March 31, 2025. Unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $16.7 million and $307,000, respectively, at March 31, 2025, and $21.8 million and $400,000, respectively, at December 31, 2024.

Equity securities were $10.9 million at March 31, 2025 and $14.3 million at December 31, 2024. Equity securities are primarily comprised of an investment in a Small Business Administration Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program. The decrease in equity securities was primarily due to a decrease in money market mutual funds.

Total liabilities increased $37.2 million, or 0.7%, to $5.00 billion at March 31, 2025, from $4.96 billion at December 31, 2024. The increase was primarily attributable to an increase in borrowings of $42.8 million, partially offset by a decrease in total deposits of $6.5 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity.

Deposits decreased $6.5 million, or 0.2%, to $4.13 billion at March 31, 2025 as compared to $4.14 billion at December 31, 2024. Brokered deposits decreased by $140.1 million, or 53.2%, as the Company placed less reliance on brokered deposits which were used as a lower-cost alternative to borrowings in the trailing quarter. Deposits, excluding brokered deposits, increased $133.6 million, or 3.4%. The increase in deposits, excluding brokered deposits, was primarily attributable to increases of $97.1 million in transaction accounts and $41.6 million in time deposits, partially offset by decreases of $4.5 million in savings accounts, and $579,000 in money market accounts. Growth in transaction accounts and time deposits was primarily due to new municipal relationships and new commercial customer relationships.

Estimated gross uninsured deposits at March 31, 2025 were $1.95 billion. This total includes fully collateralized uninsured governmental deposits and intercompany deposits of $1.01 billion, leaving estimated uninsured deposits of approximately $934.7 million, or 22.6%, of total deposits. At December 31, 2024, estimated uninsured deposits totaled $896.5 million, or 21.7% of total deposits.

Deposit account balances are summarized as follows (dollars in thousands):

	March 31, 2025		December 31, 2024
Transaction:
Non-interest bearing checking	$	722,994	$	706,976
Negotiable orders of withdrawal and interest-bearing checking		1,367,219		1,286,154
Total transaction		2,090,213		1,993,130
Savings and money market:
Savings		899,674		904,163
Money market		271,566		272,145
Total savings		1,171,240		1,176,308
Certificates of deposit:
$250,000 and under		602,959		580,940
Over $250,000		144,255		124,681
Brokered deposits		123,289		263,418
Total certificates of deposit		870,503		969,039
Total deposits	$	4,131,956	$	4,138,477

Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

	March 31, 2025		December 31, 2024

Business customers	$	891,545	$	885,769
Municipal (governmental) customers	$	929,611	$	859,319

Borrowed funds increased to $770.7 million at March 31, 2025, from $727.8 million at December 31, 2024. The increase in borrowings for the period was primarily due to a $67.0 million increase in borrowings under an overnight line of credit, partially offset by a decrease of $24.2 million in other borrowings due to maturities. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies.

The following table sets forth borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at March 31, 2025 (dollars in thousands):

Year	Amount	Weighted Average Rate
2025	$160,684	3.89%
2026	148,000	4.36%
2027	173,000	3.19%
2028	154,288	3.96%
	$635,972	3.83%

Total stockholders’ equity increased by $6.5 million to $711.1 million at March 31, 2025, from $704.7 million at December 31, 2024. The increase was attributable to net income of $7.9 million for the three months ended March 31, 2025, an $8.1 million increase in accumulated other comprehensive income, associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio, and a $900,000 increase in equity award activity, partially offset by $5.0 million in stock repurchases and $5.4 million in dividend payments. On February 26, 2025, the Board of Directors of the Company approved a $5.0 million stock repurchase program. During the three months ended March 31, 2025, the Company repurchased 440,150 of its common stock outstanding at an average price of $11.36 for a total of $5.0 million pursuant to approved stock repurchase plan. As of March 31, 2025, the Company has no outstanding repurchase program.

