Core Insights - The company reported a Q4 adjusted EBITDA margin of 20.8% and adjusted diluted EPS of $0.69, with a year-over-year margin decline attributed to lower test and measurement volume and higher operating expenses [1] - The company experienced stable to improving trends across most end markets, with adjusted EBITDA and adjusted EPS at or above the high end of guidance ranges, and a robust free cash flow conversion of 117% for the full year [2] - The company anticipates 2025 to be a pivotal year, focusing on long-term strategy, innovation, and culture enhancement post-separation, with Q4 revenue of $555 million, reflecting a 1% year-over-year increase [3] Financial Performance - Q4 revenue was $555 million, exceeding guidance, with a 1% year-over-year increase and a 5% sequential growth [4][3] - The company recorded a $1.4 billion non-cash goodwill impairment related to the Elektro-Automatik acquisition due to weakened EV demand and industry forecasts [6][9] - Free cash flow for Q4 was $92 million, with a full-year conversion rate of 117%, and the company ended the quarter with $319 million in cash and 1.9x net leverage [7][8] Guidance and Outlook - For 2026, the company guided revenue of $2.1 to $2.2 billion, an adjusted EBITDA margin of 18% to 20%, and adjusted EPS of $2.22 to $2.42, noting near-term margin pressure from structural costs and increased reinvestment [5][22] - The first quarter of 2026 is expected to see revenue between $508 million and $522 million, representing 5% to 8% year-over-year growth [18] - The company expects a sequential quarterly revenue increase throughout 2026, with adjusted EBITDA margin reflecting a year-over-year decline due to structural cost changes post-spin [18] Strategic Initiatives - The company is focusing on three strategic pillars: operating discipline through the Ralliant Business System, deepening market positions, and expanding in growth vectors such as defense, energy, and electronics [13] - Organic reinvestment is prioritized, with CapEx expected to be 2%-3% of revenue in 2026, up from about 2% historically [14] - The company has authorized a quarterly cash dividend of $0.05 per share and has a $200 million share repurchase authorization remaining [15] Segment Performance - In Q4, organic revenue was flat year-over-year, with pricing actions and healthy demand in Sensors and Safety Systems offset by lower test and measurement volume [11] - The Sensors and Safety Systems segment saw a 6% year-over-year revenue increase, while the Test and Measurement segment experienced a 6% year-over-year decline [16]