Operator
Welcome to Santec's fourth quarter and full year 2025 results webcast and conference call. Leading the call today are Gord Johnston, President and Chief Executive Officer, and Vito Comoni, Executive Vice President and Chief Financial Officer. Santec invites those dialing in to view the slide presentation, which is available in the Investor section at santec.com. Today's call is being webcast. Please be advised that if you have dialed in while also viewing the webcast, you should mute your computer as there is a delay between the call and the webcast. All information provided during this conference call is subject to the forward-looking statement qualifications set out on slide two, detailed in Santec's management discussion and analysis, and incorporated in full for the purpose of today's call. Unless otherwise noted, dollar amounts discussed in today's call are expressed in Canadian dollars and are generally rounded. With that, I'll turn the call over to Mr. Gord Johnston.
Good morning, everyone, and thank you for joining us today. 2025, we delivered solid mid-single-digit organic growth. Despite a year of ongoing global trends across the water, mission critical continue to underpin strong demand for our services. continues to enhance the resilience of our operation. We grew our net rate and 3.9% acquisition growth. Organic growth was achieved in all of our regional and business operating units, with our water business achieving almost 11% organic growth. Adjusted EBITDA increased close to 17% year-over-year, and continued strong project execution drove our adjusted EBITDA margin to 17.6%, achieving our 2024 to 2026 strategic plan target range of 17 to 18 percent one full year earlier than originally anticipated. Adjusted EPS growth of almost 20 percent compared to 2020. Looking at our results in each of our geographies, in the fourth quarter, U.S. net revenue increased 13.5 percent acquisition and just over two percent organic growth. On a full year basis, net revenue grew by almost 11 percent supported by just over five percent acquisition and 3.4 percent in our buildings business net revenue increased over 30 percent in the year primarily due to our acquisition of page investments and data centers and other technology and civic transition mining and infrastructure sectors for a large utility provider in canada five percent in the quarter driven completely by organic growth. Net revenue grew over 8% compared to 2024, primarily through organic growth. We're pleased that our water and energy and resources businesses continued to deliver strong double-digit growth and consistent program with a 13% organic growth in energy and resources. Solid growth in infrastructure projects in Alberta and Eastern Canada continued to drive growth in the fourth quarter, achieving over 6% acquisition growth and to a lesser extent positive foreign exchange impact for the full year the goal global percent double-digit organic growth up of a new project organic growth the transition solution from in mining for copper we also achieved double-digit organic growth in our 2026 2025 sustained demand across our
diverse multi-sector platform underpinned by favorable global trends continues to support $1 billion and net revenue of $1.6 billion, an increase of 10.9% compared to Q4. This growth was driven by 3.9% organic. Half percent acquisitions margins once again remained in line with our expectations. We achieved an adjusted EBITDA margin of 70-60 basis point increase compared to Q4 of 2024. The increase in margin primarily reflects lower admin and marketing expenses as a percentage of our net revenue, mainly due to higher utilization and our continued discipline in the management of our operation our adjusted EPS in the fourth quarter increased twelve point six percent to one dollar and twenty five cents here for Stan sick you reached a point one billion dollars and we grew net revenue to six and a half to our performance in twenty twenty four through five percent organic and three point nine percent and as a percentage of our net revenue project margins came in at fifty four point three percent once again we achieved a very strong adjusted EBITDA margin of 17.9%, a 90 basis point increase year over year. This record margin was driven by strong project execution and cost management. Yes, for the year reached $5, an increase of 19.9%. Liquidity and capital resources. Our operating cash flow increased 43.1% compared to 2024, growing from $603 million to $863 million, reflecting continued strong cash flow on working capital management 0.3 times above our target of one DSO at the end of the fourth quarter substantive improvement of eight days compared to Q4 of 2024 due to excellence and working capital management tested EBITDA ratio at 1.3 times one to two times both of our continued strong performance the board has approved an 8.9 percent dividend will increase to 98 cents balance sheet leaves us very well positioned for future at the end of 2025 our contract backlog reached a new all-time high of 8.6 to 5% increase year-over-year representing approximately 13 months of work. Acquisitions completed in 2025 contributed to backlog growth of over 8% primarily within our buildings business. Year-over-year organic growth regions most notably in global which delivered double-digit growth of 14.2%. We also saw strong backlog growth in water and strengthen our buildings business was supported by health care. Now their mission critical. Net revenue growth is expected to be in the range of 8.5% to achieve through organic, primarily due to the page acquisition. Adjusted EBITDA margin will continue to expand, and that's driven by solid project execution, enhanced strategies in the management of admin and marketing, continued expansion of our high-value centers, and optimization of our digital strategies. As such, we expect to deliver an adjusted EBITDA margin between 17.6% to 18.2%. 15% to 18% growth in adjusted EPS. These targets, of course, do not include any assumptions related to additional acquisitions, given the unpredictable nature of the timing and size of such trends.
