Strong Liquidity and Reduced Net Bank Debt
Total cash and availability of approximately $146 million as of December 31, 2025; net bank debt decreased by $10.9 million to $70.5 million (from $81.4 million) for the 9-month period.
Low Leverage (Net Bank Debt-to-EBITDA)
Trailing 12-month EBITDA before noncash and one-time items of $84.0 million versus net bank debt of $70.5 million, yielding a net bank debt-to-EBITDA ratio of ~0.84, indicating low financial leverage.
Positive Cash Generation and Historical Cash Flow
Generated $23.7 million cash for the 9-month period and approximately $32.8 million for trailing 12 months; approximately $60 million cash from operating activities over the past 2 years (~$3.06 per share on average).
Share Repurchase Activity
Repurchased 669,472 shares for $8.4 million during the 9-month period at an average price of $12.47, demonstrating shareholder return actions.
Sequential Gross Margin Improvement Trend
Gross margin improved sequentially during the fiscal year: Q1 18.0% → Q2 19.3% → Q3 19.6%, and management expects further gross margin expansion in Q4 driven by increased customer ordering and better capacity utilization.
New Business Commitments and Market Tailwinds
Secured numerous commitments for new business with more pending; favorable industry dynamics including rising average vehicle age in the U.S. to 12.8 years (from 12.5 in 2024) and increase in vehicles on road to 295.9 million (from 291.1 million), creating long-term replacement demand.
Growing International and Niche Business Opportunities
Increased aftermarket demand in Mexico (approx. 36 million vehicles, +2.8% YoY; average age 16.2 years); gaining importance in heavy-duty rotating electrical market; diagnostic JBT-1 installed base growing with additional service-related revenue expected; R&D investment in next-generation EV emulator with strategic alternatives being explored.