Financial Data and Key Metrics Changes - Consolidated net sales for Q1 of fiscal 2026 increased by 4.4% to $16.4 million compared to $15.7 million for the same period last year [7] - Gross profit increased by 16.1% to $5.4 million in Q1 of fiscal 2026 compared to $4.6 million for the same period last year, with gross profit margin rising to 32.7% from 29.4% [9][10] - Sales order backlog and forward load increased more than 50% to $10.4 million as of the end of Q1 compared to $6.6 million for the same period last year [5][9] Business Line Data and Key Metrics Changes - Net sales in both enterprise and specialty markets increased compared to the same period last year, with net sales to customers outside the United States rising by 18% [8] - SG&A expenses increased to $5.6 million in Q1 of fiscal 2026, compared to $5.5 million for the same period last year, but as a percentage of net sales, it decreased to 33.8% from 34.7% [10] Market Data and Key Metrics Changes - The company experienced growth in the data center market, with significant activity and customer requests for quotes particularly noted in January [13] - The overall market improvements in the industry were reflected in the sales growth, particularly in the severe-duty market [8][16] Company Strategy and Development Direction - The company is focused on disciplined execution to drive value for customers and shareholders, with a strong emphasis on growth in targeted markets, especially the data center sector [5][14] - The strategic collaboration with Lightera is expected to enhance product offerings and generate additional revenue opportunities [17][23] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about potential sales growth for fiscal year 2026, citing increased sales order backlog and forward load as positive indicators [14][28] - The company expects the second half of fiscal 2026 to show further growth, building on the momentum from the first quarter [27] Other Important Information - The company is currently hiring in manufacturing operations to meet anticipated personnel needs for fiscal year 2026 [22] - Management noted that the collaboration with Lightera has already begun to generate more opportunities, contributing to revenue growth [23] Q&A Session Summary Question: Update on project delays - Management indicated that there are currently no significant project delays impacting results [33] Question: Backlog growth not translating into revenue growth - Management explained that backlog is a measurement at a point in time and noted that sales increased by 9.5% in total during fiscal year 2025, with strong sales in Q3 and Q4 [35]

Financial Data and Key Metrics Changes - The company ended the quarter with $818 million in liquidity and no debt, maintaining one of the strongest balance sheets in the uranium sector [4][10] - The company sold 200,000 lbs of U3O8 at $101 per pound, approximately 25% above the quarterly average price of about $80 per pound, generating over $20 million in revenue and $10 million in gross profit [4][11] - As of January 31, 2026, the company held 1,456,000 lbs of U3O8 valued at approximately $144 million, excluding additional inventory [11] Business Line Data and Key Metrics Changes - In fiscal Q2, the company produced 45,743 lbs of U3O8, with a total cost per pound of $44.14 and a cash cost per pound of $39.66 [7] - Accumulated production since the restart at Christensen Ranch reached 244,321 lbs at a total cost per pound of $37.28 and a cash cost per pound of $30.52, demonstrating operational efficiency [7] Market Data and Key Metrics Changes - The U.S. is importing over 95% of its uranium requirements, highlighting a structural supply deficit in the domestic market [24] - The company noted a broad restart of domestic uranium development activity, which has not occurred in the U.S. for over 15 years [8][9] Company Strategy and Development Direction - The company is focused on building America's first vertically integrated uranium fuel supply chain, from mining through refining and conversion, aligning with U.S. policy support for domestic fuel security [3][5] - The company is advancing its United States Uranium Refining & Conversion Corp. (UR&C) initiative to address bottlenecks in the nuclear fuel cycle, particularly in uranium conversion [12][30] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory approval process, indicating that delays are expected to be short, with approvals anticipated in days or weeks rather than months [45] - The company believes it is well-positioned for growth in the uranium market, supported by a strong balance sheet and strategic initiatives [17] Other Important Information - The company completed construction at Burke Hollow, the newest ISR uranium mine in the U.S., and is awaiting final regulatory approvals to commence operations [5][14] - The company is actively engaging with regulators to address permitting backlogs resulting from increased industry activity [9] Q&A Session Summary