ATCO Ltd.

Thank you for standing by. This is the conference operator. Welcome to the fourth quarter 2025 results conference call and webcast for ASCO Limited. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I would now like to turn the conference over to Mr. Colin Jackson, Senior Vice President, Financial Operations. Please go ahead, Mr. Jackson.

Thank you, and good morning, everyone. We are pleased you could join us for ACCO's fourth quarter 2025 conference call. On the line today, we have Katie Patrick, Chief Financial and Investment Officer, and Adam Beattie, President of ACCO Structures. Before we move into today's remarks, I would like to take a moment to acknowledge the numerous traditional territories and homelands on which our global facilities are located. Today, I am speaking to you from our ACCO Park head office in Calgary, which is located in the Treaty 7 region. This is the ancestral territory of the Blackfoot Confederacy, comprised of the Siksika, the Kainai, and the Pagani Nations, the Tsutina Nation, and the Stony Nakota Nations, which includes the Chinniki, Bearspaw, and Good Stony First Nations. I also want to recognize that the City of Calgary is home to the Métis Nation of Alberta, Districts 5 and 6. We honor and respect the diverse history, languages, ceremonies, and culture of the Indigenous peoples who call these areas home. Today's remarks will include forward-looking statements that are subject to important risks and uncertainties. For more information on these risks and uncertainties, please refer to our filings with the Canadian securities regulators. During today's presentation, we may refer to certain non-GAAP and other financial measures, including adjusted earnings and adjusted EBITDA. These measures do not have any standardized meaning under IFRS, and as a result, they may not be comparable to similar measures presented by other entities. And now, I'll turn the call over to Katie for her opening remarks.

Thanks, Colin, and good morning, everyone. Thank you all for joining us today. Can I just say what an incredible year ATCO had in 2025? In the face of so much geopolitical and economic uncertainty, we achieved 8% year-over-year earnings growth with all of our segments delivering growth. I know I've spoken about this before, but I want to take a moment and discuss ATCO's investment portfolio and the strategy we are pursuing that has led to our continued success. Our globally diversified portfolio focuses on the essential services space, tackling the world's most urgent challenges in housing, defense, energy, and our complementary investments that align with our long-term growth plans. Looking at the global landscape today, I think we are incredibly well positioned to capitalize on core macroeconomic trends. Specifically, we are seeing record demand for our modular housing capabilities, which Adam will touch on later, in defense, we remain leaders serving communities in the north and supporting Canada's defense sector. We are ready to maximize this positive momentum in 2026. Within energy, ATSCO's majority ownership of Canadian utilities provides exposure to both regulated and non-regulated energy assets. And lastly, on investments, we maintain a 40% ownership of Nel Tume ports, along with our retail energy business and other complementary investments tied to the essential services space. Combined, these business segments drive growth for our total portfolio, generating stable earnings and dividends for our shareholders. Core to Axel's portfolio strategy is our focus on a long-term, sustainable dividend and continuing our status as a dividend queen. We think about our dividend resiliency by bifurcating our portfolio to balance yield and long-term growth. To that end, we focus on profitability. Foundational investments, which you see at the bottom of the triangle on the slide, which drive stable and reliable cash flow and earnings for the entire portfolio. Value investments in the middle, which provide a balance between cash yield and growth. They will have some cyclicality, but generally have the ability to drive better returns. And at the top, we have growth investments. These businesses have less ability to contribute to the current dividend due to their need for growth capital, but they provide an opportunity to deliver higher than utility growth while delivering diversification for the overall portfolio. We recently announced another year of increases to our dividend, marking our 33rd year of consecutive dividend increases. Now, moving to our consolidated results for 2025, it's evident that our portfolio strategy that I just spoke to is working. Apto had a strong year, achieving adjusted earnings of $518 million in 2025, or $4.61 per share, up $37 million and 8% year-over-year. As I mentioned, all of our segments delivered earnings growth in 2025. These results are reflective of the discipline and commitment to our long-term strategy. at the structures and logistics adjusted earnings increased $17 million year over year to $121 million. Higher adjusted earnings for full year 2025 were driven by strategic expansion in the United States, successfully leveraging newly acquired manufacturing facilities in Canada to expand our geographic footprint, including into central Canada, and growth from permanent modular construction, including increased activity across the housing continuum. AXO Structures and Logistics is well positioned for the year ahead, given its extensive experience supporting the defense sector and its ability to respond quickly in crisis events. Our knowledge and skills are evidenced by the United States Air Force's renewal of our Alaska radar system contract in the north. We are also one of only two Canadian companies to secure a position on the U.S. Navy's worldwide expeditionary multiple award contract, which allows the team to bid and win task orders under this $20 billion program. As shown on the graph, ATSA Investments reported $52 million in earnings for the year, up $15 million year-over-year. This growth was largely driven by Nel Tumei Ports, which achieved $35 million of earnings for the year. This business saw favorable cargo mix and improved margins across its operations. Other investments, which include AptoLand and Development, AshCorp, and AptoEnergy, also bill printing at about $14 million year-over-year.