Core Insights - The article emphasizes the importance of efficiency levels in assessing a company's potential for profit generation, with a high efficiency level correlating positively with price performance [1] Efficiency Ratios - Receivables Turnover measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices [2] - Asset Utilization indicates how well a company converts its assets into sales, with a higher ratio suggesting greater efficiency [3] - Inventory Turnover assesses a company's ability to manage inventory relative to its cost of goods sold, where a high ratio indicates effective inventory management [4] - Operating Margin reflects a company's control over operating expenses, with a higher margin indicating better efficiency compared to peers [5] Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) alongside the efficiency ratios to enhance profitability [6] - The criteria narrowed down over 7,906 stocks to nine, focusing on those with efficiency ratios above industry averages [7] Top Stocks Identified - Flexsteel Industries (FLXS) leads the list with a strong performance in profitability ratios and an average four-quarter earnings surprise of 53.10% [8][9] - Proto Labs (PRLB) is noted for its solid earnings surprises and efficiency, with an average four-quarter earnings surprise of 22.1% [8][10] - TechnipFMC (FTI) is recognized for its efficiency in the energy sector, boasting an average four-quarter earnings surprise of 15.9% [8][11] - Telefonica Brasil (VIV) also meets the screening criteria, with an average four-quarter earnings surprise of 7.7% [8][12]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________ to___________ Commission File Number: 001-35435 Proto Labs, Inc. (Exact name of Registrant as specified in its chart ...

Industry Overview - The U.S. manufacturing sector is showing signs of a solid rebound after struggling for the past three years, with rising demand boosting manufacturing activity despite concerns over high prices and a shrinking labor market [1] - U.S. industrial production increased by 0.7% in January, surpassing analysts' expectations of a 0.4% rise, following a 0.2% gain in December, indicating a recovery in manufacturing activity [3][11] - The ISM Manufacturing Index reported a PMI reading of 52.6 in January, up from 47.9 in December, marking the strongest reading since 2022 and indicating sector growth for the first time in a year [5] Economic Indicators - The New Orders Index surged by 9.7 percentage points to 57.1% in January, reaching its highest level since February 2022, driven by increased demand for manufactured products [6] - Inflation has eased over the past two quarters, and the Federal Reserve cut interest rates by 75 basis points last year, which has helped reduce borrowing costs and price pressures, thereby driving demand [7] - The Federal Reserve is maintaining interest rates in the range of 3.5% to 3.75% and is open to further rate cuts depending on inflation trends, with expectations of inflation slowing to 2.4% by the end of 2026 [8] Stock Recommendations - Proto Labs, Inc. (PRLB) is a quick-turn manufacturer of custom parts with an expected earnings growth of 8.4% for the current year and a Zacks Rank of 1 [9] - RBC Bearings Incorporated (RBC) specializes in engineered bearings and precision components, with an expected earnings growth of 23.6% for the current year and a Zacks Rank of 1 [12] - Helios Technologies, Inc. (HLIO) develops hydraulic and electronic control solutions, with an expected earnings growth of 17.2% for the current year and a Zacks Rank of 2 [13] - Trimble Inc. (TRMB) provides technology solutions for various industries, with an expected earnings growth of 12.8% for the current year and a Zacks Rank of 2 [15]

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Kubota Corp. (KUBTY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Kubota Corp. is one of 179 individual stocks in the Industrial Products sector. Collectively, these companies sit at #7 in the Za ...

The market has been flirting with highs again. When that happens, investors tend to chase whatever’s moving. But that’s not how you win long term. When volatility creeps back in, and it always does, you want stocks with real earnings momentum underneath the hood. The last couple of weeks, the market has begun to show signs of volatility, so it’s really a great time to laser in your focus on names with strong earnings momentum.Strong earnings momentum like today’s Bull of the Day, Proto Labs (PRLB) . Proto L ...

