Good morning, ladies and gentlemen, and welcome to the K-Bro Linen Inc. fourth quarter 2025 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Friday, March 20, 2026. I would now like to turn the conference over to Kristie Plaquin. Please go ahead. Thank you, operator, and good morning, everyone. Thank you for joining us today, and welcome to our fourth quarter and annual results conference call. On the line with me today is Linda McCurdy, President and Chief Executive Officer. Before we begin, I'd like to remind everyone that statements made during our prepared remarks for the conference with reference to management's expectations or predictions of the future are forward-looking statements. All statements made today, which are not statements of historical fact, are considered to be forward-looking. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. Investors are also cautioned not to place undue reliance on these statements. Actual results could differ materially from those anticipated. Risk factors that could affect the results are detailed in the corporation's public filings. I'll now turn the call over to our CEO, Linda McCurdy, who will provide her insights and remarks on the quarter. Linda. Thank you, Kristie. Good morning to everyone, and thank you for joining us today, to review our 2025 fourth quarter and annual results. I will focus on the main highlights of the quarter, and Kristie will provide more details of our financial performance and the balance sheet. Overall, we are delighted to have reported record results for 2025, with revenue of CAD 507 million and adjusted EBITDA of CAD 99 million for the year. We are an essential service provider to our healthcare and hospitality customers, and our results are the product of our disciplined, proven growth strategy. Q4 marks our seventh consecutive quarter of record results and includes the early contributions from Stellar Mayan. Stellar Mayan is highly complementary to our existing U.K. businesses, Fishers and Shortridge, and creates a top three national U.K. healthcare and hospitality platform. We're pleased with the progress of our ongoing integration efforts, and we work towards optimizing our local and national footprints and positioning K-Bro for long-term growth. From a revenue perspective for the year, it increased by 36% compared to 2024, with healthcare revenue having increased by 41% and hospitality revenue increasing by 30%. Healthcare revenues represented approximately 58% of consolidated revenues, which is higher compared to 53% in 2024. This is due mainly to the acquisition of Stellar Mayan and the annualization of CM. Strategic acquisitions of high-quality operators with leading market positions in key regions continue to be an important contributor to K-Bro's overall growth profile. 2025 was a record year for K-Bro, and we're excited about our future. We have national healthcare and hospitality platforms now in both Canada and the U.K., and we're proud of our diverse and talented team of over 4,500 employees and our culture that puts people first, supports our partners, and embraces environmental stewardship. I'll now turn the call over to Kristie to discuss our detailed financial results for the quarter, and then I'll return to talk about the outlook, and answer any Q&A. Kristie, over to you. Thanks, Linda. The information we are discussing today is also highlighted in our 2025 fourth quarter earnings press release issued yesterday, and detailed supplemental financial information can be found on our investor relations website under the heading Financials. For the year ended December 31st, 2025, K-Bro's consolidated revenue increased approximately 36% to CAD 506.8 million, compared to CAD 373.6 million in the comparative year of 2024. This increase is primarily due to the acquisition of Stellar Mayan in June 2025 and the acquisition of Shortridge and CM during Q2 2024, as well as the impact of price increases implemented. As we discussed in previous quarters, when reporting adjusted EBITDA, we've revised our adjusting items to reflect certain amounts which are not indicative of ongoing operating performance. This includes transaction costs, structural financing costs, transition and integration costs, as well as gains and losses on the settlements of contingent consideration and any other non-recurring transactions as defined within our MD&A. We believe adjusted EBITDA will assist investors to assess our performance on a consistent basis, and details of the calculations and adjustments can be found in our MD&A under the section Terminology. Consolidated adjusted EBITDA increased in 2025 to CAD 98.7 million or by 36.9% compared to CAD 72.1 million in 2024. Adjusted EBITDA margin increased from 19.3% in 2024 to 19.5% in 2025. The increase in adjusted EBITDA margin is largely due to labor efficiencies, the elimination of the Canadian carbon tax in 2025, and lower gas costs in the U.K. market, offset by the combination of the lower Stellar Mayan margin profile. Consolidated EBITDA increased in 2025 to CAD 90.9 million or by 31.7% compared to CAD 69 million in 2024. On a consolidated basis, EBITDA margin decreased from 