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President & CEO Erin Kane stated that the ammonium sulfate fall fill program has a robust order book, with pricing premiums to urea holding strong due to the sulfur value proposition. She emphasized that AdvanSix's U.S.-based, integrated model provides resilience, allowing for selective exports and focus on stable domestic demand. Interim CFO Christopher Gramm detailed the cash flow outlook, explaining that the company expects to receive 45Q tax credit refunds within the calendar year following a standard IRS audit. He also noted that the ammonium sulfate pre-buy program and disciplined CapEx would be significant positive contributors to cash flow in the second half of the year.

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CEO Erin Kane and CFO Siddharth Manjeshwar addressed the questions. Manjeshwar highlighted the company's strong balance sheet, with leverage around 1x, and a focus on cash flow and working capital efficiency rather than building inventory. Kane stated that the sulfur supply is believed to be ample and more balanced than current pricing suggests. She also noted that while the company receives overseas inquiries for ammonium sulfate, the primary focus remains on growing domestic demand. Regarding nylon, Kane clarified the strategy involves optimizing product mix and managing productivity amid a persistent global oversupply. She also confirmed that legal proceedings are underway to protect the EZ-BLOX patent in Europe, seeking damages and a permanent injunction.

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CFO Siddharth Manjeshwar detailed the $140-$160 million CapEx guidance, attributing the increase primarily to the SUSTAIN growth program spend rising to $20-$25 million. CEO Erin Kane explained that high EU natural gas prices support global urea prices, which benefits their ammonium sulfate pricing. She also noted that increased domestic nylon competition stems from restored supply after prior year disruptions. Kane concluded that the non-fertilizer ag chemical business remains challenged by low-priced Chinese imports, lagging the positive trends seen in dry fertilizers.

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President and CEO Patrick Williams stated that R&D collaborations have not slowed down and, in some cases, have accelerated as customers seek innovation. EVP and CFO Ian Cleminson attributed the strong Fuel Specialties margin to a favorable sales mix and good performance across all regions, noting that new GDI business is beginning to contribute. Regarding capital allocation, Patrick Williams confirmed the company intends to be 'more opportunistic' with share buybacks while maintaining a balanced approach that includes M&A, dividends, and organic investment.

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Patrick Williams, President and CEO, described the Latin American acquisition as a strategic move for in-country manufacturing that is meeting expectations and could serve as a model for future bolt-ons. He stated the 2025 goal for Performance Chemicals is to return to 2022 performance levels as customer demand shifts back to higher-value products. The strong Fuel Specialties margin was attributed to a favorable product mix, lower raw material costs, and internal improvement efforts. On the Oilfield situation, Williams reiterated it is a political issue and that Innospec is waiting for the customer to resolve it, confident that their product is essential.

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President and CEO Jugal Vijayvargiya stated there has been no impact on long-term R&D collaboration, as customers still have future product needs. He affirmed a strong multi-year outlook for the defense market, calling the current quarter's softness a matter of timing. He confirmed Materion is leveraging its COVID-era playbook, balancing strategic inventory builds with overall inventory reduction. CFO Shelly Chadwick added that the company is reviewing its borrowing options as its credit facility is up for renewal this year.

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President and CEO Jugal Vijayvargiya explained the HCS CapEx is for previously announced investments in additional and more cost-effective capacity to support growth in semi, industrial, and A&D. VP and CFO Shelly Chadwick clarified the M&A charge was primarily related to the divestiture of the Albuquerque business and a related facility closure. Jugal Vijayvargiya then detailed the A&D strategy, highlighting strong, diversified relationships with top players across commercial aerospace, commercial and government space, and global defense contractors.

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CEO Greg Henderson stated that while short-term tariff discussions are frequent, the company has not seen significant changes to long-term strategic R&D priorities with customers, as key megatrends like electrification continue to drive investment. CFO Meenal Sethna characterized the share buyback as the third priority in their capital allocation strategy, after organic growth/M&A and dividends. She noted the repurchases in Q4 and Q1 were periodic and based on market conditions and other uses of cash, confirming no change to the overall capital allocation strategy.

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CEO Dave Heinzmann responded that a key success factor has been aligning the company's strategy with long-term megatrends like sustainability, connectivity, and safety, which are stronger today than when first identified. He believes these investments have served the company well. As for challenges, he cited geopolitical situations but emphasized that the company's increased diversification across applications and markets, along with a strong team, will serve it well in a global business environment.

