Net sales of $131.1 million beat the $118.1 million estimate by 11%, and adjusted EPS of $0.07 beat the $0.02 estimate.
Full-year 2026 guidance was raised again: net sales of $480 to $500 million, adjusted EBITDA of $64 to $68 million and new business wins of $110 to $130 million.
Power Solutions carried the quarter: segment sales up 40.6% to $63.2 million and adjusted operating income up 53.1% to $12.4 million, while Mobile Solutions' GAAP operating loss widened to $6.3 million from $2.9 million.
The balance sheet reset is done: the Series D preferred was fully redeemed on October 7 after $143 million of capital transactions, at the cost of shares used in EPS rising to 78.1 million from 49.6 million.
The one thing that matters: the raised guide implies Q4 net sales of $102 to $122 million against $131.1 million in Q3, so the full-year raise is a step down from the current run rate, not an acceleration.
Key metrics
Metric
Reported
Prior year
Change
Net sales
$131.1 million
$103.9 million
+26.2%
Adjusted EBITDA
$18.5 million
$12.4 million
+49.7%
Adjusted EBITDA margin
14.1%
11.9%
+220 basis points
Power Solutions net sales
$63.2 million
$44.9 million
+40.6%
Mobile Solutions loss from operations
$6.3 million
$2.9 million
—
GAAP net loss
$4.6 million
$6.7 million
improving 31.3%
Guidance changes
Item
New guidance
Prior guidance
2026 net sales
$480 to $500 million
—
2026 adjusted EBITDA
$64 and $68 million
—
2026 new business wins
$110 to $130 million
—
Quality of earnings
Adjusted profit leans on recurring-looking add-backs. GAAP net loss of $4.6 million becomes $5.3 million of adjusted net income after adding back $3.9 million of facility costs, $2.9 million of personnel costs and $1.6 million of professional fees, mostly tied to new-program start-ups.
The GAAP improvement is partly non-operating. Net loss narrowed by $2.1 million, but a $2.8 million Brazil tax and insurance settlement gain and $3.2 million of joint venture income did the work while loss from operations widened to $3.3 million; adjusted figures exclude the Brazil gain.
Sales growth is partly price pass-through. The 26.2% net sales increase was led by higher selling prices reflecting raw material costs passed to customers, plus FX, and cost of sales grew faster at 30.6%.
Gotchas & watch items
The new markets are inflecting faster than the headline shows: Defense and Electronics sales reached $22.4 million from $8.6 million and Data Center and Electric Grid $25.4 million from $17.7 million.
Year-to-date cash flow is flattered by a one-off: nine-month operating cash flow of $16.9 million includes a $12.7 million CARES Act tax refund received in May.
Debt remains expensive: the term loans bore 13.75% interest at September 30, with $135.3 million of principal outstanding, and management called the ABL and term loan the last balance sheet item to fix.
Dilution continues after quarter end: the October private placement brought shares outstanding to 93,744,244, plus pre-funded warrants for 4,824,395 more.