Question: Any subsequent sales of uranium post the quarter? - Management confirmed no additional sales beyond the reported $101 per pound during the quarter, emphasizing the strength of their unhedged strategy in a structurally deficit market [20][23] Question: Implications of Solstice's expanded capacity on UR&C strategy? - Management noted that the conversion market remains tight, with a significant bottleneck in capacity, and emphasized the need for more domestic conversion facilities [27][28] Question: What drove the production decrease quarter-over-quarter? - Management explained that production was primarily from two header houses at Christensen Ranch, with new header houses and Burke Hollow awaiting regulatory approval for increased output [34][35] Question: Timeline for regulatory approvals? - Management indicated optimism for quick approvals, with expectations of days to weeks rather than months [44][45] Question: Will the company consider providing production sales data ahead of earnings? - Management acknowledged the unique positioning of the company and indicated that as market conditions normalize, they may provide more specific sales expectations [46][48]

Financial Data and Key Metrics Changes - The company ended the quarter with $818 million in liquidity and no debt, maintaining one of the strongest balance sheets in the uranium sector [5][11] - During the quarter, the company sold 200,000 pounds of U3O8 at $101 per pound, generating over $20 million in revenue and $10 million in gross profit [12][5] - The average quarterly uranium price was approximately $80 per pound, indicating a significant premium on the sales price achieved [5][12] Business Line Data and Key Metrics Changes - In fiscal Q2, the company produced 45,743 pounds of U3O8, with a total cost per pound of $44.14 and a cash cost per pound of $39.66 [7] - Accumulated production since the restart of operations at Christensen Ranch reached 244,321 pounds, with a total cost per pound of $37.28 and a cash cost per pound of $30.52 [7][11] - The company completed construction at Burke Hollow, which is now the newest ISR uranium mine in the United States, and is awaiting final regulatory approvals to commence operations [6][14] Market Data and Key Metrics Changes - The U.S. is importing over 95% of its uranium requirements, highlighting a critical supply-demand imbalance in the domestic market [25] - The company noted a broad restart of domestic uranium development activity, which has not occurred in the U.S. for more than 15 years [9][10] Company Strategy and Development Direction - The company is focused on building America's first vertically integrated uranium fuel supply chain, from mining through refining and conversion, to address structural gaps in the U.S. nuclear fuel cycle [4][13] - The company is advancing its United States Uranium Refining & Conversion Corp. (UR&C) initiative to establish a domestic supplier for uranium conversion, which is currently a bottleneck in the nuclear fuel cycle [12][13] - The operational platform is built around scalable hub and spoke ISR operations in Wyoming and South Texas, with significant development projects underway [14][15] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the regulatory environment, indicating that approvals are expected to come in days and weeks rather than months [44][46] - The company believes it is well-positioned for growth in the uranium market, supported by a strong balance sheet and strategic alignment with U.S. policy initiatives [18][4] Other Important Information - The company is actively engaging with government officials regarding the UR&C project and has initiated a detailed siting study for potential locations across the U.S. [13] - The company is experiencing regulatory backlogs due to increased permitting activity across the sector, which is seen as a normal growing pain as the industry transitions from dormancy to expansion [10][38] Q&A Session Summary Question: Any subsequent sales of uranium post the quarter? - Management confirmed there were no additional sales beyond the reported $101 per pound during the quarter, emphasizing the strength of their unhedged strategy in a structurally deficit market [21][23] Question: Implications of Solstice's expanded capacity on UEC's strategy? - Management noted that the conversion market remains tight, and UEC's strategy to build an integrated supply chain from mining to conversion is crucial to meet increasing demand [28][30] Question: What drove the production decrease quarter-over-quarter? - Management explained that production was primarily from two header houses at Christensen Ranch, and growth will come from additional header houses and the Burke Hollow project once regulatory approvals are received [36][37] Question: Timeline for regulatory approvals? - Management indicated optimism for quick approvals, suggesting that the timeline is expected to be in days and weeks rather than months [44][46] Question: Will