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CEO Mike Slessor explained that while the Systems business provides good visibility into broad industry trends like CPO, it doesn't provide precise volume forecasting due to rapid innovation cycles. Regarding FICT, he clarified their manufacturing is in Japan but disassociated the partnership from the broader tariff discussion, noting the 1% margin headwind is from various global suppliers, not just FICT. The partnership's value is strategic access to unique substrate technology.

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President and CEO Randall Gouveia responded that he has not seen any anti-American sentiment from customers and that the dialogues remain constructive, with a shared belief that the current trade issues will eventually normalize. He clarified that the opportunity funnel in China is fairly well balanced between the EMS business (with PORON, BISCO foams) and the AES business (with ADAS radar, power modules, and bus bars), serving diverse end markets like portable electronics, industrial, and EV/HEV.

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President and CEO Luis Rojo responded that the majority of the growth was in the ag business and the company does not see signs of significant inventory buildup, unlike in 2022, due to the current high-interest-rate environment. He explained the unfavorable Polymer mix was due to strong double-digit growth in lower-margin commodity Phthalic Anhydride (PA) business, while higher-margin Rigid Polyols grew only low-single digits. Regarding tariffs, Rojo noted that while most business is regional, they are mitigating raw material import impacts through sourcing changes and pricing. He confirmed products from Mexico and Canada are covered by the USMCA. He stated there has been no significant change in R&D collaborations yet but expects more customer requests for formulation changes once the tariff situation stabilizes.

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CEO Luis Rojo stated that CapEx will return to a normal level of $120-$130 million annually. He noted discretionary spending will target high-return, low-capital projects like enhancing blending capabilities for the oilfield business. For Tier 1 customers, he highlighted growth opportunities in Latin American consumer markets, functional products like agriculture, and leveraging the company's leading low 1,4-dioxane capacity. Regarding his new role, Rojo emphasized focusing the existing strong team on key priorities and making 'surgical changes' to accelerate growth, rather than a major strategic overhaul.

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CEO Brady Ericson responded that development is 'full speed ahead' with no delays, noting increased customer interest in extending combustion programs and developing new engines for hybrid applications. On aerospace, he confirmed that a key quality certification is ongoing and customer reception has been very positive. He also stated that PHINIA expects to continue adding a 'couple of thousand-plus' new SKUs per year, consistent with its strategy.

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CEO Brady Ericson identified a delayed commercial vehicle market rebound as the primary downside risk, while upside could come from a stronger-than-expected market, a weaker U.S. dollar, or continued Aftermarket strength. Regarding tariffs, Ericson noted that while customers are already regionalizing supply chains, proposed tariffs would likely impact consumer prices and volumes. CFO Chris Gropp added that PHINIA has minimal direct exposure to China tariffs.

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CEO Douglas Dietrich stated that tariff uncertainty has not impacted long-term customer collaborations for high-value products like PCC satellites or Scantrol systems, as these projects drive efficiency and cost savings. Executive Brett Argirakis provided an update on PFAS, noting 15 new projects in the quarter, 6 full-scale systems now operational, and detailed a large-scale, unique reactor project in the Northeast. Dietrich asserted that MTI has not seen any competitive disadvantage in China, emphasizing that customers value their technology and reliability, and recently won a new contract there.

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CEO Douglas Dietrich and other executives, including D.J. Monagle, detailed efficiency drivers, including company-wide productivity, high-value refractory products, and the integration of pet care acquisitions. They confirmed the new FLUORO-SORB project is a full-scale drinking water application in the Northeast. Regarding litigation, Dietrich described mediation as 'constructive' but separate from other cases. Monagle outlined several new project start-ups in Asia for 2025, focused on packaging and new yield technologies.

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CEO Douglas Dietrich stated that tariff uncertainty is not impacting long-term development activities, as products that drive efficiency and cost savings remain in high demand. On PFAS, Dietrich and executive Brett Argirakis provided an update, noting a strong pipeline, 15 new projects in Q1, and a large-scale municipal drinking water project in the Northeast being commissioned. Argirakis highlighted this project's unique reactor-based design and its potential for expansion. Regarding China, Dietrich asserted that MTI has not seen any loss of competitiveness and continues to win new contracts, as customers value their technology and the comprehensive value proposition they offer.