The Company’s most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the Federal Home Loan Bank and Federal Reserve Bank of New York utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. The Company’s on-hand liquidity ratio as of March 31, 2025 was 24.3%.

The Company had the following primary sources of liquidity at March 31, 2025 (dollars in thousands):

Cash and cash equivalents⁽¹⁾	$	89,139
Corporate bonds⁽²⁾	$	19,323
Multifamily loans⁽²⁾	$	547,043
Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)⁽²⁾	$	1,102,759

(1) Excludes $12.5 million of cash at Northfield Bank.
(2) Represents estimated remaining borrowing potential.

The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. At March 31, 2025, the Company and the Bank’s estimated CBLR ratios were 12.08% and 12.62%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9%.

Asset Quality

The following table details total non-accrual loans (excluding PCD), non-performing assets, loans over 90 days delinquent on which interest is accruing, and accruing loans 30 to 89 days delinquent at March 31, 2025 and December 31, 2024 (dollars in thousands):

	March 31, 2025			December 31, 2024
Non-accrual loans:
Held-for-investment
Real estate loans:
Multifamily	$	2,565		$	2,609
Commercial mortgage		4,565			4,578
Home equity and lines of credit		1,267			1,270
Commercial and industrial		4,972			5,807
Total non-accrual loans		13,369			14,264
Loans delinquent 90 days or more and still accruing:
Held-for-investment
Real estate loans:
Multifamily		—			164
One-to-four family residential		878			882
Home equity and lines of credit		140			140
Total loans held-for-investment delinquent 90 days or more and still accruing		1,018			1,186
Non-performing loans held-for-sale
Commercial mortgage		4,397			4,397
Commercial and industrial		500			500
Total non-performing loans held-for-sale		4,897			4,897
Total non-performing loans		19,284			20,347
Total non-performing assets	$	19,284		$	20,347
Non-performing loans to total loans		0.48	%		0.51	%
Non-performing assets to total assets		0.34	%		0.36	%
Accruing loans 30 to 89 days delinquent	$	6,845		$	9,336

Accruing Loans 30 to 89 Days Delinquent

Loans 30 to 89 days delinquent and on accrual status totaled $6.8 million and $9.3 million at March 31, 2025 and December 31, 2024, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at March 31, 2025 and December 31, 2024 (dollars in thousands):

	March 31, 2025		December 31, 2024
Held-for-investment
Real estate loans:
Multifamily	$	1,296	$	2,831
Commercial mortgage		147		78
One-to-four family residential		2,584		2,407
Home equity and lines of credit		1,141		1,472
Commercial and industrial loans		1,674		2,545
Other loans		3		3
Total delinquent accruing loans held-for-investment	$	6,845	$	9,336

The decrease in delinquent multifamily loans was primarily due to one relationship totaling $2.1 million that became current during the quarter ended March 31, 2025. The decrease in delinquent commercial and industrial loans was primarily due to five unsecured small business loans that were charged off totaling $797,000. Management continues to monitor the unsecured small business commercial and industrial loan portfolio which represents the majority of the commercial and industrial delinquencies in the table above.

PCD Loans (Held-for-Investment)

The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.0 million at March 31, 2025 and $9.2 million at December 31, 2024, respectively) as accruing, even though they may be contractually past due. At March 31, 2025, 2.1% of PCD loans were past due 30 to 89 days, and 25.2% were past due 90 days or more, as compared to 2.9% and 27.1%, respectively, at December 31, 2024.

Our multifamily loan portfolio at March 31, 2025 totaled $2.57 billion, or 64% of our total loan portfolio, of which $435.8 million, or 11%, included loans collateralized by properties in New York with units subject to some percentage of rent regulation. The table below sets forth details about our multifamily loan portfolio in New York (dollars in thousands).

