Financial Data and Key Metrics Changes - In Q4 2025, the company reported net sales of $645 million, a 3.5% decrease from $667.7 million in Q4 2024 [5][20] - Adjusted EBITDA for Q4 was $35 million, down from $75 million in the prior year, with an adjusted EBITDA margin of 5.4% [6][24] - Full-year 2025 net sales were $2.7 billion, up 1% year-over-year, driven by contributions from Supreme and pricing improvements [25][26] - Net income for Q4 was a loss of $42 million compared to a profit of $14 million in Q4 2024, resulting in a net income margin of -6.5% [23][27] - Full-year adjusted EBITDA was $298.2 million, down 18% from $363.6 million in 2024, with an adjusted EBITDA margin of 10.9% [28] Business Line Data and Key Metrics Changes - The U.S. single-family new construction market declined high single digits in Q4 and mid-single digits for the full year, with MasterBrand's new construction sales outperforming the broader market [8][9] - In the repair and remodel segment, the U.S. cabinet R&R market declined mid-single digits in both Q4 and the full year, driven by low existing home turnover [9][10] - The Canadian market also faced mid-single-digit declines in both new construction and R&R demand [10] Market Data and Key Metrics Changes - 2025 marked the third consecutive year of market contraction, influenced by elevated interest rates and lower consumer confidence [8] - The company expects continued headwinds in the new construction market into 2026, with demand closely tied to financing conditions and consumer sentiment [9][11] - The anticipated Canadian market conditions for 2026 remain pressured due to similar affordability and turnover dynamics [10] Company Strategy and Development Direction - The company is focused on maintaining financial flexibility through targeted cash management and cost reductions, with $30 million in planned cost reductions for 2026 [12][34] - MasterBrand aims to capture synergies from the Supreme integration and the pending American Woodmark transaction, expecting approximately $90 million in run-rate cost synergies post-close [17][29] - The company is implementing a coordinated mitigation strategy to manage tariff impacts, including sourcing flexibility and operational adjustments [15][32] Management Comments on Operating Environment and Future Outlook - Management noted ongoing demand pressure and a complex trade backdrop, with expectations for a transitional year in 2026 as market trends persist [5][40] - The company anticipates a modest recovery in 2027, supported by improving affordability and easing financing conditions [12][42] - Management emphasized the importance of disciplined execution and cash generation to navigate the current environment [41][36] Other Important Information - The company ended 2025 with $183.3 million in cash and $441.9 million in liquidity available under its revolving credit facility [29][30] - Tariffs continue to pressure costs, with a 25% tariff on cabinets and related products expected to remain in place throughout 2026 [14][31] - The company expects to fully offset tariff costs on a run-rate basis by the end of 2026 through mitigation initiatives [37][38] Q&A Session Summary Question: Can you break down the full-year market outlook by end channel? - Management indicated that both the builder and R&R markets are expected to decline mid-single digits, with uncertainty around the spring season influencing guidance [46] Question: What drove the sequential deceleration in price realization? - Management attributed the deceleration to a mix shift towards lower price point products and the timing of price adjustments to mitigate tariffs [47][48] Question: Can you provide more detail on the residential construction weakness? - Management noted a significant drop-off in late November, similar to the prior year, impacting overall volume and factory efficiency [52] Question: What are the details on the $30 million in expected savings for 2026? - Management clarified that the $30 million represents annualized savings expected throughout the year, primarily from structural cost adjustments [53] Question: How confident is the company in offsetting tariff costs? - Management expressed confidence in their long-term strategy to cover tariff costs, though timing remains uncertain due to the dynamic pricing environment [54][55]

Core Insights - Bob's Discount Furniture is adopting a low-pressure sales model to attract customers and differentiate itself from traditional retailers [1][2] - The company has reported significant financial growth, with a 20% increase in net revenue to $1.72 billion and a nearly 64% rise in net income to $81 million in the first nine months of fiscal 2025 [3] - Bob's has developed a robust supply chain strategy that includes a 100% private-label model, geographic mobility in production, and strategic price increases [4][5] Financial Performance - In the first nine months of fiscal 2025, Bob's net revenue increased by 20% year over year to $1.72 billion [3] - The company's net income surged nearly 64% to $81 million during the same period [3] Supply Chain Strategy - Bob's utilizes a 100% private-label model to negotiate cost concessions from suppliers, maintaining total control over its supply chain [4] - The company has shifted production primarily to Vietnam and the US since moving out of China in 2018, allowing for geographic mobility to offset costs [5] - Price increases are considered a last resort, implemented only after leveraging the first two strategies [5] Customer Demographics - A significant portion of Bob's customer base, 46%, earns over $100,000, with new customers earning over $150,000 growing by nearly 25% year over year [7] - This affluent demographic positions Bob's as a defensive play during inflationary periods [7]

