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    Adam Farley • Stifel

    Adam Farley's questions to DNOW Inc (DNOW) leadership

    Adam Farley's questions to DNOW Inc (DNOW) leadership • Q2 2025

    Question

    Adam Farley of Stifel Financial Corp. inquired about the primary challenges of the MRC Global merger integration, how DNOW plans to manage risks and maintain employee focus, and the outlook for the second half of 2025, including guidance and potential for customer budget exhaustion.

    Answer

    CEO David Cherechinsky explained that the key to the integration is focusing externally on the customer and on growth opportunities presented by the combined entity's broader offerings. He emphasized aligning teams early to focus on the supply chain and customer needs. Regarding guidance, Cherechinsky stated he biases towards the middle of the full-year range, acknowledging that Q4 budget exhaustion is factored in and expected to be consistent with the typical 5% sequential decline seen in prior years.

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    Adam Farley's questions to DNOW Inc (DNOW) leadership • Q1 2025

    Question

    Adam Farley of Stifel inquired about the impact of tariffs and inflation on DNOW's business, specifically asking which product areas are most affected and how gross margins might trend. He also asked about competitive pricing behavior and opportunities for market share gains and growth in adjacent markets like energy evolution and data centers.

    Answer

    CEO David Cherechinsky explained that while inventory costs are currently low, the company is seeing normal inflation plus new tariff impacts, particularly in imported valves where price increases could range from 3% to 35%. He expects a net favorable impact on gross margins but noted the timing is uncertain. Cherechinsky stated that DNOW's global buying power provides an advantage over smaller competitors. Executive Brad Wise added that DNOW is pursuing growth in adjacent markets like water processing, data centers (providing natural gas infrastructure and electrical components), and decarbonization, though CCUS and RNG projects remain lumpy.

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    Adam Farley's questions to ESAB Corp (ESAB) leadership

    Adam Farley's questions to ESAB Corp (ESAB) leadership • Q2 2025

    Question

    Adam Farley, on for Nathan Jones, questioned the drivers behind the positive outlook for China and Southeast Asia, asking which industries were performing well. He also asked about the price-to-cost impact on margins, particularly in relation to tariffs.

    Answer

    President & CEO Shyam Kambeyanda attributed the strength in China to ESAB's focus on the top-tier market, particularly in the energy and high-speed rail sectors. He noted Southeast Asia is recovering due to manufacturing infrastructure improvements. CFO Kevin Johnson confirmed that the company was price-cost neutral against tariffs during the quarter, covering all tariff costs with price increases.

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    Adam Farley's questions to ESAB Corp (ESAB) leadership • Q3 2024

    Question

    Adam Farley from Stifel Financial Corp. asked about regional differences in pricing versus input costs and whether the price-cost dynamic remained favorable. He also questioned if ESAB has any key product or channel gaps to address in high-growth South Asian markets like India and Bangladesh.

    Answer

    CEO Shyam Kambeyanda confirmed a positive net price dynamic in both the Americas and Europe, driven by pricing discipline and mix shift. CFO Kevin Johnson added that for Q4, the Americas will see positive price and negative volume, while EMEA/APAC will see the reverse, with both segments remaining margin positive. On South Asia, Mr. Kambeyanda highlighted a focus on building brand equity, training centers, and e-commerce to leverage their dominant market position.

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    Adam Farley's questions to ITT Inc (ITT) leadership

    Adam Farley's questions to ITT Inc (ITT) leadership • Q2 2025

    Question

    Adam Farley, on for Nathan Jones, asked for a breakdown of the strong CCT segment orders, seeking to understand the split between market share gains and overall market growth. He also questioned the specific foreign exchange dynamics that led to margin compression in the Motion Technologies segment.

    Answer

    CFO Emmanuel Caprais explained that the CCT segment's 9% organic order growth was primarily fueled by significant share gains in the defense sector, with both legacy and the acquired Kesaria businesses winning content on coveted platforms. Regarding Motion Technologies, Caprais clarified that a weaker U.S. dollar creates a negative transactional FX impact that disproportionately affects that segment's margins, despite being a positive for translation.

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    Adam Farley's questions to ITT Inc (ITT) leadership • Q1 2025

    Question

    Adam Farley of Stifel Financial Corp. questioned which CCT components are most exposed to tariffs and whether customers are actively deferring capital investments.

