Financial Data and Key Metrics Changes - Revenue for Q4 was $162 million, up 14% year-over-year, exceeding the high end of guidance [4][10] - EPS for Q4 was $0.36, up 33% from the previous year [4][10] - Full year revenue was $593 million, up 7% year-over-year, also exceeding guidance [10][14] - Cash from operations was $47 million in Q4, above the high end of guidance [10][14] Business Segment Data and Key Metrics Changes - MedTech and specialty audio revenue for Q4 was $73 million, up 4% year-over-year, with full year revenue at $264 million, also up 4% [5][10] - Precision devices segment revenue for Q4 was $90 million, up 23% year-over-year, with full year revenue growing 10% [6][10] - Gross margins for MedTech and specialty audio were 51.9% in Q4, while precision devices had gross margins of 40.1% [10][11] Market Data and Key Metrics Changes - Strong demand was noted across key end markets including MedTech, defense, industrial, EV, and energy [6][8] - Book-to-bill ratio was reported at 1.06, indicating healthy demand [32] Company Strategy and Development Direction - The company is focused on leveraging unique technologies to design custom-engineered solutions for high-growth markets [4][9] - Plans for continued organic revenue growth above historic levels were emphasized, with a focus on synergistic acquisitions and share buybacks [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve revenue, earnings, and cash flow growth, supported by a robust backlog and increased order activity [16] - The company anticipates strong year-over-year growth in Q1, despite it being a seasonally low quarter [9][15] Other Important Information - The company is transitioning to an industrial technology focus, moving away from traditional gross margin guidance [28] - Capital spending for Q1 is expected to be $10 million, with continued investments in capacity expansion related to energy orders [15] Q&A Session Summary Question: Update on energy order and thin-film capacitor products - Management expects full ramp-up of energy orders by the end of Q2, with revenue expectations in the $50-$65 million range for 2026 [21][38] Question: Gross margin guidance for March and June quarters - Management indicated a focus on revenue guidance rather than gross margin, with expectations of 45%-50% gross margins for the full year 2025 [28][29] Question: Fastest growing markets for 2026 - Key markets identified include defense, MedTech, industrial, EV, and energy, with strong bookings supporting growth [32][33] Question: Production buildout for energy orders - The company is on track to ramp up production significantly in the next five months, with a focus on low-mix production for energy orders [38][39] Question: Supply-demand dynamics in industrial - Management expects strong industrial shipments in the first half of 2026, with growth anticipated for the full year [46][48]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $162 million, up 14% year-over-year, exceeding the high end of the guidance range [4][11] - EPS for Q4 was $0.36, up 33% from the previous year [4][11] - Full year revenue reached $593 million, a 7% increase year-over-year, surpassing the high end of the organic growth target [11][14] - Adjusted EBITDA from continuing operations was $140 million, up 9% from 2024 [14] Business Segment Data and Key Metrics Changes - MedTech and specialty audio revenue in Q4 was $73 million, up 4% year-over-year, with full year revenue at $264 million, also up 4% [5][11] - Precision devices segment revenue in Q4 was $90 million, up 23% year-over-year, with full year revenue growing 10% [6][11] - Segment gross margins for MedTech and specialty audio were 51.9%, while precision devices had gross margins of 40.1% [11][12] Market Data and Key Metrics Changes - The defense market is experiencing increased order volumes, with a focus on electronic warfare applications [8][9] - The energy market is identified as a significant growth opportunity for 2026 and beyond [9] - Industrial markets are seeing a rebound, with expectations of strong shipments in the first half of 2026 [45][48] Company Strategy and Development Direction - The company is focused on leveraging unique technologies to design custom-engineered solutions for high-growth markets [4][10] - There is a commitment to pursuing synergistic acquisitions and share buybacks to enhance shareholder value [10][14] - The company aims to maintain strong organic revenue growth above historic levels, with a target of 4%-6% organic growth [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve revenue, earnings, and cash flow growth, supported by a robust backlog and increased order activity [16] - The first quarter of 2026 is expected to show strong year-over-year growth despite being seasonally low [10] - Management highlighted the positive momentum in defense spending and the potential for margin expansion in the second half of 2026 [30][32] Other Important Information - Cash generated from operations in Q4 was $47 million, with capital spending at $15 million [13] - The company exited the quarter with $54 million in cash and $114 million in borrowings under its revolving credit facility [13] Q&A Session Summary Question: Update on energy order and thin-film capacitor products - Management expects the energy order ramp-up to be fully operational by the end of Q2 2026, with projected revenue in the $50-$65 million range for this product category [20][38] Question: Prospects for future organic growth and acquisitions - Management indicated a promising pipeline for organic growth and acquisitions, with a focus on expanding into new medical applications and defense spending [22][24] Question: Gross margin guidance for upcoming quarters - Management moved away from specific gross margin guidance, focusing instead on revenue, but indicated potential for margin expansion in the back half of 2026 [29] Question: Supply-demand dynamics in industrial markets - Management expects strong industrial shipments in the first half of 2026, with growth anticipated for the full year [45][48] Question: Component shortages impacting demand - Management acknowledged concerns about capacity and pricing dynamics but noted strong bookings and demand trends [49]