Financial Data and Key Metrics Changes - The company reported a record high adjusted EPS of $1.26 for Q4 2025, representing a 5.9% increase year-over-year [4][11][17] - Organic sales grew by 2.4% in Q4, with acquisitions contributing an additional 11.3%, leading to a total sales growth of 15.7% [11][13] - The gross profit margin decreased to 50.4% from 51.6% in the same quarter last year, primarily due to increased costs [13][14] Business Line Data and Key Metrics Changes - Printers and consumable products accounted for nearly 40% of total sales, with organic growth of 67% annually over the last three years [6][9] - The Americas and Asia region saw organic sales growth of 4.3% in Q4, while Europe and Australia experienced a decline of 1.3% [4][11][24][26] - R&D investment increased by 31% in Q4, reaching nearly $80 million, which is 5.3% of sales [5][9][15] Market Data and Key Metrics Changes - The Americas and Asia region reported total sales of $260.8 million, with organic growth of 4.3% and acquisition growth of 9.8% [24] - In Asia, organic sales grew by 12%, with a notable 23% growth outside of China, despite a 3% decline in China [25] - The Europe and Australia region faced challenging economic conditions, leading to a 1.3% organic sales decline, although acquisitions contributed 14.4% growth [26] Company Strategy and Development Direction - The company aims to expand its workplace safety and identification solutions by providing tailored solutions to meet customer needs [7][9] - Strategic acquisitions, such as Gravitec and MECO, are expected to enhance technical capabilities and drive future growth [9][28] - The focus remains on R&D investment to stay ahead of competition and deliver specialized products [9][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment in Europe and Australia, which has impacted sales and necessitated cost reduction actions [11][12] - The company anticipates organic sales growth in the low single-digit percentages for the year ending July 31, 2026, with adjusted EPS projected to range from $4.85 to $5.15 [21][22] - Management expressed confidence in mitigating tariff impacts through various strategies, including reshoring and supply chain adjustments [33][52] Other Important Information - The company returned $96 million to shareholders through dividends and share buybacks, marking the 40th consecutive year of annual dividend increases [9][10] - Operating cash flow for Q4 was $58.3 million, down from $84 million in the previous year, attributed to inventory build [18][37] Q&A Session Summary Question: Guidance on EPS growth amidst economic challenges - Management indicated that cost reductions and mitigating strategies for tariffs would support EPS growth despite economic challenges [32][34] Question: Impact of lower free cash flow in Q4 - The decline in free cash flow was primarily due to inventory build related to facility transitions, which is expected to normalize [37][38] Question: Future R&D investment levels - Management stated that while R&D investment may slightly decrease in the short term due to team integration, the long-term trend is to continue increasing R&D investment [50][51] Question: Tariff impact on guidance - Management expects the incremental tariff impact to be more pronounced in the first half of the year, with mitigation efforts included in the guidance [52][54] Question: Growth drivers in the printer and consumables segment - The primary growth drivers identified were data centers and aerospace and defense sectors, which have shown significant demand [56][57]