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- **Revenue Growth**: 9.2% YoY driven by 3% organic growth, with Service Center up 4.4% organically.
- **Profitability**: EBITDA +13.4% to $419M (12.2% margin), EPS +11.4% to $2.63.
- **Strategic Wins**: Hydradyne contributing $30M EBITDA, M&A pipeline active with $53M buybacks.
- **Key Trends**: 16/30 end markets growing, Service Center MRO demand strong, Q2 organic sales +low single digits.
- **Risks**: LIFO expense rising, but FY26 pricing guidance maintained at 150-200 bps.

**【CEO Summary Section】**
- **Revenue Growth**: Fiscal 2026 Q1 revenue increased 9.2% YoY, driven by 3% organic growth and 6.3% contribution from acquisitions. Service Center segment grew 4.4% organically, while Engineered Solutions segment sales were flat YoY but showed 5% order growth.
- **Profitability**: EBITDA rose 13.4% YoY to $419 million, with margins expanding 46 bps to 12.2%. EPS increased 11.4% to $2.63, benefiting from a 10% lower share count.
- **Market Trends**: 16 of 30 end markets showed YoY growth, with strength in machinery, food/beverage, and oil/gas. Service Center sales growth accelerated due to MRO demand and cross-selling initiatives.
- **Strategic Initiatives**: Hydradyne acquisition contributed $260 million in sales and $30 million in EBITDA, with synergies progressing well. M&A pipeline remains active, with $53 million in Q1 share buybacks.

**【CFO Financial Commentary】**
- **Top Line**: Consolidated sales of $1.1 billion reflected 9.2% YoY growth, with 200 bps pricing contribution. Service Center segment gross margin improved 70 bps to 13.9%, while Engineered Solutions margin expanded 40 bps to 13.8%.
- **Cost Control**: SG&A expenses grew 0.7% YoY, benefiting from AR provisioning and cost management. LIFO expense was $2.6 million, slightly higher than prior year.
- **Cash Flow**: Operating cash flow of $119 million supported $419 million in cash, with net leverage at 0.3x EBITDA.
- **Guidance**: Full-year EPS raised to $10.10-$10.85, reflecting Q1 performance. Q2 organic sales expected to grow low single digits, with Service Center outpacing Engineered Solutions.

**【Q&A Highlights】**
- **Pricing Dynamics**: 200 bps YoY pricing contribution in Q1, with 150-200 bps expected for FY26. Teams effectively passed through supplier price increases.
- **Hydradyne Synergies**: EBITDA up 20% sequentially, with cross-selling opportunities in MRO and field service.
- **M&A Pipeline**: Active pipeline for midsized targets, balancing share buybacks and acquisitions.
- **End Market Sentiment**: 70% of end markets showing stabilization, with positive order trends in robotics, data centers, and life sciences.
- **LIFO Impact**: Q2 LIFO expense expected to rise, but FY26 guidance assumes manageable inflationary pressures.

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