% Rent Regulated	Balance		% Portfolio Total NY Multifamily Portfolio		Average Balance		Largest Loan		LTV^*		Debt Service Coverage Ratio (DSCR)^*	30-89 Days Delinquent		Non-Accrual		Special Mention		Substandard
0	$	279,630	39.1	%	$	1,175	$	16,441	50.6	%	1.48x	$	580	$	499	$	—	$	1,800
>0-10		4,696	0.6			1,565		2,107	50.9		1.33		—		—		—		—
>10-20		18,397	2.6			1,415		2,834	48.7		1.40		—		—		—		—
>20-30		19,268	2.7			2,141		5,449	53.2		1.65		—		—		—		—
>30-40		14,958	2.1			1,247		3,037	47.8		1.59		—		—		—		—
>40-50		21,558	3.0			1,268		2,710	46.9		1.77		—		—		—		—
>50-60		9,298	1.3			1,550		2,313	39.4		1.80		—		—		—		—
>60-70		20,765	2.9			2,966		11,181	53.4		1.51		—		—		—		—
>70-80		22,158	3.1			2,462		4,874	47.5		1.43		—		—		—		—
>80-90		20,516	2.9			1,140		3,124	46.1		1.64		—		—		1,124		—
>90-100		284,164	39.7			1,733		16,698	51.6		1.60		665		2,067		3,630		4,389
Total	$	715,408	100.0	%	$	1,442	$	16,698	50.6	%	1.55x	$	1,245	$	2,566	$	4,754	$	6,189

The table below sets forth our New York rent-regulated loans by county (dollars in thousands).

County	Balance		LTV^*		DSCR^*
Bronx	$	116,944	51.2	%	1.60x
Kings		184,545	50.5	%	1.57
Nassau		2,155	35.8	%	1.88
New York		48,838	46.3	%	1.61
Queens		37,633	44.3	%	1.69
Richmond		32,258	60.1	%	1.41
Westchester		13,405	58.7	%	1.78
Total	$	435,778	50.6	%	1.59x

* Weighted Average

None of the loans that are rent-regulated in New York are interest only. During the remainder of 2025, 27 loans with an aggregate principal balance of $46.0 million will re-price.

About Northfield Bank

Northfield Bank, founded in 1887, operates 37 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

Forward-Looking Statements: This release may contain certain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong. They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, competition and demand for financial services in our market area, fluctuations in real estate values and both residential and commercial real estate market conditions, changes in liquidity, the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, competition among depository and other financial institutions, including with respect to fees and interest rates, changes in laws or government regulations or policies affecting financial institutions, including changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies, changes in the quality and/or composition of our loan and securities portfolios, prepayment speeds, charge-offs and/or credit loss provisions, our ability to access cost-effective funding, changes in the value of our goodwill or other intangible assets, changes in regulatory fees, assessments and capital requirements, inflation and changes in the interest rate environment that reduce our margins, reduce the fair value of financial instruments or reduce our ability to originate loans, the failure to maintain current technologies and to successfully implement future information technology enhancements, cyber security and fraud risks against our information technology and those of our third-party providers, the ability of third-party providers to perform their obligations to us, the effects of war, conflict, and acts of terrorism, our ability to successfully integrate acquired entities, and adverse changes in the securities markets. Consequently, no forward-looking statement can be guaranteed. Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.

Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519

(Tables follow)

NORTHFIELD BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
(Dollars in thousands, except per share amounts) (unaudited)

	At or For the Three Months Ended
	March 31,				December 31
	2025		2024		2024
Selected Financial Ratios:
Performance Ratios ⁽¹⁾
Return on assets (ratio of net income to average total assets)	0.56	%	0.43	%	0.79	%
Return on equity (ratio of net income to average equity)	4.52		3.59		6.40
Average equity to average total assets	12.43		12.04		12.28
Interest rate spread	1.76		1.39		1.54
Net interest margin	2.38		2.03		2.18
Efficiency ratio ⁽²⁾	61.57		71.43		56.75
Non-interest expense to average total assets	1.53		1.55		1.46
Non-interest expense to average total interest-earning assets	1.61		1.63		1.53
Average interest-earning assets to average interest-bearing liabilities	129.42		128.66		129.20
Asset Quality Ratios:
Non-performing assets to total assets	0.34		0.29		0.36
Non-performing loans ⁽³⁾to total loans ⁽⁴⁾	0.48		0.41		0.51
Allowance for credit losses to non-performing loans ⁽⁵⁾	242.73		214.83		227.72
Allowance for credit losses to total loans held-for-investment, net ⁽⁶⁾	0.87		0.89		0.87

