Arko Corp. (ARKO) 2025 Q4 法說會逐字稿

Greetings and welcome to the Arco Corp fourth quarter 2025 earnings hall.

(Operator Instructions)

It is now my pleasure to introduce your host, Jordan Mann, Senior Vice President of Investor Relations.

Thank you. You may begin.

Thank you. Good afternoon and welcome to Arco's fourth quarter and full year 2025 earnings conference call and webcast.

On today's call are Arie Kotler, Chairman, President and Chief Executive Officer, and Galagher Jeff, Chief Financial Officer. Our earnings press release an annual report on Form 10K for the year ended December 31, 2025. As filed with the SEC are available on Arco's website at www.arcocorp.com.

During our call today, unless otherwise stated, management will compare results to the same period in 2024.

Before we begin, please note that all fourth quarter 2025 financial information is unaudited.

During this call, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Please review the forward-looking and cautionary statement section at the end of our fourth quarter and full year 2025 earnings press release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today.

Any forward-looking statements made during this call reflect our current views with respect to future events, and Arco is under no obligation to update or revise forward-looking statements made on this call, whether as a result of new information, future events, or otherwise, except as required by law.

On this call, management will share operating results on both a GAAP and a non-GAAP basis. Descriptions of those non-GAAP financial measures that we use, such as adjusted EBITDA and reconciliations of these measures to our results as reported in accordance with GAAP, are detailed in our earnings press release or in our annual report on Form 10k for the year ended December 30th, 2025.

Additionally, management will share profit measures for our individual business segments along with fuel contribution, which is calculated as fuel revenue less fuel costs and excludes intercompany charges by our GPMP segment.

And now I would like to turn the call over to Arie.

Thank you and good afternoon, everyone.

2025 was a pivotal year for Arco.

We continued to execute on our transformation plan, fortified our foundation, and sharpened our focus. We continued to optimize our retail footprint. We improved our core structure, and we positioned the company for continued a creative growth across our four segments in 2026.

Our strong fourth quarter results reflected that progress. Adjusted EBITDA grew 16% year over year to $66 million.

Same store merchandise sales trend improved and margin expanded 140 basis points to 34.4%. Retail site's operating expenses were down 16% compared to the prior year period, and retail fuel same store gallon trends improved as we exited the year with IRCPG.

Let me be clear, these improvements are not to be viewed as driven by the macro environment. The consumer is still cautious. They're still value focused. What you're seeing is execution across dealerization, remodels, NTI retail stores, food service, and loyalty. We are running a better business, and the results reflect that.

Earlier this month, we closed the IPO of our subsidiary Arco Petroleum Corp or APC.

We issued approximately 11.1 million Class A shares at a price to the public of $18 per share, and we own 35 million Class B shares currently representing 75.9% of the economic interest in APC.

This was a major milestone.

This listing shine a spotlight on what has become a large, growing, and highly profitable wholesale fuel distribution and fleet fuel business.

We've consolidated our wholesale fleet fueling and GPMP segments under this separately listed subsidiary.

The result is greater transparency, clearer economics, and what we believe is meaningfully unlocked value for shareholders.

Until 2020 we were a pure play retail operator. Over the years through acquisition, we built a large wholesale and fleet fueling platform. These assets have been strong, however, they complicated understanding our overall story. Our creation of APC allows both the retail business and the wholesale and fleet fueling businesses to stand on their own.

We issued $200 million of new equity in the IPO to quality investors. Those forces were applied to reduce debt.

Our balance sheet is stronger, our flexibility is greater, we're positioned to execute.

So what does post-transaction Arco 2.0 look like?

A core stronger retail business concentrated in markets where we believe we are positioned to win.

A standalone publicly traded oral and fleet fueling business with an anticipated eye conversion from adjusted EBITDA to discretionary cash flow.

A conservative balance sheet, strong cash position, ample liquidity at a very attractive cost of capital, and continued access to the capital markets, and a structure that offers investors greater visibility into each business and allows the market to value each business on its own merits.

This is not just a structural change.

It's a strategic inflection point. We now have 2 public companies, clear capital allocation, and a better ability to focus on what we can control in retail while working to drive consistent returns across both Arco and APC.

Here's the opportunity in APC.

APC is one of the largest fuel distributors in North America. Over 2 billion gallons distributed in the last 12 months, and yet we have roughly only 1% market share.

