0001579241-26-000015
SEC filingRevenue grew 9.7% on pricing and acquisitions, but operating income slipped on unfavorable mix and higher restructuring costs, compressing margins.
Revenue increased 9.7% to $1.0B in Q1 2026, compared to $941.9M in Q1 2025. The growth was primarily attributable to pricing actions and contributions from acquisitions, partially offset by unfavorable volume/product mix. Gross profit rose 7.6% to $454.5M, with gross margin of 44.0%, reflecting the impact of pricing and productivity improvements partially offset by inflation and mix headwinds.
Net income decreased 6.8% to $138.1M from $148.2M, and diluted EPS fell 7.0% to $1.59 from $1.71. The decline was partly attributable to a higher effective income tax rate compared to the prior year, which increased due to discrete items in the prior year, including amounts recognized for uncertain tax positions, as well as the mix of income earned in higher tax rate jurisdictions.
Net cash provided by operating activities was $101.3M in Q1 2026, compared to $104.5M in Q1 2025. The decrease was primarily due to lower net income and changes in working capital. The company believes its existing borrowing capacity under the Revolving Facility and access to credit and capital markets are sufficient to achieve its longer-term strategic plans.