Financial Data and Key Metrics Changes - Consolidated net sales increased by 20.3% to a record $115.1 million, with gross margins improving by 470 basis points to 24.5% [24] - Adjusted EBITDA increased significantly to $9.4 million, and adjusted net income improved by $8.7 million to $2.2 million, resulting in a record adjusted EPS of $0.09 [24][25] - Interest expense decreased to approximately $2.4 million following debt reduction and lower revolver borrowings [24] Business Line Data and Key Metrics Changes - Work Truck Attachments saw net sales increase by 52.9% to $36.5 million, driven by higher sales of parts and accessories due to improved winter weather conditions [25] - Work Truck Solutions achieved net sales growth of 9.5% to $78.6 million, primarily from higher municipal volumes and improved pricing realization [25] Market Data and Key Metrics Changes - The overall snowfall across the United States was 12% below the ten-year average but higher than the previous year, reversing a three-year trend [12] - The number of ice events experienced was significantly above average, contributing to increased sales in the Work Truck Attachments segment [12] Company Strategy and Development Direction - The company is focused on operational cash generation to cover dividends while considering small to medium-sized acquisitions in the work vehicle attachment space [20][21] - The leadership team emphasizes maintaining a disciplined approach to acquisitions while exploring operational excellence and brand integration [46] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the year, with a strong backlog and stable operations despite some softness in dealer business [16][22] - The company is well-positioned to manage tariff impacts, with 95% of net sales in the U.S. and most materials sourced domestically [37] Other Important Information - The effective tax rate for the quarter was unusually high at 69.8% due to breakeven results, but it is expected to normalize in the coming quarters [29] - Capital expenditures are expected to return to typical levels, with an increase to $2.2 million, and the leverage ratio improved to 2.1 times [30] Q&A Session Summary Question: Comments on the solutions business in 2025 versus 2024 - Management expects Solutions to achieve double-digit margins in the long term, with some uncertainty factored in for 2025 due to demand risks [41][42] Question: Cash priorities if no M&A candidates arise - The company is focused on operational excellence and may consider share buybacks or dividend increases if no suitable acquisition opportunities arise [46] Question: Timing of certain projects and their impact - Some volume in municipal projects was pulled from the second quarter, but the timing impact was not deemed overly material [48] Question: Competition's manufacturing footprint and tariff impact - Competitive pricing has been consistent, and the company is well-positioned to manage tariff impacts due to its U.S.-based operations [50][51] Question: Planned capacity expansion for the solutions side - Capacity expansion plans are in place but expected to come online in 2026, with a focus on prudent investment based on backlog and contracts [54]

Financial Data and Key Metrics Changes - Consolidated net sales increased by 20.3% to a record $115.1 million, with gross margins improving by 470 basis points to 24.5% [22] - Adjusted EBITDA rose significantly to $9.4 million, and adjusted net income improved by $8.7 million to $2.2 million, resulting in a record adjusted EPS of $0.09 [22][23] - Interest expense decreased to approximately $2.4 million due to debt reduction and lower borrowings [22] Business Line Data and Key Metrics Changes - Work Truck Attachments saw net sales increase by 52.9% to $36.5 million, driven by higher sales of parts and accessories due to improved winter weather conditions [23] - Work Truck Solutions achieved net sales growth of 9.5% to $78.6 million, primarily from higher municipal volumes and improved pricing realization [23] Market Data and Key Metrics Changes - The overall snowfall across the United States was 12% below the ten-year average but higher than the previous year, contributing to improved sales in Work Truck Attachments [11] - The number of ice events experienced was significantly above average, leading to increased interest in ice mitigation products [12] Company Strategy and Development Direction - The company is focused on operational cash generation to cover dividends while considering small to medium-sized acquisitions in the work vehicle attachment space [19] - The leadership team is committed to maintaining a disciplined approach to acquisitions while exploring opportunities for growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the year, noting that while there is uncertainty regarding the economic outlook and tariffs, the company is well-positioned to manage these challenges [20][36] - The company expects 2025 results to be similar to or slightly better than 2024, with a strong backlog and solid demand in the municipal sector [25][36] Other Important Information - The effective tax rate for the quarter was unusually high at 69.8% due to being close to breakeven, but it is expected to normalize in the coming quarters [28] - Capital expenditures are expected to be at the higher end of the usual range of 2% to 3% of net sales in 2025 due to catching up on postponed projects [29] Q&A Session Summary Question: Comments on the solutions business in 2025 versus 2024 - Management indicated that while they aim for