Martinrea International Inc.

Good evening, ladies and gentlemen. Welcome to the fourth quarter 2025 results conference call. I would now like to turn the meeting over to Mr. Rob Wildeboer. Please go ahead.

Good evening, everyone. Thank you for joining today. We always look forward to talking to our shareholders, updating you on our business and answering your questions. We also note that we have other stakeholders, including many of our employees on the call, and our remarks will be addressed to them as well. as we disseminate our results and commentary to our network. With me this evening are Patrick Rameau, Martin Reyes' CEO, our President, Freddie Tostal, and our CFO, Peter Cerullos. Today, we will be discussing Martin Reyes' results for the fourth quarter in full year and in December 31, 2025. I refer you to our usual disclaimer in our press release and our file documents. On this call, Pat will outline some key highlights and achievements in 2025, touch briefly on the quarter, and comment on some of our key initiatives, including machine learning and artificial intelligence. Fred will discuss operations. Peter will go over the financials and our outlook for 2026 and beyond. And I will conclude with some comments on the current trade environment, capital allocation, and valuation. Then we'll open it up to Q&A. So without further ado, here's Pat.

Thanks, Rob, and good evening, everyone. Let me start with a few highlights from this past year. Our safe results continue to be world class. Our total recordable injury rate, or TRIF, was .71 in 2025, which is among the very best in our industry and much better than the average, which is around three. We've said it before, there's no better way to show your people that you care about them than to keep them safe. Moving on, we generated just under $200 million in free cash flow in 2025, a new record for the company. This is now the third year in a row where we have generated free cash flow in the $150 to $200 million range. We have delivered on our commitment of being a consistent generator of strong free cash flow. Our track record is now well established and will continue going forward. We accomplished this while continuing to invest in the business with $238 million in capital expenditures, which is lower than we spent in recent years. This reflects improved capital management, including optimization and reuse of our existing assets. Given the strong cash performance, we were able to reduce our leverage with net debt to adjusted EBITDA ending the year at 1.35 times. and below the upper end of our target of 1.5 times or better. We achieved this while resuming our NCIV activity, spending $8 million to repurchase approximately 779,000 shares in the fourth quarter. Next, we improved our adjusted operating income margin as we continued to drive operational improvements across the organization and obtained commercial recoveries from our customers for EV volume shortfalls and lingering inflationary costs. We also won multiple supplier awards, including the General Motors Supplier of the Year Award and awards from Toyota, Volvo, Nissan, ZF, and Caterpillar. Next, our Advanced Manufacturing Team, or AMT, has made good progress on the machine learning installations across the plant network. To better support our machine learning strategy, we acquired a 10% equity stake in Polyalgorithm Machine Learning, or PolyML, a provider of advanced machine learning and data analytics solutions that serve as the core intelligence behind Martin Reyes' machine learning AI. PolyML uses a proprietary technology called Feature Importance Insights, or FINS AI, to expose the most valuable signals in complex datasets. Most conventional black box machine learning focuses on predictive accuracy, and you can't see inside. PolyML technology creates more accurate models that are transparent and fully explainable. This is a unique breakthrough feature. This approach is driving significant improvements in weld quality, efficiency, and energy usage. It's also deployed in our press health monitoring, providing an early warning system that will substantially reduce unplanned downtime and maintenance costs. Thin's AI is a key component of Martin Reyes' machine learning initiative, and we expect our relationship with PolyML to grow over time. Back in October, we acquired the assets of Lyceon North America. As a reminder, Lyceon was a single-plant operation in Tulsa, Oklahoma, engaged primarily in manufacturing metal parts and subassemblies for school buses in the U.S. This acquisition adds business with International Motors, formerly Navistar, a high-quality customer, that the company sees a lot of opportunity to grow with over time, in both buses as well as commercial vehicles. It also broadens our product offering and further diversifies the business in non-automotive markets. I'm happy to say that the integration is going very well. We are pleased with the progress that we're making there and the prospects of eventually adding more business to the facility in the future. 2025 was a busy year with notable achievements on all fronts. We'd like to thank our team for their hard work and dedication in delivering these results. Turning to the fourth quarter, we're pleased with our performance, both operationally and financially. Adjusted operating income margin was up year over year as we continued to drive operating improvements and negotiated commercial recoveries with our customers, largely for volume shortfalls on EB programs. Also recall that Q4 of last year was impacted by an inventory correction in North America that affected some of our key programs, most notably with Stellantis. We continue to navigate through the impact of tariff costs on our business. For us, the vast majority of parts that we export from Canada or Mexico into the United States is compliant with the terms of the USMCA and therefore not subject to tariffs. We do have some exposure, most notably as it relates to Section 232 tariffs, on steel and aluminum products that impact some of our components. I'm happy to report that we've been successful in recovering the vast majority of our tariff costs through commercial settlements with our OEM customers. This is a remarkable achievement. Our supply chain operations, sales, and commercial teams work tirelessly to make this happen, and we're proud of it, and we appreciate all of their efforts. Looking at the full year of 2025, We met our outlook for sales and adjusted operating income margin, which came in at 5.6, above the midpoint of our 5.3 to 5.8 outlook range. We spoke on our last call about the ongoing negotiations with our customer on some sizable commercial items, mainly related to EV volume shortfalls, and that these could fall in either the fourth quarter of 25 or the first half of 2026. These discussions are progressing well. and we intend to close on these items in the first half of the year. Most importantly, and as I mentioned earlier, we generated a record-free cash flow for the year at just under $200 million, well above our outlook of $150 to $175 million, reflecting our operational performance and our CapEx discipline. We expect another strong year in 2026, and Peter will have more to say on our outlook for 2026 and beyond later in the call. With that, I'd like to end by thanking the Martin Rega team for their tireless work and continued dedication to make our business better every day. And now, I'll turn it over to Fred.