Good morning. Today is Wednesday, April 29th, 2026. Welcome to the Toromont Industries Limited Q1 2026 results conference call. Please be advised that this call is being recorded, and all lines have been placed on mute to prevent any background noise. Your host for today will be Mr. John Doolittle, Executive Vice President and Chief Financial Officer. Please go ahead, sir. Okay. Well, thank you, Angeline. [Foreign language] everyone. Thank you for joining us today to discuss Toromont's results for the Q1 of 2026. Also on the call with me this morning is Mike McMillan, President and Chief Executive Officer. We're in beautiful Montreal today. Mike and I will be referring to the presentation that is available on our website. To start, I would like to refer our listeners to slide 2, which contains our advisory regarding forward-looking information and statements. After our prepared remarks, we will be more than happy to answer questions. Let's get started and move to slide 3. Mike, over to you. Great. Thanks, John. Good morning, everyone, thanks for joining us. Our team performed well in the quarter despite ongoing uncertainty in global trade markets. Both revenue and earnings increased, reflecting good execution across most areas of the business. The Equipment Group had healthy increases in both new and used equipment sales, along with solid activity in rentals and product support. Our AVL enclosure business continued to increase production, supporting data center requirements primarily in the Eastern U.S. region. Based upon operating performance and our view of market demand, we continue to consider opportunities to invest in the growth of our power and energy business. Effective today, we have increased our percentage ownership of AVL to 80% by advancing the purchase of half of the shares that we did not currently own. It is important to note that these shares were owned by a passive investor and do not impact the ownership or status of Vince DiCristofaro, President of AVL. Purchase price of the shares was CAD 71 million paid in cash and will result in an expense of approximately CAD 45 million to be recorded in the Q2 of 2026. The Equipment Group's operating income was 52% higher in the Q1 as the higher revenue and improved gross profit margins were partially offset by the higher expense levels. CIMCO posted higher package revenue. Profitability was lower, mainly due to timing of projects and deferred product support activity. Growth in the package revenue was supported by a strong quarter backlog. Operating income decreased, largely reflecting the lower gross profit margins and higher expense levels, partially offset by higher revenue. AVL's operational capacity and execution continued to expand in the quarter. Revenues were CAD 129 million versus Q1 of 2025, which was CAD 22.1 million. The business's full contribution to basic EPS was CAD 0.19 per share versus breakeven in Q1 2025. Results in the Q1 of 2026 are net of purchase commitment expenses of approximately CAD 13.9 million, including a dividend that was paid to minority shareholders related to earnings and distributable cash position for fiscal 2025. Investment in non-cash working capital decreased 4% year-over-year. A net effect of lower inventory levels, higher accounts receivable balances, and lower accounts payable balances due to equipment delivery timing. Accounts receivable increased, largely reflecting the 13% increase in revenue in the quarter, offset by good collection activity. DSO decreased by 3 days to 40 days. Our team continues to do a good job managing receivables aging and customer credit metrics. Inventory levels declined primarily due to executed deliveries against good order backlog from year-end inventory management initiatives, slightly offset by CIMCO's higher work in process levels, reflecting timing of project construction and product support schedules. We ended the Q1 with ample liquidity, including CAD 1.2 billion in cash and additional CAD 452 million available under existing credit facilities. Our net debt to total capitalization ratio was -12%. Overall, our balance sheet is well positioned to support operations and navigate evolving economic business conditions. As one would expect, we continue to apply operational and financial discipline as we support customer needs and evaluate future investment opportunities. Toromont targets a return on equity of 18% over the business cycle. ROE for the Q1 was 17.3%, slightly below our target, however, improved from 16.9% at year-end 2025 and comparatively lower than 18.5% reported at the end of March 2025. The year-over-year difference reflects higher shareholders' equity, which more than offset the increase in comparative earnings. Return on capital employed was 24.4%, slightly higher year-over-year, reflecting our increased net earnings. Finally, as announced yesterday, the board of directors approved a regular quarterly dividend of CAD 0.56 per share, payable on July 2, 2026 to shareholders of record at the close of business on June 5, 2026. John, back over to you for more detailed