Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $889 million, representing a year-over-year increase of 6.7% [5][14] - Adjusted EBITDA for the quarter was $116 million, up $6 million from the previous year, with a margin of 13% [6][15] - Adjusted earnings per diluted share increased to $1.18 from $0.71 in the same period last year [7] - Full year revenue was approximately $3.5 billion, a 3% increase, with adjusted EBITDA flat year-over-year at $478 million [16][17] Business Line Data and Key Metrics Changes - Fuel Systems segment sales for Q4 were $560 million, up 7.9%, with an adjusted operating margin of 10.7% [6] - Aftermarket segment sales reached $329 million, up 4.8%, with an adjusted operating margin of 15.8% [7][19] - For the full year, Fuel Systems revenue increased by 3.3%, while Aftermarket sales were up 2.7% [18][19] Market Data and Key Metrics Changes - Sales in Asia and the Americas showed strength, while Europe experienced lower sales within the Fuel Systems segment [14] - The company noted that the Aftermarket segment remained resilient, supported by an aging global vehicle fleet [9] Company Strategy and Development Direction - The company aims to differentiate through product leadership and focus on sustainable growth markets [12][24] - Capital allocation remains disciplined, with a focus on M&A opportunities while returning capital to shareholders [10][11] - The company plans to continue expanding its presence in Off-Highway, Industrial, and Other markets, which now represent 6% of sales [10][19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business amid a complex operating landscape and expressed confidence in long-term growth [3][25] - For 2026, the company expects industry volumes to be flat to slightly down globally, but aims to offset this through market share gains [23][24] Other Important Information - The company reduced its debt by $24 million, resulting in a net leverage ratio decrease from 1.4x to 1.3x [7] - Cash flow from operations for the year was $312 million, with adjusted free cash flow above guidance at $212 million [21][22] Q&A Session Summary Question: Clarification on commercial vehicle guidance in Europe - Management confirmed that the guidance reflects overall industry expectations, with positive signs from customers in the region [28] Question: Inquiry about Adjusted EBITDA margins - Management explained that while revenue growth is expected, margin expansion is limited due to factors like FX and tariffs [30] Question: Details on the new aerospace and defense supply contract - Management indicated that the new contract is with the same customer as previous contracts, showing momentum in other areas as well [31] Question: Volume assumptions for 2026 and competitor behavior - Management noted that while the market may be flat to down, they expect to gain market share and continue growth despite competitors de-emphasizing certain platforms [84][86]