Capital expenditures: $28M–$32M; interest expense: $47M–$49M; effective tax rate: 25%–27%
Expect ~15% of annual adjusted EPS in first half, with roughly breakeven EPS in Q1 2027
Expect cost of goods sold exposed to China tariffs to fall to <20% by end of FY 2027, net operating income impact <$10M (CFO)
Mgmt Quotes:
“We are determined to be a better company on the road to being a bigger company. We will do this through ruthless focus and disciplined execution.” (CEO)
“Our current situation was not created overnight, and our recovery will not be instantaneous. However, we are taking a measured approach to building our future.” (CEO)
“Free cash flow generation remains a priority, supported by ongoing work to drive working capital efficiencies and continued debt reduction.” (CEO)
“Our fourth quarter results were a step in the right direction, with net sales, adjusted EPS, and cash flow at the better end of our expectations.” (CFO)
“By focusing on revenue recovery now, we expect to recapture operating leverage and build long-term sustainable momentum.” (CFO)