This quarter's results exceeded expectations, primarily driven by accelerated demand in aerospace and defense markets, strong operational execution, and another record profit.

Key data: total operating revenue $186.5 million, up 35% year-over-year; SAO segment operating margin reached a record 35.6%, up 6.5 percentage points year-over-year; aerospace and defense sales grew 17% year-over-year.

Business progress: Orders for aerospace structural materials increased significantly, indicating supply chain acceleration supporting OEM production ramp-ups; SAO operating margin expanded for the 17th consecutive quarter, driven by productivity improvements, product mix optimization, and pricing. The energy market grew 44% year-over-year driven by industrial gas turbine demand; the medical market order recovery signals a rebound. Pricing continues to be a tailwind, with multiple long-term agreements under negotiation.

Outlook: Management raised its full-year adjusted free cash flow guidance to at least $350 million. SAO fourth-quarter operating revenue guidance range $224 million to $228 million, FY2026 full-year operating revenue growth of at least 33% year-over-year. Implies FY2027 targets are outdated and will be updated next quarter.

Highlight signals: Management is highly confident, emphasizing "just getting started" and "the best is yet to come." Accelerating demand combined with persistent supply-demand imbalance is a positive signal; no significant risks, but attention should be paid to the pace of medical market recovery and the impact of supply chain urgency on operations.