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Category: Politics

  • MIL-OSI Europe: Answer to a written question – Conflicts of interest and political interference by Elon Musk – E-002653/2024(ASW)

    Source: European Parliament

    The Digital Services Act (DSA)[1] aims to contribute to a safe, predictable and trusted online environment that facilitates innovation and in which fundamental rights are protected.

    Under the DSA, very large search engines (VLOSEs) and very large online platforms (VLOPs) with more than 45 million users in the EU, such as X, are subject to specific due diligence obligations, as given their size, they pose particular risks for the protection of fundamental rights, the dissemination of illegal content, civic discourse and electoral processes and societal harms online. The Commission is in charge of supervising and enforcing these obligations.

    The actions taken under the DSA are aimed at ensuring that the systems, including algorithmic ones, of VLOSEs and VLOPs are not misused. Their providers must fulfil their responsibilities to identify and mitigate the risks related to such systems in the EU.

    On 18 December 2023, the Commission opened an investigation into X’s compliance with the DSA[2]. This investigation covers, among other things, X’s compliance with the DSA in relation to the dissemination of illegal content and the effectiveness of the measures taken to combat platform and information manipulation. At this stage, the Commission cannot comment on ongoing investigations.

    Finally, the Commission is continuously monitoring security matters related to social media platforms and has issued internal guidance regarding the use of such applications on the devices used for professional purposes. The Commission does not encourage the use of non-corporate tools for professional exchanges on such devices.

    • [1] Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market for Digital Services and amending Directive 2000/31/EC (Digital Services Act).
    • [2] https://digital-strategy.ec.europa.eu/en/news/commission-opens-formal-proceedings-against-x-under-digital-services-act
    Last updated: 20 February 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Slovakia receives €240 million EIB loan to co-finance green and digital projects supported by the EU

    Source: European Investment Bank

    • EIB provides €240 million loan to Slovakia to advance green and digital projects
    • Slovak government will use EIB long-term financing as national contribution mandatory for EU-financed development projects
    • Credit is first part of €800 million EIB facility approved to strengthen environmental sustainability and economic competitiveness of Slovakia

    The European Investment Bank (EIB) is providing a €240 million loan to Slovakia for co-funding of EU-supported green and digital projects across the country. The credit is the first part of an €800 million EIB loan approved to Slovakia for national contributions mandatory for European Union-supported project which bring billions of euros to member states annually.

    “We are increasing the country’s ability to tap EU grants, enabling Slovak citizens and businesses to benefit from accelerated economic growth and social development,” said EIB Vice-President Kyriacos Kakouris. “Our financing will strengthen cohesion and improve public services, the business environment and living standards in Slovakia.”

    Slovakia will use EIB funding for projects designed to improve research and innovation, digitization of economy, growth and competitiveness of SMEs, work skills for smart specialization, transition and digital connectivity, energy efficiency and renewable energy, climate change adaptation, sustainable water, circular economy and nature protection and biodiversity.

    In addition to helping green Slovakia’s economy, such projects will enhance the country’s living standards and strengthen its competitiveness on global markets.

     “This EIB loan will enable us to support projects that drive digital innovation, expand renewable energy, and enhance climate resilience. Our partnership with the EIB ensures that Slovakia remains at the forefront of the EU’s sustainability goals while fostering job creation and economic resilience in our regions. We are dedicated to using these funds wisely to build a smarter, cleaner, and more competitive economy,” said the Slovak Minister of Finance Ladislav Kamenický.

     EIB annual results in Slovakia for 2024

    In 2024, the EIB Group increased its financing in Slovakia by 21% to €355 million. Key initiatives last year included €50 million to support eco-friendly water and wastewater management in Bratislava and €65 million to help Slovak small and medium enterprises (SMEs) and Mid-Caps drive job creation, enhance competitiveness and advance climate action goals.

    “Our 2024 results are good news for Slovakia and the EU,” said EIB Vice- President Kakouris. “We financed projects of vital importance for a sustainable, green and prosperous future for Slovakia. Our commitment to Slovakia remains strong and, as the country pursues its development goals, it can continue to rely on the EIB for support.”

    EIB advisory activities in the country last year included addressing affordable-housing challenges in Bratislava. Expanding affordable housing across the EU is one of eight operational priorities for the EIB.

     Background information

     European Investment Bank: The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

     The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. 

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. 

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

    MIL OSI Europe News –

  • MIL-OSI Europe: Briefing – Planned revision of the EU Return Directive – 20-02-2025

    Source: European Parliament

    According to Directive 2008/115/EC (the Return Directive, RD), third-country nationals (TCNs) staying illegally on the territory of a Member State should, as a general rule, be issued a return decision obliging them to leave the EU. However, available data suggest that among those who receive such a decision, only about a quarter actually leave the EU (see Figure 1). Data on irregular migration, as well as returns statistics, should be used carefully, as they are often incomplete, inconsistent and insufficient. For example, statistics on return decisions may contain duplicates, whereas data on certain voluntary returns are not collected systematically. In 2018, the European Commission proposed a targeted revision of the RD aimed at updating the rules and streamlining procedures across Member States. As progress on the proposal stalled, the Commission sought to improve return rates through enhanced operational cooperation (e.g. an operational strategy on returns and a recommendation on mutual recognition of return decisions). The pact on migration and asylum, adopted in May 2024, introduced several changes on return. These include a new return border procedure applicable to TCNs rejected in the asylum border application, and the obligation for Member States to issue a common or joint decision for the rejection of an asylum claim and return. In her political guidelines for 2024-2029, the President of the European Commission, Ursula von der Leyen, announced her intention to develop a new common approach on returns, which would include a new legislative proposal on return. The European Parliament has reiterated the need to improve the effectiveness of the EU’s return policy, highlighting also the need to reconcile the sustainability of returns and respect for fundamental rights.

    MIL OSI Europe News –

  • MIL-OSI Europe: Briefing – Japan’s Parliament and other political institutions – 20-02-2025

    Source: European Parliament

    Japan is a constitutional monarchy, with a parliamentary system of government based on the separation of powers. The Emperor is the symbol of the state and does not hold political functions, only performing ceremonial duties. Nevertheless, he can play an important diplomatic role. With Emperor Naruhito’s enthronement in 2019, following his father’s abdication, Japan has entered the Reiwa (beautiful harmony) era. The 2001 administrative reform strengthened the Prime Minister’s leadership in the cabinet. The Chief Cabinet Secretary also plays an important relevant role. Ishiba Shigeru, leader of the Liberal Democratic Party, has been the country’s Prime Minister since September 2024. The Supreme Court is at the top of the judicial system. It is not a constitutional court, despite handling appeals arising from actual disputes. The appointment of its Justices is reviewed by the people at the first general election of the Lower House following their appointment. Japan is a unitary state divided into 47 prefectures. A Metropolitan Government administers the capital, Tokyo. Japan’s 1947 Constitution recognises ‘local self-government.’ Local governments carry out many of the national policies and programmes. They have limited autonomy, also because of their dependence on financial resources from the central government. Japan has a bicameral parliament − the Diet. Although the two chambers share legislative powers, the Lower House (House of Representatives) prevails in the legislative process and is empowered to adopt the final decision on the budget and on the approval of international treaties. Changes in the regional geopolitical environment and in the country’s demographic structure have prompted debates on issues such as the revision of the ‘pacifist’ Article 9 of the Constitution and the distribution of seats among electoral constituencies. This is an update of a briefing published in December 2020.

    MIL OSI Europe News –

  • MIL-OSI: Lantronix PoE++ Switches Help Power the World’s Largest DC-Powered Warehouse

    Source: GlobeNewswire (MIL-OSI)

    IRVINE, Calif., Feb. 20, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for IoT solutions enabling AI Edge intelligence, today announced its case study on Mouser Electronics’ new 413,000-square-foot, three-story Global Distribution Center, the world’s largest new Class 4 DC-powered installation. The Lantronix PoE++ switches (SM24TBT2DPB and SM24TBT2DPB-DE) are a vital part of the PoE lighting installation for which Mouser won an IBCon 2024 Digie Award for the Most Intelligent DC-Powered Building.

    “Using Lantronix PoE++ switches, we distributed power and controls throughout the Mouser warehouse by using low-voltage DC, which is the best way to create a sustainable building that reduces energy costs while providing a lower carbon footprint and a more comfortable work environment,” said Hannah Walker, chief operating officer of Sinclair Digital, the Authorized Lantronix Valued-Added Reseller that provided the DC digital solution.

    Mouser’s dedication to environmental responsibility and adoption of innovative technologies played a role in its decision to incorporate PoE technology, which delivers DC power to devices over copper Ethernet cabling without the need for separate power supplies or outlets, and
    fault managed power, a DC power infrastructure that eliminates losses associated with AC-to-DC conversion.

    Within enclosures at the ceiling of the new facility, power distribution modules transfer the fault managed power to high voltage DC power for the Lantronix SM24TBT2DPB-DE switches, in turn delivering up to 90W of PoE++ power per port to lighting fixtures, occupancy sensors and other PoE-enabled endpoints. The SM24TBT2DPB switches are also used in racks within the facility to connect more lighting, cameras and wireless access points.

    The PoE lighting system was designed by Baird, Hampton & Brown, a leading electrical engineering firm using Sinclair Digital’s DC digital solution package. Installed by TriCO Electric and Polarity Networks, the PoE lighting fixtures were provided by HE Williams using PoE lighting drivers from MHT Technologies with fault managed power from VoltServer. This DC power infrastructure reduces Mouser’s carbon footprint while improving lighting control and operational costs.

    Benefits of Mouser’s all DC-powered PoE lighting solution include:

    • Reduced energy consumption and related cost savings
    • Minimized environmental impact
    • Enhanced flexibility by improving lighting control
    • Reduced operational costs with fewer maintenance requirements
    • Improved lighting environment for warehouse employees
    • Ability to move and change lighting as warehouse needs change

    “Our Dallas-Fort Worth distribution center now operates on the world’s largest Class 4 power system, providing state-of-the-art lighting for our employees while helping us reduce our energy usage over the long term. Moreover, it provides scalability and flexibility to move or add devices as our needs change, further reducing our long-term costs,” said Pete Shopp, senior vice president of Business Operations at Mouser Electronics.

    Visit the complete Mouser case study here.

    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 of 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.

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

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

    Lantronix Analyst and Investor Contact:        
    investors@lantronix.com

    The MIL Network –

  • MIL-OSI Europe: Written question – Radio Televisión Española and the Recovery and Resilience Facility – E-000571/2025

    Source: European Parliament

    Question for written answer  E-000571/2025
    to the Commission
    Rule 144
    Isabel Benjumea Benjumea (PPE), Dolors Montserrat (PPE)

    The Spanish Government has allocated over EUR 117 million in Recovery and Resilience Facility funding to the Spanish broadcasting company Radio Televisión Española (RTVE). This would make RTVE, a public entity, one of the main beneficiaries of those EU recovery funds.

    The various projects RTVE has financed using those EU funds have not had the impact expected – they have actually been very controversial owing to breaches of regulatory requirements, the return of some of the funding, and the state of RTVE’s finances.

    In light of the fact that RTVE is in such dire financial straits that it, firstly, has been forced by the unsustainable state of its accounts to turn to a government reserve fund, and secondly, continues to run up debt: should the Recovery and Resilience Facility be used to fund such a public entity – especially if the projects funded have not achieved the targets they were designed to?

    Submitted: 7.2.2025

    Last updated: 20 February 2025

    MIL OSI Europe News –

  • MIL-OSI: Kaltura Announces Financial Results for Fourth Quarter and Full Year 2024

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) — Kaltura, Inc. (“Kaltura” or the “Company”), the video experience cloud, today announced financial results for the fourth quarter and full year ended December 31, 2024, as well as outlook for first quarter and full year 2025.

    “We surpassed our guidance for the fourth quarter, delivering record total and subscription revenue, as well as the highest Adjusted EBITDA since the second quarter of 2020, fueled by record high gross margin. We also posted sequential and year-over-year growth in gross and net dollar retention rates, and in new bookings for the third quarter in a row,” said Ron Yekutiel, Co-founder, Chairman, President and Chief Executive Officer of Kaltura.

    “For the full year, we are pleased to report we achieved record annual subscription revenue, total revenue, and Adjusted EBITDA profit, surpassing our annual guidance for all. We also achieved record gross margin and cash flow from operations. We ended the year with record ARR and RPO, having delivered on our plans to reaccelerate new bookings and revenue throughout the second half of the year, and posted positive cash flow from operations for the year, for the first time since 2020.” Mr. Yekutiel continued, “As we look ahead to 2025 and beyond, we anticipate continued improvement in the market environment for enterprise video offerings, and believe our path to increased growth and profitability will be fueled by customer consolidation around our platform, maturity of our newer products, leveraging our exciting new generative artificial intelligence (“Gen AI”) capabilities, growth potential within our great customer base, and a regrowth of our sales force.”

    Fourth Quarter 2024 Financial Highlights:

    • Revenue for the fourth quarter of 2024 was $45.6 million, an increase of 3% compared to $44.5 million for the fourth quarter of 2023.
       
    • Subscription revenue for the fourth quarter of 2024 was $43.4 million, an increase of 6% compared to $40.8 million for the fourth quarter of 2023.
       
    • Annualized Recurring Revenue (ARR) was $173.9 million, an increase of 6% compared to $164.7 million in 2023.
       
    • GAAP Gross profit for the fourth quarter of 2024 was $32.3 million, representing a gross margin of 71% compared to a GAAP gross profit of $28.6 million and gross margin of 64% for the fourth quarter of 2023. 
       
    • Non-GAAP Gross profit for the fourth quarter of 2024 was $32.6 million, representing a non-GAAP gross margin of 71%, compared to a non-GAAP gross profit of $29.1 million and non-GAAP gross margin of 65% for the fourth quarter of 2023. 
       
    • GAAP Operating loss was $3.8 million for the fourth quarter of 2024, compared to an operating loss of $8.8 million for the fourth quarter of 2023.
       
    • Non-GAAP Operating income was $1.5 million for the fourth quarter of 2024, compared to a non-GAAP operating loss of $0.3 million for the fourth quarter of 2023.
       
    • GAAP Net loss was $6.6 million or $0.04 per diluted share for the fourth quarter of 2024, compared to a GAAP net loss of $12.1 million, or $0.09 per diluted share, for the fourth quarter of 2023.
       
    • Non-GAAP Net loss was $1.3 million or $0.01 per diluted share for the fourth quarter of 2024, compared to a non-GAAP net loss of $3.6 million, or $0.03 per diluted share, for the fourth quarter of 2023.
       
    • Adjusted EBITDA was $2.7 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $0.8 million for the fourth quarter of 2023.
       
    • Net cash provided by operating activities was $4.3 million for the fourth quarter of 2024, compared to $1.6 million in the fourth quarter of 2023.

    Full Year 2024 Financial Highlights:

    • Revenue for the full year of 2024 was $178.7 million, an increase of 2% compared to $175.2 million for the full year of 2023.
       
    • Subscription revenue for the full year of 2024 was $167.7 million, an increase of 3% compared to $162.8 million for the full year of 2023.
       
    • GAAP Gross profit for the full year of 2024 was $119.1 million, representing a gross margin of 67% compared to a GAAP gross profit of $112.2 million and gross margin of 64% for the full year of 2023. 
       
    • Non-GAAP Gross profit for the full year of 2024 was $120.5 million, representing a gross margin of 67% compared to a non-GAAP gross profit of $113.8 million and gross margin of 65% for the full year of 2023. 
       
    • GAAP Operating loss was $24.1 million for the full year of 2024, compared to an operating loss of $38.7 million for the full year of 2023.
       
    • Non-GAAP Operating income was $2.7 million for the full year of 2024, compared a non-GAAP operating loss of $6.7 million for the full year of 2023.
       
    • GAAP Net loss was $31.3 million or $0.21 per diluted share for the full year of 2024, compared to a GAAP net loss of $46.4 million, or $0.34 per diluted share, for the full year of 2023.
       
    • Non-GAAP Net loss was $4.5 million or $0.03 per diluted share for the full year of 2024, compared to a non-GAAP net loss of $14.4 million, or $0.10 per diluted share, for the full year of 2023.
       
    • Adjusted EBITDA was $7.3 million for the full year of 2024, compared to an Adjusted EBITDA of negative $2.5 million for the full year of 2023.
       
    • Net cash provided by operating activities was $12.2 million for the full year of 2024, compared to $8.3 million net cash used in operating activities for the full year of 2023.

    Fourth Quarter 2024 Business Highlights:

    • Closed four new seven-digit deals and twenty-nine six-digit deals – the highest combined number of six and seven-digit deals since the third quarter of 2022.
    • Highest new subscription bookings since the fourth quarter of 2022 – third quarter in a row of sequential and year-over-year growth.
    • Sequential and year-over-year improvement in gross retention, and 103% Net Dollar Retention rate.
    • Launched Gen AI based “Class Genie” and “Work Genie” that power real-time hyper-personalized video-first experiences. Our Beta program for evaluating our Work and Class Genies saw strong interest from dozens of large organizations.
    • Kaltura’s Media and Telecom new Gen AI features for streaming services earned a place in the FEED Magazine 2024 Honors List, in the “Special Recognition in AI” category.

    Financial Outlook:

    For the first quarter of 2025, Kaltura expects:

    • Subscription Revenue to grow by 5%-7% year-over-year to between $43.4 million and $44.2 million.
    • Total Revenue to grow by 2%-4% year-over-year to between $45.7 million and $46.5 million.
    • Adjusted EBITDA to be in the range of $2.5 million to $3.5 million.

    For the full year ending December 31, 2025, Kaltura expects:

    • Subscription Revenue to grow by 2%-3% year-over-year to between $170.4 million and $173.4 million.
    • Total Revenue to grow 1%-2% year-over-year to between $179.9 million and $182.9 million.
    • Adjusted EBITDA to be in the range of $12.7 million to $14.7 million.

    The guidance provided above contains forward-looking statements and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Kaltura has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. The reconciliation for Adjusted EBITDA includes but is not limited to the following items: stock-based compensation expenses, depreciation, amortization, financial expenses (income), net, provision for income tax, and other non-recurring operating expenses. These items, which could materially affect the computation of forward-looking GAAP net loss, are inherently uncertain and depend on various factors, some of which are outside of the Company’s control. The guidance above is based on the Company’s current expectations relating to the macro-economic climate trends.

    Additional information on Kaltura’s reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.

    Investor Deck

    Our fourth quarter and full year 2024 Investor Deck has been posted in the investor relations page on our website at: www.investors.kaltura.com.         

    Conference Call

    Kaltura will host a conference call today on February 20, 2025 to review its fourth quarter and full year 2024 financial results and to discuss its financial outlook.

      Time: 8:00 a.m. ET  
      United States/Canada Toll Free: 1-877-407-0789  
      International Toll: 1-201-689-8562  
           

    A live webcast will also be available in the Investor Relations section of Kaltura’s website at: https://investors.kaltura.com/news-and-events/events

    A replay of the webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

    About Kaltura

    Kaltura’s mission is to power any video experience for any organization. Our Video Experience Cloud offers live, real-time, and on-demand video products for enterprises of all industries, as well as specialized industry solutions, currently for educational institutions and for media and telecom companies. Underlying our products and solutions is a broad set of Media Services that are also used by other cloud platforms and companies to power video experiences and workflows for their own products. Kaltura’s Video Experience Cloud is used by leading brands reaching millions of users, at home, at school and at work, for communication, collaboration, training, marketing, sales, customer care, teaching, learning, virtual events, and entertainment experiences.

    Investor Contacts:
    Kaltura
    John Doherty
    Chief Financial Officer
    IR@Kaltura.com

    Sapphire Investor Relations
    Erica Mannion and Michael Funari
    +1 617 542 6180
    IR@Kaltura.com

    Media Contacts:
    Kaltura
    Nohar Zmora
    pr.team@kaltura.com

    Headline Media
    Raanan Loew
    raanan@headline.media
    +1 347 897 9276

    Forward-Looking Statements

    This press 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. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our guidance; our business strategy, plans and objectives for future operations, including new products and capabilities and growth of our salesforce; our expectations regarding growth and profitability goals; and general economic, business and industry conditions, including expectations with respect to trends in customer consolidation and adoption of Gen AI technology.

    In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations.

    Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in Israel and other geographies; our ability to retain our customers and meet demand; our ability to achieve and maintain profitability; the evolution of the markets for our offerings; our ability to keep pace with technological and competitive developments; risks associated with our use of certain artificial intelligence and machine learning models; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications; risks associated with our Application Programming Interfaces, other components in our offerings and other intellectual property; our ability to compete successfully against current and future competitors; our ability to increase customer revenue; risks related to our approach to revenue recognition; our potential exposure to cybersecurity threats; our compliance with data privacy and data protection laws; our ability to meet our contractual commitments; our reliance on third parties; our ability to retain our key personnel; risks related to revenue mix and customer base; risks related to our international operations; risks related to potential acquisitions; our ability to generate or raise additional capital; and the other risks under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”), as such factors are updated in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, filed with the SEC, and as such factors may be updated from time to time in our other filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, to be filed with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of our website at investors.kaltura.com.

    Non-GAAP Financial Measures

    Kaltura has provided in this press release and the accompanying tables measures of financial information that have not been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including non-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of revenue), non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating loss, non-GAAP operating margin (calculated as a percentage of revenue), non-GAAP net loss, non-GAAP net loss per share and Adjusted EBITDA. Kaltura defines these non-GAAP financial measures as the respective corresponding GAAP measure, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) facility exit and transition costs; (4) restructuring charges; and (5) war-related costs. Kaltura defines EBITDA as net profit (loss) before financial expenses (income), net, provision for income taxes, and depreciation and amortization expenses. Adjusted EBITDA is defined as EBITDA (as defined above), adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses, facility exit and transition costs, restructuring charges and other non-recurring operating expenses. We believe these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Kaltura’s financial condition and results of operations. These non-GAAP metrics are a supplemental measure of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP. Non-GAAP financial measures are presented because we believe that they provide useful supplemental information to investors and analysts regarding our operating performance and are frequently used by these parties in evaluating companies in our industry.

    By presenting these non-GAAP financial measures, we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance. We believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Additionally, our management uses these non-GAAP financial measures as supplemental measures of our performance because they assist us in comparing the operating performance of our business on a consistent basis between periods, as described above. Although we use the non-GAAP financial measures described above, such measures have significant limitations as analytical tools and only supplement but do not replace, our financial statements in accordance with GAAP. See the tables below regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

    Key Financial and Operating Metrics

    Annualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”) as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring customer contracts. We calculate ARR by annualizing our recurring revenue for the most recently completed fiscal quarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as well as term licenses for software installed on the customer’s premises (“On-Prem”). For the SaaS and PaaS components, we calculate ARR by annualizing the actual recurring revenue recognized for the latest fiscal quarter. For the On-Prem components for which revenue recognition is not ratable across the license term, we calculate ARR for each contract by dividing the total contract value (excluding professional services) as of the last day of the specified period by the number of days in the contract term and then multiplying by 365. Recurring revenue excludes revenue from one-time professional services and setup fees. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades or price increases or decreases. The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades or downgrades, pending renewals, professional services revenue, foreign exchange rate fluctuations and acquisitions or divestitures. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.

    Net Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period. We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system) ,as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies.

    Remaining Performance Obligations. Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. We expect to recognize 58% of our Remaining Performance Obligations as revenue over the next 12 months, and the remainder over the next four years. However, we cannot guarantee that any portion of our Remaining Performance Obligations will be recognized as revenue within the timeframe we expect or at all.

