Quarterly guidance

Quarterly guidance
No specific quarterly numeric guidance was given, though management noted Q4 organic sales will be modestly below the full year range.

Annual guidance

Organic growth
4% to 5%
Adjusted EBIT
Narrowed around the midpoint of $4.4 billion
Adjusted EPS
$7.85 to $8
Free Cash Flow
$1.2 billion to $1.4 billion for the second half
Capital expenditures
About $650 million for the year

Outlook

Supply chain output
Supplier output is expected to continue building quarter-over-quarter from Q4 2026 throughout 2027 as transformation actions take hold.
Mix headwinds
Mix headwinds are expected to persist as a higher portion of supply goes to commercial OE and domestic defense customers.
Margin trajectory
Q4 margins are expected to face a sequential headwind due to the absence of IEEPA tariff refunds, with the company exiting the year in the mid-23s.
Investment strategy
Investments in insourcing, multi-sourcing, and supplier tooling will continue to be accelerated to unlock sales growth in 2027 and beyond.