Christopher Parkinson

Christopher Parkinson asked about Qnity's operating leverage expectations for 2026 across its Semiconductor Technologies (Semi) and Interconnect Solutions (ICS) segments, comparing it to recent quarters and identifying key metrics for assessment. He also sought clarification on the free cash flow outlook and conversion, including the current position and expected trajectory throughout the year, especially given the $500 million share repurchase authorization.

Answer

CEO Jon Kemp expressed satisfaction with 2025's 29.5% overall margin performance and 40 basis points of margin expansion, noting strong operating leverage in ICS. He explained that Semi segment margins in the mid-30s were influenced by R&D investments and product mix, while ICS saw 175 basis points of expansion due to high-value growth drivers like advanced packaging, interconnects, and thermal management. Interim CFO Mike Goss detailed the 2026 free cash flow guidance of $500 million, attributing it to elevated CapEx (9% of sales) for local-for-local investments, IT independence, and the transformation program. Mr. Kemp added that the business typically generates mid-teens percentage of sales in cash flow annually, with 2026's figure impacted by one-time items.

Christopher Parkinson asked about Qnity's expected operating leverage throughout 2026 in both the Semi and Interconnect Solutions segments, and sought clarification on the free cash flow outlook and conversion for the year.

Answer

CEO Jon Kemp expressed satisfaction with 2025's 29.5% overall margin performance and 40 bps expansion, noting strong operating leverage in ICS due to high-value growth drivers. Interim CFO Mike Goss explained the 2026 free cash flow guidance of $450 million-$550 million is driven by elevated CapEx (9% of sales) for local-for-local investments, IT independence, and the transformation program, with free cash flow margins expected to return to mid-teens in future years.

Christopher Parkinson asked about CF Industries' short-term order book flexibility for the year, given various market dynamics like farmer payments, RVO, E15, and supply/demand shifts from India, Iran, Trinidad, and Texas. He also posed a longer-term question regarding blue ammonia, specifically Japan's progress with certifications and hydrogen hubs, and whether the buy-side industry is underestimating Japan's pronounced developments compared to Europe.

Answer

Bert Frost, SVP of Sales and Market Development, expressed satisfaction with the order book, noting they carried inventory into 2026. He emphasized execution, identifying product needs, placing orders, and coordinating with freight providers, especially with an early spring and potential logistics challenges. Chris Bohn, President and CEO, agreed on Japan's significance, highlighting that many announced low-carbon projects have failed to materialize. He pointed to the JERA and Mitsui agreement for Blue Point, where 60% of the new plant's output is for a new demand source, reinforcing the expectation of a very tight market when Blue Point comes online due to insufficient new supply and growing demand.

Christopher Parkinson asked about CF Industries' order book flexibility for the 2026 spring season given various market dynamics, and the significance of Japan's demand for blue ammonia compared to Europe.

Answer

Martin Jarosick, Vice President of Investor Relations, CF Industries, expressed satisfaction with the order book and emphasized execution for the upcoming spring, noting lower inventories in the upper Midwest and potential early spring applications. Chris Bohn, President and CEO, CF Industries, highlighted Japan's leadership in low-carbon demand, particularly the JERA and Mitsui agreement for new demand sources, reinforcing the long-term tightening of the nitrogen market.

Christopher Parkinson asked about the drivers of demand and price strength in 2025, specifically how much is attributable to supply inconsistencies versus healthy demand, and what lessons learned from past capacity expansions can be applied to the Bluepoint project.

Answer

W. Anthony Will (CEO and President) stated that demand is easier to forecast and is expected to be strong for 2026, while supply is harder to predict. Bert Frost (EVP of Sales, Market Development, and Supply Chain) detailed supply losses from conflicts and plant issues, coupled with strong demand. Chris Bohn (EVP and COO) highlighted lessons learned for Bluepoint, including detailed engineering before FID, leveraging the company's network expertise, modular construction, and early hiring of operators.

Christopher Parkinson asked about the primary drivers of nitrogen market demand and price strength, distinguishing between supply inconsistencies and robust demand, and how these factors might influence the 2026 outlook. He also inquired about lessons learned from previous capacity expansions that are being applied to the Bluepoint project.

Answer

W. Anthony Will (CEO and President) indicated that demand is more predictable and expected to be strong for 2026, while supply dynamics are more complex, noting that strong supply and demand conditions this year led to results well above mid-cycle. Bert Frost (EVP of Sales, Market Development, and Supply Chain) detailed global supply losses and strong demand in key regions, leading to tight inventories and a positive outlook for 2026. Regarding Bluepoint, W. Anthony Will (CEO and President) highlighted the benefits of detailed engineering before FID and leveraging the company's extensive network expertise. Christopher Bohn (EVP and COO) added that modular construction and early operator hiring are key improvements for this project.

Christopher Parkinson of Wolfe Research, LLC asked about the sustainability of tight global nitrogen supply dynamics into 2026 and how the company plans to balance capital allocation between share buybacks and the BluePoint CapEx cycle, given the potential for strong free cash flow.

Answer

EVP Bert Frost detailed numerous supply constraints, including gas shortages and geopolitical issues, alongside strong demand from India and Brazil, suggesting a constructively positive market into 2026. CEO W. Anthony Will stated that with $2.4 billion authorized for repurchases, the company will likely deploy capital more expeditiously against buybacks if cash generation exceeds expectations, especially as BluePoint spending is slower initially.

Christopher Parkinson from Wolfe Research inquired about CF's view on the long-term nitrogen cost curve, its impact on free cash flow, and the expected return structure for the Blue Point project.

Answer

CEO Tony Will stated that the U.S. will remain a low-cost gas region and does not foresee significant price compression with Europe or Asia. Regarding Blue Point, he detailed that at 40% ownership, CF will receive about 650,000 tons of ammonia, with half earmarked for its U.K. operations to produce low-carbon products for Europe, capitalizing on the CBAM regime.

