Anna Wu

Anna Wu inquired about regional growth dynamics for industrial businesses across the US, Europe, and Asia, and how these trends compare to the consumer segment. She also asked about the utilization rates and growth momentum of UL Solutions' battery testing labs in Germany and Michigan, and any implications from the federal EV tax credit expiration.

Answer

CEO Jennifer Scanlon reported industrial growth across all regions, with particular strength in the US, Greater China, ASEAN, and Korea, driven by data center-related needs. CFO Ryan Robinson noted moderately more US contribution. Jennifer Scanlon explained that battery testing labs are seeing a faster-than-expected shift towards industrial energy storage systems due to EV changes and data center power demands, without disclosing specific lab utilization rates.

Anna Wu inquired about the growth dynamics across regions (US, Europe, Asia) for the Industrial business, identifying any geographies growing meaningfully faster, and comparing these trends to the Consumer segment. She also asked about the utilization rates of the new battery testing labs in Germany and Michigan, the growth momentum in battery testing services, and implications from federal EV tax credit expirations.

Answer

CEO Jennifer Scanlon reported growth in every region for Industrial, with particular strength in the United States, Greater China, ASEAN, and Korea, especially in areas supporting data center growth like energy storage and high-voltage wire and cable. CFO Ryan Robinson added that the U.S. contributed moderately more in the last quarter. Ms. Scanlon noted that the energy storage system battery market is evolving, with a faster-than-expected shift towards industrial energy storage due to data center needs and changes in EV approaches. She expressed satisfaction with the investments in battery labs without disclosing specific utilization rates.

Anna Wu, on for George Tong, asked for an assessment of the uniform rental industry's health and competitive landscape, as well as the sales environment in Vestis's end markets. She followed up on the status of previously mentioned strategic advisors and potential transactions.

Answer

President, CEO & Director Jim Barber described the industry's health as 'just fine,' highlighting that 45% of recent growth came from 'non-programmers,' indicating an expanding addressable market. On the follow-up, Barber clarified that the company is now using advisors to help improve the core business—focusing on cost models, pricing tools, and technology—and is currently focused on optimizing the existing business rather than pursuing external transactions.