1% In a highly fragmented industry.

The runway for growth is substantial.

We see strategic accretive opportunities to expand this platform, and we believe APC will be a key growth engine for Arco going forward.

Now let's talk about dealerization.

This remains one of the most important levers in our transformation plan.

As of year end, we had completed 409 conversions.

We have approximately 120 additional sites committed either under letter of intent, under contract, or already converted since year end, and we expect to complete those plus additional conversion.

By the end of 2026.

This realization strategy is delivering exactly what we said it would.

Reducing fixed costs, reducing maintenance cap apps, improving cash flow, and creating a more focused and regionally concentrated retail base.

The Q4 results validate the strategy.

The operating leverage is real. The cost improvements are showing up.

We are now seeing tangible benefits from stores converted in the last 12 months, as reflected by a more than $5 million benefit to operating income in the fourth quarter before G&A savings.

Bottom line, dealerisation has sharpened our focus, improved execution, and it is now flowing through to financial performance.

Turning to loyalty, our fast rewards platform and fueling America's Future campaign continue to be central to how we drive enrollment, engagement, trip frequency, and basket size.

In Q4, loyalty members outperformed across the board, with enrolled members spend more than 48% higher than non-enrolled members.

Loyalty customers also made 51% more trips to our stores than non-enrolled customers.

Through 2025, since Fueling America went live, average daily enrollment is up 38%.

This is consistent with what we said all along. Loyalty is not just a promotional tool.

It's a margin driver, a traffic driver, and a retention engine.

In 2026 we're working on accelerating enrollment and launching a new version of the app with enhanced personalization and vendor supported benefits.

Loyalty remains under penetrated across our network. We see significant runway ahead.

Now to remodels.

We're very encouraged by the early results from our Food forward remodel program.

In Ashland, Virginia, our first remodel reopened in June 2025.

In the first six months, on an average daily basis, sales grew 14%, gallons grew 12%, average daily sales more than doubled in 4 different categories, and the stores outperformed its prem remodel period across 20 different categories.

In Mechanicsville, our newly remodeled store opened later in 2025 and through year end.

Sales improved over 10%, gallons have grown over 20%, and post-remodel, the store has grown in 15 categories and doubled in two categories.

We're targeting double-digit returns on remodels, and early performance is tracking at or above those targets.

Additionally, we are in the planning stages for approximately 25 remodels which will feature the fast grade food and beverage elements. We're also expanding food and beverage in non-remodeled stores where space allows.

Food penetration across our network of stores is growing.

Every project is measured on ROI, and food is the differentiator.

Now to NTI retail stores, our new to industry stores.

These are purpose-built, newly designed stores, the blueprint for our future.

We opened two NTI retail stores in 2025 and a Dunkin's store, one more NTI retail store earlier this quarter, and another one earlier this week.

One more NTI retail store and 3 Duncan's stores are to be added later this year.

We're targeting double-digit returns, and the two we opened in 2025 are already ahead of plan.

These are eye visibility locations with simplified operations and foot forward layouts.

On capital allocations, our priorities for 2026 are clear.

We plan to further scale iReturn remodels, expand NTI retail stores selectively, and invest in NTI clog location in our fleet fueling business.

These NTI cardlog locations typically generate attractive mid to 1 returns with minimal labor, while the cost to build is only $1million to $2 million.

We are targeting 20 NTI cloud lock locations this year in our investment cap tax plans and have already identified and are working on 10 of these NTI cloud log locations.

On the macroenvironment and Q1 2026 trends, the consumer is still value focused. People are making deliberate choices. Baskets are being won through relevance, promotions, and convenience.

We picked up market share in every nicotine category in 2025.

OTP for the year was up 4% and energy drinks were up 8%.

Trends improve through the backup of 2025.

We build momentum in Q4 and that momentum has carried into 2026.

In January and so far in February 2026, we saw mid-single-digit growth in same store merchandise sales and positive same store gallons growth before winter storms at the end of January and the beginning of February created some disruption.

We're not going to over extrapolate from early data, but directionally trends are improving versus where we were in early 2025.

Bottom line, we believe that we have a lot of growth ahead of us with a strong balance sheet and ample liquidity to execute our strategy.

Before ending the call off, I want to address an important leadership update. In December, we welcomed Galagher Jeff as our new CFO. Gallagher brings deep retail experience and, importantly, deep expertise in the convenience and fuel sector. He held senior roles at Walmart and Dollar Tree, and Galagher was most recently CFO at Murphy USA.