Christopher Parkinson of Credit Suisse inquired about CF Industries' capital allocation strategy amidst strong supply-demand dynamics and the outlook for turnaround activity and production capacity in 2025 and 2026.

Answer

CEO Tony Will stated that the company has a bias towards growth projects that exceed its cost of capital, followed by returning cash to shareholders, highlighting a $1.5 billion share repurchase authorization. He added that while they aim for consistent turnaround schedules, they expect to produce around 10 million tons of ammonia annually, supplemented by an estimated $100 million in cash from 45Q tax credits starting in 2025.

Christopher Parkinson inquired about continued investments in the health and probiotics business within the H&B segment, the expected spend in relation to productivity gains, and IFF's confidence in gaining market share in H2 2026 and beyond.

Answer

CEO Erik Fyrwald confirmed that the overall health and biosciences business is performing well, with health being the only area not delivering strong growth in 2025, particularly in North America. He stated that new leadership and a strong team are in place, with a robust pipeline expected to deliver growth in H2 2026 and strong growth in 2027, expressing firm belief in the business's capability to succeed.

Christopher Parkinson asked for IFF's perspective on the probiotics market, given market inconsistencies and varied peer commentary, and its outlook heading into 2026.

Answer

CEO J. Erik Fyrwald described probiotics as a 'great business' where IFF has a strong position but had 'lost the edge' on innovation. He confirmed that increased R&D spending initiated last year is strengthening the pipeline for 2026-2027. While the second half will be challenging, he sees tremendous long-term opportunities, including those related to GLP-1s.

Christopher Parkinson of Wolfe Research asked about the progress of growth spending in the Scent and Health & Biosciences (H&B) segments and requested an assessment of IFF's competitive position against its primary European peers.

Answer

CEO Erik Fyrwald stated that the growth investments in R&D and commercial capabilities are on track and are strengthening the pipelines for future years. He highlighted success in attracting top talent, including rehiring former employees. Fyrwald emphasized that IFF remains committed to this spending, funding it through increased productivity to drive long-term profitable growth.

Harris Fein, on behalf of Christopher Parkinson, asked what the recent price discovery from asset sales in the Food & Nutrition space implies for IFF's potential to prune its own portfolio, and what the implications are for its M&A pipeline for small bolt-ons.

Answer

CEO Jon Erik Fyrwald acknowledged that while the Food Ingredients business is undergoing a turnaround, some parts may not fit long-term and are being evaluated. He confirmed that IFF is actively looking at value-creating bolt-on acquisitions, specifically for technology in Health & Biosciences and for geographic expansion in Scent and Taste. However, he stressed that the primary focus remains on driving the performance of the current businesses and completing the planned divestiture of Pharma Solutions.

Christopher Parkinson of Wolfe Research asked for more detail on the Health & Biosciences (H&B) result, specifically the composition of its subsegments, the recovery in probiotics, and any key considerations for 2025.

Answer

CFO Glenn Richter reported that every single business within H&B had a very good performance in the quarter. He highlighted that probiotics, in particular, 'bounced back a lot.' He noted that the business had seen softness in recent years partly due to the situation in China, its second-largest market, but that the third quarter was very strong across the board for the segment.

Christopher Parkinson (via Harris Fine) requested an update on Entegris's concerted selling efforts directed to mainstream customers, a topic mentioned in the previous quarter. He also inquired about competitive intensity in China, asking if there were changing behaviors or a step-up in competition, and where it was being observed.

Answer

CEO Dave Reeder explained that efforts in mainstream include addressing silicon carbide (a 2025 headwind, now stable/improving in 2026 with share gains) and mainstream logic (focusing on providing a complete product portfolio for deeper wallet penetration). Regarding China, Dave stated that market fundamentals are similar to the rest of the world, prioritizing yield and performance. He identified assuring supply as the biggest obstacle and highlighted efforts in 2025 to qualify more overseas manufacturing for the China market, expecting 85% of Q1 China revenue to be supplied from Asia facilities, increasing to over 90% in 2026, to guarantee supply and compete effectively.

Christopher Parkinson asked for more details on trends in the Advanced Purity Solutions (APS) segment, whether H2 trends were surprising, and the outlook for the balance of the year. He also asked about the most surprising broad-based feedback from shareholders and areas for communication improvement.

Answer

CEO Dave Reeder noted strong liquid filtration (record Q3) within APS, but fluid management and FOUPs were challenged due to their CapEx-driven nature and fab construction slowdown. Regarding shareholder feedback, he highlighted concerns about growth, profitability, and leverage (especially free cash flow and debt reduction). He praised the quality of technical and in-region teams, while identifying improving cross-region communication and faster qualification/ramp of new facilities as areas for improvement.

Christopher Parkinson from Wolfe Research asked about non-tariff factors in H2, including any recent changes in customer views on moly and node transitions, and requested an update on the Taiwan facility ramp. He also inquired about the outlook for the U.S. market and its relation to the Colorado Springs investment.

Answer

CEO Bertrand Loy confirmed node transitions remain on track, providing a positive outlook for H2 content gains. He reported significant progress in Taiwan, expecting the Kaohsiung facility's revenue run rate to exceed $120M by year-end 2025. Regarding the U.S., he noted that while Phase 1 of the Colorado site is proceeding, a decision on Phase 2 will be made later this year based on new fab construction activity.

Christopher Parkinson inquired about Entegris's opportunity related to data centers and HPC, and also asked about the financial impact of the Taiwan and Colorado facility ramps.

Answer

CEO Bertrand Loy confirmed that strong AI chip demand from hyperscalers has been a positive driver through advanced foundry activity. CFO Linda LaGorga added that while facility ramp costs are included in their model, the Taiwan facility is an 80 basis point gross margin headwind in 2024. She noted that as Taiwan ramps, the new Colorado facility will create new inefficiencies in 2025, with margin relief not expected until 2026.