As Vito mentioned, we have organic net revenue growth across the business. Each of our geographies is expected to be in the mid to high single-digit range. Macro trends including aging infrastructure, water security, advanced manufacturing, energy transition, all continue to create meaningful opportunities for Stantec. We started to see an increase in activity in the U.S., and we expect this trend to continue throughout the year of our business operating year. Growth in the U.S. will be underpinned by the continued strength of our buildings business as we continue to capture synergies from the page acquisition. Our buildings team continues to see strong activity in data centers as an example official intelligence firm to design the initial 300 to 350 megawatt phase of a large data center campus which has the potential to scale up to 1 gigawatt into the US Navy clean program and activity within the US Department in the energy sector expected to generate meaningful project US infrastructure remains a significant growth drop roughly half of IIGA funding still to be allocated we continue to see strong momentum across our infrastructure business including major roads and bridge projects and the southeast energy infrastructure and we're seeing strong projects in the Arctic climate conditions to support these include project handle Navy vessels expected to be driven by continue to be an industry leader in UK water by a significant margin recently named as a preferred bidder for the multi-billion pounds which is set to transform Scotland's water and wastewater announcement in Scottish and New Zealand in addition we continue to see strong demand in our global energy and resources must be value accretive. Stantec has a long improvement with last year's edition of PAGE marking our 150th completed transaction to continue to build on this track record in 2026 and beyond and we continue to see ample opportunities in the market. As we enter the final year of our 2024-2026 strategic plan, we're making meaningful program momentum we've built and shareholder value for many clients hire us to use our qualified judgment to solve problems and develop solutions and document every work so our teams can stay focused on the design intent continually asking fewer surprises and reduces late stage conflict the opportunity isn't the technology itself it's the ability to make better decisions it does not automatically reducing rework and time and materials work allowing teams to manage more work in Paris, not simply strategically, we take a partner agnostic approach. Our advantage isn't tied to a single technology, it's our ability to operation compromising that trust, governance, or move beyond isolated AI pilot while maintaining, for example, related to data center development, 5 gigawatt of capacity. Combined, these facilities, in addition, given the need for planning, design, energy cooling these from advanced analytics and for digital and data-enhanced delivery, structured analytical and deeper client relationships. Enabled infrastructure and operations need trusted partners like Stantec, enhancing predictability, margin enhancement.
Operator
Certainly. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star one one again. Our first question comes from the line of Ian Gillies from Stifol. Your question, please.
Morning, everyone. As you think about AI, and I had asked this question on a previous conference call, how do you think this ends up translating into revenue for employee utilization and the like? Because those have always been pretty key drivers in improving margin and improving top line.
Yeah, absolutely. I think in all of those, Ian, it's favorable for us. You know, I see this, you know, I see AI as just the layer through the engineering space. Each time these tools have come, they've made us more efficient, and they've driven higher net revenue per employee. The transition from when I graduated, AI is just that latest tool that I believe will allow.
Understood. And, you know, Gord, you've been pretty vocal about wanting to execute M&A over the last, call it, 18 to 24 months, and rightfully so. But with the reset and valuation metrics for public equities, I guess over the course of your career and as you've followed the M&A market, how long does it typically take for private companies to reset their valuation markers? Because there's probably a bit of a disconnect right now, given the rapidity or how rapid it's been and how quickly things have moved over the last few months.
Yeah, I mean, it's interesting because, as you can imagine, we're having these very same conversations. And the, you know, sort of that decline in the multiples in the public sector, in the public, you know, for us it's a period of time. So the question is, too, is this a downward clip, or is this going to be sustained fully into how we see what happens in the M&A market?
So a very quick follow-on. So would it be fair to presume that it may take a little longer than we would have thought maybe six months ago, just given everything that's happened to execute on M&A?