     
    Consolidated Balance Sheets (U.S. dollars in thousands; Unaudited)
     
        December 31,
          2024       2023  
    ASSETS        
    CURRENT ASSETS:        
    Cash and cash equivalents   $ 33,059     $ 36,684  
    Marketable securities     48,275       32,692  
    Trade receivables     19,978       23,312  
    Prepaid expenses and other current assets     9,481       8,410  
    Deferred contract acquisition and fulfillment costs, current     10,765       10,636  
             
    Total current assets     121,558       111,734  
    LONG-TERM ASSETS:        
    Marketable securities     3,379       5,844  
    Property and equipment, net     16,190       20,113  
    Other assets, noncurrent     2,983       3,100  
    Deferred contract acquisition and fulfillment costs, noncurrent     13,605       17,314  
    Operating lease right-of-use assets     12,308       13,872  
    Intangible assets, net     212       689  
    Goodwill     11,070       11,070  
             
    Total noncurrent assets     59,747       72,002  
    TOTAL ASSETS   $ 181,305     $ 183,736  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    CURRENT LIABILITIES:        
    Current portion of long-term loans     3,110       1,612  
    Trade payables     3,265       3,629  
    Employees and payroll accruals     15,399       12,651  
    Accrued expenses and other current liabilities     14,262       17,279  
    Operating lease liabilities     2,504       2,374  
    Deferred revenue, current     63,123       62,364  
    Total current liabilities     101,663       99,909  
    NONCURRENT LIABILITIES:        
    Deferred revenue, noncurrent     67       369  
    Long-term loans, net of current portion     29,153       33,047  
    Operating lease liabilities, noncurrent     15,263       17,796  
    Other liabilities, noncurrent     10,772       2,295  
             
    Total noncurrent liabilities     55,255       53,507  
    TOTAL LIABILITIES   $ 156,918     $ 153,416  
    STOCKHOLDERS’ EQUITY:        
    Common stock     15       14  
    Treasury stock     (7,801 )     (4,881 )
    Additional paid-in capital     500,024       471,635  
    Accumulated other comprehensive income (loss)     959       1,047  
    Accumulated deficit     (468,810 )     (437,495 )
             
    Total stockholders’ equity     24,387       30,320  
             
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 181,305     $ 183,736  
     
    Consolidated Statements of Operations (U.S. dollars in thousands, except for share data; Unaudited)
     
        Three Months ended
    December 31    		   Twelve Months ended
    December 31,
         2024    2023     2024       2023  
                     
    Revenue:                
                     
    Subscription   $ 43,414   $ 40,787   $ 167,681     $ 162,750  
    Professional services     2,195     3,689     11,036       12,422  
                     
    Total revenue     45,609     44,476     178,717       175,172  
                     
    Cost of revenue:                
                     
    Subscription     9,852     11,118     42,552       44,224  
    Professional services     3,476     4,712     17,059       18,714  
                     
    Total cost of revenue     13,328     15,830     59,611       62,938  
                     
    Gross profit     32,281     28,646     119,106       112,234  
                     
    Operating expenses:                
                     
    Research and development     12,970     12,737     49,430       52,400  
    Sales and marketing     12,345     12,309     47,766       48,798  
    General and administrative     10,759     12,420     46,009       48,718  
    Restructuring     —     —     —       973  
                     
    Total operating expenses     36,074     37,466     143,205       150,889  
                     
    Operating loss     3,793     8,820     24,099       38,655  
                     
    Financial expenses (income), net     1,238     1,847     (434 )     (1,200 )
                     
    Loss before provision for income taxes     5,031     10,667     23,665       37,455  
    Provision for income taxes     1,574     1,400     7,650       8,911  
                     
    Net loss     6,605     12,067     31,315       46,366  
                     
    Net loss per share   $ 0.04   $ 0.09   $ 0.21     $ 0.34  
                     
    Weighted-average shares used in computing net loss per share     150,452,462     141,791,191     147,925,797       138,237,017  
     
    Consolidated Statements of Operations (U.S. dollars in thousands, except for share data; Unaudited)
     
    Stock-based compensation included in above line items:
     
        Three Months ended
    December 31,    		   Twelve Months ended
    December 31,
         2024    2023    2024    2023
                     
    Cost of revenue   $ 195   $ 301   $ 1,002   $ 1,128
    Research and development     1,178     1,295     4,775     4,734
    Sales and marketing     518     840     2,701     3,187
    General and administrative     3,308     5,588     17,786     20,931
                     
    Total   $ 5,199   $ 8,024   $ 26,264   $ 29,980
     
    Revenue by Segment (U.S. dollars in thousands; Unaudited):
     
        Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
         2024    2023    2024    2023
                     
    Enterprise, Education and Technology   $ 32,958   $ 31,569   $ 128,704   $ 125,154
    Media and Telecom     12,651     12,907     50,013     50,018
                     
    Total   $ 45,609   $ 44,476   $ 178,717   $ 175,172
     
    Gross Profit by Segment (U.S. dollars in thousands; Unaudited):
     
        Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
         2024    2023    2024    2023
                     
    Enterprise, Education and Technology   $ 25,901   $ 22,998   $ 96,928   $ 91,624
    Media and Telecom     6,380     5,648     22,178     20,610
                     
    Total   $ 32,281   $ 28,646   $ 119,106   $ 112,234
     
    Consolidated Statement of Cash Flows (U.S. dollars in thousands; Unaudited)
     
        Twelve Months Ended December 31,
          2024       2023  
    Cash flows from operating activities:        
    Net loss   $ (31,315 )   $ (46,366 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
    Depreciation and amortization     5,064       4,717  
    Stock-based compensation expenses     26,264       29,980  
    Amortization of deferred contract acquisition and fulfillment costs     11,447       11,669  
    Non-cash interest income, net     (1,219 )     (1,023 )
    Gain on foreign exchange     (90 )     (728 )
    Changes in operating assets and liabilities:        
    Decrease in trade receivables     3,334       5,475  
    Decrease (Increase) in prepaid expenses and other current assets and other assets, noncurrent     (949 )     648  
    Increase in deferred contract acquisition and fulfillment costs     (7,497 )     (6,561 )
    Decrease in trade payables     (534 )     (5,884 )
    Increase in accrued expenses and other current liabilities     5,376       797  
    Increase (Decrease) in employees and payroll accruals     2,748       (2,233 )
    Increase (Decrease) in other liabilities, noncurrent     (14 )     443  
    Increase in deferred revenue     458       1,626  
    Operating lease right-of-use assets and lease liabilities, net     (840 )     (863 )
             
    Net cash provided by (used in) operating activities     12,233       (8,303 )
             
    Cash flows from investing activities:        
             
    Investment in available-for-sale marketable securities     (50,874 )     (47,708 )
    Proceeds from maturities of available-for-sale marketable securities     38,981       51,976  
    Purchases of property and equipment     (521 )     (2,607 )
    Capitalized internal-use software development costs     —       (1,493 )
    Investment in restricted bank deposit     —       (1,751 )
             
    Net cash used in investing activities     (12,414 )     (1,583 )
             
    Cash flows from financing activities:        
             
    Proceeds from long-term loans     —       3,500  
    Repayment of long-term loans     (2,187 )     (4,500 )
    Proceeds from exercise of stock options     1,620       1,383  
    Payment of debt issuance costs     (17 )     (274 )
    Repurchase of common stock     (2,920 )     —  
    Payments on account of repurchase of common stock     (30 )     —  
             
    Net cash provided by (used in) financing activities     (3,534 )     109  
             
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   $ 90     $ 728  
             
    Net decrease in cash, cash equivalents and restricted cash   $ (3,625 )   $ (9,049 )
    Cash, cash equivalents and restricted cash at the beginning of the year     36,784       45,833  
             
    Cash, cash equivalents and restricted cash at the end of the year   $ 33,159     $ 36,784  
     
    Reconciliation from GAAP to Non-GAAP Results (U.S. dollars in thousands; Unaudited)
     
        Three Months   Twelve Months
        Ended December 31,   Ended December 31,
          2024       2023       2024       2023  
    Reconciliation of gross profit and gross margin                
    GAAP gross profit   $ 32,281     $ 28,646     $ 119,106     $ 112,234  
    Stock-based compensation expense     195       301       1,002       1,128  
    Amortization of acquired intangibles     107       107       427       426  
    Non-GAAP gross profit   $ 32,583     $ 29,054     $ 120,535     $ 113,788  
    GAAP gross margin     71 %     64 %     67 %     64 %
    Non-GAAP gross margin     71 %     65 %     67 %     65 %
    Reconciliation of operating expenses                
    GAAP research and development expenses   $ 12,970     $ 12,737     $ 49,430     $ 52,400  
    Stock-based compensation expense     1,178       1,295       4,775       4,734  
    Amortization of acquired intangibles     —       —       —       —  
    Non-GAAP research and development expenses   $ 11,792     $ 11,442     $ 44,655     $ 47,666  
    GAAP sales and marketing   $ 12,345     $ 12,309     $ 47,766     $ 48,798  
    Stock-based compensation expense     518       840       2,701       3,187  
    Amortization of acquired intangibles     11       13       50       128  
    Non-GAAP sales and marketing expenses   $ 11,816     $ 11,456     $ 45,015     $ 45,483  
    GAAP general and administrative expenses   $ 10,759     $ 12,420     $ 46,009     $ 48,718  
    Stock-based compensation expense     3,308       5,588       17,786       20,931  
    Amortization of acquired intangibles     —       —       —       —  
    Facility exit and transition costs (a)     —       —       —       154  
    War related costs (b)     22       331       44       331  
    Non-GAAP general and administrative expenses   $ 7,429     $ 6,501     $ 28,179     $ 27,302  
    Reconciliation of operating loss and operating margin                
    GAAP operating loss   $ (3,793 )   $ (8,820 )   $ (24,099 )   $ (38,655 )
    Stock-based compensation expense     5,199       8,024       26,264       29,980  
    Amortization of acquired intangibles     118       120       477       554  
    Restructuring (c)     —       —       —       973  
    Facility exit and transition costs (a)     —       —       —       154  
    War related costs (b)     22       331       44       331  
    Non-GAAP operating income ( loss)   $ 1,546     $ (345 )   $ 2,686     $ (6,663 )
    GAAP operating margin     (8 )%     (20 )%     (13 )%     (22 )%
    Non-GAAP operating margin     3 %     (1 )%     2 %     (4 )%
    Reconciliation of net loss                
    GAAP net loss attributable to common stockholders   $ (6,605 )   $ (12,067 )   $ (31,315 )   $ (46,366 )
    Stock-based compensation expense     5,199       8,024       26,264       29,980  
    Amortization of acquired intangibles     118       120       477       554  
    Restructuring (c)     —       —       —       973  
    Facility exit and transition costs (a)     —       —       —       154  
    War related costs (b)     22       331       44       331  
    Non-GAAP loss attributable to common stockholders   $ (1,266 )   $ (3,592 )   $ (4,530 )   $ (14,374 )
                     
    Non-GAAP net loss per share – basic and diluted   $ 0.01     $ 0.03     $ 0.03     $ 0.10  

            

     
    Adjusted EBITDA (U.S. dollars in thousands; Unaudited)
     
      Three Months Ended December 31,   Twelve Months Ended December 31,
        2024       2023       2024       2023  
       
    Net loss $ (6,605 )   $ (12,067 )   $ (31,315 )   $ (46,366 )
    Financial expenses (income), net (d)   1,238       1,847       (434 )     (1,200 )
    Provision for income taxes   1,574       1,400       7,650       8,911  
    Depreciation and amortization   1,230       1,308       5,065       4,717  
    EBITDA   (2,563 )     (7,512 )     (19,035 )     (33,938 )
    Non-cash stock-based compensation expense   5,199       8,024       26,264       29,980  
    Facility exit and transition costs (a)   —       —       —       154  
    Restructuring (c)   —       —       —       973  
    War related costs (b)   22       331       44       331  
    Adjusted EBITDA $ 2,658     $ 843     $ 7,273     $ (2,500 )
    (a)   Facility exit and transition costs for the year ended December 31, 2023, include losses from sale of fixed assets and other costs associated with moving to our temporary office in Israel.
    (b)   The years ended December 31, 2024, and 2023 include costs related to conflicts in Israel. These costs are attributable to the temporary relocation of key employees from Israel for business continuity purposes, the purchase of emergency equipment for key employees, charitable donations to communities directly impacted by the war, and office fixes and modifications.
    (c)   The year ended December 31, 2023 includes employee termination benefits incurred in connection with our 2023 reorganization plan.
    (d)   The three months ended December 31, 2024 and 2023, and the year ended December 31, 2024 and 2023 include $551, $692, $2,682 and $3,178, respectively, of interest expenses and $902, $538, $3,355, and $2,735, respectively, of interest income.
    Reported KPIs
     
        December 31,
         2024    2023
        (U.S. dollars amounts in thousands)
    Annualized Recurring Revenue             $ 173,900   $ 164,723
    Remaining Performance Obligations             $ 203,379   $ 185,305
     
        Three Months Ended December 31,
        2024     2023  
    Net Dollar Retention Rate             103 %   98 %

    The MIL Network –

  • MIL-OSI: TransAlta Reports Strong 2024 Results, Announces Dividend Increase and 2025 Annual Guidance

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the fourth quarter and year ended Dec. 31, 2024.

    “Our business delivered solid results within the upper range of our guidance, driven by high availability across our generation portfolio, along with the enduring performance of our optimization and hedging strategies. During the year, we added 2.2 GW of generation to our fleet, with three contracted wind facilities achieving commercial operation in addition to the acquisition of Heartland Generation. We also returned $214 million, or $0.71 per share, of value to shareholders through dividends and share repurchases at an average price of $10.59 per share,” said John Kousinioris, President and Chief Executive Officer of TransAlta.

    “Given our confidence in the future, we are pleased to announce that our Board of Directors has approved an eight per cent increase to our common share dividend, now equivalent to $0.26 per share on an annualized basis. This represents our sixth consecutive annual dividend increase, affirming our Company’s commitment to returning value to shareholders,” added Mr. Kousinioris.

    “Our portfolio of generating facilities continues to perform well. In 2025, we expect to generate between $450 and $550 million of free cash flow. We maintain a balanced, prudent and disciplined approach to capital allocation and balance sheet strength. We remain focused on advancing development opportunities at our legacy thermal energy campuses, along with pursuing longer term growth options with a commitment to maximizing shareholder value. Looking to 2025 and beyond, I am optimistic about our Company’s momentum and opportunities.”

    Fourth Quarter 2024 Financial Highlights

    • Adjusted EBITDA(1) of $285 million, compared to $289 million for the same period in 2023
    • Free Cash Flow (FCF)(1) of $48 million, or $0.16 per share, compared to $121 million, or $0.39 per share, for the same period in 2023
    • Cash flow from operating activities of $215 million, compared to $310 million from the same period in 2023
    • Net loss attributable to common shareholders of $65 million, or $0.22 per share, compared to $84 million, or $0.27 per share, for the same period in 2023

    Full Year 2024 Financial Highlights

    • Achieved the upper range of both 2024 adjusted EBITDA and FCF guidance
    • Returned $143 million of capital to common shareholders through the buyback of 13.5 million common shares at an average price of $10.59 per share
    • Adjusted EBITDA of $1,253 million, compared to $1,632 million from the same period in 2023
    • FCF of $569 million, or $1.88 per share, compared to $890 million, or $3.22 per share, from the same period in 2023
    • Net earnings attributable to common shareholders of $177 million, or $0.59 per share, compared to $644 million, or $2.33 per share, from the same period in 2023
    • Exited 2024 with a strong financial position, with adjusted net debt to adjusted EBITDA of 3.6 times and available liquidity of $1.6 billion

    Other Business Highlights and Updates

    • Announced an annual dividend increase of eight per cent, now equivalent to $0.26 per share on an annualized basis, which represents the sixth year of consecutive dividend growth
    • Provided 2025 guidance including adjusted EBITDA of $1.15 to $1.25 billion and FCF of $450 to $550 million, or $1.51 to $1.85 per share
    • Completed the acquisition of Heartland Generation at a purchase price of $542 million in December 2024, which added 1.7 GW to gross installed capacity
    • Achieved strong operational availability of 91.2 per cent in 2024, compared to 88.8 per cent in 2023
    • 2024 Total Recordable Injury Frequency of 0.56 compared to 0.30 in 2023
    • Reduced scope 1 and 2 GHG emissions intensity in 2024 to 0.35 tCO2e/MWh from 2023 levels of 0.41 tCO2e/MWh
    • Achieved commercial operation at the White Rock West and East wind facilities in January and April 2024, respectively
    • Achieved commercial operation at the Horizon Hill facility in May 2024
    • Completed the Mount Keith 132kV expansion project during the first quarter of 2024

    Key Business Developments

    Declared Increase in Common Share Dividend
    The Company’s Board of Directors has approved a $0.02 annualized increase to the common share dividend, or 8 per cent increase, and declared a dividend of $0.065 per common share to be payable on July 1, 2025 to shareholders of record at the close of business on June 1, 2025. The quarterly dividend of $0.065 per common share represents an annualized dividend of $0.26 per common share.

    TransAlta Acquired Heartland Generation from Energy Capital Partners

    On Dec. 4, 2024, the Company closed the acquisition of Heartland Generation Ltd. and certain affiliates (collectively, Heartland) for a purchase price of $542 million from an affiliate of Energy Capital Partners (ECP), the parent of Heartland (the Transaction). To meet the requirements of the federal Competition Bureau, the Company entered into a consent agreement with the Commissioner of Competition pursuant to which TransAlta agreed to divest Heartland’s Poplar Hill and Rainbow Lake assets (the Planned Divestitures) following closing of the Transaction. In consideration of the Planned Divestitures, TransAlta and ECP agreed to a reduction of $80 million from the original purchase price for the Transaction. ECP will be entitled to receive the proceeds from the sale of Poplar Hill and Rainbow Lake, net of certain adjustments following completion of the Planned Divestitures. TransAlta also received a further $95 million at closing of the Transaction to reflect the economic benefit of the Heartland business arising from Oct. 31, 2023 to the closing date of the Transaction, pursuant to the terms of the share purchase agreement. The net cash payment for the Transaction, before working capital adjustments, totalled $215 million, and was funded through a combination of cash on hand and draws on TransAlta’s credit facilities.

    Excluding the Planned Divestitures, the Transaction adds 1.7 GW (net interest) of complementary capacity from nine facilities, including contracted cogeneration and peaking generation, legacy gas-fired thermal generation, and transmission capacity, all of which will be critical to support reliability in the Alberta electricity market.

    Mothballing of Sundance Unit 6

    On Nov. 4, 2024, the Company provided notice to the Alberta Electric System Operator (AESO) that Sundance Unit 6 will be mothballed on April 1, 2025, for a period of up to two years depending on market conditions. TransAlta maintains the flexibility to return the mothballed unit to service when market fundamentals improve or opportunities to contract are secured. The unit remains available and fully operational for the first quarter of 2025.

    Production Tax Credit (PTC) Sale Agreements

    On Feb. 22, 2024, the Company entered into 10-year transfer agreements with an AA- rated customer for the sale of approximately 80 per cent of the expected PTCs to be generated from the White Rock and the Horizon Hill wind facilities.

    On June 21, 2024, the Company entered into an additional 10-year transfer agreement with an A+ rated customer for the sale of the remaining 20 per cent of the expected PTCs.

    The expected average annual EBITDA(1) from the two agreements is approximately $78 million (US$57 million).

    Normal Course Issuer Bid (NCIB)

    TransAlta remains committed to enhancing shareholder returns through appropriate capital allocation such as share buybacks and its quarterly dividend. In the first quarter of 2024, the Company announced an enhanced common share repurchase program for 2024, allocating up to $150 million, and targeting up to 42 per cent of 2024 FCF guidance, to be returned to shareholders in the form of share repurchases and dividends.

    On May 27, 2024, the Company announced that it had received approval from the Toronto Stock Exchange to purchase up to 14 million common shares pursuant to an NCIB during the 12-month period that commenced May 31, 2024, and terminates May 31, 2025. Any common shares purchased under the NCIB will be cancelled.

    For the year ended Dec. 31, 2024, the Company purchased and cancelled a total of 13,467,400 common shares at an average price of $10.59 per common share, for a total cost of $143 million, including taxes.

    Horizon Hill Wind Facility Achieves Commercial Operation

    On May 21, 2024, the 202 MW Horizon Hill wind facility achieved commercial operation. The facility is located in Logan County, Oklahoma and is fully contracted to Meta Platforms Inc. for the offtake of 100 per cent of the generation.

    White Rock Wind Facilities Achieve Commercial Operation

    On Jan. 1, 2024, the 100 MW White Rock West wind facility achieved commercial operation. On April 22, 2024, the 202 MW White Rock East wind facility also completed commissioning. The facilities are located in Caddo County, Oklahoma and are contracted under two long-term power purchase agreements (PPAs) with Amazon Energy LLC for the offtake of 100 per cent of the generation.

    Mount Keith 132kV Expansion Complete

    The Mount Keith 132kV expansion project, located in Western Australia, was completed during the first quarter of 2024. The expansion was developed under the existing PPA with BHP Nickel West (BHP), which extends until Dec. 31, 2038. The expansion will facilitate the connection of additional generating capacity to the transmission network which supports BHP’s operations.

    Year Ended and Fourth Quarter 2024 Highlights

    $ millions, unless otherwise stated Year Ended Three Months Ended
    Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024   Dec. 31, 2023  
    Operational information        
    Availability (%) 91.2 88.8 87.8   86.9  
    Production (GWh) 22,811 22,029 6,199   5,783  
    Select financial information        
    Revenues 2,845 3,355 678   624  
    Adjusted EBITDA(1) 1,253 1,632 285   289  
    Earnings (loss) before income taxes 319 880 (51 ) (35 )
    Net earnings (loss) attributable to common shareholders 177 644 (65 ) (84 )
    Cash flows        
    Cash flow from operating activities 796 1,464 215   310  
    Funds from operations(1) 810 1,351 137   229  
    Free cash flow(1) 569 890 48   121  
    Per share        
    Net earnings (loss) per share attributable to common shareholders, basic and diluted 0.59 2.33 (0.22 ) (0.27 )
    Funds from operations per share(1),(2) 2.68 4.89 0.46   0.74  
    FCF per share(1),(2) 1.88 3.22 0.16   0.39  
    Dividends declared per common share 0.24 0.22 0.12   0.12  
    Weighted average number of common shares outstanding 302 276 298   308  


    Segmented Financial Performance

    $ millions

    		 Year Ended Three Months Ended
    Dec. 31, 2024   Dec. 31, 2023   Dec. 31, 2024   Dec. 31, 2023  
    Hydro 316   459   57   56  
    Wind and Solar 316   257   95   82  
    Gas 535   801   116   141  
    Energy Transition 91   122   28   26  
    Energy Marketing 131   109   27   14  
    Corporate (136 ) (116 ) (38 ) (30 )
    Adjusted EBITDA 1,253   1,632   285   289  
    Earnings (loss) before
    income taxes    		 319   880   (51 ) (35 )


    Full Year 2024 Financial Results Summary

    For the year ended Dec. 31, 2024, the Company demonstrated strong financial and operational performance. The results were within the upper range of management’s expectations due to active management of the Company’s merchant portfolio and hedging strategies. During 2024, the Company settled a higher volume of hedges at prices that were significantly above the spot market in Alberta and achieved commercial operation at the White Rock and Horizon Hill wind facilities. On Dec. 4, 2024, the Company completed the acquisition of Heartland Generation, which added 1.7 GW to gross installed capacity. Refer to the Significant and Subsequent Events section of our MD&A dated Dec. 31, 2024, for details on the Heartland acquisition and the Planned Divestitures.

    Availability for the year ended Dec. 31, 2024, was 91.2 per cent, compared to 88.8 per cent in 2023, an increase of 2.4 percentage points, primarily due to:

    • The addition of the White Rock and Horizon Hill wind facilities; and
    • The return to service of the Kent Hills wind facilities.

    Total production for the year ended Dec. 31, 2024, was 22,811 GWh, compared to 22,029 GWh for the same period in 2023, an increase of 782 GWh, or four per cent, primarily due to:

    • Production from new facilities, including the White Rock West and East wind facilities commissioned in January and April 2024, respectively, the Horizon Hill wind facility commissioned in May 2024, and the Northern Goldfields solar facilities commissioned in November 2023;
    • Production from the facilities acquired with Heartland;
    • Favourable market conditions in the Ontario wholesale power market that enabled higher dispatch at the Sarnia facility in the Gas segment that resulted in higher merchant production to the Ontario grid;
    • The return to service of the Kent Hills wind facilities in the first quarter of 2024; and
    • Full-year production from the Garden Plain wind facility; partially offset by
    • Increased economic dispatch at the Centralia facility due to lower market prices compared to the prior year in the Energy Transition segment; and
    • Higher dispatch optimization in Alberta.

    Adjusted EBITDA for the year ended Dec. 31, 2024, was $1,253 million, compared to $1,632 million in 2023, a decrease of $379 million, or 23.2 per cent. The major factors impacting adjusted EBITDA include:

    • Gas adjusted EBITDA decreased by $266 million, or 33 per cent, compared to 2023, primarily due to lower power prices in the Alberta market and resulting increase in economic dispatch, an increase in the price of carbon, higher carbon costs and fuel usage related to production and lower capacity payments, partially offset by a higher volume of favourable hedging positions settled, the utilization of emission credits to settle a portion of our 2023 GHG obligation and lower natural gas prices;
    • Hydro adjusted EBITDA decreased by $143 million, or 31 per cent, compared to 2023, primarily due to lower spot power prices and ancillary services prices in the Alberta market, partially offset by realized premiums above the spot power prices, higher environmental and tax attributes revenues due to higher sales of emission credits to third parties and intercompany sales to the Gas segment and higher ancillary service volumes due to increased demand by the AESO;
    • Energy Transition adjusted EBITDA decreased by $31 million, or 25 per cent, compared to 2023, primarily due to increased economic dispatch driven by lower market prices which negatively impacted merchant production, partially offset by lower fuel and purchased power costs; and
    • Corporate adjusted EBITDA decreased by $20 million, or 17 per cent, compared to 2023, primarily due to higher spending to support strategic and growth initiatives; partially offset by
    • Wind and Solar adjusted EBITDA increasing by $59 million, or 23 per cent, compared to 2023, primarily due to new sales of production tax credits, the return to service of the Kent Hills wind facilities, the commercial operation of the White Rock and Horizon Hill wind facilities, partially offset by lower realized power pricing in the Alberta market and higher OM&A due to the addition of new wind facilities; and
    • Energy Marketing adjusted EBITDA increasing by $22 million, or 20 per cent, compared to 2023, primarily due to favourable market volatility and timing of realized settled trades during the current year in comparison to the prior year and lower OM&A.

    Cash flow from operating activities totalled $796 million for the year ended Dec. 31, 2024, compared to $1,464 million in the same period in 2023, a decrease of $668 million, or 46 per cent, primarily due to:

    • Lower gross margin due to lower revenues, excluding the effect of unrealized losses from risk management activities, partially offset by lower fuel and purchased power;
    • Higher OM&A due to increased spending on planning and design of an ERP system upgrade, higher spending on strategic and growth initiatives, penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions and Heartland acquisition-related transaction and restructuring costs;
    • Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, which was partially offset by lower earnings before income tax in 2024;
    • Unfavourable change in non-cash operating working capital balances due to lower accounts payables and accrued liabilities, partially offset by lower collateral provided as a result of market price volatility;
    • Higher interest expense on debt primarily due to lower capitalized interest resulting from lower construction activity in 2024 compared to 2023; and
    • Lower interest income due to lower cash balances and lower interest rates.