Christopher Parkinson asked about the progression of pricing strategies and cost management throughout the year, particularly the cadence of narrowing between pricing improvements and helium headwinds. He also sought insights into the tech world, specifically content like N2, HBM, neon, and rare gases, and how customer growth in Asia will translate into Air Products' results.

Answer

Eduardo Menezes, Chief Executive Officer, stated that pricing and productivity gains are expected to be similar to Q1 for the rest of the year, with helium being an exception. He highlighted electronics as a 'star segment' with accelerating investment decisions by chip manufacturers, strong positions in Asia, and opportunities for new projects. Melissa Schaeffer, Chief Financial Officer, added that new assets coming online will contribute mostly in the second half of the fiscal year.

Christopher Parkinson asked about the progression of Air Products' pricing strategies and cost management throughout the year, particularly how the divergence between pricing improvements and helium headwinds is expected to narrow. He also sought insights into how the investment community should view customer growth in the tech world (e.g., N2, HBM, specialty gases), especially in Asia, and when these contributions are expected to appear in results.

Answer

Eduardo Menezes, Chief Executive Officer, indicated that pricing and productivity gains, similar to Q1, are expected to continue for the remainder of the fiscal year, with helium being an exception. For the tech sector, he noted electronics as a 'star segment' with accelerating investment decisions from chip manufacturers, strong positions in Asia, and opportunities for new projects up to $1 billion in CapEx within the next 12 months. Melissa Schaeffer, Chief Financial Officer, added that new assets, particularly in electronics, are ramping up, with the majority of contributions expected in the second half of the fiscal year.

Christopher Parkinson from Wolfe Research asked about Air Products' base business, specifically the intermediate to long-term growth strategy for electronics, including exposure evolution and competitive standing in the non-large projects backlog. He also inquired about the operational run rates and expected contributions from projects like Uzbekistan and GCA, which have experienced maintenance or start-and-go issues.

Answer

CEO Eduardo Menezes highlighted electronics as a critical and rapidly expanding segment (17% of sales), with ongoing plant commissioning and investments, and expressed confidence in Air Products' strong market position and backlog, noting a new Taiwan asset ramping up. Regarding other projects, Menezes confirmed Uzbekistan's syngas facility is operating well at high rates post-scheduled maintenance, and GCA is nearing completion with expected contributions in 2026.

Christopher Parkinson asked about the intermediate to long-term growth strategy for the base business, particularly electronics, and Air Products' competitive standing in the electronics backlog. He also inquired about the run rates and expected contributions from projects like Uzbekistan and GCA, which have experienced maintenance or start-and-go issues.

Answer

Eduardo Menezes, CEO, highlighted electronics as a critical and rapidly expanding segment (17% of sales), with ongoing investments and bids, considering it the brightest area for traditional business. He expressed continuous ambition for more backlog but affirmed Air Products' strong market position. Melissa Schaeffer, CFO, added that a new electronics asset in Taiwan is beginning its ramp-up this year. Mr. Menezes confirmed the Uzbekistan syngas facility is operating well after scheduled maintenance, and GCA is expected to contribute in 2026 as it nears completion.

Christopher Parkinson from Wolfe Research, LLC requested an update on capital expenditure plans and the company's philosophy on uses of cash, including potential share buybacks.

Answer

CEO Eduardo Menezes stated there were no major updates to the capital plan. The primary goal for the next three years is to be cash-neutral, ensuring capital expenditures align with cash generation while maintaining the dividend. The potential for other uses of cash, such as buybacks, will be determined by how successfully this balance is achieved.

Christopher Parkinson from Wolfe Research asked if the negative commentary on the Alberta and Rotterdam projects was an indictment of blue hydrogen as a strategy or specific to the management of those projects. He also requested more detail on the assumptions to achieve positive free cash flow by 2026.

Answer

CEO Eduardo Menezes clarified that the issues were project-specific, stemming from CapEx overruns and volumes tied to the slow-developing mobility market, not a broader rejection of blue hydrogen. He stated that achieving cash flow neutrality by 2026 is primarily dependent on successfully de-risking and managing the capital spend on the Louisiana project to avoid increasing debt.

Christopher Parkinson of Wolfe Research, LLC inquired about the forward outlook for Air Products' Asia segment, considering headwinds from helium, electronics recovery, and China's macroeconomic conditions, and also requested an update on the Alberta project.

Answer

Chief Financial Officer Melissa Schaeffer responded that the outlook for China is a "wait and see" situation with no material improvement yet, leading the company to focus on productivity. She added that there were no new updates to share regarding the Alberta project at this time.

Christopher Parkinson asked for more detail on the construction and development stages of the large-scale Louisiana project and whether it would be built in phases. He also sought to quantify the potential reduction in the NEOM project's downstream CapEx from its original $2 billion estimate.

Answer

Chairman, President and CEO Seifi Ghasemi explained that the main risk for the Louisiana project, CO2 sequestration site viability, has been addressed, with permit applications submitted. The project uses proven technologies, and the current focus is on optimizing financing through partners or project finance. For NEOM, he clarified that while the production facility investment was reduced to $800 million from $1.7 billion due to project financing, he could not commit to a final figure for the $2 billion downstream portion until all offtake contracts are finalized.

Christopher Parkinson asked when the mix dynamics in North America, including factors like Big Beer versus Craft Beer and new CSD contracts, are expected to normalize to better project volume versus operating leverage. He also inquired about the latest assessment of the European market outlook for 2027-2028 and the need for additional supply capacity in the region.

Answer

Daniel Fisher, CEO, stated that North America's mix will be much cleaner in 2027 with more capacity, as Ball is currently 80% through its mix shift for the next three years and expects 99% asset utilization in 2026. He contrasted this with Europe, where excess capacity allows for more traditional operating leverage flow-through. Mr. Fisher described Europe as a "land of opportunity" due to heavy glass composition and its poor carbon footprint, driving demand for cans. He emphasized a methodical and discerning approach to capital deployment in Europe due to regulatory and labor complexities.

