Financial Data and Key Metrics Changes - The company generated $498 million in revenue for fiscal year 2025, a 1% increase year-over-year despite a 37% decline in large capital projects [10] - Adjusted EBITDA margin for fiscal year 2025 was 22%, up 86 basis points from the previous year, reflecting a more favorable revenue mix and productivity gains [10] - Free cash flow for the year was $53 million, with a gross margin expansion of 196 basis points [11][28] Business Line Data and Key Metrics Changes - Organic growth of 3% was achieved in the fourth quarter, marking the first growth in over a year, driven by improved order trends in various verticals, particularly in the LNG market [7][10] - OpEx revenues for the fourth quarter were $111.8 million, a 7% increase compared to the previous year, representing 83% of total revenues [25] - Large project revenue for the fourth quarter was $22.3 million, down 5% year-over-year but up 20% compared to the previous quarter [24] Market Data and Key Metrics Changes - US sales increased by 6%, while EMEA revenue rose by 51% year-over-year, indicating strong performance in those regions [26] - The backlog as of March 31 increased by 29% from the previous year, with organic backlog up 20% [8] - The company reported a book-to-bill ratio of 1.04 times for the fourth quarter, reflecting balanced strength across diversified end markets [25] Company Strategy and Development Direction - The company is focused on three strategic pillars: growing the installed base, pursuing decarbonization, digitization, and diversification, and maintaining disciplined capital allocation [13][16] - The acquisition of Vapor Power has expanded the addressable market, increasing the sales pipeline by 25% [12] - The company aims to leverage existing solutions and new product development to meet customer decarbonization needs, with a strong emphasis on electrification of industrial heating [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products despite macroeconomic uncertainties, with a focus on navigating a dynamic global trade environment [31][35] - The company anticipates margin headwinds in the first half of fiscal year 2026 due to tariffs but expects to offset these through pricing actions in the latter half of the year [35][44] - The guidance for fiscal year 2026 includes revenue expectations between $495 million and $535 million, representing a 3.5% growth at the midpoint [35] Other Important Information - The company repurchased $14 million in shares during the fourth quarter, with a total of over $20 million in share repurchases for fiscal year 2025 [28] - The board approved a refresh of the share repurchase program back to $50 million, reflecting optimism for future growth [9][29] - The company is actively working on extending the maturity of its existing credit facility, which becomes current in September 2025 [29] Q&A Session Summary Question: Can you elaborate on the resurgence in LNG? - Management noted that since the lift of the moratorium in January, several projects have moved forward quickly, particularly in the U.S. Gulf Coast and the Middle East, with approximately $80 million in LNG opportunities in the pipeline [40][41] Question: What are the expectations for FY 2026 regarding margins and growth? - Management indicated that there will be near-term impacts on gross margins in the first half due to tariffs, but pricing actions are expected to mitigate these effects in the second half [42][44] Question: How is the company viewing the overtime category in the forecast for FY 2026? - Management mentioned a strong backlog build in overtime projects, with expectations for muted order rates until clarity on trade policy is achieved [50] Question: What is the competitive landscape regarding tariffs and trade policy? - Management highlighted that the company has a significant presence in the U.S. and Canada, which provides an advantage, and noted that they are not heavily dependent on China, reducing exposure to tariff impacts [78][80]