Financial Data and Key Metrics Changes - In Q4 2025, revenues increased to $437 million from $403 million in Q3, with adjusted EBITDA rising to $61 million and an adjusted EBITDA margin of 14%, compared to $41 million and 10% in Q3 [24][25] - For the full year 2025, revenues totaled $1.94 billion, with adjusted EBITDA of $310 million and an adjusted EBITDA margin of 16% [24] - Free cash flow improved to $14 million in Q4 from -$29 million in Q3, totaling $25 million for the full year 2025 [24][25] Business Line Data and Key Metrics Changes - Stimulation services revenues rose to $384 million in Q4 from $343 million in Q3, with adjusted EBITDA increasing to $33 million and margins improving to 8.7% from 5.7% [25][26] - Proppant production segment revenues surged to $115 million in Q4, up from $76 million in Q3, with adjusted EBITDA doubling to $16 million and margins increasing to 14% from 10.5% [26][27] - Manufacturing segment revenues decreased slightly to $43 million in Q4 from $48 million in Q3, with adjusted EBITDA remaining steady at $4 million [28] Market Data and Key Metrics Changes - The company noted that the completions industry faced challenges in 2025 due to tariff-driven economic uncertainty and OPEC's supply increases, which affected commodity prices and operator activity levels [6][7] - Despite these challenges, the company highlighted a favorable outlook for North American onshore activity, with expectations for increased operator activity to combat natural production declines [8][9] Company Strategy and Development Direction - The company is focused on a $100 million cost optimization program targeting annualized savings, with significant progress already made in labor, non-labor, and capital expenditure efficiencies [10][11][12] - The introduction of the Machina technology platform aims to enhance well optimization and operational efficiency, integrating real-time data and AI-driven decision-making into the completion lifecycle [14][15][23] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2026, citing improved operational momentum and a tightening calendar despite weather-related disruptions in early Q1 [10][19] - The ongoing conflict in the Middle East is expected to impact supply-demand balances, potentially leading to higher oil prices, which could benefit the company [8][9] Other Important Information - The company reported total cash and cash equivalents of approximately $23 million as of December 31, 2025, with total liquidity of approximately $152 million [31] - The company has made amendments to its credit facility to enhance liquidity and flexibility, including reducing amortization payments and extending maturity dates [32][33] Q&A Session Summary Question: Inquiry about new technology rollout and customer education - Management explained that the new technology is installed on every fleet and allows real-time data integration for well optimization, with a focus on increasing the number of open perforations [37][38] Question: Expectations for Q1 performance compared to Q4 - Management indicated that Q1 results are expected to be softer than Q4 due to January disruptions, but operational momentum is building, suggesting potential improvement in Q2 [42][63] Question: Discussion on market activity and operator sentiment - Management noted an increase in discussions with operators and a potential uptick in activity, particularly regarding DUCs being pulled forward, although it remains too early to predict a material increase in rig count [50][51] Question: Clarification on proppant segment demand and operational challenges - Management acknowledged that operational challenges, particularly weather-related disruptions, impacted the proppant segment, but they expect to see improvements as conditions normalize [66]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $18.2 million or $0.83 per diluted share, compared to $8.9 million or $0.41 per diluted share in Q4 2024 [17] - Adjusted net income for Q4 2025 was $23 million or $1.05 per diluted share, up from $12 million or $0.55 per diluted share in 2024 [18] - Adjusted EBITDA for the full year 2025 was $50.8 million, despite a 5% decline in net sales [11] Business Line Data and Key Metrics Changes - U.S. segment sales decreased 5.5% to $185.3 million, with kitchenware and home solutions seeing declines, partially offset by an increase in tableware [19] - International segment sales decreased 2.3% to $18.8 million, with a 6.8% decline when excluding foreign exchange impacts [19] - The Dolly brand grew to approximately $18 million for the year, an increase of over 150% [11] Market Data and Key Metrics Changes - Gross margin increased to 38.6% from 37.7%, with U.S. segment gross margin rising to 38.8% from 37.6% [20] - International segment gross margin decreased to 36.8% from 38.6%, driven by higher customer support spending [20] Company Strategy and Development Direction - The company is focused on recovering sustainable top-line growth and driving volume through existing customer relationships