Question · Q1 2026
Brett Lindsey with Mizuho asked if the gradual recovery in construction was predominantly driven by MRO or if OEM load-in was also contributing. He also questioned if the company's adjusted operating margin reaching the 2029 target three years early meant this year was a new bouncing-off point, or if mix or discretionary costs might revert.
Answer
Chairman and CEO Jennifer Parmentier confirmed that the construction recovery is seeing contributions from both MRO and OEMs. Regarding the operating margin, she expressed pleasure with the Q1 accomplishment and increased organic growth forecast, but noted that some markets still need to recover. She emphasized that the FY2029 targets encompass five goals, not just operating margin, and the company is focused on achieving all of them.
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