Category: Taxation

MIL-OSI: Fidelity D & D Bancorp, Inc. Reports Second Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

DUNMORE, Pa., July 23, 2025 (GLOBE NEWSWIRE) — Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three and six-month periods ended June 30, 2025.

Unaudited Financial Information

Net income for the quarter ended June 30, 2025 was $6.9 million, or $1.20 diluted earnings per share, compared to $4.9 million, or $0.86 diluted earnings per share, for the quarter ended June 30, 2024. The $2.0 million, or 40%, increase in net income resulted primarily from a $2.8 million increase in net interest income coupled with a $0.8 million increase in non-interest income. This was partially offset by a $1.1 million increase in non-interest expense and a $0.6 million increase in the provision for income tax.

For the six months ended June 30, 2025, net income was $12.9 million, or $2.23 diluted earnings per share, compared to $10.0 million, or $1.73 diluted earnings per share, for the six months ended June 30, 2024. The $2.9 million, or 29%, increase in net income stemmed from the $4.9 million increase in net interest income and $1.1 million increase in non-interest income. This was partially offset by a $2.0 million increase in non-interest expense and a $1.0 million increase in the provision for income tax.

“I am pleased to share that we delivered another strong quarter, underscoring the continued momentum of our strategy and the dedication of our entire team,” stated Daniel J. Santaniello, President and Chief Executive Officer. “Second quarter 2025 net income increased 40% over last year’s second quarter to $6.9 million, with diluted earnings per share rising to $1.20. This performance was driven by a 19% increase in net interest income—reflecting our disciplined loan portfolio expansion and enhanced yields as well as a 16% rise in non-interest income.

Year-to-date, net income has grown 29% to $12.9 million, a clear testament to the strength of our relationship-based deposit strategy and prudent expense management. Our asset quality remains solid, and we further strengthened our capital position, with shareholders’ equity up 7% providing a strong foundation for continued growth in the second half of 2025.

These results reflect more than financial performance—they speak to the strength of our culture, our commitment to our clients, and our deep roots in the communities we serve. I want to sincerely thank our talented and dedicated team of bankers, whose expertise and focus on service excellence drive our success every day. Together, we continue to build a stronger, more resilient financial institution—one that delivers meaningful value to our bankers, clients, shareholders, and communities.”

Consolidated Second Quarter Operating Results Overview

Net interest income was $17.9 million for the second quarter of 2025, a 19% increase over the $15.1 million earned for the second quarter of 2024. The $2.8 million increase in net interest income resulted from the increase of $3.7 million in interest income primarily due to a $213.6 million increase in the average balance of interest-earning assets and a 19 basis point increase in fully-taxable equivalent (“FTE”) (non-GAAP measurement) yield. The loan portfolio had the most significant impact, producing a $2.8 million increase in FTE interest income from $124.6 million in higher quarterly average balances and an increase of 24 basis points in FTE loan yield. Additionally, the Company experienced an increase of $1.1 million in interest earned from interest-bearing deposits with other financial institutions from $102.0 million in higher average balances. Slightly offsetting the higher interest income, there was a $0.9 million increase in interest expense due to a $178.8 million quarter-over-quarter increase in average interest-bearing liability balances. The increase was due to growth of $208.3 million in average interest-bearing deposit balances. However, this deposit growth was partially offset by a $28.5 million decrease in average short-term borrowings.

The FTE yield on interest-earning assets was 4.77% for the second quarter of 2025, an increase of 19 basis points from the 4.58% for the second quarter of 2024. The overall cost of interest-bearing liabilities was 2.52% for the second quarter of 2025, a decrease of 6 basis points from the 2.58% for the second quarter of 2024. The cost of funds decreased 1 basis point from 1.96% to 1.95% for the second quarters of 2024 and 2025, respectively. The Company’s FTE net interest spread was 2.25% for the second quarter of 2025, an increase of 25 basis points from 2.00% recorded for the second quarter of 2024. FTE net interest margin increased to 2.92% for the three months ended June 30, 2025 from 2.71% for the same period of 2024 primarily due to the growth in higher yielding taxable commercial loans.

For the three months ended June 30, 2025, the provision for credit losses on loans was $300 thousand and the provision for unfunded commitments was $20 thousand compared to a $275 thousand provision for credit losses on loans and a $140 thousand provision for credit losses on unfunded loan commitments for the three months ended June 30, 2024. For the three months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $155 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the three months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower levels of unfunded commitments during the quarter due to increased utilization, specifically commercial construction commitments, compared to the year earlier period.

Total non-interest income increased $0.8 million, or 16%, to $5.4 million for the second quarter of 2025 compared to $4.6 million for the second quarter of 2024. The increase in non-interest income was primarily attributed to increases of $0.2 million in trust fees, a $0.2 million BOLI death benefit, $0.2 million in loan service charges, and $0.1 million in interchange fees.

Non-interest expenses increased $1.1 million, or 8%, for the second quarter of 2025 to $14.7 million from $13.6 million for the same quarter of 2024. The increase in non-interest expenses was primarily due to the increases in salaries and benefits expense of $0.8 million, premises and equipment expense of $0.2 million, and advertising expense of $0.2 million. These increases were partially offset by a $0.2 million decrease in professional services for the three months ended June 30, 2025 compared to the same period of 2024.

The provision for income taxes increased $0.6 million during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to a $2.6 million increase in income before taxes.

Consolidated Year-To-Date Operating Results Overview

Net interest income was $35.0 million for the six months ended June 30, 2025 compared to $30.1 million for the six months ended June 30, 2024. The $4.9 million increase in net interest income resulted from the increase of $6.4 million in interest income primarily due to a $181.0 million increase in the average balance of interest-earning assets and a 20 basis point increase in FTE yield. On the asset side, the loan portfolio interest income growth resulted from producing $5.3 million more in interest income from an increase of 25 basis points in FTE loan yields on $120.5 million in higher average balances. Additionally, the Company experienced an increase of $1.5 million in interest earned from interest-bearing deposits with other financial institutions from $71.6 million in higher average balances. The increase in interest income was partially offset by a decrease of $0.3 million in interest earned on the investment portfolio due to decreases of 6 basis points in yield and $11.3 million in average balances. On the funding side, total interest expense increased by $1.5 million primarily due to an increase in interest expense paid on deposits of $2.5 million from a 2 basis points higher rates paid on a $194.0 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $1.0 million for the six months ended June 30, 2025 compared to the same period in 2024.

The overall cost of interest-bearing liabilities was 2.51% for the six months ended June 30, 2025 compared to 2.54% for the six months ended June 30, 2024. The cost of funds decreased 1 basis point to 1.94% for the six months ended June 30, 2025 from 1.95% from the same period of 2024. The FTE yield on earning assets was 4.75% for the six months ended June 30, 2025, an increase of 20 basis points from the 4.55% year-to-date June 30, 2024. The Company’s FTE net interest spread was 2.24% for the six months ended June 30, 2025, an increase of 23 basis points from the 2.01% recorded for the same period of 2024. FTE net interest margin increased by 21 basis points to 2.91% for the six months ended June 30, 2025 from 2.70% for the same 2024 period primarily due to the increase in yields earned on loans and leases outpacing the rates paid on interest-bearing deposits.

For the six months ended June 30, 2025, the provision for credit losses on loans was $755 thousand and the provision for credit losses on unfunded loan commitments was a net benefit of $65 thousand compared to a $400 thousand provision for credit losses on loans and a $90 thousand provision for credit losses on unfunded commitments for the six months ended June 30, 2024. For the six months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $215 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the six months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower growth in unfunded commitments during the period due to increased utilization, specifically commercial construction commitments, compared to the year earlier period.

Total non-interest income for the six months ended June 30, 2025 was $10.3 million, an increase of $1.1 million, or 12%, from $9.2 million for the six months ended June 30, 2024. The increase was primarily due to $0.3 million higher fees from trust fiduciary activities. The Company also had $0.2 million more non-interest income resulting from an increase in interchange fees, a $0.2 million BOLI death benefit, and an increase of $0.2 million in service charges on commercial loans. During the first half of 2025, gains of $0.5 million on the sale of a commercial loan and $0.3 million from the sale of a property were offset by $0.8 million in losses recognized on the sale of securities.

Non-interest expenses increased to $29.3 million for the six months ended June 30, 2025, an increase of $2.0 million, or 7%, from $27.3 million for the six months ended June 30, 2024. Salaries and benefits expense increased $1.3 million due to an increase in bankers, group insurance costs, and banker incentives in the first half of 2025, compared to the same period in 2024. Additionally, the Company saw an increase of $0.5 million in advertising and marketing expenses primarily due to a $0.3 million increase in Neighborhood Assistance Program donations from which the Company recognized $0.2 million in additional tax credits causing a corresponding decrease in PA shares tax expense. There was also an increase of $0.5 million in premises and equipment expense primarily due to higher costs for software licenses, subscriptions, and maintenance. The increases were partially offset by $0.3 million less in professional services expense.

The provision for income taxes increased $1.0 million during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a $3.9 million increase in income before taxes and $0.2 million less in tax credits.

Consolidated Balance Sheet & Asset Quality Overview

The Company’s total assets had a balance of $2.7 billion as of June 30, 2025, an increase of $114.0 million from December 31, 2024. The increase resulted from $82.1 million in growth in cash and cash equivalents as of June 30, 2025 compared to December 31, 2024. The loans and leases portfolio increased $37.9 million over the same period. Asset growth was offset by a decrease of $11.4 million in the investment portfolio primarily due to the sale of $17.5 million in available-for-sale securities and $11.3 million in paydowns partially offset by $14.7 million in purchases of securities.

During the same time period, total liabilities increased $100.0 million, or 4%. Deposit growth of $94.5 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $37.2 million in money market deposits, $17.2 million in interest-bearing checking accounts, $14.4 million in time deposits, and $1.6 million in savings and clubs. The deposit growth is primarily driven by growth in existing account balances from the relationship building strategy along with targeted direct marketing campaigns driving new client acquisitions and active management of promotional and retention rates. Additionally, the Company experienced an increase of $24.1 million in non-interest-bearing checking accounts. As of June 30, 2025, the ratio of insured and collateralized deposits to total deposits was approximately 75%.

Shareholders’ equity increased $13.9 million, or 7%, to $217.9 million at June 30, 2025 from $204.0 million at December 31, 2024. The increase was caused by $8.3 million higher retained earnings from net income of $12.9 million plus a $4.9 million, after tax, improvement in accumulated other comprehensive income from lower net unrealized losses recorded on available-for-sale securities, partially offset by $4.7 million in cash dividends paid to shareholders. An additional $0.9 million was recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense. At June 30, 2025, there were no credit losses on available-for-sale and held-to-maturity debt securities. Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Company remains well capitalized with Tier 1 capital at 9.16% of total average assets as of June 30, 2025. Total risk-based capital was 14.72% of risk-weighted assets and Tier 1 risk-based capital was 13.57% of risk-weighted assets as of June 30, 2025. Tangible book value per share was $34.25 at June 30, 2025 compared to $31.98 at December 31, 2024. Tangible common equity was 7.38% of total assets at June 30, 2025 compared to 7.16% at December 31, 2024.

Asset Quality

Total non-performing assets were $3.5 million, or 0.13% of total assets, at June 30, 2025, compared to $7.8 million, or 0.30% of total assets, at December 31, 2024. Past due and non-accrual loans to total loans were 0.41% at June 30, 2025 compared to 0.71% at December 31, 2024. Net charge-offs to average total loans were 0.05% at June 30, 2025 compared to 0.03% at December 31, 2024.

About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank

Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“Fidelity Bank”). Fidelity Bank continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products and services. Part of the Company’s vision is to serve as the best bank for the community, which was accomplished by having provided over 5,960 hours of volunteer time and over $1.3 million in donations to non-profit organizations directly within the markets served throughout 2024. Fidelity Bank’s deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The Company’s non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures should be supplemental to GAAP used to prepare the Company’s operating results and should not be read in isolation or relied upon as a substitute for GAAP measures. Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.

Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent (“FTE”), in order to calculate certain ratios within this document. This treatment allows a uniform comparison among yields on interest-earning assets. Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2025 and 2024.

Forward-looking statements

Certain of the matters discussed in this press release constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” and similar expressions are intended to identify such forward-looking statements.

The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:

	■	local, regional and national economic conditions and changes thereto;
	■	the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy;
	■	the risks of changes and volatility of interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities and interest rate protection agreements, as well as interest rate risks;
	■	securities markets and monetary fluctuations and volatility;
	■	disruption of credit and equity markets;
	■	impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements, regulations and rules;
	■	governmental monetary and fiscal policies, as well as legislative and regulatory changes;
	■	effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions;
	■	the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
	■	the impact of new or changes in existing laws and regulations, including laws and regulations concerning taxes, banking, securities and insurance and their application with which the Company and its subsidiaries must comply;
	■	the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters;
	■	the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet;
	■	the effects of economic conditions of any other pandemic, epidemic or other health-related crisis such as COVID-19 and responses thereto on current customers and the operations of the Company, specifically the effect of the economy on loan customers’ ability to repay loans;
	■	the effects of bank failures, banking system instability, deposit fluctuations, loan and securities value changes;
	■	technological changes;
	■	the interruption or breach in security of our information systems, continually evolving cybersecurity and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses;
	■	acquisitions and integration of acquired businesses;
	■	the failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various financial assets and liabilities;
	■	acts of war or terrorism; and
	■	the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release. The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

For more information please visit our investor relations web site located through www.bankatfidelity.com.

FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands)
At Period End:	June 30, 2025			December 31, 2024
Assets
Cash and cash equivalents	$	165,495		$	83,353
Investment securities		545,821			557,221
Restricted investments in bank stock		4,240			3,961
Loans and leases		1,837,477			1,800,856
Allowance for credit losses on loans		(19,976	)		(19,666	)
Premises and equipment, net		40,097			35,914
Life insurance cash surrender value		58,849			58,069
Goodwill and core deposit intangible		20,364			20,504
Other assets		46,208			44,404

Total assets	$	2,698,575		$	2,584,616

Liabilities
Non-interest-bearing deposits	$	558,074		$	533,935
Interest-bearing deposits		1,877,254			1,806,885
Total deposits		2,435,328			2,340,820
Short-term borrowings		10			–
Secured borrowings		6,134			6,266
Other liabilities		39,191			33,561
Total liabilities		2,480,663			2,380,647

Shareholders’ equity		217,912			203,969

Total liabilities and shareholders’ equity	$	2,698,575		$	2,584,616

Average Year-To-Date Balances:	June 30, 2025			December 31, 2024
Assets
Cash and cash equivalents	$	129,527		$	55,773
Investment securities		551,906			557,537
Restricted investments in bank stock		4,066			3,960
Loans and leases		1,822,654			1,741,349
Allowance for credit losses on loans		(20,189	)		(19,391	)
Premises and equipment, net		35,839			35,580
Life insurance cash surrender value		58,503			56,455
Goodwill and core deposit intangible		20,423			20,641
Other assets		42,950			41,755

Total assets	$	2,645,679		$	2,493,659

Liabilities
Non-interest-bearing deposits	$	540,320		$	527,825
Interest-bearing deposits		1,852,895			1,697,529
Total deposits		2,393,215			2,225,354
Short-term borrowings		16			32,446
Secured borrowings		6,194			6,830
Other liabilities		35,497			32,471
Total liabilities		2,434,922			2,297,101

Shareholders’ equity		210,757			196,558

Total liabilities and shareholders’ equity	$	2,645,679		$	2,493,659

FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Statements of Income (dollars in thousands)
	Three Months Ended						Six Months Ended
	Jun. 30, 2025			Jun. 30, 2024			Jun. 30, 2025			Jun. 30, 2024
Interest income
Loans and leases	$	25,328		$	22,516		$	49,924		$	44,649
Securities and other		4,437			3,523			8,149			7,016

Total interest income		29,765			26,039			58,073			51,665

Interest expense
Deposits		(11,738	)		(10,459	)		(22,925	)		(20,400	)
Borrowings and debt		(98	)		(463	)		(186	)		(1,204	)

Total interest expense		(11,836	)		(10,922	)		(23,111	)		(21,604	)

Net interest income		17,929			15,117			34,962			30,061

Provision for credit losses on loans		(300	)		(275	)		(755	)		(400	)
Net (provision) benefit for credit losses on unfunded loan commitments		(20	)		(140	)		65			(90	)
Non-interest income		5,359			4,615			10,332			9,188
Non-interest expense		(14,710	)		(13,616	)		(29,264	)		(27,306	)

Income before income taxes		8,258			5,701			15,340			11,453

Provision for income taxes		(1,337	)		(766	)		(2,428	)		(1,460	)
Net income	$	6,921		$	4,935		$	12,912		$	9,993

	Three Months Ended
	Jun. 30, 2025			Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024
Interest income
Loans and leases	$	25,328		$	24,596		$	24,584		$	24,036		$	22,516
Securities and other		4,437			3,712			3,475			3,263			3,523

Total interest income		29,765			28,308			28,059			27,299			26,039

Interest expense
Deposits		(11,738	)		(11,187	)		(11,468	)		(11,297	)		(10,459	)
Borrowings and debt		(98	)		(88	)		(217	)		(571	)		(463	)

Total interest expense		(11,836	)		(11,275	)		(11,685	)		(11,868	)		(10,922	)

Net interest income		17,929			17,033			16,374			15,431			15,117

Provision for credit losses on loans		(300	)		(455	)		(250	)		(675	)		(275	)
Net benefit (provision) for credit losses on unfunded loan commitments		(20	)		85			85			(135	)		(140	)
Non-interest income		5,359			4,973			4,847			4,979			4,615
Non-interest expense		(14,710	)		(14,554	)		(14,395	)		(13,840	)		(13,616	)

Income before income taxes		8,258			7,082			6,661			5,760			5,701

Provision for income taxes		(1,337	)		(1,091	)		(826	)		(793	)		(766	)
Net income	$	6,921		$	5,991		$	5,835		$	4,967		$	4,935

FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands)
At Period End:	Jun. 30, 2025			Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024
Assets
Cash and cash equivalents	$	165,495		$	211,195		$	83,353		$	120,169		$	78,085
Investment securities		545,821			540,960			557,221			559,819			552,495
Restricted investments in bank stock		4,240			4,021			3,961			3,944			3,968
Loans and leases		1,837,477			1,817,509			1,800,856			1,795,548			1,728,509
Allowance for credit losses on loans		(19,976	)		(20,017	)		(19,666	)		(19,630	)		(18,975	)
Premises and equipment, net		40,097			34,995			35,914			36,057			35,808
Life insurance cash surrender value		58,849			58,458			58,069			57,672			57,278
Goodwill and core deposit intangible		20,364			20,431			20,504			20,576			20,649
Other assets		46,208			43,758			44,404			41,778			42,828

