Ethan Coyle

Ethan Coyle asked about the company's success in passing through pricing to offset tariffs and whether further pricing actions are expected in Q4 2025 or Q1 2026 due to increased tariff rates. He also inquired about the Industrial Motion segment, which experienced organic declines in Q3 and faces difficult comps in Q4, asking if it is expected to inflect positively anytime in the first half of 2026.

Answer

CFO Mike DiSenza stated that the company has been largely successful in passing through pricing, expecting to be above 1.5% for the full year. He explained that pricing in industrial distribution can be implemented with 60 days' notice, while OEM businesses have a longer lag. Mr. DiSenza confirmed the commitment to recapturing tariff margins in 2026 through mitigation tactics, including continued pricing, but did not comment on specific additional pricing for next year. For Industrial Motion, he reiterated that it's too early to comment on specific 2026 inflection points but expects a significant sequential step-up from Q4 to Q1, consistent with seasonal patterns.

Ethan Coyle asked about the success in passing pricing to offset tariffs and whether further pricing is expected in Q4 or Q1 2026. He also inquired if the Industrial Motion segment, facing organic declines and difficult Q4 comps, is expected to inflect positively in H1 2026.

Answer

CFO Mike Discenza stated that the company has been largely successful in passing through pricing, expecting pricing above 1.5% for the full year, with a higher run rate exiting the year. He confirmed commitment to recapturing tariff-related margins in 2026 through mitigation tactics, including pricing. For Industrial Motion, Mr. Discenza reiterated that Q4 to Q1 is a significant seasonal step-up, but it's too early to comment on specific positive inflection for H1 2026.