Strong EPS and Guidance Raise
Adjusted EPS of $1.65 in Q1, up 15% year-over-year; company raised full-year adjusted EPS guidance by $0.10 to a range of $6.65–$6.85, reflecting confidence in execution and line-of-sight to results.
Robust Revenue and Core Growth
Total sales increased 25% in the quarter with 4% core organic growth; sales from recent acquisitions contributed ~18 percentage points of growth in Q1.
Meaningful Operating Profit and Margin Progress
Adjusted operating profit increased 29% year-over-year; adjusted operating margins improved across segments (company-level margin headroom implied to be ~+50 basis points year-over-year when considering segment results).
Acquisitions Outperforming Expectations
Druck, Panametrics, Reuter-Stokes and OPTECH delivered stronger-than-expected results and faster integration; management now expects acquisition-driven EPS accretion of ~15 cents for the full year (at least double prior expectation of ~8 cents).
Strong Aerospace & Advanced Technologies (AAT) Performance
AAT sales of $318 million, up 28% year-over-year with core sales up ~9.4%; core backlog nearly $1.2 billion, up 14% year-over-year (24% including Druck) and record backlog levels provide multi-year visibility.
Defense and Military Aftermarket Strength
Military aftermarket increased 28% in Q1 and strong orders noted (including PAC-3 and LTAMDS activity) supporting multi-year demand tailwinds in missile defense and radar applications.
Process Flow Technologies (PFT) Resilience
PFT sales were $378 million, up 23% year-over-year (acquisitions added ~19 points, FX ~4 points); core orders up 5% year-over-year and core backlog improved sequentially ~7%—adjusted operating margin ~22.1%, ~50 bps above prior year.
Healthy Balance Sheet and M&A Capacity
Pro forma net leverage at ~1.4x at quarter end, leaving substantial capacity for disciplined M&A; management reports an active pipeline across both segments with a preference for ~$500M targets but evaluating a range of sizes.