Financial Data and Key Metrics Changes - The company ended the year with $123.9 million in cash, driven largely by the successful closing of 4.75% convertible senior notes [8] - The average cash cost per pound sold was $42.89, reflecting improved operational efficiency [5] - The company achieved a positive gross profit of $74,000, marking an encouraging milestone as operations and production continue to improve [9] Business Line Data and Key Metrics Changes - At Lost Creek, the company increased pounds drummed by 65% year-over-year and improved well field flow rates, capturing 40% more pounds [4][5] - The inventory at Lost Creek increased by 21% to 406,000 pounds [4] - At Shirley Basin, the estimated post-tax net cash flow is $119 million, with an NPV of $82 million and an internal rate of return of 69% [7] Market Data and Key Metrics Changes - The company has contracted for sales of 1.3 million pounds in 2026, with plans to cover these sales from existing inventory and new production [12] - The combined estimated mineral resource totals 21 million pounds in the measured indicated categories and 10.4 million pounds in the inferred category as of December 31, 2025 [11] Company Strategy and Development Direction - The company is focused on ramping up production at Lost Creek and bringing the Shirley Basin facility online, with significant progress made in construction [6][11] - The company aims to expand its resource base through ongoing drilling and exploration, particularly at the Lost Soldier and North Hadsell projects [10][11] - The management emphasizes the importance of maintaining a strong balance sheet to fund growth initiatives and capitalize on market opportunities [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting delivery commitments for 2026, citing strong operational ramp-up at Lost Creek and positive progress at Shirley Basin [14][15] - The company is optimistic about the uranium market fundamentals and increased demand for secure U.S. uranium supply [12] - Management noted that regulatory approvals for Shirley Basin are anticipated soon, with no significant delays expected [36][38] Other Important Information - The company grew its workforce by 55% in 2025, adding 56 new team members to support operations [7] - The company is actively monitoring regulatory changes and participating in discussions to minimize operational risks [85][87] Q&A Session Summary Question: Confidence in meeting delivery commitments - Management expressed confidence based on current operations at Lost Creek and construction progress at Shirley Basin, indicating a solid plan for meeting contractual sales [14][15] Question: Product loan repayment timeline - Management indicated multiple options for repaying a 250,000-pound loan due in November, including potential cash settlements [20][22] Question: Production trends at Lost Creek - Management noted a steady ramp-up in production, with recovery from a significant weather event in December and positive trends expected in Q1 [29][30] Question: Regulatory approval timeline for Shirley Basin - Management anticipates receiving regulatory approvals soon, with no significant delays expected [36][38] Question: Discrepancy between pounds drummed and captured - Management explained that power outages affected production levels, leading to discrepancies in Q4 [43][45] Question: Milestones for ramping up production - Management outlined expectations for continued ramp-up at Lost Creek and initial solution delivery at Shirley Basin, with a focus on operational efficiency [51][52]

Financial Data and Key Metrics Changes - The company ended the year with $123.9 million in cash, driven largely by the successful closing of 4.75% convertible senior notes [8] - The average cash cost per pound sold was $42.89, reflecting improved operational performance [5] - The company achieved a positive gross profit of $74,000, marking an encouraging milestone as operations and production continue to improve [9] Business Line Data and Key Metrics Changes - At Lost Creek, the company increased pounds drummed by 65% year-over-year and improved well field flow rates, capturing 40% more pounds [4][5] - The inventory at Lost Creek increased by 21% to 406,000 lbs [4] - At Shirley Basin, the estimated mine life is nine years with 8.8 million lbs of resource in the measured and indicated categories, and the estimated all-in cost is $50 per pound [7] Market Data and Key Metrics Changes - The company has contracted for sales of 1.3 million lbs in 2026, which will be covered by existing inventory and new production [12] - The combined estimated mineral resource totals 21 million lbs in the measured indicated categories and 10.4 million lbs in the inferred category as of December 31, 2025 [11] Company Strategy and Development Direction - The company is focused on ramping up production at Lost Creek and bringing the Shirley Basin ISR facility online [11] - There is an emphasis on exploration and resource growth, with ongoing drilling at Lost Creek and plans for further development at North Hadsell and Lost Soldier projects [10][11] - The company aims to benefit from positive uranium market fundamentals and increased demand for secure U.S. uranium supply [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting delivery commitments due to the ramp-up of operations at Lost Creek and progress at Shirley Basin [15] - The company is optimistic about the uranium market and is cautious about over-committing in the near term, focusing on opportunistic sales [70][78] - Regulatory approvals for Shirley Basin are anticipated soon, with management maintaining a strong relationship with regulators [39][41] Other Important Information - The company grew its workforce by 55% in 2025, adding 56 new team members to support operations [7] - The estimated post-tax net cash flow for Lost Creek increased to $442 million, roughly 45% more than the previous estimate [5] Q&A Session Summary Question: Confidence in meeting deliveries and increasing utilization - Management highlighted the ramp-up of operations at Lost Creek and positive progress at Shirley Basin as key factors for confidence in meeting delivery commitments [15] Question: Product loans and repayment timeline - The company has a 250,000-lb loan due in November, with multiple options for repayment, including purchasing pounds on the spot market [21][23] Question: Production trends at Lost Creek - Management noted a steady ramp-up at Lost Creek, with recovery from a significant weather event in December and positive expectations for March [30][32] Question: Regulatory approval timeline for Shirley Basin - Management anticipates receiving regulatory approvals soon, with the well house ready for production ahead of schedule [41][39] Question: Discrepancy between pounds drummed and captured at Lost Creek - The COO explained that power outages affected production levels, leading to discrepancies between pounds drummed and captured [46] Question: Milestones for ramping up production - Management outlined expectations for a linear ramp-up at Lost Creek and significant milestones for Shirley Basin, including initial solution movement and resin shipping [52][56] Question: Demand for longer-term pricing - Management noted growing interest in securing uranium supplies, with a shift towards market-related contracts [78] Question: Confidence in navigating future regulations - The company actively monitors regulatory changes and participates in discussions to minimize operational risks [85][87] Question: Plans for new technologies in uranium productivity - Management emphasized ongoing partnerships with national laboratories to advance efficiencies in uranium production [90][92]

Financial Data and Key Metrics Changes - The company ended 2025 with $123.9 million in cash, primarily due to the successful closing of 4.75% convertible senior notes [7] - The average cash cost per pound sold was $42.89, reflecting improved operational efficiency [4] - The company achieved a positive gross profit of $74,000, marking a significant milestone in operational improvement [8] Business Line Data and Key Metrics Changes - At Lost Creek, inventory increased by 21% year-over-year to 406,000 pounds, with pounds drummed rising by 65% compared to 2024 [3][4] - Well field flow rates improved, with a 40% increase in pounds captured and profit per pound sold rising by more than $12 [4] - At Shirley Basin, the initial processing plant construction is nearing completion, with a projected mine life of 9 years and an estimated resource of 8.8 million pounds [6] Market Data and Key Metrics Changes - The company has contracted for sales of 1.3 million pounds in 2026, which will be covered by existing inventory and new production [11] - The estimated post-tax net cash flow for Lost Creek increased to $442 million, approximately 45% more than previous estimates [4] Company Strategy and Development Direction - The company is focused on ramping up production at Lost Creek and bringing the Shirley Basin facility online, indicating a strategy of operational expansion and resource growth [10] - The company is exploring additional projects, including Lost Soldier and North Hadsell, to diversify production and expand its resource base [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting delivery commitments for 2026, citing operational ramp-up at Lost Creek and progress at Shirley Basin [14] - The company is optimistic about benefiting from positive uranium market fundamentals and increased demand for secure U.S. uranium supply [11] Other Important Information - The company expanded its workforce by 55% in 2025, adding 56 new team members to support operations [6] - The company is actively monitoring regulatory changes and participating in discussions to ensure compliance and minimize operational