18.5% in 2024 to 17.9% in 2025. The decrease in EBITDA margin is due to the combination of the lower Stellar Mayan margin profile, as well as adjusting items in the year related to the Stellar Mayan transaction and transition costs. For the Canadian segment, the adjusted EBITDA margin increased to 20.6% in 2025 compared to 19.1% in 2024. The increase in adjusted EBITDA margin was largely due to labor efficiencies as well as the elimination of the carbon tax, which I mentioned earlier. EBITDA margin increased to 19.5% in 2025 from 18.1% in 2024. For the U.K. segment, the adjusted EBITDA margin decreased to 18.1% in 2025 from 19.8% in 2024. The decrease is due to the combination of the lower Stellar Mayan margin profile. The EBITDA margin for the U.K. segment decreased to 15.9% in 2025 from 19.3%. The decrease in EBITDA margin is due to the combination of the lower Stellar Mayan margin profile, as well as adjustment items in the quarter related to transition and transaction costs. Adjusted net earnings increased in the year to CAD 30.4 million from CAD 21.7 million in 2024. Adjusting items in the year included transaction costs, transition costs, structural financing costs, non-recurring gains, and contingent income tax provisions, as well as intangible asset amortization related to the acquisition of Stellar Mayan. Without adjusting items, net earnings decreased by CAD 0.7 million in 2025 from CAD 18.7 million in 2024 to CAD 18 million in 2025. The decrease in net earnings is primarily related to higher interest costs due to increased borrowing related to acquisitions, increased amortization and depreciation due to the Stellar Mayan, Shortridge, and CM assets acquired, as well as the adjusting items. Wages and benefits for the year increased by CAD 54 million-CAD 196.2 million, compared to CAD 142.2 million in the comparative period of 2024, and as a percentage of revenue increased by 0.6 percentage points to 38.7%. The increase as a percentage of revenue is primarily related to the combination of the Stellar Mayan cost structure. Linen for the year increased by CAD 13.7 million compared to CAD 36.2 million in the comparative period of 2024, and as a percentage of revenue remained relatively constant at 9.8%. Utilities for the year increased by CAD 4.3 million to CAD 32.2 million, compared to CAD 27.9 million in the comparative period of 2024, and as a percentage of revenue decreased by 1.1 percentage points to 6.4%. The decrease as a percentage of revenue is primarily related to lower gas costs in the U.K. market and the elimination of the Canadian carbon tax in Canada in Q2 of 2025. Delivery for the year increased by CAD 13.6 million to CAD 58.3 million, compared to CAD 44.7 million in the comparative period of 2024, and as a percentage of revenue decreased by 0.5 percentage points t o 11.5%. The decrease as a percentage of revenue is primarily related to the combination of the Stellar Mayan cost structure, delivery route optimization, and lower fuel prices in Canada. Occupancy costs for the year increased by CAD 4.1 million compared to CAD 10.5 million, compared to CAD 6.4 million in the comparative period of 2024, and as a percentage of revenue increased by 0.4 percentage points to 2.1%. The increase as a percentage of revenue is primarily related to higher facility operating costs and the combination of the Stellar Mayan cost structure. Materials and supplies for the year increased by CAD 8.9 million to CAD 22.7 million, compared to CAD 13.8 million in the comparative period of 2024, and as a percentage of revenue increased by 0.8 percentage points to 4.5%. The increase as a percentage of revenue is primarily related to the combination of the Stellar Mayan cost structure. Repairs and maintenance for the year increased by CAD 4.4 million to CAD 20.2 million compared to CAD 15.8 million in the comparative period of 2024, and as a percentage of revenue remained consistent. Corporate costs for the year increased by CAD 8.2 million to CAD 27.4 million, compared to CAD 19.2 million in the comparative period of 2024, and as a percentage of revenue increased by 0.3 percentage points to 5.4%. The increase as a percentage of revenue is primarily related to adjusting items which include transaction costs, legal, professional, and consulting fee expenditures related to the acquisition of Stellar Mayan, as well as structural financing costs, higher management share-based compensation, and is partially offset by a non-recurring gain. These items are considered to be adjusting items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted EPS, and are further detailed within the terminology section of the MD&A. Other recovery for the year decreased by CAD 0.4 million to CAD 1.5 million compared to CAD 1.1 million in the comparative period of 2024. As a percentage of revenue remained constant. Other recovery primarily is primarily related to the sale of the Grande Prairie facility during Q2 2025. This gain is also an adjusting item for the purposes of calculating adjusted EBITDA, adjusted net income and adjusted EPS. Now, looking at our capital resources, distributable cash flow for the fourth quarter of 2025 