Hello, and thank you all for joining us today for our Somero Enterprises 2025 results presentation. I'm Tim Averkamp, Chief Executive Officer.

Presenting alongside of me is Vincenzo LiCausi, our Chief Financial Officer. I'll begin with an overview and operating context.

Enzo will review our financial performance, then we will walk through our strategic plan update, summarize, and we'll make time at the end to answer your questions. As we begin the presentation today, I'm excited to note that 2026 marks Somero's 40th anniversary, an incredible accomplishment that began as a simple idea sketched on a paper napkin by the Somero brothers and has grown into a foundation and legacy that's fundamentally changed our industry.

That four-decade journey provides important context for the leadership transition that took place in 2025, a pivotal year for our organization. I'm proud to report that the CEO transition was executed smoothly, providing stability while sharpening our focus on execution.

On April 1st, I stepped into the CEO role, drawing on my experience in the construction equipment industry to help guide Somero's next chapter. My first priority was to listen and learn by engaging with our customers, employees, dealers, and shareholders to better understand what drives our success and where we can further improve.

This reinforced two clear observations: first, Somero's differentiation is real and durable; second, there is meaningful opportunity ahead if we remain focused, disciplined, and intentional in how we grow. At this important moment for Somero, I am humbled and energized to carry forward our legacy, and I'm grateful to the board and my team for their support throughout my transition into the CEO role.

Continuing with the board, we also experienced an important change. Bob Shore, who has served as a director since 2015, has taken on the role of Chairman, succeeding Larry Horsch.

We sincerely appreciate Larry's leadership, past and ongoing as a director, and we welcome Bob as Chairman. With these transitions, we remain committed to strong governance and a disciplined approach to execution.

During the year, we also developed a refreshed strategic framework to guide how we operate and execute going forward. Importantly, our strategy is actively driving execution.

We'll come back to that shortly. Continuing on the topic of leadership, I want to take a moment to highlight the depth and experience of our leadership team and board, which are key strengths of Somero.

Starting with the executive team, Enzo LiCausi, our CFO, whom I mentioned earlier, has been with the company for more than seven years and serves as a strong business partner. Howard Hohmann, our Executive Vice President of Sales, brings 28 years with Somero, along with prior experience as a concrete contractor, which gives him deep industry knowledge and credibility with our customers.

Many of you have met Howard from previous investor meetings. Lastly, Jesse Aho, our President of Global Operations, is approaching 18 years with the company and plays a critical role in driving operational excellence and execution across the organization, including engineering and customer support.

Turning to our independent directors of the board, Bob Shore, Tom Anderson, Larry Horsch, and Anne Ellis bring extensive industry and business experience along with strong governance oversight. Together, the board and leadership team provide continuity, discipline, and a long-term perspective as we continue to execute our strategy.

In the next few slides, I'll provide some high-level background on Somero. Somero pioneered the laser screed category over 40 years ago, and we continue to refine it today.

We serve customers in more than 90 countries, but our differentiation extends well beyond global reach. It's the combination of equipment, training, parts, service, support, and expertise that enables contractors to place higher quality floors with greater productivity and fewer people.

That integrated model is difficult to replicate and underpins our leadership position. From a footprint standpoint, our global headquarters and the Somero Concrete Institute training facility are based in Fort Myers, Florida, with manufacturing, production, and operations centered in Houghton, Michigan.

We compliment that with regional sales, parts, and service centers in Belgium, the UK, Australia, and India, allowing us to stay close to customers and support them consistently across markets. Our competitive advantage is layered.

We lead with innovation and protected technology. We design products directly around customer job-site needs, and we support customers through training and service that extends well beyond the initial sale.

Somero's reputation is built on performance. Our equipment is specified where quality matters most, reinforcing our leadership position.

That performance has earned recognition across the industry, and we remain actively engaged to understand evolving requirements and deliver solutions that advance both our customers and the industry. We actively support multiple industry trade associations globally as part of our commitment, where we frequently interact with our customers, who are also members.

Also note that the image on the bottom right of this slide is from the Concrete Industry Management 2026 auction. Somero is a proud sponsor of the CIM program.

We're pleased to donate a new Hammerhead laser screed in support of this year's auction. The CIM program plays a vital role in preparing the next generation of concrete industry talent, and we're proud to support the students and professionals who will help shape the future of our industry.

