Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $132.8 million, down 9% year-over-year due to demand softness in vehicle and industrial markets, with an unfavorable FX impact of $1.8 million [11] - Sequentially, revenue decreased by $10.8 million or 9%, but adjusted EPS increased nearly 50% from Q4, reaching $0.46 per share [7][20] - Gross margin expanded 70 basis points sequentially to 32.2%, while operating margin rose 130 basis points to 6.6% [7][15] Business Line Data and Key Metrics Changes - Aerospace and defense revenue increased by 25%, driven by key program deliverables [12] - Vehicle revenue declined by 34%, reflecting softness in powersports demand and a shift from lower-margin programs [13] - Industrial markets showed mixed results, with power quality solutions for HVAC and data center infrastructure growing, but overall industrial market sales were down due to reduced demand in automation [14] Market Data and Key Metrics Changes - Sales to U.S. customers represented 52% of revenue, down from 58% in Q1 last year, with contributions from Europe, Canada, and Asia Pacific [11] - The industrial sector contributed 47% of trailing twelve-month sales, primarily driven by strong demand for power quality solutions [14] - The medical market was down 2% on a trailing twelve-month basis due to softness in pump-related products [14] Company Strategy and Development Direction - The company is focused on long-term growth themes such as electrification, energy efficiency, automation, and infrastructure investment [9] - The "Simplify to Accelerate Now" program is central to improving operational efficiency and aligning resources with demand [7][27] - The company is taking proactive steps to address global trade challenges, particularly regarding tariffs and rare earth magnet sourcing [28] Management's Comments on Operating Environment and Future Outlook - Management noted solid order momentum with total orders increasing 17% sequentially and 13% year-over-year, indicating a healthy book-to-bill ratio of 1.04 times [25] - The external environment remains fluid, but the company is built for resilience with a diverse customer base and global manufacturing footprint [26] - Management expressed confidence in achieving sustainable, profitable growth while continuing to invest in capabilities [30] Other Important Information - Operating cash flow was $13.9 million, up 52% from last year, and net debt decreased by $13.6 million to $174.4 million [21][23] - Capital expenditures for the quarter were $1.1 million, with an anticipated full-year spend of $10 million to $12 million [24] Q&A Session Summary Question: Demand and Supply Environment - Management observed positive signs in demand at the start of the quarter, with expectations for incremental growth [36] - Tariff impacts are being managed through cost mitigation strategies and localization of supply chains [37] Question: Competitive Positioning - The company believes it is well-positioned to win business due to its existing footprint and localization efforts [39] Question: Vehicle Business Strategy - Management confirmed a strategic shift away from lower-margin automotive applications towards higher-margin opportunities [46][49] Question: Inventory Turn Targets - The company aims to improve inventory turns beyond 3.1, but acknowledges potential short-term challenges due to geopolitical factors [56] Question: Rare Earth Elements Impact - Management provided insights on the cost impact of rare earth elements, indicating a significant portion of costs could be affected [65] Question: Recreational Vehicle Market - The company is not exiting the recreational vehicle market and sees opportunities for competition, particularly in industrial applications [73][75]