and successful product lines [15] - The relocation of the East Coast distribution center to Hagerstown, Maryland, is expected to enhance long-term efficiency and reduce future distribution expenses [13][14] - The company is committed to completing Project Concord and realizing its full benefits, despite some delays [12] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenges faced in 2025 due to tariffs and retail disruptions but expressed pride in the team's performance [4] - The company expects a normalization of seasonality in 2026, with the full impact of pricing increases felt in the upcoming year [27] - Management is optimistic about growth in the Dolly brand and food service initiatives, despite challenges in the end market [28][29] Other Important Information - Selling, general, and administrative expenses decreased by 12% to $38 million in Q4, reflecting lower employee expenses [21] - The company’s liquidity at year-end was $76.6 million, indicating a strong balance sheet despite higher working capital needs from tariffs [22] Q&A Session Summary Question: Insights on growth building blocks for 2026 - Management expects more normal seasonality in 2026 and anticipates the full impact of pricing increases implemented in 2025 [27] Question: Retail customers' inventory willingness and sell-through data - There has been a divergence in performance across channels, with e-commerce showing strong growth [31] Question: Cash priorities and capital allocation for 2026 - The company is pursuing internal growth initiatives that are not capital intensive and plans to maintain its dividend policy [34] Question: Sustainability of SG&A cost reductions - Management indicated that the current state of SG&A costs is sustainable, with potential increases tied to growth opportunities [41] Question: Performance of brands outside of Dolly - Taylor and Farberware brands performed well, with Taylor having a particularly strong year [49] Question: Tax rate expectations for 2026 - The tax rate is expected to be in the high 20% range, influenced by international operations breaking even [63]

Financial Data and Key Metrics Changes - In 2025, the company achieved record engine shipments approaching 800 engines and over 75 megawatts of power, representing a 38% growth in megawatts shipped compared to 2024 [3] - Full-year revenue exceeded $99 million, up 43% year-over-year, with Q4 revenue approximately $34 million, reflecting a 37% increase year-over-year [3][18] - Gross margin improved to 17% in Q4, a 30-point increase year-over-year, while full-year gross margin was positive 5%, up 37 points from 2024 [18] - Total operating expenses for the full year were approximately $109 million, 32% lower than the previous year, with expectations for 2026 operating expenses to range between $65 million and $75 million [19][21] Business Line Data and Key Metrics Changes - The company secured its largest marine order to date, a 6.4-MW award from eCap Marine and Samskip, and announced a significant commercial agreement with New Flyer for 50 MW [4] - The focus on product cost reduction through negotiations, execution, and innovation is expected to enhance competitiveness and improve gross margins [8][9] Market Data and Key Metrics Changes - The majority of engine shipments were directed towards Europe and North America, with particularly strong activity in Canada [3] - The company is increasingly focused on stationary power applications, aiming to replace diesel generators and power data centers, with products generating over 100,000 hours of power [12][13] Company Strategy and Development Direction - The company aims to achieve cash flow positivity within the next two years by aligning its cost structure with market realities and expanding revenue and gross margins [4][16] - Five near-term focus areas include improving commercial terms, product cost reductions, enhancing fleet service offerings, expanding product reach, and innovating business models [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path ahead, emphasizing the importance of disciplined spending, growing top-line revenue, and maintaining financial health [22] - The company is committed to delivering fuel cell power for a sustainable planet and is focused on leveraging its installed base for enhanced fleet services [11][16] Other Important Information - The company ended the year with nearly $530 million in cash, with no bank debt and no near or mid-term financing requirements [21] - The cash usage for the full year of 2025 was down nearly 50% from 2024, indicating improved financial stability [21] Q&A Session Summary Question: On the restructuring side, what are the key drivers of the incremental cost contraction? - Management indicated that large items have been harvested, and the focus is now on driving costs out of products through innovation initiatives and manufacturing efficiencies [24][26] Question: Has the restructuring materially altered the R&D roadmap? - Management stated that the R&D focus is on extracting