Oh, we're very, very active still. Absolutely. And, you know, always, and these are good firms. Station is ongoing, but that's only one, you know, multiple to make sure that the fit is there, the synergies are there, the cultural piece is there. And now we're just talking about the financial piece.
Okay. Oh, sorry, Fredo. Ultimately, we fundamentally believe in the long-term value creation, withstanding the recent downturn that we're towards noted of any primary potential acquisition, what it enables us from that perspective, we don't see any timing-related issues.
That's very helpful. Thanks very much. I'll turn it back over.
Operator
Thank you. And our next question comes from the line of Zabaha Khan from RBC Capital Markets. Your question, please.
Great. Thanks, and thanks. Good morning. Maybe just one on AI, and I promise to switch over to something else after. But I guess in your sort of use of AI to date, where are you finding in terms of end markets or just these efficiency tools, digital tools, where do you see more application for such tools and capabilities today? and where do you think that sort of evolves over time? Is this something that can sort of, you know, make its way across all end markets providing efficiency? Just curious what you're seeing in the early days versus where you see this going, thanks.
People use AI tools, again, to be more efficient, but also, you know, some of the examples of things where we're using it, we're using a tool called Stable Diffusion in our buildings group right now. And that's a, it's more of a visual client. You can sketch something up and feed it into the AI tool and it turns it into, you know, to drawings and things much more. We have these design submittal, and there's a number of things that make sure that you've, you know, from a review that you've accomplished these things. We're using AI to help us in QA. And so a lot of these things will be used across business lines. And so, you know, I think we're still in early days. Design teams are pretty excited about where this can take us.
Great. And then just in terms of the sort of the setup into 2026, just looking at your guide, Maybe just if you could dig into the U.S. segment a bit more, you know, one of your peers noted a bit more predictability and stability in that market this year. Can you begin from your vantage point? What are you seeing across either the infrastructure side, water side, just kind of your larger end markets in the U.S. market today and sort of where the funding mechanisms are for the year ahead?
One of the things there is, you know, we've mentioned in the prepared remarks that we've seen a little bit of increased activity in the U.S. over the last several months. And if you look at our U.S. backlog, Q4 over Q3 is up about 3% just in the quarter, translating into backlog, and we do see that continuing forward. You know, we – incredible amount of work right now in the data center work that we're doing for the hyperscalers. We mentioned the, you know, the five projects, 35 plus or minus billion dollars worth of work there. So that continues to go. A lot of environmental services work. We talked about the U.S. Navy Clean Program and D&D work. So there's a lot of opportunity we're seeing, really, of our sectors in the U.S., energy transition-type work, grid strengthening in the south across the U.S. for us as we move into 2026.
Great. Thanks very much. I'll pass the line.
Operator
Thank you. And our next question comes from the line of Frederick Bastien from Raymond James. Your question, please. Good morning.
How are you all? Good. Thank you. Guys, it feels like an engineering firm's ability to seamlessly embed AI with proprietary data will be a major competitive advantage going forward. And I think those who invest accordingly will obviously be awarded. Do you believe that will benefit larger firms like you over the small ones and potentially lead to more consolidation acquisition opportunities?
That is exactly our thesis as well, Frederick. That, you know, as we've talked over the 2,000-person firms, you know, even before AI, they've got to this level and then they need to professionalize IT and cybersecurity and finances and HR and such. And they don't have the resources either in terms of skills or finances to support that. They just want to focus on the work. And now we see AI is even driving that more, that the additional investment in resources, both people and financially to get there, plus the data probably isn't in common formats and all those things. I do believe that this will, as we move forward, that AI and some of the things that we see there will continue to drive more firms in that space towards the consolidators.
That's a good answer. Thank you. Thanks, Gord. You also, in your prepared remarks, you mentioned some good developments on the defense side in Canada. Would you mind just expanding on that and potentially, you know, indicate whether all the momentum that we're hearing about is actually translating into projects and bids? renewed from the Arctic, as well as, you know, other governments around the world.