Before we get into this year's results, I want to step back and reinforce what has consistently differentiated Somero: a strong financial profile. This slide summarizes the structural characteristics of the model that support profitability through cycles, strong cash generation, and balance sheet flexibility.

Somero's profitability is supported by a premium brand, a flexible operating model, and disciplined cost management. We've demonstrated the ability to remain profitable through the cycles, scale efficiently when demand improves, and protect margins when volume softens.

That resilience is a core strength of the business. We maintain strong cash generation, preserve balance sheet strength, and retain flexibility to invest in growth while continuing to return capital to shareholders.

That financial foundation gives us confidence as we look forward. Our overall product portfolio consists of over 20 products and spans a wide range of applications.

Our laser screeds are used in a variety of applications from small to large pours to more complex commercial placements. Importantly, 2025 product launches strengthen our balance across the portfolio.

We're no longer addressing just the top end of the market. We're deliberately expanding coverage to serve a broader range of contractors and job-site requirements.

Beyond core machines, our broader portfolio supports adjacent workflows, including material placement, grading, profiling, and above-ground applications. Together, these models demonstrate the versatility of the Somero portfolio across a wide range of application and job-site requirements.

Now, I'd like to shift our focus to the business and walk through our results from 2025 and the beginning of 2026. As we step back, there are a few key messages we want investors to take away.

First, 2025 was an uneven year for the construction market with a softer first half followed by improving momentum in the second half. Demand was inconsistent, and decision-making slowed in certain segments, but the year also demonstrated the resilience of the Somero business model.

With this backdrop, our team executed with discipline, protecting margins, preserving cash, and continuing to invest strategically. Second, our strategy is firmly in action.

We refreshed our strategic framework and translated it into how we run the business day-to-day, guided by three clear priorities: fortify, innovate, and amplify. Finally, as we look ahead, late 2025 non-residential momentum has carried into 2026, and customers are reporting healthier activity levels and backlogs while also remaining appropriately cautious.

At the same time, global macro and geopolitical uncertainty remains elevated, and that backdrop continues to influence customer decision-making. Yet, long-term fundamentals remain intact.

Having walked through the broader context, I'd like to highlight a few key outcomes from 2025 that best summarize how the year played out. 2025 finished largely as we anticipated as the year progressed, with a stronger end to the year and full-year performance coming in line with revised market expectations.

That outcome reflects disciplined execution in an uneven market environment. New and next-generation products launched during the year collectively contributed approximately $13 million in revenue, reinforcing the importance of continued investment in innovation even in softer market conditions.

At the same time, we took targeted cost actions that partially offset the impact of lower volumes, enabling us to deliver EBITDA margins of 20% and improving operating cash flow. Strong cash generation supported a solid return to shareholders while still allowing us to invest for the future.

Key investments included continued development of our product and innovation pipeline and the advancement of our refreshed strategic framework plan and initiatives. Together, these actions reflect a year where we balanced disciplined investment, protected profitability and cash generation, and positioned the business for its next phase of growth with additional product launches planned for 2026.

With that, I'll hand it over to Enzo.

Thanks, Tim. Before we get into the 2025 results, I'd like to set the market backdrop for the year.

As we entered 2025, after coming off a strong December in 2024, we expected market improvement in 2026. It seemed as though the market was coming to terms with the monetary environment and looking forward to a pro-business administration.

However, that sentiment changed dramatically with the increase in tariffs, and coupled with interest rate speculation and restrictive immigration policies, created tremendous instability and uncertainty in the market, which persisted throughout the year. Despite these headwinds, we had strong trading in the second half of the year with the help of new products and a seasonal uplift.

Zooming out a bit, it's challenging to gauge the direction of the concrete laser screeding market since it is a niche segment within overall construction, with no specific publicly available data. That said, there are broad measures that provide a sense of the overall construction market and may be indicative of future direction.

We've called out a few of these market indicators. In summary, they appear to show early signs of market stabilization.

Some forecasters call for a slight improvement in 2026. I reiterate that these indicators are not always directly correlated to Somero or our customers, but are nevertheless encouraging.

Our most reliable source of information comes from our customers, and they too have relayed a consistent sentiment. The level of bidding is elevated, and their backlogs are in good shape.

Still, they remain cautious until there is more clarity and confidence in the market. The recent developments in the Middle East certainly don't help matters.