value from existing innovations, with a good runway of product portfolio and existing innovations to commercialize [28][30] Question: What is the duration of the New Flyer contract and how do you see it ramping? - The contract is for 500 units, with a focus on megawatts and unit volumes rather than duration, emphasizing a long-term partnership [33] Question: How much of a new product portfolio is needed to enter the stationary market? - Existing products can be configured for the stationary market, with innovations aimed at increasing performance and reducing costs [34] Question: What unique advantages do the XD and HD platforms have compared to past attempts in the stationary power market? - The company has gained clearer insights into customer needs and is focused on speed and cost, which are critical for the current market demands [46][48]

Financial Data and Key Metrics Changes - For Q4 2025, net revenue decreased by $2.7 million or 9.3% to $26.5 million compared to $29.2 million in Q4 2024, primarily due to reduced political revenue [3] - For the full year 2025, net revenue decreased by $5.8 million or 5.1% to $107.1 million compared to $112.9 million in 2024, with almost half of the decrease attributed to reduced political revenue [4] - The company recorded a non-cash impairment charge of $20.4 million in Q4 2025, leading to an operating loss of $9.5 million compared to operating income of $1 million in Q4 2024 [5] - The net loss for Q4 2025 was $6.9 million compared to net income of $1.3 million in Q4 2024 [5] - For the full year 2025, the company reported a net loss of $7.9 million compared to net income of $3.5 million in 2024 [6] Business Line Data and Key Metrics Changes - Gross political revenue for Q4 2025 was $254,000 compared to $2 million in Q4 2024, and for the full year 2025, it was $650,000 compared to $3.3 million in 2024 [4] - Total interactive revenue increased by 25.8% for Q4 2025 and by 19.1% for the full year [12] - The e-commerce platform grew by 16% year-over-year, contributing $2.5 million in local direct revenue in 2025 [18] - Revenue from hyperlocal online news sites grew by 18% year-over-year, contributing over $2.5 million in revenue [18] Market Data and Key Metrics Changes - The company anticipates a return to revenue growth, including political revenue, in the second half of 2026, with expected increases in the range of mid-single digits [12] - The second quarter of 2026 is currently pacing down mid-single digits, including political revenue [12] Company Strategy and Development Direction - The company is focusing on building digital infrastructure to support interactive orders and enhance local management teams with sales and digital campaign managers [13] - A digital transformation strategy is being implemented, emphasizing an advertiser-first approach while maintaining core radio competencies [22] - The company plans to increase marketing expenses by $1.5 million for 2026 to support digital initiatives [14] - The board of directors will continue to consider declaring special cash dividends, variable dividends, and stock buybacks in the future [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the operating environment, particularly the decline in traditional broadcast revenue, but remains optimistic about the growth potential in digital revenue [12][22] - The company is committed to improving profitability as digital initiatives enhance both local radio and interactive revenue [14] Other Important Information - The company closed on the sale of telecommunications towers on October 17, 2025, recognizing a gain of $11.6 million [8] - The company paid a quarterly dividend of $0.25 per share on December 12, 2025, and plans to continue regular quarterly cash dividends [10] - The balance sheet reflects $31.8 million in cash and short-term investments as of December 31, 2025 [11] Q&A Session Summary - There were no questions during the Q&A session [28]

Financial Data and Key Metrics Changes - The fourth quarter results included an Adjusted EBITDA loss of CAD 95.2 million, reflecting an Adjusted EBITDA margin of -20.9% and cash used in operating activities of CAD 3 million [11][12] - For the full year 2025, Adjusted EBITDA was a loss of CAD 261.4 million, representing an adjusted EBITDA margin of -12.5%, compared to a gain of CAD 22.4 million and a margin of 0.9% in 2024 [16] - The company finished the quarter with CAD 77 million in cash, CAD 195 million available under the revolving credit facility, and CAD 417 million under the Large Enterprise Tariff Loan facility [12] Business Line Data and Key Metrics Changes - Shipments in the fourth quarter were 378,000 net tons, down 31% year-over-year, largely due to the impact of U.S. tariffs [12][15] - For the full year, shipments totaled 1.7 million net tons, compared to 2 million net tons in 2024 [15] - Steel revenue for the fourth quarter was CAD 408 million, down 23.9% year-over-year, as lower shipment volumes offset higher realized prices [13] Market Data and Key Metrics Changes - The