Financial Performance - The company reported a full-year 2025 fully diluted EPS of $3.22, down from $3.86 in 2024, impacted by a $41.5 million pension settlement charge and $0.01 of restructuring charges [1] - On an adjusted basis, diluted EPS increased to $4.14 in 2025 from $3.92 in 2024, representing a 6% growth [1] - Full-year sales increased by 5.4% to $2.1 billion, with segment operating income rising by 9.6% [4][7] Growth Initiatives - Management highlighted the addition of over 35 products in 2025, expected to generate over $160 million in revenue by year three [2] - The company launched a "value acceleration office" to streamline operations using AI and process engineering [2] Cash Generation and Capital Deployment - Cash conversion was reported at 126% for the year, marking the third consecutive year above 120% [3] - The company maintained a strong balance sheet despite approximately $120 million in acquisitions and $160 million in share repurchases in 2025 [3][6] Segment Performance - Global Water Systems sales rose 6% for the year, with a 4.3% increase in the fourth quarter [10][11] - Energy Systems saw a 9% increase in fourth-quarter sales, but operating income declined due to geographic mix and tariffs [13] - Distribution segment sales increased by 2% for the year, with a significant 64% surge in operating income [14] Shareholder Returns - The company repurchased about 350,000 shares for approximately $34.3 million in the fourth quarter and raised the quarterly dividend by 5.7% [16] - The dividend increase marked the company's 34th consecutive year of dividend increases [16] 2026 Outlook - The company guided for 2026 sales between $2.17 billion and $2.24 billion, with adjusted EPS expected to be between $4.40 and $4.60, implying sales growth of around 3% and EPS growth of about 9% [7][17] - Management anticipates margin expansion across all segments, with specific growth expectations for water, energy, and distribution [18][20]