risks [87][88] Q&A Session Summary Question: Confidence in meeting delivery commitments - Management highlighted the ramp-up of operations at Lost Creek and progress at Shirley Basin as key factors for confidence in meeting delivery commitments [14] Question: Product loan repayment timeline - Management indicated multiple options for repaying a $250,000 loan, including purchasing pounds on the spot market [21][22] Question: Production trends at Lost Creek - Management noted a steady ramp-up at Lost Creek, with recovery from a significant weather event impacting production in December [30][31] Question: Regulatory approval timeline for Shirley Basin - Management anticipates receiving regulatory approvals soon, with no indications of delays [36][38] Question: Discrepancy between pounds drummed and captured - Management explained that power outages affected production levels, leading to discrepancies between pounds drummed and captured [45] Question: Future sales commitments and M&A strategy - Management is focusing on opportunities for 2029 and beyond, with no immediate need for M&A but recognizing the value of adding resources [71][72] Question: Demand for longer-term pricing - Management noted growing interest in securing uranium supplies, with a shift towards market-related contracts [78][80]

Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $109.4 million, a 4% increase from $105.3 million in Q4 2024. For the full year, revenues were $434 million, a 10% increase from $393 million in 2024 [6] - Interest income on the fair value portfolio increased by 16% year-over-year, contributing significantly to total revenues [6] - Expenses for Q4 2025 were $102.2 million, a 4% increase from $98 million in Q4 2024. For the full year, expenses were $406 million, an 11% increase from $366 million in 2024 [8] - Pre-tax earnings for Q4 2025 were $7.2 million, slightly down from $7.4 million in Q4 2024. Full year pre-tax earnings were $28 million, up from $27.4 million in 2024 [9][10] - Net income for Q4 2025 was $5 million, compared to $5.1 million in Q4 2024. For the full year, net income was $19.3 million, slightly up from $19.2 million in 2024 [10] Business Line Data and Key Metrics Changes - The loan portfolio increased by 15% year-over-year, contributing to higher securitization debt [9] - The fair value portfolio grew to $3.6 billion, yielding 11.4% net of expected losses [6] - The company originated $363 million of new contracts in Q4 2025, with a total of $1.638 billion for the full year, slightly down from $1.682 billion in 2024 [14] Market Data and Key Metrics Changes - The total delinquency rate greater than 30 days for 2025 was 14.77%, a slight improvement from 14.85% in 2024 [21] - Annualized net charge-offs for 2025 were 7.76%, compared to 7.62% in 2024 [21] - The company remains among the best credit performers in the subprime space, as indicated by Intex data [23] Company Strategy and Development Direction - The company aims to focus on growth in 2026, improving margins through better interest rates and enhancing overall portfolio performance by eliminating underperforming loans from 2022 and 2023 [30][31] - A new credit scoring model utilizing AI and machine learning has increased approval rates by 11% [17] - The company is expanding its dealer network and increasing monthly applications from 250,000 to 325,000 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the interest rate environment, suggesting rates may decrease, which would positively impact margins [29][30] - The company noted macroeconomic challenges such as inflation and stagnant wage growth but highlighted effective collection techniques that have helped maintain portfolio performance [22] - Overall, management is confident about the company's position and growth potential moving into 2026 [30][31] Other Important Information - The company signed a new warehouse line with Capital One for $150 million and a $900 million Prime Forward Flow commitment, which are expected to support growth in 2026 [3][4] - Shareholders' equity increased by 6% to $309.5 million, marking an all-time high [11] Q&A Session Summary - No specific questions or answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $109.4 million, a 4% increase from $105.3 million in Q4 2024. For the full year, revenues were $434 million, a 10% increase from $393 million in 2024 [6] - Interest income on the fair value portfolio increased by 16% year-over-year, with the fair value portfolio now at $3.6 billion yielding 11.4% net of expected losses [6][10] - Expenses for Q4 2025 were $102.2 million, a 4% increase from $98 million in Q4 2024. Full year expenses were $406 million, an 11% increase from $366 million in 2024 [7] - Pre-tax earnings for Q4 were $7.2 million compared to $7.4 million in 2024, while full year pre-tax earnings were $28 million compared to $27.4 million in 2024 [8][9] - Net income for Q4 was $5 million