Canadian market experienced an oversupply of coil, driving domestic transaction prices as much as 40% below comparable U.S. levels [6] - Plate pricing continued to enjoy a significant premium relative to hot-rolled coil, driven by resilient demand [13] - The Canadian dollar strengthened approximately 5% over 2025, impacting financial results when converted from U.S. dollars [11] Company Strategy and Development Direction - The company is pivoting its commercial strategy towards the Canadian market, exiting blast furnace and coke oven operations, and focusing on high-value products [5][10] - A binding MOU with Hanwha Ocean Co Ltd was announced, with a potential value of CAD 250 million, indicating a strategic shift towards defense and industrial supply chains [9] - The company aims to optimize for margin quality rather than volume, reducing exposure to tariff-distorted global markets [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2025 as a challenging year due to the 50% U.S. Section 232 tariff, which dismantled the cross-border business model [18] - The company is committed to exploring product diversification initiatives to support Canadian industrial policy [19] - Management expressed confidence in the direction of the company, highlighting the foundation for long-term value creation [21] Other Important Information - The company has absorbed CAD 225 million in direct tariff costs for the full year, reflecting a structural shift in the industry [7] - Accelerated depreciation of blast furnace and basic oxygen steelmaking assets was captured in the cost of sales during the quarter [14] - The company is aware of pending litigation with U.S. Steel regarding an iron ore supply agreement [17] Q&A Session Summary Question: What are the expectations for full year shipments and their split between plate and sheet? - The company expects total shipments between 1 and 1.2 million tons for the year, with a 50/50 mix between plate and sheet products [24][25] Question: How exposed are energy costs to the current spot market? - The company generates power from its own natural gas-fired power plant and consumes power from the grid, which is subject to Ontario's spot rate pricing [26] Question: What is the current status of plate pricing in Canada? - Plate pricing is holding up better than sheet pricing, with a 15%-20% discount compared to the index, while sheet pricing is approximately 40% lower [34] Question: What are the expected milestones for the beam mill project? - The company is working on engineering, cost estimates, and timelines for the beam mill project, with a focus on supporting the Canadian market [37] Question: What is the expected CapEx for the full year? - The company does not expect any change in the total project budget for the EAF, with sustaining CapEx expected to be around CAD 80 million a year [39]

Financial Data and Key Metrics Changes - The company is focusing on protecting profitability, maximizing cash flow, and strengthening its balance sheet rather than pursuing growth for its own sake [5][6] - The annual capital budget has been right-sized to ensure the development program stays within cash flow, even in a softer price environment [6][7] - The capital budget for 2026 is nearly 50% lower than the previous year, with an estimated 65% increase in production per dollar invested [7][8] Business Line Data and Key Metrics Changes - The 2026 development plan is anchored around one drilling rig and one completion crew, allowing for the drilling of about 30 wells and bringing 36-38 wells online [6][7] - Production is averaging more than 46,000 BOE per day, which is roughly 10% above the midpoint of the 2026 guidance range [8] Market Data and Key Metrics Changes - The current market environment rewards mid-cap E&Ps for durable free cash flow, balance sheet strength, and high-quality inventory depth, rather than production growth [8][9] - The scarcity of Tier one shale inventory across the Permian Basin is increasing the strategic value of companies with significant high-return drilling inventory [18][21] Company Strategy and Development Direction - The company aims to build a resilient, valuable entity that delivers for shareholders over the long term, focusing on returns and resilience rather than headline growth [20][21] - Key priorities include protecting liquidity, moderating drilling activity, and investing in optimizing existing production [10][11] - The company is committed to generating sustainable free cash flow to strengthen the balance sheet and potentially lower the cost of capital in the future [12][20] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of return on capital employed over production growth, advocating for disciplined development to preserve high-quality inventory [9][10] - The company is positioned to thrive in the current environment, with a focus on debt reduction and improving financial footing [7][10] Other Important Information - The dividend has been suspended to increase annual liquidity by an estimated $20-$25 