Restructuring costs are a silent killer.
Most companies report adjusted EBITDA/EPS (and even FCF), usually excluding restructuring, acquisition, transformation costs.
Some are habitual abusers of these add-backs.
I spent 30 seconds looking at NCR Voyix $VYX which trades at $7.7/share. Seemingly cheap at ~8x earnings and 6.5x FCF.
But they spent $109m on restructuring costs in FY25 and expect another $120m in FY26 “before stepping down in 2027.”
Some of these are real expenses too: stranded costs and internal infrastructure investments? Come on man…
Much prefer companies reporting on and emphasizing GAAP (or near GAAP) performance.
Rant over.