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Chairman & CEO Jennifer Parmentier provided a detailed breakdown for the 8% aerospace organic growth forecast, projecting low double-digit growth in commercial OEM and high single-digit growth in commercial MRO. EVP & CFO Todd Leombruno explained that the free cash flow guide reflects higher CapEx for automation, working capital investment to support industrial growth, increased restructuring, and one-time costs related to the Curtis acquisition.

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Chairman and CEO Jennifer Parmentier provided a detailed breakdown for the 8% aerospace growth forecast: low double-digit for commercial OEM, high single-digit for commercial MRO, and mid-single-digit for both defense OEM and MRO. EVP & CFO Todd Leombruno explained the cash flow guidance reflects higher CapEx for automation, increased restructuring, working capital investment to support industrial growth, and one-time costs for the Curtis acquisition.

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Executive Jennifer Parmentier reported that Asia Pacific's 2% growth was driven by electronics and semicon, with China (5% of sales) up low-single digits on similar trends. Executive Todd Leombruno described Latin America's growth as robust and broad-based. Regarding G&A, Leombruno noted that while some savings are from fluctuating market-based benefits, the team has controlled costs well and he does not foresee a significant amount returning, citing the company's frugal culture.

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Founder, Chairman & CEO Richard Cohen stated that retrofits are not expected, as the new, denser structure can run alongside the old one, enabling more capabilities like break pack or ASR systems in the same footprint. He confirmed the growth trajectory would be less steep in the near term but accelerate later. CFO Carol Hibbard added that deployment timelines, historically around 12 months, are expected to decrease. Cohen also noted that inbound discussions with new customers are accelerating for both Symbotic and GreenBox.

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CFO Carol Hibbard clarified that system starts will remain lumpy and are mutually decided with customers, but the overall trajectory is expected to improve. Regarding Q3 margin guidance, she attributed the sequential decline primarily to a lower expected revenue contribution from the higher-margin ASR business in Q3 compared to Q2. Hibbard also noted that the guidance does not include tariff impacts, which would increase revenue but act as a drag on gross margin percentage due to being a pass-through cost.

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CFO Carol Hibbard confirmed that the transition to bring deployment work in-house is progressing well, with former contractors having completed their work ahead of schedule. She noted that while the four new system starts this quarter were lower than the previous quarter's nine, this lumpiness is expected, and the number of starts should increase throughout the year as the company works through its backlog.

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CEO Blake Moret stated that while large projects face delays, not cancellations, he expects a higher intake of new capacity orders in FY25 and FY26. He reaffirmed the commitment to the 22-24% margin target for Intelligent Devices, citing direct material cost savings, better pricing, and recovery in configured-to-order business as key drivers. CFO Christian Rothe confirmed a clear pathway exists to achieve this leverage.

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CEO Blake Moret confirmed that while large projects face delays, they are not being canceled, and he expects a higher intake of new U.S. capacity orders in FY25 and FY26. He noted the company-wide book-to-bill is around 1.0. For Intelligent Devices, Moret reiterated the commitment to the 22-24% margin corridor, citing direct material cost reduction, strategic pricing, and recovery in the configured-to-order business as key drivers for improvement.

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CEO Blake Moret positioned the cost-out program as a long-term foundational effort. CFO Christian Rothe added that while they now expect to exceed the $250 million savings target for the year, he is not yet providing a specific long-term margin target but is excited for potential in FY26 and beyond. Rothe confirmed the full-year book-to-bill target is around 1.0, supported by improving orders from machine builders who are past destocking and adopting new Rockwell products.

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CEO Blake Moret attributed the order strength to underlying market improvement, the end of destocking, and broad-based demand, particularly in e-commerce and hybrid markets, supported by new products. He confirmed January's performance supports the outlook. CFO Christian Rothe clarified that while Q1 cost savings were ahead of schedule, the full-year target of $250 million remains unchanged, emphasizing it's a matter of timing.

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Blake Moret, Chairman and CEO, indicated that while some areas like life sciences may be bottoming due to GLP-1 investments, broad greenfield projects in food and beverage remain delayed. He stated that achieving the fiscal 2025 guidance relies on a very gradual sequential improvement in orders after Q1, driven by a slow recovery in end markets.

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President & CEO Lal Karsanbhai confirmed that LNG, power, and life sciences are the primary growth drivers for Process and Hybrid, while bulk chemicals remain weak. He and COO Ram Krishnan attributed the Test and Measurement outperformance to a combination of market recovery and successful self-help initiatives, including a reset commercial focus and new product introductions like the updated LabVIEW.

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CFO Michael Baughman attributed the high first-half leverage to favorable mix from AspenTech, Test & Measurement synergies, cost controls, and prior restructuring benefits. He noted second-half leverage will be lower due to FX shifts and tariff accounting. CEO Surendralal Karsanbhai added that AspenTech's outperformance was due to the timing of a large contract and aggressive execution on cost synergies, particularly in G&A.