Christopher Parkinson from Wolfe Research, LLC asked for an assessment of the biggest positive and negative surprises across Ball's geographic portfolio this year. He also inquired where the company is trending relative to its long-term growth algorithm of 2-3% volume growth and associated leverage and buybacks.

Answer

CEO Daniel Fisher highlighted that Europe was in line, South America was mixed with Brazil underperforming while others overperformed, and North America saw weaker beer but stronger energy drinks. Regarding the growth algorithm, he confirmed Ball is trending at the high end of its volume range for the year, driven by strong customer performance and a strategic portfolio shift away from beer. He maintained the long-term 2-3% volume target despite the current outperformance.

Christopher Parkinson asked for an assessment of the biggest surprises across the geographic portfolio and how the company is tracking against its long-term growth algorithm.

Answer

Chairman & CEO Daniel Fisher identified stronger-than-expected energy drink demand in North America as a positive surprise, offsetting weaker beer. He confirmed Ball is trending at the high end of its 2-3% long-term volume growth range for 2025, driven by strong customer performance and a strategic portfolio shift, but is not yet raising the long-term guide due to global uncertainty.

Christopher Parkinson requested a high-level assessment of the biggest surprises, both positive and negative, across Ball's geographic portfolio. He also asked how the company is trending against its long-term growth algorithm.

Answer

CEO Daniel Fisher noted that Europe was in line with expectations, South America was a mixed bag with Brazil underperforming, and North America saw weaker beer but much stronger energy drink volumes. Overall, the situation is net positive. He stated that Ball is trending at the high end of its long-term volume growth range for the year, driven by strong customer performance and a strategic portfolio shift, but is not yet raising the long-term target.

Chris Parkinson asked about demand trends in Latin America, particularly Brazil and Argentina, for the remainder of 2025 and beyond, as well as the intermediate-term supply/demand dynamics in Europe.

Answer

CEO Daniel Fisher stated that recovery in markets like Argentina and Chile, combined with stable growth in Brazil, should drive Latin American volumes above the long-term range in 2025. For Europe, he expects continued growth driven by the substrate shift from glass to cans, noting that while capacity additions will be disciplined, the long-term trend is highly favorable.

Christopher Parkinson asked for an update on trends in the energy drink markets in the U.S. and Europe, and about the company's confidence in its long-term growth algorithm for South America.

Answer

CEO Daniel Fisher reported that the European energy drink portfolio continues to grow at high mid-single digits, while North America is seeing a return to growth with more aggressive pricing. For South America, he expressed confidence that Ball's volumes will grow 4-6%, outpacing the broader Brazilian market due to favorable comps and recovery in Chile, Paraguay, and Argentina.

Christopher Parkinson of Wolfe Research, LLC asked for details on phosphate production run rates for July, August, and September to understand the basis for the company's confidence in its second-half guidance, referencing specific plant statuses.

Answer

Bruce Bodine, CEO, President & Director, explained that while July's run rate was impacted by a two-week maintenance delay at the New Wales facility, the work is now complete, and early August numbers are very encouraging. He confirmed that the Bartow plant is operating at target rates and major work at Riverview is finished, underpinning the company's confidence in its Q3 sales volume guidance of 1.8 to 2.0 million tons.

Christopher Parkinson asked for an assessment of the progress in normalizing production at the Bartow and New Wales phosphate plants and the outlook for the second half of the year.

Answer

President and CEO Bruce Bodine acknowledged some unexpected turnaround challenges, such as brick work in a reactor, but stated that reliability enhancement projects are paying off. He noted that some work was accelerated to insulate the second half of the year's performance and expressed optimism about achieving target production rates.

Christopher Parkinson asked for clarification on the 2025 phosphate production guidance, questioning how the 700,000 tonnes lost in 2024 bridge to the 2025 forecast and the expected impact of turnarounds on first-half versus second-half output.

Answer

Bruce Bodine, President and CEO, explained that while major sulfuric acid turnarounds are complete, recent operations revealed bottlenecks in phosphoric acid production. He noted that 2025 CapEx will remain flat to accelerate reliability work in the first half of the year, which will result in a stronger production run rate in the second half.

Christopher Parkinson asked for a framework to understand the normalized earnings potential of the phosphate business, considering rock procurement and processing costs, especially looking into 2025 and 2026.

Answer

President and CEO Bruce Bodine outlined the path to normalized earnings. He reiterated the target phosphate production run rate of 7.8 to 8.2 million tons, which should lead to a sustained $20-$30 per ton reduction in conversion costs from the 2023 high. He projected rock costs to be around $50-$55 per ton, with conversion costs below $95 per ton, providing a clear framework for modeling future profitability once operations stabilize post-turnarounds.

Christopher Parkinson of Wolfe Research inquired about the potash market's supply and demand dynamics, questioning if recent price strength was demand-driven and seeking an outlook for the second half of 2025 and into 2026, particularly concerning supply from the FSU.

Answer

President & CEO Ken Seitz confirmed the market is demand-driven, with Nutrien raising its global shipment forecast to a record 73-75 million tons for 2025. Seitz noted that strong demand is testing supply chain capabilities, inventories are not elevated, and he sees no material change in supply from the FSU. He expressed a constructive outlook for 2025 and 2026, supported by strong order books and the need for nutrient replenishment.

Christopher Parkinson asked about the sustainability of higher potash prices, suggesting the market is demand-driven rather than supply-constrained, and how this view influences Nutrien's strategy for the rest of the year.

