Good day, and welcome to the Middleby Corporation's Fourth Quarter 2025 Earnings Conference Call. On today's call are Tim FitzGerald, CEO; Mark Salman, President of Middleby Food Processing Group; Bryan Mittelman, CFO; James Pool, CTO and COO; and Steve Spittle, Chief Commercial Officer. Please note, this event is being recorded. I would now like to turn the conference over to Tim FitzGerald. Please go ahead.

Good morning, and thank you for joining today's call. Over the past year, we have executed decisive actions to unlock significant value for our shareholders through the strategic optimization of our portfolio of industry-leading businesses across Commercial Foodservice, Food Processing, and what was formerly our Residential Kitchen segment. Before we dive into our results for the quarter, let me start with our strategic accomplishments. In February, we announced the completion of the sale of a 51% stake in our Residential Kitchen business to 26North at $885 million total enterprise valuation, delivering approximately $565 million in immediate cash proceeds subject to future closing adjustments. This transaction represents a premium valuation while allowing us to retain meaningful upside through our 49% ownership stake. Following the close of the transaction, Middleby operates 2 highly focused industry-leading platforms: Commercial Foodservice and Food Processing. While we retain a 49% stake in the Residential JV, we are treating this as a non-core part of our operations, which is why you'll see it in discontinued operations in the fourth quarter and going forward will be excluded from our adjusted results. In anticipation of the proceeds from the deal, we will immediately put this capital to work for our shareholders. Combined with our ongoing share repurchase program, we reduced our overall share count in 2025 by approximately 9% through $710 million in buybacks, one of the most aggressive capital return programs in our industry. This reflects our conviction that Middleby shares remain significantly undervalued relative to our earnings power and growth prospects. In the second quarter, we plan to complete the separation of our Food Processing business, creating 2 independent pure-play industry leaders. Each business will emerge with enhanced focus, optimized capital structures, and the resources to maximize growth in their respective markets. The financial impact is compelling. Following these transactions, Middleby will operate as a focused Commercial Foodservice leader with industry-leading 27% segment level EBITDA margins, while Food Processing becomes an independent growth platform with segment level EBITDA margins over 20% and significant expansion opportunities through both organic and acquisition growth initiatives. Turning to our fourth quarter results. Our total revenue of approximately $866 million for our remaining 2 segments exceeded our expectations. This strong top line performance drove adjusted EBITDA of approximately $197 million. Through a combination of these operational results and the substantial share repurchases we made in 2025, this translated to adjusted EPS of $2.14 for the quarter and $8.39 for the full year. For today's discussion on segment level results and trends, I will be discussing the Commercial Foodservice results and outlook, and I have asked Mark Salman, the current President of our Food Processing segment, and as we announced today, the CEO of Food Processing SpinCo upon completion of the spin-off, to discuss the Food Processing segment performance. Starting with Commercial Foodservice, we generated revenue of approximately $602 million, which exceeded our expectations during the fourth quarter. The outperformance was driven primarily by the general market with our dealer partners, which had double-digit growth in the quarter. We attribute the second half momentum to improved demand with independents and in the institutional market, along with continued growth with emerging chains. We are gaining share with our dealer partners as a result of investments to strategically align those relationships over the past several years. The broad-based strength we saw in the general market was offset by continued declines among our large QSRs and C-store customers who faced lower traffic and cost pressures throughout 2025. While the QSR market conditions remain challenging, we are encouraged by actions taken by our larger chain customers to better position themselves heading into 2026. We've seen our customers address menu pricing, return to limited-time offers, and launch new beverage programs to reposition against the challenging backdrop with a focus to drive customer traffic. We are encouraged by the early traction we have with some of our largest customers with our new ice and beverage innovations. This is a targeted area of expansion for our Commercial Foodservice business, and we are well positioned with exciting new solutions. As we think about the year ahead for Commercial Foodservice, we remain focused on building our business for long-term success, but are optimistic that the chain restaurant environment will stabilize and improve as we move through the upcoming year. Bryan will provide additional color, but our guidance assumes a relatively consistent environment compared to what we are currently experiencing as we await larger chain customers to firm up their plans for the year, particularly in the second half. More specifically, we have clear catalysts for accelerated growth with restaurant industry fundamentals stabilizing with early signs of traffic improvement. With our dealer partnerships generating strong momentum in the general market and institutional segments, our ice and beverage platform represents a significant growth opportunity that we're uniquely positioned to capture. As we think longer term, the investments we have made position us with unmatched competitive advantages, both now and in the future, with the industry's broadest portfolio of leading brands, the strongest innovation pipeline, and leadership in automation and IoT capabilities that will drive market share gains for years to come. We still have work to do, but I'm excited for what the future holds for Middleby Commercial Foodservice. I would now like to turn the call over to Mark to discuss Food Processing.

