0000091142-26-000084
SEC filingMixed Q1 with revenue and earnings down on lower volumes in China and weather-related disruptions, partially offset by pricing actions.
Gross profit decreased 2.6% to $365.7 million, and gross margin contracted to 38.7% from 38.9% in the prior year. The margin decline was driven by lower sales volumes, which reduced fixed cost absorption.
Net cash provided by operating activities more than tripled to $129.4 million from $38.7 million in the prior year, reflecting working capital improvements. This strong cash generation supported capital allocation priorities despite the decline in net income.
In April 2026, the company announced a restructuring plan in its North America water treatment business to increase operational efficiency and improve profitability through footprint optimization and brand rationalization. For full year 2026, residential industry unit volumes are expected to be flat to slightly down due to softness in new construction and a slower-than-expected start to the year. North America water treatment product sales are anticipated to grow between five and six percent, driven by tariff-related pricing benefits and dealer network expansion, partially offset by softness in consumer channels.