Group 1: Allied Gold Corporation - Allied Gold Corporation operates a portfolio of producing assets and development projects primarily in Cote d'Ivoire, Mali, and Ethiopia [1] - The company has a Zacks Rank of 1 (Strong Buy) and its current year earnings estimate increased by 26.8% over the last 60 days [1] - Allied Gold's shares gained 87.6% over the last three months, significantly outperforming the S&P 500's gain of 1.2% [2] Group 2: Proto Labs - Proto Labs is an online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production [2] - The company also holds a Zacks Rank of 1 and its current year earnings estimate increased by 6.9% over the last 60 days [2] - Proto Labs' shares increased by 34.7% over the last three months, again outperforming the S&P 500's gain of 1.2% [3] Group 3: RBC Bearings - RBC Bearings manufactures and distributes engineered bearings and precision components [3] - The company has a Zacks Rank of 1 and its current year earnings estimate rose by 3.9% over the last 60 days [3] - RBC Bearings' shares gained 23.6% over the last three months, surpassing the S&P 500's gain of 1.2% [4]

Core Insights - The company reported a record fourth-quarter revenue of $136.5 million, marking an 11% year-over-year increase in constant currencies, and the first sequential revenue growth in Q4 since 2017 [2][3][6] - The CEO highlighted strong demand in CNC machining and sheet metal, contributing to double-digit growth, while U.S. CNC revenue grew 25% year-over-year [7][8] - The company ended 2025 with a healthy cash position of $142.4 million and zero debt, while guiding for 2026 revenue growth of 6% to 8% [5][20] Financial Performance - Fourth-quarter non-GAAP gross margin was 44.8%, up 140 basis points year-over-year, driven by higher volume and improved margins in U.S. factories [9] - Full-year 2025 revenue reached $533.1 million, a 5.7% increase in constant currencies, with U.S. revenue up 9.1% while Europe declined 7% [10] - Non-GAAP operating expenses for 2025 were $193.3 million, or 36.3% of revenue, slightly above the previous year [12] Demand Drivers - Exceptional demand for CNC machining and sheet metal was noted, with U.S. CNC revenue growing 35% in Q4 and 25% for the year [6][8] - Injection molding and plastic 3D printing experienced modest declines, attributed to weakness in medical devices and lower prototyping demand [8] Strategic Initiatives - The company is focusing on a strategy to serve customers from prototype through production, anchored by four pillars aimed at enhancing customer experience and operational efficiency [13][16] - Plans for a reorganization of the technology group and the launch of "ProDesk" as a customer-facing experience were outlined, aimed at simplifying processes and accelerating innovation [15][18] 2026 Outlook - Management expects full-year 2026 GAAP revenue growth of 6% to 8%, with first-quarter revenue guidance of $130 million to $138 million [20] - The company plans to reallocate resources to fund transformation efforts without broadly expanding spending, indicating a focus on cost management [21]