was CAD 13.5 million and our payout ratio was around 20%. The company paid out 0.3 per share in dividends during the quarter for total consideration of CAD 3.9 million. The corporation had net working capital of CAD 90.3 million at the end of December 2025 compared to its working capital position of CAD 54.1 million at the end of December 2024. The increase in working capital is primarily attributable to the acquisition of Stellar Mayan on June 11, 2025, and the change in working capital items driven from timing of business activities. With regards to credit and liquidity, we have a strong balance sheet and ample undrawn capacity on our syndicated revolving credit facility with an operating line of CAD 175 million and an amortizing term loan of CAD 134 million. We have a further CAD 50 million accordion for growth purposes. At year-end, we had an undrawn balance of close to CAD 66 million on our operating line without taking into account the accordion, which reinforces our strong liquidity. This represents a pro forma funded debt to EBITDA ratio, excluding leases, of about 2.6x on a pro forma basis. Debt to total capitalization for the period ended December 31st, 2025 was 48.7%, and total debt net of cash increased in the year from CAD 114.4 million to CAD 214.2 million, primarily again related to the amortizing term loan to finance the Stellar Mayan acquisition, which has been offset by repayments to our revolving credit facility. I'll now turn things back over to Linda for any additional commentary. Linda? Thank you. Thank you so much, Kristie. 2025 was a transformational year for K-Bro as we built out our strategic national presence across the U.K. With the acquisition of Stellar Mayan, we're delighted to have two national healthcare and hospitality platforms in both Canada and the U.K. We are a leader in Canadian healthcare with half a century of experience, and we're excited to extend that leadership into other markets. We see a positive outlook for our business in both Canada and the U.K. and are excited about our growth opportunities ahead. We are pleased with our progress on our ongoing Stellar Mayan integration efforts. Our U.K. managing director, who is an experienced K-Bro veteran, oversees the combined U.K. operations, including the Stellar Mayan business integration plan. Our transition team is reviewing cost synergies, operational efficiencies, and platform optimizations, and we anticipate run rate cost synergies will be realized over the contemplated 24-month time horizon. To the end of 2025, we're on track and estimate we've achieved 25% of the anticipated synergies. On a consolidated basis, we're excited about the future potential of our combined business. Both of K-Bro's healthcare and hospitality segments continue to experience steady growth rates. In the healthcare segment, we expect activity levels to remain strong from continued focus on reduced wait times and enhancing patient care. In the hospitality segment, we expect solid activity levels from both business and leisure travel, reflecting historical seasonal trends. Going forward, we expect combined adjusted EBITDA margins will remain at similar levels to seasonally adjusted combined historical margins. In line with management's expectations, the consolidated U.K. divisional adjusted EBITDA margins will be lower than seasonally adjusted historical margins due to the lower EBITDA margin profile of Stellar Mayan. K-Bro is committed to a sustainable future, and we're proud of our talented, diverse, and motivated workforce that share our values and represent our local communities. We're working to integrate our recently acquired businesses, and as always, we collaborate with our stakeholders to appreciate their priorities, solicit and receive feedback, and align around common goals. Our services are essential to the continuity of our customers' operations, and we're embodying sustainable practices to support them for the long term. Now I'll turn it over to answer any questions you have as it relates to the fourth quarter and annual results of 2025. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please clip the handset before pressing any keys. The first question comes from Michael Glen with Raymond James. Please go ahead. Hey, good morning. Linda, maybe just to start, you speak about similar levels for adjusted EBITDA margins, but at the same time we are seeing some escalating natural gas expenses and then diesel cost as well. I guess you could lump into that. Can you maybe speak to how your outlook on those line items might have changed as we trended early into 2026? Yeah, absolutely, Michael. I would say certainly we will see a marginal impact as it relates to certain items in that area. We are hedged in both Canada and the U.K. Kristie, I'll get you to outline timelines and percentages. The largest area where we would see some exposure would be diesel. Having said that, diesel is by far the smallest input cost as it relates to or relative to natural gas or electricity. Kristie, maybe you can map out hedging and what's under contract until when by geography. Yeah, absolutely. From a natural gas perspective, in Canada, we're