Our fourth quarter results reflect broad-based top-line strength across the portfolio, with organic growth up to five in the quarter, the highest level of the year. Revenue performance in the quarter was driven by robust trends, and our secular growth exposed markets as well as improving conditions in retail fueling and refrigerated door cases and services. Segment EBITDA margins improved 60 basis points in the quarter to 24.8% on volume leverage and ongoing productivity initiatives. All-in adjusted EPS at $9.61 was up 14% in the quarter, beating our raised third-quarter guide and 16% for the full year, a very encouraging result.
Our current acquisition pipeline is interesting and is dominated by proprietary opportunities. Demand trends are solid and broad-based across the portfolio and are supported by our order book, with no individual end market presenting a material headwind based on current visibility. We are guiding for adjusted EPS of $10.45-$10.65 a share in 2026, which represents double-digit growth at the midpoint, consistent with our long-term trajectory and commitment to driving sustainable value creation to our shareholders. Engineered Products revenue was down in the quarter on lower volumes and vehicle services, partially offset by double-digit growth within aerospace and defense components and software.
Despite the organic volume decline, absolute segment profit improved in the quarter, with margins up over 200 basis points on well-executed structural cost management, product mix, and productivity initiatives. Clean Energy & Fueling was up 4% organically in the quarter, led by strong shipments and new orders in clean energy components, as well as North American retail fueling software and equipment. Margins were down slightly in the quarter due to lower vehicle wash solutions, but still up materially for the year as we track towards our goal of 25% margin for the segment. Imaging and ID was up 1% organically in the quarter on growth in our core marking and coding business and in serialization software.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS | FY2026 | $10.45–$10.65 (double-digit growth at midpoint) (Initiated) |
| Free cash flow (% of revenue) | FY2026 | 14%–16% of revenue (Steady to higher) |
| Organic revenue growth | FY2026 | ~4% (Initiated) |
| Price embedded in guide | FY2026 | 1.5%–2% (Initiated) |
| Incremental margin (as reported) | FY2026 | ~35% (Initiated) |
| Metric | YoY | Note |
|---|---|---|
| Pumps & Process Solutions | +11% organic | Growth in single-use biopharma components, thermal connectors for data-center liquid cooling, precision components, digital controls, plus first polymer-processing organic growth since Q1 2024 on backlog delivery timing. |
| Climate and Sustainability Technologies | +9% organic | Double-digit growth in CO2 refrigeration systems and recovery in refrigerated display cases and engineering services, plus record brazed plate heat exchanger shipments for data-center liquid cooling. |
| Clean Energy & Fueling | +4% organic | Strong shipments and new orders in clean energy components and North American retail fueling software and equipment. |
| Imaging and ID | +1% organic | Growth in core marking and coding and serialization software, with margins at 28% though FX translation and higher printer-shipment mix weighed slightly. |
| Engineered Products | Revenue down | Lower volumes in vehicle services partially offset by double-digit growth in aerospace and defense components and software; segment profit and margins still rose over 200 bps on cost management and mix. |
| Free cash flow | Q4 $487M (23% of revenue); FY 14% of revenue, up ~$200M | Improved cash conversion on higher year-over-year earnings, more than offsetting higher capital spend on growth and productivity projects. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data-center liquid cooling demand | — | Record U.S. quarterly shipments of brazed plate heat exchangers and thermal connectors; booked well beyond Q1. | Rising |
| Refrigeration recovery | ~$150M drawdown / deferment discussed at Q3 | Backlog rebuilt, sold out for Q1 and booking into Q2; national retailers resuming maintenance and replacement spending. | Rising |
| North American retail fueling CapEx cycle | — | Described as early innings of a new CapEx cycle, a North American phenomenon as fuel-retail spreads sit near record highs. | Rising |
| M&A and capital allocation | — | $700M deployed across four acquisitions in 2025 (three in Pumps & Process Solutions) performing above underwriting; $500M accelerated share repurchase initiated in November; dry powder nearly identical to prior year. | Steady |
| Secular growth-exposed markets (~20% of portfolio) | Highlighted in prior quarters | Continued double-digit growth in 2025 and expected to continue in 2026. | Steady |
| Input cost / commodity inflation | — | Watching commodity costs rising into the year, particularly copper in DCST; may take pricing action to cover headwinds. | Rising |