Niterra 4Q25: Thesis Confirming

4Q25

Revenue: 5.5% y/y

EBIT: 25.3% y/y

EPS: 92.1

FY 2025

Revenue: 6.3% y/y

EBIT: 13.4% y/y

EPS: 466.34

Another great quarter for Niterra and the momentum behind the fundamentals continues. They came in at the high end of their organic revenue guidance and have again executed on the margins. They've guided for 453.10 in EPS for FY2026, which was a little lower than I had previously modeled. This is likely due to the tariffs, which I think was already being priced in to the stock pre-earnings. Around 80% of Niterra sales are exports, so it's not unreasonable for the stock to be affected by these concerns.

I am very comfortable with my 18% weight in Niterra right now. It's by far my largest weight, but I still have my highest conviction in this name. I feel like I have a real margin of safety here. I'm planning to add another Japanese name that I have been working on because I want to be overweight Japan. Next quarter will be a little more interesting because we will see the balance sheet effects of the Toshiba acquisition and will probably get some detail about the Denso acquisition.