Category: Pandemic

  • MIL-OSI USA: Ernst Applauds Trump’s Ban of Wuhan-Style Gain-of-Function Research

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)
    Published: May 6, 2025
    Order comes after Ernst fought for years to end batty experiments of pandemic potential.
    WASHINGTON – U.S. Senator Joni Ernst (R-Iowa) released the following statement after President Donald Trump signed an executive order to ban all federal funding of risky gain-of-function research in China, Iran, and other countries and blocking all federal funding for foreign research that could cause another pandemic.
    “I have been fighting for years to end the insane practice of sending tax dollars to China for sketchy pseudoscience,” said Ernst. “Thankfully, President Trump is ending the batty experiments, like those conducted in Wuhan, that are dangerous and wasteful. This is a great win for the American people and common sense. I will continue working to expose and halt all taxpayer-funded risky research of pandemic potential in malign foreign countries!”
    Background:
    Ernst has led the charge in Washington to stop tax dollars from being sent for risky research overseas.
    An Ernst-requested investigation exposed how EcoHealth sent over $1 million U.S. tax dollars to the Wuhan Institute of Virology for risky experiments on bat coronaviruses. She also secured an audit by the Department of Defense’s Inspector General of risky research in China paid for by the Pentagon and hidden from the public by Biden’s Pentagon.
    She fought to permanently debar the Wuhan Institute of Virology and defund EcoHealth Alliance from receiving U.S. tax dollars.
    Ernst efforts also led to the Department of Health and Human Services (HHS) defunding EcoHealth and promising to cut off any taxpayer dollars used for research of pandemic potential.
    In her $2 trillion blueprint to slash waste in Washington, Ernst pointed to the millions being sent to China for secretive risky research.
    Last month, she introduced the AFAR Act to end the insane practice of funding sketchy animal experiments in China with American tax dollars. Ernst also introduced the TRACKS Act to require every penny sent to foreign adversaries or entities of particular concern, such as terrorist groups including the Taliban, to be accounted for and disclosed to the public for scrutiny.

    MIL OSI USA News

  • MIL-OSI United Kingdom: Vintage music and bell-ringing will mark VE Day in Leicester

    Source: City of Leicester

    VINTAGE music, bunting and bell-ringing will mark the 80th anniversary of VE Day in Leicester later this week.

    On Thursday 8 May, Town Hall Square will be a focal point for commemorations, with bunting, flags and floral tributes in the square. A commemorative book will be available from 10am until 5pm at the Town Hall, where people can record their personal thanks to the men and women who served in the war. Vera Lynn’s wartime classic ‘We’ll Meet Again’ and other well-known tunes from the 1940s will fill the square – and in the evening, the Town Hall will be lit up to mark the occasion.

    Leicester Cathedral will mark the anniversary with a commemorative evening service from 5.30pm, which will be open to the public and attended by the Lord Mayor, the Lord-Lieutenant of Leicestershire, and other civic dignitaries. Bell-ringing will follow the service.

    Leicester’s libraries and museums are also getting involved by showcasing resources, memories and objects relating to the 1940s wartime era and celebrations of peace. The Story of Leicester website has a new webpage for the 80th anniversary, full of pictures, personal memories and voices from the University of Leicester’s oral history archive. There is also a new digital walking tour which showcases Leicester’s heritage panels and memorials relating to the Second World War.

    At the Central Library in Bishop Street, the Media Archive for Central England (MACE) is bringing some rare archive footage to the library that captures life in Leicester and Leicestershire during the Second World War. The screening of Leicester on Film: 1939-45 starts at 7pm on Thursday. Admission is free, but places must be reserved in advance by contacting the library.

    Assistant city mayor for leisure and culture, Cllr Vi Dempster, said: “The last significant anniversaries for VE Day and VJ Day – 75 years, in 2020 – occurred when the country was in the grip of the covid pandemic. As a result, commemorations had to take place virtually and online.

    “That’s why it’s even more special that this year, we are able to commemorate this important milestone by bringing the spirit of VE Day into the city centre.”

    Memories of VE Day on the Story of Leicester website can be found at

    https://www.storyofleicester.info/city-stories/ve80-victory-in-europe-day-80th-anniversary/

    ENDS

    MIL OSI United Kingdom

  • MIL-OSI: 180 Degree Capital Corp. Notes Filing of Updated Preliminary Joint Proxy Statement/Prospectus for Proposed Business Combination with Mount Logan Capital Inc.

    Source: GlobeNewswire (MIL-OSI)

    MONTCLAIR, N.J., May 06, 2025 (GLOBE NEWSWIRE) — 180 Degree Capital Corp. (NASDAQ:TURN) (“180 Degree Capital”) today noted the filing of an amended preliminary joint proxy statement/prospectus on Schedule 14A with the Securities and Exchange Commission (“SEC”) regarding its proposed merger with Mount Logan Capital Inc. (“Mount Logan”) in an all-stock transaction (the “Business Combination”). As noted in its original press release issued on January 17, 2025, the surviving entity is expected to be a Delaware corporation operating as Mount Logan Capital Inc. (“New Mount Logan”) listed on Nasdaq under the symbol “MLCI”. In connection with the Business Combination, 180 Degree Capital shareholders will receive proportionate ownership of New Mount Logan determined by reference to 180 Degree Capital’s net asset value at closing relative to a valuation of Mount Logan of approximately $67.4 million at signing, subject to certain pre-closing adjustments.

    “Our amended joint proxy statement/prospectus regarding our proposed Business Combination with Mount Logan includes Mount Logan’s financial statements which were prepared in accordance with accounting principles generally accepted in the US, or US GAAP,” said Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital. “The conversion of Mount Logan’s financial statements from International Financial Reporting Standards, or IFRS, to US GAAP is an important milestone as now we are in a position to be able to speak freely with current and potential investors regarding historical financial performance and apples-to-apples comparisons of Mount Logan to its publicly traded peers. This conversion to US GAAP also resulted in favorable improvements in historical financial metrics, including an increase in Mount Logan’s reported fee-related earnings in 2024 under IFRS to approximately $9.1 million under US GAAP, and an increase in the reported shareholder equity value of Mount Logan as of December 31, 2024, under IFRS to approximately $104.1 million under US GAAP.”

    “We believe that the availability of Mount Logan’s US GAAP financial statements will add to the strong indications of support we have received from initial conversations with our shareholders following the filing of our initial joint proxy statement/prospectus in late March 2025,” added Daniel B. Wolfe, President of 180 Degree Capital. “We believe our investors who have signed voting agreements and/or provided indications of support already understood the potential that we believe exists to create significant value for shareholders of 180 Degree Capital through this Business Combination even before Mount Logan’s US GAAP financial statements were available. We appreciate all of this support and patience as we move steadily through the SEC review process, toward the start of soliciting votes, and the ultimate goal of the completion of our proposed Business Combination.”

    Mr. Rendino continued, “Our belief about the potential of our proposed Business Combination to create significant shareholder value for 180 Degree Capital shareholders has only grown stronger since our initial announcement in January 2025. This belief is amplified by numerous significant shareholders who have voiced their support for our proposed Business Combination to us, as well as new shareholders who were drawn to invest in 180 Degree Capital based on what we believe to be a shared view that our proposed Business Combination is a unique opportunity for future value creation. We continue to believe that converting to an operating company will make 180 Degree Capital’s net asset value a floor for our stock price rather than the ceiling as it is for most closed-end funds. The pro forma combination of our businesses, based on 180 Degree Capital’s net asset value and Mount Logan’s equity value, respectively as of December 31, 2024, less estimated merger-related expenses and other estimated adjustments, yields a combined entity with an estimated shareholder equity value of nearly $140 million. While the ultimate ratio of ownership between 180 Degree Capital and Mount Logan shareholders will be based on 180 Degree Capital’s net asset value at closing, if the transaction closed on December 31, 2024, the portion of this equity value ascribed to 180 Degree Capital shareholders would equate to more than 180 Degree Capital’s net asset value as of that date. This fact is only one of the multitude of reasons we are so excited about this proposed transaction and its potential opportunity to create meaningful value for 180 Degree Capital’s shareholders.”

    Mr. Wolfe concluded, “We look forward to discussing these updates to our preliminary joint proxy statement/prospectus and to having robust conversations with all of our current and potential future shareholders. Feel free to reach out to us at any time.”

    About 180 Degree Capital Corp.

    180 Degree Capital Corp. is a publicly traded registered closed-end fund focused on investing in and providing value-added assistance through constructive activism to what we believe are substantially undervalued small, publicly traded companies that have potential for significant turnarounds. Our goal is that the result of our constructive activism leads to a reversal in direction for the share price of these investee companies, i.e., a 180-degree turn. Detailed information about 180 Degree Capital and its holdings can be found on its website at www.180degreecapital.com.

    Press Contact:
    Daniel B. Wolfe
    Robert E. Bigelow
    180 Degree Capital Corp.
    973-746-4500
    ir@180degreecapital.com

    Additional Information and Where to Find It

    In connection with the agreement and plan of merger among 180 Degree Capital Corp. (“180 Degree Capital”), Mount Logan Capital Inc. (“Mount Logan”), Yukon New Parent, Inc. (“New Mount Logan”), Polar Merger Sub, Inc., and Moose Merger Sub, LLC, dated January 16, 2025, as it may from time to time be amended, modified or supplemented (the “Merger Agreement”) that details the proposed combination of the businesses of 180 Degree Capital and Mount Logan and any other transactions contemplated by and pursuant to the terms of the Merger Agreement (the “Business Combination”), 180 Degree Capital intends to file with the SEC and mail to its shareholders a proxy statement on Schedule 14A (the “Proxy Statement”), containing a form of WHITE proxy card. In addition, the surviving Delaware corporation, New Mount Logan plans to file with the SEC a registration statement on Form S-4 (the “Registration Statement”) that will register the exchange of New Mount Logan shares in the Business Combination and include the Proxy Statement and a prospectus of New Mount Logan (the “Prospectus”). The Proxy Statement and the Registration Statement (including the Prospectus) will each contain important information about 180 Degree Capital, Mount Logan, New Mount Logan, the Business Combination and related matters. SHAREHOLDERS OF 180 DEGREE CAPITAL AND MOUNT LOGAN ARE URGED TO READ THE PROXY STATEMENT AND PROSPECTUS CONTAINED IN THE REGISTRATION STATEMENT AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE APPLICABLE SECURITIES REGULATORY AUTHORITIES AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT 180 DEGREE CAPITAL, MOUNT LOGAN, NEW MOUNT LOGAN, THE BUSINESS COMBINATION AND RELATED MATTERS. Investors and security holders may obtain copies of these documents and other documents filed with the applicable securities regulatory authorities free of charge through the website maintained by the SEC at https://www.sec.gov and the website maintained by the Canadian securities regulators at www.sedarplus.ca. Copies of the documents filed by 180 Degree Capital are also available free of charge by accessing 180 Degree Capital’s investor relations website at https://ir.180degreecapital.com.

    Certain Information Concerning the Participants

    180 Degree Capital, its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in connection with the Business Combination. Information about 180 Degree Capital’s executive officers and directors is available in 180 Degree Capital’s Annual Report filed on Form N-CSR for the year ended December 31, 2024, which was filed with the SEC on February 13, 2025, and in its proxy statement for the 2024 Annual Meeting of Shareholders (“2024 Annual Meeting”), which was filed with the SEC on March 1, 2024. To the extent holdings by the directors and executive officers of 180 Degree Capital securities reported in the proxy statement for the 2024 Annual Meeting have changed, such changes have been or will be reflected on Statements of Change in Ownership on Forms 3, 4 or 5 filed with the SEC. These documents are or will be available free of charge at the SEC’s website at https://www.sec.gov. Additional information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the 180 Degree Capital shareholders in connection with the Business Combination will be contained in the Proxy Statement when such document becomes available.

    Mount Logan, its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Mount Logan in favor of the approval of the Business Combination. Information about Mount Logan’s executive officers and directors is available in Mount Logan’s annual information form dated March 13, 2025, available on its website at https://mountlogancapital.ca/investor-relations and on SEDAR+ at https://www.sedarplus.com. To the extent holdings by the directors and executive officers of Mount Logan securities reported in Mount Logan’s annual information form have changed, such changes have been or will be reflected on insider reports filed on SEDI at https://www.sedi.com/sedi/. Additional information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the Mount Logan shareholders in connection with the Business Combination will be contained in the Prospectus included in the Registration Statement when such document becomes available.

    Non-Solicitation

    This letter and the materials accompanying it are not intended to be, and shall not constitute, an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

    Forward-Looking Statements

    This press release, and oral statements made from time to time by representatives of 180 Degree Capital and Mount Logan, may contain statements of a forward-looking nature relating to future events within the meaning of federal securities laws. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “could,” “continue,” “estimate,” “expects,” “intends,” “will,” “should,” “may,” “plan,” “predict,” “project,” “would,” “forecasts,” “seeks,” “future,” “proposes,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions). Forward-looking statements are not statements of historical fact and reflect Mount Logan’s and 180 Degree Capital’s current views about future events. Such forward-looking statements include, without limitation, statements about the benefits of the Business Combination involving Mount Logan and 180 Degree Capital, including future financial and operating results, Mount Logan’s and 180 Degree Capital’s plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the Business Combination, and other statements that are not historical facts, including but not limited to future results of operations, projected cash flow and liquidity, business strategy, payment of dividends to shareholders of New Mount Logan, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this press release will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the ability to obtain the requisite Mount Logan and 180 Degree Capital shareholder approvals; the risk that Mount Logan or 180 Degree Capital may be unable to obtain governmental and regulatory approvals required for the Business Combination (and the risk that such approvals may result in the imposition of conditions that could adversely affect New Mount Logan or the expected benefits of the Business Combination); the risk that an event, change or other circumstance could give rise to the termination of the Business Combination; the risk that a condition to closing of the Business Combination may not be satisfied; the risk of delays in completing the Business Combination; the risk that the businesses will not be integrated successfully; the risk that synergies from the Business Combination may not be fully realized or may take longer to realize than expected; the risk that any announcement relating to the Business Combination could have adverse effects on the market price of Mount Logan’s common shares or 180 Degree Capital’s common shares; unexpected costs resulting from the Business Combination; the possibility that competing offers or acquisition proposals will be made; the risk of litigation related to the Business Combination; the risk that the credit ratings of New Mount Logan or its subsidiaries may be different from what the companies expect; the diversion of management time from ongoing business operations and opportunities as a result of the Business Combination; the risk of adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the Business Combination; competition, government regulation or other actions; the ability of management to execute its plans to meet its goals; risks associated with the evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions; natural and man-made disasters; civil unrest, pandemics, and conditions that may result from legislative, regulatory, trade and policy changes; and other risks inherent in Mount Logan’s and 180 Degree Capital’s businesses. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Readers should carefully review the statements set forth in the reports, which 180 Degree Capital has filed or will file from time to time with the SEC and Mount Logan has filed or will file from time to time on SEDAR+.

    Neither Mount Logan nor 180 Degree Capital undertakes any obligation, and expressly disclaims any obligation, to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Any discussion of past performance is not an indication of future results. Investing in financial markets involves a substantial degree of risk. Investors must be able to withstand a total loss of their investment. The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but no representation or warranty is made, expressed or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of the information and opinions. The references and link to the website www.180degreecapital.com and mountlogancapital.ca have been provided as a convenience, and the information contained on such websites are not incorporated by reference into this press release. Neither 180 Degree Capital nor Mount Logan is responsible for the contents of third-party websites.

    The MIL Network

  • MIL-OSI United Kingdom: New enterprise centre opens in Stoke-on-Trent

    Source: City of Stoke-on-Trent

    Published: Tuesday, 6th May 2025

    A brand-new enterprise centre has opened in Stoke-on-Trent to support young entrepreneurs.

    Stoke-on-Trent City Council has been working with Launch It over the past two years to find a suitable home for its first Midlands venture.

    Now the charity, which provides young people with the space and support they need to start a business and develop their skills, has moved into the grade II-listed Longton Town Hall building on Times Square.

    The enterprise centre aims to drive the regeneration of Longton and the wider area by providing affordable workspaces, business development support, skills training, mentoring, funding opportunities and guidance to help young people succeed in their respective industries.

    Speaking at the launch event last week, Councillor Chris Robinson, cabinet member for housing and planning and ward councillor for Longton, said: “I am really proud that Launch It have chosen to set-up in Longton. Longton Town Hall is an important heritage building. I’m pleased that we have been able to work with them to bring it back into modern-day use, while creating something of real benefit to our young people.

    “Being able to attract an organisation such as Launch It shows me that we are moving in the right direction and shows the young people of the city that the support and guidance they need to start a business in Stoke-on-Trent is available to them.

    “This will also bring economic benefits to Longton which is already bucking the trend. I look forward to working with the Launch It team and I wish them all the best for the future.”

    Anya Cummings, chair of the Board of Trustees at Launch It Stoke-on-Trent, said:  “We are beyond excited to officially open the doors to Launch It Stoke-on-Trent and welcome young founders, small business owners, supporters and the local community who will be part of this vibrant space.

    “Bringing Launch It’s 25-year legacy of helping break barriers to thriving in entrepreneurship to Stoke-on-Trent marks the beginning of an exciting new chapter – one where ambition meets opportunity, and young entrepreneurs can help shape the future of this vibrant city.”

    The former upper floor ballroom at Longton Town Hall was refurbished in 2023 to create a new enterprise space to support small businesses on the back of the Covid-19 pandemic.

    It was part of a trio of city council properties which were identified for refurbishment as part of the then-government’s Getting Building Fund grant scheme.

    The historic building now boasts 20 state-of-the art studios offices, open-plan co-working spaces, meeting rooms, Zoom booths and a small kitchen and toilet area.

    Launch It is hosting an open day on Thursday 22 May. Anyone interested in attending can sign up at https://stokeopenday.eventbrite.co.uk/.

    Alternatively, for more information about Launch It visit: www.launchit.org.uk/stoke-on-trent.

    MIL OSI United Kingdom

  • MIL-OSI Asia-Pac: Interdepartmental working group on festival arrangements summarises visitor arrivals to Hong Kong during Labour Day Golden Week of Mainland

    Source: Hong Kong Government special administrative region

         The interdepartmental working group on festival arrangements, led by the Chief Secretary for Administration, Mr Chan Kwok-ki, today (May 6) announced that the overall number of visitors to Hong Kong reached around 1.1 million following the conclusion of the five-day Labour Day Golden Week of the Mainland (May 1 to 5) yesterday (May 5), representing an increase of 22 per cent over the same period last year. All aspects of receiving visitors operated smoothly.

         Mr Chan said, “During this year’s Labour Day Golden Week, a variety of festive events were organised across Hong Kong. Apart from the festival-themed drone show over Victoria Harbour on May 1, there were also the Cheung Chau Bun Festival, the Buddha Bathing Ceremony at the Po Lin Monastery, the Buddha’s Birthday Carnival at Victoria Park, and a series of activities in Shau Kei Wan in celebration of the Tam Kung Festival, among others. These distinctive cultural experiences were well received, fostering a vibrant atmosphere and showcasing Hong Kong’s unique cultural charms, enabling both visitors and the general public to immerse themselves in Hong Kong’s authentic culture.”

    Visitor flow, situation of control points, and traffic and public transport arrangements 

         During the Labour Day Golden Week, the Immigration Department recorded a total of around 1.1 million inbound visitors to Hong Kong through various sea, land and air control points. Among them, Mainland visitors accounted for about 920 000, representing a year-on-year increase of about 20 per cent and around 84 per cent of the total arrivals; and the number of non-Mainland visitors was around 180 000, representing a year-on-year increase of about 31 per cent.

         The arrival of Mainland visitors peaked on May 2 with around 270 000 Mainland visitors arriving in Hong Kong. During the Golden Week, the Express Rail Link West Kowloon Control Point received the highest number of Mainland visitors, followed by the Lok Ma Chau Spur Line Control Point. The overall operation of the control points and transport services ran smoothly.

         Throughout the Labour Day Golden Week, the Emergency Transport Co-ordination Centre of the Transport Department (TD) operated 24 hours a day to closely monitor the traffic conditions and public transport services in all districts, boundary control points, major stations and tourist spots across Hong Kong, and took prompt measures to address service demands.

         For cross-boundary traffic, the TD steered public transport operators to enhance their service capacity with a view to meeting the cross-boundary passenger demand. Regarding local public transport services, the TD co-ordinated with various public transport operators proactively to enhance their capacity, reserve sufficient vehicles and manpower to meet the travel needs of visitors, and deploy additional staff to maintain passenger order. The overall traffic conditions were mostly smooth during the festive period.

    Mega events

         The drone shows held at the Wan Chai Harbourfront and Gold Coast attracted a large number of locals and tourists. The raceday on May 4 and the Cheung Chau Bun Festival held yesterday also attracted numerous visitors to experience the unique atmosphere of horse racing tourism and the traditional festival of Hong Kong.

    Major tourist attractions, inbound tour groups and hotel occupancy rate

        Visitors to Hong Kong during the Labour Day Golden Week were spread across different tourist attractions in the city. The overall hotel occupancy rate reached 90 per cent in general. High visitor flow and good order were observed at major tourist attractions including theme parks, the Peak, Ngong Ping, temples, etc. Visitors were also found at outlying islands and hiking trails. Local areas like Old Town Central, Yau Ma Tei and Kennedy Town emerged as popular urban walking routes.

         In terms of Mainland inbound tour groups, over 900 Mainland inbound tour groups brought nearly 33 000 visitors to Hong Kong during the Golden Week, with around 70 per cent engaged in overnight itineraries. The number of tour groups significantly exceeded the record of the same period last year by 60% and surpassed pre-pandemic levels. 

         “During the Labour Day Golden Week, the city was vibrant and bustling, with many people in the retail and catering sector indicating that they saw growth in their businesses compared to last year. The smooth operation of various hospitality arrangements was attributable to the collaboration of relevant government departments, organisations and industries in making comprehensive preparations and responses, as well as the co-operation of the public and tourists. The Culture, Sports and Tourism Bureau will follow up with relevant departments and the trade to review the experiences from the Labour Day Golden Week and optimise various aspects. These include enhancing the telecommunication network capacity at high-traffic points, strengthening information dissemination and improving amenities for tourists under the new travel patterns, so as to continue to provide quality travel experiences for tourists visiting Hong Kong in the future,” said Mr Chan.

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: REPORT on the deliberations of the Committee on Petitions in 2023 – A10-0063/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the deliberations of the Committee on Petitions in 2023

    (2025/2027(INI))

    The European Parliament,

     having regard to its previous resolutions on the outcome of the Committee on Petitions’ deliberations,

     having regard to Articles 10 and 11 of the Treaty on European Union (TEU),

     having regard to Articles 20, 24 and 227 of the Treaty on the Functioning of the European Union (TFEU) on the right of EU citizens and residents to bring their concerns to the attention of Parliament,

     having regard to Article 228 TFEU on the role and functions of the European Ombudsman,

     having regard to Article 44 of the Charter of Fundamental Rights of the European Union concerning the right to petition the European Parliament,

     having regard to the provisions of the TFEU relating to the infringement procedure and, in particular, to Articles 258 and 260 thereof,

     having regard to Rules 55 and 233(7) of its Rules of Procedure,

     having regard to the report of the Committee on Petitions (A10-0063/2025),

    A. whereas the purpose of the annual report on the outcome of the Committee on Petitions’ deliberations is to present an analysis of the petitions received in 2023 and of relations with other institutions, as well as to present an accurate picture of the objectives achieved in 2023;

    B. whereas in 2023, Parliament received 1 452 petitions, which represents an increase of 16.2 % compared to the 1 217 petitions submitted in 2022 and of 4.0 % compared to the 1 392 petitions registered in 2021; whereas the total amount of petitions received continues to be significantly lower than the peak reached in 2013 and 2014, when Parliament received 2 891 and 2 715 petitions, respectively;

    C. whereas in 2023, the number of users supporting one or more petitions on Parliament’s Petitions Web Portal was 26 331, which represents a considerable increase compared to the 22 441 users recorded in 2022 (both numbers are considerably lower than the 209 272 supporters recorded in 2021); whereas the number of clicks in support of petitions also increased slightly in 2023, reaching a total of 29 287 (compared with 27 927 in 2022 and 217 876 in 2021);

    D. whereas however, the overall number of petitions remains modest in relation to the total population of the EU, revealing that efforts still need to be stepped up to increase citizens’ awareness of their right to petition and the possible usefulness of petitions as a means of drawing the attention of the institutions and the Member States to matters that affect and concern citizens directly; whereas in exercising the right to petition, citizens expect the EU institutions to provide added value in finding a solution to their problems;

    E. whereas the criteria for the admissibility of petitions are laid down in Article 227 TFEU and Rule 232(1) of Parliament’s Rules of Procedure, which require that petitions must be submitted by an EU citizen or by a natural or legal person who is resident or has a registered office in a Member State and is directly affected by matters falling within the EU’s fields of activity;

    F. whereas of the 1 452 petitions submitted in 2023, 429 were declared inadmissible and 13 were withdrawn; whereas the high percentage (29.55 %) of inadmissible petitions in 2023 confirms that there is still a widespread lack of clarity about the scope of the EU’s areas of responsibility; whereas in order to reduce the number of inadmissible petitions, efforts still need to be made to clarify further the scope of the EU’s fields of activity;

    G. whereas the right to petition Parliament is a fundamental right of EU citizens, offering both citizens and residents an open, democratic and transparent mechanism to address their elected representatives directly; whereas this essential tool empowers citizens to actively and effectively participate in the life of the Union; whereas through petitions, EU citizens can complain about failures to implement EU law and help detect breaches of EU law;

    H. whereas Parliament is the only EU institution directly elected by EU citizens; whereas the right to petition the European Parliament is one of the fundamental rights of EU citizens and residents and it allows them to address their elected representatives directly; whereas Parliament has long been at the forefront of the development of the petitions process internationally and has the most open, democratic and transparent petitions process in Europe, allowing petitioners to participate actively and effectively in its activities, whereas in exercising the right to petitions, citizens expect the EU institutions provide added value, cooperating with the Commission and Member State authorities, in solving their problems;

    I. whereas the information submitted by petitioners in their petitions and during committee meetings, along with the Commission’s assessments and the replies from the Member States and other bodies, also provide valuable input for the work of other parliamentary committees, given that admissible petitions are forwarded to the relevant committee for an opinion or for information; whereas, therefore, petitions can also play a role in the legislative process, providing concrete feedback on the impact of EU policies and enabling policies to address emerging needs;

    J. whereas the activities of the Committee on Petitions are based on the input provided by petitioners, enabling Parliament to enhance its responsiveness to complaints and concerns relating to respect for fundamental EU rights and compliance with EU legislation in the Member States; whereas petitions are therefore a useful source of information on instances of misapplication or breaches of EU law, enabling an assessment of the application of EU law and its impact on the rights of EU citizens and residents; whereas in 2023 fundamental rights were one of the three most important concerns of all petitioners; whereas, in the context of the structured dialogue with the Commission, the Committee on Petitions called on the Commission to fight discrimination in the European Union, including through initiatives to guarantee equal rights and to strengthen measures against all forms of discrimination, including those based on sex, racial or ethnic origin, disability, age, religion or belief and sexual orientation;

    K. whereas according to Article 17 TEU the Commission should ensure the correct application of the Treaties and of measures adopted pursuant to them; whereas the Commission’s strategic approach to addressing issues raised in petitions must be fully consistent with the Treaties in order to ensure the most effective follow-up of petitions, aiming at guaranteeing full and timely protection of citizens’ rights arising from EU law;

    L. whereas each petition must be considered and examined carefully, efficiently, impartially, fairly and transparently, in line with the standards set in Article 41 of the Charter of Fundamental Rights of the European Union on the Right to good administration; whereas all petitioners have the right to receive a reply informing them about the decision on admissibility and follow-up actions taken by the committee within a reasonable period of time, in their own language or in the language used in the petition; whereas timely and effective responses by the Commission and Member States to the issues raised in the petitions, along with solutions for redress, where appropriate, contribute to strengthening the trust citizens place in the Union and its policies;

    M. whereas the Committee on Petitions attaches the utmost importance to the examination and public discussion of petitions at its meetings; whereas petitioners have the right to present their petitions and frequently take the floor in the discussion, thereby actively contributing to the work of the committee; whereas in 2023, the Committee on Petitions held 10 committee meetings, at which 191 petitions were discussed with 114 petitioners present and actively participating by taking the floor;

    N. whereas the main subjects of concern raised in petitions submitted in 2023 related to the environment, fundamental rights, personal matters and justice;

    O.  whereas when adopting its meeting agenda, the Committee on Petitions pays attention to petitions and topics with a high degree of relevance for discussion at EU level and to the need to maintain a balanced geographical coverage of topics according to the petitions received;

    P. whereas 82.4 % of the petitions received in 2023 were submitted via Parliament’s Petitions Web Portal, which is a slight increase compared to 2022 (79.05 %), thus reconfirming it as by far the most used channel for citizens to submit petitions to Parliament;

    Q. whereas in February 2023, the Petitions Web Portal was revamped and relaunched to align it with current expectations and make it easier for residents of the Member States to exercise their right to submit petitions to Parliament; whereas the updated Petitions Portal 2.0 integrated seamlessly with Parliament’s web publishing tool, enabling faster and simpler content updates and new features (including seven ‘Quick Start Guides’ that provide clear, step-by-step instructions for submitting, tracking and supporting petitions); whereas a new search engine powered by elastic search technology enhanced the user experience by delivering more accurate results efficiently leading to the new portal’s prioritising a truly citizen-centred approach; whereas during 2023 all petitions were prepared and published in a timely manner, within a few days of their adoption, and all internal and external requests for support on the use and content of the Petitions Portal were replied to successfully, in a timely manner and in all languages;

    R. Whereas in 2023, the Committee on Petitions (PETI) held four fact-finding visits, during which Members travelled to Romania to examine the management and the protection of the brown bear population and illegal logging, to Donegal (Ireland) to investigate the use of defective mica blocks in construction in Ireland and to Catalonia (Spain) to assess in situ the language immersion model in Catalonia; whereas PETI members were also part of a joint delegation from the Committee on Employment and Social Affairs, the Committee on Civil Liberties, Justice and Home Affairs and PETI that travelled to New York to attend the 16th session of the Conference of States Parties to the Convention on the Rights of Persons with Disabilities (CRPD COSP);

    S. whereas under Parliament’s Rules of Procedure, the Committee on Petitions is also responsible for relations with the European Ombudsman, who investigates complaints about maladministration within the institutions and bodies of the EU; whereas the previous European Ombudsman, Emily O’Reilly, presented her annual report for 2022 to the Committee on Petitions at its meeting of 27 June 2023;

    T. whereas the Committee on Petitions is a member of the European Network of Ombudsmen, which also includes the European Ombudsman, national and regional ombudsmen and similar bodies in the Member States, the candidate countries and other European Economic Area countries, and which aims to promote the exchange of information about EU law and policy, and to share best practice;

    1. Emphasises Committee on Petition’s fundamental role in protecting and promoting the rights of EU citizens and residents by ensuring that petitioners’ concerns and complaints are examined in a timely, effective and appropriate manner and that petitioners are informed about the actions taken and progress made on their petitions; recalls that all petitions are treated through an open, democratic and transparent petition process;

    2. Welcomes the successful contribution the Committee on Petitions made to dealing with the case of the repatriation of children, together with their mothers, who were detained for years in dire conditions in Syrian refugee camps and suffering from serious illness, malnutrition, severe psychological pressure and whose health conditions were worsening day by day; appreciates that the main legal arguments supported unanimously in PETI were substantially backed by the Danish Supreme Court in its order to offer repatriation and support by the Danish foreign ministry to both the children concerned and their mothers;

    3. Reiterates the importance of a continuous public debate on the EU’s fields of activity in order to ensure that citizens are properly informed about the scope of the Union’s competences and the different levels of decision-making; calls for an EU-wide enhanced structured information and communication campaign in all EU official languages in collaboration with national and regional ombudsmen, NGOs, and educational institutions to increase awareness of petition rights among citizens from all Member States, particularly addressing rural and disadvantaged communities and marginalised groups, as well as, remote islands and regions; proposes an expansion of outreach efforts through social media and local community events, emphasises the need for broader awareness-raising campaigns, through the active involvement of communications services, to help increase citizens’ knowledge about their right to petition, as well as the scope of the EU’s responsibilities and the competences of the Committee on Petitions, with a view to reducing the number of inadmissible petitions and enhancing citizen engagement in the decision-making process; recommends improving the digital accessibility of the Petitions Portal, including through adaptations for people with disabilities and higher quality translations into all official EU languages; recommends exploring the potential of the existing IT tools in order to increase citizens’ support on the portal, including through redirecting options to relevant complaint mechanisms;

    4. Recalls the European dimension of the Committee on Petitions, which can be addressed by citizens from all 27 Member States on issues that fall within the scope of the EU Treaties and EU law; believes that the Committee has a special responsibility to uphold this European dimension and to demonstrate the added value of European unity and integration to citizens;

    5. Points out that petitions constitute a unique opportunity for Parliament and the other EU institutions to directly connect with EU citizens and maintain a regular dialogue with them, particularly in cases where they are affected by the misapplication or breach of EU law; stresses the need for enhanced cooperation between the EU institutions and national, regional and local authorities on inquiries regarding the implementation of, and compliance with, EU law; believes that such cooperation is crucial to address and resolve citizens’ concerns over the application of EU law and that it contributes to strengthening the democratic legitimacy and accountability of the Union; calls, therefore, for the participation of Member States’ representatives in committee meetings and for timely and detailed responses to requests for clarification or information sent by the Committee on Petitions to national authorities;

    6. Recalls that petitions contribute considerably to the exercise of the Commission’s role as the guardian of the Treaties by providing citizens with an additional tool to report alleged breaches of EU law; stresses that constructive cooperation between the Committee on Petitions and the Commission through timely and detailed answers from the Commission, which are based on thorough examinations of the issues raised in petitions, is essential to ensure the successful treatment of petitions;

    7. Reiterates its call on the Commission to provide legal clarifications on the key criteria underpinning its strategic approach to enforcing EU law and to regularly update the Committee on Petitions on developments in infringement proceedings and to ensure that the Committee on Petitions gets access to the all relevant documents on EU Pilot and infringement procedures and legislative initiatives that were launched based on petitions received; is of the opinion that increased transparency and regular feedback on the handling of ongoing infringement procedures by the Commission would be beneficial for the Committee’s follow-up of open petitions; welcomes the recent Commission initiative to include petitions in the search system of the infringement register of the Commission; stresses that it is important for the Commission to conduct timely investigations into petitions, highlighting violations of rights affecting a large number of citizens and residents within the EU and to consult, where appropriate, the relevant national ombudsman; expresses its concerns about the way the Commission is handling some infringement procedures launched against Member States, including those related to issues raised in many petitions; encourages the Commission to put in place all necessary measures to improve transparency and effectiveness of its management of infringement procedures, which can be perceived as opaque by citizens;

