Financial Data and Key Metrics Changes - The company generated FFO as adjusted of $1.43 per share in 2025, representing a 6% growth compared to 2024, driven by a 5% same-property NOI growth [4][17] - Same-property NOI, including redevelopment, increased by 2.9% in Q4 and 5% for the full year [17] - The company ended 2025 with a net debt to annualized EBITDA ratio of 5.8x, below the target of 6.5x, indicating a strong balance sheet [18] Business Line Data and Key Metrics Changes - The company executed 58 new leases at a record same-space cash rent spread of 32% and achieved a record shop occupancy of 92.6% [4][10] - The signed but not open pipeline is expected to generate an additional $22 million of annual gross rent, representing 8% of current NOI [5] - The company completed 14 projects totaling $55 million, generating unlevered yields of 19% [6] Market Data and Key Metrics Changes - Nationally, shopping center vacancy remains near historic lows, with supply constraints particularly pronounced in the Northeast [11] - The company noted that finding land and securing entitlements is extremely difficult in its markets, which supports expectations for healthy rent growth [12] Company Strategy and Development Direction - The company aims for FFO as adjusted growth of at least 4.5% in 2026 and same-property NOI growth above 3% [8] - The growth outlook is highly visible, with over 80% of same-property NOI growth expected from executed leases and contractual rent increases [9] - The company is focused on redevelopment and anchor repositioning projects, with significant investments planned for the future [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for high-quality retail spaces and expects new lease spreads to remain above 20% in 2026 [4][5] - The company anticipates challenges in the acquisition market due to increased competition and lower cap rates, but remains optimistic about capital recycling opportunities [28][60] Other Important Information - The board approved an 11% increase in the annualized dividend to $0.84 per share, reflecting an FFO payout ratio of about 56% [21] - The company has $166 million of active redevelopment projects, with plans to spend about $70 million-$80 million during 2026 [21] Q&A Session Summary Question: Expectations for shop occupancy growth - Management expects to reach a steady state of 94%-96% occupancy, with potential for strategic leasing improvements [25][26] Question: Insights on capital recycling and acquisition pipeline - The acquisition market is competitive, with cap rates decreasing, but the company is optimistic about capital recycling opportunities [28][60] Question: Same-property NOI growth path - The deceleration in 2026 is attributed to tenant fallout and one-time benefits in 2025, while growth visibility from the signed but not open pipeline supports a rebound in 2027 [34][35] Question: Impact of snow removal costs on guidance - Guidance for 2026 accounts for snow removal costs incurred in January, with appropriate provisions made [43] Question: Opportunities in redevelopment projects - The company is focused on both small-scale and larger redevelopment projects, with significant potential for growth from completed projects [46][47]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved revenue of $448.7 million, a gross profit of $117.5 million, and a net income of $77.8 million, marking a $6.7 million or 1.5% increase in revenue compared to 2024 [7][16] - The LEU segment generated $346.2 million in 2025, relatively flat compared to $349.9 million in 2024, while uranium revenue decreased by 54% year-over-year to $55.6 million [16][17] - SWU revenue increased by 21% year-over-year, amounting to $51.9 million, driven by a 23% increase in the volume of SWU sold [17] - The technical solutions segment delivered $102.5 million in 2025, an increase of 11% over 2024 levels [17] Business Line Data and Key Metrics Changes - The LEU segment's gross profit increased by 19% to $111.5 million in 2025, primarily due to an increase in SWU sales volume and margin [17] - The technical solutions segment's gross profit decreased by 66% to $6 million due to increased costs under the HALEU Operations Contract [18] Market Data and Key Metrics Changes - Near-term domestic LEU demand is projected to increase by approximately 6.5 million SWUs due to Russia exiting the market and additional demand from reactor restarts and upgrades [9] - The LEU pricing curve has experienced a 24% compound annual growth rate from 2019 to 2025, indicating a constrained market and pent-up demand [9] Company Strategy and Development Direction - The company is focused on building both LEU and HALEU capacity to meet future enrichment needs, positioning itself as a key player in the market [24] - The company aims to capitalize on its first-mover advantage in the HALEU market and is actively pursuing additional low-cost capital sources [10][22] - The company plans to have HALEU production online before the end of the decade, producing 12 metric tons of HALEU per year thereafter [21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of execution and continuous improvement in reducing unit costs and lead times as they build out capacity [28][29] - The company anticipates increasing demand for LEU and HALEU, driven by U.S. energy security initiatives and the need for advanced reactors [24][52] Other Important Information - The total company backlog stood at $3.8 billion as of December 31, 2025, with the LEU segment backlog approximately $2.9 billion [19] - The company ended the year with an unrestricted cash balance of approximately $2 billion, providing flexibility for future investments [20] Q&A Session Summary Question: Timeline for improving the 42-month forecast - Management emphasized the importance of execution and continuous improvement to reduce lead times and costs, with dedicated resources working on this [28][29] Question: Commercialization timeline for LEU - Management indicated that they are progressing towards fulfilling commitments and turning contingent sales into firm contracts [34] Question: CapEx guidance for 2026 - Management noted that the initial year of CapEx guidance includes long lead procurement and engineering work, and future years will see more linear spending [40][42] Question: Achieving nth-of-a-kind costs - Management clarified that nth-of-a-kind costs will be achieved before reaching 3 million SWUs, indicating efficient scaling [46][47] Question: Government discussions on Russian imports - Management reported strong demand stacking up towards the end of the decade but noted no specific updates from the government regarding import policies [51][52] Question: Contract dynamics for long-term supply arrangements - Management acknowledged the impact of shipping delays on guidance but expressed confidence in the supply side and potential upside from market improvements [57] Question: Milestones to de-risk the timeline - Management highlighted the importance of supply chain configuration and partnerships to ensure timely production and meet demand [60][63] Question: HALEU production target and sourcing strategy - Management confirmed that the HALEU production target is designed to stimulate market demand and that they are actively seeking commitments from customers [67][68]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported record revenue of $3.5 billion, a year-over-year increase of 7.9%, with 3.5% being organic growth [6][19] - Full year 2025 revenue reached a record $13.2 billion, growing 12.5%, with 3.9% organic growth [7][18] - Adjusted EBITDA for Q4 was $255 million, exceeding guidance, while full year Adjusted EBITDA was $881 million, an 8% increase [6][19] - Adjusted Diluted EPS for the full year was $2.51, with an expected increase of 20% for 2026 [18][21] - Free Cash Flow in Q4 was $163 million, maintaining strong operating Return on Invested Capital [20] Business Line Data and Key Metrics Changes - New business wins totaled $1.1 billion in 2025, with significant contracts in life sciences, aerospace, and defense sectors [7][24] - Incremental new business revenue of $774 million is already secured for 2026, representing over 20% growth compared to the previous year [7][26] - The company is focusing on high-growth verticals such as life sciences, aerospace and defense, and technology, particularly data centers [24][25] Market Data and Key Metrics Changes - The company noted strong performance across all regions, with organic revenue growth in every area [19] - The total addressable market for contract logistics exceeds $500 billion, with significant opportunities identified in priority B2B verticals [14][41] Company Strategy and Development Direction - The company aims to accelerate organic growth and expand margins through leadership changes and operational improvements [9][17] - A focus on automation, robotics, and AI is central to the company's strategy, with plans to deploy nearly 20,000 robots by the end of 2026 [11][27] - The integration of Wincanton is progressing, with expected cost synergies of $60 million by the end of 2026 [21][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilient business model and its ability to navigate a dynamic macro environment [7][23] - The company anticipates a solid foundation for growth in 2026 and beyond, driven by a robust sales pipeline and strategic focus on high-value verticals [16][26] - Management highlighted the increasing demand for contract logistics outsourcing as a viable alternative for