Total Revenue (Business Segments)

+1.3% (940.1M in Q3 2025 vs 927.9M in Q3 2024)

Modest revenue growth was achieved by offsetting declines in segments like On-Road with improvements in Industrial Solutions (+5.3%) and strong growth in Aerospace and Defense (+27%), while Mobile Solutions remained essentially flat. This balanced performance contrasts with previous periods where weaker segments tended to weigh down growth " " vs. " "

Mobile Solutions

Essentially Flat (582.6M in Q3 2025 vs 585.2M in Q3 2024)

The segment showed stability in revenue as slight changes in demand and mix kept sales nearly unchanged. This continuation from the previous period reflects a balance between marginal declines and modest gains that maintained overall flat performance " " vs. "

Aerospace and Defense

+27% (51.5M in Q3 2025 vs 40.5M in Q3 2024)

Strong growth in Aerospace and Defense was driven by increased defense demand and program wins, which marks a substantial improvement compared to Q3 2024 and highlights a shift toward higher-margin or more robust end-market performance " " vs. " "

On-Road Segment

-25% (26.9M in Q3 2025 vs 35.7M in Q3 2024)

A significant decline resulted from strategic exits of nonstrategic products coupled with weak global truck production. This drop continues the trends from previous periods where market challenges in transportation adversely affected the segment " " vs. " "

Industrial Solutions

+5.3% (283.3M in Q3 2025 vs 269.1M in Q3 2024)

The revenue increase in Industrial Solutions reflects improved demand in industrial markets, likely benefiting from better market positioning and orders compared to the previous period, which partly offset declines in other segments " " vs. "

Geographic Breakdown

+192% (2,710.2M in Q3 2025 vs 927.9M in Q3 2024)*

Dramatic growth in geographic revenue—especially in U.S. and Canada (from 417.0M to 1,221.7M) and similar multi–fold gains in EMEA, APAC, and LATAM—suggests a major reclassification or acquisition effect, resulting in a substantially expanded geographic footprint relative to Q3 2024 " vs. " " *

Operating Income

-39% (87.4M in Q3 2025 vs 143.6M in Q3 2024)

The decline in Operating Income is largely due to increased operating expenses, margin compression, and potential restructuring or business development charges that pressured earnings compared to the robust performance in Q3 2024 " vs. "

Net Earnings

-49% (57.8M in Q3 2025 vs 113.5M in Q3 2024)

Net Earnings fell nearly 50% as reduced sales growth and higher costs (reflected in operating income) significantly impacted profitability compared to the previous period, leading to much lower bottom-line results " vs. "

Basic EPS

-50% (0.49 in Q3 2025 vs 0.94 in Q3 2024)

The 50% drop in Basic EPS reflects the sharp decline in net earnings along with underlying cost and margin challenges, translating into significantly lower returns per share compared to Q3 2024 " vs. "

Total Sales

FY 2025

Flat to up 4% "

Projected to increase by 1-3% "

no change

Mobile Solutions

FY 2025

Sales down 1% to up 3% "

Sales forecasted to be flat to up 2% "

no change

Off-Road Sales

FY 2025

Projected to decline mid-single digits "

Decline in the mid-single digits "

no change

On-Road Sales

FY 2025

Expected to decline low double digits "

Decline in the high teens "

lowered

Aftermarket Sales

FY 2025

Expected to grow low single digits "

Low single-digit increase "

no change

Industrial Solutions

FY 2025

Sales projected to increase 1% to 5% "

Sales forecasted to grow between 2-4% "

no change

IFS

FY 2025

Forecasted to grow low single digits "

Low single-digit growth "

no change

Aerospace and Defense

FY 2025

Expected to grow high single digits "

Sales projected to increase in the low teens "

raised

Life Sciences

FY 2025

Sales projected to grow high single digits "

High single-digit growth expected "

no change

Operating Margin

FY 2025

Full-year forecast increased to 15.6%-16% (midpoint 15.8%) "

Forecasted at record levels between 15.6%-16% "

no change

Adjusted EPS

FY 2025

Tightened to a range of $3.60 to $3.68 "

Raised to $3.64-$3.70 "

raised

Capital Expenditures

FY 2025

Forecasted between $85 million and $100 million "

Forecasted between $75 million and $90 million "

lowered

Cash Conversion

FY 2025

Expected to be in the range of 85%-95% "

Expected to be in the range of 80%-90% "

lowered

Share Repurchase

FY 2025

Expected to repurchase 2%-3% of outstanding shares "

Full-year expectation increased to 3.5%-4% "

raised

Dividend Increase

FY 2025

no prior guidance

Announced an 11% increase in quarterly cash dividend "

no prior guidance

Mobile Solutions Aftermarket Growth and Recurring Revenue

Q2, Q1, and Q4 2024 calls detailed robust growth — with aftermarket sales growing 4% (Q2) " " , 11% (Q1) " " , and 13% (Q4 2024) " " — driven by share gains in both OE and independent channels and a strong recurring revenue base.