    8. Calls on the Commission to assess whether the national authorities are taking the necessary measures to respond to citizens’ concerns, as expressed in their petitions, where cases of failure to comply with EU law occur, and to launch infringement procedures where necessary; emphasises that timely and proactive action by the Commission in cases of breaches of EU law is crucial to prevent such breaches, which could undermine citizens’ trust in European institutions, becoming systemic in nature;

    9. Emphasises the need for enhanced and more active cooperation between Member States and the Committee on petitions in order to unblock those petitions requiring prompt responses and reactions from the national authorities; recalls that the delayed responses of the Member States could have an impact on the timely resolution of issues raised by citizens and negative consequences for the solution of breaches of Union law; notes that the Member States should guarantee responses to petitions within the three-month deadline requested; stresses that improved coordination and dialogue would facilitate a more efficient handling of citizens’ concerns, prevent unnecessary delays and strengthen the effectiveness of the petition process;

    10. Strongly condemns the harassment and intimidation to which the official members of the Delegation of the Committee on Petitions were subjected during their fact-finding visit to Barcelona from 18 to 20 December 2023, with the aim of assessing in situ the language immersion model in Catalonia, its effects on families moving to and residing in the Autonomous Community, as well as on multilingualism and non-discrimination and the principle of the rule of law;

    11. Condemns the attempted ‘escraches’ (public shaming through doorstep demonstrations), violence and intimidation by separatist entities and groups in Catalonia that were intended to prevent the smooth running of the mission and with which they sought to coerce MEPs so that the outcome of the mission would favour their interests;

    12. Regrets that the competent education authorities in the region have not implemented the recommendations issued by the Committee on Petitions in its report of 19 March 2024 following the mission, aimed at protecting the linguistic rights of students and their families;

    13. Recalls that the e-Petition database is an essential internal tool that allows the members of the Committee on Petitions to access all necessary information in order to follow up on the state of play of each petition and to be able to make informed decisions on the treatment of the petitions; notes that the e-Petition database also plays an important role in communication with petitioners;

    14. Recalls the Commission’s commitment to create an interinstitutional IT tool, together with Parliament, with which to share information and documents on all follow-up actions taken on petitions, such as infringement procedures, legislative proposals or replies by national authorities, thus enhancing the transparency and efficiency of the treatment of petitions, which, in a wider context, would contribute to increasing citizens’ trust in the EU institutions and the European project;

    15. Recalls that cooperation with other committees in Parliament is essential for the comprehensive treatment of petitions; notes that in 2023, 34 requests for opinion (corresponding to 31 petitions) and 223 requests for information were sent to other committees; notes that of the 34 opinions requested, only 25 answers were received by the end of 2023 (in 14 cases an opinion was provided, while in 10 cases the committee decided not to draft an opinion and on four occasions no official decision has been communicated); recalls that petitioners are informed of decisions to request opinions from other committees for the treatment of their petitions; underlines that parliamentary committees should step up their efforts to actively contribute to the examination of petitions by providing their expertise so as to enable Parliament to respond more swiftly and comprehensively to citizens’ concerns;

    16. Believes that the petitions network is a useful tool for facilitating the follow-up of petitions in parliamentary and legislative work; trusts that regular meetings of the petitions network are crucial in order to ensure more visibility for the Committee on Petition’s activities and a better understanding of its work and mission, as well as to strengthen cooperation with the other parliamentary committees;

    17. Underlines that the Committee on Petitions expressed its position on important issues raised in petitions by adopting its report on the outcome of the Committee on Petitions’ deliberations during 2022[1];

    18. Highlights a slight decrease in the number of petitions submitted on external relations issues compared to 2022; notes that this could be explained by the new geopolitical context in 2023 and in particular a decrease in the number of petitions on the war in Ukraine and a significant increase in petitions dealing with the new conflicts in the Middle East; notes that the Committee on Petitions took account of citizens’ concerns about sanctions, security, conflict resolution, visa policy, progress of EU candidate countries, among other issues, putting on its agenda a number of petitions dealing in particular with questions related to the situation of refugees, in particular of children and on the situation of Venezuelan refugees in the EU; acknowledges the efforts of the committees already actively addressing these issues and emphasises that the Committee on Foreign Affairs and the Committee on Civil Liberties, Justice, and Home Affairs should take note of these petitions in their deliberations;

    19. Takes note that health, which was one of the main areas of concern for petitioners in 2022, appeared to continue to play an important role in 2023; notes, in particular, that the Committee on Petitions examined and discussed petitions on the ban on chemicals and heavy metals in children’s toys, on support for healthy and environmentally friendly food systems and lifestyles and on the implementation of EU regulations on added sugars in foods intended for infants and young children;

    20. Draws attention to the significant number of petitions submitted and discussed in relation to citizens’ concerns over the reintroduction of border checks between some Member States raising the problematic aspect of limitation of the free movement of persons within the EU and other aspects such as the strengths and the weaknesses of the extension of the Schengen area, as well as the costs of not belonging to the Schengen area; appreciates the significant role played by the Committee on Petitions, in particular the host of activities carried out, the adoption in committee of a short motion for a resolution on the accession to the Schengen area on 27 June 2023 and the related Parliament resolution, to strongly support the enlargement of the Schengen area to include Romania and Bulgaria the organisation of the public hearing on Schengen Borders on 18 July 2023 in association with the Committee on Civil Liberties, Justice and Home Affairs; welcomes the unanimous decision by the Council for the full membership of both countries of the Schengen area as of 1 January 2025 allowing the full exercise of the fundamental freedoms of the EU Single Market; 

    21. Takes note of the sudden increase in petitions of Spanish origin in the second half of 2023 concerning the risks to the rule of law in Spain as a result of the Spanish Government’s intention to adopt an Amnesty Law contrary to constitutional and European law;

    22. Underlines the work of the Committee on Petitions in connection with petitions relating to common rules on a single standard for hand luggage dimensions, highlighting citizens’ concerns about the inconvenience and discomfort caused by inconsistent rules on airline carry-on luggage and the resulting hidden costs; emphasises its call for compliance with a relevant European Court of Justice ruling in the context of the revision of EU air services legislation; points, in this regard, to the short motion for a resolution on standardised dimensions for carry-on luggage adopted by the Committee on Petitions on 20 September 2023 followed by the adoption of a resolution by single vote of the European Parliament on 4 October 2023; welcomes the fact that in November 2023 the Commission put forward a review of the passenger rights framework and a series of proposals designed to improve the experience of passengers and travellers, including the requirement of a limited number of common sizes and weights to reduce the confusion; notes with regret that passengers with disabilities are still facing too many barriers while travelling, especially in case of multimodal journeys; regrets that the public transport systems of many Member States do not comply with the requirements of United Nations Convention on the Rights for Persons with Disabilities (UNCRPD);

    23. Notes that environmental issues remained an area of serious concern for petitioners in 2023 with more than 21 % of petitions dedicated to environmental issues; regrets that some of these petitions allege incorrect implementation of EU legislation by the Member States, with some Member States already facing infringement procedures for the breach of EU environmental laws; notes that numerous petitions describe complaints about air quality, noise pollution, waste management/treatment, the deterioration of natural ecosystems and violation of the Habitats Directive in different Member States; highlights the public hearing on the state of implementation of the Habitats Directive organised on 24 May 2023; notes the work the Committee on Petitions continued to carry out in 2023 on the impact of climate change in different fields, not only in the environmental area, but also in the use of land, putting a number of petitions received on these topics on the agenda; points to the workshop on the impact of climate change on social security and the most vulnerable groups organised on 22 March 2023 and also to the presentation of the study on compensation for victims of climate change disasters on 18 July 2023;

    24. Draws attention to the workshop organised by the Committee on Petitions on 25 January 2023 on transparency of pricing and reimbursement of medicinal products, which discussed transparency from the perspectives of patients and consumers, producers of medicinal products, and academic research; notes that the discussions focused on research and development costs of companies and information available on the prices paid for medicines, underlining the importance of transparency on these issues;

    25. Stresses the importance of delivering on EU citizens’ expectations regarding the protection of the environment and urges the Commission, together with the Member States, to ensure the correct implementation of EU legislation in the environmental field, in particular in the field of illegal logging; points to the petitions on environmental issues, which reflect a growing public concern about the implications of climate change, requiring consistent enforcement of the existing EU environmental legislation by both the Commission and the Member States;

    26. Acknowledges the positive effects of the fact-finding visit to Romania from 15 to 18 May 2023 on the management and protection of the brown bear population; notes with regret, however, that there are still too many fatal accidents caused by brown bears in connection with humans and livestock, making further monitoring and cooperation with the national authorities necessary;

    27. Following the fact-finding visit to Romania, stresses the need for a balance between wildlife protection and the citizens’ safety; underlines that each Member State should be allowed to take measures, including population control of the species, in order to prevent threats to the lives and property of its citizens;

    28. Stresses the commitment of the Committee on Petitions to protect the rights of persons with disabilities; recalls the annual workshop of held by the Committee on Petitions on 29 November 2023 on the rights of persons with disabilities; recalls that its first part focused on how persons with disabilities dealt with the recent crises (energy costs, war, high inflation, etc.) and how EU measures helped to overcome these obstacles while the second part addressed the issue of how the European institutions have built inclusive communication with citizens with disabilities; also highlights, in this context, the adoption by the Committee of an opinion in the form of a letter on establishing the European Disability Card and the European Parking Card for persons with disabilities on 29 November 2023; reiterates that the Commission should address the cases where the national authorities refuse to recognise the rights for social security benefits for person with disabilities, thus leaving them without the necessary means to cover their basic needs; underlines as well in this context the imperative need for a full and consistent transposition of the European Accessibility Act and calls on the Member States to avoid further delays that hinder the rights of persons with disabilities; recalls that the Accessibility Act aims at improving the life of at least 87 million persons with disabilities, facilitating their access to, inter alia, public transport, banking services, computers, TVs, e-books and online shops;

    29. Stresses the important contribution made by the Committee on Petitions to the protection of the rights of persons with disabilities, as revealed by its treatment of a number of petitions on this sensitive topic; acknowledges, in this context, the efforts of Parliament’s services and notes that not just the best technical but the most accessible solution for deaf citizens must be found in order to communicate with them in their own mother tongue, in national sign languages; requests the modification of the Rules of Procedures in close cooperation with the Committee on Constitutional Affairs (AFCO) committee in order to eliminate the written communication with deaf citizens; also highlights, in this context, the adoption by the Committee of an opinion in the form of a letter on establishing the European Disability Card and the European Parking Card for persons with disabilities on 29 November 2023;

    30. Underlines, furthermore, the specific protection role played by the Committee on Petitions within the EU in the framework of the UN Convention on the Rights of Persons with Disabilities through its capacity to hear petitions and highlights the committee’s important ongoing work on petitions concerning disability-related issues; while noting a slight decrease in the number of petitions on disability in 2023 compared to 2022, stresses that the number nearly doubled compared to 2021; further points out that discrimination and access to public transport and employment, continue to be major challenges faced by persons with disabilities and emphasises the Committee’s special attention to the request for the European Disability Statute to recognise the rights of people with autism; welcomes the adoption of a short motion for a resolution on harmonising the rights of autistic people, emphasising the need to improve access to diagnosis, healthcare, education, employment, accessibility and provision of reasonable accommodation, legal capacity and lifelong community support including as regards culture and sport; draws attention, furthermore, to the particular role of the Committee on Petitions in safeguarding the rights of children and their parents, acknowledging numerous petitions received on children’s rights, which require special attention and action; recalls, in this context the provisions of the EU Charter of Fundamental Rights, in particular the Article 24 thereof on the rights of the child, to allow every child to maintain a personal relationship and direct contact with both of his/her parents, unless that is contrary to the child’s interests; reiterates as well the risk that families with autistic children are being targeted by offers of unproven, potentially harmful and illegal therapies and interventions which may amount to serious physical abuse of children;

    31. Recalls the fact that relations with the European Ombudsman represent one of the responsibilities conferred on the Committee on Petitions by Parliament’s Rules of Procedure; welcomes Parliament’s constructive cooperation with the European Ombudsman, with whom the Committee on Petitions shares the objectives of ensuring the transparency, professionalism and integrity of the EU institutions vis-à-vis European citizens, as well as its involvement in the European Network of Ombudsmen;

    32. Underlines the key work performed by the Committee on Petitions on the protection of workers’ rights; underlines that several petitions received in this area were followed up by further actions such as the debate on the use of fixed-term contracts, as well as that on the European citizens’ initiative-turned petition ‘Good Clothes, Fair Pay’ focusing on the harmful situation of workers in the global garment and footwear industry, or the Parliamentary Question for Oral Answer on the Working conditions of teachers in the European Union, also having as its basis a petition received on this subject; reiterates the importance of ensuring fair working conditions and greater protection of workers in the EU, calling on the Member States and the Commission to effectively address concerns raised in petitions related to labour rights and trade unions; 

    33. Recalls the European Parliament study on Homelessness in the EU which was commissioned by the Committee on Petitions and presented at its meeting in November 2023; notes that this study made an important contribution on this pressing social and economic challenge, which represents one of the most severe forms of societal exclusion, highlighting the need for a public policy change towards preventing homelessness in the first place, inter alia by providing secure and affordable housing;

    34. Acknowledges the European Ombudsman’s regular contributions to the work of the Committee on Petitions throughout the year; firmly believes that the Union’s institutions, bodies and agencies must ensure consistent and effective follow-up to the recommendations of the Ombudsman;

    35. Stresses that European citizens’ initiatives (ECIs) represent an important instrument for active citizenship and public participation; welcomes the discussion in some meetings of unsuccessful ECIs, which were sometimes subsequently reformulated as petitions, giving citizens the opportunity to present their ideas and hold a constructive debate, while contributing to their participation in the EU’s democratic processes; takes note of the significant number of new ECIs registered by the Commission in 2023, which shows that citizens are seizing the opportunity to use participatory instruments to have a say in policy and lawmaking processes; calls on the Commission to better engage with citizens and give adequate follow-up to successful ECIs; welcomes the important effort put in place to organise, in association with other committees, four public hearings on successful ECIs, which allowed the organisers to present the initiative’s objectives and engage with Members of the European Parliament and representatives of the European Commission; underlines that the Commission’s commitment to responding to valid ECIs is essential to maintaining citizens’ trust in the ECI as the most significant instrument of participatory democracy;

    36. Urges the Commission to give due consideration to the parliamentary resolutions adopted on European Citizens’ Initiatives (ECIs) and to enhance its engagement with citizens, particularly by ensuring appropriate and effective follow-up to successful ECIs, thereby reinforcing the democratic process and ensuring that citizens’ voices are adequately reflected in EU policymaking;

    37. Underlines that the Petitions Web Portal is an essential tool for ensuring a smooth, efficient and transparent petitions process; welcomes, in this regard, the improvements to data protection and security features that have made the portal more user-friendly and secure for citizens; stresses that efforts to make the portal more accessible must be continued, including making it more accessible for sign-language users and persons with disabilities; notes that the Petitions Web Portal has been one of the European Parliament’s most visited websites, thus serving as a first point of contact with Parliament for many EU citizens;

    38. Recalls the European dimension of the Committee on Petitions, which can be addressed by citizens from all 27 Member States on issues that fall within the scope of the Union’s activities; believes that the Committee has a special responsibility to uphold this European dimension and to demonstrate the added value of European unity and integration to citizens and continue addressing issues related to violations of EU law, as well as loopholes and shortcomings in the provisions of existing EU law; believes that timely avoidance of petitions with clear national competences along with comprehensive explanations and instructions about alternative courses of action, where appropriate, could contribute to a constructive approach and an enhanced citizens engagement considers, in this context, that the European Parliament should increase its efforts to promote the role and work of its Committee on Petitions and raise awareness among all EU citizens of the possibility to address a petition to the European Parliament; recalls that due to the limited time allotted to committee meetings, most petitions are treated through written procedure; recalls, in this context, that all petitions received, including those in the area of international affairs, should be handled with the necessary transparency and impartiality; is of the opinion that the selection of petitions for discussion in committee should reflect a geographical and political balance of submissions received; believes, moreover, that geographical balance should also be sought when organising the committee’s fact-finding visits, yearly and over the course of each legislative term;

    39. Welcomes the adoption of the short motion for a resolution on the creation of a European Capital of Local Trade[2] at the plenary session of January 2023; underlines that this achievement is an excellent result for the Committee on Petitions, noting that this project has been successfully included as a preparatory action in the 2024 budget, with a total budget of EUR 3 million; recalls that the project to create a European Capital of Small Retail (ECSR) was officially presented by the Commission in Barcelona in December 2023;

    40. Instructs its President to forward this resolution and the report of the Committee on Petitions to the Council, the Commission, the European Ombudsman, and the governments and parliaments of the Member States, their petitions committees and their national ombudsmen or similar competent bodies.

     

    EXPLANATORY STATEMENT

    Pursuant to Rule 233(7) of the Rules of Procedure of the European Parliament, the Committee on Petitions shall report annually on the outcome of its deliberations. The report aims to provide a comprehensive overview of the work carried out by the committee in 2023 and includes a statistical analysis of the petitions received and processed as well as a stocktaking of other parliamentary activities such as the adoption of reports and opinions, the organisation of hearings and the committee’s relations with other EU institutions. It is worth recalling that the core work of the Committee on Petitions generates from the right to petition the European Parliament exercised by EU citizens and residents under Article 227 TFEU and is not directly linked to the work programme of the Commission.

     

    In 2023, following the decision taken in 2022, all the measures put in place in the European Parliament in the context of the COVID-19 pandemic aiming at ensuring Parliament’s core functions were confirmed. All committee meetings in 2023 took place in Parliament’s premises, with the participation of MEPs, as well as of Commission’s representatives, in person. Petitioners have had the possibility to participate remotely or in person.

     

    Statistical analysis of petitions received in 2023 compared to 2022

     

    According to the statistics, the European Parliament received 1 452 petitions in 2023, which represents an increase by 16.0 % compared to the 1217 petitions submitted in 2022 and by 4.0 % compared to the 1392 petitions registered in 2021. The number of petitions on COVID-19 has significantly decreased compared to the two previous years: 12 petitions on 2023 compared to 45 petitions in 2022 and 242 petitions in 2021.

     

    Users of the Petitions Web Portal have the possibility to support petitions. In 2023, 26331 users acted as supporters as compared to 2022, 22441 and 209272 in 2021. It follows, that in 2023 the number of users supporting petitions in the web portal slightly increased in comparison with the previous year. The number of supports increased in 2023, reaching 29287 compared to 27927 in 2022 but incomparably lower compared to the 217876 in 2021;

     

    In 2023, 11 petitions were co-signed by more than one citizen. Of the 11 petitions signed by more than one citizen, only 1 was signed by more than 100 citizens; of those 11 petitions, only 1 was signed by more than 500 citizens and none by more than 5000 citizens;

     

    Format of petitions

    In 2023, 82.4 % of petitions were submitted via the Petitions Web Portal, while almost 17.6 % of petitions were submitted by post. The figures in the two tables reveal that in 2023 the proportion of petitions submitted via the Petitions Web Portal slightly increased in comparison with 2022, the Petitions Web Portal remaining by far the most used channel for submitting citizens’ petitions to the European Parliament.

     

     

     

     

    2023

     

     

     

    2022

    Petition Format

    Number of petitions

    %

    Petition format

    Number of petitions

    %

     

     

    Petition Portal

     

    1186

    82.4

    Petitions Portal

    962

    79.05

    Letter

     

    254

    17.6

    Letter

    255

    20.95

    The following table shows the status of petitions from 2003 to 2023. It can be noted that in 2023, a very large majority (⅔) of petitions were closed within a year after being received and examined by the committee. As a result of the comparison with the data on the status of petitions included in the annual reports from 2010 to 2022, it can be concluded that a significantly majority of petitions are closed within a year after being received and examined. Except for the year 2023 and partially for year 2016, less than 11% of the petitions received each year since 2003 and very small percentages (from 0.2% to 1.5%) of petitions from 2004 to 2014 remain open. Most of these open petitions relate to environmental issues and ongoing infringement proceedings before the Court of Justice of the European Union or to issues that members of the committee want to follow closely. An important number of petitions on the beach concessions in Italy (in total 450) have been submitted from 2012 to 2023, with a high number in 2016 and 2023 and are still open with a relevant impact on the statistics.

    Status of petitions

     

    Year

     

    Number of petitions

     

    Open petitions

     

     

    Closed petitions

    2023

    1 452

    334

    23.2%

    1 106

    76.8%

    2022

    1 210

    142

    11.7%

    1 068

    88.3%

    2021

    1 388

    154

    11.1%

    1 234

    88.9%

    2020

    1 570

    141

    9.0%

    1 429

    91.0%

    2019

    1 355

    113

    8.3%

    1 242

    91.7%

    2018

    1 219

    110

    9.0%

    1 109

    91.0%

    2017

    1 270

    57

    4.5%

    1 213

    95.5%

    2016

    1 568

    249

    15.9%

    1 319

    84.1%

    2015

    1 431

    64

    4.5%

    1 367

    95.5%

    2014

    2 715

    38

    1.4%

    2 677

    98.6%

    2013

    2 891

    33

    1.1%

    2 858

    98.9%

    2012

    1 986

    26

    1.3%

    1 960

    98.7%

    2011

    1 414

    14

    1.0%

    1 400

    99.0%

    2010

    1 656

    14

    0.8%

    1 642

    99.2%

    2009

    1 924

    5

    0.3%

    1 919

    99.7%

    2008

    1 886

    12

    0.6%

    1 874

    99.4%

    2007

    1 506

    15

    1.0%

    1 491

    99.0%

    2006

    1 021

    2

    0.2%

    1 019

    99.8%

    2005

    1 016

    2

    0.2%

    1 014

    99.8%

    2004

    1 002

    2

    0.2%

    1 000

    99.8%

    2003

    1 315

    0

    0.0%

    1 315

    100.0%

     

    Outcome of petitions[3]

     

    2023

     

     

     

    2022

    Outcome of petitions

    Number

    %

    Outcome of petitions

    Number

    %

     

     

    Admissible and Closed

    677

    46.65

    Admissible and Closed

    527

    43.48

    Admissible and Open

    334

    23.00

    Admissible and Open

    327

    26.98

    Inadmissible

    429

    29.55

    Inadmissible

    357

    29.46

    Withdrawn

    13

    0.8

    Withdrawn

    5

    0.08

    Sent to EC for opinion

    572

    55.21

    Sent to EC for opinion

    482

    37.57

    Sent for opinion to other bodies

    12

    1.16

    Sent for opinion to other bodies

    12

    0.94

    Sent for information to other bodies

    452

    43.63

    Sent for information to other bodies

    789

    61.5

     

    The tables show that the petitions declared inadmissible in 2023 vs 2022 is significantly higher in terms of number but as percentage, the petitions declared inadmissible in 2023 remained stable as compared to 2022.

    The percentage of admissible petitions (46.65%), which were closed immediately by providing information to the petitioner in 2023, is slightly higher as compared to 2022. The percentage of petitions that have been kept open in 2023 (23.00%) have slightly decreased compared to 2022 (26.98%).

    It is also to be noted that in 2023, more than the half (55.21 %) of the admissible petitions were sent to the Commission for opinion.

    Finally, the percentage of petitions sent to other bodies for opinion remained the same in 2023 as compared to 2022.

    Number of petitions by country

    The following two tables illustrate in numbers and in percentage terms changes of petitions by country from 2022 to 2023. A large number of petitions submitted in both years concern the EU. It means that these petitions either raise EU-wide issues or call for common measures to be implemented throughout the EU. Petitions concerning the EU may also relate to one or more Member States and are therefore registered under both the EU and the concerned Member State(s). This explains why the sum of the petitions concerning the EU and of those only related to Member States exceeds the total number of petitions submitted in 2022 and 2023.

    Additionally, it is worth stressing that the six countries mostly concerned by petitions remained the same in both years although the order of the most concerned countries has changed in 2023 compared to 2022, (Italy in 2023 takes the second seat occupied by Germany in 2022 and Greece takes the sixth seat in 2023 occupied by Poland in 2022). The majority of petitions submitted in 2023 concern Spain, with a relevant increase in terms of numbers in comparison with 2022. It is interesting to note the very significant increase in the number of petitions concerning Italy (from 101 to 202) and Portugal (from 17 to 38), and an opposite flow of the number of petitions related to Greece, with a decrease from 71 to 53. A relevant aspect to underline is that the number of petitions related to France, increased (from 39 to 53) in comparison with 2022.

    By contrast, petitions concerning non-EU countries decreased significantly in 2023 compared to petitions submitted in 2022 (from 226 to 176).

    As regards the countries featuring at the bottom of the list, Slovakia, Cyprus and Luxembourg, are the least concerned countries in 2023, while in 2022 it was the case for Czechia, Estonia and Slovakia.

     

     

    2023

     

     

     

     

    2022

     

    Concerned Country

    Petitions

    %

     

    Concerned Country

    Petitions

    %

    European Union

    660

    45.8

     

    European Union

    566

    46.7

    Spain

    267

    18.5

     

    Spain

    199

    16.4

    Italy

    202

    14.0

     

    Germany

    139

    11.5

    Germany

    120

    8.3

     

    Italy

    101

    8.3

    Romania

    65

    4.5

     

    Greece

    71

    5.9

    France

    53

    3.7

     

    Romania

    59

    4.9

    Greece

    53

    3.7

     

    Poland

    54

    4.5

    Poland

    53

    3.7

     

    France

    39

    3.2

    Portugal

    38

    2.6

     

    Hungary

    20

    1.7

    Hungary

    24

    1.7

     

    Ireland

    19

    1.6

    Other EU countries

    193

    13.3

     

    Other EU countries

    143

    11.9

    Non-EU countries

    176

    12.2

     

    Non-EU countries

    226

    18.6

     

    Languages of petitions

    In 2023 and in 2022, petitions were submitted in 22 of the official languages of the European Union. English and Spanish were the most used languages in both 2022 and 2023, with Spanish re-confirmed as the second most used language, after English. Italian gained a position and became the third most used language in 2023, to the detriment of German which is the fourth in 2023. The tables illustrate that English continued to account for more than ¼ of the total of petitions submitted and that English, Spanish, Italian and German languages account for more than ¾ of the petitions received in 2023 and 2022 (77.5% and 76.2% respectively). Slovak, Estonian and Croatian were the least used languages in 2023 while in 2022 it was the case of Slovenian, Czech and Croatian.

     

     

     

     

    2023

     

     

     

    2022

     

    Petition Language

    Number of petitions

    %

     

    Petition Language

    Number of petitions

    %

    English

    382

    26.5

     

    English

    325

    26.7

    Spanish

    301

    20.9

     

    Spanish

    251

    20.6

    Italian

    224

    15.6

     

    German

    215

    17.6

    German

    209

    14.5

     

    Italian

    138

    11.3

    French

    74

    5.1

     

    French

    58

    4.8

    Polish

    49

    3.4

     

    Polish

    56

    4.6

    Greek

    47

    3.3

     

    Greek

    43

    3.5

    Romanian

    44

    3.1

     

    Romanian

    42

    3.5

    Others

    110

    7.6

     

    Others

    89

    7.3

    Total

    1440

    100

     

    Total

    1217

    100

     

    Nationality of petitioners

    As regards nationality, while petitions submitted by Spanish citizens represented the highest number in 2023 confirming not only the first place of the 2022 but also registering an important increase (from 266 to 330), Italian citizens exceeded German petitioners and became the second nationality in submitting petitions in 2023 with a significant increase (from 159 to 254).

     

    In addition, the tables below show a slight rise in the number of petitions submitted by Portuguese nationals in 2023 in comparison with the previous year. By contrast, the number of petitions by Hungarian citizens sensibly decreased in 2023, from 33 submitted in 2022 to 21 in 2023.

     

    Two additional observations: in 2023, the number of petitions submitted by other EU nationalities increased significantly compared to 2022, from 170 to 209, and petitions submitted by non-EU nationalities slightly decreased, accounting for 3% of the total.

     

     

    2023

     

     

     

    2022

     

    Prime petitioner nationality

    Number of petitions

    %

     

    Prime petitioner nationality

    Number of petitions

    %

    Spain

    330

    22.9

     

    Spain

    266

    21.9

    Italy

    254

    17.6

     

    Germany

    251

    20.7

    Germany

    246

    17.1

     

    Italy

    159

    13.1

    Romania

    93

    6.5

     

    Romania

    78

    6.4

    France

    71

    4.9

     

    Poland

    73

    6.0

    Poland

    64

    4.4

     

    France

    60

    5.0

    Greece

    62

    4.3

     

    Greece

    60

    5.0

    Portugal

    39

    2.7

     

    Hungary

    33

    2.7

    Belgium

    29

    2.0

     

    Portugal

    26

    2.1

    Other EU nationalities

     

    209

     

    14.6

     

    Other EU nationalities

     

     

    170

     

    13.9

    Non-EU nationalities

    43

    3.0

     

    Non-EU nationalities

    49

    4.0

     

    Main subjects of petitions

     

    The tables below include the top ten petition themes. From the tables, it appears that the main themes did not differ from one year to another. While in 2022 environment, fundamental rights and justice were the top three petition themes, in 2023 environment, internal market as well as fundamental rights ranked the highest.

    In 2023 the number of petitions raising concerns over the internal market had a significant increase compared to 2022 (194 vs 84), which represent more than the double. This could be explained by the high number of petitions related to the beach concessions in Italy submitted in 2023.

    As regard petitions on health, their number in 2023 (119) remained stable compared to the 115 petitions registered under the same theme in 2022. In the field of the external relations, a slight decrease can be noted, explained by a decrease of the number of petitions on the Ukraine’s war and a significant increase of petitions dealing with the new conflict in the Middle East.

    As far as fundamental rights theme is concerned, the number of petitions on this topic is stable in 2023 compared to 2022. This might be due to the fact that in 2023, an important number of petitions (40) registered under the theme of fundamental rights raised concerns over the respect of the rule of law in Spain.

    2023

     

    2022

    Top 10 Petition themes

    Number of petitions

    %

    Environment

    308

    21.5

    Internal Market

    194

    13.4

    Fundamental Rights

    193

    13.4

    Personal Matter

    179

    12.4

    Justice

    167

    11.6

    Health

    119

    8.3

    External Relations

    96

    6.7

    Consumer’s Right

    93

    6.5

    Transport

    93

    6.5

    Constitutional Affairs

    68

    4.7

    Top 10 Petition themes

    Number of petitions

    %

    Environment

    258

    21.2

    Fundamental Rights

    211

    17.4

    Justice

    189

    15.6

    External Relations

    126

    10.4

    Personal Matter

    126

    10.4

    Health

    115

    9.5

    Employment

    73

    6.0

    Consumer’s right

    66

    5.4

    Institutions

    63

    5.2

    Energy

    61

    5.0

     

    Petitions Web Portal

    In 2023, the Petitions Web Portal, launched in late 2014, was further improved to make it more user-friendly, more secure and more accessible to petitioners.

    The Petitions Web Portal was revamped and relaunched in February 2023 to align with modern expectations and make it easier for EU27 residents to exercise their right to submit petitions to the European Parliament. The updated PETI Portal 2.0 integrated seamlessly with the EP’s web publishing tool, enabling faster and simpler content updates. Its responsive design ensured compatibility with all devices and screen sizes. New features included four ‘Quick Start Guides’ – available in all 24 EU official languages – that provide clear, step-by-step instructions for submitting, tracking and supporting petitions. Additionally, a new search engine powered by elastic search technology enhanced user experience by delivering more accurate results efficiently. The new portal prioritises a truly citizen-centred approach.

     

    In April 2023, the PETI Portal 2.0 was presented to an extended Steering Committee (comprising group advisers and DG IPOL Strategy and Innovation representatives). Updates on releases, petition statistics and a communication strategy to boost the portal’s visibility were also discussed. Moreover, the portal was actively promoted through various media channels, including Europarl, Twitter, the Director-General’s newsletter and events such as the Open Doors Day.

     

    The automatic notification system has been extended and improved to inform petitioners and supporters by email – if they have opted in – when a reply from the European Commission (“Communication to Members” or “CM”) has been published and translated into the petition’s original language and the other languages of the Committee.

     

    The PETI Portal team ensured that all petitions were published within days of their adoption and promptly responded to numerous petitioner queries – across all EU languages – received through the chatbot and Smart Helpdesk.

     

    Relations with the Commission

    The Commission remains the natural partner of the Committee on Petitions in processing petitions as the responsible EU institution for ensuring the implementation of and compliance with EU law. The committee and the Commission have a well-established and consistently maintained level of cooperation. The main contact point in the Commission is the Secretariat-General, which coordinates the distribution of petitions to the relevant Commission’s services and transmits the Commission’s replies to the secretariat of the committee. The Commission’s services participate in the meetings of the Committee of Petitions when petitions are discussed in committee on the basis of the Commission’s written reply or of other documents received. While the Commission has stepped up its efforts to provide timely responses to requests for information made by the Committee on Petitions, the committee believes that the Commission should be more actively involved in the work of the Committee on Petitions in order to ensure that petitioners receive a precise response to their requests and complaints regarding the implementation of EU law.

    Additionally, the committee reiterated its calls for regular updates on developments in infringement proceedings and EU pilot procedures, which relate to open petitions. Finally, the committee remains critical as regards the Commission’s new enforcement policy based on in its 2016 communication entitled ‘EU Law: Better Results through Better Application’ (C(2016)8600), which aims to direct citizens to the national level when complaints or petitions do not raise issues of wider principle or systematic failure to comply with EU law. In this regard, the committee considers that the Commission should check whether national authorities take the necessary steps to respond to citizens’ concerns as expressed in their petitions.

    Pursuing to the Annex IV of the Framework Agreement on relations between the European Parliament and the European Commission on the Timetable for the Commission’s Work Programme and as part of the annual cycle of the structured dialogue, the Committee on Petition welcomed the remote participation of Vice-President of the European Commission for Interinstitutional Relations and Foresight Maroš Šefčovič at its meeting on 28 February 2023. The exchanges of views focused on the state of implementation of the Commission Work Programme as well as on the cooperation between the Petitions Committee and the European Commission on improving relations in the handling of petitions.

    It is also worth noting the Commission’s intervention in the Committee on Petitions’ events throughout the year. In particular the intervention of representatives of the Commission during the presentation of the following studies: study on ‘The boundaries of the Commission’s discretionary powers when handling petitions and potential infringements of EU law’ (Implementation & Enforcement of EU Law) on 26 April 2023; study on “Cross-Border Legal Recognition of Parenthood in the EU” (DG JUST) on 17 July 2023; study on “Compensation for Victims of climate change disasters” (DG CLIMA) on 18 July 2023; study on “Homelessness in the European Union” (DG EMPL) on 30 November 2023.

