Modified · merged · Overview

For Commercial aftermarket sales increased in the first half nine months of fiscal 2026, compared to fiscal 2025 primarily due to the overall demand for air travel remained strong - both domesticallydomestic and internationallyinternational in the first nine months of the fiscal year. Commercial Passenger load factors remain strong. Our commercial aftermarket sales increased demand remains strong despite the softening in overall industry capacity and RPMs arising from the first half of fiscal 2026 compared to fiscal 2025 primarily due toconflict in the Middle East. We are monitoring the ongoing conflict in the overall demand for Middle East and the adverse impact to global energy supplies and prices, global supply chains, inflationary pressures and commercial air travel - both domestic and international. To date, we have not seen a significant change in commercial aftermarket order activity relative to levels prior to the start of the conflict. Passenger load We continue to monitor the evolving macroeconomic environment; however, at this time we do not expect these factors remain strongto result in a material adverse effect on our business, financial condition and results of operations for at least the duration of fiscal 2026.