A：The key financial results for the fourth quarter include organic growth of 2.2%, an operating margin of 21.1%, earnings per share of $1.83, and free cash flow conversion of over 130%. The year saw organic sales growth exceeding 2%, outperforming the macro environment.

A：The three pillars of commercial excellence mentioned are improved sales effectiveness and pricing, governance, stronger collaboration with channel partners including joint business planning and cross-selling, and increased customer loyalty.

A：The company's innovation efforts have been successful, with 184 new product launches in 2025, up 68% versus 2024, and 350 launches expected in 2026. The new products are expected to contribute significantly to top line sales.

A：Operational excellence performance figures for the year include an overall equipment effectiveness (OEE) of about 63%, an increase of over 300 basis points, and a cost of poor quality of 6% of cost of goods, down 100 basis points year on year.

A：The current focus regarding operational inefficiencies is on key areas such as frequent or ineffective changeovers, late detection of material defects, and scrap, with an objective to achieve a 5.4% cost of quality in 2026 and less than 4% over time.

A：Macro trends impacted the company's organic growth positively in the second half of 2025. The organic sales growth accelerated to 2.7% in the second half from 1.5% in the first half, with exceptional strength in electrical markets, aerospace, and self-contained breathing apparatus.

A：The company's outlook for 2026 is positive, with an expectation of organic sales growth of approximately 3%, an adjusted operating margin expansion of 70 to 80 basis points, earnings per share of $8.50 to $8.70, and free cash flow conversion greater than 100%.

A：The three phases of the company's strategy to create value for shareholders are: 1) A back to basics focus on fundamentals approach, 2) A more transformational phase involving re-engineering the structural cost base and embedding an AI-first mentality, and 3) A focus on higher growth and margin priority verticals, with a shift from a holding company model to an integrated operating company model.

A：The adjusted free cash flow in the quarter was $1.3 billion with a conversion of approximately 130%. This was due to strong earnings growth and working capital efficiency.

A：The safety and industrial business group grew 3.8% in fourth quarter organic sales and 3.2% for the full year 2025. Fourth quarter growth was driven by strong performance in safety and continued growth in industrial adhesives and tapes, while abrasives grew mid single digits. Full year growth accelerated from 2.5% in the first half to 3.9% in the second half.

A：The fourth quarter organic sales increase in transportation and electronics was driven by continued momentum in electronics and aerospace, which more than offset weakness in the auto sector.

A：The consumer business group's fourth quarter organic sales were down 2.2%. For the full year, CBG revenue declined by 0.3% due to weaker consumer sentiment and retail traffic in the US, partially offset by new product introductions and investments in the US and growth in Asia and Latin America.

A：The company had an organic sales growth of 2.1%, a 200 basis point margin expansion, an EPS increase of 10%, and free cash flow slightly above sales growth. The strong operational performance contributed to a 96-cent earnings increase, which was offset by non-operational items for a total EPS of $8.60.

A：The company expects approximately 3% organic sales growth, earnings per share ranging from $8.50 to $8.70, and free cash flow conversion greater than 100% for 2026.

A：The company's pivot to priority verticals represents more than 60% of its current revenue base due to internal investment dollars focusing on these areas for growth and differentiation.

A：The company is in the process of structurally adjusting its portfolio to achieve a better sustainable organic growth rate for the overall company. This includes divesting some businesses that are more commodity-based and focusing on priority verticals.

A：The company's industrial businesses, specifically abrasives, certain adhesives, and the electrical businesses, are performing well and contributing to the company's growth.

A：The company expects its overall industrial businesses to remain pretty solid despite a softening in IPI across the US and China, important markets for the company.

A：The automotive sector is a watch area with auto builds expected to be down 0.3% due to weaker conditions in China, and consumer electronics are looking flattish in the macro forecast, although the company believes in its business and expects mid single-digit growth for the year.

A：The US consumer market currently feels subdued, with a negative year-to-date performance as of Q4, although December had double-digit growth. The company anticipates continued outperformance of the macro due to commercial excellence and new product initiatives, with an expectation for this to accelerate in 2026.

A：On the industrial side, inventory levels are normalized in the 60-day range and sales were tracking well as expected. On the consumer side, inventory levels were elevated at the start of the quarter but have been coming down and normalizing. The company's pricing strategy involves leaning into new products, covering material cost inflation, tightening pricing governance, and expecting to get pricing when launching new products, which is a long-term opportunity for the company.

A：The company expects EPS growth to be equal between the first half and the second half, implying a similar growth rate for the full year. For the first quarter, revenue is expected to grow over 3%, with a slower growth trajectory anticipated for CBG throughout the year.

A：For 2026, the company is guiding towards a 3% growth rate, expecting to outperform the macro by $300 million or more, which is roughly half and half between new product introductions (NPI) and commercial excellence. The back half of last year showed a significant outperformance, and the company expects to see more of that in 2026, supported by new projects and their tracking of incremental revenue from classes three, four, and five, which are expected to move the needle for the company and enable outgrowing the macro.