(1) Annualized where appropriate.
(2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
(3) Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCD loans), and are included in total loans held-for-investment, net.
(4) Includes originated loans held-for-investment, PCD loans, acquired loans and loans held-for-sale.
(5) Excludes loans held-for-sale.
(6) Includes originated loans held-for-investment, PCD loans, and acquired loans.

NORTHFIELD BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts) (unaudited)

	March 31, 2025			December 31, 2024
ASSETS:
Cash and due from banks	$	12,523		$	13,043
Interest-bearing deposits in other financial institutions		89,139			154,701
Total cash and cash equivalents		101,662			167,744
Trading securities		13,003			13,884
Debt securities available-for-sale, at estimated fair value		1,246,473			1,100,817
Debt securities held-to-maturity, at amortized cost		8,883			9,303
Equity securities		10,855			14,261
Loans held-for-sale		4,897			4,897
Loans held-for-investment, net		3,991,529			4,022,224
Allowance for credit losses		(34,921	)		(35,183	)
Net loans held-for-investment		3,956,608			3,987,041
Accrued interest receivable		19,648			19,078
Bank-owned life insurance		177,398			175,759
Federal Home Loan Bank of New York stock, at cost		38,350			35,894
Operating lease right-of-use assets		27,345			27,771
Premises and equipment, net		21,431			21,985
Goodwill		41,012			41,012
Other assets		42,435			46,932
Total assets	$	5,710,000		$	5,666,378

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits	$	4,131,956		$	4,138,477
Federal Home Loan Bank advances and other borrowings		709,159			666,402
Subordinated debentures, net of issuance costs		61,498			61,442
Lease liabilities		31,630			32,209
Advance payments by borrowers for taxes and insurance		29,270			24,057
Accrued expenses and other liabilities		35,338			39,095
Total liabilities		4,998,851			4,961,682

STOCKHOLDERS’ EQUITY:
Total stockholders’ equity		711,149			704,696
Total liabilities and stockholders’ equity	$	5,710,000		$	5,666,378

Total shares outstanding		42,676,274			42,903,598
Tangible book value per share⁽¹⁾	$	15.70		$	15.46

(1) Tangible book value per share is calculated based on total stockholders’ equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $57 and $69 at March 31, 2025 and December 31, 2024, respectively, and are included in other assets.

NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share and per share amounts) (unaudited)

	For the Three Months Ended
	March 31,					December 31,
		2025			2024		2024
Interest income:
Loans	$	45,283		$	46,047	$	45,902
Mortgage-backed securities		12,009			4,398		9,160
Other securities		797			3,841		1,428
Federal Home Loan Bank of New York dividends		862			970		885
Deposits in other financial institutions		1,141			3,392		2,347
Total interest income		60,092			58,648		59,722
Interest expense:
Deposits		21,191			19,273		22,031
Borrowings		6,291			10,663		7,169
Subordinated debt		819			828		837
Total interest expense		28,301			30,764		30,037
Net interest income		31,791			27,884		29,685
Provision for credit losses		2,582			415		1,942
Net interest income after provision for credit losses		29,209			27,469		27,743
Non-interest income:
Fees and service charges for customer services		1,620			1,615		1,634
Income on bank-owned life insurance		1,639			964		1,277
(Losses)/gains on trading securities, net		(299	)		699		68
Gain on sale of property		—			—		3,402
Other		62			103		623
Total non-interest income		3,022			3,381		7,004
Non-interest expense:
Compensation and employee benefits		11,775			12,765		11,761
Occupancy		3,533			3,553		3,253
Furniture and equipment		414			484		436
Data processing		2,122			2,147		1,921
Professional fees		1,072			809		762
Advertising		250			518		287
Federal Deposit Insurance Corporation insurance		617			588		625
Credit loss expense/(benefit) for off-balance sheet exposures		103			83		(55	)
Other		1,549			1,385		1,832
Total non-interest expense		21,435			22,332		20,822
Income before income tax expense		10,796			8,518		13,925
Income tax expense		2,920			2,304		2,674
Net income	$	7,876		$	6,214	$	11,251
Net income per common share:
Basic	$	0.19		$	0.15	$	0.28
Diluted	$	0.19		$	0.15	$	0.27
Basic average shares outstanding		40,864,529			42,367,243		40,889,355
Diluted average shares outstanding		40,922,829			42,408,953		41,029,275