As with other markets in our ROW region, we have a relatively small base of business in the Middle East. It remains to be seen how this conflict will affect the broader markets.

In terms of the competitive landscape, we have not seen any material changes, and Somero remains the clear market leader. As we stated, we ended the year as anticipated, delivering improved second-half results with total revenue increasing 23% over H1, albeit down on a full-year basis compared to 2024.

Cost-cutting measures undertaken during the year preserved profits and cash. Despite the softer profitability, cash from operations remained on par with prior year, aided by several factors including strong advanced customer deposits.

The strong cash generation enabled us to continue to pay out dividends, buy back shares during the year, and end the year in a good cash position. Moving on to the regional performance and starting with North America, which is by far our largest market, revenue in H2 increased 14% compared to the first half of the year, accounting for approximately half of the total increase H2 over H1.

On a full-year basis, revenue was down 17%, driven by lower sales volumes of our boomed and ride-on screeds, as the larger products were more heavily impacted by market headwinds. We continue to attract new customers even during a downcycle, in part benefiting from the entrance into a new customer segment with the launch of the Hammerhead, which Tim will discuss in more detail.

Parts and service revenue declined to a lesser extent than machine revenue, partly due to our heightened focus on recurring revenue. In Europe, revenue in H2 was up meaningfully on H1, albeit down 39% on a full-year basis compared to 2024.

In addition to the uncertainty in the US, which impacted markets globally, the underlying European market continues to be a bit weak, with private investment remaining constrained. As a result, sales volumes were down in our boomed and ride-on screeds.

Sales to new customers was consistent with prior years. The purchasing behavior outside of the US tends to be more project driven, and customers tend to hold on to their equipment longer and don't buy equipment on a regular cadence.

Therefore, a greater portion of revenue in our international regions comes from new markets, whereas in the US, customers will also purchase equipment to keep their fleet fresh and/or upgrade to new technology. Therefore, a greater portion of revenue in the US comes from existing customers.

Sales of parts and service held up, with customers opting to repair and service machines supported by our local sales and service center in Belgium. The Australian market continued to be challenged with a shortage of tradespeople, persistent inflation, and significantly tightened monetary policy to bring inflation back within targets.

Consistent with our other regions, trading in H2 was meaningfully higher than H1, but down 15% on a full-year basis. The revenue decline was primarily driven by lower sales of ride-on screeds, while sales of our boom screeds held steady.

Similar to Europe, a good portion of our revenue comes from new customers. We continue to believe there remains opportunity for us to further deepen market penetration in Australia.

Our rest of world consists of a number of small markets that historically tend to fluctuate. Similar to our other regions, H2 revenue in ROW was also meaningfully up.

On a full-year basis, revenue from ROW was up 10% over 2024, driven by an increase in boom screeds sold in the Middle East. This was partly offset by decline in Latin America.

The next slide reflects comparable sales by product line. In 2025, we experienced declines across all product lines.

Note that our product mix is dictated by project size and application. As mentioned, new and next-generation machines provided an uplift in the second half of the year within the boomed and ride-on categories.

New and next-generation products will remain an integral part of our long-term strategy. We have separated sales of parts and service, including accessories sold with machines, which was previously reported in the other product category, as recurring revenue will be a focus for us going forward.

As such, we're pleased that sales of parts and service were resilient, declining to a lesser extent compared to our machine revenue, despite challenging market conditions. Moving on to our operating results, gross margin was 52% compared to 54% in 2024, reflecting the impact of unabsorbed overhead due to lower sales volume.

On a positive note, annual price increases to offset input cost increases held up. Looking ahead, rightsizing operations puts us in a good position to be more efficient in 2026.

Operating expenses were down compared to last year as expected, following workforce reductions and cost-cutting actions, which were partly offset by non-recurring administrative costs. Lastly, in H1, we incurred non-cash one-time charge related to foreign tax deferred assets, mostly from Australia, which impacted our provision for taxes.

We expect that our effective tax rate will return to normal levels of around 23% in 2026. From a financial position standpoint, the balance sheet remains very healthy.

Ending cash was higher than expected as a result of higher advanced customer deposits, a favorable impact of the new US tax legislation, and lower than planned capex and interim dividends. Receivables were consistent relative to revenue as the majority of our sales are paid in advance.

