Andrew Ross

Andrew Ross with Bank of America asked about Parker-Hannifin's available capacity and technology portfolio to ramp up and expand its presence in exciting new verticals like power and AI, considering organic growth versus bolt-ons. He also questioned how the company plans to manage a smooth ramp-up over the next several years, addressing labor availability and training.

Answer

Chairman and CEO Jennifer Parmentier explained that Parker works closely with data center customers globally to understand capacity needs, leveraging its global footprint and adding shifts or capacity as required, with a focus on good returns. She added that the company relies on its Parker Lean system and Kaizen culture for efficiency, flexing production without always adding new team members, and has robust onboarding and training programs. Executive Vice President and CFO Todd Leombruno noted an increased CapEx forecast for automation, safety, and capacity, preparing for growth.

Andrew Ross from Barclays asked for more details on Grubhub's path to free cash flow breakeven, particularly the levers available if the New York City fee cap amendments do not materialize.

Answer

CEO Jitse Groen stated that significant operational and technological efficiencies, similar to those implemented in the legacy Just Eat Takeaway.com business, are now being applied to Grubhub. He noted that these changes are driving a rapid decrease in Grubhub's cash burn, even as the business has been shrinking. While not providing a specific timeline, he pointed to the substantial progress over the past year as evidence of the strategy's effectiveness.

Andrew Ross of Barclays asked for a breakdown of the company's cash flow, noting the €400 million reduction in gross cash in H1, and inquired about the timeline to reach group-level free cash flow breakeven.

Answer

CEO Jitse Groen provided a brief response, stating that the company is making good progress on improving EBITDA and is actively working to reduce the cash burn below the EBITDA line, concluding that they are in 'quite good shape'.

Andrew Ross from Barclays Capital Securities Ltd. inquired about the strategic partnerships being explored for the U.S. business, asking for details on the types of partners, the nature of potential deals, and any expected timeline.

Answer

CEO Jitse Groen explained that while he could not disclose specifics, the company is in discussions with both strategic and private equity partners. He confirmed that all options are being considered, including joint ventures or selling a stake, with the primary objective of strengthening the Grubhub business. No timeline was provided.