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President and CEO Lal Karsanbhai affirmed that customer commitments to both energy security and decarbonization remain strong, supporting the project funnel. He expressed confidence in the Process and Hybrid outlook, driven by capital projects and MRO. Regarding China, he noted it was down but expected to improve, with strength in the Americas and Middle East providing an offset. COO Ram Krishnan added that a flat year for China is factored into the annual plan.

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President and CEO Lal Karsanbhai stated that the $7.2 billion backlog is healthy and supportive of the 2025 guide, expecting a book-to-bill of one. He highlighted that project activity continues to move in the right direction, with strength in global LNG, sustainability and decarbonization projects in Europe, and robust life sciences and power generation activity.

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Chair & CEO Bob Pragada attributed the confidence for FY26 growth to strong, multi-quarter backlog growth in Life Sciences, data centers, and water. He also noted that European transportation spending is rebounding, while Middle East growth is driven by major programs. CFO Venk Nathamuni reiterated that the strong pipeline in these areas supports the outlook.

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Chair and CEO Bob Pragada expressed confidence in the H2 forecast due to strong backlog burn, noting procurement cycles are longer but without major cancellations. He highlighted positive inflection at PA Consulting and strength in the Middle East. CFO Venk Nathamuni stated the legal reserve's impact was absorbed and pointed to SEC filings for details, adding that FX was a Q2 headwind but could be a Q3 tailwind.

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CEO Tom Logan stated unequivocally that they would be disappointed if the nuclear backlog is not higher by year-end. On SMRs, he remains cautious, expecting industry consolidation and noting that while activity has accelerated, he is not forecasting a dramatic spike in orders yet. Regarding the medical business, Logan acknowledged market uncertainty but highlighted its resilience due to its focus on efficiency-driving solutions and favorable reimbursement mix, stating they have not yet seen an erosion in growth.

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Executive Brian Schopfer stated that while the recent debooking was a headwind, he expects the year-end backlog to be "in the zone of flattish" compared to the prior year, with potential for upside. Executive Thomas Logan detailed that the large project pipeline is over 50% U.S.-based, with the rest in Europe and the Arab Gulf. He affirmed bullishness on sustained nuclear growth, citing the improved financial health of global operators and an acceleration in the SMR timeline driven by hyperscaler demand. Logan confirmed the debooking was purely contractual and not geopolitical.

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CEO José R. Mas expressed strong optimism for the Pipeline segment, stating that 2026 revenues should resemble 2024 levels and that the market could eventually return to its peak of $3.5 billion. He emphasized that the company is investing heavily for a large, multi-year cycle. For Communications, Mas noted the strength has been a positive surprise, with no signs of slowing down, and that the company is at the beginning of a cycle driven by middle-mile fiber expansion.

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CEO Jose Mas stated that AI and middle-mile fiber currently represent a larger and more immediate opportunity than the BEAD program, which is not expected to materially impact 2025. He described the overall demand environment as fantastic and noted that while increased hiring is incurring some training costs, strong revenue growth is offsetting it. Mas believes MasTec is in the early innings of a long growth cycle driven by AI.

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CEO Jose Mas expressed high confidence, stating he expects backlog in every segment to be higher by year-end 2025. For Communications, he clarified that BEADs funding is a negligible part of the 2025 forecast but will be significant later. The 2025 growth is primarily driven by previously announced contracts with AT&T and Lumen, with newer awards expected to ramp in the second half of the year, setting up for further growth in 2026.

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CEO Jose Mas explained that the strong margins are the result of prior strategic investments finally translating to financial success. He affirmed that the consensus 2025 EBITDA growth forecast of nearly 15% is achievable, driven by expected double-digit organic revenue growth in the Communications, Power Delivery, and Clean Energy segments. He described the Lumen award as a significant new relationship with a previously small customer, signaling future growth potential.

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CEO Jim Breuer acknowledged that trade policy uncertainty is still impacting client sentiment and investment decisions, particularly with key partners like China, Canada, and Mexico. He stated that while there is short-term hesitation, Fluor is well-positioned in key markets like mining, advanced manufacturing, and power for future growth. CFO John Regan explained that the NuScale share conversion will generate a tax gain that can be substantially shielded by existing tax credits, and that a full monetization plan will be unveiled over the next quarter.

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CEO James Breuer stated the Dow slowdown is not seen as a broader trend and that engineering and procurement continue. CFO John Regan added that early procurement on existing backlog projects provides stability. Breuer expressed confidence in the awards pipeline, citing specific opportunities in copper, pharmaceuticals, data centers, and a significant Savannah River Site project, noting their strong underlying economics.