    FCF totalled $569 million for the year ended Dec. 31, 2024, compared to $890 million for the same period in 2023, a decrease of $321 million, or 36 per cent, primarily driven by:

    • The adjusted EBITDA items noted above;
    • Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, partially offset by lower earnings before income taxes in 2024; and
    • Higher net interest expense due to lower capitalized interest resulting from lower construction activity in 2024 compared to 2023, and lower interest income due to lower cash balances and interest rates in 2024 compared to prior year; partially offset by
    • Lower distributions paid to subsidiaries’ non-controlling interests relating to lower TA Cogen net earnings resulting from lower merchant pricing in the Alberta market and the cessation of distributions to TransAlta Renewables non-controlling interest;
    • Lower sustaining capital expenditures due to the receipt of a lease incentive related to the Company’s head office and lower planned major maintenance at our Alberta and Western Australian gas facilities, partially offset by higher major maintenance at our Alberta Hydro assets; and
    • Higher provisions accrued in the current year compared to the prior year resulting in higher FCF.

    Earnings before income taxes totalled $319 million for the year ended Dec. 31, 2024, compared to $880 million in the same period in 2023, a decrease of $561 million, or 64 per cent.

    Net earnings attributable to common shareholders totalled $177 million for the year ended Dec. 31, 2024, compared to $644 million in the same period in 2023, a decrease of $467 million, or 73 per cent, primarily due to:

    • The adjusted EBITDA items discussed above;
    • Higher asset impairment charges due to an increase in decommissioning and restoration provisions on retired assets, driven by a decrease in discount rates and revisions in estimated decommissioning costs and higher impairment charges related to development projects that are no longer proceeding;
    • Lower unrealized mark-to-market gains and lower realized gains on closed exchange positions in the Energy Marketing segment mainly driven by market volatility across North American power and natural gas markets;
    • Higher unrealized mark-to-market losses recorded in the Wind and Solar segment primarily related to the long-term wind energy sales at the Oklahoma facilities;
    • Higher interest expense due to lower capitalized interest during 2024 resulting from lower construction activity in 2024 compared to 2023;
    • Lower capacity payments in 2024 for Southern Cross Energy in Western Australia due to the scheduled conclusion on Dec. 31, 2023 of the demand capacity charge under the customer contract, partially offset by the commencement in March 2024 of capacity payments for the Mount Keith 132kV expansion;
    • Heartland acquisition-related transaction and restructuring costs;
    • Lower interest income due to lower cash balances and lower interest rates during 2024;
    • Higher spending in connection with planning and design work on a planned upgrade to the ERP system;
    • Lower income tax expense due to lower earnings; and
    • Penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions pertaining to Hydro ancillary services provided during 2021 and 2022; partially offset by
    • Lower depreciation and amortization compared to 2023 related to revisions of useful lives of certain facilities in prior and current periods, partially offset by the commercial operation of new facilities during the year and the return to service of the Kent Hills wind facilities;
    • Higher unrealized mark-to-market gains recorded in the Energy Transition segment primarily related to favourable changes in forward prices;
    • A recovery related to the reversal of previously derecognized Canadian deferred tax assets; and
    • Higher net other operating income mainly due to Sundance A decommissioning cost reimbursement.

    Fourth Quarter Financial Results Summary

    Fourth quarter 2024 results were in-line with management’s expectations due to active management of the Company’s merchant portfolio and hedging strategies, despite lower power prices in the Alberta and mid-Columbia markets. The Company settled a higher volume of hedges that were significantly above average spot prices during the period. The acquisition of Heartland on Dec. 4, 2024 positively contributed to production in the Gas segment and further diversifies TransAlta’s competitive portfolio in the highly dynamic and shifting electricity landscape in Alberta by adding 1.7 GW to gross installed capacity.

    Availability for the three months ended Dec. 31, 2024, was 87.8 per cent, compared to 86.9 per cent for the same period in 2023, an increase of 0.9 percentage points, primarily due to:

    • The addition of the White Rock and Horizon Hill wind facilities which operated with high availability;
    • The return to service of the Kent Hills wind facilities;
    • Higher availability in the Hydro segment due to lower planned outages;
    • Higher availability in the Energy Transition segment due to lower unplanned outages; and
    • Positive contribution from the addition of the gas facilities acquired with Heartland; partially offset by
    • Lower availability for the Gas segment due to planned outages at Sarnia, Sheerness and Keephills.

    Production for the three months ended Dec. 31, 2024, was 6,199 GWh, compared to 5,783 GWh for the same period in 2023. The increase of 416 GWh, or seven per cent, was primarily due to:

    • Higher production in the Wind and Solar segment due to the addition of the Horizon Hill and White Rock West and East wind facilities during 2024;
    • Higher production in the Hydro segment compared to the same period in 2023 due to water conservation in the fourth quarter of 2023 that resulted in lower production volumes compared to the current period; partially offset by
    • Lower production in the Energy Transition segment due to higher dispatch optimization, which negatively affected merchant production; and
    • Lower production in the Gas segment driven by lower availability at the Sarnia facility due to planned outages, higher economic dispatch in Alberta and lower production from Western Australia due to lower demand, partially offset by positive contribution from the Heartland gas facilities.

    Adjusted EBITDA for the three months ended Dec. 31, 2024, was $285 million, compared to $289 million in the same period of 2023, a decrease of $4 million, or one per cent. The major factors impacting adjusted EBITDA are summarized below:

    • Gas adjusted EBITDA decreased by $25 million, or 18 per cent, due to lower realized power prices in Alberta, an increase in the carbon price in Canada and higher OM&A driven by higher maintenance costs at the South Hedland facility, partially offset by a higher volume of favourable hedging positions settled, positive contribution from the Heartland gas facilities and lower capacity payments;
    • Corporate adjusted EBITDA decreased by $8 million, or 27 per cent, due to higher spending to support strategic and growth initiatives; partially offset by
    • Wind and Solar adjusted EBITDA increasing by $13 million, or 16 per cent, due to environmental and tax attributes revenues from the sale of PTCs from the White Rock and Horizon Hill wind facilities to taxable US counterparties, higher revenues driven by increased production from the addition of the White Rock and Horizon Hill wind facilities and the return to service of the Kent Hills wind facilities, partially offset by unfavourable merchant power prices in Alberta;
    • Energy Marketing adjusted EBITDA increasing by $13 million, or 93 per cent, due to favourable market volatility and the timing of realized settled trades during 2024 in comparison to the same period in 2023;
    • Energy Transition adjusted EBITDA increasing by $2 million, or eight per cent, compared to 2023, primarily due to lower fuel and purchased power costs, partially offset by increased economic dispatch due to lower market prices; and
    • Hydro adjusted EBITDA increasing by $1 million, or two per cent, due to higher merchant revenues driven by higher volumes, partially offset by lower spot power prices and lower environmental and tax attributes revenues.

    FCF totalled $48 million for the three months ended Dec. 31, 2024, compared to $121 million in the same period in 2023, a decrease of $73 million, or 60 per cent, primarily due to:

    • The adjusted EBITDA items noted above;
    • Higher realized foreign exchange losses compared to realized foreign exchange gains in the comparative period;
    • Higher current income tax expense due to the full utilization of Canadian non-capital loss carryforwards in 2023, partially offset by a higher loss before income taxes in the current period compared to the same period in 2023;
    • Higher net interest expense due to lower capitalized interest as a result of capital projects being completed in the first half of 2024 and lower interest income due to lower cash balances in 2024; and
    • Higher dividends paid on preferred shares; partially offset by
    • Lower distributions paid to subsidiaries’ non-controlling interests due to lower TA Cogen net earnings;
    • Lower sustaining capital due to lower planned maintenance at the Alberta gas facilities, partially offset by higher planned maintenance at the Sarnia cogeneration facility and Alberta hydro facilities; and
    • Higher provisions accrued in the current year compared to the prior year resulting in higher FCF.

    Net loss attributable to common shareholders for the three months ended Dec. 31, 2024, was $65 million, compared to a net loss of $84 million in the same period of 2023, an improvement of $19 million, or 23 per cent, primarily due to:

    • The adjusted EBITDA items discussed above;
    • Higher interest expense due to lower capitalized interest in the fourth quarter of 2024 resulting from lower capital activity compared to the same period in 2023;
    • Heartland acquisition-related transaction and restructuring costs in the fourth quarter of 2024;
    • Higher ERP upgrade costs related to planning and design work;
    • Penalties assessed by the Alberta Market Surveillance Administrator for self-reported contraventions pertaining to Hydro ancillary services provided during 2021 and 2022;
    • Higher depreciation and amortization due to the commercial operation of the White Rock and Horizon Hill wind facilities during 2024; and
    • Higher taxes other than income taxes, mainly consisting of property taxes due to the addition of new wind facilities during 2024; partially offset by
    • Higher realized and unrealized foreign exchange gains;
    • Lower realized gains on closed exchange positions in 2024 compared to the same period in 2023;
    • An income tax recovery relative to the prior period expense as a result of a higher loss before income taxes due to the above noted items; in addition to lower non-deductible expenses;
    • Lower net earnings attributable to non-controlling interest compared to the same period in 2023 due to lower merchant pricing in the Alberta market;
    • Higher net other operating income mainly due to Sundance A decommissioning cost reimbursement; and
    • Lower asset impairment charges related to the decommissioning and restoration provisions on retired assets driven by lower discount rates in the current period compared to the same period in 2023, partially offset by impairment charges related to development projects that are no longer proceeding.

    Alberta Electricity Portfolio

    For the three months and year ended Dec. 31, 2024, the Alberta electricity portfolio generated 3,150 GWh and 11,809 GWh, respectively, compared to 2,989 GWh and 11,759 GWh, respectively, in the same periods in 2023. The annual production increase of 50 GWh, or 0.4 per cent, was primarily due to:

    • Higher production in the Gas segment due to the addition of gas facilities from the acquisition of Heartland; and
    • A full-year of production from the addition of the Garden Plain wind facility, which was commissioned in August 2023; partially offset by
    • Higher dispatch optimization in the Gas segment; and
    • Lower production from the Alberta hydro facilities due to lower water resources compared to the prior year.

    The fourth quarter production increase of 161 GWh, or five per cent, benefited from:

    • Higher production from the Gas segment due to the Heartland acquisition; and
    • Higher production from the Alberta hydro facilities due to significant water conservation during the fourth quarter of 2023; partially offset by
    • Higher economic dispatch for the Alberta gas facilities; and
    • Lower production in the Wind and Solar segment due to lower wind resource.

    Gross margin for the Alberta portfolio for the three months and year ended Dec. 31, 2024, was $191 million and $856 million, respectively, a decrease of $24 million and $392 million, respectively, compared to the same periods in 2023. The annual decrease was primarily due to:

    • The impact of lower Alberta spot power prices and lower hydro ancillary services prices;
    • Increased dispatch optimization in the Gas segment driven by lower power prices; and
    • An increase in the carbon price per tonne from $65 in 2023 to $80 in 2024; partially offset by
    • Higher gains realized on financial hedges settled in the period;
    • Higher environmental and tax attributes revenues due to the increased sales of emission credits to third parties and intercompany sales from the Hydro segment to the Gas segment;
    • The utilization of emission credits in the Gas segment in 2024 to settle a portion of our 2023 GHG obligation;
    • Higher hydro ancillary services volumes due to increased demand by the AESO; and
    • Lower natural gas prices.

    Gross margin for the three months ended Dec. 31, 2024 was impacted by:

    • Lower Alberta spot power prices;
    • Higher carbon compliance costs due to increase in the carbon price from $65 per tonne in 2023 to $80 per tonne in 2024; and
    • Higher purchased power due to the contractual requirement to fulfill physical power trades; partially offset by
    • Higher gains realized on financial hedges settled in the period.

    Alberta power prices for 2024 were lower compared to 2023. The average spot power price per MWh for the three months and year ended Dec. 31, 2024, was $52 and $63, respectively, compared to $82 and $134, respectively, in the same periods in 2023. This was primarily due to:

    • Higher generation from the addition of increased supply of new renewables and combined-cycle gas facilities into the market compared to the prior period; and
    • Lower natural gas prices.

    Hedged volumes for the three months and year ended Dec. 31, 2024, were 2,637 GWh and 9,080 GWh at an average price of $80 per MWh and $84 per MWh, respectively, compared to 1,824 GWh and 7,550 GWh at an average price of $90 per MWh and $110 per MWh, respectively, in 2023.

    Liquidity and Financial Position

    We maintain adequate available liquidity under our committed credit facilities. As at Dec. 31, 2024, we had access to $1.6 billion in liquidity, including $336 million in cash, which exceeds the funds required for committed growth, sustaining capital and productivity projects.

    2025 Outlook and Financial Guidance

    For 2025, management expects adjusted EBITDA to be in the range of $1.15 to $1.25 billion and FCF to be in the range of $450 to $550 million, based on the following, relative to 2024:

    • Higher contribution from the wind and solar portfolio due to a full-year impact of new asset additions of the White Rock and Horizon Hill wind facilities;
    • Contribution from assets acquired with Heartland;
    • Lower contributions from the legacy merchant hydro, wind and gas assets in Alberta which are expected to step down due to lower expected average power prices in Alberta given baseload gas and renewables supply additions in late 2024 and 2025;
    • Lower current income tax expense in 2025 compared to 2024 actual; and
    • Increased net interest expense in 2025 as a result of the Heartland acquisition and lower interest income earned on lower cash deposits and lower capitalized interest on growth projects.

    The following table outlines our expectations regarding key financial targets and related assumptions for 2025 and should be read in conjunction with the narrative discussion that follows and the Governance and Risk Management section of the MD&A for additional information:

    Measure 2025 Target 2024 Target 2024 Actual
    Adjusted EBITDA $1,150 to $1,250 million $1,150 to $1,300 million $1,253 million
    FCF $450 to $550 million $450 to $600 million $569 million
    FCF per share $1.51 to $1.85 $1.47 to $1.96 $1.88
    Annual dividend per share $0.26 annualized $0.24 annualized $0.24 annualized

    The Company’s outlook for 2025 may be impacted by a number of factors as detailed further below.

    Market 2025 Assumptions 2024 Assumptions 2024 Actual
    Alberta spot ($/MWh) $40 to $60 $75 to $95 $63
    Mid-Columbia spot (US$/MWh) US$50 to US$70 US$85 to US$95 US$76
    AECO gas price ($/GJ) $1.60 to $2.10 $2.50 to $3.00 $1.29

    Alberta spot price sensitivity: a +/- $1 per MWh change in spot price is expected to have a +/-$3 million impact on adjusted EBITDA for 2025.

    Other assumptions relevant to the 2025 outlook

      2025 Assumptions 2024 Assumptions 2024 Actual
    Energy Marketing gross margin $110 to $130 million $110 to $130 million $167 million
    Sustaining capital $145 to $165 million $130 to $150 million $142 million
    Current income tax expense $95 to $130 million $95 to $130 million $143 million
    Net interest expense $255 to $275 million $240 to $260 million $231 million
    Hedging assumptions Q1 2025 Q2 2025 Q3 2025 Q4 2025  2026
    Hedged production (GWh)  2,117  1,758  1,942  1,845  4,713
    Hedge price ($/MWh) $72 $70 $70 $70 $75
    Hedged gas volumes (GJ) 14 million 6 million 6 million 6 million 18 million
    Hedge gas prices ($/GJ) $2.98 $3.63 $3.77 $3.65 $3.67


    Conference call

    TransAlta will host a conference call and webcast at 9:00 a.m. MST (11:00 a.m. EST) today, Feb. 20, 2025, to discuss our fourth quarter and year end 2024 results. The call will begin with comments from John Kousinioris, President and Chief Executive Officer, and Joel Hunter, EVP Finance and Chief Financial Officer, followed by a question-and-answer period.

    Fourth Quarter and Full Year 2024 Conference Call

    Webcast link: https://edge.media-server.com/mmc/p/zd49obg6 

    To access the conference call via telephone, please register ahead of time using the call link here: https://register.vevent.com/register/BI5c12d9a2da0e4e06892f413e217f0350. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone.

    Related materials will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/presentations-and-events/. If you are unable to participate in the call, the replay will be accessible at https://edge.media-server.com/mmc/p/zd49obg6. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

    Notes

    (1)These items (adjusted EBITDA, FCF and annual average EBITDA) are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings (loss) trends more readily in comparison with prior periods’ results. Please refer to the Non-IFRS Measures section of this earnings release for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
    (2)Funds from operations (FFO) per share and free cash flow (FCF) per share are calculated using the weighted average number of common shares outstanding during the period. Refer to the Additional IFRS Measures and Non-IFRS Measures section of the MD&A for the purpose of these non-‍IFRS ratios.

    Non-IFRS financial measures and other specified financial measures

    We use a number of financial measures to evaluate our performance and the performance of our business segments, including measures and ratios that are presented on a non-IFRS basis, as described below. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our consolidated financial statements prepared in accordance with IFRS. We believe that these non-IFRS amounts, measures and ratios, read together with our IFRS amounts, provide readers with a better understanding of how management assesses results.

    Non-IFRS amounts, measures and ratios do not have standardized meanings under IFRS. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, as an alternative to, or more meaningful than, our IFRS results.

    Adjusted EBITDA

    Each business segment assumes responsibility for its operating results measured by adjusted EBITDA. Adjusted EBITDA is an important metric for management that represents our core operational results. Interest, taxes, depreciation and amortization are not included, as differences in accounting treatments may distort our core business results. In addition, certain reclassifications and adjustments are made to better assess results, excluding those items that may not be reflective of ongoing business performance. This presentation may facilitate the readers’ analysis of trends.

    Average Annual EBITDA

    Average annual EBITDA is a forward-looking non-IFRS financial measure that is used to show the average annual EBITDA that the project is expected to generate.

    Funds From Operations (FFO)

    FFO is an important metric as it provides a proxy for cash generated from operating activities before changes in working capital and provides the ability to evaluate cash flow trends in comparison with results from prior periods. FFO is a non-IFRS measure. The most directly comparable IFRS measure is Cash Flow from Operations.

    Free Cash Flow (FCF)

    FCF is an important metric as it represents the amount of cash that is available to invest in growth initiatives, make scheduled principal repayments on debt, repay maturing debt, pay common share dividends or repurchase common shares. Changes in working capital are excluded so FFO and FCF are not distorted by changes that we consider temporary in nature, reflecting, among other things, the impact of seasonal factors and timing of receipts and payments. FCF is a non-IFRS measure. The most directly comparable IFRS measure is Cash Flow from Operations.

    Non-IFRS Ratios

    FFO per share, FCF per share and adjusted net debt to adjusted EBITDA are non-IFRS ratios that are presented in the MD&A. Refer to the Reconciliation of Cash Flow from Operations to FFO and FCF and Key Non-IFRS Financial Ratios sections of the MD&A for additional information.

    FFO per share and FCF per share

    FFO per share and FCF per share are calculated using the weighted average number of common shares outstanding during the period. FFO per share and FCF per share are non-IFRS ratios.

    Reconciliation of these non-IFRS financial measures to the most comparable IFRS measure are provided below.

    Reconciliation of Non-IFRS Measures on a Consolidated Basis

    The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the three months ended Dec. 31, 2024:

    Three months ended Dec. 31, 2024
    $ millions    		 Hydro   Wind & Solar(1)   Gas   Energy Transition   Energy
    Marketing    		 Corporate   Total   Equity accounted investments(1)   Reclass adjustments   IFRS financials  
    Revenues 93   104   319   155   14 —   685   (7 ) —   678  
    Reclassifications and adjustments:                  
    Unrealized mark-to-market (gain) loss 4   23   26   (8 ) 19 —   64   —   (64 ) —  
    Realized gains (losses) on closed exchange positions —   —   (1 ) 2   1 —   2   —   (2 ) —  
    Decrease in finance lease receivable —   1   5   —   — —   6   —   (6 ) —  
    Finance lease income —   2   3   —   — —   5   —   (5 ) —  
    Revenues from Planned Divestitures —   —   (1 ) —   — —   (1 ) —   1   —  
    Brazeau penalties (20 ) —   —   —   — —   (20 ) —   20   —  
    Unrealized foreign exchange gain on commodity —   —   (1 ) —   — —   (1 ) —   1   —  
    Adjusted revenues 77   130   350   149   34 —   740   (7 ) (55 ) 678  
    Fuel and purchased power 3   8   136   102   — —   249   —   —   249  
    Reclassifications and adjustments:                  
    Fuel and purchased power related to Planned Divestitures —   —   (1 ) —   — —   (1 ) —   1   —  
    Australian interest income —   —   (1 ) —   — —   (1 ) —   1   —  
    Adjusted fuel and purchased power 3   8   134   102   — —   247   —   2   249  
    Carbon compliance —   —   39   —   — —   39   —   —   39  
    Gross margin 74   122   177   47   34 —   454   (7 ) (57 ) 390  
    OM&A 47   27   67   19   7 68   235   (1 ) —   234  
    Reclassifications and adjustments:                    
    Brazeau penalties (31 ) —   —   —   — —   (31 ) —   31   —  
    ERP integration costs —   —   —   —   — (14 ) (14 ) —   14   —  
    Acquisition-related transaction and restructuring costs —   —   —   —   — (16 ) (16 ) —   16   —  
    Adjusted OM&A 16   27   67   19   7 38   174   (1 ) 61   234  
    Taxes, other than income taxes 1   3   4   —   — —   8   1   —   9  
    Net other operating income —   (3 ) (10 ) (9 ) — —   (22 ) —   —   (22 )
    Reclassifications and adjustments:                    
    Sundance A decommissioning cost reimbursement —   —   —   9   — —   9   —   (9 ) —  
    Adjusted net other operating income —   (3 ) (10 ) —   — —   (13 ) —   (9 ) (22 )
    Adjusted EBITDA(2) 57   95   116   28   27 (38 ) 285        
    Equity income                   2  
    Finance lease income                   5  
    Depreciation and amortization                   (143 )
    Asset impairment charges                   (20 )
    Interest income                   11  
    Interest expense                   (92 )
    Foreign exchange gain                   17  
    Loss before income taxes                   (51 )

    (1)  The Skookumchuck wind facility has been included on a proportionate basis in the Wind and Solar segment.
    (2)  Adjusted EBITDA is not defined and has no standardized meaning under IFRS. Refer to the Non-IFRS financial measures and other specified financial measures section in this earnings release and may not be comparable to similar measures presented by other issuers.

    The following table reflects adjusted EBITDA by segment and provides reconciliation to loss before income taxes for the three months ended Dec. 31, 2023:

    Three months ended Dec. 31, 2023
    $ millions    		 Hydro   Wind &
    Solar    (1)    		   Gas   Energy
    Transition    		 Energy
    Marketing    		   Corporate   Total   Equity
    accounted
    investments    (1)    		   Reclass
    adjustments    		   IFRS
    financials    		  
    Revenues 77   94   246   175 39   —   631   (7 ) —   624  
    Reclassifications and adjustments:                  
    Unrealized mark-to-market (gain) loss (2 ) 20   53   7 (19 ) —   59   —   (59 ) —  
    Realized gain on closed exchange positions —   —   23   — 4   —   27   —   (27 ) —  
    Decrease in finance lease receivable —   —   15   — —   —   15   —   (15 ) —  
    Finance lease income —   —   2   — —   —   2   —   (2 ) —  
    Unrealized foreign exchange gain on commodity —   —   1   — —   —   1   —   (1 ) —  
    Adjusted revenues 75   114   340   182 24   —   735   (7 ) (104 ) 624  
    Fuel and purchased power 5   8   127   138 —   —   278   —   —   278  
    Reclassifications and adjustments:                  
    Australian interest income —   —   (1 ) — —   —   (1 ) —   1   —  
    Adjusted fuel and purchased power 5   8   126   138 —   —   277   —   1   278  
    Carbon compliance —   —   27   — —   —   27   —   —   27  
    Gross margin 70   106   187   44 24   —   431   (7 ) (105 ) 319  
    OM&A 13   25   56   18 10   29   151   (1 ) —   150  
    Taxes, other than income taxes 1   1   —   — —   1   3   —   —   3  
    Net other operating income —   (3 ) (10 ) — —   —   (13 ) —   —   (13 )
    Adjusted net other operating income —   (2 ) (10 ) — —   —   (12 ) —   (1 ) (13 )
    Adjusted EBITDA(2) 56   82   141   26 14   (30 ) 289        
    Equity income                   3  
    Finance lease income                   2  
    Depreciation and amortization                   (132 )
    Asset impairment charges                   (26 )
    Interest income                   12  
    Interest expense                   (66 )
    Foreign exchange loss                   (7 )
    Loss before income taxes                   (35 )

    (1)  The Skookumchuck wind facility has been included on a proportionate basis in the Wind and Solar segment.
    (2)  Adjusted EBITDA is not defined and has no standardized meaning under IFRS. Refer to the Non-IFRS financial measures and other specified financial measures section in this earnings release and may not be comparable to similar measures presented by other issuers.

