Customer Concentration - In 2025, the company's five largest direct customers accounted for 44% of consolidated revenues, up from 36% in 2024 and 32% in 2023[83]. - Two customers specified greater than 10% of consolidated revenues, contributing 12% and 10%, while an additional customer accounted for 19% of consolidated revenues[84]. - Customer consolidation in the semiconductor industry could increase dependency on fewer customers, potentially impacting pricing and demand for products[86]. Acquisitions and Partnerships - The company has completed several acquisitions since 2015, including Universal Robots, Energid, MiR, Lemsys, AutoGuide, AET, and Quantifi, with the latest acquisition in 2025[92]. - The company has completed several acquisitions since 2015, including AET and Quantifi in 2025, and a strategic partnership with Technoprobe in May 2024, acquiring 10% equity[92]. - The company may not fully realize the benefits of acquisitions due to complex integration processes and potential unforeseen issues[92]. Taxation and Financial Implications - The tax savings from the Singapore tax holiday were $21.6 million ($0.14 per diluted share) in 2025, $17.1 million ($0.10 per diluted share) in 2024, and $1.4 million ($0.01 per diluted share) in 2023[97]. - The effective tax rate is influenced by the mix of earnings and tax regulations in various countries, with potential for increased tax liabilities due to changing laws[95]. - The company may incur higher tax rates and face exposure to additional international tax liabilities due to changes in tax laws and regulations[95]. - Future cash dividends and share repurchases are at the discretion of the Board of Directors and may be reduced or eliminated based on financial conditions[99]. Competition and Market Risks - The company is subject to intense competition, with competitors introducing new products that may be considered equal or superior, impacting market position[82]. - The company faces significant competition, with competitors introducing new products that may be considered equal or superior, impacting market position and pricing[82]. - Competition for skilled employees in the high technology industry is intense, which may affect the company's ability to attract and retain key technical personnel[119]. Operational Risks - The company faces risks associated with international operations, including political, health, and financial instability in regions where it sources or manufactures products[88]. - The company is subject to risks from natural disasters, health epidemics, and geopolitical conflicts, which could disrupt business activities and negatively impact financial results[120]. - The global supply shortage of electrical components, including semiconductor chips, has impacted the company's supply chain, leading to increased lead times and costs[114]. - The company relies on contract manufacturers for product assembly, and any failure to meet quality or delivery requirements could result in reduced revenues and earnings[110]. Financial Condition and Debt - The company has a senior secured revolving credit facility of up to $750 million, amended from $400 million, with a maturity date extended to December 10, 2026[100]. - On September 4, 2025, September 19, 2025, and October 7, 2025, the company borrowed a total of $250 million under the credit facility to support manufacturing capabilities and shareholder returns[100]. - The company repaid $50 million of outstanding borrowings by December 31, 2025[100]. - The company may incur significant additional secured and unsecured indebtedness in the future, which could restrict business strategies due to covenants in the credit agreement[101]. Cybersecurity and Legal Risks - The company has faced patent infringement lawsuits in the past, which could lead to significant litigation costs and impact its ability to sell products[121]. - The company has experienced attempted cyber-attacks but has not faced material disruptions; however, it continues to enhance security measures[123]. - The company is vulnerable to unauthorized access attempts, which could result in the loss of proprietary information and disrupt operations[124]. - The company may face litigation or regulatory proceedings that could adversely affect its financial position and operations[141]. Regulatory and Compliance Issues - The implementation of tariffs by the U.S. has not yet materially affected the company's business, but future tariffs could have significant impacts[128]. - The company is subject to export restrictions that may limit its ability to compete in certain regions, potentially affecting sales[130]. - Compliance with environmental regulations may incur significant costs and liabilities, impacting the company's financial condition[136]. - The company is currently conducting groundwater assessments and remediation plans at certain facilities, with no material costs incurred as of December 31, 2025[139]. - The company anticipates ongoing regulatory changes that may adversely impact its business and the semiconductor industry[133]. Economic Factors - Inflationary pressures have contributed to increased costs for product components, which may negatively impact gross margin and profit[114]. - The company has experienced material fluctuations in operating results, which could adversely affect its financial condition and stock price[109]. - The company is exposed to risks associated with shareholder activism, which could disrupt operations and affect business plans[142].