commentary on the results. Okay, thank you, Mike. Let's turn to slide five for a few additional comments on the consolidated numbers. On a consolidated basis, revenue increased 13% in the Q1, with an increase in the Equipment Group of 14% due to higher revenue across all revenue streams resulting from strong execution against order backlog in our growing enclosure business and an increase of 3% at CIMCO and higher package revenue offset by lower product support activity. SG&A expenses for the quarter increased 21% compared to similar period last year. The key changes related to the inclusion of AVL and DSU mark-to-market adjustments and other increases reflecting investments in the growth of the business, for example, in compensation, travel, and training. Provision for expected credit losses increased compared to similar period last year, reflecting certain exposures. Mark-to-market adjustments on DSUs increased as a result of a higher share price. For the year, expenses increased 14.2% of revenue compared to 13.2% last year. Operating income increased 44% in the quarter as higher revenue and gross profit margins were partially offset by higher expenses. As a percentage of revenue, operating income was 11.6% on a year-to-date basis compared to 9.1% last year. As we passed the first full year of operations of AVL, a dividend was paid to shareholders reflective of earnings in the cash position in 2025. Under IFRS rules, the dividend paid to minority shareholders, which amounted to CAD 12 million, is treated as an expense. Net earnings increased 25% or CAD 18.3 million in the quarter compared to last year. Basic earnings per share, CAD 1.14 in the quarter. Bookings for the Q1 increased 44% compared to Q1 2025. Equipment Group bookings increased mainly reflecting higher power systems orders, including AVL and mining. CIMCO bookings increased 34% with higher orders in both markets and regions reflective of continued activity. Booking activity can be lumpy, resulting in variability quarter-over-quarter, reflecting market-related factors and customer buying patterns. Backlog is strong at CAD 1.7 billion, up 30% year-over-year, with an increase in both the Equipment Group of 40% and CIMCO up 4% compared to 2025, reflecting good demand for our products, including at the acquired business. Turning to the Equipment Group on slide 6. Revenue increased 14% on the quarter on solid equipment deliveries, led by the significant growth in power systems, along with improved rental and product support revenue on good customer activity levels. Construction market revenue was up 2%, with mining down 32% due to the lumpy nature of the business. Equipment sales, including both new and used equipment, were up 18% in the quarter across most of our market segments and regions. New equipment sales increased 18% in the quarter, with increases in the construction, power systems, and material handling markets offset by a decrease in mining due to the timing of delivery schedules. Used equipment sales increased 21% in the quarter, with higher activity in the construction and mining markets slightly offset by lower material handling market activity. Rental revenue was up 11% in the quarter, generally reflecting the larger fleet and improved activity across all markets and regions. Revenue improved in most areas for the quarters as follows: heavy equipment rentals up 38%, light equipment rentals up 8%, power rentals up 52%, and material handling largely unchanged. The RPO fleet was CAD 89.1 million versus CAD 101 million a year ago, and rental revenue was down accordingly. Product support revenue increased 10% in the quarter with an increase in both parts and service. Activity was higher across all markets and regions, reflecting end-user demand and activity levels. Looking at specific markets for the quarter, change in revenue was as follows, construction up 4%, mining up 17%, power systems up 10%, and material handling up 8%. Gross profit margins increased 400 basis points in the quarter. Equipment margins were up 370 basis points, reflecting the favorable sales mix within our equipment offerings. Rental margins were up 60 basis points on improved utilization. Product support margins were up 10 basis points on good execution. Sales mix was unfavorable, down 40 basis points in the year, reflecting a lower proportion of product support revenue to total revenue. Selling and administrative expenses increased CAD 27.9 million or 22% in the quarter. Key changes again were AVL, the mark-to-market adjustments on DSUs, and investments in the growth of the business. As a percentage of revenue, selling and administrative expenses increased to 13.7% versus 12.8% last year. Operating income increased 52% for the quarter, reflecting the higher revenue and increased and improved gross profit margins offset by the higher expenses. Bookings increased 45% in the quarter. The majority of the increase was led by the power systems orders, including enclosures, which saw strong order activity up 231% on good demand for our products and supported by expanding