Inventory remains a bit elevated. There are three main drivers for this.

The first is excess inventory that built up during the COVID period when raw material lead times were extended that has not been fully depleted. Secondly, our short sales order lead times and fluid product mix forecasts necessitate maintaining adequate inventory globally.

The third factor is new product introductions. Moving on to liabilities, current liabilities were up, in part due to the increase in advanced customer deposits.

With respect to cash flows, as noted, the company is generally highly cash generative. The increase in adjustments to net income reflected a non-cash tax adjustment that I've mentioned earlier.

Net working capital benefited from relatively high customer deposits, which is a bit of an anomaly, and therefore, we do not expect will be a recurring trend. Capex was relatively light compared to our typical run rate of approximately $2 million per year.

Entering 2026, we have no major capex projects planned. With the cash generation, we continue to pay out dividends and purchase shares while maintaining a healthy cash position.

As it relates to dividends, the board declared a final ordinary dividend based on our fixed payout ratio of 50% of adjusted net income, which will be paid on May 8th to shareholders of record as of April 10th. Moreover, the board did not declare a supplemental dividend.

Having formalized a capital allocation framework, which I'll talk about later in this presentation, we are prioritizing more aggressive M&A activity and share buybacks, which we intend to double in 2026, increasing from our historical $2 million per year to $4 million. Now I'll hand it over back to Tim.

Thanks, Enzo. In the coming slides, I'll talk about how we're positioning the business going forward and walk through our strategy.

One of our key priorities in 2025 was the development of a clear long-term strategic plan. We introduced the framework to investors in September, and today we'll provide a brief update.

The creation of our long-term strategic plan started with defining a clear set of pillars, simple and durable priorities that reflect what matters most for Somero's next phase of growth. This work has been actively shaped and driven by leaders and teams across the broader Somero organization, ensuring that the strategy is embedded in how we operate day-to-day.

We refer to this next chapter as Somero 3.0, the third phase in the company's evolution: Shaping Excellence. The first phase of the company was about creating the laser screed category.

The second phase focused on expanding the portfolio and building a global footprint. This third phase is about building on that foundation with greater clarity, focus, and consistency across the business.

We anchor the plan around fortify, innovate, and amplify because, together, they capture what the business needs to do well over time: strengthening the core, advancing innovation, and extending our reach in a disciplined way. Since introducing this framework to investors last fall, we've moved beyond definition and have made tangible progress across each pillar even as market conditions remain uneven.

The progress we've made on select initiatives is summarized in the slides that follow. As part of our Shaping Excellence strategy development, we stepped back to re-examine how we articulate who Somero is and where we are going.

This work was about ensuring our purpose and vision clearly reflect the next phase of the company's evolution. Historically, our vision emphasized the reach of our technology and its presence wherever concrete is placed.

That framing reflected an earlier stage of Somero's growth when expanding adoption, scale, and category leadership were the primary objectives. Today, Somero has expanded how we define leadership.

We continue to lead with differentiated products and technology while increasingly focusing on the value they create, the problems they solve, and the standards they set for our customers and the industry. Our updated purpose: to shape a future where innovation and excellence lead the way, defines why Somero exists and the mindset we bring to everything that we do.

Our vision: to level today's challenges to build tomorrow's solutions, defines the future we are building toward with a clear focus on impact, problem solving, and long-term relevance. Together, these statements shift the focus from product presence to customer outcomes, industry leadership, and sustainable value creation while providing clear direction as we execute our strategy.

Our core values remain consistent and serve as our guiding principles. Culture plays a critical role in bringing this to life, especially in more challenging markets.

Our values emphasize accountability, problem solving, urgency, and customer focus. They help guide key decisions throughout 2025, from cost actions to investment priorities.

When markets are strong, culture accelerates growth; when markets soften, culture protects the business. Ours does exactly that.

Under fortify, our focus has been on reinforcing the foundation of the business, including aligning cost with demand. We took targeted cost actions in 2025, but importantly, we did so while protecting core capabilities and continuing to invest where it matters most.

We are embedding lean practices and improved execution discipline in our operations, creating a more resilient operating model. This work strengthens consistency across the organization, improves decision-making speed, and ensures we can scale efficiently as market conditions improve.

The result is a business that remains disciplined through softer markets, but is also well positioned to respond quickly and effectively as demand recovers. Training and support are central to how we differentiate Somero.