Core Insights - The company reported full-year revenues of $15.1 billion, with notable growth in DEWALT and aerospace fasteners, which increased by low single digits and 25% respectively, despite an overall organic revenue decline of about 1% [1] - The adjusted gross margin improved by 70 basis points to 30.7% for the full year 2025, driven by tariff mitigation actions and supply chain efficiencies [5][21] - The company generated strong free cash flow of nearly $700 million in 2025, which supported dividends, debt reduction, and investments in brand and innovation [7][24] Financial Performance - Adjusted earnings per share grew by 7% in 2025, reaching $4.67, while adjusted EBITDA increased by 5% [6][11] - The fourth quarter saw a revenue decline of 1% overall and 3% organically, with a 4% price increase and a 2% currency tailwind offset by a 7% volume decline [9][10] - The adjusted gross margin rate for the fourth quarter was 33.3%, reflecting strong supply chain cost reductions and pricing strategies [10][21] Strategic Initiatives - The company completed a global cost reduction program, achieving $2.1 billion in run rate pretax cost savings since mid-2022 [5][22] - A definitive agreement was announced to sell the aerospace fasteners business for over $1.5 billion, with proceeds aimed at debt reduction and enhancing capital allocation flexibility [7][8][25] - The company plans to invest an additional $75 million to $100 million in brand initiatives for Stanley and Craftsman in 2026, alongside maintaining a strong dividend [76][79] Market Outlook - For 2026, the company anticipates adjusted earnings per share to range from $4.90 to $5.70, representing a midpoint growth of 13% [28] - Total company revenue is expected to grow in the low single digits year over year, with organic revenue growth anticipated to follow a similar trend [30] - The transition to a licensed model for gas-powered walk-behind outdoor products is expected to reduce revenue by approximately $120 million to $140 million in 2026, but enhance margins [31][32] Operational Focus - The company aims for adjusted gross margins above 35% by 2026, supported by ongoing tariff mitigation efforts and operational improvements [23][33] - The first quarter of 2026 is projected to reflect the highest level of tariff expense, impacting gross margins, but improvements are expected in the second half of the year [38] - The company is committed to maintaining a solid investment-grade credit rating while focusing on organic growth and shareholder value creation [26][40]

Financial Data and Key Metrics Changes - Full-year revenues for 2025 were $15.1 billion, down about 1% organically compared to the previous year [4] - Adjusted Gross Margin expanded by 70 basis points to 30.7% for the full year 2025 [5] - Adjusted EBITDA grew by 5%, with an Adjusted EBITDA margin improvement of 70 basis points [7] - Adjusted Earnings Per Share increased by 7% to $4.67 [7] - Free Cash Flow for 2025 was nearly $700 million, supporting dividends and debt reduction [7] Business Line Data and Key Metrics Changes - Tools and Outdoor segment revenue was approximately $3.2 billion in Q4, down 2% year-over-year, with organic revenue down 4% [9][10] - Engineered Fastening segment revenue grew 6% on a reported basis and 8% organically in Q4, with a 35% organic growth in the aerospace business [15][16] - DEWALT achieved low single-digit organic growth for the full year, overcoming broader market headwinds [14] Market Data and Key Metrics Changes - North America organic revenue declined 5%, while Europe and the rest of the world saw declines of 3% and 4%, respectively [12][13] - The overall market conditions were described as soft, particularly affecting retail channels in North America [10][11] Company Strategy and Development Direction - The company is focused on disciplined execution and targeted growth investments, particularly in DEWALT and Aerospace Fasteners [4] - A definitive agreement was announced to sell the Aerospace Fasteners business for over $1.5 billion, aimed at reducing debt and enhancing capital allocation flexibility [8][21] - The company plans to maintain a strong investment-grade credit rating while focusing on organic growth investments [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term performance despite macroeconomic uncertainties and tariff headwinds [5][6] - For 2026, adjusted earnings per share are expected to be in the range of $4.90-$5.70, reflecting growth initiatives and market conditions [24] - The company anticipates low single-digit revenue growth for 2026, with a focus on market share gains [25][30] Other Important Information - The global cost reduction program has achieved $2.1 billion in pre-tax cost savings since mid-2022 [6][19] - The company expects to transition gas-powered outdoor product lines to a licensing model, impacting revenue but enhancing margins [26][28] Q&A Session Summary Question: Inquiry about gross and operating margin performance cadence - Management expects gross margin to be around 30.5% in Q1, increasing to 34%-35% in the second half of 2026, affected by peak tariff expenses [39][40] Question: Clarification on tariff mitigation measures - Management confirmed ongoing tariff mitigation efforts, including reducing reliance on imports from China and increasing USMCA qualified products [47][49] Question: Discussion on volume expectations and share gains - Management indicated that volume is expected to improve in 2026, driven by strong professional market performance and adjustments in promotional strategies [60][61] Question: Elasticity of pricing and volume dynamics - Management acknowledged that volume declines have been steeper than anticipated due to market softness, but expects adjustments to restore a more favorable pricing-volume relationship [62][64] Question: Plans for investment in CRAFTSMAN and Stanley brands - The company plans to invest an additional $75 million-$100 million in brand initiatives for CRAFTSMAN and Stanley in 2026, anticipating sales inflections [69][70]