    Representatives of the Commission also participated in several PETI hearings in 2023: public hearing on “The impact of climate change on social security and the most vulnerable groups” organised on 22 March (DG EMPL), hearing on “The state of implementation of the Habitats Directive” on 24 May 2023 (DG ENV.E – implementation and relations with Member States) with a focus on the infringement actions brought in the context of the Habitat Directive; hearing in association with Committee on Liberties, Justice and Home Affairs on “Schengen Borders – issues raised by petitioners” (DG HOME – Unit of Schengen and External Borders) with a focus on “Historical overview: establishment of the Schengen agreement, its progressive extension and the transfer of the Schengen acquis to the EU competence” on 18 July 2023; hearing on “A reflection on the European Parliament’s Committee on Petitions and the petitions’ systems of third countries” on 24 October 2023.

    Finally, on 29 November 2023, in the annual workshop on the rights of persons with disabilities focusing on “Coping with the cost-of-living crisis and Inclusive communication”, Helena DALLI, the former European Commissioner for Equality intervened via a recorded video statement followed by representatives of DG Communication.

    ECI

    The European Citizens’ Initiative (ECI) is a European Union (EU) mechanism aimed at increasing direct democracy by enabling “EU citizens to participate directly in the development of EU policies”. The initiative enables one million citizens of the European Union, who are nationals of at least seven member states, to call directly on the European Commission to propose a legal act in an area where the member states have conferred powers onto the EU level. If at the end of the procedure, the ECI initiative reaches the threshold, organisers are invited to a hearing organised by the committee for petitions, to present their initiative, and afterwards, Parliament may decide to debate further and adopt a resolution on plenary on the topic.

     

    On 24 January 2023, the Committee on Agriculture and Rural Development (AGRI) jointly with the Committee on Environment, Public Health and Food Safety (ENVI) and with the association of the PETI Committee, held a public hearing on the European Citizens’ Initiative (ECI) “Save bees and farmers! Towards a bee-friendly agriculture for a healthy environment”. The initiative requests the phasing out of synthetic pesticides by 2035, a broader support to farmers and the development of the agriculture by prioritising small scale, diverse and sustainable farming, supporting a rapid increase in agro-ecological and organic practice, and enabling independent farmer-based training and research into pesticide. The former Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevicius and the former Commissioner for agriculture Janusz Wojiechowski presented their points of view on the different topics, showing the need for legislators to work together with all the stakeholder groups.

     

    On 27 March 2023, the Committee on Fisheries (PECH) organised, in association with the Committee on Petitions and the Committee on the Environment, Public Health and Food Safety (ENVI), a public hearing on the ECI “Stop Finning – Stop the Trade”. The initiative requests to the Commission to propose legal measures to end the trade of shark and ray fins in the EU, including the import, export and transit of fins, other than if naturally attached to the animal’s body, notably by extending the scope of Regulation (EU) No 605/2013. Former Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevicius intervened stressing that ECI raises important issues that are relevant to the EU’s policy of protecting the marine environment, protecting and conserving fisheries resources and ensuring sustainable fishing in the EU and globally.

     

    On 25 May 2023, Committee on Environment, Public Health and Food Safety (ENVI) organised in association with the Committee on Petitions and the Committee on Agriculture and Rural Development (AGRI), a public hearing on the ECI “Save cruelty-free cosmetics – Commit to a Europe without animal testing”. The initiative requests three main objectives: protect and strengthen the cosmetics animal testing ban, transform EU chemicals regulation, ensuring human health and the environment by managing chemicals without the addition of new animal testing requirements and modernise science in the EU.

     

    On 12 October 2023, the Committee on Agriculture and Rural Development (AGRI) and the Committee on the Internal Market and Consumer Protection (IMCO) organised, in association with the Committee on Petitions, a public hearing on the ECI “Fur-Free Europe”. The initiative calls on the EU to ban the rearing and killing of animals for the purpose of fur production. It also asked for a ban on the placing on the Union market of both fur from animals farmed for their fur, as well as products containing such fur. Former Commissioner for Health and Food safety Stella Kyriakides recalled that after a deep technical analysis, the Commission will eventually evaluate the necessity and justification of the bans requested by the ECI’ organisers in pursuing objectives of environmental and public health, of animal health and welfare objectives, in ensuring that consumer concerns can be addressed in practice, as well as in ensuring a smooth operation of the internal market.

     

    Article 230 of the Rules of Procedures of the European Parliament allows the Committee on Petitions, if it considers appropriate, to examine proposed citizens’ initiatives which have been registered in accordance with Article 4 of Regulation (EU) No 211/2011, but which cannot be submitted to the Commission in accordance with Article 9 of that Regulation, since not all the relevant procedures and conditions laid down have been complied with. On that basis, the Committee held on 27 April 2023 a debate on the European Citizens’ Initiative (ECI) “Ensuring Common Commercial Policy conformity with EU Treaties and compliance with international law” with the participation of the organisers and a representative of the Commission and members of the committee. The ECI representatives’ main objective was to invite the Commission to propose a legal acts based on the Common Commercial Policy to prevent EU legal entities from both importing products originating in illegal settlements in occupied territories and exporting to such territories, in order to preserve the integrity of the internal market and to not aid or assist the maintenance of such unlawful situations. Although the ECI ended without reaching the threshold of 1 million signatures, the Committee on Petitions could shed light on it and decide to send the petition to the Committee on International Trade for opinion and to ask the European Commission for an update on this topic.

     

    In accordance with the same article, the Committee held on 24 October 2023 a debate on the European Citizens’ Initiative (ECI) “Good Clothes, Fair Pay”, with the participation of the organisers and a representative of the Commission and members of the committee. The ECI representatives’ main objectives were to invite the Commission to propose legislation, requiring undertakings active in the garment and footwear sector to conduct due diligence in respect of living wages in their supply chain achieving the following objectives: (a) complement and build on the ‘EU’s Sustainable Corporate Governance framework’, and the ‘EU Adequate Minimum Wage Directive’; (b) require undertakings to identify, prevent and mitigate adverse impacts on the human right to a living wage and freedom of association and collective bargaining rights; (c) reduce poverty in the Union and worldwide, paying particular attention to the circumstances of women, migrants and workers with precarious contracts and the need to combat child labour; (d) prohibit unfair trading practices which cause, or contribute to, actual and potential harms to workers in the garment and footwear sector and promote fair purchasing practices; (e) provide a right to information for consumers regarding undertakings in the garment and footwear sector; (f) improve transparency and accountability of undertakings in the garment and footwear sector. Although the ECI ended without reaching the threshold of 1 million signatures, the Committee on Petitions could shed light on it and decide to send the petition to the Committee on Employment and Social Affairs for opinion and to ask the European Commission for an update on this topic.

     

    Relations with the Council

    Members of the Council’s Secretariat may attend the meetings of the Committee on Petitions. Regrettably, in 2023, the committee did not observe Council’s participation in the debates. Nevertheless, the committee notes the participation by some local or regional authorities in the discussion on petitions in committee meetings, which in 2023 concerned mainly Spanish-related topics. Also on 30 November 2023, the committee acknowledges the participation of the Head of the Diversity and Inclusion Office of the Council of the EU at the annual workshop on the rights of persons with disabilities.

     

    Relations with the European Ombudsman

    The Committee on Petitions continued its constructive, long-standing working relations with the office of the European Ombudsman, contributing to the increase of the democratic accountability of the EU institutions.

     

    On 27 June 2023, the committee heard the presentation of the European Ombudsman’s Annual Report 2022, delivered by Ms Emily O’Reilly. The report documented the Ombudsman’s work on transparency and accountability (e.g. access to information and documents), culture and service, respect of fundamental rights, the proper use of discretion (including in infringement procedures), recruitment, good management of personnel issues, respect of procedural rights, sound financial management, ethics and public participation in EU decision-making. In 2022, the Ombudsman opened 348 inquiries, of which four were on her own initiative, while closing 330 inquiries. The largest percentage of inquiries concerned the European Commission (57.1%), followed by the European Personnel Selection Office (6.3%), the European Parliament (5.5%) and the European External Action Service (4.6%). The remaining enquires concerned other EU institutions, agencies and bodies with the European Border and Coast Guard Agency (Frontex) totalling 4.3% and the European Union Aviation Safety Agency 2%.

     

    It is also worth noting the intervention by inquiries Officer in the Ombudsman’s Strategic Inquiries Team at the committee’s annual workshop on the rights of persons with disabilities which took place on 29 November 2023.

    Relations with the European Court of Auditors

    Over recent years, the Committee on Petitions has built constructive working relations with the European Court of Auditors (ECA) and has actively contributed to its annual work programmes.

    Relations with other EU bodies

    On 22 March 2023 in the frame of the workshop organised by the Committee on Petition on “The impact of climate change on social security and the most vulnerable groups’, the Head of Climate Change Impacts and Adaptation of the European Environment Agency spoke on “Social preparedness for current and future climate risks”.

    On 24 May 2023 in the frame of the workshop organised by the Committee on Petition on “The state of implementation of the Habitats Directive”, a nature and biodiversity expert at the European Environment Agency intervened in the session “How to promote full compliance by Member States of the Habitats Directive?”.

    On 20 September 2023, the Committee on Petitions organised an Interparliamentary Committee Meeting with a focus on the Cooperation with the Committees on Petitions in national Parliaments – Exchanging best practices and reflecting on new approaches and in the Panel 1 on “The right to petitions, Parliaments rules, procedures and practices” several Members of National Parliaments took the floor, in particular a Member of Spanish Senate, a member of Belgian Federal Parliament. In the second Panel titled “Best Practices And New Approaches To The Right To Petition National Parliaments’ Point Of View” some National Members intervened, among others, one Member of Italian Chamber, one Member of German Bundestag, one member of the French Senate and one Member of the Polish Sejm.

    On 24 October 2023, the Committee on Petitions organised a public hearing on “A reflection on the European Parliament’s Committee on Petitions and the petitions’ systems of third countries” and in this frame several Members of the extra EU National Parliaments intervened. In particular, two representatives of the House of Commons of Canada presented “An analysis of the legal, institutional and procedural framework governing the petitions’ system in Canada”, followed by a member of Federal Senate of Brazil who analysed ‘the legal, institutional and procedural framework governing the petitions’ system in Brazil’. In the second panel of the hearing, one member of the Norwegian Parliament analysed ‘The legal, institutional and procedural framework governing the petitions’ system in Norway”.

    On 29 November 2023, a representative of the Fundamental Rights Agency took the floor in the first panel of the annual workshop on the rights of persons with disabilities.

    Fact-finding visits

    In 2023, the Committee on Petitions organised four fact-finding visits.

     

    The committee organised a fact-finding visit to Romania (Bucharest, Sfântu Gheorghe and Suceava), from 15 to 18 May 2023, on the management and the protection of the brown bear population as raised in Petitions Nos 1188/2019, 1214/2019, 0685/2020, 0534/2021, 0410/2022 and the illegal logging in the country, petitions Nos. 1248/2019, 0408/2020, 0722/2020 and1056/2021. The aim of the mission was to collect as much information as possible on the two subjects of interest, to establish facts and to seek solutions. In this regard, the delegation met various interlocutors, such as national and regional authorities, petitioners, NGOs, environmental activists, as well as representatives of academia and. Following rich exchanges, Members acquired first-hand information and knowledge about the challenges related to the management and the protection of the brown bear population and to the illegal logging and the fight against it in Romania.

     

    From 13 June to 15 June 2023, two Members of the Committee on Petitions participated in a joint ad hoc EMPL, LIBE and PETI delegation to the 16th session of the Conference of States Parties to the Convention on the Rights of Persons with Disabilities (CRPD COSP), which took place at the United Nations Headquarters, New York. Members participating in the delegation took part in several official sessions of the Conference, side events (including one organised by the EP), as well as in a series of bilateral meetings with UN officials, European and non-European governmental and non-governmental organisations, working for the realisation of the rights of persons with disabilities. The main purpose of the delegation was to build on the well-established contacts of the previous year and to highlight and guarantee Parliament’s oversight in the implementation and monitoring of the UN CRPD, within the “Team Europe” cooperation.

     

    A fact-finding visit was organised to the region of Donegal (Ireland) from 30 October to 1 November 2023 on the use of defective mica blocks in construction in Ireland, an alleged non-compliance with the EU Construction Products Regulation (CPR) and on the protection of homeowners as raised on Petitions Nos. 0789/2021, 0790/2021, 0799/2021, 0800/2021, 0801/2021, 0813/2021, 0814/2021 and 0837/2021.During the mission, the delegation was made aware of the large scale and complexity of the challenges related to the use of defective building blocks in construction in Ireland, with significant health, financial and social consequences.

    Between 18 and 20 December 2023, the Committee on Petitions conducted a fact-finding visit to Catalonia (Spain) with the aim of assessing in situ the language immersion model in Catalonia, its impact on families moving to and residing in the region as well as on multilingualism and non-discrimination and the principle of the Rule of Law as raised on petitions Nos. 0858/2017, 0650/2022 and 0826/2022. The objective of this fact-finding visit was to investigate the claims made in the petitions, establish facts, seek solutions and establish a dialogue with regional authorities to obtain a better insight into various aspects concerning the language immersion model in Catalonia. The mission has enabled the Committee to gain a better understanding of the model’s impact on families moving to and residing in the region as well as on multilingualism, non-discrimination and compliance with international and EU law.

    Public Hearings

    In 2023, the Committee on Petitions organised four public hearings, partly jointly with other parliamentary committees. The public hearings covered a wide range of subject raised in petitions.

     

    On 28 February 2023, the Committee on Petitions hosted a public hearing on the “language immersion model in Catalonia, Spain”. The hearing was organised as follow up on several petitions (Nos. 0858/2017and 0650/2022) on the impact of full immersion in Catalan at schools and covered four main themes: the compatibility between European regulations and case law and the linguistic model in Catalonia, the impact of linguistic immersion in Catalonia on the school performance of students whose mother tongue is Spanish, the Catalan linguistic-cultural model and the linguistic immersion in Catalonia, respect for secular bilingualism in Catalonia and compatibility with the linguistic conjunction model.

     

    On 24 May 2023, the Committee on Petitions held, in association with the Committee on the Environment, Public Health and Food Safety, a public hearing entitled “The state of implementation of the Habitats Directive”. Following a significant number of petitions received alleging the breach of the Habitats Directive, the hearing aimed to take a closer look at how the Habitats Directive has being implemented and enforced in the Member States. It was organised in two sessions, and the experts invited, focused, in particular, on the following topics: implementation and infringement overview, implementation challenges and the infringement procedure as an efficient tool for the enforcement of the Habitats Directive. Furthermore, the speakers identified possible best practices to promote full compliance of Member States with the Habitats Directive.

     

    On 18 July 2023, the Committee on Petitions held, in association with the Committee on Civil Liberties, Justice and Home Affairs, a public hearing on: ‘Schengen Borders: – issues raised by petitioners’. On the basis of several petitions Nos. 0428/2020, 0653/2020, 0227/2022, 0719/2022, 0004/2023 and 0037/2023 the hearing aimed at giving voice to citizens’ concerns over the reintroduction of border checks between some Member States (e.g. Denmark and Sweden, Denmark and Germany), thus limiting the free movement of persons within the EU. It also touched upon other aspects such as the strengths and the weaknesses, the extension of the Schengen area, as well as the costs of Non-Schengen. The exchanges were organised in two panels, with the first focusing on the historical background and the current state of play of the Schengen area and the second on the issue of reintroduced border controls within the Schengen area. The Commission pointed out the ongoing dialogue with the Member States and the review of the Schengen Borders Code and stressed that the enlargement of the Schengen area remains a priority.

     

    On 24 October 2023, the Committee held the public hearing ‘A reflection on the EP Committee on Petitions and the petitions’ systems of third countries’. The hearing focused on the analysis and comparison of the EU petitions’ system and the petitions’ systems of selected non-European countries with shared democratic values, namely Canada, Brazil and Norway. The aim was to exchange best practices that could inspire the EU petitions’ system to become more efficient and closer to the citizens and to gather evidence on how citizens can bring forward their concerns through petitions. The experts analysed the legal, procedural and institutional framework governing the Canadian, Brazilian and Norwegian petitions’ systems, as well as the differences with the EU system concerning the submission, admissibility, examination and closure of petitions.

    Workshops

    In 2023, the Committee on Petitions organised three workshops covering subject-matters raised in petitions.

     

    On 25 January 2023, the Committee on Petitions held a workshop on “Transparency of pricing and reimbursement of medicinal products”. The workshop discussed transparency from the perspective of patients/consumers, producers of medicinal products, and academic research. The discussions focused on research and development costs of companies and information available on the actual prices paid for medicines. The exchanges concluded that without full transparency on these issues, any discussion on fair medicine prices and access to medicinal products remains highly difficult.

     

    On 22 March 2023, the Committee on Petitions hosted a workshop on “The impact of climate change on social security and the most vulnerable groups”. The workshop focused on the effects of climate change on vulnerable groups in society, such as the elderly, low-income families, and people with disabilities. It also looked into the role attribution science – an area of science that aims to determine which extreme weather events can be explained by or linked to climate change – can play in helping develop (social) policies for the future.

     

    On 29 November 2023, the Committee on Petitions held its “Annual Workshop on the Rights of Persons with Disabilities”, during the first European Parliament’s Disability Rights Week. The workshop focused on two themes: coping with the cost-of-living crisis and on inclusive communication. The first panel looked into the situation of persons with disabilities in the context of recent crises (COVID-19 pandemic, energy crisis and rising inflation) and discussed proposals for measures to overcome obstacles. The second panel debated the European institutions’ efforts to ensure effective communication with and about persons with disabilities, both internally and in their relations with citizens.

    Studies

    In 2023, the committee heard the presentations of the following studies commissioned by the Policy Department for Citizens’ Rights and Constitutional Affairs at its request:

    – Study on ‘FATCA legislation and its application at international and EU level: – An Update’ on 25 January 2023. Professor C. Garbarino described the most relevant developments in the period 2018-2022 in chronological order and drew conclusions, which include a systemic view of the institutional dynamics, a provisional legal analysis on the basis of existing rules and policy suggestions.

    – Study on “Environmental Crime affecting EU financial interest, the economic recovery and the EU’s green deal objectives”, presented by Prof. Dr Michael G. Faure (Professor of comparative and international environmental law at Maastricht University and Professor of comparative private law and economics at Erasmus School of Law in Rotterdam) and Dr. Kévine Kindji, (Research fellow at at the Maastricht European Institute for Transnational Legal Research (METRO) at Maastricht University) on 25 January 2023. The study suggested that despite commendable efforts, the transnational nature of environmental crime and its convergence with organised crime, money laundering and corruption, have not been adequately integrated into current reforms. It concluded that a proper categorization of environmental crime as a ‘serious crime’ was needed as an essential basis for policy reforms;

     

    – Study on ‘The boundaries of the Commission’s discretionary powers when handling petitions and potential infringements of EU law’, presented by Prof. Armin Cuyvers (Leiden University) on 26 April 2023. The study analysed the legal limits on the discretion of the Commission when deciding to launch, or not to launch, an infringement action, especially in response to a petition. In addition, it assessed how the Commission uses this discretion in practice, and formulates recommendations on improved political collaboration between the European Parliament and the Commission, in the interest of EU citizens;

     

    – Study on “Cross-Border Legal Recognition of Parenthood in the EU”, presented by Professor Alina Tryfonidou (Neapolis University) on 17 July 2023. It examined the problem of non-recognition of parenthood between Member States and its causes, the current legal framework and the (partial) solutions it offers to this problem, the background of the Commission proposal, and the text of the proposal. It also provides for a critical assessment of the proposal and issues policy recommendations for its improvement;

     

    – Study on “Compensation for Victims of climate change disasters”, presented by Professor Michael Faure (Maastricht University and Erasmus Universit), on 18 July 2023. The study outlined the dangers and effects of climate change in the EU, as well as the EU policies and mechanisms to deal with climate change disasters. It also analysed the types of compensation available to victims of climate change disasters in the EU and in a representative selection of Member States and formulated several policy recommendations;

     

    – Study on “Homelessness in the European Union” presented by Professor Eoin O’Sullivan, (Trinity College) on 30 November 2023. The study insisted on the need to change systems that respond to homelessness as an issue of individual dysfunction and inadequacy, to systems that actually end homelessness. Public policy should aim to prevent homelessness in the first instance. It highlighted that the duration of homelessness should be minimised by rapidly providing secure, affordable housing, in order to reduce further experiences of homelessness, decrease costly emergency accommodation, and alleviate trauma associated with homelessness.

     

    In addition, in the frame of the Annual Workshop on the Rights of Persons with Disabilities on 29 November 2023, the following study has been presented by Magdi Birtha (European Centre for Social Welfare Policy and Research):

    – Study on “Targeted measures for persons with disabilities to cope with the cost-of-living crisis”. The study analysed the impact of the ongoing cost-of-living and energy crises on the standard of living for persons with disabilities. Based on available evidence, it provided for an overview on legislation, policy measures and schemes that support persons with disabilities and their families to cope with the rising cost of living at EU level and in selected Member States.

    Key issues

    Internal Market

    It is worth noting the high increase in 2023 in the number of petitions on internal market issues. This rise is in large part due to a high number of petitions submitted on the situation of the beach concessions in Italy in particular on alleged non-compliance with Directive 2006/123/EC on liberalisation of services (‘Bolkestein Directive’). A second major topic is related to the citizens’ concerns over the reintroduction of border checks between some Member States (e.g. Denmark and Sweden, Denmark and Germany), thus limiting the free movement of persons within the EU and other aspects such as the strengths and the weaknesses, the extension of the Schengen area, as well as the costs of Non-Schengen in particular for Romania and Bulgaria.

    The Committee adopted a short motion of resolution on the Accession to the Schengen area on 27 June 2023 and organised a public hearing on Schengen Borders: – issues raised by petitioners on 18 July 2023.

    Fundamental Rights

    Still in 2023, the committee received a high number of petitions on fundamental rights, including alleged breaches of the General Data Protection Regulation in different EU countries and on the respect of the rule of law and democracy.

    In addition, the Committee continued to receive petitions on the violation of the human rights in several third countries and a series of petitions on the fundamental rights of LGBT-EU citizens.

    Other relevant topic concerned the homelessness in the EU, how to deal with this sensitive issue and a study has been presented on November 2023, insisting on the need to change systems that respond to homelessness as an issue of individual dysfunction and inadequacy, to systems that actually end homelessness, with a new role of the public sectors.

    Environmental issues

    In 2023, environmental issues remained high in citizens’ concerns and the committee paid paramount attention to them. The protection of the environment was discussed in almost all committee meetings, on the basis of petitions. Topics such as protection of wildlife and forest policy within the EU have been discussed as well as alleged breaches of the Habitats Directive in some Member States.

    The Committee exanimated also petitions on the protection of the quality of groundwater resources against chemical environmental pollution and on control of the air pollution and air quality safeguarding of the health of the population concerned.

    In addition, the committee held fact-finding visit to Romania (Bucharest, Sfântu Gheorghe and Suceava), in relation to several petitions that raised some issues as the management and the protection of the brown bear population and the illegal logging in the country.

    Other topics submitted to the attention of the PETI committee have concerned alleged breaches of EU environmental law and the new dimension of the climate change. In this frame, the Committee on Petitions held a workshop on the impact of climate change on social security and the most vulnerable groups on March 2023 and in its meeting of July 2023, a study on Compensation for victims of climate change disasters has been presented and discussed.

    The animal welfare became a relevant topic in 2023, with a series of petitions calling for a revision of the legislation on animal welfare and a specific legislation for the protection and management of companion, domestic and stray animals inside the EU. The Committee examined petitions against the cruel treatment of animals in different Member States and proposed to have a Commissioner specifically competent for the animal welfare issues.

    Disability issues

    The Committee on Petitions plays a specific protection role as regards compliance with the United Nations Convention on the Rights for Persons with Disabilities (UNCRPD) within the policymaking and legislative actions at EU level. Within this responsibility, the committee deals with petitions on disability issues. It is worth stressing that in 2023 the number of petitions on disability (22) slightly decreased in comparison with 2022 but almost doubled as compared to 2021 (28 in 2022 and 13 in 2021). In 2023, the committee continued examining petitions on disability revealing that the main challenges remain discrimination, access to education and employment as well as inclusion. Special attention was given by the committee to Petition No 0822/2022 asking for the European Disability Statute to contemplate the rights of people with autism followed by the approval of a short motion of resolution on the same topic, Petition No 0756/2019 on an EU-wide disability card, Petition No 1056/2016 requesting the European Parliament allow for the tabling of petitions in national sign languages used in the EU as well as Petition No 0569/2023 on the accessibility of public transport for wheelchair users in Belgium.

    From 13 June to 15 June 2023, the Committee on Petitions participated in a joint ad hoc EMPL, LIBE and PETI delegation to the 16th session of the Conference of States Parties to the Convention on the Rights of Persons with Disabilities (CRPD COSP), which took place at the United Nations Headquarters, New York. The main purpose of the delegation was to build on the well-established contacts of the previous year and to highlight and guarantee Parliament’s oversight in the implementation and monitoring of the UN CRPD, within the “Team Europe” cooperation. It gave the delegation the opportunity to exchange views and discussed how ensuring equal access to and accessibility of sexual and reproductive health services for persons with disabilities and improve their digital accessibility.

     

    Finally, on 29 November 2023, the Committee hosted the Annual Workshop on the Rights of Persons with Disabilities, focusing in the first part on ‘Coping with the cost-of-living crisis’. where the situation of persons with disabilities in the face of recent crises has been presented (the energy crisis following the Russian invasion of Ukraine, together with rising inflation) and some proposals for targeted measures to overcome obstacles have been discussed (EU funds, the European Social Fund Plus and temporary instruments, the Recovery and Resilience Funds (RRF)). In the second panel on ‘Inclusive communication’ the focus was on the efforts made by the European Institutions to ensure effective communication with and about persons with disabilities, both internally and in their relations with citizens.

    Reports, Motions for Resolutions and Opinions

    The Committee on Petitions worked intensely to adopt a considerable number of parliamentary files.

     

    In 2023, the Committee on Petitions adopted three own initiative reports as follows:

     

    – Report on the Activities of the European Ombudsman – Annual Report 2021” (2022/2141(INI)) PETI/9/10044 – Rapporteur: Anne Sophie Pelletier (GUE) – adopted on 28 February 2023;

    Report under Rule 227(7) on the Deliberations of the Committee on Petitions in 2022” (2023/2047(INI)) PETI/9/11741 – Rapporteur: Alex AGIUS SALIBA (S&D) – adopted on 24 October 2023;

    – Report on the Activities of the European Ombudsman – Annual Report 2022” (2023/2120(INI)) PETI/9/12602 – Rapporteur: Peter JAHR (EPP) – adopted on 29 November 2023;

     

    The Committee also adopted the following fact-finding visits mission reports:

     

    – Report of the fact-finding visit to Poland 19-21 September 2022 PETI/9/11016 – adopted on 22 March 2023;

    – Report of the fact-finding visit to Washington D.C. 18-22 July 2022 PETI/9/11015 adopted on 22 March 2023;

    – Report of fact-finding visit to Germany from 3 to 4 November 2022 on the functioning of the “Jugendamt” (Youth Welfare Office) PETI/9/11343 adopted on 26 April 2023;

    – Report of Fact-Finding Visit to Romania from 15 to 18 May 2023 on the management and the protection of the brown bear population and the illegal logging in Romania, as raised in Petitions Nos: 1188/2019, 1214/2019, 0685/2020, 0534/2021, 0410/2022 (the brown bear population), as well as 1248/2019, 0408/2020, 0722/2020, 1056/2021 (the illegal logging) PETI/9/13165 – adopted on 29 November 2023;

     

    In addition, the committee adopted the following Motions for Resolutions:

     

    – Short motion for resolution on the Accession to the Schengen area 2023/2668(RSP), PETI/9/11832 – Rapporteur: Dolors Montserrat (Chair) – adopted on 27 June 2023;

    – Short motion for resolution on Standardised dimensions for carry-on luggage 2023/2774(RSP) PETI/9/12441 – Rapporteur: Dolors Montserrat (Chair) – adopted on 20 September 2023;

    – Short motion for resolution on Harmonising the rights of autistic persons, 2023/2768 (RSP) PETI/9/12151 – Rapporteur: Dolors Montserrat (Chair) – adopted on 20 September 2023;

     

    In 2023, the Committee on Petitions also adopted two opinions, as follows:

     

    – Opinion in form of a letter on Monitoring the application of European Union Law 2020, 2021 and 2022, 2023/2080(INI) PETI/9/12224 – Rapporteur: Loránt Vincze (EPP) – adopted on 20 September 2023;

    – Opinion in form of a letter on Establishing the European Disability Card and the European Parking Card for persons with disabilities, 2023/0311(COD) PETI/9/13175 – Rapporteur: Dolors Montserrat (EPP) – adopted on 29 November 2023;

     

    Finally, the committee adopted the following texts:

     

    – Amendments to the Budget 2024 – adopted on 18 July 2023.

    – Oral Question on Improving the strategic approach on the enforcement of EU Law 2023/2886(RSP) PETI/9/13266 – Rapporteur: Dolors Montserrat (Chair) – adopted on 24 October 2023.

     

    ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

    The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

    INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

    Date adopted

    8.4.2025

     

     

     

    Result of final vote

    +:

    –:

    0:

    16

    13

    4

    Members present for the final vote

    Peter Agius, Alexander Bernhuber, Damien Carême, Alma Ezcurra Almansa, Gheorghe Falcă, Chiara Gemma, Isilda Gomes, Sandra Gómez López, Cristina Guarda, Paolo Inselvini, Michał Kobosko, Sebastian Kruis, Murielle Laurent, Dolors Montserrat, Valentina Palmisano, Pina Picierno, Bogdan Rzońca, Pál Szekeres, Jana Toom, Nils Ušakovs, Ivaylo Valchev, Anders Vistisen, Maria Zacharia

    Substitutes present for the final vote

    Gordan Bosanac, Hana Jalloul Muro, Elena Nevado del Campo

    Members under Rule 216(7) present for the final vote

    Maravillas Abadía Jover, Adrian-George Axinia, Marieke Ehlers, Tomasz Froelich, Eleonora Meleti, Elena Sancho Murillo, Marion Walsmann

     

     

     

    FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

    16

    +

    ECR

    Bogdan Rzońca

    PPE

    Maravillas Abadía Jover, Peter Agius, Alexander Bernhuber, Alma Ezcurra Almansa, Gheorghe Falcă, Eleonora Meleti, Dolors Montserrat, Elena Nevado del Campo, Marion Walsmann

    PfE

    Marieke Ehlers, Sebastian Kruis, Pál Szekeres, Anders Vistisen

    Renew

    Michał Kobosko, Jana Toom

     

    13

    ESN

    Tomasz Froelich

    NI

    Maria Zacharia

    S&D

    Isilda Gomes, Sandra Gómez López, Hana Jalloul Muro, Murielle Laurent, Pina Picierno, Elena Sancho Murillo, Nils Ušakovs

    The Left

    Damien Carême, Valentina Palmisano

    Verts/ALE

    Gordan Bosanac, Cristina Guarda

     

    4

    0

    ECR

    Adrian‑George Axinia, Chiara Gemma, Paolo Inselvini, Ivaylo Valchev

     

    Key to symbols:

    + : in favour

     : against

    0 : abstention

    MIL OSI Europe News

  • MIL-OSI Europe: Briefing – Tourism in transport policy: State of play and future perspectives – 06-05-2025

    Source: European Parliament 2

    With the appointment of Apostolos Tzitzikostas as European Commissioner for Sustainable Transport and Tourism, tourism policy has received new impetus. In the European Commission’s communications, returning policy objectives are geared towards making tourism greener, more digital, more competitive and – since the COVID-19 pandemic – more resilient. The Commission has also set out several initiatives to improve the travel experience by protecting the rights of passengers and making tourism more accessible for people with disabilities. In addition, the EU makes use of digital tools for issuing or refusing travel authorisations, processing biometric data and protecting travellers’ personal data. Furthermore, it addresses the environmental impact of tourism with legislation that encourages energy efficiency and the use of alternative fuels. It also promotes eco-friendly accommodation and little-known destinations in order to cope with overtourism. Service providers in the travel industry face several challenges and opportunities. The sector is affected, among other things, by new taxation rules. Service providers will be able to collect more reliable information on hosts and their short-term rental properties. Funding for tourism is spread across several EU programmes. Some are meant to make the sector more resilient, others to support businesses, protect the environment or encourage cultural exchange. Looking ahead, the Commission work programme for 2025 envisages amending passenger rights, digitising passports and identity cards, facilitating consular protection and protecting travellers.

    MIL OSI Europe News

  • MIL-OSI Europe: Press release – €8 million in EU aid for 2,400 dismissed workers in Belgium

    Source: European Parliament 3

    Employees affected by the bankruptcy of Belgian automotive company Van Hool will benefit from an EU aid package worth €8 million.

    On Tuesday, Parliament approved Belgium’s request for support from the European Globalisation Adjustment Fund for Displaced Workers (EGF) by 598 votes in favour, 48 against and with 5 abstentions.

    MEPs acknowledged that “the European automotive and supplier industry is facing unprecedented pressure from both external and internal challenges, such as distortion of competition and high-energy costs.”

    Van Hool produced coaches, buses, trolleybuses, and trailers. The company was declared bankrupt in April 2024 following a sharp decline in sales prompted by the COVID-19 pandemic, and exacerbated by Russia’s war of aggression against Ukraine, rising inflation, and supply chain disruptions. As a result, 2,400 workers were dismissed, one third of them aged 50 or over, and 80 % with outdated skillsets.

    The support package finances counselling, vocational orientation, job-search assistance, and new professional and digital skills training. It is worth €9.4 million in total – with the EGF providing €8 million and Belgium’s Flemish Employment and Vocational Training Service (VDAB) funding €1.4 million. Support measures have been available since the layoffs.

    Background

    Under the EGF Regulation for the 2021-2027 period, the fund supports displaced workers and self-employed individuals who have lost their jobs. EGF support is available for those affected by all types of unexpected major restructuring events, including the economic effects of the COVID-19 pandemic and Russia’s invasion of Ukraine, as well as broader trends, such as decarbonisation and automation. Member states can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.

    Once a member state submits an application detailing the redundancies and planned support measures, the Commission evaluates it. If the application meets the EGF criteria, the Commission makes a proposal to mobilise funds that must be approved by Parliament and Council. Since 2007, the EGF has intervened in 182 cases, allocating €700 million to help more than 170,000 people in 20 Member States.