Production and Reserves - Comstock Resources reported a significant increase in natural gas production, achieving a total of 20.5 billion cubic feet (Bcf) for the quarter, representing a 15% increase year-over-year [7]. - Comstock's total proved reserves are estimated at 1.2 trillion cubic feet equivalent (Tcfe), with a reserve replacement ratio of 150% for the last year [7]. - The company plans to drill 25 new wells in the next fiscal year, aiming to enhance production capacity and operational efficiency [7]. - Comstock's management provided guidance for the next quarter, projecting production levels to reach 22 Bcf, representing a 7% increase from the current quarter [7]. Financial Performance - The company reported a net income of $30 million for the last quarter, a significant increase from $10 million in the same quarter last year, indicating strong financial performance [7]. - The average realized price for natural gas was $3.50 per thousand cubic feet (Mcf), reflecting a 10% increase compared to the previous quarter [7]. - Comstock's operating costs decreased by 5% to $1.80 per Mcf, contributing to improved profit margins [7]. Capital Expenditures and Investments - The company anticipates capital expenditures of approximately $150 million for the upcoming fiscal year, focusing on drilling and completion activities [7]. - Comstock has invested in advanced drilling technologies, which are expected to reduce finding and development costs by 20% [7]. Strategic Focus and Growth Opportunities - The company is exploring potential acquisitions to expand its asset base and increase market share in the natural gas sector [7]. - Future acquisitions are a strategic focus, with the company emphasizing the importance of successfully identifying and integrating these opportunities [17]. - The company is committed to discovering or acquiring additional reserves to support long-term growth [17]. - The company is assessing exploration and development opportunities to enhance its business strategy and operational objectives [17]. Risk Management and Operational Considerations - Risks include price volatility and supply-demand dynamics for natural gas and oil, which could impact future production rates and costs [17]. - Future financial results are expected to be influenced by cash flow and liquidity, with operating costs including lease operating expenses and administrative costs being closely monitored [17]. - Changes in regulatory requirements and general economic conditions are being monitored as potential impacts on operations [17]. - Retaining key members of senior management and employees is critical for maintaining operational effectiveness and strategic direction [17]. Technology and Innovation - The company utilizes advanced technologies such as 3-D seismic for detecting hydrocarbon accumulations, enhancing exploration efforts [52]. - The company aims to effectively market its natural gas and oil while managing the availability of rigs, equipment, and personnel [17].