capacity. Mining markets are lumpy due to the nature of the business, were up 96%. Construction markets were lower, with bookings down 1%, reflecting normal demand dynamics. Backlog of CAD 1.4 billion at March 31st remains at healthy levels, reflecting good new order intake throughout the quarter. Approximately 90% of this backlog is expected to be delivered over the next 12 months, of course, that is subject to timing differences depending upon vendor supply, customer activity, and delivery schedules. Let's turn to CIMCO on slide 7. Revenue was up 3% in the quarter. Package revenue increased 10% in the quarter with an increase in activity in both the recreational and industrial markets, reflecting good execution on equipment delivery and progress on customer schedules. Recreational activity increased 27% in the quarter, with higher revenue in the U.S. offset by slightly lower revenue in Canada. Industrial market revenue decreased 4% in the quarter, with higher activity in Canada and marginally lower activity in the U.S. Product support revenue decreased 3% in the quarter on lower activity in the U.S., which more than offset higher activity levels in Canada. Activity levels reflect customer demand and the timing of purchase decisions and work performance. Gross profit margins decreased 180 basis points in the quarter versus the same period last year. Package margins decreased 230 basis points on the nature and timing of the projects in process. Product support margins increased 60 basis points on the nature of activity. An unfavorable sales mix with a lower proportion of product support to total revenue dampened margins by 10 basis points. Selling and administrative expenses increased CAD 2 million or 14% in the quarter. Compensation costs increases, higher costs reflecting staff levels, and annual salary increases were largely offset by lower profit-sharing approvals on the lower earnings. Other expenditures such as travel, training, and occupancy expenses were higher in support of activity and staffing levels. Provision for credit losses increased on lower recoveries in the current period compared to the same period last year. As a percentage of revenue, selling and administrative expenses increased to 19.8% in the quarter versus 17.8% in the Q1 of last year. Operating income was down CAD 3 million or 36% for the quarter, reflecting the lower profit, lower gross profit margins and higher expense levels, partially offset by the higher revenue. Operating income as a percentage of revenue decreased to 6.2% for the quarter compared to the similar period of last year. Bookings increased 34% or CAD 16 million in the quarter in both markets and regions. Industrial orders were up 51% and recreational orders were up 24%. Generally positive activity continues with good strategic capital investment levels. Order bookings can reflect the timing of end-user schedules and the timing of buying decisions. Backlog is CAD 360 million, up 4% versus last year, with higher backlog in the industrial markets up 7%, while the recreational market backlog remained relatively unchanged. Approximately 75% of the backlog is expected to be realized over the next 12 months. Again, this is subject to construction schedules. With that, we can move to slide 8. Turn it back to Mike to highlight some key takeaways as we look forward to the next few quarters. Mike? Great. Thanks again, John. As we look ahead to the Q2 of 2026, our focus remains squarely on executing our strategic priorities. These begin with an unwavering commitment to safe, reliable, and efficient operations, delivering consistently high levels of customer service and maintaining disciplined financial and operational rigor to support sustainable long-term growth. Against this backdrop, we continue to monitor key external factors that could impact the business. Global trade negotiations are evolving. In particular, developments between the U.S. and Canada remain dynamic, requiring proactive mitigation plans, which we will continue to adjust as the situation evolves. Foreign exchange volatility, particularly fluctuations in the Canadian dollar, is being actively managed through our hedging program, helping to mitigate earnings impacts while recognizing that broader economic conditions may still create headwinds. In addition, we are closely monitoring overall macroeconomic trends. Our backlog of CAD 1.7 billion continues to grow nicely. The equipment supply chain is well-positioned to support customer requirements. Investment in our technician workforce remains a key strategic priority. By strengthening this critical capability, we are enhancing our aftermarket services, improving responsiveness, and delivering greater long-term value to our customers across our product and service offerings. From both an operational and financial standpoint, we benefit from a focused operating model, experienced leadership team, a disciplined culture, and strong liquidity. This foundation enables us to manage near-term uncertainty effectively while continuing to advance our strategic growth priorities. Over the long term, our approach to creating shareholder value remains grounded in disciplined cost management, thoughtful strategic investment, and consistent operational execution. We thank our team for their continued dedication and our stakeholders for their trust and support. That concludes our prepared remarks. We now would be pleased to take your questions. Angeline, please over to you for the first caller. Thank you. 