Financial Data and Key Metrics Changes - Revenue increased 9% sequentially to $132.8 million, but decreased 9% year over year due to demand softness in vehicle and industrial markets [8][10] - Gross margin expanded 70 basis points sequentially to 32.2%, while operating margin rose 130 basis points to 6.6% [6][12] - Adjusted EPS increased nearly 50% from Q4, reaching $0.46 per share [6][17] - Operating cash flow was $13.9 million, up 52% year over year [18] Business Line Data and Key Metrics Changes - Aerospace and defense revenue increased 25% year over year, driven by key program deliverables [9] - Vehicle revenue declined 34% year over year, reflecting softness in powersports demand [10] - Medical market sales were down 2% year over year, while industrial market sales were mixed [11] Market Data and Key Metrics Changes - Sales to U.S. customers represented 52% of revenue, down from 58% in the previous year [8] - The industrial sector contributed 47% of trailing twelve-month sales, primarily driven by strong demand for power quality solutions [11] Company Strategy and Development Direction - The company is focused on long-term growth themes such as electrification, energy efficiency, automation, and infrastructure investment [7] - The "Simplify to Accelerate Now" program aims to improve operational efficiency and responsiveness [6][23] - The company is taking proactive steps to address geopolitical risks and supply chain challenges, particularly regarding rare earth magnets [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted positive signs of demand at the start of the quarter, with expectations for incremental growth [31] - The company is confident in its ability to navigate the complex external environment and is focused on cash generation and debt reduction [27][23] Other Important Information - The company anticipates capital expenditures of $10 million to $12 million for the full year 2025 [21] - Net debt decreased by $13.6 million, bringing it to $174.4 million, with a leverage ratio of 2.91 times [18][20] Q&A Session Summary Question: Demand and Supply Environment - Management observed positive signs of demand at the start of the quarter and expects incremental growth despite tariff uncertainties [31][32] Question: Competitive Positioning - The company believes its localization efforts and existing footprint position it well to capture opportunities in the current environment [35] Question: Vehicle Business Strategy - Management confirmed a strategic shift away from lower-margin vehicle applications towards higher-margin opportunities [42][46] Question: Inventory Turn Targets - The company aims to improve inventory turns beyond 3.1, but acknowledges potential short-term challenges due to geopolitical factors [52] Question: Rare Earth Elements Impact - Management provided insights on the potential impact of rare earth elements on sales, emphasizing the importance of mitigation strategies [58][62] Question: Recreational Vehicle Market - The company clarified its involvement in the recreational vehicle market and expressed confidence in competing effectively [68][70]

Financial Performance - Revenue for Q1 2025 was $132.8 million, a 9% increase quarter-over-quarter (QoQ), but a 9% decrease year-over-year (YoY)[5] - Net income for Q1 2025 was $3.6 million, an 18% increase QoQ, but a 48% decrease YoY[5] - Cash from operations was $13.9 million, a 12% increase QoQ and a 52% increase YoY[5] - Orders increased by 17% QoQ and 13% YoY, reaching $137.6 million in Q1 2025[5] - Gross margin was 32.2%, a 70 basis points increase QoQ, but a 10 basis points decrease YoY[5] - Operating margin was 6.6%, a 130 basis points increase QoQ, but a 160 basis points decrease YoY[5] Strategic Initiatives - The company achieved $10 million in annualized savings in 2024 through the "Simplify to Accelerate NOW" initiatives and aims to reduce annualized costs by another $6 to $7 million in 2025[7] - Restructuring and related charges were $1.5 million in Q1 2025[7] Balance Sheet - Net debt decreased by $13.6 million to $174.4 million[5] - Cash and cash equivalents increased to $47.8 million as of March 31, 2025, compared to $36.1 million as of December 31, 2024, representing a 32% increase[31]

