10/16/2025

speaker
Operator
Conference Operator

Ladies and gentlemen, thank you for standing by. Welcome to Interpac Tool Group's fourth quarter fiscal 2025 earnings conference call. As a reminder, this conference is being recorded October 16, 2025. It is now my pleasure to turn the conference over to Travis Williams, Senior Director of Investor Relations. Please go ahead, Mr. Williams.

speaker
Travis Williams
Senior Director of Investor Relations

Thank you, operator. Good morning, and thank you for joining us for Interpac Tool Group's fourth quarter and year-end fiscal 2025 earnings call. On the call today to present the company's results are Paul Sternlieb, President and Chief Executive Officer, and Darren Kozik, Chief Financial Officer. The slides referenced on today's call are available on the investor relations section of the company's website, which you can download and follow along. A recording of today's call will also be made available on our website. Today's call will reference non-GAAP measures. You can find a reconciliation of GAAP to non-GAAP measures in the press release issued yesterday. Our comments will also include forward-looking statements that are subject to business risk that could cause actual results to be materially different. Those risks include matters noted in our latest SEC filings. With that, I will turn the call over to Paul.

speaker
Paul Sternlieb
President and Chief Executive Officer

Thanks, Travis. Good morning, and thank you for joining us for our year-end fiscal 2025 earnings call. As I look back at the year just ended, I am extremely proud of our team, our many achievements, and the fundamentals that truly differentiate Interpac. Obviously, we're operating in a very challenging and dynamic environment marked by ongoing weakness in the industrial sector and widespread economic uncertainty. That said, Interpac posted record revenue in fiscal 2025. We also delivered a robust suggested EBITDA margin of nearly 25% with opportunity for further improvement in the coming years. On the innovation front, we launched five new products with more to come in fiscal 2026. Notably, these products continue to ramp commercially. We successfully integrated the acquired DTA business, which, as Darren will elaborate, ended the year on a very strong note. And our e-commerce business continues to gain traction with customers hosting 32% growth in fiscal 2025. We've also continued the rollout of our Discipline Commercial Process, Interpac Commercial Excellence, or ECX. As of year-end fiscal 2025, we began introduction into our third and final region, APAC. And in the fourth quarter, we repurchased a record $40 million in Interpac stock, bringing the total for fiscal 2025 to $69 million. As we look to fiscal 2026, we are cautiously optimistic. While Europe remains a wild card, the prospect of lower interest rates and greater certainty around tariff policy, along with healthy activity in the infrastructure sector, are encouraging. Let me turn the call over to Darren, who will walk you through the highlights of fiscal 2025. He'll also provide our initial guidance for fiscal 2026. Then I'll come back to share some more color on key initiatives and several exciting project wins. Darren? Thanks, Paul.

Disclaimer

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Investor presentation