0000041719-26-000042
SEC filingRevenue declined on lower pricing and softer volumes, but profitability improved sharply on cost synergies and lower integration expenses, while free cash flow surged to $60 million.
Revenue for the second quarter of fiscal 2026 decreased 3.4% to $796 million from $824 million in the prior year quarter. The decline was primarily due to lower pricing and softer volumes, partially offset by favorable foreign currency changes. Despite the top-line headwinds, the company continued to execute on its synergy initiatives, which contributed to improved profitability.
Net cash provided by operating activities improved significantly to $89 million from $7 million in the prior year quarter, driven by higher earnings and working capital management. Capital expenditures decreased to $29 million from $39 million, resulting in free cash flow of $60 million, a substantial improvement from negative free cash flow in the prior year. The company defines free cash flow as net cash provided by operating activities less capital expenditures.
Despite global macro-economic challenges and uncertainties attributed to inflation, changing tariff policies and general market softness, management continues to believe underlying long-term demand fundamentals in all segments will remain strong as the company focuses on providing advantaged products in targeted markets. The company remains subject to risks including raw material availability, cost inflation, supply chain disruptions, and the effectiveness of internal controls, which have not yet been fully remediated following the prior year merger.