Margin expansion drives profitability gains. CEO Aaron Schapper highlighted the transformation progress: “We delivered annualized cost savings of $20 million, primarily in SG&A, structurally reducing expenses while also optimizing organizational efficiency.” Adjusted operating margin expanded 230 basis points to 11% in Q4 as the company benefited from favorable mix and higher volume. CFO Sam Rutty noted the structural nature of the improvements: “We’ve made that structural change in our cost base,” adding that the company continues to focus on cost reductions and operating efficiencies to drive sustainable profitability. Material handling adjusted EBITDA margin reached 25.6%, expanding 290 basis points year over year.
Infrastructure backlog hits record high. The company’s ground protection matting business entered 2026 with its largest backlog in history, driven by ongoing utility projects, data center construction, and conversion from wood to composite matting. Management expects strong growth in infrastructure markets to continue, supported by mega build-outs tied to AI infrastructure investment. Free cash flow improved 23% to $67.2 million for the full year, enabling the company to reduce net debt by $44.2 million and return $23 million to shareholders through dividends and share repurchases. The company ended 2025 with a net leverage ratio of 2.4, within its target range of 1.5 to 2.5.
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