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    Andrew Krill • Deutsche Bank

    Andrew Krill's questions to Watts Water Technologies Inc (WTS) leadership

    Andrew Krill's questions to Watts Water Technologies Inc (WTS) leadership • Q2 2025

    Question

    Andrew Krill of Deutsche Bank questioned the reasons for the steep sequential decline implied by the Q3 margin guidance and asked about the underlying assumptions for end-market demand in the second half of the year.

    Answer

    CFO Shashank Patel attributed the sequential margin decline to three factors: a one-time $6 million price-cost benefit in Q2 (~100 bps), normal Q2-to-Q3 seasonality (~170 bps), and volume deleverage. CEO Robert Pagano noted continued market uncertainty, particularly for Q4, with residential markets slightly weaker but offset by strength in data centers.

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    Andrew Krill's questions to Watts Water Technologies Inc (WTS) leadership • Q1 2025

    Question

    Andrew Krill asked about the utilization of U.S. manufacturing facilities and the capacity to ramp up production to shift away from China, including any related CapEx plans. He also questioned the reason for the significant sequential step-down implied in the European margin guidance for Q2.

    Answer

    CEO Robert Pagano stated that North American manufacturing facilities are not fully utilized and have capacity to expand by adding second and third shifts without requiring significant new capital expenditures. CFO Shashank Patel explained the European margin outlook reflects difficult year-over-year comparisons, as heat pump destocking began in Q2 of the prior year and is expected to continue, impacting volume.

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    Andrew Krill's questions to Watts Water Technologies Inc (WTS) leadership • Q4 2024

    Question

    Andrew Krill of Stifel inquired about the company's new 80/20 product rationalization actions, asking about the margin profile of the exited businesses and whether this initiative would extend beyond 2025. He also asked for the specific value of sales that were pulled forward into the fourth quarter.

    Answer

    CEO Robert Pagano clarified that 80/20 has been a core part of the 'One Watts' system for over a decade and was highlighted due to the size of the Bradley acquisition. He stated the exited products are breakeven, and another $5-6 million from Bradley may be rationalized next year. CFO Shashank Patel added that approximately $4 million in sales were pulled into Q4, primarily impacting the Americas commercial boiler business.

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    Andrew Krill's questions to Zurn Elkay Water Solutions Corp (ZWS) leadership

    Andrew Krill's questions to Zurn Elkay Water Solutions Corp (ZWS) leadership • Q2 2025

    Question

    Andrew Krill from Deutsche Bank asked for an updated outlook on end markets and inquired about the growth trajectory and sales targets for the new LK filtration offering.

    Answer

    CFO Dave Pauli stated that the outlook for institutional, commercial, and waterworks markets remains unchanged, though the residential market is slightly softer. President, CEO & Chairman Todd Adams added that the previous $100 million sales target for filtration will be raised as the installed base grows, noting the product line's growth rate is 'clearly double digits' and sustainable.

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    Andrew Krill's questions to Zurn Elkay Water Solutions Corp (ZWS) leadership • Q1 2025

    Question

    Andrew Krill asked if there has been any slowing in the education vertical and questioned the company's confidence in affirming its full-year guide if tariffs on non-China 'rest of world' sourcing were to increase significantly.

    Answer

    Todd Adams, Chairman and CEO, confirmed they have not seen any slowing in the education vertical. Regarding hypothetical tariff hikes, Adams expressed confidence in their ability to manage any scenario due to their competitively advantaged supply chain. David Pauli, CFO, added that they have numerous levers to react, including accelerating supply chain moves, managing inventory, and shifting production between dual sources.

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    Andrew Krill's questions to Zurn Elkay Water Solutions Corp (ZWS) leadership • Q3 2024

    Question

    Andrew Krill questioned if there were any signs of increased project pauses or customer hesitancy and asked about the company's confidence in achieving 1-2% net pricing in 2025.

    Answer

    CEO Todd Adams responded that the company is not seeing any pronounced project delays or pushouts from their vantage point. He also expressed high confidence in achieving a couple of points of price realization in 2025, based on current market activity and preliminary communications, barring unforeseen events like new tariffs.

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    Andrew Krill's questions to Veralto Corp (VLTO) leadership

    Andrew Krill's questions to Veralto Corp (VLTO) leadership • Q2 2025

    Question

    Andrew Krill asked about the sustainability of the strong Water Quality growth in Europe and whether improving trade relations were boosting customer confidence.

    Answer

    President and CEO Jennifer Honeycutt credited the European growth to a focus on water reuse and strong commercial execution via VES. She noted that while clearer trade policy reduces confusion, it doesn't fundamentally alter demand for Veralto's essential products. SVP and CFO Sameer Ralhan also cited strategic acquisitions as a growth driver.

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    Andrew Krill's questions to Veralto Corp (VLTO) leadership • Q4 2024

    Question

    Andrew Krill asked why the 2025 free cash flow guidance is below the medium-term target and inquired about Veralto's sourcing exposure to China, Mexico, and Canada amid potential tariff risks.

    Answer

    SVP and CFO Sameer Ralhan cited two reasons for the 90-100% FCF conversion guide: higher CapEx (1-1.5% of sales) for growth investments and a conservative working capital assumption. President and CEO Jennifer Honeycutt addressed tariffs by highlighting a diversified supply chain and proactive measures, such as localizing Trojan parts in the U.S. She noted Trojan's U.S. sales are less than 5% of total company sales and confirmed a significant 'in China for China' presence.

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    Andrew Krill's questions to Veralto Corp (VLTO) leadership • Q3 2024

    Question

    Andrew Krill asked for details on the drivers behind the strong growth in Latin America and its sustainability, and also inquired about the company's capacity for M&A, asking if there is a theoretical limit to the number of deals it can handle.

