Financial Data and Key Metrics Changes - For fiscal year 2025, total sales reached an all-time high of $3.7 billion, with an operating profit margin of 15.7% and earnings per share of $3.68, which was at the higher end of the guidance range [5][16][18] - In Q4 2025, sales increased by 5% year over year to $981 million, with adjusted EPS of $1.03, up approximately 10% year over year [11][18] - Operating margin for the quarter was a record 16.4%, up 10 basis points from the prior year [18][22] Business Line Data and Key Metrics Changes - **Mobile Solutions**: Total sales were $588 million, a 2% increase year over year. Aftermarket sales were $468 million, up 3%, while off-road sales increased by 5% [13][14] - **Industrial Solutions**: Sales rose 8% to $310 million, with IFS sales growing 11% to $262 million [15] - **Life Sciences**: Sales increased by 14% to $82 million, driven by strong growth in food and beverage and disk drive segments [15][22] Market Data and Key Metrics Changes - In China, sales grew 14% year over year, marking the fourth consecutive quarter of growth, with both first fit and aftermarket sales increasing [14] - Aerospace and defense sales decreased by 6% to $47 million due to a decline in defense sales following the completion of large projects [15] Company Strategy and Development Direction - The company is focused on optimizing its cost structure while investing in growth areas such as solvent recovery and new disk drive technologies [12][29] - The strategy includes disciplined growth investments and maintaining a strong balance sheet to support potential M&A opportunities [29][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro uncertainties and cyclical headwinds, with expectations for another record year in fiscal 2026, projecting total sales of $3.8 billion [16][27] - The company anticipates an incremental margin of approximately 40% and a continued focus on margin expansion despite challenging market conditions [27][28] Other Important Information - The company returned $465 million to shareholders through share repurchases and increased dividends by 11% [5][16] - The company is committed to maintaining its position in the S&P high yield dividend aristocrat index, with a forecasted repurchase of 2% to 3% of outstanding shares in fiscal 2026 [30][86] Q&A Session Summary Question: When did agricultural orders bottom for your team? - Management indicated that agricultural orders likely bottomed within the quarter, with slight upticks observed, but not significant growth expected in the near term [35] Question: What is the outlook for bioprocessing solutions? - Management noted that while traditional life sciences businesses are performing well, the upstream bioprocessing segment remains muted, with expectations for growth more likely in fiscal 2027 [38] Question: How is the first fit versus aftermarket revenue growth expected to trend? - Management expects first fit sales to rebound, particularly in the U.S. and Europe, while aftermarket sales are anticipated to grow due to continued market share gains [39][41] Question: What is the outlook for the power generation super cycle? - Management confirmed that the power generation business remains strong, with no signs of cooling in the super cycle, and backlog coverage is at its longest [95] Question: How does the company view its M&A pipeline? - Management expressed a strong appetite for M&A, with a good pipeline of opportunities, particularly in life sciences and industrial businesses [86]

Financial Data and Key Metrics Changes - For fiscal year 2025, total sales reached an all-time high of $3,700,000,000, with an operating profit margin of 15.7% and earnings per share of $3.68 [5][16][18] - In Q4 FY 2025, sales increased 5% year over year to $981,000,000, with adjusted EPS of $1.03, up approximately 10% year over year [11][18] - Operating margin for the quarter was a record 16.4%, up 10 basis points from the prior year [18][22] Business Line Data and Key Metrics Changes - **Mobile Solutions**: Total sales were $588,000,000, a 2% increase year over year, with aftermarket sales up 3% to $468,000,000 [13][14] - **Industrial Solutions**: Sales rose 8% to $310,000,000, with IFS sales growing 11% to $262,000,000 [15] - **Life Sciences**: Sales increased 14% to $82,000,000, driven by strong growth in food and beverage and disk drive segments [15] Market Data and Key Metrics Changes - In China, sales grew 14% year over year, marking the fourth consecutive quarter of growth [14] - Aerospace and defense sales decreased by 6% due to a decline in defense sales following the completion of large projects [15] Company Strategy and Development Direction - The company is focused on optimizing its cost structure while investing in growth areas such as solvent recovery and new disk drive technologies [12][29] - The strategy includes disciplined investments in R&D and capital expenditures, with a commitment to M&A opportunities primarily in life sciences and industrial businesses [29][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro uncertainties and cyclical headwinds, with expectations for another record year in fiscal 2026 [5][16] - The company forecasts total sales of $3,800,000,000 for fiscal 2026, with an operating margin target of 16.4% [16][27] Other Important Information - The company returned $465,000,000 to shareholders through share repurchases and increased dividends by 11% [5][16] - Cash conversion was strong at 123%, with gross margin at 34.8%, down 140 basis points from the previous year due to tariff-related inflation [19][20] Q&A Session Summary Question: When did agricultural orders bottom for your team? - Management indicated that agricultural orders bottomed within the quarter, with slight upticks but not significant growth expected in the early part of fiscal 2026 [35] Question: What is the outlook for bioprocessing solutions? - Management noted that traditional life sciences businesses are performing well, but upstream bioprocessing remains muted, with growth expected more in fiscal 2027 [38] Question: How is the aftermarket business performing? - The aftermarket business is expected to grow, particularly in the independent channel, with share gains factored into the guidance [92] Question: What is the outlook for the power generation super cycle? - Management confirmed that the power generation business is full, with no signs of cooling in the super cycle, and they are executing well on projects [95] Question: How does the company view M&A opportunities? - The company maintains an appetite for M&A, with a strong balance sheet and a good pipeline of strategic opportunities [85][86]