Financial Performance - Total net sales for fiscal year 2025 reached $2,386.3 million, a 8.9% increase from $2,190.8 million in 2024[26] - The Electronics segment generated $1,345.5 million in sales for fiscal year 2025, compared to $1,186.8 million in 2024, reflecting a growth of 13.4%[26] - The Transportation segment reported sales of $676.4 million in 2025, slightly up from $672.4 million in 2024[26] - The Industrial segment's sales increased to $364.4 million in 2025 from $331.6 million in 2024, marking a growth of 9.8%[26] - The backlog of unfilled orders at December 27, 2025, was approximately $1,070.9 million, up from $664.9 million at December 28, 2024, indicating growth across all segments[59] - Sales to Arrow Electronics, Inc. accounted for 9.5%, 9.4%, and 11.2% of consolidated net sales in 2025, 2024, and 2023, respectively, with no other single customer exceeding 10% of net sales during the last three years[55] International Sales - Approximately 65% of the Company's net sales in fiscal year 2025 were to customers outside the U.S., with 24% specifically to China[27] - Approximately 65% of the Company's total net sales in fiscal years 2025 and 2023 came from customers outside the U.S., with 63% in 2024[55] Acquisitions and Investments - The acquisition of Basler Electric was completed for $350.3 million, adding approximately $130 million in annualized sales to the Industrial segment[23] - The Dortmund Fab acquisition cost approximately €94 million (around $98.8 million), enhancing the semiconductor supply chain for industrial markets[23] - The Company expanded its electrical shock protection devices portfolio through the 2023 acquisition of Western Automation, enhancing its presence in high-growth markets such as electric vehicle charging infrastructure and industrial safety[41] - The Company invested $106.9 million, $107.8 million, and $102.4 million in R&D during fiscal years 2025, 2024, and 2023, respectively, to improve existing products and develop new ones[43] Operational Strategy - The Company aims to enhance operational excellence through a Global Operations team focused on safety, quality, delivery, cost, and inventory[23] - The Company is transitioning to a collaborative, market-facing sales structure to provide more complete solutions for a broader set of customers[23] - The Company has established three market-facing sales organizations to enhance customer engagement and streamline access to its technology portfolio[50] Environmental and Safety Commitment - The Company aims to minimize its environmental footprint by localizing supply sources and diversifying its supplier base for critical materials[48] - The Company is committed to achieving a zero-injury workplace and continuously evaluates its environment, health, and safety programs[73] Financial Risks and Challenges - The Company recorded a non-cash charge of $301.2 million for goodwill impairment in the Semiconductor reporting unit within the Electronics segment for the 2025 annual goodwill impairment test[129] - In the fourth quarter of 2024, the Company recorded non-cash impairment charges of $47.8 million for intangible assets, primarily related to acquired customer relationships and developed technology[131] - The Company is exposed to significant fluctuations in foreign currency rates, with the most significant net long exposure to the euro and net short exposures to the Chinese renminbi, Mexican peso, and Philippine peso[126] - The Company anticipates that compliance with environmental regulations will not significantly change its competitive position, capital spending, or earnings in the foreseeable future[82] - The Company has experienced cyber-attacks and other security incidents, which could disrupt operations and compromise sensitive information, potentially impacting financial results and reputation[139] - The Company may face challenges in obtaining "conflict-free" minerals, which could lead to additional expenses and impact relationships with customers and suppliers[140] - The Company’s revenues may vary significantly due to factors such as changes in customer demand, product mix, and economic conditions[127] - The Company has a high level of fixed costs, which may adversely affect operating results if sales fall below expectations[136] Employee and Global Presence - The Company employs approximately 17,000 full-time, part-time, and temporary employees, with 45% in the Americas, 42% in Asia-Pacific, and 13% in Europe as of December 27, 2025[61] - The Company maintains a strong global presence with manufacturing facilities in multiple countries, including China, France, Germany, and the U.S.[47] Stock Performance - The Company’s stock price fluctuated between a low of $142.3 and a high of $275.0 from December 28, 2024, to December 27, 2025, indicating significant market volatility[137]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38432 Wyndham Hotels & Resorts, Inc. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Org ...

Exhibit 99.2 | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | 3 | | --- | --- | | CONSOLIDATED BALANCE SHEETS (UNAUDITED) | 4 | | CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) | 5 | | CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | 6 | | NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | 7 | | 1. DESCRIPTION OF BUSINESS AND SEGMENTED DISCLOSURES | 7 | | 2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE | 14 | | 3. MEG ENERGY CORP. ACQUISITION | 15 | | 4. FINANCE ...

