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Record 2025 performance was driven by a combination of higher production throughput, continued price realization, and meaningful contributions from recent acquisitions.
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Management attributes the 110 basis point expansion in consolidated adjusted EBITDA margins to proactive price-cost management and improved manufacturing efficiencies.
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The company is executing a ‘build-more-parts’ initiative to vertically integrate certain parts production, aiming to drive increased recurring parts revenue streams and expand margins over a multiyear timeline.
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Strategic positioning has shifted the portfolio to be less backlog-intensive, with backlog-heavy products now representing 45% of sales compared to over 50% a decade ago.
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The Safety and Security Systems Group achieved significant margin expansion through volume increases in public safety equipment and the realization of targeted cost savings.
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Operational improvements in the Environmental Solutions Group were supported by better access to labor and the utilization of large-scale capacity expansions completed in prior years.
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Full-year 2026 guidance assumes organic revenue growth of 5% to 9%, with the remainder of the 17% to 22% total growth target coming from New Way and MEGA acquisitions.
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The New Way acquisition is expected to be adjusted EPS neutral in 2026 due to initial intangible asset amortization and industry normalization trends.
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Management targets $15 million to $20 million in annual synergies from New Way by 2028, split evenly between operational cost savings and sales channel expansion.
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Strategic focus in Canada involves phasing out third-party refuse truck sales in favor of higher-margin internal New Way products, expected to provide margin tailwinds starting in 2027.
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Capital expenditure for 2026 is planned at $45 million to $55 million, with approximately half dedicated to growth-oriented productivity projects.
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The company recognized $13.3 million in acquisition-related expenses in Q4, primarily driven by fair value adjustments for contingent consideration and New Way transaction costs.
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A $0.16 per share headwind is anticipated in 2026 due to higher intangible asset amortization and the normalization of the corporate tax rate to approximately 25%.
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Management is winding down an $80 million third-party refuse backlog over the next four quarters as part of the post-acquisition sales channel pivot.
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The company replaced its $800 million credit facility with a new five-year agreement to provide enhanced liquidity for future M&A and organic investments.
