Financial Data and Key Metrics Changes - Consolidated net revenue for Q1 2025 decreased by 1% to $685 million compared to $693 million in the same period last year [14] - Same branch sales were down 4% for the first quarter, with a 1.5% increase in price mix offset by a 5.6% decrease in job volumes [14][15] - Adjusted gross margin decreased to 32.7% from 33.9% in the prior year period, impacted by higher vehicle insurance and depreciation expenses [15] - Adjusted EBITDA for Q1 2025 decreased to $102 million, reflecting an adjusted EBITDA margin of 15% [16] Business Line Data and Key Metrics Changes - New single-family installation sales decreased relative to the same period last year, partially due to one less selling day and adverse weather conditions [8] - Multifamily sales in the installation segment decreased by 5% on a same branch basis, following a strong 13% increase in the previous year [9] - Heavy commercial sales grew significantly, driven by strong demand in the data center construction industry, while light commercial markets saw a decline [9][67] Market Data and Key Metrics Changes - Single-family starts year-to-date through March 2025 decreased by 6%, indicating a challenging market environment [11] - The multifamily starts year-to-date are reported to be up 9%, suggesting potential recovery in that segment [27] - The company noted that the regional and local builder business performed slightly better than the production builder business in the quarter [34] Company Strategy and Development Direction - The company remains focused on maintaining a high level of installation service and is committed to investing in growth through acquisitions [5][8] - The business model emphasizes geographic and product growth with a disciplined approach to capital allocation [7] - The company aims to optimize G&A costs, targeting at least $15 million in reductions, which are expected to start impacting results in Q3 [90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term demand for installed services despite current market headwinds [6][66] - The company anticipates continued headwinds in both single-family and multifamily markets throughout 2025 [66] - Management highlighted the importance of strong customer relationships and experienced leadership in navigating market uncertainties [11][12] Other Important Information - The company repurchased 200,000 shares of common stock at a total cost of $34 million during Q1 2025 [18] - A second-quarter dividend of $0.37 per share was approved, representing a 6% increase over the prior year [18] Q&A Session Summary Question: How is the company managing its labor force in the current demand environment? - The company adjusts its install labor based on job volume fluctuations, holding labor during temporary situations like severe weather [22][24] Question: Can you discuss the performance of the multifamily segment? - Despite a 20% decrease in units under construction, multifamily revenue only declined by 5%, aided by the CQ team's management [25][26] Question: What was the impact of weather and lost selling days on revenue? - The lost selling day is estimated to have cost $10 million to $12 million, with weather impacts adding another $10 million to $20 million [29][30] Question: How do you view trends in single-family markets? - The regional/local builder business performed slightly better than production builders, with expectations of flat to low single-digit declines in single-family revenue [34][36] Question: What are the expectations for material prices? - Material costs are expected to remain stable, with no significant declines anticipated despite potential increases in supply [39][40] Question: What are the opportunities for cost reductions in G&A? - The company is targeting $15 million in G&A cost reductions, with actions already taken to realize these savings [90][104]

Core Viewpoint - The overall decline in U.S. Treasury yields indicates a shift in market sentiment towards risk aversion, with increased demand for safe assets, particularly in the context of recent economic concerns and Federal Reserve policy expectations [1][6]. Treasury Yield Trends - As of May 6, all maturities of U.S. Treasury yields experienced a decline, with the 2-year yield down by 4.75 basis points to 3.7827%, the 3-year yield down by 5.32 basis points to 3.7556%, the 5-year yield down by 4.19 basis points to 3.8957%, the 10-year yield down by 4.87 basis points to 4.2946%, and the 30-year yield down by 3.76 basis points to 4.797% [2]. 10-Year Treasury Auction Results - The U.S. Treasury auctioned $42 billion of 10-year notes on May 6, with a high yield of 4.342%, lower than the previous auction's 4.435%. The bid-to-cover ratio was 2.60, slightly below the previous auction's 2.67 but above the recent six-auction average of 2.59, indicating a recovery in market demand [3]. Strong Market Demand - The allocation to direct bidders, representing domestic demand, was 19.9%, while indirect bidders, representing foreign demand, received 71.2%. Primary dealers received only 8.9%, highlighting strong market demand, particularly from overseas investors [4]. Easing of Market Sell-off Sentiment - The decline in Treasury yields and the recovery in market demand have partially alleviated recent market sell-off sentiments, which were driven by concerns over the U.S. economic outlook and anticipated tightening policies from the Federal Reserve [5]. Stability and Future Outlook of the Treasury Market - The overall decline in U.S. Treasury yields reflects a decrease in risk appetite among investors, with strong demand for safe assets. The auction results indicate robust market demand, especially from foreign investors, contributing to market stability. Future trends in the Treasury market will be influenced by economic data, Federal Reserve policies, and global market dynamics [6].