    The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the year ended Dec. 31, 2024:

    Year ended Dec. 31, 2024
    $ millions    		 Hydro Wind &
    Solar    (1)    		   Gas   Energy
    Transition    		   Energy
    Marketing    		   Corporate   Total   Equity
    accounted
    investments    (1)    		   Reclass
    adjustments    		   IFRS
    financials    		  
    Revenues 409   357   1,350   616   168   (34 ) 2,866   (21 ) —   2,845  
    Reclassifications and adjustments:                  
    Unrealized mark-to-market (gain) loss 1   84   (60 ) (36 ) 14   —   3   —   (3 ) —  
    Realized gain (loss) on closed exchange positions —   —   7   2   (15 ) —   (6 ) —   6   —  
    Decrease in finance lease receivable —   2   19   —   —   —   21   —   (21 ) —  
    Finance lease income —   6   8   —   —   —   14   —   (14 ) —  
    Revenues from Planned Divestitures —   —   (1 ) —   —   —   (1 ) —   1   —  
    Brazeau penalty (20 ) —   —   —   —   —   (20 ) —   20   —  
    Unrealized foreign exchange loss on commodity —   —   (2 ) —   —   —   (2 ) —   2   —  
    Adjusted revenues 390   449   1,321   582   167   (34 ) 2,875   (21 ) (9 ) 2,845  
    Fuel and purchased power 16   30   475   418   —   —   939   —   —   939  
    Reclassifications and adjustments:                  
    Fuel and purchased power related to Planned Divestitures —   —   (1 ) —   —   —   (1 ) —   1   —  
    Australian interest income —   —   (4 ) —   —   —   (4 ) —   4   —  
    Adjusted fuel and purchased power 16   30   470   418   —   —   934   —   5   939  
    Carbon compliance —   —   145   1   —   (34 ) 112   —   —   112  
    Gross margin 374   419   706   163   167   —   1,829   (21 ) (14 ) 1,794  
    OM&A 86   97   198   69   36   173   659   (4 ) —   655  
    Reclassifications and adjustments:                    
    Brazeau penalty (31 ) —   —   —   —   —   (31 ) —   31   —  
    ERP implementation costs —   —   —   —   —   (14 ) (14 ) —   14   —  
    Acquisition-related transaction and restructuring costs —   —   —   —   —   (24 ) (24 )   24   —  
    Adjusted OM&A 55   97   198   69   36   135   590   (4 ) 69   655  
    Taxes, other than income taxes 3   16   13   3   —   1   36   —   —   36  
    Net other operating income —   (10 ) (40 ) (9 ) —   —   (59 ) —   —   (59 )
    Reclassifications and adjustments:                    
    Sundance A decommissioning cost reimbursement —   —   —   9   —   —   9   —   (9 ) —  
    Adjusted net other operating income —   (10 ) (40 ) —   —   —   (50 ) —   (9 ) (59 )
    Adjusted EBITDA(2) 316   316   535   91   131   (136 ) 1,253        
    Equity income                   5  
    Finance lease income                   14  
    Depreciation and amortization                   (531 )
    Asset impairment charges                   (46 )
    Interest income                   30  
    Interest expense                   (324 )
    Foreign exchange gain                   5  
    Gain on sale of assets and other                   4  
    Earnings before income taxes                   319  

    (1)  The Skookumchuck wind facility has been included on a proportionate basis in the Wind and Solar segment.
    (2)  Adjusted EBITDA is not defined and has no standardized meaning under IFRS. Refer to the Non-IFRS financial measures and other specified financial measures section in this earnings release and may not be comparable to similar measures presented by other issuers.

    The following table reflects adjusted EBITDA by segment and provides reconciliation to earnings before income taxes for the year ended Dec. 31, 2023:

    Year ended Dec. 31, 2023
    $ millions    		 Hydro   Wind &
    Solar    (1)    		   Gas   Energy
    Transition    		   Energy
    Marketing    		   Corporate   Total   Equity
    accounted
    investments    (1)    		   Reclass
    adjustments    		   IFRS
    financials    		  
    Revenues 533   357   1,514   751   220   1   3,376   (21 ) —   3,355  
    Reclassifications and adjustments:                  
    Unrealized mark-to-market loss (4 ) 16   (67 ) (5 ) 23   —   (37 ) —   37   —  
    Realized gain (loss) on closed exchange positions —   —   10   —   (91 ) —   (81 ) —   81   —  
    Decrease in finance lease receivable —   —   55   —   —   —   55   —   (55 ) —  
    Finance lease income —   —   12   —   —   —   12   —   (12 ) —  
    Unrealized foreign exchange gain on commodity —   —   1   —   —   —   1   —   (1 ) —  
    Adjusted revenues 529   373   1,525   746   152   1   3,326   (21 ) 50   3,355  
    Fuel and purchased power 19   30   453   557   —   1   1,060   —   —   1,060  
    Reclassifications and adjustments:                  
    Australian interest income —   —   (4 ) —   —   —   (4 ) —   4   —  
    Adjusted fuel and purchased power 19   30   449   557   —   1   1,056   —   4   1,060  
    Carbon compliance —   —   112   —   —   —   112   —   —   112  
    Gross margin 510   343   964   189   152   —   2,158   (21 ) 46   2,183  
    OM&A 48   80   192   64   43   115   542   (3 ) —   539  
    Taxes, other than income taxes 3   12   11   3   —   1   30   (1 ) —   29  
    Net other operating income —   (7 ) (40 ) —   —   —   (47 )   —   (47 )
    Reclassifications and adjustments:                  
    Insurance recovery —   1   —   —   —   —   1   —   (1 ) —  
    Adjusted net other operating income —   (6 ) (40 ) —   —   —   (46 ) —   (1 ) (47 )
    Adjusted EBITDA(2) 459   257   801   122   109   (116 ) 1,632        
    Equity income                   4  
    Finance lease income                   12  
    Depreciation and amortization                   (621 )
    Asset impairment reversals                   48  
    Interest income                   59  
    Interest expense                   (281 )
    Foreign exchange gain                   (7 )
    Gain on sale of assets and other                   4  
    Earnings before income taxes                   880  

    (1)  The Skookumchuck wind facility has been included on a proportionate basis in the Wind and Solar segment.
    (2)  Adjusted EBITDA is not defined and has no standardized meaning under IFRS. Refer to the Non-IFRS financial measures and other specified financial measures section in this earnings release and may not be comparable to similar measures presented by other issuers.


    Reconciliation of cash flow from operations to FFO and FCF

    The table below reconciles our cash flow from operating activities to our FFO and FCF:

      Three Months Ended Year Ended
    $ millions, unless otherwise stated Dec. 31, 2024   Dec. 31, 2023   Dec. 31, 2024   Dec. 31, 2023  
    Cash flow from operating activities(1) 215   310   796   1,464  
    Change in non-cash operating working capital balances (97 ) (135 ) (38 ) (124 )
    Cash flow from operations before changes in working capital 118   175   758   1,340  
    Adjustments        
    Share of adjusted FFO from joint venture(1) 4   3   8   8  
    Decrease in finance lease receivable 6   15   21   55  
    Clean energy transition provisions and adjustments(2) —   4   —   11  
    Sundance A decommissioning cost reimbursement (9 ) —   (9 ) —  
    Realized gain (loss) on closed exchanged positions 2   27   (6 ) (81 )
    Acquisition-related transaction and restructuring costs 11   —   19   —  
    Other(3) 5   5   19   18  
    FFO(4) 137   229   810   1,351  
    Deduct:        
    Sustaining capital(1) (67 ) (74 ) (142 ) (174 )
    Productivity capital (1 ) (1 ) (1 ) (3 )
    Dividends paid on preferred shares (13 ) (12 ) (52 ) (51 )
    Distributions paid to subsidiaries’ non-controlling interests (6 ) (19 ) (40 ) (223 )
    Principal payments on lease liabilities (3 ) (2 ) (6 ) (10 )
    Other 1   —   —   —  
    FCF(4) 48   121   569   890  
    Weighted average number of common shares outstanding in the period 298   308   302   276  
    FFO per share(4) 0.46   0.74   2.68   4.89  
    FCF per share(4) 0.16   0.39   1.88   3.22  

    (1)  Includes our share of amounts for the Skookumchuck wind facility, an equity-accounted joint venture.
    (2)  2023 includes amounts related to onerous contracts recognized in 2021 and a voluntary contribution to the US Defined Benefit Pension Plan for the Centralia thermal facility.
    (3)  Other consists of production tax credits, which is a reduction to tax equity debt, less distributions from an equity-accounted joint venture.
    (4)  These items are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. Refer to the Non-IFRS Measures section in this earnings release .

    The table below provides a reconciliation of our adjusted EBITDA to our FFO and FCF:

      Three Months Ended Year Ended
    $ millions, unless otherwise stated Dec. 31, 2024   Dec. 31, 2023   Dec. 31, 2024   Dec. 31, 2023  
    Adjusted EBITDA(1)(4) 285   289   1,253   1,632  
    Provisions 2   (1 ) 10   (1 )
    Net interest expense(2) (64 ) (41 ) (231 ) (164 )
    Current income tax recovery (expense) (20 ) 5   (143 ) (50 )
    Realized foreign exchange gain (loss) (20 ) 9   (27 ) (4 )
    Decommissioning and restoration costs settled (12 ) (15 ) (41 ) (37 )
    Other non-cash items (34 ) (17 ) (11 ) (25 )
    FFO(3)(4) 137   229   810   1,351  
    Deduct:        
    Sustaining capital(4) (67 ) (74 ) (142 ) (174 )
    Productivity capital (1 ) (1 ) (1 ) (3 )
    Dividends paid on preferred shares (13 ) (12 ) (52 ) (51 )
    Distributions paid to subsidiaries’ non-controlling interests (6 ) (19 ) (40 ) (223 )
    Principal payments on lease liabilities (3 ) (2 ) (6 ) (10 )
    Other 1   —   —   —  
    FCF(4) 48   121   569   890  

    (1)  Adjusted EBITDA is defined in the Additional IFRS Measures and Non-IFRS Measures of this earnings release and reconciled to earnings (loss) before income taxes above.
    (2) Net interest expense includes interest expense less interest income and excludes non-cash items like financing amortization and accretion.
    (3)  These items are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. FFO and FCF are defined in the Non-IFRS financial measures and other specified financial measures section of in this earnings release and reconciled to cash flow from operating activities above.
    (4)  Includes our share of amounts for Skookumchuck wind facility, an equity-accounted joint venture.

    TransAlta is in the process of filing its Annual Information Form, Audited Consolidated Financial Statements and accompanying notes, as well as the associated Management’s Discussion & Analysis (MD&A). These documents will be available today on the Investors section of TransAlta’s website at www.transalta.com or through SEDAR at www.sedarplus.ca.

    TransAlta will also be filing its Form 40-F with the US Securities and Exchange Commission. The form will be available through their website at www.sec.gov. Paper copies of all documents are available to shareholders free of charge upon request.

    About TransAlta Corporation:

    TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Western Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70 per cent reduction in GHG emissions or 22.7 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

    For more information about TransAlta, visit our web site at transalta.com.

    Cautionary Statement Regarding Forward-Looking Information

    This news release includes “forward-looking information,” within the meaning of applicable Canadian securities laws, and “forward-looking statements,” within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking statements”). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as “may”, “will”, “can”, “could”, “would”, “shall”, “believe”, “expect”, “estimate”, “anticipate”, “intend”, “plan”, “forecast”, “foresee”, “potential”, “enable”, “continue” or other comparable terminology. These statements are not guarantees of our future performance, events or results and are subject to risks, uncertainties and other important factors that could cause our actual performance, events or results to be materially different from those set out in or implied by the forward-looking statements. In particular, this news release contains forward-looking statements about the following, among other things: the strategic objectives of the Company and that the execution of the Company’s strategy will realize value for shareholders; our capital allocation and financing strategy; our sustainability goals and targets, including those in our 2024 Sustainability Report; our 2025 Outlook; our financial and operational performance, including our hedge position; optimizing and diversifying our existing assets; the increasingly contracted nature of our fleet; expectations about strategies for growth and expansion, including opportunities for Centralia redevelopment, and data centre opportunities; expected costs and schedules for planned projects; expected regulatory processes and outcomes, including in relation to the Alberta restructured energy market; the power generation industry and the supply and demand of electricity; the cyclicality of our business; expected outcomes with respect to legal proceedings; the expected impact of future tax and accounting changes; and expected industry, market and economic conditions.

    The forward-looking statements contained in this news release are based on many assumptions including, but not limited to, the following: no significant changes to applicable laws and regulations; no unexpected delays in obtaining required regulatory approvals; no material adverse impacts to investment and credit markets; no significant changes to power price and hedging assumptions; no significant changes to gas commodity price assumptions and transport costs; no significant changes to interest rates; no significant changes to the demand and growth of renewables generation; no significant changes to the integrity and reliability of our facilities; no significant changes to the Company’s debt and credit ratings; no unforeseen changes to economic and market conditions; and no significant event occurring outside the ordinary course of business.

    These assumptions are based on information currently available to TransAlta, including information obtained from third-party sources. Actual results may differ materially from those predicted. Factors that may adversely impact what is expressed or implied by forward-looking statements contained in this news release include, but are not limited to: fluctuations in power prices; changes in supply and demand for electricity; our ability to contract our electricity generation for prices that will provide expected returns; our ability to replace contracts as they expire; risks associated with development projects and acquisitions; any difficulty raising needed capital in the future on reasonable terms or at all; our ability to achieve our targets relating to ESG; long-term commitments on gas transportation capacity that may not be fully utilized over time; changes to the legislative, regulatory and political environments; environmental requirements and changes in, or liabilities under, these requirements; operational risks involving our facilities, including unplanned outages and equipment failure; disruptions in the transmission and distribution of electricity; reductions in production; impairments and/or writedowns of assets; adverse impacts on our information technology systems and our internal control systems, including increased cybersecurity threats; commodity risk management and energy trading risks; reduced labour availability and ability to continue to staff our operations and facilities; disruptions to our supply chains; climate-change related risks; reductions to our generating units’ relative efficiency or capacity factors; general economic risks, including deterioration of equity and debt markets, increasing interest rates or rising inflation; general domestic and international economic and political developments, including potential trade tariffs; industry risk and competition; counterparty credit risk; inadequacy or unavailability of insurance coverage; increases in the Company’s income taxes and any risk of reassessments; legal, regulatory and contractual disputes and proceedings involving the Company; reliance on key personnel; and labour relations matters.

    The foregoing risk factors, among others, are described in further detail under the heading “Governance and Risk Management” in the MD&A, which section is incorporated by reference herein.

    Readers are urged to consider these factors carefully when evaluating the forward-looking statements and are cautioned not to place undue reliance on them. The forward-looking statements included in this news release are made only as of the date hereof and we do not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise, except as required by applicable laws. The purpose of the financial outlooks contained herein is to give the reader information about management’s current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes.

    Note: All financial figures are in Canadian dollars unless otherwise indicated.

    For more information:

    Investor Inquiries: Media Inquiries:
    Phone: 1-800-387-3598 in Canada and US Phone: 1-855-255-9184
    Email: investor_relations@transalta.com Email: ta_media_relations@transalta.com

    The MIL Network –

  • MIL-OSI Europe: Written question – Including Mexican drug cartels on the EU list of terrorist organisations – E-000631/2025

    Source: European Parliament

    Question for written answer  E-000631/2025
    to the Council
    Rule 144
    Jorge Martín Frías (PfE)

    One of the first measures taken by the incoming President of the United States, Donald Trump, was to designate Mexican drug cartels as ‘foreign terrorist organisations’[1] in order to be able to allocate the necessary resources to the war on drugs.

    However, at the end of January, the Council renewed the EU list of terrorist persons, groups and entities[2] without including the Mexican drug cartels as the Trump administration had done.

    As this Member has warned in previous questions (E-001790/2024[3], E-002382/2024[4] and E-002686/2024/rev.1[5]), the complicity of Claudia Sheinbaum’s government with drug trafficking organisations – with the approval of the botched judicial reform or with an unambitious ‘zero impunity’ security strategy, for instance – is making life easy for these organisations and ensuring their impunity in Mexico.

    In light of the above:

    • 1.Will the Council include Mexican cartels on the list as part of the forthcoming review of Common Position 2001/931/CFSP of 27 December 2001 on the application of specific measures to combat terrorism?
    • 2.Will the Council attempt to coordinate a security strategy with the United States so as to jointly combat drug trafficking?

    Submitted: 11.2.2025

    • [1] THE WHITE HOUSE – Designating Cartels And Other Organizations As Foreign Terrorist Organizations And Specially Designated Global Terrorists – EXECUTIVE ORDER – 20 January 2025.
    • [2] Council Decision (CFSP) 2025/207 of 30 January 2025 updating the list of persons, groups and entities covered by Common Position 2001/931/CFSP on the application of specific measures to combat terrorism, and repealing Decision (CFSP) 2024/2056.
    • [3] https://www.europarl.europa.eu/doceo/document/E-10-2024-001790_ES.html.
    • [4] https://www.europarl.europa.eu/doceo/document/E-10-2024-002382_ES.html.
    • [5] https://www.europarl.europa.eu/doceo/document/E-10-2024-002686_ES.html.
    Last updated: 20 February 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Latest news – Meeting of Wednesday 12 March 2025, Strasbourg – Delegation for relations with the Mashreq countries

    Source: European Parliament

    The Delegation will hold an exchange of views on Lebanon’s political priorities following the election of President Joseph Aoun on 9 January 2025 with:

    • H.E. Mr Fadi HAJALI, Ambassador of Lebanon to the EU
    • Ambassador Sandra DE WAELE, Head of the EU Delegation in Lebanon

    MIL OSI Europe News –

  • MIL-OSI Europe: Commission welcomes political agreement on the €1.9 billion Reform and Growth Facility for Moldova

    Source: EuroStat – European Statistics

    European Commission Press release Brussels, 20 Feb 2025 The Commission welcomes the political agreement reached last night between the European Parliament and the Council of the European Union on the Regulation to establish a Reform and Growth Facility for Moldova

    MIL OSI Europe News –

  • MIL-OSI Video: New Development Actors for the 21st Century | World Economic Forum Annual Meeting 2025

    Source: World Economic Forum (video statements)

    The global aid and development landscape is increasingly positioning the private sector at the forefront of a new approach to development. With the impact-investing market now exceeding $1 trillion, there is a growing opportunity for investment capital to reach new markets.

    Who is driving this new vision for development to create market-driven, social and economic progress in frontier markets?

    Speakers: Ernesto Torres Cantu, Mirek Dušek, Hassan Sheikh Mohamud, Anna Bjerde, Badr Jafar

    The 55th Annual Meeting of the World Economic Forum will provide a crucial space to focus on the fundamental principles driving trust, including transparency, consistency and accountability.

    This Annual Meeting will welcome over 100 governments, all major international organizations, 1000 Forum’s Partners, as well as civil society leaders, experts, youth representatives, social entrepreneurs, and news outlets.

    The World Economic Forum is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas. We believe that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change.

    World Economic Forum Website ► http://www.weforum.org/
    Facebook ► https://www.facebook.com/worldeconomicforum/
    YouTube ► https://www.youtube.com/wef
    Instagram ► https://www.instagram.com/worldeconomicforum/
    X ► https://twitter.com/wef
    LinkedIn ► https://www.linkedin.com/company/world-economic-forum
    TikTok ► https://www.tiktok.com/@worldeconomicforum
    Flipboard ► https://flipboard.com/@WEF

    #Davos2025 #WorldEconomicForum #wef25

    https://www.youtube.com/watch?v=AHlv5rfMhkI

    MIL OSI Video –

  • MIL-OSI United Kingdom: Chair and two Trustees reappointed to Theatres Trust board

    Source: United Kingdom – Executive Government & Departments

    The Secretary of State has reappointed Dave Moutrey as Chair, and James Dacre and Stephanie Hall as Trustees of Theatres Trust for a second term of 3 years.

    Dave Moutrey

    Appointed from 21 February 2025 to February 2028

    Dave is responsible for leading the creation and delivery of Manchester City Council’s cultural and creative industries policy and strategy, working closely with the city’s cultural and creative sectors on joint initiatives. He was appointed to this role after a 6-year part-time secondment to the Council as Director of Culture. 

    Until March 2024, he was Director and Chief Executive of HOME, a purpose-built multi-art venue that opened in May 2015. He conceived and led the merger of Cornerhouse and Library Theatre Company to create HOME, along with the £25m capital project for the building, which has attracted almost 1 million visits per year since opening. HOME includes 5 cinema screens, education spaces, digital production and broadcast facilities, a 500-seat theatre, 150-seat flexible theatre, a large gallery, café bar, restaurant, offices, and other spaces consistent with a production centre. It provides opportunities for artists and audiences to create work together, as well as a social and cultural hub. Before HOME, Dave was Director and CEO of Cornerhouse from 1998, having established and led the regional arts marketing agency Arts About Manchester. 

    Dave was awarded an OBE for services to culture in 2022 and a Doctor of Arts honoris causa by the University of Salford in 2018. He is a member of the Chartered Management Institute and the British Academy of Film and Television Arts. He was previously an advisor to the British Council and still holds several non-executive roles on not-for-profit boards.

    James Dacre

    Appointed from 21 February 2025 to 20 February 2028

    James Dacre is a Director and Creative Producer who has directed, produced and toured work to several hundred theatres, opera houses and festivals across the UK and abroad, with his productions winning Olivier, The Stage and UK Theatre Awards. He recently founded Living Productions which produces theatre, film, concerts and festivals. James was Artistic Director of Royal & Derngate Theatres from 2013-2023 and previously held roles as Associate Director at the New Vic Theatre, Theatre503 and the National Youth Theatre. He is Chair of the Board of Theatre503, a Board Director of Spirit of 2012, a Trustee for Talawa Theatre Company and a Franco-British Young Leader. James Dacre became a Trustee of The Theatres Trust on 21 February 2022. 

    Stephanie Hall

    Appointed from 21 February 2025 to 20 February 2028

    Stephanie Hall is a barrister specialising in town and country planning at Kings Chambers. She lives with her family near Leeds but works across England and Wales. Stephanie represents both local authorities and developers at planning appeals and in the Courts. She has particular experience of large schemes and major infrastructure projects, sometimes involving theatres and very often involving works to or in the setting of listed buildings. Stephanie appears in the list of top-rated planning junior barristers, is a member of the Planning and Environment Bar Association, the Compulsory Purchase Association, the Parliamentary Bar Mess and the National Infrastructure Planning Association. Stephanie Hall became a Trustee on 21 February 2022.

    Remuneration and Governance Code

    The Chair and Trustees of the Theatres Trust are not remunerated. This appointment has been made in accordance with the Cabinet Office’s Governance Code on Public Appointments. The appointments process is regulated by the Commissioner for Public Appointments. Under the Code, any significant political activity undertaken by an appointee in the last five years must be declared. This is defined as including holding office, public speaking, making a recordable donation, or candidature for election. Dave Moutrey, James Dacre and Stephanie Hall have not declared any significant political activity.

    Updates to this page

    Published 20 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI: Donegal Group Inc. Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    MARIETTA, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2024.

    Significant items for fourth quarter of 2024 (all comparisons to fourth quarter of 2023):

    • Net premiums earned increased 4.6% to $236.6 million
    • Combined ratio of 92.9%, compared to 106.8%
    • Net income of $24.0 million, or 70 cents per diluted Class A share, compared to net loss of $2.0 million, or 6 cents per Class A share
    • Net investment gains (after tax) of $0.2 million, or 1 cent per diluted Class A share, compared to $1.8 million, or 5 cents per Class A share, are included in net income (loss)

    Significant items for full year of 2024 (all comparisons to full year of 2023):

    • Net premiums earned increased 6.2% to $936.7 million
    • Combined ratio of 98.6%, compared to 104.4%
    • Net income of $50.9 million, or $1.53 per diluted Class A share, compared to $4.4 million, or 14 cents per diluted Class A share
    • Net investment gains (after tax) of $3.9 million, or 12 cents per diluted Class A share, compared to $2.5 million, or 8 cents per diluted Class A share, are included in net income
    • Book value per share of $15.36 at December 31, 2024, compared to $14.39 at year-end 2023

    Financial Summary

      Three Months Ended December 31,     Year Ended December 31,  
      2024   2023   % Change     2024   2023   % Change  
      (dollars in thousands, except per share amounts)    
                               
    Income Statement Data                      
    Net premiums earned $   236,635   $   226,185   4.6 %   $   936,651   $   882,071   6.2 %
    Investment income, net 12,050   10,710   12.5     44,918   40,853   10.0  
    Net investment gains 256   2,243   -88.6     4,981   3,173   57.0  
    Total revenues 249,954   239,468   4.4     989,605   927,338   6.7  
    Net income (loss) 24,003   (1,970)   NM2     50,862   4,426   NM  
    Non-GAAP operating income (loss)1 23,801   (3,742)   NM     46,927   1,919   NM  
    Annualized return on average equity 18.1%   -1.7%   19.8 pts     9.9%   0.9%   9.0 pts  
                               
    Per Share Data                        
    Net income (loss) – Class A (diluted) $         0.70   $        (0.06)   NM     $         1.53   $         0.14   NM  
    Net income (loss) – Class B 0.64   (0.06)   NM     1.38   0.11   NM  
    Non-GAAP operating income (loss) – Class A (diluted) 0.69   (0.11)   NM     1.41   0.06   NM  
    Non-GAAP operating income (loss) – Class B 0.63   (0.11)   NM     1.27   0.04   NM  
    Book value 15.36   14.39   6.7 %   15.36   14.39   6.7 %
                               

    ¹The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).
    ²Not meaningful.

    Management Commentary

    Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.

    “For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity. Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.

    “We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations. We remain committed to refining the efficiency of our insurance operations, leveraging our substantial investments in technology, data and analytics, to maintain a sustainable expense ratio.”

    Mr. Burke concluded, “As the insurance industry landscape continues to evolve, our dedicated team will maintain focus on the effective execution of the strategies we believe will lead to successful achievement of our long-term objectives. We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”

    Insurance Operations

    Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

      Three Months Ended December 31,     Year Ended December 31,  
      2024   2023   % Change     2024   2023   % Change  
      (dollars in thousands)    
                               
    Net Premiums Earned                        
    Commercial lines $    136,701   $    133,602   2.3 %   $    539,683   $    533,029   1.2 %
    Personal lines        99,934          92,583   7.9          396,968        349,042   13.7  
    Total net premiums earned $    236,635   $    226,185   4.6 %   $    936,651   $    882,071   6.2 %
                               
    Net Premiums Written                      
    Commercial lines:                        
    Automobile $      42,922   $      39,888   7.6 %   $    184,989   $    174,741   5.9 %
    Workers’ compensation        20,934          22,283   -6.1          103,533        107,598   -3.8  
    Commercial multi-peril        50,431          48,010   5.0          213,959        195,632   9.4  
    Other          9,790          10,544   -7.2            45,439          50,458   -9.9  
    Total commercial lines      124,077        120,725   2.8          547,920        528,429   3.7  
    Personal lines:                        
    Automobile        54,078          54,609   -1.0          243,036        215,957   12.5  
    Homeowners        30,958          34,653   -10.7          140,613        139,688   0.7  
    Other          2,329            2,706   -13.9            10,712          11,623   -7.8  
    Total personal lines        87,365          91,968   -5.0          394,361        367,268   7.4  
    Total net premiums written $    211,442   $    212,693   -0.6%     $    942,281   $    895,697   5.2 %
                               


    Net Premiums Written

    The 0.6% decrease in net premiums written¹ for the fourth quarter of 2024 compared to the fourth quarter of 2023, as shown in the table above, represents the combination of 2.8% growth in commercial lines net premiums written and a 5.0% decrease in personal lines net premiums written. The $1.3 million decrease in net premiums written for the fourth quarter of 2024 compared to the fourth quarter of 2023 included:

    • Commercial Lines: $3.3 million increase that we attribute primarily to solid premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in classes of business we have targeted for profit improvement.
    • Personal Lines: $4.6 million decrease that we attribute primarily to planned attrition due to non-renewal actions and lower new business writings, offset partially by a continuation of renewal premium rate increases and solid policy retention.

