Oct 29, 2026 earnings call — Sales growth, margin expansion, and raised guidance
Company raised FY2026 revenue guidance to $480 million-$500 million, midpoint $490 million.
Revenue $0.1B (est $0.1B) · EPS $0.07 (est $0.02) · Next-quarter revenue outlook $0.5B–$0.5B
Key quotes
"Our Q3 adjusted EBITDA increased 50% year-over-year, bringing us to Q3 year-to-date, net sales up 19% over the same period prior year."
"Of course, we recently expanded into liquid cooling products, and that is absolutely exploding, and I look forward to talking about that in a page or two."
"As you can see from the chart, total net debt and preferred stock was reduced significantly from $261 million at year-end 2025 to $139 million on a Q3 pro forma basis."
Analyst Q&A 6
how new wins ramp and margins
Q (Rob Brown · Lake Street): He asked how fast the new business wins ramp, how many quarters it takes, and the gross margin impact. He also asked about penetration in data center and timing for other product areas.
A: They said they launched $100 million of business this year and it is in ramp-up mode. They stated a floor on gross margins for new business of 25% and a target of 35%, while company gross margin today is about 20% with a longer-term goal of 22% and an aspirational 25%.
"Numerically, what you're speaking about is we do have $100 million of business this year that we've launched, and then it's in ramp up mode." — Harold Bevis (CEO)
why wins grew and Q4 outlook
Q (Greg Palm · Craig-Hallum): He asked why new business wins came in much higher than expected and whether the annual target should be raised. He also asked for color on Q4, seasonality, and whether conservatism or working-capital signals are baked into guidance.
A: They said they moved the new-wins number up to $120 million for this year and believe data center, defense and munitions opportunities are bigger than they thought. They said momentum is increasing, credited entrepreneurial executives and AI prospecting, and added they are being conservative on guidance but have strong October results and short-term visibility with backlog, especially in China and data center.
"We moved it up to $120 million, Greg, for this year, and then your question is why shouldn't it be $120 million forever or higher?" — Harold Bevis (CEO)
adding capacity in China
Q (George Proost · Noble): He asked whether the backlog in China would lead to expanding capacity there.
A: They said they won a big chunk of business for the NVIDIA supply chain and had to order equipment subject to lead times and the PPAP process. They are ramping up about 55 new machines that will go into Q1 of 2027 and see this as a continuum toward 180 machines through 2027.
"We are underway ramping up about 55 new machines." — Harold Bevis (CEO)
Juarez plant and tax rate
Q (Robert Sussman · Bentley Capital): He asked about the new Juarez plant in Mexico: prospects, investment size, commitments and timing for cable assembly. He also asked what the 2027 book and cash tax rate will be.
A: They said Juarez will launch with machined product first, then add cable assembly; machines are ordered but not all arrived and ramp-up should be completed during Q1, with 2027 guidance to include plant expectations later. On taxes, they said they are not in a tax paying situation, expect cash taxes to be very small and "in the $4 million-$5 million range" for the next couple of years.
"So our cash taxes are very small. They're in the $4 million-$5 million range." — Chris Bohnert (CFO)
win rates and auto contract timing
Q (Barry Haimes · Sage Asset Management): He asked whether the >25% win rate varies by segment and whether medical win rates rise over time. He also asked about the $750 million pipeline implying future wins and about auto contract repricing timing and whether machinery can be repurposed.
A: They said win rates do vary: high in data center and defense, harder in medical, and their win-rate metric is measured on closed opportunities. They expect to continue to hover around a 25%-28% win rate on closed opportunities, noted not all pipeline will close in 2027, said most auto contracts give about a 12-month heads-up for changes, and that much equipment can be repurposed to defense and munitions.
"I think we will continue to hover around a 25%-28% win rate on closed opportunities." — Harold Bevis (CEO)
2027 growth and M&A appetite
Q (Greg Palm · Craig-Hallum): He asked if they endorse the $50 million incremental revenue for fiscal 2027 and then asked about M&A appetite and what an ideal acquisition would bring (capacity, capabilities, customers).
A: They said they are comfortable with their long-term guidance and that the incremental estimates are in the ballpark. On M&A they described a target with medical and defense customers, INDEX machines, gun drilling and multi-axis EDM capabilities, and said an acquisition must add capabilities, customer roster expansion and be accretive on price.
"So it's capabilities and customer roster expansion into the areas that we've already selected." — Harold Bevis (CEO)