Good afternoon, ladies and gentlemen, and welcome to Global Industrial's Q4 2025 Earnings Call. At this time, I would like to turn the call over to Mike Smargiassi of The Plunkett Group. Please go ahead. Thank you. Welcome to the Global Industrial Q4 2025 earnings call. Today's call will include formal remarks from Anesa Chaibi, Chief Executive Officer, and Tex Clark, Senior Vice President and Chief Financial Officer. Formal remarks will be followed by a question and answer session. Today's discussion may include forward-looking statements. It should be understood that actual results could differ materially from those projected due to a number of factors, including those described under the forward-looking statements caption and under risk factors in the company's annual report on Form 10-K and quarterly reports on Form 10-Q. I would like to remind everyone that the Q4 of 2025 closed on Saturday, January 3, 2026, representing 1 additional week in the quarter compared to the prior year. This added four working days to the quarter, which covered the period between the Christmas and New Year's holiday, typically our lowest sales week of any year. In addition, the Q1 of 2026 started on January 4th and will have a favorable comparison from the year ago period, which started on December 29th and included the impact of the New Year's holiday. The earnings release is available on the company's website and has been filed with the SEC on a Form 8-K. This call is the property of Global Industrial Company. I will now turn the call over to Anesa. Thank you, Mike. Good afternoon, everyone, and thank you for joining us. Today, I'm happy to share that 2025 was a year of significant progress for Global Industrial that included quite a bit of change to better position the company for organic growth. I'm very pleased with the way the team stepped up and embraced the changes and executed to deliver on our full year financial results. We ended the year with good momentum across the business as average daily sales grew 7.4% in the Q4, driven by both volume and price improvements. We delivered strong margin performance, generated healthy cash flows, and today announced an increase in the quarterly recurring dividend for the eleventh consecutive year. In addition, during the quarter, Global Industrial repurchased approximately 326,000 shares at an aggregate purchase price of $9.3 million. For the full year, we delivered $1.38 billion in revenue, representing growth of 4.8%. Overall, we are very pleased with the results, Tex will discuss the financial performance in detail. Most importantly, we made progress on strategic priorities that we believe will allow us to accelerate the pace of change, to grow the top line profitably and scale the business in 2026 and beyond. In the past year, we began the transformation of our business model and outlined core objectives, first, to become a more customer-centric company, and second, to refine our go-to-market strategy, particularly in realigning our sales, marketing, and merchandising teams to reframe our value propositions by industry vertical. We piloted a number of changes to refine our approach, to better serve the needs of our customers and to deliver profitable growth. What did we do? I'll start with customer centricity. Throughout 2025, we continued to reframe our approach to put our customers at the center of everything we do. By driving continuous improvement in damage reduction, quality, and distribution optimization, we maintained high service levels for our customers. Retention rates across our managed account base were strong as we again prioritized the customer experience and expanded upon our e-procurement capabilities. We completed the planned rollout of Salesforce for our sales, marketing, and customer service teams. Having a single unified view of the customer has enabled data-driven and faster decision-making, helping drive efficiencies and more personalized engagement with our customers. In the year ahead, we will build on these investments to move closer to the customer and further enhance the service we provide. Next, on how we reframed our go-to-market. As we look to be more intentional and focused on how we go to market, we completed a comprehensive analysis of our position and listened to feedback from customers. We challenged ourselves with tough questions and emerged with actionable next steps. Today, we have a clearer understanding of our customers' needs and expectations. By incorporating their feedback, we tested and piloted targeted solutions and are now realigning Global Industrial's product assortment, strategic account focus, and sales organization to deliver on our refined value propositions across multiple industry verticals. On the merchandising front, we are expanding the product assortment to ensure we are providing the right solutions and products that help customers solve their problems. This includes broadening national brand relationships to move into new product sets that we know our customers are looking for and that are complementary to what we offer today. This really is just a natural extension of what we do each and every day. Specifically, we are expanding our assortment to include maintenance, repair, and operations, as well as consumable products. These changes create a significant opportunity to grow our share of wallet and capture greater market share. While we are in the early stages of this effort, we have had success with our initial pilot programs and are encouraged and excited by the progress and the long-term potential. On our strategic account focus, during 2025, we deliberately shifted resources