customers facing economic challenges [97] Other Important Information - The company has a strong balance sheet, having executed $200 million in share buybacks and completed a European bond offering [20] - The company is committed to maintaining disciplined capital expenditure and working capital management to support long-term growth [20] Q&A Session Summary Question: Can you speak to your overall philosophy on ensuring GXO's value is recognized by customers? - Management emphasized the importance of client-aligned solutions to deliver value and enhance pricing power in strategic verticals [30][31] Question: Can you walk through how we should think about the cadence through 2026? - Management indicated that EBITDA phasing will reflect project timing, with high visibility due to new business wins [32][33] Question: What does the second half run rate look like as we exit 2026 into 2027? - Management noted that the sales cycle is 6-9 months, with a ramp-up period for new operations, expecting benefits from new business wins to accelerate in the fourth quarter [39][40] Question: What are the macro assumptions baked into the guidance range? - Management expects flat volumes in operations, with a conservative view on customer volumes, while anticipating organic growth to drive top-line performance [49][50] Question: What are the key items that could impact the high and low ends of the guidance range? - Management highlighted the speed of new business implementation and productivity improvements as key factors influencing guidance [54][56]

Financial Data and Key Metrics Changes - In 2025, Gross Merchandise Volume (GMV) increased by 29%, reaching $378 billion, while revenue grew by 30% to over $11.5 billion, accelerating from 2024's growth of 26% [9][38] - Q4 marked the first quarter with revenue exceeding $3 billion, surpassing total revenue for the entire year of 2020 [10] - Free cash flow for 2025 exceeded $2 billion, achieving a free cash flow margin of 17% [45][46] Business Line Data and Key Metrics Changes - Revenue from Merchant Solutions grew by 35%, driven by strong GMV and increased penetration of Shopify Payments, with $84 billion of GMV processed on Shopify Payments in Q4, a 38% increase year-over-year [39] - Subscription Solutions revenue increased by 17%, with Monthly Recurring Revenue (MRR) growing by 15% year-over-year [40] - Offline channel revenue grew by 27% to $748 million, while B2B GMV surged by 84% in Q4 and 96% for the year [11][12] Market Data and Key Metrics Changes - North America saw a revenue increase of 28%, now powering over 14% of the U.S. e-commerce market [10] - International revenue grew by 36% year-over-year, with nearly half of the merchant base located outside North America [11] - European merchants experienced a Q4 GMV increase of 45% or 35% in constant currency [37] Company Strategy and Development Direction - The company aims to leverage AI to enhance commerce, with a focus on creating a new normal in shopping experiences [5][16] - The Universal Commerce Protocol (UCP) was co-developed with Google to standardize AI shopping experiences [7][18] - The strategy includes expanding into offline retail and enhancing the Shop App for better consumer discovery [20][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced by merchants in 2025, including tariffs and geopolitical issues, and emphasized the company's role in helping them adapt [32] - The outlook for Q1 2026 anticipates revenue growth in the low 30s year-over-year, driven by robust growth in payments and international expansion [47] - Management expressed confidence in the long-term value of the business, supported by a strong balance sheet and a share repurchase program of up to $2 billion [46] Other Important Information - The company reported a gross profit growth of 25% in Q4, with operating expenses improving to 29% of revenue [41][42] - The company has been focusing on building products that are global from day one, with Shopify Payments now available in 60 new countries [25] Q&A Session Summary Question: Changes in Shopify's ability to monetize transactions through AI surfaces - Management clarified that transactions through AI surfaces will still utilize Shopify's checkout, ensuring consistent monetization for merchants [51][52] Question: Key milestones for agentic commerce adoption - Management noted that orders from AI searches have increased by 15x since January 2025, indicating strong early adoption [58][59] Question: Economics and competitive dynamics of agentic commerce - Management reiterated that the economics for merchants remain the same regardless of the sales channel, emphasizing the importance of maintaining a reliable backend for transactions [64][66]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased 10% year-over-year to $80 million, with non-GAAP earnings per share growing 19% to $0.32 [5][14] - For the full year 2025, revenue also grew 10% year-over-year, surpassing $300 million, with net income rising 37% to $51.5 million [5][20] - Adjusted EBITDA for Q4 2025 increased by 25% to $13.7 million, while for the full year, it rose by 37% to $47.4 million [18][20] Business Line Data and Key Metrics Changes - Cloud ARR rose 23% year-over-year to $95 million in Q4 2025, contributing significantly to overall revenue growth [6][15] - Subscription revenues surged 21% year-over-year, driven by strong demand for defense products [10] - The defense products segment saw exceptional double-digit year-over-year growth in Q4 and for the full year [10] Market Data and Key Metrics Changes - The Americas region saw a revenue decline of 4% year-over-year in Q4, but grew 6% for the full year [16] - EMEA revenue increased 38% year-over-year in Q4, accounting for 40% of total revenue, while APAC revenue declined 3% in Q4 [16] Company Strategy and Development Direction - The company aims to gain market share in cloud security, lead through AI innovation, and expand its go-to-market footprint [5][12] - The acquisition of Pynt enhances the company's API security capabilities, positioning it for growth in a rapidly expanding market [9] - The introduction of the Agentic AI Protection solution marks a significant expansion of the company's security platform [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing sophistication of cyberattacks, necessitating advanced AI-based security solutions [31][32] - The company expects RPO growth to align with revenue growth in 2026, reflecting strong booking performance [25] - Management expressed confidence in the robust demand and backlog entering 2026, which supports the revenue guidance for Q1 2026 [36] Other Important Information - The company plans to increase investments in innovation and go-to-market initiatives in 2026 [17][22] - The effective tax rate for 2025 was 15.3%, with expectations to remain stable in the coming quarters [19] Q&A Session Summary Question: What drove the strength in RPO growth? - Management attributed the strength to strong bookings in both cloud and product subscriptions, expecting RPO growth to align with revenue growth in 2026 [25] Question: Update on the Americas market and growth profile? - Management noted strong booking performance in North America and plans to increase investments in the region to support growth [27] Question: How is security positioned in relation to AI disruption? - Management emphasized the need for AI-based security solutions due to the increasing sophistication of attacks, positioning the company well in the market [31][32] Question: Changes needed for selling API and Agentic AI security solutions? - API security is integrated into the existing sales force, while a dedicated team is being formed for the new Agentic AI market [40] Question: Timing of product delivery relative to marketplace development? - Management believes the timing is favorable as enterprises are moving from proof of concept to production, with a strong offering ready to address security concerns [49]

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was reported at $466.7 million, a 6.6% increase year-over-year [9] - Year-over-year revenue growth exceeded 7%, with significant free cash flow generated [4] - Net income and diluted earnings per share were reported at $31.2 million and $0.44 per share, including an $8.3 million benefit related to tax treatment [11] - Cash flow from operations was reported at $17.4 million, adjusted to $36.4 million after accounting for a decrease in payroll accrual [11] Business Line Data and Key Metrics Changes - Environmental services segment revenues were reported at $210.8 million with a margin of 12.6% [9] - Dietary services segment revenues were reported at $255.9 million with a margin of 7.2% [9] - Cost of services was reported at $394.6 million, or 84.6%, with a goal to manage it in the 86% range for 2026 [9][10] Market Data and Key Metrics Changes - The company anticipates mid-single-digit revenue growth for 2026, supported by strong industry fundamentals and demographic trends [5][7] - The first baby boomers will turn 80 in 2026, increasing demand for long-term and post-acute care services [5] Company Strategy and Development Direction - The top three strategic priorities for 2026 include driving growth through management development, managing costs through operational execution, and optimizing cash flow [7] - The company plans to repurchase $75 million of common stock over the next 12 months, following the completion of a $50 million share repurchase plan [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the