Financial Data and Key Metrics Changes - For Q2 FY 2026, total revenue was $96.3 million, down from $113.9 million in the same period of FY 2025, primarily due to reduced demand from a longstanding customer and the transition of an End-of-Life program [3][4] - The net loss for Q2 FY 2026 was $8.6 million or $0.79 per share, compared to a net loss of $4.9 million or $0.46 per share in Q2 FY 2025 [7] - Adjusted gross margin for Q2 FY 2026 was 7.9%, down from 6.8% in the same period of FY 2025, while operating margin was -10.7% compared to -1.0% [5][6] Business Line Data and Key Metrics Changes - The company initiated a wind down of manufacturing operations in China, which is expected to save approximately $1.2 million per quarter once completed [5] - The company is also reducing its workforce in Mexico, aiming for savings of approximately $1.5 million per quarter [5] - The consigned materials program is ramping up, with potential revenue growth of over $25 million annually, equivalent to a $100 million turnkey program [16] Market Data and Key Metrics Changes - Inventory decreased by $12.3 million or 12% year-over-year, while accounts receivable days sales outstanding (DSOs) improved to 77 days from 99 days a year ago [8] - The company continues to face uncertainties in the global economy and volatile trade policies, impacting customer demand [4][9] Company Strategy and Development Direction - The company is focusing on nearshoring and tariff mitigation strategies to reduce costs while maintaining operational flexibility [4] - Manufacturing operations are being shifted from China to Vietnam and the U.S. to better align with strategic initiatives and customer demand [12][15] - The company anticipates that by the end of FY 2026, approximately half of its manufacturing will occur in the U.S. and Vietnam [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are uncertainties in the global economy, new programs are gradually ramping up, and cost efficiencies from recent overhead reductions are taking hold [9][10] - The company is not providing forward-looking guidance for Q3 FY 2026 due to the uncertainty of new product ramps [10] - Management expressed confidence in the potential for profitable long-term growth despite current challenges [19] Other Important Information - The company has reduced its total debt year-over-year by approximately $13.4 million, reflecting its ability to generate cash from operations [8] - Capital expenditures for FY 2026 are expected to be around $8-$10 million, focusing on new production equipment and automation [9] Q&A Session Summary Question: Can you provide more details on the increased demand from existing customers? - Management indicated that the increased demand is primarily from two longstanding customers, with a significant revenue impact from product maturation and an End-of-Life program [23][24] Question: What is the size and timing of the new programs won? - The automotive program is expected to generate up to $5 million and will be manufactured in Mexico, while pest control and industrial equipment programs are expected to generate $2-$5 million and will be produced in the U.S. [25] Question: What are the tariff mitigation strategies being implemented? - The company is focusing on lower-cost production facilities in Vietnam and Mexico, leveraging the USMCA agreement to mitigate tariffs [26][28] Question: What is the outlook for gross margin and revenue growth? - Management expects to achieve breakeven by the end of the fiscal year, with anticipated revenue growth and margin expansion from the consigned program [40][41] Question: How is the restructuring in Mexico expected to impact future growth? - Management believes that recent efficiency improvements and automation investments will make the Mexico facility more competitive, with expectations for growth moving forward [44][45]

