Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 10% on a 4% increase in gross transaction value (GTV), reflecting strong execution and cost management [4][11] - Adjusted earnings per share increased by 17% in the fourth quarter and 15% for the full year, driven by higher operating income and lower net interest expense [14] - Full-year adjusted EBITDA is expected to be between $1.47 billion and $1.53 billion, representing approximately 7% growth at the midpoint [15] Business Line Data and Key Metrics Changes - Automotive GTV increased by 3% in the fourth quarter, with unit volumes rising by 2% [11] - Excluding catastrophic impacts, automotive GTV and unit volumes grew approximately 12% and 8% respectively [11] - GTV in the commercial construction and transportation sector increased by 9%, with unit volumes growing approximately 10% [12] Market Data and Key Metrics Changes - Gross returns or salvage values as a percentage of pre-accident cash values expanded, supporting approximately 7% year-over-year growth in the U.S. insurance average selling price [6] - The average price per vehicle sold increased by approximately 1% in the quarter, or roughly 4% excluding catastrophic impacts [12] Company Strategy and Development Direction - The company is focused on disciplined execution and strategic progress, prioritizing scale, longevity, and market share expansion [4][5] - New multi-year agreements with major partners provide long-term visibility into expected volumes and deepen strategic alignment [5][6] - The introduction of the IAA Total Loss Predictor aims to enhance operational efficiencies and strengthen partner economics [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding early signs of improvement in seller confidence, supported by stabilizing used equipment values and lower interest rates [9] - The company expects full-year GTV to grow between 5% and 8% in 2026, with a focus on volume-led growth [15] - Management emphasized the importance of continuous improvement in operational efficiency and cost management [46][48] Other Important Information - The company plans to invest between $350 million and $400 million in capital expenditures for 2026, with a focus on technology and traditional physical assets [15][38] - The company is exploring opportunities for share repurchase programs as part of its capital allocation strategy [53] Q&A Session Summary Question: Clarification on 2026 guidance and market share capture - Management confirmed that the guidance includes both annualization of wins and additional terms agreed upon [19][20] Question: Flow-through of GTV to revenue - Management indicated there may be slight pressure on the take rate but remains optimistic about unit economics [21][22] Question: Improvement in the CC&T sector - Management noted early signs of improvement in partner conversations, though the environment remains complex [26] Question: Details on the total loss predictor - Management explained that the tool aims to optimize vehicle routing post-accident, significantly reducing costs [27][30] Question: AI development among customers - Management highlighted varying capabilities among insurance carriers regarding AI investment and integration [34][35] Question: Breakdown of CapEx investments - Management provided a typical mix of 1/3 on technology-related investments and 2/3 on traditional physical assets [38] Question: Total volumes across the auto salvage business - Management stated they do not break down guidance to that level but expect to continue gaining market share [78]