Core Viewpoint - Quantum Gyro has made significant advancements in developing a quantum-based gyroscope that promises unjammable, satellite-free navigation solutions, potentially transforming precision navigation in environments where GPS is unavailable [2][4]. Technology Development - Quantum Gyro has achieved performance improvements in gyroscope technology that are several orders of magnitude better than existing systems, indicating a transformative leap in navigation capabilities [2]. - Key benefits of the new technology include unjammable, self-contained navigation, order-of-magnitude drift reduction allowing for accurate navigation for extended periods, software-based scalability for various platforms, and resilience in extreme conditions [2][3]. Market Potential - The global quantum compass navigation market is projected to grow at a robust CAGR of 29.4% from 2025 to 2033, reaching an estimated value of $3.64 billion by 2033, reflecting increasing adoption of next-generation navigation technologies across multiple industries [5]. Acquisition Details - Viewbix has signed a definitive agreement to acquire up to 100% of Quantum X Labs, which includes a growing patent portfolio related to quantum error correction. The acquisition is expected to close within 90 days of the agreement date, pending due diligence and regulatory approvals [6].

Financial Data and Key Metrics Changes - Adjusted EPS for Q4 2025 was $1.53, up 21% year-over-year, driven by a 5.4% core sales growth [5][29] - For the full year 2025, adjusted EPS increased by 24%, reflecting strong performance and customer satisfaction [5] - Core FX neutral backlog increased by 14% year-over-year, indicating strong demand [29] Business Line Data and Key Metrics Changes - Aerospace and Advanced Technologies segment sales reached $272 million, a 15% increase, primarily organic growth [30] - Process Flow Technologies segment delivered sales of $309 million, flat compared to the previous year, with core sales down 1.5% [31][20] - Adjusted segment margin for Aerospace and Advanced Technologies expanded to 23.6%, up 50 basis points from the previous year [31] Market Data and Key Metrics Changes - The commercial aerospace market remains strong, with Boeing and Airbus ramping up production [15] - Defense procurement spending is solid, with a focus on strengthening the defense industrial base amid global uncertainties [15] - Chemical markets remain subdued, impacting the Process Flow Technologies segment [18] Company Strategy and Development Direction - The company aims for 4%-6% core sales growth and 35%-40% core operating leverage, with a focus on delivering shareholder value [4] - Recent acquisitions, including Druck, Panametrics, and Reuter-Stokes, are expected to enhance growth and support existing and new customers [6][9] - The company plans to widen its strategic focus in the Aerospace and Advanced Technologies segment, looking for adjacent market opportunities [8][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong performance and resilience, anticipating continued growth in 2026 [11] - The guidance for 2026 includes an adjusted EPS of $6.55-$6.75, reflecting a solid growth outlook despite challenges [12] - Management noted that while the first quarter of 2026 may be seasonally soft, the overall outlook for the year remains positive [35] Other Important Information - The company has a planned succession timeline, with Alex Alcala set to become CEO in April 2026, while Max Mitchell will transition to Executive Chairman [10][11] - The integration of recent acquisitions is progressing well, with expectations for these businesses to be slightly accretive to earnings in 2026 [22] Q&A Session Summary Question: What are the pricing opportunities at Druck in 2026 and 2027? - Management indicated significant pricing opportunities and expects improvements starting this year, with no obstacles to achieving goals [39][40] Question: Can you clarify guidance related to cost takeout at PSI? - Management confirmed no changes to previously discussed cost takeout targets, with productivity and commercial growth being key elements [41][42] Question: Can you discuss the impact of the government shutdown on military programs? - Management noted no significant changes in orders or funding due to the government shutdown, although some flight tests were delayed [77][78] Question: What is the expected performance for the aerospace segment in 2026? - Management anticipates strong growth in commercial OEM and mid-single digits for military OEM, with aftermarket volumes also expected to remain strong [76][77]