Total assets	$	2,698,575		$	2,711,310		$	2,584,616		$	2,615,933		$	2,500,645

Liabilities
Non-interest-bearing deposits	$	558,074		$	555,684		$	533,935		$	549,710		$	527,572
Interest-bearing deposits		1,877,254			1,901,775			1,806,885			1,792,796			1,641,558
Total deposits		2,435,328			2,457,459			2,340,820			2,342,506			2,169,130
Short-term borrowings		10			10			–			25,000			98,120
Secured borrowings		6,134			6,190			6,266			6,323			7,237
Other liabilities		39,191			35,977			33,561			34,843			30,466
Total liabilities		2,480,663			2,499,636			2,380,647			2,408,672			2,304,953

Shareholders’ equity		217,912			211,674			203,969			207,261			195,692

Total liabilities and shareholders’ equity	$	2,698,575		$	2,711,310		$	2,584,616		$	2,615,933		$	2,500,645

Average Quarterly Balances:	Jun. 30, 2025			Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024
Assets
Cash and cash equivalents	$	161,316		$	97,384		$	67,882		$	41,991		$	58,351
Investment securities		546,149			557,726			560,453			554,578			551,445
Restricted investments in bank stock		4,158			3,973			3,957			3,965			3,983
Loans and leases		1,832,162			1,813,040			1,797,023			1,763,254			1,707,598
Allowance for credit losses on loans		(20,357	)		(20,019	)		(20,050	)		(19,323	)		(19,171	)
Premises and equipment, net		35,954			35,722			36,065			36,219			35,433
Life insurance cash surrender value		58,697			58,307			57,919			57,525			55,552
Goodwill and core deposit intangible		20,386			20,459			20,529			20,602			20,677
Other assets		42,729			43,177			41,454			41,734			42,960

Total assets	$	2,681,194		$	2,609,769		$	2,565,232		$	2,500,545		$	2,456,828

Liabilities
Non-interest-bearing deposits	$	547,278		$	533,286		$	538,506		$	522,827		$	530,048
Interest-bearing deposits		1,878,548			1,826,957			1,769,265			1,702,187			1,670,211
Total deposits		2,425,826			2,360,243			2,307,771			2,225,014			2,200,259
Short-term borrowings		10			22			10,326			37,220			28,477
Secured borrowings		6,162			6,226			6,297			6,429			7,269
Other liabilities		36,050			34,937			34,695			31,999			30,734
Total liabilities		2,468,048			2,401,428			2,359,089			2,300,662			2,266,739

Shareholders’ equity		213,146			208,341			206,143			199,883			190,089

Total liabilities and shareholders’ equity	$	2,681,194		$	2,609,769		$	2,565,232		$	2,500,545		$	2,456,828

FIDELITY D & D BANCORP, INC. Selected Financial Ratios and Other Financial Data
	Three Months Ended
	Jun. 30, 2025			Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024
Selected returns and financial ratios
Basic earnings per share	$	1.20		$	1.04		$	1.02		$	0.87		$	0.86
Diluted earnings per share	$	1.20		$	1.03		$	1.01		$	0.86		$	0.86
Dividends per share	$	0.40		$	0.40		$	0.40		$	0.38		$	0.38
Yield on interest-earning assets (FTE)*		4.77	%		4.73	%		4.68	%		4.68	%		4.58	%
Cost of interest-bearing liabilities		2.52	%		2.49	%		2.60	%		2.70	%		2.58	%
Cost of funds		1.95	%		1.93	%		2.00	%		2.08	%		1.96	%
Net interest spread (FTE)*		2.25	%		2.24	%		2.08	%		1.98	%		2.00	%
Net interest margin (FTE)*		2.92	%		2.89	%		2.78	%		2.70	%		2.71	%
Return on average assets		1.04	%		0.93	%		0.90	%		0.79	%		0.81	%
Pre-provision net revenue to average assets*		1.28	%		1.16	%		1.06	%		1.05	%		1.00	%
Return on average equity		13.02	%		11.66	%		11.26	%		9.89	%		10.44	%
Return on average tangible equity*		14.40	%		12.93	%		12.50	%		11.02	%		11.72	%
Efficiency ratio (FTE)*		61.17	%		61.67	%		65.48	%		65.33	%		66.47	%
Expense ratio		1.40	%		1.37	%		1.48	%		1.41	%		1.47	%

	Six months ended
	Jun. 30, 2025			Jun. 30, 2024
Basic earnings per share	$	2.24		$	1.74
Diluted earnings per share	$	2.23		$	1.73
Dividends per share	$	0.80		$	0.76
Yield on interest-earning assets (FTE)*		4.75	%		4.55	%
Cost of interest-bearing liabilities		2.51	%		2.54	%
Cost of funds		1.94	%		1.95	%
Net interest spread (FTE)*		2.24	%		2.01	%
Net interest margin (FTE)*		2.91	%		2.70	%
Return on average assets		0.98	%		0.82	%
Pre-provision net revenue to average assets*		1.22	%		0.98	%
Return on average equity		12.35	%		10.57	%
Return on average tangible equity*		13.68	%		11.87	%
Efficiency ratio (FTE)*		61.42	%		67.01	%
Expense ratio		1.38	%		1.49	%

Other financial data	At period end:
(dollars in thousands except per share data)	Jun. 30, 2025			Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024
Assets under management	$	1,030,268		$	955,647		$	921,994		$	942,190		$	906,861
Book value per share	$	37.78		$	36.70		$	35.56		$	36.13		$	34.12
Tangible book value per share*	$	34.25		$	33.16		$	31.98		$	32.55		$	30.52
Equity to assets		8.08	%		7.81	%		7.89	%		7.92	%		7.83	%
Tangible common equity ratio*		7.38	%		7.11	%		7.16	%		7.19	%		7.06	%
Allowance for credit losses on loans to:
Total loans		1.09	%		1.10	%		1.09	%		1.09	%		1.10	%
Non-accrual loans	6.50x			3.36x			2.68x			2.77x			2.75x
Non-accrual loans to total loans		0.17	%		0.33	%		0.41	%		0.39	%		0.40	%
Non-performing assets to total assets		0.13	%		0.23	%		0.30	%		0.29	%		0.28	%
Net charge-offs to average total loans		0.05	%		0.02	%		0.03	%		0.02	%		0.03	%

Capital Adequacy Ratios
Total risk-based capital ratio		14.72	%		14.74	%		14.78	%		14.56	%		14.69	%
Common equity tier 1 risk-based capital ratio		13.57	%		13.57	%		13.60	%		13.38	%		13.52	%
Tier 1 risk-based capital ratio		13.57	%		13.57	%		13.60	%		13.38	%		13.52	%
Leverage ratio		9.16	%		9.22	%		9.22	%		9.30	%		9.30	%

* Non-GAAP Financial Measures – see reconciliations below

FIDELITY D & D BANCORP, INC. Reconciliations of Non-GAAP Financial Measures to GAAP
Reconciliations of Non-GAAP Measures to GAAP	Three Months Ended
(dollars in thousands)	Jun. 30, 2025			Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024
FTE net interest income (non-GAAP)
Interest income (GAAP)	$	29,765		$	28,308		$	28,059		$	27,299		$	26,039
Adjustment to FTE		760			771			764			775			751
Interest income adjusted to FTE (non-GAAP)		30,525			29,079			28,823			28,074			26,790
Interest expense (GAAP)		11,836			11,275			11,685			11,868			10,922
Net interest income adjusted to FTE (non-GAAP)	$	18,689		$	17,804		$	17,138		$	16,206		$	15,868

Efficiency Ratio (non-GAAP)
Non-interest expenses (GAAP)	$	14,710		$	14,554		$	14,395		$	13,840		$	13,616

Net interest income (GAAP)		17,929			17,033			16,374			15,431			15,117
Plus: taxable equivalent adjustment		760			771			764			775			751
Non-interest income (GAAP)		5,359			4,973			4,847			4,979			4,615
Plus: Loss on sales of securities		–			822			–			–			–
Net interest income (FTE) plus adjusted non-interest income (non-GAAP)	$	24,048		$	23,599		$	21,985		$	21,185		$	20,483
Efficiency ratio (non-GAAP) (1)		61.17	%		61.67	%		65.47	%		65.33	%		66.48	%
(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest income.

Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP)
Total assets (GAAP)	$	2,698,575		$	2,711,310		$	2,584,616		$	2,615,933		$	2,500,645
Less: Intangible assets		(20,364	)		(20,431	)		(20,504	)		(20,576	)		(20,649	)
Tangible assets		2,678,211			2,690,879			2,564,112			2,595,357			2,479,996
Total shareholders’ equity (GAAP)		217,912			211,674			203,969			207,261			195,692
Less: Intangible assets		(20,364	)		(20,431	)		(20,504	)		(20,576	)		(20,649	)
Tangible common equity		197,548			191,243			183,465			186,685			175,043

Common shares outstanding, end of period		5,767,490			5,767,500			5,736,252			5,736,025			5,735,728
Tangible Common Book Value per Share	$	34.25		$	33.16		$	31.98		$	32.55		$	30.52
Tangible Common Equity Ratio		7.38	%		7.11	%		7.16	%		7.19	%		7.06	%

Pre-Provision Net Revenue to Average Assets
Income before taxes (GAAP)	$	8,258		$	7,082		$	6,661		$	5,760		$	5,701
Plus: Provision for credit losses		320			370			165			810			415
Total pre-provision net revenue (non-GAAP)		8,578			7,452			6,826			6,570			6,116
Total (annualized) (non-GAAP)	$	34,404		$	30,220		$	27,157		$	26,423		$	24,600

Average assets	$	2,681,194		$	2,609,769		$	2,565,232		$	2,500,545		$	2,456,828
Pre-Provision Net Revenue to Average Assets (non-GAAP)		1.28	%		1.16	%		1.06	%		1.05	%		1.00	%

Reconciliations of Non-GAAP Measures to GAAP	Six months ended
(dollars in thousands)	Jun. 30, 2025			Jun. 30, 2024
FTE net interest income (non-GAAP)
Interest income (GAAP)	$	58,073		$	51,665
Adjustment to FTE		1,531			1,497
Interest income adjusted to FTE (non-GAAP)		59,604			53,162
Interest expense (GAAP)		23,111			21,604
Net interest income adjusted to FTE (non-GAAP)	$	36,493			31,558

Efficiency Ratio (non-GAAP)
Non-interest expenses (GAAP)	$	29,264		$	27,306

Net interest income (GAAP)		34,962			30,061
Plus: taxable equivalent adjustment		1,531			1,497
Non-interest income (GAAP)		10,332			9,188
Plus: Loss on sales of securities		822			–
Net interest income (FTE) plus non-interest income (non-GAAP)	$	47,647		$	40,746
Efficiency ratio (non-GAAP) (1)		61.42	%		67.01	%
(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income.

Pre-Provision Net Revenue to Average Assets
Income before taxes (GAAP)	$	15,340		$	11,453
Plus: Provision for credit losses		690			490
Total pre-provision net revenue (non-GAAP)	$	16,030		$	11,943
Total (annualized) (non-GAAP)	$	32,326		$	23,951

Average assets	$	2,645,679		$	2,453,998
Pre-Provision Net Revenue to Average Assets (non-GAAP)		1.22	%		0.98	%


Contacts:
Daniel J. Santaniello	Salvatore R. DeFrancesco, Jr.
President and Chief Executive Officer	Treasurer and Chief Financial Officer
570-504-8035	570-504-8000

MIL-OSI Africa: Malaria Surge in Southern Africa

Source: APO – Report:

.

Malaria is on the rise in southern Africa, with several countries – including Botswana, eSwatini, Namibia and Zimbabwe – reporting new outbreaks, underscoring the ongoing challenges in eradicating the disease in Africa.

Data from the Surveillance and Disease Intelligence Division of the Africa Centres for Disease Control and Prevention (Africa CDC) reveals a dramatic spike in Zimbabwe, where suspected cases have increased in 2025. As of epidemiological week 23, of 2025, Zimbabwe has reported 111,998 cases and 310 deaths (case fatality rate [CFR]: 0.27%) as compared to 29,031 cases with 49 deaths (CFR: 0.17%) in the same period in 2024.

“This surge is no coincidence,” says Dr Memory Mapfumo, an epidemiologist at the Africa CDC. “Prolonged rains have fuelled mosquito breeding, while activities like gold panning, fishing and artisanal mining are exposing more individuals to risk, especially during peak mosquito activity hours.” A contributing factor is the interconnectedness of the countries, which drives transmission.

Across Zimbabwe, 115 out of 1,705 health facilities have been affected, highlighting the widespread impact of the disease on healthcare infrastructure. Since the start of 2025, Mashonaland Central Province has accounted for 32% of all malaria cases, while Manicaland reported 25% of the malaria-related deaths.

The situation is worsened by the low use of insecticide-treated bed nets (ITNs), leaving communities exposed and placing further strain on already stretched health systems. This reflects a broader challenge across southern Africa, where shifting climate patterns and expanding high-risk livelihoods are driving a growing malaria threat, necessitating quicker, more targeted and sustained responses.

However, malaria is endemic across sub-Saharan Africa, particularly in regions with high temperatures and rainfall, which create ideal breeding grounds for Anopheles mosquitoes, the vector that transmits the malaria parasite. The central part of the continent – both north and south of the equator – experiences the highest malaria incidence. Other factors include the tropical climate, as well as displacement and limited access to preventive measures.

Southern Africa, although comparatively less affected, remains vulnerable to the disease due to climatic conditions that favour mosquito breeding, cross-border population movements and localised outbreaks in high-risk areas. The region’s malaria burden fluctuates with rainfall patterns, human activities such as mining and agriculture, and gaps in healthcare access, making sustained intervention crucial for reducing transmission.

“As climate change accelerates, we are witnessing shifts in temperature and rainfall that are expanding the range of malaria-carrying mosquitoes, introducing vectors into previously unaffected regions,” said Dr Merawi Aragaw, head of Africa CDC’s Surveillance and Disease Intelligence.

He emphasised that this is not only a regional issue but a global challenge that calls for coordinated international efforts. “Sustained vector control measures – including environmental management, strengthening surveillance, drug and diagnostic resistance monitoring, and fostering cross-border collaboration – will be critical in mitigating the growing threat of vector-borne diseases, especially malaria,” said Dr Merawi.

The regional surge underscores a broader global trend, with malaria cases worldwide climbing to 263 million in 2023, up from 252 million the previous year, and Africa accounting for 95% of all malaria-related deaths. Despite these alarming figures, there have been significant successes: Cabo Verde was certified malaria-free in 2023, and Egypt is poised to achieve the same in 2024.

Yet for many countries in southern Africa, the road to elimination remains steep, with outbreaks threatening to reverse years of progress.

Take Botswana, which since epidemiological weeks 1–23 of 2025 has recorded 2,223 cases and 11 deaths, compared to 218 cases and no deaths in the same period in 2024. Okavango has been hit hardest, accounting for 69% of the cases. Since the outbreak began in November 2024, a total of 2,344 cases have been reported, with sporadic outbreaks appearing in non-endemic districts.

Flooding caused by heavy rains has contributed significantly to the outbreak by creating favourable conditions for mosquito breeding. Furthermore, many local residents remain unaware of the risks, contributing to delayed responses when symptoms first appear. To counter this, Botswana’s Ministry of Health has intensified case management and surveillance, launched community engagement campaigns, and distributed ITNs. However, efforts have been hindered by inadequate funding and community resistance to the interventions.

Although the Kingdom of eSwatini is in the malaria elimination phase, eSwatini, too, is grappling with an upsurge in malaria cases. The Ministry of Health recently issued a press notice to draw attention to the issue. From July 2024 to March 2025, the kingdom has recorded 187 malaria cases. Children under 15 years account for 15% of the reported cases, which has led to increased school absenteeism.

Twenty per cent of cases have been among farmers, especially those involved in illegal farming activities in the mountains. These farmers often work at night, guarding their crops without any protective measures, leaving them exposed to mosquito bites. The majority of cases are concentrated in the Hhohho and Lubombo regions, prompting the Ministry of Health to increase its response efforts, including indoor residual spraying (IRS) and the distribution of ITNs.

Despite these interventions, eSwatini’s malaria elimination programme faces significant hurdles. There are challenges in achieving complete coverage of IRS and ITN distribution, and many individuals still fail to adopt protective behaviours. Nonetheless, the government remains committed to eliminating malaria and addressing the underlying causes, such as illegal farming and inadequate community awareness.

Namibia is another country witnessing a significant rise in malaria cases, with over 89,959 cases and 146 deaths reported since November 2024 from 37 of 121 districts. Of these cases, 18% (15,954 cases) are imported from neighbouring countries experiencing malaria outbreaks, and 82% are local.

The hardest-hit districts in Namibia include Katima Mulilo, Nkurenkuru, Andara, Outapi and Rundu. Malaria continues to have a severe impact on children above five years and pregnant women, who represent 11% and 3% of the reported cases, respectively. Most cases reported were among males (58%).

Of major significance is the interconnectedness of southern Africa, which complicates malaria control efforts, especially in border regions.

In Botswana, districts bordering Namibia and Zimbabwe are particularly vulnerable to cross-border transmission, with malaria spreading easily between neighbouring countries with ongoing outbreaks. This highlights the importance of regional cooperation and cross-border surveillance in combating the disease. Efforts to enhance case management, improve surveillance and increase the use of ITNs are critical in curbing transmission in these high-risk areas.

According to Africa CDC, the increase in malaria cases in the region highlights the pressing need for continued vigilance and investment in malaria control. Governments need to enhance their efforts to improve the use of ITNs, strengthen community engagement, and address the environmental and social factors driving the outbreaks, such as illegal farming and exposure to mosquito breeding grounds.

Equally important is the need for a concerted effort to address delays in reporting, ensuring the timely and accurate collection of data to inform public health interventions. Yet, while the fight against malaria remains an uphill battle, the successes in Cabo Verde and Egypt offer hope that with the right strategies, the elimination of malaria in southern Africa is possible.

– on behalf of Africa Centres for Disease Control and Prevention (Africa CDC).

MIL OSI Africa –

MIL-OSI United Kingdom: Sign up for a summer of fun with Yo! Active

Source: City of Wolverhampton

Yo! Active is delivered by WV Active and Wolves Foundation and offers a wide range of free activities all year round to children and young people aged up to 18, or 25 for care leavers or those with a disability.

Young residents whose family pay Council Tax to the City of Wolverhampton Council can take their pick from over 40 hours of free physical activity sessions per week, including free swimming, gym and court hire, multi sport sessions, basketball and special activities for the under 5s.

