Financial Data and Key Metrics Changes - In 2025, revenue increased by 8% to $280 million, driven by a 10% growth in the BDS segment, offsetting a 2% decline in the Engineering segment [19][20] - Adjusted EBITDA increased to $65.1 million, resulting in a 240 basis point improvement in the adjusted EBITDA margin to 23.2% for 2025 [21][22] - Net profit totaled $29.7 million with diluted earnings per share of $0.11, while adjusted net profit was $31.3 million with adjusted diluted EPS also at $0.11 [21][22] Business Line Data and Key Metrics Changes - Revenue from the BDS segment grew 10% to $243.5 million, with high value solutions accounting for 42% of total revenue, driven by strong demand for high value syringes [22][23] - High value solutions revenue grew 13% to $116.8 million, while revenue from other containment and delivery solutions increased 6% to $126.7 million [20][23] - The Engineering segment saw a 2% revenue decline to $36.5 million, with gross profit margin declining to 6.6% due to a higher mix of revenue from legacy projects [23][24] Market Data and Key Metrics Changes - Biologics represented 39% of BDS revenue in 2025, up from 25% in the same periods of fiscal 2024 and 2023 [15] - The company is experiencing stabilization in vial demand as destocking effects continue to ease, with a projected mid- to high single digit growth in vials for 2025 [40][41] Company Strategy and Development Direction - The company is focused on executing its multiyear investment optimization plans, enhancing its commercial strategy, and positioning itself to capitalize on long-term growth opportunities in high value solutions [29][30] - The strategic focus includes expanding capacity for high value syringes and ready-to-use cartridges, with ongoing capital investments to meet rising market demand [15][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year guidance, citing sustained momentum driven by healthy market demand and strategic investments [29][30] - The company anticipates continued strong demand due to favorable trends such as the increase in self-administration of medicine and the rise in biologics [12][30] Other Important Information - The company announced a $200 million financing to support expansion in syringe production and capacity for ready-to-use cartridges [25][50] - The updated guidance for 2025 includes revenue expectations in the range of $1.16 billion to $1.19 billion, with adjusted EBITDA between $288 million and $301.8 million [26][28] Q&A Session Summary Question: Engineering segment delays and customer decision-making - Management clarified that delays in new orders are related to customer decision-making on CapEx and are not indicative of lost negotiations [33][36] Question: Vial demand and growth expectations - Management confirmed a 3% increase in vial demand compared to the same period last year, reiterating confidence in mid- to high single digit growth for vials in 2025 [40][41] Question: Impact of tariffs on guidance - Management indicated that they have been able to offset tariff impacts through customer conversations and leveraging their global footprint [48][49] Question: Capacity expansion in Fisher's and Latina - Management confirmed that Latina is currently profitable, while Fisher's is not yet profitable but showing improvement [73][74] Question: Future growth in the Engineering segment - Management expressed confidence in returning to profitability levels seen in 2022 and 2023, with expectations for margin recovery [78][79] Question: Pricing pressure in the biopharma industry - Management noted that securing supply chains is a priority for clients, and there is less pricing pressure for high-value products [118][119]