0000899751-26-000041
SEC filingRevenue grew 2.9% to $505.1M, but operating income swung to a loss of $13.8M due to restructuring charges, resulting in a net loss of $24.2M.
Revenue for the first quarter of 2026 increased 2.9% to $505.1 million compared to $490.7 million in the prior year period. The increase was driven by higher sales volumes in the Americas and the Europe Wheel business, reflecting increased demand from construction OEM customers. These increases were partially offset by lower sales volumes resulting from reduced customer demand in the consumer and agricultural segments due to challenging market conditions. Additionally, favorable pricing reflecting higher input costs and a positive foreign currency translation impact contributed to the revenue growth.
Net cash used in operating activities was $46.5 million in the first quarter of 2026, compared to $38.6 million in the prior year period. The change was primarily driven by an increase in days inventory outstanding due to higher material costs and inventory levels to mitigate certain supply chain constraints. Capital expenditures were $13.3 million, down from $15.0 million in the prior year. Free cash flow was negative $59.8 million. The cash conversion cycle worsened to 111 days from 99 days a year ago, driven by higher inventory days.
The company recorded restructuring and impairment charges related to the closure of the Jackson plant, which significantly impacted operating income. These charges reflect the company's strategic repositioning to optimize its manufacturing footprint. The company expects that underlying market trends will provide future support for mid to long-term demand for its products. Refer to “Liquidity and Capital Resources” in Part I, Item 2 of this Form 10-Q for information on debt restrictions associated with payment of dividends.