Arthur Crosslaugh

Arthur Crosslaugh asked for details on divisional growth, specifically the end market for consumer technology (including electromagnetic compatibility testing) and the components of energy and automation within the industrial segment. He also sought clarification on the definition of 'mid-single digit organic growth' and where software fits into the overall growth outlook.

Answer

CEO Jennifer Scanlon explained EMC testing is for devices emitting radio frequency, driven by increasing connectivity (e.g., auto industry). Energy and industrial automation encompasses power and controls, electrical distribution, and circuit protection for large industrial equipment. CFO Ryan Robinson clarified the mid-single-digit organic growth guidance, factoring in a 1% revenue reduction from exited businesses, the $56 million EHS software divestiture, and a 0.5% FX tailwind. Jennifer Scanlon added that Q4 software revenue grew faster than the full year, and the divestiture allows focus on higher-growth Ultras platform categories.