But, you know, we did talk about the Defence Construction Canada's multi-mission aircraft hangar, and I believe that's in Nova Scotia, you know, facility upgrades for the armed forces sort of across the region. So there's a lot of work, you know, a year ago or more. But now, you know, I think everyone can see, well, you know, that used to be, everyone said, well, that's like a road to nowhere. But it's not. It's a road to what will be a deepwater port that will hold both Navy vessels, cargo ships, and the like. And so a lot of this work is coming to fruition, and I think you'll see a lot more coming in the short term. And, Gord, we're particularly well-positioned with capabilities, right?
You know, with our capabilities in Yellowknife, in Whitehorse, in a number of other locations up there, as well as significant presence in Alaska, you know, uniquely positioned Stantec for…
Great. Whatever you're doing, guys, keep doing it. Congrats.
Operator
Thank you. And our next question comes from the line of Chris Murray from ATB Capital Markets. Your question, please.
Yeah, thanks, folks. Hey, Gord. Good to hear that you might still have a T-square kicking around. I guess the first question is just on margins. And when I look at the guidance, you know, you're sort of either guiding the flat to up margins. So I'm just wondering if you could talk a little bit about some of the puts and takes around where you think the uh the margin profile evolves over the next so well it looks like there's a you know some good opportunities and some of the back office stuff you guys have been doing um and certainly some of the ai tools but just you know any color you can provide on on how to think about evolution over the next year would be great yeah chris maybe i'll take that one you know first off you know we're incredibly pleased with the progress to date so when you look at our 90 basis point improvement year to date That's basically come 50% or half of it from, I'll say, the business itself, operations, whether that's improvement across certain sectors, utilization improvement, and then
the balance of it. I think as we move forward, it's really more of the same. I don't think there's going to be any magic. It's really just continuing to lean in our continued use of our global delivery centers, the excitement around what's happening there and the capabilities are just incredible both from a professional development a professional service perspective but also from a back office and we see significant continued momentum there um and so you know we definitely don't expect to be flat clearly the the low end of our range is 17 sixes which is where we landed the year really more of the same labor at the end of the day is the biggest or utilization continued excellence in
project management and project execution that's where the fundamental point is and just uh you know just a shout out to our team of 34 000 plus across oregon and obviously the bottom line so really okay great um and then i know there's been a lot of focus on on ai um and infrastructure but you know one of the other areas that we're seeing more evolution is resources i know historically that's been something that you know you guys have had a lot of exposure to just wondering if you're seeing any call it green shoots or new developments in the resource business be that either you know new pipelines or or certain pre-feasibility work um or around other kind of resource work that
might uh drag in maybe the water business or something like that yeah so a couple things there we think it is in our mdna isn't it veto that we we did pick up uh environmental work line in Tennessee. So we are seeing those projects. And then also in performance this year in South America, in our locations and the amount of investment, you know, in either mine expansions and new mines coming down there is truly phenomenal. Copper prices, you know, still pretty robust and certainly required if we want to continue with this energy transition, grid hardening, grid strengthening and such. So yeah, we're seeing that electrical piece continues to grow for us, which in us is in our energy and resources business. We're seeing the resources required, copper mining and such continues to grow. And then, you know, as we talked about this 125-mile-long natural gas pipeline in Tennessee, so we are seeing more work in most of those phases in our energy and resources business.
And you would have seen that through our 2025 results, a strong year on organic growth, high single digits, that momentum.
All right, that's helpful. Thanks, folks.
Operator
Thank you. And our next question comes from the line of Michael Topone from TD Cowan. Your question, please.
Thanks. Good morning. I just wanted to go over the organic growth outlook from a BOU perspective. I know overall, mid to high single digits, the guidance. In 2025, you saw quite a bit of variance in terms of organic growth across the different BOUs. How do you see that looking in 2026? Do you see sort of more consistent performance, or should we still expect some of these higher growth areas to really be the drivers?
Maybe I'll start there. We, as Gord, I think, indicated in his prepared remarks, we expect organic growth across all of our BOUs. I mean, water has been – water is now 22% of our business overall. You saw continued strength. I think it's four years of consecutive double-digit growth in water, if not more than that. And we definitely – construction was a little maybe more muted in 2025 in the low single digits. I think that was a temporary drop from our more mid-single-digit range, So we expect continued strength there, rebound there. Buildings, 4.4% organic growth. Commentary, you might add. Completely will continue to lead the way, perhaps, but strength across the board.
I appreciate that. And sorry not to belabor the point, but just environmental services, I guess that was probably the weakest last year and in the fourth quarter was kind of flattish. How do you think about that one for 2026?
