Question · Q4 2025
Simon Wong of Gabelli Funds inquired about the current size of the oil and gas business following recent diversification efforts. He also asked for details on the company's differentiated e-frac offering, its potential future contribution to sales, and the CapEx forecast for fiscal 2026.
Answer
CFO Jeff Knudson stated that the oil and gas business represented about 8% of revenue for the year, roughly half its historical percentage, and projected fiscal 2026 CapEx to be between $12 million and $14 million. CEO John Batten explained that their e-frac solution uses a standard geared transmission with an electric motor, which they believe is a more robust and cost-effective solution than variable frequency drives. Batten expressed optimism that the oil and gas segment could rebound to represent 15% of total sales in the future.
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