Financial Performance - Adjusted EBITDA for Q4 2025 was $210 million, an increase from $186 million year-over-year, with full-year adjusted EBITDA totaling $808 million, reflecting a 17% year-over-year growth [1][3] - Net income for Q4 2025 was $79 million, a significant improvement from a net loss of $14 million in Q4 2024, attributed to higher operating earnings and lower interest costs [1][4] - Full-year net income reached $277 million, up $266 million year-over-year, with adjusted net income at $398 million and adjusted EPS at $1.19 [1][7] Revenue Growth - Q4 2025 revenue was reported at $1.6 billion, up 13.5% from $1.4 billion in the prior-year quarter, with full-year revenue increasing by 15.8% compared to 2024, primarily driven by organic growth [2][4] - The company achieved a revenue growth of 16% year-over-year, supported by robust demand and high-quality execution [3][4] Free Cash Flow - Free cash flow rebounded to $209 million for 2025, including $308 million in Q4, compared to a cash use of $45 million in 2024, indicating a 75% free cash flow conversion on net income [8][9] - Management expects free cash flow to grow again in 2026, targeting an 80%-100% conversion rate over time [9][20] 2026 Guidance - For 2026, the company provided revenue guidance of $6.275 billion to $6.425 billion, with adjusted EBITDA expected between $870 million and $905 million, implying about 14% margins [5][18] - Adjusted EPS guidance for 2026 is set at $1.35 to $1.45, compared to $1.19 in 2025, with free cash flow expected to be between $270 million and $300 million [19][20] Segment Performance - Engine Services revenue grew to $5.35 billion in 2025, up 15.3% year-over-year, with adjusted EBITDA increasing by 15.7% [15] - Component Repair Services (CRS) revenue increased by 19.6% to $709 million, with adjusted EBITDA growing by 31% and margins improving by 250 basis points year-over-year [16] Operational Developments - The company ramped up its LEAP engine program significantly, inducting 60 LEAP engines in 2025 compared to 10 in 2024, with second-half LEAP revenues being 2.5 times that of the first half [11][12] - Management is restructuring contracts to eliminate $300 million to $400 million of low-margin pass-through revenue, which is expected to enhance reported margins [14][16] Challenges and Headwinds - Near-term headwinds include a fire at the Phoenix facility and a U.S. government shutdown, which are expected to impact component repair services and military-related activities [4][17]