Q3 net income +160% on $30M tariff refund, tax credits; material weakness persists

Filed July 31, 2026 · Period ending June 27, 2026 · Compared to 10-Q Jul 25, 2025 · ~2 min read

Key Changes

• high

  Net income surged 160% to $152M ($4.74/share) vs $58M prior year, but operating income rose only 58% to $176M—the $94M net-income gain came from below-the-line items (+$29M swing: income tax +$33M, non-operating -$3M), not operations.

  MD&A: Earnings Quality verify on EDGAR →
• high

  Material weakness in Commercial Aircraft aftermarket revenue controls remains unremediated; disclosure controls now ineffective (reversed from effective prior quarter). Management implementing targeted controls and IT enhancements but has not concluded remediation.

  Controls & Procedures verify on EDGAR →
• high

  Company recognized $30M recovery of IEEPA tariffs (Supreme Court invalidated the tariffs); $10M received in cash, $20M recorded as receivable. Recovery reduced cost of sales and drove 360bp gross margin expansion to 31.1%.

  MD&A: IEEPA Tariff Refund verify on EDGAR →