Thanks, Tim. Before I discuss the segment results, I want to thank the Board of Directors for entrusting me with leading Food Processing SpinCo. Leading this company is the honor of a lifetime, and I am excited for the opportunity ahead. I also want to thank you, Tim, for the partnership you've shown me over the past 10 years here at Middleby. I look forward to working with you even more closely through this process. Turning to the Food Processing segment. In the fourth quarter, we generated revenue of approximately $265 million, which outperformed our expectations. As I look at the business, I am proud of what we have accomplished in the fourth quarter, particularly our extremely strong order rate, but I'm more excited about the strong foundation it creates as we enter 2026. 2025 was challenged with disruption from tariffs and high food costs, which delayed our customers' purchasing and investment in solutions in the first half. However, the latter part of the year saw our customers moving ahead. We had very strong orders in both the third and fourth quarters with a record backlog as we finished the year. This was driven by continued success with our Total Line Solution offering along with strategic expansion in international markets. We have a strong sales pipeline and continuing strong order intake. This all gives me great confidence in our position for not only next year, but the longer term. Taking a step back, what sets Middleby Food Processing apart is our comprehensive approach to serve individual protein, bakery, and snack processors. Rather than creating a portfolio of disconnected brands, we have created a portfolio designed to deliver complete end-to-end total line solution offerings that optimize our customers' entire production lines and are committed to delivering the lowest total cost of ownership. Our success reflects a year of strategic investment in building these comprehensive customer solutions, and we are gaining momentum in the marketplace with a growing competitive advantage. Our decentralized culture promotes agility, innovation, and speed. We have state-of-the-art innovation centers, with the most recent one opened in this fourth quarter outside Venice, Italy, where we can showcase our know-how in the most innovative and collaborative environment. This strategy is one of the key foundations that will drive our organic growth in the years to come. I am also very excited about the continued opportunities that exist as we expand the platform through targeted strategic acquisitions. We have built the Food Processing business through the addition of brands and products that are specific to the food applications we have targeted and that complement our Total Line Solutions. This has proven to be a very successful acquisition strategy, providing significant revenue and operating synergies. We have a consistent and proven track record of executing on our acquisition strategy over many years with our strategic approach and financial discipline. Although we have been executing our strategy for some time, we are still in the early innings, and it's the right time for the separation into an independent company. We now have the proper scale; we can accelerate what has proven to be our unique and successful business model. I am excited for what lies ahead. With that, I'll turn the call back over to Tim.

Thanks, Mark. I'm looking forward to what is ahead for Food Processing. As you've already heard, we have 2 well-positioned segments for growth in 2026 and beyond. On top of this, at a corporate level, our capital allocation strategy remains aggressive and focused. We'll continue our share repurchasing program having allocated over $700 million in 2025, reducing our shares outstanding by approximately 9%. We continued this share buyback activity into the first quarter, expecting to repurchase approximately another $300 million in the first quarter of 2026. We plan to allocate a substantial portion of our free cash flow again to repurchases this year. But most importantly, we have a world-class team around the globe, whose commitment and execution continue to drive our success. 2026 represents a defining year for Middleby as we execute this strategic portfolio optimization and position both businesses for accelerated growth. We are planning an Investor Day on May 12 in New York City, ahead of the Food Processing Spin, and look forward to providing greater levels of information on profiles and growth strategies for each stand-alone company ahead of the separation in the second quarter. With that, now I'll turn it over to Bryan to discuss our financial performance in greater detail and guidance for the first quarter and 2026.

