# 2026 Annual Letter to Shareholders

**Northwind Holdings** · March 2026

To our shareholders,

Book value per share grew **14.2%** in 2026, against 9.8% for
our benchmark. More important than the number is how it was
earned: no leverage added, no accounting changes, one business
sold because we no longer understood its economics.

## The operating businesses

Our logistics group had its best year since acquisition.
Volume grew modestly; margin grew meaningfully — the pattern
we prize, because it comes from process rather than pricing.

| Segment    | Revenue | Op. margin | vs 2025 |
| ---------- | ------- | ---------- | ------- |
| Logistics  | $412M   | 18.4%      | +2.1pp  |
| Components | $268M   | 11.2%      | +0.4pp  |
| Software   | $95M    | 24.0%      | +3.6pp  |

## Mistakes

We held the components inventory build too long into the
downcycle. The cost was roughly $9M — a tuition bill, and we
record it here so we remember paying it.

## Looking forward

We enter 2027 with more cash than ideas, which history
suggests is the safer imbalance.

**J. R. Whitfield, Chairman**