Emily Fusco

Emily Fusco asked for Avient's expectations regarding pricing in the Color, Additives and Inks (CAI) and Specialty Engineered Materials (SEM) segments for 2026.

Answer

Jamie Beggs, Senior VP and CFO, explained that Avient focuses on value pricing, with price and mix dynamics driven by success in healthcare and defense, which is expected to continue in 2026. She added that while raw material fluctuations are monitored, the primary driver of margin expansion from pricing is the value and differentiation of Avient's products.

Emily Fusco asked about Avient's expectations for pricing in both the Color, Additives and Inks (CAI) and Specialty Engineered Materials (SEM) segments for 2026.

Answer

Jamie Beggs, Senior VP and CFO, explained that pricing is value-based, with success in healthcare and defense driving the price mix dynamic in 2025, a trend expected to continue in 2026. She noted that raw material fluctuations are monitored to ensure margin capture, and that anticipated margin expansion in 2026 will primarily stem from favorable product mix and value pricing, rather than broad pricing initiatives.

Emily Fusco asked about the targeted double-digit return on go-forward CapEx for the Darrow project, specifically inquiring about returns on the $2 billion of capital already invested and whether the 45Q credit is included in the go-forward CapEx return calculation.

Answer

Eduardo Menezes, Chief Executive Officer, confirmed that the 45Q credit is included in Air Products' return calculations for the Darrow project and stated that the overall return for the project on a go-forward basis is what they are disclosing at this point.

Emily Fusco asked about the targeted double-digit return on go-forward capital expenditures for the Darrow project, how returns on the already invested $2 billion should be considered, and if the 45Q tax credit is included in the go-forward return calculation.

Answer

Eduardo Menezes, Chief Executive Officer, confirmed that the 45Q credit is included in Air Products' return calculation for the Darrow project, noting that the disclosed return applies to the go-forward capital.

Emily Fusco inquired about the timeline for an update on the food ingredients business, specifically if it's still expected with the Q4 earnings call in February, and whether IFF has engaged with private equity and strategics regarding this business.

Answer

CEO Erik Fyrwald confirmed that an update would be provided in February and stated that IFF is seeing strong interest from both private equity and strategics. He highlighted that the business transformation led by Andy Mueller is on a strong track, making it a very good business with a bright future.

Emily Fusco asked for an update on the food ingredients business, specifically if an update is still expected with the Q4 earnings call in February, and if IFF has engaged with private equity and strategics.

Answer

CEO Erik Fyrwald confirmed that an update would be provided in February. He stated that IFF is seeing strong interest from both private equity and strategics, noting that the business transformation led by Andy Muller and his team is progressing well, making it a very good business with a bright future.

Emily Fusco, on behalf of David Begleiter, asked about IFF's expectations for input cost inflation in the coming year and how net pricing is anticipated to evolve throughout 2025.

Answer

CFO Michael DeVeau stated that input costs remain at historically high levels. He noted modest inflation in Taste and Scent (driven by naturals), some deflation in Food & Ingredients, and generally flat costs in Health & Biosciences. On a consolidated basis, the input cost basket is expected to be flat to slightly up. DeVeau added that IFF will collaborate with customers on mitigation strategies, including reformulation and price discussions, and expects the pricing contribution to be relatively consistent across all four quarters of 2025.

Emily Fusco asked about expectations for 2026 tire contract price changes by region and the current percentage of negotiations settled.

Answer

Sean Keohane, CEO and President, indicated that approximately 25% of 2026 tire contracts were settled, which is behind the prior year's pace. He noted that projecting demand for 2026 is challenging due to market turbulence, and could not comment on final pricing outcomes due to competitive reasons.

Emily Fusco asked about Cabot's expectations for 2026 tire contract prices, including potential regional declines, and sought an update on the percentage of negotiations already settled.

Answer

CEO and President Sean Keohane reported that approximately 25% of 2026 tire contracts have been settled, which is slower than the previous year's pace. He attributed the delay to market turbulence making demand projections difficult and declined to comment on specific pricing outcomes due to competitive sensitivities.

Emily Fusco asked for more details regarding the reduction in H.B. Fuller's cash flow guidance.

Answer

CFO John Corkrean explained that the reduction in cash flow guidance is primarily due to higher inventory levels, which are a temporary measure taken in preparation for manufacturing footprint consolidation actions.

Emily Fusco asked for more details regarding the reduction in H.B. Fuller's cash flow guidance for fiscal year 2025.

Answer

John Corkrean, Executive Vice President and Chief Financial Officer, explained that the reduction in cash flow guidance is primarily due to higher inventory levels in preparation for manufacturing footprint optimization, which temporarily increases working capital. He noted these higher inventory levels are temporary.

Emily Fusco asked for more details regarding the reduction in H.B. Fuller's cash flow guidance.

Answer

John Corkrean, Executive Vice President and Chief Financial Officer, explained that the reduction was primarily due to increased inventory levels held in preparation for manufacturing footprint optimization, noting these higher inventory levels are temporary.

Emily Fusco, on for Dave Begleiter, asked how Corteva is positioned for a potential shift in Chinese soybean imports from the U.S. to Brazil and about the profitability difference between U.S. and Brazilian soybean sales.

Answer

CEO Chuck Magro stated that U.S. soybean production is essential for global supply as Brazil and Argentina cannot meet total demand alone. Judd O'Connor, EVP, Seed business unit, addressed profitability by noting that current economics favor corn in both regions. He added that for Corteva, a one-million-acre shift from soybeans to corn typically adds $10-15 million in EBITDA, and current order books support this shift.

On behalf of Dave Begleiter, Emily Fusco asked for an early preview of where the recently doubled cost savings target of $100 million would be sourced from.

Answer

CEO Peter Huntsman stated that while the company is confident in achieving the new $100 million target, he preferred not to announce specific details until they are finalized. He did, however, hint that the actions would involve calibrating the cost structure to market realities, particularly in Europe, and promised more color on the initiatives as the quarter progresses.

Speaking on behalf of David Begleiter, Emily Fusco asked if the weakness in the North American DIY market was worsening and what the outlook was for the remainder of the year.

Answer

Executive Heidi Petz responded that the DIY segment is not getting worse but remains 'under pressure and bumping around a bit.' She affirmed its importance to the long-term strategy. Executive James Jaye added that an uptick in existing home sales would be a key catalyst for improving DIY demand.