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]

Earnings Q42025 F E B R U A R Y 5 , 2 0 2 6 Safe Harbor Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performance, and continued business operations. The words "believe," "expect," "anticipate," "project," "estimate," "budget," "continue," "could," "intend," "may," "plan," "pot ...