Answer

President and CEO Kenneth Seitz agreed the market is demand-driven, citing strong grower economics and record-level demand globally, which gives confidence in the 71-75 million tonne shipment forecast. He explained that while there have been some supply disruptions, the key factor is that global demand is meeting the market's total ability to supply and ship, resulting in strengthening prices. This constructive view informs the company's strategy for the remainder of 2025.

Christopher Parkinson inquired about end-market grower demand, sentiment, and inventory levels across Nutrien's key regions to gauge the current environment against a normalized outlook for 2025 and 2026.

Answer

CEO Kenneth Seitz acknowledged that softer agricultural commodity prices have affected grower sentiment but noted that input affordability remains strong. Jeff Tarsi, EVP & President of Retail, added that growers are not pulling back on inputs to maximize yields. He highlighted a significant $700 million inventory reduction, particularly in crop protection and Brazil, and anticipates strong fall demand for nutrients, weather permitting.

Christopher Parkinson of Wolfe Research, LLC inquired about the U.S. seed pricing strategy for 2026 and how the ramp-up of new technologies like VorSeed and PowerCore is being incorporated.

Answer

EVP Judd O’Connor indicated a strategy targeting low-single-digit price increases, driven by mix improvement from new technologies, superior germplasm performance, and some organic lift. CEO Chuck Magro added that the entire Seed business is performing strongly, with market share gains and a strategic pivot to out-licensing.

Christopher Parkinson inquired about the remaining growth drivers in Corteva's Seed portfolio across the Americas, particularly what management is most enthusiastic about for the future in both the U.S. and Latin America.

Answer

CEO Chuck Magro highlighted the strategic shift to becoming a net out-licenser of technology, pointing to Enlist, Conkesta E3, and the future hybrid wheat launch as key growth pillars. Judd O'Connor, EVP, Seed business unit, added that North America looks solid with strong corn acreage, while Latin America is seeing an expansion in summer corn for the first time in years and strong demand for safrinha corn, with order books well ahead of the prior year's pace.

Christopher Parkinson asked how to reconcile the positive developments in the Seed business, such as increased corn acreage expectations, with the significant foreign exchange headwinds factored into the 2025 guidance.

Answer

CEO Charles Magro acknowledged the positive market fundamentals, calling 2025 "the year of corn" due to tight stocks-to-use ratios and improving farmer margins. CFO David Johnson added that the guidance midpoint represents a balanced outlook, with potential upside from a weaker U.S. dollar but risks from Crop Protection pricing. He affirmed the company feels the 10% EBITDA growth target is a balanced assumption at this time.

Christopher Parkinson asked about the confidence level in the negative offsets within the 2025 EBIT outlook, such as currency headwinds and crop protection pricing, and other potential risks.

Answer

CFO David Johnson addressed currency, noting the Brazilian Real is the primary driver and the estimate is reasonable. CEO Chuck Magro discussed the guidance range, explaining the low end ($3.6B EBITDA) would require significant new headwinds, while the high end ($4.0B) is achievable with strong execution on controllables and some recovery in the crop protection market.

Christopher Parkinson of Wolfe Research, LLC asked for a more detailed outlook on the Electronics segment into 2026, focusing on growth rates across semi, advanced packaging, and ICS driven by data centers and hyperscalers.

Answer

Jon Kemp, President of the Electronics division, highlighted robust investments from hyperscalers and excitement for upcoming node migrations like N2 and HBM, where DuPont has secured content gains. He indicated a more detailed long-term outlook would be provided at the September Investor Day.

Christopher Parkinson of Wolfe Research, LLC asked about the growth outlook heading into 2026 for the electronics portfolio, specifically across semi, advanced packaging, and ICS driven by data centers, HPC, and hyperscalers.

Answer

Jon Kemp, President of the Electronics division, highlighted robust investments from hyperscalers and significant content gain opportunities from node migrations like N2 and HBM. He indicated that a broader market recovery would provide an additional tailwind, deferring a detailed 2026 outlook to the upcoming Investor Day.

Christopher Parkinson inquired about current demand trends in semiconductor technologies and interconnect solutions, comparing China to the rest of the world, and asked about the company's long-term competitive positioning in advanced packaging for high-performance computing.

Answer

Jon Kemp, CEO-elect of Qnity, stated that China's semi demand is expected to normalize to flat for the year, while the rest of the world is projected to see high single-digit growth driven by AI. He emphasized Qnity's strong competitive position in advanced packaging, particularly in CMP slurries and metallization, and noted opportunities for content growth and share gains as technology advances.

Christopher Parkinson asked for the 2025 outlook across Safety, Shelter, and Water, and inquired about the key growth drivers for the Interconnect Solutions (ICS) portfolio.

Answer

CEO Lori Koch outlined the outlook for the new IndustrialsCo, expecting mid-to-high single-digit organic growth for Water and Healthcare, and low single-digit growth for the remaining businesses. For Interconnect, she highlighted AI-driven packaging and thermal management solutions from the Laird acquisition as key growth drivers.

Christopher Parkinson of Wolfe Research requested a deeper analysis of the semiconductor business, asking for color on performance by product line beyond the China benefits, and inquired about the drivers of strength in the water business, particularly in ultrafiltration.

Answer

CEO Lori Koch stated that strength in the semi business was broad-based across CMP (pads and slurries) and lithography, driven by market recovery, a strong China footprint, and exposure to advanced nodes. For the water business, she confirmed a recovery is underway with sequential improvement, noting that ultrafiltration strength was not tied to a single region and that overall activity in China has improved.

Christopher Parkinson of Wolfe Research, LLC asked about Linde's role in European policy discussions to protect the chemical industry and whether the long-term view on Europe is changing due to infrastructure spending.

Answer

CEO Sanjiv Lamba confirmed Linde is integral to policy conversations in Europe, particularly in Germany. He stated that Germany's €1 trillion commitment to infrastructure and defense has changed the long-term perspective on industrial recovery. However, he tempered expectations, noting that permitting and procurement will take time, with significant project announcements unlikely for another couple of years.