million, allowing for better capital deployment [6][10] - The company has more than 2,600 total drilling locations across various formations, providing over 30 years of high-return inventory [18][19] Q&A Session Summary Question: Can you provide more details on cost reduction and production optimization efforts? - Management highlighted ongoing optimization in drilling and completion processes, including faster drilling and completion times, and improvements in chemical programs and artificial lift methods [24][25] Question: What is the split of wells across development areas for 2026? - Approximately 70% of capital will be spent in the Flat Top area, with 30% in Signal Peak, primarily focused on Wolfcamp A and Lower Spraberry [28][29] Question: How does the corporate decline curve look for 2026? - The corporate decline rate is expected to decrease from 38% at the beginning of 2026 to around 36% by the end of the year, which will reduce the maintenance CapEx needed to hold production flat [36][37] Question: Is there a plan for share distributions in 2026 and 2027? - Management indicated flexibility in distribution timing, with the possibility of extending distributions into 2027 based on market conditions [45][46]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $18.2 million, or $0.83 per diluted share, compared to $8.9 million, or $0.41 per diluted share in Q4 2024 [17] - Adjusted net income for Q4 2025 was $23 million, or $1.05 per diluted share, compared to $12 million, or $0.55 per diluted share in 2024 [18] - Adjusted income from operations for Q4 2025 was $26.4 million, up from $20.2 million in 2024 [18] - Adjusted EBITDA for the full year 2025 was $50.8 million, despite a 5% decline in net sales [11] Business Line Data and Key Metrics Changes - U.S. segment sales decreased by 5.5% to $185.3 million, with kitchenware and home solutions experiencing declines, partially offset by an increase in tableware [19] - International segment sales decreased by 2.3% to $18.8 million, with a constant currency decrease of 6.8% [19] - The Dolly brand grew to approximately $18 million for the year, an increase of over 150% [11] Market Data and Key Metrics Changes - Gross margin increased to 38.6% from 37.7% year-over-year, with U.S. segment gross margin increasing to 38.8% from 37.6% [20] - International segment gross margin decreased to 36.8% from 38.6% due to higher customer support spending [20] Company Strategy and Development Direction - The company implemented price increases to offset tariff costs, which initially hurt volumes but eventually restored pricing parity [6][9] - A relocation of the East Coast distribution center to Hagerstown, Maryland, is expected to enhance long-term efficiency and reduce future distribution expenses [13][14] - The focus for 2026 is on recovering sustainable top-line growth while maintaining a lean cost structure [15] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenges faced in 2025 due to tariffs and retail disruptions but expressed pride in the team's performance [4] - The company expects a normalization of seasonality in 2026, with a focus on driving volume through existing customer relationships and successful product lines [27][15] - Management remains optimistic about the trajectory heading into 2026, particularly with the Dolly brand and food service initiatives [11][28] Other Important Information - SG&A expenses decreased by 12% to $38 million in Q4, reflecting cost discipline [10][21] - The company’s liquidity at year-end was $76.6 million, indicating a strong balance sheet despite higher working capital needs [22] Q&A Session Summary Question: Insights on growth building blocks for 2026 - Management expects more normal seasonality in 2026 and anticipates the full impact of pricing increases implemented in 2025 [27] Question: Retail customers' inventory willingness and sell-through data - There has been a divergence in performance across channels, with e-commerce showing strong growth [31] Question: Cash priorities and capital allocation for 2026 - The company is pursuing internal growth initiatives that are not capital intensive and plans to maintain its dividend policy [34] Question: Sustainability of SG&A cost reductions - Management indicated that the current state of SG&A costs is sustainable, with potential increases tied to growth opportunities [41] Question: Performance of brands outside of Dolly - Taylor and Farberware brands performed well, with Taylor having a particularly strong year [49]

