Financial Data and Key Metrics Changes - In fiscal year 2025, the company achieved a record adjusted earnings per share of $7.25, representing a 3% increase year over year [12] - Adjusted EBITDA for the year was $800 million, up 3% year over year, with a margin of 22% [14] - The company generated operating cash flow of $665 million and free cash flow of $391 million [15] - The net debt to EBITDA ratio was 1.2 times, with liquidity of $1.5 billion [14][15] Business Line Data and Key Metrics Changes - Reinforcement Materials EBIT decreased by 5% year over year, while Performance Chemicals EBIT increased by 18% [13] - In the fourth quarter, EBIT for Reinforcement Materials decreased by $4 million due to lower volumes, which were down 5% year over year [27] - Performance Chemicals saw a $30 million increase in EBIT for the fiscal year, driven by higher volumes in specific product lines [30] Market Data and Key Metrics Changes - Volumes in The Americas were down 7%, while Asia Pacific volumes decreased by 6%, but Europe saw a 5% increase [28] - The company noted persistent end market weakness in sectors like automotive and construction, but targeted applications in infrastructure and alternative energy showed favorable trends [19][37] Company Strategy and Development Direction - The company is focused on three capital allocation priorities: maintaining asset reliability, pursuing organic and inorganic growth investments, and returning capital to shareholders [15][16] - An acquisition of Bridgestone's reinforcing carbon plant in Mexico was announced, expected to close in the second fiscal quarter and to be accretive in the first year [18] - The company aims to build a leading battery materials business, leveraging organic technology development and strategic M&A [22][24] Management's Comments on Operating Environment and Future Outlook - The management highlighted a turbulent macroeconomic environment in fiscal year 2025, with expectations for continued challenges in 2026 [12][33] - Adjusted earnings per share for fiscal year 2026 are expected to be between $6 and $7, reflecting uncertainty in demand and pricing pressures [34] - The management emphasized the importance of operational excellence and cost optimization in navigating the current market dynamics [44][45] Other Important Information - The company maintained a continuous and growing dividend since 1968, with $96 million paid in dividends in fiscal year 2025 [16] - The operating tax rate for fiscal year 2025 was 27%, up from 26% in the previous year, influenced by geographic earnings mix and new global tax regulations [27] Q&A Session Summary Question: Are you seeing any volatility in your Rubber Black operating rates regionally? - The company indicated that operating rates are largely stable, though influenced by elevated tire imports affecting demand [48] Question: How much do you expect 2026 tire contract prices to be down? - Approximately 25% of contracts have been completed, which is behind last year's pace, with ongoing negotiations impacted by demand uncertainty [51][52] Question: Can you elaborate on the underlying assumptions for Performance Chemicals guidance? - The company expects overall volume growth in 2026, driven by targeted applications in battery materials and infrastructure, despite headwinds in automotive and construction [53][55] Question: How did regional utilization rates shake out during the quarter? - Utilization rates in North America are between 75-80%, higher in Europe at around 85%, while South America remains lower due to tire imports [61]