Christopher Parkinson of Wolfe Research, LLC inquired about the current assessment of the total addressable markets (TAMs) for new products and the off-patent Rynaxypyr strategy.

Answer

Chairman and CEO Pierre Brondeau expressed increased confidence in new products, noting that demand for Isoflex and Fluentapir is stronger than initially expected. He reaffirmed the Rynaxypyr strategy, stating it has now been translated into specific, actionable regional plans. He also highlighted a more favorable competitive environment for Rynaxypyr due to generic supply disruptions, which strengthens FMC's position.

Christopher Parkinson of Wolfe Research requested an update on the post-patent strategy for a key molecule, focusing on growth confidence, cost structure, and openness to third-party manufacturing.

Answer

CEO Pierre Brondeau confirmed that lower pricing is in place and manufacturing costs are on track to match high-end generics by year-end. He highlighted rapid adoption of new, higher-value formulations, which are expected to comprise $200-$250 million in sales in 2025. President Ronaldo Pereira added that they are seeing significant price elasticity and volume adoption from new customers.

Christopher Parkinson of Wolfe Research asked about management's confidence in achieving the full-year 2025 guidance, noting that the weak Q1 outlook seems to account for the majority of the downward revision and highlighting multiple market headwinds.

Answer

CEO Pierre Brondeau and CFO Andrew Sandifer affirmed their confidence, explaining that the Q1 weakness reflects an aggressive, front-loaded strategy to reduce channel inventory. They noted that growth from new products and new routes to market is weighted towards the second half of the year. Additionally, a timing shift in the U.S. market is expected to push sales typically seen in Q1 into later quarters.

Christopher Parkinson of Wolfe Research inquired about the 2025 outlook, focusing on the cadence of new product introductions versus registration losses and whether competitors' registration losses could serve as a tailwind.

Answer

Pierre Brondeau, Chairman and CEO, and Ronaldo Pereira, President, responded. They explained that new products like fluindapyr and Isoflex are key to 2025 growth and will more than offset known registration losses. They also confirmed that industry-wide registration losses in Europe create increased opportunities for FMC's remaining products in the market.

Christopher Parkinson from Wolfe Research, LLC inquired about the primary long-term growth drivers for the company beyond 2025 and sought clarity on the M&A strategy, particularly regarding the need to fill any portfolio gaps.

Answer

President and CEO Benjamin Gliklich outlined a multi-pronged growth strategy including cyclical recovery in legacy applications, continued secular growth in leading-edge electronics, and new product innovations like Cuprion. On M&A, he stated there are no critical portfolio gaps to fill; the focus is on acquiring high-quality businesses that are a strong strategic fit, noting that share repurchases were the best use of capital in Q2.

Christopher Parkinson of Wolfe Research inquired about the key long-term growth drivers for Element Solutions beyond 2025, such as Cuprion, and asked about the company's M&A strategy, particularly if it's focused on filling portfolio gaps.

Answer

President & CEO Benjamin Gliklich highlighted a multi-faceted growth outlook, including cyclical recovery in legacy applications, secular growth in leading-edge electronics, and new products like Cuprion. On M&A, he reiterated that there are no essential gaps to fill; the focus is on acquiring high-quality businesses that enhance their value proposition, noting that share repurchases were the best use of capital in Q2.

Christopher Parkinson asked about the most exciting aspects of the evolving product offerings in the Assembly and Circuitry businesses for 2025-2026. He also inquired about the company's capital allocation priorities, considering the strong balance sheet.

Answer

CEO Ben Gliklich expressed excitement about the shift to high-value B2B sales, highlighting flagship technologies for server boards, penetration in the IC substrate market, and growth in the Asian EV market. Regarding capital allocation, Gliklich noted that with leverage at a historic low, the company has significant capacity to deploy capital, and the hurdle for M&A is higher given the current equity valuation, making buybacks an interesting option.

Christopher Parkinson of Wolfe Research asked for the two key data points that could lead to an upside surprise and the two primary risks being monitored. He also inquired about the company's exposure mix between Chinese and non-Chinese OEMs for EVs and smartphones.

Answer

CEO Benjamin Gliklich identified foreign exchange as the biggest variable. For organic upside, he pointed to a recovery in Western automotive and a stronger smartphone replacement cycle. The primary risk cited was weaker industrial production. Regarding OEM mix, Gliklich noted more value in Western smartphones and better penetration in ex-China auto, but highlighted significant progress and growth with high-end Chinese EV OEMs.

Christopher Parkinson of Wolfe Research asked about the company's long-term margin potential versus prior peaks, considering portfolio changes. He also questioned if the electronics portfolio is now complete or if more additions are needed.

Answer

CEO Benjamin Gliklich stated that the prior peak ex-metals EBITDA margin of 29% is 'not a ceiling' and that the company has a runway to reach the 30s in the coming years, driven by mix shift to higher-margin electronics. He affirmed that while the company is always open to inorganic opportunities, they do not feel a strategic need to add to the portfolio to deliver value, as they are already well-positioned to capitalize on market trends.

Christopher Parkinson of Wolfe Research inquired about the key drivers for the fiscal 2026 outlook, including restructuring benefits, manufacturing rationalization, and the potential for incremental margins in Personal Care as volumes recover. He also asked for an update on customer feedback regarding stabilization in the Personal Care market, particularly for biofunctionals.

Answer

CEO Guillermo Novo outlined a stable demand outlook for Personal Care and Pharma but a conservative view on coatings, especially in China. He emphasized that the streamlined portfolio and cost-saving actions will reduce volatility and improve the cost structure. CFO William Whitaker quantified several FY26 tailwinds, including the end of a $45M EBITDA headwind from portfolio resets, a $12M restructuring carryover, and $55M in network optimization savings yet to be realized. On Personal Care, SVP & GM James Minicucci noted market stability, traction in Asia, and improvement in Europe, adding that the business is now lapping prior-year customer-specific headwinds, which should make underlying growth more visible.

