Q: Could you comment on SPB's most recent quarter? Based on the last year results, what is this company's free cash flow yield
5i Research Answer:
EPS of 27c beat estimates of 18c; revenue of $691M missed estimates of $733.8M. EBITDA of $162M slightly beat estimates. BMO cut its rating to Market Perform. The company noted pricing pressures in its wellsite segment, but also reminded investors that this business is cyclical. EBITDA rose 2%. Free cash flow per share was 37c, up 23%. 8% of its shares were purchased and cancelled last year. While a "miss", it is good to see cash flow grow, and the stock has recovered somewhat this year. Annualizing Q4, free cash flow yield is 25.1%. But the company is seasonal. Full-year 2025 FCF yield was 14.8%.