UEC consider providing production sales data ahead of earnings? - Management acknowledged the unique positioning of UEC and indicated that as they gain clarity on demand from government sources, they may provide more specific sales expectations [46][48]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenues of $501 million on 4,125 units, reflecting a 4.2% improvement from 2024 [17] - Adjusted net income for the full year was $18.1 million or $0.50 per diluted share, influenced by a non-cash tax benefit of approximately $51.9 million [18] - Free cash flow increased by approximately 45% year-over-year to $31.4 million, demonstrating strong cash generation capabilities [5][19] Business Line Data and Key Metrics Changes - The company expanded its gross margin by over 260 basis points, with adjusted EBITDA rising approximately 10% year-over-year [5][11] - The acquisition of Carli Railcar Components enhanced aftermarket capabilities and diversified revenue streams [8] - The company maintained a balanced strategy with a mix of new car deliveries and specialized programs, securing approximately 3,250 total orders in 2025 [14][15] Market Data and Key Metrics Changes - The North American railcar market saw new build activity decline to approximately 31,000 railcars in 2025, down from 42,000 in the prior year [12] - The company increased its delivery market share by nearly 300 basis points despite the overall decline in industry deliveries [12][14] - The backlog at the end of 2025 was 1,926 railcars valued at $137.5 million, providing visibility into 2026 production [9][15] Company Strategy and Development Direction - The company aims to deliver consistent margin performance, generate strong free cash flow, and expand its aftermarket and tank capabilities [10][24] - The strategic roadmap includes building a more robust recurring revenue platform through acquisitions and enhancing customer relationships [8][11] - The company is positioned to capitalize on emerging opportunities as the railcar market normalizes [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year for the North American rail market, but underlying fundamentals remain strong [4][10] - The company expects industry deliveries in 2026 to be in the range of 25,000-30,000 railcars, with a corresponding market share increase to 15%-16% [46][48] - Management expressed confidence in the normalization of demand as fleets age and replacement needs arise [10][11] Other Important Information - The company ended 2025 with $64.3 million in cash and low net debt, operating at the low end of its targeted leverage range [22][19] - Capital expenditures for 2026 are expected to be between $7 million and $10 million, focusing on maintenance and strategic investments [22][23] Q&A Session Summary Question: Revenue estimate for the aftermarket business in 2026 - The company expects the aftermarket business to generate approximately $40 million-$41 million in 2026 [28] Question: Expected decline in interest expense - The company anticipates interest expense to decline to around $14 million-$15 million due to debt repayments [29][30] Question: Drivers of margin expansion - Margin expansion was primarily driven by productivity improvements rather than just a favorable mix [36] Question: Industry delivery outlook for 2026 - The company expects industry deliveries to be in the range of 25,000-30,000 railcars, with a potential increase in market share [46][48] Question: Demand for rebuilds and retrofits - There is increasing demand for conversions and retrofits due to cost savings and value for customers [55] Question: Backlog coverage for 2026 deliveries - The backlog entering 2026 is smaller compared to recent years, but the company has optimized operations to respond to market dynamics [56][58]

Financial Data and Key Metrics Changes - The fourth quarter combined ratio improved to 89.3, resulting in an underwriting profit of $11 million, a significant increase from 96.6% in the same quarter last year [4][5] - Operating income, excluding the impact of unrealized losses on equity securities, was $40.2 million, down from $42.9 million in 2024 [13] - Investment income slightly increased to $62.7 million from $62.4 million in 2024, with an average yield remaining steady at 4.4% [13][14] Business Line Data and Key Metrics Changes - Belmont Core gross written premiums were $401 million, a 9% increase from $367 million in 2024, excluding terminated products [17] - Assumed reinsurance gross written premiums grew by 77% to $45 million, driven by the addition of new treaties [18] - Specialty products premiums remained flat at $37 million, indicating a stable outlook for this segment [18] Market Data and Key Metrics Changes - The company experienced a major drop in new business submissions in the fourth quarter, attributed to increased competition in the E&S wholesale space [9] - Retention rates remained strong at 70% for Penn-America, which finished the year up 3% at $256 million [17] Company