    Answer

    CEO Luca Savi explained that CCT's tariff exposure is mainly on connectors traded between the U.S. and Mexico, and mitigation relies on pricing actions for non-USMCA products rather than resourcing. He also stated that the company is not seeing a trend of customers deferring capital investments, as evidenced by strong project orders and a robust project funnel, suggesting the cautious outlook is based on macro prudence rather than observed behavior.

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    Adam Farley's questions to Valmont Industries Inc (VMI) leadership

    Adam Farley's questions to Valmont Industries Inc (VMI) leadership • Q2 2025

    Question

    Adam Farley of Stifel Financial Corp. questioned Valmont's strategy for its solar business, including the rationale for exiting the North American market and the profitability of the remaining operations. He also inquired about the impact of recent steel tariffs on the company's financial outlook and pricing strategy.

    Answer

    CEO Avner Applbaum explained that the North American solar exit was due to poor returns and regulatory uncertainty, while the profitable Italian and scalable Brazilian operations remain. CFO Thomas Liguori added that exiting the slightly loss-making business will be accretive to EPS. Regarding steel, Applbaum emphasized value-based pricing, while Liguori noted the company primarily uses US steel, making tariff impacts profit-neutral through supply chain adjustments and pricing.

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    Adam Farley's questions to Valmont Industries Inc (VMI) leadership • Q1 2025

    Question

    Adam Farley of Stifel inquired about the timing and effectiveness of pricing actions taken to offset tariff impacts, asking if there is a lag, and questioned the sustainability of the strong 30% growth seen in the Telecommunications business for the remainder of the year.

    Answer

    CEO Avner Applbaum explained that tariff mitigation is split evenly between pricing and supply chain actions. He noted that while pricing on new utility bids is immediate, repricing of existing backlog items will be reflected more in the second half. Regarding Telecom, Applbaum stated that order rates remain strong as carriers continue 5G upgrades and network modernization, citing Verizon's reaffirmed CapEx spend as a positive indicator for continued investment in the sector.

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    Adam Farley's questions to Lindsay Corp (LNN) leadership

    Adam Farley's questions to Lindsay Corp (LNN) leadership • Q3 2025

    Question

    Adam Farley inquired about the cost impact from steel and aluminum tariffs and the progress of the Lindsay, Nebraska manufacturing modernization, including its effect on margins.

    Answer

    SVP & CFO Brian Ketcham stated that steel tariff impacts have been minimal as price hikes have not held, though other tariffs have a mid-single-digit impact managed by pricing actions. President and CEO Randy Wood confirmed the modernization project is on track. Ketcham detailed that recent margin expansion was primarily driven by international volume leverage and operational efficiencies across all factories, with growing subscription revenue also contributing.

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    Adam Farley's questions to Lindsay Corp (LNN) leadership • Q2 2025

    Question

    Adam Farley, on for Nathan Jones at Stifel, questioned whether the domestic irrigation market could absorb another round of price increases in response to tariffs. He also posed a hypothetical question about whether a prolonged trade war could shift agricultural investment and production towards Brazil, potentially benefiting the company's operations there.

    Answer

    CFO Brian Ketcham responded that the company has already implemented pricing actions due to steel costs and feels confident it can pass along the anticipated mid-single-digit tariff impact, as competitors face the same pressures. CEO Randy Wood agreed that a trade war could shift global grain supply dynamics to benefit countries like Brazil, and he emphasized that Lindsay's global footprint allows it to react quickly to capitalize on such shifts in demand.

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    Adam Farley's questions to Lindsay Corp (LNN) leadership • Q1 2025

    Question

    Adam Farley from Stifel inquired about the market outlook for Brazil, specifically if it is bottoming out, and asked about the nature of pricing pressure and the overall price-cost dynamic in the domestic irrigation market.

    Answer

    CEO Randy Wood stated that the Brazil market appears to be leveling off, with no expectation for significant further deterioration or near-term improvement, though new credit programs could provide some uplift. CFO Brian Ketcham addressed pricing, noting that while list prices are unchanged, there has been selective discounting. He characterized the current price-cost dynamic as margin-neutral, with softer steel prices being offset by inflation in other raw materials.

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    Adam Farley's questions to Donaldson Company Inc (DCI) leadership

    Adam Farley's questions to Donaldson Company Inc (DCI) leadership • Q3 2025

    Question

    Adam Farley, on for Nathan Jones from Stifel, followed up on the tariff discussion, asking about the potential for broader demand disruption or lower global growth resulting from tariff uncertainty, beyond the direct cost impact.

