Overview
- Adjusted EPS rose to $2.32 on net sales of $2.71 billion, topping estimates and marking a record third quarter for sales and earnings.
- Adjusted operating income increased to $271 million with a 10% adjusted operating margin, and operating cash flow improved to $258 million.
- Management said about 75% of U.S. tariff costs were recovered in Q3 and expects to recover most of the remainder in Q4.
- Full-year guidance was reaffirmed for roughly 3% organic sales growth, a 10–10.5% adjusted operating margin, and about $1.2 billion in operating cash flow.
- The company accelerated China initiatives with a second R&D center, a CATARC collaboration, and an HSAE joint venture, highlighted strong growth contributions from India, repurchased 0.84 million shares, raised the dividend by 21%, and kept leverage around 1.3x.