There are also tailored sessions for school holidays, including the summer break. Highlights over the next few weeks include family splash and dance sessions, water sports, SEND scoot and ride, ultimate frisbee, family multi sports and a Nerf Club. See the full timetable at Yo! Active – Summer Holiday Activities.

Councillor Obaida Ahmed, Cabinet Member for Health, Wellbeing and Community, said: “Yo! Active is a brilliant way to inspire our children and young people to take part in regular physical activities, with a fantastic range of free opportunities available – not only during the long summer holidays, but all year round.

“Becoming more physically active can help improve heart health, build strong bones and muscles, control weight and reduce symptoms of anxiety and depression, and it’s also a great way to make new friends.

“Over 15,000 children and young people have already signed up to Yo! Active, and I’d encourage other youngsters, parents and guardians to check out what is on offer so that they don’t miss out.”

Sign up for free now at Yo! Active.

MIL OSI United Kingdom –

MIL-OSI: RIBER: 2025 FIRST-HALF BUSINESS – FULL-YEAR REVENUES EXPECTED TO EXCEED €40M

Source: GlobeNewswire (MIL-OSI)

2025 FIRST-HALF BUSINESS

FULL-YEAR REVENUES EXPECTED TO EXCEED €40M

Bezons, July 23, 2025 – 8:00am – RIBER, the global leader in Molecular Beam Epitaxy (MBE) equipment for the semiconductor industry, reports its revenues for the first half of 2025.

Business developments

At June 30 (€m)	2025	2024	Change
Systems	7.8	9.4	-17%
Services and accessories	3.0	4.3	-31%
Total half-year revenues	10.7	13.7	-22%

In a complex international environment, RIBER continues to demonstrate the resilience of its business model and the appeal of its technology offering.

The Company reiterates that its business activity is subject to seasonal trends, with revenue structurally lower in the first half of the year.

As of June 30, 2025, first-half revenues amounted to €10.7m, down 22% compared with the same period in 2024.

Systems revenues totaled €7.8m, down 17%, reflecting the delivery schedule agreed with customers for systems on order in 2025. This corresponds to the delivery of three machines, including two production systems, compared with three production systems in the same period last year.

Revenues for services and accessories came to €3.0m, down 31%, primarily due to a temporary decline in research-related orders, particularly in the United States, against a backdrop of tighter budgets in universities and research laboratories.

The geographical breakdown of half-year revenues was as follows: Europe (15%), Asia (70%) and North America (13%).

Order book developments

At June 30 (€m)	2025	2024	Change
Systems	22.5	30.2	-25%
Services and accessories	5.2	5.8	-11%
Total order book	27.7	36.0	-23%

Despite ongoing geopolitical tensions and regulatory constraints, RIBER maintained strong commercial momentum during the first half of 2025.
The Company secured five new system orders, including the first order for ROSIE, its new 300 mm silicon photonics platform, which recently entered its industrialization phase.

As of June 30, 2025, the systems order book stood at €22.5m, down 25% from the high base in the first half of 2024. It includes nine systems, of which six are production machines. This change is mainly due to the denial of two export licenses, representing €4m in unbooked orders, and longer license approval timelines, which delayed the booking of already-identified orders.

The services and accessories order book is down 11% to €5.2m.

Outlook

RIBER anticipates an improvement in order intake during the second half of the year, driven by major global investment programs in the semiconductor industry.

The Company also expects to benefit from the ramp-up of its ROSIE platform, a breakthrough technology in silicon-based integrated photonics. Following the signing of a strategic partnership with the Novo Nordisk Foundation Quantum Computing Programme (NQCP) and the first unit sale, RIBER aims to leverage growing interest from both research institutions and industrial players for solutions compatible with silicon fabrication lines.

While short-term momentum in research-related services and accessories remains uncertain, the systems business is expected to remain broadly stable in 2025. These elements do not undermine the Company’s strong fundamentals.

Given the current order book for delivery this year and the upcoming business opportunities, RIBER expects to generate full-year revenue of over €40m in 2025.

Financial calendar

First-half 2025 results will be published on September 25, 2025, before the start of trading.

About RIBER

Founded in 1964, RIBER is the global market leader for MBE – molecular beam epitaxy – equipment. It designs and produces equipment for the semiconductor industry and provides scientific and technical support for its clients (hardware and software), maintaining their equipment and optimizing their performance and output levels. Accelerating the performance of electronics, RIBER’s equipment performs an essential role in the development of advanced semiconductors that are used in numerous applications, from information technologies to photonics (lasers, sensors, etc.), 5G telecommunications networks and research, including quantum computing. RIBER is a BPI France-approved innovative company and is listed on the Euronext Growth Paris market (ISIN: FR0000075954).
www.riber.com

Contacts

RIBER
Annie Geoffroy | tel: +33 (0)1 39 96 65 00 | invest@riber.com

ACTUS FINANCE & COMMUNICATION
Cyril Combe | tel: +33 (0)1 53 67 36 36 | ccombe@actus.fr

Attachment

CP_Riber_CA_S1_2025_EN

MIL-OSI: RIBER: 2025 FIRST-HALF BUSINESS – FULL-YEAR REVENUES EXPECTED TO EXCEED €40M

Source: GlobeNewswire (MIL-OSI)

2025 FIRST-HALF BUSINESS

FULL-YEAR REVENUES EXPECTED TO EXCEED €40M

Bezons, July 23, 2025 – 8:00am – RIBER, the global leader in Molecular Beam Epitaxy (MBE) equipment for the semiconductor industry, reports its revenues for the first half of 2025.

Business developments

At June 30 (€m)	2025	2024	Change
Systems	7.8	9.4	-17%
Services and accessories	3.0	4.3	-31%
Total half-year revenues	10.7	13.7	-22%

In a complex international environment, RIBER continues to demonstrate the resilience of its business model and the appeal of its technology offering.

The Company reiterates that its business activity is subject to seasonal trends, with revenue structurally lower in the first half of the year.

As of June 30, 2025, first-half revenues amounted to €10.7m, down 22% compared with the same period in 2024.

Systems revenues totaled €7.8m, down 17%, reflecting the delivery schedule agreed with customers for systems on order in 2025. This corresponds to the delivery of three machines, including two production systems, compared with three production systems in the same period last year.

Revenues for services and accessories came to €3.0m, down 31%, primarily due to a temporary decline in research-related orders, particularly in the United States, against a backdrop of tighter budgets in universities and research laboratories.

The geographical breakdown of half-year revenues was as follows: Europe (15%), Asia (70%) and North America (13%).

Order book developments

At June 30 (€m)	2025	2024	Change
Systems	22.5	30.2	-25%
Services and accessories	5.2	5.8	-11%
Total order book	27.7	36.0	-23%

Despite ongoing geopolitical tensions and regulatory constraints, RIBER maintained strong commercial momentum during the first half of 2025.
The Company secured five new system orders, including the first order for ROSIE, its new 300 mm silicon photonics platform, which recently entered its industrialization phase.

As of June 30, 2025, the systems order book stood at €22.5m, down 25% from the high base in the first half of 2024. It includes nine systems, of which six are production machines. This change is mainly due to the denial of two export licenses, representing €4m in unbooked orders, and longer license approval timelines, which delayed the booking of already-identified orders.

The services and accessories order book is down 11% to €5.2m.

Outlook

RIBER anticipates an improvement in order intake during the second half of the year, driven by major global investment programs in the semiconductor industry.

The Company also expects to benefit from the ramp-up of its ROSIE platform, a breakthrough technology in silicon-based integrated photonics. Following the signing of a strategic partnership with the Novo Nordisk Foundation Quantum Computing Programme (NQCP) and the first unit sale, RIBER aims to leverage growing interest from both research institutions and industrial players for solutions compatible with silicon fabrication lines.

While short-term momentum in research-related services and accessories remains uncertain, the systems business is expected to remain broadly stable in 2025. These elements do not undermine the Company’s strong fundamentals.

Given the current order book for delivery this year and the upcoming business opportunities, RIBER expects to generate full-year revenue of over €40m in 2025.

Financial calendar

First-half 2025 results will be published on September 25, 2025, before the start of trading.

About RIBER

Founded in 1964, RIBER is the global market leader for MBE – molecular beam epitaxy – equipment. It designs and produces equipment for the semiconductor industry and provides scientific and technical support for its clients (hardware and software), maintaining their equipment and optimizing their performance and output levels. Accelerating the performance of electronics, RIBER’s equipment performs an essential role in the development of advanced semiconductors that are used in numerous applications, from information technologies to photonics (lasers, sensors, etc.), 5G telecommunications networks and research, including quantum computing. RIBER is a BPI France-approved innovative company and is listed on the Euronext Growth Paris market (ISIN: FR0000075954).
www.riber.com

Contacts

RIBER
Annie Geoffroy | tel: +33 (0)1 39 96 65 00 | invest@riber.com

ACTUS FINANCE & COMMUNICATION
Cyril Combe | tel: +33 (0)1 53 67 36 36 | ccombe@actus.fr

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MIL-OSI Australia: Transcript – ABC News Breakfast with James Glenday

Source: Murray Darling Basin Authority

JAMES GLENDAY: Next, we take you to Canberra and bring in the Federal Education Minister, Jason Clare, who is of course at Parliament House. He has a very big day. Responsible for a couple of key bits of legislation. Minister, welcome back to News Breakfast.

JASON CLARE, MINISTER FOR EDUCATION: Thanks, mate. Good morning.

GLENDAY: We’ve got a lot of policy to discuss, but I just wanted to ask you for your reflection first of all. What was it like going into Parliament yesterday and seeing the scale of your victory, all of those Labor MPs spilling out right to the other side of the chamber?

CLARE: Well, I guess it reminded me of the responsibility we’ve got. The Australian people have entrusted us with government and a very large majority. We’ve got a responsibility to be worthy of that trust and to pay that back with responsible government. And that’s what we’re determined to do.

GLENDAY: I couldn’t help but notice that the two women who beat both Peter Dutton and Adam Bandt got to deliver their maiden speeches first. They were lovely speeches. Watched them last night. Quite moving. Were the order of these speeches meant to send a bit of a message to your political opponents? If you get in our way, this is what could happen to you?

CLARE: No, but, I think the personal stories of both of those women are incredible. I should have brought a box of tissues to listen to Ali and tell the story of not just the accident that took her leg, but the tragedy that took her son. They are extraordinary women who make a very, very big contribution in this Parliament. I’m looking forward to working with them.

GLENDAY: Alright, let’s get to policy. I mean, they were very moving speeches. Anyone who hasn’t seen them is worth just reflecting on them. It looked as though during the election the Coalition was going to oppose your student debt reduction bill. Seems like they’ve had a change of heart. Have they pledged to wave that through?

CLARE: Well, not yet, but I hope they do. You know, this was one of the big promises that we made in the election campaign, that we would cut the student debt of 3 million Australians by 20 per cent. And this will take a weight off the shoulders of a lot of young people right across the country. In particular at elections, young people don’t often see themselves on the ballot paper, but they did at this election and they voted for it in their millions. For the average person with a student debt today, this will cut their debt by about five and a half grand. So, there’s a lot at stake here and I’m hoping that politicians right across the Parliament will vote for this legislation.

GLENDAY: Do you have a date? You hope it’s in place? Some of those young people have been getting in touch saying, hey, it’s gone up because of indexation and I haven’t seen this cut yet, but of course it’s not law yet.

CLARE: Yeah, really good question. Thanks for that, mate. So, when the legislation passes, the impact of it will be to backdate that cut to 1 June this year before indexation happened. That will make sure that people get the maximum benefit of the 20 per cent cut, so that the 20 per cent cut is made on what your debt was on the 1st of June before indexation happened. So, first we have to get the legislation through, then the tax office will have to go through the process of cutting the debt based on what your debt was back on the 1st of June. But you won’t have to do anything. This will all happen automatically at the Tax Office and you’ll get a text message when it happens to tell you that that debt’s been cut.

GLENDAY: There you go. So, sit tight. Though we do appreciate the emails we’ve been getting. A trickier issue for you is going to be child safety, in particular, child care, because you don’t control all the levers. You’ve got this Bill to terminate subsidies to child care operators doing the wrong thing. First of all, do you expect the Opposition is going to let that sail through as well?

CLARE: Well, we’ve been working really professionally and constructively with the Opposition and I do want to thank Sussan Ley, the Opposition Leader, and Jonno Duniam, the Shadow Minister, for the constructive way in which we’ve been working with them. We’ve also briefed the Greens. This is too important for politics. Parents across the country aren’t interested in us fighting about this. They’re not interested in excuses. They just want action. And this legislation is one part of it. I think all Australians have been sickened and appalled by the evidence coming out of Victoria. We need to do everything that we can to rebuild faith and trust in a system that parents need and rely upon. Right across the country, there’ll be parents packing bags and getting kids ready for early education and care right now. What this legislation will do is give us the power to cut funding to child care centres that aren’t up to scratch, that aren’t meeting the sort of minimum standards that parents expect and that our kids deserve. In a sense, it’s the biggest weapon that we’ve got to wield here because taxpayers provide about $16 billion to child care centres every year. That represents about 70 per cent of the funding to run a centre, you know, pays the rent, pays the bills, pays the salaries. So, they can’t operate without them. If centres are repeatedly not meeting that standard, I think most mums and dads watching will think it’s fair that we should have the power to cut that funding off to make sure that kids are safe.

GLENDAY: Sussan Ley will be along in a minute. We can ask her as well. I just wanted to know, have you worked out what the threshold for intervention is going to be? Is it going to be 1, 2, 3 strikes for a centre and then you strip the money?

CLARE: Well, it could be as simple as one. It’s important to make the point that regulators have the power to shut a centre right now if they think there’s a serious threat to children’s safety. But this will also give us the power to issue a show cause notice to a centre to say that we’ll shut it within 28 days unless they meet that minimum standard or to set conditions on them as well. And we’ll work closely with the state regulators who do the work in checking centres to identify the centres that should be the subject of this legislation first, the ones that are repeatedly failing to meet those minimum standards. And I’ve got to tell you, that work is happening right now with my department and state regulators across the country.

GLENDAY: Yeah. So, just before I let you go, next month, you can have a big meeting with states and territories. Advocates in this sector say a huge problem is that states and territories and the Commonwealth don’t talk to each other. Are we going to see concrete action on things like security cameras, better safety checks, maybe a national worker register for child care operators and workers?

CLARE: Yeah. This legislation is just one part of the things that we need to do. We’ll be talking at that meeting about a national educator register so we can track workers from centre to centre as well as from state to state. I think what’s happening in Victoria shows the weakness in that area, but also the role that CCTV can play in deterring bad people from doing bad things and help police with investigations and perhaps most important of all, mandatory child safety training. So, for the 99.9 per cent of workers in our centres who are good people, who care for our kids, you know, whose reputation has been tarnished by what’s happening at the moment, who are in the media for all the wrong reasons, to give them the skills that they need to identify people that might be up to no good, who might be trying to target our kids or to try and distract them from the work that they’re doing to keep our kids safe.

GLENDAY: Alright, Jason Clare the Education Minister, you’ve got a lot on your plate. We do appreciate you making time for us on News Breakfast this morning.

MIL OSI News –

MIL-OSI Australia: Second Reading Speech – Universities Accord (cutting student debt by 20%) Bill 2025

Source: Murray Darling Basin Authority

It is a privilege to introduce the Universities Accord (Cutting Student Debt by 20%) Bill.

As promised, this is the very first bill to be introduced to the Parliament after the election.

And as promised, it cuts the student debt of three million Australians by 20 percent.

Mr Speaker, on the 3rd of May Australians made their voices heard.

They voted for the tax cuts we are delivering.

They voted for free TAFE that we are making permanent.

They voted for us to build more homes.

They voted for us to roll out more Medicare Urgent Care Clinics.

They voted for cheaper medicine.

They voted for the biggest investment in Medicare ever, to make it easier to see a doctor for free than ever before.

And they voted for this.

Cutting the student debt of three million Australians by 20 percent.

Most of those are young Australians.

Just out of uni. Just out of TAFE.

Just out of home. Just getting started.

Trying to save to buy a home.

Thinking about starting a family.

Nurses. Teachers. Tradies.

Doctors and Paramedics.

Engineers. Architects.

IT workers. AI Experts.

These are the Australians who will build Australia’s future.

Who are already building it.

And this will take a weight off their back.

The average HELP debt today is about $27,600.

When this legislation passes it will cut that debt by about $5,520.

If you have got a debt of $50,000 it will cut it by $10,000.

All up it will cut student debt by over $16 billion.

When this legislation passes your debt will be cut by 20 per cent, based on what it was on 1 June this year, before this year’s indexation occurred.

That will make sure you get the maximum benefit possible and that we honour our promise in full.

And it will all happen automatically.

The Australian Tax Office will process changes at their end.

You won’t have to do a thing.

It will take a bit of time for the Tax Office to do this work.

But once this Bill is passed the cut is guaranteed.

Mr Speaker, this is a big deal for everyone with a student debt today.

Three million Australians.

But it’s not the only thing this Bill does.

It also makes important structural changes to the way the repayment system works.

To make it fairer.

And to help with the cost of living.

This Bill raises the minimum amount you have to earn before you have to start making repayments – from $54,435 in 2024-25 to $67,000 in 2025-26.

And it reduces the minimum repayments you have to make.

For someone earning $70,000 it will reduce the minimum repayments they have to make by $1,300 a year.

That’s real cost of living help.

More money in your pocket – not the government’s.

When you really need it.

This is an important structural reform.

We are replacing the current repayment system with a new marginal repayment system.

At the moment the amount that you pay off every year is based on your entire wage.

That means once you earn above the current minimum repayment threshold of $54,435, you pay a percentage of your entire wage as a repayment.

Under the changes in this Bill, you will only pay a percentage of your wage above the minimum repayment threshold.

So, for example, if you earn $70,000 at the moment you currently have to repay $1,750 each year.

Under these changes you will only have to repay about $450.

In other words, if you earn $70,000 a year, you will have to repay $1,300 less a year than you currently have to.

If you earn $80,000 a year, you will have to repay $850 less a year than you currently have to.

And if you earn $110,000 a year, you will have to repay $700 less a year than you currently have to.

You can still pay off more if you want to.

But what this does is make the system fairer.

It means you start paying off your uni degree when university starts to pay off for you.

It’s a recommendation of the Universities Accord.

And it’s a recommendation of the architect of HECS, Professor Bruce Chapman.

When we announced this reform to create a marginal repayment system, Professor Chapman said this is:

“…the most important thing that’s happened to the system in 35 years. It’s a marginal collection, it’s much gentler and much fairer than previously — we should have done it years ago.”

Mr Speaker, these are important reforms, that will help millions of Australians, now and into the future.

It’s why it is the first Bill that we have introduced to this new Parliament.

As the Prime Minister said when he announced in November last year that we would cut student debt by 20 per cent and make these structural changes:

“It helps everyone repaying a student debt right now – and it delivers a better deal for every student in the years ahead.