hedged about 60%, and those hedges roll off anywhere between the next 12 to 36 months. A little bit of exposure on the Canadian side. Having said that, from a Canadian perspective, we don't think it would have any material impact to the margins at this point in time. In the U.K., we are hedged 100% to the end of this fiscal year, so to the end of 2026. There has been a significant increase in the cost of natural gas compared to what we're hedged at today. If we had to renew our hedges at today's rates, we would anticipate that there would be a margin impact of about 1% to consolidated margins going forward. Okay. I think just to add to that, Michael. Sorry. The one thing I would say is that our diesel hedge in the U.K. comes off as of March, but again, similar to my earlier comment, smaller part of the input cost. Okay. Just given the nature of the events, is there any chance that the counterparty to that could come back with any sort of, you know, this risk wasn't foreseen or anything like that? Could they push back on the hedging at all? You know, we've been fairly careful about who the third party counterparty is, ensuring that they are financially stable and a large player. We don't expect exposure there. It's the same counterparty that we've dealt with during similar periods. It's a fair enough question. We don't expect anything at this point. Okay. Just on labor, can you update us on how you see the labor market evolving in both markets? Perhaps in Canada, just touch on are you seeing any movement in Alberta? This might be early days, but seeing any movement in Alberta with labor as we go into this higher oil and gas market? Yes. Yeah, good questions. I would say labor overall in both geographies has been very constructive. We have been fortunate to be able to secure and are obviously gearing up in our hospitality plans for Easter, where the seasonality picks up and it leads into our busier season. We are feeling pretty good about the situation and our ability to access labor in virtually all of our markets. On the Alberta front, I would say we definitely can be impacted by the increase in the price of oil, but it is early days, and we have not seen anything yet. Okay. I'll get back into queue. Thanks, Michael. Thank you. The next question comes from Derek Lessard with TD Cowen. Please go ahead. Yeah, good morning, Linda and Kristie. Great to hear you. Congrats on a really nice quarter and an exceptional year. Thank you, Derek. Morning. I just maybe wanted to. It's more of a macro question at this point. Obviously, hearing a lot about the health of the consumer, some sectors it's had an impact, others reported no change. I guess, you know, on the back of what's going on globally, impact on airline fuel and what have you. Maybe just a quick view on hospitality trends that you're seeing both in Canada and the U.K. would be helpful. Yeah. Part of this we would have expected to see some level of impact in 2025, as, you know, trade liberalization started, tariffs started to come, and the cost to the consumer had risen. Yet it tended to be quite a solid year in 2025 on the hospitality front, partially because of staycations, still strong European travel and strong U.S. travel to Canada. We are not seeing any warning signs at this point in Canada as it relates to commentary from our hospitality partners, our hotels. I'm not worried about the U.K., but to the extent there would be an impact, I would be thinking it would be more related to the U.K., but yet we haven't experienced that and have not seen any warning signs. A real telltale will be Easter because. School holidays as it relates to the U.K., to see how those trend. We're not seeing anything that we're worried about at this point. Okay. That's helpful color. Then just maybe still sticking with the U.K. Can you just talk about the organic growth or the organic volume growth that you're seeing in the business? Yeah. Mid-single digit, broken down equally between healthcare and hospitality, both mid-single digit, broken down equally between organic and price increases is what we've guided. Doesn't include volume growth as it relates to converting customers from disposable to reusable. I would say that is a process, and, you know, that process will take a longer period of time. At this point, our key focus has been integrating and optimizing operations. I've spoke previously about changing shift patterns within a number of our plants, and that's been the key focus. So that is what we're guiding for growth in the U.K.. Awesome. I'll reach you, and congratulations again to your team. Thank you. Thank you. The next question comes from Justin Keywood with Stifel. Please go ahead. Good morning. Thanks for taking my call. Morning, Justin. Nice to see the results. On the CapEx expectations for 2026, around CAD 20 million, is that maintenance CapEx? Is there any new automation to incorporate within your plants? Maybe just a more broad question, with AI advancing, is there any other areas across the K-Bro platform where you see efficiencies, either in the back-end office functions or perhaps at the facilities? From a CapEx perspective, I'd say about