Financial Data and Key Metrics Changes - Q4 2025 revenue totaled $274 million, representing a 14% sequential increase and a 9% increase compared to Q4 2024 [6][13] - Adjusted EBITDA for Q4 was $52 million, resulting in an adjusted EBITDA margin of 19% [14] - Free cash flow for Q4 was $43 million, with full-year 2025 free cash flow totaling $156 million, converting approximately 83% of adjusted EBITDA into free cash flow [18][19] Business Line Data and Key Metrics Changes - The subsea business was a primary driver of strong Q4 performance, with significant revenue contributions from higher-than-expected subsea deliveries [6][14] - NAM Land revenue increased sequentially by 5% to a record level of $139 million, outperforming underlying activity levels [15] - International and offshore revenues increased sequentially by 25%, benefiting from higher subsea deliveries [15] Market Data and Key Metrics Changes - Market share grew across U.S. land, offshore, and international markets despite a softer macro environment [7] - The company experienced strong project execution in Mexico and Saudi Arabia, with increased revenue and local content position [11] Company Strategy and Development Direction - The company emphasizes a "No Barriers" culture to enhance collaboration and drive customer and shareholder value [4][5] - Focus on disciplined M&A, customer-led innovation, and shareholder returns, with a strong pipeline of potential acquisitions [20] - The company aims for long-term margin expansion towards a target of 25% [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging macro environment and highlighted strong operational execution [12] - The outlook for Q1 2026 anticipates revenue in the range of $225 million to $235 million, with expected sequential decline due to seasonality and delivery timing [21] - Management remains optimistic about growth opportunities in U.S. Land, Saudi Arabia, and Mexico, as well as new subsea projects [21] Other Important Information - Selling, general, and administrative expenses for full-year 2025 were $129 million, a decrease from 18% of revenue in 2024 to 13% [17] - Capital expenditures for Q4 totaled $9 million, representing approximately 3.3% of revenue, with full-year 2025 capital expenditures at $35 million [17][18] Q&A Session Summary Question: Can you elaborate on the Q1 margin guidance and the impact of low-margin projects? - Management acknowledged that Q1 margins would be impacted by low-margin subsea deliveries and ongoing exit costs associated with the Eldridge facility, but they remain optimistic about long-term margin progression [24][25] Question: What tangible examples can you provide regarding cross-selling opportunities from recent acquisitions? - Management highlighted successful cross-selling in the drilling enhancement product line and noted strong relationships with larger independents in U.S. land and the Middle East [27][28] Question: Can you provide an update on the Far East manufacturing expansion? - Management indicated that they are in the mid-stages of moving subsea manufacturing to Singapore and ramping up operations in Vietnam, with continued capital expenditures expected [38][39] Question: How do you see the subsea product bookings trending for 2025? - Management noted that subsea orders in 2025 were slightly down compared to 2024, but they expect a significant increase in order volume for 2026 [57][58] Question: How confident are you that the reduced manufacturing footprint will support increased subsea product demand? - Management expressed confidence in their ability to meet market demands despite the reduced footprint, emphasizing the efficiency of their operations [60][61]