Financial Data and Key Metrics Changes - Revenue for the second quarter increased by 18% to $43 million, up from $36.5 million in the same period last year [7] - Gross profit increased by 35%, with gross margin expanding by 320 basis points to 25.1% compared to 21.9% in the second quarter of last year [8] - Adjusted EBITDA increased by 41.9% to $6.1 million, translating to an adjusted EBITDA margin of 14%, up from 11.9% in the same period last year [8][22] - Net profit increased by 25% compared to 2024 and by 53% year over year in the first half of 2025 [21] Business Line Data and Key Metrics Changes - APU work revenue increased by 12% year over year, but saw a slight sequential decrease due to market volatility [11] - Revenue from trading and leasing tripled, showcasing operational flexibility amid modest MRO intake [12] - All strategic product lines grew double digits year over year, aligning with company expectations [25] Market Data and Key Metrics Changes - Long-term agreement value and backlog increased by $85 million to $524 million, reflecting new contract wins and customer base expansion [5][27] - The backlog for APU and landing gear segments grew to $204 million compared to $170 million at the end of 2025 [27] Company Strategy and Development Direction - The company aims to enhance value for strategic customers by expanding service offerings and exploring strategic acquisitions [14][52] - Focus on operational efficiencies and margin improvement continues, with ongoing initiatives to optimize cost structure and improve product mix [8][72] - The company is well-positioned to manage through macroeconomic challenges and is optimistic about long-term growth prospects [9][86] Management's Comments on Operating Environment and Future Outlook - Management noted that while the aviation sector faces macroeconomic and operational headwinds, the company is well-positioned to navigate these challenges [9] - There is cautious optimism regarding future demand for MRO work, particularly in the APU and landing gear segments [18] - Management emphasized the importance of maintaining operational flexibility to adapt to market dynamics [10][41] Other Important Information - The company completed a financing round of $45 million to strengthen its balance sheet and support growth initiatives [24] - Cash flow from operations was approximately $6.9 million, driven by better collections and improved payment terms [23] Q&A Session Summary Question: Can you discuss the MRO acceleration comments and where the reacceleration is happening? - Management indicated that the MRO market is experiencing a recovery after a period of reduced intake due to airlines managing cash flow by leveraging spare inventories [34][36] Question: What was the largest driver of cash flow in the quarter? - The company highlighted improved collections and tighter controls on inventory management as key drivers of positive cash flow [38][41] Question: How is the APU strategy progressing? - Management confirmed that the strategy is on track, with increasing market share and successful wins in smaller deals leading to larger opportunities [42][44] Question: Are there specific capabilities or products targeted for M&A? - The company aims to expand into more mechanical systems and components while remaining close to its existing capabilities [52] Question: What are the expectations for trading and leasing growth in the second half? - Management noted steady demand for leasing but acknowledged challenges in trading due to reduced teardown activity of old aircraft [64][66]

Financial Data and Key Metrics Changes - First quarter revenue increased by 23.6% to $42.1 million, up from $34.1 million in the same period last year [5][16] - Gross profit rose from $7.1 million to $10 million, a 41% increase, with gross margin expanding by 290 basis points to 23.6% [8][17] - Adjusted EBITDA increased by 56.2% to $5.7 million, translating to an adjusted EBITDA margin of 13.6%, up from 10.8% [9][18] - Operating profit increased by 89% to $4.2 million, with operating margin at 9.9% compared to 6.5% in the previous period [17] Business Line Data and Key Metrics Changes - Heat exchange product line revenue increased by 30% to $18.4 million [20] - APU segment revenue rose by 34% to $12.3 million [20] - Trading and leasing revenue decreased by 27% to $2.1 million due to postponed deals [20][21] - Lending gear revenue increased by 127% to $3.3 million [20] Market Data and Key Metrics Changes - Backlog and long-term agreements rose to $439 million, providing strong visibility for future growth [9][23] - The company secured backlog and orders worth $52 million in the quarter [23] Company Strategy and Development Direction - The company is focused on growing its MRO and OEM business as well as its trading division, providing agility and operational flexibility [13] - The expansion of APU capabilities is expected to grow the addressable market significantly [11][24] - The company is strategically increasing inventory levels to meet demand despite ongoing supply chain issues [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite short-term volatility due to macroeconomic factors [10][14] - The aviation sector is facing macroeconomic headwinds, but the company believes its backlog and long-term agreements will support growth [10] - Management highlighted the importance of operational efficiencies in improving margins, aiming for a gross margin of at least 25% and an EBITDA margin of 15% in the future [36] Other Important Information - The company is well-positioned to double its capacity from a technology and equipment standpoint, although supply chain remains a bottleneck [43] - Tax expenses are currently non-cash items, with expectations to become cash expenses by Q4 2025 [19][45] Q&A Session Summary Question: Can you explore the incremental backlog this quarter? - Management indicated that the increase was driven by a combination of existing and new customers across various business lines [34] Question: How much of the margin improvement is due to pricing versus operational actions? - Management clarified that the margin improvement is primarily due to operational efficiencies rather than pricing changes [36] Question: What is the current state of the supply chain? - Management noted that the supply chain situation is evolving, with a positive overall trend but still facing volatility [38] Question: What are the opportunities for growth within the government and defense market? - Management acknowledged the presence of opportunities but indicated that immediate growth is not expected due to the nature of government procurement processes [46] Question: What is the outlook for APU revenue opportunities with major logistics customers? - Management confirmed strong relationships with existing customers and expressed confidence in securing more business as contracts come up for renewal [50] Question: When do you expect the redomicile process to be completed? - Management stated that operationally, the company functions as a US entity, despite the registration status [60]

