Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $373.7 million, down 3% from Q4 2024 [9] - Gross profit for Q4 2025 was $85 million, compared to $91.8 million in Q4 2024, with a gross margin of 22.7%, down 110 basis points [9] - SG&A expenses for Q4 2025 were $58.3 million, up 9.3% from Q4 2024 [10] - Adjusted EBITDA for Q4 2025 was $44.8 million, or 12% of net sales, down from $51.8 million, or 13.4% of net sales in Q4 2024 [11] - Adjusted earnings per share for Q4 2025 were $1.70, compared to $2.39 in Q4 2024 [11] Business Line Data and Key Metrics Changes - Industrial Equipment Division net sales for Q4 2025 were $234.9 million, an increase of 4.2% compared to Q4 2024, with adjusted EBITDA of $41.5 million, or 17.7% of net sales [12] - Vegetation Management Division net sales for Q4 2025 were $138.7 million, a decrease of 13.2% compared to Q4 2024, with adjusted EBITDA of $3.2 million, or 2.3% of net sales [13] Market Data and Key Metrics Changes - The Industrial Equipment Division represented 59% of total net sales, while the Vegetation Management Division represented 41% [20][23] - Net orders in the Industrial Equipment Division were up 21% year-over-year, while net orders in the Vegetation Management Division were down 3% [19][23] Company Strategy and Development Direction - The company is focusing on four strategic pillars: People and culture, Commercial excellence, Operational excellence, and Capital deployment [25] - The company has completed the expansion of its manufacturing facility in France, nearly doubling its size to support growth in Western Europe [25] - The company is pursuing tuck-in acquisitions, with a robust M&A pipeline, focusing on businesses with similar sales channels and product categories [52][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction and growth potential over the next three to five years [8] - The company anticipates a slowdown in growth rates for the Industrial Division in 2026, expecting flattish to low to mid-single-digit growth [32] - Management noted that the Vegetation Management Division is expected to stabilize and improve in 2026, with a goal to return to adjusted operating margins of around 15% in the long term [50][64] Other Important Information - The company recognized $7.3 million in restructuring expenses in Q4 2025, which are treated as adjustments for non-GAAP measures [11] - The company has approved a 13.3% increase in its quarterly dividend to $0.34 per share [17] Q&A Session Summary Question: What are the growth expectations for the Industrial Division in 2026? - Management expects flattish to low to mid-single-digit growth in 2026, with a focus on quality of earnings rather than chasing low-margin sales [32][33] Question: Can you provide details on the Petersen acquisition? - The Petersen acquisition is expected to be accretive and is in a growth end market, with management planning to make investments to drive synergies [36][37] Question: How do you expect Vegetation Management margins to progress in 2026? - Management anticipates margin improvement in Q1 2026, aiming to return to adjusted operating margins of around 8% by mid-2026 [50][64] Question: What is the current state of the M&A pipeline? - The M&A pipeline is robust, focusing on tuck-in acquisitions primarily in the industrial space, with a preference for businesses close to the company's core operations [52][53]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $373.7 million, down 3% from Q4 2024 [7] - Gross profit for Q4 2025 was $85 million, compared to $91.8 million in Q4 2024, with a gross margin of 22.7%, down 110 basis points [7][8] - SG&A expenses for Q4 2025 were $58.3 million, up 9.3% from Q4 2024 [9] - Adjusted EBITDA for Q4 2025 was $44.8 million, or 12% of net sales, compared to $51.8 million, or 13.4% of net sales, in Q4 2024 [10] - Adjusted earnings per share for Q4 2025 were $1.70, down from $2.39 in Q4 2024 [10] Business Line Data and Key Metrics Changes - Industrial Equipment Division net sales for Q4 2025 were $234.9 million, an increase of 4.2% compared to Q4 2024, with adjusted EBITDA of $41.5 million or 17.7% of net sales [11] - Vegetation Management Division net sales for Q4 2025 were $138.7 million, a decrease of 13.2% compared to Q4 2024, with adjusted EBITDA of $3.2 million or 2.3% of net sales [12] Market Data and Key Metrics Changes - The Industrial Equipment Division represented 59% of total net sales, while the Vegetation Management Division represented 41% [19][21] - Net orders in the Industrial Equipment Division were up 21% year-over-year, while net orders in the Vegetation Management Division were down 3% [18][21] Company Strategy and Development Direction - The company is focusing on four strategic pillars: People and culture, Commercial excellence, Operational excellence, and Capital deployment [24] - The company has completed the expansion of its manufacturing facility in France, nearly doubling its size to support growth in Western Europe [24] - The company is pursuing tuck-in acquisitions, with the recent acquisition of Petersen Industries seen as a positive addition to its portfolio [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction over the next three to five years, despite challenges in the current operating environment [6] - The company anticipates a slowdown in growth rates for the Industrial Division in 2026, expecting flattish to low to mid-single-digit growth [31] - Management expects to see improvements in the Vegetation Management Division as production efficiencies are realized [50] Other Important Information - The company approved a 13.3% increase in its quarterly dividend to $0.34 per share [16] - Cash provided by operating activities for FY 2025 was $177.5 million, down from $209.8 million in FY 2024 [13] Q&A Session Summary Question: Will growth rates slow down in the Industrial Division? - Management expects flattish to low to mid-single-digit growth in 2026, with a focus on quality of earnings rather than chasing low-margin sales [31][32] Question: What about the Petersen acquisition? - Petersen is expected to be accretive and is in a growth end market, with management planning to make investments to drive synergies [35][36] Question: How will Vegetation Management margins progress in 2026? - Management anticipates sequential improvement in margins from Q4 2025 to Q1 2026, aiming to return to at least 8% adjusted operating margins in the longer term [50][51] Question: What is the M&A pipeline looking like? - The company is focused on tuck-in acquisitions, primarily in the industrial space, with a robust pipeline being developed [53]