    MIL OSI Europe News

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

    Source: GlobeNewswire (MIL-OSI)

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

    First Quarter 2025 Financial Highlights:

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

    Recent Strategic Updates

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

    Management Commentary:

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

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

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

    Capital

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

    2025 Guidance: Poised for Growth

    CareCloud is reconfirming its earnings guidance for 2025, expecting:

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

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

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

    Conference Call Information

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

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

    Use of Non-GAAP Financial Measures

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

    Forward-Looking Statements

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

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

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

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

    About CareCloud

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

    Follow CareCloud on LinkedInX and Facebook.

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

    SOURCE CareCloud

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

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

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

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

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

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP MEASURES

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

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

    Adjusted EBITDA to GAAP Net Income (Loss)

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

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


    Non-GAAP Adjusted Operating Income to GAAP Operating Income

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

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


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

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

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

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

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


    Net cash provided by operating activities to free cash flow

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

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

    Explanation of Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI: Lantronix to Participate in the 22nd Annual Craig-Hallum Institutional Investor Conference on May 28, 2025

    Source: GlobeNewswire (MIL-OSI)

    IRVINE, Calif., May 06, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for IoT solutions enabling Edge AI Intelligence, today announced that Lantronix CEO Saleel Awsare and CFO Brent Stringham will participate in one-on-one meetings with investors at the 22nd Annual Craig-Hallum Institutional Investor Conference to be held on May 28, 2025, at the Depot Renaissance Hotel in Minneapolis.

    Interested investors should contact Lantronix CFO Brent Stringham at investors@lantronix.com to inquire about availability for a one-on-one meeting.

    About Lantronix

    Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

    For more information, visit the Lantronix website.

    “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements related to Lantronix products or leadership team. These forward-looking statements are based on our current expectations and are subject to substantial risks and uncertainties that could cause our actual results, future business, financial condition, or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. The potential risks and uncertainties include, but are not limited to, such factors as the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to the COVID-19 pandemic or other outbreaks, wars and recent tensions in Europe, Asia and the Middle East, or other factors; future responses to and effects of public health crises; cybersecurity risks; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to successfully implement our acquisitions strategy or integrate acquired companies; difficulties and costs of protecting patents and other proprietary rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; and any additional factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report, as well as in our other public filings with the SEC. Additional risk factors may be identified from time to time in our future filings. In addition, actual results may differ as a result of additional risks and uncertainties about which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

    Lantronix Media Contact:        
    Gail Kathryn Miller
    Corporate Marketing &
    Communications Manager
    media@lantronix.com

    Lantronix Analyst and Investor Contact:        
    investors@lantronix.com

    ©2025 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

    Declares Second Quarter 2025 Dividend of $0.25 Per Share

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

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

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

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

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

    First Quarter 2025 Operating Results

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

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

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

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

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

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

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

    Balance Sheet

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

    Conference Call

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

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

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

    About Willis Lease Finance Corporation

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

    Forward-Looking Statements

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

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

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

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

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

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

    2025 First Quarter Highlights

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

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

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

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

    Full Year 2025 Guidance

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

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

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

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

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

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

    Supplemental Presentation and Conference Call Information

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

    About ARRAY Technologies, Inc.

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

    Investor Relations Contact:

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

    Media Contact:

    Nicole Stewart
    505-589-8257

    Forward-Looking Statements

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

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

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

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

    Non-GAAP Financial Information

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

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

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

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

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

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

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

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

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

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


    (a)
    Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

    Array Technologies, Inc.
    Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited)
    (in thousands, except per share amounts)
    The following table reconciles net income (loss) to Adjusted net income:
      Three Months Ended March 31,
        2025       2024  
    Net income $ 16,746     $ 2,165  
    Preferred dividends and accretion   14,443       13,502  
    Net income (loss) to common shareholders $ 2,303     $ (11,337 )
    Amortization of Intangibles   4,889       9,254  
    Amortization of developed technology   3,639       3,639  
    Amortization of debt discount and issuance costs   1,393       1,552  
    Series A Pref stock accretion   7,241       6,665  
    Equity based compensation   2,798       4,020  
    Change in fair value of contingent consideration   (150 )     (735 )
    Certain legal expenses (a)   1,083       730  
    Other costs(b)         42  
    Income tax expense of adjustments(c)   (3,474 )     (4,852 )
    Adjusted net income $ 19,722     $ 8,978  
           
    Income (loss) per common share      
    Basic $ 0.02     $ (0.07 )
    Diluted $ 0.02     $ (0.07 )
    Weighted average number of common shares outstanding      
    Basic   152,076       151,351  
    Diluted   152,783       151,351  
           
    Adjusted net income per common share      
    Basic $ 0.13     $ 0.06  
    Diluted $ 0.13     $ 0.06  
    Weighted average number of common shares outstanding      
    Basic   152,076       151,351  
    Diluted   152,783       152,243  


    (a)
    Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

    (c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

    Array Technologies, Inc.
    Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense and Free Cash Flow Reconciliation (unaudited)
    (in thousands, except per share amounts)
    The following table reconciles General and administrative expense to Adjusted general and administrative expense:
      Three Months Ended March 31,
      2025   2024
    General and administrative expense 43,945     37,784  
    Equity based compensation (2,798 )   (4,020 )
    Certain legal expenses(a) (1,083 )   (730 )
    Other costs(b)     (42 )
    Adjusted general and administrative expense 40,064     32,992  


    (a)
    Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

    (b) For the three months ended March 31, 2024, other costs represent costs related to Capped-Call treatment evaluation for prior year.

    The following table reconciles cash provided by (used in) operating activities to Free cash flow:

      Three Months Ended March 31,
      2025   2024
    Net cash provided by (used in) operating activities (13,059 )   47,502  
    Purchase of property, plant and equipment (2,352 )   (2,396 )
    Free cash flow (15,411 )   45,106  

    The MIL Network

  • MIL-OSI: Marquette National Corporation Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, May 06, 2025 (GLOBE NEWSWIRE) — Marquette National Corporation (OTCQX: MNAT) today reported net loss of $2.9 million for the quarter ended March 31, 2025, compared to net income of $8.5 million for the first three months of 2024. The loss per share for the first three months of 2025 was $(0.67), as compared to income of $1.93 per share for the comparable period in 2024.

    At March 31, 2025, total assets were $2.217 billion, an increase of $9.6 million, compared to $2.208 billion at December 31, 2024. Total loans increased by $4.6 million, to $1.410 billion compared to $1.405 billion at the end of 2024. Total deposits increased by $10.3 million, or 1%, to $1.750 billion compared to $1.740 billion at the end of 2024.

    Paul M. McCarthy, Chairman & CEO, said, “the primary reason for the decrease in consolidated earnings was a lower level of unrealized gains on the Company’s equity portfolio in the first quarter of 2025. The decrease in unrealized gains on the Company’s equity portfolio was partially offset by an increase in net interest income. Other comprehensive income was positive for the first quarter and helped deliver an increase to tangible book value per share for the first quarter.”

    Marquette National Corporation is a diversified financial holding company and the parent of Marquette Bank, a full-service, community bank that serves the financial needs of communities in Chicagoland. The Bank has branches located in: Chicago, Bolingbrook, Bridgeview, Evergreen Park, Hickory Hills, Lemont, New Lenox, Oak Forest, Oak Lawn, Orland Park, Summit and Tinley Park, Illinois.

    For further information on financial results, visit: https://www.otcmarkets.com/stock/MNAT/disclosure.

    Special Note Concerning Forward-Looking Statements. 
    This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

    A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (ii) effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations and tax regulations; (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (v) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the bank failures in 2023; (vi) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vii) increased competition in the financial services sector, including from non-bank competitors such as credit unions and fintech companies, and the inability to attract new customers; (viii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (ix) unexpected results of acquisitions which may include failure to realize the anticipated benefits of the acquisitions and the possibility that transaction costs may be greater than anticipated; (x) the loss of key executives and employees, talent shortages and employee turnover; (xi) changes in consumer spending; (xii) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xiii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiv) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xvi) the overall health of the local and national real estate market; (xvii) the ability to maintain an adequate level of allowance for credit losses on loans; (xviii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xix) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xx) the level of non-performing assets on our balance sheets; (xxi) interruptions involving our information technology and communications systems or third-party servicers; (xxii) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiii) changes in the interest rates and repayment rates of the Company’s assets; (xxiv) the effectiveness of the Company’s risk management framework, and (xxv) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

    Marquette National Corporation and Subsidiaries
    Financial Highlights
    (Unaudited)
    (in thousands, except share and per share data)
                     
    Balance Sheet
      03/31/25   12/31/24   Percent
    Change
     
                     
    Total assets $2,217,293     $2,207,663     0 %
    Total loans, net 1,395,105     1,390,799     0 %
    Total deposits 1,750,071     1,739,799     1 %
    Total stockholders’ equity 174,216     173,579     0 %
                     
    Shares outstanding 4,367,449     4,367,477     0 %
    Book value per share $39.89     $39.74     0 %
    Tangible book value per share $31.80     $31.65     0 %
                     
    Operating Results
      Three Months Ended March 31,   Percent
    Change
     
      2025   2024      
    Net Interest income $12,098     $11,025     10 %
    Provision for credit losses 328     200     64 %
    Realized securities gains, net 6,316     215       *
    Unrealized holding gains (losses) on equity securities and exchange traded funds (11,963 )   9,860       *
    Other income 3,658     4,331     -16 %
    Other expense 14,086     13,835     2 %
    Income tax expense (benefit) (1,357 )   2,930       *
                     
    Net income (loss) (2,948 )   8,466       *
                     
    Basic and fully diluted earnings (loss) per share $(0.67 )   $1.93       *
    Weighted average shares outstanding 4,367,473     4,381,148     0 %
                     
    Cash dividends declared per share $0.31     $0.28     11 %
                     
    Comprehensive income $1,992     $7,404     -73 %
                     
    * Not meaningful
                     

    For more information:
    Patrick Hunt
    EVP & CFO
    708-364-9019
    phunt@emarquettebank.com

    The MIL Network

  • MIL-OSI Russia: Iceland: Staff Concluding Statement of the 2025 Article IV Mission

    Source: IMF – News in Russian

    May 6, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC: An International Monetary Fund mission, led by Magnus Saxegaard and comprising Thomas Gade, Amit Kara, and Yurii Sholomytskyi, conducted discussions for the 2024 Article IV consultation with Iceland virtually during April 7-11, 2025, and in Reykjavik, Iceland, during April 28 to May 5, 2025. At the conclusion of the visit, the mission issued the following statement:

    A successful tightening of macroeconomic policies has slowed the economy and reduced imbalances accumulated after the pandemic. The challenges now are to fully return inflation back to target while ensuring a soft landing for the economy; to build resilience by gradually increasing fiscal buffers; and to strengthen productivity and further diversify the economy to support medium-term growth and reduce Iceland’s vulnerability to shocks.

    The economy slowed sharply in 2024, but growth is expected to pick up in 2025 and medium-term prospects remain favorable. Growth slowed to 0.5 percent in 2024 (from 5.6 percent in 2023) due largely to idiosyncratic factors (e.g., a disappointing fishing season and constraints on energy supply) that reduced exports, as well as subdued consumption growth. Growth is expected to rise to 1.8 percent in 2025 and 2.4 percent in 2026 supported by a recovery in exports, higher real wages, and continued monetary easing. The direct impact of escalating global trade tensions is projected to be limited given that most goods exports are destined for Europe; this projection assumes that the pharmaceutical sector, which is more reliant on the US market, remains exempt from tariffs. However, Iceland will be indirectly affected by lower growth in its trading partners. Inflation is projected to remain sticky due to elevated inflation expectations and still high wage growth, declining gradually to the Central Bank of Iceland’s (CBI’s) 2.5 percent inflation target in the second half of 2026. The medium-term growth outlook is positive, with the expansion of higher value-added export-oriented sectors expected to boost productivity growth, and migrant labor inflows facilitating a modest increase in employment.

    Risks to growth are tilted to the downside while risks to inflation are broadly balanced. The impact of rising trade tensions could be larger than projected if US tariffs are extended to pharmaceuticals products, or if Iceland is affected by potential EU retaliation. Also, a reduction in the number of tourists travelling to and from the US could negatively impact tourism. Inflation could rise if trade tensions trigger supply chain disruptions or capital flight weakens the exchange rate. Conversely, capital inflows could put upward pressure on the exchange rate and weaken competitiveness. On the domestic side, attacks on physical or digital infrastructure could disrupt payment flows and thus economic activity and financial stability. A continuation of recent years’ dry weather could curtail energy supply and weaken exports. Second-round effects from higher wage growth could keep inflation elevated, while a premature loosening of monetary policy could further de-anchor inflation expectations. Upside risk include a reduction in household savings that would bolster consumption, and a faster-than-anticipated expansion of activity in pharmaceuticals and aquaculture.

    Fiscal Policy: Building Buffers to Bolster Resilience

    The authorities’ fiscal targets are suitably ambitious. The Medium-Term Fiscal Strategy (MTFS) projects a general government deficit this year of 1.3 percent of GDP, close to staff’s projection of 1.2 percent of GDP and down from 3.5 percent of GDP in 2024. The resulting 0.6 percentage point contractionary fiscal impulse is appropriate given still elevated inflation. The authorities’ medium-term fiscal targets, which entail turning the fiscal deficit into a surplus by 2028, are suitably ambitious considering that Iceland’s public indebtedness is higher than that of most Nordic countries despite the economy being more shock prone.

    The consolidation measures in the MTFS will help the authorities achieve their fiscal targets. Staff welcomes that this year’s MTFS identifies all fiscal measures planned by the authorities to achieve their medium-term fiscal targets; this significantly increases the credibility of the consolidation. Measures appropriately include a combination of expenditure reductions (e.g., streamlining operations and merging of institutions) and revenue measures (e.g., expanding kilometer-based taxation to all vehicles and increasing natural resource rent taxation on tourism and fisheries). Staff projections that only include measures that have been presented to Parliament in a legislative proposal, indicate that about 0.5 percent of GDP in additional measures will be needed over the next five years to meet the authorities’ targets. The measures outlined in the MTFS would cover this gap, but additional fiscal effort could be necessary if spending increases more than anticipated or if the yield from revenue measures falls short of expectations (see below).

    Increasing infrastructure spending while safeguarding fiscal sustainability would bolster Iceland’s growth prospects. The government’s intention to scale up public investment is welcome given infrastructure gaps in transport and energy. However, the MTFS projects a medium-term decline in government investment as a share of GDP compared to recent years. Staff recommends to, at a minimum, maintain the current level of government investment within the MTFS deficit targets. As noted in the MTFS, identifying opportunities for Iceland’s pension funds to scale up their financing of infrastructure in a manner consistent with their fiduciary duties could help complement these efforts, though care should be taken to contain any increase in fiscal risks. Partnering with multilateral investment banks or international infrastructure funds could provide useful expertise with private financing of infrastructure projects. Streamlining permitting and licensing procedures would help speed up infrastructure deployment.

    Additional fiscal effort could be required if planned measures fall short of expectations, or to scale up government investment. In such a scenario, the authorities could consider: (i) increasing the preferential VAT rate and/or limiting the items that benefit from it; (ii) increasing housing taxation (see below); (iii) streamlining R&D incentives including by reassessing the 2020 increase in the ceiling on eligible business R&D expenditure (see below); and (iv) carrying out a comprehensive review of public expenditure to identify potential savings.

    Activation of revised fiscal rules in 2026 is welcome; however, their credibility would be enhanced by strengthening the Fiscal Council.

    • The revised fiscal framework—which broadly aligns with staff’s recommendations in the 2024 Article IV—includes a net expenditure growth rule instead of the previous budget balance rule. It preserves the 30 percent of GDP net debt ceiling though the speed at which this is to be achieved will be more flexible than in the past. The revised framework will allow the authorities to factor in the state of the economy in their consolidation plans and reduce procyclicality.
    • The Fiscal Council, which will be responsible for monitoring compliance with the fiscal rules, should be tasked with evaluating the macroeconomic and fiscal projections underpinning the MTFS. The intention is also that the Council will be responsible for monitoring productivity developments and for making proposals for reforms. This would require a significant increase in the capacity and resources of the Fiscal Council.
    • To bolster transparency and enable the Fiscal Council to monitor fiscal developments and compliance with the fiscal rules on an ongoing basis, the authorities should start publishing fiscal data corresponding to the coverage of the fiscal rules on a quarterly rather than annual basis as is currently the case, and ensure that these data are independently verifiable. Expanding the coverage of the budget and the fiscal rules to encompass the entirety of the central government would facilitate these efforts. This would also reduce incentives to shift spending and borrowing to parts of the government not covered by the fiscal rules.

    Monetary Policy: Calibrating the Pace of Monetary Easing

    As inflation declines toward the target, the policy rate should be reduced. The current monetary stance is appropriately tight given still elevated inflation and inflation expectations. Staff’s inflation forecast, which envisions reaching the 2.5 percent target in the second half of 2026, is in the IMF’s view consistent with a 250 basis points reduction in the policy rate over the next 4–5 quarters. This policy trajectory, which maintains a tight policy stance (but progressively less so) until inflation expectations become reanchored to the inflation target, would balance the trade-offs between bringing inflation sustainably to target and the risk to the economy from an overly restrictive policy stance. Persistent wage increases above productivity growth or a rise in imported inflation would warrant a more gradual easing of the monetary policy stance, while indications that inflation is likely to undershoot the target on a sustained basis would call for a more rapid reduction in the policy rate. The current elevated uncertainty suggests the pace of monetary easing should be guided more than usual by incoming data. As uncertainty declines the CBI should transition to a more forecast-based inflation targeting environment to increase predictability and reduce financial market volatility.

    The CBI’s decision to commence regular purchases of foreign exchange is opportune given current favorable market conditions and will strengthen its ability to stabilize the foreign exchange market during times of stress. The purchase program, which will be revised as conditions warrant, will help offset a projected decline in reserve coverage over the next two years. Staff agree that, given the current uncertain external environment and the shock prone nature of the economy, it is prudent to maintain a level of reserves well above the lower end of the 100-150 percent of the Fund’s Reserve Adequacy (ARA) range. As noted in the 2024 Article IV consultation, the authorities should also explore options to gradually deepen the foreign currency derivatives market when conditions allow, to encourage greater participation of foreign investors in the domestic bond market and to facilitate hedging of foreign currency risk.

    Financial Sector: Maintaining a Robust Financial System

    The banking system remains resilient and systemic risks are contained, but pockets of vulnerabilities remain that require continued vigilance. Financial institutions are well capitalized and have ample liquidity buffers, while non-performing loans remain low compared to their pre-pandemic average. The financial cycle has decelerated but remains somewhat elevated, while the CBI’s domestic systemic risk indicator has increased slightly although it is below its long-term average. These indicators suggest risks are primarily concentrated in the housing market. An abrupt fall in house prices combined with higher-for-longer interest rates and an economic slowdown could result in a deterioration in asset quality. Risks are partially mitigated by conservative loan-to-value ratios and the strong equity position of most borrowers. Corporate credit risk has increased modestly, including in the hospitality sector, and could rise further if rising trading tensions trigger a decline in tourist arrivals. Meanwhile, cybersecurity threats are an increasing concern, and staff welcomes the authorities’ efforts to enhance operational security and enhance the resilience of the domestic payment system.

    The current macroprudential stance is broadly appropriate, though there may be scope for some easing if financial conditions improve as anticipated. Overall capital requirements on Icelandic banks are relatively high compared to other European countries, bolstering banks’ resilience in a shock prone economy. While these requirements are broadly appropriate given still elevated risks in the housing market, there may be scope for some easing if systemic risks recede. It would be prudent to defer such a decision until the impact of the Capital Requirements Regulation (CRR) III—expected to take effect by mid-2025—is clear. Any easing of the macroprudential stance should take care to safeguard the availability of releasable capital under the countercyclical capital buffer (CCyB). Borrower-based measures (BBMs) have contributed to contain household credit risk and should remain on hold for now. The government’s plans to reduce the prevalence of CPI-indexed mortgage loans should be carefully timed given the beneficial impact indexation has had on borrower resilience and financial stability.

    Sustaining the momentum in implementing Financial Sector Assessment Program (FSAP) recommendations will require continued efforts. Staff welcomes the significant progress achieved in implementing the recommendations from the 2023 FSAP. Since the 2024 Article IV, progress has been made on operationalizing an Emergency Liquidity Assistance (ELA) framework, while efforts are ongoing with technical assistance from the Fund to enhance AML/CFT supervision of banks. Steps have been taken to strengthen the supervision of pension funds, but more progress is needed on legislative changes to enhance pension fund governance, internal risk controls, and risk management. Focusing on incremental changes rather than comprehensive reforms may facilitate progress moving forward. Further steps are also needed to safeguard the independence and effectiveness of the CBI’s supervisory activities, including through a streamlined and independent budgetary process for financial supervision and improved legal protection for supervisors. Lastly, efforts should continue to strengthen the CBI’s and the financial sector’s operational risk management capacity.

    Structural Policies to Boost Productivity and Diversify the Economy

    Investments in physical and human capital, along with continued efforts to promote innovation and improve allocative efficiency are needed to sustain productivity growth.

    • While the level of labor productivity is high, productivity growth has slowed since the global financial crisis due to lower total factor productivity (TFP) growth and decreasing capital intensity. Staff analysis suggests this is largely the result of a lower share of jobs in high productivity sectors (likely due to the financial sector shrinking to more sustainable levels and the expansion of the tourism sector) rather than a decline in within-sector productivity growth. Meanwhile, the share of fast-growing firms that can drive economy-wide productivity gains is below the EU average.
    • The authorities’ ambition to increase productivity growth is welcome. To achieve this they should: (i) focus on improving infrastructure to facilitate firms’ access to domestic and international markets; (ii) continue their efforts to promote innovation and the creation of more high-growth businesses; (iii) work with stakeholders in the labor market to strengthen incentives for pursuing higher education in fields where there is a shortage of skills; and (iv) streamline professional licensing requirements for foreign nationals.

    Incentives to promote innovation and diversification of the economy are bearing fruit, but there is scope to improve the efficiency of R&D support schemes. Generous tax incentives have made Iceland one of the most attractive jurisdictions in the OECD for R&D investment and contributed to the emergence of several fast-growing innovative firms. However, the sharp increase in public R&D spending has raised concerns about budgetary costs and efficiency. Plans to revise the R&D legislation provide an opportunity to clarify eligibility criteria and thus increase the predictability of the scheme. Also, as noted previously, there may be merit in reassessing the 2020 increase in the ceilings on eligible business R&D expenditures given that it primarily benefits medium and large firms where research suggests R&D support has less impact. Allowing businesses to deduct R&D expenses from payroll taxes could bolster the impact of the scheme given evidence that payroll tax offsets have a greater impact on firms’ R&D tax expenditure. This would also reduce administrative costs by eliminating the need for refunds to loss-making companies.

    Integration of Artificial Intelligence (AI) could bolster productivity growth. Iceland’s strong digital infrastructure, relatively high levels of human capital, and robust legal framework suggest that it is well placed to benefit from AI. Staff analysis indicates that the proportion of jobs that are well positioned to take advantage of productivity gains from AI is higher than in other advanced economies. Conversely, the share of jobs at risk of displacement from AI is smaller, though still significant. To mitigate potential disruptions to the labor market the authorities should provide opportunities for re-skilling and scale up active labor market policies to facilitate the movement of workers between sectors and provide support to the most vulnerable.

    Further efforts are needed to develop a housing strategy that meets the needs of Iceland’s growing population. The government’s plans to tighten control over short-term rentals and increase the supply of housing could help improve housing affordability. Targeted homeowner assistance programs can play a complementary role, though such programs would need to be designed in a way that minimizes fiscal risks and risks to macroeconomic and financial stability. Housing taxation can also play a supportive role in reducing housing market imbalances. For instance, increasing capital gains taxation on secondary homes and investment properties and raising the tax rate on vacant lots in urban areas could not only raise revenue but also play a supportive role in curbing speculative demand and incentivizing supply.

    The IMF team would like to thank the authorities and other interlocutors for their generous hospitality and constructive dialogue.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Boris Balabanov

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/05/05/mcs-iceland-staff-concluding-statement-of-the-2025-article-iv-mission

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI Asia-Pac: President Lai meets Japanese Diet Member and former Minister of Economy, Trade, and Industry Nishimura Yasutoshi

    Source: Republic of China Taiwan

    Details
    2025-05-02
    President Lai meets Atlantic Council delegation
    On the afternoon of May 2, President Lai Ching-te met with a delegation from the Atlantic Council, a think tank based in Washington, DC. In remarks, President Lai said that we have already proposed a roadmap for deepening Taiwan-US trade ties to achieve a common objective of reducing all bilateral tariffs. At the same time, the president said, we will expand investments across the United States and create win-win outcomes for both sides through the trade and economic strategy of “Taiwan plus the US.” The president also emphasized that Taiwan is not only a bastion of freedom and democracy, but also an indispensable hub for global supply chains. He expressed hope that, given shared economic and security interests, Taiwan and the US will generate even greater synergy and prove to be each other’s strongest support. A translation of President Lai’s remarks follows: I welcome you all to Taiwan. In particular, Vice President Matthew Kroenig visited Taiwan last June and now is making another trip less than a year later. He also contributed an important article supporting Taiwan to a major international publication, highlighting the concern that our international friends have for Taiwan. We are truly moved and thankful. On behalf of the people of Taiwan, I sincerely thank all sectors of the US for their longstanding and steadfast support for Taiwan. Especially, as we face the challenges arising from the regional situation, we hope to continue deepening the Taiwan-US partnership. Holding a key position on the first island chain, Taiwan faces military threats and gray-zone aggression from China. We will continue to show our unwavering determination to defend ourselves. I want to emphasize that Taiwan is accelerating efforts to enhance its overall defense capabilities. The government will also prioritize special budget allocations to increase Taiwan’s defense spending from 2.5 percent of GDP to more than 3 percent. This reflects the efforts we are putting into safeguarding our nation and demonstrates our determination to safeguard regional peace and stability. During President Donald Trump’s first term, Taiwan purchased 66 new F-16V fighter jets. The first of these rolled off the assembly line in South Carolina at the end of this March. This is crucial for Taiwan’s strategy of achieving peace through strength. In the future, we will continue to procure defense equipment from the US that helps ensure peace and stability across the Taiwan Strait. We also look forward to bilateral security collaboration evolving beyond arms sales to a partnership that encompasses joint research and development and joint manufacturing, further strengthening our cooperation and exchanges. Taiwan firmly believes in fair, free, and mutually beneficial trade ties. Indeed, we have already proposed a roadmap for deepening Taiwan-US trade ties. This includes our common objective of reducing all bilateral tariffs as well as narrowing the trade imbalance through the procurement of energy and agricultural and other industrial products from the US. At the same time, we will expand investments across the US. We will promote our “Taiwan plus one” policy, that is, the new trade and economic strategy of “Taiwan plus the US,” to build non-red supply chains and create win-win outcomes for both sides. As the US is moving to reindustrialize its manufacturing industry and may hope to become a global manufacturing center for AI, Taiwan is willing to join in the efforts. Taiwan is not only a bastion of freedom and democracy, but also an indispensable hub for global supply chains. We have every confidence that, given shared Taiwan-US economic and security interests, we can generate even greater synergy and prove to be each other’s strongest support. In closing, I thank Vice President Kroenig once again for leading this delegation, demonstrating support for Taiwan. I look forward to exchanging opinions with you all in just a few moments. I wish you a smooth and successful trip. Vice President Kroenig then delivered remarks, first thanking President Lai for hosting them. He said that it is an honor to be here and to lead a delegation from the Atlanta Council, which consists of a mix of former senior US government officials with responsibility for Taiwan and also rising stars visiting Taiwan for the first time. Vice President Kroenig said that they are here at a critical moment, as there is an ongoing war in Europe, multiple conflicts in the Middle East, and increased Chinese aggression in the Indo-Pacific. Moreover, he pointed out, the regimes of China, Russia, Iran, and North Korea are increasingly working together in a new axis of aggressors. Vice President Kroenig indicated that the challenge facing the US and its allies and partners, including Taiwan, is how to deter these autocracies and maintain global peace, prosperity, and freedom, especially in Taiwan, whose security and stability matter, not only for Taiwan, but also for the US and the world. Vice President Kroenig assured President Lai and the people of Taiwan that the US is a reliable partner for Taiwan. The vice president stated that the administration under President Trump is prioritizing the deterrence of China, and that President Trump has announced an intention to have the largest US defense budget in history, more than US$1 trillion, to resource this priority. Pointing out that an America-first president will not help a country that is not helping itself, Vice President Kroenig said that their delegation has been impressed with the steps President Lai and the administration are taking to strengthen Taiwan’s security, including increasing defense spending, developing a societal resilience strategy, and using cutting edge technologies like unmanned systems to promote indigenous defense production. Vice President Kroenig said that more than money and equipment are necessary to secure a democracy against a powerful and ruthless neighbor, adding that history shows that the human factor is the most important. In the end, he said, it will be the will of the people of Taiwan to resist coercion and to defend their home which will be the most important factor determining the future fate of Taiwan and for the ability of the people of Taiwan to chart their own destiny. Vice President Kroenig emphasized that Americans are willing to support Taiwan in this endeavor, but it will be the people of Taiwan and strong and capable leaders like President Lai at the forefront of this struggle, with the firm support of America. Vice President Kroenig said that as the US and Taiwan work together on these challenges, the Atlantic Council looks forward to offering support behind the scenes. Founded in 1961 to support the Transatlantic Alliance, he said, the Atlantic Council is a global think tank, and part of its DNA is working closely with friends and allies in the Indo-Pacific, including Taiwan. He said they look forward to continuing their close and longstanding cooperation with Taiwan through visiting delegations, research and reports, and public and private events. In closing, Vice President Kroenig thanked President Lai again for hosting them and for the work he is doing to secure the free world. The delegation also included former Deputy Assistant Secretary of Defense for East Asia Heino Klinck and former Director for Taiwan Affairs at the White House National Security Council Marvin Park.

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    2025-05-01
    President Lai meets Japan’s LDP Youth Division delegation
    On the morning of May 1, President Lai Ching-te met with a delegation from Japan’s Liberal Democratic Party (LDP) Youth Division. In remarks, President Lai thanked the guests for demonstrating support for deepening Taiwan-Japan ties through concrete actions. The president expressed hope that Taiwan and Japan can continue to conduct exchanges in such areas as national defense, the economy, education, culture, sports, and the arts so that bilateral relations reach even greater heights. A translation of President Lai’s remarks follows: I want to welcome our distinguished guests, who include Diet members in the LDP Youth Division and guests from Junior Chamber International (JCI) Japan, to the Presidential Office. It is also a pleasure to see LDP Youth Division Director Nakasone Yasutaka, House of Representatives Member Hiranuma Shojiro, and House of Councillors Member Kamiya Masayuki again today. I look forward to discussions with all our distinguished guests. The LDP Youth Division and JCI Japan have once again demonstrated support for deepening Taiwan-Japan ties through concrete actions. On behalf of the people of Taiwan, I also want to thank the LDP Youth Division for launching a fundraising campaign to help those affected by the earthquake in Hualien County on April 3 last year. LDP Youth Division members will be important leaders in Japan’s political arena in the future. Taiwan deeply values our exchanges with the Youth Division and hopes to bring about concrete results from such exchanges. Peace and stability in the Taiwan Strait are critical to the security and prosperity of the world, and Taiwan and Japan can work together to promote peace and stability in the Indo-Pacific region. Former Prime Ministers Abe Shinzo and Kishida Fumio, and current Prime Minister Ishiba Shigeru have repeatedly stressed the importance of peace and stability in the Taiwan Strait at important international venues. Taiwan is deeply grateful to Japan’s current and former prime ministers for their concern and support for this issue. Taiwan and Japan can also cooperate in industry and the economy. As our industries are complementary, further cooperation can create win-win outcomes. In the semiconductor industry, for instance, Taiwan’s strengths lie in manufacturing, while Japan’s strengths lie in materials, equipment, and technology. If we work together, the semiconductor industry is sure to see even more robust development. In addition to the economy and national defense, Taiwan and Japan can also conduct exchanges in such areas as education, culture, sports, and the arts. Our countries have long shared deep ties – Director Nakasone’s grandfather, former Prime Minister Nakasone Yasuhiro, was stationed in Taiwan and lived in what is now the Mingde New Residential Quarter of Kaohsiung City’s Zuoying District. I am confident that on the basis of our already solid foundations, Taiwan-Japan relations can reach even greater heights. Director Nakasone then delivered remarks, first thanking President Lai for finding time in his busy schedule to meet with the visiting delegation. He said that the LDP Youth Division sends a visiting delegation to Taiwan each year and is always granted the opportunity to meet with the president, demonstrating his high regard for the delegation, for which the director again expressed his gratitude. He remarked that he, together with House of Representatives Member Suzuki Keisuke, visited Taiwan last July, and that whenever he visits Taiwan, it feels as if he is returning home. Director Nakasone recalled President Lai’s earlier remarks, saying that he hopes the young people of Taiwan and Japan can fully engage in exchanges in the areas of national defense, the economy, culture, education, and the arts. The director said he believes that in today’s complex and difficult international situation, such directives are necessary. This is especially so, he emphasized, during United States President Donald Trump’s second term, when things once taken for granted are no longer so, and when the global economy is undergoing significant changes. Director Nakasone expressed his full support for strengthening Taiwan and Japan’s practical and strategic cooperation. He said he believes each side will be able to benefit from such cooperation and hopes that exchanges will progress toward shared goals. He pointed out that, as maritime nations, Taiwan and Japan share the goals of protecting the ocean and using marine resources wisely, goals that we ought to cooperate on and devote our full efforts to. The peace and stability of the Taiwan Strait are critical to the peace and stability of East Asia and even the world, he said, so we must ensure that the world and its leaders recognize this point, and Japan will do its utmost to advocate for it. Director Nakasone said, on the topic of semiconductors, that Taiwan Semiconductor Manufacturing Company’s new fab in Japan’s Kumamoto Prefecture has made the area very lively, adding that the Japanese government is providing more than 1.25 trillion yen in subsidies. Moving forward, the Japanese government plans to inject an additional 10 trillion yen, he said, to aid in the development of AI and other fields. Noting that Taiwan and Japan both excel in semiconductors, he expressed his hope that each can give free rein to its strengths to produce an even greater effect. Director Nakasone said that despite Taiwan’s facing formidable internal and external circumstances, it saw 4.6 percent economic growth last year under President Lai’s strong leadership, and it continued to promote measures to enhance overall societal resilience, all of which is admirable. In closing, the director thanked President Lai once again for taking the time to meet with them. Also in attendance were Japanese House of Representatives Members Nemoto Taku and Fukuda Kaoru, and Japan-Taiwan Exchange Association Taipei Office Chief Representative Katayama Kazuyuki.