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Chairman and CEO David Constable stated that Fluor is likely four quarters behind its 2026 EBITDA target range but emphasized strong future CAGR growth. Chief Financial Officer Joe Brennan added that Urban Solutions will be the primary near-term growth driver. Regarding NuScale, Constable highlighted the immense market demand for nuclear power and confirmed positive engagement with the strategic investor to finalize a commercialization model that captures value for all shareholders, leveraging NuScale's unique NRC approval.

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CEO Vicente Reynal reported good momentum in the legacy medical business, contributing to organic growth in life sciences, and expressed confidence in a turning point for the broader PST segment. CFO Vikram Kini explained the ITS margin was impacted as expected by volume deleverage, M&A dilution, and tariff pricing effects, but remained healthy at around 29% with no unusual negative factors.

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CFO Vik Kini stated that while the company doesn't guide on orders, he was encouraged by the Q1 momentum and expects normal seasonality for book-to-bill. CEO Vicente Reynal addressed margins, noting ITS faced a tough prior-year comparison but still shows a strong two-year stack improvement. He highlighted sequential margin improvement in PST and emphasized that there is still significant runway for margin enhancement in both segments through operational execution and value engineering.

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CEO Vicente Reynal confirmed that MQLs remained strong, up low-double digits for Q4 and the full year, though decision-making cycles remain elongated. CFO Vik Kini clarified that PST margin pressure was from volume deleverage, not integration issues, stating that the ILC Dover integration is progressing well and in line with past successful integrations like Seepex.

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Chairman and CEO Vicente Reynal confirmed that the M&A outlook for 2025 looks very encouraging and similar to 2024, with a strong funnel of bolt-on acquisitions. CFO Vik Kini addressed PST, stating they expect positive order momentum to translate into growth in Q4. Vicente Reynal added that the ILC Dover integration is going well, with strong performance and investments being made to scale the business.

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President & CEO Duke Austin affirmed his confidence, stating the company has historically achieved 20%+ growth and that recent platform acquisitions are setting the stage for future performance in 2026 and beyond. He emphasized that the demand for power is exponential, driven by AI and domestic manufacturing, positioning Quanta at the center of critical infrastructure builds.

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President and CEO Duke Austin affirmed the need for a significant transmission build-out, comparing it to the expansion seen in the 1970s. He emphasized that transmission is critical to connect new generation to load centers like data centers, which will drive robust demand and support continued backlog growth.

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President and CEO Earl "Duke" Austin confirmed they see a substantial pipeline of large projects and a 'stacking effect' of work building in 2026 and beyond. Regarding the EPS target, he pointed to the ~20% adjusted EPS growth expected in the current year and stated that 15% or more is a possibility for next year. He acknowledged that this growth trajectory puts the $11-12 EPS range for 2026 within reach, pending continued execution.

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CEO Matthew Pine credited the Applied Water team's execution of 80/20 for improving focus on key customers and driving strong price realization. He confirmed the company is strategically walking away from some lower-value volume but is seeing growth in developed markets, particularly commercial and industrial. Pine identified China as the main area of weakness, with orders down 18%, and noted that the 80/20 strategy involves intentionally pulling back from less effective regions.

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CFO William Grogan highlighted strong Q4 orders and projected a return to growth for the Applied Water segment in 2025, driven by developed markets. CEO Matthew Pine reiterated a disciplined capital deployment strategy prioritizing accretive M&A, referencing the successful Evoqua integration. He explained that taking majority control of Idrica is a strategic move to more deeply integrate its technology and establish it as a standard digital platform across Xylem.

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President and CEO Russ Becker explained that the Specialty margin in Q2 was impacted by the timing of project starts versus completions, but expects improvement. He affirmed the strength of the Safety business, highlighting the 20th consecutive quarter of double-digit inspection growth, strong service demand, and robust project opportunities in key end markets like data centers, which allows for selective, value-based project pursuits.

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President and CEO Russell Becker confirmed the backlog is around $3.5 billion and growing, with momentum expected to continue. He noted Specialty Services is expected to see organic growth in Q2, aided by a strong backlog. Regarding tariffs, Becker explained that APi proactively added protective language to contracts to pass on material cost increases, primarily for steel pipe in the North American safety projects business. He mentioned some material prepurchasing occurred in Q1 but feels the company is well-positioned to manage the situation.

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President and CEO Russ Becker expressed optimism for project growth, citing a record $2 billion backlog in the Safety business and strong end markets. He confirmed the company will not stop at its 13% margin target and will issue new, higher long-term goals at its next Investor Day. He also stated the backlog is growing and healthier, with robust opportunities in data centers, healthcare, and infrastructure.

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CEO Olumide Soroye attributed the Fluke issue to a temporary pause on some large, short-cycle orders due to tariff uncertainty, noting that these orders are now returning and the business fundamentals remain strong. Geographically, he described North American point-of-sale as strong, Europe and APAC as flattish, and expressed a belief that China has bottomed out. He identified Western Europe as the region with the most uncertainty.