Raw Material and Supply Chain Risks - The company continues to face significant risks related to raw material costs, which are its largest production cost component, primarily influenced by petroleum-derived and titanium dioxide materials [52]. - Supply chain disruptions and fluctuations in raw material costs could adversely impact the company's income from continuing operations and cash from operating activities [54]. - The company is actively working on diversifying its raw material supply and reducing reliance on certain materials, such as titanium dioxide [53]. Economic and Geopolitical Factors - Economic and geopolitical uncertainties, including the ongoing war in Ukraine and tensions between China and the U.S., could negatively impact the company's financial results [55]. - Fluctuations in foreign currency exchange rates could affect the company's net sales and net income, as its financial statements are presented in U.S. dollars [56]. Acquisitions and Growth Strategy - The company has completed over 50 acquisitions in the last decade, indicating a strong growth strategy through acquisitions and joint ventures [73]. - Approximately 70% of the company's total net sales were recognized outside of the United States in 2025, following the divestiture of its U.S. and Canada Architectural Coatings business [67]. Innovation and Technology - The company is incorporating artificial intelligence technologies into its research and products, which may present operational and compliance risks [72]. - PPG is committed to continuous product innovation and development; failure to keep pace with market demands could negatively impact financial performance [79]. Legal and Regulatory Risks - The company is subject to evolving environmental regulations that may require substantial capital expenditures and could impact its operations [60]. - Legal and regulatory risks, including potential lawsuits and compliance costs, could adversely affect the company's financial condition and results of operations [62]. - PPG is involved in various legal proceedings, including a significant case in Brazil with potential liabilities exceeding $700 million related to a fire incident [97]. Cybersecurity - PPG's cybersecurity program is based on the NIST framework and includes ongoing employee training, access management, and a cyber incident response plan to mitigate risks [83]. - The company has significantly increased its cybersecurity investments over the last five years, although sophisticated cyber threats remain a risk to operations and data integrity [85]. - PPG has a structured approach to risk management, with the Board overseeing enterprise risk management, including cybersecurity risks [86]. Financial Performance - PPG reported net sales of approximately $15.9 billion in 2025, flat compared to 2024, with higher selling prices, sales volume growth, and favorable foreign currency translation offset by divestitures [110]. - Income before income taxes increased by $193 million to $2,045 million in 2025, driven by lower business restructuring charges and improved manufacturing productivity [111]. - Net sales in the United States and Canada were $5,372 million, a 0.4% increase from 2024, while sales in Europe, Middle East, and Africa decreased by 0.3% to $5,368 million [112]. - Cost of sales increased by $64 million to $9,316 million, with cost of sales as a percentage of net sales rising to 58.7% from 58.4% [113]. - Selling, general and administrative expenses rose by 1.4% to $3,439 million, accounting for 21.7% of net sales [114]. - Earnings per diluted share from continuing operations increased by 21.0% to $6.92 in 2025 [124]. - Total comprehensive income for 2025 was $2,525 million, significantly higher than $269 million in 2024 [233]. Shareholder Returns and Capital Management - PPG's Board of Directors approved a $2.5 billion share repurchase plan in April 2024, with 21,264,544 shares remaining to be purchased as of October 2025 [108]. - Dividends paid to shareholders increased to $628 million, marking the 54th successive year of increased annual per-share dividend payments [182]. - PPG repurchased approximately 12 million shares for $790 million in 2025, with $2.0 billion remaining under its share repurchase authorization [139]. Cash Flow and Capital Expenditures - Operating cash flow generated in 2025 was $1.9 billion, supported by higher selling prices and sales volumes [127]. - Cash from operating activities increased by $545 million, or 39.2%, primarily due to higher net income and changes in accounts payable [172]. - Total capital expenditures, including acquisitions, increased by $27 million, or 3.6%, year over year [178]. Debt and Liquidity - PPG's total long-term debt obligations amount to $7,304 million, with $702 million due in 2026, $2,725 million in 2027-2028, and $1,507 million in 2029-2030 [191]. - The company maintains access to capital markets for additional liquidity, with no amounts outstanding under the Credit Agreement as of December 31, 2024, and December 31, 2025 [189]. - PPG's unrecognized tax benefits for uncertain tax positions totaled $122 million as of December 31, 2025, with no significant tax payments expected in the next year [193]. Market Trends and Future Outlook - The automotive industry is expected to undergo significant changes, including increased production of electric vehicles and new safety features like collision avoidance technology [75]. - PPG expects organic sales growth in 2026 to be flat to a positive low single-digit percentage, driven by aerospace and architectural coatings [131]. - The company anticipates annualized pre-tax savings of approximately $175 million from its cost reduction program, with $75 million realized in 2025 [132].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _______________________________________________________________________ FORM 10-K _______________________________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ...