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 number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Your first question comes from Steve Hansen with Raymond James. Please go ahead. Oh, yes. Good morning, guys. Thanks for the time. Are you able to speak to, a little more directly, the margin profile at AVL in the quarter and how you expect that to trend going forward here, particularly as you've got the ramp-up in capacity going on, but you've also got some very strong bookings out there? I'm just trying to get a focus in on how that business actually performed on the quarter. Yeah, I mean, the business performed very well, Steve. You know, Charlotte got up and running faster than than we thought it might. You know, Hamilton, as we said, is running at full capacity and, you know, margins are picking up in Charlotte compared to where we were in the Q4 of last year. We would expect Charlotte to continue to increase production, and margins to level off there. It was a very good quarter for AVL. If I could maybe ask it another way, is it fair to say that because of the ramp up, there was some sort of dilution on the margin in the quarter related to that? It looks like the margins declined quarter-over-quarter, I'm just trying to understand where that pressure might have come from. I don't think it has declined quarter-over-quarter. Yeah. Yeah, there'd be a little bit of startup costs and other things last year. Although the teams managed execution really well, Steve. Okay. Maybe it's just a suggestion that it feels like we're spending, like, 1 hour- 2 hours every time trying to understand how this business is performing. I think it'd be helpful if we get some direct clarity on that in the MD&A. Be helpful. Just as a separate point, could you maybe just, I guess, still related. What portion of the backlog is specific to AVL now? I didn't see that in the disclosures this time. Yeah, if you look in our, I guess, our disclosures, Steve, you know, what we have broken out is, you know, power systems specifically, right? When you look at trended information, I think we've quoted about 56% of the backlog is related to the Power Systems Group. A good portion of that, of course, you know, if you look at historical trends on power systems, there will be some lumpiness to it. I mean, that'll give you a sense of the magnitude when you do comparisons there. Yeah, Steve, I'll just remind you, we've given you revenues, we've given you bottom line contribution, and we've given you the charges on dividends and purchase commitments. Like, hopefully you can back into the margins that way. Okay. Yeah. Well, we'll follow up offline. Just maybe lastly, just the mining orders did seem to tick up in the period, which is a good indication. Is there anything specific to that, whether it's sort of existing fleet owners, new projects that might be coming to fruition, just any color around sort of that activity picking up would be helpful. Yeah, I think it's really a bit of a blend, Steve. You know, we often talk about mining, as, you know, not really cyclical, but lumpy, right? When we think about mining, you know, they're less frequent, but larger order input when we see the backlog developing there. Longer lead times, of course, with that nature of equipment. I would just tell you it's a bit of a mix. There's certainly a number of, you know, projects that we're looking at longer term that were announced federally and so forth that, you know, give us some indication of some new greenfields, but that's still a ways out. You know, I would say it's just a broad mix. There are a number of additions to fleets that we're looking at and replacement in that number. Okay. Very helpful. Thank you. Thank you. Thank you. The next question comes from Devin Dodge with BMO Capital Markets. Please go ahead. Yeah, thanks. Good morning. Did you expect? Morning, Devin. Yeah, good morning. Do you expect there to be much or any impact from the Section 232 tariffs on your business overall? Particularly interested in your thoughts on AVL, just given the shipments out of Hamilton. Yeah, I mean, based on everything we know today, Steve, we don't expect 232 tariffs to have a material impact on the AVL shipments out of Hamilton. Okay. Got it. In your outlook commentary, it was mentioned that you're considering opportunities to invest in the growth of data center related businesses. Wondering if you can provide a bit more color on the options being explored. I'm trying to get a sense if the options are more weighted towards organic expansions, such as, you know, additional AVL capacity or expanding the product offering there, or if it's more