Oct 30, 2026 earnings call — Record EBITDA and Nissens expansion
Company reported record adjusted EBITDA of $67 million and consolidated net sales up 2.8% in the quarter.
Revenue $0.5B (est $0.5B) · EPS $1.54 (est $1.41)
Key quotes
"Our top line grew by 2.8% when adjusting for the accounting treatment of tariff refunds, which Nathan will explain further in his remarks."
"Sales were quite strong in the quarter, up 7.6% with most of the growth in air conditioning products."
"Few months ago, we entered into a joint venture agreement with our long-standing partner, Techstrong, where we acquired 50% of their sensor manufacturing operation in Thailand to support our Vehicle Control segment."
Analyst Q&A 3
Nissens sales, new products, inflation plan
Q (Scott Stember · ROTH Capital): He asked how Nissens performed by subcategory and whether the company is gaining share. He also asked when new products will show up in the numbers and how the company will handle inflation.
A: Growth was mainly in air conditioning products because of an extremely hot summer. Other Nissens categories are doing well; one small category was down due to timing but is up double-digits year to date. New product adoption is ahead of expectations but will take time to show in sales, and the company will use its usual cost savings and pricing playbook to offset inflation.
"But we have the typical playbook that we run." — Nathan R. Iles (CFO)
Temperature Control share gains and categories
Q (Bret Jordan · Jefferies): He asked whether the company is gaining market share in Temperature Control. He also asked about the potential incremental opportunity if coils and condensers gain traction.
A: Management believes they have gained market share partly because their large customers grew and the company grew with them, and partly from increasing ticket size through AC kits. They said it is hard to predict contribution from new categories and they do not want to get ahead of themselves; they must displace incumbents with a strong story. For condensers and coils they see natural fits and a compelling story, such as EU-made coils versus Chinese programs in Europe.
"I do believe that we have seen some market share gains, mostly on the coattails of our good customers as they grow, we've been able to grow with them." — Eric Sills (CEO·CHAIR)
Customer inventory and Kansas DC cutover
Q (Scott Stember · ROTH Capital): He asked how customer inventories look entering the slower season. He also asked how the cutover to the new Kansas distribution center is progressing and when it will be fully cutover.
A: They said customer visibility is a bit dated but customer shelves appear to be in good shape and preseason orders into next year may be reduced. The Kansas DC cutover has gone well; they optimized costs in Q3 and are essentially out of the old warehouse. They will continue to optimize and bring more products into the new DC over the next 4 or 5 quarters.
"So we'd expect to just continue to ramp that up as we go through the next 4 or 5 quarters." — Nathan R. Iles (CFO)