Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $889 million, representing a year-over-year increase of 6.7% [5][12] - Adjusted EBITDA for the quarter was $116 million, up $6 million from the previous year, with a margin of 13% [5][14] - Adjusted earnings per diluted share increased to $1.18 from $0.71 in the same period last year [6] - Full year revenue was approximately $3.5 billion, a 3% increase, with adjusted EBITDA flat year-over-year at $478 million [15][16] Business Line Data and Key Metrics Changes - The fuel system segment reported sales of $560 million, up 7.9%, with an adjusted operating margin of 10.7% [5][17] - The aftermarket segment had sales of $329 million, up 4.8%, with an adjusted operating margin of 15.8% [6][18] - Adjusted operating income for the fuel system segment was $244 million, an increase of $16 million year-over-year [17] Market Data and Key Metrics Changes - Sales in Asia and the Americas showed strength, while Europe experienced lower sales within fuel systems [12][13] - The aftermarket segment's demand was supported by an aging global vehicle fleet and an expanding portfolio [8] Company Strategy and Development Direction - The company aims to differentiate through product leadership and focus on sustainable growth markets [11][22] - Capital allocation remains disciplined, with a focus on M&A opportunities while returning capital to shareholders [9][10] - The company completed its first acquisition in 2025 and received aerospace quality certification [10] Management's Comments on Operating Environment and Future Outlook - The management highlighted resilience amid a dynamic macro and industry environment, with diversification across regions and products serving as a strength [3][4] - For 2026, the company expects industry volumes to be flat to slightly down globally, but aims to offset this through market share gains [21][22] - The adjusted effective tax rate is projected to be in the 30%-34% range for 2026 [22] Other Important Information - The company reduced its debt by $24 million, resulting in a net leverage ratio decrease from 1.4x to 1.3x [6] - A dividend increase of 11% and a $150 million increase in the share repurchase program were announced [10] Q&A Session Summary Question: Clarification on commercial vehicle growth expectations in Europe - Management confirmed that the guidance reflects overall industry expectations, with positive signs from customers in the region [25][26] Question: Inquiry about Adjusted EBITDA margins and growth hurdles - Management explained that while revenue growth is expected, margin expansion is limited due to factors like FX and tariff impacts [27][28] Question: Details on the third aerospace and defense supply contract - Management confirmed that the third contract is with the same customer as the previous two [29] Question: Volume assumptions for 2026 and potential for positive light vehicle volumes - Management indicated that while the market may be flat to down, they expect to gain market share and continue growth [78][80] Question: Competitors' focus on GDI platforms and ICE vehicles - Management noted that competitors have not significantly changed their strategies, allowing the company to gain market share [81][82]