Thanks, Tim. Our fourth quarter results showcased the strength of our execution and the quality of our business model. Let me walk through the key financial highlights and our outlook. For Commercial Foodservice, positive impacts we are seeing from the general market, institutional, and emerging chain customer segments. We delivered $602 million of revenue and a solid EBITDA margin of over 26%. This would have exceeded 27%, if not for tariff impacts. Customer engagement and interest in our leading technologies remain strong, especially in beverage dispense and ice products. At Food Processing, Q4 revenues were approximately $265 million, and our organic EBITDA margin was 23%. Organic revenue growth of 1.3% benefited from improvements in international markets. Margins were impacted by tariffs with higher costs and disruption in order timing impacting production efficiencies. We are experiencing a strengthening order rate and growing backlog. Q4 orders reached $322 million and backlog grew to $410 million with growth across most of our served markets and in our Total Line Solutions. Turning to Residential Kitchen. Our transaction to sell a 51% stake to 26North closed on February 2. Prior to the close of the sale, Residential Kitchen was treated as a discontinued operation. Following the close of the sale, our future balance sheets will include a minority interest investment reflecting our 49% ownership stake and a note receivable. Our income statement will reflect the impact from our non-controlling interest on a quarter-in-arrears basis. Residential results are not included in our non-GAAP adjusted earnings and adjusted EPS calculations as they are no longer part of core operations. On a consolidated basis, total company adjusted EBITDA for Q4 was approximately $197 million and adjusted EPS was $2.14. Regarding tariffs, the adverse net impact to EBITDA in Q4 was approximately $7 million. We expect benefits of pricing and operational actions implemented in 2025 to offset the cost of tariffs in 2026, although we will continue to have margin dilution in the first half of the year. Q4 operating cash flow was approximately $178 million and free cash flow was approximately $165 million. Our leverage ratio per our credit agreement at year's end was 2.5x. Regarding capital allocation, last year, we communicated the decision to deploy the vast majority of our free cash flow to share repurchases. For the full year 2025, we repurchased 4.9 million shares for $710 million or an average purchase price of approximately $144.50 per share. In total, these repurchases reduced our share count by 9% during 2025. To start 2026, we have repurchased an additional 1.7 million shares for approximately $250 million at an average price of approximately $154 per share. I would like to provide some commentary on our capital structure overall. Our 1% convertible notes matured in Q3 of 2025, which now results in a higher interest expense of approximately $6 million a quarter. This is a $0.12 headwind to the fourth quarter earnings. For the full year 2026, the interest rate headwind from the higher cost of debt is approximately $0.34. The 2026 EPS guidance reflects the benefit of share buybacks from the proceeds of the sale of the 51% of the Residential Kitchen business. We retain future upside through our ownership of the 49% of the business and the $135 million senior note. Turning to the rest of our outlook for 2026. For ease of communication, we provide this outlook on a current company basis, assuming that both Commercial Foodservice and Food Processing remain together for the full year. With that said, we still anticipate the separation of the 2 segments into separate public companies in the second quarter of the year, and we expect to provide updated guidance for the stand-alone companies at our Investor Day in advance of the separation of the divisions. For Q1, we expect to achieve the following: Total company revenue of $760 million to $788 million, which is comprised of Commercial Foodservice at $560 million to $578 million and Food Processing at $200 million to $210 million. Adjusted EBITDA is forecasted to be between $161 million and $173 million, which is comprised of Commercial Foodservice at $142 million to $152 million and Food Processing at $37 million to $41 million. Adjusted EPS is projected to be in the range of $1.90 to $2.02, assuming approximately 47.7 million weighted average shares outstanding. For the full year, we expect to achieve the following: Total revenues of $3.27 billion to $3.36 billion, which is comprised of Commercial Foodservice at $2.37 billion to $2.43 billion and Food Processing at $895 million to $925 million. Adjusted EBITDA of $745 million to $780 million, comprised of Commercial Foodservice at $632 million to $658 million and Food Processing at $186 million to $208 million. Adjusted EPS will be in a range of $9.20 to $9.36. Please refer to the presentation we have posted online at our Investor Relations website for full details. Please note this guidance does not include one-time costs associated with the completion of the Spin transaction, nor does it include stand-alone public company costs for the Food Processing business. We will provide estimates and detail on stand-alone costs we expect to incur along with additional materials in connection with the upcoming Baird Food Processing Symposium in New York on March 5. I also want to provide some additional color on the shape of the year for Food Processing revenue. As a reminder, we typically see Q1 as our weakest quarter and Q4 as our strongest with Q2 and Q3 relatively equal in between. We expect 2026 to follow this general pattern. However, in 2026, we expect the sequential increase from Q1 to Q2 to be smaller than the $48 million step-up we saw in 2025. This reflects our expectation that Q1 2026 will be stronger relative to the rest of the year than Q1 2025 was, essentially returning to more normal seasonal patterns after an unusually weak Q1 of 2025. Before we conclude our prepared remarks and begin Q&A, I want to provide an update on the Food Processing spin-off. We remain confident in our ability to execute the necessary actions to have a successful transaction. Activities to ensure the spin company will be operating effectively, efficiently, and independently at inception remain on track. We continue to expect to complete the spin-off by the end of the second quarter. Ahead of the joint Investor Day on May 12, we expect to file a publicly available registration statement, which will include annual audited financial statements in April. That concludes our prepared remarks, and we are now ready to take your questions.