administration's focus on rationalizing regulations to better align with the needs of vulnerable populations [7] - The company is well-positioned to capitalize on opportunities in the market, with a robust business model and strong balance sheet [45] Other Important Information - The company ended the year with cash and marketable securities of $203.9 million, and an undrawn credit facility of $300 million [14] - The effective tax rate for 2026 is expected to be approximately 25% [11] Q&A Session Summary Question: Revenue upside opportunity in the nursing home sector - Management highlighted that growth is largely execution-based, with a robust sales pipeline and strong demand for services [19] Question: Margin expectations for 2026 - Margins are expected to continue improving due to strong service execution and operational efficiencies [21][22] Question: Split of campus services revenue - Campus services revenue is split evenly between the CSG brand and Meriwether Godsey, with expectations for accelerated organic growth [26][27] Question: Cash from operations trajectory for 2026 - Management expects cash from operations to approximate net income, with consistent margins and revenue growth [29] Question: Balancing share buybacks with M&A opportunities - The company is confident in its liquidity position, allowing for simultaneous focus on organic growth, M&A, and share buybacks [30][31] Question: New business additions for 2026 - Management anticipates continued organic growth driven by execution and a robust pipeline, with timing of new business adds being fluid [36][39] Question: Performance across different facility types - Service execution has remained consistent across all service segments and facility types, with expectations for continued strong performance [41]

Financial Data and Key Metrics Changes - SharkNinja achieved $6.4 billion in net sales for 2025, up nearly 16% year-over-year, with domestic net sales growing 13.5% and international net sales increasing 20.8% [23][24] - Adjusted EBITDA increased more than 19% year-over-year to $1.14 billion, with adjusted EBITDA margins expanding approximately 50 basis points [23][29] - Adjusted earnings per share reached a record $5.28, up nearly 21% year-over-year [23] Business Line Data and Key Metrics Changes - Net sales in the cleaning category increased 3.4% year-over-year to $670 million, with carpet extraction being a standout performer [26] - The cooking and beverage category saw net sales increase 11.7% year-over-year to $667 million, driven by the success of the Ninja Luxe Cafe Espresso Machine [26] - The food preparation category experienced a 28.1% year-over-year increase in net sales to $438 million, with strong momentum in frozen treats [26] - The beauty and home environment category grew 63.2% year-over-year to $326 million, the highest growth rate of the year [27] Market Data and Key Metrics Changes - The U.S. market that SharkNinja participates in declined in the low single digits year-over-year for 2025, while SharkNinja gained market share across all four category groupings [7] - The U.K. business grew 9.2% year-over-year in Q4, despite declines in air fryer sales, showcasing the strength of diversification [25] - Latin America, particularly Mexico, showed triple-digit growth, indicating strong momentum and future opportunities [21] Company Strategy and Development Direction - SharkNinja's strategy focuses on diversification across products, channels, and geographies, which is seen as a foundational driver of success [8][21] - The company plans to expand into new categories, with significant excitement around launches in 2026, including two additional subcategories [15] - SharkNinja aims to maintain leadership in existing categories through relentless innovation and execution [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to operate effectively in challenging consumer environments, emphasizing consistent execution and durable performance [8] - The outlook for 2026 includes expected net sales growth of 10% to 11% and adjusted net income per diluted share in the range of $5.90 to $6, reflecting a 12% to 14% year-over-year increase [37] - Management highlighted the importance of consumer trust and engagement as central to the company's growth strategy [4][42] Other Important Information - SharkNinja announced a $750 million share repurchase program, reflecting strong cash generation and balance sheet strength [14][35] - The company completed its global Oracle implementation and launched Salesforce in the U.S. and Canada to enhance its direct-to-consumer platform [11] Q&A Session Questions and Answers Question: What is the medium-term growth algorithm for the U.S. business? - Management indicated that