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SEC filingStrong quarter driven by Infrastructure segment growth, with margin expansion and robust cash flow, though Agriculture headwinds persist.
Revenue increased 6.2% to $1.0 billion in the first quarter of fiscal 2026, compared to $969.3 million in the prior year period. The growth was primarily driven by improved pricing and higher sales volumes in the Infrastructure segment, particularly in the North America Utility and North America Coatings product lines. These gains were partially offset by lower sales volumes in the Agriculture segment, reflecting ongoing headwinds in that market.
Net cash provided by operating activities was $103.5 million, compared to $65.1 million in the prior year quarter, reflecting higher earnings and working capital management. Capital expenditures totaled $34.6 million, resulting in free cash flow of $68.9 million. The company maintains a balanced capital allocation approach, prioritizing organic and inorganic growth investments while returning capital to shareholders, supported by its investment-grade credit rating.
The Agriculture segment experienced lower sales volumes, which partially offset the strong performance in Infrastructure. Management noted that the decline was driven by market conditions, though specific segment-level financials were not provided in the authoritative packet. The company continues to monitor the agricultural market environment.
Management's capital allocation priorities are expected to be supported by projected cash flow generation. The company remains committed to maintaining a capital structure that supports its investment-grade credit rating. Forward-looking statements are based on management's assumptions and perceptions of historical trends, current conditions, and anticipated future developments. Key risks include geopolitical uncertainties and potential further weakness in the Agriculture segment.