M&A and adding an entire new line of business. You know, just, maybe just to start on that, Devin, I think it would probably be more the former. When you sit back and think about where we've invested so far, we continue to work on increasing production in Charlotte. I think within our existing operations, driving productivity and so forth. Investment can take a few forms, but it would be primarily inorganic in nature, and developing some of the capability through our Power and Energy Group as well to support the supply chain. You know, it could be, for example, just warehousing and helping support the productive capacity of each of our two facilities that we have today, and then evaluating opportunities for growth, but it would be more organic versus an M&A approach. Okay. Thanks for that. I'll turn it over. Thanks, Devin. Thank you. The next question comes from Patrick Sullivan with TD Cowen. Please go ahead. Yeah, good morning. Thank you for taking my questions. First one is rental revenue and product support revenue both up, and I think as mentioned across all markets and regions. I think we've known mining has been fairly solid for a while now. I was just wondering if you could really, you know, unpack what's, what you're seeing in construction infrastructure areas. No, that's a great question, Patrick. I think, you know, as you see, you know, we saw some decent growth year-over-year in new, used rental and product support, as you mentioned. You know, what we are seeing, and you can sort of look at the backlog as well, you can see, you know, some small growth in that area. I would say that, you know, the team did a really nice job in construction this quarter. Especially when you reflect on the quarter, the weather profile and so forth. When you think of the seasonality in our business, we generally have a little bit of a slower quarter in Q1. It was pretty cold, a lot of moisture, that does tend to slow some of the construction activity. We saw a nice pickup at the end of the quarter, you know, and I think we're, you know, continuing monitoring it carefully. Activity levels in construction are still moderated a little bit given the uncertainty in the market. We're not seeing as much activity in infrastructure as we've seen historically, but I think there are a number of tabled projects and, you know, a number of tailwinds or indications that we're gonna see some activity over the next couple of years. You know, our team is focused on positioning the business for growth in that area and making sure that we're able to respond to customer requirements as they initiate projects and, you know, they respond to some of the government actions that are underway as far as investment and supporting infrastructure development. Okay, great. That's super helpful. I guess the next one here would be. I think you recently discussed some of the capital investment priorities outside of AVL for the year, I believe like, Ontario Distribution Center, some expansion of your capacity in Quebec and maybe a camp up in northern Newfoundland. I guess, can you update us on the status of those if there, if there's anything else I'm missing there in the plans for the year? Yeah. You've caught several of them, Patrick. Things are going well at the distribution center. Bradford is fully up and running. We have broken ground in our new Toronto branch/head office, and that's going well. Yeah. I think I'd mentioned on the last call that we would expect to, you know, invest CAD 400 million-CAD 450 million in the business in CapEx through the year, which is above what we did last year. Maybe a bit more on real estate as a result of some of these things, but they're progressing well. Yeah. Just to add to that too, Patrick, I think, you know, we have mentioned in the past that we're also building a new branch in the eastern part of the GTA around Brooklin, which again, is looking to serve growth in that marketplace as a new location. We have talked also historically a little bit about After Bradford, we looked at Quebec City, and we are starting an expansion for remanufacturing to serve the eastern seaboard and the northern Labrador and Quebec region. Those are two investments as well that John has earmarked some capital for. Open the wallet, so to speak. Okay, great. Thank you. I'll turn it back over. Thank you. The next question comes from Sabahat Khan with RBC Capital Markets. Please go ahead. Great. Thanks, good morning. I guess maybe bringing some of the commentary around AVL together. You know, when you initially acquired the business, were sort of CAD 30 million-CAD 50 million run rate at one facility. Looks like about CAD 130 million of revenue this quarter. Just bringing together all the commentary on the outlook and the ramp-up of the facility, is there any perspective on what the sort of the combined run rate quarterly or any broad metric and share for us could be by the end of the year for that platform as we think about how to model that business? Sabahat, as I said, we're running about 100% capacity in Hamilton, plus or minus a couple