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CEO Olumide Soroye clarified that the Fluke issue was a temporary order mix shift due to tariff uncertainty, not a broader macro problem. He noted strong point-of-sale in North America, flattish trends in Europe and APAC, and signs that the China market has bottomed out, while Europe remains the most uncertain.

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President and CEO James Lico explained the shipping delays were due to variations in the U.S. government's product validation process, not manufacturing capacity. For the regional outlook, Lico expects North America to remain the strongest market, while Western Europe and China will be challenged. He noted that high-growth markets outside of China are now larger than China and continue to grow well.

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President and CEO James Lico stated that Fortive has embedded a price increase of a little over 200 basis points for 2025, which is consistent across segments. On AHS consumables, Lico explained that Q4 faced a tougher year-over-year comparison than Q2 and Q3, but underlying performance remains strong. He noted good performance in Europe and most regions, with China being the main area of challenge for the health business.

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President and CEO James Lico noted that while some regional order strength was due to easier comps, underlying trends like global Fluke point-of-sale were positive. For AHS, he reaffirmed the long-term mid-single-digit growth target but expressed confidence in continued margin expansion, driven by strong commercial execution and a new wave of product innovation.

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CEO Giordano Albertazzi stated it was premature to formally change long-term market growth expectations. However, he confirmed that market trends are toward the upper end of their 15-17% growth range for hyperscale and colo, and emphasized that Vertiv is gaining market share within that strong environment.

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CEO Giordano Albertazzi stated that it would be premature to formally change long-term market growth expectations. However, he did acknowledge that for the hyperscale and colocation market, they are thinking toward the upper end of the previously guided 15-17% growth range and that Vertiv's momentum implies market share gains.

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CEO Giordano Albertazzi remained cautious on the timing of a European acceleration but noted its pipelines are encouraging. He highlighted that the Americas and Asia continue to be strong growth engines. He also affirmed the company's expectation to achieve a book-to-bill ratio greater than 1 for the full year, in line with its long-term growth model.

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CEO Giordano Albertazzi acknowledged a material shift in EMEA project timing into 2025 but expressed confidence in the region's pipeline, noting AI adoption there lags North America. He stated that he expects a 'good trailing 12' month order growth rate in 2025 that will fully support the company's financial model, driven by robust and growing customer investment pipelines.

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CEO Giordano Albertazzi responded that while not providing specific win rate figures, the company is happy with the trajectory, which is consistent with its market share ambitions in liquid cooling. He confirmed that signals point toward the previously indicated additional $0.5 million TAM per megawatt for high-density AI applications, moving from a $2.5-$3.0 million baseline to the $3.0-$3.5 million range.

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President & CEO R. Scott Rowe confirmed the 1.0 book-to-bill target for the year, noting that while some large projects were delayed in Q2, the project funnel is up and the aftermarket business remains strong. SVP & CFO Amy Schwetz added that July has already seen a significant project order. Regarding FCD, she explained that organic FCD margins improved, but the segment was impacted by temporary issues at Mogus, including a fabricated module business that is being discontinued. Mr. Rowe affirmed that the same margin improvement playbook used successfully in FPD is being applied to FCD.

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President & CEO R. Scott Rowe acknowledged that macro uncertainty and tariffs caused some Q2 project delays but highlighted the continued strength of the aftermarket business. He affirmed the full-year book-to-bill target of 1.0, supported by a growing project funnel. SVP & CFO Amy Schwetz added that a large project was booked in July, increasing confidence for Q3. Regarding FCD margins, Amy Schwetz explained that while the Mogus acquisition had a temporary negative impact due to a low-margin fabricated module business, organic FCD margins improved and synergy realization is on track. R. Scott Rowe expressed confidence that the FCD segment will see improved margins by applying the same successful business system playbook used in FPD.

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President & CEO R. Scott Rowe acknowledged market uncertainty but highlighted the strength in aftermarket business, which saw its fifth consecutive quarter above $600 million. He confirmed the goal of a 1.0 book-to-bill ratio for the year, supported by a sequentially growing project funnel. SVP & CFO Amy Schwetz added that large project activity was already seen in July. Regarding FCD margins, Schwetz explained the temporary issues with Mogus, including the wind-down of a low-margin fabricated module business and slower project bookings, but noted that integration synergies are on track. Rowe affirmed his confidence in the FCD team and the playbook used successfully in FPD to restore FCD's historical margin profile.

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President and CEO Robert Rowe confirmed record aftermarket bookings in Q1, driven partly by a large, non-recurring nuclear order, but noted the run-rate remains strong. He expressed caution for the second half due to tariff uncertainty. CFO Amy Schwetz explained that the main tariff impact is expected in the second half, and the Q2 outlook reflects strong Q1 execution momentum balanced by some mix headwinds. Rowe added that Q1's performance set a high bar, making a similar Q2 result a strong outcome.

