Improved Profitability and Margin Expansion
Adjusted operating income rose to $14.2M for FY2025 (up $9.1M vs prior year, approximately +179% year-over-year pro forma). Adjusted EBITDA was $49.0M for FY2025 (pro forma increase ~4.7% YoY) and Q4 adjusted EBITDA was $12.9M (up from $12.1M; +6.6% as-reported; pro forma increase of 9.3% YoY). Adjusted EBITDA margin expanded ~70–100 basis points (FY pro forma 11.6% and Q4 12.3%).
Gross Margin Progress Toward Multi-Year Target
Adjusted gross margin was 18.8% in Q4 and 18.5% for FY2025, trending toward management’s 20% five-year goal.
Successful Transformation and Cost-Out Achieved
Majority of heavy spending portion of transformation completed: closed and consolidated 4 plants and right-sized ~800 employees. Achieved $15M of cost-outs in 2025 and targeting an additional $10M of cost reductions in 2026. SG&A decreased to 10.9% of sales.
New Business Momentum and Large Pipeline
Management reported over $200M of new wins since mid-2023 (trailing three-year wins noted) and an $800M pipeline of high-quality prospects. The company expects to pursue $70M–$80M of new wins in 2026 and plans to launch over 100 programs in 2026.
Segment-Level Wins and Mix Improvement
Power Solutions full-year pro forma net sales improved 5.3% to $178.6M; Power Solutions adjusted EBITDA increased ~10.8% to $30.7M. Mobile Solutions achieved margin expansion (Q4 adjusted EBITDA margin 16.9%, up ~160 bps YoY) driven by shedding dilutive business and improved mix.
Return to Sales Growth Guidance for 2026
Company guided to net sales growth for 2026: $445M–$465M, signaling management expects a return to top-line growth after portfolio rationalization and ramping new programs.
Capital Allocation Shift to Growth
Management plans to roughly double growth CapEx in 2026 (net CapEx ~ $20M vs ~$10M in 2025), with ~75%+ of CapEx directed to program launches and growth-related equipment.
First Entry into Data Center Market
Company announced its first new business win in the data center market (watertight couplings for water-cooled computing equipment) and characterized the ramp as immediate with attractive margin characteristics; data center identified as a key target market going forward.