Core Insights - The company reported a decline in manufacturing margin to 6.6% in the fourth quarter, down from 8.9% a year earlier, attributed to launch costs and early-stage inefficiencies, but would have been approximately 9% excluding these items [1][6][8] - Fourth-quarter sales increased by 10.7% year over year to $134.3 million, but organic net sales fell by 5.3% when excluding the Accu-Fab acquisition [2][6] - The company is in a transitional phase with muted demand in legacy markets and increasing activity in data center and critical power sectors, leading to near-term margin pressure [4][7] Financial Performance - Fourth-quarter adjusted EBITDA margin fell to 4.7% from 7.6% in the prior year, primarily due to launch costs and inefficiencies, with an adjusted EBITDA margin of approximately 7% if those items were excluded [6][8] - Free cash flow for the fourth quarter was $10.2 million, down from $35.6 million a year earlier, with net debt at $205.3 million and net leverage of 3.7x as of December 31 [15][20] Market Trends - Demand in legacy markets is described as "muted," while there is sustained momentum in data center and critical power sectors, with expectations for these markets to exceed 20% of revenue in 2026 [9][10] - The company has a qualified opportunity pipeline in data center and critical power exceeding $125 million, with $40 million to $50 million in projects expected to launch in 2026 [10][11] Guidance and Future Outlook - The company provided guidance for Q1 2026 net sales of $137–$143 million and full-year net sales of $580–$620 million, with adjusted EBITDA of $50–$60 million [5][18] - Management expects $2 million to $3 million in cost improvements in 2026 and aims for net leverage to be 3x or lower by year-end [20][21]