A：The company is part of a broader transformation agenda which includes footprint optimization. They have announced the sale of precision grinding and finishing operations, which will reduce the number of factories. They anticipate a decrease in the number of facilities and aim to consolidate both factories and distribution centers. The company has also been making progress on distribution centers (DCs) and expects to start restructuring the network in 2026, although they cannot size the impact yet. These changes are intended to build margin runway to grow beyond a 25% operating margin in 2027.

A：The company had anticipated a similar trajectory for consumer market growth into the fourth quarter, but this did not materialize as expected. October and November experienced light sell-through and inventory accumulation, which was partially reversed in December with double-digit growth compared to the prior year. The December holiday season was described as muted, leading to a decrease of 2.2% in Q4. The company characterizes the consumer electronics market as being relatively soft, with growth bumping around flat as it entered and ended the fourth quarter. However, as it is very early in the first quarter of 2026, no definitive comments can be made about the performance.

A：The electronics segment is expected to grow in line with the company's overall electronics business, which includes a focus on foldable devices and semiconductor data centers. The company is making good progress in China and other Asia Oems in the mainstream market and sees an opportunity to grow in this segment. The growth for the electronics segment is expected to be mid single digits in 2026, similar to what was seen in the previous year.

A：The company does not anticipate the expansion into mainstream markets to be margin dilutive. The team is focusing on developing cost-effective products as part of its innovation efforts, and thus far, there has been no margin degradation. Although it is early days, the company is pushing ahead with this initiative and seeing progress in growing its position in the mainstream market.

A：The expected trend for the 500 million in litigation costs in 2025 is that it will likely be in line with that amount. The exact up or down trend in 2026 cannot be predicted, but it will depend on future events in the overall docket.

A：The expected growth pattern for SBG in 2026 is not explicitly detailed in the transcript but is discussed in the context of the company's overall performance and expectations. There is recognition of good momentum in the first half of the year compared to the second half, and while the roofing business is experiencing weakness, it is expected to drag into the front half of 2026. The company expects the overall performance of SBG to continue to grow and perform well in 2026.

A：The mainstream strategy being implemented is specific to consumer electronics. The company is focused on shifting its business model to lower costs and pursue interesting growing segments profitably. Although not explicitly stated, the implication is that the strategy is not being implemented beyond consumer electronics at this time.

A：The expected incremental margins for the year are in the low 40% range, which is slightly above the core or organic growth of 30% to 40%. The productivity assumption and offsets from stranded costs are not detailed, but it is mentioned that volume and productivity in 2026 are expected to be higher than in 2025. For the first quarter specifically, the company anticipates high single-digit growth, and while not confirmed, the implication is that it could potentially be above 2 dollars per share.

A：The company expects half of the total productivity gain to come out of the supply chain.

A：The major factors that will offset the productivity gains in 2026 are a pickup in investments, with an incremental increase from $100 million to $115 million, and a $140 million impact from tariffs.

A：The company plans to address the potential shift in the addressable market by focusing on early design process cost considerations and holding individuals accountable through quality of business cases. The approach emphasizes a design to cost mentality and rigorous development based on cost data.

A：The forecasted growth for China in 2026 is for a decrease of two points in Ipi year over year. Factors influencing this include a macroeconomic softening, the shift out of China's smartphone production, and a market expected to grow in the low to mid-single digits.

A：The potential impact of new tariffs from Europe on the company's business is estimated to be around 30 to 40 million dollars, based on a trade flow between the company and Europe of about a billion dollars and a 10% to 25% increase due to the tariffs. This impact is expected to be seen over the course of the year and could include inventory adjustments and carryover into 2027. However, as of the conversation, the tariffs have not been enacted and are not yet included in the company's guidance.

A：The positive sales comparison in December was attributed to strong promotional programs with large retailers and the team's hard work, which drove growth in December despite being weaker in October and November. The exact reasons for the strength in December are not seen as indicative of a long-term trend and are expected to normalize in the following months.

A：The company is forecasting a flattish industrial production for 2026 despite an improving trend in the second half of 2025 due to the expectation of continued softness in the auto aftermarket and roofing granules business. The team's execution in commercial excellence and new product introductions is expected to outperform the overall industrial macro conditions.

A：The company expects NPIs to contribute to half of the projected $300 million higher market outgrowth in 2026. This contribution is from both new product launches in the back half of 2025 and those expected in 2026. The company feels positive about the trajectory and momentum in NPIs and commercial excellence initiatives.

A：The decline in consumer margin in the fourth quarter was due to increased advertising and promotional activities. Despite this, the team has done well, growing margins 130 basis points for the year. The outlook for consumer margin in 2026 is positive, with expectations of improvement as the business stabilizes and a slight consumer recovery.