Financial Data and Key Metrics Changes - In Q1 2025, total sales increased to $150 million, representing a 12% increase compared to the prior year period [18] - Net organic sales rose by 11.1% over the prior period [20] - Gross profit margin for Q1 2025 increased by 370 basis points compared to the prior year [20] - Adjusted EBITDA was up $10 million in Q1 2025 versus Q1 2024, with adjusted EBIT margins at 37.6% [21][25] Business Line Data and Key Metrics Changes - Commercial aftermarket sales increased by 13% in Q1 2025 versus Q1 2024 and were up 15% sequentially from Q4 2024 [19] - Total commercial OEM sales increased by 8% in Q1 2025 compared to the prior year period [19] - Defense sales saw a 30% increase, driven by strong demand across multiple platforms and new product launches [20] Market Data and Key Metrics Changes - The company expects commercial OEM markets to grow in high single digits and commercial aftermarket to grow in double digits for 2025 [24] - Defense end markets are projected to grow in high double digits, between 17% to 20% [24] Company Strategy and Development Direction - The company aims to achieve above-market growth rates by providing an entrepreneurial and collaborative environment for its business units [7] - Focus on launching new products, which is expected to contribute 1% to 3% of organic top-line growth annually [15] - Continuous improvement in margins is a priority, with a commitment to developing employee talent [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of demand across all end markets, with record bookings reported [24] - The company does not foresee any significant impact from the current tariff environment on its results [24] - The outlook for 2025 includes net sales between $482 million and $490 million, with adjusted EBITDA between $182 million and $185 million [25] Other Important Information - The company plans to close the acquisition of L and B Fans and Motors in Q3 2025, which is not included in the updated guidance [26] Q&A Session Summary Question: Are you seeing any incremental pushback on pricing from airlines in your commercial aftermarket channel? - Management indicated no pushback on pricing and noted they are actually receiving more price this year than last year [34] Question: What drove the robust growth in defense sales, and what is expected for the remainder of the year? - Management acknowledged that defense sales are typically lumpy and guided conservatively for the rest of the year, emphasizing the need to monitor the situation [47] Question: What are the key priorities for the company currently? - Management highlighted a focus on the pipeline of opportunities and talent development to support growth [56] Question: How is the company responding to potential changes in procurement regulations? - Management stated they would assess any changes once finalized but emphasized their current successful model in the defense market [66]

Financial Data and Key Metrics Changes - In Q1 2025, total sales increased to $150 million, representing a 12% increase compared to the prior year period [15] - Net organic sales increased by 11.1% over the prior period [17] - Gross profit margin for Q1 2025 increased by 370 basis points compared to the prior year period [17] - Adjusted EBITDA was up $10 million in Q1 2025 versus Q1 2024, with adjusted EBIT margins at 37.6% [18][22] Business Line Data and Key Metrics Changes - Commercial aftermarket sales increased by 13% in Q1 2025 versus Q1 2024 and were up 15% sequentially from Q4 2024 [16] - Total commercial OEM sales increased by 8% in Q1 2025 compared to the prior year period [16] - Defense sales increased by 30% due to strong demand across multiple platforms and an increase in market share from new product launches [17] Market Data and Key Metrics Changes - The company expects commercial OEM to grow in high single digits and commercial aftermarket to grow in double digits for 2025 [20] - Defense end markets are expected to grow in high double digits, between 17% to 20% [20] Company Strategy and Development Direction - The company aims to achieve above-market growth rates by providing an entrepreneurial and collaborative environment for its business units [6] - Focus on launching new products to drive organic top-line growth of 1% to 3% annually [13] - Continuous improvement in margins through strategic initiatives and price increases above inflation [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of demand across all end markets, with no degradation observed [20] - The company is ahead of its plan on value pricing and productivity initiatives, expecting to meet or exceed guidance for 2025 [20] - Management noted that the current tariff environment has had an insignificant impact on results [22] Other Important Information - The company plans to close the acquisition of L and B Fans and Motors in Q3 2025, which is not included in the current guidance [22] - Capital expenditures for the year are expected to be approximately $14 million, with an effective tax rate of around 30% [22] Q&A Session Summary Question: Are you seeing any incremental pushback on pricing from airlines in your commercial aftermarket channel? - Management noted no pushback on pricing and indicated they are actually receiving more price this year than last year [28][30] Question: What drove the robust growth in defense sales, and what is expected for the remainder of the year? - Management indicated that defense sales are typically lumpy and the strong Q1 growth is not necessarily indicative of the entire year [41] Question: Can you discuss the impact of potential procurement reforms on your business? - Management stated they would assess any changes once finalized but emphasized their current efficiency in working with government procurement [60]