Revenue Growth
Total revenue increased 5% year-over-year to $138.9 million; on a constant currency basis organic revenue grew 1%, with $5.1 million of favorable foreign currency translation.
Strong Order Momentum and Book-to-Bill
Orders were $158.1 million, up 15% year-over-year and 9% sequentially, producing a book-to-bill ratio of 1.14x and backlog of $251 million (majority expected to convert in 3–5 months).
Gross Margin Expansion
Gross profit was $45.4 million and gross margin expanded 50 basis points year-over-year to 32.7%, driven by higher sales volume, improved product mix and operational improvements from the STAN program.
Improved Profitability and EPS
Net income rose 51% to $5.4 million, or $0.32 per diluted share (from $0.21), and adjusted net income was $8.4 million, $0.50 per diluted share (up from $0.46).
Deleveraging and Liquidity Strength
Cash and cash equivalents of $41.2 million, total debt down $3.1 million in the quarter to $177.3 million, net debt $136.1 million, net-leverage improved to 1.78x (TTM adjusted EBITDA) and $158 million of unused revolver capacity.
Segment Wins: Industrial and Vehicle
Industrial revenue grew 8% YoY (driven by industrial automation and data center power quality) and Vehicle revenue increased 7% YoY (commercial automotive strength), reflecting strategic mix shift toward higher-value applications.
Strategic Investments and Product Development
Company is investing in R&D, technology acquisitions and productization (moving from one-time projects to scalable market-facing products), accelerating new motors and controls for defense and expanding data center-related capabilities.
Capital Allocation and Shareholder Return
Management increased the dividend, signaling confidence in the business and capital allocation discipline; full-year CapEx expected at $12–$15 million to support capacity and productivity.