Financial Data and Key Metrics Changes - In Q4 2025, revenues increased to $437 million from $403 million in Q3, with adjusted EBITDA rising to $61 million and an adjusted EBITDA margin of 14% compared to 10% in Q3 [24][25] - For the full year 2025, revenues totaled $1.94 billion, with adjusted EBITDA of $310 million and an adjusted EBITDA margin of 16% [24] - Free cash flow improved to $14 million in Q4 from -$29 million in Q3, totaling $25 million for the full year 2025 [24][31] Business Line Data and Key Metrics Changes - Stimulation services revenues rose to $384 million in Q4 from $343 million in Q3, with adjusted EBITDA increasing to $33 million and margins improving to 8.7% from 5.7% [25][26] - Proppant production segment revenues surged to $115 million in Q4 from $76 million in Q3, with adjusted EBITDA doubling to $16 million and margins increasing to 14% from 10.5% [26][27] - Manufacturing segment revenues decreased slightly to $43 million in Q4 from $48 million in Q3, with adjusted EBITDA remaining stable at $4 million [28] Market Data and Key Metrics Changes - The company noted that the completions industry faced challenges in 2025 due to tariff-driven economic uncertainty and OPEC's supply increases, which affected commodity prices and operator activity [7][8] - Despite these challenges, the North American onshore activity setup remains compelling, with expectations for increased operator activity to combat natural production declines [8][9] Company Strategy and Development Direction - The company is focused on a $100 million cost optimization program targeting annualized savings, with significant progress reported in labor, non-labor, and capital expenditure efficiencies [10][11][12] - Technology differentiation is a key focus, with the introduction of the Machina optimization suite aimed at enhancing operational efficiency and real-time decision-making [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about emerging from a challenging 2025, highlighting the strength of the business model and the benefits of vertical integration [7][9] - The recent geopolitical conflicts are expected to impact supply-demand balances, potentially leading to higher oil prices, which could benefit the company [8][9] Other Important Information - The company reported a total cash and cash equivalents of approximately $23 million as of December 31, 2025, with total liquidity at approximately $152 million [31] - The company has made amendments to its credit facility to enhance liquidity and flexibility heading into 2026 [33] Q&A Session Summary Question: Can you provide more details on the new technology and its rollout? - The technology is installed on every fleet and allows real-time data integration for well optimization, with expectations for a significant educational process for customers [37] Question: What is the expected production uplift from the new technology? - It is too early to quantify production increases, but the focus is on improving the number of open perforations [39][40] Question: How do you see Q2 performance compared to Q4? - Management indicated that Q2 is expected to perform better than Q4 based on current trends [42] Question: Are there more discussions with operators due to the situation in the Middle East? - There has been an increase in discussions and inquiries from operators, particularly regarding DUCs and existing activity [51] Question: What are the plans for utilizing spare capacity in the fleet? - The company plans to remain disciplined with fleet counts and will respond to true calls for increased activity as they arise [72][73]

Financial Data and Key Metrics Changes - For Q4 2025, net revenue decreased by $2.7 million or 9.3% to $26.5 million compared to $29.2 million last year, primarily due to reduced political revenue [3] - For the full year 2025, net revenue decreased by $5.8 million or 5.1% to $107.1 million compared to $112.9 million last year, with almost half of the decrease attributed to reduced political revenue [4] - The company recorded a non-cash impairment charge of $20.4 million in Q4 2025, leading to an operating loss of $9.5 million compared to operating income of $1 million for the same period last year [5] - The net loss for Q4 2025 was $6.9 million compared to net income of $1.3 million last year [5] - For the year ended December 31, 2025, the company reported a net loss of $7.9 million compared to net income of $3.5 million last year [6] Business Line Data and Key Metrics Changes - Gross political revenue for Q4 2025 was $254,000 compared to $2 million for the same quarter last year [3] - For the year 2025, gross political revenue was $650,000 compared to $3.3 million for 2024 [4] - Total interactive revenue increased by 25.8% for the quarter and 19.1% for the year [12] - E-commerce platform revenue grew by 16% year-over-year, contributing $2.5 million in local direct revenue [18] - Revenue from hyperlocal online news sites grew by 18% year-over-year, contributing over $2.5 million in revenue [18] Market Data and Key Metrics Changes - The company anticipates a return to revenue growth, including political revenue, in the second half of 2026, with expected increases in the range of mid-single digits [12] - The second quarter of 2026 is currently pacing down mid-single digits, including political revenue [12] Company Strategy and Development Direction - The company is focusing on building digital infrastructure to support interactive orders and enhance local management teams [13] - A digital initiative is expected to increase