Strategy and Development Direction - The company is focused on minimizing expenses while enhancing competitiveness across product channels, with a goal of achieving 15%-20% growth in Belmont Core gross premiums in 2026 [9][10] - A significant investment in digital transformation is underway, with 98% of data center servers moved to a cloud configuration, preparing for emerging AI projects [11][12] - The company is open to acquiring additional programs or MGAs that align with its underwriting appetite, while also focusing on organic growth in existing business [60][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the existing core business and the potential for substantial value delivery to owners in the near future [12] - The competitive landscape is expected to present headwinds going into 2026, with a notable change in the property markets observed in the fourth quarter [25] - Management acknowledged the need for improved returns on equity, targeting a minimum growth of 6%-7% in book value per share over the next two years [49][50] Other Important Information - The company has a discretionary capital of $284 million at year-end, which is considered for potential redeployment into business growth opportunities [18][50] - The transition from the New York Stock Exchange to Nasdaq aims to improve trading volumes, although results have yet to meet expectations [30] Q&A Session Summary Question: What is the expense ratio for the fourth quarter? - The expense ratio was reported to be a little over 40.5 [21] Question: Will the expense ratio improve towards the end of the year? - It is expected that 2026 will be level, with improvements starting in 2027 [22] Question: What are the overall thoughts on competition in the P&C world? - The market is experiencing a significant change, particularly in the wholesale market, with increased competition affecting premium availability [24][25] Question: Is there an inflection point for specialty products premiums? - Short-term stability is expected, with potential growth starting in 2027 [26][28] Question: Any updates on share buybacks? - The board believes in investing in the company for future growth rather than immediate buybacks [53][55] Question: Do you have exposure to private equity or reinsurance related to the Middle East? - The company has no direct exposure to the Middle East and holds small investments in private credit funds [34][36] Question: Will the overhead and expense ratio moderate in the coming quarters? - The existing book continues to perform well, and no major changes are anticipated in the near term [46]

Financial Data and Key Metrics Changes - Priority Technology reported a net revenue growth of 8% for the full year 2025, with adjusted gross profit and adjusted EBITDA growth of 14% and 10% respectively [5] - Adjusted EPS increased by $0.52 or 102% year-over-year to $1.03 for fiscal 2025 [5] - Q4 revenue was $247.1 million, a 9% increase from the prior year, leading to a 19% increase in adjusted gross profit to $100.2 million and a 16% improvement in adjusted EBITDA to $60.1 million [8][9] Business Line Data and Key Metrics Changes - Merchant Solutions generated Q4 revenue of $165.3 million, up 6.2% year-over-year, with 3% organic growth [16] - Payables segment revenue increased by 12.7% year-over-year to $26.8 million, with adjusted gross profit rising by 15.9% [18] - Treasury Solutions segment revenue grew by 17.8% to $57.3 million, driven by strong enrollment trends and an increase in billed clients [20] Market Data and Key Metrics Changes - The total customer accounts on the commerce platform increased to 1.8 million from 1.2 million year-over-year [6] - Annual transaction volume increased by $20 billion to $150 billion [6] - Average account balances under administration improved by $500 million to $1.7 billion [6] Company Strategy and Development Direction - The company anticipates achieving 6%-9% top-line revenue growth in 2026, with adjusted EBITDA expected to range from $230 million to $245 million [8][25] - Priority is focusing on high-margin segments and investing in new verticals, including real estate, healthcare, and sports entertainment [51][52] - The company is positioning itself to leverage AI's impact on SaaS business models while maintaining a disciplined tech expense structure [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in the macro environment compared to Q3, with expectations of similar conditions for 2026 [35] - The company is cautious about headwinds from lower interest rates and a challenging consumer spending environment [8][36] - Management expressed confidence in the growth of the Merchant Solutions, Payables, and Treasury Solutions segments despite market challenges [7][12] Other Important Information - The company successfully remediated a material weakness in its internal controls over financial reporting as of December 31, 2025 [27] - Free cash flow generated in Q4 was $28 million, with a run rate of