Financial Data and Key Metrics Changes - For Q4 2025, revenue was $171.2 million, down 22.9% year-over-year, reflecting a strategic decision to reduce production [5] - Full-year 2025 revenue was $790.3 million, down 37.2% from 2024, with gross profit at $120.4 million or 15.2% of sales [6] - Diluted EPS for Q4 was $0.29 per share, with net income for the full year at $23 million or $1.98 per diluted share [6] Business Line Data and Key Metrics Changes - The company strategically decreased production to normalize distributor inventories, which has now returned to historical levels, allowing for improved visibility into retail demand [6][9] - SG&A expenses increased year-over-year due to one-time expenses related to a voluntary retirement program and transaction costs from the OMARS acquisition [6][7] Market Data and Key Metrics Changes - Domestic market conditions are improving with normalized distributor inventory and steadier retail demand as the company enters 2026 [9] - The export business remains strong, with growing demand in international markets such as Australia, Japan, Mexico, and Indonesia [9] Company Strategy and Development Direction - The acquisition of OMARS is a key part of the company's strategy to expand its European footprint and capitalize on strong regional demand for heavy-duty products [3][10] - The company plans to increase production levels in response to improved demand and is investing in expanding its manufacturing capabilities, including a significant project at the Ooltewah facility [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of retail demand and production levels, expecting revenues between $850 million and $900 million for 2026 [13][14] - The company anticipates gross margins returning to historical levels in the mid-13% range as product mix normalizes [14] Other Important Information - The company has maintained a consistent quarterly dividend, increasing it by 5% to $0.21 per share, and has reduced debt to $20 million as of January 2026 [12][13] - A robust pipeline of military RFQs is expected to provide significant long-term growth opportunities, with over $150 million in military commitments secured [11] Q&A Session Summary Question: Understanding margin expectations - The company believes gross margins are normalizing and may be better than pre-COVID levels, with expectations to return to mid-13% range [20][21] Question: Impact of cost reductions on margins - Cost reductions primarily involved hourly employees, and as production ramps up, some employees will be added back to support operations [22] Question: Confidence in 2026 outlook compared to previous year - Management expressed higher confidence in the 2026 outlook due to improved data analysis and normalized distributor inventory [24][25] Question: Mix between chassis and tow sales - The mix is returning to a normalized level, but it is not a one-to-one ratio as some distributors provide their own chassis [28][29] Question: Accretion from OMARS acquisition - The OMARS acquisition is expected to be accretive in the first year, with additional long-term synergies anticipated as integration progresses [30][31]