Financial Data and Key Metrics Changes - For Q4 2025, revenue was $171.2 million, down 22.9% year-over-year, reflecting a strategic decision to reduce production [5] - Full-year 2025 revenue was $790.3 million, down 37.2% from 2024, with gross profit at $120.4 million or 15.2% of sales [6] - Diluted EPS for Q4 was $0.29 per share, with net income for the full year at $23 million or $1.98 per diluted share [6][5] - SG&A expenses increased year-over-year due to one-time expenses related to a voluntary retirement program [7] Business Line Data and Key Metrics Changes - The acquisition of OMARS was completed on December 2, contributing approximately one month of results in Q4 [5] - Retail order activity showed sequential improvement late in Q4, leading to increased production levels at U.S. facilities to meet demand [5] Market Data and Key Metrics Changes - Domestic market conditions are improving with normalized distributor inventory and steadier retail demand as the company enters 2026 [9] - The export business remains strong, with growing demand in international markets such as Australia, Japan, Mexico, and Indonesia [9] - The company has secured over $150 million in military commitments, with production scheduled to begin in 2027 [11] Company Strategy and Development Direction - The company aims to expand its European footprint through the OMARS acquisition, which is expected to enhance sales channels and manufacturing capabilities [10] - A significant expansion project at the Ooltewah facility is underway, estimated at $100 million, to increase capacity and streamline workflow [12] - The company is focused on disciplined capital allocation, prioritizing dividends, debt reduction, share repurchases, and selective M&A opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 revenue outlook of $850 million to $900 million, with expectations for performance to accelerate in the second half of the year [14] - The company anticipates gross margins returning to historical levels in the mid-13% range for the full year [15] - Management highlighted the importance of normalized distributor inventories and stronger retail demand visibility as key factors for future growth [16] Other Important Information - The company has paid dividends for 61 consecutive quarters, returning approximately $15.1 million to shareholders in 2025 [13] - The integration of OMARS is progressing well, with expectations for it to be accretive in the first year [10] Q&A Session Summary Question: Margin expectations and cost reductions - The management indicated that gross margins are expected to normalize back to mid-13% range, better than pre-COVID levels [21] - Cost reductions have been implemented, but the impact on margins will be seen as production ramps back up [22] Question: Confidence in 2026 revenue outlook - Management expressed higher confidence in the 2026 outlook compared to the previous year, citing improved data analysis and normalized distributor inventory [25] Question: Mix of chassis and tow sales - The management confirmed that the mix is returning to a normalized level, though not a strict 50/50 split [30] Question: Accretion from OMARS acquisition - The management clarified that while OMARS is expected to be accretive in the first year, the long-term benefits will come from synergies and enhanced production capabilities [32]