double-digit margins in the long term, 2025 may see some uncertainty in demand affecting this goal [40][41] Question: Cash priorities if no M&A candidates arise - The company is focused on operational excellence and may consider share buybacks or increasing dividends if no suitable acquisition opportunities arise [44] Question: Timing of certain projects and their impact - Management noted that some volume in municipal projects was pulled from the second quarter, but the impact was not overly material [46] Question: Competitive pricing and tariff impact - Management stated that competitive pricing has been consistent with their adjustments, and they believe they are in a strong competitive position [47][49] Question: Planned capacity expansion for the solutions side - The company is planning a modest capacity expansion expected to come online in 2026, driven by strong demand and existing contracts [52]

Financial Data and Key Metrics Changes - In Q1 2025, net sales increased by 1% year over year to $778 million, with wholesale net sales up 2% and direct-to-consumer sales flat [19][20] - Gross margin expanded by 30 basis points to 50.9%, while SG&A expenses increased by 1% [19][20] - Diluted earnings per share rose by 6% year over year to $0.75 [19] Business Line Data and Key Metrics Changes - Columbia brand net sales increased by 3%, while Mountain Hardwear net sales decreased by 14% and SOREL net sales decreased by 8% [28][33][35] - The US direct-to-consumer net sales declined by low single digits, with e-commerce down by high single digits, while brick-and-mortar sales were up low single digits due to new store contributions [21][20] - International markets showed strong performance, with LAAP net sales up 14% and EMEA net sales up 7% [22][25] Market Data and Key Metrics Changes - US net sales decreased by 1%, with the wholesale business relatively flat [20] - China net sales increased in the low teens percentage, driven by strong e-commerce growth [22] - Japan net sales increased in the mid-teens percentage, benefiting from strong demand for late-season and winter products [23] Company Strategy and Development Direction - The company is focused on mitigating the impacts of US tariff increases and has a diversified supply chain to navigate uncertainties [6][11] - Columbia plans to increase investment in demand creation and launch a new global marketing platform starting in August [15][56] - The company aims to absorb much of the incremental tariff costs in 2025 while exploring strategies to offset higher tariffs in 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the company's brands and strategies, despite the unprecedented level of public policy uncertainty regarding trade [6][7] - The company has withdrawn its full-year 2025 outlook due to heightened uncertainty regarding tariff rates and consumer demand [16][109] - Management anticipates a challenging US market in the latter half of the year, with higher prices negatively impacting consumer demand [18] Other Important Information - The company has identified cost savings and profit-enhancing opportunities beyond the $150 million target established in 2024 [17] - Columbia's greater reward program has been recognized as a top loyalty program, contributing significantly to direct-to-consumer sales [32] Q&A Session Summary Question: What is the expectation for wholesale in the second half of the year? - Management indicated that the fall order book has not changed meaningfully and expects wholesale growth to be similar to early February expectations [39][42] Question: Are there opportunities to take market share due to private label offerings from China? - Management believes there are opportunities to gain market share from competitors facing challenges with imports from China [41][52] Question: How will the $40 to $45 million in incremental COGS from tariffs be distributed? - Management expects the majority of the tariff costs to be realized in the second half of the year, with potential impacts extending into 2026 [43][46] Question: What is the outlook for demand creation spending? - The company plans to increase marketing spending and improve efficiency in campaigns starting in August [54][56] Question: What are the recent trends in the China market? - Management noted strong growth in China, with plans to continue investing in localized design and production [67] Question: How is the company managing inventory in light of tariff uncertainties? - The company is rationalizing inventory purchases and pulling in inventory to mitigate potential tariff impacts [100][101]

Financial Data and Key Metrics Changes - First quarter net sales were $206.8 million, essentially flat year over year, with growth in material handling offset by softness in the distribution segment [24][26] - Adjusted gross margin improved by 80 basis points to 33.5%, driven by the acquisition of Signature and favorable product mix [25] - Adjusted operating income increased to $18.7 million, with a margin improvement of 100 basis points to 9% of sales [25] - Diluted adjusted earnings per share rose to $0.22 compared to $0.21 in 2024 [26] Business Line Data and Key Metrics Changes - Material Handling net sales increased by 3.6% year over year, primarily due to the Signature acquisition [26] - Adjusted EBITDA for Material Handling rose by 11.7% to $36.3 million, with a 60 basis point increase in adjusted EBITDA margin to 23% [27] - Distribution net sales decreased by 10.3% due to lower volume and pricing, with adjusted EBITDA dropping to $500,000 [27] Market