Core Insights - Key Tronic Corporation reported a decline in total revenue for the second quarter of fiscal year 2026, amounting to $96.3 million, down from $113.9 million in the same period of fiscal year 2025, primarily due to reduced demand from a longstanding customer and delays in new program launches [2][3] - The company is implementing significant cost reduction initiatives, including the wind-down of its manufacturing operations in China and workforce reductions in Mexico, which are expected to yield approximately $1.2 million and $1.5 million in quarterly savings, respectively [3][4] - Despite the challenges, Key Tronic generated positive cash flow from operations of approximately $6.3 million in the second quarter of fiscal year 2026, compared to $1.5 million in the same period of fiscal year 2025, allowing for a year-over-year debt reduction of approximately $13.4 million [5] Financial Performance - The gross margin for the second quarter of fiscal year 2026 was reported at 0.6%, with an operating margin of (10.7)%, compared to 6.8% and (1.0)% in the same period of fiscal year 2025; however, the adjusted gross margin improved to 7.9% from 6.8% year-over-year [6] - The net loss for the second quarter was $(8.6) million or $(0.79) per share, compared to a net loss of $(4.9) million or $(0.46) per share in the same period of fiscal year 2025 [7] - Adjusted net income for the second quarter was reported at $0.0 million or $0.00 per share, an improvement from an adjusted net loss of $(4.1) million or $(0.38) per share in the same period of fiscal year 2025 [8] Strategic Initiatives - Key Tronic is focusing on near-shoring and tariff mitigation strategies to enhance operational efficiency and reduce costs while maintaining flexibility in its manufacturing capabilities [3][10] - The company has reduced its workforce in Mexico by approximately 40% over the past 18 months and is transitioning production to its facilities in the US and Vietnam, with expectations that half of its manufacturing will occur in these locations by the end of fiscal 2026 [10] - New program wins in sectors such as automotive technology, pest control, and industrial equipment have been achieved, although demand from some longstanding customers remains uncertain due to geopolitical tensions and tariff issues [10][11]

Core Insights - Church & Dwight executives expressed optimism regarding the company's performance in 2025 and outlined strategic priorities for 2026, highlighting portfolio reshaping and growth in key brands despite a challenging market environment [3][6][24] Financial Performance - Q4 2025 sales increased by 3.9%, with organic growth at 0.7% and EPS of $0.86, reflecting a 12% year-over-year increase; full-year sales reached $6.2 billion with cash from operations at $1.2 billion [5][8] - For 2026, management anticipates organic sales growth of 3-4%, a gross margin improvement of approximately 100 basis points, and EPS growth of 5-8% [17][11] Strategic Initiatives - The company reduced its weighted-average private-label exposure from about 12% to 5% and maintained a leverage level of approximately 1.5x, supporting future acquisitions [1][6] - Key strategic priorities include scaling core brands like Arm & Hammer, TheraBreath, and Hero, expanding e-commerce from 2% to 24% of sales, and mitigating tariff exposure, which decreased from $190 million to around $25 million [4][9] Brand Performance - Hero and TheraBreath achieved double-digit growth in 2025, with Hero growing three times faster than its category and reaching a record 19% market share [2][16] - Arm & Hammer gained market share in laundry detergent and cat litter, reaching a record 14.5% and gaining 20 basis points in both categories [14][13] - TheraBreath became the second-largest mouthwash brand with a share just under 22%, with plans for distribution expansion and a new toothpaste launch [15][13] International and Digital Growth - International revenue was approximately $1.01 billion, with 5.5% organic growth in 2025; the company aims to expand Hero to over 100 countries by the end of 2026 [23][20] - E-commerce sales have significantly increased, now accounting for 24% of total sales, with ongoing digital growth initiatives including the use of AI tools for content creation [22][20]