Core Viewpoint - Allient (ALNT) reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, but down from $0.58 per share a year ago, indicating a 39.39% earnings surprise [1][2] Financial Performance - The company achieved revenues of $132.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.36%, although this is a decrease from $146.71 million in the same quarter last year [2] - Over the last four quarters, Allient has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance - Allient shares have declined approximately 10% since the beginning of the year, compared to a 4.7% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $130.65 million, and for the current fiscal year, it is $1.84 on revenues of $521.51 million [7] - The trend of estimate revisions for Allient has been favorable leading up to the earnings release [6] Industry Context - The Electronics - Miscellaneous Components industry, to which Allient belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Revenues for Q1 2025 were $132.8 million, a decrease of 9% from $146.7 million in Q1 2024, primarily due to declines in the Vehicle and Industrial markets [103]. - Gross profit decreased to $42.8 million in Q1 2025 from $47.4 million in Q1 2024, with gross margin slightly declining to 32.2% [105]. - Net income for Q1 2025 was $3.6 million, down 48% from $6.9 million in Q1 2024, reflecting lower sales volume [114]. - Operating income fell to $8.8 million in Q1 2025, a 27% decrease from $12.1 million in Q1 2024 [103]. - Adjusted net income for Q1 2025 was $7.6 million, down from $9.5 million in Q1 2024, with adjusted diluted earnings per share at $0.46 compared to $0.58 [114]. - EBITDA for the three months ended March 31, 2025, was $14,376,000, down from $18,594,000 in 2024, while Adjusted EBITDA was $17,472,000 compared to $20,042,000 in 2024 [123]. - Adjusted net income for the three months ended March 31, 2025, was $7,593,000, resulting in Adjusted diluted earnings per share of $0.46, down from $9,546,000 and $0.58 in 2024 [123]. Bookings and Backlog - Bookings increased by 13% in Q1 2025, totaling $137.6 million compared to $122.1 million in Q1 2024, driven by a 14.1% increase in volume [104]. - The backlog decreased to $237.3 million in Q1 2025, down 8% from $258.1 million in Q1 2024 [103]. Cost Management - The company expects to achieve $6 to $7 million in annualized cost savings in 2025 as part of its Simplify to Accelerate NOW strategy [100]. - Engineering and development expenses decreased by 14% in Q1 2025 compared to Q1 2024, reflecting cost reduction actions [109]. Cash Flow and Investments - Cash and cash equivalents increased by $11,651,000 to $47,753,000 as of March 31, 2025, from $36,102,000 at December 31, 2024 [124]. - Net cash provided by operating activities was $13,928,000 for the three months ended March 31, 2025, an increase of $4,749,000 compared to $9,179,000 in 2024 [125]. - The decrease in cash used in investing activities was primarily due to a reduction in cash paid for acquisitions, totaling $1,060,000 in Q1 2025 compared to $28,500,000 in Q1 2024 [129]. Foreign Currency and Interest Rates - A hypothetical 10% change in the value of the U.S. dollar would have impacted sales by approximately $9,509,000 for the three months ended March 31, 2025 [136]. - As of March 31, 2025, the company had foreign currency contracts with notional amounts of $31,507, resulting in a loss of $124 on these contracts for the three months ended March 31, 2025 [138]. - Net foreign currency transaction losses amounted to $677 for the three months ended March 31, 2025, compared to gains of $238 for the same period in 2024 [138]. - The Series A Notes under the 2024 Note Payable Agreement bear interest at a fixed rate of 5.96% and will mature on March 21, 2031 [139]. - Interest rates on the Credit Facility are based on Term SOFR plus a margin of 2.50% as of March 31, 2025 [140]. - The company entered into an interest rate swap with a notional amount of $40,000 maturing in December 2026 and an additional swap of $50,000 maturing in September 2027 [140]. - As of March 31, 2025, the company had $166,962 outstanding under the Revolving Facility, with $90,000 currently being hedged [141]. - A hypothetical one percentage point change in the Base Rate on the $76,962 of unhedged floating rate debt would impact interest expense by approximately $770 for the three months ended March 31, 2025 [141]. Dividends - The Company declared dividends of $0.03 per share for both the three months ended March 31, 2025, and 2024 [134].