    Answer

    President and CEO Jennifer Honeycutt attributed the 10% growth in Latin America to commercial investments, reshoring activity, and water utility privatization in Brazil. SVP and CFO Sameer Ralhan added that margins in the region are similar to the company average. On M&A, Honeycutt stated that activity is episodic and the company sets no limits on the number or size of deals, feeling well-prepared to execute on its full pipeline for both segments.

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    Andrew Krill's questions to Badger Meter Inc (BMI) leadership

    Andrew Krill's questions to Badger Meter Inc (BMI) leadership • Q2 2025

    Question

    Andrew Krill from Deutsche Bank inquired about the timing of new AMI projects and whether a guided sequential sales decline for Q3 applied to core sales or total sales.

    Answer

    CEO Kenneth Bockhorst explained that the project timing reflects the normal, uneven nature of the business, with some projects ending before new ones begin, and emphasized the long-term project funnel remains robust. Both he and CFO Robert Wrocklage clarified that the expected sequential sales decline in Q3 is for core sales, excluding SmartCover.

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    Andrew Krill's questions to Badger Meter Inc (BMI) leadership • Q1 2025

    Question

    Andrew Krill inquired about the specific factors behind the 'especially favorable' product and customer mix that drove record gross margins and asked whether margins would fully revert to the 38-40% range in Q2.

    Answer

    CEO Kenneth Bockhorst emphasized confidence in the 'floor' of the company's margins due to durable positive structural mix. CFO Robert Wrocklage added that while many favorable elements converged in Q1, some are episodic. He noted that without the current tariff uncertainty, the company would likely be raising its normalized margin guidance.

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    Andrew Krill's questions to Badger Meter Inc (BMI) leadership • Q4 2024

    Question

    Andrew Krill of RBC Capital Markets inquired about Badger Meter's exposure to potential tariffs, particularly from its Mexico manufacturing operations, and its contingency plans. He also asked about the company's confidence in achieving high single-digit growth in 2025.

    Answer

    Chairman, President and CEO Kenneth Bockhorst addressed the tariff uncertainty by highlighting the company's limited sourcing from China and its operational flexibility with facilities in the U.S. and Mexico. He emphasized Badger Meter's proven ability to manage external challenges. Regarding the 2025 outlook, Bockhorst affirmed that his confidence in achieving high single-digit growth remains as strong as it was in the prior quarter, supported by a healthy order rate and a robust project pipeline.

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    Andrew Krill's questions to Badger Meter Inc (BMI) leadership • Q3 2024

    Question

    Andrew Krill from Deutsche Bank probed further on the 2025 sales outlook, asking if a down year would be surprising, and sought to quantify the potential impact of recent hurricanes on the business in the Southeast.

    Answer

    Chairman, President and CEO Kenneth Bockhorst stated that a down sales year would be surprising, citing the company's historical resilience and strong underlying market drivers. Regarding the hurricane impact, he declined to provide a specific size but noted it could cause near-term project delays and unevenness, though any delayed projects would not be cancellations.

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    Andrew Krill's questions to Pentair PLC (PNR) leadership

    Andrew Krill's questions to Pentair PLC (PNR) leadership • Q2 2025

    Question

    Andrew Krill from Deutsche Bank AG asked about any evidence of pre-buying activity ahead of tariffs and whether that could create a demand 'air pocket' in Q3. He also inquired about the expected cadence of transformation savings for the remainder of the year.

    Answer

    President and CEO John L. Stauch indicated that pre-buying was more of a Q1 event and has since slowed, so he does not anticipate a Q3 air pocket. He guided for the remaining $36 million in 2025 transformation savings to be split roughly evenly between Q3 and Q4, with the Flow and Water Solutions segments being the primary beneficiaries, net of ongoing technology investments.

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    Andrew Krill's questions to Pentair PLC (PNR) leadership • Q1 2025

    Question

    Andrew Krill questioned Pentair's confidence in achieving its 2026 margin target of 26% in light of potential economic headwinds and asked for commentary on business trends in April.

    Answer

    CFO Bob Fishman reiterated the company's confidence in reaching its 26% return on sales target in 2026, viewing it as a continuation of the transformation-led path from ~25% in 2025. CEO John Stauch noted that the Q2 and full-year guidance already incorporate their expectations for April and the rest of the quarter, acknowledging that order patterns may be volatile due to tariff impacts.

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    Andrew Krill's questions to Pentair PLC (PNR) leadership • Q4 2024

    Question

    Andrew Krill asked about the underlying sales growth assumption needed to achieve the new 26% ROS target by 2026. He also sought to quantify the revenue headwind from 80/20 initiatives, asking if it was approximately a two-point impact.

    Answer

    CFO Bob Fishman explained that the updated 26% ROS target by 2026 now assumes lower sales growth, similar to the flat-to-up-2% guided for 2025, with profitability being driven by the Transformation program. President and CEO John Stauch clarified that the total headwind from 80/20 'Quad 4' exits is expected to be no more than one percentage point for the total company in 2025 and is already embedded in the guidance.

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    Andrew Krill's questions to Pentair PLC (PNR) leadership • Q3 2024

    Question

    Andrew Krill of Deutsche Bank asked for clarification on the drivers of the implied sequential margin decline in Q4 and the segmental allocation of the remaining transformation savings for the quarter.

    Answer

    President and CEO John Stauch explained that a sequential margin drop from Q3 to Q4 is typical due to lower revenue from seasonality and holidays. CFO Bob Fishman added that year-over-year ROS is expected to be up significantly in Q4, with all three segments contributing to the expansion and transformation savings.

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