of units. As of the Q4, we delivered a handful of units out of Charlotte, but production really increased in the Q1. Leaving the Q4, we're probably slightly less than 50% capacity per quarter coming out of Charlotte. We would expect Charlotte to double the capacity by the end of the year, maybe sooner. That's kind of the track we're on. Great. Thanks very much. I guess to your comment earlier on the 232 tariffs, I guess, should we assume that any pricing, whether it is on the equipment side from your OEM and sort of, I think you noted nothing really on the AVL side? Should we assume that anything on the equipment side is largely in the quarter and probably not a material consideration for us as we move forward? Or is the evolution- Yeah -in the Section 232, even on the OEM side, something to think about? No, as I said, we've looked at the 232 and don't think it'll have a material impact. Having said that, none of us know what's gonna happen day- to- day in the tariff situation. As we talked about last year, we're doing everything we can to make sure we're prepared for that. On 232 specifically, we don't see it having a material impact. Great. Just last quick one, I think you alluded to this earlier on the M&A side, the commentary on looking for more opportunities in power, is that really just, you know, doubling down on AVL, or is there other potential avenues to get exposed to the power space, or invest in that space somehow beyond the silos that you're in already? Yeah, I think a couple things there, Sabahat. I think, for example, you know, we know that the data center development in, say, Canada is lagging the U.S. by a year or two. I think, you know, as we think about the power and energy segment, including AVL and our existing business where we do backup power and prime power generation, you know, we continue to look at opportunities there from the power and energy side as well in Canada. You know, are working with customers, developing a schedule and timeline and a bit of a pipeline, if you will, just to think about, you know, what the opportunity may be and then how would we invest to satisfy some of that if we can earn our way into those opportunities. You know, I'd say it's a combination of things. Continue to evaluate how we productively increase capacity with our existing footprint, but then also looking at opportunities as some of these other projects within even the Canadian market develop. We'll be looking at both. Great. Thanks very much. Thanks. Thank you. The next question comes from Yuri Lynk with Canaccord Genuity. Please go ahead. Hey, good morning, gentlemen. Morning. Hey, Yuri. Hey. Maybe John wants to take this one. Just on the, on the AVL dividend to non-controlling. Is that it, is a one and done payment in Q1, or is there anything left to be paid in the balance of the year? Yeah, a couple things to think about there, Yuri. The dividend that we paid in Q1 reflected the financial performance, leaving aside the amortization, so the cash performance of the business in 2025, and it also reflected the cash needs of a growing business. We looked at both of those things. Paid a CAD 30 million dividend, 12 of which went to minority shareholders, and that's the expense you saw in the quarter. Going forward, we own 60% of the business. We now own 80%, so any dividend that we pay will be kind of half what it was going to minority shareholders in terms of the percentage. We'll look at that on a quarterly basis. The board of AVL will look at that at a quarterly basis. You know, we may or may not end up paying interim dividends, depending upon the performance and cash needs of the business. Okay. The going forward, it because the CAD 12 million was for the entire year of 2025, right? Looking back. That's correct. That's correct. You're saying going forward you might pay dividends based on, say, the prior quarter performance? Well, we'll I mean, we'll have a look at the performance and cash needs of the business. The board of AVL, which is Mike and I, and Vince will make a decision on what's best for all of the shareholders in terms of those dividends. It will reflect, again, the performance of the business, the ongoing performance of the business and the cash needs. There may be some interim dividends. We may wait till the end of the year. We'll just have to wait and see. Okay. Q2 is gonna have a CAD 45 million purchase expense. That'll be a separate line item in the P&L? That'll be a separate line item in the P&L, the purchase commitment expense, and that is the difference between the liability that we set up when we initially bought the business. Recall that we bought 60%, and we're obligated to buy the other 40. We've accelerated the purchase of that 20%. We paid CAD 71 million for it, and we had CAD 26 million in the liability on the balance sheet. That's the CAD 45 million that we'll expense in Q2. Does that reduce your taxable income or no? No. Last one. Just wanna make sure I understand the revenue capacity of AVL. I mean, if we look at Q4, call it CAD 100 million of revenue from AVL, was