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President and CEO Scott Rowe confirmed the aftermarket business is "incredibly healthy" and that project activity in the Middle East remains robust with no signs of a slowdown. CFO Amy Schwetz explained that the flatter Q4 earnings ramp is intentional, driven by less percentage-of-completion revenue compared to the large Jafurah project in the prior year, resulting in smoother quarterly performance.

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EVP & CFO Chris Kuehn stated that the strong margin performance was broad-based across the P&L, driven by productivity, volume leverage, and accretive services, not just a favorable mix. Chair & CEO Dave Regnery attributed the outperformance in the unitary business to strong execution by their direct sales force, which has expertise across a wide range of verticals, including those with a higher concentration of unitary solutions.

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CEO David Regnery explained the EMEA margin dip was due to the timing of investments in new products and channels during the shoulder season and expressed confidence in the full-year performance, pointing to strong mid-teens Commercial HVAC order growth as proof the investments are working. CFO Christopher Kuehn added that recent bolt-on M&A integration costs also impacted reported margins. Regarding Transport, Regnery noted they expect the Americas market to be down about 20% but anticipate outperforming due to continued investment and innovation. He sees 2025 as the trough before a strong rebound in 2026.

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CEO Dave Regnery reiterated that growth is broad-based across verticals, not just data centers, and highlighted that the education vertical remained strong in Q4 even after ESSER funding waned. CFO Chris Kuehn noted that while the team in Asia outperformed, normalization in China will continue into H1 2025. He confirmed the company is driving for 25% or better leverage across all businesses in 2025, balancing strong margin performance with accelerated investments across all regions.

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CEO Dave Regnery confirmed that the office vertical had a strong quarter and is up year-to-date, driven by Class A building upgrades and helping customers get tenants back. He emphasized the broad-based strength across their verticals, with 13 of 14 tracked verticals showing positive order growth. Regarding China, Regnery reiterated that the team performed well on deleverage despite the revenue drop, which was driven by both market conditions and a deliberate tightening of credit policies. He expressed confidence that this is the right long-term decision and the team will work through it.

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Senior VP & CFO Michael Larsen noted the 6% sequential growth demonstrates positive momentum, with encouraging signs in industrial CapEx areas like Test & Measurement and Welding, while consumer-facing markets remain soft. President & CEO Chris O'Herlihy explained that China's success is sustainable and broad-based, driven by highly differentiated products, strong local innovation, long-term customer partnerships, and an experienced local leadership team.

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CFO Michael Larsen stated it was too early to call a broad recovery despite some positive signs, such as in semi-electronics and a solid December, emphasizing that ITW is positioned to capitalize if demand improves. CEO Christopher O'Herlihy attributed the strong China auto performance to long-term investments, a high-quality local team, and significant CBI-driven growth in the EV market, which led to outperforming local builds by 800 basis points.

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CEO Chris O'Herlihy confirmed they are seeing a bottoming in the semiconductor market and electronics, based on customer conversations. He also noted that the key Instron business within the segment showed solid growth. Regarding Construction, CFO Michael Larsen stated it is their most interest-rate-sensitive segment and that it's too early to see signs of a pickup, despite falling interest rates being a positive long-term indicator. He highlighted the segment's remarkable 30%+ margin performance despite the challenging volume environment.

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CEO Joakim Weideminis stated there is no reason Johnson Controls' margins should be below competitors over time and that the new business system initiatives are designed to close that gap. CFO Marc Vandiepenbeeck added that current Americas margins are temporarily muted by a mix shift toward systems over service and an M&A headwind, suggesting these factors will become tailwinds as they normalize.

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CEO Joakim Weidemanis stated he sees 'very interesting opportunities' to move attachment rates 'much higher' over time. He emphasized that the key is to apply LEAN principles and digital tools to the service business itself to leverage the 40,000-person field organization, increasing capacity and improving response times.

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CEO George Oliver stated that after proactive adjustments, he believes the company has found the bottom in APAC and is returning to growth, supported by a strong services business. CFO Marc Vandiepenbeeck added that healthcare continues to see strong growth, while core real estate (offices) remains flat, and infrastructure and semiconductor manufacturing show positive trends.

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President and CEO Jennifer Honeycutt explained that Water Quality's resilience stems from secular drivers like water reuse, not government funding fluctuations. SVP and CFO Sameer Ralhan detailed that PQI's margin pressure was equally due to M&A investments, tariff/pricing timing, and supply chain costs, which are expected to abate in the second half of the year.

