Revenue +8.5%, operating income +398% on ILC Dover recovery and tariff refund

Filed July 31, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 31, 2025 · ~1 min read

Key Changes

• high

  Operating income surged to $380.3M from $76.4M (+398% YoY), driven by absence of prior-year impairments ($265.8M goodwill/intangible, $120.9M equity investment) and a $25M ILC Dover insurance recovery. An additional $162.5M settlement was disclosed post-quarter.

  MD&A: Operating Results / Notes: Contingencies verify on EDGAR →
• high

  Collected $25M in Q2 under ILC Dover acquisition insurance claim; settled for an additional $162.5M early in Q3 (to be recorded Q3). Total recovery to date: $187.5M, with potential for further collections.

  Notes: Contingencies / Subsequent Events verify on EDGAR →
• high

  Gross margin compressed 160 bp to 42.1% (Q2) and 42.5% (H1) from unfavorable product mix and cost leverage on lower organic volumes, partially offset by cost measures. Adjusted EBITDA margin fell 160 bp (Q2) and 150 bp (H1).

  MD&A: Gross Profit / Adjusted EBITDA verify on EDGAR →