Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue of $884.2 million and adjusted EBITDA of $168.2 million, despite a challenging macroeconomic environment with sustained high interest rates [5][6] - In Q4 2025, consolidated revenue was $226.3 million, a decline of 1.9% compared to the prior year quarter, with the self-storage business down 0.4% and new construction down 8.1% [15][16] - Adjusted EBITDA for Q4 was $37.2 million, up 7.5% year-over-year, resulting in an adjusted EBITDA margin of 16.4%, an increase of approximately 140 basis points from the prior year [17][18] Business Line Data and Key Metrics Changes - The self-storage segment saw a revenue decline of 0.4% in Q4, while R3 revenue increased by 12.7%, driven by door replacement and renovation activity [15][16] - The international segment's revenue increased to $26 million, up 33.3% year-over-year, attributed to growth in new construction and market share gains [16] - The commercial and other segment experienced a revenue decrease of 5%, primarily due to softness in demand for commercial sheet doors, although rolling steel and TMC showed strength [16] Market Data and Key Metrics Changes - The company anticipates continued constraints in the North American market, particularly in new construction, for 2026, with organic self-storage revenue expected to decline mid-single digits [20][21] - The international market is expected to see high single-digit revenue growth in 2026, reflecting positive foreign exchange rates and market share gains [20] Company Strategy and Development Direction - The company aims to penetrate the self-storage market further, increase its share in the commercial market, drive adoption of access control technology, and pursue strategic acquisitions [8][9] - The acquisition of Kiwi II Construction is expected to enhance the company's exterior solutions offering and design build capabilities, complementing its existing businesses [9][10] - The company is focused on leveraging its differentiated R3 platform to meet renovation needs, as a significant portion of U.S. facilities are over 20 years old [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for self-storage solutions, citing sustained high occupancy rates and the potential recovery of the housing market [14][24] - The company remains committed to executing its strategy despite near-term challenges, emphasizing the importance of focusing on controllable factors [24] Other Important Information - The company completed a voluntary prepayment of $40 million on its first lien term loan and repurchased 1.9 million shares for $16 million throughout the year [6][7] - The company ended the year with $260.5 million in total liquidity and a net leverage of 2.1 times, with expectations to remain within the target range of 2 to 3 times post-acquisition [19][20] Q&A Session Summary Question: How does your visibility today compare to historic averages? - Management indicated that visibility remains similar to historical averages, with a 2-3 quarter outlook based on current backlog [29] Question: What key metrics are your REIT customers looking for to invest in new capacity? - The primary driver for self-storage investment is housing mobility, which is currently subdued due to high interest rates [32] Question: Can you provide more color on the headwind from the higher international mix in Q4? - Management noted that while international revenue grew, its EBITDA margins are lower than North America, contributing to margin pressure [38][39] Question: What are the assumptions for new versus R3 on the self-storage side? - The organic decline in the core business is primarily driven by new construction in North America, which is expected to continue impacting revenue [47] Question: What is the expected contribution from the Nok product line? - Management remains optimistic about Nok, anticipating significant growth as they approach the break-even threshold of 500,000 units [72]