Profitability:
Adjusted EBIT margin improved to 5.6% in 2025 (Q4 at 7.5%) with adjusted EPS up. Management guides to another 40–100 bps of margin expansion and higher EPS in 2026.
Healthy Cash Flow:
Free cash flow reached about $1.9B in 2025 (with ~$1.3B in Q4 alone). 2026 free cash flow is guided to $1.6–$1.8B.
Cost & Operational Efficiency:
Margin gains are attributed to operational excellence initiatives, cost controls, tariff mitigation, and commercial recoveries. Management expects these efforts to continue supporting margin expansion in 2026.
