Financial Data and Key Metrics Changes - Enerpac Tool Group reported record revenue of $617 million for fiscal 2025, representing a 5% increase year-over-year, with organic growth of 1% after adjusting for foreign exchange and the acquisition of DTA [6][10] - Adjusted EBITDA for the year grew by 4% to $154 million, resulting in a margin of 24.9% [10][12] - Adjusted earnings per share increased by 5% to $1.81 compared to $1.72 in fiscal 2024 [10][12] Business Line Data and Key Metrics Changes - The IT&S business saw a 1% organic revenue increase for the year, while including DTA, revenue increased by 4% [6][10] - The e-commerce segment experienced significant growth, posting a 32% increase in fiscal 2025 [4][10] - Cortland Biomedical products continued to show healthy growth, contributing positively to overall performance [10][80] Market Data and Key Metrics Changes - Growth was observed in two of the three regions, with low single-digit growth in the Americas and strong high single-digit growth in APAC [7][8] - The EMEA region experienced a mid-single-digit decline, primarily due to ongoing economic weakness in Central and Southern Europe [8][9] - In APAC, double-digit growth was driven by enhanced sales coverage in India and improvements in the mining industry in Australia [7][8] Company Strategy and Development Direction - The company is focused on continuous improvement through the Powering Enerpac Performance (PEP) initiatives, which aim to enhance operational capabilities and support growth [16][22] - Enerpac is investing in differentiated and value-added service opportunities, including transitioning to a direct business model in certain countries [16][22] - The company plans to continue its disciplined capital allocation strategy, balancing investments in growth with shareholder returns through stock repurchases [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for fiscal 2026, citing potential improvements in the macroeconomic environment, including lower interest rates and healthy infrastructure activity [4][14] - The company anticipates some pressure on margins in the first quarter of fiscal 2026 due to higher tariff-impacted costs, but expects to offset these through strategic actions [15][47] - Overall, management remains cautiously optimistic about growth opportunities, particularly in the infrastructure sector [44][45] Other Important Information - The company repurchased a record $40 million in stock during the fourth quarter, totaling $69 million for fiscal 2025 [4][12] - Enerpac's net debt was reported at $38 million, with a net debt-to-adjusted EBITDA ratio of 0.3 times, indicating strong financial flexibility [12][13] - The company has a new share repurchase authorization of $200 million, reflecting confidence in its ability to create shareholder value [12][70] Q&A Session Summary Question: Insights on the EMEA market's performance - Management noted that the EMEA region's weakness is primarily due to challenges in Central and Southern Europe, compounded by a tough year-over-year comparison with a large project in the previous year [28][29] Question: E-commerce growth and global rollout - The e-commerce business has been rolled out globally, with significant investments in technology and marketing to drive growth [31] Question: DTA integration and growth opportunities - Management highlighted strong traction in the U.S. market for DTA's solutions, with robust orders and an expanding backlog [32][33] Question: Overall pipeline of opportunities entering fiscal 2026 - The company views the pipeline as similar to the previous year, with cautious optimism depending on macroeconomic conditions [42][44] Question: Outlook for Cortland Biomedical - Management remains bullish on Cortland, expecting continued strong growth and margin accretion from this segment [80]