towards strategic enterprise accounts and GPOs. These relationships tend to carry higher average order values, stronger retention, and greater lifetime profitability, and we successfully grew these accounts in 2025. As part of this effort, we launched account-based marketing programs targeting these customers. These results have been promising, and we have seen good momentum, sales penetration, and growth. In parallel, we began to move away from non-recurring, lower profit, transactional web business. This has been the right decision as we look to better serve our customers and focus on profitable growth. This brings us to sales realignment. As we align the organization to become more customer-centric in 2025, we have changed our go-to-market approach as we entered 2026. Our inside sales team, which has strong expertise and a tenured employee base, have been realigned into customer verticals. This specialization will allow us to serve customers more effectively while gaining a deeper understanding of their unique needs. These targeted, defined verticals that we have prioritized include industrial, commercial, retail, public sector, healthcare, hospitality, and multifamily. During the second half of 2025, we successfully piloted an outside sales approach, and we are now building out a dedicated team. The outside sales reps will be calling on a combination of existing accounts, where we have identified significant opportunities to expand the relationship as well as new account acquisition. To enable and support these changes, we put in place a new, more targeted and intentional sales, marketing, and merchandising approach. This should position us well to effectively capture greater share of wallet from existing accounts and identify new customers that we have not historically called upon. We are driving change that will help us grow and evolve the business. The team is embracing these changes. There is a positive energy throughout the company, and we are excited about where we are headed, building off the progress we have made in 2025. I will turn the call over to Tex. Thank you, Anesa. Q4 revenue was $345.6 million, up 14.3% over Q4 of last year. On an average daily sales basis, sales grew 7.4%, double the rate of growth compared to the Q3 of 2025. U.S. revenue was up 14%, and Canada revenue improved 19.7% on a local currency. This was Canada's third consecutive quarter of top-line growth, and for the full year, Canada was up 9.2% in local currency. We recorded consistent growth throughout the quarter, with gains across all sales channels. As we have seen for much of the year, performance continued to benefit from price capture, but in the Q4, we also generated volume improvement. Order count growth remained strong among our largest and most strategic customers, while volume gains returned in our web business for the first time in 2025. As of today, we have seen momentum continue, with sales currently pacing up through the first half of the quarter. We have a favorable fiscal calendar in the Q1 of 2026, which started on January fourth, while the first week of Q1 2025 included the New Year's holiday. Outside of this timing benefit, we have seen continued revenue growth in the mid to high single digits. Gross profit for the quarter was $119.1 million. Gross margin was 34.5%, up 70 basis points from the Q4 last year. We remain pleased with our margin performance. On a sequential basis, as expected and in line with historical performance, gross margin pulled back from the Q3 of 2025 and primarily reflects product mix and peak season freight surcharges, which we chose to not pass through to our customers. Management of our margin profile remains a key area of focus. As we move through the current cycle, our goal is to manage to price cost neutral. We currently expect Q1 margins to show improvement on a sequential basis and be in line with prior year results. As a reminder, additional tariffs went into effect in early August, including the doubling of duties on steel and aluminum. We took a pricing action in early January 2026. Our goal is to mitigate tariff disruptions to our business and for customers, and we believe we are well positioned to do so. Our teams have done an excellent job diversifying country of origin exposure, and we continue to proactively manage price. Selling, general and administrative spending for the quarter was $99.5 million, an improvement of 20 basis points as a percentage of sales as compared to the Q4 last year. The increase in absolute dollars was largely due to the incremental salary and variable expenses due to the additional week in the Q4. Given the improved financial results, we recorded approximately $3 million in incremental expense associated with variable bonus and commission expenses as compared to last year. SG&A reflected strong general and discretionary cost control, including improved leverage within our marketing expenses. Operating income from continuing operations was $19.6 million, an increase of 35.2% in the Q4, and operating margin was 5.7%. Operating cash flow from continuing operations was $20 million in the quarter, and $77.7 million for 2025. Total depreciation and amortization expense in the quarter was $1.9 million, including $0.8 million associated with the amortization of intangible assets. Capital expenditures were $0.8 million in the quarter, and full year capital expenditures were $3.1 million. We expect 2026 capital expenditures in the range of $3 million-$4 million, which primarily reflects maintenance-related investments and equipment within our distribution network. Let me now turn to our balance sheet. As continues