Core Viewpoint - Allient (ALNT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock price movements [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [4][6]. Company Performance and Outlook - Allient is projected to earn $1.84 per share for the fiscal year ending December 2025, representing a year-over-year increase of 23.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Allient has increased by 0.8%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Allient to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $122 million, a decrease from the same period last year, with a gross margin of 31.5%, showing a sequential improvement despite soft volume [9][19][27] - For the full year, revenue totaled $530 million, reflecting anticipated demand softness due to inventory rebalancing and customer utilization of excess inventory [10][19] - Operating cash flow for the year was nearly $42 million, with total debt reaching approximately $240 million following the acquisition of SNC [10][39] Business Line Data and Key Metrics Changes - Aerospace and defense sales increased by 20% in Q4 due to specific defense and space program timing, while medical market revenue rose by 5% driven by demand for surgical instruments [20][21] - Vehicle market sales decreased by 46%, primarily due to reduced demand for powersports, and industrial market sales declined by 11% despite strong performance in power quality [21][22] - The industrial sector remained the largest market, contributing 47% of trailing twelve-month sales, driven by strong demand in power quality and semiconductor equipment [24] Market Data and Key Metrics Changes - The geographic sales mix shifted, with US customers accounting for 54% of total sales, down from 59% in the previous year [19] - The company noted challenges in Europe, particularly in Germany, with expectations of continued softness into midyear [58] - The data center expansion is expected to provide strong tailwinds, with significant growth anticipated in this area [60][68] Company Strategy and Development Direction - The company is focused on operational efficiencies and long-term growth, with initiatives like "Simplify to Accelerate Now" expected to deliver $6 to $7 million in annual savings in 2025 [12][14] - The Dothan facility's expansion aims to enhance machining capabilities, aligning with key market needs [15][16] - The company is actively pursuing opportunities in the defense sector through its newly formed Allient Defense Solutions unit [46] Management's Comments on Operating Environment and Future Outlook - Management anticipates a moderated pace of orders across most markets through the first half of 2025, with expectations for greater stability in order flow as customer inventory adjustments near completion [48] - The company remains optimistic about long-term operational improvements despite near-term inefficiencies during transitions [49][50] - Management emphasized the importance of aligning operations with customer needs to enhance responsiveness and drive growth [62] Other Important Information - The company reported a net income of $3 million for Q4, translating to earnings per diluted share of $0.18, with adjusted net income of $5.2 million or $0.31 per diluted share [32] - Total debt at year-end was $224 million, with a commitment to deleverage following the SNC acquisition [39][41] - The company entered into a new three-year interest rate swap to hedge $50 million of debt, providing stability amidst rate fluctuations [40] Q&A Session Summary Question: Insights on geographical and end-market performance - Management noted that North America is strengthening, with expectations for the industrial sector to return to normal growth rates, while Europe remains soft [57][58] Question: Potential for growth in Europe - Management indicated a "wait and see" approach regarding Europe, with ongoing operational efficiencies and new product development being key focus areas [64][65] Question: Data center market exposure and growth expectations - Management highlighted unique high-power solutions that provide a competitive edge, with significant growth in the data center market expected to continue [68][69] Question: Stability in medical and powersports businesses - Management acknowledged stabilization in the medical business around $20 million, with growth opportunities in higher-end applications, while powersports face challenges due to market dynamics [75][84] Question: Inventory normalization and cadence of improvement - Management confirmed that inventory levels are expected to normalize later in the year, with gradual improvements anticipated [102][104] Question: Dothan restructuring costs and financial reporting - Management stated that restructuring costs will not be broken out individually but will be included in the financials under business development [106][112] Question: Interest rate for the new swap - Management confirmed the interest rate for the swap is approximately 3.2% [115]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $122 