Financial Data and Key Metrics Changes - The company reported a 3.7% year-on-year increase in revenue for Q1 2025, driven by strong performance in the HVAC segment and recent acquisitions [8][13] - Adjusted EBITDA grew by 12% year-on-year, with a margin expansion of 150 basis points [6][8] - Adjusted EPS increased by 10% to $1.38 for the quarter [13][17] - The full year adjusted EPS guidance was raised to a range of $6.1 to $6.4, reflecting a year-on-year growth of 12% at the midpoint [17][18] Segment Performance Changes - In the HVAC segment, revenues grew by 6.8% year-on-year, with organic growth of 4.4% driven by the heating platform [13][14] - The Infection and Measurement segment saw a 2% decline in revenues year-on-year, with an organic decline of 6.9%, partially offset by a 5.2% increase from the acquisition of KTS [15][16] - Segment backlog for HVAC was $451 million, up approximately 3% from Q4, while the Infection and Measurement segment backlog was $346 million, up 56% sequentially from Q4 [14][16] Market Data and Key Metrics Changes - The company noted a healthy backlog for highly engineered solutions in the HVAC segment, with strong demand in healthcare and institutional markets [21][22] - The Detection and Measurement segment is experiencing steady run rate demand, with regional variations noted, particularly stronger in the U.S. compared to Europe and Asia [21][48] Company Strategy and Industry Competition - The acquisition of Sigma and Omega is expected to enhance the HVAC segment's value proposition and expand the addressable market, particularly in multi-story buildings [10][11][22] - The company aims to leverage its existing U.S. facilities to increase sales to U.S. customers with minimal additional capital investment [12][22] - The company believes it is less cyclical than most industrial tech companies due to diverse end market drivers and a high level of replacement revenue [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted a strong start to 2025 [22] - The company is optimistic about data center opportunities and new product initiatives in the HVAC segment [21][22] - Management acknowledged potential impacts from tariffs but indicated that they are well-positioned to manage these challenges [18][20] Other Important Information - The company ended Q1 with cash of $182 million and total debt of $960 million, resulting in a leverage ratio of approximately 1.6 times [16] - Adjusted free cash flow for Q1 was approximately $36 million [17] Q&A Session Summary Question: What is the gross and net tariff impact for the year? - Management indicated a tariff impact of approximately $0.08 to $0.12 on adjusted EPS, translating to a net cost of about $6 million at the midpoint [28][29] Question: How does the Sigma and Omega acquisition fit into growth rates and EBITDA margins? - Management expressed confidence in the acquisition, noting it complements existing products and has strong growth potential, with EBITDA margins slightly lower than the HVAC segment average [29][31] Question: How has order growth progressed through Q1 into Q2 amid tariff uncertainty? - Management reported steady demand across segments, with no significant changes attributed to tariff-related uncertainty [41][42] Question: What is the visibility for multi-year growth with Ingenia? - Management projected Ingenia's revenue capacity to reach $140 million by the end of the year, with high demand for its unique product offerings [52][54] Question: What is driving the growth in the Detection and Measurement segment? - Management noted strong demand driven by various applications, including military and government spending, contributing to the segment's growth [73][76]

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 were down 21% at $3.8 billion, with industrial adjusted EBIT at $101 million, down 73% year-over-year, and EPS for the quarter at $0.10 [12][19] - Free cash flow for industrial activities was an outflow of $567 million, which is significantly better compared to Q1 2024 due to more contained growth of finished goods and component inventories [19] - Gross margin for agriculture was 20%, down 380 basis points year-over-year, primarily due to lower production volumes and unfavorable mix, partially offset by operational cost reductions [19] Business Line Data and Key Metrics Changes - In agriculture, net sales decreased 23% in Q1 2025, driven by lower shipments across all regions due to weak industry demand and network destocking [19] - Construction net sales for Q1 were $591 million, down 22% year-over-year, with a gross margin of 14.9%, down 250 basis points compared to Q1 2024 [21] - Financial Services segment reported net income of $90 million, with a year-over-year decrease mainly due to higher expected risk costs and taxes [22] Market Data and Key Metrics Changes - Retail demand was slow in Q1, with production hours down 26% compared to Q1 2024, agriculture down 27%, and construction down 19% [13] - The Turkish