The first question today comes from Mig Dobre with Baird.

I would like to begin by asking for more context on what you're experiencing in the CFS segment. You mentioned that the quarter performed better than expected, which was clearly the case. You also noted increased activity from the general market and the dealers. I'm curious how much of that reflects a return to the typical behavior we see from the dealers and the general market in the fourth quarter. In the previous call, we discussed that your guidance at that time didn't seem to account for the usual stocking dynamics. Is that what caught you by surprise? As you consider your outlook for 2026, how do you view this general market? Is there potential for it to gain ongoing momentum? Are we primarily waiting for the large QSR customers to reach a bottom, or is there something else on your mind?

Mig, I'll start and then Steve will likely follow. We have observed continued strength in the dealer market, which I mentioned earlier. This is partly due to us gaining market share, and to some degree, there has been a general improvement in replacement demand. This trend exceeded expectations in the fourth quarter, as it was already strong in the third quarter. We were cautious about assuming that this would continue, but we are optimistic about its persistence into next year. The key factor will be how things shift as we move through the year. We have noticed progress with the larger chains as the year went on, as they adjusted to market changes and improved their traffic. This development gives us growing confidence in that segment as we advance into next year, marking a pivotal point for returning to organic growth for the year.

Mig, this is Steve. Regarding the fourth quarter and dealer activity, I want to clarify that this situation doesn't reflect the typical pattern of increasing inventory to meet year-end incentives. Instead, we've focused on working closely with our dealer partners, training them to think beyond the core Middleby products. Historically, our dealers are familiar with the Pitcos, the blocks, and South Bend. However, we made significant strides last year by encouraging them to consider us for other products like ice machines and coffee equipment, as well as packaging cohesive Middleby solutions. I believe this approach positively impacted our results in the fourth quarter, rather than the norm of stocking up to meet year-end demands. Currently, the dealer market is operating differently, and we are pleased with the market share we are gaining in these new product categories.

Okay. Very helpful. And then my follow-up is related to your tariff comments on Slide 20 of your deck. If I understand this correctly, at least the way I read it, it looks like there's about $74 million at the midpoint of incremental tariff drag in '26 relative to '25. Hopefully, I have that correct. I am wondering how that splits between the two remaining segments. And it appears that you're saying you're going to offset this with pricing, but there's a bit of a timing issue in terms of how that flows through. So I guess the question, how confident are you that you'll be able to offset this fully for the year? And is this the primary factor that is accounting for the margin ramp implied in the full year guidance relative to Q1?

Mig, it's Steve again. The impact of tariffs is primarily split between the two remaining companies, with about two-thirds to 70% of the effect coming from Commercial Foodservice, while the rest is from Food Processing. The difference arises because Food Processing has a smaller supply chain influenced by markets like Asia compared to Commercial. We believe that the pricing adjustments we implemented in the second half of last year, starting on July 1, along with another modest increase at the beginning of this year, will cover the impact of the tariffs. We maintain that perspective. There are some timing issues regarding when tariffs affect pricing, which has caused a slight drag in the first quarter, primarily in Commercial. However, we expect improvement as this pricing takes effect, particularly when considering the overlapping tariff effects from last year's second half, which is one reason we anticipate margins will improve throughout the year. We are confident in the pricing adjustments we've made, with the July pricing already implemented and another increase introduced at the year's start, and we believe this will hold as the year progresses.

The next question comes from Jeff Hammond with KeyBanc.

I wanted to revisit the QSR dynamics. First, I think some larger QSRs may have paused their capital expenditures in the fourth quarter. I'm curious if that was a temporary situation or if it will continue. Second, what are they communicating about their store openings? It appears that there has been optimism in the past couple of years, followed by deferrals, so what is the latest update on that? Lastly, as we observe changes in value pricing, improved traffic, and the introduction of stimulus in the market, how is the conversation evolving regarding capital expenditures for your QSR clients?