    Answer

    CEO Tod Carpenter acknowledged it was 'tough to say' but noted that while first-fit projects in industrial and mobile markets are seeing more caution, the aftermarket and service-based businesses continue to march along well. He stated the company is managing the situation carefully amidst the uncertainty.

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    Adam Farley's questions to Donaldson Company Inc (DCI) leadership • Q2 2025

    Question

    Adam Farley, on for Nathan Jones, inquired about the operating margin outlook for the Mobile Solutions segment for the rest of the year and asked if there were any changes in the adoption rate of Donaldson's connected solutions given the industrial market deceleration.

    Answer

    CFO Brad Pogalz stated that margins for all three segments, including Mobile, are expected to improve in the second half of the year, driven by sales leverage and disciplined expense management. CEO Tod Carpenter added that the adoption of connected solutions is actually accelerating, with year-to-date growth of 30% in connected machines, which is strengthening customer relationships and driving replacement part sales.

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    Adam Farley's questions to Donaldson Company Inc (DCI) leadership • Q1 2025

    Question

    Adam Farley followed up on the aftermarket business, asking about the underlying demand level after adjusting for destocking comps and market share gains, and whether demand was steady or accelerating.

    Answer

    CEO Tod Carpenter clarified that underlying vehicle utilization is steady, not accelerating, which reinforces that the strong performance in Mobile Solutions Aftermarket is primarily a share gain story. He credited strong execution and investments, such as new distribution centers, for the gains. He also reminded listeners that Q2 is typically a seasonally softer quarter for the aftermarket business due to holidays and lower agricultural and construction activity.

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    Adam Farley's questions to Donaldson Company Inc (DCI) leadership • Q4 2024

    Question

    Adam Farley, on for Nathan Jones, asked about the primary drivers behind the impressive gross margin improvement beyond price/cost dynamics and for details on the on-road product line being rationalized.

    Answer

    CFO Scott Robinson attributed the strong gross margin performance to leverage on higher sales volume and improved manufacturing efficiencies, stating the company expects to maintain these levels. He explained that the on-road product line being exited is a non-strategic, non-technology-led product, and the decision was made to better align with the company's core focus despite the resulting revenue headwind.

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    Adam Farley's questions to MRC Global Inc (MRC) leadership

    Adam Farley's questions to MRC Global Inc (MRC) leadership • Q1 2025

    Question

    Adam Farley of Stifel inquired about the impact of inflation and tariffs on the business, asking which product areas are seeing the most price increases and how gross margins might be affected. He also questioned if the Q1 inventory increase was a strategic move to get ahead of tariffs and asked for an update on market share opportunities within the growing Gas Utilities sector.

    Answer

    CEO Rob Saltiel explained that the tariff situation is dynamic, with the largest impacts on imported steel products and goods from China. He detailed MRC Global's mitigation strategies, including leveraging its domestic sourcing (over 60% of U.S. sales) and working with suppliers. Saltiel confirmed they did strategically build some inventory in Q1. He also expressed optimism for the Gas Utilities sector's return to growth, citing new customer opportunities and the IMTEC Services joint venture. CFO Kelly Youngblood added that the Gas Utilities backlog was up 26% year-to-date through April, underscoring the positive momentum.

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    Adam Farley's questions to Lincoln Electric Holdings Inc (LECO) leadership

    Adam Farley's questions to Lincoln Electric Holdings Inc (LECO) leadership • Q1 2025

    Question

    Adam Farley, on for Nathan Jones, asked if Lincoln Electric aims to expand margins with its tariff-related price increases, deviating from a simple cost pass-through. He also questioned whether the company would retain pricing gains if tariffs were to be reduced in the future.

    Answer

    CFO Gabriel Bruno reiterated the company's consistent strategy of remaining price-cost neutral. CEO Steven Hedlund expanded on this, stating the goal is to defend overall profitability by using a combination of pricing, productivity initiatives, cost savings, and sourcing alternatives. Their objective is to hold the full-year adjusted operating margin flat to down 50 basis points. Regarding a hypothetical tariff reduction, Bruno said the company would remain agile and responsive to market conditions rather than commit to a specific action.