to be the case, we have a strong and liquid balance sheet with a current ratio of 2.2 to 1. As of December 31st, we had $67.5 million in cash, no debt, and approximately $120 million of excess availability under our credit facility. In the Q4, we repurchased approximately 326,000 shares of stock. Year-to-date, we have repurchased an additional 14,400 shares for a total of $9.8 million. We currently have approximately 1 million shares available under our 2 million share buyback authorization. The stock repurchase is a disciplined way to return value to shareholders. It highlights the board's confidence in the long-term potential of the company as we continue to generate strong cash flows, maintain a healthy balance sheet, and execute against our strategic plans. We continue to fund our quarterly dividend, and our board of directors declared a quarterly dividend of $0.28 per share of common stock, an increase of $0.02 per share. I will now turn it back to Anesa for closing remarks. Thank you, Tex. I'm proud of how the Global Industrial team executed in 2025. It was a year of change, starting with me joining the company and then with the overlay of the challenging tariff landscape. The team focused on what we could control and mitigated the risk of the things that were out of our control, all while adapting to a significant amount of change. We delivered strong performance and initiated a realignment of the organization for the future, one we believe will allow us to scale the business and accelerate our growth. We are entering 2026 from a position of strength, and we are pleased with our performance and excited about our growth strategy. The team will continue to learn, test, and pivot as we look to improve and optimize our performance. I want to thank all of our associates for their hard work and dedication. The progress we made in 2025 is a direct reflection of their commitment to our customer success and to our company. Thank you for your interest in Global Industrial. Operator, please open the call for questions. Thank you. To ask a question, you may press Star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. The first question comes from Anthony Lebiedzinski with Sidoti & Company. Please go ahead. Thank you, and good afternoon, everyone. Thanks for taking the questions. Certainly nice to see the better-than-expected results here in the quarter. I know you said that there was both pricing and unit volume increases. Can you provide any additional color on those two topics? Wondering if you could also comment on how sales progressed throughout the quarter as we went from October through December. Anthony, hey, thank you for the question. I think as to answer your last question first, sales were pretty consistent throughout the quarter. We had a solid growth profile in each month in the quarter, and it was fairly consistent without a lot of volatility in the individual periods outside of what we talked about on the intro to the call with December having an additional week of sales. That reflected higher absolute growth rates, but on an average daily basis, it was quite consistent within the period. In terms of your first question, pricing was still the majority of the growth rate, and it was up on an ADS basis, mid-single digits, with volume coming in at low single digits across the business in the quarter. Gotcha. Yeah, thanks for that. Then, you know, given the latest tariff announcements that we heard over the last few days, how should we think about the pricing environment and the impact, if any, on gross margins? Yeah, great question, Anthony. Thank you. You know, it's very early days, real time, and it's still moving around, not unlike when we had our Q1 call last year, where, you know, we knew that was potentially around the corner, and it actually took effect in April. I would say, you know, the team has become more nimble. We've reframed countries of origin and redistributed where we source our materials, et cetera. We're prepared for whatever or however this unfolds, but at this point, we've not changed anything fundamentally. We will navigate our way through this as it starts to become more and more clear. As you're well aware, if you know, if you saw Friday, it was 10%, then there was. implications or new headlines of 15. We're waiting. We're watching and waiting, and then we'll do, not unlike how we executed last year, to mitigate the risk as best we can. At this point, you know, I think we're in this with everyone else that's in the same space of just dealing with how this unfolds. I think it's just simply a little too early to predict. Got it. Yeah, thanks, Anesa. Then in terms of your commentary earlier, this is something that you also talked about on prior calls as well, pivoting away from transactional customers and focusing more on group buying organizations and enterprise customers. Can you share perhaps or give us some color as to how much of these larger customers, you know, how much of this clients represent as a% of sales or, what's the typical kind of margin profile as we think about how this may impact your business going forward? Yeah, I think I understand the question. I guess I'll do my best. I guess what I would say to you, the transactional customers were more episodical, once and done, what have you, and the organization focused quite a bit of energy on that previously. I would say what we've now done is realigned our sales teams to go and work on the accounts where we already have access to the account. It's the opportunity to gain a greater share of wallet, further penetrate those accounts. The margin profile, I would say, is slightly