    Details
    2025-04-29
    President Lai meets NBR delegation  
    On the morning of April 29, President Lai Ching-te met with a delegation from the National Bureau of Asian Research (NBR). In remarks, President Lai stated that as Taiwan stands at the very frontline of defense of global democracy, we are actively implementing our Four Pillars of Peace action plan, which includes continuing to enhance our national defense capabilities, demonstrating our commitment to defending freedom and democracy. The president said he hopes to further advance national security and industrial cooperation between Taiwan and the United States. He also expressed hope that this will help boost economic resilience for both sides and establish each as a key pillar of regional security, elevating our relations to even higher levels. A translation of President Lai’s remarks follows: I am delighted to meet with Admiral John Aquilino again today. I also warmly welcome NBR President Michael Wills and our distinguished guests from the bureau to Taiwan. I look forward to exchanging views with you all on Taiwan-US relations and the regional situation. During his tenure as commander of the US Indo-Pacific Command, Admiral Aquilino placed much attention on the Taiwan Strait issue. And the NBR has conducted a wealth of research and analysis focusing on matters of regional security. Thanks to all of your outstanding contributions and efforts, the international community has gained a better understanding of the role Taiwan plays in the Indo-Pacific region and in global democratic development. For this, I want to extend my deepest gratitude. Taiwan stands at the very frontline of defending global democracy and is located at a strategically important location in the first island chain. We are actively implementing our Four Pillars of Peace action plan, which includes continuing to enhance our national defense capabilities, building economic security, demonstrating stable and principled cross-strait leadership, and standing side-by-side with the democratic community to jointly demonstrate the strength of deterrence and safeguard regional peace and stability. At the beginning of this month, I announced an increase in military allowances for volunteer service members and combat troops. The government will also continue to reform national defense and enhance self-sufficiency in defense. In addition, we will prioritize special budget allocations to ensure that Taiwan’s defense budget exceeds 3 percent of GDP. These efforts continue to strengthen Taiwan’s self-defense capabilities and demonstrate our commitment to defending freedom and democracy. As we mark the 46th anniversary of the enactment of the Taiwan Relations Act, we thank the US government for continuing its arms sales to Taiwan and strengthening the Taiwan-US partnership over the years. We believe that, in addition to engaging in military exchanges and cooperation, Taiwan and the US can build an even closer economic and trade relationship, boosting each other’s economic resilience and establishing each as a key pillar of regional security. I expect that your continued assistance will help advance national security and industrial cooperation between Taiwan and the US, elevating our relations to even higher levels. Once again, I welcome our distinguished guests to Taiwan and wish you a pleasant and successful trip. I hope that through this visit, you gain a more comprehensive and in-depth understanding of Taiwan’s economy and national defense. Admiral Aquilino then delivered remarks, thanking the Ministry of National Defense for the invitation and President Lai for receiving and spending time with them. Mentioning that this is his second visit in five months, he said he continues to be incredibly impressed with the president’s leadership and the actions he has taken to secure Taiwan and defend its people. Admiral Aquilino said that he has watched the efforts of the ministers on whole-of-society defense to demonstrate deterrence and added that the pace of the work is nothing short of inspiring. Admiral Aquilino noted that Taiwan’s thriving democracy is incredibly important to the peace and stability of the region. He stated that he, alongside the NBR, will continue to offer support, noting that President Wills and his team are an asset to Taiwan and the US that helps continue our close relationship and ensure peace and stability in the region.  

    Details
    2025-04-28
    President Lai meets Japanese Diet Member and former Minister of State for Economic Security Takaichi Sanae
    On the afternoon of April 28, President Lai Ching-te met with a delegation led by Member of the Japanese House of Representatives and former Minister of State for Economic Security Takaichi Sanae. In remarks, President Lai thanked the government of Japan for repeatedly emphasizing the importance of peace and stability across the Taiwan Strait at important international venues. The president expressed hope that in the face of China’s continually expanding red supply chains, Taiwan and Japan can continue to cooperate closely in such fields as semiconductors, energy, and AI technology to create non-red supply chains that enhance economic resilience and industrial competitiveness for both sides, and jointly pave the way for further prosperity and growth in the Indo-Pacific region. A translation of President Lai’s remarks follows: First, I would like to extend a warm welcome to Representative Takaichi as she returns for another visit to Taiwan. I am also very happy to have Members of the House of Representatives Kikawada Hitoshi and Ozaki Masanao, and Member of the House of Councillors Sato Kei all gathered together here to engage in these very important exchanges. Our visitors will be taking part in many exchange activities during this trip. Earlier today at the Indo-Pacific Strategy Thinktank’s International Political and Economic Forum, Representative Takaichi delivered a speech in which she clearly demonstrated the great importance she places upon the friendship between Taiwan and Japan. For this I want to express my deepest appreciation to each of our guests. The peoples of Taiwan and Japan have a deep friendship and mutual trust. We have a shared commitment to the universal values of democracy, freedom, and respect for human rights, but beyond that, we both have striven to contribute to regional peace and stability. I also want to thank the government of Japan for repeatedly emphasizing the importance of peace and stability across the Taiwan Strait at important international venues. Tomorrow you will all make a trip to Kaohsiung to visit a bronze statue of former Prime Minister Abe Shinzo, who once said, “If Taiwan has a problem, then Japan has a problem.” We will always remember the firm support and friendship he showed Taiwan. Since taking office last year, I have worked hard to improve Taiwan’s whole-of-society defense resilience and implement our Four Pillars of Peace action plan. By strengthening our national defense capabilities, building up economic security, demonstrating stable and principled cross-strait leadership, and deepening partnerships with democratic countries including Japan, we can together maintain peace and stability in the Indo-Pacific region and across the Taiwan Strait. At the same time, in the face of China’s continually expanding red supply chains, we hope that Taiwan and Japan, as important economic and trade partners, can continue to cooperate closely in such fields as semiconductors, energy, and AI technology to create non-red supply chains that further enhance economic resilience and industrial competitiveness for both sides. Going forward, Taiwan will work hard to play an important role in the international community and contribute its key strengths. I hope that, with the support of our guests, Taiwan can soon accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and sign an economic partnership agreement (EPA) with Japan so that we can jointly pave the way for further prosperity and growth in the Indo-Pacific region. Lastly, I thank each of you once again for taking concrete action to support Taiwan. I am confident that your visit will help deepen Taiwan-Japan ties and create even greater opportunities for cooperation. Let us all strive together to keep propelling Taiwan-Japan relations forward.  Representative Takaichi then delivered remarks, first thanking President Lai and Taiwanese political leaders for the warm hospitality they extended to the delegation, and mentioning that the visiting delegation members are all like-minded partners carrying on the legacy of former Prime Minister Abe. July 8 this year will mark the third anniversary of the passing of former Prime Minister Abe, she said, and when the former prime minister unfortunately passed away, President Lai, then serving as vice president, was among the first to come offer condolences, for which she expressed sincere admiration and gratitude. Representative Takaichi stated that Taiwan and Japan are island nations that face the same circumstances and problems, and that Japan’s trade activities rely heavily on ocean transport, so once a problem arises nearby that threatens maritime shipping lanes, it will be a matter of life and death for Japan. Taiwan and Japan are similar, as once a problem arises, both will face food and energy security issues, and supply chains may even be threatened, she said. Regarding Taiwan-Japan cooperation, Representative Takaichi stated that both sides must first protect and strengthen supply chain resilience. President Lai has previously said that he wants to turn Taiwan into an AI island, she said, and in semiconductors, Taiwan has the world’s leading technology. Representative Takaichi went on to say that Taiwan and Japan can collaborate in the fields of AI and semiconductors, quantum computing, and dual-use industries, as well as in areas such as drones and new energy technologies to build more resilient supply chains, so that if problems arise, we can maintain our current standard of living with peace of mind. Representative Takaichi indicated that cooperation in the defense sector is also crucial, and that by uniting like-minded countries including Taiwan, the United States, Japan, the Philippines, and Australia, and even countries in Europe, we can build a stronger network to jointly maintain our security guarantees. Representative Takaichi expressed hope that Taiwan and Japan will continue to strengthen substantive non-governmental relations, including personnel exchange visits and information sharing, so that we can jointly face and respond to crises when they arise. Regarding the hope to sign a Taiwan-Japan EPA that President Lai had mentioned earlier, she also expressed support and said she looks forward to upcoming exchanges and talks. The visiting delegation also included Japan-Taiwan Exchange Association Taipei Office Chief Representative Katayama Kazuyuki.

    Details
    2025-04-23
    President Lai delivers remarks at International Holocaust Remembrance Day event
    On the afternoon of April 23, President Lai Ching-te attended an International Holocaust Remembrance Day event and delivered remarks, in which he emphasized that peace is priceless, and war has no winners, while morality, democracy, and respect for human rights are powerful forces against violence and tyranny. The president stated that Taiwan will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability, defending democracy, freedom, and human rights. He said we must never forget history, and must overcome our differences and join in solidarity to ensure that the next generations live in a world that is more just and more peaceful. Upon arriving at the event, President Lai heard a testimony from the granddaughter of a Holocaust survivor, followed by a rabbi’s recitation of the prayer “El Maleh Rachamim.” He then joined other distinguished guests in lighting candles in memory of the victims. A transcript of President Lai’s remarks follows: To begin, I want to thank the Israel Economic and Cultural Office (ISECO) in Taipei, German Institute Taipei, Taiwan Foundation for Democracy, and Ministry of Foreign Affairs for co-organizing this deeply significant memorial ceremony again this year. I also want to thank everyone for attending. We are here today to remember the victims of the Holocaust, express sympathy for the survivors, honor the brave individuals who protected the victims, and acknowledge all who were impacted by this atrocity. It was deeply moving to hear Ms. [Orly] Sela share the story of how her grandmother, Yehudit Biksz, escaped the Nazi regime. I want to thank her specially for traveling so far to attend this event. From the 1930s through World War II, the Nazi regime sought to exclude Jewish people from society. In their campaign, they perpetrated systematic genocide driven by their ideology. Policies and directives under the authoritarian Nazi regime resulted in the deaths of approximately 6 million Jews. Millions of others were persecuted, including Romani people, persons with disabilities, the gay community, and anyone who disagreed with Nazi ideology. It is one of the darkest chapters in human history. Many countries, including Taiwan, have enacted anti-massacre legislation, and observe a remembrance day each year. Those occasions help us remember the victims, preserve historical memory, and most importantly, reinforce our resolve to fight against hatred and discrimination. Twenty-three years ago, Chelujan (車路墘) Church in Tainan founded the Taiwan Holocaust Memorial Museum. It is the first Jewish museum in Taiwan, and the second Holocaust museum in Asia. Its founding mission urges us to forget hatred and love one another; put an end to war and advocate peace. Many of the exhibition items come from Jewish people, connecting Taiwan closer with Israel and helping Taiwanese better understand the experiences of Jewish people. In this way, we grow to more deeply cherish peace. When I was mayor of Tainan, I took part in an exhibition event at Chelujan Church. I was also invited by the Israeli government to join the International Mayors Conference in Israel, where I visited the World Holocaust Remembrance Center. I will never forget how deeply that experience moved me, and as a result, peace and human rights became even more important issues for me. These issues are valued by Taiwan and our friends and allies. They are also important links connecting Taiwan with the world. Peace is priceless, and war has no winners. We will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability. We will also continue to make greater contributions and work with the international community to defend democracy, freedom, and human rights. This year also marks the 80th anniversary of the end of World War II. However, we still see wars raging around the world. We see a resurgence of authoritarian powers, which could severely impact global democracy, peace, and prosperous development. Today’s event allows for more than reflection on the past; it also serves as a warning for the future. We are reminded of the threats that hatred, prejudice, and extremism pose to humanity. But we are also reminded that morality, democracy, and respect for human rights are powerful forces against violence and tyranny. We must never forget history. We must overcome our differences and join in solidarity for a better future. Let’s work together to ensure that the next generations live in a world that is more just and more peaceful. Also in attendance at the event were Member of the Israeli Knesset (parliament) and Taiwan friendship group Chair Boaz Toporovsky, ISECO Representative Maya Yaron, and German Institute Taipei Deputy Director General Andreas Hofem.

    Details
    2025-04-06
    President Lai delivers remarks on US tariff policy response
    On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.

    MIL OSI Asia Pacific News

  • MIL-Evening Report: Office design isn’t keeping up with post-COVID work styles – here’s what workers really want

    Source: The Conversation (Au and NZ) – By Ozgur Gocer, Senior Lecturer, University of Sydney

    Flexible work has become the new norm, despite the best efforts of companies calling workers back to the office.

    Some employers assume that a return to the old ways of working is both possible and desirable. But for many workers, their perception of the office environment has changed.

    According to our new study, only 27% of surveyed office workers now spend more than 30 hours a week at their workplace — down from 69% before the pandemic. That was typical of a predominantly full-time office-based culture.

    And one in four office workers spends fewer than ten hours a week at the office.

    The study draws on the Building Occupants Survey System Australia (BOSSA), a large database that assesses worker satisfaction with the indoor environmental quality of their office building. It also considers the role of demographic and personal factors in shaping workplace experiences.

    To understand changes in work patterns before and after COVID, we analysed 5,644 surveys pre- and post-COVID. They covered 157 Australian office buildings, mostly in Sydney (81), Melbourne (39) and Brisbane(21).

    Who has cut their office hours the most?

    The trend towards more flexible work reflects broader cultural changes in how Australians work. Flexibility has become essential – not just a pandemic-era necessity.

    In our study, women and employees aged 30–50 reported the most substantial drop in weekly office hours, especially among those who had been working more than 30 hours a week in the office pre-COVID. This reduction likely reflects increased family responsibilities for those respondents – such as school drop-offs or being available during school holidays – alongside a broader pursuit of work-life balance.

    Managers and women are among those most likely to work flexibly.
    Ground Picture/Shutterstock

    Many in this age group hold mid-career or leadership roles, where autonomy and adaptability in work schedules become crucial. The hybrid work model offers this flexibility. It enables employees to better navigate professional demands and care-giving duties.

    This is especially important for women, who continue to do the majority of housework and caring responsibilities. Employees over 50 may return to the office due to lower technological confidence or a preference for face-to-face interaction.

    Office design isn’t keeping up

    Yet the return to the office hasn’t meant a return to the old ways of working. This research shows significant declines in satisfaction with key office factors, including:

    • space functionality and aesthetic experience
    • daylight and external view access
    • personal control over office environment.

    Privacy and disruption – relating to noise, interruptions and lack of visual privacy – emerged as the strongest predictor of productivity and workplace health. Employees said quiet, private spaces were vital for focused work and mental well-being.

    Despite its challenges, working from home is often perceived as more conducive to work-life balance and more cost-effective for both workers and companies.

    What needs to change in office design?

    The contrast between the autonomy and comfort of home offices and the constraints of traditional office spaces may partially explain the decline in workplace satisfaction.

    Better design: Office workers are asking for quiet areas and home-like comforts in the office.
    Shutterstock

    Notably, the shift towards working from home has reshaped employees’ expectations. This has led to a decline in satisfaction with traditional office environments.

    Despite the prevalence of remote work, a substantial portion of employees still operate from the same pre-pandemic workplaces.

    As flexible work schedules become the norm, a shift in the notion of the workplace is underway. Spaces need to be designed not just for individual tasks, but to foster collaboration, innovation and social connections.

    Job flexibility has become an essential feature that drives employee satisfaction and engagement. Employees surveyed say they want updated spaces that support both privacy and social interactions:

    I do my best thinking in inspiring spaces. Natural light, spacious meeting rooms, modern furniture, quiet areas, sit/stand desks.

    Another survey respondent explained:

    It would be good to have more private spaces for online meetings, and also to escape from noise.

    This change in employee expectations calls for new office builds with environments that enhance employees’ wellbeing. Workers are asking for features such as comfortable home-like spaces and health-conscious amenities.

    The survey results show workers’ key post-pandemic design priorities include reduced density, physical distancing, reconfigured layouts and better ventilation.

    To improve indoor environmental quality, facilities teams should adopt a holistic approach that combines improved air movement with advanced filtration systems for better air quality, workplace acoustics and greater employee control over environmental settings.

    The workplace is under pressure to evolve into a dynamic, human-centered environment that supports both productivity and personal fulfilment. Many workers surveyed said they would be willing to move to a new office for a better office environment.

    Richard de Dear receives funding from the Australian Research Council.

    Ozgur Gocer and Thomas Parkinson do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. Office design isn’t keeping up with post-COVID work styles – here’s what workers really want – https://theconversation.com/office-design-isnt-keeping-up-with-post-covid-work-styles-heres-what-workers-really-want-254997

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI New Zealand: Government move to kill pay equity process is an attack on women workers – E tū

    Source:

    E tū is slamming the Government’s announcement that it will make it harder for workers to claim pay equity, describing it as an attack on women and a green light to pay them less for work of equal value.

    The changes, announced by Workplace Relations Minister Brooke van Velden, will raise the bar for proving historical undervaluation in female-dominated workforces – cutting off current claims and making new ones near impossible.

    Marianne Bishop, a retired residential aged care worker, says the move is a slap in the face to workers who have been fighting for fairness for years.

    “I am absolutely disgusted. It makes me angry as a woman, and makes me feel like we’re going backwards,” Marianne says.

    “We’ve been fighting for 13 years. To have the rug pulled out from underneath us now is unbelievable. We thought we were going to get there – this just removes our road to fairness.”

    Marianne says the impact on the care sector will be severe.

    “This will make it even harder to get people working in aged care. People won’t go the extra mile anymore – why would they, if they’re not going to get paid fairly? This announcement is terrible for women and families now and in the future.”

    Tamara Baddeley, a home support worker, says the Government’s actions show total contempt for the workers who hold the care system together.

    “This makes me feel f***ing angry. This Government is a nest of vipers – they speak with a forked tongue,” Tamara says.

    “I challenge every single one of them to come and work with us. On our wages. Getting assaulted at work, paying for travel out of your own pocket. Then tell us why cutting off our pay equity claim is a good idea.”

    “Our claim’s been sitting there for 1,040 days. Why the f*** are we still waiting?”

    E tū National Secretary Rachel Mackintosh says the decision is cruel, ideological, and deeply anti-women.

    “The Government is dismantling one of the most important tools for fixing gender-based pay discrimination,” Rachel says.

    “These changes are not about evidence – they are about saving money by keeping women underpaid. It’s a disgraceful reversal of decades of hard-fought progress and an insult to the working women who carried this country through a pandemic.”

    Rachel says workers will not stay silent.

    “We won’t go back to the days where a woman’s work is automatically worth less just because it’s been done by women in the past. We’re not going to stand quietly while this Government rips up the rules and tells us to be grateful for whatever we get.”

    “This is a line in the sand. And women across Aotearoa will fight this every step of the way.”

    MIL OSI New Zealand News

  • MIL-OSI: Willis leverages Moody’s flood data and analytics in its risk modeling suite

    Source: GlobeNewswire (MIL-OSI)

    LONDON, May 06, 2025 (GLOBE NEWSWIRE) — WTW is excited to announce the integration of Moody’s detailed global flood data into Willis’ proprietary risk management tools. This enhanced integration builds upon our strong partnership with Moody’s, which already incorporates Moody’s catastrophe models into Willis’ Property Quantified platform and reflects our shared vision to modernize risk management through advanced modeling and technology.

    By leveraging Moody’s insurance market leading analytics and modeling outputs into Willis’ risk modeling suite, Willis’ clients gain additional insights to assist in the optimization of their insurance programs, investments, and risk management strategies with greater confidence.

    Ben Fidlow Global Head of Core Analytics, stated, “We will continue to invest in technology, data and partnerships for the benefit of our clients. Property risk analysis is a great example of how we rely on internal and external modeling capabilities. Expanding the use of Moody’s analytics across a broader range of perils gives our clients better decision support on how to mitigate and transfer loss potential. This is not a static deliverable, our clients can access Property Quantified directly through our Risk Intelligence Quantified platform, empowering the ownership of risk analysis at the insurance buyer level.”

    Mike Richitelli, Global Head of Insurance Sales for Moody’s, said, “Moody’s is fully committed to continued investment into data, analytics, models, and software that empower the entire risk and insurance value chain to conduct business in more streamlined, efficient, and valuable ways.  This new engagement with Willis demonstrates how our respective technology platforms can integrate to bring tools and valuable insights to risk and insurance decision makers.”

    About WTW

    At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

    Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

    About Moody’s

    In a world shaped by increasingly interconnected risks, Moody’s data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities.

    Moody’s shapes the world’s view of risk for insurers, reinsurers, financial services organizations, and the public sector, with Moody’s RMS™ models underlying the nearly US$2 trillion Property & Casualty industry. We help organizations evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, cyber, and pandemics.

    With a rich history of experience in global markets and a workforce in more than 40 countries, Moody’s gives customers a comprehensive perspective needed to act with confidence and thrive.

    Visit Insurance Solutions at Moody’s to learn more and follow us on LinkedIn.

    Media Contacts

    Sarah Booker
    Sarah.booker@wtwco.com / +44 (0)7917 722040

    Tracy Fine
    Tracy.Fine@moodys.com / 1-415-987-0857

    The MIL Network

  • MIL-OSI Submissions: Economy – KOF Employment Indicator falls to lowest level in four years – KOF

    Source: KOF Economic Institute

    The KOF Employment Indicator has fallen again in the second quarter of 2025 and is now at its lowest level since the beginning of 2021, when the Swiss labour market was still being affected by the COVID pandemic. The Swiss labour market is expected to see subdued growth in both the current quarter and the next.

    The boom years on the Swiss labour market appear to be over for the time being. The KOF Employment Indicator stands at 0.6 points in the second quarter of 2025, down from 2.7 points in the first quarter of this year (revised from 2.6 points). This is the indicator’s lowest level in four years. Analysis for the second quarter of 2025 is based on the responses of around 4,500 firms that were surveyed in April 2025 about their employment plans and expectations. As the KOF Employment Indicator is a leading indicator of actual employment trends, its current value points to a moderate employment outlook for the Swiss labour market over the coming months.

    The decline in the employment indicator is attributable to both of its sub-components: the firms surveyed rate both their current staffing levels and the employment outlook for the next three months less positively than they did in the last quarter. While their assessment of their current staffing levels remains positive on balance, the employment outlook for the next three months is sliding into negative territory, which means that there are more firms that want to reduce their headcount in the next three months than those that are planning to increase it.

    Bleak employment prospects in the manufacturing sector

    The employment outlook in the wholesale, manufacturing and banking sectors is the most negative of all. On balance, a clear majority of the firms surveyed in manufacturing expect to see a reduction in employment. The KOF Employment Indicator for this industry stands at minus 13.2 points. Compared with the last quarter, the indicator for this sector has fallen again and has now been in negative territory since mid-2023.

    On balance, a majority of the firms surveyed in the retail and hospitality sectors are also planning to reduce their workforces. In the remaining sectors, however – particularly in insurance, construction and other services – the number of firms that expect to increase their staffing levels continues to exceed those that do not.

    MIL OSI – Submitted News

  • MIL-OSI Asia-Pac: Stakeholder Consultation in the Medicinal Plant Sector to promote medicinal plants

    Source: Government of India

    Posted On: 05 MAY 2025 9:42PM by PIB Delhi

    A Stakeholder Consultation under the Co-Chairmanship of Secretary, Department of Agriculture and Farmers Welfare, MoA&FW and Secretary, Ministry of AYUSH was held on Monday at Krishi Bhawan, New Delhi to promote the cultivation and use of medicinal plants across the country, observing participation from Ministry of Agriculture and Farmers Welfare, Ministry of AYUSH, Ministry of Food Processing Industries, National Plant Medicinal Board (NPMB), State Horticulture Missions (SHMs), ICAR, State Medicinal Plant Boards, progressive farmers and leading private players from Medicinal Plant industry.

    In his opening remarks, Shri. Devesh Chaturvedi, Secretary, Ministry of Agriculture & Farmers Welfare, highlighted that there is a scope to increase domestic production of medicinal plants as inter-state trade and export of medicinal plants. He highlighted the need for better convergence between Ministry of AYUSH and Agriculture departments and collaboration with State Medicinal Plant Boards, to promote medicinal plants at national level. He also mentioned that important medicinal plants have been included under the Mission for Integrated Development of Horticulture (MIDH) scheme, DA&FW. He stressed that there is a need for a mission-mode program for medicinal plant cultivation, identifying good practices of cultivation, efficient techniques, etc., which will help in the upliftment of the sector. 

    Shri Vaidya Rajesh Kotecha, Secretary, Ministry of AYUSH highlighted that there is a huge possibility of growth in the sector. The AYUSH manufacturing sector has grown by 8 times in the last 10 years and has vast export potential. The sector has enormous economic opportunities, and especially after the COVID-19 pandemic, the demand for AYUSH products including medicinal plants has grown immensely.

    Key objectives of the session majorly focussed on:

    • Exploring avenues for developing region-specific medicinal plant clusters.
    • Facilitating partnerships between farmers and industry players for assured procurement and end-to-end value chain development.
    • Discussing the establishment of dedicated mandis and marketing platforms to ensure fair prices for farmers.
    • Promoting research, training, and extension services to build capacity among stakeholders.

    During the meeting, various participants and stakeholders suggested identifying crop-specific areas for the establishment of clusters dedicated to medicinal plants. These clusters would focus on area expansion, production, industry partnerships, farmer training and marketing through setting up specialised mandis for these crops ensuring remunerative prices to the farmers.

    In his concluding remarks, Shri Priya Ranjan, Joint Secretary (Horticulture), emphasized the need to identify policy interventions and financial incentives to encourage farmers to take up the cultivation of medicinal plants.

    *****

    PSF/ SRK/AR

    (Release ID: 2127181) Visitor Counter : 38

    MIL OSI Asia Pacific News

  • MIL-OSI USA News: Improving the Safety and Security of Biological Research

    Source: The White House

    By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

    Section 1.  Purpose.  Dangerous gain-of-function research on biological agents and pathogens has the potential to significantly endanger the lives of American citizens.  If left unrestricted, its effects can include widespread mortality, an impaired public health system, disrupted American livelihoods, and diminished economic and national security.
    The Biden Administration allowed dangerous gain-of-function research within the United States with insufficient levels of oversight.  It also actively approved, through the National Institutes of Health, Federal life-science research funding in China and other countries where there is limited United States oversight or reasonable expectation of biosafety enforcement. 
    This recklessness, if unaddressed, may lead to the proliferation of research on pathogens (and potential pathogens) in settings without adequate safeguards, even after COVID-19 revealed the risk of such practices.

    Sec2.  Policy.  It is the policy of the United States to ensure that United States federally funded research benefits American citizens without jeopardizing our Nation’s security, strength, or prosperity.  My Administration will balance the prevention of catastrophic consequences with maintaining readiness against biological threats and driving global leadership in biotechnology, biological countermeasures, biosecurity, and health research.

    Sec3Stop Dangerous Gain-of-Function Research. (a)  The Director of the Office of Science and Technology Policy (OSTP), in coordination with the Director of the Office of Management and Budget and the Assistant to the President for National Security Affairs (APNSA), and in consultation with the Secretary of Health and Human Services and the heads of other relevant executive departments and agencies (agencies) identified by the Director of OSTP, shall establish guidance for the heads of relevant agencies, to the extent consistent with the terms and conditions of the funding, to immediately:
    (i)   end Federal funding of dangerous gain-of-function research conducted by foreign entities in countries of concern (e.g., China) pursuant to 42 U.S.C. 6627(c), or in other countries where there is not adequate oversight to ensure that the countries are compliant with United States oversight standards and policies; and
    (ii) end Federal funding of other life-science research that is occurring in countries of concern or foreign countries where there is not adequate oversight to ensure that the countries are compliant with United States oversight standards and policies and that could reasonably pose a threat to public health, public safety, and economic or national security, as determined by the heads of relevant agencies.
    (b)  The Director of OSTP, in coordination with the Director of the Office of Management and Budget and the APNSA, and in consultation with the Secretary of Health and Human Services and the heads of other relevant agencies, shall establish guidance for the Secretary of Health and Human Services and the heads of other relevant agencies with respect to suspension of federally funded dangerous gain-of-function research, pursuant to the terms and conditions of the relevant research funding, at least until the completion of the policy called for in section 4(a) of this order.  Heads of agencies shall report any exception to a suspension to the Director of OSTP for review in consultation with the APNSA and the heads of relevant agencies.

    Sec4.  Secure Future Research Through Commonsense Frameworks.  (a)  Within 120 days of the date of this order, the Director of OSTP, pursuant to 42 U.S.C. 6627 and in coordination with the APNSA and the heads of relevant agencies, shall revise or replace the 2024 “United States Government Policy for Oversight of Dual Use Research of Concern and Pathogens with Enhanced Pandemic Potential” to:
    (i) strengthen top-down independent oversight; increase accountability through enforcement, audits, and improved public transparency; and clearly define the scope of covered research while ensuring the United States remains the global leader in biotechnology, biological countermeasures, and health research;
    (ii) incorporate enforcement mechanisms, including those described in section 7 of this order, into Federal funding agreements to ensure compliance with all Federal policies governing dangerous gain-of-function research; and
    (iii) provide for review and revision at least every 4 years, or as appropriate.

    (b)  Within 90 days of the date of this order, the Director of OSTP, in coordination with the APNSA and the heads of relevant agencies, shall revise or replace the 2024 “Framework for Nucleic Acid Synthesis Screening” (Framework) to ensure it takes a commonsense approach and effectively encourages providers of synthetic nucleic acid sequences to implement comprehensive, scalable, and verifiable synthetic nucleic acid procurement screening mechanisms to minimize the risk of misuse.  The heads of all agencies that fund life-science research shall ensure that synthetic nucleic acid procurement is conducted through providers or manufacturers that adhere to the updated Framework.  To ensure compliance, the updated Framework shall incorporate the enforcement mechanisms described in section 7 of this order.  The Framework shall be reviewed and revised at least every 4 years, or as appropriate

    Sec5.  Manage Risks Associated with Non-federally Funded Research.  Within 180 days of the date of this order, the Director of OSTP, in coordination with the Director of the Office of Management and Budget, the APNSA, the Assistant to the President for Domestic Policy, and the heads of other relevant agencies, shall develop and implement a strategy to govern, limit, and track dangerous gain-of-function research across the United States that occurs without Federal funding and other life-science research that could cause significant societal consequences.  This strategy shall include actions to achieve comprehensive, scalable, and verifiable nucleic acid synthesis screening in non-federally funded settings.  Any gaps in authorities necessary to achieve the goals of this strategy shall be addressed in a legislative proposal to be sent to the President, through the Director of OSTP and the APNSA, within 180 days of the date of this order.

    Sec6.  Increase Accountability and Public Transparency of Dangerous Gain-of-Function Research.  The Director of OSTP, in coordination with the APNSA and the heads of relevant agencies, shall ensure that the revised policy called for in section 4(a) of this order includes a mechanism whereby research institutions that receive Federal funding must report dangerous gain-of-function research, and to the maximum extent permitted by law, include research that is supported by non-Federal funding mechanisms.  The reporting mechanism shall provide a publicly available source of information about research programs and awards identified pursuant to this section, including, where permitted by law, those that have been stopped or suspended pursuant to sections 3(a) and 3(b) of this order, and all future programs and awards that are covered by the updated policy developed in section 4(a) of this order.  This reporting shall be conducted in a way that does not compromise national security or legitimate intellectual property interests of subject institutions.

    Sec7.  Future Enforcement Terms.  The Secretary of Health and Human Services and the heads of other relevant agencies shall, consistent with existing laws and regulations, include in every life-science research contract or grant award:
    (a) a term requiring the contractual counterparty or grant recipient to agree that its compliance in all respects with the terms of this order and any applicable regulations promulgated by the contracting or grant-offering agency is material to the Government’s payment decisions for purposes of 31 U.S.C. 3729(b)(4);
    (b)  a term requiring such counterparty or recipient to certify that it does not operate, participate in, or fund any dangerous gain-of-function research or other life-science research in foreign countries that could cause significant societal consequences or generate unnecessary national security risks, and that does not comply with this order and the policies ordered herein;
    (c)  a term stating that a violation of the terms of this order or any applicable regulations promulgated by the contracting or grant-offering agency by any grant recipient may be considered a violation of such term by the recipient’s employer or institution; and  
    (d)  a term stating that any grant recipient, employer, or institution found to be in violation of the terms of this order or any applicable regulations promulgated by the contracting or grant-making agency may be subject to immediate revocation of ongoing Federal funding, and up to a 5-year period of ineligibility for Federal life-sciences grant funds offered by the Department of Health and Human Services and other relevant agencies.

    Sec8.  Definitions.  For the purposes of this order,
    “dangerous gain-of-function research” means scientific research on an infectious agent or toxin with the potential to cause disease by enhancing its pathogenicity or increasing its transmissibility.  Covered research activities are those that could result in significant societal consequences and that seek or achieve one or more of the following outcomes:
    (a)  enhancing the harmful consequences of the agent or toxin;
    (b)  disrupting beneficial immunological response or the effectiveness of an immunization against the agent or toxin;
    (c)  conferring to the agent or toxin resistance to clinically or agriculturally useful prophylactic or therapeutic interventions against that agent or toxin or facilitating their ability to evade detection methodologies;
    (d)  increasing the stability, transmissibility, or the ability to disseminate the agent or toxin;
    (e)  altering the host range or tropism of the agent or toxin;
    (f)  enhancing the susceptibility of a human host population to the agent or toxin; or
    (g)  generating or reconstituting an eradicated or extinct agent or toxin.

    Sec9.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:
    (i) the authority granted by law to an executive department or agency, or the head thereof; or
    (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
    (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
    (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
    (d)  The Department of Health and Human Services shall provide funding for this order’s publication in the Federal Register.

                                   DONALD J. TRUMP

    THE WHITE HOUSE,
        May 5, 2025.

    MIL OSI USA News

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Achieves Improved Safety and Security of Biological Research

    Source: The White House

    PROTECTING AMERICANS FROM DANGEROUS GAIN OF FUNCTION RESEARCH: Today, President Donald J. Trump signed an Executive Order to improve the safety and security of biological research in the United States and around the world. This Executive Order:

    • Ends any present and all future Federal funding of dangerous gain-of-function research in countries of concern like China and Iran and in foreign nations deemed to have insufficient research oversight.
    • Empowers American research agencies to identify and end Federal funding of other biological research that could pose a threat to American public health, public safety, or national security.
    • Prohibits Federal funding from contributing to foreign research likely to cause another pandemic. These measures will drastically reduce the potential for lab-related incidents involving gain-of-function research, like that conducted on bat coronaviruses in China by the EcoHealth Alliance and Wuhan Institute of Virology.
    • Protects Americans from lab accidents and other biosecurity incidents, such as those that likely caused COVID-19 and the 1977 Russian flu.