One such area is the exceptional training offerings that we provide to our customers. Our approach extends and complements long-standing on-site contractor training with structured education through the Somero Concrete Institute, helping customers ramp up faster, use their equipment more effectively, and achieve more consistent job-site results.

Work began at the end of 2025 on development of our European Somero Concrete Institute in Belgium. Recently launched in the first quarter of 2026, we've expanded the proven model of the Fort Myers, Florida, SCI to better support customers locally in Europe.

We're excited with the launch and expect results in higher utilization, improved productivity, and stronger long-term value for our customers while also supporting aftermarket engagement and recurring revenue for Somero. Innovate is our second pillar.

Innovation has been a core pillar of Somero since our inception. This slide highlights key product launches from 2025 that we referenced earlier in our first-half results last September that are now active in the market.

These innovations reflect our focus on delivering practical job-site value while reinforcing Somero's category leadership. The SRS-4e, our first electric boomed laser screed launched in 2025, delivers gas-equivalent performance with zero emissions and onboard charging.

It allows customers to place large volumes of concrete efficiently while meeting evolving environmental and site requirements. We also launched the next-generation S-15EZ in the summer of 2025, building on a proven platform with enhanced automation, maneuverability, and integrated intelligence.

The result is higher floor quality, improved productivity, and easier operation and maintenance for customers. Together, these 2025 launches demonstrate how we're advancing the core portfolio, addressing customer needs today while expanding our opportunity set for the future.

The Hammerhead ride-on screed is strategically important for Somero because it expands our addressable market and lowers the entry point for customers to adopt a Somero machine. We launched Hammerhead in the second half of 2025 to address a large global segment of contractors who either continue to place concrete manually or have been challenged to understand or justify the return of a larger boom screeding solution.

Importantly, Hammerhead creates a new entry-level market, particularly in the US. Additionally, in certain international markets, it also provides customers with a compelling Somero alternative to certain lower-priced imported machines while delivering core Somero performance, reliability, and support.

Strategically, Hammerhead is more than a single product. By bringing these customers into the Somero ecosystem earlier, it establishes long-term relationships and creates a natural upgrade path as customers grow into larger, more complex applications over time.

In that way, Hammerhead expands the funnel, strengthens lifetime customer value, and reinforces Somero leadership across a broader range of the market. Our technology development goes beyond the iron.

Through the 2025 introductions of virtual reality training, the Somero Experts app, and standard telematics on large boom screeds, we're using digital tools to help customers ramp up faster, reduce downtime, and get more value from their equipment. Together, these capabilities improve utilization, uptime, and overall customer experience, again, extending Somero's value well beyond the machine.

The next-generation S-22EZ Plus represents a significant advancement of our flagship S-22 platform and underscores our continued focus on innovation at the top end of the portfolio. We launched the S-22EZ Plus at World of Concrete in January 2026, and it builds directly on customer feedback and job-site experience.

With more than 30 new features, the S-22EZ Plus is focused on automation, ease of use, and consistency. Enhancements like one-touch stabilizers, automated elevation control, proportional head rotation, and improved hydraulic performance simplify operation while delivering more consistent results on the job site.

Importantly, the S-22EZ Plus also incorporates enhanced connectivity, diagnostics, and utilization insights along with operator-focused features like cameras, remote control, and the easy-clean head. The result is higher productivity, improved uptime, and easier-to-run machines that help customers place quality floors more efficiently and with fewer people.

Viper is another example of how we're expanding the portfolio to broaden access to Somero technology. Also launched at the World of Concrete in January 2026, Viper is a compact, walk-behind laser screed designed to bring Somero-level precision to smaller pours and more constrained job sites.

With accurate grade control and a lightweight, maneuverable design, Viper delivers consistent floor quality and faster placement, particularly on decks, weight-sensitive applications, and confined spaces. It allows contractors to improve productivity and reduce labor requirements on small jobs while maintaining the quality standards Somero is known for.

Under our third pillar of amplify, we've been focused on strengthening how we go to market and how we support customers across the full equipment lifecycle. A key area of progress has been commercial coverage, ensuring we are closer to the customer, more responsive, and better aligned to their needs.

We have continued to strengthen dealer coverage across both domestic and international markets, with particular focus on supporting the launch of the Hammerhead. This expanded dealer presence helps us reach a broader audience of contractors, especially those entering laser screeding for the first time, and improves accessibility in local markets.