Christopher Parkinson asked about the long-term viability of the Life Sciences segment achieving 30%+ EBITDA margins and questioned if Personal Care's strong performance is a result of new R&D initiatives and higher content per sale.

Answer

CEO Guillermo Novo affirmed the long-term margin outlook for the core Life Sciences business, stating that competitive noise from China is being offset by significant productivity initiatives. For Personal Care, he attributed the success to the execution of their growth strategy, including productivity gains and growth catalysts, which are strengthening the core business beyond simply market trends.

Christopher Parkinson inquired about Axalta's execution on cost discipline, market share gains, and pricing strategy amid a changing global economic landscape.

Answer

CEO Chrishan Anthon Villavarayan affirmed these three areas are core pillars of the company's 'A Plan' strategy. He stated that despite market headwinds in all four end markets, Axalta has driven consistent margin expansion through proactive cost actions, gained market share in three of four segments, and maintained positive price-mix, demonstrating the resilience of its strategic plan.

Christopher Parkinson from Wolfe Research, LLC asked for additional color on Axalta's perceived outperformance in the Refinish market in its primary geographies for the next year and for an update on the Industrial segment's SKU rationalization and pricing dynamics.

Answer

CEO Chris Villavarayan stated that Refinish outperformance will be driven by four pillars: continued body shop wins, moving into adjacencies, retail segment growth, and accretive M&A. He noted the Irus Mix launch is a key factor. For the Industrial segment, he highlighted that they have already achieved 300 of the planned 400 basis points of margin improvement and see potential upside, even while securing $40 million in new business.

Christopher Parkinson asked for an update on the rollout of the Irus color-matching system and its impact on Refinish wins, and questioned if Axalta is optimally positioned from a footprint perspective.

Answer

CEO Chrishan Villavarayan reported a successful Irus launch with 300 units deployed, primarily in Europe, and a target to triple that number next year, with capacity being the main constraint. He confirmed the technology is a key driver of new business wins. Regarding positioning, he stated that the company's transformation initiative has built a foundation to pivot towards growth investments in service, sales, and technology. He also noted the Industrial business has 'earned the right to grow' after significant margin improvement.

Christopher Parkinson asked for an analysis of trends in red meat markets, requesting a breakdown between international and U.S. dynamics and their implications for the second-half outlook and long-term positioning.

Answer

President and CEO Dustin Semach detailed that while the U.S. beef market was stronger than expected in Q1, there is a growing concern about consumer trade-downs to cheaper proteins due to economic pressures. Internationally, he noted that the Australian and Latin American beef cycles remain very strong and are capturing demand from falling U.S. exports to China. Semach affirmed that Sealed Air is well-positioned globally to adapt to these shifts.

Christopher Parkinson asked for more detail on the company's expectations for global protein markets in 2025, specifically what is embedded in the guidance given the noise around the red meat cycle and potential headwinds in poultry.

Answer

CEO Dustin Semach explained that the guidance bakes in a 3-4% decline from the North American beef cycle, which is the primary headwind. However, this is expected to be offset by slight upside in other markets like dairy, foodservice, and poultry, which were down in the prior year. He noted that poultry concerns are mainly tied to turkey, where Sealed Air has less exposure, and that the company sees continued growth opportunities in poultry, which aligns with its strategic focus on case-ready solutions.

Christopher Parkinson asked for an outlook on global protein markets for 2025, specifically what assumptions are embedded in the company's guidance given the noise around the red meat cycle and potential headwinds in poultry.

Answer

CEO Dustin Semach explained that the guidance bakes in a 3-4% decline for the North American beef cycle, similar to the initial view for 2024. However, he sees slight upside in other markets like dairy, smoke and process, and foodservice, which were down in 2024. He noted that poultry concerns are mainly tied to turkey, where Sealed Air has less exposure, and that overall poultry consumption trends remain positive and play well into the company's case-ready growth strategy.

Christopher Parkinson of Wolfe Research asked for more detail on the aerospace opportunity across aftermarket, OE, and military, and inquired about the potential to debottleneck and add capacity for long-term growth.

Answer

CEO Timothy Knavish described demand as 'strong, strong, strong' across all aerospace sub-segments, with multi-year backlogs that are not sensitive to short-term news. He confirmed that many active debottlenecking projects are underway and hinted that larger capital investments are under analysis to support future growth. CFO Vince Morales added that military has become an additional growth driver.

Christopher Parkinson asked for insights into the expected growth rates and market outperformance potential for the three newly defined business segments.

Answer

CEO Tim Knavish detailed the growth drivers for each segment. Global Architectural is tied to housing/GDP plus share gains. Performance Coatings, being largely aftermarket, offers steady demand with technology-driven share gains. Industrial Coatings follows industrial production and auto builds, with additional growth from technology wins. CFO Vince Morales highlighted recent share gains in packaging and growing subscription revenue from digital tools in the refinish business.

Christopher Parkinson asked how investors should view the historical growth rate of the Performance Coatings segment (excluding the divested business) and about management's confidence in outgrowing its end markets in 2025-2026.

Answer

SVP and CFO Vince Morales noted that recent investments in the divested business to drive top-line growth had impacted its profitability. Chairman and CEO Timothy Knavish expressed strong confidence that the portfolio actions will create a higher-growth and higher-margin company, reaffirming his long-term growth targets for the more focused PPG.

Christopher Parkinson from Wolfe Research asked which of Ecolab's key growth engines—Pest Elimination, Water for data centers, or Life Sciences—is the most exciting in the intermediate term and how go-to-market strategies might evolve.