    The $46.6 million increase in net premiums written for the full year of 2024 compared to the full year of 2023 included:

    • Commercial Lines: $19.5 million increase that we attribute primarily to strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states we exited or classes of business we have targeted for profit improvement.
    • Personal Lines: $27.1 million increase that we attribute primarily to a continuation of renewal premium rate increases and solid policy retention, offset partially by planned attrition due to non-renewal actions and lower new business writings.

    Underwriting Performance

    We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three months and full years ended December 31, 2024 and 2023:

      Three Months Ended     Year Ended  
      December 31,     December 31,  
      2024     2023     2024     2023  
                           
    GAAP Combined Ratios (Total Lines)                
    Loss ratio – core losses 52.3 %   61.8 %   54.0 %   57.5 %
    Loss ratio – weather-related losses 3.3     5.9     7.2     8.3  
    Loss ratio – large fire losses 4.0     4.8     4.9     5.2  
    Loss ratio – net prior-year reserve development -0.2     -0.4     -1.6     -1.9  
    Loss ratio 59.8     72.1     64.5     69.1  
    Expense ratio 32.8     34.1     33.7     34.7  
    Dividend ratio 0.3     0.6     0.4     0.6  
    Combined ratio 92.9 %   106.8 %   98.6 %   104.4 %
                           
    Statutory Combined Ratios                  
    Commercial lines:                    
    Automobile 115.7 %   104.8 %   102.6 %   97.3 %
    Workers’ compensation 105.6     107.9     104.4     96.6  
    Commercial multi-peril 79.4     107.8     95.0     112.3  
    Other 84.7     95.0     80.0     85.5  
    Total commercial lines 97.3     105.8     98.2     101.6  
    Personal lines:                    
    Automobile 96.5     119.7     97.4     109.7  
    Homeowners 76.2     101.3     99.6     108.6  
    Other 106.3     59.2     99.5     75.8  
    Total personal lines 89.5     111.1     98.3     108.2  
    Total lines 94.0 %   107.8 %   98.3 %   104.2 %
                           

     
    Loss Ratio – Fourth Quarter

    For the fourth quarter of 2024, the loss ratio decreased to 59.8%, compared to 72.1% for the fourth quarter of 2023. The core loss ratio, which excludes weather-related losses, large fire losses and net development of reserves for losses incurred in prior accident years, was 52.3% for the fourth quarter of 2024, which improved significantly compared to 61.8% for the fourth quarter of 2023. For the commercial lines segment, the core loss ratio of 55.2% for the fourth quarter of 2024 improved from 59.6% for the fourth quarter of 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 48.4% for the fourth quarter of 2024 decreased significantly from 65.1% for the fourth quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

    Weather-related losses of $7.7 million, or 3.3 percentage points of the loss ratio, for the fourth quarter of 2024 decreased from $13.4 million, or 5.9 percentage points of the loss ratio, for the fourth quarter of 2023. Our insurance subsidiaries did not incur significant losses from any single weather event during the fourth quarters of 2024 or 2023. The impact of weather-related loss activity to the loss ratio for the fourth quarter of 2024 was lower than our previous five-year average of 5.2 percentage points for fourth quarter weather-related losses.

    Large fire losses, which we define as individual fire losses in excess of $50,000, were $9.5 million, or 4.0 percentage points of the loss ratio, for the fourth quarter of 2024, compared to $10.8 million, or 4.8 percentage points of the loss ratio, for the fourth quarter of 2023. The modest decrease primarily reflected lower average severity in homeowner fire losses.

    Net development of reserves for losses incurred in prior accident years had virtually no impact to the loss ratio for the fourth quarter of 2024 or 2023. For the fourth quarter of 2024, our insurance subsidiaries experienced unfavorable development primarily in personal automobile and commercial automobile losses that was offset by favorable development in commercial multi-peril losses and other lines of business. For the fourth quarter of 2023, our insurance subsidiaries experienced favorable development in personal automobile, workers’ compensation, homeowners and commercial automobile losses, offset partially by unfavorable development in commercial multi-peril and other commercial losses.

    Loss Ratio – Full Year

    For the full year of 2024, the loss ratio decreased to 64.5%, compared to 69.1% for the full year of 2023. The 2024 core loss ratio decreased by 3.5 percentage points to 54.0% from 57.5% for 2023. For the commercial lines segment, the core loss ratio of 54.4% for 2024 improved from 56.5% for 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 53.5% for 2024 decreased from 59.1% in 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

    Weather-related losses for the full year of 2024 were $67.7 million, or 7.2 percentage points of the loss ratio, compared to $72.9 million, or 8.3 percentage points of the loss ratio, for the full year of 2023. The loss ratio impact of weather-related losses for the full year of 2024 was in line with the previous five-year average of 7.0 percentage points of the loss ratio.

    Large fire losses were $45.8 million, or 4.9 percentage points of the loss ratio, for the full year of 2024, relatively in line with $45.4 million, or 5.2 percentage points of the loss ratio, for the full year of 2023.

    Net favorable development of reserves for losses incurred in prior accident years of $15.0 million reduced the loss ratio for the full year of 2024 by 1.6 percentage points. For the full year of 2024, our insurance subsidiaries experienced favorable development in losses primarily in the commercial multi-peril, personal automobile and homeowners lines of business, offset partially by unfavorable development in the workers’ compensation and commercial automobile lines of business. Net favorable development of reserves for losses incurred in prior accident years of $16.7 million reduced the loss ratio for the full year of 2023 by 1.9 percentage points. For the full year of 2023, our insurance subsidiaries experienced favorable development in losses primarily in the commercial automobile, personal automobile, workers’ compensation and homeowners lines of business.

    Expense Ratio

    The expense ratio was 32.8% for the fourth quarter of 2024, compared to 34.1% for the fourth quarter of 2023. The expense ratio was 33.7% for the full year of 2024, compared to 34.7% for the full year of 2023. The decrease in the expense ratios for the fourth quarter and full year of 2024 primarily reflected the impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. These impacts were offset partially by an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project peaked at approximately 1.3 percentage points of the expense ratio for the full year of 2024 and will subside gradually in 2025 and subsequent years.

    Investment Operations

    Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 95.6% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at December 31, 2024.

      December 31, 2024     December 31, 2023  
      Amount   %     Amount   %  
      (dollars in thousands)    
    Fixed maturities, at carrying value:                  
    U.S. Treasury securities and obligations of U.S.                  
    government corporations and agencies $    170,423   12.3 %   $    176,991   13.3 %
    Obligations of states and political subdivisions      409,560   29.5          415,280   31.3  
    Corporate securities      440,552   31.8          399,640   30.1  
    Mortgage-backed securities      304,459   22.0          278,260   21.0  
    Allowance for expected credit losses         (1,388 ) -0.1             (1,326 ) -0.1  
    Total fixed maturities   1,323,606   95.5       1,268,845   95.6  
    Equity securities, at fair value        36,808   2.7            25,903   2.0  
    Short-term investments, at cost        24,558   1.8            32,306   2.4  
    Total investments $ 1,384,972   100.0 %   $ 1,327,054   100.0 %
                       
    Average investment yield 3.3%         3.1%      
    Average tax-equivalent investment yield 3.4%         3.2%      
    Average fixed-maturity duration (years)              5.2                      4.3      
                       

    Net investment income of $12.1 million for the fourth quarter of 2024 increased 12.5% compared to $10.7 million in net investment income for the fourth quarter of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior-year fourth quarter. Net investment income of $44.9 million for the full year of 2024 increased 10.0% compared to the full year of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior year.

    Net investment gains were minimal for the fourth quarter of 2024, compared to $2.2 million for the fourth quarter of 2023. We attribute the gains to the quarterly increases in the market value of the equity securities held at the end of the respective periods.

    Net investment gains were $5.0 million for the full year of 2024, compared to $3.2 million for the full year of 2023. We attribute the gains to the change in the market value of the equity securities held at the end of the respective periods.

    Our book value per share was $15.36 at December 31, 2024, compared to $14.39 at December 31, 2023, as increases from net income and unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 were partially offset by the dividends we declared during the year.

    Definitions of Non-GAAP Financial Measures

    We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

    Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

    The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:

      Three Months Ended December 31,     Year Ended December 31,  
      2024   2023   % Change     2024   2023   % Change  
      (dollars in thousands)    
                               
    Reconciliation of Net Premiums                          
    Earned to Net Premiums Written                          
    Net premiums earned $       236,635   $     226,185   4.6 %   $     936,651   $     882,071   6.2 %
    Change in net unearned premiums          (25,193 )         (13,492 )  86.7               5,630           13,626   -58.7  
    Net premiums written $       211,442   $     212,693   -0.6 %    $     942,281   $     895,697   5.2 %
                               
                               

    The following table provides a reconciliation of net income (loss) to operating income (loss) for the periods indicated:

      Three Months Ended December 31,      Year Ended December 31,  
      2024   2023     % Change     2024   2023   % Change  
      (dollars in thousands, except per share amounts)    
                                 
    Reconciliation of Net Income (Loss)                            
    to Non-GAAP Operating Income (Loss)                            
    Net income (loss) $ 24,003   $ (1,970 )   NM     $ 50,862   $ 4,426   NM  
    Investment gains (after tax)   (202 )   (1,772 )   -88.6 %     (3,935 )   (2,507 ) 57.0 %
    Non-GAAP operating income (loss) $ 23,801   $ (3,742 )   NM     $ 46,927   $ 1,919   NM  
                                 
    Per Share Reconciliation of Net Income (Loss)                            
    to Non-GAAP Operating Income (Loss)                            
    Net income (loss) – Class A (diluted) $ 0.70   $ (0.06 )   NM     $ 1.53   $ 0.14   NM  
    Investment gains (after tax)   (0.01 )   (0.05 )   -80.0 %     (0.12 )   (0.08 ) 50.0 %
    Non-GAAP operating income (loss) – Class A $ 0.69   $ (0.11 )   NM     $ 1.41   $ 0.06   NM  
                                 
    Net income (loss) – Class B $ 0.64   $ (0.06 )   NM     $ 1.38   $ 0.11   NM  
    Investment gains (after tax)   (0.01 )   (0.05 )   -80.0 %     (0.11 )   (0.07 ) 57.1 %
    Non-GAAP operating income (loss) – Class B $ 0.63   $ (0.11 )   NM     $ 1.27   $ 0.04   NM  
                                 

    The statutory combined ratio is a standard non-GAAP measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

    • the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
    • the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
    • the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

    The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

    Dividend Information

    On December 19, 2024, we declared regular quarterly cash dividends of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which we paid on February 18, 2025 to stockholders of record as of the close of business on February 4, 2025.

    Pre-Recorded Webcast

    At approximately 8:30 am EDT on Thursday, February 20, 2025, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly and annual results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

    About the Company

    Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

    The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees.

    Safe Harbor

    We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    Investor Relations Contacts

    Karin Daly, Vice President, The Equity Group Inc.
    Phone: (212) 836-9623
    E-mail: kdaly@equityny.com

    Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
    Phone: (717) 426-1931
    E-mail: investors@donegalgroup.com

    Financial Supplement

    Donegal Group Inc.  
    Consolidated Statements of Income (Loss)  
    (unaudited; in thousands, except share data)  
             
      Quarter Ended December 31,  
      2024   2023  
             
    Net premiums earned $ 236,635   $ 226,185  
    Investment income, net of expenses 12,050   10,710  
    Net investment gains 256   2,243  
    Lease income 77   85  
    Installment payment fees 936   245  
    Total revenues 249,954   239,468  
             
    Net losses and loss expenses 141,435   163,154  
    Amortization of deferred acquisition costs 39,853   39,149  
    Other underwriting expenses 37,649   38,032  
    Policyholder dividends 826   1,225  
    Interest 269   156  
    Other expenses, net 255   233  
    Total expenses 220,287   241,949  
             
    Income (loss) before income tax expense (benefit) 29,667   (2,481 )
    Income tax expense (benefit) 5,664   (511 )
             
    Net income (loss) $ 24,003   $ (1,970 )
             
    Net income (loss) per common share:        
    Class A – basic $ 0.71   $ (0.06 )
    Class A – diluted $ 0.70   $ (0.24 )
    Class B – basic and diluted $ 0.64   $ (0.06 )
             
    Supplementary Financial Analysts’ Data        
             
    Weighted-average number of shares        
    outstanding:        
    Class A – basic 28,979,432   27,702,646  
    Class A – diluted 29,224,696   27,726,318  
    Class B – basic and diluted 5,576,775   5,576,775  
             
    Net premiums written $ 211,442   $ 212,693  
             
    Book value per common share        
    at end of period $ 15.36   $ 14.39  
             
    Donegal Group Inc.
    Consolidated Statements of Income
    (unaudited; in thousands, except share data)
           
      Year Ended December 31,
      2024   2023
           
    Net premiums earned $          936,651   $          882,071
    Investment income, net of expenses              44,918                40,853
    Net investment gains                4,981                  3,173
    Lease income                   314                     347
    Installment payment fees                2,741                     894
    Total revenues            989,605              927,338
           
    Net losses and loss expenses            604,118              609,178
    Amortization of deferred acquisition costs            160,311              154,214
    Other underwriting expenses            155,254              151,748
    Policyholder dividends                4,073                  5,313
    Interest                   946                     620
    Other expenses, net                2,564                  1,201
    Total expenses            927,266              922,274
           
    Income before income tax expense              62,339                  5,064
    Income tax expense              11,477                     638
           
    Net income $            50,862   $              4,426
           
    Net income per common share:      
    Class A – basic and diluted $                1.53   $                0.14
    Class B – basic and diluted $                1.38   $                0.11
           
    Supplementary Financial Analysts’ Data      
           
    Weighted-average number of shares      
    outstanding:      
    Class A – basic       28,155,276         27,469,250
    Class A – diluted       28,245,356         27,562,785
    Class B – basic and diluted         5,576,775           5,576,775
           
    Net premiums written $          942,281   $          895,697
           
    Book value per common share      
    at end of period $              15.36   $              14.39
           
    Donegal Group Inc.
    Consolidated Balance Sheets
    (in thousands)
               
          December 31,   December 31,
          2024   2023
          (unaudited)    
               
    ASSETS      
    Investments:      
      Fixed maturities:      
        Held to maturity, at amortized cost $ 705,714   $ 679,497
        Available for sale, at fair value 617,892   589,348
      Equity securities, at fair value 36,808   25,903
      Short-term investments, at cost 24,558   32,306
        Total investments 1,384,972   1,327,054
    Cash   52,926   23,792
    Premiums receivable 181,107   179,592
    Reinsurance receivable 420,742   441,431
    Deferred policy acquisition costs 73,347   75,043
    Prepaid reinsurance premiums 176,162   168,724
    Other assets 46,776   50,658
        Total assets $ 2,336,032   $ 2,266,294
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Liabilities:        
      Losses and loss expenses $ 1,120,985   $ 1,126,157
      Unearned premiums 612,476   599,411
      Accrued expenses 2,917   3,947
      Borrowings under lines of credit 35,000   35,000
      Other liabilities 18,878   22,034
        Total liabilities 1,790,256   1,786,549
    Stockholders’ equity:      
      Class A common stock 329   308
      Class B common stock 56   56
      Additional paid-in capital 369,680   335,694
      Accumulated other comprehensive loss (28,200)   (32,882)
      Retained earnings 245,137   217,795
      Treasury stock (41,226)   (41,226)
        Total stockholders’ equity 545,776   479,745
        Total liabilities and stockholders’ equity $ 2,336,032   $ 2,266,294
               

     

    The MIL Network –

  • MIL-OSI Video: Open Forum: Protecting People from a Changing Climate | World Economic Forum Annual Meeting 2025

    Source: World Economic Forum (video statements)

    Climate change disproportionately displaces vulnerable populations with limited resources to adapt or relocate. Rising sea levels, extreme weather and environmental degradation force millions from their homes, worsening poverty and instability.

    How can communities mitigate climate impacts and build resilience to climate change?

    Speakers: William Marshall, Fatou Jeng, M. Sanjayan, Rosmarie Wydler-Wälti, Alicia Bárcena Ibarra, Johanna Hoffman

    The 55th Annual Meeting of the World Economic Forum will provide a crucial space to focus on the fundamental principles driving trust, including transparency, consistency and accountability.

    This Annual Meeting will welcome over 100 governments, all major international organizations, 1000 Forum’s Partners, as well as civil society leaders, experts, youth representatives, social entrepreneurs, and news outlets.

    The World Economic Forum is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas. We believe that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change.

    World Economic Forum Website ► http://www.weforum.org/
    Facebook ► https://www.facebook.com/worldeconomicforum/
    YouTube ► https://www.youtube.com/wef
    Instagram ► https://www.instagram.com/worldeconomicforum/
    X ► https://twitter.com/wef
    LinkedIn ► https://www.linkedin.com/company/world-economic-forum
    TikTok ► https://www.tiktok.com/@worldeconomicforum
    Flipboard ► https://flipboard.com/@WEF

    #Davos2025 #WorldEconomicForum #wef25

    https://www.youtube.com/watch?v=edXk8TYrKqQ

    MIL OSI Video –

  • MIL-OSI Russia: Take part in the ESU Olympiad and get admitted to a master’s degree program on a budget

    Translartion. Region: Russians Fedetion –

    Source: State University of Management – Official website of the State –

    The State University of Management invites you to take part in the II Eurasian Olympiad – the international student Olympiad of the Eurasian Network University.

    SUM is a member of the Eurasian Network University and a co-organizer of the ESU Olympiad. It should be noted that it is held in Russian in an online format by participating universities with the support of the Ministry of Science and Higher Education of Russia, as well as the Eurasian Economic Commission (EEC).

    This year the Olympiad is held in the form of a personal championship in 5 profiles:

    Economics and Management; International Relations and Humanities; Information and Computer Sciences; Biomedicine and Cognitive Sciences; Engineering and Future Technologies.

    Students and graduates of Russian and foreign universities who are receiving or already have higher education (bachelor’s or specialist’s degree level) and who are citizens of member countries and observer states of the Eurasian Economic Union can take part:

    Russian Federation; Republic of Belarus; Republic of Kazakhstan; Republic of Armenia; Kyrgyz Republic; Republic of Moldova; Republic of Uzbekistan; Republic of Cuba; Islamic Republic of Iran.

    Registration and portfolio submission are available until March 16 on the official website of the Olympiad. The winners of the selection round will be invited to online interviews, which will be held from March 24 to 30.

    Winners and prize winners of the main track of the Olympiad (except for citizens of the Russian Federation) have the opportunity to enroll in budget places in master’s programs of Russian universities participating in the ESU in areas of training in accordance with the declared profile of the Olympiad.

    Citizens of the Russian Federation and other EAEU countries, including observer countries, can take part in the international track of the Olympiad, the winners and prize winners of which will qualify for benefits and preferences provided by Russian and foreign universities of the ESU for the development of student exchanges, summer schools, scientific and educational cooperation and dual degree programs.

    Subscribe to the TG channel “Our GUU” Date of publication: 02/20/2025

    II Евразийской олимпиаде – международной студенческой олимпиаде Евразийского сетевого университета….” data-yashareImage=”https://guu.ru/wp-content/uploads/7ioj804y4G4.jpg” data-yashareLink=”https://guu.ru/%d0%bf%d1%80%d0%b8%d0%bc%d0%b8-%d1%83%d1%87%d0%b0%d1%81%d1%82%d0%b8%d0%b5-%d0%b2-%d0%be%d0%bb%d0%b8%d0%bc%d0%bf%d0%b8%d0%b0%d0%b4%d0%b5-%d0%b5%d1%81%d1%83-%d0%b8-%d0%bf%d0%be%d1%81%d1%82%d1%83%d0%bf/”>

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI United Nations: Secretary-General’s video message to the 19th Plenary Session of the Parliamentary Assembly of the Mediterranean

    Source: United Nations secretary general

    Download the video: https://s3.us-east-1.amazonaws.com/downloads2.unmultimedia.org/public/video/evergreen/MSG+SG+/SG+31+Jan+25/3334563_MSG+SG+19TH+PLENARY+PAM+ROME+31+JAN+25.mp4

    Excellencies,

    Dear Parliamentarians,

    I am pleased to convey my warm greetings as you gather for this 19th Plenary Session of the Parliamentary Assembly of the Mediterranean.

    Your region is an extraordinary bridge between continents, cultures and traditions.  And your collective voice resonates far beyond Mediterranean shores.

    As a former Parliamentarian myself, I greatly value that voice in addressing shared challenges. I know you are focusing on a number of those challenges at your Plenary Session. 

    As I look around the world, four tests stand out because they represent, at best, threats that could disrupt every aspect of our agenda and, at worst, upend our very existence:

    Rampant inequalities. 

    The raging climate crisis. 

    Out-of-control technology, including Artificial Intelligence without guardrails.

    And, of course, runaway conflicts.   

    As you know so well, the Middle East is in a period of profound transformation – rife with uncertainty, but also possibility.

    It is clear the region is being re-shaped.  But it is not clear what will emerge.  

    We have a responsibility to help make sure the people of the Middle East come out with peace, dignity and a horizon of hope grounded in action. 

    In Gaza – that means – as we have long been calling for – the release of all hostages, a permanent ceasefire and irreversible progress towards a two-State solution.

    In Lebanon – we are working to consolidate the cessation of hostilities, support a government where all Lebanese will feel represented, and a State that will be able to guarantee security to all its citizens.

    And in Syria – we are stand behind an inclusive process in which the rights of all are fully respected, and that paves the way towards a united and sovereign Syria with its territorial integrity fully reestablished.

    Finally, I want to thank you for your support for the implementing the UN Pact for the Future. 

    You understand that this ties directly to advancing trust – which you have rightly defined as a strategic issue – and to shaping global governance institutions fit for the 21st century.

    Once again, thank you for your vital voice and leadership.

    Let’s keep working for peace, sustainable development and human rights for the people of the Mediterranean region and our world.

    Thank you.
     

    MIL OSI United Nations News –

  • MIL-OSI: Collateralized Reinsurance Firm, Specialty Risk RE, Completes $50 Million Institutional Funding Round

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Feb. 20, 2025 (GLOBE NEWSWIRE) — Specialty Risk Re (“SRR”), a collateral reinsurance company founded in 2024, today announced the successful closing of its $50 million institutional funding round, led by private equity firm, NMS Capital Group. This initial investment strengthens SRR’s ability to address the growing shortfall in reinsurance capacity, providing a select group of program carriers and MGAs with a reliable, well-capitalized partner at a time when market demand for stable risk transfer solutions is rising.

    With reinsurance markets facing capacity constraints and increasing volatility, SRR was established to serve as a strategic capital partner for MGAs and carriers. The firm specializes in quota share and excess-of-loss (XOL) reinsurance programs, working closely with a select group of program administrators to provide long-term, sustainable solutions for structured risk-sharing.

    SRR President and CEO, Jonathan Collura stated “This funding marks a significant milestone in our vision to establish SRR as a trusted and well-capitalized partner in the reinsurance market. Our strategy is built on disciplined risk selection, allowing us to construct a well-diversified book of business without overexposure to any single class or region. By leveraging our strong capitalization and domestic presence, SRR is positioned to be the go-to reinsurance partner in today’s risk environment.”

    As part of its underwriting strategy, SRR focuses on mid- to long-tail risks, leveraging a steady and systematic growth model to enhance long-term insurance and investment returns.

    Investor interest in SRR has been exceptionally strong, reflecting confidence in its disciplined risk selection and capital management approach.

    “The market response to our model has been highly positive,” Collura further commented. “Our investors have already committed access to additional capital as early as the end of Q1 2025, allowing us to scale in response to demand. This strategic flexibility ensures that SRR remains well-positioned to support our partners with stable, long-term capital solutions.”

    About Specialty Risk RE
    Founded in 2024, Specialty Risk RE (“SRR”) is a collateralized reinsurance firm and a dedicated capital partner, specializing in non-CAT Property and Casualty programs with established loss histories. By leveraging deep industry connections and lasting capital commitments, SRR provides customized, sustainable reinsurance solutions tailored to the needs of MGAs and carriers. With a disciplined underwriting approach and a focus on strategic partnerships, SRR delivers structured financial solutions that support long-term growth, risk diversification, and capital efficiency. For more information, visit www.specialtyriskre.com.

    Media Contact
    Jessica Starman
    media@elev8newmedia.com

    The MIL Network –

  • MIL-OSI: Targa Resources Corp. Reports Record Fourth Quarter and Full Year 2024 Financial Results, Provides Growth Outlook for 2025 and Announces Refinancing of Badlands Preferred Equity

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Feb. 20, 2025 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported fourth quarter and full year 2024 results.