marketing expenses by $1.5 million for 2026, with the goal of improving profitability through digital transformation [14] - The company plans to maintain a strong balance sheet while returning value to shareholders through regular dividends and potential stock buybacks [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in transitioning from traditional broadcast revenue to digital revenue but remains optimistic about future growth [12][14] - The company is committed to an advertiser-first approach that integrates digital strategies with its core radio business [22] - Management emphasizes the importance of education and training for leadership and media advisors to adapt to changing consumer behaviors and advertising strategies [26] Other Important Information - The company recognized a gain of $11.6 million from the sale of telecommunications towers and related property [8] - The company paid a quarterly dividend of $0.25 per share on December 12, 2025, and plans to continue regular dividends in the future [10] - The company has $31.8 million in cash and short-term investments as of December 31, 2025 [11] Q&A Session Summary - There were no questions during the Q&A session [28]

Financial Data and Key Metrics Changes - Oil-Dri generated EBITDA of $22 million in Q2 fiscal 2026, consistent with the same quarter a year ago [14] - Cash flows from operating activities for the first six months of fiscal 2026 exceeded $28 million, with cash and cash equivalents at $47 million at the end of Q2 [15] - Outstanding debt was $40 million, indicating a strong cash position with more cash than debt [16] Business Line Data and Key Metrics Changes - The agriculture and horticulture products segment showed strong performance, driven by increased planted acres and new customer opportunities for Verge granules [29][30] - The consumer products division launched several new products, including an antibacterial litter and health monitoring litter, which are expected to enhance market presence [35][36] Market Data and Key Metrics Changes - The broad acre market for agriculture products is experiencing growth due to increased planted acres, while the turf and ornamental market is also seeing strong demand for engineered granules [29][30] - Renewable diesel sales faced challenges due to changes in tax incentives and feedstock sourcing, but there is potential for recovery as producers adjust [39][40] Company Strategy and Development Direction - The company is focused on long-term capital allocation to sustain high uptime and optimize capacity, rather than viewing capital spending as a discrete project [22] - Continued investment in growth and infrastructure projects is planned, with new product launches expected in the second half of the fiscal year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's response to Winter Storm Fern, highlighting the commitment to safety and customer service [12][14] - The company anticipates continued strong performance in agriculture and horticulture, with optimism about new product introductions and market expansion [31][35] Other Important Information - The company is integrating artificial intelligence into R&D to enhance product development and operational efficiency [61] - The management team emphasized the importance of maintaining a strong cash position to support strategic initiatives [16] Q&A Session Summary Question: Progress on capital expenditure for plant upgrades - The capital spending program is progressing as intended, focusing on foundational areas and ongoing improvements rather than a defined endpoint [22][23] Question: Sales increase in agriculture and horticulture products - Strong performance in both broad acre and turf markets, with expectations for continued growth driven by new customer opportunities [29][30] Question: New product introductions in the second half - Several new products are set to launch, including expansions in the Cat's Pride litter portfolio, aimed at enhancing consumer experience and e-commerce fulfillment [35][36] Question: Weakness in renewable diesel sales - Sales were impacted by changes in tax incentives and feedstock sourcing, but recovery is expected as producers adapt to new conditions [39][40] Question: Trends in manufacturing and transportation costs - Manufacturing costs have seen volatility due to operational disruptions, while transportation costs have stabilized, aided by effective logistics management [49][50] Question: Progress with Amlan and long-term sales growth - Amlan faced challenges due to a key account loss but is working to recover and broaden its customer base in high-margin markets [54][55] Question: Headwinds and tailwinds in the oil and gas situation - Increased fuel costs are providing margin support for end users, while the company has strategies in place to manage cost fluctuations effectively [56][58] Question: Use of artificial intelligence in product development - The company is thoughtfully integrating AI into R&D to drive efficiency and innovation in product offerings [61]