Financial Data and Key Metrics Changes - First quarter revenue increased by 23.6% to $42.1 million, up from $34.1 million in the same period last year [5][15] - Gross profit rose from $7.1 million to $10 million, a 41% increase, with gross margin expanding by 290 basis points to 23.6% [6][16] - Adjusted EBITDA increased by 56.2% to $5.7 million, translating to an adjusted EBITDA margin of 13.6%, up from 10.8% [7][17] - Operating profit increased by 89% to $4.2 million, with an operating margin of 9.9% compared to 6.5% in the previous period [16] Business Line Data and Key Metrics Changes - Heat exchange product line revenue increased by 30% to $18.4 million [19] - APU segment revenue rose by 34% to $12.3 million [19] - Trading and leasing revenue decreased by 27% to $2.1 million due to postponed deals [19][20] - Lending gear revenue increased by 127% to $3.3 million [19] Market Data and Key Metrics Changes - The backlog rose to $439 million, with $52 million in long-term agreements secured during the quarter [7][22] - The product mix in the backlog consists of 54% heat exchangers, 27% APUs, and 13% lending gear [22] Company Strategy and Development Direction - The company is focused on growing its MRO and OEM business, as well as its trading division, to navigate economic uncertainty [12] - The expansion of APU capabilities is expected to grow the addressable market significantly [10] - The company is strategically increasing inventory levels to meet demand and maintain competitive advantage [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite short-term volatility due to macroeconomic factors [9][13] - The aviation sector is facing challenges, but the company is well-positioned to capitalize on its backlog and long-term agreements [9] - Management highlighted the importance of operational efficiencies in improving margins, aiming for a gross margin of at least 25% and an EBITDA margin of 15% in the future [36] Other Important Information - The company is experiencing strong demand from both new and existing customers, with a positive outlook for future growth [14] - Management noted that tax expenses are currently non-cash items, with expectations to become tax profitable by the end of 2025 [18][44] Q&A Session Summary Question: Can you explore the incremental backlog this quarter? - Management indicated that the increase was driven by a combination of existing and new customers across various business lines [33] Question: How much of the margin improvement is due to pricing versus operational actions? - Management clarified that the margin improvement is primarily due to operational efficiencies rather than pricing changes [36] Question: What is the current state of the supply chain? - Management noted that the supply chain is volatile but improving, and they are strategically increasing inventories to manage challenges [38][40] Question: What are the opportunities for growth within the government and defense market? - Management acknowledged the potential for growth in the defense sector but noted that immediate buying decisions are not expected [46][47] Question: What is the outlook for APU revenue opportunities with major logistics customers? - Management confirmed strong relationships with existing customers like UPS and FedEx, with opportunities for growth as contracts come up for renewal [50][51] Question: When do you expect the redomicile process to be completed? - Management stated that operationally, the company is functioning as a US entity, despite the registration process [59][60]

Financial Data and Key Metrics Changes - Revenue increased by 34% to over $150 million in 2024, with net income growing by 139% compared to 2023 [8][17] - Fourth quarter revenue rose by 29% to $41 million compared to Q4 2023, with gross margin increasing from 19.7% in 2023 to 21.7% in 2024 [8][15] - Adjusted EBITDA margin improved from 9.7% in 2023 to 12.2% in 2024, with earnings per share on a fully diluted basis increasing by 658% to $0.32 in Q4 2024 [8][16] Business Line Data and Key Metrics Changes - Heat exchangers revenue increased from $13.3 million in Q4 2023 to $16.6 million in Q4 2024 [21] - APU segment revenue surged from $9.2 million in Q4 2023 to $30 million in Q4 2024, marking a 42% increase [21] - Trading and leasing revenue rose from $2.2 million in Q4 2023 to $3.3 million in Q4 2024 [22] Market Data and Key Metrics Changes - North America accounted for 70% of total revenues, with Europe contributing 11% [27] - The backlog increased to $429 million at the end of 2024, up from $406 million at the end of 2023, indicating strong future growth potential [11][28] Company Strategy and Development Direction - The company is focusing on improving profitability and expanding margins while launching new capabilities, particularly in APUs [9][14] - Strategic sourcing plans have been implemented to address supply chain challenges and ensure inventory availability for future growth [12][13] - The company aims to enhance trading and leasing capabilities, leveraging in-house MRO to gain a competitive advantage [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand in the MRO market, despite ongoing supply chain challenges [31][52] - The company anticipates continued growth in 2025, driven by new contracts and increased orders [33][91] - Management highlighted the importance of focusing on annual growth rather than quarterly fluctuations due to the unpredictable nature of the MRO business [88][90] Other Important Information - Interest expenses are projected to be around $2 million for 2024, with tax expenses expected to rise in 2025 [25][26] - The company is primarily focused on the commercial aviation sector, with military revenues constituting only 18% of total revenue in 2024 [26] Q&A Session Summary Question: Can you highlight what you're seeing from suppliers regarding the ongoing unstable supply chain? - Management noted that while some product lines have stabilized, challenges remain with parts delivery and long lead times, necessitating strategic inventory investments [38][40] Question: What is the demand side for the new APU capabilities in 2025? - Management indicated strong demand with many RFPs in progress, focusing on small to medium-sized airlines for new contracts [46][48] Question: What is the current book-to-bill ratio and backlog conversion time? - The book-to-bill ratio is over one, with a significant portion of backlog expected to convert to revenue within 12 to 18 months [58][60] Question: What are the pricing trends for services? - Pricing for contractual customers is tied to predetermined indexes, while non-contractual pricing is more variable based on market conditions [82][84]