Core Insights - Allient reported a strong fourth-quarter performance with a 17% year-over-year revenue increase to $143.4 million, driven by industrial demand and commercial automotive shipments [1][6][4] Financial Performance - Fourth-quarter revenue rose to $143.4 million, with 15% organic growth on a constant-currency basis [1][6] - Operating cash flow reached a record $56.7 million, up 35% from the previous year, reflecting improved profitability [12] - Net income for the quarter more than doubled to $6.4 million, or $0.38 per diluted share, with adjusted EBITDA at $19 million, representing 13.3% of revenue [10][11] Demand and Market Trends - Industrial revenue grew 24% due to normalized automation orders and strong power quality demand for data centers [6][7] - Vehicle revenue increased 35%, primarily due to commercial automotive shipments linked to production timing [6][7] - Demand for power quality solutions supporting data center infrastructure remained robust, while medical demand was steady [2][4] Margin and Efficiency - Gross margin expanded 90 basis points year-over-year to 32.4% in Q4, with full-year gross margin reaching a record 32.8% [8][9] - Operating income surged 76% in Q4 to $11.4 million, attributed to higher volumes and operational efficiencies [9] Strategic Initiatives - The company is focused on expanding structural margins, strengthening the balance sheet, and positioning its portfolio around durable growth drivers [3][4] - The "Simplify to Accelerate NOW" program has driven margin expansion and deleveraging efforts [4][5] Future Outlook - Allient expects continued demand growth in data center infrastructure and defense sectors, with a backlog of approximately $233 million [15][16] - Planned capital expenditures for 2026 are projected to be between $10 million and $12 million, focusing on organic growth and customer programs [13][5]