At the same time, we've introduced product-specific territory managers to provide deeper specialist expertise and clearer accountability across product lines. This more integrated commercial approach is designed to support adoption and utilization while driving growth in parts, service, and training revenue over the equipment lifecycle.

Together, these actions strengthen customer relationships, support more resilient aftermarket performance, and position the business well for long-term sustainable growth. I'll now turn it back over to Enzo to speak about our updated capital allocation and M&A framework.

Thanks, Tim. In conjunction with the refresh of our strategic plan, we formalized a capital allocation framework and an M&A framework as part of our amplify pillar.

Our overall capital allocation philosophy is to take a disciplined approach that prioritizes balance sheet strength, invest in value-creating growth, and return capital reasonably to shareholders. To do this, we have defined the following four priorities in order of importance.

The first priority is to maintain a strong and flexible balance sheet with sufficient cash to support day-to-day operations, fund strategic initiatives, and provide a cushion against unexpected market conditions. The second priority is to invest in the business to drive organic growth through commercial and operational expansion, excellence, and efficiency.

The third priority is to pursue value-accretive acquisition opportunities that build on the core business and expands our total addressable market, which we would intend to fund with existing cash and possibly a conservative level of debt, no more than 2x EBITDA. I'll talk more about the M&A framework in a moment.

The fourth priority is to return capital to shareholders in a sustained, balanced, and strategically aligned manner via dividends and share buybacks. Next, we established a disciplined M&A framework designed to expand Somero's reach, enhance capabilities, and drive long-term value creation.

Our focus is highly selective and aligned with our strategic priorities, whether that's technology and product enhancement, recurring revenue, or expanding our addressable market. To support this, we've engaged an experienced advisor to reinforce process discipline, targeted outreach, and an opportunity assessment.

While we remain early and patient, active discussions are underway, guided by clear strategic filters and strict financial criteria. Importantly, we're committed to maintaining financial discipline.

Any transaction must meet our return thresholds, be accretive to free cash flow, and strengthen the business operationally and commercially. This approach allows us to stay active, but disciplined as we look to deploy capital in ways that create durable shareholder value.

With that, I'll hand it back to Tim to close out the strategy section.

Thanks, Enzo. As we walked through the strategic plan, it's clear that the fortify, innovate, and amplify framework is embedded in how we operate day-to-day.

I'm encouraged by the level of engagement across the organization and the tangible progress already underway. Our focus now is on consistent execution.

That means delivering against priorities, refining initiatives as we learn, and allocating resources where they create the greatest impact. As we move forward, we will continue to build on this foundation, demonstrate progress over time, and translate that strategy into consistent execution and performance.

As we wrap up, I want to bring this all together and leave you with a few key takeaways as we look ahead to 2026. Late 2025 momentum has carried into 2026 with customers reporting healthier activity levels and improving backlogs.

At the same time, customers remain appropriately cautious given elevated macro and geopolitical uncertainty, and we continue to plan with discipline. While softness in the boom screed category is expected to persist, we believe disciplined strategic execution and continued expansion into new customer segments can help offset that pressure over time.

Our broadened portfolio, improved commercial coverage, and increased focus on utilization and aftermarket engagement are designed to support performance through the cycle. Our strategy is actively driving execution.

Our expanded portfolio is broadening customer reach. We are maintaining strong cash discipline and balance sheet flexibility, and the long-term fundamentals supporting non-residential construction remain intact.

Taken together, the board expects 2026 revenue, profitability, and cash generation to be broadly comparable to 2025. As I reflect back on my first year as Chief Executive Officer, I'm proud of what the team has accomplished in 2025.

It was a challenging year, but one where we executed with discipline, protected profitability, continued to invest in innovation, and strengthened the foundation of our business. I want to thank our employees across the world for their commitment, professionalism, and resilience throughout the year.

With that foundation in place, we are approaching 2026 with confidence, discipline, and flexibility, and we believe Somero is well positioned to perform through the cycle and create long-term value. With that, I thank everyone for their attention.

We'd now like to open the floor for questions.

Thank you. That's a great question.

Certainly, we take into consideration our cost of capital. We would engage in a potential opportunity for M&A to the extent that we feel we could get a greater return from an acquisition than our cost of capital.