I also want to thank Jordan Mann for stepping in as interim CFO and supporting the transition.

With Gallagher now leading the finance team at Arco, Jordan served as CFO of APC while continuing as Arco's senior VP of corporate strategy, capital market and investor relations.

We're excited about the leadership team we assembled and what Galagher brings to Arco at this pivotal time.

With that, I will turn it over to Galagher to walk through our financial results and outlook.

Thank you, Arie, and good afternoon, everyone.

I am grateful to be here at Arco and excited to work alongside Arie and this entire leadership team.

In my short time here, it's come quickly evident to me what an immense opportunity we have to scale the Arco platform and dramatically enhance the growth and financial performance of this company.

First, I want to thank and recognize the team.

I've been impressed by the dedication.

The talent and the operational discipline.

In the field and at the support center.

There's a strong foundation here that will take us forward.

Second.

I'm encouraged by what I'm seeing in the stores. We are improving our stores, and it is showing.

Our trends improved as we exited 2025, and we continued to see momentum into early 2026, even with some weather disruption.

Third, and this stands out to me, it's the level of analytics and rigor in decision making.

Particularly on capital deployment and evaluating returns on every dollar we spend.

That discipline is critical as we focus on the highest return levers in the business.

Overall, I believe Arco is entering an important phase.

The work to simplify, reposition, and strengthen the company through transformation is largely behind us.

Now it's about translating that into consistent growth and improved financial performance.

With that, let me walk through our fourth quarter and for your results and then discuss the outlet.

Turning to our fourth quarter and four year 2025 results, net income was $1.9 million for the quarter, reversing a net loss of $2.3 million for the prior year.

Adjusted EBITDA was $55.7 million for the quarter compared to $56.8 million for the prior year, an increase of 16%, reflecting the results of our transformation efforts.

That we are improving merchandizing margins, generating strong fuel performance, streamlining our business through dealerization, and building significant expense discipline across the organization.

For our retail segment.

We delivered merchandizing margin of 34.4%, an increase of 140 basis points for supp prior year.

Thanks to our merchandise sales, we're down 3% for the quarter and down 4.1% for fiscal year 2025.

And same store merchandizing sales, excluding cigarettes, were down 1.8% for the quarter and 2.7% for the full year.

As already mentioned, our merchandizing sales trend strengthened over the course of Q4, and that momentum has carried us into early 2026.

Retail fuel same short gallons also improved in Q4 and were down 4.1% for the quarter and down 5.4% in fiscal year 2025 versus the prior year periods.

Retail fuel margin cents per gallon improved in Q4 to approximately $44.5, reflecting discipline pricing in a relatively volatile environment.

We remain focused on operating expenses for the fourth quarter of 2025. Site operating expenses decreased by $29.5 million or 15.7%, compared to the prior year period, primarily due to $31.1 million of reduced expenses related to retail stores that were closed or converted to dealer locations.

Same store operating expenses were nearly flat, up 0.6%, as tight labor management and cost discipline in stores mostly offset increases in rent and wage rates.

Turning to our wholesale segment.

Wholesale fuel contribution increased 8% to $24 million in the quarter compared to $22.3 million. Gallons also increased by 4% to $249 million gallons, and fuel margin was approximately $9.07 per gallon for Q4.

For the full year 2025, wholesale generated $94.5 million of contribution, a 5% increase from $90.4 million last year, with total gallons increasing 4% to $989 million and fuel margin cents per gallon of approximately $9.06.

Moving to sleep fueling segment.

Leak fueling fuel contribution was $15.9 million for the quarter compared to $16.3 million last year.

Fleet fuel and gallons totaled $34.9 million gallons compared to $36.1 million gallons, and margin was $45.06 per gallon.

For the full year, fleet fueling generated $65.7 million of fuel contribution on $142.8 million gallons with a margin of $46.00 per gallon.

This compares to $64.3 million of fuel contribution on $149 million gallons last year.

Fleet fueling margins remain strong and continue to reflect the durable cash flow profile of this business.

Adjusted EBITDA for the year was $248.7 million flat to the $248.9 million in 2024.

While top-line performance remained pressured, structural improvements in margin and strong cost control helped offset volume headwinds.

