Total Sales Growth (%)

FY 2026

1–3% "

1% to 5% " " " "

raised

Mobile Solutions Sales Growth (%)

FY 2026

flat to up 2% "

Flat to up 4% " " " "

raised

On-road Sales Growth (%)

FY 2026

Decline in the high teens "

High single digits " " " "

raised

Off-road Sales Growth (%)

FY 2026

Decline in the mid-single digits "

Mid-single digits " " " "

raised

Aftermarket Sales Growth (%)

FY 2026

Low single-digit increase "

Low single digits " " " "

no change

Industrial Solutions Sales Growth (%)

FY 2026

2–4% "

2% to 6% " " " "

raised

IFS (Industrial Filtration Solutions) Sales

FY 2026

Low single-digit growth "

Expected to improve across all businesses " " " "

raised

Aerospace and Defense Sales Growth (%)

FY 2026

Increase in the low teens "

Flat " " " "

lowered

Life Sciences Sales Growth (%)

FY 2026

High single-digit growth "

15% " " " "

raised

Operating Margin (%)

FY 2026

15.6–16% "

16.1% to 16.7% " " " "

raised

EPS ($)

FY 2026

$3.64–$3.70 "

$3.92 to $4.08 " " " "

raised

Cash Conversion (%)

FY 2026

80–90% "

85% to 95% " " " "

raised

Capital Expenditures (CapEx) ($)

FY 2026

$75 million to $90 million "

$65 million to $85 million " " " "

lowered

Incremental Margin (%)

FY 2026

no prior guidance

Approximately 40% " " " "

no prior guidance

Pricing Contribution to Sales Growth (%)

FY 2026

no prior guidance

Approximately 1% " " " "

no prior guidance

Currency Translation and Tariffs Impact

FY 2026

no prior guidance

Negligible " " " "

no prior guidance

Agricultural Demand Dynamics

Q3, Q2, and Q1 discussions highlighted significant weakness in agricultural markets with declining off‐road and on‐road sales and persistent uncertainty " " " " " " "

Q4 commentary noted that agricultural orders had bottomed out with a slight low single‐digit uptick, indicating stabilization rather than a robust rebound "

Improvement: Shifts from marked weakness to early signs of stabilization, though the gains remain modest.

Connected Solutions Growth

Across Q1 through Q3, connected machine growth and the resulting recurring replacement parts revenue were consistently mentioned, emphasizing roughly 30% growth and improved aftermarket performance " " "

Q4 continued to highlight robust connected solutions growth with expectations to grow connected machines by over 30% and recurring parts driving nearly 50% of sales " " "

Consistent Expansion: Ongoing emphasis on connected growth with slightly enhanced focus on revenue-driving relationships in Q4.

Mobile Solutions Aftermarket

Q1 through Q3 discussions emphasized steady revenue and market share gains—driven by share gains, balanced growth in OE and independent channels, and consistent aftermarket performance " " " " " " "

Q4 reported record results with increased total and aftermarket sales, supported by strategic partnerships and strong market share gains, especially via the independent channel " "

Steady Strength: Persistent positive performance with a slight shift toward record sales and enhanced share gains in Q4.

Aerospace & Defense Outlook

Q1 through Q3 highlighted a mix of strong long‐term pipeline visibility with supply chain challenges causing lumpiness or flat guidance, along with occasional strong quarterly performance " " " " " "

Q4 focused primarily on supply chain constraints (supplier‐driven) with less emphasis on the long‐term pipeline "

Mixed Sentiment: While earlier periods balanced pipeline optimism with supply chain issues, Q4 leans more toward caution due to persistent supply constraints.

Cost Management and Margin Optimization

Q1 through Q3 consistently discussed disciplined expense control, cost and footprint optimization—including plant rationalizations and structural shifts—that pressured near-term margins but were expected to deliver long-term benefits " " " " " " " " "

Q4 reported improved operating expense ratios and a record operating margin of 16.4%, citing continued structural cost changes and footprint optimization initiatives " " " "

Steady Improvement: Ongoing cost optimization efforts continue to yield improvements, with Q4 showing further margin gains and efficient expense management.