half of that is maintenance and half of that is growth/strategic. I would say on the strategic piece of it, not a significant focus on new automation. Much of it would be, you know, newer versions of equipment that needs replacement. You know, robotics is just premature. I can't foresee a situation where that would be a key focus in our spend over the next several years, possibly, you know, five to 10 years. It's not that it doesn't exist. Our experience and our investigation of it is that it, the returns just aren't there yet, and it takes an incredible amount of square footage in your facility, so space is a serious consideration. In terms of back office and AI, using AI in back office, very early stages of investigating that, Justin. I think there will be a place for it, but we're not there at this point. Okay. Helpful. Within Ontario, our understanding is there's several hospital RFP that could come to market in the relatively near term. Are you able to update us on the organic growth opportunity within Ontario? Yes. You know, it's obviously a key market, one where we have capacity to adapt, to add additional volumes. As you've identified, there are a number of opportunities that would come out later in the year. That remains our expectation, and we will be aggressively pursuing those as those opportunities come to market. I would say no material updates. Still on track with our expectation. Thank you. Just for context, are we considering? Is it two or three RFP, five to 10, or any indication there? It's hard to know how it'll be structured, to be fair, whether there will be consolidation among hospitals working together with a GPO or whether it'll be singular entities. I think it's a bit premature to determine that or comment on it. Okay. Great. Thank you very much. Thanks, Justin. Thank you. The next question is a follow-up from Michael Glen with Raymond James. Please go ahead. Hi. Maybe just taking into everything as we work down the cash flow statement next year, can you give some idea what we should be thinking about from a, from a free cash generation perspective in 2026? You bet. Kristie? Yeah. Absolutely, Michael. We would anticipate somewhere in the range of CAD 40 million before dividends for 2026. With that type of free cash generation, then as you exit next year, I guess your balance sheet should be firmly into the low twos? From a leverage standpoint? Yeah, exactly. That would be based on that level of free cash flow, just somewhere in the low two range would be a reasonable estimate. What happens with the free cash generation once you're back into the low twos? Should we expect at that point to see more activity with the share repurchase program? Yeah. I think we'll remain focused on growth opportunities, acquisitions that make sense in our existing markets as they if and when they become available, and to your point exactly, revisiting the NCIB and looking at reactivating that if that makes sense. Okay. Just on organic growth, are you able to indicate what the level of organic growth. We have the Stellar Mayan deal, but do you have an estimate of what actual underlying organic was in the U.K. in Q4? Kristie, do you wanna comment on that? Yeah, absolutely. I would say most of the growth obviously came from the Stellar Mayan acquisition, and I would say that organic growth was in the low single digit levels. Okay. I think you touched on this, but any timing in the U.K. regarding volume opportunities? Like, can we think about maybe some volume opportunities, some volume growth building into the U.K. over the coming year? I would say the back half of the year, Michael. We're still very focused on, you know, some heavy lifting of changing shift patterns in plants, improving service levels, very operational-focused activities. I think it's fair enough to say the back half of the year will be focused on growth opportunities. Okay. Thank you. Thanks, Michael. Thank you. Ladies and gentlemen, as a reminder, if you have any questions, please press star one. Next question, a follow-up from Derek Lessard with TD Cowen. Please go ahead. Yeah, maybe just a housekeeping one for me, Kristie. Just on the wages and benefits line. I know as a percentage of revenue, it's up on the Stellar Mayan acquisition. Sequentially, it did step up, I think 90 basis points or thereabouts. Just curious of how we should be modeling that line item going forward. Yeah. I would say Q4 is probably fairly representative of the go-forward position. You know, we do expect to have some increase on that line as we gain efficiencies. I would say a very good starting point would be the Q4 number. Okay. Thank you. When you say, you expect it to gain, you mean, improve? Correct. As you get efficiency? Yeah, got it. Okay. Correct. Perfect. Thank you. Correct. Okay. Thank you. There are no further questions. I will turn the call back over to Linda McCu rdy for closing remarks. Thank you, everyone, for joining today, and hope everyone enjoys the first day of spring. If there's any additional follow-up for Kristie and I, please feel free to reach out. We're always available. Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.