Net income was $22.7 million for 2025 as compared to $20.8 million for 2024.

We are seeing results in the execution of our strategy and our performance in nearly every area strengthened as we finish the year.

Merchandizing margin was 33.7%, up 90 basis points year over year.

Same store retail operating expenses remain flat for 2025 versus 2024.

With our productive initiatives and lower credit card fees, overcoming headwinds with wage increases, expanded food programs, higher maintenance costs, and higher snow removal expenses.

Merchandise and store sales were down 4.1% for the year.

And retail fuels, same store gallons were down 5.4% for fiscal year 2025.

But both improved as we entered and exited Q4.

Looking through the balance sheet.

We finished 2025 with $305 million in cash, and our balance sheet remains strong.

Following the successful IPO of Arco Petroleum Corp, we received approximately $184 million in net proceeds.

Which we use to reduce debt and enhance liquidity.

The transaction positions us with a stronger capital structure and greater financial flexibility to execute our strategy as we enter 2026.

Regarding capital allocation, we remain disciplined.

And focused on high return investments including dealerization and execution.

Retail, remodel expansion.

Retail NTI development.

Technology and analytics and car lot growth in our fleet platform.

We remain comfortable with our leverage ratio and have more than enough cash and liquidity to deliver our strategy and continue to build momentum with the capital initiatives mentioned above.

Turning to 2026 guidance.

We currently expect 2026 adjusted EBITDA to range between $245 million and $265 million.

With an assumed range of average retail fuel margin from $41.5 to $43.05 per gallon.

For sensitivity purposes, every $0.01 change in retail same store CPG is estimated to result in $8million to $9 million of adjusted EBITDA.

We believe 2026 same store retail sales will be relatively flat and will improve several 100 basis points versus our 2025 results.

We're planning same store margin.

Between 35.5% and 36.5%. Also an increase versus 2025.

As stated in the Arco Petroleum Corp prospectus, we expect our APC business to deliver approximately $156 million in adjusted EBITA in 2026.

As a reminder, APC includes the results from our wholesale fleet fueling. And GPMP segments.

Including a $0.06 fuel margin on fuel distributed by our GPMP segment to our retail stores.

Our estimated gallons for the forecast period include an assumption we will add an additional 50 million gallons in volume for the year ending December 31, 2026 as a result of our acquisitions from third parties of businesses or assets in our wholesale segments, offsetting an estimated decline in gallons from comparable wholesale sites consistent with historical trends.

Finally, we will continue to manage all of our controllable cost in both stores and in our office.

Arco will be a low cost operator.

To summarize, we are executing our transformation strategy, and it is working, so we fully expect to continue to show momentum and improve our performance in nearly every key metric in 2026.

With that, I hand the call back to the operator to begin Q&A.

(Operator Instructions)

Bobby Griffin with Raymond James.

Good afternoon. Thanks for taking the questions.

I guess our team, I guess the first one for me is maybe on the merchandise sales for retail. Your guidance includes some notable improvement here further in 2026, we're getting towards the later innings of the dealerization program. So can you maybe unpack some of the drivers of the further improvement? Is there more contribution coming from remodels, just anything there to help us kind of get visibility into the confidence, of that versus, some of the trends we see here in 4Q.

Good afternoon, Bobby. Good to have you with us over here. So, I think that the first thing is, of course, execution and our marketing initiative. As I mentioned, we started, with, a Feeding America campaign back in the end of Q1 2025.

And given that, customers are looking for value as we continue to move forward with this campaign, we saw an increase in loyalty transactions. We saw an increase in loyalty enrollment, and and those droves, of course, customers to the core categories. That's the reason, if you think about that, you saw a huge improvement. We actually gained market share in almost every nicotine, item in the category.

OTP was up 4%. Energy drink was up 8%, and if you think about it, those categories are high margin categories.

So we believe that all of the marketing initiatives that we had during the year, as we continue to basically to improve our initiative and improve those categories, I think that will actually draw the margin increase in customer engagement within the stores.

There's no question that food service helps us as well. There's no question that every time when we remodel a store or build additional NTI that are actually progressing above our expectations, there is no question that those things drive directly to the bottom line. But it's not just one item, it's every little thing that we did this year, and as I said, most of it is really engagement to our loyalty program.

And I think, customers, keep coming because of those, basically those promotions that we are actually putting out there, we just upped our promotions from $2 off per gallon to $2.50 per gallon, given the 250 years, American birthday this year.