Obviously, share buybacks will continue to be part of our capital allocation policy. Nevertheless, we feel that we can generate higher accretive earnings through an M&A deal than simply just doing share buybacks.

Sure. That that was set out as a a cap, really, and would only be used for purposes of consummating a an M&A deal, and for really no other reason.

We've established that threshold really to give us, or that that cap, to give us flexibility to potentially do multiple deals over time or to do more meaningful deals. Clearly, we have sufficient cash in and of ourselves itself to be able to fund a small transaction.

If that was the the situation, we would probably not take out any additional debt. To the extent we have multiple deals, multiple opportunities, or opportunities that are of of more meaningful size, then we would be willing to take out debt.

We've also demonstrated during the downcycles that we can continue to remain cash-flow positive and so be able to service that debt in the future.

Maybe I'll take a step back, and I'll add some additional commentary to that. As Enzo went through our M&A framework, and we put a lot of structure and tools and process in place for us to assess.

Again, we're very early in that assessments and our outreach as it works right now. Enzo reinforced that we're really focused on maintaining financial discipline.

We know from the historical standpoint, we've been very focused on cash preservation and generation. We'll be very selective as we go forward.

We're not going to be looking for opportunistic things. It has to be things that make sense and add synergy to us as we go forward.

I'm confident that, again, those will be only in play if we have a great deal. Again, we're early in the throes of that advancement.

That's a great question. Again, we're very early in that outreach.

As we talked about, and some of you who are very familiar, Somero is a leading brand, right? We really created the laser screed category.

Our brand is synonymous with quality and robustness. We've had early conversations with certain potential strategics.

They've actually commented to us that they may have been approached by other private equity, other investors, but they see the strategic value by joining forces with the Somero. Again, not every target will be something that will want to pursue, but again, we see that, we hear that feedback.

When we think about our customer interactions, my first year in the job, I visited a lot of customer job sites, and we often hear from our customers that we make great products. Again, we change the lives of the contractors in the way they do business, but it's not just the equipment.

Again, it's the service, the solutions, all those type of things that we provide. They often say, again, "As you guys support your equipment, if there was other things that were part of your offering, we'd be more than willing to purchase."

Again, those are things that we think with confidence. Again, it has to be a great match for us, but we have received feedback that from a strategic perspective, we can add value.

Absolutely. We had previously reported that we've had competition historically from the beginning.

In the US, there is one competitor. Outside the US in Europe, there are a handful of competitors.

Most of them are just entrepreneurial individuals, don't have the capabilities that Somero does. However, in 2024, there was a manufacturer from China that started gaining some traction in European countries, particularly Spain and Portugal and the like, really marketing to the low end of the market.

They're selling purely on price, typically less than half of what we sell our machines at. They don't have sort of the staying power, haven't demonstrated staying power, the ability to support their customers like we do, the ability to supply parts, and laser screeding is a high-risk industry.

Our customers are relatively small companies, and if they have a floor that does not pass the flatness specification, then they may have to tear it up and replace it, it could potentially bankrupt them. Particularly in the US, highly unlikely that they would risk their reputation and their business by taking on a Chinese machine.

In Europe, customers tend to be a little bit more price-sensitive, and then again, at the low end of the market, they're willing to take a risk on this equipment. Generally, if they're customers working on a high-profile project, be it a data center or warehouse, highly unlikely that they would take that risk.

Year-over-year, we have not seen any material change. Somero remains the market leader.

We had engaged a outside party to undertake a study for us because there is no public information relative to market share. In conclusion, basically came out that Somero was at least 80 to 85% of the market.

Still clearly the market leader. We continue to monitor the situation with the Chinese and really promote the fact that our support and service and parts availability, training, expertise, there's also a consultative aspect to our selling is really unparalleled, and that is really the moat around the business.

Great point, Enzo. I'll add to that.

As Enzo talked about, as part of our strategic plan refresh last year, we did do some research on market penetration and strategy, and certainly, that solidified that we continue to maintain that share of market. We'll continue to do that as we go forward.

From our strategies, we talked about with the pillars, the focus on fortify, innovate, and amplify is really helping us take back share, look for opportunities there. We talked about increasing our level of training, increasing our level of service support.

