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Delivered four consecutive quarters of core net sales growth for the first time since 2021, signaling a successful multi-year strategic transformation.
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Achieved full-year adjusted EBITDA margins above 20% by balancing volume-led growth with disciplined pricing execution and operational rigor.
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Attributed 2025 performance to a diversified omnichannel platform that captured demand across B2B and direct-to-consumer channels.
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Realized approximately $20 million in structural cost savings through purchasing discipline, tariff mitigation, and productivity efforts.
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Maintained high product availability with a 91% in-stock rate for top SKUs, ensuring the company could meet enthusiast demand reliably.
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Strengthened the financial foundation by reducing net leverage to 3.75x, meeting the year-end target through $100 million in total debt prepayments since 2023.
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Guidance for 2026 assumes a range of 4% to 4.5% revenue growth, navigating an uneven ‘K-shaped’ economy where higher-income consumers remain resilient.
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Anticipates $5 million to $7 million in incremental operational savings through continued network optimization and facility consolidation.
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Plans for temporarily elevated capital expenditures of $15 million to $20 million to fund high-return ERP and warehouse management system implementations.
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Targets a further inventory reduction of $10 million to $15 million by year-end 2026 through enhanced forecasting and tighter safety stock management.
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Aims to exit 2026 with leverage below 3.5x, maintaining a trajectory toward a long-term goal of approximately 3.0x by 2027.
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Significant winter weather events in early 2026 impacted consumer spending and distribution, leading to a projected 51/49 revenue split favoring the second half of the year.
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Management noted that the market currently lacks the ‘stomach’ for large-scale price increases similar to 2025, shifting focus toward surgical pricing and volume gains.
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The Safety and Racing division successfully navigated a transition to Snell 2025 certification, which initially acted as a headwind before accelerating growth in Q4.
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Strategic product rationalization and divestitures in 2024 created a cleaner core business, though they impacted year-over-year reported growth comparisons.
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