million, with a gross margin of 31.5%, showing a sequential improvement despite soft volume [9][19] - For the full year, revenue totaled $530 million, reflecting anticipated demand softness due to inventory rebalancing [10] - Operating cash flow reached nearly $42 million, with total debt at approximately $240 million following the acquisition of SNC [10][39] - Net income for the quarter was $3 million, translating to earnings per diluted share of $0.18, while adjusted net income was $5.2 million or $0.31 per diluted share [32] Business Line Data and Key Metrics Changes - Aerospace and defense sales increased by 20%, while medical market revenue rose by 5% [20][21] - Vehicle market sales decreased by 46%, primarily due to reduced demand for powersports [21] - Industrial market sales declined by 11%, despite strong performance in power quality sales [22] Market Data and Key Metrics Changes - US customers accounted for 54% of total sales, down from 59% in the previous year [19] - The industrial sector remained the largest market, contributing 47% of trailing twelve-month sales, driven by strong demand in power quality [24] - The distribution channel showed modest growth, representing 5% of total sales over the trailing twelve-month period [26] Company Strategy and Development Direction - The company is focused on operational efficiencies and positioning for long-term growth through initiatives like "Simplify to Accelerate Now," which delivered $10 million in annualized savings [12][13] - The Dothan facility is expanding machining capabilities to support strategic goals, with expected benefits by late 2025 [14][15] - The company is actively pursuing opportunities in the defense sector and has formed a new business unit to capitalize on these prospects [46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in key industrial and vehicle markets but emphasized resilience and commitment to execution [8] - The outlook for 2025 anticipates a moderated pace of orders across most markets, with expected strength in data center expansion [48] - Management remains optimistic about long-term operational improvements despite near-term inefficiencies during transitions [49] Other Important Information - The company is committed to reducing debt, having lowered total debt by $16 million over the year [11][39] - Cash and cash equivalents increased by 13% to $36.1 million, reinforcing financial flexibility [36] - The effective tax rate for the quarter was 22.2%, with expectations for the full year 2025 to range between 21% and 23% [33] Q&A Session Summary Question: Insights on geographical and end-market performance - Management noted that North America is strengthening, while Europe faces ongoing softness, particularly in Germany [57][58] Question: Potential for growth in Europe - Management indicated a "wait and see" approach regarding potential growth in Europe due to ongoing uncertainties [64][65] Question: Data center market exposure and growth expectations - Management highlighted significant growth in the data center market, with expectations for continued opportunities, albeit at a slower pace than previous years [68][69] Question: Stability in medical and powersports businesses - Management acknowledged stabilization in the medical business but noted challenges in the powersports market, which remains flat [75][84] Question: Inventory normalization and its impact - Management confirmed that inventory levels are expected to normalize later in the year, with gradual improvements anticipated [102][103] Question: Dothan restructuring costs and reporting - Management stated that restructuring costs will be included in the financials but not broken out individually [108][112] Question: Interest rate for the new swap - Management confirmed the interest rate for the swap is approximately 3.2% [115]

Company Performance - Allient (ALNT) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.55 per share a year ago, representing an earnings surprise of 19.23% [1] - The company posted revenues of $122.01 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.98%, but down from $141 million year-over-year [2] - Over the last four quarters, Allient has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Allient shares have declined approximately 4.4% since the beginning of the year, compared to a decline of 1.8% for the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.33 on revenues of $125.45 million, and for the current fiscal year, it is $1.83 on revenues of $522.49 million [7] Industry Context - The Electronics - Miscellaneous Components industry, to which Allient belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Allient's stock performance [5][6]

