0001735707-26-000019
SEC filingStrong start to fiscal 2026 with double-digit revenue growth and a 53% surge in net income, driven by broad-based volume gains across all verticals and favorable FX.
Gross profit increased to $196 million from $179 million, a 9.5% rise, while gross margin was 19.9%. The margin was impacted by productivity declines and pricing pressure, which offset the benefits from higher volumes and favorable foreign exchange. Net income surged 53.2% to $95 million, or $0.49 per diluted share, compared to $62 million, or $0.30 per diluted share, in the prior year. The increase was driven by higher gross profit, lower interest expense, and non-operating income.
Management expressed confidence in the company's liquidity position, citing expected cash flows, term loan borrowings, the 2032 Senior Notes, and the New Revolving Facility as adequate to support operations. The company continues to invest in zero-emission technologies and has secured awards in both turbo and zero-emission offerings, including turbo technology for data centers. However, management noted that broader macroeconomic and geopolitical conditions are being actively monitored for potential impacts on the industry and operations. Key risks include productivity headwinds, pricing pressure, and foreign exchange volatility.