Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of $1.405 billion, representing a 7% increase year-over-year, and full-year revenue of $5.101 billion, up 5% [13][22] - Adjusted EBITDA for Q4 was $330 million, a 27% increase year-over-year, with an adjusted EBITDA margin of 23.5%, the highest since the company's IPO [12][20] - The full-year adjusted EBITDA was $891 million, reflecting a strong operating leverage and financial discipline [20][23] Business Line Data and Key Metrics Changes - Vision Care segment revenue for Q4 was $778 million, up 5%, with full-year revenue of $2.923 billion, up 6% [15] - Surgical segment revenue in Q4 was $249 million, a 3% increase, with full-year revenue of $894 million, up 4% [17] - Pharma segment revenue for Q4 was $378 million, a 14% increase, with full-year revenue of $1.284 billion, up 6% [18] Market Data and Key Metrics Changes - The U.S. branded RX business in the pharma segment grew by 21% in Q4 and 13% for the full year, driven by strong performance from MIEBO [18] - Contact lens revenue grew by 8% in Q4 and 7% for the full year, with daily SiHy lenses showing significant growth [16] - The international market for contact lenses grew by 6% in Q4, with China seeing a 7% increase [16] Company Strategy and Development Direction - The company is focused on executing its three-year plan, emphasizing operational excellence and financial discipline to drive sustained growth [5][6] - There is a strong commitment to expanding the dry eye portfolio, with MIEBO expected to exceed peak sales of $600 million due to its successful market penetration [26][27] - The company aims to leverage its diversified product offerings to maintain a competitive advantage in the eye health market [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow faster than the market in 2026, with expectations for revenue growth across all segments [22][23] - The company highlighted the importance of execution and operational improvements as key drivers of future success [36][38] - Management acknowledged the competitive landscape but remains optimistic about the company's positioning and product quality [53][56] Other Important Information - The company expects adjusted EBITDA growth of approximately 15% year-over-year for 2026, with a focus on margin expansion [23][24] - The adjusted tax rate for the full year 2025 was 10%, lower than previous guidance, primarily due to one-time adjustments [21] Q&A Session Summary Question: What are the key areas to execute for growth in 2026? - Management emphasized the importance of execution and structural improvements in the P&L, highlighting the successful implementation of Vision 2027 [36][38] Question: What lessons can be learned from MIEBO's success? - Management noted that strong execution and a positive benefit-risk profile contributed to MIEBO's success, which will inform future pipeline strategies [40][41] Question: How will MIEBO's growth trajectory be impacted by steady investments? - Management expects continued strong growth for MIEBO, with a focus on targeted investments as the product transitions from launch to growth phase [48][51] Question: What are the competitive dynamics in the market? - Management acknowledged competition but expressed confidence in their strong market position, particularly in the pharma segment with leading products [53][56]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $194.1 million, a 1.7% increase from $190.8 million in Q1 2024, marking the sixteenth consecutive quarter of year-over-year revenue growth [9][25] - Gross margin increased to 26.6%, up 200 basis points from 24.6% year-over-year, achieving a new quarterly record [13][26] - Adjusted EBITDA reached 15.9%, a record as a percentage of sales, up from 14.4% in the prior year [14][31] - GAAP diluted EPS was $0.69, compared to $0.46 in Q1 2024, while adjusted diluted EPS was $0.83, up from $0.70 [14][31] Business Line Data and Key Metrics Changes - Military and space revenue grew by 15% year-over-year to $114 million, driven by missile and electronic warfare programs [10][21] - Commercial aerospace revenue declined by 10% to $72 million, marking the first decline in 15 quarters, primarily due to lower demand for the 737 MAX [11][22] - Industrial business revenue decreased to $9 million as the company continues to prune non-core operations [23] Market Data and Key Metrics Changes - The defense backlog increased by over $15 million year-over-year to $620 million, representing 59% of the total backlog [15][21] - The commercial aerospace backlog decreased by $31 million to $411 million due to lower OEM production rates [16][22] - The company expects a recovery in commercial aerospace as production rates ramp up in 2025 [22] Company Strategy and Development Direction - The company is executing its Vision 2027 strategy, aiming to increase the revenue percentage from engineered products, which accounted for 23% in 2024, up from 19% in 2023 [9][17] - The strategy includes targeted acquisitions, consolidation of manufacturing operations, and expansion in high-growth segments of the defense budget [9][10] - The company is focused on maintaining a strong mix of defense and commercial aerospace to mitigate risks associated with market cyclicality [10][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in commercial aerospace and continued strength in defense, reaffirming guidance for mid-single-digit revenue growth for 2025 [18][70] - The company does not anticipate significant impacts from tariffs on its revenues, as 95% of its revenue is generated in the U.S. [19][29] - Management highlighted the importance of maintaining operational efficiency and strong relationships with key customers like Boeing and Spirit [83][84] Other Important Information - The company has ceased operations in two facilities, expecting to realize cost savings as production ramps up in other locations [13][36] - Cash flow from operating activities improved to $800,000 in Q1 2025, compared to a use of $1.6 million in Q1 2024 [38] - The company is actively pursuing M&A opportunities, focusing on niche engineered product businesses that span both defense and commercial aerospace [54][56] Q&A Session Summary Question: How would you characterize any delay in ship set rates to Boeing and Spirit? - Management noted that Boeing is producing in the low twenties and Spirit is ramping up to the mid to high twenties, with expectations for continued growth despite destocking impacts [43][45] Question: Are you tracking towards your M&A placeholder for Vision 2027? - Management confirmed they are tracking multiple opportunities and remain confident in completing a deal this year [54][56] Question: What are your expectations for growth rates between commercial aerospace and defense for the remainder of the year? - Management expects continued strength in defense and a recovery in commercial aerospace, aiming for mid-single-digit growth overall [68][70]