    Fourth quarter 2024 net income attributable to Targa Resources Corp. was $351.0 million compared to $299.6 million for the fourth quarter of 2023. For the full year 2024, net income attributable to Targa Resources Corp. was $1,312.0 million compared to $1,345.9 million for 2023. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)(1) of $1,122.2 million for the fourth quarter of 2024 compared to $959.9 million for the fourth quarter of 2023. For the full year 2024, the Company reported adjusted EBITDA of $4,142.3 million compared to $3,530.0 million for 2023.

    Highlights

    • Record full year 2024 adjusted EBITDA of $4.1 billion, a 17% increase over 2023
    • Record full year 2024 Permian, NGL transportation, fractionation, and LPG export volumes
    • Record full year 2024 common share repurchases of $755 million
    • Record fourth quarter 2024 adjusted EBITDA of $1.1 billion
    • Record fourth quarter 2024 Permian, NGL transportation, fractionation, and LPG export volumes
    • Completed its new 275 million cubic feet per day (“MMcf/d”) Greenwood II plant in Permian Midland and its new 120 thousand barrels per day (“MBbl/d”) Train 10 fractionator in Mont Belvieu
    • Recently commenced operations of its new 275 MMcf/d Bull Moose plant and 800 MMcf/d front-end treater in Permian Delaware
    • Announced a new intra-Delaware Basin expansion of Targa’s Grand Prix NGL Pipeline (“Delaware Express”)
    • Announced a new 150 MBbl/d fractionator in Mont Belvieu (“Train 12”)
    • Announced a new expansion of LPG export capabilities at Targa’s Galena Park Marine Terminal (“GPMT LPG Export Expansion”) which will increase capacity to approximately 19 million barrels per month (“MMBbl/month”)
    • Estimates 2025 net growth capital expenditures of $2.6 billion to $2.8 billion
    • Announced the refinancing of preferred equity in Targa Badlands LLC for $1.8 billion
    • Estimates record full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion, a 15% increase over 2024(2)

    On January 16, 2025, the Company declared a quarterly cash dividend of $0.75 per common share, or $3.00 per common share on an annualized basis, for the fourth quarter of 2024. Total cash dividends of approximately $164 million were paid on February 14, 2025 on all outstanding shares of common stock to holders of record as of the close of business on January 31, 2025. Targa intends to recommend an annual common dividend of $4.00 per share for 2025 beginning with the first quarter payment in May of 2025.

    Targa repurchased 610,683 shares of its common stock during the fourth quarter of 2024 at a weighted average per share price of $176.86 for a total net cost of $108.0 million. For the year ended December 31, 2024, Targa repurchased 5,933,050 shares of its common stock at a weighted average price of $127.20 for a total net cost of $754.7 million. As of December 31, 2024, there was $1,015.4 million remaining under the Company’s Share Repurchase Programs.

    Fourth Quarter 2024 – Sequential Quarter over Quarter Commentary

    Targa reported fourth quarter adjusted EBITDA of $1,122.2 million, representing a 5 percent increase compared to the third quarter of 2024. The sequential increase in adjusted EBITDA was attributable to higher volumes across Targa’s Gathering and Processing (“G&P”) and Logistics and Transportation (“L&T”) systems. In the G&P segment, higher sequential adjusted operating margin was attributable to record Permian natural gas inlet volumes and higher fees, partially offset by the expiration of a lower margin high pressure gathering and processing agreement in the Delaware Basin. In the L&T segment, record NGL pipeline transportation, fractionation, and LPG export volumes drove the sequential increase in segment adjusted operating margin, partially offset by lower sequential marketing margin. Targa’s completion of its Daytona NGL Pipeline late in the third quarter and its 120 MBbl/d Train 10 fractionator in the fourth quarter supported higher sequential NGL pipeline transportation and fractionation volumes from increasing supply volumes from Targa’s Permian G&P systems. LPG export volumes benefited from improved market conditions. Lower sequential marketing margin was attributable to decreased optimization opportunities.

    Capitalization and Liquidity

    The Company’s total consolidated debt as of December 31, 2024 was $14,174.6 million, net of $89.0 million of debt issuance costs and $29.4 million of unamortized discount, with $12,534.4 million of outstanding senior unsecured notes, $1,130.5 million outstanding under the Commercial Paper Program, $330.0 million outstanding under the Securitization Facility, and $298.1 million of finance lease liabilities.

    Total consolidated liquidity as of December 31, 2024 was approximately $2.0 billion, including $1.6 billion available under the Existing TRGP Revolver (as defined below), $270.0 million under the Securitization Facility and $157.3 million of cash.

    Financing Update

    In February 2025, Targa entered into a new five-year revolving facility (the “New TRGP Revolver”) with aggregate capacity of $3.5 billion. The New TRGP Revolver replaces Targa’s $2.75 billion credit facility (“Existing TRGP Revolver”), scheduled to mature in February 2027. The additional capacity aligns with the Company’s increased scale and continued growth opportunities. Pro forma for the New TRGP Revolver, Targa’s liquidity as of December 31, 2024, was approximately $2.8 billion.

    Refinancing of Badlands Preferred Equity

    Targa announced today a definitive agreement to repurchase all of the outstanding preferred equity in Targa Badlands LLC (“Targa Badlands”) from funds managed by Blackstone for approximately $1.8 billion in cash (the “Repurchase”). The Repurchase represents a refinancing of higher cost preferred equity with Targa’s lower cost of debt capital, resulting in meaningful cash savings. Targa expects to close in the first quarter of 2025 with an effective date of January 1, 2025, and estimates its year-end 2025 debt to adjusted EBITDA leverage ratio will remain near the mid-point of the Company’s long-term target range.

    Growth Projects Update

    In Targa’s G&P segment, construction continues on its 275 MMcf/d Pembrook II, East Pembrook, and East Driver plants in Permian Midland and its 275 MMcf/d Bull Moose II and Falcon II plants in Permian Delaware. In Targa’s L&T segment, construction continues on its 150 MBbl/d Train 11 fractionator in Mont Belvieu. The Company remains on-track to complete these expansions as previously disclosed.

    In February 2025, in response to increasing production and to meet the infrastructure needs of its customers, Targa announced:

    • Delaware Express, a 100-mile, 30-inch diameter pipeline expansion of its Grand Prix NGL Pipeline in the Permian Delaware;
    • Train 12, a new 150 MBbl/d fractionator in Mont Belvieu, TX; and
    • GPMT LPG Export Expansion, an expansion of Targa’s LPG export capabilities at its Galena Park Marine Terminal to approximately 19 MMBbl per month.

    Delaware Express is expected to commence operations in the third quarter of 2026, Train 12 is expected to commence operations in the first quarter of 2027, and Targa’s GPMT LPG Export Expansion is expected to commence operations in the third quarter of 2027.

    2025 Outlook and Capital Return Expectations

    For 2025, Targa estimates full year adjusted EBITDA to be between $4.65 billion and $4.85 billion, with the midpoint of the range representing a 15 percent increase over full year 2024 adjusted EBITDA. Targa expects to continue to benefit from meaningful growth across its Permian G&P footprint, which is expected to drive record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025 relative to the records set in 2024.

    Targa’s 2025 operational and financial expectations assume Waha natural gas prices average $1.55 per million British Thermal Units (“MMbtu”), natural gas liquids (“NGL”) composite barrel prices average $0.65 per gallon, and crude oil prices average $70 per barrel.

    Targa’s estimate for 2025 net growth capital expenditures is between $2.6 billion to $2.8 billion and includes capital spending for the recently announced Delaware Express, Train 12, and GPMT LPG Export Expansion. Net maintenance capital expenditures for 2025 are estimated to be approximately $250 million.

    For the first quarter of 2025, Targa intends to recommend to its Board of Directors an increase to its quarterly common dividend to $1.00 per common share or $4.00 per common share annualized. The recommended 33 percent common dividend per share increase, if approved, would be effective for the first quarter of 2025 and payable in May 2025. Going forward, Targa expects to be in position to continue to meaningfully increase the capital returned to shareholders through increasing common dividends per share and opportunistic repurchases of its common stock.

    An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events.

    Conference Call

    The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on February 20, 2025 to discuss its fourth quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/qgzvcwi7. A webcast replay will be available at the link above approximately two hours after the conclusion of the event.

    (1)    Adjusted EBITDA is a non-GAAP financial measure and is discussed under “Non-GAAP Financial Measures.”
    (2)    Year over year increase based on midpoint of estimated 2025 adjusted EBITDA range of $4.65 billion to $4.85 billion.

    Targa Resources Corp. – Consolidated Financial Results of Operations

        Three Months Ended December 31,                 Year Ended December 31,              
        2024     2023     2024 vs. 2023     2024     2023     2024 vs. 2023  
        (In millions)  
    Revenues:                                                
    Sales of commodities   $ 3,765.5     $ 3,647.9     $ 117.6       3 %   $ 13,891.8     $ 13,962.1     $ (70.3 )     (1 %)
    Fees from midstream services     639.7       591.6       48.1       8 %     2,489.7       2,098.2       391.5       19 %
    Total revenues     4,405.2       4,239.5       165.7       4 %     16,381.5       16,060.3       321.2       2 %
    Product purchases and fuel     2,922.6       2,898.5       24.1       1 %     10,703.0       10,676.4       26.6       —  
    Operating expenses     305.8       269.5       36.3       13 %     1,175.6       1,077.9       97.7       9 %
    Depreciation and amortization expense     378.5       341.4       37.1       11 %     1,423.0       1,329.6       93.4       7 %
    General and administrative expense     97.5       95.3       2.2       2 %     384.9       348.7       36.2       10 %
    Other operating (income) expense     0.2       (0.5 )     0.7     NM       (0.4 )     1.5       (1.9 )   NM  
    Income (loss) from operations     700.6       635.3       65.3       10 %     2,695.4       2,626.2       69.2       3 %
    Interest expense, net     (177.7 )     (178.0 )     0.3       —       (767.2 )     (687.8 )     (79.4 )     12 %
    Equity earnings (loss)     1.5       2.8       (1.3 )     (46 %)     9.4       9.0       0.4       4 %
    Gain (loss) from financing activities     —       (2.1 )     2.1       100 %     (0.8 )     (2.1 )     1.3       62 %
    Other, net     0.1       2.1       (2.0 )   NM       1.2       (2.8 )     4.0     NM  
    Income tax (expense) benefit     (110.5 )     (102.5 )     (8.0 )     8 %     (384.5 )     (363.2 )     (21.3 )     6 %
    Net income (loss)     414.0       357.6       56.4       16 %     1,553.5       1,579.3       (25.8 )     (2 %)
    Less: Net income (loss) attributable to noncontrolling interests     63.0       58.0       5.0       9 %     241.5       233.4       8.1       3 %
    Net income (loss) attributable to Targa Resources Corp.     351.0       299.6       51.4       17 %     1,312.0       1,345.9       (33.9 )     (3 %)
    Premium on repurchase of noncontrolling interests, net of tax     32.9       19.4       13.5       70 %     32.9       510.1       (477.2 )     (94 %)
    Net income (loss) attributable to common shareholders   $ 318.1     $ 280.2     $ 37.9       14 %   $ 1,279.1     $ 835.8     $ 443.3       53 %
    Financial data:                                                
    Adjusted EBITDA (1)   $ 1,122.2     $ 959.9     $ 162.3       17 %   $ 4,142.3     $ 3,530.0     $ 612.3       17 %
    Adjusted cash flow from operations (1)     940.9       780.1       160.8       21 %     3,372.4       2,840.6       531.8       19 %
    Adjusted free cash flow (1)     56.2       73.7       (17.5 )     (24 %)     140.1       392.7       (252.6 )     (64 %)
    (1) Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”
    NM Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful.


    Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

    The increase in commodity sales reflects higher NGL, natural gas and condensate volumes ($242.4) and higher NGL prices ($199.5 million), partially offset by lower natural gas and condensate prices ($197.0 million) and the unfavorable impact of hedges ($127.3 million).

    The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

    Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

    The increase in operating expenses is primarily due to higher maintenance and labor costs as a result of increased activity and system expansions, partially offset by lower taxes.

    See “—Review of Segment Performance” for additional information on a segment basis.

    The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base that have been placed in service during 2024.

    The increase in income tax expense is primarily due to an increase in pre-tax book income and the release of state valuation allowance in 2023 partially offset by the impact of statutory rate changes.

    The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024.

    Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

    Commodity sales are relatively flat reflecting lower natural gas and condensate prices ($1,242.8 million) and the unfavorable impact of hedges ($686.5 million), offset by higher NGL, natural gas and condensate volumes ($1,607.2 million), and higher NGL prices ($251.6 million).

    The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.

    Product purchases and fuel are relatively flat reflecting higher NGL and natural gas volumes, offset by lower natural gas prices.

    The increase in operating expenses is primarily due to higher labor, maintenance, rental and chemical costs as a result of increased activity and system expansions, partially offset by lower taxes.

    See “—Review of Segment Performance” for additional information on a segment basis.

    The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company’s asset base, partially offset by the shortening of depreciable lives of certain assets that were idled in 2023.

    The increase in general and administrative expense is primarily due to higher compensation and benefits and professional fees.

    The increase in interest expense, net, is due to recognition of cumulative interest on a 2024 legal ruling associated with the Splitter Agreement and higher borrowings, partially offset by higher capitalized interest. Higher capitalized interest is due to system expansions and higher interest rates.

    The increase in income tax expense is primarily due to the release of state valuation allowance in 2023.

    The premium on repurchase of noncontrolling interests, net of tax is primarily due to the CBF Acquisition in 2024 and the Grand Prix Transaction in 2023.

    Review of Segment Performance

    The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see “Non-GAAP Financial Measures ― Adjusted Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation.

    The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation.

    Gathering and Processing Segment

    The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

    The following table provides summary data regarding results of operations of this segment for the periods indicated:

        Three Months Ended December 31,                   Year Ended December 31,                
        2024     2023     2024 vs. 2023     2024     2023     2024 vs. 2023  
          (In millions, except operating statistics and price amounts)  
    Operating margin   $ 598.9     $ 536.3     $ 62.6       12 %   $ 2,312.4     $ 2,082.2     $ 230.2       11 %
    Operating expenses     217.5       185.7       31.8       17 %     814.6       746.6       68.0       9 %
    Adjusted operating margin   $ 816.4     $ 722.0     $ 94.4       13 %   $ 3,127.0     $ 2,828.8     $ 298.2       11 %
    Operating statistics (1):                                                            
    Plant natural gas inlet, MMcf/d (2) (3)                                                            
    Permian Midland (4)     3,072.8       2,716.5       356.3       13 %     2,933.1       2,535.2       397.9       16 %
    Permian Delaware     2,992.4       2,564.3       428.1       17 %     2,837.3       2,526.5       310.8       12 %
    Total Permian     6,065.2       5,280.8       784.4       15 %     5,770.4       5,061.7       708.7       14 %
                                                                 
    SouthTX     329.4       347.9       (18.5 )     (5 %)     325.9       367.4       (41.5 )     (11 %)
    North Texas     187.4       207.7       (20.3 )     (10 %)     186.9       205.9       (19.0 )     (9 %)
    SouthOK (5)     339.7       366.5       (26.8 )     (7 %)     351.7       385.0       (33.3 )     (9 %)
    WestOK     210.5       207.1       3.4       2 %     212.8       207.1       5.7       3 %
    Total Central     1,067.0       1,129.2       (62.2 )     (6 %)     1,077.3       1,165.4       (88.1 )     (8 %)
                                                                 
    Badlands (5) (6)     128.8       131.2       (2.4 )     (2 %)     136.3       130.0       6.3       5 %
    Total Field     7,261.0       6,541.2       719.8       11 %     6,984.0       6,357.1       626.9       10 %
                                                                 
    Coastal     405.7       567.0       (161.3 )     (28 %)     449.6       541.1       (91.5 )     (17 %)
                                                                 
    Total     7,666.7       7,108.2       558.5       8 %     7,433.6       6,898.2       535.4       8 %
    NGL production, MBbl/d (3)                                                            
    Permian Midland (4)     445.7       398.3       47.4       12 %     428.4       367.7       60.7       17 %
    Permian Delaware     390.2       310.6       79.6       26 %     359.9       321.6       38.3       12 %
    Total Permian     835.9       708.9       127.0       18 %     788.3       689.3       99.0       14 %
                                                                 
    SouthTX (5)     29.3       37.3       (8.0 )     (21 %)     32.8       40.9       (8.1 )     (20 %)
    North Texas     22.9       24.5       (1.6 )     (7 %)     22.6       24.0       (1.4 )     (6 %)
    SouthOK (5)     40.1       40.0       0.1       —       35.0       43.1       (8.1 )     (19 %)
    WestOK     16.3       12.1       4.2       35 %     15.1       12.5       2.6       21 %
    Total Central     108.6       113.9       (5.3 )     (5 %)     105.5       120.5       (15.0 )     (12 %)
                                                                 
    Badlands (5)     15.3       15.7       (0.4 )     (3 %)     16.6       15.5       1.1       7 %
    Total Field     959.8       838.5       121.3       14 %     910.4       825.3       85.1       10 %
                                                                 
    Coastal     36.0       43.2       (7.2 )     (17 %)     35.8       39.2       (3.4 )     (9 %)
                                                                 
    Total     995.8       881.7       114.1       13 %     946.2       864.5       81.7       9 %
    Crude oil, Badlands, MBbl/d     110.1       105.2       4.9       5 %     106.6       105.5       1.1       1 %
    Crude oil, Permian, MBbl/d     29.5       27.5       2.0       7 %     27.9       27.4       0.5       2 %
    Natural gas sales, BBtu/d (3)     2,784.3       2,737.3       47.0       2 %     2,780.5       2,685.8       94.7       4 %
    NGL sales, MBbl/d (3)     582.0       520.6       61.4       12 %     558.2       495.8       62.4       13 %
    Condensate sales, MBbl/d     19.8       17.8       2.0       11 %     19.3       18.5       0.8       4 %
    Average realized prices (7):                                                            
    Natural gas, $/MMBtu     1.04       1.83       (0.79 )     (43 %)     0.67       1.94       (1.27 )     (65 %)
    NGL, $/gal     0.49       0.43       0.06       14 %     0.46       0.46       —       —  
    Condensate, $/Bbl     66.83       74.79       (7.96 )     (11 %)     73.35       74.35       (1.00 )     (1 %)
    (1) Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.
    (2) Plant natural gas inlet represents the Company’s undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands.
    (3) Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.
    (4) Permian Midland includes operations in WestTX, of which the Company owns a 72.8% undivided interest, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company’s reported financials.
    (5) Operations include facilities that are not wholly owned by the Company.
    (6) Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the Little Missouri 4 plant.
    (7) Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to the Company’s equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees.

    The following table presents the realized commodity hedge gain (loss) attributable to the Company’s equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment:

        Three Months Ended December 31, 2024     Three Months Ended December 31, 2023  
        (In millions, except volumetric data and price amounts)  
        Volume
    Settled    		     Price
    Spread (1)    		     Gain
    (Loss)    		     Volume
    Settled    		     Price
    Spread (1)    		     Gain
    (Loss)    		  
    Natural gas (BBtu)     8.1     $ 1.84     $ 14.9       13.2     $ 1.15     $ 15.2  
    NGL (MMgal)     101.0       0.01       0.9       165.3       0.09       15.5  
    Crude oil (MBbl)     0.7       5.00       3.5       0.6       (6.17 )     (3.7 )
                    $ 19.3                 $ 27.0  
        Year Ended December 31, 2024     Year Ended December 31, 2023  
        (In millions, except volumetric data and price amounts)  
        Volume
    Settled    		     Price
    Spread (1)    		     Gain
    (Loss)    		     Volume
    Settled    		     Price
    Spread (1)    		     Gain
    (Loss)    		  
    Natural gas (BBtu)     43.7     $ 1.92     $ 84.1       63.2     $ 1.22     $ 77.4  
    NGL (MMgal)     449.8       0.04       15.8       680.3       0.07       49.9  
    Crude oil (MBbl)     2.1       (2.05 )     (4.3 )     2.4       (6.92 )     (16.6 )
                    $ 95.6                 $ 110.7  
    (1) The price spread is the differential between the contracted derivative instrument pricing and the price of the corresponding settled commodity transaction.


    Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

    The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, and higher NGL Prices, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Wildcat II plant during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

    The increase in operating expenses was primarily due to higher volumes in the Permian and multiple plant additions in the Permian, partially offset by lower taxes in the Central region.

    Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

    The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes which drove higher fee-based income in the Permian, partially offset by lower natural gas and condensate prices. The increase in natural gas inlet volumes was attributable to the addition of the Legacy II plant during the first quarter of 2023, the Midway plant during the second quarter of 2023, the Greenwood I and Wildcat II plants during the fourth quarter of 2023, the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, and continued strong producer activity.

    The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.

    Logistics and Transportation Segment

    The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company’s other businesses. The Logistics and Transportation segment also includes Grand Prix NGL Pipeline, which connects the Company’s gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company’s Downstream facilities in Mont Belvieu, Texas. The Company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

    The following table provides summary data regarding results of operations of this segment for the periods indicated:

        Three Months Ended December 31,                   Year Ended December 31,                
        2024     2023     2024 vs. 2023   2024     2023     2024 vs. 2023
        (In millions, except operating statistics)
    Operating margin   $ 656.2     $ 554.2     $ 102.0       18 %   $ 2,355.1     $ 1,948.7     $ 406.4       21 %
    Operating expenses     88.7       84.4       4.3       5 %     362.3       332.0       30.3       9 %
    Adjusted operating margin   $ 744.9     $ 638.6     $ 106.3       17 %   $ 2,717.4     $ 2,280.7     $ 436.7       19 %
    Operating statistics MBbl/d (1):                                                            
    NGL pipeline transportation volumes (2)     871.5       722.0       149.5       21 %     800.8       635.5       165.3       26 %
    Fractionation volumes     1,089.5       844.8       244.7       29 %     936.1       798.1       138.0       17 %
    Export volumes (3)     457.1       434.5       22.6       5 %     423.6       365.2       58.4       16 %
    NGL sales     1,227.5       1,125.8       101.7       9 %     1,159.1       1,019.8       139.3       14 %
    (1) Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.
    (2) Represents the total quantity of mixed NGLs that earn a transportation margin.
    (3) Export volumes represent the quantity of NGL products delivered to third-party customers at the Company’s Galena Park Marine Terminal that are destined for international markets.


    Three Months Ended December 31, 2024 Compared to Three Months Ended December 31, 2023

    The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin and higher marketing margin. LPG export margin was relatively flat. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities.

    The increase in operating expenses was due to higher system volumes, higher taxes, higher compensation and benefits the in-service of the Daytona NGL Pipeline expansion during the third quarter of 2024, the addition of Train 9 during the second quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024, partially offset by lower repairs and maintenance.

    Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

    The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin, higher marketing margin, and higher LPG export margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, the addition of Train 9 during the second quarter of 2024, the in-service of the Daytona NGL Pipeline during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin increased due to greater optimization opportunities. LPG export margin increased due to higher volumes as Targa benefited from the completion of the export expansion project during the third quarter of 2023 and the Houston Ship Channel allowing night-time vessel transits, partially offset by maintenance and required inspections.

    The increase in operating expenses was due to higher system volumes, higher compensation and benefits, higher taxes, higher repairs and maintenance and the addition of two trains during 2024.

    Other

        Three Months Ended December 31,           Year Ended December 31,        
        2024     2023     2024 vs. 2023     2024     2023     2024 vs. 2023  
        (In millions)  
    Operating margin   $ (78.3 )   $ (18.8 )   $ (59.5 )   $ (164.6 )   $ 275.5     $ (440.1 )
    Adjusted operating margin   $ (78.3 )   $ (18.8 )   $ (59.5 )   $ (164.6 )   $ 275.5     $ (440.1 )

    Other contains the results of commodity derivative activity mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company’s future commodity purchases and sales and natural gas transportation basis risk within the Company’s Logistics and Transportation segment.

    About Targa Resources Corp.

    Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.

    Targa is a FORTUNE 500 company and is included in the S&P 500.

    For more information, please visit the Company’s website at www.targaresources.com.

    Non-GAAP Financial Measures

    This press release includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures.

    The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes.

    Adjusted Operating Margin

    The Company defines adjusted operating margin for the Company’s segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company’s contract mix and commodity hedging program.

    Gathering and Processing adjusted operating margin consists primarily of:

    • service fees related to natural gas and crude oil gathering, treating and processing; and
    • revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements.

    Logistics and Transportation adjusted operating margin consists primarily of:

    • service fees (including the pass-through of energy costs included in certain fee rates);
    • system product gains and losses; and
    • NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change.

    The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other.

    Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company’s financial statements, including investors and commercial banks, to assess:

    • the financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis;
    • the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and
    • the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities.

    Management reviews adjusted operating margin and operating margin for the Company’s segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company’s operating results. The reconciliation of the Company’s adjusted operating margin to the most directly comparable GAAP measure is presented under “Review of Segment Performance.”

    Adjusted EBITDA

    The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors.

    Adjusted Cash Flow from Operations and Adjusted Free Cash Flow

    The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash taxes. The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures (net of any reimbursements of project costs) and growth capital expenditures, net of contributions from noncontrolling interest and contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements.