Yeah, you know, we do see that they're in the north, the Canadian north, or, you know, these big pipelines. So we do see that kind of leads up this year than we saw in certainly in 2025. And then the last group, perhaps, is our energy and resources businesses that put up, you know, 8.7%, almost 9% last year. But we look for continued growth in that segment as well, really strong in mining, particularly in South America. the energy transition, the transmission and distribution work we're doing there, looking for pretty good strength across the board from all of our business operating units.
Okay, perfect. Thank you. And then maybe just one further question. You talked a little bit about M&A earlier in the call. As it relates to accelerating adoption and use of AI in the industry, is this in any way affecting how you're thinking about M&A, the kinds of targets you would be interested in? Are there certain targets that maybe you traditionally would have been interested in, but that's sort of evolving and changing and others that maybe now become of greater interest. Just curious as to how this is affecting your thinking on M&A.
Yeah, you know, I think from the core business that we're working on and our geographies will enable us and make us more efficient, the firms that we're talking to are viewing it really from the same perspective. So it doesn't really change our thought process there. You know, I don't think we're at this point looking to go out and buy an AI firm. you know we see them a lot of them are pretty little even less profit in many cases so we're not looking to do that we're develop firms as required isn't looking to change our M&A strategy at this point yeah I would add Gord you know certain targets have more developed digital capabilities than others do and so where you know we have some targets that retention a little bit and what
value add they might find toward mention no overall all right thank you I will leave it there.
Operator
Thank you. And our next question comes from the line of Maxim Saito from NBCM. Your question, please.
Hi, good one, gentlemen. I just wanted to start a bit with a broader question around thoughts on outcome-based pricing. As you know, there are some discussions around how much of a cost plus evolution we could see in this space right now.
And I guess how you know AI in your expertise sort of ties in because I mean I presume there's something that actually you would welcome as you know the penetration of some of these pricing models could available so I'm just curious what are your thoughts at the moment and are we seeing any evolution from from that perspective thank you yeah great question and what we're finding that in a lot of this sort of fixed fee outcome based pricing percentage of construction a lot of it depends on the client and the type of work that you see of the big design build or P3 projects that we do are all virtually all fixed fee or deliverables based milestone based and so you know they're certainly as we've been doing for last five or ten years the increased use of technology whether it's AI or other tools can can help optimize your margin a lot of buildings project government clients in particular you know we we haven't seen you know as we work with municipal clients really around the world they don't really move towards you know the we haven't seen movement towards outcome based pricing fixed fee value based they still seem to be more time and material to ACEC and through other of these sort of professional associations we're absolutely having these discussions and seeing is there a way that we could you know move more towards it from a certainty perspective but I think that would be not as much a Stantec initiative or an initiative of any of our industry and see what we can do to get ourselves the other reason max that I think a lot number of government agencies go with the time and materials is that if you want to go with an outcome based price with a fixed fee you have to have the scope incredibly well defined so that the engineer can
come in and say for i'm going to do for a million dollars fee just as an example and there's going to be change orders and complicates the though we can get municipal and government clients in particular off of uh time and materials type work but the industry overall is working on it yeah yeah no that's great call thank you so much and maybe just one quick one for veto if i may um i mean the margin guidance is certainly stronger than we we were modeling And I'm just curious if you don't mind talking about the ability to get to maybe that 18.2 at the high end of the range. What needs to happen from your perspective, Vito, to potentially hit that number?
Yeah, I think the higher we are on the revenue range, the more probability that we'll be on the higher end of the EBITDA margin. So that's just really operational leverage. Guys, from an initiative perspective, you know, we're working towards, obviously, expect to have a date out to the community sometime soon, late in the year, probably more December, January, as far as when we're rolling out our three-year plan. And I'm very excited about the work and the modeling we're doing about, you know, what's the next three years look like from a margin perspective. We'll wait and see where 2026 lands, but I'm just in the momentum to date.
Yeah, yeah. 100%. Thank you so much.
Operator
Thank you. And our next question comes from the line of Benoit Parier from Desjardins. Your question, please.
Yeah, good morning everyone and congrats for the strong achievement in 2025. If we look at Canada, organic growth came in very solid at 7.7% for the whole year. However, when we look at Q1 2025, you reported a very strong performance at 12.2%. So, would it be fair to assume potentially a bit of a softer performance to start the year, given the tough comparison, even though the outlook remains very strong?
