Consolidated Revenue Increase
Net sales for Q1 FY2026 were $409.1M, up approximately 2.3% year-over-year versus $400.0M, driven primarily by foreign exchange translation and tariff pass-through.
Full-Year Guidance: Top-Line and Margin Improvement
Management provided FY2026 guidance of $1.84B to $1.87B in net sales (implying consolidated revenue growth of ~12%–14% vs FY2025) and adjusted EBITDA of $240M to $245M, with an expected adjusted EBITDA margin expansion of ~500–550 basis points vs FY2025.
Monterrey Plant Stabilized
Operational remediation at the Monterrey, Mexico hardware facility is complete and management reports the plant is now stable; incremental Monterrey-related costs in Q1 were approximately $3.0M but are expected not to recur.
Segment Revenue Strength in Custom Solutions
Custom Solutions revenue grew to $89.1M in Q1, up 4.8% year-over-year (volumes +2.4%), driven by gains in cabinet/wood components market share as customers insource and re-shore production.
Strong Liquidity and Capital Allocation Focus
Liquidity at 01/31/2026 was $331.6M (including $62.3M cash on hand plus revolver availability). Management reiterated disciplined debt reduction, targeting a year-end net leverage closer to ~2.0x from 2.8x currently.
Product and Commercial Initiatives
Company advancing new product development (including Schlagel relaunch), commercialization plans, global pricing strategies, ERP rationalization and AI-led process improvements to drive future revenue growth, margin expansion and ROIC.
Positive End-Market Structural Outlook
Management emphasized constructive long-term fundamentals for residential housing, stabilizing inflation, and expected Fed rate cuts, and noted double-digit growth momentum in IG spacer products driven by energy/code trends.