Revenue and Income - Revenue for 2024 was $529,968, a decrease of 8.4% from $578,634 in 2023, with the Industrial and Vehicle markets experiencing declines[143]. - Net income for 2024 was $13,166, or $0.79 per diluted share, a 45% decrease compared to $24,097, or $1.48 per diluted share in 2023[143]. - Revenues for 2024 decreased to $529,968, down 8% from $578,634 in 2023, primarily due to a volume decrease of 8% and elevated inventory levels[173]. - Adjusted net income for 2024 was $24,679, down from $37,458 in 2023, with adjusted diluted earnings per share decreasing to $1.49 from $2.30[183]. - The company reported a comprehensive income of $158,000 for 2024, a significant drop from $25,885,000 in 2023[226]. - Operating income fell by 29% to $30,038 in 2024, compared to $42,314 in 2023[173]. - The income before income taxes for the year ended December 31, 2024, was $16,858,000, a decrease from $29,700,000 in 2023[324]. Bookings and Backlog - Bookings fell to $480,031 in 2024, an 8% decrease from $520,275 in 2023, with backlog decreasing by 17% to $230,788[143]. - Bookings for 2024 were $480,031, an 8% decrease from $520,275 in 2023, with backlog also declining by 16% to $230,788[173]. - The company's backlog as of December 31, 2024, was $230,788, with an expectation to recognize 85% of these performance obligations within the next twelve months[288]. Expenses and Costs - Gross profit decreased by 10% to $165,691 in 2024, resulting in a gross margin of 31.3%, down from 31.7% in 2023[143]. - General and administrative expenses decreased by 5% to $55,669 in 2024, reflecting cost reduction actions[177]. - Cash paid for interest in 2024 was $12,059 thousand, a slight decrease from $12,200 thousand in 2023, while income taxes paid decreased to $7,804 thousand from $12,687 thousand[255]. - The total operating lease expense for 2024 was $8,171,000, compared to $8,769,000 in 2023, reflecting a decrease of approximately 6.8%[337]. Dividends - The company declared dividends of $0.12 per share in 2024, with a payout ratio of 15% compared to 8% in 2023[144]. - The company declared dividends of $0.12 per share in 2024, up from $0.115 per share in 2023[202]. - For the years ended December 31, 2024, 2023, and 2022, total dividends paid were $1,981,000, $1,826,000, and $1,536,000, respectively, with per share dividends of $0.12, $0.115, and $0.10[305]. Assets and Liabilities - As of December 31, 2024, the company recorded $111,517 in inventory, representing approximately 19% of total assets[165]. - Goodwill recorded on the balance sheet as of December 31, 2024, was $131,789, representing about 23% of total assets[168]. - Total current assets decreased to $237,580,000 in 2024 from $248,151,000 in 2023, primarily due to a reduction in trade receivables and inventories[225]. - Total liabilities decreased to $310,927,000 in 2024 from $345,967,000 in 2023, with a significant reduction in current liabilities[225]. - The company’s long-term debt increased to $224,177,000 in 2024 from $218,402,000 in 2023, indicating a slight rise in leverage[225]. Cash Flow - Net cash provided by operating activities decreased by $3,188 to $41,850 in 2024 from $45,038 in 2023[193]. - Cash used in investing activities increased by $12,307 to $(34,914) in 2024, primarily due to a $20,000 cash payment for the acquisition of SNC[195]. - Cash used in financing activities decreased by $20,474 to $(843) in 2024, reflecting $20,000 borrowed from the Amended Revolving Facility for the SNC acquisition[196]. - Cash and cash equivalents increased to $36,102,000 in 2024 from $31,901,000 in 2023, indicating improved liquidity[225]. Acquisitions - The company acquired SNC Manufacturing Co. for a purchase price of $20,000 thousand, with SNC contributing $38,045 thousand in revenue and $3,066 thousand in net income during 2024[271][272]. - The company acquired 100% of Sierramotion Inc. for a total purchase price of $8,400, which includes $2,000 of contingent consideration[277]. - The company incurred $313 thousand in transaction costs related to the acquisition of SNC, which are included in business development expenses[271]. Financial Instruments and Risk Management - The Company holds notional amounts of $90,000,000 in interest rate derivatives as of December 31, 2024, to manage exposure to interest rate movements[319]. - The Company had foreign currency contracts with notional amounts of $30,945,000 and $22,193,000 at December 31, 2024, and 2023, respectively, resulting in losses of $1,749,000 and $281,000 for the years ended December 31, 2024, and 2023[318]. Taxation - The effective tax rate increased to 21.9% in 2024 from 18.9% in 2023, influenced by various tax provisions and credits[181]. - The total income tax provision for 2024 was $3,692,000, compared to $5,603,000 in 2023, reflecting a provision rate of 21.9%[324]. - Noncurrent deferred tax assets increased to $22,951,000 in 2024 from $20,877,000 in 2023, primarily due to research and development costs[325]. Future Outlook - The company plans to expand machining capabilities at its Dothan, Alabama facility, expected to yield initial benefits by the end of 2025[154]. - The company plans to focus on new product development and market expansion strategies to drive future growth[226]. - The company expects capital expenditures in 2025 to be approximately $10,000 to $12,000[195].