Exhibit 99.1 Obsidian Energy Announces Fourth Quarter and Full Year 2025 Results CALGARY, February 19, 2026 - OBSIDIAN ENERGY LTD. (TSX / NYSE American – OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to report our operating and financial results for the fourth quarter and full year of 2025. | | | | Three months ended | | | | | Year ended | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | December 31 | | | | December 31 | | | | 2025 | | 2024 | | 2025 | | 2024 | | FI ...

Company Overview - AtriCure is a leading innovator in surgical treatments for atrial fibrillation (Afib), with over 59 million people affected globally[18]. - AtriCure is recognized as a market leader in surgical Afib treatment and LAAM, with ongoing investments in clinical studies to validate the efficacy and safety of its products[29]. - AtriCure is the only company with FDA-approved devices for treating long-standing persistent Afib, including the Isolator Synergy Ablation and the EPi-Sense System[58]. Market Opportunity - The market for AtriCure's ablation products represents a significant growth opportunity, with less than 15% of potential candidates for surgical ablation currently being treated[23]. - Approximately 500,000 Afib patients are treated by catheter ablation annually in the U.S., a number expected to grow significantly[25]. - The annual diagnoses of Afib exceed one million in the United States, with a significant percentage of cases being under-diagnosed[21]. - Up to 50% of cardiac surgery patients without pre-operative Afib may develop post-operative Afib (POAF), indicating a large addressable market for preventative therapies[26]. Clinical Trials and Research - The Left Atrial Appendage Occlusion Study (LAAOS) III trial demonstrated a significant reduction in strokes when the LAA was managed during cardiac surgery[24]. - The BoxX-NoAF IDE trial aims to evaluate the safety and effectiveness of ablation and LAA exclusion in reducing post-operative Afib (POAF) in non-Afib patients[26]. - The ICE-AFIB clinical trial showed a 70% freedom from atrial fibrillation/atrial flutter/atrial tachycardia from 6 to 12 months, with a 30-day major adverse event rate of 9.3%[59]. - The LeAAPS IDE clinical trial completed enrollment of 6,573 patients across 139 centers globally in July 2025, focusing on prophylactic LAA exclusion for stroke reduction[53]. - The EPi-Sense System received FDA PMA approval for treating symptomatic, drug-refractory, long-standing persistent atrial fibrillation, demonstrating a 29% absolute difference in efficacy at 12 months compared to endocardial catheter ablation alone[59]. Product Innovations - AtriCure's EPi-Sense ablation system can double the success rate for long-standing persistent Afib patients when used in conjunction with catheter ablation[25]. - The cryoXT™ device was launched in September 2025 to manage post-operative pain following amputations, addressing the needs of over 180,000 amputations annually in the U.S.[28]. - The cryoSPHERE MAX probe reduces freeze times by 50% compared to the first-generation cryoSPHERE probe, showcasing advancements in pain management technology[37]. - The AtriClip LAA Exclusion System has treated more than 750,000 patients globally, making it the most widely sold LAA management device[38]. - The AtriClip FLEX-Mini device, launched in 2024, sets a new standard as the smallest surgical LAA management device on the market[39]. Regulatory and Compliance - AtriCure's products are subject to regulation by the FDA and comparable authorities in the EU and other countries[66]. - The company is an FDA-registered medical device manufacturer and certified to ISO 13485:2016, ensuring compliance with quality system requirements[89]. - The European Union's Medical Device Regulation (EU MDR) effective May 26, 2021, imposes stringent conformity assessment requirements for medical devices[79]. - The company has successfully participated in the Medical Device Single Audit Program (MDSAP), recognized in Australia, Brazil, Canada, Japan, and the United States[90]. Employee and Workplace Culture - AtriCure had approximately 1,350 employees as of December 