compared to $5.1 million in Q4 2024, and for the full year, net income was $19.3 million compared to $19.2 million in 2024 [9] Business Line Data and Key Metrics Changes - The company originated $363 million of new contracts in Q4 2025, and for the full year, purchased $1.638 billion of new contracts, slightly down from $1.682 billion in 2024 [13] - The portfolio of assets under management grew from $3.4 billion to $3.7 billion for the full year, an increase of 8.24% [14] - The company added about 1,000 active dealers to its funding dealer pool in December alone [15] Market Data and Key Metrics Changes - The total delinquency rate greater than 30 days for 2025 was 14.77%, slightly down from 14.85% in 2024. Annualized net charge-offs for 2025 were 7.76%, up from 7.62% in 2024 [19] - Recoveries for vehicles from the 2024 vintages were at 36.3%, and for the 2025 vintage, recoveries were hitting 43.4% [23] Company Strategy and Development Direction - The company aims to focus on growth in 2026, improving margins through better interest rates and enhancing overall portfolio performance by eliminating underperforming 2022 and 2023 paper [28][29] - The company is rebranding itself as a full spectrum lender, moving beyond its traditional subprime focus [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the interest rate environment, suggesting rates may decrease, which would positively impact the bottom line [27] - The company noted that despite macroeconomic challenges, it has maintained strong credit performance and is well-positioned for future growth [20][21] Other Important Information - The company signed a new warehouse line with Capital One for $150 million and a $900 million Prime forward flow commitment, which are expected to be instrumental for growth in 2026 [3][4] - The company implemented a new credit scoring model that increased approvals by 11% [15] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Telecom's consolidated revenues totaled over $5.7 billion, up 53% year-over-year in constant Argentine pesos, primarily driven by the incorporation of TMA results [5][6] - Consolidated EBITDA margin reached over 30.3%, an increase of over 200 basis points compared to the same period in 2024, with a comparable EBITDA margin of 33.7% excluding TMA contributions [6][21] - Consolidated CapEx amounted to approximately $1.0 billion, an 88% increase in pesos versus fiscal year 2024, focusing on the expansion of fixed and mobile access networks [7][30] - Net debt to estimated pro forma EBITDA leverage ratio stood at around 1.7 times, significantly improving compared to fiscal year 2024 [8][34] Business Line Data and Key Metrics Changes - Service revenues reached over $5.4 billion, increasing 55% year-over-year in real terms, with mobile, broadband, and Pay TV service revenues growing at a weighted average growth rate of 7% [10][12] - Mobile subscriber bases reached 19.9 million for Telecom and 19.1 million for TMA, consolidating market leadership [10] - Broadband subscriber base increased by 3.2% year-over-year, reaching 4.2 million accesses, driven by FTTH adoption [14] - Pay TV subscriptions grew for the second consecutive year, with Personal Flow's unique customers reaching almost 2 million, a 33% increase year-over-year [16] Market Data and Key Metrics Changes - Paraguay's operation saw revenues grow almost 7% year-over-year in US dollars, with an EBITDA margin of 53% [18] - In Uruguay, the broadband market is developing, with potential for growth as customer additions began at the end of 2024 [19] Company Strategy and Development Direction - The company continues to prioritize the expansion of its 5G and FTTH networks, achieving record levels of deployment [40] - A joint venture with Banco Macro was created to accelerate Personal Pay's growth and expand its product offerings [20][40] - TMA is executing an efficiency plan to align its EBITDA margin with Telecom's margin, with significant improvements already observed [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business model amid currency fluctuations and inflation, with effective pricing strategies supporting revenue growth [34][41] - The company remains focused on maintaining a solid financial position with strong cash flow generation and a competitive debt maturity profile [41][42] Other Important Information - The company received multiple awards for its financial strategy and digital infrastructure, including the Southern Cone Deal of the Year for the acquisition of TMA [9][37] - Free cash flow reached over $0.6 billion in fiscal year 2025, reflecting robust cash generation capabilities [41] Q&A Session All Questions and Answers Question: What are the expectations for subscriber growth in the broadband segment? - The company observed a continued recovery in broadband demand dynamics, with a 3.2% year-over-year increase in subscribers, supported by FTTH expansion [14][40] Question: