Financial Data and Key Metrics Changes - The company reported a 12% total sales growth in Q4 2025, with net sales reaching $1.493 billion, driven by 9% organic growth and 3% from acquisitions [4][9] - Adjusted operating profit grew by 19%, with adjusted operating margins expanding by 140 basis points [4][10] - Adjusted diluted earnings per share increased by 15% to $4.73 [10] - Free cash flow for Q4 was $389 million, contributing to a full-year total of $875 million, representing a 90% conversion on adjusted net income [11] Business Line Data and Key Metrics Changes - **Utility Solutions Segment**: Generated net sales of $936 million in Q4, a 10% increase year-over-year, with organic growth of 7% and acquisitions contributing 4% [12] - **Grid Infrastructure**: Achieved 12% organic growth, driven by strong demand in transmission and substation markets [13] - **Electrical Solutions Segment**: Reported net sales of $557 million in Q4, with 13% organic growth, primarily from data center markets [14][15] Market Data and Key Metrics Changes - The utility market remains strong, with significant investments in transmission and substation infrastructure, driven by aging infrastructure and new load generation [4][19] - Data center markets showed exceptional growth, exceeding 60% in Q4, supported by targeted capacity investments [15][21] Company Strategy and Development Direction - The company is focused on unifying its electrical solutions segment to enhance competitiveness and drive operational efficiencies, achieving above-market growth [6] - Continued investment in automation and production capacity is planned to support high-growth areas [7][8] - The company anticipates 5%-7% organic growth across its portfolio for 2026, with a strong focus on utility T&D and data center markets [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong order momentum and visibility into favorable end markets for 2026 [27][28] - The company expects to manage cost inflation effectively while continuing to invest in growth initiatives [23][24] - The outlook for 2026 includes total sales growth of 7%-9% and adjusted earnings per share between $19.15 and $19.85 [22][23] Other Important Information - The company closed a high-growth acquisition in DMC Power, enhancing its portfolio in grid infrastructure [7] - Free cash flow margin for 2025 was reported at 15%, with a return on invested capital of 19% [8] Q&A Session Summary Question: Can you provide more color on orders and their impact on MRO activity? - Management noted strong order momentum, particularly in T&D and data center markets, with visibility into 2026 remaining positive [27][28] Question: What is the outlook for meters and AMI? - Management indicated that the business is stabilizing and expects modest growth moving forward after a period of decline [32][33] Question: How should we think about margin expansion throughout the year? - Management confirmed expectations for margin expansion, with a focus on maintaining strong performance in Q1 [41][50] Question: What is the current assumption on raw materials prices? - The company anticipates mid-single-digit cost inflation for 2026, with ongoing management of price and productivity to address this [58][59] Question: What is the outlook for grid infrastructure growth in the first and second half of the year? - Management expressed optimism for high single-digit to low double-digit growth in transmission and substation markets, with expectations for continued strength in distribution [64][66] Question: How will free cash flow be utilized in 2026? - The company plans to deploy free cash flow towards high-quality CapEx, M&A opportunities, and share repurchases [67][70]