31, 2025, with a voluntary turnover rate consistently at or below 10% over the last five years[92]. - The company has been recognized as a Top Workplace ten times in the past eleven years and has been voted a Great Place to Work for four consecutive years[94]. - AtriCure is committed to advancing Diversity, Equity, and Inclusion (DE&I) initiatives, earning recognition for providing opportunities for women[98]. - The company regularly analyzes and benchmarks its compensation and benefits programs to attract and retain top talent[99]. Sales and Market Access - AtriCure's sales team in the United States consists of approximately 330 employees, with an additional 75 employees in international markets[57]. - The company is actively pursuing market access in various geographies, focusing on obtaining reimbursement for therapies involving its devices[65]. - Medicare's reimbursement policies are significant for AtriCure, as a large percentage of its product users are Medicare beneficiaries[61]. - Hospital reimbursement rates for cardiac surgical ablation procedures are believed to be adequate to cover the cost of AtriCure's products[62]. Supply Chain and Manufacturing - AtriCure's manufacturing facilities are located in Ohio, where the majority of products are assembled, inspected, tested, and packaged[87]. - The company maintains inventory levels of components and raw materials to minimize supply chain risks and has not experienced significant product availability issues[88]. - The company conducts regular audits of suppliers for compliance with quality system requirements[89].

Financial Performance - Consolidated total revenue for 2025 was $7.5 billion, a 0.8% increase from 2024[278]. - Consolidated net income attributable to Knight-Swift decreased by 43.9% to $65.9 million in 2025[278]. - The adjusted net income attributable to Knight-Swift for 2025 was $204.7 million, compared to $172.1 million in 2024, reflecting a growth of approximately 19%[367]. - The adjusted earnings per diluted share (EPS) for 2025 was $1.26, up from $1.06 in 2024, indicating a year-over-year increase of about 18.9%[368]. - The operating income for 2025 was reported at $216.1 million, down from $243.4 million in 2024, resulting in an operating ratio of 97.1% compared to 96.7% in the previous year[370]. - Impairments in 2025 amounted to $98.3 million, significantly higher than $19.0 million in 2024, impacting overall profitability[370]. Segment Performance - Truckload segment reported a 97.0% operating ratio in 2025, with a 2.8% decrease in revenue, excluding fuel surcharge[279]. - LTL segment achieved a 97.4% operating ratio in 2025, with a 20.6% increase in revenue, excluding fuel surcharge[279]. - Logistics segment had a 96.0% operating ratio in 2025, with a 4.7% increase in revenue per load[279]. - Intermodal segment reported a 102.1% operating ratio in 2025, with a 19.2% decrease in operating loss despite a 1.0% improvement in revenue per load[279]. - Total revenue for the Truckload segment decreased by 3.4% year-over-year to $4,865,034, while revenue excluding fuel surcharge and intersegment transactions decreased by 2.8% to $4,283,398[301]. - The LTL segment achieved a revenue increase of 19.7% year-over-year, totaling $1,478,508, with revenue excluding fuel surcharge rising by 20.6% to $1,281,975[308]. - Intermodal segment revenue decreased by 5.8% to $364.9 million in 2025, driven by a 6.7% decrease in load count, partially offset by a 1.0% increase in revenue per load[318][319]. - All Other Segments reported a revenue increase of 7.9% to $287.5 million, with operating income rising by $40.6 million, primarily due to improvements in warehousing and leasing businesses[322]. Cash Flow and Liquidity - Operating cash flows for 2025 were $1.3 billion, boosted by $478.2 million from a new accounts receivable securitization program[280]. - The company ended 2025 with $1.1 billion in unrestricted cash and cash equivalents and $7.1 billion in stockholders' equity[281]. - Free Cash Flow for 2025 was reported at $763,228, reflecting strong operational cash generation[380]. - Total unrestricted liquidity as of December 