Core Insights - Proto Labs has transitioned from a loss to profitability, reporting earnings of $0.44 per share in Q4, surpassing analyst expectations of $0.34 per share [1][3] - The company achieved Q4 sales of $136.5 million, a 12% increase year over year, and full-year sales growth of 6% [3] - Despite the positive earnings report, free cash flow declined by 13% to $59.7 million in 2025 compared to $68.6 million in 2024 [4] Financial Performance - Q4 earnings per share (GAAP) were $0.25, marking a significant turnaround from a loss in the previous year [3] - For the full year, earnings per share reached $0.88, reflecting a 33% increase from $0.66 in 2024 [3] - The gross margin for Proto Labs stands at 44.12% [6] Future Outlook - Proto Labs forecasts sales growth between 6% and 8% for 2026, with Q1 2026 sales expected to range from $130 million to $138 million [6] - Projected GAAP profit for Q1 2026 is estimated to be between $0.17 and $0.25 per share, likely lower than Q4 2025 [6] Market Position - Proto Labs' current stock price is $62.45, with a market capitalization of $1.2 billion [6] - The stock is trading at a P/E ratio of 70, which may be considered expensive given the company's growth rate and declining free cash flow [7]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached a record $136.5 million, up 11% year-over-year in constant currencies, marking the first sequential revenue growth from Q3 to Q4 since 2017 [18] - Full-year revenue for 2025 was a record $533.1 million, up 5.7% in constant currencies [20] - Non-GAAP gross margin for the fourth quarter was 44.8%, an increase of 140 basis points year-over-year [19] - Non-GAAP earnings per share for the fourth quarter were $0.44, up $0.06 year-over-year [19] Business Line Data and Key Metrics Changes - CNC revenue in the U.S. grew 35% in the fourth quarter and 16.7% year-over-year for 2025, driven by strong demand in drones, satellites, and rockets [18][20] - Injection molding revenue declined 1.9% in 2025, impacted by weakness in medical device demand [20] - 3D printing revenue declined 4.7% year-over-year, although metal 3D printing showed strength with double-digit growth [21] Market Data and Key Metrics Changes - U.S. revenue grew 9.1% year-over-year, while European revenue declined 7% in constant currencies [20] - The company noted strong momentum in high-growth markets such as aerospace, defense, and data centers [5][6] Company Strategy and Development Direction - The company aims to serve customers across the entire life cycle of a part, from prototype through production, focusing on four strategic pillars: elevate customer experience, accelerate innovation, expand production, and drive operational efficiency [7][11] - The establishment of a global capability center in India is intended to enhance innovation and digital capabilities [13] - The company plans to implement new go-to-market strategies in Europe to stabilize margins and reset the cost base for growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of strength, expecting a year of transformation and growth [11][17] - The company anticipates full-year 2026 revenue growth of 6%-8% and aims for sustained double-digit revenue growth in the long term [24][17] Other Important Information - The company generated $74.5 million in cash from operations in 2025 and returned $43 million to shareholders through repurchases [23] - The company has no debt and had $142.4 million in cash and investments on its balance sheet as of December 31, 2025 [23] Q&A Session Summary Question: Insights on Q4 performance and sequential growth - Management noted that Q4 saw good order volumes, but January started with a more normalized, softer order rate [29][30] Question: Details on end markets and growth areas - Management confirmed strong growth in innovation-led markets such as aerospace and defense, positioning the company well for future opportunities [32] Question: Strategic initiatives and their timelines - Management indicated that the current year is focused on transformation, with results expected to accelerate in the coming years [34] Question: Unique developer performance and revenue per contact - Management acknowledged a focus on increasing revenue per contact, with a 23% increase in Q4 [41] Question: Injection molding business visibility and growth potential - Management highlighted the importance of ISO certification for expanding production capabilities in injection molding, currently in pilot with two medical device manufacturers [52] Question: India capability center's focus - The center in India aims to leverage technical talent to support global business and innovation initiatives [56]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached a record $136.5 million, up 11% year-over-year in constant currencies, marking the first sequential revenue growth from Q3 to Q4 since 2017 [18] - Full-year revenue for 2025 was a record $533.1 million, up 5.7% in constant currencies [20] - Non-GAAP gross margin for the fourth quarter was 44.8%, an increase of 140 basis points year-over-year [19] - Non-GAAP earnings per share for the fourth quarter were $0.44, up $0.06 year-over-year [19] Business Line Data and Key Metrics Changes - CNC revenue in the U.S. grew 35% in the fourth quarter and 16.7% year-over-year for 2025, driven by strong demand in drones, satellites, and rockets [18][20] - Injection molding revenue declined 1.9% in 2025, impacted by weakness in medical device and lower prototyping demand [20] - 3D printing revenue declined 4.7% year-over-year, although metal 3D printing showed strength with double-digit growth in DMLS revenue [21] Market Data and Key Metrics Changes - U.S. revenue grew 9.1% year-over-year, while European revenue declined 7% in constant currencies [20] - Fourth quarter revenue in the U.S. grew 15.9% year-over-year, while Europe experienced an 8.1% decline in constant currencies [18] Company Strategy and Development Direction - The company aims to serve customers across the entire life cycle of a part, from prototype through production, reinforcing its position as a leading provider of prototype parts [7][8] - Four strategic pillars include Elevate Customer Experience, Accelerate Innovation, Expand Production, and Drive Operational Efficiency [8][11] - The establishment of a Global Capability Center in India aims to enhance innovation and digital capabilities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to leverage growth in innovation-led markets such as aerospace, defense, and medical [32][44] - 2026 is expected to be a year of transformation and growth, with a focus on execution and operational improvements [11][24] - The company anticipates full-year 2026 revenue growth of 6%-8% [24] Other Important Information - The company generated $74.5 million in cash from operations in 2025, leading the digital manufacturing industry in cash generation [23] - The company has zero debt and $142.4 million in cash and investments on its balance sheet as of December 31, 2025 [23] Q&A Session Summary Question: Insights on Q4 performance and sequential growth - Management noted that Q4 saw good order volumes driven by customer engagement, but January started with a more normalized order rate [29][30] Question: Details on end markets and applications - Management confirmed strong growth in innovation-led markets, positioning the company well to serve these sectors [32] Question: Near-term versus long-term results from strategic initiatives - Management indicated that the current year is focused on transformation, with acceleration expected in future years [34] Question: Unique developers and revenue per contact - Management emphasized a focus on increasing revenue per contact, with a 23% increase noted in Q4 [41] Question: Injection molding business visibility - Management acknowledged the decline in prototyping but highlighted efforts to pivot towards production, especially in the medical sector [52] Question: India Global Capability Center focus - The center aims to leverage India's technical talent to support global business and innovation initiatives [56]