Permanent, structural reform to boost take home pay for young Australians.

This is about putting money back into your pocket – and putting intergenerational equity back into the system.

Good for cost of living.

Good for this generation – and for generations to come.

Good for building Australia’s future.”

Mr Speaker, not surprisingly, the Coalition immediately said that they would oppose this Bill.

Like everything else, their immediate reaction was to attack this.

I suspect they now rue that decision.

They called it “terrible”. They called it “unfair”.

In the electorates they represented, people saw something different.

In electorates right across the country, where 1 in 4 voters have a student debt, they saw an opportunity to get a load off their back.

To make their life a little bit easier.

And they voted for it.

As one anonymous National Party MP told the Daily Telegraph after the election:

“My kids are paying off a university debt and I reckon they voted for Labor”.

Mr Speaker, when even your own family won’t vote for you, you know you’ve got it wrong.

Now the Opposition have a chance to get this right.

Not just by voting for it.

But by actually speaking in support of it.

This is a chance for the opposition to admit they got it wrong.

And that the Australian people got it right.

Education is the most powerful cause for good.

A good education changes lives.

A good education system changes countries.

It’s changed ours.

We have got a good education system in Australia today.

But the truth is it can be better and fairer.

This Bill is part of that.

So is Paid Prac that started this month for teaching and nursing students.

For midwifery students and social work students.

So are the University Study Hubs that will open up in our outer suburbs and regions over the next few months.

And so is the new Needs-based Funding system for our universities that starts next year.

It is also what the agreements we have signed with every State and Territory to fix the funding of our public schools are all about.

And tying that funding to real reform to help kids who start behind or fall behind to catch up and keep up, and help more kids finish school and then go on to TAFE or University.

It also means making our child care centres safer.

And I will introduce legislation to help do that in a few moments time.

Mr Speaker, once again, it’s my privilege to make good on a promise we made last year and that we repeated every single day of the election campaign.

In every seat across the country.

To cut student debt by 20 per cent.

To cut the debt of 3 million Australians.

To take a weight off their back.

To help with the cost of living.

And to help build Australia’s future.

I commend this Bill to the House.

MIL OSI News –

MIL-OSI USA: Cassidy Introduces Bill to Examine National Security Threat Posed by Debt

US Senate News:

Source: United States Senator for Louisiana Bill Cassidy

WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the National Net Interest is National Security Act to analyze the threats that current trajectories of the national debt and net interest pose to national security.
“We spent $882 billion last year on interest on our debt. That means less money for our nation’s defense,” said Dr. Cassidy. “This bill makes sure Congress gets the facts before our national security is in danger.”
Specifically, the National Net Interest is National Security Act would require:

Within one year, as a part of the National Defense Strategy, the Treasury Secretary and Secretaries of Defense and State must send Congress a report on how the growing national debt and rising interest payments could threaten national security, including:

The impact on defense discretionary spending;
Revenue received by the federal government;
The capacity to operate an efficient and effective response for national defense;
The capacity to respond to emerging and future geopolitical threats and crises;
The capacity to respond to economic depressions and recessions, or other economic crises;
Meet mandatory spending obligations, including Social Security and Medicare/Medicaid;
The impact on the U.S. Dollar in global financial markets, global reserves currency status, and international exchange rates;
And the impact on the U.S. credit rating, inflation, and interest rates; and,
Any recommendations the Secretary may have for legislative action to reduce national security risks related to the national debt and net interest.
This legislation would also require the Comptroller General of the Government Accountability Office (GAO) to include matters relating to threats posed to national security by the increases of the national debt and national net interest to matters on the High-Risk List of the GAO.

Cassidy was joined by U.S. Senator Gary Peters (D-MI) in introducing this legislation.
“As the high and rising debt threatens to crowd out vital national priorities, from private investment to public infrastructure to military readiness, we thank Sens. Cassidy (R-LA) and Peters (D-MI) for drawing attention to the need for immediate action to reduce deficits, through their bipartisan introduction of theNational Net Interest is National Security Act of 2025,” says Michele Stockwell, president of Bipartisan Policy Center Action (BPC Action).

MIL-OSI Australia: Private groups: watch out for common CFC errors

Source: New places to play in Gungahlin

Compliance reviews have revealed a high error rate in privately owned and wealthy group CFC disclosures.

Australian resident taxpayers (e.g. the head of a group of companies) must apply the CFC provisions if they have a controlling interest in a foreign company. If this applies to you, you need to disclose all CFCs, and their income, in tax returns and the international dealings schedule (IDS).

We monitor private group compliance through a review program, where we’re regularly seeing incorrect disclosures that highlight knowledge gaps around the CFC provisions.

Common errors

Common errors we see are:

under-reporting of CFC attributable income in tax returns, often from errors in applying the active income test, or from failing to recognise tainted income
deemed dividends from unlisted country CFCs omitted from the taxpayer’s assessable income
incorrect IDS disclosures, including
- completely overlooking CFCs including where there is associate-inclusive control
- inaccurate reporting of CFC gross revenue and the number of CFCs acquired and disposed of.

Private group compliance continues to be a key focus of our Tax Avoidance Taskforce. You need to lodge correct information, otherwise you’re risking lengthy review processes and costly amendments, so it’s important to check you’re complying.

Get across your CFC obligations

Follow these tips to make sure you’re getting it right:

Review our Controlled foreign company page for the Private Wealth International Program. Knowing the CFC basics might help avoid mistakes.
Discuss the CFC provisions with your adviser.
Take care if your group is growing rapidly in size and complexity. This is when you’re most susceptible to mistakes.
Keep your adviser across all business developments – seemingly small changes can have big tax implications.
Amend any previously lodged tax returns if you discover an error. Waiting for us to notice may result in a tax bill including penalties and interest.

Keep up to date

We have tailored communication channels for medium, large and multinational businesses, to keep you up to date with updates and changes you need to know.

Read more articles in our online Business bulletins newsroom.

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MIL OSI News –

MIL-OSI USA: Congressman Robert Aderholt Introduces Accelerate Revenue for Manufacturing and Sales (ARMS) Act

Source: United States House of Representatives – Congressman Robert Aderholt (AL-04)

WASHINGTON – Today, Reps. Robert Aderholt (R-AL), Jared Moskowitz (D-FL), Jimmy Panetta (D-CA), and Ryan Zinke (R-MT) introduced the Accelerate Revenue for Manufacturing and Sales (ARMS) Act, a bipartisan proposal to expedite the delivery of U.S.-made critical defense capabilities to allies and partners, by expanding the Special Defense Acquisition Fund (SDAF).

“This bipartisan bill will help ensure that America’s allies and partners can receive critical defense equipment in a timely manner,” said Congressman Aderholt. “By strengthening the SDAF, this legislation not only supports national security interests abroad, but invests in our industrial defense base at home.”

This bill addresses the inefficiencies and delays in the current Foreign Military Sales (FMS) process. The urgency to address these has increased in recent years, as the combined value of Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) has significantly exceeded domestic defense procurement budgets, with international demand for U.S. defense products approaching two-to-one over domestic acquisition.
“The ARMS Act is a win-win for our economic and national security, investing in both our critical manufacturing here at home and our allies’ defense abroad. As we continue to combat the threatening influence of foreign adversaries like Russia and China, this bill will help our allies stay safe while maintaining our leadership around the globe,” said Rep. Jared Moskowitz.

“It’s unfortunate, but unnecessary and burdensome bureaucratic delays slow down the ability of the United States to fully support our democratic allies when they need it the most,” Rep. Jimmy Panetta added. “The expansion of the bipartisan Special Defense Acquisition Fund would provide a more efficient way to meet urgent demand and counter global threats, while strengthening our domestic manufacturing base. As we push back against isolationism, this legislation is a smart, strategic, commonsense step to bolster American leadership and enhance global stability.”

“I’ve made it my mission to eliminate the bureaucratic delays that prevent America’s life-saving defense capabilities from reaching our allies and partners. This bill delivers on that mission,” said Rep. Ryan Zinke. “The Special Defense Acquisition Fund is a vital but historically under-resourced tool that strengthens our defense industrial base and accelerates the delivery of critical arms and equipment to our allies. This legislation restores the SDAF to its original purpose supporting our partners and advancing American interests around the globe, without costing taxpayers a dime. I applaud Congressman Aderholt for his leadership in drafting this commonsense, strategic legislation.”

The SDAF continues to have strong bipartisan support in Congress and from current and past Administrations.

The Accelerate Revenue for Manufacturing and Sales Act is supported by leading defense organizations, including the Professional Services Counsel, National Defense Industrial Association, and Aerospace Industries Association.

###

MIL-OSI USA: Pappas, Weber Introduce Bipartisan Legislation to Strengthen U.S.-Israel Medical Innovation

Source: United States House of Representatives – Congressman Chris Pappas (D-NH)

Today Congressman Chris Pappas (NH-01) and Congressman Randy Weber (TX-14) introduced the United States-Israel Bilateral Innovation for Research and Development in (BIRD) Health Act of 2025. The legislation directs the Secretary of Health and Human Services to partner with the successful Binational Industrial Research and Development Foundation to create a dedicated BIRD Health Program, modeled after existing collaborations in energy, cyber, and homeland security.

The BIRD Health Act deepens U.S.-Israel collaboration in the development of next-generation health technologies, fortifies domestic supply chains, and reduces our reliance on adversarial nations for critical medical products by leveraging Israel’s world-class biotech ecosystem and America’s unmatched research infrastructure.

“U.S. and Israeli doctors, scientists, and researchers are leading the world in groundbreaking medical advancements, including regenerative medicine, disease prevention, and cancer research,” said Rep. Pappas. “The health technology and innovation program created through this bipartisan legislation will strengthen the bilateral partnership between the U.S. and Israel to address emerging health issues, develop innovative solutions, and save lives.”

“The United States and Israel share one of the strongest, most enduring alliances in the world, and it just makes sense to join forces in advancing life-saving health technologies that benefit both our nations,” said Rep. Weber. “The BIRD Health Act of 2025 builds on our shared strengths to support cutting-edge medical innovation, strengthen supply chains, and improve health outcomes for American families.”

The bill supports:

Joint U.S.-Israel research and development in medical devices, digital health, diagnostics, vaccines, and biotechnology
Manufacturing partnerships to boost U.S.-based production of critical medicines
Innovation ecosystems that promote startups, clinical trials, and the commercialization of new treatments
Data-sharing and cybersecurity protocols to protect patient privacy and medical infrastructure

Read the bill here.

MIL-OSI Submissions: UK Economy – UK borrowing blow makes tax hikes ‘inevitable’ – deVere Group

Source: deVere Group

July 22 2025 – UK government borrowing came in higher than forecast in June, a setback for Chancellor of the Exchequer Rachel Reeves that has markets jittery and households bracing for tax hikes.

“Gilt yields climbed on the news—and so should awareness among individuals with UK assets. The time to protect your wealth is now,” says Nigel Green, CEO of global financial advisory giant deVere Group.

In a sharp warning, he responds to today’s ONS data showing public sector borrowing reached £20.7bn last month—£3.5bn more than expected and the highest June figure outside of the pandemic era.

“This borrowing shock is the flashing red light on the dashboard. The UK is headed toward a fiscal squeeze, and the Chancellor has limited room to manoeuvre. That makes tax rises not just likely—but, in our view, inevitable.”

The increase in borrowing was driven by higher interest payments on inflation-linked debt and ballooning public spending, which has outpaced gains in tax revenues.

The data raises questions about how the government can stick to its fiscal rules without turning to new or increased taxes.

“Markets are already reacting. Gilts dropped and yields jumped, which is a clear signal that investors expect tougher measures ahead. And that usually means taxes—stealth or otherwise—will be deployed to stabilise the books.”

With debt interest payments nearly doubling year-on-year in June and pressure mounting from backbench MPs for wealth and tourist taxes, Nigel Green says the direction of travel is now unambiguous.

“The political noise is getting louder. Whether it’s capital gains, pension reliefs, property, or new forms of wealth taxation, something has to give.

“The Chancellor has ruled out reopening departmental budgets, which narrows the options dramatically.”

He warned that investors, business owners, and anyone with UK assets should not wait to react after the Autumn Budget.

“By the time tax policy changes are announced, it’s often too late to respond effectively. The smart move is to plan proactively—now. When fiscal gaps this size appear, governments act fast, and retrospectively.”

With borrowing at £57.8bn already this financial year and the Office for Budget Responsibility forecasting a potential £30bn hole in public finances by year-end, the deVere CEO says the government’s fiscal hand is being forced.

“There’s no free money left. We’re past the era of cheap borrowing and blank-cheque economics. Markets want discipline. Voters want services. That tension will be resolved through taxation.”

“Those with investment portfolios, property, pensions or inheritances tied to the UK need to assess their exposure and consider future-proofing strategies. This is smart wealth management.”

Despite the political pledge to avoid day-to-day borrowing, the numbers tell a different story. The Treasury is borrowing more, not less, and paying more for it, not less.

“Inflation-linked bonds and rising rates have made it brutally expensive to finance the national debt. That’s going to reshape the economic agenda—and likely your personal finances with it.”

The chief executive called on clients and individuals to get ahead of potential tax changes now, while options remain open and planning is still effective.

“Tax hikes can be disguised, delayed, or dressed up as reform—but they’re still tax hikes. We expect movement on capital gains, inheritance tax, and pension rules in particular, and we believe it would be reckless to assume otherwise.”

He concludes: “We’re urging those with UK ties—whether you live in Britain, invest here, or hold assets here—to speak to advisors urgently.

“Mitigating tax exposure takes time, insight, and action. This isn’t about headlines, it’s about protecting what you’ve built.”

About deVere Group:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.

MIL OSI – Submitted News –

MIL-OSI: Pulse Seismic Inc. Reports Strong Q2 2025 Financial Results and Declares Special and Regular Quarterly Dividends

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, July 22, 2025 (GLOBE NEWSWIRE) — Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to report its financial and operating results for the three and six months ended June 30, 2025. The unaudited condensed consolidated interim financial statements, accompanying notes and MD&A are being filed on SEDAR+ (www.sedarplus.ca) and will be available on Pulse’s website at www.pulseseismic.com.

Today, Pulse’s Board of Directors declared a regular quarterly dividend of $0.0175 per common share and also declared a special dividend of $0.20 per common share. The total dividend declared will be approximately $11.0 million based on Pulse’s 50,755,057 common shares outstanding as of July 22, 2025, to be paid on August 20, 2025, to shareholders of record on August 13, 2025. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse’s dividends are subject to Canadian withholding tax.

“In the first half of 2025 the Company has benefited from increases in traditional data sales as well as energy sector M&A, generating revenue of $41.1 million, an EBITDA margin of 86% and $27.2 million of shareholder free cashflow,” stated Neal Coleman, Pulse’s President and CEO. “Pulse’s industry leading seismic data library contains vital subsurface information used by E&P companies for risk mitigation and maximization of drilling results,” he continued. “The Company continues to rely on shareholder free cashflow as the basis for its capital allocation strategy and remains focused on returns to shareholders, as evidenced by distributing 84% of 2025 free cash flow in the form of dividends. Pulse’s Board of Directors today declared the second special dividend of 2025,” Coleman continued. “In the last 24 months, special dividends of $0.80 have been declared, in addition to the regular dividend which has increased annually and is currently set at $0.07 per year,” he concluded.

HIGHLIGHTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

The regular quarterly dividend of $0.0175 per common share declared and paid in the second quarter of 2025 was a 17% increase over the regular quarterly dividend of $0.015 per common share declared and paid in the first quarter of 2025. A special dividend of $0.20 per common share totaling $10.2 million was also declared and paid in the first quarter of 2025;

The Company renewed its Normal Course Issuer Bid (NCIB) on February 24, 2025. During the six months ended June 30, 2025, the Company purchased and cancelled 80,600 shares under the NCIB at an average price of $2.43 per share, for total cost of approximately $197,000;
Total revenue for the three months ended June 30, 2025, was $18.3 million, compared to $6.3 million for the same period in 2024. Total revenue for the six months ended June 30, 2025, was $41.1 million, compared to $15.1 million for the same period in 2024. Revenue generated in the first half of 2025 reflects an increase of 71% compared to the last three years average of annual revenue;

Shareholder free cash flow^(a) was $11.7 million ($0.23 per share basic and diluted) for the three months ended June 30, 2025, compared to $3.9 million ($0.07 per share basic and diluted) for the same period in 2024. Shareholder free cash flow was $27.2 million ($0.53 per share basic and diluted) for the six months ended June 30, 2025, compared to $8.9 million ($0.17 per share basic and diluted) for the same period in 2024;

EBITDA^(a) was $15.2 million ($0.30 per share basic and diluted) for the three months ended June 30, 2025, compared to $4.4 million ($0.0.09 per share basic and diluted) for the same period in 2024. For the six months ended June 30, 2025, EBITDA was $35.3 million ($0.69 per share basic and diluted) compared to $10.6 million ($0.21 per share basic and diluted) for the same period in 2024;

Net earnings for the three months ended June 30, 2025, was $9.6 million ($0.19 per share basic and diluted) compared to net earnings of $1.3 million ($0.03 per share basic and diluted) for the same period in 2024. Net earnings for the six months ended June 30, 2025, was $22.9 million ($0.45 per share basic and diluted) compared to net earnings of $4.0 million ($0.08 per share basic and diluted) for the same period in 2024; and

At June 30, 2025, the Company had a cash balance of $25.9 million as well as $5.0 million of available liquidity on its revolving demand credit facility.