market showed continued softness, impacting joint venture results in the Other category [21] - Delinquencies increased, particularly in South America and growing in North America, aligning with expectations during a downturn [22] Company Strategy and Development Direction - The company is focused on operational excellence, advancing technologies, and executing cost-saving initiatives while preparing for a new model year lineup [11][14] - The company aims to balance production levels with market demand, keeping production low to manage inventory effectively [12][14] - Strategic discussions are ongoing regarding potential partnerships in the construction business, but decisions are paused until market uncertainty settles [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the soft industry demand and the need for a cautious approach to production and inventory management [12][16] - The company expects the second half of the year to show improved profitability, returning to double-digit margins [67] - Management is actively monitoring tariff discussions and their potential impacts on operations and pricing strategies [15][28] Other Important Information - The company announced leadership changes, including the appointment of Jim Nicholas as the new CFO [6][10] - The company is committed to maintaining a strong presence in North America while adapting to global trade changes [31][35] - The company is preparing for an Investor Day to provide more insights into its product roadmap and strategic initiatives [44] Q&A Session Summary Question: Can you quantify the EPS impact from tariffs? - Management indicated that all changes in guidance are due to tariff scenarios, with a midpoint estimate reflecting potential impacts [50][51] Question: What is the outlook for production costs related to quality? - Management expects quality-related costs to improve in the coming quarters as product quality has been enhanced [55][56] Question: Can you elaborate on price adjustments and procurement efforts? - Price adjustments are moderate and aligned with cost movements, and the company is actively working with suppliers to share tariff-related costs [61][63] Question: How should we think about ag segment margins as the year progresses? - The first quarter is typically low, with expectations for improved margins in the second half of the year [66][67] Question: What is the current state of dealer inventories? - The company aims for a significant inventory reduction, having achieved a $100 million reduction in Q1, and will continue to monitor production levels closely [81][82]

Financial Data and Key Metrics Changes - The first quarter total sales were $848 million, translating to core growth of 1.4%, slightly better than initial guidance [11] - Adjusted EBITDA was $187 million, representing a margin rate of 22.1%, a decrease of 60 basis points year over year [13] - Gross margin expanded to 40.7%, exceeding the 40% threshold for the fourth consecutive quarter [13] - Adjusted earnings per share increased by approximately 6% to $0.36 [14] - Free cash flow for the first quarter was an outflow of $19 million, consistent with normal seasonal performance [23] Business Line Data and Key Metrics Changes - In the Power Transmission segment, revenues were $527 million, reflecting a core increase of approximately 2% [14] - The Fluid Power segment reported sales of $320 million, with core sales approximately flat [15] - Automotive replacement channel sales grew mid-single digits, driven by high single-digit growth in automotive replacement [5][14] - Personal mobility experienced over 30% growth, while agriculture and construction end markets decreased in the mid-single digits [12] Market Data and Key Metrics Changes - North America returned to growth with low single-digit core sales, driven by mid-teens growth in automotive replacement [18] - EMEA and South America both experienced year-over-year declines [18] - China core sales expanded by 3.5%, with industrial end markets growing mid-single digits [20] - East Asia and India posted approximately 5% growth in core sales, supported by automotive replacement and diversified industrial [21] Company Strategy and Development Direction - The company is maintaining its initial 2025 financial guidance, with core revenues expected to range from down 0.5% to up 3.5% relative to 2024 [24] - Actions have been implemented to mitigate tariff impacts, primarily through price increases and operational initiatives [8][26] - The management team is focused on optimizing sourcing and logistics networks to enhance competitiveness [10][29] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing softness in agriculture and construction markets, but strong growth in personal mobility and automotive markets [6][12] - There is increased uncertainty in the market due to tariffs, but customer demand has remained consistent with initial guidance [9][28] - The management team expressed confidence in their ability to navigate