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SVP and CFO Sameer Ralhan explained that with a 70% direct-to-customer model, they have good visibility and see no signs of inventory build-up. He noted that the full-year low-to-mid-single-digit core growth guidance already reflects a rebalancing of price and volume. He also stated that savings from Kaizen events are embedded in existing budgets and forecasts and are not quantified separately.

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SVP and CFO Sameer Ralhan explained the Q4 margin guidance reflects a ~30 bps impact from the TraceGains acquisition, ~50 bps from higher corporate costs, and a mix shift towards equipment sales. He noted Q4 growth faces a tougher comp in China. President and CEO Jennifer Honeycutt added that TraceGains integrates with Esko to streamline workflows from source to shelf, addressing key customer pain points in compliance and time-to-market, and is expected to continue its strong growth.

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Chairman & CEO David Gitlin explained that strong growth in Japan, India, and the Middle East is offsetting sustained softness in China's residential market. On U.S. Residential, Gitlin stated that pricing has been firm, with mid-single-digit increases in the first half, and he expressed confidence that Carrier is holding its market share, seeing no evidence of share loss despite softer market volumes.

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CEO David Gitlin reaffirmed a flat outlook for Viessmann for the year, noting strong heat pump mix is offsetting lower boiler volumes. He also confirmed the data center business is on track to double to $1 billion in revenue. CFO Patrick Goris added that Viessmann's margins are expected in the low teens this year, with a goal to reach mid-teens for the entire CSE segment in the next couple of years by addressing legacy business performance.

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CEO David Gitlin expressed confidence in the 'balanced, perhaps conservative' VCS forecast, citing controllable factors like positive mix from heat pump growth, double-digit aftermarket expansion, and $100 million in revenue synergies. CFO Patrick Goris stated that known tariffs from China are already mitigated in the guide and that HVAC margin expansion will be driven by organic growth and productivity, offset by planned business reinvestments.

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David Gitlin, Chairman and CEO, stated that both residential and light commercial HVAC have gained share, with residential gains exceeding 100 basis points, partly due to strong 410A availability. He noted light commercial is performing better than expected and will have an easier compare in 2025. Patrick Goris, CFO, added that while not providing 2025 guidance, they would be 'very disappointed' if organic growth did not deliver double-digit adjusted EPS growth, citing strong backlogs and momentum in key businesses.

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CEO Stephen Shafer affirmed that putting the balance sheet to work to build new growth platforms is a high focus for him. Regarding boilers, CFO Charles Lauber and Shafer noted the strong performance is driven by high-efficiency product traction, but the raised forecast remains cautious due to potential pre-buy effects from the first half, similar to an experience from a couple of years ago.

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CFO Chuck Lauber stated that while Q1 North America margin was strong at 24.7%, he expects a slight margin headwind in Q2 as tariff costs are incurred before pricing actions take full effect in June. The full-year margin guidance of 24-24.5% remains unchanged. President and COO Stephen Shafer noted the China business started the year as expected and remains cautious. He characterized the government's trade-in program as a market stabilizer rather than a growth driver and stated the competitive dynamics and consumer sentiment challenges are consistent with recent trends.

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CFO Chuck Lauber responded that portfolio review is an ongoing, disciplined process and a lever available to the company, without committing to a more aggressive stance. CEO Kevin Wheeler expressed confidence in the boiler growth forecast, attributing it to stable quoting activity, the success of specific products like the CREST boiler, and the continued market transition to high-efficiency units, where A.O. Smith is a leader.

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CEO Kevin Wheeler expressed confidence in the commercial water heater market, stating they don't see a significant further downturn as quoting remains solid and the market is 80-85% replacement. For boilers, he noted their strong share gains and performance, and while there's some softness in quoting, the business is heading into its key season with a healthy backlog. He also noted Q3 had an easy comp and Q4 should see a more normalized run rate.

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President and CEO John L. Stauch explained that while pricing in the Pool segment is strong, volumes are flattish to slightly down due to deferred remodels and a shift towards repairs. He clarified that the company chose not to implement approximately $50 million in planned price increases after the expected tariff impact was reduced, resulting in a net benefit of about $15 million which was factored into the updated guidance.

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CFO Bob Fishman explained that margin absorption will be driven primarily by pricing actions designed to offset both the tariffs and the associated volume drop, with a minor benefit from mix. CEO John Stauch stated the Pool forecast anticipates some back-half softening in remodeling or discretionary purchases due to price hikes but noted the industry is at a historical low, limiting significant further downside.

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President and CEO John Stauch indicated that the company is not counting on a near-term recovery for delayed industrial projects within the Flow segment. For the Pool segment, he expressed optimism for a meaningful recovery in aftermarket remodels in the second half of 2025 as interest rates and equity markets potentially stabilize. He also acknowledged a minor positive impact from hurricane-related rebuilding.