Data and Key Metrics Changes - Industrial market is expected to see moderate growth driven by global inventory replenishment for military applications [31] - The vehicle end market, including RV and marine, is projected to decline due to economic uncertainty and tariff impacts [31] - Consumer market sales are anticipated to remain stable, while food and beverage markets are also projected to be stable [31] Company Strategy and Development Direction - The company is focused on a transformation program aimed at delivering consistent and reliable results, with objectives including establishing a culture of execution and accountability [12][13] - Plans to optimize cash flow and support disciplined capital allocation, including a $10 million share repurchase plan [17] - The company aims to announce an updated long-term strategy for each business by the end of the year [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff impacts due to a predominantly domestic supply chain [10][11] - There is a focus on improving performance across the portfolio, with specific strategies for high growth and lower growth markets [14][15] - Management acknowledged the challenges posed by economic uncertainty and tariffs, particularly in the RV and marine markets [54][56] Other Important Information - The company has achieved $12 million in synergies from the Signature acquisition, exceeding the initial target of $8 million [67] - The CFO announced his departure, with the corporate controller stepping in as interim CFO [22] Q&A Session Summary Question: Impact of tariffs on Central America facilities and customer price sensitivity - Management indicated that Central America has a small impact on the distribution business and that customers are price sensitive but will adjust as needed [38][39] Question: Reasons for low free cash flow this quarter - Management explained that low free cash flow was due to timing of accounts receivable and proactive inventory purchases ahead of potential tariffs [40][42] Question: Uptake in orders for military products from Signature and Scepter - Management reported strong order flow and growth in both Signature and Scepter businesses, with expectations for continued growth [45][48] Question: Details on the vehicle group's downturn - Management attributed the downturn to economic uncertainty and tariff impacts affecting RV and marine spending [52][54] Question: Needs for turning around the distribution business - Management emphasized the importance of understanding customer needs and providing value-added services to improve the distribution business [59][60] Question: Learnings from the Signature acquisition - Management highlighted successful integration and synergies achieved from the Signature acquisition, noting cultural fit and operational improvements [65][67]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $453 million, exceeding guidance of $435 million, with a trailing twelve-month margin of 35.5%, reflecting a 280 basis point improvement year-over-year [7][24][33] - Adjusted EPS for the quarter was $0.07, slightly below guidance due to a $0.05 foreign exchange headwind [8][24] - Net yields increased by 1.2%, driven by a 4.3% growth in net per diem, outperforming expectations [7][25] Business Line Data and Key Metrics Changes - The delivery of the new ship Norwegian Aqua was highlighted as a key initiative, showcasing enhancements aimed at improving guest experience while optimizing financial performance [6][8] - Significant progress was made in modernizing the existing fleet, with dry docks completed for Norwegian Bliss and Norwegian Breakaway, introducing new guest-focused enhancements [16][18] Market Data and Key Metrics Changes - Advanced ticket sales were up 3%, while occupancy was reported at 101.5%, down year-over-year due to increased dry dock days [19][24] - The company noted a 10% year-over-year increase in Caribbean capacity for Q4, which is expected to positively impact demand [20][21] Company Strategy and Development Direction - The company is focused on balancing return on investment (ROI) with return on experience (ROX), with initiatives including fleet optimization and enhancements to private island Great Stirrup Cay [6][12] - The strategic expansion of close-to-home itineraries is expected to improve the demand profile in the mid to long term [21][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in the long-term fundamentals of the cruise industry, which accounts for only 2% of the global vacation market [39][41] - The company is maintaining its full-year adjusted EBITDA and adjusted EPS guidance, reflecting confidence in its ability to execute despite potential top-line pressures [21][41] Other Important Information - The company has identified initiatives supporting $300 million in cost efficiencies across the organization, with a commitment to optimizing revenue and controlling costs [22][33] - The company is actively managing its balance sheet, with a focus on reducing leverage and maintaining a strong liquidity position [35][37] Q&A Session Summary Question: Could you elaborate on recent changes in the booked position for 2025 and early 2026? - Management noted some choppiness in bookings related to Q3 itineraries but indicated a return to normality in recent weeks, with bookings for 2026 ahead of historical levels [45][46] Question: Have you seen any notable change with recent onboard spending? - Onboard revenue trends remain strong, with guests continuing to spend at solid levels once onboard [51][75] Question: Can you break down bookings for the Norwegian brand versus luxury brands? - All three brands are experiencing similar booking patterns, with pressure primarily on Q3 Europe itineraries [63][65] Question: How do you think about the ROI of the investments in Great Stirrup Cay? - Investments in Great Stirrup Cay are expected to drive marketability and onboard spend, with a goal of increasing annual visitors from 400,000 to over 1,000,000 [91][92] Question: Is the greater mix of Caribbean and Fun and Sun itineraries a yield tailwind? - The company believes the mix will provide a yield tailwind, benefiting from both higher occupancy and lower operational costs [93][94]