economic uncertainties and manage costs effectively [10][29] Other Important Information - The company repurchased $13 million of its shares during the quarter, with over $100 million remaining under the existing authorization [8][23] - The net leverage ratio declined to 2.3 times, a slight improvement year over year [23] Q&A Session All Questions and Answers Question: Can you discuss the tariff impact and competitive positioning? - The company expects to offset the majority of the estimated $50 million tariff impact with price actions and operational initiatives [36][38] - Management believes they are competitively well-positioned due to their in-region, for-region manufacturing philosophy [40][88] Question: What is the status of internal initiatives and their relation to current trends? - The company is ahead of schedule on internal initiatives, which are contributing positively to gross margin performance [44][46] Question: How has demand changed in the end markets? - Demand has generally aligned with expectations, with personal mobility showing robust growth and automotive builds down more than initially anticipated [55][60] Question: What is the update on channel partners and inventory? - There has been no significant change in channel partner behavior, and inventory levels are balanced [99][101] Question: Can you provide insights on the liquid cooling business? - The company is experiencing significant interest in its liquid cooling products, with ongoing testing and validation with new customers [90][92]

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 FY2025 increased by 23% to $187.1 million compared to $151.5 million in the prior year [14] - Net earnings for the quarter increased by 47% to $26.6 million or $2.44 per diluted share, compared to net earnings of $18.1 million or $1.64 per diluted share in the prior year, marking the highest quarterly net earnings in the company's history [15] Business Segment Data and Key Metrics Changes - Irrigation segment revenues increased by 11% to $148.1 million compared to $133 million in the prior year, with North America Irrigation revenues decreasing by 7% to $77.1 million [16] - International Irrigation revenues increased by 42% to $71 million, driven by large projects in the MENA region [17] - Infrastructure segment revenues more than doubled to $38.9 million from $18.5 million in the prior year, primarily due to the completion of a large Road Zipper project valued at over $20 million [19] Market Data and Key Metrics Changes - In North America, no meaningful improvement in market conditions is expected in the near term, with USDA forecasting a 29% increase in net farm income primarily due to higher government support payments [9] - Internationally, particularly in developing regions, continued growth is expected driven by project activity focused on food security and water resource conservation [10] Company Strategy and Development Direction - The company is focused on long-term growth in the Road Zipper system leasing business, which supports a higher and more stable margin profile [7] - A comprehensive action plan has been implemented to address potential cost impacts from tariffs, including supplier negotiation and strategic inventory placement [12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the Road Zipper project sales pipeline despite challenges in predicting the timing of large projects [6] - The company anticipates stable demand for irrigation equipment in the second half of FY2025, pending any significant storm damage activity [9] Other Important Information - Total available liquidity at the end of Q2 was $236.7 million, including $186.7 million in cash and equivalents [20] - The company is evaluating the potential impact of additional or retaliatory tariffs and has the structure in place to react quickly [12] Q&A Session Summary Question: Insights on international revenue recognition timing - The company shipped more of the large project than originally anticipated, but this does not affect expectations for future quarters [26] Question: Details on tariff exposure and actions - The biggest impact is expected on the Irrigation business, with a marginal increase in cost of goods anticipated [30][32] Question: Margin performance in the Irrigation segment - Margins in North America remained comparable to last year, with volume leverage from international projects helping to offset gross margin dilution [40] Question: Impact of tariffs on agricultural economy and demand - Potential disruptions in US agricultural exports could impact pricing and customer sentiment, but government support is expected if needed [46][48] Question: Expectations on pricing in the domestic irrigation market - The company has already taken pricing actions based on increased steel costs and believes it can pass these costs along to customers [53]