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President and CEO John Stauch stated that the Pool market is performing as expected, with balanced inventory and potential for extra demand from hurricane-affected areas like Florida. CFO Bob Fishman added that overall company pricing is tracking as forecasted, with Pool pricing expected to be up 2.5% to 3% for the full year.

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CFO Anurag Maheshwari attributed the strong TEBG margin expansion to a combination of volume growth and broad-based productivity gains that more than offset stranded cost headwinds. CEO William Brown commented that the recent tax bill is favorable for 3M, as it helps maintain the company's effective tax rate in the anticipated 20% range.

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CFO Anurag Maheshwari explained that the Q1 margin decline in TEBG was expected due to PFAS stranded costs, higher investments, and an unfavorable mix compared to a strong prior-year quarter. He reaffirmed the expectation for margin expansion in all three business groups for the full year. CEO William Brown added that while they are watching macro indicators, conversations with customers and channel partners remain 'reasonably solid' and channel inventories appear normalized.

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CEO William Brown confirmed that industrial order rates were steady and slightly higher in Q4, building some backlog and providing a good floor for 2025. CFO Anurag Maheshwari explained the T&E Q4 margin was impacted as expected by seasonal under-absorption from inventory reduction, growth investments, and FX. For 2025, he expects margin expansion across all segments, though T&E may be slightly lighter due to absorbing a large portion of PFAS stranded costs.

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CEO William Brown noted the Consumer business is improving sequentially, with organic sales down just 0.7% in Q3 after accounting for portfolio actions, and is trending toward positive growth in Q4. He highlighted strong performance in Home Improvement, driven by new products. On R&D, Brown stated that the team is intensely focused on allocating its $1 billion budget to markets where 3M has a right to win and can achieve a strong return on investment.

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James Perry confirmed the 20% intermediate-term margin target for EBS remains, though it might not be hit for the full fiscal '26, with minor tariff impacts being a hurdle. For SRS, margin compression was primarily due to soft volume in January/February impacting absorption in the high-fixed-cost business, plus some unfavorable product mix. He stated nothing is fundamentally wrong, and strategies for improvement include the recent consolidation of a high-margin product line facility into their Texas plant.

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President and CEO Stuart Bradie confirmed confidence in the STS portfolio, noting a global shift from energy transition to energy security in some regions while transition remains a focus in others, like Europe. He stated KBR is well-aligned with new defense budget priorities, including missile defense and space dominance. He also expressed confidence in the NASA business, highlighting its focus on human space flight, which appears to be receiving increased funding.

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President & CEO Stuart Bradie explained that STS demand is durable and global, with ammonia projects in Angola and Kazakhstan driven by favorable local gas pricing and national priorities. He emphasized that KBR's global footprint allows it to capitalize on diverse country-specific dynamics. EVP & CFO Mark Sopp acknowledged a slight pickup in government tasking in Q4 but stated they have seen no direct adverse impact from DOGE or collection issues so far.

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President and CEO Stuart Bradie expressed confidence in achieving the 11-15% STS growth target for 2025, supported by a strong Q4 bookings outlook. He noted energy transition project timing in the U.S. depends on election results but sees overall market growth. EVP and CFO Mark Sopp clarified that while HomeSafe revenue is lower, it had no profit impact on the guide. He explained the guidance increase reflects LinQuest's contribution offset by incremental interest expense and typical Q4 seasonality, calling it a cautious update to cap a strong year.

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CEO Troy Rudd confirmed that investments in business development, technology, and Enterprise Capability Centers will continue in the second half to drive further efficiencies. He expressed confidence in sustaining a book-to-burn ratio above 1.0x, citing an 18-quarter streak, all-time high win rates, and a growing pipeline as evidence of continued momentum.

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CEO Troy Rudd responded that growth is expected to be balanced across all of AECOM's key end markets, including transportation, water, environment, and facilities, reflecting a deliberate strategy to align with diverse, long-term infrastructure trends. He also expressed confidence that the company's book-to-bill ratio would remain above 1.0x for the year, citing a robust and expanding pipeline of opportunities.

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President and CEO William Waltz confirmed that demand strengthened each month through the quarter. He and CFO John Deitzer clarified that while product sales for data centers have been strong, the services opportunity is more forward-looking, with past activity focused on chip manufacturing and other large projects. Deitzer explained that pricing assumptions were maintained due to puts and takes, including volatility in commodities like copper, which offset some of the tariff benefits.

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CEO William Waltz explained that PVC imports, while still a single-digit market share, grew over 20% year-over-year, pressuring prices. He noted the new forecast aggressively assumes prices will fall to pre-COVID levels, which he believes is unsustainable for importers. The metal conduit decline was attributed to a tough year-over-year comparison. Waltz confirmed the volume outlook is based purely on seasonality, not a market recovery. Regarding costs, he highlighted facility consolidations, selling non-core production lines, and a headcount freeze as key actions. CFO John Deitzer added that the company is reviewing all assets to identify cost-saving levers.