So now customers can actually save up to $50 for every 20 gallons that they are being they're actually buying, so again, we believe all of those initiatives are the ones that drove basically sales or at least drove margins inside the store, and as you mentioned, I believe that given that the cost of fuel dropped during Q4 and was actually at the $2.50 I actually feel that because of that customers coming more often to the store.

Maybe switching gears and talking about the remodels some, don't want to extrapolate out early results, from only a few stores, but it does seem like the trends are promising, can you explain a little bit on, what's the cost of capital for that remodel, and then it seems from the release maybe there's. Opportunity for kind of a partial redesign where you talk about, taking some of the fast craves food formatting change and taking, a few of those and putting them into other stores but maybe not a full remodel. So can you talk a little bit about the capital of that type of remodel and what ultimately the opportunity could be?

Sure. So as you can assume, the first couple of remodels that we did, it was a major remodel. It wasn't only the food, it was the entire store from the outside to the inside, carve app eel, adding some space to the stores. So those are the first two remodels that we did. And the cost of a typical remodel like this, it's approximately a million dollars, around a million dollars, between $900 to $1.1 million but let's call it a million dollars. There is no question that many of the other stores can go through a soft remodel, just adding their fast grades, and as a matter of fact, in those 25 locations that you know we are working on. We're really, price engineering everything right now how to reduce costs. There is a big difference between, working on a couple of stores versus working on 25 stores at the same time, but I believe at the end of the day, we can go to a software model that would cost us around a half a million dollars or so. Something between, as I said, $400,000 to $700,000 is probably a good number, to stick.

That's helpful. And I guess A or whoever, on the team, when you kind of look at your retail base that you're going to own post the dealerization, I understand that you've given us some targets, but there's also some more. What size or what percentage of the stores post all this dealerization that you're going to own, do you think need a remodel of some sort?

I don't have the percentage, Bobby. I think that most of the stores that we are actually keeping have less capital, intense in terms of what they need. I think those remodels, it's really not about just the curb appeal. It's really how do we, add food service like fast graves into those stores, and if it's not food service, what are the other categories that we can actually improve.

Or actually we can add to the stores, so I think the business itself, the stores that we are keeping, are, many of them are, stores that, money was invested over the years. So I don't think it's really, a question of capital. It's really a question of what do we want to drive from these stores and as I said, food service is being one of the biggest initiatives over here, so we are concentrating on stores right now that may not need a remodel, but we're probably going to just invest money in food service any place that we will be able to add fast graves, regardless of the remodel, we will add actually fast graves into those stores, and there are plenty of them.

And Bobby, just to build, just to build on that a little bit, Bobby, back to your question before, from the remodels, we're also trying to understand which elements of those remodels are working and driving results. So like Arie said, there's a lot of stores with some space, and we can take a low cost approach to add the right assortment, add the right elements in those stores that don't require a full remodel and still get a lot of the benefits. So it's not a high capital expense. It's really trying to find the right elements that customers are responding to, mostly around the fast craze and the food. And getting those into more stores.

Understood. I'll jump back in the queue. Best of luck here, on the first quarter and congrats on, the announcement about your, APC business.

Thank you, Bobby.

Dan Guglielmo with Capital One Securities.

Thanks. Hi, everyone.

Thank you for taking my questions. In your opening remarks, you mentioned a still cautious consumer and then in the prior quarter call you highlighted the Midwest and other select markets as under pressure with other regions being healthier. Are you still seeing that pressure in the Midwest or is it more kind of broad-based now? Any additional color would be helpful?

And I think the pressure in the Midwest continues to be probably the main pressure. I think I see some ease in the rest of the country, and that's going back, Danielle, by the way, to the point I made earlier, which is the minute the price of fuel broke $2.50 or went below the $2.50 we saw all of a sudden, customers, coming more often to the store.

We see an increase in basically in gallons. We see an increase in transactions in baskets.

So I really think that, I'm not an economist, but I think that given the price of fuel dropped below $2.50 I think that is some of the spending, with our customers. So I don't think anything changed from, I'll call it from a region standpoint or from what I discussed earlier in the year. I just think that the initiatives and the promotions that we have out there are just, screaming to the customers, and I think that's the customers are coming in and taking advantage of those promotions.