    ESTABLISHING SAFE AND SECURE OVERSIGHT OF DANGEROUS GAIN OF FUNCTION RESEARCH IN THE UNITED STATES: This Executive Order will increase the safety and security of biological research for Americans without impeding U.S. innovation.

    • For decades, policies overseeing gain-of-function research on pathogens, toxins, and potential pathogens have lacked adequate enforcement, transparency, and top-down oversight. Researchers have not acknowledged the legitimate potential for societal harms that this kind of research poses.
    • The Biden Administration allowed dangerous gain-of-function research with insufficient levels of oversight and actively approved Federal life-science research funding in China and other countries.
    • The 2024 United States Government Policy for Oversight of Dual Use Research of Concern and Pathogens with Enhanced Pandemic Potential (“DURC/PEPP”) and the 2024 Framework for Nucleic Acid Synthesis Screening are the latest examples of inadequate policies that rely on self-reporting and fail to protect Americans from dangerous research practices.
    • This Order pauses research using infectious pathogens and toxins in the United States that may pose a danger to American citizens until a safer, more enforceable, and transparent policy governing such research can be developed and implemented. It directs the Director of the Office of Science and Technology Policy (OSTP) and the National Security Advisor (NSA) to work with funding agencies to develop such a policy within 120 days.
    • Unlike previous policies, this Order contains enforcement and reporting mechanisms that will strengthen oversight and discourage subjective interpretation of policies that researchers have used in the past to evade biosafety and biosecurity oversight.

    SAFEGUARDING THE FUTURE AND PROMOTING AMERICAN BIOTECHNOLOGY DOMINANCE: President Trump is driving us into the Golden Age of American Innovation that will lead us to a safer, healthier, and more prosperous America.

    • This Order protects Americans from dangerous gain-of-function research that manipulates viruses and other biological agents and toxins, but it does not impede productive biological research that will ensure the United States maintains readiness against biological threats and continues to drive global leadership in biotechnology, biosecurity, and health research.
    • President Trump has long theorized that COVID-19 originated from a lab leak at the Wuhan Institute of Virology and has consistently pushed for transparency in investigating its origins.

    MIL OSI USA News

  • MIL-OSI USA: Griffith Statement on President Trump Executive Order Targeting Gain-of-Function Research

    Source: United States House of Representatives – Congressman Morgan Griffith (R-VA)

    U.S. President Donald J. Trump signed an Executive Order to halt U.S. federal funding of gain-of-function research in overseas countries, like China and Iran, without proper oversight measures. In response to the Executive Order, U.S. Congressman Morgan Griffith (R-VA) issued the following statement:

    “President Trump’s decisive action against gain-of-function research is a significant step towards greater government agency accountability. While this news is welcomed by many who have closely investigated COVID-19 origins, I believe future congressional action is essential to monitoring gain-of-function research of concern, reforming our public health agencies and protecting American life from risky experiments that involve dangerous virus transmission in humans.”

    BACKGROUND

    In the 118th Congress, Rep. Griffith chaired the House Committee on Energy and Commerce Subcommittee on Oversight & Investigations.

    Rep. Griffith chaired hearings on various issues, including but not limited to topics of biosafety and risky research. 

    Rep. Griffith was the lead Energy and Commerce Member in numerous forums with public health officials that were in various leadership positions during the outbreak of COVID-19, including working closely with the Select Subcommittee on the Coronavirus Pandemic.

    During this time, Chairman Griffith participated in closed-door transcribed interviews questioning former National Institute of Allergy and Infectious Diseases (NIAID) Director Dr. Anthony Fauci and questioning former National Institutes of Health (NIH) Director Dr. Frances Collins.

    Rep. Griffith was also a key figure in examining EcoHealth Alliance President Dr. Peter Daszak. 

    EcoHealth is the company that received grants from NIAID which in turn gave subgrants to the Wuhan Institute of Virology to conduct research on Coronavirus evolution and transmission. 

    Because of questions asked by Rep. Griffith related to significant inconsistencies and delays in required reports, among others, the U.S. Department of Health and Human Services recently announced that Dr. Daszak and EcoHealth Alliance would be debarred for five years, cutting them off from U.S. federal funding.

    In January of 2025, the Wall Street Journal reported that President Trump was considering an Executive Order to halt federal funding to gain-of-function research. In response, Rep. Griffith called on President Trump to scrutinize the country’s national gain-of-function research policy.

    Some of Rep. Griffith’s e-newsletters on these topics can be found here and here.

    In March, Rep. Griffith introduced the Risky Research Review Act and the Royalty Transparency Act to rein in the federal health bureaucracy.

    ###

    MIL OSI USA News

  • MIL-OSI USA: Affordability Actions in the FY26 Budget to Benefit Families

    Source: US State of New York

    arlier today, Governor Kathy Hochul visited Kamil and Karolina Kolodziejczyk — parents of two children — on Long Island to discuss her affordability agenda in the Fiscal Year 2026 Executive Budget. The Governor highlighted her efforts to increase the child tax credit, expand child care access, issue New York State’s first-ever inflation refund checks, deliver a tax cut for middle-class and low-income New Yorkers, and provide free breakfast and lunch for every K-12 student in New York — all efforts to put more money back in families’ pockets.

    B-ROLL of the Governor meeting the Kolodziejczyk family is available to stream on Youtube here and TV quality video is available here (h.264, mp4).

    VIDEO: The Governor’s conversation with the Kolodziejczyk family is available to stream on YouTube here and TV quality video is available here (h.264, mp4).

    AUDIO: The Governor’s conversation with the Kolodziejczyk family is available in audio form here.

    A rush transcript of the Governor’s conversation with the Kolodziejczyk family is available below:

    Governor Hochul: But I just want to talk to you about some of the stresses that families are feeling now and — you’ve got the two little ones, 5-year-old and a 3-year-old.

    Kamil Kolodziejczyk: Yep. 3-year-old and a 5-year-old.

    Governor Hochul: And I know a 3-year-old. I have got a 3-year-old granddaughter now. She just had her birthday, so I know this age very well and I’m a mom, so it’s great to see this. But, what’s it like? I mean, you worry about grocery shopping and what’s it like when you have to go to the counter it all adds up? Are you seeing any — what’s it like?

    Kamil Kolodziejczyk: Oh yeah. Everything got so expensive in a few years. This one was born five years ago, and that’s when COVID happened and lost the job, laid off and it got tough.

    Governor Hochul: How long were you laid off when COVID hit?

    Kamil Kolodziejczyk: I got laid off and I went and opened my own business with a chance and business, you know, going into HVAC.

    Governor Hochul: That was ambitious. How’s that going for you?

    Kamil Kolodziejczyk: It’s going well. It’s going well. Now especially in this weather; it got really, really warm lately, so people call — we’re doing installation service. When my second son was born, my wife had to take a week from work and stay-at-home because daycare got really expensive and the needs for the kids and everything.

    Governor Hochul: Same thing happened to me — when I had my job, my son was born and then child care was not really available. I just couldn’t find much child care and it was very expensive. And so, I just ended up staying home too. So we went from having two incomes — my husband was working for the government and we went and eliminated my income — and that was when I would go to the newspapers, and cut out the coupons, and go to the big-box stores and just, yeah; you load up the big cart, and buy the diapers in bulk, and paper towels, and toilet, detergent, dishwashing liquid.

    Karolina Kolodziejczyk: Costco is my favorite.

    Governor Hochul: Costco. There a BJ’s. Or just even going to Walmart, but even those prices are going up, right?

    Kamil Kolodziejczyk: Yeah. I go get the water for a week or something. It’s $100, $20 and it goes in price. Water, drinks — pull up the cart and so, definitely the prices went up, you know?

    Governor Hochul: So you got hit with COVID —

    Kamil Kolodziejczyk: Yeah.

    Governor Hochul: — lost your job, came back to work, inflation hits you..

    Kamil Kolodziejczyk: Inflation — the rate for the house, it’s over 6 percent.

    Governor Hochul: Yeah, yeah.

    Kamil Kolodziejczyk: So the payment —

    Governor Hochul: Interest rates were going up when you bought your house and then you have property taxes.

    Kamil Kolodziejczyk: Taxes up. Yeah.

    Governor Hochul: Also, especially important here on Long Island is the state and local tax deduction — and back in 2017, that was eliminated by the president who’s in office now; that was a big tax increase for New Yorkers. New Yorkers right now are sending $12 billion because of losing the state and local tax reduction. So you’re not able to deduct all your taxes, are you?

    Kamil Kolodziejczyk: No, we’re over —

    Governor Hochul: You’re over the limit. So that’s money that you know you should have back in your pocket, not sending to the federal government. And that’s something that’s really a problem. So, have you ever had to make decisions about what not to buy? Like you want to do some —

    Karolina Kolodziejczyk: I do want — like some of the little things for the children and even clothes for them, like do I need that?

    Kamil Kolodziejczyk: Thank God we got two boys. So one after another saving too.

    Governor Hochul: They’re always outgrowing their clothes, aren’t they?

    Karolina Kolodziejczyk: Yeah. It’s like every year, the whole — everything new for him, so. Thank God, Benjamin. But if it’s still not ripped, he could use it.

    Kamil Kolodziejczyk: They’re boys, you know? They’re (inaudible).

    Governor Hochul: They’re rough on clothes, boys, aren’t they? I know that, I know that. We used to get clothes at used clothing stores and put it on layaway. You can’t buy it right when you want to buy it so you put it aside and have to come get it later. So, you know, that’s hard. It’s hard.

    Karolina Kolodziejczyk: It is hard, and like I said, I do cook at home so getting the groceries, everything we need — it’s a lot.

    Kamil Kolodziejczyk: Obviously the vehicles, you got to get bigger because you got car seats with little kids.

    Governor Hochul: That’s right.

    Kamil Kolodziejczyk: If you had three kids, you got a problem because what are you going to do with it? You can’t put the three car seats in the back of the vehicle. Having a bigger family, you can’t even think of nowadays.

    Governor Hochul: Are you going to have a bigger family?

    Kamil Kolodziejczyk: No, it’s — you know.

    [Laughter]

    Governor Hochul: I didn’t want to pry.

    Kamil Kolodziejczyk: People that consider a bigger family, they have got to think twice, you know?

    Governor Hochul: Yeah, they do. Cost of child care, in some cases, is as much as a first year of college education in a public university or college. Right? I mean, it’s so much — such a big chunk out of family’s lives and so, we’re very focused on that. You know, everything you’re talking about is not unique to you, and a lot of it is out of your control — pandemic, and inflation, and now tariffs are making all the products that even go into the less expensive stores like Walmart or Target; those products are coming from China and there’s now additional costs on them because of the tariffs. So it’s just all adding up. And, I know you feel it, right?

    Kamil Kolodziejczyk: Yeah, a hundred percent. Can of all the awful things that we wish —

    Karolina Kolodziejczyk: It’s going up.

    Governor Hochul: Yeah. And the bills, utility bills and everything. Well, we’re focused on that in government to put you on my Budget. I just wrapped it up and I think it’ll be done another day officially — I’ve been done with my priorities for a little while. I really wanted to figure out a way to put money back in people’s pockets, and it’s people like you — I’ve been thinking about that. Again, none of this you asked for; you came here in search of the American Dream all the way from Poland — that joy of home ownership, which is becoming too rare for people, especially here in Long Island because it’s so expensive. You’re raising your boys here and that’s all good, but sometimes it all feels like it just comes crashing down.

    Kamil Kolodziejczyk: Yeah, every month, the first, you’ve got to pay the mortgage, there’s a tax bill comes in, there’s insurance, repairs around the house. So, yeah, it’s definitely —

    Governor Hochul: So my goal is to put more money back in your pockets. I talked about my priorities back when I announced my Budget. I said, “Your family is my fight,” as your executive — families that I’m thinking about. So we have found a way, working with the Legislature, to first of all have a middle class tax cut, which will benefit about 80 percent of people on Long Island. About 1.3 million will be able to get part of this tax cut. We also are looking at families like yours, and we just talked about how expensive they are, they outgrow everything. So for families with four-year-olds or under, we’ll give a $1,000 direct rebate to you, and for the kids that are over four, $500.

    Kamil Kolodziejczyk: Wow, that’s great.

    Governor Hochul: Sound good?

    Kamil Kolodziejczyk: Yeah, we could definitely use it. Definitely use it.

    Governor Hochul: What would you do with that?

    Kamil Kolodziejczyk: Oh, definitely we are going to spend it on first needs — stuff that is needed for the kids. And the summer is coming so we, obviously you want to spend some time with the kids. So maybe that will let us take some time off and maybe go spend more time with the kids doing a little bit, out of trouble.

    Governor Hochul: That’s not all. We have the inflation rebate. What does that mean? Because you paid so much more over the last few years because everything was higher, we collected more at the state level because of the sales tax. Right? So sales tax — we collected more so we had this surplus there, which some would say we should spend on other things, or some would say we should just stash away. And I said, “No, this is not our money. It belongs to you because you had to pay more. You didn’t ask for that.” And so, the money we accumulated there we were able to give a family like yours an additional $400.

    Kamil Kolodziejczyk: Wow.

    Governor Hochul: So $400 there, and in school districts where they don’t cover the school lunches and breakfast, we’re going to pay for that so children that are struggling and their parents don’t have the money to cover it, they won’t feel a stigma. The kids that have to get it subsidized will be able to get it covered. That’s about $1,600 a year that you can either pay for the school lunch with that, or you can — you won’t have to pay this, it’s free — or you can just not have to make the sandwiches anymore. You won’t have to buy the peanut butter and jelly and all those things that are part of your shopping basket that you don’t have to buy now, and all the little snacks. So when your kids are both school aged, that’ll be $3,200 that you don’t have to spend right there

    Kamil Kolodziejczyk: That’s great. That’s big.

    Governor Hochul: And then a tax rate — the largest middle class tax rate decrease in 70 years. So we’re going to work cutting middle class taxes, the direct rebates, the Child Tax Credit, covering school lunches and breakfasts, and we have calculated, for a family like yours, it should add up to about $5,000 back in your pockets. So that’s the whole goal of my Budget. Was public safety, keeping everybody safe, but also realizing —

    Kamil Kolodziejczyk: There’s a middle class that needs help.

    Governor Hochul: There’s a middle class that needs help, and we get that, and we want you to keep being successful and not have all these stresses that you have. I can’t take them away from you, but maybe just help a little bit. Right?

    Kamil Kolodziejczyk: Of course.

    Karolina Kolodziejczyk: I really appreciate it.

    Governor Hochul: Anything else you need me to know as I head back to Albany and finish up our work?

    Kamil Kolodziejczyk: No, we really appreciated that you remember about the middle class because there’s so many of us around here, not only us, but there’re people that really need that help.

    Governor Hochul: Yeah, people come here, especially our immigrants, people who are living here because you want to contribute and have a better life and build a business and expand that. When I come back someday you’re going to have a big business, lots of employees working all over Long Island.

    Kamil Kolodziejczyk: Hopefully. Hopefully.

    Governor Hochul: Well, Kamil and Karolina, it has been a pleasure just to just catch up with you a little bit, and this is a great reminder to me of why we do what we do and reminds me who we’re fighting for.

    Kamil Kolodziejczyk: Thank you. We appreciate that you remembered and took your time to come and visit us.

    MIL OSI USA News

  • MIL-OSI: Archrock Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 05, 2025 (GLOBE NEWSWIRE) — Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today reported results for the first quarter 2025.

    First Quarter 2025 and Recent Highlights

    • Revenue for the first quarter of 2025 was $347.2 million compared to $268.5 million in the first quarter of 2024.
    • Net income for the first quarter of 2025 was $70.9 million and EPS was $0.40, compared to $40.5 million and $0.26, respectively, in the first quarter of 2024.
    • Adjusted net income (a non-GAAP measure defined below) for the first quarter of 2025 was $74.5 million and adjusted EPS (a non-GAAP measure defined below) was $0.42, compared to $40.5 million and $0.26, respectively, in the first quarter of 2024.
    • Adjusted EBITDA (a non-GAAP measure defined below) for the first quarter of 2025 was $197.8 million compared to $131.0 million in the first quarter of 2024.
    • Announced acquisition of Natural Gas Compression Systems, Inc. (“NGCSI”) and NGCSE, Inc. (“NGCSE”) (collectively “NGCS”), which closed on May 1, 2025.
    • Declared a quarterly dividend of $0.19 per common share for the first quarter of 2025, approximately 15% higher compared to the first quarter of 2024, resulting in dividend coverage of 3.9x.
    • Raised full-year 2025 Adjusted EBITDA guidance to a range of $790 to $830 million.

    Management Commentary and Outlook

    “Our outstanding first quarter results were driven by solid execution and our operational transformation from prior and ongoing investments in our high-quality asset base and innovative processes and technology,” said Brad Childers, Archrock’s President and Chief Executive Officer. “We maintained record equipment utilization and, excluding asset sales, grew our operating fleet by over 70,000 horsepower. In addition, we delivered outstanding profitability in both business segments and maintained our sector-leading balance sheet, including a leverage ratio of 3.2x.
      
    “Our excellent underlying business performance and financial strength have positioned us to participate in value-creating industry consolidation. The integration of Total Operations and Production Services is progressing as planned and during the first quarter, we also announced the strategic acquisition of NGCS. The addition of complementary, large horsepower and electric compression assets further enhances our earnings power and position as a premier provider of natural gas compression services.

    “We believe our production-oriented business, high-graded operation and outstanding financial position provide us with differentiated cash flow stability. These factors, combined with our robust and committed backlog, give us good visibility into our outlook this coming year, even in the face of macroeconomic uncertainty.

    “We are committed to our prudent and returns-based capital allocation approach. Our cash available for dividend coverage remains over 3.0x, we’ve repurchased approximately 977,000 shares totaling $22.7 million during 2025 and the Board of Directors approved an increase in the Company’s share repurchase program by an additional $50 million. We believe the growth in global natural gas demand continues to support infrastructure investment in the U.S., but we are prepared to take decisive action should production growth decelerate,” concluded Childers.

    First Quarter 2025 Financial Results

    Archrock’s first quarter 2025 net income of $70.9 million included transaction-related costs totaling $3.9 million, a non-cash long-lived and other asset impairment of $1.0 million, and restructuring charges of $0.7 million. Archrock’s first quarter 2024 net income of $40.5 million included a non-cash long-lived and other asset impairment of $2.6 million.

    Adjusted EBITDA for the first quarter of 2025 and 2024 included $7.3 million and $2.4 million, respectively, in net gains related to the sale of compression and other assets.

    Contract Operations

    For the first quarter of 2025, contract operations segment revenue totaled $300.4 million, an increase of 35% compared to $223.1 million in the first quarter of 2024. Adjusted gross margin for the first quarter of 2025 was $210.6 million, up 45% from $145.3 million in the first quarter of 2024. Adjusted gross margin percentage for the first quarter of 2025 was 70%, compared to 65% in the first quarter of 2024. Total operating horsepower at the end of the first quarter of 2025 was 4.3 million, compared to 3.6 million at the end of the first quarter of 2024. Utilization at the end of the first quarter of 2025 was 96%, compared to 95% at the end of the first quarter of 2024.

    Aftermarket Services

    For the first quarter of 2025, aftermarket services segment revenue totaled $46.8 million, compared to $45.4 million in the first quarter of 2024. Adjusted gross margin for the first quarter of 2025 was $11.5 million, compared to $10.4 million in the first quarter of 2024. Adjusted gross margin percentage for the first quarter of 2025 was 25%, compared to 23% for the first quarter of 2024.

    Balance Sheet

    Long-term debt was $2.3 billion and our available liquidity totaled $589.9 million at March 31, 2025. Our leverage ratio was 3.2x as of both March 31, 2025 and 2024.

    Shareholder Returns

    Quarterly Dividend

    Our Board of Directors recently declared a quarterly dividend of $0.19 per share of common stock, or $0.76 per share on an annualized basis. Dividend coverage in the first quarter of 2025 was 3.9x. The first quarter 2025 dividend will be paid on May 13, 2025 to stockholders of record at the close of business on May 6, 2025.

    Share Repurchase Program

    Year to date through May 1, 2025, Archrock repurchased 977,218 common shares at an average price of $23.22 per share, for an aggregate of approximately $22.7 million. Since April 2023, the Company has repurchased 2,460,418 common shares at an average price of $18.24 per share for an aggregate of $44.9 million. 

    The Board of Directors approved an increase in the Company’s share repurchase program by an additional $50 million through April 27, 2026, resulting in available capacity of $65.2 million as of May 1, 2025.

    Updated 2025 Annual Guidance

    Archrock is providing revised guidance for the full year 2025. The full-year 2025 guidance below incorporates eight months of the financial impact of the NGCS acquisition that closed on May 1, 2025.

    (in thousands, except percentages, per share amounts, and ratios)

      Full Year 2025 Guidance
      Low   High
    Net income (1) (2) $ 245,000     $ 285,000  
    Adjusted EBITDA(3)   790,000       830,000  
    Cash available for dividend(4) (5)   480,000       495,000  
                   
    Segment              
    Contract operations revenue $ 1,260,000     $ 1,290,000  
    Contract operations adjusted gross margin percentage   69 %     71 %
    Aftermarket services revenue $ 190,000     $ 210,000  
    Aftermarket services adjusted gross margin percentage   22 %     24 %
                   
    Selling, general and administrative $ 149,000     $ 144,000  
                   
    Capital expenditures              
    Growth capital expenditures $ 330,000     $ 370,000  
    Maintenance capital expenditures   110,000       120,000  
    Other capital expenditures   35,000       50,000  

    _______________
    (1) 
    2025 annual guidance for net income includes $1.0 million of long-lived and other asset impairment as of March 31, 2025, but does not include the impact of any such future costs, because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was $10.7 million and $12.0 million, respectively.
    (2) Reflects an estimate of expenses incurred related to the acquisitions of Total Operations and Production Services, LLC (“TOPS”) and NGCS.
    (3) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
    (4) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
    (5) A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(25.8) million and $(28.0) million for the years 2024 and 2023, respectively.

    Summary Metrics
    (in thousands, except percentages, per share amounts and ratios)

      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Net income $ 70,850     $ 59,758     $ 40,532  
    Adjusted net income (1) $ 74,484     $ 61,533     $ 40,532  
    Adjusted EBITDA (1) $ 197,845     $ 183,844     $ 131,024  
                         
    Contract operations revenue $ 300,397     $ 286,466     $ 223,051  
    Contract operations adjusted gross margin $ 210,598     $ 200,245     $ 145,308  
    Contract operations adjusted gross margin percentage   70 %     70 %     65 %
                         
    Aftermarket services revenue $ 46,766     $ 39,950     $ 45,437  
    Aftermarket services adjusted gross margin $ 11,509     $ 9,054     $ 10,437  
    Aftermarket services adjusted gross margin percentage   25 %     23 %     23 %
                         
    Selling, general, and administrative $ 37,207     $ 42,234     $ 31,665  
                         
    Net cash provided by operating activities $ 115,628     $ 124,338     $ 137,702  
    Cash available for dividend(1) $ 132,247     $ 118,089     $ 82,026  
    Cash available for dividend coverage (2)   3.9 x     3.5 x     3.2 x
                         
    Adjusted free cash flow (1) $ (48,403 )   $ 68,945     $ 51,779  
    Adjusted free cash flow after dividend (1) $ (82,588 )   $ 38,255     $ 25,779  
                         
    Total available horsepower (at period end) (3)   4,461       4,401       3,780  
    Total operating horsepower (at period end) (4)   4,283       4,227       3,593  
    Horsepower utilization spot (at period end) (5)   96 %     96 %     95 %

    _______________
    (1) 
    Management believes adjusted net income, adjusted EBITDA, cash available for dividend, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
    (2) Defined as cash available for dividend divided by dividends declared for the period.
    (3) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
    (4) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
    (5) Defined as total available horsepower divided by total operating horsepower at period end.

    Conference Call Details

    Archrock will host a conference call on May 6, 2025, to discuss first quarter 2025 financial results. The call will begin at 10:30 a.m. Eastern Time.

    To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States or 1 (646) 307-1963 for international calls. The access code is 4749623.

    A replay of the webcast will be available on Archrock’s website for 90 days following the event.

    Adjusted net income, a non-GAAP measure, is defined as net income (loss) excluding restructuring charges and transaction-related costs adjusted for income taxes. A reconciliation of net income to adjusted net income, the most directly comparable GAAP measure, and a reconciliation of basic and diluted earnings per common share to adjusted earnings per share, the most directly comparable GAAP measure, appear below.

    Adjusted EBITDA, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items. A reconciliation of net income to adjusted EBITDA, the most directly comparable GAAP measure, and a reconciliation of our full year 2025 net income to adjusted EBITDA guidance appear below.

    Adjusted gross margin, a non-GAAP measure, is defined as revenue less cost of sales, exclusive of depreciation and amortization. Adjusted gross margin percentage, a non-GAAP measure, is defined as adjusted gross margin divided by revenue. A reconciliation of net income to adjusted gross margin, the most directly comparable GAAP measure, and a reconciliation of gross margin to adjusted gross margin and adjusted gross margin percentage appear below.

    Cash available for dividend, a non-GAAP measure, is defined as net income (loss) excluding interest expense, income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items, less maintenance capital expenditures, other capital expenditures, cash taxes and cash interest expense. Reconciliations of net income to cash available for dividend and net income to net cash provided by operating activities, the most directly comparable GAAP measures, and a reconciliation of our full year 2025 net income to cash available for dividend guidance appear below.

    Adjusted free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities. A reconciliation of net cash provided by operating activities to adjusted free cash flow, the most directly comparable GAAP measure, appears below.

    Adjusted free cash flow after dividend, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash provided by (used in) investing activities less dividends paid to stockholders. A reconciliation of net cash provided by operating activities to adjusted free cash flow after dividend, the most directly comparable GAAP measure, appears below.

    About Archrock

    Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, visit www.archrock.com.

    ForwardLooking Statements

    All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Archrock. Forward-looking information includes, but is not limited to statements regarding: guidance or estimates related to Archrock’s results of operations or of financial condition; fundamentals of Archrock’s industry, including the attractiveness of returns and valuation, stability of cash flows, demand dynamics and overall outlook, and Archrock’s ability to realize the benefits thereof; Archrock’s expectations regarding future economic, geopolitical and market conditions and trends; Archrock’s operational and financial strategies, including planned growth, coverage and leverage reduction strategies, Archrock’s ability to successfully effect those strategies, and the expected results therefrom; Archrock’s financial and operational outlook; demand and growth opportunities for Archrock’s services; structural and process improvement initiatives, the expected timing thereof, Archrock’s ability to successfully effect those initiatives and the expected results therefrom; the operational and financial synergies provided by Archrock’s size; statements regarding Archrock’s dividend policy; the expected benefits of the TOPS Acquisition, including its expected accretion and the expected impact on Archrock’s leverage ratio; and plans and objectives of management for future operations.

    While Archrock believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: inability to achieve the expected benefits of the NGCS acquisition and difficulties in integrating NGCS; risks of acquisitions or mergers, including the NGCS acquisition, to reduce our ability to make distributions to our common stockholders; risks related to macroeconomic conditions, including an increase in inflation and trade tensions; pandemics and other public health crises; ongoing international conflicts and tensions; risks related to our operations; competitive pressures; risks of acquisitions to reduce our ability to make distributions to our common stockholders; inability to make acquisitions on economically acceptable terms; uncertainty to pay dividends in the future; risks related to a substantial amount of debt and our debt agreements; inability to access the capital and credit markets or borrow on affordable terms to obtain additional capital; inability to fund purchases of additional compression equipment; vulnerability to interest rate increases; erosion of the financial condition of our customers; risks related to the loss of our most significant customers; uncertainty of the renewals for our contract operations service agreements; risks related to losing management or operational personnel; dependence on particular suppliers and vulnerability to product shortages and price increases; information technology and cybersecurity risks; tax-related risks; legal and regulatory risks, including climate-related and environmental, social and governance risks.

    These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2024, Archrock’s Quarterly Reports on Form 10-Q and those set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

    SOURCE: Archrock, Inc.

    For information, contact:

    Megan Repine
    VP of Investor Relations
    281-836-8360
    investor.relations@archrock.com

    Archrock, Inc.
    Unaudited Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Revenue:                
    Contract operations $ 300,397     $ 286,466     $ 223,051  
    Aftermarket services   46,766       39,950       45,437  
    Total revenue   347,163       326,416       268,488  
                     
    Cost of sales, exclusive of depreciation and amortization                
    Contract operations   89,799       86,221       77,743  
    Aftermarket services   35,257       30,896       35,000  
    Total cost of sales, exclusive of depreciation and amortization   125,056       117,117       112,743  
                     
    Selling, general and administrative   37,207       42,234       31,665  
    Depreciation and amortization   57,620       58,129       42,835  
    Long-lived and other asset impairment   972       1,203       2,568  
    Restructuring charges   665              
    Interest expense   37,741       38,238       27,334  
    Transaction-related costs   3,935       2,247        
    Gain on sale of assets, net   (7,335 )     (12,712 )     (2,381 )
    Other (income) expense, net   (684 )     1,598       139  
    Income before income taxes   91,986       78,362       53,585  
    Provision for income taxes   21,136       18,604       13,053  
    Net income $ 70,850     $ 59,758     $ 40,532  
                     
    Basic and diluted net income per common share (1) $ 0.40     $ 0.34     $ 0.26  
                     
    Weighted-average common shares outstanding:                
    Basic   174,014       173,451       154,187  
    Diluted   174,371       173,848       154,501  

    _______________
    (1) Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share.

    Archrock, Inc.
    Unaudited Supplemental Information
    (in thousands, except percentages, per share amounts and ratios)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Revenue:                
    Contract operations $ 300,397     $ 286,466     $ 223,051  
    Aftermarket services   46,766       39,950       45,437  
    Total revenue $ 347,163     $ 326,416     $ 268,488  
                     
    Adjusted gross margin:                
    Contract operations $ 210,598     $ 200,245     $ 145,308  
    Aftermarket services   11,509       9,054       10,437  
    Total adjusted gross margin (1) $ 222,107     $ 209,299     $ 155,745  
                     
    Adjusted gross margin percentage:                
    Contract operations   70 %     70 %     65 %
    Aftermarket services   25 %     23 %     23 %
    Total adjusted gross margin percentage (1)   64 %     64 %     58 %
                     
    Selling, general and administrative $ 37,207     $ 42,234     $ 31,665  
    % of revenue   11 %     13 %     12 %
                     
    Adjusted EBITDA (1) $ 197,845     $ 183,844     $ 131,024  
    % of revenue   57 %     56 %     49 %
                     
    Capital expenditures $ 168,140     $ 97,988     $ 99,755  
    Proceeds from sale of property, plant and equipment and other assets   (2,904 )     (43,387 )     (13,844 )
    Net capital expenditures $ 165,236     $ 54,601     $ 85,911  
                     
    Total available horsepower (at period end) (2)   4,461       4,401       3,780  
    Total operating horsepower (at period end) (3)   4,283       4,227       3,593  
    Average operating horsepower   4,254       4,205       3,606  
    Horsepower utilization:                
    Spot (at period end) (4)   96 %     96 %     95 %
    Average (4)   96 %     95 %     96 %
                     
    Dividend declared for the period per share $ 0.190     $ 0.190     $ 0.165  
    Dividend declared for the period to all stockholders $ 33,758     $ 33,487     $ 25,978  
    Cash available for dividend coverage (5)   3.9 x     3.5 x     3.2 x
                     
    Adjusted free cash flow (1) $ (48,403 )   $ 68,945     $ 51,779  
    Adjusted free cash flow after dividend (1) $ (82,588 )   $ 38,255     $ 25,779  

    _______________
    (1) 
    Management believes adjusted gross margin, adjusted EBITDA, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.
    (2) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
    (3) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
    (4) Defined as total available horsepower divided by total operating horsepower at period end (spot) or over time (average).
    (5) Defined as cash available for dividend divided by dividends declared for the period.

      March 31,    December 31,    March 31, 
      2025      2024      2024
    Balance Sheet                      
    Long-term debt (1) $ 2,297,767     $ 2,198,376     $ 1,566,566  
    Total equity   1,349,983       1,323,531       882,080  

    _______________
    (1) Carrying values are shown net of unamortized premium and deferred financing costs.

    Archrock, Inc.
    Unaudited Supplemental Information
    Reconciliation of Net Income to Adjusted Net Income and Earnings Per Share to Adjusted Earnings Per Share
    (in thousands, except per share amounts)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Net income $ 70,850     $ 59,758     $ 40,532  
    Restructuring charges   665              
    Transaction-related costs   3,935       2,247        
    Tax effect of adjustments (1)   (966 )     (472 )      
    Adjusted net income (2) $ 74,484     $ 61,533     $ 40,532  
                       
    Weighted-average common shares outstanding used in diluted earnings per common share   174,371       173,451       154,401  
                       
    Basic and diluted earnings per common share (3) $ 0.40     $ 0.34     $ 0.26  
    Restructuring charges per share   0.00              
    Transaction-related costs per share   0.03       0.01        
    Tax effect of adjustments per share   (0.01 )     (0.00 )      
    Adjusted earnings per share (2) $ 0.42     $ 0.35     $ 0.26  

    _______________
    (1) Represents tax effect of restructuring charges and transaction-related costs based on statutory tax rate.
    (2) Management believes adjusted net income and adjusted earnings per share provides useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review our current period operating performance, comparability measure and performance measure for period-to-period comparisons without burdened earnings and earnings per share for non-recurring transactional costs.
    (3) Basic and diluted net income per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted net income per common share.