    The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated:

        Three Months Ended December 31,     Year Ended December 31,  
        2024     2023     2024     2023  
        (In millions)  
    Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow                        
    Net income (loss) attributable to Targa Resources Corp.   $ 351.0     $ 299.6     $ 1,312.0     $ 1,345.9  
    Interest (income) expense, net     177.7       178.0       767.2       687.8  
    Income tax expense (benefit)     110.5       102.5       384.5       363.2  
    Depreciation and amortization expense     378.5       341.4       1,423.0       1,329.6  
    (Gain) loss on sale or disposition of assets     (0.4 )     (1.3 )     (3.1 )     (5.3 )
    Write-down of assets     2.2       0.8       6.2       6.9  
    (Gain) loss from financing activities     —       2.1       0.8       2.1  
    Equity (earnings) loss     (1.5 )     (2.8 )     (9.4 )     (9.0 )
    Distributions from unconsolidated affiliates     8.7       4.5       25.3       18.6  
    Compensation on equity grants     15.8       16.7       63.2       62.4  
    Risk management activities     78.2       18.8       164.6       (275.4 )
    Noncontrolling interests adjustments (1)     1.5       (0.4 )     3.9       (3.7 )
    Litigation expense (2)     —       —       4.1       6.9  
    Adjusted EBITDA   $ 1,122.2     $ 959.9     $ 4,142.3     $ 3,530.0  
    Interest expense on debt obligations (3)     (173.8 )     (174.9 )     (752.4 )     (675.8 )
    Cash taxes     (7.5 )     (4.9 )     (17.5 )     (13.6 )
    Adjusted Cash Flow from Operations   $ 940.9     $ 780.1     $ 3,372.4     $ 2,840.6  
    Maintenance capital expenditures, net (4)     (65.0 )     (70.4 )     (231.9 )     (223.4 )
    Growth capital expenditures, net (4)     (819.7 )     (636.0 )     (3,000.4 )     (2,224.5 )
    Adjusted Free Cash Flow   $ 56.2     $ 73.7     $ 140.1     $ 392.7  
    (1) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.
    (2) Litigation expense includes charges related to litigation resulting from the major winter storm in February 2021 that the Company considers outside the ordinary course of its business and/or not reflective of its ongoing core operations. The Company may incur such charges from time to time, and the Company believes it is useful to exclude such charges because it does not consider them reflective of its ongoing core operations and because of the generally singular nature of the claims underlying such litigation.
    (3) Excludes amortization of interest expense. The year ended December 31, 2024 includes $55.8 million of interest expense associated with the Splitter Agreement ruling.
    (4) Represents capital expenditures, net of contributions from noncontrolling interests and includes contributions to investments in unconsolidated affiliates.

    The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2025:

        2025E  
        (In millions)  
    Reconciliation of Estimated Net Income Attributable to Targa Resources Corp. to      
    Estimated Adjusted EBITDA      
    Net income attributable to Targa Resources Corp.   $ 1,765.0  
    Interest expense, net     875.0  
    Income tax expense     510.0  
    Depreciation and amortization expense     1,535.0  
    Equity earnings     (20.0 )
    Distributions from unconsolidated affiliates     25.0  
    Compensation on equity grants     65.0  
    Noncontrolling interests adjustments (1)     (5.0 )
    Estimated Adjusted EBITDA   $ 4,750.0  
    (1) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest.


    Regulation FD Disclosures

    The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the company to monitor these distribution channels for material disclosures.

    Forward-Looking Statements

    Certain statements in this release are “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. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of our completion of capital projects and business development efforts, the expected growth of volumes on our systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, the impact of disruptions in the bank and capital markets, including those resulting from lack of access to liquidity for banking and financial services firms, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

    Targa Investor Relations
    InvestorRelations@targaresources.com
    (713) 584-1133

    The MIL Network –

  • MIL-OSI Economics: Burkhard Balz: Unlocking the potential of cross-border payments – challenges and opportunities

    Source: Bank for International Settlements

    Check against delivery 

    1 Introduction

    Ladies and Gentlemen,

    Thank you very much for the opportunity to speak to you today in a city that has a long history of being a hub for cross-border payments. Not far from here, in the arrondissement that still bears the name of their religious order, the Knights Templar had their headquarters. Founded as a knightly order, they increasingly focussed on their banking business in later years. This included offering services for cross-border payments: pilgrims could deposit their funds at the Templar commandery, receive a letter of credit, and could exchange that letter for cash at their destination. You could say that the Templars were the first European money transfer operator.1

    However, conducting banking business in the Middle Ages could be risky and could – amongst other factors – lead to an inglorious end. A short distance from here, the last Templars were burned at the stake on what is now the Île de la Cité. 

    2 Current challenges in cross-border payments

    While money transfer operators today do not have to fear vengeful monarchs, they face their own challenges when they offer cross-border payments. Although unbelievably fast and cheap compared to medieval standards, today’s cross-border payments lag behind domestic payments when it comes to speed, cost, access and transparency. And when we look at the root causes, images of medieval transport routes come to mind. 

    The reasons for the discrepancy between domestic and cross-border payments are manifold: first of all, high barriers for market entry result in a lack of competition and long transaction chains. These market entry barriers include high liquidity costs, high regulatory standards as well as the need to build a sufficiently large network to achieve economies of scale. As a result, the long transaction chains with multiple parties involved negatively affect costs, speed and transparency. While the situation has been improving in the last few years, thanks to initiatives like SWIFT gpi, substantial obstacles still remain.

    Second, the lack of harmonisation of regulatory standards hinders smooth payment flows across borders. As different countries have different regimes for sanction screening and fighting money laundering and financial crime, payments need to be checked multiple times along the payment chain. Often the chain is interrupted because the relevant information to fulfil regulatory compliance is missing. Sometimes even manual intervention is necessary, which in turn hinders automated end-to-end processing of payments. Of course, this problem is multiplying with longer transaction chains.

    Third, there are technical impediments. Insufficiently harmonised standards for message formats, varying opening hours of payment systems and differing technical system specifications can further exacerbate the frictions in cross-border payments.

    Last but not least, I would like to address one aspect which is a very specific concern for me. Increased geopolitical tensions could have the potential to hamper efforts to improve cross-border payments by eroding the basis for international coordination: mutual trust. Moving forward, we have to find ways to rebuild that trust again in order to negotiate on fair and equal terms.

    3 Towards a multilateral world in payments?

    So, bearing in mind that the current infrastructure for global payments is not the optimum: what would be the ideal solution? A truly global system for cross-border payments? This is, in my view, rather unrealistic because it would not only require fully eliminating all current barriers, but also solving emerging issues, such as finding an appropriate governance framework. In order to take a step forward, we might need to grab the opportunities right ahead of us. Regional initiatives and interlinked systems could be the first steps towards a more interconnected global payments ecosystem.

    In the Eurosystem, we have already taken a step in this direction. The platforms T2, for wholesale, and TIPS, for real-time retail payments in Europe, enable not only payments in euro, but also in Swedish krona and will also soon support payments in Danish krona. Other examples of successful regional multi-currency solutions are Buna in the Arab region, and the Pan-African Payment and Settlement system (PAPPS).

    Thus, while a global payment system may seem like an ideal solution, different regional systems have their advantages as well. They can cater for the specific needs of their region, and it is always easier to coordinate a smaller number of players than a global project.

    However, in a payments landscape with a stronger regional focus, the risk of global fragmentation remains. This means there are two paths we have to embark on: on the one hand, we have to make sure that such a multilateral structure ensures the safety, resilience and integrity of the global payment system. On the other hand, different regional parts need to become interoperable with each other. Otherwise, there is the risk that fragmentation will exacerbate the current problems in cross-border payments, as previous harmonisation and standardisation efforts could become obsolete – not only in technical terms, but also with regard to market practices, regulations and strategies.

    4 How can central banks address the challenges?

    Now, the question that we have to ask ourselves as central bankers is: what can we do? And what better place to ask this question than at the Central Bank Payments Conference? 

    In 2020, the G20 developed a concrete roadmap to enhance cross-border payments. As part of this process, 19 building blocks with specific action points were developed and quantitative targets were set.

    After almost five years, we can already see some improvements in the global payments landscape: together with the market, we have harmonised the ISO 20022 standard further, reducing frictions in the transmission of messages. 

    Furthermore, central banks around the world have expanded their operating hours, thus reducing delays when sending and settling payments across time zones. Whether that is the first step towards 24/7 operations for real-time gross settlement (RTGS) systems remains to be seen, as this would come with a number of additional challenges. However, I believe it is not a question of “if”, but more “how” because the world of payments has already moved towards 24/7 operations with regard to the new instant payment rails. This will also have an impact on liquidity management in central bank money, which is usually conducted via RTGS systems.

    Additionally, there are ongoing initiatives to open up access to central bank payment systems, which could increase competition and thus enhance the efficiency of cross-border payments. Within the Eurosystem, we have already taken a key decision2 in this regard and are currently exploring the detailed specifications under which such access can be granted.

    Looking ahead, there are a couple of options for central banks to further enhance the efficiency of cross-border payments. For the last couple of years, instant payment systems have been built across the globe. When we interlink these systems, we could enable payment institutions worldwide to quickly expand their payment network. Assuming that we would also find more efficient ways for the currency conversion still needed in this context, we could also lower liquidity costs: this would address two of the main market entry barriers, thus increasing competition. 

    First trials in that direction have already been completed and interlinking with foreign payment infrastructures is one of the key components of the Eurosystem’s strategy for the coming years.3 If we interlink regional payment infrastructures, we can quickly tackle a number of the frictions we face in cross-border payments today.

    In the future, central bank digital currencies (CBDCs) could offer another opportunity, but we have to make sure that they combat fragmentation, rather than increase it. To guarantee this, we have to ensure that they are interoperable with each other and with traditional payment systems. Regarding the digital euro, the ECB and the national central banks of the Eurosystem are in close contact with market players and other central banks outside the euro area. However, while CBDCs might also be a very promising candidate in the cross-border space, in particular given that they are expected to penetrate the relevant markets strongly, it will take time for them to become established. This is because we are still at a nascent phase globally and, very often, priority needs to be given to ensuring a market roll-out in domestic markets, as is our aim for the digital euro.

    Instant payment systems may not be “traditional” in terms of age, but they are still an evolution of the “classic” payment rails. Nevertheless, and given the rather diverging global situation, they could be a prime candidate for interlinking with emerging retail CBDCs in other areas: first, both systems are able to operate around the clock in real-time. Second, instant payment systems give instant feedback on whether the payment was successful or not. Third, messages could be tokenised and used to settle smart contracts in more technically innovative infrastructures.

    This idea is not only applicable in the retail space. It could also benefit the wholesale area, where innovative solutions could help to address foreign exchange liquidity management, thereby complementing the linkage of RTGS systems, for instance. We at the Bundesbank have trialled those interconnections in the wholesale payments world with our trigger solution, which was one of three interoperability solutions tested as part of the Eurosystem’s exploratory work. The trigger solution links distributed ledger technology (DLT) platforms operated by the market with the “traditional” Eurosystem payment system (TARGET), thus enabling the direct settlement of DLT-based wholesale transactions on participants’ existing RTGS accounts in central bank money.

    When we look at past and current efforts, we see that much has been done to harmonise technical standards and to supply innovative solutions. However, in order to truly be successful in enhancing cross-border payments, we should not only look at what the market could do: we must also address the fragmented regulatory landscape as well. Harmonising regulatory standards across borders would remove one of the largest frictions in cross-border payments. 

    5 Outlook

    When we take a look at what we have achieved already and what we still have to achieve by 2027, we could say that reaching the G20 targets will be a very ambitious climb. However, we should not downplay what we have achieved so far. We have made significant progress when it comes to global harmonisation of technical standards and updating payment infrastructures.

    Momentum for the interlinking of payment systems has never been as great as it is today and new technologies like DLT, and maybe even AI, can help to further reduce the frictions affecting cross-border payments at present. 

    Despite the current geopolitical situation, central banks can help alleviate the challenges we face today by supplying policymakers and regulators with a range of options.

    As you can see, improving cross-border payments is not as mysterious as a Dan Brown novel, and solving the problems that we face is not as hard as cracking the Da Vinci Code that Tom Hanks tries to crack in the films with the same name. And there are no longer Knights Templar defending the holy grail of efficient cross-border payments.

    So, let us continue improving the global payments landscape.

    Ladies and gentlemen, thank you for your attention.

    MIL OSI Economics –

  • MIL-OSI United Kingdom: Ongoing crackdown hooks 6 unlicensed anglers

    Source: United Kingdom – Executive Government & Departments

    As part of an ongoing Environment Agency crackdown, 6 anglers have been found guilty of fishing illegally at waters in the London area last year.

    A fisheries enforcement officer

    Their cases were brought by the Environment Agency to Barkingside magistrates’ court on 8 January 2025. In total, the 6 offenders will now pay £2,182 in fines and charges.

    Illegal fishing “undermines investment” in fisheries

    Unlicensed fishing poses a risk to fish stocks and can often cost anglers the species they care about. It also undermines all the investment made using rod licence income, in addition to the good work by our partners and angling clubs in improving fisheries.

    Richard Tyner, area fisheries team leader at the Environment Agency, said:

    “We hope the penalties these 6 illegal anglers have received will act as a deterrent to anyone who is thinking of breaking the laws and byelaws we have in place across England.

    “Fishing illegally can incur a fine of up to £2,500, and offenders can also have their fishing equipment seized. We inspect rod licences 24/7, 7 days a week to check on cases of illegal fishing, and for those caught cheating the system, we will always prosecute.

    “Illegal fishing undermines the Environment Agency’s efforts to protect fish stocks and make fishing sustainable.  Money raised from fishing licence sales is used to protect and improve fish stocks and fisheries for the benefit of legal anglers.”

    Rod licences cost much less than a tenner

    Any angler aged 13 or over, fishing on a river, canal or still water needs a licence to fish. A one-day licence costs from just £7.10, and an annual licence currently costs from just £35.80. Concessions are available. Junior licences are free for 13 – 16-year-olds.

    Licences are available from www.gov.uk/get-a-fishing-licence or by calling the Environment Agency on 0344 800 5386 between 8am and 6pm, Monday to Friday.

    Known hot spots for “illegal fishing” targeted

    The Environment Agency carries out enforcement work all year round and is supported by partners, including the police and the Angling Trust. Fisheries enforcement work is intelligence-led, targeting known hot spots and where illegal fishing is reported.

    Anyone with information about illegal fishing activities can contact the Environment Agency incident hotline 24/7 on 0800 807060 or Crimestoppers on 0800 555 111.

    Alex Payne, 25, of Crays View, Billericay, Essex, was found guilty at court to fishing without a licence at the Chase Fishery in Dagenham, east London, on 15 June 2024. He was ordered to pay £443. This includes a fine of £220, costs of £135 and a victim surcharge of £88.

    Mark Taylor, 25, of Camden Close, Grays, Thurrock, was found guilty of fishing without a licence at Tylers Common Fisheries, Harold Wood, east London, on 15 June 2024. He was ordered to pay £443. This includes a fine of £220, costs of £135 and a victim surcharge of £88.

    Ciprian Buta, 38, of Montague Road, London, pleaded guilty to fishing without a licence at Walthamstow Reservoirs, Tottenham Hale, north London, on 17 June 2024. He was ordered to pay £329. This includes a fine of £146, costs of £125 and a victim surcharge of £58.

    Liam Midmore, 25, of Watermans Lane, Paddock Wood, Tonbridge, Kent, pleaded guilty to fishing without a licence at Thorney Weir Lakes, West Drayton, on 6 May 2024. He was ordered to pay £329. This includes a fine of £146, costs of £125 and a victim surcharge of £58.

    Cristian Milhailopol, 46, of Lincoln Grove, Harrogate, North Yorkshire, pleaded guilty to fishing without a licence at Tylers Common Fisheries, Harold Wood, east London, on 18 May 2024. He was ordered to pay £329. This includes a fine of £146, costs of £125 and a victim surcharge of £58.

    Christopher Ould, 35, of Ashdown Road, Bexhill-on-Sea, East Sussex, pleaded guilty to   fishing without a licence at Thorney Weir Lakes, West Drayton, on 6 May 2024. He was ordered to pay £329. The penalty includes a fine of £146, costs of £125 and a victim surcharge of £58.

    Contact us:

    Journalists only – 0800 141 2743 or communications_se@environment-agency.gov.uk.

    The press office is unable to answer enquiries from members of the public. If you are not a journalist and would like to contact the Environment Agency, please call 03708 506506.

    Updates to this page

    Published 20 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI USA: Rep. Gregory W. Meeks Statement Following Meeting with New York Governor Kathy Hochul

    Source: United States House of Representatives – Congressman Gregory W Meeks (5th District of New York)

    QUEENS, NY – Today, Congressman Gregory W. Meeks (NY-05) released the following statement on the meeting with Gov. Hochul: 

    “I had a great meeting with the Governor, and I am grateful for her steady leadership during these turbulent times for our beloved city.

    “At a time when our Democratic norms are under attack, it is more important than ever leaders demonstrate respect for the rule of law, the power of the people’s vote, and due process. As a result of the resignations of the four deputy mayors and federal prosecutors, I am deeply concerned about the future of our city’s leadership and hold hope our system of checks and balances will protect the interests of the people of New York City. 

    “Here’s the bottom line – no single elected person be it the president or the governor — should unilaterally decide the fate of our mayor or any duly elected individual. We must adhere to the process set forth by our laws in New York and let the judicial process play out at tomorrow’s hearing. My utmost priority as is the Governor’s is to ensure that all New Yorkers’ interests are respected and represented.”

    ###

    MIL OSI USA News –

  • MIL-OSI USA: ICYMI: On MSNBC.com, Reps. Chu, Moore raise alarm over DOGE’s rogue activities, access to personal information

    Source: United States House of Representatives – Representative Judy Chu (CA2-27)

    “We confronted Speaker Johnson over DOGE. His response is cause for concern,” they write

    WASHINGTON, D.C. — As reports continue surfacing regarding Elon Musk’s so-called Department on Government Efficiency (DOGE) accessing confidential and sensitive private information at the Internal Revenue Service (IRS), MSNBC.com published a joint opinion piece by Reps. Judy Chu (CA-28) and Gwen Moore (WI-04) on their recent, unscheduled meeting with Speaker Mike Johnson in his office regarding DOGE’s activities. This follows their letter to Speaker Johnson welcoming his commitment to House Committee on Ways & Means oversight of DOGE and Musk’s access to data and funding streams.

    They write: 

    Insults towards women in politics are nothing new, so we are wearing being called “rude,” “aggressive” and “unhinged” last week as a badge of honor. 

    This is not a time where business as usual can be our strategy. 

    After reports began surfacing about Elon Musk’s so-called Department of Government Efficiency having access to the Department of Treasury payment systems, our constituents were understandably alarmed. They bombarded our phones rightly demanding answers to why an unelected and unvetted billionaire – and other unqualified individuals with troubling backgrounds – was granted access to sensitive Treasury payment systems and the confidential, personal information contained within. 

    Does no one outside of Musk and his team know how this data is being handled and used? Is it being manipulated? Are backdoors into the system being added? Where is any extracted data being maintained? 

    We sought answers to these questions and more from the source: Treasury Secretary Scott Bessent, who had given Musk and DOGE that access. So, after learning that Bessent had a scheduled meeting last Wednesday with Speaker Mike Johnson and House Ways and Means Chairman Jason Smith to discuss passing more tax cuts for the wealthy, we marched to the Speaker’s Office to get those answers. 

    The DOGE team’s attack at Treasury began with Musk’s allies reportedly pressured the department’s highest ranking career official to gain access to the department’s payment systems. That official, who had worked under 11 different Treasury secretaries of both parties, ultimately resigned rather than follow an unlawful order. He was right to be concerned: The Treasury systems dispense 95 percent of federal payments every year. They ensure that seniors, government employees, and taxpayers receive their Social Security checks, paychecks, and tax refunds, among other things. Protecting the systems’ integrity is a matter of national security, economic security, and personal privacy. 

    Management of payment systems has historically been done by career civil servants who have been thoroughly vetted and granted proper security clearances, through carefully designed procedures. In fact, Section 6103 of the Internal Revenue Code states that unauthorized disclosure of confidential taxpayer information is a felony. There is no room for error. A technical glitch of the payment systems in 1979 that delayed checks to a small number of bond holders caused a spike in treasury yields. A more systemic issue in the payment’s issuances, or intentional political tampering with payments could trigger dire economic consequences for our nation and the global economic order. 

    These responsibilities are far too serious for Musk and his unqualified team. But President Trump operates with minimal ethical restraints and no concern about whether those who work for him are qualified. His Republican allies in Congress have so far provided no check on his lawless actions or dangerous nominees to Cabinet positions. And after Musk contributed $277 million to President Trump and other Republicans in the 2024 campaign, the richest man in the world has been granted this unprecedented level of extra-executive powers to undermine the federal government and adversely affect the lives of tens of millions of Americans.

    We know that Democrats and other concerned citizens will need to be creative and, in the words of the late Congressman John Lewis, make good trouble. Most of our constituents don’t have proximity to the halls of power and won’t get the chance to meet congressional leadership and Cabinet secretaries to voice their concerns. But we are their elected representatives, endowed with the responsibility to be their voice in Washington D.C., and they expect us to do what we can in these unprecedented times. 

    Even though we were denied the chance to meet with the Treasury Secretary, we did secure a meeting with Speaker Johnson. An anonymous witness, who was clearly friendly toward the Speaker, told media outlets that we were “incredibly rude, extremely aggressive and frankly unhinged.” This was utterly false: We engaged in a polite, respectful conversation. But alarmingly, Speaker Johnson revealed that he didn’t know DOGE’s intentions. He couldn’t answer our questions with any degree of specificity, which speaks to how rogue DOGE’s operation is. And even though he committed to oversight to help answer our constituents’ questions, we’ve not yet received a response from him regarding that commitment. 

    It gives us no comfort that the Trump Administration appears to be seeking to mollify the uproar from the American people by claiming to have granted DOGE read-only access to these payment systems. The reality is they were forced to limit access by a federal court, and DOGE officials could already have our sensitive information. The Trump Administration and DOGE’s actions – ignoring Congress’ authority over previously approved hundreds of millions of funds and threatening to ignore rulings by the courts – have pushed our country to the brink of a constitutional crisis.   

    As members of the House Ways and Means Committee, which is responsible for oversight of the Treasury Department, we are calling for our Republican colleagues to work with us to investigate. And the Department of Justice must put aside Trump’s political retribution agenda and prosecute any crimes that are found to have taken place. 

    Checks and balances are a constitutional responsibility to restrain an overzealous branch of government. We refuse to stand by while Trump and Musk test the limits of our democracy. 

    While the judicial branch process lawsuits challenging Musk and DOGE’s actions and access at Treasury, we will fight to keep Americans’ sensitive data private, and protect the payment systems that Americans depend on. 

    House Democrats only need three Republican members to join us in supporting our Taxpayer Data Protection Act to force a vote on the House Floor. So far, none have.  But we will keep fighting to pursue accountability, get answers, and aggressively push for transparency. And we may get into some good trouble to win those fights.

    Click here for the full opinion piece.

    Click here for Reps. Chu, Moore’s letter to Speaker Johnson on Ways & Means oversight of DOGE.

    Click here for a read-out of the initial meeting between Reps. Chu, Moore and the Speaker.

    MIL OSI USA News –

  • MIL-OSI USA: Rep. Mike Levin, Medical Providers & Patients Demand No Cuts to Medicaid Funding

    Source: United States House of Representatives – Congressman Sander Levin (9th District of Michigan)

    February 18, 2025

    Congressional Republicans’ Budget Proposal Would Slash Trillions from Medicaid for Tax Cuts to the Wealthiest Americans

    Vista, CA– Today, Rep. Mike Levin (CA-49), medical providers, and patients with Medi-Cal demanded that Congressional Republicans and the Trump Administration halt proposals to cut Medicaid funding and endanger health care services for millions of Americans.

    Congressional Republicans’ recent budget proposal, which is slated to be voted on by the full House of Representatives in the coming weeks, would slash trillions of dollars from Medicaid in order to give tax cuts to the wealthiest Americans. This budget proposal would threaten health care coverage for 80 million adults and children across the country, force community health centers to cut services or close, and leave hospitals to struggle to take care of patients. In the 49th Congressional District, 82,062 people on Medicaid are at risk of losing their health care under Congressional Republicans’ budget plans. This includes 32,896 children under the age of 19 and 9,892 seniors over 65 in the district.

    “We don’t have to guess what happens when Medicaid funding is slashed. We’ve seen it before. These proposed cuts would hit Vista Community Clinic and health centers like it the hardest. Clinics could be forced to lay off staff, cut programs, and reduce the number of patients they can treat. Patients could lose access to preventative care, end up in emergency rooms, and face skyrocketing medical bills,” said Rep. Levin. “Congressional Republicans want to cut Medicaid to pay for massive tax breaks to the ultrawealthy and giant corporations. They are telling working families, seniors, and people with disabilities that it is OK for them to get sicker so that billionaires like Elon Musk can get even richer.”

    Rep. Levin highlighted several dangerous parts of Congressional Republicans’ plans to attack Medicaid and health care that would directly impact California.

    One of the most dangerous parts is the attack on the Federal Medical Assistance Percentage, or FMAP. FMAP is the formula that determines how much federal funding California gets for Medicaid. Currently, the federal government covers 50% of California’s Medicaid costs, meaning for every dollar the state spends, the federal government matches it with another dollar. This allows California to provide health care for millions of residents, including the one in three Californians who rely on Medi-Cal. Congressional Republicans want to slash FMAP funding and force the state either to fill the funding gap or cut health care services.

    Congressional Republicans are also pushing per capita caps on Medicaid, which would limit federal funding without consideration for need for care or population growth. This would place an arbitrary limit on California, forcing the state to cut services.

    Rep. Levin also raised alarms about the so-called “Department of Government Efficiency,” or DOGE, potentially interfering with sensitive Medicare and Medicaid data. This raises concern that our country’s health care system could be dismantled by the unelected Elon Musk.

    As a member of the powerful House Appropriations Committee, Rep. Levin is fighting to ensure Medicaid is fully funded, community health centers have the resources they need to treat patients, and that the Trump Administration is held accountable for any attempts to strip away health care.