approximately $112 million [23][24] Q&A Session Summary Question: Is there stabilization in the macro environment? - Management indicated that Q4 showed stabilization compared to Q3, with guidance reflecting current trends [35] Question: Update on enterprise business pipeline? - The pipeline remains strong, but conversion timelines are variable, particularly in real estate and sports [38] Question: Average CFTPay monthly enrollments? - The slowdown in Q4 is seasonal, with expectations for an uptick in Q1 as consumers resolve debts [43] Question: Key strategic priorities for 2026? - The company will continue to invest in high-growth areas, particularly in sectors like real estate and healthcare [50] Question: How to bridge the gap between gross profit and EBITDA growth? - The divergence is mainly due to investments in personnel and technology, with interest rate headwinds affecting both gross profit and EBITDA [71]

Financial Data and Key Metrics Changes - For fiscal 2025, revenues declined by 9.5%, primarily due to continued weakness in the truck sector, which accounted for 44% of Core's product sales [16] - Fourth quarter revenue was $74.7 million, representing a 27.8% sequential increase and 19.5% year-over-year growth [13] - Adjusted EBITDA margin for the fourth quarter was 10.2%, an increase of 100 basis points from the previous year [13] - Cash flow from operations totaled over $19 million in 2025, following $35 million generated in fiscal 2024 [14] Business Line Data and Key Metrics Changes - The Invest For Growth initiative generated $63 million in business wins, supporting the strategic diversification strategy [8] - The sheet molding compound (SMC) business generated $12 million in annual revenue during the fourth quarter and $21 million for the full year [9] - Tooling revenue in the fourth quarter exceeded $19 million, driven by recent business wins [17] Market Data and Key Metrics Changes - Early signs of recovery in the powersports industry were noted, with major OEMs launching multiple products that include Core's content [8] - The truck and powersports market is expected to see recovery in volume starting in the second half of 2026 [12] Company Strategy and Development Direction - The company is focused on leveraging its robust foundation to drive growth, with a strong emphasis on disciplined execution and a performance-driven culture [6] - Core aims to achieve $500 million in annual revenue as part of its long-term objectives, targeting large, diverse end markets [25] - The company is strategically diversifying beyond truck and powersports end markets to strengthen its portfolio resilience [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term direction of the company, supported by recent wins and a strong leadership team [7] - The company anticipates total product revenue could exceed $300 million in 2027, driven by new program launches [13] - Management remains conservative regarding the truck recovery, aligning with forecasts indicating a recovery starting in the second half of 2026 [21] Other Important Information - The company completed its footprint optimization initiative and consolidated its resin transfer molding operations to improve margin [14] - Total liquidity as of December 31st was $88.1 million, with a debt to EBITDA ratio of less than one times [20] - The company plans to incur approximately $2.5 million in one-time SG&A costs related to the Mexico relocation and succession planning [22] Q&A Session Summary Question: Can you help us think about the split or the tooling revenue potential in 2026? - The split will be similar to 2025, mainly due to the Volvo program expected to close tooling revenue in Q4 of 2026 [31] Question: Is there ability to go beyond the 17%-19% margin as volumes recover? - Management indicated that margins could improve by 150-200 basis points, potentially reaching low 20s% [34] Question: What are you seeing in the SMC sales channel? - The company is confident in the SMC sales channel, with a successful $21 million annual run rate and additional projects in the pipeline [40] Question: Any updates on the expansion in Mexico? - The expansion has been smooth, with the new plant already shipping products [43] Question: What led to the reduction in SG&A in Q4? - The reduction was due to layoffs and lower severance costs compared to the previous year [80] Question: Can you provide more details on the powersports market rebound? - The powersports market is recovering from a lull, with increased production and new product launches contributing to growth [84]

