Financial Data and Key Metrics Changes - Revenue increased 11% to a record $286 million in Q4 2025, driven by acquisitions and aftermarket parts business [7][13] - Adjusted EBITDA rose 11% to $58 million, with an adjusted EBITDA margin of 20.3% [7][19] - For the full year, revenue was $1.052 billion, slightly down from $1.053 billion in 2024, with adjusted EPS decreasing to $9.26 from $10.28 [8][17] Business Line Data and Key Metrics Changes - Flow control segment revenue increased 5% to $100 million, with aftermarket parts making up 73% of total revenue [9] - Industrial processing segment revenue rose 16% to $118 million, with aftermarket parts revenue growing 31% [10] - Material handling segment revenue increased 11% to $69 million, with aftermarket parts comprising 53% of total revenue [11] Market Data and Key Metrics Changes - Bookings increased 12% year-over-year, indicating solid demand across all segments [7] - The flow control segment experienced weaker performance in Europe, while North America showed strong results [9] - Capital project activity remained soft, but there are expectations for improvement in 2026 [10][12] Company Strategy and Development Direction - The company aims to leverage its strong cash flow and healthy balance sheet to pursue new opportunities [12] - Focus on aftermarket parts and consumables is expected to drive growth, with a cautious outlook on capital equipment orders [28][29] - The company plans to add back recurring intangible amortization expense in adjusted EPS calculations to provide more consistent comparisons [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are beginning to stabilize their operations and are expected to increase capital projects in 2026 [42][43] - There is a cautious optimism regarding the timing of capital orders due to ongoing economic and geopolitical uncertainties [61][62] - The company anticipates gross margins for 2026 to be approximately 45.2%-45.7% [29] Other Important Information - The company completed significant acquisitions in 2025, including Clyde Industries, which is expected to contribute positively in the future [10][12] - The company has a backlog of $288 million, with 60% in capital and 40% in parts [48] - The anticipated acquisition of voestalpine BÖHLER Profil GmbH for approximately EUR 157 million is expected to close in Q1 2026 [25][26] Q&A Session Summary Question: Current assets and liabilities at year-end - Current assets are $542 million, and current liabilities are $228 million [36] Question: Demand for consumable products and capital projects outlook - Customers are running equipment harder, leading to increased demand for consumables, with expectations for capital projects to improve in 2026 [40] Question: Backlog figure and organic assumptions for 2026 guidance - The backlog is $288 million, with organic growth modeled at less than 1%-3% [48][49] Question: Uniqueness of proposal timelines for capital orders - Proposals have been outstanding longer than usual due to geopolitical uncertainties, but projects are still moving forward [58][60] Question: Competition in the aftermarket segment - Competitors primarily compete on price, but the company maintains strong customer relationships and service quality [78][80] Question: Data center construction impact on business - Data center construction is booming, driving demand for materials processed by the company's equipment [86]