Financial Data and Key Metrics Changes - First quarter sales were $492 million, an 8% decrease year-over-year primarily due to lower volumes and unfavorable mix, along with unfavorable foreign exchange [20][22] - Operating income was $63 million, with an operating margin of 12.9%, impacted by temporary cost increases in the Consumer and Specialty segment [22][23] - Earnings per share excluding special items was $1.14, with several special items recorded including a $215 million provision for BMI Old Co [23][24] Business Line Data and Key Metrics Changes - In the Consumer and Specialties segment, first quarter sales were $268 million, adversely affected by changes in customer order patterns and cautious inventory management [23][25] - The Engineered Solutions segment reported first quarter sales of $224 million, with stable market conditions in North America but lower demand in Europe [26][27] - Positive trends were noted in Household and Personal Care, with sales up 6% from the prior year, while Specialty Additives also saw growth in ground calcium carbonate [25][26] Market Data and Key Metrics Changes - The North American foundry market remained stable, while the China foundry business experienced strong growth due to higher export production [15][27] - Environmental and Infrastructure projects showed stability, with sales of Environmental Lighting applications up 19% year-over-year [28] - The overall market remains uncertain, with customer behavior influenced by changing tariff structures and economic conditions [10][11] Company Strategy and Development Direction - The company aims to penetrate core markets further, grow sales of higher-margin consumer-oriented products, and drive innovation [17][18] - The focus remains on products that address long-term growth pathways, such as water filtration technologies and renewable fuels [17][18] - The company is prepared to make operational and cost adjustments as needed to maintain a strong financial position [18] Management's Comments on Operating Environment and Future Outlook - Management characterized the quarter as challenging but noted a potential uptick in sales patterns moving into the second quarter [10][11] - There is significant uncertainty in the markets, but management remains confident in the company's long-term growth targets [17][18] - The company expects a stronger second quarter with sales projected to be 5% to 10% higher than the first quarter [34][36] Other Important Information - The company identified $10 million in cost savings targeted at efficiency improvements and general reductions in overhead [8][9] - A reserve of $215 million was established for estimated costs related to talc claims and ongoing litigation [9][23] - The company has a solid balance sheet with nearly $700 million in liquidity and a net leverage ratio of 1.7 times EBITDA [33] Q&A Session Summary Question: Update on talc litigation and reserve estimates - Management noted progress in mediation and confidence in the estimated costs for the trust and ongoing litigation [40][41] Question: Expectations for organic top-line growth amid uncertainty - Management indicated that while the first quarter was slow, there is a base demand that could lead to low single-digit growth if order patterns normalize [43][46] Question: Cadence of cost savings and margin improvement - Cost savings are expected to ramp up meaningfully in the third quarter, contributing to margin improvement [50][51] Question: Impact of tariffs on magnesium oxide and inventory strategies - Management confirmed that magnesium oxide is subject to tariffs, but they have built inventories to mitigate potential impacts [66][68] Question: Volatility in Household and Personal Care business - Management acknowledged recent volatility but expressed confidence in the long-term growth potential of the category [70][74] Question: Customer behavior regarding R&D and product development amid tariffs - Management reported that customer interest in new product developments remains strong despite tariff uncertainties [80][82] Question: Update on PFAS remediation projects and pilot plants - The pipeline for PFAS remediation remains strong, with ongoing trials and significant project wins [87][90]