SELECTED FINANCIAL AND OPERATING INFORMATION


(Thousands of dollars except per share data,	Three months ended June 30,			Six months ended June 30,		Year ended,
numbers of shares and kilometres of seismic data)	2025	2024		2025	2024	December 31,
	(Unaudited)			(Unaudited)		2024
Revenue	18,316	6,300		41,075	15,077	23,379

Amortization of seismic data library	2,224	2,279		4,449	4,549	9,090
Net earnings	9,565	1,341		22,940	4,022	3,391
Per share basic and diluted	0.19	0.03		0.45	0.08	0.07
Cash provided by (used in) operating activities	12,543	(1,269	)	29,158	9,195	14,195
Per share basic and diluted	0.25	(0.02	)	0.57	0.18	0.28
EBITDA ^(a)	15,238	4,418		35,286	10,647	15,496
Per share basic and diluted ^(a)	0.30	0.09		0.69	0.21	0.30
Shareholder free cash flow ^(a)	11,733	3,869		27,152	8,907	12,408
Per share basic and diluted ^(a)	0.23	0.07		0.53	0.17	0.24

Capital expenditures
Seismic data	–	–		–	225	225
Property and equipment	–	–		–	–	45
Total capital expenditures	–	–		–	225	270

Dividends
Regular dividends declared	885	775		1,648	1,490	3,018
Special dividends declared	–	–		10,167	–	2,548
Total dividends declared	885	775		11,815	1,490	5,566

Normal course issuer bid
Number of shares purchased and cancelled	37,300	539,500		80,600	1,166,800	1,784,000
Cost of shares purchased and cancelled	91	1,222		197	2,407	3,880

Weighted average shares outstanding
Basic and diluted	50,761,321	51,734,590		50,795,174	51,928,298	51,448,985
Shares outstanding at period-end				50,755,057	51,455,063	50,837,863

Seismic library
2D in kilometres				829,207	829,207	829,207
3D in square kilometres				65,310	65,310	65,310

FINANCIAL POSITION AND RATIO
	June 30,	June 30,	December 31,
(Thousands of dollars except ratio)	2025	2024	2024
Working capital	24,202	10,996	9,222
Working capital ratio	4.8:1	4.0:1	5.1:1
Cash and cash equivalents	25,876	9,392	8,722
Total assets	36,479	29,184	21,516
Trailing 12 -month (TTM) EBITDA^(b)	40,135	27,528	15,496
Shareholders’ equity	29,177	25,177	18,295

^(a)The Company’s continuous disclosure documents provide discussion and analysis of “EBITDA”, “EBITDA per share”, “shareholder free cash flow” and “shareholder free cash flow per share”. These financial measures do not have standard definitions prescribed by IFRS and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company’s financial performance. The Company’s definition of EBITDA is cash available for interest payments, cash taxes, repayment of debt, purchase of its shares, discretionary capital expenditures and the payment of dividends, and is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization. The Company believes EBITDA assists investors in comparing Pulse’s results on a consistent basis without regard to non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. EBITDA per share is defined as EBITDA divided by the weighted average number of shares outstanding for the period. Shareholder free cash flow further refines the calculation of capital available to invest in growing the Company’s 2D and 3D seismic data library, to repay debt, to purchase its common shares and to pay dividends by deducting non-discretionary expenditures from EBITDA. Non-discretionary expenditures are defined as non-cash expenses, debt financing costs (net of deferred financing expenses amortized in the current period), net restructuring costs and current tax provisions. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the weighted average number of shares outstanding for the period.
These non-GAAP financial measures are defined, calculated and reconciled to the nearest GAAP financial measures in the Management’s Discussion and Analysis.
^(b) TTM EBITDA is defined as the sum of EBITDA generated over the previous 12 months and is used to provide a comparable annualized measure.
These non-GAAP financial measures are defined, calculated and reconciled to the nearest GAAP financial measures in the Management’s Discussion and Analysis.

OUTLOOK
Pulse had a very strong first half year, generating revenue of $41.1 million and ending the quarter with $24.2 million of working capital including $25.9 million in cash. These financial results have provided capital returns to shareholders, strengthened the balance sheet, and positioned the Company for solid financial performance in 2025.

Pulse’s ability to forecast future revenue continues to be challenging, as significant annual fluctuations are the norm in the seismic data library business. Industry trends that we consider relevant as we look forward include land sales in Western Canada, drilling forecasts for the year, commodity price levels, M&A forecasts and the status of industry infrastructure improvements. It is difficult to predict in the midst of the current market dynamics how this will unfold through the remainder of 2025. M&A activity for the year so far, has surpassed many analysts’ earlier expectations and is expected to remain strong for the remainder of 2025. Lower oil prices have contributed to decreased corporate valuations which often lead to acquisition opportunities. Alberta land sales through 2024 were strong, but at midpoint in 2025 have generated just over half the amount for the same period in 2024. In British Columbia land sales were resumed in Q3 2024 after a pause of over three years. New infrastructure, such as the TMX pipeline expansion, a driver of increased drilling activity, which was completed in 2024 has provided increased export capacity. The Canadian Association of Energy Contractors, in November 2024 forecast an increase to 6,604 wells to be drilled in 2025, an approximate 7% increase over 2024. There has been no update published to this forecast, and drilling activity is reported to be relatively stable. LNG Canada’s liquified natural gas export facility is now operational and is expected to contribute to increased drilling and may lead to an improvement in Canadian natural gas prices.

Of course, there continues to be a high level of uncertainty on political and economic fronts. Uncertainty around energy tariffs and trade policy between Canada and the United States, are contributing to the lack of clarity for the future. It is clear that Canada needs to continue to build pipelines and increase natural gas egress, to support the country’s energy security, as well as to secure new buyers of Canadian energy.

Pulse, as previously stated, has low visibility regarding future seismic data library sales levels, regardless of industry conditions. The Company remains focused on business practices that have served throughout the full range of conditions. The Company maintains a strong balance sheet and carries no debt. Led by an experienced and capable management team, Pulse operates with a low-cost structure and focuses on maintaining excellent client relations and providing exceptional customer service. Pulse’s strong financial position, high leverage to increased revenue in its EBITDA margin and careful management of its cash resources continue to translate to the return of capital to shareholders through regular and special dividends.

CORPORATE PROFILE

Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3D seismic and 829,207 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin, where most of Canada’s oil and natural gas exploration and development occur.

For further information, please contact:
Neal Coleman, President and CEO
Or
Pamela Wicks, Vice President Finance and CFO
Tel.: 403-237-5559
Toll-free: 1-877-460-5559
E-mail: info@pulseseismic.com.
Please visit our website at www.pulseseismic.com

This document contains information that constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities legislation. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “forecast”, “target”, “project”, “guidance”, “may”, “will”, “should”, “could”, “estimate”, “predict” or similar words suggesting future outcomes or language suggesting an outlook.

The Outlook section herein contain forward-looking information which includes, but is not limited to, statements regarding:

> The outlook of the Company for the year ahead, including future operating costs and expected revenues;

> Recent events on the political, economic, regulatory, and legal fronts affecting the industry’s medium- to longer-term prospects, including progression and completion of contemplated infrastructure projects;

> The Company’s capital resources and sufficiency thereof to finance future operations, meet its obligations associated with financial liabilities and carry out the necessary capital expenditures through 2025;

> Pulse’s capital allocation strategy;

> Pulse’s dividend policy;

> Oil and natural gas prices and forecast trends;

> Oil and natural gas drilling activity and land sales activity;

> Oil and natural gas company capital budgets;

> Future demand for seismic data;

> Future seismic data sales;

> Pulse’s business and growth strategy; and

> Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance, as they relate to the Company or to the oil and natural gas industry as a whole.

By its very nature, forward-looking information involves inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. Pulse does not publish specific financial goals or otherwise provide guidance, due to the inherently poor visibility of seismic revenue. The Company cautions readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking information.

These factors include, but are not limited to:

> Uncertainty of the timing and volume of data sales;

> Volatility of oil and natural gas prices;

> Risks associated with the oil and natural gas industry in general;

> The Company’s ability to access external sources of debt and equity capital;

> Credit, liquidity and commodity price risks;

> The demand for seismic data;

> The pricing of data library licence sales;

> Cybersecurity;

> Relicensing (change-of-control) fees and partner copy sales;

> Environmental, health and safety risks;

> Federal and provincial government laws and regulations, including those pertaining to taxation, royalty rates, environmental protection, public health and safety;

> Competition;

> Dependence on key management, operations and marketing personnel;

> The loss of seismic data;

> Protection of intellectual property rights;

> The introduction of new products; and

> Climate change.

Pulse cautions that the foregoing list of factors that may affect future results is not exhaustive. Additional information on these risks and other factors which could affect the Company’s operations and financial results is included under “Risk Factors” in the Company’s most recent annual information form, and in the Company’s most recent audited annual financial statements, most recent MD&A, management information circular, quarterly reports, material change reports and news releases. Copies of the Company’s public filings are available on SEDAR+ at www.sedarplus.ca.

When relying on forward-looking information to make decisions with respect to Pulse, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking information contained in this document is provided as of the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, except as required by law. The forward-looking information in this document is provided for the limited purpose of enabling current and potential investors to evaluate an investment in Pulse. Readers are cautioned that such forward-looking information may not be appropriate, and should not be used, for other purposes.

PDF available: http://ml.globenewswire.com/Resource/Download/8df92694-2a01-45f3-b5b4-ecc0f5bd6edb

MIL-OSI USA: Rep. Andrea Salinas Introduces Legislation to Level the Playing Field for the Cider Industry

Source: US Representative Andrea Salinas (OR-06)

Today, U.S. Representative Andrea Salinas (OR-06), introduced the Bubble Tax Modernization Act, which would lower the tax rate for lower-alcohol wine, cider, and mead made with fruit.

Washington, D.C. – Today, U.S. Representative Andrea Salinas (OR-06), introduced the Bubble Tax Modernization Act, which would lower the tax rate for lower-alcohol wine, cider, and mead made with fruit.

Despite the popularity of bubbly beverages, the carbonation tax–colloquially called the ‘bubble tax’ on fruit wine, fruit cider, and fruit mead makes carbonating these agricultural products at sparkling levels cost prohibitive. Most craft beverage entrepreneurs can’t afford to carbonate these products at the level the market wants. The result is that an important American agricultural sector is falling flat.

“Oregon has some of the highest quality fruit in the country, but red tape in our tax code makes it nearly impossible to use these products to make the fruited wines, ciders, and meads that people want,” said Rep. Salinas. “My bill levels the playing field for the cider industry and makes it more affordable to produce the sparkling, fruited drinks consumers want.”

“Cidermakers should not be limited to just pears and apples in order to avoid a massive, unnecessary tax hike on their products,” said Rep. Van Orden. “This bill works for everyone – farmers, cidermakers, and consumers – by allowing any type of fruit to be added to cider and taxed at the standard rate.”

Currently, the tax code dictates that if a sparkling cider, wine, or mead is made with fruits other than apples and pears, then it can only be minimally carbonated, often to the point that it tastes flat to most consumers. If cidermakers want to carbonate their fruited drinks to the same level as other, non-fruited ciders, taxes on these fruited ciders triple. Rep. Salinas’ legislation allows cidermakers to create and carbonate fruited beverages without this higher tax burden, granting them more freedom to produce drinks to match public demand.

“The Bubble Tax Modernization Act is a critical, overdue fix that will finally bring fairness to how cider is taxed in the U.S.,” said Monica Cohen, CEO of the American Cider Association. “It eliminates outdated penalties on carbonated, fruit-forward ciders and gives small cidermakers the freedom to innovate without being punished. This bill supports American agriculture, strengthens rural economies, and helps keep cider accessible to consumers. It’s common-sense legislation and we applaud Representatives Salinas and Van Orden for moving this forward.”

“The Pacific Northwest is home to some of the most innovative and orchard-driven cider producers in the country. Yet outdated federal tax rules have unfairly penalized craft cideries and restricted innovation and expansion into the fruited cider category,” said Emily Ritchie, Executive Director of the Northwest Cider Association. “The Bubble Tax Modernization Act is a common-sense update that will allow our producers to grow, hire more local workers, and invest back into our rural communities and vibrant apple and pear orchards. This is a crucial step toward fairness and opportunity for the Northwest cider industry.”

“New York’s cider industry has become a national leader—thanks to the innovation, resilience, and agricultural roots of our cider producers. But outdated carbonation tax thresholds are holding us back,” said Scott Ramsey, Executive Director of the New York Cider Association. “The Bubble Tax Modernization Act represents a long-overdue step toward fairness for cider makers in New York and across the country. By leveling the playing field, this bill will empower our producers to expand their offerings, hire more local workers, and reinvest in the rural communities and orchards that fuel our economy. We’re proud to support this effort to strengthen one of New York’s most dynamic and agricultural industries.”

The Bubble Tax Modernization Act is endorsed by the American Cider Association, Northwest Cider Association, North Carolina Cider Association, New York Cider Association, and Pennsylvania Cider Guild.

To read the full text of this legislation, click here.

###

MIL-OSI: First Busey Corporation Announces 2025 Second Quarter Earnings

Source: GlobeNewswire (MIL-OSI)

LEAWOOD, Kan., July 22, 2025 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE) Announces 2025 Second Quarter Earnings.

Net Income	Diluted EPS	Net Interest Margin¹	ROAA¹	ROATCE¹
$47.4 million	$0.52	3.49%	1.00%	11.24%
$57.4 million (adj)²	$0.63 (adj)²	3.33% (adj)²	1.21% (adj)²	13.61% (adj)²

MESSAGE FROM OUR CHAIRMAN & CEO

This quarter’s bank merger and data conversion represents a significant milestone for our organization, as we officially welcome CrossFirst Bank customers to Busey Bank. We are proud to offer a premier, full-service banking experience for both consumer and commercial clients, with 78 locations spanning 10 states. Our comprehensive services also include a robust wealth management platform and cutting-edge payment technology solutions through FirsTech, Inc. This transformational partnership allows us to enhance Busey’s rich 157-year legacy of service excellence, further advancing our organization for the benefit of all our Pillars—associates, customers, communities, and shareholders.

Van A. Dukeman
Chairman and Chief Executive Officer

FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME *(unaudited)*

	Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Total interest income	$	247,446		$	166,815		$	131,939		$	414,261		$	257,759
Total interest expense		94,263			63,084			49,407			157,347			99,373
Net interest income		153,183			103,731			82,532			256,914			158,386
Provision for credit losses¹		5,700			45,593			1,908			51,293			6,268
Net interest income after provision for credit losses¹		147,483			58,138			80,624			205,621			152,118
Total noninterest income		44,863			21,223			33,703			66,086			68,616
Total noninterest expense¹		127,833			112,030			75,906			239,863			147,353
Income (loss) before income taxes		64,513			(32,669	)		38,421			31,844			73,381
Income taxes		17,109			(2,679	)		11,064			14,430			19,799
Net income (loss)		47,404			(29,990	)		27,357			17,414			53,582
Dividends on preferred stock		155			—			—			155			—
Net income (loss) available to common stockholders	$	47,249		$	(29,990	)	$	27,357		$	17,259		$	53,582

Basic earnings (loss) per common share	$	0.53		$	(0.44	)	$	0.48		$	0.22		$	0.95
Diluted earnings (loss) per common share	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94
Effective income tax rate		26.52	%		8.20	%		28.80	%		45.31	%		26.98	%

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.

Following the acquisition of CrossFirst Bankshares, Inc. (“CrossFirst”) and its subsidiary CrossFirst Bank, by First Busey Corporation, the holding company for Busey Bank, in the first quarter of 2025, CrossFirst Bank was merged with and into Busey Bank (the “Bank Merger”) on June 20, 2025. At the time of the Bank Merger, CrossFirst Bank banking centers became banking centers of Busey Bank. Throughout this document, we refer to First Busey Corporation, together with its consolidated subsidiaries, as “Busey,” the “Company,” “we,” “us,” or “our.”

Busey’s net income for the second quarter of 2025 was $47.4 million, or $0.52 per diluted common share, compared to a net loss of $30.0 million, or $0.44 per diluted common share, for the first quarter of 2025, and net income of $27.4 million, or $0.47 per diluted common share, for the second quarter of 2024. Annualized return on average assets and annualized return on average tangible common equity² were 1.00% and 11.24%, respectively, for the second quarter of 2025. The second quarter of 2025 represented the first full quarter in which the CrossFirst acquisition contributed to Busey’s financial results.

Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and nonrecurring strategic events, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). We also adjust for net securities gains and losses to align with industry and research analyst reporting. The objective of our presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance. Non-operating pre-tax adjustments for acquisition and restructuring expenses² in the second quarter of 2025 were $16.6 million, with an additional $4.0 million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new Current Expected Credit Losses (“CECL”) model. Further, net securities gains were $6.0 million, almost entirely related to unrealized gains on Busey’s approximately 3% equity ownership of a financial institution that was the target of an announced acquisition at a significant market premium. For more information and a reconciliation of these non-GAAP measures (which are identified with the End Note labeled as 2) in tabular form, see “Non-GAAP Financial Information” beginning on page 13.

Adjusted net income,² which excludes the impact of non-GAAP adjustments, was $57.4 million, or $0.63 per diluted common share, for the second quarter of 2025, compared to $39.9 million, or $0.57 per diluted common share, for the first quarter of 2025 and $30.5 million, or $0.53 per diluted common share, for the second quarter of 2024. Annualized adjusted return on average assets² and annualized adjusted return on average tangible common equity² were 1.21% and 13.61%, respectively, for the second quarter of 2025.

Pre-Provision Net Revenue²

Pre-provision net revenue² was $64.2 million for the second quarter of 2025, compared to $28.7 million for the first quarter of 2025 and $40.7 million for the second quarter of 2024. Pre-provision net revenue to average assets² was 1.35% for the second quarter of 2025, compared to 0.78% for the first quarter of 2025, and 1.35% for the second quarter of 2024.

Adjusted pre-provision net revenue² was $80.8 million for the second quarter of 2025, compared to $54.7 million for the first quarter of 2025 and $42.6 million for the second quarter of 2024. Adjusted pre-provision net revenue to average assets² was 1.70% for the second quarter of 2025, compared to 1.50% for the first quarter of 2025 and 1.42% for the second quarter of 2024.

Net Interest Income and Net Interest Margin²

Net interest income was $153.2 million in the second quarter of 2025, compared to $103.7 million in the first quarter of 2025 and $82.5 million in the second quarter of 2024.

Net interest margin² was 3.49% for the second quarter of 2025, compared to 3.16% for the first quarter of 2025 and 3.03% for the second quarter of 2024. Excluding purchase accounting accretion, adjusted net interest margin² was 3.33% for the second quarter of 2025, compared to 3.08% in the first quarter of 2025 and 3.00% in the second quarter of 2024.

Components of the 33 basis point increase in net interest margin² during the second quarter of 2025, which includes a full quarter of assets assumed in the CrossFirst acquisition, were as follows:

Increased loan portfolio and held for sale loan yields contributed +54 basis points
Increased purchase accounting accretion contributed +8 basis points
Securities repositioning executed in March contributed +4 basis points
Decreased borrowing expense contributed +4 basis points, of which +2 basis points were related to the redemption of subordinated debt in June
Increased non-maturity deposit funding costs contributed -25 basis points
Decreased cash and securities portfolio yield contributed -12 basis points

Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 2.8% over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet repositioning strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have continued to stabilize the funding base, and we had excess earning cash during the second quarter of 2025. Brokered deposit balances were reduced by $368.6 million during the second quarter of 2025 and at June 30, 2025, the Bank had $353.6 million, or 2.2% of total deposits, of remaining brokered funding. Total deposit cost of funds increased, as expected, from 1.91% during the first quarter of 2025 to 2.21% during the second quarter of 2025. Deposit cost of funds increased due to a full quarter of the higher mix of acquired CrossFirst indexed/managed rate customer products and brokered deposits. Busey will continue to deploy excess cash to pay down non-core and non-relationship high cost funding, which we anticipate will compress the asset base in the short term while helping to reduce the Bank’s overall funding cost. We expect the deposit beta will lessen during the year and is expected to normalize in a range between 45% and 50% of the upper limit of the federal funds target range.

