Matt

Matt asked about the prioritization of the in vivo versus ESCAPE next-generation sickle cell programs, the factors influencing the choice of the right next-gen program, and confidence in the in vivo program and its HSC targeting approach.

Answer

CEO John Evans and President Giuseppe Pino Ciaramella explained that in vivo LNP delivery offers easier administration and potential for broader patient reach if efficacy is proven. They noted progress in preclinical studies suggesting rapid clinical advancement and highlighted opportunities to enhance engraftment rates with ESCAPE-like technology, giving confidence in moving the in vivo program forward quickly.

Matt asked about the next-generation sickle cell program, noting that in vivo editing seems to have leapfrogged ESCAPE in priority. He inquired about the criteria for choosing the right next-gen program and the confidence in the in vivo program and its HSC targeting.

Answer

CEO John Evans and President Giuseppe Ciaramella responded. Giuseppe Ciaramella explained that LNP delivery offers easier administration than ex vivo approaches, potentially reaching more patients if efficacy is proven. He highlighted preclinical progress suggesting rapid clinical translation and opportunities to enhance engraftment rates using ESCAPE-like technology, driving confidence in the in vivo program's prioritization.

Matt asked about the drivers behind the uptick in New York office TIs and LCs as a percentage of initial rent in the quarter, the expected trend for 2026, and the reasons for the decline in the projected cash yield for Sunset Pier 94 despite solid leasing activity.

Answer

Glen Weiss, EVP, Vornado Realty Trust, clarified that the uptick in TIs and LCs was an outlier, not a trend, due to specific deals with desirable tenants, and expects concessions to tighten going forward. Steven Roth, Chairman and CEO, Vornado Realty Trust, attributed the decline in Sunset Pier 94's projected cash yield to the realities of the streaming business, noting that while 100% leased at opening, the leases are short-term and not indicative of future long-term yields.

Matt inquired about the recent tick-up in New York office TIs and LCs as a percentage of initial rent, the expected trend for 2026, and the drivers behind the decline in Sunset Pier 94's projected cash yield.

Answer

Glen Weiss (EVP) clarified that the increase in TIs and LCs was an "outlier quarter" due to specific deals, not a trend, and he expects a return to the 12-13% range with tightening concessions. Steven Roth (Chairman and CEO) reiterated that Sunset Pier 94's yield decline (from 10% to 9%) was due to "reality" and short-term leases, given challenges in the streaming business.

Matt inquired about the types of tenants driving demand at One Beach and La Jolla Commons, seeking additional color on tenant profiles and the management's sentiment regarding the stabilization of these assets compared to past quarters. He also asked if the high percentage of office renewals in Q4 (92% vs. 73% in Q3) was due to large renewals or a lumpiness factor.

Answer

Steve Center, EVP, expressed very positive sentiment about the pipeline and stabilization. He described a diverse tenant base at La Jolla Commons III, including legal software, insurance, and international banking, and at One Beach, a mix of AI and other technology-related firms. Mr. Center clarified that the high renewal percentage in Q4 was due to specific large renewals, but emphasized that 60,000 sq ft of new leases were also executed in the quarter, and over 53% of total leases for the year were new or expansion, indicating strong new leasing activity not captured by comparable leasing metrics alone.

Matt asked about the opportunity for high-purity solvents in the semiconductor market within Additives and Functional Products (AFP), including growth rates and margin comparison, and the impact of winter storms on Q1 EPS guidance.

Answer

Mark Costa (Board Chair and CEO) stated that high-purity solvents are a great business with above-segment-average margins and high growth rates (20-30%), though not a huge product line. Willie McLain (EVP and CFO) noted limited impact from winter storms so far, with the main effect being on energy and natural gas prices. He mentioned actions to ensure safety and limit headwinds, with about half of Q1 natural gas hedged.

Matt from Stephens inquired about the expense guidance, specifically how many new producers it implies for the year, the expected impact of these hires on loan growth in 2026 versus 2027, and clarification on net interest margin performance in Q4 and Q1.