higher, if not improved, versus the area where we want to kind of migrate away from just once and done. I would say we had a lot of promotional activity last year online that, you know, what we wanna do is balance that out so that it shifts and that we're chasing the right kind of profile of customer. More importantly, what I would say we are doing now is leaning more into longer, sustainable, repeatable customers versus more transactional as a whole. I don't have a specific number, but I'll defer to Tex to chime in as well. Yeah, Anesa, I'll just maybe supplement that just a bit. I think specifically on the gross margin profile, it's gonna be slightly lower, as you would imagine, with some larger customers. When we look at the overall profitability of the customer, that's where we see it's actually going to be a more profitable, overall long-term customer relationship, given that you're building that relationship over time, versus, again, a transactional once-and-done customers, when it comes once to your website that you're paying to acquire, and they're having that one purchase, which all typically would have been in that low average order value range as well. When we look at total customer contribution and profitability, this mix is gonna be a benefit to the overall company margin profile going forward. In terms of ratio, as a percentage of sales, we haven't disclosed the individual breakouts of these segments. Again, this is gonna be. These GPOs and strategic customers are gonna make up north of 20% of our volume today, but we still have a strong kind of mid-market and mid-market to large mix within our sales force as well, or our customer base as well. Well, that's very helpful color. Well, thank you very much, and best of luck. Great. Thanks, Anthony. Thank you. The next question comes from Michael Francis with William Blair. Please go ahead. Hi. Good quarter. Wanted to start on the ADS. Just would love to know how much of the growth was your own actions, and share gains versus an improved market backdrop? Hey, Mike, how you doing? Yes, I mean, again, as reported, we're about 14% growth overall, 7.8% average daily sales. When we think about what's going on in the market, I think the market actually performed a little better than some of us expected. We've seen things even continue to trend positively in the Q1, with things like the PMI expanding above 50 in January. There is market momentum. I think when we look at our performance and we look at different breaking down customer penetration and order volume, we believe that we did take share in those areas by our actions. Again, we don't have a great view of exactly what that market grew in the period, but again, we do believe that we gained share through what, our targeted actions were. Michael, what I'll add is we also were very focused on improving our operational and fulfillment execution as well, and so that contributed to the progress and having the right products at the right price to be able to capture the share. That's good to hear. Then within that growth as well, was there any sort of recovery on the SMB side of things? Was the growth more on the enterprise side of things, or was it kind of broad-based? Yeah, I think one thing I would add some color to that, Michael, was we did highlight that we saw some improvement in volume in our web business overall. We actually had good marketing leverage and good web business. The key was being very targeted in that web experience overall and making sure that our sales, merchandising, and marketing teams were fully integrated in their efforts to go after the right customer. That did drive some growth, and we had been facing some headwinds in some of that web business earlier in the year that did, I'll call it fully anniversary by the time we exited Q3. In Q4, we did return to growth in the web business, but again, we were very happy with the customer mix that we saw in the period. We also added to the assortment and the products that we took to market, so that also enabled us to pursue new customers or to further, as I said earlier, to Anthony's question, further penetrate and gain greater share of wallet of existing accounts that were already aligned with us. All right. Last one for me. I know SG&A was up substantially, and you called out that, the incremental compensation expense. Is there anything else to call out in there? The other half, this is as we think about 2026, how should we think about SG&A? Yeah, Michael, absolutely. Again, the one key was, clearly, as mentioned, we had the additional variable compensation e-expense in the quarter. That's a combination. If we think about last year, we had a soft quarter in Q4 2024, we actually had a reduction in some of that variable cost, both on commission and bonuses. This year you had the increase in cost. That relative gap widened just on the relative comparison between Q4 last year and Q4 this year. Just, again, just from a pure absolute number of days periods, we had an extra week of compensation, we had that extra fourteenth week in the quarter. All variable costs and all compensation costs were increased in the Q4, simply because of we paid people for the last week of the year. That's a kind of normal, ordinary course. We would expect really, SG&A management and SG&A leverage continues to be an area of focus. Think about it as a% of sales, shooting for kind of neutral to improvements going into 2026. All right. That's all good to hear. I'll pass it on. Sure. This concludes our question and answer session and today's conference call. Thank you for attending today's presentation. You may now disconnect. Thank you.