Charlotte a major contributor or contributor at all to that number? I'm just trying to get a clean starting point and then, you know. Charlotte contributed very little in the Q4. Okay. Charlotte got up and running in the Q1. That, you know, by the end of the Q1, they hit slightly less than 50% of their capacity. As I said, we're 100% running in Hamilton, and we expect to be doubling that capacity in Charlotte over the course of 2026. Okay. Okay. I can, I can get to that number. Okay. I'll turn it over there. Thanks, John. Okay, Yuri. Thanks, Yuri. Thank you. The next question comes from Jonathan Goldman with Scotiabank. Please go ahead. Kind of a different perspective here. Could you talk about the competitive dynamics in the industry? Maybe if you've seen any competitive response. I'm interested if any of your competitors have brought on additional capacity as well. I think, Mike, a few calls ago, you talked about, you know, potentially margins coming up down over time and any sort of technological adoption curve. Have you seen that now? What's the best guess on when we might see margins taper in this business? Yeah. Thanks for the question, Jonathan. I think you blanked a little bit at the beginning there, but I think I got the essence of your question. You know, I think in this space, you know, as you know, we sort of have a conservative outlook on in some parts of the business. I think it's only reasonable to expect with all the capital going into the data center business, it's attracting a lot of attention that, you know, others are getting into the enclosure and packaging business. That's why we made those comments. I think at some point down the road, we anticipate that there will be better supply, more normalization. Also, I think on the cost side, you know, we'll be working hard at optimizing our operation and managing costs. You know, material costs have been inflating over the last couple of years when you think of aluminum panels and steel fuel tanks and the trade dynamics. You know, there are a number of factors that I think will go into the margin equation. I think, you know, just given historical trends with technology like this, where you tend to see at some point a normalization or a more balanced supply-demand dynamic. That's what we would anticipate. It's very difficult, though, to put a number timeframe or quantify that for you at this stage. Do you have a sense on how short the industry is capacity, even if you wanna talk about it directionally, in terms of the enclosure business? Yeah, I'd say again, that's a very difficult one to peg. You know, demand certainly seems to be quite strong and, you know, it's really difficult. You know, I would say from our perspective, what we're trying to do is work with our key customers, ensure that we're hitting our delivery schedules. We provide the quality products that they need and reliable distribution supply and timeframes and so forth. I would just say that it's, you know, at this point it continues to be one of the constraints in the supply chain, but difficult to say beyond that in terms of overall market demand and so forth. Right. Okay. Fair enough. Another one, I guess on CIMCO. Is there any progress or update on whether or not the technology could be specced into data centers? Yeah, a couple things I would say there. I mean, I think, again, that's evolving as well. You know, we've often said that, you know, you need to get involved in the data center cooling aspect early in the cycle, especially with some of the. Like, I think the hyperscalers, for example, have specced in a number of partners to provide cooling. I think there's an opportunity there for CIMCO with our technologies, but it would likely be more of the second tier and others, right? Also in Canada, as we evaluate the opportunities in Canada, there is certainly an opportunity there. Again, it's, you know, when you it's changing in terms of the energy requirements, the cooling requirements, and especially as. When I talk technology, it's like, you know, you know, the thermal aspects of the chips and so forth. There's a number of things there that we continue to evaluate and look for opportunities to be able to demonstrate CIMCO's capability. You know, I would say the largest opportunity at this stage is probably more in the Canadian marketplace. Yeah. Okay, thanks. Maybe if I can just squeeze one more in. We've talked a lot, I think, on the call about AVL capacity. It looks like you'll be at, you know, nameplate capacity on both facilities by the end of the year. Is there an opportunity to increase capacity further at those two facilities, whether it's increasing throughput with productivity initiatives, adding on a second kind of warehouse or facility, adding a second line? I mean, Jono, we really like what we're seeing from that business. We like the progress that we're making in Charlotte. We're constantly looking at opportunities organically to increase production in both Hamilton and Charlotte. You know, we're monitoring demand very carefully. You know, thinking about whether or