0002011641-26-000030
SEC filingQ1 revenue declined 3.9% to $7.5B as lower volumes offset pricing and acquisition contributions, with profitability resilient on gross margin stability at 31.0% and strong operating cash flow of $772M despite working capital investment.
Operating income fell 8.0% to $612 million from $665 million, yielding an operating margin of 8.2%. The decrease in operating income as a percentage of sales primarily reflects improved productivity and operating leverage in the Company's cost base, helping to mitigate the revenue decline's impact. Net income decreased 11.9% to $414 million, with diluted EPS at $2.13 compared to $2.34, as profitability held up better than topline results due to these operational efficiencies.
Net cash provided by operating activities strengthened significantly to $772 million from $345 million in the prior year quarter. This robust cash generation occurred despite an increased investment in working capital compared with the prior year—mainly in receivables and inventory—partially offset by higher net income after adjusting for non-cash items and lower cash tax payments due to timing. The improvement underscores the quality of earnings and the Company's ability to convert profitability into cash, even under working capital strain.