How is the integration of TMA progressing? - TMA has shown significant improvements in profitability and efficiency, with its EBITDA margin reaching approximately 26%, confirming the effectiveness of the integration strategy [25][40] Question: What is the company's strategy regarding digital financial services? - The joint venture with Banco Macro aims to enhance Personal Pay's growth and product offerings, reflecting the company's commitment to expanding its digital financial services ecosystem [20][40]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $0.9 million, representing nearly 400% year-over-year growth and meaningful sequential acceleration [37] - Full-year 2025 revenue was $2.7 million, exceeding guidance of $2.5 million and representing growth of 46% over the prior year [47] - Adjusted EBITDA was negative $28 million, with expectations for sequential improvement in adjusted EBITDA margins throughout 2026 [57] Business Line Data and Key Metrics Changes - Fleet revenue for Q4 was $0.7 million, growing 50% sequentially [47] - Branding and advertising revenue saw a 50% increase year-over-year in Q4 [32] - Software revenues were over $200,000 in Q4, with recurring software revenue now representing approximately 70% of total software revenues [48] Market Data and Key Metrics Changes - The merchant base expanded to over 4,500 restaurants and retail partners, a more than 10x increase from roughly 400 a year ago [40] - Delivery volume grew 53% quarter-over-quarter in Q4 and roughly 270% for the full year versus 2024 [39] - The company now reaches over 1.7 million households in metro areas, covering a population of over 3.75 million people [40] Company Strategy and Development Direction - The company aims to deploy thousands more robots in the coming years, focusing on optimizing the current fleet before expanding further [64][66] - The acquisition of Diligent Robotics is expected to broaden the platform and increase the proportion of revenue from durable recurring contracts [58] - The company is building a diversified robotics platform with multiple revenue streams spanning delivery, advertising, data services, software, and healthcare automation [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued margin improvement moving into 2026, supported by operational infrastructure established in 2025 [51] - The company anticipates a growing portion of operational infrastructure to be absorbed across a larger and more productive fleet [52] - Management emphasized the importance of disciplined and intentional expansion, particularly in international markets, with 2026 seen as a year for laying groundwork for future growth [82] Other Important Information - The company completed four strategic acquisitions since early 2025, each aligning with steps in the Serve flywheel strategy [36] - GAAP operating expenses for Q4 were $34.3 million, reflecting costs associated with deploying nearly 1,000 new robots [53] - The company closed the year with $260 million in cash and marketable securities, providing strategic flexibility [56] Q&A Session Summary Question: What is the goal for unit deployment in 2026 and beyond? - The company expects to deploy thousands more robots, focusing on optimizing the current fleet before expanding further [64][66] Question: What percentage of the 2,000 deployed robots should be daily active by the end of the first quarter? - The company aims for full operational activation of existing robots before manufacturing new ones, focusing on operational efficiency [69][71] Question: How are the integration efforts of Diligent Robotics going, and what are the plans for growing the healthcare business? - Integration is ongoing, with a focus on creating a repeatable playbook for expanding into new verticals and operating in multiple domains [72][74] Question: Is optimization of the fleet a linear process, or are there step functions? - Optimization involves several steps, with more mature markets progressing further along the optimization curve [77] Question: Can you speak more about plans to expand internationally and the timeframe for city launches? - The company is in discussions for international expansion, with 2026 seen as a year for laying groundwork, while 2027 is viewed as the opportunity for significant growth [79][82]