Noninterest Income

	Three Months Ended								Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
NONINTEREST INCOME
Wealth management fees	$	16,777	$	17,364		$	15,917		$	34,141		$	31,466
Payment technology solutions		4,956		5,073			5,915			10,029			11,624
Treasury management services		4,981		3,017			2,145			7,998			4,046
Card services and ATM fees		4,880		3,709			3,430			8,589			6,390
Other service charges on deposit accounts		1,513		1,533			2,321			3,046			4,669
Mortgage revenue		776		329			478			1,105			1,224
Income on bank owned life insurance		1,745		1,446			1,442			3,191			2,861
Realized net gains (losses) on the sale of mortgage servicing rights		—		—			277			—			7,742
Net securities gains (losses)		5,997		(15,768	)		(353	)		(9,771	)		(6,728	)
Other noninterest income		3,238		4,520			2,131			7,758			5,322
Total noninterest income	$	44,863	$	21,223		$	33,703		$	66,086		$	68,616

Total noninterest income increased by 111.4% compared to the first quarter of 2025 and increased by 33.1% compared to the second quarter of 2024, primarily due to net securities gains and losses, as well as the benefit of a full quarter of income from the CrossFirst acquisition.

Excluding the impact of net securities gains and losses and the gains on the sale of mortgage servicing rights, adjusted noninterest income² increased by 5.1% to $38.9 million, or 20.2% of operating revenue², during the second quarter of 2025, compared to $37.0 million, or 26.3% of operating revenue², for the first quarter of 2025. Compared to the second quarter of 2024, adjusted noninterest income² increased by 15.1% from $33.8 million, or 29.0% of operating revenue.²

Our fee-based businesses continue to add revenue diversification. Wealth management fees, wealth management referral fees included in other noninterest income, and payment technology solutions contributed 56.4% of adjusted noninterest income² for the second quarter of 2025.

Noteworthy components of noninterest income are as follows:

Wealth management fees declined by 3.4% compared to the first quarter of 2025. The decrease in the second quarter of 2025 was primarily related to seasonal fees, with a decrease in farm management fees, partially offset by higher tax preparation fees. Compared to the second quarter of 2024 wealth management fees increased by 5.4%. Busey’s Wealth Management division ended the second quarter of 2025 with $14.10 billion in assets under care, compared to $13.68 billion at the end of the first quarter of 2025 and $13.02 billion at the end of the second quarter of 2024. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark³ over the last three and five years.
Payment technology solutions includes income from electronic payments, merchant processing, and lockbox. Revenue in this category declined by 2.3% compared the first quarter of 2025 and declined by 16.2% compared to the second quarter of 2024, primarily due to decreases in income from electronic payments.
Treasury management services consist primarily of business analysis charges and wire transfer fees on commercial accounts. Income from treasury management services increased by 65.1% compared to the first quarter of 2025 and increased by 132.2% compared to the second quarter of 2024 due to the addition of CrossFirst commercial services.
Card services and ATM fees, which include both commercial and consumer accounts, increased by 31.6% compared to the first quarter of 2025 and increased by 42.3% compared to the second quarter of 2024 primarily due to addition of CrossFirst corporate card services.
Other service charges on deposit accounts declined by 1.3% compared to the first quarter of 2025 and declined by 34.8% compared to the second quarter of 2024. Declines are largely related to lower non-sufficient fund charges.
Other noninterest income decreased by 28.4% compared to the first quarter of 2025, primarily due to declines in gains on commercial loan sales, loss on sales of other real estate owned and a related reduction in income from the sold property, and decreases in venture capital investments. Compared to the second quarter of 2024, other noninterest income increased by 51.9%, primarily due to increases in venture capital investments, commercial loan servicing income, and other loan fee income.

Operating Efficiency

	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
NONINTEREST EXPENSE
Salaries, wages, and employee benefits	$	78,360	$	67,563	$	43,478	$	145,923	$	85,568
Data processing		14,021		9,575		7,100		23,596		13,650
Net occupancy expense of premises		7,832		5,799		4,590		13,631		9,310
Furniture and equipment expenses		2,409		1,744		1,695		4,153		3,508
Professional fees		2,874		9,511		2,495		12,385		4,748
Amortization of intangible assets		4,592		3,083		2,629		7,675		5,038
Interchange expense		1,297		1,343		1,733		2,640		3,344
FDIC insurance		2,424		2,167		1,460		4,591		2,860
Other noninterest expense¹		14,024		11,245		10,726		25,269		19,327
Total noninterest expense¹	$	127,833	$	112,030	$	75,906	$	239,863	$	147,353

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within other noninterest expense or total noninterest expense.

Total noninterest expense increased by 14.1% compared to the first quarter of 2025 and increased by 68.4% compared to the second quarter of 2024. Growth in noninterest expense was primarily attributable to nonrecurring acquisition expenses related to the CrossFirst acquisition, added costs for operating expenses for two banks during the majority of the second quarter, until the banks were merged on June 20, 2025, and increased expense associated with the larger organization and branch network. Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million, and we expect 50% of the identified synergies to be realized in 2025 and 100% in 2026.

Adjusted noninterest expense,² which excludes acquisition and restructuring expenses and amortization of intangible assets, was $106.6 million in the second quarter of 2025, a 28.6% increase compared to $82.9 million in the first quarter of 2025 and a 50.1% increase compared to $71.1 million in the second quarter of 2024.

Noteworthy components of noninterest expense are as follows:

Salaries, wages, and employee benefits expenses increased by $10.8 million compared to the first quarter of 2025, with acquisition and restructuring expenses declining by $4.3 million. In connection with the CrossFirst acquisition in March and the addition of 16 banking centers, Busey’s workforce expanded, which resulted in only one month of associated expenses during the first quarter of 2025 in contrast to a full quarter of associated expenses reflected in the Company’s results for the second quarter of 2025. Compared to the second quarter of 2024, salaries, wages, and employee benefits expenses increased by $34.9 million, of which $10.4 million was attributable to increases in acquisition and restructuring expenses. Including associates added in connection with the CrossFirst acquisition, Busey has added 430 FTEs over the past year.
Data processing expense increased by $4.4 million compared to the first quarter of 2025 and by $6.9 million compared to the second quarter of 2024, of which $1.7 million and $3.6 million, respectively, was attributable to increases in acquisition and restructuring expenses. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
Professional fees declined by $6.6 million compared to the first quarter of 2025, which was primarily driven by a $7.0 million decrease in acquisition and restructuring expenses. Compared to the second quarter of 2024, professional fees increased by $0.4 million, primarily due to increased audit and accounting fees and legal fees, partially offset by $0.1 million declines in acquisition and restructuring expenses.
Amortization of intangible assets increased by $1.5 million compared to the first quarter of 2025, and by $2.0 million compared to the second quarter of 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets with amortization of $2.4 million and $3.1 million during the second quarter of 2025 and the first six months of 2025, respectively. Busey uses an accelerated amortization methodology.
Other noninterest expense increased by $2.8 million compared to the first quarter of 2025, and increased by $3.3 million compared to the second quarter of 2024. Items contributing to the increases included marketing, business development, supplies, and onboarding costs as well as increases in acquisition and restructuring expenses of $0.2 million compared to the first quarter of 2025 and $0.5 million compared to the second quarter of 2024.

Busey’s efficiency ratio² was 63.9% for the second quarter of 2025, compared to 77.1% for the first quarter of 2025 and 62.6% for the second quarter of 2024. Our adjusted efficiency² ratio was 55.3% for the second quarter of 2025, compared to 58.7% for the first quarter of 2025, and 60.9% for the second quarter of 2024.

Busey’s annualized ratio of adjusted noninterest expense to average assets was 2.24% for the second quarter of 2025, compared to 2.27% for the first quarter of 2025 and 2.36% for the second quarter of 2024. As our business grows, Busey remains focused on prudently managing our expense base and operating efficiency.

BALANCE SHEET STRENGTH

CONDENSED CONSOLIDATED BALANCE SHEETS *(unaudited)*

	As of
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024
ASSETS
Cash and cash equivalents	$	752,352		$	1,200,292		$	285,269
Debt securities available for sale		2,217,788			2,273,874			1,829,896
Debt securities held to maturity		802,965			815,402			851,261
Equity securities		16,171			10,828			9,618
Loans held for sale		10,497			7,270			11,286
Portfolio loans		13,808,619			13,868,357			7,998,912
Allowance for credit losses		(183,334	)		(195,210	)		(85,226	)
Restricted bank stock		77,112			53,518			6,884
Premises and equipment, net		181,394			182,003			121,647
Right of use assets		38,065			40,594			11,137
Goodwill and other intangible assets, net		488,181			496,118			370,580
Other assets		708,930			711,206			560,152
Total assets	$	18,918,740		$	19,464,252		$	11,971,416

LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing deposits	$	3,590,363		$	3,693,070		$	2,832,776
Interest-bearing checking, savings, and money market deposits		9,578,953			9,675,324			5,619,470
Time deposits		2,632,456			3,091,076			1,523,889
Total deposits		15,801,772			16,459,470			9,976,135
Securities sold under agreements to repurchase		158,030			137,340			140,283
Short-term borrowings		—			11,209			—
Long-term debt		189,726			313,535			227,245
Junior subordinated debt owed to unconsolidated trusts		77,187			77,117			74,693
Lease liabilities		39,235			41,111			11,469
Other liabilities		240,244			244,864			207,781
Total liabilities		16,506,194			17,284,646			10,637,606

Stockholders’ equity
Retained earnings		273,799			249,484			261,820
Accumulated other comprehensive income (loss)		(155,311	)		(172,810	)		(220,326	)
Other stockholders’ equity¹		2,294,058			2,102,932			1,292,316
Total stockholders’ equity		2,412,546			2,179,606			1,333,810
Total liabilities & stockholders’ equity	$	18,918,740		$	19,464,252		$	11,971,416

___________________________________________

Net balance of preferred stock ($0.001 par value), common stock ($0.001 par value), additional paid-in capital, and treasury stock.

AVERAGE BALANCES *(unaudited)*

	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
ASSETS
Cash and cash equivalents	$	868,164	$	861,021	$	346,381	$	864,613	$	470,287
Investment securities		3,083,284		2,782,435		2,737,313		2,933,690		2,822,228
Loans held for sale		6,899		3,443		9,353		5,181		7,093
Portfolio loans		13,840,190		9,838,337		8,010,636		11,850,318		7,804,976
Interest-earning assets		17,700,356		13,363,594		11,000,785		15,543,955		11,003,344
Total assets		19,068,086		14,831,298		12,089,692		16,961,396		12,056,950

LIABILITIES & STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits		3,542,617		3,036,127		2,816,293		3,290,770		2,762,439
Interest-bearing deposits		12,450,529		9,142,781		7,251,582		10,805,793		7,290,844
Total deposits		15,993,146		12,178,908		10,067,875		14,096,563		10,053,283
Federal funds purchased and securities sold under agreements to repurchase		141,978		144,838		144,370		143,400		161,514
Interest-bearing liabilities		12,985,015		9,627,841		7,725,832		11,315,702		7,778,744
Total liabilities		16,783,504		12,896,222		10,757,877		14,850,601		10,753,180
Stockholders’ equity – preferred		103,619		2,669		—		53,423		—
Stockholders’ equity – common		2,180,963		1,932,407		1,331,815		2,057,372		1,303,770
Tangible common equity¹		1,686,490		1,521,387		955,591		1,604,394		939,150

___________________________________________

See “Non-GAAP Financial Information” for reconciliation.

Busey’s financial strength is built on a long-term conservative operating approach. That focus has endured over time and will continue to guide us in the future.

Total assets were $18.92 billion as of June 30, 2025, compared to $19.46 billion as of March 31, 2025, and $11.97 billion as of June 30, 2024. Average interest-earning assets were $17.70 billion for the second quarter of 2025, compared to $13.36 billion for the first quarter of 2025, and $11.00 billion for the second quarter of 2024.

Portfolio Loans

We remain steadfast in our conservative approach to underwriting and our disciplined approach to pricing. Loan demand has been tempered with borrowers hesitant to invest because of lingering macroeconomic uncertainty. At the same time, our commercial real estate portfolio continues to season, resulting in payoffs as properties are completed, stabilized, and refinanced to permanent markets or sold. We expect continued pressure from paydowns within our commercial real estate portfolio through the remainder of 2025. Portfolio loans totaled $13.81 billion at June 30, 2025, compared to $13.87 billion at March 31, 2025, and $8.00 billion at June 30, 2024.

Average portfolio loans were $13.84 billion for the second quarter of 2025, compared to $9.84 billion for the first quarter of 2025 and $8.01 billion for the second quarter of 2024.

Asset Quality

Asset quality continues to be strong. Busey Bank maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment. Following the Bank Merger in June, we are operating as one bank, with a singular credit policy, concentration limits, and monitoring that will continue to align with Busey Bank’s pillars of credit quality.

ASSET QUALITY *(unaudited)*

	As of
(dollars in thousands)	June 30, 2025			March 31, 2025			June 30, 2024
Total assets	$	18,918,740		$	19,464,252		$	11,971,416
Portfolio loans		13,808,619			13,868,357			7,998,912
Loans 30 – 89 days past due		42,188			18,554			23,463
Non-performing loans:
Non-accrual loans		53,614			48,647			8,393
Loans 90+ days past due and still accruing		941			6,077			712
Non-performing loans		54,555			54,724			9,105
Other non-performing assets		3,596			4,757			90
Non-performing assets		58,151			59,481			9,195
Substandard (excludes 90+ days past due)		117,580			131,078			86,579
Classified assets	$	175,731		$	190,559		$	95,774

Allowance for credit losses	$	183,334		$	195,210		$	85,226

RATIOS
Non-performing loans to portfolio loans		0.40	%		0.39	%		0.11	%
Non-performing assets to total assets		0.31	%		0.31	%		0.08	%
Non-performing assets to portfolio loans and other non-performing assets		0.42	%		0.43	%		0.11	%
Allowance for credit losses to portfolio loans		1.33	%		1.41	%		1.07	%
Coverage ratio of the allowance for credit losses to non-performing loans	3.36 x			3.57 x			9.36 x
Classified assets to Bank Tier 1 capital¹and reserves		7.70	%		8.40	%		6.40	%

___________________________________________

Capital amounts for the second quarter of 2025 are not yet finalized and are subject to change.

Loans 30-89 days past due increased by $23.6 million compared to March 31, 2025, and increased by $18.7 million compared to June 30, 2024. Increases are primarily due to two commercial credits, one of which—representing approximately $12.5 million—was brought current after the end of the second quarter.

Non-performing loans decreased by $0.2 million compared to March 31, 2025, and increased by $45.5 million compared to June 30, 2024, with the increase compared to the prior year due to loans purchased with credit deterioration (“PCD” loans) assumed in the CrossFirst acquisition. Non-performing loans were 0.40% of portfolio loans as of June 30, 2025, a 1 basis point increase from March 31, 2025, and a 29 basis point increase from June 30, 2024.

Non-performing assets decreased by $1.3 million compared to March 31, 2025, and increased by $49.0 million compared to June 30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition. Non-performing assets represented 0.31% of total assets as of both June 30, 2025, and March 31, 2025, which is a 23 basis point increase from June 30, 2024.

Classified assets decreased by $14.8 million compared to March 31, 2025, and increased by $80.0 million compared to June 30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition.

The allowance for credit losses was $183.3 million as of June 30, 2025, representing 1.33% of total portfolio loans outstanding, and providing coverage of 3.36 times our non-performing loans balance.

NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) *(unaudited)*

	Three Months Ended							Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024			June 30, 2025		June 30, 2024
Net charge-offs (recoveries)	$	12,882	$	31,429	$	9,856		$	44,311	$	15,072

Provision for loan losses¹	$	1,005	$	42,452	$	2,277		$	43,457	$	7,315
Provision for unfunded commitments²		4,695		3,141		(369	)		7,836		(1,047	)
Provision for credit losses³	$	5,700	$	45,593	$	1,908		$	51,293	$	6,268

___________________________________________

Amounts reported as provision for loan losses for periods ending prior to June 30, 2025, were previously reported as provision for credit losses. March 31, 2025, included $42.4 million to establish an initial allowance for credit losses for loans purchased without credit deterioration (“non-PCD” loans) following the close of the CrossFirst acquisition.
June 30, 2025, included an additional $4.0 million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new CECL model. March 31, 2025, included $3.1 million to establish an initial allowance for unfunded commitments following the close of the CrossFirst acquisition.
Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses.

Net charge-offs decreased by $18.5 million when compared to the first quarter of 2025, and increased by $3.0 million when compared with the second quarter of 2024. Net charge-offs during the second quarter of 2025 primarily related to one legacy-Busey medical office credit. Net charge-offs during the first quarter of 2025 included $29.6 million related to PCD loans acquired from CrossFirst Bank, which were fully reserved at acquisition and did not require recording additional provision expense.

The $1.0 million provision for loan losses recorded in the second quarter of 2025 included a release of the PCD provision of $11.8 million due to PCD loan payoffs/paydowns and non-PCD provision expense of $12.8 million to support charge-offs, to adjust for the loan portfolio mix, and as a response to economic factors.

Deposits

Total deposits were $15.80 billion at June 30, 2025, compared to $16.46 billion at March 31, 2025, and $9.98 billion at June 30, 2024. Average deposits were $15.99 billion for the second quarter of 2025, compared to $12.18 billion for the first quarter of 2025 and $10.07 billion for the second quarter of 2024. The deliberate run-off of higher cost brokered deposits and listing service CD reductions accounted for $386.8 million of the quarter over quarter decrease as well as seasonal tax payments that put additional pressure on funding during the quarter.

Core deposits² accounted for 92.5% of total deposits as of June 30, 2025. The quality of our core deposit franchise is a critical value driver of our institution. We estimated that 33% of our deposits were uninsured and uncollateralized⁴ as of June 30, 2025, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the second quarter of 2025 had a weighted average term of 8.0 months at a rate of 3.74%, which was 80 basis points below our average marginal wholesale equivalent-term funding cost during the quarter.

Borrowings

On June 1, 2025, Busey redeemed the entire $125.0 million outstanding principal amount of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Subordinated Notes”). The aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest thereon up to, but excluding, June 1, 2025, was $128.3 million.