Answer

Jim Crotwell, Chief Risk Officer, stated that the $10 million investment provides significant dry powder for additional hires beyond the initial 10 producers. Wally Wallace, Chief Financial Officer, detailed the expense load, including new hires, merit increases, payroll taxes, and technology contract renegotiation expenses, projecting a Q1 expense run rate of $64 million ± $1 million. Lance Hall, President and CEO of Origin Bank, clarified that the vast majority of new hire impact on loan growth is expected in the back half of 2026 or 2027 due to non-solicitation clauses. Wally Wallace added that known hires are budgeted for a back-loaded impact in 2026, while unknown hires would primarily affect 2027 loan growth. Regarding NIM, Wally Wallace explained Q4 expansion was due to timing differences in deposit vs. loan repricing, anticipating slight Q1 compression before expanding to 3.70%-3.80% by Q4 2026, supported by securities and loan repricing.

Matt from Stephens inquired about the implications of Origin Bancorp's expense guidance for new producer hires, seeking clarification on the number of targeted hires beyond the initial 10 and potential expense volatility. He also asked for more details on the net interest margin dynamics observed in Q4 and expected in Q1.

Answer

Jim Crotwell (Chief Risk Officer) explained that the $10 million investment provides 'dry powder' for additional hires beyond the initial 10+, with the impact on loan growth primarily expected in 2027 due to non-solicitation clauses. Wally Wallace (Chief Financial Officer) detailed the expense load, including merit increases, payroll taxes, and technology contract renegotiation fees, projecting a Q1 expense run rate of $64 million ± $1 million, with benefits seen later in the year. Wally Wallace also clarified that Q4 margin expansion was due to deposit repricing ahead of loan repricing, expecting slight Q1 compression before expansion to 3.75% ± 5 bps by Q4 2026, driven by securities and loan maturities repricing higher.

Matt asked about the proportion of the 30 identified ZEVASKYN patients who are currently on background Vyjuvek or have previously failed Vyjuvek.

Answer

Chief Commercial Officer Madhav Vasanthavada stated that the company does not have direct visibility into the exact number but expects the vast majority would be on Vyjuvek and/or Filsuvez, given the unmet need for multiple treatment options in the RDEB community. He added that prior use of other gene therapies helps with access, as patients would already have genetic records and other necessary documentation for payers.

Matt, on behalf of Matthew Taylor, asked about any changes in contracting dynamics within the pharmacy channel, such as price or tenor, given the increasing competition.

Answer

Ashley McEvoy, President and CEO, stated there were no significant differences in contracting dynamics. She emphasized Insulet's long-standing leadership in the pay-as-you-go pharmacy model, covering over 300 million lives with preferred status (approximately $1 a day for most users), and ongoing efforts to streamline prior authorization processes for underserved populations.

Matt (on behalf of George Gianarcus from Canaccord Genuity) inquired about FuelCell Energy's momentum in the data center space, specifically seeking updates on the Inuverse partnership and other customer conversations, as well as the geographical distribution of data center demand.

Answer

Jason Few (Director, President & CEO, FuelCell Energy) highlighted the strength demonstrated in Korea with large-scale utility platforms and the importance of a long-term track record for data centers. He noted the potential for up to 100 megawatts with Inuverse and significant strength in the data center pipeline, engaging with co-located data centers and hyperscalers across the US, Korea, and broader Asia. Few emphasized the advantages of FuelCell Energy's behind-the-meter solution, ease of siting, minimal emissions, and policy tailwinds from the ITC.

Matt inquired about the strong net new ACV contribution from emerging products like asset maintenance, AI multicam, and commercial navigation, asking if this level of early momentum was expected and how it informs future contributions.

Answer

Sanjit Biswas (CEO) noted that many customers purchasing these new products were design partners, ready to scale, and the products are performing well. He acknowledged that each product has a natural revenue ramp over several quarters, with ongoing enhancements planned, but expressed pleasure with the initial customer response.

Matt from Western Standard highlighted the standout gross margin in the manufacturing segment and asked for the drivers behind it. He also inquired about the increase in O&M revenue, the remaining hurdles for the Hawaii project, the status of the Bahama receivable, and the company's capital allocation plans for its large cash balance.

Answer

CEO Frederick McTaggart and CFO David Sasnett attributed the strong manufacturing margin to a focus on higher-margin jobs, efficient facility operation near peak capacity, and favorable project pricing. McTaggart explained the O&M revenue increase was due to contract term changes and incremental cost pass-throughs. For the Hawaii project, he identified the archaeological permit and a final health department design approval as the key remaining steps. On capital allocation, McTaggart stated they are actively evaluating M&A targets, exploring P3 project opportunities, and will continue to assess returning cash to shareholders, referencing the recent dividend increase.