Q1 revenue up 10.2% but operating margin compresses 120bp on cost pressures; cash flow down 19%

Filed April 23, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 24, 2025 · ~1 min read

Key Changes

• high

  Operating margin fell 120 basis points to 16.1% (vs 40bp decline prior year), driven by higher insurance/claims costs (30bp), fleet expenses (20bp), and employee costs (20bp). Pricing no longer fully offsets inflation.

  MD&A: Operating Margin verify on EDGAR →
• high

  Operating cash flow declined 19.4% to $118.4M, reversing prior-year 15.3% growth. Company attributes $39.5M to tax-payment timing from tax credit planning and $8.8M to semi-annual interest payment shift, expecting moderation through the year.

  MD&A: Cash Flow verify on EDGAR →
• high

  Organic revenue growth decelerated to 6.6% from 7.4% prior year, attributed to less favorable weather early in quarter. Management reaffirmed 7-8% organic growth guidance for full year, citing March acceleration to over 8% organic.

  MD&A: Revenue Growth verify on EDGAR →