Financial Data and Key Metrics Changes - The company reported a 3% increase in net sales for Q4 2025, reaching $1.05 billion, and a 4% increase for the full year 2025, totaling $4.7 billion [22] - Adjusted EBITDA for 2025 increased by 10% year-over-year to $414.2 million, with an adjusted EBITDA margin improvement of 50 basis points to 8.8% [14][31] - The net income attributable to the company for fiscal 2025 rose to $151.8 million from $123.6 million in fiscal 2024 [30] Business Line Data and Key Metrics Changes - Organic daily sales grew by 2% in Q4 2025 and 1% for the full year, driven by strong performance in the maintenance end market [23][12] - Agronomic products saw an 11% increase in organic daily sales for Q4 and a 7% increase for the full year, largely due to strong demand for ice melt products [24] - Landscaping products experienced a 1% decline in organic daily sales for both Q4 and the full year, attributed to weaker demand in new residential construction [25] Market Data and Key Metrics Changes - Seven out of nine regions achieved positive organic daily sales growth in Q4, with notable growth in the Midwest markets [25] - The company anticipates a decline in new residential construction, which represents 20% of sales, due to continued elevated interest rates and lower consumer confidence [40] - The maintenance end market, representing 36% of sales, is expected to continue growing steadily in 2026 [42] Company Strategy and Development Direction - The company aims to leverage its scale and resources to deliver superior value to customers and suppliers while focusing on organic growth and acquisitions [9][10] - The acquisition strategy remains a key focus, with eight companies added in 2025 and a robust pipeline for future acquisitions [20][12] - The company plans to continue improving productivity and addressing underperforming branches to enhance operating leverage [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive sales volume growth in 2026, supported by anticipated pricing increases for the first time since 2022 [40] - The company expects to face challenges from a slow sales period in December 2026 due to an extra week of sales, which may negatively impact EBITDA by $4 million to $5 million [43] - Overall, management remains optimistic about the long-term fundamentals of the repair and upgrade market despite current uncertainties [41] Other Important Information - The company completed 20 branch consolidations and closures in Q4 2025 to optimize its branch network and reduce costs [18] - The effective tax rate for fiscal 2025 was 22.5%, with expectations for 2026 to be between 25% and 26% [30] - The company repurchased 322,000 shares for $40 million in Q4 and 817,000 shares for $97.7 million for the full year [31] Q&A Session Summary Question: Comments on the year-end results and EBITDA contribution margins - Management acknowledged the strong EBITDA contribution margins achieved with modest organic growth and expects similar performance in 2026 [46][47] Question: Key levers for 2026 and potential cost offsets - Management highlighted improvements from focus branches and the impact of new distribution centers as key levers for 2026, while noting some initial dilutive effects from new DCs [49][50] Question: First quarter outlook and organic growth expectations - Management expects balanced growth throughout the year, with a reasonable start to 2026 despite some weather impacts in February [54] Question: Share gains and competitive environment - Management expressed confidence in gaining market share, particularly among small to mid-sized customers, while noting the competitive nature of the market [56][57] Question: Operating leverage benefits from initiatives - Management anticipates continued contributions from focus branches and productivity improvements, with no significant branch closures planned for 2026 [61] Question: Private label growth opportunities - Management targets a long-term goal of 25%-30% for private label sales, with steady growth expected in the coming years [62]