Again, we believe that that's great value prop that Somero provides that the competition can't, we're really close to our customers on that side. The launch of the Hammerhead product, really bringing a lower entry-point product that's in the Somero ecosystem to provide a different offering, a lower price point to bring customers in where they don't have to pay for the lower price machine and have a concern about the lifetime support of it.

Then, again, growing our channel footprint to get our reach out there to expand that. We're executing that through our strategic initiatives, and we're very focused on making sure that we maintain and deliver solutions to our customers.

Yeah. Our customers do a variety of work, including data centers, and that is a hot area for us.

Really to put it into context, at least in the US, data center spending represents 5 to 6% of total private non-residential construction. Although the headlines make it sound like it's sort of a boom, which, to some extent it is, in the big picture, it's really not as big as the broader markets.

Given the fact that some of the other market segments have declined since the peak in 2021, warehousing in particular, manufacturing, warehousing, although it's contributed and it's been accretive, it hasn't completely backfilled for the declines in other segments. Overall, construction continues to decline since 2021.

That's a great question. Again, we're a very agile organization.

I think we've demonstrated over time our flexibility to move with the business, to move with the market and the cycle. We're a very capital-light business.

We're predominantly assembly manufacturing operation. We do some shot blast and painting.

We source a lot of our bigger components. Our focus is really trying to streamline some of our assembly operations.

We put it within the presentation, simple focus on 6S, which is very rudimentary, but focus on lean manufacturing, continuous improvement. Some examples would include visual management boards, focus on safety, quality, delivery, cost.

We're really rolling that out through a pilot program right now. We haven't laid on that programs deliverables that we're going to share right now, but, again, we're early in that journey.

Providing some visual management tools to really get our systems more efficient as we go forward. Again, we're good, but we think we can get better and fortify the business overall.

Good question. Our base case for 2026 considers the decline in our large-line boom screeds.

For the previous 3 years, we've seen 20-plus percent decreases in the large-line booms that are sort of applicable for the larger projects that have been more acutely impacted by some of the macro factors that we talk about. Therefore, the base case assumes that that trend will continue in 2026.

Now, we have seen some early signs of stabilization. As noted, we certainly had momentum at the end of 2025, and that has carried over to 2026.

It's a bit early to conclude that that's a trend. For the moment, from a budget standpoint, we're assuming that that trend on the large line continues.

We'll offset that with increases in sales of our Hammerhead, which we had launched in August, really, when we were really fully selling. We'll have a full year of selling the Hammerhead, as well as adding to the dealer network.

On balance, we'll be broadly in line with 2025. That said, I think if the trend on the large line sort of settles and we don't get the continued decline, there could be the potential for improvement in 2026.

Of course, that's considering any geopolitical or other things that happen in the overall global perspective, right? Good question.

Thank you for asking that.

Yeah. At the moment, we are prioritizing a heightened emphasis on M&A.

In part, preserving some of that cash to fund an M&A transaction. We did increase the share buyback 100% compared to what it was before.

It was previously $2 million, we've doubled it to $4 million. There are currently no plans to change that, but we will continue to assess it on a go-forward basis.

Yeah. Generally, it's 5 to 10 years, depending on utilization and also depending on geography.

In the US, it tends to be shorter. Customers like to keep their fleets fresh.

They'll also upgrade for new technology, and they tend to replace the equipment after it's paid off, whereas in Europe and Australia, they tend to hold on to the equipment a bit longer. They'll purchase for specific projects.

They don't tend to upgrade for new technology.

I'll add to that. I think part of that question was what's that look like from a recovery.

When Enzo talked about the declines that we've experienced over the two past 2 or 3 years, that's really off a high peak that happened in 2022 when Somero's business really grew 150% overall. Again, that's forecast as the decline really depends on utilization.

We've done some simple math, and we would expect that there could be some stabilization, replenishment starting later this year or next year. We're not quite sure what that looks like.

Again, as that gets to be more normal, we would expect that'll be similar to the past cycles that we've seen over time in terms of replenishment.

Thank you so much. Again, thanks for everybody's time.

I'd like to just end on three notes just to kind of summarize what we've talked about today. I think we've carried late 2025 momentum into 2026, and customers remain cautious considering some of the uncertainty.

We're focused still on delivering robust financial performance overall like we've demonstrated over time. Then third, really, our strategy is in action.

It's no longer theory. It's really in action.

We're focused on execution right now. With that, I thank you all for your time, and appreciate your engagement today.