Net sales of $1.10 billion was a miss versus the API Ninjas estimate of $1,118.8 million, 1.7% short; diluted EPS of $6.24 was a beat versus $5.70, 9.5% ahead.
Operating income rose 22.2% to $172.8 million, 15.7% of net sales against 13.5%; net earnings attributable of $121.1 million became 25.3% EPS growth on diluted shares down to 19,391 thousand from 19,876 thousand.
Guidance moved on earnings only: adjusted diluted EPS raised to $22.75 to $23.75 from $22.25 to $23.50, with full-year net sales held at $4.3 to $4.45 billion.
Total backlog reached $2,007.8 million from $1,653.7 million at December 27, 2025, Infrastructure $1,808.2 million of it.
The one thing that matters: revenue came in light while EPS cleared the estimate, and the gap explains itself. Agriculture operating income nearly doubled to $40.1 million on 6.4% lower sales, mostly lower Brazil credit losses, while Infrastructure grew 9.1% and still lost margin.
Key metrics
Metric
Reported
Prior year
Change
Net sales
$1.10 billion
$1.05 billion
+5.5%
Operating income
$172.8 million
$141.5 million
+22.2%
Diluted earnings per share
$6.24
$4.98
+25.3%
Infrastructure segment sales
$882.1 million
$808.3 million
9.1%
Agriculture segment sales
$226.0 million
$241.3 million
-6.4%
Operating cash flow
$100.5 million
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Guidance changes
Item
New guidance
Prior guidance
FY2026 Net Sales
$4.3 to $4.45 billion
$4.3 to $4.45 billion
FY2026 Infrastructure Net Sales
$3.4 to $3.5 billion
$3.4 to $3.5 billion
FY2026 Agriculture Net Sales
$0.9 to $0.95 billion
$0.9 to $0.95 billion
FY2026 Adjusted Diluted Earnings per Share
$22.75 to $23.75
$22.25 to $23.50
FY2026 Capital Expenditures
$170 to $200 million
$170 to $200 million
Quality of earnings
The earnings growth is margin and share count, not demand. Sales grew 5.5% to $1.10 billion, below the $1,118.8 million estimate, while operating income rose 22.2% to $172.8 million; net earnings attributable grew 22.2% to $121.1 million and EPS grew 25.3%, the extra three points from diluted shares falling to 19,391 thousand from 19,876 thousand after $82.3 million of repurchases.
The margin expansion sits in the segment that shrank. Agriculture operating income rose to $40.1 million, 17.9% of sales, from $23.2 million and 9.7%, on sales down 6.4% to $226.0 million, which the release attributes to lower Brazil credit losses and higher North America volumes. Infrastructure grew sales 9.1% to $882.1 million and still saw margin slip to 17.6% from 17.8%.
Cash conversion trailed earnings. Operating cash flow was $100.5 million against $121.1 million of net earnings attributable, and receivables of $651.7 million and inventories of $644.8 million are up from $590.1 million and $566.4 million at December 27, 2025.
Gotchas & watch items
North America Telecommunications sales fell to $54.9 million from $82.9 million on lower carrier spend, the one Infrastructure line going backwards while North America Utility grew 23.0% to $469.6 million.
Steel and zinc costs plus the Utility capacity ramp absorbed the pricing gains, holding Infrastructure operating margin to 17.6% against 17.8% on 9.1% sales growth.
The unchanged $4.3 to $4.45 billion sales range implies a fourth quarter of roughly $1.05 to $1.20 billion against the $1.10 billion just delivered, so the $0.50 lift to the bottom of the EPS range is a margin and share-count call.
Agriculture international sales fell 25.3% on lower Middle East and Brazil volumes, leaving growth resting on North America, up 15.8% partly on storm replacement activity.