Financial Data and Key Metrics Changes - First quarter sales were $492 million, an 8% decrease year-over-year primarily due to lower volumes and unfavorable mix, along with unfavorable foreign exchange [20][22] - Operating income was $63 million, with an operating margin of 12.9%, impacted by temporary cost increases in the Consumer and Specialty segment [22][23] - Earnings per share excluding special items was $1.14, with several special items recorded including a $215 million provision for BMI Old Co [23][24] Business Line Data and Key Metrics Changes - In the Consumer and Specialties segment, first quarter sales were $268 million, adversely affected by changes in customer order patterns and cautious inventory management [24][25] - The Engineered Solutions segment reported first quarter sales of $224 million, with stable market conditions in North America but softer demand in Europe [26][27] - Positive trends were noted in Household and Personal Care, with sales up 6% from the prior year in edible oil and renewable fuel purification [25][28] Market Data and Key Metrics Changes - The North American foundry market remained stable, while the China foundry business experienced strong growth due to higher export production [15][27] - Environmental and Infrastructure projects showed stability, with a 19% increase in sales for Environmental Lighting applications [28] - The overall market remains uncertain, with expectations of a significant downturn in the U.S. economy potentially affecting future performance [16][18] Company Strategy and Development Direction - The company aims to penetrate core markets further, focusing on higher-margin consumer-oriented products and driving innovation [17][18] - Strategies are aligned with secular trends, targeting efficiency and cost savings for customers, particularly in water filtration and renewable fuels [17][18] - The company is prepared to make operational adjustments and has a strong foundation to navigate uncertainties ahead [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first quarter but noted an uptick in sales in March, indicating potential recovery [6][11] - The forecast for the second quarter encompasses a range of outcomes based on customer reactions to the economic landscape [11][34] - Confidence remains in long-term growth targets despite current market uncertainties, with a focus on maintaining a strong financial position [17][18] Other Important Information - The company identified $10 million in cost savings targeted at efficiency improvements and general reductions in overhead [8][9] - A reserve of $215 million was established for estimated costs related to talc claims and ongoing litigation [9][23] - The company has nearly $700 million in liquidity and a net leverage ratio of 1.7 times EBITDA, indicating a solid balance sheet [33] Q&A Session Summary Question: Update on talc litigation and reserve estimates - Management reported progress in mediation and confidence in the estimates for funding the trust and ongoing litigation costs [40][41] Question: Expectations for organic top-line growth amid macro impacts - Management indicated uncertainty in growth projections but noted a stable base demand and potential for low single-digit growth [43][46] Question: Cadence of cost savings and margin improvement - Cost savings are expected to ramp up meaningfully in the third quarter, contributing to margin improvement [50][51] Question: Operating margin outlook for 2025 - Management expects operating margins to potentially improve in the second half of the year, with a target of 15% [62][63] Question: Impact of tariffs on magnesium oxide sourcing - Management confirmed that magnesium oxide is sourced from multiple locations, including China, and inventory levels are being built up in anticipation of tariff impacts [66][68] Question: Volatility in Household and Personal Care business - Management acknowledged recent volatility but expressed confidence in the long-term growth potential of the category [70][74] Question: Customer attitudes towards R&D and product development amid tariffs - Management reported no significant changes in customer engagement regarding new product developments, indicating continued interest in high-value products [80][82] Question: Update on PFAS remediation projects - Management highlighted a strong pipeline for PFAS remediation projects, with ongoing trials and significant contract wins [90][92]

Financial Data and Key Metrics Changes - Otis Worldwide Corporation reported net sales of $3.3 billion with organic sales flat year over year [24] - Adjusted operating profit increased by 3% excluding a $16 million foreign exchange headwind, with adjusted operating profit margin expanding by 40 basis points to 16.7% [24][11] - Adjusted EPS grew by 5% or $0.04 in the quarter, driven by solid operational performance and a lower share count [25] Business Line Data and Key Metrics Changes - Service organic sales grew by 4%, with maintenance and repair services increasing by 3% and modernization orders rising by 12% [10][26] - New equipment organic sales declined by 7%, with EMEA sales growing mid-single digits and APAC growing approximately 10% [29][30] - Service operating profit increased to $537 million, with operating profit margins expanding to 24.6% [28] Market Data and Key Metrics Changes - Americas saw strong orders performance, growing mid-teens, while Asia Pacific orders grew greater than 20%, primarily driven by India and Southeast Asia [15][16] - New equipment orders in China declined greater than 20%, aligning with expectations, while EMEA experienced mid-single digit declines [15][16] - The total backlog, including maintenance and repair, remains at historically high levels, positioning the company well for future quarters [14] Company Strategy and Development Direction - The company is focused on service-driven business models and modernization opportunities, with a projected multiyear growth cycle in modernizations due to an aging installed base [17][19] - Otis is implementing transformation initiatives, including Uplift and a China transformation program, to drive process efficiencies and capture service and modernization opportunities [50][52] - The