31, 2025, was $1,097,231, with total liquidity including restricted cash at $1,185,551[382]. - The company had a working capital deficit of $143.7 million as of December 31, 2025, an improvement from a deficit of $258.0 million in 2024[393]. - Net cash provided by operating activities increased by $467,584 to $1,266,647 in 2025 compared to 2024[396]. - Net cash used in investing activities decreased by $238,728, primarily due to reduced cash invested in acquisitions[398]. - Net cash used in financing activities increased by $668,346, driven by higher repayments on finance leases and long-term debt[399]. Expenses and Cost Management - Consolidated salaries, wages, and benefits increased by 4.7% to $2.96 billion, largely due to a $129.5 million increase in LTL wages from service center expansion and increased shipment count[324][326]. - Fuel expenses decreased by 3.7% to $838.8 million, attributed to lower average weekly diesel prices and a 3.2% decrease in total miles driven by truckload company drivers[327][329]. - Insurance and claims expense decreased by 7.3% to $385.1 million, primarily due to exiting the third-party insurance business and improvements in claims experience[332][334]. - Operating taxes and licenses expenses increased by $7.6 million in 2025, primarily due to the expansion of the LTL network, representing a 5.9% increase compared to 2024[337]. - Communications expenses decreased by 5.9% to $29.3 million in 2025, remaining flat as a percentage of total revenue at 0.4%[338][339]. - Depreciation and amortization of property and equipment decreased by 0.9% to $711.1 million in 2025, accounting for 9.5% of total revenue[340][341]. - Amortization of intangibles increased by 2.3% to $77.0 million in 2025, primarily attributed to the DHE acquisition[343][344]. - Rental expenses decreased by 2.8% to $166.8 million in 2025, representing 2.2% of total revenue[345][346]. - Purchased transportation expenses decreased by 3.6% to $1.1 billion in 2025, accounting for 15.1% of total revenue[347][348]. - Miscellaneous operating expenses decreased by 9.6% to $179.0 million in 2025, primarily due to a $30.8 million increase in gains on sales of operating property[352][353]. Strategic Initiatives - The company plans to adopt the AAA Cooper brand across its entire LTL business effective January 1, 2026, to streamline operations and enhance customer experience[307]. - The company combined Abilene trucking operations into the Swift business to enhance efficiency and productivity[302]. - In 2025, Knight-Swift opened 16 new service centers, achieving a year-over-year growth in door count of 10.0%[311]. - Knight-Swift continues to seek both organic and inorganic opportunities for geographic expansion within the LTL market[311]. - The company plans to continue focusing on operational efficiencies and strategic acquisitions to enhance market position and profitability moving forward[373]. Tax and Impairments - The effective tax rate for 2025 was 31.2%, up from 22.1% in 2024, primarily due to a reduction in pre-tax earnings[360]. - The effective tax rate for adjusted EPS calculation was 26.7% in 2025, compared to 25.4% in 2024, reflecting changes in tax strategy[369]. - The company recorded a non-cash impairment of $27.4 million related to goodwill associated with the Abilene brand due to operational changes[407]. - The fair value of certain trade names was determined to be zero, resulting in non-cash impairments of $33.5 million for the MME, DHE, and Abilene brands[408]. Interest Rates and Financial Management - A hypothetical one percentage point increase in interest rates would increase annual interest expense by $13.4 million, given the current variable interest rate of 5.4%[428]. - The company primarily manages interest rate exposure through a mix of variable rate debt and fixed rate equipment lease financing[428]. - The company has not used derivative financial instruments to hedge fuel price exposure but continues to evaluate this possibility[429]. - Management judgment is required in determining the provision for income taxes and assessing the likelihood of recovering deferred tax assets[420].