Financial Data and Key Metrics Changes - In Q4, the company reported a revenue increase of 14% year-over-year, excluding the deconsolidation of SCS, and an 8% increase when excluding both SCS and revenues at Bradesco [5] - Gross margin improved to 29.3% from 24.8% year-over-year, while adjusted EBITDA margin rose to 26.8% from 19.8% [5][16] - Adjusted earnings from continuing operations were $1.06 per share, up from $0.74 per share in the prior year quarter [15] Business Line Data and Key Metrics Changes - Consumer Products Q4 net sales were $126 million, essentially flat compared to the prior year, with adjusted EBITDA of $21 million and a margin of 16.6%, up from 13.6% [20] - Building Products Q4 net sales grew 25% year-over-year to $192 million, with adjusted EBITDA of $71 million, representing a margin of 37% compared to 33.6% in the prior year [21][22] Market Data and Key Metrics Changes - The company noted that volumes in the consumer segment remain closely tied to point of sale activity, with cautious consumer behavior impacting overall demand [20] - The building products segment experienced a strong seasonal quarter, with volumes up 19% both sequentially and year-over-year [21] Company Strategy and Development Direction - The company continues to leverage its business system focusing on innovation, transformation, and M&A to drive growth [5][8] - The recent acquisition of LG Manufacturing is seen as a strategic fit that complements the existing building products business and is expected to enhance margins and cash flows [9][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, citing ongoing tariff and economic uncertainties but emphasizing a strong focus on customer care and operational efficiency [12][44] - The company aims to achieve a gross margin over 30% and maintain SG&A as a percentage of sales at 20% or less in the coming years [29] Other Important Information - The company announced a quarterly dividend increase of 12% to $0.19 per share, reflecting strong earnings and a commitment to returning capital to shareholders [19] - Free cash flow for the full fiscal year totaled $159 million, representing a 103% conversion rate relative to adjusted net earnings [18] Q&A Session Summary Question: Can you break down margin growth? - Management indicated that half of the margin expansion was due to the deconsolidation of SES, with the rest driven by volume growth and product mix improvements [26][27] Question: What were the drivers for Wave's contributions? - Contributions were attributed to a mix of volume demand, project timing, and pricing, with steady performance expected moving forward [30][32] Question: What are the expectations for organic growth? - Management noted that while visibility is limited due to macroeconomic factors, they remain cautiously optimistic about organic growth in both consumer and building products [44][49] Question: How does the company approach pricing amid input cost inflation? - The company is actively working on price risk mitigation strategies and hedging to manage input cost volatility, particularly in steel [59] Question: What are the objectives for the next year? - Management emphasized a focus on long-term growth, investing in culture, automation, and strategic M&A while navigating economic uncertainties [99]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a revenue increase of 14% year-over-year, excluding the deconsolidation of SCS, and an 8% increase when excluding both SCS and revenues at Bradesco [6][15] - Gross margin improved to 29.3% from 24.8% year-over-year, while adjusted EBITDA margin rose to 26.8% from 19.8% [6][17] - Adjusted earnings from continuing operations were $1.06 per share, up from $0.74 per share in the prior year quarter [16] Business Line Data and Key Metrics Changes - Consumer Products segment reported Q4 net sales of $126 million, essentially flat compared to the prior year, with adjusted EBITDA of $21 million and a margin of 16.6% [21] - Building Products segment saw Q4 net sales grow 25% year-over-year to $192 million, with adjusted EBITDA of $71 million and a margin of 37% [22][23] Market Data and Key Metrics Changes - The company noted that volumes in the Building Products segment were up 19% both sequentially and year-over-year, indicating strong seasonal demand [22] - The consumer environment remains cautious, but the company believes its market-leading brands position it well for long-term growth as conditions normalize [21] Company Strategy and Development Direction - The company continues to leverage its business system focusing on innovation, transformation, and strategic M&A to drive growth [6][10] - The recent acquisition of LG Manufacturing is seen as a strategic fit that complements the existing building products business and is expected to enhance margins and cash flows [10][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for long-term growth despite current tariff and economic uncertainties [13][50] - The focus remains on optimizing operations and investing in future growth opportunities while managing through economic challenges [13][99] Other Important Information - The company announced a quarterly dividend increase of 12% to $0.19 per share, reflecting strong earnings and a commitment to returning capital to shareholders [20][66] - Free cash flow for the full fiscal year totaled $159 million, representing a 103% conversion rate relative to adjusted net earnings [19] Q&A Session Summary Question: Margin growth breakdown - Management indicated that half of the margin expansion was due to the deconsolidation of SES, with the rest driven by volume growth and product mix improvements [28][30] Question: Wave contributions - Contributions from Wave were attributed to a mix of volume demand and pricing, with steady performance expected moving forward [32][34] Question: Regasco revenue and EBITDA contributions - Regasco contributed approximately $16.5 million in revenue and about $2 million in EBITDA during the quarter [43] Question: Steel input costs and pricing - Management noted that steel prices have fluctuated, but efforts are in place to mitigate price risks and manage costs effectively [61] Question: Elgin acquisition details - The acquisition of Elgin is expected to create synergies in operational efficiency and customer overlap, with a focus on improving margins [51][82] Question: Tariff impacts on building products - Management acknowledged the challenges posed by tariffs but emphasized the company's strong domestic manufacturing position and ability to respond to market demands [88][92]