So I think one of the things that we've seen is increasing confidence in the operators as we've come into the year. So I mean, I think there was a high level of uncertainty and certainly a lot of cost pressures, which caused them to hold up. So I mean, I think one of the dynamics that we're seeing is people have a lot more visibility; they're in a better situation in terms of where they're at with menu pricing, profitability, et cetera. So I think that's a much better dynamic, and I think that's going to start spurring the replacement cycle, which we saw some early signs of that in the fourth quarter. So I think that's part of the dynamic. We do still have chains that are on, I'll say, CapEx strike, as you said. So as we kind of went through the fourth quarter, there were some that were still holding up plans. I think that is still the case in the early part of the year, but I think we have some good decent visibility that that probably will pick up as we go through the year, and I think that's reflected in our guidance. And then with the new store, Steve, maybe if you want to touch on that?

Yes, Jeff. You're exactly right. Last year, we saw that plans for new stores, especially among the top 25 chains, were delayed for several reasons, including slow traffic and careful cost management. As we move into this year, there is still some delay in new builds. However, the positive aspect is that this situation is prompting these chains to reassess their current operations, both in terms of replacements and increasing traffic through their existing locations by enhancing various day parts. This has been a significant theme we’ve observed with quick service restaurants, and I believe it will continue this year as they focus on how to drive more traffic in their current spaces. A notable trend has been in beverages, with several prominent QSRs launching beverage programs that we play a substantial role in. Our success in this area stems from our ability to offer a complete solution, along with global support for installation and after-sales service. As these chains start implementing their beverage programs, we are very well positioned. In summary, while there are still delays in new stores, the focus is shifting more toward the replacement cycle and incorporating additional day parts as the year unfolds.

I appreciate the insights. Regarding the Food Processing segment, I'm curious about the impressive 66% order growth. Could you clarify how much of that is due to customers resuming orders after a pause? Is there any variability contributing to this? Additionally, given the order strength compared to the 4% to 6% growth, why isn't more of this order growth translating into revenue?

Thanks for the question. This is Mark. So a number of factors have positively affected our order intake. The first hour strategy around Total Line Solutions customers are going that route, and we see it in the order intake. Another is what you mentioned. Some of the prior slowness of order intakes, especially in the first half of the year, balanced itself with an increasing order intake in the second half of the year. And then the second part of your question is about why we don't see that in the 2026 numbers; was that the question?

Yes, Mark, I'll address the growth. Jeff, let me know if I'm off track. This is Bryan responding to your question. We had a strong fourth quarter in orders, and as Mark mentioned, much of that is due to Total Line Solutions. Some of those orders have a longer delivery timeline. However, we are excited to start the year with a confident outlook for growth after a somewhat slow period. Based on the order trends, we anticipate that this will be a growth year for us.

The next question comes from Tami Zakaria with JPMorgan.

I wanted to ask about the backlog growth, which is quite impressive, I think, up 36% for Food Processing. Just curious, how much of that is deliverable this year?

Yes, Tami, this is Bryan. A significant majority of it is deliverable this year, but there certainly is a minority portion of it that rolls out into the beginning of '27 as well.

Understood. Very helpful. And if you could comment about your thoughts on broader capital allocation and M&A, in particular, for the core CFS segment once the food processing split is done?

Yes. Tami, this is Tim. The reason for the split, obviously, as we said, there's quite a bit of M&A opportunity within Food Processing. Within Commercial Foodservice, I mean, I think the focus is going to continue to be on share repurchases, certainly in the near term. We're really focused on organic growth. We've made significant initiatives or investments over the last several years on innovation and go-to-market strategies. A lot of that we're starting to see play out now, and we also expect it to take increasing traction as we go through next year. So that's really going to continue to be the focus. There are opportunities there. So I mean I think as you kind of look over the last few years, we've focused on beverage, and we focused on technology, automation, IoT, and areas like that. So there continue to be opportunities, so we'll be focused and kind of targeted in those areas, which we think will help us accelerate some of the organic growth, but largely, the focus is going to be on organic growth kind of immediately after the separation.

The next question comes from Brian McNamara with Canaccord Genuity.

First on Commercial Foodservice. Great to see the segment guided positively to both the quarter and the full year 2026 here. I was wondering if you could peel the onion back another layer a bit. To me, it sounds like this will be predominantly pricing-driven. And if so, what's the expectation to kind of get volumes moving in the right direction again?