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    Adam Farley's questions to Lincoln Electric Holdings Inc (LECO) leadership • Q3 2024

    Question

    Adam Farley, on for Nathan Jones, asked about any areas of relative strength by geography, end market, or product. He also inquired about how new product introductions were being received in the current weak demand environment.

    Answer

    CFO Gabriel Bruno identified pockets of strength, including energy investments in the Middle East, steady demand in HVAC and specialty gas, and positive trends in Asia Pacific and the Harris Products Group. CEO Steven Hedlund added that while new products were extremely well-received at a recent trade show, it remains to be seen when that enthusiasm will convert to orders given the cautious macroeconomic environment. Bruno reiterated that new products are a key long-term growth driver.

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    Adam Farley's questions to Zurn Elkay Water Solutions Corp (ZWS) leadership

    Adam Farley's questions to Zurn Elkay Water Solutions Corp (ZWS) leadership • Q4 2024

    Question

    Adam Farley from Stifel, on behalf of Nathan Jones, asked whether potential tariff impacts were included in the 2025 guidance and questioned if sustained higher interest rates could affect the company's long-term growth.

    Answer

    Executive David Pauli clarified that the guidance does not include new tariff impacts due to the fluid environment, but he expressed confidence in the company's ability to manage them, citing significantly reduced exposure to China. CEO Todd Adams added that while not in the guidance, the company is prepared to act with supplier moves or targeted price increases. Regarding interest rates, Adams noted that the majority of their business is not highly sensitive to rates and the company remains focused on controllable growth drivers.

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    Adam Farley's questions to Pentair PLC (PNR) leadership

    Adam Farley's questions to Pentair PLC (PNR) leadership • Q4 2024

    Question

    Adam Farley, on for Nathan Jones, asked which segments are experiencing the most significant near-term revenue headwinds from 80/20 'Quad 4' product exits. He also inquired if the 80/20 analysis has identified 'Quad 1' areas for potential growth investments.

    Answer

    President and CEO John Stauch identified the Water Solutions segment as seeing the most impact from 80/20 portfolio simplification actions, which are being undertaken to drive margin improvement. He confirmed that the 80/20 process has successfully identified 'Quad 1' customers and products across all businesses, creating opportunities to partner more effectively and drive focused growth.

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    Adam Farley's questions to Watts Water Technologies Inc (WTS) leadership

    Adam Farley's questions to Watts Water Technologies Inc (WTS) leadership • Q3 2024

    Question

    Adam Farley asked if the strong APMEA growth was primarily driven by the data center business in China and inquired about the drivers and outlook for the strong institutional and light industrial construction markets in the Americas.

    Answer

    CEO Robert Pagano confirmed that the growth in APMEA was driven by both data centers in China and strong performance in the Middle East. He also noted that the institutional market in the Americas, particularly schools and hospitals, has been historically steady and is expected to continue its stable performance.

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    Adam Farley's questions to Crane Co (CR) leadership

    Adam Farley's questions to Crane Co (CR) leadership • Q3 2024

    Question

    Adam Farley, on for Nathan Jones, asked about the primary drivers behind the strong margin performance in Process Flow Technologies. He also inquired whether PFT or Aerospace & Electronics stands to benefit more from the company's 80/20 deployment.

    Answer

    CFO Rich Maue attributed PFT's strong margins to solid price/cost performance, strong productivity, and higher volumes, reiterating the 35% incremental margin target. CEO Max Mitchell added that Crane's 80/20 approach is a holistic strategy focused on simplification, cost reduction, and over-serving core customers. Both he and Rich Maue suggested PFT would see more near-term benefits due to its less rigid long-term contract structure compared to A&E.

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    Adam Farley's questions to Badger Meter Inc (BMI) leadership

    Adam Farley's questions to Badger Meter Inc (BMI) leadership • Q3 2024

    Question

    Adam Farley, on for Nathan Jones at Stifel, asked if the BlueEdge branding is accelerating bundled sales and inquired about the company's capital allocation priorities, particularly regarding the M&A funnel.

    Answer

    Chairman, President and CEO Kenneth Bockhorst explained that BlueEdge offers customers 'tailorable' solutions to meet them anywhere in their technology journey, facilitating cross-selling. CFO Robert Wrocklage clarified that while the cross-selling strategy isn't new, BlueEdge is a more tangible way to market it. Mr. Bockhorst reiterated that capital allocation priorities remain R&D, dividends, and disciplined M&A focused on sensors, software, and strategic technologies that plug into the BlueEdge ecosystem.

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