• Growth guidance outlook: Management remains cautious for FY27 due to macroeconomic uncertainties and supply chain bottlenecks, maintaining an endeavor for double-digit growth while withholding formal guidance until subsequent quarters provide clarity.
• Margin defense: The company aims to sustain 21% operating margins through cost measures and a favorable product mix, though rising commodity prices (including copper and aluminum) and fuel costs will take time to pass on.
• Export market softness: Export demand continues to face geopolitical headwinds, with sluggishness across Africa, the Middle East, and Latin America offsetting growth in Europe and Asia-Pacific.
• Data center expansion: Contribution from data centers rose to 35% of the power generation business in Q4 and averaged 30% for the full year, driven by strong order momentum following tax rebates announced last year.
• Industrial segment performance: Industrial demand remains mixed, supported by strong order momentum in railways and mining and steady construction demand, while the compressor segment faces a cyclical downturn.