Delayed Bioprocessing Commercialization

Q1 through Q3 detailed persistent delays and elongation in bioprocessing project commercialization—with challenges such as impairment charges, delayed capital projects, and deferred projects affecting near-term growth " " " " " "

Q4 reiterated that commercialization is delayed with significant revenue contributions now pushed to fiscal 2027, reinforcing near-term headwinds " "

Continued Headwind: Across all periods the segment struggles with delays, and Q4 confirms that near-term growth remains muted despite ongoing development efforts.

China Market Developments

Q1 and Q2 mentioned technology wins—such as structural shifts toward sophisticated equipment and strong aftermarket growth—while maintaining an uncertain outlook due to macroeconomic weakness; Q3 had no specific discussion " " " " "

Q4 noted incoming orders and positive economic progression alongside technology wins, yet maintained a cautious overall outlook "

Balanced Optimism with Caution: The region continues to deliver technology-led wins and order improvements, but uncertainty over sustained growth persists.

FX Headwinds and Global Economic/Tariff Uncertainty

Q1 through Q3 presented a mixed picture—with FX sometimes acting as a tailwind in Q1, modest headwinds in Q2 and Q3, and tariffs having minimal impact due to a strong regional footprint and mitigating strategies " " " " " " " "

Q4 highlighted that while currency impacts remain negligible, tariff-related inflation affected LIFO valuation, yet overall the company remains well positioned " " " "

Managed Uncertainty: Despite mixed FX results over prior periods, Q4 reinforces that effective regional strategies and pricing mitigate tariff and global economic uncertainties.

Life Sciences Segment Challenges

Q1 to Q3 uniformly stressed significant headwinds in the bioprocessing space—ranging from project delays extending by one to two years, impairment charges, and subdued capital spending—to reshape the segment’s strategy " " " " " "

Q4 reaffirmed challenges in bioprocessing with delayed commercialization, minimal near-term revenue bounce, and ongoing headwinds " "

Persistent Issues: The Life Sciences segment continues to face structural and market challenges with no near-term resolution, maintaining the difficulties noted in previous periods.

Organizational Redesign and Structural Shifts

Q1 through Q3 described comprehensive organizational redesign and restructuring initiatives—including plant rationalization, cost reduction actions, and strategic prioritization—to drive long-term profitability " " " " " " " " "

Q4 laid out further restructuring efforts with significant pretax charges for footprint optimization and cost reduction, aiming for more efficient operations by 2026 " " " "

Ongoing Transformation: Continuous organizational redesign with progressive structural shifts, building on past initiatives to create a more agile and cost-effective company structure.

Independent Aftermarket Channel Demand Pullback

Q1 emphasized strong market share gains and steady demand with no pullback, whereas Q2 reported a cautious pullback in demand in the independent channel; Q3, however, indicated stable, pull-through demand across channels " " " "

Q4 described the independent channel as experiencing a more muted demand pullback, with expectations for growth driven by ongoing share gains, reaching $1 billion in sales " "

Recovery Signals: After a noted pullback in Q2, demand in the independent aftermarket appears stable in Q3 and Q4, suggesting a return to growth with continued share gains.

Free Cash Flow Conversion and Investment Constraints

Q1 showed lower FCF conversion (47%) due to upfront working capital investments, while Q2 and Q3 indicated gradual improvements toward historical averages; investment constraints were consistently managed with controlled CapEx targeting growth " " "

Q4 reported a remarkable 123% cash conversion for fiscal 2025 and a cautious capex approach for fiscal 2026, reflecting continued prioritization of high-return investments " " "

Improvement and Caution: Free cash flow conversion has notably improved from Q1 through Q4, while investment remains disciplined amid market uncertainties, maintaining a focus on high-priority projects.