Core Insights - McCormick has faced challenges from tariffs since April 2025, impacting costs significantly [3][4] - The company managed to reduce tariff impacts from $70 million to $20 million through cost-cutting, alternative sourcing, and price increases [4] - McCormick anticipates a similar mid-single-digit inflation rate for the current year due to tariffs and commodity costs [4] Tariff Impact and Mitigation Strategies - The incremental gross tariff impact for McCormick is expected to be around $50 million in 2026, with plans to mitigate this through productivity savings, alternative sourcing, and revenue management strategies [8] - The company has already adjusted its supply chain efforts to align with new tariff rates, which may limit immediate benefits from reduced tariffs [5] - Other companies in the industry, such as J.M. Smucker and Monster Beverage, are also managing tariff-related costs through various strategies [6]

Financial Data and Key Metrics Changes - Brunswick finished 2025 with net sales of $5.4 billion, up 2% year-over-year, marking the first full-year net sales growth in three years [4][15] - Adjusted earnings per share (EPS) for the year was $3.27, impacted by tariff headwinds, with free cash flow generation reaching $442 million, up 56% year-over-year [4][17] - The company reported a 41% increase in Q4 earnings compared to the prior year, driven by higher sales and operational improvements [15] Business Line Data and Key Metrics Changes - The propulsion segment saw a 23% increase in sales, with double-digit growth across all product categories, driven by strong OEM orders [17][19] - The aftermarket parts and accessories (P&A) business grew sales by 15% in Q4, marking the third consecutive quarter of growth [19] - The boat segment reported an 11% sales increase, with growth across premium, core, and value categories [22] Market Data and Key Metrics Changes - The U.S. retail boat market finished 2025 down approximately 9% in units, while Brunswick's global retail unit sales were down only 5% [3][10] - Dealer inventories remained low, with a high percentage of recent model year products, supporting a favorable retail environment [4][10] - Brunswick's market share in the U.S. outboard segment remained stable at approximately 47%, with gains in higher horsepower engines [11] Company Strategy and Development Direction - Brunswick plans to continue driving operational efficiencies and is encouraged by the strong reception of new products, with a focus on ultra-high horsepower engines [23][89] - The company aims for revenue growth in 2026, projecting net sales between $5.6 billion and $5.8 billion, with adjusted operating margins between 7.5% and 8% [24] - Brunswick's strategy includes significant investments in new product development and technology, alongside returning capital to shareholders [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improved market conditions for 2026, supported by falling interest rates and strong retail demand [5][8] - The company anticipates a flat to slightly up U.S. retail boat market, with expectations for wholesale sales to closely match retail [23][24] - Management noted that tariff mitigation actions successfully offset over half of the gross dollar exposure, with expectations of further incremental tariff costs in 2026 [9][28] Other Important Information - Brunswick's liquidity at year-end was $1.3 billion, including access to an undrawn revolving credit facility [13] - The company plans to retire approximately $160 million of debt in 2026, contributing to a net debt leverage target of 2.5x or lower [29] - Brunswick received multiple awards for its products and innovations at recent trade shows, highlighting its commitment to quality and technology [31][35] Q&A Session Summary Question: What was the retail performance in the fourth quarter? - Management indicated that retail performance was flat, with continued strength in premium and core brands, which represent a significant portion of their portfolio [41] Question: What gives confidence for flat to up retail in 2026? - Management cited expected interest rate cuts and improving retail financing conditions as key factors supporting their outlook for 2026 [43][44] Question: How should we think about inventory levels for 2026? - Management expects pipeline units to be flat to slightly reduced, aiming to match wholesale and retail [46][48] Question: How is the company addressing competitive inventory levels? - Management noted solid ordering and a healthy pipeline, indicating no evidence of dealers holding back on orders [49] Question: What are the dynamics affecting retail sales and replacement rates? - Management highlighted a significant gap between new boat sales and replacement rates, suggesting a natural pull for retail sales [53] Question: How is the propulsion business performing with OEM customers? - Management reported strong performance and share gains in the propulsion segment, with new multi-year agreements with OEMs [61][62]

Fourth Quarter & Full Year 2025 Earnings Presentation January 27, 2026 The data source for retail sales figures included in this presentation is registration information provided by Polaris dealers in North America and Europe compiled by the Company or Company estimates and other industry data sources. The Company relies on information that its dealers or other third parties supply concerning retail sales, and other retail sales data sources related to Polaris and the powersports industry, and this informat ...