Earnings exceeded expectations, primarily driven by a 41.2% surge in Aerospace & Defense (A&D) revenue and stable industrial growth.

Net sales increased 18.3% year-over-year to $518 million, with A&D revenue jumping 41.2%. Adjusted diluted EPS rose 27.9% to $3.62.

A&D showed strong performance: missile revenue surpassed $45 million, space revenue exceeded $70 million, and the plan to double submarine production capacity is advancing. Industrial OEM grew 7.8%, distribution grew 4.5%, and semiconductor and other markets are improving.

Q1 of fiscal 2027 guidance: revenue of $500–$510 million, representing 14.7%–17% year-over-year growth; adjusted gross margin expected at 45.25%–45.5%.

Highlights: Management emphasized that missile and space growth are sustainable and industrial demand is improving; Risks: Fuel pressure in the commercial aviation aftermarket has not yet materialized.