Financial Data and Key Metrics Changes - The company reported record full-year results of $2,800,000,000, up 20% over the prior year [8] - Adjusted EBITDA margin increased by 140 basis points to 11.8% in fiscal year 2025 [8] - Adjusted diluted earnings per share reached $3.91 compared to $3.33 last year, reflecting a 32% increase [9] Business Line Data and Key Metrics Changes - Parts Supply sales grew 17% to $306,000,000, with above-market growth of over 20% in new parts distribution activities [18][19] - Repair and Engineering sales increased 3% to $223,000,000, with organic sales growth of 8% when excluding the landing gear divestiture [21] - Integrated Solutions adjusted sales increased by 10% year over year to $181,500,000 [22] Market Data and Key Metrics Changes - Sales to government customers increased by 21%, while sales to commercial customers rose by 12% from the same period last year [17] - Total commercial sales accounted for 69% of total sales, with government sales making up the remaining 31% [17] Company Strategy and Development Direction - The company aims to expand market share in new parts distribution and parts supply, while also adding capacity to its heavy maintenance network [26][27] - Focus on achieving $10,000,000 in annual cost synergies from product support integration and continuing the rollout of paperless initiatives [27] - The company plans to pursue accretive acquisitions and optimize its portfolio for further growth [28] Management's Comments on Operating Environment and Future Outlook - Management expects organic sales growth to approach 9% for fiscal year 2026, with Q1 sales growth projected between 6% to 11% [31][32] - The company remains confident in its position within the airframe MRO market, despite potential capacity cuts from competitors [78] Other Important Information - The company reduced its net debt leverage from 3.06 to 2.72x, driven by strong cash flow and proceeds from the landing gear divestiture [24] - The Trax software solution has doubled its revenue from $25,000,000 to $50,000,000 since acquisition, with significant growth opportunities ahead [46][47] Q&A Session Summary Question: Can you discuss the first quarter guidance for revenue growth? - Management indicated that the wide range in guidance is influenced by the USM environment and larger transactions that may fluctuate [38] Question: What caused the step down in adjusted EBITDA margins in the repair and engineering segment? - The margin decline was attributed to the closure of the New York facility, leading to stranded costs, which are expected to improve as the facility exits [40] Question: Where could we see the most margin improvement in 2026? - Management highlighted that repair and engineering has the most opportunity for margin improvement due to completed integration and expected synergies [41] Question: What is the long-term view of Trax's revenue potential? - Management expressed confidence in doubling Trax's revenue again, driven by new business wins and upgrades of existing customers to new offerings [46][47] Question: Can you provide details on the Kira joint venture? - The joint venture aims to access specific DoD markets and allows the company to bid on contracts it could not pursue independently [75]