Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of approximately $34 million, representing a 37% year-over-year increase. Full-year revenue exceeded $99 million, up 43% from 2024, primarily driven by record engine sales approaching 800 units or over 75 megawatts of power [3][18] - The gross margin improved to 17% in Q4, a 30-point increase year-over-year, while the full-year gross margin was positive 5%, up 37 points from 2024 [18] - Total operating expenses for the full year were approximately $109 million, 32% lower than the previous year, with expectations for 2026 operating expenses to range between $65 million and $75 million [19] Business Line Data and Key Metrics Changes - The company secured its largest marine order to date, a 6.4-MW award, and announced a significant commercial agreement with New Flyer for 50 MW, indicating strong growth in the marine and commercial sectors [4][6] - The focus on product cost reduction and operational efficiency has led to a significant reduction in cash operating costs by 41% in Q4 compared to the same period last year [4] Market Data and Key Metrics Changes - The majority of engine shipments were directed towards Europe and North America, with particularly strong activity in Canada, highlighting the geographical focus of the company's market strategy [3] - The company is increasingly targeting stationary and rail markets, with expectations for additional activity in these segments in the coming months [8][12] Company Strategy and Development Direction - The company aims to achieve sustainable positive cash flow within the next two years, supported by a well-managed cost structure and improving gross margins [4][16] - Five near-term focus areas have been identified: improving commercial terms, product cost reductions, enhancing fleet service offerings, expanding product reach, and innovating business models [5][15] - The company is leveraging its installed base to expand recurring revenue through enhanced fleet services, which include long-term service agreements and operational monitoring [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path ahead, emphasizing the importance of customer relationships and the commitment to delivering value [16] - The company is addressing financial and technical barriers to hydrogen adoption through flexible commercial structures and service-based offerings [13][15] - Management noted that the improvements in 2025 reflect the dedication and professionalism of the company's workforce [16] Other Important Information - The company ended the year with nearly $530 million in cash, indicating strong financial stability with no bank debt or near-term financing requirements [20] - The company is advancing Project Forge, which aims to reduce bipolar plate costs by up to 70% at full volume, enhancing competitiveness [9] Q&A Session Summary Question: On the restructuring side, have the large items been harvested? - Management indicated that they do not anticipate any major restructuring in 2026 and that the midpoint of the guidance range is a reasonable expectation for the overall cost structure [24][26] Question: Have these actions altered the R&D roadmap? - Management stated that the focus is on leveraging existing product portfolios and prior investments to maximize value, with a more concentrated approach on extracting value from innovations already realized [28][30] Question: What is the duration of the New Flyer contract? - The contract is for 500 units, with a focus on megawatts and unit volumes rather than duration, emphasizing a long-term partnership [33] Question: How does the FCmove-XD and FCveloCity-HD compare with competing offerings? - Management noted that the configuration and packaging of existing products can address the stationary market, with innovations aimed at increasing performance and reducing costs [34][40] Question: What are the opportunities in the stationary market? - Management highlighted a strong value proposition for fuel cells in the stationary market, particularly in addressing immediate power needs for data centers [39][40]

Core Viewpoint - STEF Group is advancing its sustainability efforts by launching two hydrogen projects in collaboration with Toyota Material Handling Europe and Plug Power, aimed at integrating hydrogen production and fuel cell technology into its logistics operations for temperature-controlled food products [1][6]. Group 1: Hydrogen Projects Overview - The two hydrogen projects are located in Athis-Mons, France, and Torrejón de Ardoz, Spain, focusing on powering forklifts with green hydrogen [2][9]. - In France, green hydrogen is produced using renewable energy and delivered on-site, while in Spain, an electrolyzer generates hydrogen on-site powered by a 2.9 MWp photovoltaic rooftop plant [2][3]. Group 2: Benefits of Hydrogen Technology - Hydrogen fuel cells can enhance forklift operator productivity, offering better performance in temperature ranges from -18° to +4°, and allowing for quick refueling in under 3 minutes [4][5]. - The lifespan of hydrogen fuel cells is approximately 10 years, which is double that of traditional batteries, contributing to reduced environmental impact [5]. Group 3: Strategic Partnerships - Toyota Material Handling Europe will supply STEF with fuel cell-ready forklifts tailored to the specific needs of STEF's operations, enhancing safety and comfort for operators [7]. - Plug Power will provide a comprehensive hydrogen solution, including fuel cells, electrolyzers, and ongoing service, as part of its GenKey ecosystem [10][11]. Group 4: Environmental Commitment - These projects are part of STEF's Moving Green climate initiative, which aims to utilize 100% low-carbon energy in its buildings by the end of 2025 [6].