the U.S. business is expected to grow at a double-digit rate in 2026, driven by strong D2C growth and retailer support [46] Question: Can you provide context regarding the expansion and its impact on growth margin and expense control? - Management noted that growth in the first half of 2026 will be supported by strong sales, with expectations for continued expense control [47] Question: How do you see the international segment growth profile evolving in 2026? - Management expects international growth to outpace domestic growth, particularly in Latin America and EMEA, with a focus on transitioning to a direct model in various countries [52][54] Question: Can you discuss the customer demographics being attracted through the beauty segment? - Management highlighted that the beauty segment is attracting a younger demographic, including young males, and emphasized the potential for expanding the beauty tech market [64] Question: How would you define the success of recent celebrity campaigns? - Management noted significant growth in social media engagement and brand visibility as indicators of success from celebrity partnerships [70]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 increased approximately 10.5% to $1.143 billion from $1.034 billion in Q4 2024, driven by a 9.7% increase in organic sales and a 0.8% contribution from acquisitions [12][15] - Gross profit increased 10.2% to $276.6 million, with gross profit margins decreasing approximately 8 basis points to 24.2% [15] - Adjusted EBITDA for Q4 2025 was $80.3 million, compared to $68.2 million for the prior year [17] - Adjusted net income was $29.9 million or $0.68 per diluted share for Q4 2025, compared to $23.9 million or $0.55 per diluted share for Q4 2024 [17] Business Line Data and Key Metrics Changes - Organic specialty sales grew 6.4% year-over-year, driven by unique placement growth of 4.2% and reported specialty case growth of 3.3% [7] - Excluding the Texas Produce Processing and Packaging Program, specialty case growth was 5.4% compared to the prior year [8] - Pounds in Center of the Plate were approximately 2.4% lower than the prior year, but excluding the Texas Commodity Poultry Program attrition, growth was 7.5% higher [8] Market Data and Key Metrics Changes - Net inflation was 8.3% in Q4 2025, with 3.4% inflation in the specialty category and 16.1% in the center of plate category [13] - Excluding the impact of the Commodity Poultry Program attrition, net inflation in center of the plate was 9.5% [13] Company Strategy and Development Direction - The company aims to continue growing market share and expanding its customer base, focusing on upscale casual to higher-end dining [5][29] - Investments in distribution center capacity expansion and facility consolidation are ongoing, with a focus on operational efficiency and talent acquisition [10][11] - The company is cautiously optimistic about overcoming challenges such as inflation and tariff noise, leveraging a diversified portfolio of suppliers [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance of January 2026 despite challenges from winter weather, indicating a strong recovery in February [21] - The company anticipates revenue growth of 6%-8% for 2026, with a focus on maintaining operating expense leverage [37] - Management remains optimistic about the M&A environment, looking for strategic opportunities while maintaining a strong balance sheet [51][52] Other Important Information - The company achieved over $4 billion in revenue for the first time in its history, with a full-year organic revenue growth of 9.1% [10] - Total liquidity at the end of Q4 2025 was $280.5 million, with net debt to adjusted EBITDA at approximately 2.1 times [18] Q&A Session Summary Question: How have year-to-date sales tracked versus expectations given the winter weather? - Management reported that January was strong, and the storm only temporarily impacted the first week of February, with a strong recovery in the second week [21] Question: Can you discuss the drivers of operating expense leverage? - Management indicated that gross profit margins are expected to remain flat, focusing on growing gross profit dollars higher than adjusted operating expenses [23] Question: What are the biggest challenges or uncertainties for 2026? - Management highlighted inflation, tariff noise, and the need for continued growth as key challenges, but expressed cautious optimism due to a diversified customer base [29] Question: What are the capital allocation priorities for 2026? - Management aims to keep dry powder for potential acquisitions while also returning cash to shareholders opportunistically [31] Question: Any notable regional performance variances? - Management reported strong performance across key markets, including California, Texas, and Florida, with ongoing investments in facilities and sales force [41][42] Question: How is the company leveraging AI for dynamic pricing and customer behavior analysis? - Management stated that AI is ingrained in operations, continuously improving insights into customer behavior and operational efficiencies [49] Question: What is the outlook for the M&A environment? - Management remains cautious but optimistic about finding strategic M&A opportunities that align with the company's growth objectives [51][52]

