Financial Data and Key Metrics Changes - Total sales for 2025 grew 6% year-over-year to $5.5 billion, marking an all-time high [8] - Adjusted earnings per share (EPS) was $3.90, up 10% year-over-year, indicating the second consecutive year of double-digit EPS growth [8] - Free cash flow exceeded $1 billion, strengthening the company's financial position [9] - In Q4, total sales grew 3.8% year-over-year to nearly $1.4 billion, with core sales growing 1.6% [22] Business Line Data and Key Metrics Changes - Water Quality segment delivered $846 million in total sales, up 4.3% year-over-year, with core sales growth of 1.4% [24] - PQI segment total sales grew 3% year-over-year to $550 million, with core sales growth of 1.8% [25] - Both segments experienced steady underlying demand, with price increases contributing to sales growth [22][24] Market Data and Key Metrics Changes - Core sales in North America grew 5.3%, while Western Europe saw a 3.8% increase [9] - High-growth markets experienced a 5.1% increase in core sales year-over-year, led by Latin America, India, and the Middle East [12] - Core sales growth in China was modest, primarily driven by PQI [12] Company Strategy and Development Direction - The company aims for continued core sales growth and margin expansion, targeting mid- to high-single-digit adjusted EPS growth for 2026 [17][30] - Strategic acquisitions, such as In-Situ, are expected to enhance the company's water analytics portfolio and address freshwater challenges [18][20] - The focus remains on disciplined capital allocation and creating long-term shareholder value through M&A opportunities [29][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in steady demand for products and services due to the essential need for clean water and safe food [7][33] - The company anticipates another year of core sales growth in 2026, supported by a durable business model and strong secular growth drivers [33] - Management noted that underlying demand remains steady across both municipal and industrial markets, with government funding continuing to flow [41] Other Important Information - The company established a $750 million share repurchase program and announced an 18% increase in its dividend [7][29] - The acquisition of In-Situ was completed early in 2026, funded with cash on hand [28] Q&A Session Summary Question: Expectations on municipal CapEx and demand trends - Management sees steady demand across municipal and industrial markets, with strong growth in industrial sectors like data centers and government funding supporting municipal demand [40][41] Question: Impact of DRAM supply and pricing - The company's exposure to DRAM is minimal, and no material impact is expected [42] Question: Margin expansion guidance and cost considerations - Management expects 50 basis points of margin expansion, driven by pricing and the rolling off of tariff-related headwinds [50][52] Question: Data center growth potential - Data center sales are still a small part of the business but are growing double digits; however, they are not expected to be a meaningful contributor to core growth in 2026 [54] Question: PQI performance related to high protein boom - Demand in CPG markets remains stable, with opportunities arising from changes in packaged foods and dietary requirements [61] Question: Geographic performance in Western Europe - The year-over-year performance was impacted by three fewer shipping days, but overall execution was strong [62] Question: EPS growth guidance and market conditions - Management is being prudent with EPS growth guidance due to macro uncertainties, but underlying demand remains solid [70] Question: Integration plans for In-Situ acquisition - The company is excited about top-line synergies and plans to leverage complementary product portfolios to accelerate growth [82]