Financial Data and Key Metrics Changes - The company reported record revenues of $193.6 million for Q4 2025, a 27% increase year-over-year [3] - For the full year, revenues reached $730.2 million, up 28% from 2024, with earnings before tax of $160.6 million [4][17] - Adjusted EBITDA was $459 million, reflecting a 16.6% increase from $393.7 million in the prior year [4][32] - Average lease portfolio utilization increased to 85% from 83% in 2024 [5] Business Line Data and Key Metrics Changes - Core lease rent revenues were $291.6 million, with interest revenues of $14.1 million, driven by an increased total portfolio size of $3 billion [17] - Maintenance reserve revenues were $232 million, an 8.4% increase from 2024, with long-term maintenance reserves rising to $44.5 million [18][19] - Spare parts and equipment sales to third parties increased significantly to $95.5 million from $27.1 million in 2024 [19][20] - Maintenance services revenue grew to $25.5 million, up from $24.2 million in 2024, despite a decline in fleet management business [21][22] Market Data and Key Metrics Changes - The aviation market remains engine-centric, with over 600 aircraft grounded due to engine issues, impacting operational capabilities [6] - The outlook for engine shop visits is strong through the mid-2030s, with expected increases in maintenance for newer engine types [6][12] Company Strategy and Development Direction - The company is expanding its focus through Willis Aviation Capital, which includes discretionary fund management and asset management for investors [8][10] - A $600 million fund with Liberty Mutual Investments and a $1 billion+ fund with Blackstone Credit & Insurance have been established to support growth [9][34] - The strategy aims to increase return on equity through fee income and to pursue larger transactions [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the aviation market's strength and the company's ability to generate cash flow [4][36] - The decision to cease the sustainable aviation fuel project was made due to a lack of competitive advantage in that space [15] - The company is well-positioned to manage collateral in loans due to its leasing business model [11] Other Important Information - The company returned $8.7 million to shareholders in the form of common dividends, maintaining a recurring dividend of $0.40 per share [35] - General and administrative expenses increased to $194.7 million, primarily due to personnel costs and share-based compensation [26] Q&A Session Summary Question: Plans for seeding the Blackstone portfolio - Management indicated a small seed portfolio will be moved into both Blackstone and Liberty Mutual, with most assets expected to come from market origination [39] Question: Competitive advantages in sourcing engines - Management highlighted strong relationships with OEMs and successful origination strategies as key competitive advantages [43] Question: Leveraging the Blackstone investment - Management confirmed that the $1 billion+ figure includes leverage on assets, and they plan to structure debt financing similarly to past practices [48] Question: Long-term maintenance revenue dynamics - Management acknowledged the lumpiness of long-term maintenance reserves and indicated that future earnings could be significantly higher if engines were returned [52] Question: Share repurchase views - Management clarified that while there may be opportunities for share repurchases, the focus remains on growth across all fronts [56] Question: Update on insurance claims related to Russia - Management confirmed ongoing insurance claims but could not provide detailed information at this time [58]

Financial Data and Key Metrics Changes - Priority Technology reported a net revenue growth of 8% for the year, with adjusted gross profit and adjusted EBITDA growth of 14% and 10% respectively, and adjusted EPS increased by 102% year-over-year to $1.03 for fiscal 2025 [5][6] - Q4 revenue was $247.1 million, a 9% increase from the prior year, leading to a 19% increase in adjusted gross profit to $100.2 million and a 16% improvement in adjusted EBITDA to $60.1 million [8][9] - Adjusted gross profit margin for Q4 was 40.6%, up 360 basis points from the prior year [9] Business Line Data and Key Metrics Changes - Merchant Solutions generated Q4 revenue of $165.3 million, a 6.2% increase year-over-year, with 3% organic growth [16] - Payables segment revenue was $26.8 million, a 12.7% increase year-over-year, with adjusted gross profit up 15.9% to $7.4 million [18] - Treasury Solutions segment revenue increased by 17.8% to $57.3 million, with adjusted gross profit margins at 91.9% for the quarter [20] Market Data and Key Metrics Changes - The company ended the year with 1.8 million total customer accounts, up from 1.2 million the previous year, and annual transaction volume increased by $20 billion to $150 billion [6] - Average account balances under administration improved by $500 million to $1.7 billion [6] Company Strategy and Development Direction - The company anticipates achieving 6%-9% top-line revenue growth in 2026, with adjusted EBITDA expected to range from $230 million to $245 million [8][25] - Priority is focusing on high-growth areas such as real estate, healthcare, and sports entertainment, while also investing in international remittance and optimizing its commerce platform [50][51] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in the macro environment compared to Q3, with expectations of similar conditions for 2026 [35] - The company is aware of headwinds from lower interest rates and is adjusting growth expectations accordingly [36][26] Other Important Information - The company successfully remediated a material weakness in its internal controls over financial reporting as of December 31, 2025 [27] - Free cash flow generated in Q4 was $28 million, with a run rate of approximately $112 million, equating to almost $1.34 of free cash flow per diluted share [23][24] Q&A Session Summary Question: Is there stabilization in the macro environment? - Management observed stabilization in Q4 compared to Q3 and expects similar conditions for 2026 [35] Question: Update on enterprise business pipeline? - The pipeline remains strong, but conversion takes time due to the nature of the sales cycles [38] Question: Average CFTPay monthly enrollments? - The slowdown in Q4 is seasonal, with expectations for an uptick in Q1 [43] Question: Key strategic priorities for 2026? - The company will continue to invest in high-growth areas and maintain a disciplined approach to M&A [48][65] Question: How to bridge the gap between gross profit and EBITDA growth? - The divergence is mainly due to investments in personnel and technology, with interest rate headwinds affecting both levels [71]

Financial Data and Key Metrics Changes - The company reported record revenues of $193.6 million for Q4 2025, a 27% increase year over year [3] - For the full year, revenues reached $730.2 million, up 28% from 2024, with earnings before tax of $160.6 million [4][17] - Adjusted EBITDA was $459 million, reflecting a 16.6% increase from $393.7 million in the prior year [4][32] - Average lease portfolio utilization increased to 85% from 83% in 2024 [5] Business Line Data and Key Metrics Changes - Core lease rent revenues were $291.6 million, with interest revenues of $14.1 million, driven by an increased total portfolio size of $3 billion [17] - Maintenance reserve revenues were $232 million, an 8.4% increase from 2024, with long-term maintenance reserves rising to $44.5 million [18][19] - Spare parts and equipment sales surged to $95.5 million, compared to $27.1 million in 2024, with a significant increase in gross margin [20] Market Data and Key Metrics Changes - The aviation market remains engine-centric, with over 600 aircraft grounded due to engine issues, impacting maintenance and operational capabilities [6] - The outlook for engine shop visits is strong through the mid-2030s, particularly for GTF and LEAP engines [6] Company Strategy and Development Direction - The company is expanding its focus through Willis Aviation Capital, which includes discretionary fund management and asset management for investors [8][10] - A $600 million fund with Liberty Mutual and a $1 billion fund with Blackstone Credit & Insurance have been established to support growth initiatives [9][34] - The company aims to increase return on equity through fee income and carried interest while pursuing larger transactions [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the aviation market's strength and the demand for leasing and services solutions [4][6] - The decision to cease the sustainable aviation fuel project was made due to a lack of competitive advantage in that space [15] - The company is well-positioned to manage collateral in loans due to its leasing business model [11] Other Important Information - General and administrative expenses increased to $194.7 million, primarily due to personnel costs and share-based compensation [26] - The company recognized a $43 million gain from the sale of its subsidiary, Bridgend Asset Management Limited [30] - The effective tax rate for the year was 29.2%, with a cash tax payment of $3.4 million due to depreciation tax shields [31] Q&A Session Summary Question: Plans for seeding the Blackstone portfolio - Management indicated a small seed portfolio will be moved into both Blackstone and Liberty Mutual, with most assets expected to come from market origination [39] Question: Competitive advantages in sourcing engines - Management highlighted strong relationships with OEMs and successful origination of high-volume, low-price assets as key competitive advantages [43] Question: Leveraging the $1 billion investment - Management confirmed that the $1 billion figure includes leverage on assets, and they plan to structure debt financing similarly to past practices [49] Question: Maintenance reserve liability and long-term maintenance revenue - Management acknowledged that long-term maintenance reserve revenue is lumpy and will normalize over time, with an increase in maintenance reserve liability noted [52] Question: Share repurchases and asset-light model - Management clarified that they prefer to describe the company as asset-medium and will continue to pursue growth across all fronts, including potential share repurchases [56]