Finning International Inc.

Thank you for standing by. This is the conference operator. Welcome to the Finning International Inc. fourth quarter 2025 investor call and webcast. 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. Analysts who wish to join the question queue may press star 1 on their telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. I would now like to turn the conference over to David Primrose, Executive Vice President and Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Finning's fourth quarter earnings call. Joining me on today's call is Kevin Parks, our President and CEO. Following our remarks, we will open the line to questions. This call is being webcast on the Investor Relations section of Finning.com. We have also provided a set of slides on our website that we will reference and an audio file of this call and the accompanying slides will be archived. Before I turn it over to Kevin, I want to remind everyone that some of the statements provided during this call are forward-looking. Please refer to slides 10 and 11 for important disclosures about forward-looking information as well as currency and specified financial measures, including non-GAAP financial measures. Please note that forward-looking information is subject to risks, uncertainties, and other factors as discussed in our annual information form under key business risks and in our MD&A under risk factors and management and forward-looking information disclaimer. Please treat this information with caution as our actual results could differ materially from current expectations. In addition, unless otherwise noted, this presentation reflects the results of continuing operations only. Kevin, over to you.

Thank you, Dave, and good morning, everyone. We appreciate you taking the time to join us on the call today. 2025 was another strong year for Finning. I'm grateful for our team's hard work and their disciplined execution of our strategy. We are proud of our many accomplishments that we achieved together. We grew our business in all three regions. We built our backlog by 20% since the end of 2024 and simplified our operations to further focus on growth in our Caterpillar dealerships. This included restructuring areas of our back office and head office and completing the sale of 4E fuel. We continue to grow our product support revenues in a dynamic business environment where we strive to control what we can, supporting our customers with their toughest challenges and earning their loyalty from them in the long term. Our earnings are more resilient, and our cost and capital position is significantly improved, fundamentally enhancing the long-term earnings capacity and return profile of our business in all market conditions. We continue to be well positioned to capture opportunities for further product support growth, driven by equipment population growth and transformational growth in power, energy, rental, and used equipment. As with last quarter, my prepared remarks will concentrate on the long-term, I will also provide a brief update on our 2023 Investor Day objectives that we set out to achieve by the end of the year 2025. I'll then turn the call over to Dave, who will provide details on our results in the quarter. Starting on slide two, the strong momentum we developed in the first nine months of the year continued through the balance of the year, with revenues up 7% to $10.6 billion in 2025. We also continue to building our backlog to a record 3.1 billion at the end of the year, while at the same time achieving record new equipment revenue. Our product support revenue continues its steady growth trajectory, up 8% in 2025 to almost $6 billion, with strong activity levels in mining in Canada and South America, growing at 10% and 5% year-over-year respectively. Our strategy remains consistent. We are as focused as ever on growing rebuilds, contracted service, and we have recently launched a services commitment in Canada and improving our responsiveness and building loyalty. All of this means building our technician base, where we added 225 new technicians across our region and expanded our workshop capacity to enable us to better serve our customers and capture growing product support opportunity. This is all, of course, enabled by enhanced digital and technology capabilities. We are very pleased with the resilience and growth of our earnings year over year. Adjusted earnings per share increased 14% in 2025, and our SG&A margin is now 15%. The lower fixed cost base of our business will continue to support a more resilient earnings profile in the future. Our consistent focus on invested capital velocity continued all year, with our invested capital balance ending the year only slightly higher than the prior year, while growing our revenue by 7%. As we noted on our last call, we expected free cash flow to be to inflect positive in Q4, and we are pleased to have generated nearly 550 million of free cash flow during the year. From a sustainable growth perspective, we continue to see strong growth in our power and energy business, as well as some recovery of rental activity in Canada. Our power and energy backlog at the end of December remains strong at $1 billion, up 25% from December 2024, and continues to reflect a diverse mix of prime power packages, oil and gas-related equipment orders, and data center standby packages to be delivered through 2027. We are pleased to start to see the recovery in construction sector in Canada, with rental revenues up 9%. We believe this market remains attractive, and we are committed to enhancing our rental business in the long term. Turning to slide three. We are proud of the results we achieved by executing our strategy outlined as our investor day in 2023. As I mentioned earlier, product support revenues are nearing $6 billion, up from $5.2 billion on a trailing 12-month basis at the end of Q2 2023, just before our investor day. We have always remained constructive on our product support growth prospects, despite some market dynamics that were out of our control. believing we have the opportunity to win share by supporting our customers to achieve their goals. Our consistent focus on providing customers with comprehensive maintenance, repair, and rebuild options, coupled with a growing technician base, has positioned us well to continue to grow this important segment. The recovery in product support in 2025 supports our conviction to continue to drive product support. From a full-cycle resilience perspective, we are extremely pleased to have delivered all of our objectives. We moved our invested capital turns into our target range of 2.3 to 2.5 times. We lowered SG&A margin to 15%, well below our target of 17%, and successfully executed a number of capital optimization initiatives, which we previously highlighted when we announced the four refuel sale. In terms of sustainable growth, we have also made solid progress. We are participating more in the used equipment market, with used equipment revenues up 31% since investor day, And our power and energy business continues to perform strongly, with revenues up 41% since Q2 2023, and our backlog is up over 70%. The rental market opportunity remains large, and we will continue to invest carefully into this market as the outlook improves. All of our initiatives and results have driven returns to a higher and more sustainable level within our 18% to 25% adjusted return on invested capital target range in all quarters but one since the investor day. In 2026, we will continue to execute on our strategy that we outlined in our 2023 Investor Day, as there remains meaningful opportunity in each of our three strategic priorities. With that, I'll hand the call back to Dave, who will provide more detail on our results in the quarter and our outlook. Thank you, Kevin.