Financial Data and Key Metrics Changes - In Q1 2025, the company reported net sales of $290 million, reflecting a 6.8% decrease from $311 million in Q1 2024, with an organic decline of 5% [7][26] - Adjusted EBITDA for Q1 2025 was $41 million, or 14.1% of sales, down from $54.9 million and 17.7% in the prior year [32] - GAAP net income for Q1 2025 was $13.1 million compared to $28.4 million in the prior year, impacted by lower net sales and increased costs related to ERP and restructuring [24][25] Business Line Data and Key Metrics Changes - Equipment sales declined by 9%, and parts and consumables sales decreased by 4.7%, while service and other saw organic growth, but overall service revenue was negatively impacted by foreign exchange [28] - The AMR segment experienced a 30% sales growth compared to Q1 2024, contributing approximately 5% to net sales [17] Market Data and Key Metrics Changes - In The Americas, organic net sales decreased by 6.9%, but order rates increased by 20% compared to the prior year [11] - EMEA saw a 2% growth on a constant currency basis, driven by acquisitions and pricing realization, while APAC faced a 7.5% decline due to demand issues in China and Australia [12][29] Company Strategy and Development Direction - The company is focused on executing its enterprise strategy, which includes pricing discipline, innovative product launches, and targeted market investments [13][15] - The introduction of the Clean360 program aims to enhance AMR adoption by offering a subscription model that reduces upfront costs for customers [20][76] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic uncertainty due to tariffs and trade wars but noted stable demand for products and strong order rates [21][22] - The company anticipates order growth of 3.5% to 7% for 2025, despite challenges in translating order growth into equivalent sales growth due to prior backlog reductions [10][21] Other Important Information - The company expects to offset approximately $40 million in tariff-related costs through pricing and sourcing strategies [35][56] - Capital expenditures for 2025 are projected at approximately $20 million, with a commitment to return capital to shareholders [37][33] Q&A Session Summary Question: Margin guidance and EBITDA margin improvement - Management explained that the margin decline was due to a backlog headwind and a mix of strategic customer shipments, but they expect a return to normalized margins as the year progresses [42][44] Question: Impact of price hikes on demand - Management noted that it is too early to assess the impact of announced price hikes on demand, but they are monitoring customer behavior closely [64][66] Question: Clean360 program and AMR adoption - The Clean360 program was developed in response to customer feedback regarding high initial costs, aiming to facilitate AMR adoption through a subscription model [75][76]