not it makes sense to add capacity at some point. Right now we don't have any news on that. Certainly we're pleased with the performance of the business. Okay, thanks for the color. I'll get back in queue. Thank you. Thank you. The next question comes from Steve Hansen with Raymond James. Please go ahead. Oh, yeah, thanks, guys. Can you just remind us how the purchase price is determined for the incremental 20% that you just acquired? It just strikes me that CAD 71 million for the 20% stake seems like a pretty reasonable price. Just trying to think about how that plays into the residual 20% still out there. Thanks. Yeah. The CAD 71 million, Steve Hansen, is simply a negotiated number. You know, we agreed on a purchase price when we bought the business. We agreed to buy out the shareholders, the 40% over the course of five years. There was a price that was set then, the business has performed, and it was a negotiated settlement with the shareholder. It doesn't have any impact on Vince DiCristofaro, the remaining shareholder. I'm just trying to understand, I guess, is it on a base, on a multiple of EBITDA, a multiple of trailing earnings of some sort? Like, how do you conclude that negotiation, or what's the basis of the negotiation? Well, the buyout itself was based, is based on an EBITDA multiple. That was the basis for setting it up originally. Then the second part of that was the negotiated settlement. Okay. Very good. Thank you. Thank you. Anything else? I'm sorry. Go ahead. I was just gonna say, are there any more questions or? We actually have one who raised hands again with Yuri Lynk with Canaccord Genuity. Okay. Please go ahead, Yuri. Opportunity with the enclosure business. Hey, Yuri. Sorry, you cut out. We missed virtually all of that question. Sorry. Oh. Okay. Can you hear me now? Yeah. Okay. Just wondering if there is any aftermarket opportunity with the enclosure business. Yeah, a couple things there, I would say, Yuri, is, you know, generally, they're standby power. You know, they don't put a lot of hours on these units in the near term. I would say when you think of the enclosure side of, and the packaging, I mean, there's moving parts, there's doors, there's preventative maintenance, and so forth. You know, I think longer term, there certainly would be an opportunity, and I think the question will be: Do the operators handle some of that preventative maintenance themselves? In many cases, the local Caterpillar dealer would do preventative maintenance on the engines or the power plants themselves. That's something that we're evaluating as well in terms of service and aftermarket, just on preventative maintenance around the packaging and the components of the enclosure. It'll be some time before I think that requirement develops. Okay. Thanks, guys. Thanks. Thanks a lot, Yuri. Yep. Thank you. We have another one. We have Krista Friesen with the CIBC. Please go ahead. Hi, thanks for taking my question. Just wondering if you can speak to, what's the length of time between a customer placing an order at AVL and delivery, and how has that evolved over the last year? Thanks, Krista. I think, I mean, there's a number of factors there. I would say depending, a lot of it is dictated by the customer location and their build schedule and when they need delivery of that power plant. You know, as they've confirmed the build schedule, say in a location, we look at the logistics and the order may come in. It does vary a little bit. Some of those schedules do change also based on the ability of, you know, the construction activity and the scheduling there. I would say, you know, we're looking out, you know, if you look at our numbers, we're looking out at least 12 months. There are some that could lag a little beyond that at times. You know, generally part of the factor there too is, our customer's access to the power plant, and so, you know, making sure that we have engines available and then the scheduling of that. We can respond fairly quickly. Like John said, we're at a pretty good level of capacity, productive capacity today. You know, I would say when you think about it, we would be looking out, you know, 12 months-24 months, depending on the schedule and the customer requirement. Perfect. Thank you. I'll jump back in the queue. Thank you. Once again, if you would like to ask a question, please press star one. There are no more questions at this time. I will pass back to Mr. Doolittle for any closing remarks. Please go ahead. Okay. Thank you for hosting, Angeline, and to everyone for your participation. Before concluding the call, I'd like to remind listeners that our AGM will be held today at 10:00 A.M. Eastern. It's an in-person event being held at the company's offices in Pointe-Claire, Quebec, located at 5001 Trans Canada Highway, Pointe-Claire. For those unable to attend in person, a recording of the meeting will be available through a link on our website. That concludes our call. Thanks a lot for joining. Please be safe and have a great day. Thank you. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.