Financial Data and Key Metrics Changes - Telecom's consolidated revenues totaled over $5.7 billion, up 53% year-over-year in constant Argentine pesos, primarily driven by the incorporation of TMA results [5] - Consolidated EBITDA margin reached over 30.3%, an increase of over 200 basis points compared to the same period in 2024, with a comparable EBITDA margin of 33.7% excluding TMA contributions [6][21] - Consolidated CapEx amounted to approximately $1.0 billion, an 88% increase in pesos versus fiscal year 2024, focusing on the expansion of fixed and mobile access networks [7][29] - Net debt to estimated pro forma EBITDA leverage ratio improved to around 1.7x in fiscal year 2025, reflecting a solid credit profile [8][34] Business Line Data and Key Metrics Changes - Service revenues reached over $5.4 billion, increasing 55% year-over-year in real terms, with mobile, broadband, and Pay TV service revenues growing at a weighted average growth rate of 7% [11][12] - Mobile subscriber bases of Telecom and TMA reached 19.9 million and 19.1 million accesses respectively, consolidating market leadership [10] - Broadband subscriber base increased by 3.2% year-over-year, reaching 4.2 million accesses, driven by higher FTTH adoption [14] - Pay TV subscriptions grew for the second consecutive year, with Personal Flow's unique customers increasing by over 490,000 or 33% compared to the previous year [16] Market Data and Key Metrics Changes - In Paraguay, revenues grew almost 7% year-over-year in U.S. dollars, with EBITDA increasing 12% year-over-year, reaching $115 million [18] - In Uruguay, the broadband market is developing, with potential for growth as customer additions began at the end of 2024 [19] Company Strategy and Development Direction - The company continues to prioritize the expansion of its 5G and FTTH networks, achieving record levels of deployment during the year [40] - A joint venture with Banco Macro was created to accelerate the growth of Personal Pay and expand its product offerings [20] - TMA is executing an efficiency plan to align its EBITDA margin with Telecom's margin, focusing on cost optimization and operational improvements [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business model and the effectiveness of cost efficiency initiatives, with a strong improvement in EBITDA margin [40] - The company remains focused on sustaining long-term growth while maintaining sound financial management and a solid cash position [41][42] Other Important Information - The company was recognized with multiple awards for its financial strategy and execution, including the Southern Cone Deal of the Year for the acquisition of TMA [9][37] - Free cash flow reached over $0.6 billion in fiscal year 2025, with a cash position exceeding $0.5 billion at year-end [41] Q&A Session All Questions and Answers Question: What are the expectations for subscriber growth in the broadband segment? - The company noted a continued recovery in broadband demand dynamics, supported by FTTH expansion and improved customer acquisition strategies [40] Question: How is the integration of TMA progressing? - The integration is on track, with TMA showing significant improvements in profitability and operational efficiency, aligning its EBITDA margin closer to Telecom's [25] Question: What are the company's plans for future investments? - Future investments will focus on enhancing network quality and expanding digital financial services, with a strong emphasis on 5G and FTTH deployment [40]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenues were $37.7 million, representing a 12% increase year-over-year, primarily driven by the Industrial Solutions segment, which saw a 60% revenue increase [11] - Adjusted EBITDA declined to $1.9 million from $2.1 million in the prior year, mainly due to lower capacity utilization in the Gearing segment and operational inefficiencies related to raw material supply issues [11][12] - The company ended 2025 with approximately $26 million in backlog, a level not reached since 2023 [15] Business Line Data and Key Metrics Changes - Gearing segment orders increased by 38% year-over-year to nearly $9.7 million, driven by strength in power generation and oil and gas [5][14] - Industrial Solutions segment revenue grew 60% year-over-year to $9.4 million, reflecting strong demand in natural gas turbine equipment [9][17] - Heavy Fabrications segment revenue grew by 6% year-over-year to $21.6 million, primarily due to increased sales of wind towers and repowering adapters [8][13] Market Data and Key Metrics Changes - Demand conditions were strong across Gearing and Industrial Solutions segments, with robust project activity noted [5] - The backlog for Industrial Solutions reached a record $38.1 million, indicating strong future demand [16] - The company anticipates continued domestic onshore wind tower activity through 2026 and into 2027 [23] Company Strategy and Development Direction - The company is focusing on stable, growing power generation markets, emphasizing oil and gas, renewables, and potentially nuclear [19] - Strategic actions include divesting non-core operations to optimize asset base and redeploy capital towards higher value opportunities [4][10] - The company aims to expand capabilities in precision manufacturing and is actively pursuing M&A opportunities in power generation and critical infrastructure [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in the Gearing segment, supported by a strong backlog [30] - The company expects to