Yeah, that might be appropriate, Benoit. I mean, again, you know, we think about these things not necessarily from a quarter of a quarter. You're absolutely right, by the way. Last year was at 12.2% for Canada in organic growth, Q1. We ended the year at full year 7.8%. So, I think Q1 might be a little bit softer relative to where we feel the full year will land for Canada, but as we've been noting in the Common Check, the full year in all of our regions and all of our VOUs continued sort of, we feel very nice sort of balance throughout the entire year. But that region on an organic, but nothing that I'm overly concerned about or need to say.
Okay, that's great. And obviously, a lot of talks about M&A bidding pipeline remains extremely solid. However, given the pullback in share price, I was wondering if you could provide more details. My understanding, there's a big preference on M&A, but given the strength of your balance sheet, do you see any opportunity to step in in terms of buyback in the short to medium term?
Yeah, that's interesting. I mean, I think we will be renewing our NCIB. So first of all, as it relates to dry powder on the balance sheet, you saw our leverage 1.3 at the end of the year. That enables us to do sizable M&A on balance sheet and whatnot. we will continue to advertise our investment grade obviously and whatnot that there's a lot of room there wonderful privilege we sit here and uh and that's important for us so we'll just take that and and uh and sorry ben why i forgot the second comment oh just wondering if you would
be open to uh to consider more closely the ncib given the pullback in share price and probably given the fact that we haven't seen the seller expectation coming down yet?
Yeah, short answer is yes. We would be more actively looking at buybacks with respect to where we're valued. First priority, of course, continues to be M&A for us. But we do have price ranges that we think, when we look at our opportunities, that, you know, continue to look at it a little bit more closely than perhaps.
Okay. Thanks very much for the time, Nudeau.
Yeah. Thank you. It's your voice, Benoit.
Operator
Thank you. And our next question comes from the line of Jonathan Goldman from Scotiabank. Your question, please.
Hey, good morning, team, and thanks for taking my questions. Most of them have already been asked, but I guess I just have one, high-level one. The anniversary of the IIJA this year, how do you see that playing out, and is there a potential for renewal or maybe a reshaping of that infrastructure bill and maybe some other form of disbursements there?
Yeah, great question. And so we've, you know, early on two or three years ago, there was 2.0 on what it could look like. We have much of that over the last year. Increasing activity, bidding, folks are beginning to look to how can they place their, you know, get some funding in place before IAJA current terms out and, you know, has to be allocated by I believe it's September of this year but but recall too that once that IJ will continue to drive really solid performance in the not just for us but for the overall industry in the transportation space and such and that 'll no no I don't think there'll be any concerns that that would not be renewed the conversation about an IIJ 2.0 right now but the industry I think will continue to be busy in the transportation space in the US in particular for the next several years to come.
Okay, great. Thanks for taking my question.
Operator
Thank you. And our next question comes from the line of Chris Tafisa from CIBC. Your question, please.
Good morning. Thanks for taking my question. Maybe just to follow up on the M&A topic, you've previously talked about how you expect a handful of larger firms to come to market this year. Is that still what you're seeing in the pipeline? And it sounds like that's still something you'd be interested in, given your balance sheet capacity at this moment?
Yeah, some of the ones that we have been talking about, you've likely read came and went in the latter part of last year. Now that we understand we'll be coming to the market here in the next couple quarters, good optionality in terms of geographies and type of work that these firms are engaged in. And absolutely, as you heard Vito say, the balance sheet is in good shape. So we absolutely will continue to look at those. And of course, paying particular attention to the pricing piece.
For sure. And are you able to share, maybe some of these larger firms, what areas they're operating in? Is power still a big focus for you?
You know, certainly we do see some firms with a power focus that will be coming to market, but others as well in different lines of business that Stantec currently is in. And, you know, some of them are in the U.S. and some of them are, you know, we'd see Europe, Australia and such. So good geographic spread with these as well.
All right. Thank you. I appreciate the time.
Operator
Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to management for any further remarks.
Great. Well, thanks, everyone, for joining us this morning. You know, we feel really good about 2025 and where we're going in 2026, so if you have any follow-up questions, please reach out to Jess Newkirk, and we'll line things up and take it from there. So, thanks.
Operator
Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.