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CEO Vimal Kapur noted that HPS projects and services are performing as expected, though he sees some push-out in sustainability-related projects, offset by strength in gas processing and LNG. CFO Mike Stepniak stated there is no expected impact from U.S. defense budget timing as most programs are multi-year funded, and highlighted continued strength from international defense demand.

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Incoming CFO Mike Stepniak projected enterprise-level price realization above 2% for 2025. CEO Vimal Kapur added that unlike previous years where price was the main lever, the company now has an equally strong lever in productivity to drive margin expansion. On geography, Mr. Kapur stated that growth is expected in the U.S., India, and the Middle East, with continued pressure in Europe and China, and the 2025 guidance assumes no recovery in those weaker regions.

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CEO Vimal Kapur confirmed that an increased number of new product launches in late 2024 and early 2025 should act as an enabler for growth in 2025. Geographically, he noted a moderate recovery in European building products and continued strong growth in India and Saudi Arabia. However, he stated that conditions in China have not improved, with Honeywell's automation businesses there remaining flat to slightly down.

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Executive Richard Tobin tempered expectations, suggesting that maintaining the current high levels of growth and margin in Pumps & Process would be a fantastic result, and acceleration is unlikely. For the cryogenics business, he noted that while the flow components are doing well, the project-based side is subject to customer CapEx sentiment, warranting some caution.

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Executive Richard Tobin expects the book-to-bill ratio to hover around 1.0 for the year, supported by strong CO2 system bookings and an expected inflection in heat exchanger orders in Q2. Regarding cadence, he described a typical pattern: a slower Q1 with inventory build, followed by a ramp in revenue recognition in Q2 and Q3.

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CEO Richard Tobin affirmed that portfolio transformation is intentionally driving higher incremental margins, with a goal of reaching a 25% consolidated segment margin. He clarified the Q4 book-to-bill for the segment depends on the timing of large CO2 system orders, which are expected to offset planned weakness in heat exchangers.

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CEO Scott Strazik confirmed they still expect a similar backlog growth trajectory in Electrification for 2025. He noted that capacity is being expanded by adding shifts and workers, which is within their control, and this should drive continued revenue growth through 2025 and into 2026.

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CEO Scott Strazik confirmed the commentary was most applicable to Electrification, where the company sees opportunities to accelerate capacity build-out in North America. He noted this aligns with the upside case discussed in December. CFO Kenneth Parks added that much of this expansion is driven by lean initiatives, not just capital-intensive 'bricks and mortar' projects.

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CEO Scott Strazik clarified that an order inflection is not needed to sustain current performance, which he views as a floor. He projects flat revenue again in 2025 but with improved profitability due to a better backlog mix. CFO Ken Parks added that the business is resized for profitability at current levels and the existing backlog contains approximately 10 incremental points of margin.

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CEO Mark Morelli attributed EFS strength to strong C-store demand and new product introductions, noting Q1 faces a difficult comparison. CFO Anshooman Aga explained the Q4 EFS margin dip was due to temporary geographic and product mix, reaffirming long-term margin potential. Regarding Invenco, Morelli highlighted that major customer rollouts are still in early phases, while Aga noted that the guided high single-digit growth for 2025 is strong following the mid-teens growth achieved in 2024.

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CEO Ivo Jurek affirmed confidence in getting "very close" to the 24.5% adjusted EBITDA margin target for 2026, stating that a significant rebound in growth is not necessary, only a cessation of volume declines. He credited strong execution on material cost reductions and future savings from footprint optimization. Regarding Ag and Construction, he expects the market to be "less bad" in 2025 but still down mid-single digits, with a particularly dislocated first half due to high dealer inventories.

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CEO Ivo Jurek explained that the Diversified Industrial market has stabilized, particularly in replacement channels, showing its best performance in several quarters. He is constructive on auto replacement for 2025, citing market share gains and strong fundamentals like the aging car fleet. CFO L. Mallard clarified that start-up costs (lift credits) for the new auto business will be a larger headwind in Q4 (70-80 bps) due to accelerated shipments, which positions them well for next year.

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Craig Arnold, Chairman & CEO, confirmed the residential market outlook weakened in Q4 because anticipated interest rate relief for consumers did not materialize. He characterized the machine builder (MOEM) market as bottoming out. The question regarding China was not directly addressed in the response, though earlier commentary highlighted utility strength in the region.

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Chairman and CEO Craig Arnold attributed the Vehicle segment's strong margin performance to improved operational execution and active portfolio management, fixing or exiting less profitable business lines. He expects the team to continue executing well. Regarding restructuring, he confirmed savings are generally targeted at lower-margin businesses, including Electrical Global. However, he emphasized that a return to market growth in Europe is the most critical factor for closing the margin gap.

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