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CEO Douglas Dietrich and CFO Erik Aldag highlighted broad productivity improvements, including mining and back-office efficiencies, and growth in high-value refractory products. They described a new, large-scale FLUORO-SORB drinking water project in the Northeast. Regarding talc, Dietrich confirmed that mediation is progressing constructively. Executive D.J. Monagle outlined new satellite start-ups in Asia for 2025, with a strong pipeline focused on packaging and NewYield technology.

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CFO Erik Aldag attributed the cost savings to a mix of lower raw material and energy costs, as well as significant productivity gains, particularly in acquired pet care facilities. Executive Brett Argirakis and CEO Douglas Dietrich clarified that most of the 250+ active FLUORO-SORB pilots are paid for and that the product can be used in existing equipment, minimizing capital outlay. Dietrich noted that despite a weaker Chinese economy, their foundry business grew 8% due to market penetration. He explained the dividend hike reflects the company's transformed profile, with more stable growth and cash flow, and the confidence to support shareholder returns alongside M&A.

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CFO Erik Aldag attributed the $6 million cost improvement to roughly one-third each from lower raw material costs, reduced energy expenses, and strong productivity gains, particularly in acquired pet care facilities. On PFAS, CEO Douglas Dietrich and Group President Brett Argirakis noted that with over 250 active pilots globally, many of which are paid, the financial impact is manageable as the product works in existing customer equipment, minimizing upfront costs for MTI. Regarding China, Douglas Dietrich explained that despite a weaker economy, business is growing due to increased market penetration of their advanced solutions. He concluded that the recent dividend hikes reflect the company's transformation into a more stable generator of cash flow, providing the financial strength to support shareholder returns, buybacks, and M&A simultaneously.

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CEO Ben Gliklich stated there has been "no pause in momentum" for long-term R&D projects, as they are tied to breakthrough technologies pulled by market demand. He clarified that the consumer electronics strength in the Americas was in PCs and other devices (ex-smartphones), while the strength in Asia was driven by the local Chinese smartphone market, partly due to government subsidies, and was not for export.

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CFO Carey Dorman clarified the R&D increase is partly due to investments in new labs and Coperion spend. CEO Benjamin Gliklich added that the divestiture of the less R&D-intensive graphics business also affects the ratio. On China, Gliklich expects it to be a growth vector in 2025, driven by the EV market, and noted that while tariffs are an indirect risk, the broader trend of supply chain diversification out of China presents a long-term opportunity.

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CEO Benjamin Gliklich described the ViaForm transaction as an 'outstanding capital deployment' with a rapidly growing pipeline that is strengthening customer relationships. He noted Kuprion is progressing well, with strong commercial pull and a focus on scaling manufacturing, expecting the first product qualification this year. To support long-term growth, Gliklich highlighted investments in people and applications capabilities, including new labs in Vietnam and Thailand and a research center in India, to enhance customer proximity.

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CFO Earl Ellis explained that potential RavenVolt earnouts are reviewed quarterly and will be accrued if performance warrants it, and that Q1 share repurchases were to offset dilution. President and CEO Scott Salmirs described the M&D strategy as a focused, bundled offering where ABM acts as a facility resource with subject matter experts, going beyond simple janitorial services.

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EVP and CFO Earl Ellis identified uncertainty in the commercial real estate recovery as the primary risk that could pressure results to the low end of the range. President and CEO Scott Salmirs explained that employee count as a ratio to revenue should moderate over time due to increased labor efficiency from new tools and a strategic shift toward less labor-intensive technical services.

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EVP and CFO Earl Ellis explained the adjustment is a mark-to-market of the earn-out based on Ravenvolt's significantly improved performance outlook over its full two-year measurement period. President and CEO Scott Salmirs noted that while they are on track for a record year in new business, they will update the figure at year-end. He clarified that walking away from business reflects a disciplined focus on profitability and value, not a commodity approach.

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CEO Beth Wozniak explained that Trachte fits nVent's M&A framework of acquiring and scaling businesses in high-growth verticals. She views it as a larger enclosure type that strengthens their position in utilities and data centers, with significant synergies within the existing Enclosures segment. For the foreseeable future, it will be managed and grown as a key part of the Enclosures portfolio.

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