Answer

Christophe Beck, Chairman and CEO, identified data center cooling as the most exciting opportunity, citing Ecolab's unique expertise in cooling, fluid monitoring, and access to the chip level via 3D TRASAR. He described the market as huge and expanding, driven by rapid chip replacement cycles and the need for direct-to-chip cooling services. Beck stated that Ecolab is building this business in partnership with high-tech companies and sees it as a fast-growing, high-margin area that will become very significant.

Christopher Parkinson asked about the mathematical path for the Water (Industrial) segment to achieve mid-single-digit growth, given the building momentum in high-tech end markets.

Answer

Christophe Beck, Chairman and CEO, affirmed this growth trajectory is achievable. He explained that the fast-growing, high-margin Global High-Tech business, currently over $300 million, will increasingly lift the entire segment's growth profile. This, combined with steady performance improvements in the core water businesses, creates a strong long-term growth equation for the Industrial segment.

Christopher Parkinson noted the strong results in Pest Elimination but asked for color on why the margin was slightly lighter than anticipated, questioning if it was due to investments in headcount or digital efforts.

Answer

CEO Christophe Beck confirmed the business is remarkable, with high single-digit growth and high margins. He explained the slightly lighter margin was a deliberate result of increased investment in the business to fuel future growth. These investments are focused on three areas: innovation like the 'Pest Intelligence' platform, sales firepower, and small bolt-on acquisitions.

Christopher Parkinson requested a broad overview of the Performance Coatings Group (PCG), asking for commentary on its various divisions and opportunities amid macro volatility.

Answer

Executive Heidi Petz provided a divisional breakdown: Auto Refinish decline was half due to FX, with new account wins providing a partial offset. General Industrial remains pressured by soft heavy equipment demand. Coil recovered in March and is expected to see full-year growth. Packaging is performing well with share recapture, and Industrial Wood remains soft, correlating with the new residential market.

Christopher Parkinson asked about the two to three largest growth opportunities for 2025 and 2026 that are independent of the macroeconomic environment.

Answer

CEO Heidi Petz identified residential repaint as a primary opportunity, driven by the introduction of premium, productivity-enhancing products. For the Performance Coatings Group, she highlighted coil and packaging as the top growth areas, citing new account wins and supporting customer conversions to non-BPA coatings.

Christopher Parkinson asked for an update on pricing dynamics for 2024 and a preliminary outlook for 2025, specifically concerning price realization and whether the sluggish demand environment is hindering it.

Answer

Executive Allen Mistysyn confirmed a 5% price increase effective in January, driven by feedstock, wage, and healthcare inflation. He noted that realization is currently being offset by unfavorable product mix. For 2025, he anticipates returning to a historical price realization range of 50-60% but cautioned that new competitive dynamics in the North American architectural market need to be monitored.

Christopher Parkinson requested an update on operational performance improvements across geographies following recent initiatives and asked about the thought process behind the buyback cadence for the remainder of 2025, given the macro environment.

Answer

CEO Timothy Donahue described recent operational performance as 'remarkable,' highlighting margin expansion and successful integration of new capacity. He specifically praised the Asia Pacific team for its focus on profitability over pure growth. Regarding capital allocation, Donahue stated that after repurchasing over $200 million in Q1, the company plans roughly another $100 million for the year, while remaining mindful of its 2.5x leverage target and upcoming debt refinancing needs.

Christopher Parkinson asked for a deeper analysis of the operational progress in the Americas and Asia, its sustainability into 2025-2026, and preliminary thoughts on 2025 cash flow drivers and capital allocation.

Answer

President and CEO Timothy Donahue stated that progress in Asia was ahead of schedule, with the team successfully rightsizing capacity, leading to a stable segment income run-rate of $45-$50 million per quarter. Executive Kevin Clothier addressed 2025, noting that working capital benefits are largely realized, but interest expense could decline from $380 million to a $350 million baseline. He reaffirmed the commitment to a 2.5x leverage target and stated the company expects to be actively repurchasing shares in the market next year.

Christopher Parkinson questioned how the current trade environment might affect China's chemical industry, asking if it could incentivize capacity divestment and about the competitiveness of China's NGL imports.

Answer

Chair and CEO James Fitterling stated that given current oil prices, naphtha is a more competitive feedstock for China than imported U.S. NGLs. He also noted that Dow primarily exports specialized grades to China, which are needed for their own finished goods exports, suggesting a limit to how much in-country commodity production can displace these imports. He added that China's domestic demand is not strong enough to support major new capacity.

Christopher Parkinson of Wolfe Research requested a deeper analysis of Dow's strategic thinking regarding its European assets, particularly in the Netherlands and Germany, within the broader context of regional industry changes.

Answer

CEO James Fitterling identified energy competitiveness as the primary challenge. He noted that Spain has a relative advantage, while the Netherlands cracker idling is a short-term measure, as the country has historically been competitive. For Germany, he believes significant improvement will depend on state-level political action to lower structural energy costs, as current LNG import prices remain high.

Christopher Parkinson requested a review of Dow's balance sheet and year-to-date cash flow trends, asking for a framework of the puts and takes to consider for cash flow heading into 2025.

Answer

Jeffrey Tate, CFO, highlighted strong Q3 cash flow from operations of $800 million and a top-quartile cash conversion cycle of 42 days. He emphasized Dow's robust financial position, with $13 billion in total liquidity and no substantive debt maturities until 2027. He also reaffirmed the commitment to generate at least $1 billion annually from 'unique to Dow' cash levers.

An analyst on behalf of Christopher Parkinson asked about the potential implications of the U.S. election on EV policy and for more detail on potential 'upside actions' to further reduce costs.

Answer

CEO Kent Masters commented that it is too early to speculate on a new administration's policies but emphasized that the energy transition is a global trend and Albemarle is positioned to adapt. Regarding further cost actions, he declined to provide specifics, stating the company is focused on executing the current plan and will report progress by narrowing the announced savings range to the upside before announcing new initiatives.