Kornit Digital (NasdaqGS:KRNT) Q4 2025 Earnings call February 11, 2026 08:30 AM ET Company ParticipantsAndrew Backman - Chief Capital Markets OfficerAssaf Zipori - CFOErik Woodring - Managing Director of Equity ResearchRonen Samuel - CEOTroy Jensen - Managing DirectorConference Call ParticipantsBrian Drab - Partner and Equity Research Analyst of Industrial TechnologyChris Moore - Senior AnalystGreg Palm - Senior Research AnalystJames Ricchiuti - Senior AnalystTavy Rosner - Vice President and Equity Research ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported record revenue of $3.5 billion, a year-over-year increase of 7.9%, with 3.5% being organic growth [6][19] - Full-year 2025 revenue reached a record $13.2 billion, growing 12.5%, with 3.9% organic growth [7][18] - Adjusted EBITDA for Q4 was $255 million, exceeding guidance, while full-year Adjusted EBITDA was $881 million, an 8% increase [6][19] - Adjusted Diluted Earnings Per Share for the full year was $2.51, with an expected increase of 20% for 2026 [18][21] Business Line Data and Key Metrics Changes - New business wins totaled $1.1 billion in 2025, with significant contracts in life sciences, aerospace, and defense sectors [7][24] - Incremental new business revenue of $774 million is already secured for 2026, representing over 20% growth compared to the previous year [7][26] - The company is focusing on high-growth verticals such as life sciences, aerospace, and technology, with a robust sales pipeline of $2.3 billion [24][26] Market Data and Key Metrics Changes - The company noted strong performance across all regions, with organic revenue growth highlighting the resilience of its contractual business model [19] - The North American market is identified as a key growth lever, with a total addressable market of $250 billion [16][73] - The company is experiencing increased demand in the U.S. market, particularly in strategic verticals [16][73] Company Strategy and Development Direction - The company aims to accelerate organic growth and expand margins through leadership changes and operational improvements [9][17] - A focus on automation, robotics, and AI is central to the company's strategy, with plans to deploy nearly 20,000 robots by the end of 2026 [11][27] - The integration of Wincanton is expected to deliver $60 million in cost synergies by the end of 2026, enhancing operational efficiency [21][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic macro environment, emphasizing the value proposition of contract logistics [96] - The company anticipates a solid foundation for growth in 2026, with a focus on high-margin verticals and improved customer engagement [16][75] - Management highlighted the importance of leveraging AI and automation to drive productivity and cost efficiency [11][84] Other Important Information - The company completed a European bond offering of EUR 500 million to refinance upcoming maturities, strengthening its balance sheet [20] - The company is committed to maintaining disciplined capital expenditure and working capital management to support long-term growth [20] Q&A Session Summary Question: Can you speak to your overall philosophy on ensuring GXO's value is recognized by customers? - Management emphasized the importance of client-aligned solutions to deliver value and pricing power in strategic verticals [30][31] Question: Can you walk through how we should think about the cadence through 2026? - Management indicated that EBITDA phasing reflects project timing, with high visibility due to new business wins [32][33] Question: What does the second half run rate look like as we exit 2026 into 2027? - Management noted a strong pipeline and expects benefits from new business wins to accelerate in the fourth quarter and into 2027 [39][40] Question: What are your macro assumptions baked into the guidance range? - Management is assuming flat volumes in operations for 2026, reflecting a conservative view of the macroeconomic situation [48][49] Question: What are the key items that could impact the high and low ends of your guidance? - Management highlighted the speed of new business implementation and productivity improvements as key factors influencing guidance [53][56]