Profitability Gains

Operationally, gross profit increased by roughly $50 million and the gross margin widened by almost 60 basis points. CAPEX fell $9 million, a 3% decline from sales. The company’s return on capital employed was 23% and return on equity 24%, underscoring efficient use of invested capital. Efficiency initiatives, including direct‑labor productivity gains and cost‑optimization programs, are expected to sustain the margin outlook.