Group 1: Business Overview - The main clients for the company's gas turbine business include GE, Mitsubishi, Siemens, Shanghai Electric, Dongfang Electric, and Harbin Electric [1] - The high-end casting project of 65,000 tons is primarily focused on wind power components, with production expected to commence gradually around May or June 2025 [1] - The gas turbine market is projected to see sustained demand growth due to rising global electricity needs, with the company currently operating at full capacity [1] Group 2: Product and Market Insights - The company plans to adjust production capacity between wind power and gas turbine components as needed [1] - In the large component business, offshore wind products currently have a lower market share compared to onshore wind products, with future planning dependent on market demand and policy changes [2] - The electric heating vulcanizing machine has shown significant advantages in energy savings and production environment improvements, with promising future development potential [2] Group 3: Pricing and Profitability - The pricing of vulcanizing machines varies based on customer specifications [2] - The tire mold business employs a systematic pricing mechanism, with gross margins influenced by product type and complexity [2] - The lifespan of tire molds is affected by material, processing technology, and usage methods, with increasing frequency of design updates [2] Group 4: Global Operations and Sales Strategy - The company has established subsidiaries in various countries, including the USA, Thailand, Hungary, India, Brazil, Vietnam, Mexico, and Cambodia, enhancing its global production service system [3] - The CNC machine tool business includes a range of products and offers personalized customization services, targeting industries such as precision molds, automotive, and electronics [3] - The sales strategy for CNC machine tools will combine direct sales and distribution, with a current focus on direct sales [3] Group 5: Future Development Plans - The company does not currently have plans for mergers or asset injections but will disclose any future arrangements as required [4] - The company anticipates an increase in annual production capacity due to ongoing factory construction and personnel expansion, with actual results dependent on market conditions [4]

Financial Data and Key Metrics Changes - Ampco Pittsburgh Corporation reported earnings per common share of $0.16 for Q4 2024 and $0.02 for the full year [5] - Net cash flow from operating activities was $7.5 million for Q4 and $18 million for the full year 2024 [5] - Consolidated net sales for Q4 2024 were $100.9 million, a decline of 6.6% compared to Q4 2023 [21] - Full year 2024 consolidated net sales declined by 1% [21] - Net income attributable to Ampco Pittsburgh for Q4 2024 was $3.1 million, compared to a net loss of $41.8 million in Q4 2023 [26][27] Business Segment Performance - The Air and Liquid Processing segment achieved record sales for 2024, improving by 11% from the prior year [6] - The Forged and Cast Engineered Products segment reported operating income of $1.1 million in Q4 2024, up from breakeven in the prior year [16] - Year-to-date operating income for the Air and Liquid Processing segment was $15.9 million, compared to a loss of $29.1 million in the prior year [10] Market Data and Key Metrics Changes - The two largest markets, North America and Europe, remain stable, with Europe experiencing market softness [18] - The company anticipates increased demand in the U.S. due to potential tariffs, slightly offset by lower demand in Mexico and stable demand in Europe [19] Company Strategy and Industry Competition - The company is focusing on addressing deficiencies in the UK operations, which could positively impact annual operating income by at least $5 million [7] - Strategic initiatives are in place to position the company for continued profitability and sustainable long-term performance improvement [20] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with current results despite positive improvements and emphasized the need for significantly improved returns to shareholders [75] - The company sees long-term opportunities for growth in the nuclear market and plans to expand beyond traditional North American markets [38] Other Important Information - The total backlog at 12/31/2024 was $378.9 million, flat compared to 12/31/2023 [27] - Capital expenditures for full year 2024 were $12.2 million, including final capitalization of the U.S. Forged plant modernization [28] Q&A Session Summary Question: What is the game plan for the UK situation? - The company is in a collective consultation process to explore options for reducing losses, which could lead to government support or potential closure of the plant [32][34] Question: Are there additional markets to enter in the Air and Liquid division? - Management indicated that there is increased activity within current markets and opportunities to expand beyond North America, particularly in the nuclear sector [36][38] Question: What are the plans for addressing debt levels? - The company plans to manage debt levels through working capital adjustments and is optimistic about reducing debt if demand increases [40][41] Question: What is the year-end backlog by business segment? - The backlog was flat with 2023, with Forged and Cast Engineered Products at $250.5 million and Air and Liquid Processing at $128.4 million [51] Question: Are mill rolls subject to tariffs? - Mill rolls are classified as rolling mill components and are not subject to tariffs, allowing for imports from Europe without additional costs [53][54]