Q3 2025 reported a slightly moderated aftermarket increase of 3% (sales at $460 million) with recurring revenue still making up 75–80% of sales. " "

Moderation in growth rates with a persistently strong recurring revenue foundation; sentiment remains positive despite a slight slowdown. " " " " "

Aerospace and Defense Performance and Supply Chain Challenges

Q2 and Q1 2025 emphasized strong growth (19% in Q2 " " and 27% in Q1 " ) with Q4 2024 reporting a 40% increase and stable supply chain conditions. " "

Q3 2025 achieved record sales of $52 million with long‐term project visibility, though supply chain disruptions and uncertainty over multi‐quarter project timelines remain a concern. " " "

Consistently strong performance continues, but supply chain challenges remain volatile; overall sentiment acknowledges robust sales while remaining cautious about supply chain unpredictability. " " " " "

Footprint Optimization and Margin Management

Q2, Q1, and Q4 2024 discussions highlighted restructuring actions with charges (e.g., $2.2 million in Q2 " and $6.4 million in Q4 2024 " " ), with operating margins gradually improving despite near-term gross margin pressures. " "

Q3 2025 emphasized significant footprint optimization initiatives (plant closures and relocations) that are pressuring near-term gross margins but have contributed to operating margin improvements and are expected to drive long‐term profitability. " " "

Ongoing cost optimization is evident; near-term margin pressures persist but with a clear focus on long-term efficiency gains, reflecting a cautious yet strategic outlook. " " " " "

Industrial Solutions Expansion with Connected and Digital Products

Q2, Q1, and Q4 2024 consistently reported strong growth in connected solutions with year‐to‐date connected machine growth around 30% and a push for smart, digital product offerings. " " "

Q3 2025 reaffirmed this momentum by announcing next-generation controllers and a confirmed 30% growth in connected services, reinforcing the emphasis on digital expansion. " " "

Steady, positive momentum with consistent growth and strategic investments in connectivity, reinforcing confidence in the digital expansion strategy. " " " " "

Technology Innovation and Market Wins

Q2, Q1, and Q4 2024 highlighted several wins and innovation initiatives—from China Hydraulics wins " " and new bioprocessing product launches " to the strategic NAPA partnership " " " —demonstrating a strong technology-led strategy.

Q3 2025 reiterated the focus on advanced connectivity technologies and reported wins in key regions such as India and China in stationary hydraulics, bolstering its innovation credentials. " " " "

Consistent emphasis on innovation with continuous market wins; the sentiment remains upbeat as technology remains a key growth driver. " " " " " " "

Life Sciences Segment Delays and Restructuring

Q2, Q1, and Q4 2024 documented persistent delays in bioprocessing and capex projects, significant restructuring actions, and impairments – with expectations of flat or breakeven profitability and adjusted long-term targets. " " " " " " " "

Q3 2025 reported further delays due to weak capital spending, impairment of intangible assets, and elongated revenue cycles, while restructuring (including footprint optimization) continues to be a priority. " " "

Persistent challenges remain in Life Sciences with ongoing restructuring; while delays continue, strategic cost optimization efforts indicate cautious long-term potential. " " " " " "

Foreign Exchange Headwinds and Global Trade Uncertainty

Q2 2025 mentioned FX headwinds (about 2%) and raised global trade uncertainties affecting guidance, while Q1 and Q4 2024 did not discuss this topic. " "

Q3 2025 noted FX headwinds that partly offset revenue growth and described global tariff impacts as immaterial, with mitigation strategies in place. " " " "

Emerging focus in recent periods; while not discussed in earlier Q1/Q4 calls, FX and trade uncertainties are now moderately influencing performance, with management in control of their impact. " " " " " "

Organizational Redesign and Strategic Expansion Initiatives

Q1, Q2, and Q4 2024 emphasized completed redesigns, ongoing restructuring, and strategic investments (including acquisitions like Medica and strong M&A pipelines) to drive long-term growth. " " " " " "

Q3 2025 continued the narrative with active footprint optimization, significant capital expenditure plans, further connectivity investments, and the appointment of a new COO to bolster execution. " " " "

Consistent strategic focus; the initiatives are evolving with fresh leadership and additional investments, indicating an optimistic outlook for long-term growth despite near-term challenges. " " " " "

Channel Dynamics and Non-Strategic Product Line Exits

Q2 2025 and Q4 2024 discussed channel dynamics (with independent channel strength and on-road product exits driven by non-strategic fits). " " " " "

Q3 2025 saw no mention of these topics, suggesting a de-escalation in dialogue on channel segmentation and exits.

Diminished focus on channel dynamics and non‐strategic exits in Q3 indicates these issues may have been resolved or deprioritized, reflecting a shift in management's narrative. " " " " "

Free Cash Flow Conversion and Working Capital Challenges

Q1 2025 reported low free cash flow conversion (47%) due to working capital investments, while Q4 2024 demonstrated strong conversion (over 93–97%), with Q2 2025 forecasting 85–95% based on improved inventory management. " " " " " "

Q3 2025 highlighted expectations of 80–90% cash conversion, with continued emphasis on managing higher-than-planned inventory to counter supply chain issues. " "

Improving trend in free cash flow conversion aided by effective working capital management; recovery from earlier dips is evident and sentiment is increasingly favorable. " " " " " " " "