    Archrock, Inc.
    Unaudited Supplemental Information
    Reconciliation of Net Income to Adjusted EBITDA and Adjusted Gross Margin
    (in thousands)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Net income $ 70,850     $ 59,758     $ 40,532  
    Depreciation and amortization   57,620       58,129       42,835  
    Long-lived and other asset impairment   972       1,203       2,568  
    Unrealized change in fair value of investment in unconsolidated affiliate         1,484        
    Restructuring charges   665              
    Interest expense   37,741       38,238       27,334  
    Transaction-related costs   3,935       2,247        
    Stock-based compensation expense   4,027       3,431       3,964  
    Amortization of capitalized implementation costs   762       750       738  
    Indemnification expense, net   137              
    Provision for income taxes   21,136       18,604       13,053  
    Adjusted EBITDA (1)   197,845       183,844       131,024  
    Selling, general and administrative   37,207       42,234       31,665  
    Stock-based compensation expense   (4,027 )     (3,431 )     (3,964 )
    Amortization of capitalized implementation costs   (762 )     (750 )     (738 )
    Gain on sale of assets, net   (7,335 )     (12,712 )     (2,381 )
    Other (income) expense, net   (684 )     1,598       139  
    Adjusted gross margin (1) $ 222,107     $ 209,299     $ 155,745  

    _______________
    (1) Management believes adjusted EBITDA and adjusted gross margin provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

    Archrock, Inc.
    Unaudited Supplemental Information
    Reconciliation of Total Revenue to Adjusted Gross Margin and Adjusted Gross Margin Percentage
    (in thousands)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Total revenues $ 347,163       $ 326,416       $ 268,488    
    Cost of sales, exclusive of depreciation and amortization   (125,056 )       (117,117 )       (112,743 )  
    Depreciation and amortization   (57,620 )       (58,129 )       (42,835 )  
    Gross margin and gross margin percentage   164,487   47 %     151,170   46 %     112,910   42 %
    Depreciation and amortization   57,620         58,129         42,835    
    Adjusted gross margin and adjusted gross margin percentage (1) $ 222,107   64 %   $ 209,299   64 %   $ 155,745   58 %

    _______________
    (1) Management believes adjusted gross margin and adjusted gross margin percentage provide useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

    Archrock, Inc.
    Unaudited Supplemental Information
    Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend
    (in thousands)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Net income $ 70,850     $ 59,758     $ 40,532  
    Depreciation and amortization   57,620       58,129       42,835  
    Long-lived and other asset impairment   972       1,203       2,568  
    Unrealized change in fair value of investment in unconsolidated affiliate         1,484        
    Restructuring charges   665              
    Interest expense   37,741       38,238       27,334  
    Transaction-related costs   3,935       2,247        
    Stock-based compensation expense   4,027       3,431       3,964  
    Amortization of capitalized implementation costs   762       750       738  
    Indemnification expense, net   137              
    Provision for income taxes   21,136       18,604       13,053  
    Adjusted EBITDA (1)   197,845       183,844       131,024  
    Less: Maintenance capital expenditures   (22,753 )     (21,623 )     (19,525 )
    Less: Other capital expenditures   (6,019 )     (7,023 )     (2,920 )
    Less: Cash tax (payment) refund   (92 )     134       89  
    Less: Cash interest expense   (36,734 )     (37,243 )     (26,642 )
    Cash available for dividend (2) $ 132,247     $ 118,089     $ 82,026  

    _______________
    (1) 
    Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
    (2) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

    Archrock, Inc.
    Unaudited Supplemental Information
    Reconciliation of Net Cash Provided by Operating Activities to Cash Available for Dividend
    (in thousands)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Net cash provided by operating activities $ 115,628     $ 124,338     $ 137,702  
    Inventory write-downs   (188 )     18       (199 )
    Provision for credit losses   (156 )     (286 )     75  
    Gain on sale of assets, net   7,335       12,712       2,381  
    Current income tax provision   1,182       997       593  
    Cash tax (payment) refund   (92 )     134       89  
    Amortization of operating lease ROU assets   (1,204 )     (1,063 )     (947 )
    Amortization of contract costs   (5,889 )     (6,106 )     (5,768 )
    Deferred revenue recognized in earnings   3,746       5,294       2,859  
    Indemnification expense, net   137              
    Cash restructuring charges   665              
    Cash transaction-related costs   3,935       2,247        
    Time-based cash or equity settled units settled as equity   (1,756 )            
    Changes in assets and liabilities   37,676       8,450       (32,314 )
    Maintenance capital expenditures   (22,753 )     (21,623 )     (19,525 )
    Other capital expenditures   (6,019 )     (7,023 )     (2,920 )
    Cash available for dividend (1) $ 132,247     $ 118,089     $ 82,026  

    _______________
    (1) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

    Archrock, Inc.
    Unaudited Supplemental Information
    Reconciliation of Net Cash Provided By Operating Activities to Adjusted Free Cash Flow
    and Adjusted Free Cash Flow After Dividend
    (in thousands)
     
      Three Months Ended
      March 31,    December 31,    March 31, 
      2025   2024   2024
    Net cash provided by operating activities $ 115,628     $ 124,338     $ 137,702  
    Net cash used in investing activities   (164,031 )     (55,393 )     (85,923 )
    Adjusted free cash flow (1)   (48,403 )     68,945       51,779  
    Dividends paid to stockholders   (34,185 )     (30,690 )     (26,000 )
    Adjusted free cash flow after dividend (1) $ (82,588 )   $ 38,255     $ 25,779  

    _______________
    (1) Management believes adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

    Archrock, Inc.
    Unaudited Supplemental Information
    Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend Guidance
    (in thousands)
     
      Annual Guidance Range
      2025
      Low   High
    Net income (1) $ 245,000     $ 285,000  
    Interest expense   165,000       165,000  
    Provision for income taxes   98,000       98,000  
    Depreciation and amortization   248,000       248,000  
    Stock-based compensation expense   18,000       18,000  
    Long-lived and other asset impairment   1,000       1,000  
    Amortization of capitalized implementation costs   4,000       4,000  
    Transaction-related costs (2)   10,000       10,000  
    Restructuring charges   1,000       1,000  
    Adjusted EBITDA (3)   790,000       830,000  
    Less: Maintenance capital expenditures   (110,000 )     (120,000 )
    Less: Other capital expenditures   (35,000 )     (50,000 )
    Less: Cash tax expense   (5,000 )     (5,000 )
    Less: Cash interest expense   (160,000 )     (160,000 )
    Cash available for dividend (4)(5) $ 480,000     $ 495,000  

    _______________
    (1) 
    2025 annual guidance for net income includes $1.0 million of long-lived and other asset impairment as of March 31, 2025, but does not include the impact of any such future costs, because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact Adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2024 and 2023 was $10.7 million and $12.0 million, respectively.
    (2) Reflects an estimate of expenses to be incurred related to the TOPS and NGCS acquisitions.
    (3) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.
    (4) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.
    (5) A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(25.8) million and $(28.0) million for the years 2024 and 2023, respectively.

    The MIL Network

  • MIL-OSI: Diamondback Energy, Inc. Announces First Quarter 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, May 05, 2025 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2025.

    FIRST QUARTER 2025 AND RECENT HIGHLIGHTS

    • Average oil production of 475.9 MBO/d (850.7 MBOE/d)
    • Net cash provided by operating activities of $2.4 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.5 billion
    • Cash capital expenditures of $942 million
    • Free Cash Flow (as defined and reconciled below) of $1.5 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $1.6 billion
    • Declared Q1 2025 base cash dividend of $1.00 per share payable on May 22, 2025; implies a 2.9% annualized yield based on May 2, 2025 closing share price of $136.81
    • Repurchased 3,656,044 shares of common stock in Q1 2025 for $575 million excluding excise tax (at a weighted average price of $157.15 per share); repurchased 1,965,180 shares of common stock to date in Q2 2025 for $255 million excluding excise tax (at a weighted average price of $129.71 per share)
    • Total Q1 2025 return of capital of $864 million; represents ~55% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q1 2025 base dividend
    • As previously announced, closed acquisition of certain subsidiaries of Double Eagle IV Midco, LLC (“Double Eagle”) on April 1st
    • Closed drop down transaction to Viper Energy, Inc. (“Viper”), a subsidiary of Diamondback, on May 1st

    UPDATED 2025 GUIDANCE HIGHLIGHTS

    As a result of recent commodity price volatility, Diamondback is reducing activity in order to prioritize free cash flow generation. The Company believes this revised plan enhances capital efficiency and provides flexibility to (i) cut additional capital if prices weaken further or (ii) resume its original 2025 plan if commodity prices strengthen.

    • Full year oil production of 480 – 495 MBO/d (857 – 900 MBOE/d)
    • Full year 2025 cash capital expenditures guidance of $3.4 – $3.8 billion
    • The Company expects to drill 385 – 435 gross (349 – 395 net) wells and complete between 475 – 550 gross (444 – 514 net) wells with an average lateral length of approximately 11,500 feet in 2025
    • Q2 2025 oil production guidance of 485 – 500 MBO/d (866 – 900 MBOE/d)
    • Q2 2025 cash capital expenditures guidance of $800 – $900 million
    • Implies full year 2025 oil production per million dollars of cash capital expenditures (“MBO per $MM of CAPEX”) of 49.4, ~10% better than the Company’s original full year 2025 guidance provided in February 2025

    OPERATIONS UPDATE

    The tables below provide a summary of operating activity for the first quarter of 2025.

    Total Activity (Gross Operated):          
      Number of Wells Drilled
      Number of Wells Completed
    Midland Basin                 124             116  
    Delaware Basin                 2             7  
    Total                 126             123  
    Total Activity (Net Operated):          
      Number of Wells Drilled
      Number of Wells Completed
    Midland Basin                 116             112  
    Delaware Basin                 2             7  
    Total                 118             119  
     

    During the first quarter of 2025, Diamondback drilled 124 gross wells in the Midland Basin and two gross wells in the Delaware Basin. The Company turned 116 operated wells to production in the Midland Basin and seven gross wells in the Delaware Basin, with an average lateral length of 11,978 feet. Operated completions during the first quarter consisted of 30 Wolfcamp A wells, 28 Lower Spraberry wells, 22 Wolfcamp B wells, 17 Jo Mill wells, eight Middle Spraberry wells, four Dean wells, four Barnett wells, three Third Bone Spring wells, three Wolfcamp D wells, two Second Bone Spring wells and two Upper Spraberry wells.

    FINANCIAL UPDATE

    Diamondback’s first quarter 2025 net income was $1.4 billion, or $4.83 per diluted share. Adjusted net income (as defined and reconciled below) for the first quarter was $1.3 billion, or $4.54 per diluted share.

    First quarter 2025 net cash provided by operating activities was $2.4 billion.

    During the first quarter of 2025, Diamondback spent $864 million on operated drilling and completions, $21 million on capital workovers and non-operated drilling and completions and $57 million on infrastructure, environmental and midstream, for total cash capital expenditures of $942 million.

    First quarter 2025 Consolidated Adjusted EBITDA (as defined and reconciled below) was $2.9 billion. Adjusted EBITDA net of non-controlling interest (as defined and reconciled below) for the first quarter was $2.8 billion.

    Diamondback’s first quarter 2025 Free Cash Flow (as defined and reconciled below) was $1.5 billion. Adjusted Free Cash Flow (as reconciled and defined below) for the first quarter was $1.6 billion.

    First quarter 2025 average unhedged realized prices were $70.95 per barrel of oil, $2.11 per Mcf of natural gas and $23.94 per barrel of natural gas liquids (“NGLs”), resulting in a total equivalent unhedged realized price of $47.77 per BOE.

    Diamondback’s cash operating costs for the first quarter of 2025 were $10.48 per BOE, including lease operating expenses (“LOE”) of $5.33 per BOE, cash general and administrative (“G&A”) expenses of $0.72 per BOE, production and ad valorem taxes of $2.98 per BOE and gathering, processing and transportation expenses of $1.45 per BOE.

    As of March 31, 2025, Diamondback had $1.3 billion in standalone cash and no borrowings outstanding under its revolving credit facility, with approximately $2.5 billion available for future borrowings under the facility and approximately $3.8 billion of total liquidity. As of March 31, 2025, the Company had consolidated total debt of $14.1 billion and consolidated net debt (as defined and reconciled below) of $12.3 billion, up from consolidated total debt of $13.2 billion and consolidated net debt of $13.0 billion as of December 31, 2024.

    DIVIDEND DECLARATIONS

    Diamondback announced today that the Company’s Board of Directors declared a base cash dividend of $1.00 per common share for the first quarter of 2025 payable on May 22, 2025 to stockholders of record at the close of business on May 15, 2025.

    Future base and variable dividends remain subject to review and approval at the discretion of the Company’s Board of Directors.

    COMMON STOCK REPURCHASE PROGRAM

    During the first quarter of 2025, Diamondback repurchased ~3.7 million shares of common stock at an average share price of $157.15 for a total cost of approximately $575 million, excluding excise tax. To date, Diamondback has repurchased ~30.2 million shares of common stock at an average share price of $137.55 for a total cost of approximately $4.2 billion and has approximately $1.8 billion remaining on its current share buyback authorization. Subject to factors discussed below, Diamondback intends to continue to purchase common stock under the common stock repurchase program opportunistically with cash on hand, free cash flow from operations and proceeds from potential liquidity events such as the sale of assets. This repurchase program has no time limit and may be suspended from time to time, modified, extended or discontinued by the Board at any time. Purchases under the repurchase program may be made from time to time in privately negotiated transactions, or in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. Any common stock purchased as part of this program will be retired.

    FULL YEAR 2025 GUIDANCE

    Below is Diamondback’s updated guidance for the full year 2025, which includes second quarter production, cash tax and capital guidance. Given recent weakness in commodity prices, the Company is reducing its activity levels and lowering its capital budget to prioritize free cash generation. Diamondback will continue to closely monitor the macro environment and has flexibility to (i) cut additional capital if prices weaken further or (ii) resume its original 2025 plan if commodity prices strengthen.

      2025 Guidance 2025 Guidance
      Diamondback Energy, Inc. Viper Energy, Inc.
         
    2025 Net production – MBOE/d 857 – 900 (from 883 – 909) 74.5 – 79.0
    2025 Oil production – MBO/d 480 – 495 (from 485 – 498) 41.0 – 43.5
    Q2 2025 Oil production – MBO/d (total – MBOE/d) 485 – 500 (866 – 900) 40.0 – 43.0 (72.5 – 78.0)
         
    Unit costs ($/BOE)    
    Lease operating expenses, including workovers $5.65 – $6.05 (from $5.90 – $6.30)  
    G&A    
    Cash G&A $0.60 – $0.75 $0.80 – $1.00
    Non-cash equity-based compensation $0.25 – $0.35 $0.10 – $0.20
    DD&A $14.00 – $15.00 $15.50 – $16.50
    Interest expense (net of interest income) $0.40 – $0.65 (from $0.25 – $0.50) $2.00 – $2.50
    Gathering, processing and transportation $1.40 – $1.60 (from $1.20 – $1.40)  
         
    Production and ad valorem taxes (% of revenue) ~7% ~7%
    Corporate tax rate (% of pre-tax income) 23%  
    Cash tax rate (% of pre-tax income) 19% – 22% (from 17% – 20%) 21% – 23%
    Q2 2025 Cash taxes ($ – million)(1) $340 – $400 $10 – $15
         
    Capital Budget ($ – million)    
    Operated drilling and completion $2,780 – $3,090 (from $3,130 – $3,440)  
    Capital workovers, non-operated properties and science $280 – $320  
    Infrastructure, environmental and midstream(2) $340 – $390 (from $390 – $440)  
    2025 Total capital expenditures $3,400 – $3,800 (from $3,800 – $4,200)  
    Q2 2025 Capital expenditures $800 – $900  
         
    Gross horizontal wells drilled (net) 385 – 435 (349 – 395) (from 446 – 471 (406 – 428))  
    Gross horizontal wells completed (net) 475 – 550 (444 – 514) (from 557 – 592 (526 – 560))  
    Average lateral length (Ft.) ~11,500′  
    FY 2025 Midland Basin well costs per lateral foot $550 – $590 (from $555 – $605)  
    FY 2025 Delaware Basin well costs per lateral foot $860 – $910  
    Midland Basin completed net lateral feet (%) ~95%  
    Delaware Basin completed net lateral feet (%) ~5%  
    (1) Includes approximately $170 million of cash taxes related to the Viper dropdown transaction.
    (2) Includes approximately $60 million in estimated midstream capital expenditures for the full year 2025.
       


    CONFERENCE CALL

    Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2025 on Tuesday, May 6, 2025 at 8:00 a.m. CT. Access to the webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site.

    About Diamondback Energy, Inc.

    Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

    Forward-Looking Statements

    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger, the recently completed Double Eagle acquisition and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 26, 2025, and those risks disclosed in its subsequent filings on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

    In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

     
    Diamondback Energy, Inc.
    Condensed Consolidated Balance Sheets
    (unaudited, in millions, except share amounts)
           
      March 31,   December 31,
       2025    2024
    Assets      
    Current assets:      
    Cash and cash equivalents ($560 million and $27 million related to Viper)         $         1,816     $         161  
    Restricted cash                   225               3  
    Accounts receivable:      
    Joint interest and other, net                   257               198  
    Oil and natural gas sales, net ($146 million and $149 million related to Viper)                    1,334               1,387  
    Inventories                   117               116  
    Derivative instruments                   267               168  
    Prepaid expenses and other current assets                   67               77  
    Total current assets                   4,083               2,110  
    Property and equipment:      
    Oil and natural gas properties, full cost method of accounting ($22,019 million and $22,666 million excluded from amortization at March 31, 2025 and December 31, 2024, respectively) ($6,097 million and $5,713 million related to Viper and $2,279 million and $2,180 million excluded from amortization related to Viper)                   83,727               82,240  
    Other property, equipment and land                   1,452               1,440  
    Accumulated depletion, depreciation, amortization and impairment ($1,148 million and $1,081 million related to Viper)                   (20,283 )             (19,208 )
    Property and equipment, net                   64,896               64,472  
    Funds held in escrow                   208               1  
    Equity method investments                   383               375  
    Derivative instruments                   61               2  
    Deferred income taxes, net ($249 million and $185 million related to Viper)                   235               173  
    Other assets                   200               159  
    Total assets         $         70,066     $         67,292  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable – trade         $         124     $         253  
    Accrued capital expenditures                   754               690  
    Current maturities of debt                   914               900  
    Other accrued liabilities                   761               1,020  
    Revenues and royalties payable                   1,575               1,491  
    Derivative instruments                   75               43  
    Income taxes payable                   550               414  
    Total current liabilities                   4,753               4,811  
    Long-term debt ($822 million and $1,083 million related to Viper)                   12,996               12,075  
    Derivative instruments                   93               106  
    Asset retirement obligations                   586               573  
    Deferred income taxes                   9,887               9,826  
    Other long-term liabilities                   8               39  
    Total liabilities                   28,323               27,430  
    Stockholders’ equity:      
    Common stock, $0.01 par value; 800,000,000 shares authorized; 287,287,926 and 290,984,373 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively                   3               3  
    Additional paid-in capital                   33,125               33,501  
    Retained earnings (accumulated deficit)                   5,352               4,238  
    Accumulated other comprehensive income (loss)                   (7 )             (6 )
    Total Diamondback Energy, Inc. stockholders’ equity                   38,473               37,736  
    Non-controlling interest                   3,270               2,126  
    Total equity                   41,743               39,862  
    Total liabilities and stockholders’ equity         $         70,066     $         67,292  
     
    Diamondback Energy, Inc.
    Condensed Consolidated Statements of Operations
    (unaudited, $ in millions except per share data, shares in thousands)
           
      Three Months Ended March 31,
        2025       2024  
    Revenues:      
    Oil, natural gas and natural gas liquid sales         $         3,657     $         2,101  
    Sales of purchased oil                   374               116  
    Other operating income                   17               10  
    Total revenues                   4,048               2,227  
    Costs and expenses:      
    Lease operating expenses                   408               255  
    Production and ad valorem taxes                   228               119  
    Gathering, processing and transportation                   111               77  
    Purchased oil expense                   382               117  
    Depreciation, depletion, amortization and accretion                   1,097               469  
    General and administrative expenses                   73               46  
    Merger and integration expense                   37               12  
    Other operating expenses                   39               14  
    Total costs and expenses                   2,375               1,109  
    Income (loss) from operations                   1,673               1,118  
    Other income (expense):      
    Interest expense, net                   (40 )             (39 )
    Other income (expense), net                   27               (3 )
    Gain (loss) on derivative instruments, net                   226               (48 )
    Gain (loss) on extinguishment of debt                   —               2  
    Income (loss) from equity investments, net                   8               2  
    Total other income (expense), net                   221               (86 )
    Income (loss) before income taxes                   1,894               1,032  
    Provision for (benefit from) income taxes                   403               223  
    Net income (loss)                    1,491               809  
    Net income (loss) attributable to non-controlling interest                   86               41  
    Net income (loss) attributable to Diamondback Energy, Inc.         $         1,405     $         768  
           
    Earnings (loss) per common share:      
    Basic         $         4.83     $         4.28  
    Diluted         $         4.83     $         4.28  
    Weighted average common shares outstanding:      
    Basic           289,612       178,477  
    Diluted           289,612       178,477  
     
    Diamondback Energy, Inc.
    Condensed Consolidated Statements of Cash Flows
    (unaudited, in millions)
           
      Three Months Ended March 31,
        2025       2024  
    Cash flows from operating activities:      
    Net income (loss)          $         1,491     $         809  
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
    Provision for (benefit from) deferred income taxes                   6               52  
    Depreciation, depletion, amortization and accretion                   1,097               469  
    (Gain) loss on extinguishment of debt                   —               (2 )
    (Gain) loss on derivative instruments, net                   (226 )             48  
    Cash received (paid) on settlement of derivative instruments                   85               (4 )
    (Income) loss from equity investment, net                   (8 )             (2 )
    Equity-based compensation expense                   18               14  
    Other                   24               16  
    Changes in operating assets and liabilities:              
    Accounts receivable                   (6 )             (95 )
    Income tax receivable                   3               12  
    Prepaid expenses and other current assets                   6               89  
    Accounts payable and accrued liabilities                   (374 )             (110 )
    Income taxes payable                   135               70  
    Revenues and royalties payable                   84               (35 )
    Other                   20               3  
    Net cash provided by (used in) operating activities                   2,355               1,334  
    Cash flows from investing activities:      
    Additions to oil and natural gas properties                   (942 )             (609 )
    Property acquisitions                   (750 )             (153 )
    Proceeds from sale of assets                   41               12  
    Other                   (2 )             (1 )
    Net cash provided by (used in) investing activities                   (1,653 )             (751 )
    Cash flows from financing activities:      
    Proceeds from borrowings under credit facilities                   2,277               90  
    Repayments under credit facilities                   (2,538 )             (80 )
    Proceeds from senior notes                   1,200               —  
    Repayment of senior notes                   —               (25 )
    Repurchased shares under buyback program                   (575 )             (42 )
    Proceeds from partial sale of investment in Viper Energy, Inc.                   —               451  
    Net proceeds from Viper’s issuance of common stock                   1,232               —  
    Dividends paid to stockholders                   (290 )             (548 )
    Dividends/distributions to non-controlling interest                   (95 )             (44 )
    Other                   (36 )             (71 )
    Net cash provided by (used in) financing activities                   1,175               (269 )
    Net increase (decrease) in cash and cash equivalents                   1,877               314  
    Cash, cash equivalents and restricted cash at beginning of period                   164               585  
    Cash, cash equivalents and restricted cash at end of period         $         2,041     $         899  
     
    Diamondback Energy, Inc.
    Selected Operating Data
    (unaudited)
               
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    Production Data:          
    Oil (MBbls)                   42,835               43,785               24,874  
    Natural gas (MMcf)                   100,578               107,249               50,602  
    Natural gas liquids (MBbls)                   16,961               19,615               8,653  
    Combined volumes (MBOE)(1)                   76,559               81,275               41,961  
               
    Daily oil volumes (BO/d)                   475,944               475,924               273,341  
    Daily combined volumes (BOE/d)                   850,656               883,424               461,110  
               
    Average Prices:          
    Oil ($ per Bbl)         $         70.95     $         69.48     $         75.06  
    Natural gas ($ per Mcf)         $         2.11     $         0.48     $         0.99  
    Natural gas liquids ($ per Bbl)         $         23.94     $         19.27     $         21.26  
    Combined ($ per BOE)         $         47.77     $         42.71     $         50.07  
               
    Oil, hedged ($ per Bbl)(2)          $         70.06     $         68.72     $         74.13  
    Natural gas, hedged ($ per Mcf)(2)         $         3.34     $         0.82     $         1.36  
    Natural gas liquids, hedged ($ per Bbl)(2)         $         23.94     $         19.27     $         21.26  
    Average price, hedged ($ per BOE)(2)          $         48.89     $         42.76     $         49.97  
               
    Average Costs per BOE:          
    Lease operating expenses         $         5.33     $         5.67     $         6.08  
    Production and ad valorem taxes                   2.98               2.77               2.84  
    Gathering, processing and transportation expense                   1.45               1.17               1.84  
    General and administrative – cash component                   0.72               0.69               0.76  
    Total operating expense – cash         $         10.48     $         10.30     $         11.52  
               
    General and administrative – non-cash component         $         0.24     $         0.20     $         0.34  
    Depreciation, depletion, amortization and accretion         $         14.33     $         14.22     $         11.18  
    Interest expense, net         $         0.52     $         0.42     $         0.93  
    (1) Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
    (2) Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts.
       


    NON-GAAP FINANCIAL MEASURES

    ADJUSTED EBITDA

    Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, (gain) loss on extinguishment of debt, if any, non-cash equity-based compensation expense, capitalized equity-based compensation expense, merger and integration expenses, other non-cash transactions and provision for (benefit from) income taxes, if any. Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because the measure allows it to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company adds the items listed above to net income (loss) to determine Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Further, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts.

    The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA:

    Diamondback Energy, Inc.
    Reconciliation of Net Income (Loss) to Adjusted EBITDA
    (unaudited, in millions)
               
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    Net income (loss) attributable to Diamondback Energy, Inc.         $         1,405     $         1,074     $         768  
    Net income (loss) attributable to non-controlling interest                   86               216               41  
    Net income (loss)                   1,491               1,290               809  
    Non-cash (gain) loss on derivative instruments, net                   (141 )             (51 )             44  
    Interest expense, net                   40               34               39  
    Depreciation, depletion, amortization and accretion                   1,097               1,156               469  
    Depreciation and interest expense related to equity method investments                   21               30               23  
    (Gain) loss on extinguishment of debt                   —               —               (2 )
    Non-cash equity-based compensation expense                   23               24               21  
    Capitalized equity-based compensation expense                   (5 )             (8 )             (7 )
    Merger and integration expenses                   37               30               12  
    Other non-cash transactions                   (19 )             2               2  
    Provision for (benefit from) income taxes                   403               115               223  
    Consolidated Adjusted EBITDA                   2,947               2,622               1,633  
    Less: Adjustment for non-controlling interest                   146               118               86  
    Adjusted EBITDA attributable to Diamondback Energy, Inc.         $         2,801     $         2,504     $         1,547  
     


    ADJUSTED NET INCOME

    Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest (“net income (loss)”) adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, merger and integration expense, other non-cash transactions and related income tax adjustments, if any. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. Further, in order to allow investors to compare the Company’s performance across periods, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods.

    The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP measure of adjusted net income:

    Diamondback Energy, Inc.
    Adjusted Net Income
    (unaudited, $ in millions except per share data, shares in thousands)
       
      Three Months Ended March 31, 2025
      Amounts   Amounts Per Diluted Share
    Net income (loss) attributable to Diamondback Energy, Inc.(1)         $         1,405     $         4.83  
    Net income (loss) attributable to non-controlling interest                   86               0.30  
    Net income (loss)(1)                    1,491               5.13  
    Non-cash (gain) loss on derivative instruments, net                   (141 )             (0.49 )
    Merger and integration expense                   37               0.13  
    Other non-cash transactions                   (19 )             (0.07 )
    Adjusted net income excluding above items(1)                   1,368               4.70  
    Income tax adjustment for above items                   26               0.09  
    Adjusted net income(1)                   1,394               4.79  
    Less: Adjusted net income attributable to non-controlling interest                   74               0.25  
    Adjusted net income attributable to Diamondback Energy, Inc.(1)         $         1,320     $         4.54  
           
    Weighted average common shares outstanding:      
    Basic                     289,612  
    Diluted                     289,612  
    (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc, (ii) less the reallocation of $6 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding for the respective periods.
       


    OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES AND FREE CASH FLOW

    Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The Company believes operating cash flow before working capital changes is a useful measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure.

    Free Cash Flow, which is a non-GAAP financial measure, is cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company believes that Free Cash Flow is useful to investors as it provides measures to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis as adjusted for non-recurring tax impacts from divestitures, merger and integration expenses, the early termination of derivative contracts and settlements of treasury locks. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The Company’s computation of Free Cash Flow may not be comparable to other similarly titled measures of other companies. The Company uses Free Cash Flow to reduce debt, as well as return capital to stockholders as determined by the Board of Directors.

    The following tables present a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measure of Free Cash Flow:

    Diamondback Energy, Inc.
    Operating Cash Flow Before Working Capital Changes and Free Cash Flow
    (unaudited, in millions)
     
      Three Months Ended
      March 31, 2025   December 31, 2024
    Net cash provided by operating activities         $         2,355     $         2,341  
    Less: Changes in cash due to changes in operating assets and liabilities:      
    Accounts receivable                   (6 )             (103 )
    Income tax receivable                   3               (3 )
    Prepaid expenses and other current assets                   6               (24 )
    Accounts payable and accrued liabilities                   (374 )             114  
    Income taxes payable                   135               138  
    Revenues and royalties payable                   84               59  
    Other                   20               (100 )
    Total working capital changes                   (132 )             81  
    Operating cash flow before working capital changes                   2,487               2,260  
    Additions to oil and natural gas properties                   (942 )             (933 )
    Total Cash CAPEX                   (942 )             (933 )
    Free Cash Flow                   1,545               1,327  
    Merger and integration expenses                   37               30  
    Treasury locks                   1               —  
    Adjusted Free Cash Flow         $         1,583     $         1,357  
     


    NET DEBT

    The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and unamortized basis adjustments) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.

    Diamondback Energy, Inc.
    Net Debt
    (unaudited, in millions)
                           
      March 31, 2025   Net Q1 Principal Borrowings/(Repayments)   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      (in millions)
    Diamondback Energy, Inc.(1)         $         13,269     $         1,200     $         12,069     $         12,284     $         11,169     $         5,669  
    Viper Energy, Inc.(1)                   830               (261 )             1,091               830               1,007               1,103  
    Total debt                   14,099     $         939               13,160               13,114               12,176               6,772  
    Cash and cash equivalents                   (1,816 )                 (161 )             (370 )             (6,908 )             (896 )
    Net debt         $         12,283         $         12,999     $         12,744     $         5,268     $         5,876  
    (1) Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.
       


    DERIVATIVES

    As of May 2, 2025, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper Energy, Inc. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.

      Crude Oil (Bbls/day, $/Bbl)
      Q2 2025   Q3 2025   Q4 2025   Q1 2026
    Long Puts – Crude Brent Oil   50,000       36,000       21,000       4,000  
    Long Put Price ($/Bbl)   $58.30       $56.39       $55.00       $55.00  
    Deferred Premium ($/Bbl)   $-1.50       $-1.50       $-1.47       $-1.45  
    Long Puts – WTI (Magellan East Houston)   96,000       102,000       65,000       15,000  
    Long Put Price ($/Bbl)   $55.10       $54.75       $54.62       $55.00  
    Deferred Premium ($/Bbl)   $-1.59       $-1.61       $-1.63       $-1.66  
    Long Puts – WTI (Cushing)   152,000       146,000       86,000       25,000  
    Long Put Price ($/Bbl)   $55.53       $54.40       $53.98       $55.00  
    Deferred Premium ($/Bbl)   $-1.59       $-1.55       $-1.55       $-1.32  
    Basis Swaps – WTI (Midland)   71,000       76,000       76,000        
      $1.05       $1.05       $1.05        
    Roll Swaps – WTI   25,000       25,000       25,000        
      $0.93       $0.93       $0.93        
      Natural Gas (Mmbtu/day, $/Mmbtu)
      Q2 2025   Q3 2025   Q4 2025   FY 2026 FY 2027
    Costless Collars – Henry Hub   690,000       690,000       690,000       620,000     40,000  
    Floor Price ($/Mmbtu)   $2.49       $2.49       $2.49       $2.77     $3.00  
    Ceiling Price ($/Mmbtu)   $5.28       $5.28       $5.28       $6.33     $6.65  
    Natural Gas Basis Swaps – Waha Hub   610,000       610,000       610,000       460,000     240,000  
      $-0.88       $-0.88       $-0.88       $-1.62     $-1.48  
    Natural Gas Basis Swaps – Houston Ship Channel   13,407       20,000       20,000       40,000      
      $-0.49       $-0.49       $-0.49       $-0.37      

    Investor Contact:
    Adam Lawlis
    +1 432.221.7467
    alawlis@diamondbackenergy.com

    The MIL Network

  • MIL-OSI: Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Reports First Quarter 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, May 05, 2025 (GLOBE NEWSWIRE) — Viper Energy, Inc., (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced financial and operating results for the first quarter ended March 31, 2025.

    FIRST QUARTER HIGHLIGHTS

    • As previously announced, Q1 2025 average production of 31,311 bo/d (57,378 boe/d)
    • Q1 2025 consolidated net income (including non-controlling interest) of $153 million; net income attributable to Viper of $75 million, or $0.62 per Class A common share
    • Q1 2025 cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $100 million, or $0.76 per Class A common share
    • Declared Q1 2025 base cash dividend of $0.30 per Class A common share; implies a 2.9% annualized yield based on the May 2, 2025, Class A common share closing price of $42.08
    • Declared Q1 2025 variable cash dividend of $0.27 per Class A common share; total base-plus-variable dividend of $0.57 per Class A common share implies a 5.4% annualized yield based on the May 2, 2025, Class A common share closing price of $42.08
    • Total Q1 2025 return of capital to Class A shareholders of $75 million, or $0.57 per Class A common share, represents 75% of cash available for distribution
    • 442 total gross (8.0 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during Q1 2025 with an average lateral length of 11,946 feet

    RECENT EVENTS AND FORWARD OUTLOOK

    • As previously announced, on May 1, 2025, closed the Drop Down transaction, whereby Viper Energy Partners LLC (“OpCo”), the Company’s operating subsidiary, acquired all of the equity interests of certain mineral and royalty subsidiaries of Diamondback for consideration of $1.0 billion of cash and 69.6 million limited liability company units of OpCo and an equivalent number of shares of the Company’s Class B common stock (the “Drop Down”)
    • Following the close of the Drop Down, Viper’s long-term issuer default rating was upgraded to BBB- by Fitch; represents second investment grade rating for Viper
    • As of May 2, 2025, during the second quarter of 2025, repurchased 239,374 shares of the Company’s Class A common stock for an aggregate purchase price of approximately $9 million, excluding excise tax (average price of $37.85 per Class A common share)
    • As of May 2, 2025, during the second quarter of 2025, repurchased approximately $36 million in aggregate principal amount of the Company’s 5.375% Senior Notes due 2027 (“2027 Notes”)
    • Initiating average daily production guidance for Q2 2025 of 40,000 to 43,000 bo/d (72,500 to 78,000 boe/d)
    • Maintaining average daily production for the balance of 2025, following the closing of the Drop Down, of 47,000 to 49,000 bo/d (85,000 to 88,000 boe/d), resulting in expected full year 2025 average daily production of 41,000 to 43,500 bo/d (74,500 to 79,000 boe/d)

    “As previously announced, we are excited the transformative Drop Down transaction between Viper and Diamondback has closed. As a result of the conservative financing of this transaction, as well as Viper’s continued strong financial and operating results, we expect leverage to remain below 1.0x even in a sustained $50 per barrel WTI environment. Given the strength of our balance sheet, we will look to use this period of volatility to our advantage where we can, as highlighted by the opportunistic share repurchases we have been able to make so far this quarter,” stated Kaes Van’t Hof, Chief Executive Officer of Viper.