Yes, we expect to benefit from pricing as we move into the year, but not all our future expectations rely on pricing alone. There are opportunities for growth as the market stabilizes and recovers. We are well positioned in our main cooking segment, and regarding ice and beverage, there are significant market share opportunities. While pricing is an important part of our business, we are still relatively new in this space, with many new products launched and more in the pipeline. We anticipate some organic growth in the ice and beverage segment, even without a major market increase. Overall, we see a combination of pricing and organic growth opportunities contributing to our volume.

I mean, Brian, I would just add, as we think about the 3 or 4 big buckets of customers, to piggyback on Tim's comments, is we've commented already on the momentum we feel like in the U.S. dealer general market, institutional, and emerging chain business, which I think that continues through the year. The fast-casual segment, which I think has outpaced and certainly done better than the QSR segment in the last year or two, which we're well positioned. We've talked a little bit more about international growth. I think, again, we're well positioned with a lot of the initiatives we've undertaken in Europe and the Middle East. Asia had a better finish to the year for us, but obviously, still has some geopolitical headwinds as we do in Latin America. But still, I think we're well positioned in those markets. So it really does come back to the QSR segment as to where the year potentially does inflect. And I think our approach to the guidance for the year has been to keep a conservative nature based on where that market is today. But also knowing we're well positioned in QSRs, especially when traffic picks up and things turn both with our core business and as we've talked about with the additional products around beverage and ice.

Great. Just a follow-up on the QSR aspect specifically. You mentioned you're waiting for some of the larger players to finalize their plans, but the big players that have reported so far clearly have capital expenditure plans and unit growth plans in place. So I'm assuming there is some negotiation regarding the equipment spending. Is that the right way to think about it? And when do you expect to have more clarity on that issue?

We are specifically referring to two key areas: the progress of new builds throughout the year and the concerns about the delays we've encountered. The main question is when we will see these delays stop and the projects truly begin. Additionally, we have several exciting initiatives and projects with major quick-service restaurants related to beverages and new products. To move these forward, we need to see an improvement in customer traffic, which will likely release capital expenditures and allow us to proceed with our plans. When we mention finalizing plans for the latter half of the year, we are really focusing on new store openings and getting approvals for significant projects. It's not just about whether these projects will advance or if we are prepared; it's about the timing of when they will actually move forward.

The next question comes from Mig Dobre with Baird. We need to firm up plans for the second half of the year, particularly in two areas: new store builds and getting the official approval for some key projects. It's not about whether they will move forward or if we are well-positioned; it’s more about the timing of when they will actually start to progress.

Just very quickly here. So the Investor Day on May 12, can you maybe give us a general framework in terms of what we should be expecting? It sounds like you're going to have both Food Processing and Commercial Foodservice present in this event. I'm kind of curious for Commercial Foodservice, maybe more specifically. Strategically, are you contemplating any portfolio simplification, 80/20, those kinds of actions? I mean, over the years, you really acquired a lot of different brands? And I don't know if that you're reaching kind of the point of the stage, if you would, where simplification does make some sense. Or is there something else from a structural growth standpoint that we should be prepared to be hearing about?

Yes. Thanks, Mig. So it's still a ways off. So I think we'll provide a little bit more lead into what to expect on May 12 as we get closer. Certainly, we'll do a deeper dive into kind of the strategic initiatives, our portfolio, some of the operational execution that we've got planned. But certainly, there's a lot of exciting things going on in Commercial. So I mean, I think there's a great story to tell. And as we get closer to May 12 and certainly at May 12, we'll do a deeper dive into it. Yes, it will be both Commercial and Food Processing, presenting kind of adjacent to each other.

The next question comes from Brian McNamara with Canaccord Genuity.

Just a quick one on Food Processing. Can you remind us how long it typically takes in order to convert to revenues and what the typical range is? It's great to see the quantification on both there. You mentioned most being converted in 2026.

Yes, Brian, it depends on the type of equipment and the type of solution the customer is buying. But by and large, I would say somewhere between 6 to 12 months.

This concludes our question-and-answer session. I would like to turn the conference back over to Tim FitzGerald for any closing remarks.

No. Thank you, everyone, for joining us today. We have an exciting year ahead and I look forward to speaking with all of you on the next call. As mentioned, we will be attending the Baird Food Processing Symposium next week and I am eager for that. Additionally, we will be posting some materials publicly in conjunction with the symposium to provide more information about our Food Processing segment. Thank you, and I look forward to speaking with everyone next quarter.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.