Financial Data and Key Metrics Changes - The company achieved record net sales of $52.5 million, representing a 36% year-over-year increase, driven by a 113% increase in fire service products [3][4] - Adjusted EBITDA, excluding FX, was $5.1 million, an increase of $2.4 million or 90% compared to the same period last year [14][18] - Net income was $800,000 or $0.08 per share, compared to a net loss of $1.4 million or $0.19 per share for the same quarter last year [14][24] - Adjusted gross margin percentage decreased to 37.4% from 41.1% year-over-year, primarily due to lower acquired company gross margins and increased material costs [4][20] Business Line Data and Key Metrics Changes - Sales from fire service products increased by $13.6 million year-over-year, with contributions from Meridian and LHD Group [16][22] - Organic sales increased by $5 million or 14% over the prior year [15][19] - Adjusted gross profit for the second quarter was $19.6 million, an increase of 24% compared to the same period last year [16][18] Market Data and Key Metrics Changes - Domestic sales were $22.1 million, representing 42% of total revenues, while international sales were $30.4 million, accounting for 58% of total revenues [15][19] - U.S. revenue increased 78% year-over-year, while European revenue grew 113% [22][23] - Latin American operations experienced a $3.6 million decrease in sales due to delayed purchase decisions from tariff uncertainty [23] Company Strategy and Development Direction - The company aims to continue robust growth in fire services and industrial segments, focusing on acquisition synergies and increasing market share [3][4] - Strategic initiatives include streamlining operations and improving profitability through facility closures and cost reduction measures [7][8] - The company is actively pursuing M&A opportunities within the fire suit rental, decontamination, and services business [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff uncertainties and emphasized a focus on operational efficiency and customer relationships [9][10] - The company adjusted its fiscal year 2026 outlook for adjusted EBITDA to the range of $20 to $24 million, expecting revenue near the lower end of $210 to $220 million [29][30] - Management anticipates steady expansion in EBITDA margins over the next three to five years, driven by improved efficiencies and disciplined pricing [30] Other Important Information - The company reported an increase in institutional holdings by 447,000 shares, or 6.2%, to 7,622,035 shares [8] - The recent sale of the Decatur facility for $6.1 million is expected to strengthen the balance sheet and support the M&A pipeline [7][24] Q&A Session Summary Question: Full-year guidance and back half implied numbers - Management indicated that the current EBITDA run rate may not be sustainable due to challenges in Latin America but expects growth in the U.S. and Europe [34][36] Question: Expectations for full-year organic growth - Management anticipates mid-teens organic growth, depending on the timing of fire service RFPs and large orders [38][39] Question: Update on M&A targets - Management is in discussions for several imminent deals, focusing on service-related acquisitions [40][41] Question: Gross profit margin and tariff impacts - Management noted that tariffs impacted margins by about 1.2 points and expects improvements in gross margin in the coming quarters [46][48] Question: Inventory levels and comfort - Management acknowledged high inventory levels and plans to optimize them over the next six months [49][52] Question: Changes in buying in Latin America - Management is starting to see movement in Latin America, with expectations for a substantial catch-up in the second half of the year [54][56] Question: Normalization of client perspective on tariffs - Management feels more comfortable navigating the uncertain environment and is optimistic about future operations [60][62]

Financial Data and Key Metrics Changes - The company achieved over €500,000,000 in adjusted EBITDA over the last twelve months, with adjusted EBITDA growth of 4% to €133,000,000 and an adjusted EBITDA margin expansion of 70 basis points year over year to reach 21% [4][10][22] - Revenue for the quarter was up 1% year over year, reaching $631,000,000, which was above guidance midpoint [10][20] - Free cash flow generated in the quarter was $27,000,000, although it declined year over year due to one-time elements from the previous year [22] Business Line Data and Key Metrics Changes - Total transaction volume increased by 1% on a workday adjusted basis, with total transaction value (TTV) growing 3% to $7,900,000,000 [9][10] - The company reported a high customer retention rate of 95% over the last twelve months, with total new wins value reaching €3,200,000,000, including €2,200,000,000 from SME customers [5][10] Market Data and Key Metrics Changes - Transaction growth in The Americas reached 2% in May and June, while EMEA transactions improved dramatically to 3% during the same period [13] - Air transactions stabilized in May and June after a decline in April, with hotel transactions showing a 4% growth in May and June, outpacing air transactions [11][12] Company Strategy and Development Direction - The company is focused on efficiency gains and driving operating leverage, with a strong emphasis on increasing hotel revenues and digital transactions [12][21] - The pending acquisition of CWT is expected to create significant value, with anticipated net synergies of approximately $155,000,000 over three years [8][39] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty impacted demand in April but improved in May and June, leading to confidence in the demand environment moving forward [10][11] - The company raised and narrowed its full-year 2025 guidance, expecting revenue growth of 2% to 4% year over year, with a midpoint of $2,488,000,000 [25][26] Other Important Information - The company has nearly $1,000,000,000 in available liquidity and plans to initiate a stock repurchase program under a previously announced $300,000,000 authorization [7][29] - The acquisition of CWT is valued at $540,000,000 on a cash-free, debt-free basis, with a portion of the consideration funded through cash on hand [9][28] Q&A Session Summary Question: Will ongoing share gains continue in the second half of the year? - Management confirmed that continued share gains are expected in the second half, driven by increased sales and marketing investments to accelerate net new wins [33] Question: Do you have visibility into CWT's 2025 performance? - Management stated that detailed information about CWT's financial performance will be available post-close, with an update expected during the Q3 results announcement [37] Question: What drove the deceleration in APAC? - The deceleration in APAC was primarily driven by Australia, influenced by the timing of tariffs and the mining vertical [42] Question: Are the declines in April recoverable? - Management indicated that the declines in April were due to macroeconomic uncertainty and not necessarily recoverable, as companies became more confident in planning in May and June [45]