Financial Data and Key Metrics Changes - Fourth quarter sales were $511 million, an increase of 2% on a reported basis, with a 3% organic decline and a 3% contribution from M&A [12][14] - GAAP gross margins improved sequentially to 46.9%, reflecting a 40 basis point increase from the third quarter [12] - Adjusted diluted earnings per share were $2.38, up 6% from last year [13][16] - Full year net sales reached $1.9 billion, up 4% or 1% on an organic basis [16] Business Line Data and Key Metrics Changes - Detection segment saw 17% organic growth driven by strength in fixed instruments, while portable instruments also continued to grow [5][6] - Fire service organic sales declined 21% year-over-year due to market dynamics and funding delays [6][14] - Industrial PPE organic sales were up 1%, with fall protection moderating from previous quarters [6][14] Market Data and Key Metrics Changes - The Americas segment sales declined 1% year-over-year on a reported basis, with a 3% organic decline [14] - International segment sales increased by 8% year-over-year on a reported basis, with a 6% contribution from M&A [15] - Overall backlog remains healthy and consistent with historical levels, with a solid commercial pipeline [7] Company Strategy and Development Direction - The company executed its Accelerate strategy, focusing on serving customers and protecting workers [4] - Key strategic growth accelerators included detection and fall protection, with detection now representing 41% of sales [9][10] - The company plans to leverage investments in energy and industrial markets for growth in 2026 [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline of opportunities in the fire service and energy sectors for 2026 [11][20] - The company anticipates mid-single-digit full-year organic growth, with M&A contributing approximately 1 percentage point to revenue growth [20] - Management acknowledged ongoing uncertainty and volatility but remains optimistic about navigating macro challenges [21] Other Important Information - Free cash flow for the fourth quarter was $106 million, marking a 122% conversion rate [17] - The company returned $61 million to shareholders through dividends and share repurchases [18] - Net debt at year-end totaled $416 million, down $43 million sequentially [19] Q&A Session Summary Question: Regarding detection growth and large orders - Management indicated that strong growth in detection was driven by large orders, with underlying demand remaining strong across regions [27][28] Question: Fire service cadence outlook - Management expects most delayed orders to materialize in the first half of the year, with a return to a more standard demand cycle thereafter [29][30] Question: Detection growth outlook for 2026 - Management anticipates mid-single-digit revenue growth for detection in 2026, despite tough comparisons from the previous year [38][39] Question: Margin outlook for 2026 - Management aims for margin recovery and expects to return to 30% incremental margin targets by the end of the year [40][42] Question: Infrastructure and project activity - Management noted that investment activity in energy and chemicals is expected to continue, with improvements anticipated in various regions [51][52] Question: Connectivity expansion across product lines - Management is focused on expanding connectivity in their product lines, starting with detection and portable solutions [80][81]

Financial Data and Key Metrics Changes - Fourth quarter sales were $511 million, an increase of 2% on a reported basis, while organic sales declined by 3% [13][14] - GAAP gross margins improved sequentially to 46.9%, reflecting a 40 basis point increase from the third quarter [13] - Adjusted diluted earnings per share were $2.38, up 6% from the previous year [14][17] - Full year net sales reached $1.9 billion, up 4% on a reported basis and 1% on an organic basis [17][18] - Free cash flow for the fourth quarter was $106 million, marking a 13% increase compared to the previous year [18] Business Line Data and Key Metrics Changes - Detection segment saw 17% organic growth, driven by strong performance in fixed detection [5][6] - Fire service organic sales declined by 21% year-over-year due to market dynamics and funding issues [6][15] - Industrial PPE organic sales increased by 1%, with fall protection moderating from previous quarters [6][15] - M&C Tech Group acquisition contributed $15 million to quarterly sales [5][6] Market Data and Key Metrics Changes - The Americas segment reported a 1% decline in sales year-over-year, with a 3% organic decline [15] - International segment sales increased by 8% year-over-year, with a 6% contribution from M&C and a 5% tailwind from FX [16] - Overall backlog remains healthy and consistent with historical levels, with a solid commercial pipeline [8] Company Strategy and Development Direction - The company executed its "Accelerate" strategy, focusing on serving customers and protecting workers [4][10] - Strategic priorities for 2026 include driving profitable growth and extending market leadership [23] - The company plans to leverage investments in detection and fall protection as key growth drivers [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline of opportunities in the fire service and energy sectors for 2026 [12][21] - The company anticipates mid-single-digit full-year organic growth, with M&C contributing approximately 1 percentage point to revenue growth [20][21] - Management acknowledged ongoing uncertainty and volatility but remains optimistic about navigating macro challenges [22] Other Important Information - The company returned $61 million to shareholders through dividends and share repurchases [18] - Capital deployment for the year totaled approximately $420 million, including investments in the M&C acquisition and capital expenditures [19] - The company maintained a strong balance sheet with net debt totaling $416 million and ample liquidity of $1.2 billion [20] Q&A Session Summary Question: Detection segment performance and growth expectations - Management noted that strong performance in detection was driven by large orders, with expectations for mid-single-digit revenue growth in 2026 despite tough comparisons [28][39] Question: Fire service market dynamics - Management indicated that delays in fire service orders due to funding issues are expected to favorably impact the first half of the year, with a return to normal demand patterns anticipated [30][31] Question: Margin outlook and pricing strategies - Management confirmed a focus on achieving price-cost neutrality in the first half of 2026, with expectations for sequential margin improvement [41][42] Question: Competitive landscape in detection - Management highlighted the importance of customer feedback in driving product innovation and maintaining a competitive edge in the detection market [65][66]