NORTHFIELD BANCORP, INC.
ANALYSIS OF NET INTEREST INCOME
(Dollars in thousands) (unaudited)

	For the Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
	Average Outstanding Balance		Interest		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate⁽¹⁾
Interest-earning assets:
Loans⁽²⁾	$	4,007,266	$	45,283	4.58	%	$	4,044,787	$	45,902	4.51	%	$	4,174,668	$	46,047	4.44	%
Mortgage-backed securities⁽³⁾		1,132,715		12,009	4.30			950,309		9,160	3.83			648,811		4,398	2.73
Other securities⁽³⁾		118,082		797	2.74			177,462		1,428	3.20			391,980		3,841	3.94
Federal Home Loan Bank of New York stock		36,929		862	9.47			37,065		885	9.50			39,599		970	9.85
Interest-earning deposits in financial institutions		118,983		1,141	3.89			204,146		2,347	4.57			262,884		3,392	5.19
Total interest-earning assets		5,413,975		60,092	4.50			5,413,769		59,722	4.39			5,517,942		58,648	4.27
Non-interest-earning assets		277,586						277,067						266,428
Total assets	$	5,691,561					$	5,690,836					$	5,784,370

Interest-bearing liabilities:
Savings, NOW, and money market accounts	$	2,502,664	$	12,148	1.97	%	$	2,424,370	$	11,997	1.97	%	$	2,464,297	$	12,331	2.01	%
Certificates of deposit		923,713		9,043	3.97			928,658		10,034	4.30			654,328		6,942	4.27
Total interest-bearing deposits		3,426,377		21,191	2.51			3,353,028		22,031	2.61			3,118,625		19,273	2.49
Borrowed funds		695,281		6,291	3.67			775,722		7,169	3.68			1,108,880		10,663	3.87
Subordinated debt		61,461		819	5.40			61,406		837	5.42			61,239		828	5.44
Total interest-bearing liabilities		4,183,119		28,301	2.74			4,190,156		30,037	2.85			4,288,744		30,764	2.89
Non-interest bearing deposits		706,217						703,886						699,640
Accrued expenses and other liabilities		94,819						97,918						99,594
Total liabilities		4,984,155						4,991,960						5,087,978
Stockholders’ equity		707,406						698,876						696,392
Total liabilities and stockholders’ equity	$	5,691,561					$	5,690,836					$	5,784,370

Net interest income			$	31,791					$	29,685					$	27,884
Net interest rate spread⁽⁴⁾					1.76	%					1.54	%					1.39	%
Net interest-earning assets⁽⁵⁾	$	1,230,856					$	1,223,613					$	1,229,198
Net interest margin⁽⁶⁾					2.38	%					2.18	%					2.03	%
Average interest-earning assets to interest-bearing liabilities					129.42	%					129.20	%					128.66	%

(1) Average yields and rates are annualized.
(2) Includes non-accruing loans.
(3) Securities available-for-sale and other securities are reported at amortized cost.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.

The MIL Network –

April 24, 2025

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