Financial Data and Key Metrics Changes - The company reported total sales of $809 million for Q4 2025, with a core growth of 5% and adjusted EPS of $0.86, reflecting an 8% year-over-year increase [13][4] - For the full year, organic sales grew nearly 4% and EPS finished up 11% [4][5] - Adjusted free cash flow for 2025 was over $460 million, equating to about 15% of annual sales [4][13] Business Line Data and Key Metrics Changes - Environmental and Fueling Solutions (EFS) segment achieved 6% core growth for the full year, with dispenser sales increasing high single digits in Q4 [14] - Mobility Technologies saw core sales increase by 8.5% in Q4, with Invenco's revenue base up 22% organically [15][8] - Repair Solutions experienced a sequential sales increase in Q4, although overall sales declined 2% due to lower volumes [16] Market Data and Key Metrics Changes - The convenience retail end market is growing at a mid-single-digit CAGR, driven by strategic investments in food service and technology [9] - The U.S. convenience store count remained relatively flat year-over-year, while the number of fueling sites grew approximately 1% [7] Company Strategy and Development Direction - The company is focused on a connected mobility strategy that enables profitable growth and innovation [5] - Simplification efforts are expected to yield $15 million in incremental cost savings [6] - The company aims to leverage integrated solutions to capitalize on digitalization and energy expansion trends [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 on firm footing, with strong leadership positions in resilient end markets [23] - The company anticipates core growth of about 3% for 2026, supported by low to mid-single-digit growth in EFS and mid-single-digit growth in Mobility Technologies [18] - Management highlighted the importance of innovation and product vitality in driving customer engagement and commercial momentum [24] Other Important Information - The company ended the year with nearly $500 million in cash and a net leverage ratio of 2.3 times [17] - Adjusted free cash flow conversion is expected to be about 95% for 2026, equating to roughly 15% of sales [20] Q&A Session Summary Question: Can you provide more color on MobilityTech's growth? - Management noted that innovation-driven growth in MobilityTech was strong, with better uptake on new products like FlexPay 6 and NFX [30] Question: What is the outlook for EFS and the retail fueling cycle? - Management expressed confidence in the retail fueling cycle, citing strong capital investment and positive feedback from convenience store customers [35] Question: How do you expect the various segments to perform in Q1? - EFS is expected to grow in the low single-digit range, while Mobility Technologies and Repair Solutions are anticipated to be relatively flat [42] Question: What impact did the Invenco inventory adjustment have on margins? - The inventory adjustment of $4 million impacted Invenco's margins by approximately 130 basis points [58] Question: What is the outlook for the repair solutions segment? - Management indicated that the repair market is healthy, with opportunities for growth in diagnostics and productivity tools [60]

Financial Data and Key Metrics Changes - The company reported sales of $774 million, an 11% increase both on a reported and core basis, with adjusted EPS increasing 25% to $0.79 [19][20] - Adjusted operating profit increased 15% year over year with margin expansion of 80 basis points [7][20] - Adjusted free cash flow of $89 million increased significantly versus the prior year, reflecting a strong 76% conversion to adjusted net income [20][28] Business Line Data and Key Metrics Changes - Environmental and Fueling Solutions delivered core growth of nearly 16%, with shipments of dispensers increasing over 20% in the second quarter [21] - Mobility Technologies core sales grew 18%, driven by strong performance at Invenco, while DRB sales declined in the teens year over year [22] - Prepared Solutions sales were flat compared to the prior year, with ongoing market pressures offsetting gains expected from the annual Matco Expo [23] Market Data and Key Metrics Changes - Orders were up 8% organically, with a book to bill ratio of approximately one in the quarter [5][67] - The company noted that 70% of its portfolio outperformed in the quarter, reflecting strong progress in resilient end markets [20] Company Strategy and Development Direction - The company is focusing on operational discipline and commercial excellence, supported by a three-pillar value creation framework [8][29] - There is an emphasis on innovation and new product development, particularly in connected mobility and environmental solutions [12][16] - The company is advancing an agreement to divest its European service business to optimize its regional footprint [10] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year guidance for adjusted EPS to a high single-digit growth, despite expected tariff headwinds and macro uncertainties [18][28] - The company remains confident in its growth trajectory, supported by strong free cash flow and prudent capital allocation [29][30] Other Important Information - The company completed $50 million in share buybacks during the quarter, totaling $105 million in the first half of the year [25] - The company expects to fully mitigate tariff headwinds within the year, with significant progress made in Q2 [28] Q&A Session Summary Question: Revenue outlook for the second half, particularly for Repair Solutions - Management indicated a guide of down mid to high single digits for Repair Solutions, with signs of stabilization but still early to call an inflection [36][40] Question: Margin outlook for Repair Solutions - Margins have stabilized, with potential for improvement as higher-priced items start selling better and bad debt challenges stabilize [39][41] Question: Impact of shipment timing on EFS and Mobility Technologies - The company benefited from shipment timings of about $15 million to $20 million, with Mobility Technologies contributing approximately $5 million to $7 million [47] Question: Invenco's growth and revenue outlook - Invenco is expected to generate over $600 million in revenue this year, with strong growth anticipated despite tougher comparisons [50][52] Question: Recurring revenue base for Vontier - Approximately 40% of Mobility Technologies revenue is recurring, with Invenco at about 35% [52] Question: Customer conversations regarding the Big Beautiful Bill - The bill is expected to benefit free cash flow and may accelerate customer decisions, particularly for smaller operators [59][60] Question: Trends in the underground tank replacement cycle - The company sees early opportunities in the underground tank upgrade cycle, supported by new product innovations [63][64] Question: Month-to-month trends in Matco - Sellout was down 5% for the first half, but July showed improvement, indicating potential positive trends moving forward [84]