Financial Data and Key Metrics Changes - The company reported net sales of $1.3 billion for Q3 2025, roughly flat compared to the same period a year ago, with organic sales declining by 6.7% [10][25] - Gross margin for the quarter was 31.2%, slightly down from 31.4% in the previous quarter and down from 33% a year ago [10][42] - Adjusted EBITDA decreased by 27.3% year-over-year to $93 million, with adjusted EBITDA margin declining from 10.2% to 7.4% [48][61] Business Line Data and Key Metrics Changes - Wallboard sales dollars were $501.7 million, down 3.6% year-over-year, with a 4.9% decline in volume partially offset by a 1.3% increase in price and mix [33] - Multifamily Wallboard volumes declined by 31.4%, while single-family Wallboard volumes were down 3.7% [34] - Complementary product sales grew 5.3% year-over-year, although organic sales decreased by 4.3% due to soft commercial and multifamily conditions [40] Market Data and Key Metrics Changes - US commercial revenues were down 7.8% organically compared to last year, with the Architectural Billings Index indicating a decline for 17 out of the last 18 months [13] - In Canada, housing sales data showed reductions in market inventory, and residential construction permits surged, indicating more positive conditions compared to the US [32][20] - The company expects single-family housing starts to remain muted for the calendar year due to affordability challenges and economic uncertainty [19] Company Strategy and Development Direction - The company is focusing on four strategic pillars: expanding share in core products, growing complementary products, expanding the platform, and driving improved productivity and profitability [21] - The company is implementing an additional estimated $20 million in annualized cost reductions, bringing total cost reductions to $50 million since the start of the fiscal year [22] - The company aims to maintain a balanced approach to capital allocation, investing in the business while also repaying debt and repurchasing shares [52] Management's Comments on Operating Environment and Future Outlook - Management indicated that the challenging demand backdrop is expected to continue through the end of the fiscal year and likely beyond, with no near-term catalysts for improvement [55] - The company remains optimistic about future growth as it navigates current uncertainties, expecting to be well-positioned when demand improves [62] - Management noted that the current macro conditions are anticipated to persist through most of calendar 2025, but they are confident in their strategy and operational adjustments [21][22] Other Important Information - The company recognized a $42.5 million non-cash goodwill impairment charge during the quarter, contributing to a GAAP net loss of $21.4 million compared to net income of $51.9 million in the prior year [46][47] - Cash provided by operating activities was $94.1 million, with free cash flow of $83.1 million, representing 89% of adjusted EBITDA for the quarter [50] Q&A Session Summary Question: Steel pricing outlook and expectations - Management acknowledged that while there may be some inflation in steel prices, it is expected to be post-quarter due to current demand conditions [67][68] Question: April quarter outlook and cost reductions - Management confirmed that the full run rate of the $20 million cost reductions will be realized in the first quarter of fiscal 2026, with some benefits expected in the current quarter [71][76] Question: Deterioration in commercial sectors - Management noted that commercial sectors are experiencing significant declines, particularly in retail and private financing projects, while data centers remain strong [82][84] Question: Ceiling pricing dynamics - Management indicated that the strong performance in ceiling pricing is due to a focus on architectural specialties and successful project closures [100][102] Question: Wallboard pricing and volume growth - Management stated that volume growth across any end market would be beneficial for pricing, with a particular emphasis on the importance of single-family housing for Wallboard demand [109][110] Question: Long-term EBITDA margin expectations - Management reaffirmed that long-term EBITDA margin expectations remain above 10%, with a target of around 9% for the current year despite current challenges [125][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]