I think we're probably looking at AGI 2030 around the time uh that we're going to be releasing like maybe AR 6 or AR 7. You're not going to stop uh AI progress. I think I think it's too late for that.And so the next question is okay like AI progress is here. Uh it's actually going to keep accelerating. How do you make use of it. How do you leverage. How do you ride the wave.That's the question to ask. Today we're lucky to be joined by France Chole, founder of the ARK Prize, a global competition to solve the ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 11% year-over-year, while adjusted earnings per share rose by 24% compared to the prior year [4] - Fourth quarter net sales reached $468 million, a 6% increase from the prior year, with total company share gains of approximately 4% [18] - Gross profit increased by 6% year-over-year, with gross margin percentage remaining flat at 35.3% [5][18] Business Line Data and Key Metrics Changes - Asia Pacific segment saw a 15% increase in sales year-over-year, with organic volume growth of 4% [21] - EMEA segment net sales increased by 7% year-over-year, despite a 2% decline in organic sales volumes [22] - Americas segment net sales were flat year-over-year, with net share gains offset by lower organic sales volumes [23] Market Data and Key Metrics Changes - Market conditions in the Americas and EMEA remained soft, influenced by tariffs and customer outages [4][8] - Asia Pacific demonstrated strong organic volume growth, marking the 10th consecutive quarter of year-over-year growth [21] Company Strategy and Development Direction - The company is focused on streamlining global business processes and enhancing its manufacturing network [10] - Strategic acquisitions remain a core part of the capital allocation strategy, with three acquisitions completed in 2025 adding approximately $95 million in annualized revenue [11][10] - The company plans to open a new manufacturing facility in China to support growth in emerging markets [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating continued share gains and organic growth across all segments [15] - The underlying markets are expected to remain flat in 2026, with potential for incremental growth in the second half of the year [14] - Management highlighted the importance of cost-saving initiatives and operational improvements to achieve long-term EBITDA margin targets above 18% [16][79] Other Important Information - The company generated $47 million in operating cash flow in the fourth quarter, down from $63 million in the prior year [6] - Capital expenditures for the full year were approximately $56 million, reflecting an increase due to the construction of the new facility in China [26] - The company returned $76 million to shareholders through dividends and share repurchases in 2025 [27] Q&A Session Summary Question: Can you quantify the weather-related operational issues that impacted Q4? - Management indicated that operational issues in December set back volumes by approximately 1%, but these have been resolved [34] Question: What are the expectations for pricing and raw material costs? - Raw material costs are stabilizing, and pricing in Asia is not expected to increase significantly [38] Question: What is the outlook for EBITDA growth in 2026? - Management does not provide specific guidance but expects to achieve mid-single-digit revenue growth and high single-digit EBITDA growth [40][42] Question: Can you characterize the M&A pipeline? - The M&A pipeline remains healthy, with a focus on bolt-on transactions that expand the total addressable market [46] Question: Which markets are expected to be down in the first half of the year? - Management noted sluggish conditions in the Americas and EMEA, with no broad-based recovery expected [53] Question: What is the impact of non-repeating items on 2026? - Management believes that Q4 volumes would have been flat without the weather-related issues and customer outages [74] Question: Will margins improve in 2026? - Management confirmed that while volume growth will help, there are also self-help initiatives in place to drive margin improvements [79]