Q1 revenue up 17% to $566.8M on acquisitions; tariff regime shifts as Court voids 2025 levies

Filed May 1, 2026 · Period ending March 28, 2026 · Compared to 10-Q May 2, 2025 · ~2 min read

Key Changes

• high

  Acquired Crawford United for $299.4M in February, immediately sold non-core industrial/transportation units for $60M at a $5.7M loss, retaining only the core HVAC air handling business. Reflects targeted M&A strategy focused on data center cooling and air handling.

  MD&A: Crawford acquisition verify on EDGAR →
• high

  Supreme Court invalidated 2025 IEEPA tariffs in February; government imposed new Section 232 tariffs in April on aluminum/steel/copper imports, calculated on full customs value rather than metal content. Company previously mitigated tariff costs through pricing but may be unable to do so under the new regime. Refund entitlement from invalidated tariffs remains uncertain.

  Risk Factors: Tariffs verify on EDGAR →
• high

  HVAC backlog surged 67% to $755.3M from $451.3M year-ago, with $130.3M from acquisitions and the remainder from organic demand, particularly data center cooling products. Segment margin compressed to 22.5% from 22.9% on start-up costs and inefficiencies from capacity expansions.

  MD&A: HVAC backlog verify on EDGAR →