maintain a revenue growth rate of around 20% year-over-year, driven by favorable market conditions and strong demand in key segments [55] - Management highlighted the importance of domestic manufacturing as a competitive advantage in the current trade policy environment [10][24] Other Important Information - The company is implementing an ISO 45001 Occupational Health and Safety Readiness Program to enhance its safety standards [24] - The company has made significant investments in equipment and staffing to double capacity in the Industrial Solutions segment [8][45] Q&A Session Summary Question: Can you discuss the Gearing segment's growth expectations for 2026? - Management expects significant growth in the Gearing segment, with double-digit growth anticipated due to a strong backlog [30][31] Question: What steps are being taken to improve throughput in the Gearing segment? - Management indicated that execution is key, with a ramp-up expected in Q1 and steady revenue anticipated throughout the year [33] Question: What is the capacity outlook for the Industrial Solutions segment? - Management stated that the existing facility could potentially support revenue in the $70 million range, with strong demand expected through 2030 [45][46] Question: How is the Heavy Fabrications segment performing in terms of backlog and demand? - Management noted good visibility for tower production into Q3 2026, with consistent demand expected [48][49] Question: Are there any new opportunities in the oil and gas sector due to recent market volatility? - Management reported increased inquiries and substantive orders from multiple customers in the oil and gas space [57]

Financial Data and Key Metrics Changes - Avino achieved record revenues of $92.2 million for the full year 2025, with Q4 revenues exceeding $30 million, despite lower ounces sold [8][21] - The company reported a net income of $10.5 million or $0.06 per share for Q4, and $26.6 million or $0.17 per share for the full year, significantly up from $8.1 million or $0.06 per share in 2024 [23][24] - Gross profit margin improved to 58% in Q4, up from 43% in the same quarter last year [22] Business Line Data and Key Metrics Changes - Silver production represented over 50% of consolidated silver equivalent production in Q4, marking a return to being a primary silver producer [7][15] - The company processed 11,995 tons of material from La Preciosa during the quarter, contributing to overall production results [10][20] Market Data and Key Metrics Changes - Avino was named fifth among the top performing companies on the Toronto Stock Exchange 2025 TSX30, with a share price performance increase of 610% over three years [16] - The company was added to several ETFs, enhancing institutional recognition and liquidity [17] Company Strategy and Development Direction - The company aims to transform into a multi-asset Mexican mid-tier producer, focusing on strategic exploration and drilling to unlock resource potential [6][35] - Plans for 2026 include approximately 30,000 meters of drilling, with a goal to reach a production rate of 500 tons per day at La Preciosa [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong balance sheet supporting transformational growth plans, with expectations of continued silver revenue growth [9][21] - The company is integrating AI technology to enhance exploration efficiency and data analysis [35] Other Important Information - Cash position reached a record $102 million at year-end, with working capital just shy of $100 million [25] - The company has no secured debt other than leases on operating equipment [26] Q&A Session Summary Question: Impact of market fear on M&A opportunities - Management indicated that while market conditions affect M&A, they are focused on organic growth and existing assets [48][49] Question: Changes in labor costs and model adjustments - Management noted a stabilization in labor costs after a significant jump in previous years, with no expected material changes at this time [51] Question: Potential acceleration of work at La Preciosa - Management confirmed that they are evaluating options to accelerate planned work, including new equipment orders [60][61] Question: Share count and capital return strategy - Management discussed the focus on organic growth while considering shareholder returns and minimizing dilution [68][69] Question: Mill expansion plans - Management confirmed that mill expansion is a safe assumption, with ongoing evaluations for appropriate sizing [73][74] Question: Operating cost optimization amidst inflation - Management acknowledged consistent operating costs with some volatility, but noted that they are managing costs effectively [78][80] Question: Potential for open-pit mining at La Preciosa - Management is revisiting feasibility studies to explore the possibility of open-pit mining, which could significantly impact production outlook [89][90]