Liquidity

As of June 30, 2025, Busey’s available sources of on- and off-balance sheet liquidity⁵ totaled $7.95 billion. Furthermore, Busey’s balance sheet liquidity profile continues to be aided by the cash flows expected from Busey’s relatively short-duration securities portfolio. Those cash flows were approximately $123.1 million in the second quarter of 2025. Cash flows from maturing securities within our portfolio are expected to be approximately $181.0 million for the remainder of 2025, with a current book yield of 2.52%, and approximately $289.7 million for 2026, with a current book yield of 2.58%.

Capital Strength

The strength of our balance sheet is also reflected in our capital foundation. Although still impacted by the strategic deployment of capital for the CrossFirst acquisition, as well as by Busey’s active share repurchase program, our capital ratios remain strong, and as of June 30, 2025, our estimated regulatory capital ratios⁶ continued to provide a buffer of more than $870 million above levels required to be designated well-capitalized. Busey’s Common Equity Tier 1 ratio is estimated⁶ to be 12.22% at June 30, 2025, compared to 12.00% at March 31, 2025, and 13.20% at June 30, 2024. Our Total Capital to Risk Weighted Assets ratio is estimated⁶ to be 15.75% at June 30, 2025, compared to 14.88% at March 31, 2025, and 17.50% at June 30, 2024.

Busey’s tangible common equity² was $1.71 billion at June 30, 2025, compared to $1.68 billion at March 31, 2025, and $963.2 million at June 30, 2024. Tangible common equity² represented 9.27% of tangible assets at June 30, 2025, compared to 8.83% at March 31, 2025, and 8.30% at June 30, 2024.

Busey’s tangible book value per common share² was $19.18 at June 30, 2025, compared to $18.62 at March 31, 2025, and $16.97 at June 30, 2024, reflecting a 13.0% year-over-year increase.

Dividends

Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. During the second quarter of 2025, Busey paid a dividend of $0.25 per share on its common stock. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980. Additionally, during the second quarter of 2025, Busey paid a dividend of $20.00 per share on its Series A Non-cumulative Perpetual Preferred Stock, which was issued in connection with the CrossFirst acquisition.

Series B Preferred Stock Issuance

On May 20, 2025, Busey issued an aggregate of 8,600,000 depositary shares (the “Depositary Shares”), each representing a 1/40th interest in a share of Busey’s 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock, $0.001 par value (the “Series B Preferred Stock”), with a liquidation preference of $1,000 per share of Series B Preferred Stock (equivalent to $25 per Depositary Share). Additional information about the Depositary Shares and Series B Preferred Stock issuance can be found in Busey’s 8-K filed with the SEC on May 20, 2025, and the related exhibits thereto.

Share Repurchases

During the second quarter of 2025, Busey’s board of directors authorized the purchase of up to 2,000,000 additional shares of the Company’s common stock under Busey’s stock repurchase plan. Busey purchased 1,012,000 shares of its common stock under the plan during the second quarter of 2025 at a weighted average price of $21.40 per share for a total of $21.7 million. As of June 30, 2025, Busey had 2,687,275 shares remaining available for repurchase under the plan.

SECOND QUARTER EARNINGS INVESTOR PRESENTATION

For additional information on Busey’s financial condition and operating results, please refer to our Q2 2025 Earnings Investor Presentation furnished via Form 8‑K on July 22, 2025, in connection with this earnings release.

CORPORATE PROFILE

As of June 30, 2025, First Busey Corporation (Nasdaq: BUSE) was a $18.92 billion financial holding company headquartered in Leawood, Kansas.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation headquartered in Champaign, Illinois, had total assets of $18.87 billion as of June 30, 2025. Busey Bank currently has 78 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, four in the Dallas-Fort Worth-Arlington Metropolitan Statistical Area, three in the Kansas City Metropolitan Statistical Area, three in Southwest Florida, one in Indianapolis, two in Oklahoma City, one in Tulsa, one in Wichita, one in Denver, one in Colorado Springs, one in Phoenix, one in Tucson, and one in New Mexico. More information about Busey Bank can be found at busey.com.

Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $14.10 billion as of June 30, 2025. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

For the fourth consecutive year, Busey was named among Forbes’ 2025’s America’s Best Banks. In 2025, Forbes also recognized Busey as a Best-in-State Bank, based on rankings of customer service, quality of financial advice, fee structures, ease of digital services, accessing help at branch locations and the degree of trust inspired. Busey was also named among the 2024 Best Banks to Work For by American Banker and the 2024 Best Places to Work in Money Management by Pensions and Investments. We are honored to be consistently recognized as an outstanding financial services organization with an engaged culture of integrity and commitment to community development.

NON-GAAP FINANCIAL INFORMATION

This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring items and provide additional perspective on Busey’s performance over time.

The following tables present reconciliations between these non-GAAP measures and what management believes to be the most directly comparable GAAP financial measures.

These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Pre-Provision Net Revenue and Related Measures

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses (GAAP)			(5,997	)		15,768			353			9,771			6,728
Total noninterest expense (GAAP)¹			(127,833	)		(112,030	)		(75,906	)		(239,863	)		(147,353	)
Pre-provision net revenue (Non-GAAP)	[a]		64,216			28,692			40,682			92,908			86,377
Acquisition and restructuring expenses, excluding initial provision expenses			16,600			26,026			2,212			42,626			2,620
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted pre-provision net revenue (Non-GAAP)	[b]	$	80,816		$	54,718		$	42,617		$	135,534		$	81,255

Average total assets	[c]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950

Pre-provision net revenue to average total assets (Non-GAAP)²	[a÷c]		1.35	%		0.78	%		1.35	%		1.10	%		1.44	%
Adjusted pre-provision net revenue to average total assets (Non-GAAP)²	[b÷c]		1.70	%		1.50	%		1.42	%		1.61	%		1.36	%

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.
Annualized measure.

Adjusted Net Income, Average Tangible Common Equity, and Related Ratios

		Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net income (loss) (GAAP)	[a]	$	47,404		$	(29,990	)	$	27,357		$	17,414		$	53,582
Day 2 provision for credit losses¹			—			45,572			—			45,572			—
Adjustment of initial provision for unfunded commitments due to adoption of new model¹			4,030			—			—			4,030			—
Other acquisition expenses			16,600			26,026			2,212			42,626			2,497
Restructuring expenses			—			—			—			—			123
Net securities (gains) losses			(5,997	)		15,768			353			9,771			6,728
Realized net (gains) losses on the sale of mortgage servicing rights			—			—			(277	)		—			(7,742	)
Related tax (benefit) expense²			(4,971	)		(22,069	)		(572	)		(27,040	)		(402	)
Non-recurring deferred tax adjustment³			328			4,591			1,446			4,919			1,446
Adjusted net income (Non-GAAP)⁴	[b]		57,394			39,898			30,519			97,292			56,232
Preferred dividends	[c]		155			—			—			155			—
Adjusted net income available to common stockholders (Non-GAAP)	[d]	$	57,239		$	39,898		$	30,519		$	97,137		$	56,232

Weighted average number of common shares outstanding, diluted (GAAP)	[e]		90,883,711			68,517,647			57,853,231			80,251,577			57,129,865
Diluted earnings (loss) per common share (GAAP)	[(a-c)÷e]	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94

Weighted average number of common shares outstanding, diluted (Non-GAAP)⁵	[f]		90,883,711			69,502,717			57,853,231			80,251,577			57,129,865
Adjusted diluted earnings per common share (Non-GAAP)^5,6	[d÷f]	$	0.63		$	0.57		$	0.53		$	1.21		$	0.98

Average total assets	[g]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Return on average assets (Non-GAAP)⁶	[a÷g]		1.00	%	(0.82)%				0.91	%		0.21	%		0.89	%
Adjusted return on average assets (Non-GAAP)⁴^,⁶	[b÷g]		1.21	%		1.09	%		1.02	%		1.16	%		0.94	%

Average common equity		$	2,180,963		$	1,932,407		$	1,331,815		$	2,057,372		$	1,303,770
Average goodwill and other intangible assets, net			(494,473	)		(411,020	)		(376,224	)		(452,978	)		(364,620	)
Average tangible common equity (Non-GAAP)	[h]	$	1,686,490		$	1,521,387		$	955,591		$	1,604,394		$	939,150

Return on average tangible common equity (Non-GAAP)⁶	[(a-c)÷h]		11.24	%	(7.99)%				11.51	%		2.17	%		11.47	%
Adjusted return on average tangible common equity (Non-GAAP)⁴^,⁶	[d÷h]		13.61	%		10.64	%		12.85	%		12.21	%		12.04	%

___________________________________________

The Day 2 provision represents the initial provision for credit losses recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and unfunded commitments and is reflected within the provision for credit losses line on the Statement of Income.
Tax benefits were calculated for the year-to-date periods using tax rates of 26.51% and 25.03% for the six months ended June 30, 2025 and 2024, respectively. Tax benefits for the quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.
A deferred valuation tax adjustment in 2025 was recorded in connection with the CrossFirst acquisition and the expansion of Busey’s footprint into new states. Additionally, 2025 includes a write-off of deferred tax assets related to non-deductible acquisition-related expenses. A deferred tax valuation adjustment in 2024 resulted from a change to Busey’s Illinois apportionment rate due to recently enacted regulations. Deferred tax adjustments are reflected within the income taxes line on the Statement of Income.
Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and one-time deferred tax valuation adjustments. In 2024, these adjusting items were presented as further adjustments to adjusted net income.
Dilution includes shares that would have been dilutive if there had been net income during the period.
Annualized measure.

Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[a]		153,974			104,268			82,934			258,242			159,237
Purchase accounting accretion related to business combinations			(7,119	)		(2,728	)		(812	)		(9,847	)		(1,016	)
Adjusted net interest income (Non-GAAP)	[b]	$	146,855		$	101,540		$	82,122		$	248,395		$	158,221

Average interest-earning assets (Non-GAAP)	[c]	$	17,700,356		$	13,363,594		$	11,000,785		$	15,543,955		$	11,003,344

Net interest margin (Non-GAAP)²	[a÷c]		3.49	%		3.16	%		3.03	%		3.35	%		2.91	%
Adjusted net interest margin (Non-GAAP)²	[b÷c]		3.33	%		3.08	%		3.00	%		3.22	%		2.89	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Annualized measure.

Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Efficiency Ratios, and Adjusted Noninterest Expense to Average Assets

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)	[a]	$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[b]		153,974			104,268			82,934			258,242			159,237

Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses			(5,997	)		15,768			353			9,771			6,728
Noninterest income excluding net securities gains and losses (Non-GAAP)	[c]		38,866			36,991			34,056			75,857			75,344
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted noninterest income (Non-GAAP)	[d]	$	38,866		$	36,991		$	33,779		$	75,857		$	67,602

Tax-equivalent revenue (Non-GAAP)	[e = b+c]	$	192,840		$	141,259		$	116,990		$	334,099		$	234,581
Adjusted tax-equivalent revenue (Non-GAAP)	[f = b+d]		192,840			141,259			116,713			334,099			226,839
Operating revenue (Non-GAAP)	[g = a+d]		192,049			140,722			116,311			332,771			225,988

Adjusted noninterest income to operating revenue (Non-GAAP)	[d÷g]		20.24	%		26.29	%		29.04	%		22.80	%		29.91	%

Total noninterest expense (GAAP)²		$	127,833		$	112,030		$	75,906		$	239,863		$	147,353
Amortization of intangible assets			(4,592	)		(3,083	)		(2,629	)		(7,675	)		(5,038	)
Noninterest expense excluding amortization of intangible assets (Non-GAAP)²	[h]		123,241			108,947			73,277			232,188			142,315
Acquisition and restructuring expenses, excluding initial provision expenses			(16,600	)		(26,026	)		(2,212	)		(42,626	)		(2,620	)
Adjusted noninterest expense (Non-GAAP)²	[i]	$	106,641		$	82,921		$	71,065		$	189,562		$	139,695

Efficiency ratio (Non-GAAP)²	[h÷e]		63.91	%		77.13	%		62.64	%		69.50	%		60.67	%
Adjusted efficiency ratio (Non-GAAP)²	[i÷f]		55.30	%		58.70	%		60.89	%		56.74	%		61.58	%

Average total assets	[j]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Adjusted noninterest expense to average assets (Non-GAAP)²^,³	[i÷j]		2.24	%		2.27	%		2.36	%		2.25	%		2.33	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense. This change affects all measures and ratios derived from total noninterest expense.
Annualized measure.

Tangible Assets, Tangible Common Equity, and Related Measures and Ratio

		As of
*(dollars in thousands, except per share amounts)*		June 30, 2025			March 31, 2025			June 30, 2024
Total assets (GAAP)		$	18,918,740		$	19,464,252		$	11,971,416
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible assets (Non-GAAP)¹	[a]	$	18,430,559		$	18,968,134		$	11,600,836

Total stockholders’ equity (GAAP)		$	2,412,546		$	2,179,606		$	1,333,810
Preferred stock and additional paid in capital on preferred stock			(215,197	)		(7,750	)		—
Common equity	[b]		2,197,349			2,171,856			1,333,810
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible common equity (Non-GAAP)¹	[c]	$	1,709,168		$	1,675,738		$	963,230

Tangible common equity to tangible assets (Non-GAAP)¹	[c÷a]		9.27	%		8.83	%		8.30	%

Ending number of common shares outstanding (GAAP)	[d]		89,104,678			90,008,178			56,746,937
Book value per common share (Non-GAAP)	[b÷d]	$	24.66		$	24.13		$	23.50
Tangible book value per common share (Non-GAAP)	[c÷d]	$	19.18		$	18.62		$	16.97

___________________________________________

Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity for all periods presented to exclude any tax adjustment.

Core Deposits and Related Ratio

		As of
*(dollars in thousands)*		June 30, 2025			March 31, 2025			June 30, 2024
Total deposits (GAAP)	[a]	$	15,801,772		$	16,459,470		$	9,976,135
Brokered deposits, excluding brokered time deposits of $250,000 or more			(353,614	)		(722,224	)		(43,089	)
Time deposits of $250,000 or more			(827,762	)		(867,035	)		(314,461	)
Core deposits (Non-GAAP)	[b]	$	14,620,396		$	14,870,211		$	9,618,585

Core deposits to total deposits (Non-GAAP)	[b÷a]		92.52	%		90.34	%		96.42	%

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures, the threat or implementation of tariffs, trade wars, and changes to immigration policy); (2) changes in, and the interpretation and prioritization of, local, state, and federal laws, regulations, and governmental policies (including those concerning Busey’s general business); (3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (4) unexpected results of acquisitions, including the acquisition of CrossFirst, which may include the failure to realize the anticipated benefits of the acquisitions and the possibility that the transaction and integration costs may be greater than anticipated; (5) the imposition of tariffs or other governmental policies impacting the value of products produced by Busey’s commercial borrowers; (6) new or revised accounting policies and practices as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission, or the Public Company Accounting Oversight Board; (7) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (8) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (9) technological changes implemented by us and other parties, including our third-party vendors, which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (10) the loss of key executives or associates, talent shortages, and employee turnover; (11) unexpected outcomes and costs of existing or new litigation, investigations, or other legal proceedings, inquiries, and regulatory actions involving Busey (including with respect to Busey’s Illinois franchise taxes); (12) fluctuations in the value of securities held in Busey’s securities portfolio, including as a result of changes in interest rates; (13) credit risk and risk from concentrations (by type of borrower, geographic area, collateral, and industry), within Busey’s loan portfolio and large loans to certain borrowers (including commercial real estate loans); (14) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversify their exposure; (15) the level of non-performing assets on Busey’s balance sheets; (16) interruptions involving information technology and communications systems or third-party servicers; (17) breaches or failures of information security controls or cybersecurity-related incidents; (18) the economic impact on Busey and its customers of climate change, natural disasters, and exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts; (19) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact Busey’s cost of funds; (20) the ability to maintain an adequate level of allowance for credit losses on loans; (21) the effectiveness of Busey’s risk management framework; and (22) the ability of Busey to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

END NOTES

1	Annualized measure.
2	Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see “Non-GAAP Financial Information.”
3	The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.
4	Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250,000 Federal Deposit Insurance Corporation insurance limit, less intercompany accounts, fully collateralized accounts (including preferred deposits), and pass-through accounts where clients have deposit insurance at the correspondent financial institution.
5	On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
6	Capital amounts and ratios for the second quarter of 2025 are not yet finalized and are subject to change.

INVESTOR CONTACT: Scott A. Phillips, Interim Chief Financial Officer | 239-689-7167

MIL-OSI: Baker Hughes Company Announces Second-Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Second-quarter highlights

Orders of $7.0 billion, including $3.5 billion of IET orders.
RPO of $34.0 billion, including record IET RPO of $31.3 billion.
Revenue of $6.9 billion, down 3% year-over-year.
Attributable net income of $701 million.
GAAP diluted EPS of $0.71 and adjusted diluted EPS* of $0.63.
Adjusted EBITDA* of $1,212 million, up 7% year-over-year.
Cash flows from operating activities of $510 million and free cash flow* of $239 million.
Returns to shareholders of $423 million, including $196 million of share repurchases.

HOUSTON and LONDON, July 22, 2025 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the second quarter of 2025.

“We delivered strong second-quarter results, with total adjusted EBITDA margins increasing 170 basis points year-over-year to 17.5% despite a modest decline in revenue. This performance reflects the benefits of structural cost improvements and continued deployment of our business system, which is driving higher productivity, stronger operating leverage and more durable earnings across the company,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

“IET orders totaled $3.5 billion in the quarter, resulting in another record backlog for the segment. Importantly, order momentum remained strong, supported by more than $550 million of data center related orders, despite the absence of large LNG awards. Following a strong first half and a positive outlook for second half awards, we are confident of achieving the full-year order guidance range for IET.”

“We remain confident in our ability to deliver solid performance in 2025, with continued growth in IET helping to offset softness in more market-sensitive areas of OFSE – underscoring the strength of our portfolio and the benefits of our strategic diversification. Accordingly, we are raising our full-year revenue and EBITDA guidance for IET and reestablishing full-year guidance for OFSE.”

“During the quarter, we also announced three strategic transactions to advance our portfolio optimization strategy, reinforcing efforts to enhance the durability of earnings and cash flow while creating long-term value for shareholders. These actions are designed to unlock value from non-core businesses in our portfolio and redeploy that capital into higher-margin opportunities that fit our financial and strategic frameworks.”

“We are progressing with our strategy of positioning the company for sustainable, differentiated growth and commend the focus and dedication of our people in executing this strategy,” concluded Simonelli.

* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

	Three Months Ended						Variance
(in millions except per share amounts)	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
Orders	$	7,032	$	6,459	$	7,526	9	%	(7	%)
Revenue		6,910		6,427		7,139	8	%	(3	%)
Net income attributable to Baker Hughes		701		402		579	74	%	21	%
Adjusted net income attributable to Baker Hughes*		623		509		568	22	%	10	%
Adjusted EBITDA*		1,212		1,037		1,130	17	%	7	%
Diluted earnings per share (EPS)		0.71		0.40		0.58	76	%	22	%
Adjusted diluted EPS*		0.63		0.51		0.57	23	%	11	%
Cash flow from operating activities		510		709		348	(28	%)	47	%
Free cash flow*		239		454		106	(47	%)	F

* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

“F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

Quarter Highlights

Executing our portfolio optimization strategy

In the second quarter, Baker Hughes announced three strategic transactions, all of which reflect a disciplined capital allocation framework and a focus on core businesses with strong return potential.

First, the Company signed an agreement to form a joint venture with a subsidiary of Cactus, Inc., contributing the Oilfield Services & Equipment’s (“OFSE“) Surface Pressure Control (“SPC“) product line in exchange for approximately $345 million while maintaining a minority ownership stake.

Second, the Company announced an agreement to sell the Precision Sensors & Instrumentation (“PSI“) product line within Industrial & Energy Technology (“IET“) to Crane Company for approximately $1.15 billion. These proceeds will enhance the Company’s flexibility to reinvest in higher-growth, higher-return areas that support further margin expansion and improved returns.

Finally, Baker Hughes agreed to acquire Continental Disc Corporation (“CDC“), a leading provider of pressure management solutions, for approximately $540 million. The CDC acquisition strengthens the IET Industrial Products portfolio with a highly complementary, margin-accretive business that expands the Company’s position in the flow and pressure control market and enhances recurring, lifecycle driven revenue.

Key awards and technology achievements

The Company continued to support the development of critical data center projects, with year-to-date data center awards of more than $650 million. IET received an award to supply 30 NovaLT™ turbines, representing our largest data center award to-date. The turbines, alongside other associated Baker Hughes equipment, will deliver up to 500 megawatts (MW) of reliable and efficient power for data center development across various U.S. locations.

Frontier Infrastructure awarded a contract for NovaLT™ turbines, delivering up to 270 MW of power for its data center projects in Wyoming and Texas. This follows the March 2025 enterprise-wide agreement to accelerate large scale carbon capture and storage (“CCS“) and power solutions.

Baker Hughes continues to grow the pipeline of future data center opportunities. At the Saudi-U.S. Investment Forum in May, the Company signed an MoU with DataVolt that plans to power data centers globally, including the NEOM project in the Kingdom that intends to utilize Baker Hughes’ multi-fuel NovaLT™ technology solution.

In addition to growing demand from data center applications, IET experienced increased demand for NovaLT™ turbines in the gas infrastructure sector. During the second quarter, the segment secured an award for four gas turbines to support Aramco’s Master Gas System III pipeline project. Including this award, we have secured a total of $2.9 billion in gas infrastructure equipment orders over the past six quarters.

Highlighting the durability of IET’s lifecycle model, the segment was awarded several aftermarket services contracts. In Gas Technology Services (“GTS“), the Company secured more than $350 million of Contractual Services Agreements (“CSA“) during the quarter. We signed a maintenance agreement with Belayim Petroleum Company (“Petrobel”) to improve uptime and reliability of critical turbomachinery equipment in Egypt. Also in GTS, we renewed a multi-year service agreement with Oman LNG, including resident engineering support along with digital remote monitoring and diagnostics services delivered through iCenter™.

The Company gained further traction with New Energy globally, with year-to-date bookings now totaling $1.25 billion. In Climate Technology Solutions (“CTS“), we secured one of our largest CCS orders to-date, providing compression technology for a CCS hub in the Middle East. Also in CTS, we signed a framework agreement with Energinet in Denmark to supply 16 reciprocating compressor packages, supporting an increase in biogas production while driving methane and CO₂ emissions reduction for gas infrastructure across the country.

Industrial Technology continued to demonstrate strong momentum across multiple end markets. In Industrial Solutions, we secured a variety of awards for our Cordant™ suite of solutions. This includes an award from a large NOC to deploy Asset Performance Management across several compression stations in the Middle East, and an award from NOVA Chemicals to optimize maintenance spend and maximize production.

OFSE maintained strong momentum in Mature Assets Solutions around the globe. In Angola, OFSE was awarded multi-year production solutions contracts for chemicals, artificial lift, and digital services to support a major operator’s offshore activities. In Kazakhstan, the TOPAN and Baker Hughes joint venture secured a critical production chemicals and services award. In Norway, Equinor awarded OFSE a contract to industrialize offshore plug and abandonment (“P&A“) operations in the Oseberg East field, which followed the announcement of a multi-year P&A framework agreement for integrated well services.

OFSE saw continued adoption of Leucipa™ automated field production solution, securing an award from Repsol for next-generation AI capabilities following the MoU signed in October 2024. The Company also signed an agreement with ENI to deploy Leucipa for electric submersible pumps (“ESP“) optimization and AI-powered predictive failure analytics in the Middle East.

Also in the Middle East, Baker Hughes signed a master services agreement with Aramco for installation and maintenance of ESPs across the Kingdom of Saudi Arabia.

In North America, OFSE secured a multi-year contract to provide drag reducing chemicals to be deployed on Genesis Energy’s Cameron Highway Oil Pipeline and Poseidon systems, each of which is operated and 64% owned by Genesis Energy. To support this agreement, OFSE will expand its chemicals manufacturing footprint and deploy Leucipa. Additionally, bp awarded OFSE a multi-year chemicals management services contract to optimize throughput and asset reliability in the U.S. Gulf Coast.

In Germany, OFSE successfully drilled Lower Saxony’s first productive deep geothermal exploration well, a project that leverages OFSE’s integrated well construction and production capabilities and the Company’s industry-leading subsurface-to-surface digital solutions to monitor and optimize operational performance.

Consolidated Financial Results

Revenue for the quarter was $6,910 million, an increase of 8% sequentially and down $229 million year-over-year. The decrease in revenue year-over-year was driven by a decrease in OFSE partially offset by an increase in IET.

The Company’s total book-to-bill ratio in the second quarter of 2025 was 1.0; the IET book-to-bill ratio was 1.1.

Net income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for the second quarter of 2025 was $701 million. Net income increased $299 million sequentially and increased $122 million year-over-year.

Adjusted net income (a non-GAAP financial measure) for the second quarter of 2025 was $623 million, which excludes adjustments totaling $78 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted net income for the second quarter of 2025 was up 22% sequentially and up 10% year-over-year.

Depreciation and amortization for the second quarter of 2025 was $293 million.

Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2025 was $1,212 million, which excludes adjustments totaling $102 million. See Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the second quarter was up 17% sequentially and up 7% year-over-year.

The sequential increase in adjusted net income and adjusted EBITDA was primarily driven by an increase in volume, favorable FX, and overall productivity. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by productivity and structural cost out initiatives, favorable FX, partially offset by lower volume in OFSE, and cost inflation in both segments.

Other Financial Items

Remaining Performance Obligations (“RPO”) in the second quarter of 2025 ended at $34 billion, an increase of $0.8 billion from the first quarter of 2025. OFSE RPO was $2.7 billion, down 3% sequentially, while IET RPO was $31.3 billion, up 3% sequentially. Within IET RPO, GTE RPO was $11.3 billion, and GTS RPO was $15.6 billion.

Income tax expense in the second quarter of 2025 was $256 million.

Other (income) expense, net in the second quarter of 2025 was $(134) million, primarily related to changes in fair value for equity securities of $(119) million.

GAAP diluted earnings per share was $0.71. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.63. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

Cash flow from operating activities was $510 million for the second quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $239 million. A reconciliation from GAAP has been provided in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

Capital expenditures, net of proceeds from disposal of assets, were $271 million for the second quarter of 2025, of which $184 million was for OFSE and $68 million was for IET.

Results by Reporting Segment

The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

Oilfield Services & Equipment

(in millions)	Three Months Ended									Variance
Segment results	June 30, 2025			March 31, 2025			June 30, 2024			Sequential		Year-over-year
Orders	$	3,503		$	3,281		$	4,068		7	%	(14	%)
Revenue	$	3,617		$	3,499		$	4,011		3	%	(10	%)
EBITDA	$	677		$	623		$	716		9	%	(5	%)
EBITDA margin		18.7	%		17.8	%		17.8	%	0.9pts		0.9pts

(in millions)	Three Months Ended						Variance
Revenue by Product Line	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
Well Construction	$	921	$	892	$	1,090	3	%	(16	%)
Completions, Intervention, and Measurements		935		925		1,118	1	%	(16	%)
Production Solutions		968		899		958	8	%	1	%
Subsea & Surface Pressure Systems		793		782		845	1	%	(6	%)
Total Revenue	$	3,617	$	3,499	$	4,011	3	%	(10	%)

(in millions)	Three Months Ended						Variance
Revenue by Geographic Region	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
North America	$	928	$	922	$	1,023	1	%	(9	%)
Latin America		639		568		663	12	%	(4	%)
Europe/CIS/Sub-Saharan Africa		653		580		827	13	%	(21	%)
Middle East/Asia		1,398		1,429		1,498	(2	%)	(7	%)
Total Revenue	$	3,617	$	3,499	$	4,011	3	%	(10	%)

North America	$	928	$	922	$	1,023	1	%	(9	%)
International	$	2,689	$	2,577	$	2,988	4	%	(10	%)

EBITDA excludes depreciation and amortization of $233 million, $226 million, and $223 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

OFSE orders of $3,503 million for the second quarter of 2025 increased by 7% sequentially. Subsea and Surface Pressure Systems orders were $698 million, up 31% sequentially, and down 21% year-over-year.

OFSE revenue of $3,617 million for the second quarter of 2025 was up 3% sequentially, and down 10% year-over-year.

North America revenue was $928 million, up 1% sequentially. International revenue was $2,689 million, up 4% sequentially, with increase in all regions with the exception of Middle East and Asia.

Segment EBITDA for the second quarter of 2025 was $677 million, an increase of $54 million, or 9% sequentially. The sequential increase in EBITDA was primarily driven by productivity, structural cost-out initiatives, volume increase, partially offset by inflation and revenue mix.

Industrial & Energy Technology

(in millions)	Three Months Ended									Variance
Segment results	June 30, 2025			March 31, 2025			June 30, 2024			Sequential		Year-over-year
Orders	$	3,530		$	3,178		$	3,458		11	%	2	%
Revenue	$	3,293		$	2,928		$	3,128		12	%	5	%
EBITDA	$	585		$	501		$	497		17	%	18	%
EBITDA margin		17.8	%		17.1	%		15.9	%	0.7pts		1.9pts

(in millions)	Three Months Ended						Variance
Orders by Product Line	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
Gas Technology Equipment	$	781	$	1,335	$	1,493	(42	%)	(48	%)
Gas Technology Services		986		913		769	8	%	28	%
Total Gas Technology		1,767		2,248		2,261	(21	%)	(22	%)
Industrial Products		513		501		524	2	%	(2	%)
Industrial Solutions		327		281		281	16	%	16	%
Total Industrial Technology		839		782		805	7	%	4	%
Climate Technology Solutions		923		148		392	F		F
Total Orders	$	3,530	$	3,178	$	3,458	11	%	2	%

(in millions)	Three Months Ended						Variance
Revenue by Product Line	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
Gas Technology Equipment	$	1,624	$	1,456	$	1,539	12	%	6	%
Gas Technology Services		752		592		691	27	%	9	%
Total Gas Technology		2,377		2,047		2,230	16	%	7	%
Industrial Products		488		445		509	10	%	(4	%)
Industrial Solutions		273		258		262	6	%	4	%
Total Industrial Technology		761		703		770	8	%	(1	%)
Climate Technology Solutions		156		178		128	(12	%)	22	%
Total Revenue	$	3,293	$	2,928	$	3,128	12	%	5	%

EBITDA excludes depreciation and amortization of $56 million, $53 million, and $55 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

“F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

IET orders of $3,530 million for the second quarter of 2025 increased by $72 million, or 2% year-over-year. The increase was driven primarily by Climate Technology Solutions and partially offset by Gas Technology.

IET revenue of $3,293 million for the second quarter of 2025 increased $165 million, or 5% year-over-year. The increase was driven by Gas Technology Equipment, up $85 million or 6% year-over-year, Gas Technology Services, up $61 million or 9% year-over-year, and Climate Technology Solutions, up $28 million or 22% year-over-year.

Segment EBITDA for the quarter was $585 million, an increase of $88 million, or 18% year-over-year. The year-over-year increase in segment EBITDA was driven by positive pricing, favorable FX, and productivity, partially offset by cost inflation.

Reconciliation of GAAP to non-GAAP Financial Measures

Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

	Three Months Ended
(in millions)	June 30, 2025			March 31, 2025		June 30, 2024
Net income attributable to Baker Hughes (GAAP)	$	701		$	402	$	579
Net income attributable to noncontrolling interests		10			7		2
Provision for income taxes		256			152		243
Interest expense, net		54			51		47
Depreciation & amortization		293			285		283
Change in fair value of equity securities ⁽¹⁾		(119	)		140		(19	)
Other charges and credits ⁽¹⁾		17			—		(6	)
Adjusted EBITDA (non-GAAP)		1,212			1,037		1,130
Corporate costs		78			85		83
Other (income) / expense not allocated to segments		(28	)		1		—
Total Segment EBITDA (non-GAAP)	$	1,262		$	1,124	$	1,213
OFSE		677			623		716
IET		585			501		497

⁽¹⁾Change in fair value of equity securities and other charges and credits are reported in “Other (income) expense, net” on the condensed consolidated statements of income (loss).

Table 1a reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

	Three Months Ended
(in millions, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024
Net income attributable to Baker Hughes (GAAP)	$	701		$	402		$	579
Change in fair value of equity securities		(119	)		140			(19	)
Other adjustments		17			—			14
Tax adjustments⁽¹⁾		24			(32	)		(6	)
Total adjustments, net of income tax		(78	)		108			(11	)
Less: adjustments attributable to noncontrolling interests		—			—			—
Adjustments attributable to Baker Hughes		(78	)		108			(11	)
Adjusted net income attributable to Baker Hughes (non-GAAP)	$	623		$	509		$	568

Denominator:
Weighted-average shares of Class A common stock outstanding diluted		991			999			1,001
Adjusted earnings per share – diluted (non-GAAP)	$	0.63		$	0.51		$	0.57

⁽¹⁾All periods reflect the tax associated with the other (income) loss adjustments.

Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow

	Three Months Ended
(in millions)	June 30, 2025			March 31, 2025			June 30, 2024
Net cash flows from operating activities (GAAP)	$	510		$	709		$	348
Add: cash used for capital expenditures, net of proceeds from disposal of assets		(271	)		(255	)		(242	)
Free cash flow (non-GAAP)	$	239		$	454		$	106

Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.

Financial Tables (GAAP)

Condensed Consolidated Statements of Income (Loss)
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per share amounts)		2025			2024			2025			2024
Revenue	$	6,910		$	7,139		$	13,337		$	13,557
Costs and expenses:
Cost of revenue		5,295			5,493			10,247			10,469
Selling, general and administrative		567			643			1,144			1,261
Research and development costs		161			158			307			322
Other (income) expense, net		(134	)		(26	)		6			(48	)
Interest expense, net		54			47			105			88
Income before income taxes		967			824			1,528			1,465
Provision for income taxes		(256	)		(243	)		(408	)		(421	)
Net income		711			581			1,120			1,044
Less: Net income attributable to noncontrolling interests		10			2			17			10
Net income attributable to Baker Hughes Company	$	701		$	579		$	1,103		$	1,034

Per share amounts:
Basic income per Class A common stock	$	0.71		$	0.58		$	1.11		$	1.04
Diluted income per Class A common stock	$	0.71		$	0.58		$	1.11		$	1.03

Weighted average shares:
Class A basic		988			996			990			997
Class A diluted		991			1,001			995			1,002

Cash dividend per Class A common stock	$	0.23		$	0.21		$	0.46		$	0.42

Condensed Consolidated Statements of Financial Position
(Unaudited)

(In millions)	June 30, 2025		December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	3,087	$	3,364
Current receivables, net		6,511		7,122
Inventories, net		5,105		4,954
All other current assets		2,915		1,771
Total current assets		17,618		17,211
Property, plant and equipment, less accumulated depreciation		5,176		5,127
Goodwill		5,801		6,078
Other intangible assets, net		3,919		3,951
Contract and other deferred assets		1,841		1,730
All other assets		4,385		4,266
Total assets	$	38,740	$	38,363
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	4,340	$	4,542
Short-term debt		66		53
Progress collections and deferred income		5,680		5,672
All other current liabilities		2,429		2,724
Total current liabilities		12,515		12,991
Long-term debt		5,968		5,970
Liabilities for pensions and other postretirement benefits		997		988
All other liabilities		1,392		1,359
Equity		17,868		17,055
Total liabilities and equity	$	38,740	$	38,363

Outstanding Baker Hughes Company shares:
Class A common stock		985		990

Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Three Months Ended June 30,			Six Months Ended June 30,
(In millions)		2025			2025			2024
Cash flows from operating activities:
Net income	$	711		$	1,120		$	1,044
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		293			579			566
Stock-based compensation cost		52			102			101
Change in fair value of equity securities		(119	)		21			(71	)
(Benefit) provision for deferred income taxes		36			(17	)		33
Working capital		(120	)		98			(36	)
Other operating items, net		(343	)		(684	)		(505	)
Net cash flows provided by operating activities		510			1,219			1,132
Cash flows from investing activities:
Expenditures for capital assets		(301	)		(601	)		(625	)
Proceeds from disposal of assets		30			74			101
Other investing items, net		(15	)		(69	)		(6	)
Net cash flows used in investing activities		(286	)		(596	)		(530	)
Cash flows from financing activities:
Repayment of long-term debt		—			—			(125	)
Dividends paid		(227	)		(456	)		(419	)
Repurchase of Class A common stock		(196	)		(384	)		(324	)
Other financing items, net		(20	)		(105	)		(61	)
Net cash flows used in financing activities		(443	)		(945	)		(929	)
Effect of currency exchange rate changes on cash and cash equivalents		29			45			(35	)
Decrease in cash and cash equivalents		(190	)		(277	)		(362	)
Cash and cash equivalents, beginning of period		3,277			3,364			2,646
Cash and cash equivalents, end of period	$	3,087		$	3,087		$	2,284
Supplemental cash flows disclosures:
Income taxes paid, net of refunds	$	211		$	418		$	336
Interest paid	$	98		$	148		$	150

Supplemental Financial Information

Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

Conference Call and Webcast

The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, July 23, 2025, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

Forward-Looking Statements

This news release (and oral statements made regarding the subjects of this release) may contain 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, (each a “forward-looking statement”). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target,” “goal” or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2024 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.

Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.

Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.

Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

About Baker Hughes:

Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

For more information, please contact:

Investor Relations

Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com

Media Relations

Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com