    Mr. Van’t Hof continued, “Despite the potential for sustained weakness in commodity prices and reduced activity levels, we expect Viper’s production to remain durable and are maintaining our previous guidance for oil production for the balance of 2025, although we continue to monitor operator activity levels. The symbiotic relationship between Diamondback and Viper is highlighted during times like these where Diamondback continues to focus its development on wells where Viper owns high royalty interests, and therefore enhances Diamondback’s consolidated capital efficiency. Further, the roughly 45% of Viper’s current production that is operated by third parties is predominately exposed to well-capitalized operators in the best parts of the Permian Basin, led by Exxon operating almost half of our third party production.”

    FINANCIAL UPDATE

    As previously announced, Viper’s first quarter 2025 average unhedged realized prices were $71.33 per barrel of oil, $2.08 per Mcf of natural gas and $24.52 per barrel of natural gas liquids, resulting in a total equivalent realized price of $47.25/boe.

    As previously announced, Viper’s first quarter 2025 average hedged realized prices were $70.26 per barrel of oil, $3.74 per Mcf of natural gas and $24.52 per barrel of natural gas liquids, resulting in a total equivalent realized price of $48.99/boe.

    During the first quarter of 2025, the Company recorded total operating income of $245 million and consolidated net income (including non-controlling interest) of $153 million.

    As of March 31, 2025, the Company had a cash balance of $560 million and total long-term debt outstanding (excluding debt issuance costs, discounts and premiums) of $830 million, resulting in net debt (as defined and reconciled below) of $270 million. Viper’s outstanding long-term debt as of March 31, 2025 consisted of $430 million in aggregate principal amount of its 2027 Notes, $400 million in aggregate principal amount of its 7.375% Senior Notes due 2031 and no borrowings on its revolving credit facility, leaving $1.3 billion available for future borrowings and $1.9 billion of total liquidity.

    As of May 1, 2025, after giving effect to the closing of the Drop Down, Viper had roughly $255 million in borrowings on its revolving credit facility, leaving approximately $995 million available for future borrowings and a similar amount of total liquidity.

    As of May 2, 2025, during the second quarter of 2025, Viper had repurchased approximately $36 million in aggregate principal amount of the Company’s 2027 Notes.

    FIRST QUARTER 2025 CASH DIVIDEND & CAPITAL RETURN PROGRAM

    Viper announced today that the Company’s Board of Directors (the “Board”) declared a base cash dividend of $0.30 per Class A common share for the first quarter of 2025, payable on May 22, 2025 to Class A common shareholders of record at the close of business on May 15, 2025.

    The Board also declared a variable cash dividend of $0.27 per Class A common share for the first quarter of 2025, payable on May 22, 2025 to Class A common shareholders of record at the close of business on May 15, 2025.

    As of May 2, 2025, during the second quarter of 2025, Viper repurchased 239,374 shares of Class A common stock for an aggregate purchase price of approximately $9 million, excluding excise tax (average price of $37.85 per Class A common share). In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through May 2, 2025, the Company has repurchased 13,683,957 shares of Class A common stock for an aggregate purchase price of approximately $325 million, reflecting an average price of $23.74 per Class A common share. Future base and variable cash dividends and stock repurchases are at the discretion of the Board and are subject to a number of factors discussed in Viper’s reports filed with the Securities and Exchange Commission.

    OPERATIONS UPDATE

    During the first quarter of 2025, Viper estimates that 442 gross (8.0 net 100% royalty interest) horizontal wells with an average royalty interest of 1.8% were turned to production on its acreage position with an average lateral length of 11,946 feet. Of these 442 gross wells, Diamondback is the operator of 108 gross wells, with an average royalty interest of 4.0%, and the remaining 334 gross wells, with an average royalty interest of 1.1%, are operated by third parties.

    As of March 31, 2025, Viper’s footprint of mineral and royalty interests was 37,573 net royalty acres on a historical basis and 60,725 net royalty acres on a pro forma basis, after giving effect to the Drop Down.

    Our gross well information as of May 1, 2025 is as follows, after giving effect to the Drop Down:

      Diamondback
    Operated
      Third-Party
    Operated
      Total
    Q1 2025 Horizontal wells turned to production(1)(2):          
    Gross wells 108   334   442  
    Net 100% royalty interest wells 4.3   3.7   8.0  
    Average percent net royalty interest 4.0%   1.1%   1.8%  
               
    Horizontal producing well count:          
    Gross wells 3,725   11,546   15,271  
    Net 100% royalty interest wells 235.0   165.0   400.0  
    Average percent net royalty interest 6.3%   1.4%   2.6%  
               
    Horizontal active development well count:          
    Gross wells 239   682   921  
    Net 100% royalty interest wells 13.0   10.4   23.4  
    Average percent net royalty interest 5.4%   1.5%   2.5%  
               
    Line of sight wells:          
    Gross wells 417   677   1,094  
    Net 100% royalty interest wells 27.1   8.9   36.0  
    Average percent net royalty interest 6.5%   1.3%   3.3%  

    (1) Represents wells turned to production on Viper’s standalone acreage position; does not give effect to the Drop Down.
    (2) Average lateral length of 11,946 feet.

    The 921 gross wells currently in the process of active development are those wells that have been spud and are expected to be turned to production within approximately the next six to eight months. Further in regard to the active development on Viper’s asset base, after giving effect to the Drop Down, there are currently 63 gross rigs operating on Viper’s acreage, 16 of which are operated by Diamondback. The 1,094 line-of-sight wells are those that are not currently in the process of active development, but for which Viper has reason to believe that they will be turned to production within approximately the next 15 to 18 months. The expected timing of these line-of-sight wells is based primarily on permitting by third-party operators or Diamondback’s current expected completion schedule. Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.

    GUIDANCE UPDATE

    Below is Viper’s guidance for the full year 2025, as well as average production guidance for Q2 2025, which gives effect to the Drop Down. Given recent market volatility, Diamondback and our other operators are closely monitoring the macro environment and may review their operating plans for the remainder of 2025, and thus our production guidance could be subject to change.

       
      Viper Energy, Inc.
       
    Q2 2025 Net Production – Mbo/d 40.0 – 43.0
    Q2 2025 Net Production – Mboe/d 72.5 – 78.0
    Full Year 2025 Net Production – Mbo/d 41.0 – 43.5
    Full Year 2025 Net Production – Mboe/d 74.5 – 79.0
       
    Unit costs ($/boe)  
    Depletion $15.50 – $16.50
    Cash G&A $0.80 – $1.00
    Non-Cash Share-Based Compensation $0.10 – $0.20
    Net Interest Expense $2.00 – $2.50
       
    Production and Ad Valorem Taxes (% of Revenue) ~7%
    Cash Tax Rate (% of Pre-Tax Income Attributable to the Company)(1) 21% – 23%
    Q2 2025 Cash Taxes ($ – million)(2) $10 – $15

    (1) Pre-tax income attributable to the Company is reconciled below.
    (2) Attributable to the Company.


    CONFERENCE CALL

    Viper will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2025 on Tuesday, May 6, 2025 at 10:00 a.m. CT. Access to the live audio-only webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Viper’s website at www.viperenergy.com under the “Investor Relations” section of the site.

    About Viper Energy, Inc.

    Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin in West Texas. For more information, please visit www.viperenergy.com.

    About Diamondback Energy, Inc.

    Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

    Forward-Looking Statements

    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the Drop Down and any other acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases, and any related company or government policies or actions; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial sector; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production on Viper’s mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change and the risks and other factors disclosed in Viper’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov.

    In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

    Viper Energy, Inc.
    Condensed Consolidated Balance Sheets
    (unaudited, in millions, except par values and share data)
           
      March 31,   December 31,
        2025       2024  
    Assets      
    Current assets:      
    Cash and cash equivalents $ 560     $ 27  
    Royalty income receivable (net of allowance for credit losses)   146       149  
    Royalty income receivable—related party   41       31  
    Income tax receivable   2       2  
    Derivative instruments   31       18  
    Prepaid expenses and other current assets   12       11  
         Total current assets   792       238  
    Property:      
    Oil and natural gas interests, full cost method of accounting ($2,279 and $2,180 excluded from depletion at March 31, 2025 and December 31, 2024, respectively)   6,097       5,713  
    Land   6       6  
    Accumulated depletion and impairment   (1,148 )     (1,081 )
         Property, net   4,955       4,638  
    Derivative instruments   12        
    Deferred income taxes (net of allowances)   249       185  
    Funds held in escrow   223       1  
    Other assets   7       7  
         Total assets $ 6,238     $ 5,069  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable—related party $ 2     $ 2  
    Accrued liabilities   66       43  
    Derivative instruments   5       2  
    Income taxes payable   18       2  
         Total current liabilities   91       49  
    Long-term debt, net   822       1,083  
    Derivative instruments   2        
    Other long-term liabilities         30  
         Total liabilities   915       1,162  
    Stockholders’ equity:      
    Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 131,323,078 shares issued and outstanding as of March 31, 2025 and 102,977,142 shares issued and outstanding as of December 31, 2024          
    Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 87,831,750 shares issued and outstanding as of March 31, 2025 and 85,431,453 shares issued and outstanding as of December 31, 2024          
    Additional paid-in capital   2,566       1,569  
    Retained earnings (accumulated deficit)   108       118  
         Total Viper Energy, Inc. stockholders’ equity   2,674       1,687  
    Non-controlling interest   2,649       2,220  
    Total equity   5,323       3,907  
         Total liabilities and stockholders’ equity $ 6,238     $ 5,069  
    Viper Energy, Inc.
    Condensed Consolidated Statements of Operations
    (unaudited, in millions, except per share amounts, shares in thousands)
           
      Three Months Ended March 31,
        2025       2024  
    Operating income:      
    Oil income $ 201     $ 177  
    Natural gas income   15       7  
    Natural gas liquids income   28       21  
         Royalty income   244       205  
    Lease bonus income   1        
         Total operating income   245       205  
    Costs and expenses:      
    Production and ad valorem taxes   17       14  
    Depletion   67       47  
    General and administrative expenses—related party   4       2  
    General and administrative expenses   2       3  
         Total costs and expenses   90       66  
    Income (loss) from operations   155       139  
    Other income (expense):      
    Interest expense, net   (13 )     (20 )
    Gain (loss) on derivative instruments, net   32       (7 )
         Total other income (expense), net   19       (27 )
    Income (loss) before income taxes   174       112  
    Provision for (benefit from) income taxes   21       13  
    Net income (loss)   153       99  
    Net income (loss) attributable to non-controlling interest   78       56  
    Net income (loss) attributable to Viper Energy, Inc. $ 75     $ 43  
           
    Net income (loss) attributable to common shares:      
    Basic $ 0.62     $ 0.49  
    Diluted $ 0.62     $ 0.49  
    Weighted average number of common shares outstanding:      
    Basic   120,926       87,537  
    Diluted   121,030       87,629  
    Viper Energy, Inc.
    Condensed Consolidated Statements of Cash Flows
    (unaudited, in millions)
           
      Three Months Ended March 31,
        2025       2024  
    Cash flows from operating activities:      
    Net income (loss) $ 153     $ 99  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
         Provision for (benefit from) deferred income taxes   (1 )     (1 )
         Depletion   67       47  
         (Gain) loss on derivative instruments, net   (32 )     7  
         Net cash receipts (payments) on derivatives   9       (3 )
         Other   1       2  
    Changes in operating assets and liabilities:      
         Royalty income receivable   3       (23 )
         Royalty income receivable—related party   (10 )     (30 )
         Accounts payable and accrued liabilities   (4 )     5  
         Accounts payable—related party         (1 )
         Income taxes payable   15       12  
         Other         1  
              Net cash provided by (used in) operating activities   201       115  
    Cash flows from investing activities:      
    Acquisitions of oil and natural gas interests   (486 )     (21 )
    Proceeds from sale of oil and natural gas interests         1  
              Net cash provided by (used in) investing activities   (486 )     (20 )
    Cash flows from financing activities:      
    Proceeds from borrowings under credit facility   295       90  
    Repayment on credit facility   (556 )     (80 )
    Net proceeds from public offering   1,232        
    Dividends to stockholders   (85 )     (44 )
    Dividends to Diamondback   (59 )     (67 )
    Dividends to other non-controlling interest   (9 )      
              Net cash provided by (used in) financing activities   818       (101 )
    Net increase (decrease) in cash and cash equivalents   533       (6 )
    Cash, cash equivalents and restricted cash at beginning of period   27       26  
    Cash, cash equivalents and restricted cash at end of period $ 560     $ 20  
    Viper Energy, Inc.
    Selected Operating Data
    (unaudited)
               
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    Production Data:          
    Oil (MBbls)   2,818     2,747     2,312
    Natural gas (MMcf)   7,221     7,236     5,589
    Natural gas liquids (MBbls)   1,142     1,209     954
    Combined volumes (Mboe)(1)   5,164     5,162     4,198
               
    Average daily oil volumes (bo/d)   31,311     29,859     25,407
    Average daily combined volumes (boe/d)   57,378     56,109     46,132
               
    Average sales prices:          
    Oil ($/Bbl) $ 71.33   $ 69.91   $ 76.61
    Natural gas ($/Mcf) $ 2.08   $ 0.84   $ 1.22
    Natural gas liquids ($/Bbl) $ 24.52   $ 22.15   $ 22.17
    Combined ($/boe)(2) $ 47.25   $ 43.56   $ 48.85
               
    Oil, hedged ($/Bbl)(3) $ 70.26   $ 69.00   $ 75.64
    Natural gas, hedged ($/Mcf)(3) $ 3.74   $ 1.05   $ 1.12
    Natural gas liquids ($/Bbl)(3) $ 24.52   $ 22.15   $ 22.17
    Combined price, hedged ($/boe)(3) $ 48.99   $ 43.38   $ 48.19
               
    Average Costs ($/boe):          
    Production and ad valorem taxes $ 3.29   $ 3.13   $ 3.43
    General and administrative – cash component   0.97     0.72     1.08
    Total operating expense – cash $ 4.26   $ 3.85   $ 4.51
               
    General and administrative – non-cash stock compensation expense $ 0.19   $ 0.16   $ 0.12
    Interest expense, net $ 2.52   $ 3.70   $ 4.67
    Depletion $ 12.97   $ 12.51   $ 11.18

    (1) Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
    (2) Realized price net of all deducts for gathering, transportation and processing.
    (3) Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices.

    NON-GAAP FINANCIAL MEASURES

    Adjusted EBITDA is a supplemental non-GAAP (as defined below) financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to the Company, plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before interest expense, net, non-cash share-based compensation expense, depletion, non-cash (gain) loss on derivative instruments, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, if any, other non-recurring expenses, if any, and provision for (benefit from) income taxes. Adjusted EBITDA is not a measure of net income as determined by United States’ generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because it allows them to more effectively evaluate Viper’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income, royalty income, cash flow from operating activities or any other measure of financial performance or liquidity presented as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA.

    Viper defines cash available for distribution to the Company’s shareholders generally as an amount equal to its Adjusted EBITDA for the applicable quarter less cash needed for income taxes payable for the current period, debt service, contractual obligations, fixed charges and reserves for future operating or capital needs that the Board may deem appropriate, lease bonus income, net of tax, distribution equivalent rights payments, preferred dividends, and an adjustment for changes in ownership interests that occurred subsequent to the quarter, if any. Management believes cash available for distribution is useful because it allows them to more effectively evaluate Viper’s operating performance excluding the impact of non-cash financial items and short-term changes in working capital. Viper’s computations of Adjusted EBITDA and cash available for distribution may not be comparable to other similarly titled measures of other companies or to such measure in its credit facility or any of its other contracts. Viper further defines cash available for variable dividends as at least 75 percent of cash available for distribution less base dividends declared and repurchased shares as part of its share buyback program for the applicable quarter.

    The following tables present a reconciliation of the GAAP financial measure of net income (loss) to the non-GAAP financial measures of Adjusted EBITDA, cash available for distribution and cash available for variable dividends:

    Viper Energy, Inc.
    (unaudited, in millions, except per share data)
       
      Three Months Ended
    March 31, 2025
    Net income (loss) attributable to Viper Energy, Inc. $ 75  
    Net income (loss) attributable to non-controlling interest   78  
    Net income (loss)   153  
    Interest expense, net   13  
    Non-cash share-based compensation expense   1  
    Depletion   67  
    Non-cash (gain) loss on derivative instruments   (23 )
    Provision for (benefit from) income taxes   21  
    Consolidated Adjusted EBITDA   232  
    Less: Adjusted EBITDA attributable to non-controlling interest   99  
    Adjusted EBITDA attributable to Viper Energy, Inc. $ 133  
       
    Adjustments to reconcile Adjusted EBITDA to cash available for distribution:  
    Income taxes payable for the current period $ (23 )
    Debt service, contractual obligations, fixed charges and reserves   (9 )
    Lease bonus income, net of tax   (1 )
    Cash available for distribution to Viper Energy, Inc. shareholders $ 100  
      Three Months Ended March 31, 2025
      Amounts   Amounts Per
    Common Share
    Reconciliation to cash available for variable dividends:      
    Cash available for distribution to Viper Energy, Inc. shareholders $ 100   $ 0.76
           
    Return of Capital $ 75   $ 0.57
    Less:      
    Base dividend   39     0.30
    Cash available for variable dividends $ 36   $ 0.27
           
    Total approved base and variable dividend per share     $ 0.57
           
    Class A common stock outstanding       131,323

    The following table presents a reconciliation of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of pre-tax income attributable to the Company. Management believes this measure is useful to investors given it provides the basis for income taxes payable by Viper, which is an adjustment to reconcile Adjusted EBITDA to cash available for distribution to holders of the Company’s Class A common stock.

    Viper Energy, Inc.
    Pre-tax income attributable to Viper Energy, Inc.
    (unaudited, in millions)
       
      Three Months Ended
    March 31, 2025
     
    Income (loss) before income taxes $ 174  
    Less: Net income (loss) attributable to non-controlling interest   78  
    Pre-tax income attributable to Viper Energy, Inc. $ 96  
       
    Income taxes payable for the current period $ 23  
    Effective cash tax rate attributable to Viper Energy, Inc.   24.0 %

    Adjusted net income (loss) is a non-GAAP financial measure equal to net income (loss) attributable to the Company plus net income (loss) attributable to non-controlling interest adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, if any, other non-recurring expenses, if any, and related income tax adjustments. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.

    The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to the Company to the non-GAAP financial measure of adjusted net income (loss):

    Viper Energy, Inc.
    Adjusted Net Income (Loss)
    (unaudited, in millions, except per share data)
       
      Three Months Ended March 31, 2025
      Amounts   Amounts Per
    Diluted Share
    Net income (loss) attributable to Viper Energy, Inc. (1) $ 75     $ 0.62  
    Net income (loss) attributable to non-controlling interest   78       0.64  
    Net income (loss)(1)   153       1.26  
    Non-cash (gain) loss on derivative instruments, net   (23 )     (0.19 )
    Adjusted income excluding above items(1)   130       1.07  
    Income tax adjustment for above items   3       0.03  
    Adjusted net income (loss)(1)   133       1.10  
    Less: Adjusted net income (loss) attributed to non-controlling interests   68       0.56  
    Adjusted net income (loss) attributable to Viper Energy, Inc. (1) $ 65     $ 0.54  
           
    Weighted average Class A common shares outstanding:      
    Basic   120,926  
    Diluted   121,030  

    (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of Class A common shares and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to the Company, (ii) less any reallocation of earnings attributable to participating securities, and (iii) divided by diluted weighted average Class A common shares outstanding.


    RECONCILIATION OF LONG-TERM DEBT TO NET DEBT

    The Company defines the non-GAAP measure of net debt as debt (excluding debt issuance costs, discounts and premiums) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.

      March 31, 2025   Net Q1
    Principal
    Borrowings/
    (Repayments)
      December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      (in millions)
    Total long-term debt(1) $ 830     $ (261 )   $ 1,091     $ 831     $ 1,007     $ 1,103  
    Cash and cash equivalents   (560 )         (27 )     (169 )     (35 )     (20 )
    Net debt $ 270         $ 1,064     $ 662     $ 972     $ 1,083  

    (1) Excludes debt issuance costs, discounts & premiums.


    Derivatives

    As of the filing date, the Company had the following outstanding derivative contracts. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent. When aggregating multiple contracts, the weighted average contract price is disclosed.

      Crude Oil (Bbls/day, $/Bbl)
      Q2 2025   Q3 2025   Q4 2025   FY 2026   FY 2027
    Deferred Premium Puts – WTI (Cushing)   20,000       18,000              
    Strike $ 55.00     $ 55.00     $   $   $
    Premium $ (1.61 )   $ (1.60 )   $   $   $
      Natural Gas (Mmbtu/day, $/Mmbtu)
      Q2 2025   Q3 2025   Q4 2025   FY 2026   FY 2027
    Costless Collars – Henry Hub   60,000     60,000     60,000     60,000    
    Floor $ 2.50   $ 2.50   $ 2.50   $ 2.75   $
    Ceiling $ 4.93   $ 4.93   $ 4.93   $ 6.64   $
      Natural Gas (Mmbtu/day, $/Mmbtu)
      Q2 2025   Q3 2025   Q4 2025   FY 2026   FY 2027
    Natural Gas Basis Swaps – Waha Hub   60,000       60,000       60,000       60,000       40,000  
    Swap Price $ (0.80 )   $ (0.80 )   $ (0.80 )   $ (1.50 )   $ (1.40 )

    Investor Contact:

    Chip Seale
    +1 432.247.6218
    cseale@viperenergy.com

    Source: Viper Energy, Inc.; Diamondback Energy, Inc.

    The MIL Network

  • MIL-OSI USA: Ranking Members Markey, Velázquez Introduce Bicameral Legislation to Make Small Business Innovation Programs Permanent Ahead of September Expiration

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey

    Bill Text (PDF) | One-Pager 

    Washington (May 1, 2025) – Senate Committee on Small Business and Entrepreneurship Ranking Member Edward J. Markey (D-Mass.) today introduced the SBIR/STTR Reauthorization Act of 2025, which would make permanent and expand the Small Business Innovation Research Program and the Small Business Technology Transfer Program (SBIR/STTR). House Committee on Small Business Ranking Member Nydia Velázquez (NY-07) is introducing companion legislation in the House.

    For over 40 years, the SBIR and STTR programs have delivered more than $70 billion in research and development (R&D) funding to over 30,000 small businesses nationwide, ushering in technological breakthroughs that have benefited everyday Americans across the country and strengthened our national security. The SBIR and STTR programs are set to expire on September 30, 2025, if they are not reauthorized by Congress.

    “Thanks in part to the SBIR/STTR programs, America has experienced a ‘golden age of innovation’ over the last forty years. And now, as Trump’s reckless tariffs threaten to decimate our most effective innovators–our small businesses–and the Administration slashes research dollars to institutions, it is even more urgent that we make the SBIR and STTR programs permanent,” said Ranking Member Markey. “These programs work because they prioritize merit and promote competition, and I am committed to ensuring that they retain their initial intent of fostering innovation in truly small businesses. I thank Ranking Member Velázquez for her partnership in promoting innovation through small businesses and providing certainty for these programs for decades to come.”

    “For over 40 years, SBIR and STTR have helped America’s small businesses lead the way in cutting-edge research and innovation,” said Ranking Member Velázquez. “At a time when the Trump administration is working to dismantle vital public programs, it is more important than ever to protect what works. This bill gives these programs the long-term support they need by providing stable funding, expanding access, and strengthening safeguards against foreign threats. I am proud to work with Ranking Member Markey to secure the future of these programs.”

    Specifically, the SBIR and STTR Reauthorization Act of 2025 would:

    • Make permanent the SBIR and STTR programs. Permanently authorizing the SBIR and STTR programs would give both small businesses and government agencies the stability needed to continue their collaboration to spur innovation.
    • Maintain competitiveness of SBIR and STTR programs. The legislation maintains the program’s 40-year long practice of facilitating merit-based competition to determine which innovative small businesses receive awards. This legislation would place no caps or limits on small businesses or the number of awards they can receive to ensure unbridled innovation for America.
    • Increase research funding for small businesses and partnering research institutions. Agencies, over the course of 7 years, would be required to allocate at least 7 percent of their extramural R&D budgets to SBIR and 1 percent to STTR—up from 3.2 percent and 0.45 percent, respectively. 
    • Strengthen commercialization efforts. Agencies often fail to identify SBIR/STTR-funded technologies that demonstrate a solution to their needs, fueling a belief that many technologies simply do not showcase commercialization potential. Requiring agencies to designate a Technology Commercialization Official and undergo acquisition training would result in a greater number of SBIR/STTR technologies being commercialized by the federal government. 
    • Maintain bipartisan foreign due diligence efforts. The legislation extends the bipartisan due diligence program until 2030.   
    • Dismantle barriers to broaden participation. The time and resources required to develop an SBIR/STTR proposal can be a significant barrier to entry for many small businesses, particularly those who have limited resources. By reauthorizing the Federal and State Technology Partnership (FAST) Program and allowing agencies to use a portion of their SBIR/STTR funding to assist businesses in developing competitive proposals, the bill would help diversify the applicant pool and bring in new participants, including those from states that have historically received fewer awards. The bill also allows agencies to use a portion of their SBIR and STTR funding to establish internship and fellowship opportunities to spur innovation with a targeted effort to reach women and socially and economically disadvantaged individuals. 

    Massachusetts has the highest per-capita award rate of any state and is the second largest recipient of SBIR/STTR awards in the country, receiving more than 24,000 SBIR awards totaling $8.3 billion, and 2,000 STTR awards totaling over $720 million.

    “The Small Business Technology Council (SBTC) is pleased to offer its endorsement to the bicameral SBIR/STTR Reauthorization Act of 2025. The SBIR/STTR Reauthorization Act of 2025 will build on the successes of the programs, while maintaining what has made them successful in the first place. We particularly appreciate the SBIR/STTR programs being made permanent, a long-overdue step for programs that have proven their worth for over 40 years in the case of SBIR. Small businesses thrive on certainty and making these programs permanent sends a powerful message to small businesses that the government will continue to be a reliable partner and customer for them. SBTC also supports increasing the SBIR and STTR allocations, for the first time since 2011. These programs continue to provide an enormous return on the taxpayer investment, and deserve to a larger investment of Federal R&D expenditures,” said Jere Glover, Executive Director of Small Business Technology Council.

    “The New England Innovation Alliance, a coalition of small, disruptive innovation businesses located in Massachusetts and New Hampshire, strongly supports The SBIR and STTR Reauthorization Act of 2025 introduced by Senator Edward Markey, Ranking Member of the Senate Committee on Small Business and Entrepreneurship, and Representative Nydia Velázquez, Ranking Member of the House Small Business Committee,” said the New England Innovation Alliance. “The SBIR and STTR Reauthorization Act of 2025 would maintain the competitive, merit-based fundamentals of the programs to ensure the best technology is developed to keep America as the world leader. The measure appropriately recognizes that there should be no arbitrary award caps, submission limits, or forced graduation from programs.”

    “Startups in medical technology face a daunting timeline of development, FDA clearance, and coverage determination. The CMS process alone can take more than five years. As a result, the industry has seen private investment move to other sectors with quicker returns. SBIR grants fill a critical gap in early-stage capital for healthcare innovation, a key growth driver for the Commonwealth. MassMEDIC deeply appreciates Sen. Markey’s leadership, collaboration, and commitment to building upon the success of the SBIR program and enthusiastically endorses his SBIR and STTR Reauthorization Act of 2025,” said Brian Johnson, President of MassMEDIC.

    “VentureWell supports the strategic emphasis on entrepreneurial support in the SBIR/STTR Reauthorization Act of 2025, particularly the expansion of the I-Corps program. By recognizing that SBIR and STTR funding is essential—but not alone sufficient—for bridging the ‘valley of death’ between research and commercialization, this legislation rightly positions the federal government as a proactive partner in cultivating top-tier innovators and ensuring their work produces the maximum return on America’s investment in science,” said Phil Weilerstein, President and CEO of VentureWell.

    The legislation is also endorsed by the National Small Business Association (NSBA).

    Ranking Member Markey has been a longtime champion of the SBIR and STTR programs. In 2011, during his time serving in the House of Representatives, Ranking Member Markey played an integral role in SBIR and STTR’s reauthorization efforts. This reauthorization effort was the last time the program’s budget was increased significantly. Ranking Member Markey also introduced a reauthorization bill to improve the programs in 2019 and advocated on behalf of SBIR and STTR small businesses to the Trump administration during the COVID-19 pandemic.

    In March 2025, Ranking Member Markey attended a Senate Small Business and Entrepreneurship Committee hearing titled, “Golden Age of American Innovation: Reforming SBIR-STTR for the 21st Century,” where his witness highlighted the success of the SBIR/STTR programs.

    MIL OSI USA News

  • MIL-OSI USA: Kathleen Adams named 2025 School of Pharmacy Teacher of the Year

    Source: US State of Connecticut

    Appreciating her time as an undergraduate student and graduating from the UConn School of Pharmacy in 2015, Adams rejoined Husky Nation as a faculty member in the fall of 2019. While working at Rhode Island Hospital, the Academic Medical Center for Brown University after graduation, Adams found her time working with learners, whether students or residents, to be most valuable. Through mentoring these learners and helping them reach their goals, Adams became driven to move this passion into a University setting as a professor. Wanting to give back to the School where she first found her love for pharmacy, Adams chose UConn – this time, as a professor.  

    “There is so much reward in seeing that lightbulb moment where students understand a hard concept or feel comfortable talking to a doctor.”

    Headshot of Kathleen Adams (UConn Photo)

    As a professor dedicated to her students, Adams looks forward to working each year to continuously improve lectures, curriculum, and experiences for her students. By valuing student feedback and watching her students implement in-class learning in clinical experiences, Adams strives to create more impactful and meaningful educational activities beyond the classroom.  

    The biggest challenge for Adams came during the transition back to in-person lectures and instruction after the pandemic. In pivoting out of this challenging time, Adams had to continuously adapt and rely on feedback from students.  

    Adams’s proudest accomplishment is the product of a collaboration with UConn’s Cassie Doyno and Lisa Holle as well as educators and software developers from Monash University in Australia. In collaborating, Adams and her colleagues developed the inpatient hospital version of a program called MyDispense. Described by Adams to be almost like a video game, MyDispense allows students to practice looking at patient charts, reviewing different medications, and deciding which medications are safe through interactive online simulations. In committing to inclusivity, MyDispense is a free, fully accessible software platform that any university can use. 

    In looking toward the future, Adams will strive to provide the best academic and professional foundations for students through the School’s new curriculum refresh. Likewise, as a believer in keeping students engaged, Adams plans to incorporate more active learning and immersive experiences in her classroom. 

    “Seeing the process of, over time, improving a course through feedback, practice, and experience has been remarkable.”

    Adams will receive her award during commencement weekend in May.  

    MIL OSI USA News

  • MIL-OSI USA News: ICYMI: “Trump’s Tariffs Are Lifting Some U.S. Manufacturers”

    Source: The White House

    President Donald J. Trump’s relentless pursuit of an American manufacturing renaissance is “boosting demand for some U.S.-made goods, with smaller players reaping the early benefits,” writes The Wall Street Journal, as companies onshore production and buy their products in America.

    Here are a few examples from the story:

    • “‘We are swamped. We are running 24 hours a day, seven days a week in both Chicago and Cleveland,’ said Jack Schron, president of Jergens Inc., which makes manufacturing tools, including industrial screwdrivers, clamps and hoists. Schron said his factories in Ohio and Illinois are ‘going like gangbusters,’ partly owing to new orders from customers looking to avoid paying import tariffs.”
    • “Donny Chaplin, president of Grand River Rubber & Plastics in Ashtabula, Ohio, said he has seen a rush of new inquiries and orders. Two previous customers that had switched to Chinese suppliers a few years ago came back in recent days wanting to buy rubber gaskets from Grand River again, for the plastic pails they manufacture. Three manufacturers of oil filters also got in touch, wanting to shift business from China, with two already placing orders. All together, the new business will be worth about $5 million a year if it is completed, or roughly 10% of Grand River’s revenue. That might require the company to hire new employees and expand production lines.”
    • “The tariffs are a lifeline for the U.S. companies that sprang up during the Covid-19 pandemic to produce face masks, rubber gloves and other personal protective equipment, after shipments from Asia declined. The companies struggled in the pandemic’s aftermath, when hospitals and clinics abandoned U.S. manufacturers and returned to lower-cost suppliers in China, U.S. executives said. But new U.S. tariffs on rubber gloves from China have doubled the price from a few months ago, and ‘the folks that are relying on China are scrambling for other sources,’ said Alan Rust, chief growth officer for SafeSource Direct … ‘We were getting stiffed for a very long time, but just recently we’ve been getting a lot more inquiries.’”
    • “Employees for Massachusetts-based AccuRounds are working overtime to accommodate rising orders for the company’s shafts, valves and other steel components. The company recently added two customers that had shifted business from AccuRounds to suppliers in Singapore and China in recent years. First-quarter sales were 20% higher from a year earlier, said Chief Executive Michael Tamasi.”
    • “Michigan-based Whirlpool, which assembles 80% of its U.S. appliances at domestic factories, says its Asian competitors have had an unfair advantage, as they manufacture their appliances overseas but haven’t been paying import tariffs on them since 2023, when one imposed during Trump’s first term expired. Those rivals’ access to cheaper components and steel in Asia helps give them a $150 retail price advantage on washers, Whirlpool says. Chief Executive Marc Bitzer said the latest tariffs on imported assembled appliances should help close the price gap. ‘The tariffs will finally help create a level playing field for Whirlpool,’ he said in April during a call with analysts.”

    Meanwhile, The Washington Post reports:

    • “At the local Excel Dryer plant, William Gagnon, the chief operating officer, is unfazed. In fact, President Donald Trump’s import taxes so far have been nothing but good news for one of the world’s largest makers of restroom hand dryers. Gagnon, 48, credits Trump’s first-term tariffs with changing the math on production location decisions … the president’s second-term ‘reciprocal’ tariffs might result in the elimination of trade barriers that prevent Excel’s high-velocity hand dryers from dominating markets in countries such as Brazil and Australia … By making foreign goods more expensive, the import taxes make domestic suppliers more competitive while also discouraging Americans from purchasing cheap Chinese copies of Excel’s hand dryers. The tariffs also offer hope of prying open foreign markets … The tariffs Trump imposed on China this year also have brought more work home for one of Excel Dryer’s local suppliers: Double A Molding in Monson, Massachusetts … As Trump escalated his trade spat with China in recent weeks, Double A felt the effects.”

    MIL OSI USA News