Net sales rose to $200.5 million, a 5.2% increase from the same period last year, driven by stronger demand in the industrial, electronics and communications segments. Foreign‑currency gains of $7.9 million helped offset the impact of adverse weather and multiple supplier disruptions that limited production at several U.S. plants.
Net income turned positive at $4.5 million, compared with a $1.4 million loss in Q1 2025. Adjusted earnings per diluted share reached $0.75, up 178% from $0.27 a year earlier and beating the consensus estimate of $0.68 by $0.07. Gross margin expanded to 32.2% from 29.9% in Q1 2025, while adjusted EBITDA grew to $32.0 million, with a margin of 16.0–17.1% versus 10.2% in Q1 2025. The margin gains were driven by disciplined cost control, a favorable product mix and pricing power in high‑margin segments.
The company’s industrial and electronics divisions were the primary contributors to revenue growth, while automotive sales declined. Management highlighted that the combination of higher sales volume, an improving product mix and ongoing cost‑control initiatives underpinned the profitability turnaround.
Management guided for Q2 2026 with net sales of $210 million to $220 million, an adjusted EBITDA margin of 32.5% to 33.5%, adjusted EPS of $0.90 to $1.10 and adjusted EBITDA of $35 million to $41 million. The guidance reflects confidence in sustained demand and the continued execution of the company’s cost‑transformation program.
"Our consistent execution continued in the first quarter with results that met or exceeded the mid‑point of guidance across all financial metrics. We also achieved meaningful improvement in profitability with adjusted earnings per share more than doubling and adjusted EBITDA margin expanding by 580 basis points year over year," said Ali El‑Haj, Interim President and CEO. "The first quarter results together with our stronger second quarter guidance demonstrate the progress of our commercial and profitability improvement initiatives, which continue to gain momentum. With key products in development that address needs in growing markets, and a strong balance sheet that provides strategic flexibility, we are well positioned to capitalize on compelling market opportunities ahead."
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