Financial Data and Key Metrics Changes - Sales for Q4 2025 were $752 million, up 1% from $744 million in Q4 2024, with organic sales decreasing by 1% [10] - Adjusted earnings per share grew 9% year-over-year to $3.03, exceeding the midpoint of quarterly guidance [12] - Full year sales reached a record $2.8 billion, up 4% from the previous year, with adjusted diluted earnings per share of $10.24, also up 5% [18][19] Business Line Data and Key Metrics Changes - Industrial Precision Solutions (IPS) sales decreased 2% to $362 million, with organic sales down nearly 4% [13] - Medical and Fluid Solutions sales increased 10% to $220 million, with organic sales volume up 7% [14] - Advanced Technology Solutions (ATS) sales decreased 4% to $171 million, with organic sales down approximately 5% [17] Market Data and Key Metrics Changes - The company reported a 5% year-over-year increase in backlog, reaching approximately $600 million [26] - Currency translation positively impacted sales by 2% during the quarter [10] - The company noted stabilization in demand for automotive and polymer processing end markets [24] Company Strategy and Development Direction - The Ascend strategy has been pivotal in achieving record sales and EBITDA, with a focus on operational excellence and strategic M&A [6][8] - The company aims for average annual revenue growth of 6%-8% and adjusted EPS growth of 10%-12% from 2025 to 2029 [23] - The company is positioned to capitalize on profitable growth opportunities as key market headwinds have subsided [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to convert market opportunities into bottom-line results, anticipating a strong start to fiscal 2026 [22][26] - The company highlighted that customer destocking in the medical segment is behind them, with expectations for mid-single-digit organic growth [24] - Management acknowledged the importance of planning for both upside and downside scenarios in guidance, reflecting a cautious yet optimistic outlook [44][45] Other Important Information - The company generated record cash flow of $194 million in Q4, with a conversion rate of 128% to net income [5] - Free cash flow for the full year was a record $661 million, enabling share repurchases and dividend increases [21] - The company ended the year with a leverage ratio of 2.1 times, near the low end of its targeted range [20] Q&A Session Summary Question: Insights on ATS segment and semiconductor applications - Management noted that strength remains concentrated in semiconductor applications for AI and cloud computing, with automotive stabilizing [29][30] Question: Margin trajectory for 2026 - Management indicated that margins in IPS and ATS are expected to be sustainable, with upper 30s% margins in the medical segment being achievable [31][32] Question: Polymer processing outlook - Management stated that polymer processing has troughed, with expectations for improvement in order entry and backlog [33][52] Question: Guidance rationale - Management explained that guidance reflects a range of potential outcomes, planning for both upside and downside scenarios [44][45] Question: Backlog trends - Management confirmed that backlog is down sequentially, which is typical for Q1, but up 5% year-over-year [55]