company anticipates adjusted free cash flow of approximately $1.6 billion, primarily returning capital to shareholders through dividends and share repurchases [44] Management's Comments on Operating Environment and Future Outlook - Management expects the global new equipment market to stabilize later in 2025, with a projected decline in new equipment units of mid-single digits for the year [35][36] - The service business, representing approximately 90% of segment operating income, is largely insulated from tariff impacts, with expectations for continued growth [39][40] - Management remains optimistic about the service flywheel model and anticipates stronger growth in the second half of the year due to backlog execution and cost savings realization [57][60] Other Important Information - The company announced an 8% increase in its dividend, bringing cumulative dividend increases since the spin-off to approximately 110% [12][44] - Otis was recognized by Fortune as one of the world's most admired companies and named to the Wall Street Journal's best-managed companies list [12] Q&A Session Summary Question: Can you provide clarity on the gross headwind from tariffs? - Management indicated that the annualized impact of China tariffs is around $90 million, with mitigation efforts expected to offset half of this amount [66][68] Question: Are you seeing any impact at the local level in China regarding US companies? - Management stated that there is no overt targeting of Otis Worldwide Corporation in China, and they continue to develop relationships at all levels of government [78] Question: What is the pricing strategy in response to tariffs? - Management confirmed that they have increased prices across new equipment and maintenance services, with a focus on passing inflation costs to customers [80] Question: What is the outlook for new equipment orders in China? - Management expects the China market to be down 15% in the second quarter, with a gradual improvement anticipated in the second half of the year [84] Question: Can you elaborate on the project delays in the Americas? - Management noted that project delays are primarily due to uncertainty around global trade policies, but they remain optimistic about backlog execution and future orders [122][126]

Financial Data and Key Metrics Changes - The fourth quarter of 2024 showed improved consolidated results across all metrics compared to the previous year, primarily due to strong growth in the Solutions segment and increased margins in the Attachments segment [4][20] - Net sales were flat at $568.5 million, with gross profit increasing by 9% to $146.8 million, resulting in a gross margin increase of 220 basis points to 25.8% [21][22] - Net income rose to $56.2 million from $23.7 million, driven by a one-time gain from a sale leaseback transaction and improved profitability across both segments [23] Business Line Data and Key Metrics Changes - In the Attachments segment, sales decreased by 12% to $256 million, while adjusted EBITDA declined only 4% to $48.5 million, with an adjusted EBITDA margin improvement of 160 basis points to 18.9% [25] - The Solutions segment achieved record sales of $312.5 million, a 13% increase, and adjusted EBITDA increased by 76% to $30.9 million, with margins improving by 350 basis points to 9.9% [26] Market Data and Key Metrics Changes - Snowfall this winter has been regional, with above-average snowfall in some markets but insufficient snow in core markets like Chicago, New York, and Boston [12][13] - Dealer sentiment remains positive, and inventory levels are decreasing, indicating a strong financial footing for dealers [14] Company Strategy and Development Direction - The company aims to maintain its current dividend and is open to small and medium-sized acquisitions if suitable opportunities arise, while maintaining a disciplined approach [6][7] - The focus remains on long-term growth, with a strong emphasis on operational efficiency and adapting to market conditions [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the upcoming snow season, expecting it to be better than the previous year, which had significantly low snowfall [12][19] - The company anticipates net sales for 2025 to be between $610 million and $650 million, with adjusted EBITDA projected to range from $75 million to $95 million [31][32] Other Important Information - The company successfully executed a cost savings program in 2024, exceeding expectations and producing pre-tax savings of over $10 million [22] - The total backlog at the end of 2024 was $348 million, an increase of $52 million, driven by strong municipal bookings [24] Q&A Session Summary Question: Weather impact on sales in the South and Southeast - Management noted limited dealer presence in the Deep South but acknowledged some sales in those areas due to snowfall [38][39] Question: Update on private sector growth in the Solutions segment - Growth is primarily seen in the municipal sector, with some softness in the commercial side [40][41] Question: Free cash flow expectations for 2025 - Free cash flow is expected to be at or better than 2024 levels, with improvements in working capital and capital expenditures anticipated [44][45] Question: Regional distribution of snowfall and its impact - Key markets are primarily east of the Mississippi and north of Tennessee, with a strong presence in Canada [53] Question: Future margin improvement in the Solutions segment - Margins are expected to improve through increased throughput and ongoing efficiency initiatives [55]