    “Today’s press conference was a powerful reminder of what’s at stake for millions of Californians who rely on Medi-Cal. We heard firsthand how essential this program is in ensuring access to healthcare for individuals and families who might otherwise go without. Cutting Medi-Cal and MediCare funding isn’t just a policy decision, it’s a decision that impacts real people, their health, and their futures. We are grateful to Congressman Levin for standing with us in the fight to protect Medi-Cal, and we urge all policymakers to prioritize the well-being of our communities by keeping this vital program fully funded,” said Fernando Sañudo, Chief Executive Officer of Vista Community Clinic

    “Protect Our Care is so thankful for health care champions like Representative Levin who are standing up to defend Medi-Cal from GOP cuts. Trump and Elon Musk want tax cuts for the richest Americans paid for by cutting health care for millions of Americans. We can’t let them win.,” said Nicole Serrano, Political Director, Protect Our Care California.

    MIL OSI USA News –

  • MIL-OSI USA: Speaker Johnson Delivers Keynote Address to Alliance for Responsible Citizenship Conference

    Source: United States House of Representatives – Representative Mike Johnson (LA-04)

    WASHINGTON — Yesterday, Speaker Johnson delivered the keynote address at the 2025 Alliance for Responsible Citizenship (ARC) global conference in London, England. Appearing remotely to the more than 4,000-person audience, Speaker Johnson warned against the threat of “soft despotism,” and encouraged leaders to “be prepared to steer their aims towards policies and mediating institutions that reduce government dominion over our lives and advance prosperity.”

    “The only way to reverse this trend into further technocratic tyranny is to recommit to our foundational principles and live them out. What made the West, and what made our nations great, must now guide us once again,” Speaker Johnson said.

    Watch Speaker Johnson’s full address here.

    Below are excerpts from the address:

    “Here in America, as you are all seeing, we’re in the midst of a great change. In our national election a few months ago, our people delivered truly a mandate to make our country great again and to restore common sense in our public policy. Here and elsewhere, the radical big government progressives pushed that pendulum too far and too aggressively to the left, and the people rose up and said, enough. And now that pendulum is beginning to swing back to the center, and we’ve been given a once-in-a-generation opportunity to demonstrate now to our nation and the new demographics of voters who have come into our Republican Party for the first time, that it really is our conservative policies that lead to human flourishing, because they’re better for individuals and families and communities, individual states, and our nation as a whole,” Speaker Johnson said. 

    “In America, we still believe in peace through strength, and we still understand our role in the world. A strong America is good for free people everywhere because it helps to keep the terrorists and the tyrants at bay. But to maintain our strength and leadership, our foreign policy must be centered on our own national interest. It’s a matter of common sense for each of our countries to acknowledge that we must each take care of our own houses before we help take care of the neighborhood,” Speaker Johnson said. “As we seek to make America safer, stronger, and more prosperous, we will encourage all our friends and allies to do the same in and for their own countries. The survival of the West will depend upon that. And this is how we will turn the tides, by refocusing and marshalling our many shared interests toward our own national interest.”

    “This trend is reflected in political apathy and the growing tendency of people to simply submit to governments whose laws have become so offensively intrusive and whose centers of power feel distant and inaccessible. If there is nothing to fight for, then why fight at all, Speaker Johnson said. ”This is the vision of the left, for the people to feel so powerless that they give in and just accept their fate as mindless vassals under the safe protection of the state. And the only way to reverse this trend into further technocratic tyranny is to recommit to our foundational principles and live them out. What made the West and what made our nations great must now guide us once again.

    Below is the full transcript of Speaker Johnson’s address as delivered: 

    Thank you, my dear friend, the Baroness. Good morning. I wish I could be there with all of you in person, and I am truly sorry that I’ve been prevented from making the trip now for the second year in a row. I was unexpectedly elected Speaker of the House just days before the inaugural ARC Conference in October 2023, and I had to send my last-minute regrets. And now, just days before this second conference that I had so much been looking forward to, I found myself once again with late breaking developments in Congress, this time involving our budget and government funding that simply doesn’t allow me to leave the country. But there’s no place I’d rather be than there with you this week as we had long planned, but I’m glad to at least have this opportunity to join you remotely. 

    We find ourselves in a very unique and consequential moment in history here in America and throughout the West. And I believe the timing of the ARC Conference is truly providential. I joined the ARC Advisory Board two years ago because I was so intrigued by the idea of bringing together so many thought leaders and change makers from around the world to, as we determined, ‘shape a hope-filled vision for the future.’ My friends, there really is great reason for our hope. 

    Here in America, as you are all seeing, we’re in the midst of a great change. In our national election a few months ago, our people delivered truly a mandate to make our country great again and to restore common sense in our public policy. Here and elsewhere, the radical big government progressives pushed that pendulum too far and too aggressively to the left, and the people rose up and said, enough. And now that pendulum is beginning to swing back to the center, and we’ve been given a once-in-a-generation opportunity to demonstrate now to our nation and the new demographics of voters who have come into our Republican Party for the first time, that it really is our conservative policies that lead to human flourishing, because they’re better for individuals and families and communities, individual states, and our nation as a whole.

    In recent decades, our government had become too large, too inefficient, and too powerful. And in too many cases, it had also been weaponized and corrupted. That is precisely what the framers of our Constitution feared and what political philosophers and historians over the centuries have warned against. Almost two centuries ago, Alexei de Tocqueville wrote of big government: “After having thus successfully taken each member of the community in its powerful grasp and fashioned him at will, the supreme power then extends its arm over the whole community. It covers the surface of society with a network of small, complicated rules, minute and uniform, which the most original minds and the most energetic characters cannot penetrate to rise above the crowd.”

    De Tocqueville noted that “such a power does not tyrannize, but it compresses, extinguishes, and stupefies a people till each nation is reduced to nothing better than a flock of timid and industrious animals of which the government is the shepherd.” Tocqueville called it soft despotism, a condition in which citizens voluntarily and gradually just surrender their rights and independence to the government, lured by the promise of security and stability. This kind of despotism doesn’t arrive through violence or open tyranny. Instead, it comes quietly, insidiously, through comfort and convenience. 

    Tocqueville warned of a future where citizens would become passive spectators in their own democracy, willful stewards of their carefully managed decline. Soft despots don’t break down your door and confiscate your weapons, they don’t arrest you in public for criticizing the government, and they don’t station soldiers on street corners to ensure your compliance. Soft despots ensure your compliance through normal democratic channels. 

    Regulations? Oh, they keep you safe. 

    Censorship? That’s to protect you from misinformation. 

    Surveillance? That’s necessary for your security, see.

    Dependence? It offers you stability. 

    And we see these forces at work in our society today. The architects of this soft despotism have taken shape too often as government bureaucrats and big tech and corporate elites, international institutions, media gatekeepers, and the welfare state. And their benevolent rule has given us nations without borders, grossly inefficient bureaucracies, a culture of surveillance, and a citizenry that is apathetic, distracted, and dependent. The dynamics are the same around the world. Whether you’re in Detroit or Manchester, Lyon or Berlin, the supreme power of big government has extended its arm over all of us. And the casualties of the soft despotism that’s taken hold have been the loss of our heritage, our national identities, our patriotism, and our prosperity. 

    In this civilizational moment, as our friend Oz Guinness describes it, will we choose renewal, replacement, or decline? In the U.S., we have just embarked on a new path of renewal. We are determined to bring about a new golden age in America, as President Trump says, and we are convinced that we can, if we return to the timeless foundational principles which lead to human flourishing. 

    The challenge we have today is ensuring that the current generations of our countrymen recognize and recommit to those principles. And what are they? In less than 17 months, the U.S. will celebrate the 250th anniversary of our Declaration of Independence. As G.K. Chesterton observed, “America was founded on a creed that is set forth with dogmatic and even theological lucidity,” he said. From. the second paragraph of the Declaration, “We hold these truths to be self-evident, that all men are created equal, they are endowed by their Creator with certain inalienable rights, that among these are life, liberty, and the pursuit of happiness, that to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed.”

    Of the 56 men who signed the Declaration, almost all of them professed to be Christians, and at least half of them had received formal religious training in their education. Having studied the Bible, they recognize that we are not simply born equal, but rather created equal and that it is our Creator who endows us with our rights and not the state. They also recognize that all of us are made in the image of our Creator and thus every single person has an inestimable dignity and value. And that value is not related in any way to the color of our skin or where we live or what our talents are or anything else. Our value is inherent because it is given to us by God. 

    The founders of our country also understood that man has a fallen nature and that fallen men with power and no accountability can become a serious problem. Because power corrupts and as Lord Acton observed, “absolute power corrupts absolutely.” So, our system of government was meticulously designed with careful safeguards, like the separation of powers and checks and balances. And our founders emphasized that a government of the people, by the people, and for the people, could not long survive without a vibrant practice of religious faith, because they understood that is a necessary element to foster personal responsibility and to keep a general moral consensus among the people. A healthy, self-governing society relies on the moral character of its citizens. 

    It’s ironic, but on this day in America, we’re observing one of our 11 federal holidays, and this one’s known as President’s Day, which originally began as an annual celebration of George Washington’s birthday. In his farewell address, the father of our country noted this. He said, “Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports.” Our second president, John Adams, reminded his countrymen that the American Constitution was, “made only for a moral and religious people. It is wholly inadequate to the government of any other.” The founders emphasized the importance of balancing individual liberty with personal responsibility. And our fourth president, James Madison, argued that every citizen should put the nation above their own self-interest. 

    The timeless virtues that are rooted in the Judeo-Christian tradition served as the foundation of America and of all Western civilization. But in recent decades, changes have happened rapidly, and left-wing social movements have advanced very aggressively. Many world leaders, convinced that national borders were obstacles to unity and social progress, sought to dismantle them in favor of global integration. 

    But a key downside to the new global order is that it ultimately led to a devaluing of local communities and a weakening of national identity, which was replaced instead by a divisive new racial, sexual, and gender-based identity. If Americans aren’t American anymore, and Brits aren’t British anymore, and Germans aren’t German anymore, then naturally something else will fill the void. If everyone is a citizen of the world, then no one is really accountable any longer to their own nation or to their own local community. 

    Unfortunately, these ideas have taken hold. We have heard a little bit about polls this morning. Here’s a few more. 50% of Germans under the age of 30 say they feel more European now than German. Only 40% of Americans say they are extremely proud to be American. Only one in five British adults consider themselves to be very patriotic. This trend is reflected in political apathy and the growing tendency of people to simply submit to governments whose laws have become so offensively intrusive and whose centers of power feel distant and inaccessible. If there is nothing to fight for, then why fight at all? 

    This is the vision of the left, for the people to feel so powerless that they give in and just accept their fate as mindless vassals under the safe protection of the state. And the only way to reverse this trend into further technocratic tyranny is to recommit to our foundational principles and live them out. What made the West and what made our nations great must now guide us once again. 

    During his trip through America, Tocqueville marveled at what he said was, “The extreme skill with which the inhabitants of the United States succeed in proposing a common object for the exertions of a great many men and in inducing them voluntarily to pursue it.” Those neighbors and local volunteers joined together to found seminaries, hospitals, prisons, libraries, and schools. They built society together with their own hands. 

    In all of our shared history in the West, it has remained true that strong communities have formed a bulwark against tyranny. Strong mediating institutions ground us in the needs of our community and the outgrowth of these institutions formed the basis for a healthy, engaged citizenry. Edmund Burke called them “little platoons.” He was referring to the families and churches and civic organizations and community groups which began at the smallest, most local level. Burke argued this bottom-up voluntary approach to society would deepen our sense of duty and shared responsibility to one another and also act as an important safeguard against a distant state authority. 

    While the spirit of voluntary association is currently on life support throughout the West, it is not dead. We see it in America every time there is a natural disaster. I’ve participated in this as a local citizen, and I’ve witnessed it often as an elected official.

    This past September, Hurricane Helene made landfall in the United States. It was an historic storm. For five straight days, torrential rains and 100-mile-per-hour winds swept across the Atlantic, devastating homes and communities and businesses. It hit western North Carolina the hardest. As the Speaker of the House, tasked with ultimately passing the relief efforts through Congress, I wanted to take a trip to ground zero to witness the scope of this destruction and meet with the individuals whose aid our aid would eventually impact. 

    One of our first visits in the state was to the First Baptist Church in Swannanoa, North Carolina. When we arrived, we were met with what looked like a military-grade aid station. It was so impressive. There were doctors and nurses and carpenters and chefs and scores of volunteers. The storm knocked out almost all of their cell and internet service throughout the entire region. So, I asked the pastor’s wife at that church, how did all this come together? 

    She informed me that an elderly woman in the community, who had recently purchased an entire cow to store in her deep freezer for the winter months, had lost her home in the storm, but somehow the deep freezer had survived. She was worried that the hundreds of pounds of meat in her freezer would spoil without electricity, so she loaded it into a vehicle and dropped it off somewhere she knew it would go to good use, and that was the local church. 

    Neither the pastor nor his wife were trained butchers, but they knew they had hungry mouths in the community, so they turned their sanctuary into a makeshift butcher shop and started cooking for the surrounding people. As the smell of grilled beef wafted above the small town, citizens showed up. And they continued to show up. And from that point forward, the church became the central hub for disaster relief, organized not by the state or the federal government, but by local neighbors, the community. It filled in where the bureaucracy could not. 

    In times of disaster, local organizations are often the first to respond, well before the broken and bureaucratic federal agencies ever arrive. And they often have a much higher mission success rate, by the way. In my home state of Louisiana, organizations like the Cajun Navy, an interconnected group of volunteers with boats and trucks, have saved thousands of Louisianians during storms like Hurricane Katrina. 

    I tell these stories because they serve as evidence that strong communities, built on the spirit of voluntary association and shared responsibility are still very much alive. But it is a shame that it takes a natural disaster for us to recognize their value. This level of civic engagement should be the rule and not the exception, because the same principles that drive effective local action in times of crisis can also inform national policy and global leadership. 

    In the last line of the Declaration of Independence, our founders wrote the following, “For the support of this declaration, with a firm reliance on the protection of divine providence, we mutually pledge to each other our lives, our fortunes, and our sacred honor.” America’s founders were willing to die for the cause of liberty, and this acknowledgment in our nation’s birth certificate signaled a commitment that America would place our national interest over our individual interests, and those of foreign nations. 

    While we have gradually lost sight of this concept, the new American government is proof positive that we can rekindle that spirit once again. On this national holiday of ours, I’ll quote the president that I most fondly remember from my youth, and that’s Ronald Reagan. He reminded us of this famous admonition. He said, “We cannot escape our destiny, nor should we try to do so. The leadership of the free world was thrust upon us two centuries ago in that little hall in Philadelphia. In the days following World War II, when the economic strength and power of America was all that stood between the world and the return of the Dark Ages, Pope Pius XII said, the American people have a great genius for splendid and unselfish actions. 

    Into the hands of America, God has placed the destinies of an afflicted mankind.” American leadership clearly did help bring about decades of peace and economic growth and prosperity for the Western democracies. 

    In America, we still believe in peace through strength, and we still understand our role in the world. A strong America is good for free people everywhere because it helps to keep the terrorists and the tyrants at bay. But to maintain our strength and leadership, our foreign policy must be centered on our own national interest. It’s a matter of common sense for each of our countries to acknowledge that we must each take care of our own houses before we help take care of the neighborhood. As we seek to make America safer, stronger, and more prosperous, we will encourage all our friends and allies to do the same in and for their own countries. The survival of the West will depend upon that. And this is how we will turn the tides, by refocusing and marshalling our many shared interests toward our own national interest. 

    Recent elections in places France, Italy, like Netherlands and Germany signal that millions of freedom-loving people around the world share our concerns about unchecked power and the erosion of national sovereignty. As leaders in government, academia, media, and the arts, we must be prepared to steer their aims toward policies and mediating institutions that reduce government dominion over our lives and advance prosperity. In short, we must not let this civilizational moment pass us by. 

    So how do we do it? As leaders, we should be working at every level to shift control away from established power centers and back to the people. The local school board will not be nearly as powerful if there is a thriving parent-teacher association holding them accountable. The county commission’s grip on zoning laws is weakened when neighborhoods take control of development initiatives. And organizations like the World Economic Forum lose their dominance when organizations like our ARC seek to challenge their hegemony. 

    History has proven that centralized governments thrive when their subjects are powerless and indifferent. If we want to protect our rights from tyranny, we have to focus, work, and build closest to home. And we must hold our elected leaders accountable. 

    President Reagan reminded us of another thing. He said, “Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on so that they will know the same liberty, opportunity, and security that we have too often taken for granted.”

    This is our civilizational moment. The West is finally awakening once again. We have to seize this opportunity, and by God’s grace, we will. I hope you all enjoy this historic conference, and I thank you again for the opportunity to share with you this morning, and I so wish I was there in person. God bless you.

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    MIL OSI USA News –

  • MIL-OSI USA: Reschenthaler, Titus Reintroduce Bipartisan Bill to Repeal Excise Tax on Legal Sports Bets

    Source: United States House of Representatives – Congressman Guy Reschenthaler (PA-14)

    February 19, 2025

    WASHINGTON, D.C. – Chief Deputy Whip Guy Reschenthaler (R-PA) and Representative Dina Titus (D-NV), co-chairs of the bipartisan Congressional Gaming Caucus, reintroduced the Discriminatory Gaming Tax Repeal Act of 2025, legislation to repeal the 0.25% excise tax placed on all legal sports bets, known as the “handle tax.”

    “The U.S. gaming industry provides over one million jobs, including over 33,000 jobs in Pennsylvania, and generates more than 70 billion dollars for state and local governments throughout the country,” said Reschenthaler. “Unfortunately, outdated tax codes and burdensome regulations penalize legal operators and incentivize illegal activity. The Discriminatory Gaming Tax Repeal Act of 2025 will ensure the gaming industry can support good-paying jobs and promote economic growth in southwestern Pennsylvania and across the nation. I’m proud to join Gaming Caucus Co-Chair Titus in reintroducing this bipartisan legislation, and I urge our colleagues in the House to support it.”

    “The Discriminatory Gaming Tax Repeal Act of 2025 repeals a tax that does nothing except penalize legal gaming operators for creating thousands of jobs in Nevada and 37 other states around the nation,” said Titus. “Illegal sportsbooks do not pay the .25% sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage. I once asked the IRS where the revenue from the handle tax went in the federal budget and they didn’t even know. It makes no sense to give the illegal market an edge over legal sports books with a tax the federal government does not even track.”

    Pennsylvania ranks second in the nation for total gaming revenue generated, grossing $5.86 billion in 2023. The state also brought in $2.3 billion in direct gaming tax revenue in 2023, the highest amount in the nation.

    The Congressional Gaming Caucus comprises a broad representation of more than 20 members of Congress from across the country. It serves as a platform to discuss federal policy issues related to the U.S. gaming industry and educate congressional colleagues on related regulatory and legislative matters.

    Reschenthaler and Titus also introduced this legislation in the 117th and 118th Congress.

    View the full bill here.

    MIL OSI USA News –

  • MIL-OSI USA: Casten Statement on Trump’s Power Grab Over FERC, SEC, Independent Agencies

    Source: United States House of Representatives – Representative Sean Casten (IL-06)

    February 19, 2025

    Washington, D.C. — U.S. Congressman Sean Casten (IL-06) released the following statement regarding President Donald Trump’s executive order to strip federal agencies, such as the Federal Energy Regulatory Commission (FERC) and the Securities and Exchange Commission (SEC), of their independence:

    “The president’s latest unlawful and unconstitutional executive order is a move straight out of the Project 2025 playbook that serves no other purpose than to bend independent agencies to his personal will, setting aside over a century of precedent that these agencies rise above politics and put the needs of the American people first.

    “Stripping an agency like FERC of its independence is a gift to fossil fuel companies that know they cannot financially compete with clean energy on their merits. The president has made exceedingly clear that he prioritizes the wants of energy producers over the needs of energy consumers. His actions will directly lead to higher energy costs for the American people while simultaneously driving up profits for his puppeteers in the oil and gas industry.

    “The SEC and other financial institutions have operated independently for decades, ensuring they are focused on safeguarding American investors, consumers, and our financial system. Forcing these agencies to gain approval from the White House before issuing rulemakings does nothing but protect the president’s personal interests while putting American’s hard-earned dollars at risk.”

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    MIL OSI USA News –

  • MIL-OSI USA: Congresswoman Schrier Introduces Bipartisan Legislation to Improve Public Health Preparedness

    Source: United States House of Representatives – Congresswoman Kim Schrier, M.D. (WA-08)

    WASHINGTON, D.C. –Congresswoman Kim Schrier, M.D. (WA-08) introduced the bipartisan Diagnostics Testing Preparedness Plan Act, which would facilitate the innovation and development of diagnostics between the private and public sectors during Public Health Emergencies. Congresswoman Schrier was joined in introducing this legislation by Representatives Miller-Meeks (IA-01), Carson (IN-07), and Crenshaw (TX-02). 

    “Diagnostics are an essential part of public health preparedness and, as was exemplified in the COVID-19 Pandemic when we struggled to provide the testing required to slow the spread of disease while South Korea was doing thousands of drive-thru tests daily, diagnostic testing is especially crucial during a public health emergency,” said Congresswoman Schrier, M.D. “This commonsense, bipartisan bill will improve our clinical and diagnostic laboratory testing capacity, enhance public-private partnerships, and strengthen our overall public health preparedness against illnesses ranging from the seasonal flu to new, emerging threats.”

    The Diagnostics Testing Preparedness Plan Act would require the Department of Health and Human Services (HHS) to develop a strategic plan that supports the rapid deployment of diagnostic tests during public health emergencies. Specifically, HHS would develop and periodically update a plan for rapid development, procurement, and distribution of diagnostic tests during public health emergencies, including laboratory and at-home tests. The plan must promote collaboration among government agencies and private sector stakeholders. 

    “From development to distribution, it is crucial to have a comprehensive plan for diagnostic and clinical lab testing capacities during a public health emergency,” said Dr. Miller-Meeks. “During the COVID-19 pandemic, we saw how critical diagnostic tests were for the public health response. As a physician, I am proud to sponsor this bipartisan bill to ensure the U.S. has a robust response to future public health emergencies.”

    “Diagnostics play a role in every aspect of public health,” said Congressman Carson. “Whether it’s a bad flu season or the outbreak of a new infectious disease like the bird flu, our bill will ensure my district and cities across the country are better coordinated and better prepared to tackle the world’s most serious health problems. I’m honored to work with Roche Diagnostics in my home district and with my colleagues across the aisle on this important bill.”

    MIL OSI USA News –

  • MIL-OSI United Kingdom: 25th anniversary of the Stockholm Declaration on Holocaust Remembrance

    Source: United Kingdom – Executive Government & Departments

    The International Holocaust Remembrance Alliance commemorates 25 years of the Stockholm Declaration and looks ahead to the future of Holocaust remembrance.

    Lord Pickles addressing the event to commemorate the 25th anniversary of the Stockholm Declaration on Holocaust Remembrance.

    On Monday 17 February, the UK presidency of the International Holocaust Remembrance Alliance (IHRA) welcomed Heads of Delegation from the 35 IHRA Member Countries to London for an event to commemorate the 25th anniversary of the Stockholm Declaration on Holocaust Remembrance. We also invited key figures who played an important role in shaping international activity on Holocaust education, remembrance and research over the past 25 years, as well as Holocaust survivors, representatives of the Jewish community and civil society.

    The UK government is committed to international co-operation to promote education, remembrance and research about the Holocaust. The UK was one of the founding signatories of the Stockholm Declaration in 2000, through which we pledged that the terrible events of the Holocaust would remain forever seared in our collective memory.  This commemoration event provided an important opportunity to reflect on what has been achieved in terms of promoting Holocaust remembrance, and look ahead to the future. 

    IHRA Chair and UK Special Envoy for Post-Holocaust Issues Lord Pickles reflected on the achievements of the past 25 years. He noted that the pledges made 25 years ago were still as relevant today as they were in 2000. Lord Pickles stressed the importance of safeguarding Holocaust sites, opening up Holocaust-related archives, and the promotion of testimony and Holocaust-related objects. He also drew attention to the dangers caused by ongoing Holocaust distortion, adding that the truth can never harm us.

    Former Prime Minister Tony Blair and former US President Bill Clinton both addressed the audience via video message. They reflected on their efforts, alongside former Swedish Prime Minister Göran Persson, to strengthen international co-operation on Holocaust remembrance 25 years ago and to bring together world leaders to sign the Stockholm Declaration and form the IHRA.

    Looking ahead to the future, participants emphasised that further collective action was needed to tackle the challenges of Holocaust distortion and the global rise of antisemitism. The role of emerging technologies was also highlighted as an area to explore, given the potential to harness artificial intelligence as a force for good in Holocaust education. All agreed that it was essential to continue to educate about the facts of the Holocaust, to ensure the truth is never forgotten.

    Updates to this page

    Published 20 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI Asia-Pac: Inflation at 2% in January

    Source: Hong Kong Information Services

    Overall consumer prices rose 2% year-on-year in January, a larger rate of increase than the 1.4% seen in December, the Census & Statistics Department announced today.

    Netting out the effects of the Government’s one-off relief measures, underlying inflation was 1.6%, also larger than that seen in December.

    Compared with a year before, price increases were recorded in January in the following categories: alcoholic drinks and tobacco; electricity, gas and water; transport; miscellaneous services; meals out and takeaway food; housing; miscellaneous goods; and basic food.

    Meanwhile, year-on-year decreases were logged in clothing and footwear, as well as durable goods.

    The Government commented that underlying consumer price inflation was modest in January, during which food prices registered mild year-on-year increases, and prices of energy-related items picked up moderately. At the same time, price pressures on other major components stayed broadly in check.

    As last year’s and this year’s Lunar New Year fell in different months, the Government said it would assess the underlying inflation situation at a later date, using the combined figures for January and February 2025.

    The Government also said it expects overall inflation to remain moderate in the near term.

    While domestic costs may be subject to some upward pressures, external price pressures should remain contained, it remarked, adding that uncertainties stemming from geopolitical tensions and trade conflicts warrant attention.

    MIL OSI Asia Pacific News –