Okay, I appreciate that and that makes sense and then on the initiatives and the promotions I saw you all put out the 3 4 5 6 dollars value meal deals. Do those meals at those prices drive merchandise margin expansion on their own, or is it more of a way to kind of get customers in the door to increase basket size, do other things?

Yeah, that's a good question, Daniel. So just to be clear, those promotions are being 100% supported by our vendors.

So this is not promotions in order just to drive customers and actually lower margins. Our margins stay the same. Those promotions are being supported by vendor partners.

But there's no question that when you have those promotions, that involve food service, those promotions, not only bringing customers in, they're actually driving the rest of the categories which is, OTP, for example, candy, energy drinks. So I think those promotions just, continue to gain momentum with the other categories. And like I said, those promotions bring customers, those customers turning to buy higher margin co categories, items.

And the more they come in and, concentrate on the core categories, cigarettes becoming a much smaller piece of the business, so it's much more a small piece of the pie of what the customers are purchasing within our stores. But Danielle, I just want to be clear, this is all hard work by the team, the merchandizing and marketing team, thinking every day. How we can actually be different than, the competition across the street and how we can bring customers in, so that's a lot of work. I want to be just clear it's a lot of work being put into this with loyalty with food service, and that's what drove the results in Q4 as you can see, and that's I believe what drove, basically sales in Q1, so far.

Great, appreciate it, yes, and you can see it in the numbers for sure, thanks.

Thank you very much, Danielle.

Hall Holden with Barclays.

Thank you. So I had, two quick questions. The first one is, on the APC side of the business, if you sort of talk about what the M&A opportunity is there now that you have a separate currency and and balance sheet to expand in the field distribution.

Sure.

So, I don't know how much, I'm sure that some of you know how big is the industry. We're talking right now about an wholesale business, a fleet business within an industry of over 195 billion gallons, and I mentioned it on the call. We only sell 2 billion gallons. It's a lot. We are one of the largest ones in the country, but it's only 1% of the industry.

We believe with APC. With our, basically with our capital that is available at a very low cost, we have over $635 million available for acquisition. Our leverage is very low, and I think we have the track record of doing acquisition. We did 26 acquisitions involved retail over the past 11 years. And I think in this fragmented industry, which is much more fragmented industry than the industry that we saw in retail, I believe that we're going to be able to, gain a lot of momentum over here. In addition to that, we are one of the largest, cloud log operator in the country. That's the fleet business.

And you know this is an industry that is also fragmented. We have, we're targeting 20 new cloud logs in 2026. We already identified 10 of them to build a cloud lock. It's not expensive. It's around $1million to $2 million and we're targeting, mid to IP returns.

So again, we believe that the opportunities now when we have APC on its own, we believe that.

That's going to be a big opportunity for us to continue to do our creative acquisitions moving forward.

Yeah, great. And then just kind of a dumb accounting question, but you gave us the E of guidance for the company and then the even of guidance for APC that was in the S1.

Am I right in just implying that the retail business EP is about $100 million for 2026.

Hale, this is Galagher. There's some elimination there for the intercompany sales, so you can't just 1 plus 1 equals 2. So, part of the, wholesale business sales into our retail stores, we do eliminate that. As a transfer, so it's not exactly that simple. We do break down the segments in the release so you can compare the segments and build the model. So we're also going to be a lot more transparent as you would expect with APC going forward, so shortly we'll be providing separate information and, releases for those.

I figured it was not as simple as it was in my head, so I appreciate.

Thank you. We're happy to help if you need help though.

Thank you.

We have reached the end of the question-and-answer session and therefore I'd like to hand it back over to Arie Kotler for closing remarks.

Thank you, operator.

Before we disconnect here, I want to speak directly to our employees.

The great results we discussed today are testament to your hard work and resilience. Your dedication and commitment drive our progress every day, and we are deeply grateful for everything you do to support our mission and serve our customers.

Thank you for your efforts and for being the foundation of our continued success.

To our shareholders, thank you for your trust and partnership. Your continued support enable us to pursue our strategic goals and deliver value across our businesses.

We are committed to maintaining transparency and working diligently to meet your expectation as we move forward together.

As we head into 2026, our financial position remains robust and our commitment to expanding through value enhancing acquisition is stronger than ever.

We appreciate your time. Have a great evening, everybody.

Thank you and this concludes today's conference and you may disconnect your live at this time.

Thank you for your participation. Have a great day.